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1991/01/08 Community Development Agency Minutes Rohnert Park City Council Minutes (9) January 8, 1991 (Joint Session/Corinunity Development Agency - 1 of 5 pages) JOINT SESSION COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF ROHNERT PARK NENUTES The Members of the Community Development Agency of the City of Rohnert Park met this date, January 8, 1991 , for a Joint Session during the regular City Council meeting at approximately 8:45 p.m. in the City Offices, 6750 Commerce Boulevard, Rohnert Park, with Chairman Eck presiding. Call to Order Chairman Eck called the joint session of the Community Development Agency of the City of Rohnert Park and the City Council to order at approximately 8:45 p.m. Roll Call Present: (5) Agency Nambers Hollingsworth, Hopkins, Reilly, Spiro and Chairman Eck Absent: (0) None Staff present for all of part of the meeting: Executive Director/City Manager Netter, City Attorney Flitner, Planning Director Skanchy, City Engineer Brust, Assistant to the City Manager Leivo, and Finance Director Harrow. Approval of Minutes Upon motion by Agency Member Hollingsworth, seconded by Agency Member Hopkins, the minutes of November 13, 1990 were approved as submitted by the following vote: AYES: (4) Agency Members Hollingsworth, Hopkins, Spiro, and Chairman Eck NOES: (0) None ABSENT: (0) None ABSTAIN: (1) Agency Member Reilly Approval of Bills Upon motion by Agency Mgrber Hollingsworth, seconded by Agency Manber Hopkins, and unanimously approved, the bills presented per attached list in the amount of 10,885.73 were approved. Acknowledging The Executive Director/Secretary's report on the posting of Exe.Dir./Sec.Report the agenda was acknowledged, Public Comments Chairman Eck said anyone in the audience who wished to make a comment redevelopment matters may do so at this time. No one responded. Certificates of Executive Director Netter explained that the purpose of the Participation joint session was to hold a joint public hearing with the City Council and community Development Agency members concerning the issuing of Certificates of Participation (OOP's) for the new Public Safety Facility to be located on City Hall Drive and the proposed use of Community Development Agency tax increments to finance the cost of construction of that facility and the approval of documents related to the financing/leasing of this project. Rohnert Park City Council Minutes (10) January 8, 1991 (Joint Session/Community Development Agency - 2 of 5 pages) Executive Director Netter said the City previously authori2 the hiring of the bond underwriting firm of Stone & Youngbe to proceed with the necessary documents in order to iss Certificates of Participation to provide the funding f approximately $8 . 1 million necessary to complete t construction of the new Public Safety Facility. The Law Fi of Jones, Hall , Hill & White have been hired to provide leg counsel and draft the necessary legal documents in completi the Certificates of Participation issue . Mr. Netter sa representatives of both firms were available at tonight meeting to respond to questions from Council and that copi were provided to Council of the referenced documents a drafts which included the necessary resolutions f consideration, Assignment Agreement, Reimbursement Agreemer 'Dust Agreement, Lease Agreement, and Moody's Rating Draf Mr. Netter reviewed documents for the $8.1 million bond iss and said that the documents provide for an interest rate c at 8% with a cap on the underwriter discount of 1.375 for uninsured issue and 1.175 for an insured issue. He said t financing conditions are favorable at present, reviewed t documentation and described the Certificates of Participatic He said Security Pacific National Bank would be the designat trustee to hold bonds in trust , described the lea arrangement and said the fast track is recommended because t Gulf Crisis could freeze the bond market . Moody' s wi provide rating on January 11 and sale would take place befo January 15 not to exceed the $8.1 million. Discussion followed during which it was confirmed th approval of the above-referenced documents would not increa taxes for individuals since the funds would come fr Redevelopment Agency tax increments and is a matter distribution of existing tax revenues (redistribution witho increasing taxes) . Mr. Netter explained the tax allocati system of Proposition 13 and the mechanism of tl redevelopment process including the redevelopment plat recommended projects (which included the Public Safe facility as a high priority) and other relevant informatio In addition, the effects of the Gulf Crisis were discussed it relates to the bond issue as well as pointing out that t bond market is currently the lowest its been for the past t years. Confirmation was given that the bonds would be sold a single transaction to Stone & Youngberg afterwhich that fi would be fully responsible to resell with no repercussions the City. Question was raised regarding the link betwe bonds and recession to which response was given that the would be considered recession proof bonds. Confirmation w given that it is not a matter of whether to spend the mon but where to spend it and the need to abide by priorities Redevelopment Plan. Rohnert Park City Council Minutes (11) January 8, 1991 (Joint Session/Community Development Agency - 3 of 5 pages) Public Hearing Mayor Eck opened the public hearing at approximately 9:00 p.m. and asked if there was anyone in the audience wishing to speak regarding this matter. He advised that Council would repund to questions at the close of the public hearing. George Horwedel George Horwedel , 7669 Camino Collegio, asked what population will the new facility serve, when will it be finished, chat is the status of the new City Hall, when will the City Hall be finished, and will the new City Hall be affected by the new Public Safety Facility. Dave Memel Dave Mochel , 6050 Commerce Blvd. , requested Council to postpone taking action of these items and instead request staff to provide a better explanation for such a large building. He asked if plans were to use the facility for a jail or what, since the size would not be necessary for a population of 40,000. The City should examine alternative sites since this particular site is the only site suitable for a transit station because of the central location. The new Public Safety Station could be included in redevelopment plans of the Southwest Blvd. Shopping Center and Public Safety personnel should be spread throughout the City rather than in one building. Jerry Kohler Jerry Kohler, 4596 Harmony Place, said he made himself clear at the previous Council meeting regarding concern about the large size of the new Public Safety building. He referred to the financing plans and said he understands that issuing bonds is actually borrowing money and will cost about 8%. He questioned the funding source coming from tax increments and said our tax dollars will pay for that over the next twenty- five years and suspected this would tie up at least $20 million over the years. He said the vote has already been made that CDA funds would go to this project and asked if money would be available for another large and unforeseen public project. He said rrore time is needed so the public can better understand all the factors involved. There being no one further desiring to speak, Mayor Eck closed the public hearing at approximately 9:07 p.m. Discussion followed during which reference was made to minutes and numerous documentations of discussions and actions regarding this matter over the past four to five years as well as being in the General Plan. Confirmation was given that it is hard to understand tax increment financing but that it provides a way to build projects in Rohnert Park rather than the same funds going elsewhere in the County, that the only debate at the time of review of these matters was the priority of the Public Safety building, and that without the Community Development Agency these funds would not be available . Rohnert Park City Council Minutes (12) January 8, 1991 (Joint Session/Community Development Agency - 4 of 5 pages) Acknowledgment was made that the Council Committee review several sites and concluded that the City Hall Drive locati is the logical site for the new Public Safety Facility C that it would be more costly to rehabilitate the existi station on South%est Blvd. It %as also pointed out that t existing neighborhood stations would continue to meet t needs of the particular areas and that the central locati for the Train station is ideal. A motion was Trade by Councilman Hollingsworth, seconded Councilmember Spiro, and unanimously approved, to proceed wi Council action regarding the issuing of Certificates Participation for the new Public Safety Facility. Councilman Reilly said he has not had sufficient time review and understand all the complexities of this matter e would therefore abstain from tonight's Council/Agency actior CITY CC7lNCIL ACTION: Resolution No. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PAF 91-10 CALIFORNIA, CONSENTING TO FINANCIAL PARTICIPATION BY T CttvMJNITY DEVELOPNQVT AGENCY OF THE CITY OF ROHNERT PARK CONSTRUCTION OF A NEW PUBLIC SAFETY FACILITY City Manager Netter explained the resolution. Upon motion by Councilman Hollingsworth, seconded Councilman Hopkins, the reading of Resolution No. 91-10 w waived and said resolution was adopted by the following vote AYES: (4) Councilmerrt ers Hollingsworth, Hopkin Spiro and Mayor Eck NOES: (0) None ABSENT: (0) None ABSTAIN: (1) Councilman Reilly Resolution NO. RESOLUTION OF THE ROHNERT PARK CITY COUNCIL APPROVI 91-11 PRELIMINARY OFFICIAL STATEMENT FOR PUBLIC SAFETY FACILI FINANCING, APPROVING, AUTHORIZING AND DIRECTING EXECUTION CERTAIN LEASE FINANCING DOCUMENTS, AND AUTHORIZING A DIRECTING C LIZTAIN ACTIONS WITH RESPECT THEREI J City Manager Netter explained the resolution. Upon motion by Councilman Hollingsworth, seconded Councilman Hopkins, the reading of Resolution No. 91-11 % waived and said resolution was adopted by the following vote AYES: (4) Councilmember Hollingsworth, Hopkins, Spi and Mayor Eck NOES: (0) None ABSENT: (0) None ABSTAIN: (1) Reilly Rohnert Park City Council Minutes (13) Janu ary 8, 1991 (Joint Session/Community Development Agency - 5 of 5 pages) 0244_HITY DEVELORCNTACENCY ACTION: Resolution No. RESOLUTION OF THE COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF 90-01 ROl-NERT PARK AUTHORIZING AND APPROVING FINANCIAL PARTICIPATION BY THE AGENCY IN CONSTRUCTION OF A NEW PUBLIC SAFETY FACILITY, APPROVING, AUTHORIZING AND DIRECTING EXECUTION OF CERTAIN LEASE FINANCING DOCUMENTS AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO Executive Director Netter explained the resolution. Upon motion by Agency Menber Hollingsworth, seconded by Agency Member Hopkins, reading of Resolution No. 91-01 was waived and said resolution was adopted by the following vote: AYES: (4) Agency Members Hollingsworth, Hopkins, Spiro and Chairman Eck NOES: (0) None ABSENT: (0) None ABSTAIN: (1) Agency Member Reilly Refinancing Agency's Executive Director said copies had been provided to Agency 1988 Tax Allocation Members of letter dated December 18, 1990 from Stone & Band Issue Youngberg, Members of Pacific Stock Exchange regarding Refinancing of the Agency's 1988 Tax Allocation Bond Issue and shared the contents therein. He said staff recommends Council's authorization to proceed with this refinancing and prepare the necessary documents in order to initiate this process. Mr. Netter indicated that due to the favorable interest rate market that approximately $50,000 could be saved annually, after all costs are paid, if the 1988 Bonds were refinanced. In addition, Mr. Netter indicated that it would not cost the Community Development Agency or the City anything to proceed and that the issuance costs woulod be paid from bond proceeds. Representative from Stone & Youngberg and Jones, Hall, Hill and White were present at the meeting to answer questions regarding this matter. A motion Has made by Agency Member Hollingsworth, seconded by Agency Member Hopkins, and unanimously approved, to authorize preparation of documents regarding the refinancing of the Agency's 1988 Tax Allocation Bond Issue. Matters fran Agency Agency Member Hollingsworth said the next City Newsletter M tubers should include informative material regarding financing procedures of the Community Development Agency. Agency concurred. Adjourns t►t of There being no further Community Development Agency hi iness, Joint Session Chairman Eck adjourned the joint session at approximately 9:20 p.m. L -Depu ecr _ ar.}4AY Cha r Nian