Loading...
HomeMy WebLinkAboutPFC1 - Public Facilities Corporation MinutesAugust 9, 2016 PFC Agenda Item No. 1 CITY OF NEWPORT BEACH Newport Beach Public Facilities Corporation Annual Meeting August 11, 2015 A. ROLL CALL - 4:00 p.m. Present: Director Peotter, Director Petros, Director Dixon, Director Duffield, Director Muldoon, Vice Chairman Selich, Chairman Curry B. PUBLIC COMMENTS ON AGENDA ITEMS Jim Mosher indicated that the current agenda does not clarify who the current officers are and believed the President should be residing over the meeting. He requested clarification as to whether the current Mayor, Mayor Pro Tem, and Council Members will be appointed as the Chairperson, Vice Chairperson, and Board of Directors, respectively. He referenced his written comments about the Financial Statements and suggested that the by-laws be amended to indicate that Council Members will be the Corporation officers. Unrelated to the agenda, he believed that there should be a standing item on the agenda to determine if there is a way to reduce the debt. In response to Vice Chairman Selich's question, City Attorney Harp noted that those selected to be Corporation officers will hold the position until the next Corporation meeting. Denys Oberman asked if an audit of Corporation activities is conducted regularly. Finance Officer Matusiewicz reported that the Corporation is included in the City of Newport Beach's audits since it is a part of the City. C. ELECTION OF OFFICERS Motion by Director Curry, seconded by Director Petros, to elect the Mayor as Chairperson of the Corporation, the Mayor Pro Tem as the Vice Chairperson of the Corporation, and the Council Members as the Corporation's Board of Directors for the 2015-2016 fiscal year. The motion carried by the following roll call vote: Ayes: Director Peotter, Director Petros, Director Dixon, Director Duffield, Director Muldoon, Vice Chairman Selich, Chairman Curry D. APPROVAL OF MINUTES 1. Minutes of the July 22, 2014, Public Facilities Corporation Meeting. Motion by Director Curry, seconded by Vice Chairperson Dixon, to approve the amended minutes of the July 22, 2014, Public Facilities Corporation Meeting. In response to Director Peotter's question, City Attorney Harp indicated that, if the new Directors were present at last year's meeting even if not on the City Council at the time or reviewed the audio tape from last year's meeting, the Directors may vote on the approval of the minutes. The motion carried by the following roll call vote: Ayes: Director Peotter, Director Petros, Director Curry, Vice Chairwoman Dixon, Chairman Selich Abstain: Director Duffield, Director Muldoon PFC 2015 - Page 1 City of Newport Beach Newport Beach Public Facilities Corporation August 11, 2015 E. CURRENT BUSINESS 2. Review of Annual Financial Statements Chief Financial Officer Matusiewicz reported that the staff report included the main transactions and the debt service payment made over the year. Director Peotter believed that the actual debt should be part of the Corporation's statement. Chief Financial Officer Matusiewicz clarified that the debt is the City's obligation, not the Corporation's obligation, and that the lease revenues are pledged. He added that the Corporation has a lease -receivable that is assigned to the trustee who pays the bond orders and the City pays the trustee for the debt service payments. He reported that the Corporation is necessary in a lease -back transaction and are an integral component for how Certificates of Participations (COPS) are structured. Director Peotter requested that the lease that the payments are covering be included in future Corporation statements. Stating that he understands that the City has an obligation to make the payments and indicating that he will support the approval, Director Peotter expressed his objection to the use of COPs, who holds the debt, and how leases and lease -backs are handled since he believes this is a way to not bring this before the voters. Motion by Director Curry, seconded by Director Petros, to receive and file the Annual Financial Statements. The motion carried by the following roll callvote: Ayes: Director Peotter, Director Petros, Director Curry, Director Duffield, Director Muldoon, Vice Chairwoman Dixon, Chairman Selich 3. Amendment to the Newport Beach Public Facilities Corporation Bylaws Chief Financial Officer Matusiewicz reported that the Corporation bylaws have not been updated since 1992 and that the amendment before the Corporation also includes suggestions to a) update the Principal Office of the Corporation to 100 Civic Center Drive, Newport Beach, California, City Manager's Office; b) reflect the annual meeting of the Board of Directors be held on the second Tuesday of August at 4:00 p.m.; and c) update the form of the Bylaws including various legal and other references as indicated in the amendment. The motion carried by the following roll call vote: Ayes: Director Peotter, Director Petros, Director Curry, Director Duffield, Director Muldoon, Vice Chairwoman Dixon, Chairman Selich F. PUBLIC COMMENTS ON NON -AGENDA ITEMS Jim Mosher believed that, when the Charter was adopted, the citizens believed that the City would not take on a large debt without a vote of the people. He suggested updating the Charter's language. PFC 2015 - Page 2 City of Newport Beach Newport Beach Public Facilities Corporation August 11, 2015 Director Petros requested and received confirmation from President Kiff that the first City schoolhouse was constructed with debt instruments, the first City water delivery system was financed with debt instruments, and many of the City's initial infrastructure was financed with debt without going before a vote of the people. Director Curry added that the reason Proposition 13 requires a vote of the people is because "full faith and credit" includes the ability to put a property tax on the tax bill that would pay for the bonds. He clarified that the City did not need to do this for the Civic Center because the City was able to build the facility without increasing taxes. He reported that COPs has been the debt instrument for many California cities since 1978 and added that COPS were used to also finance the Central Library. He noted that the City's bond structure has been rated AAA by the rating agencies that looked at the City's debt. G. ADJOURNMENT — 4:15 p.m. The agenda for the Newport Beach Public Facilities Corporation was posted on the City's website and on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive on August 6, 2015, at 4:00 p.m. PFC 2015 - Page 3