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Home My WebLink AboutDOC-1_CCv0001.pdf Amended MINUTES of the organizational meeting of the Governing Board of the Redlands Financing Authority of the City of Redlands held in the City Council Chambers, Civic Center, 35 Cajon Street, at 4:39 P.M. on June 1, 1999. PRESENT William E. Cunningham, Chairman Geni A. S. Banda, Vice Chairman Pat Gilbreath, Member John L. Freedman, Member Gary George, Member Gary M. Luebbers, Executive Director Daniel J. McHugh, Attorney Michael Reynolds, Treasurer Bonnie Johnson, Controller Lorrie Poyzer, Secretary ABSENT None NEW BUSINESS Resolution No. 1 - By-Laws, Conflict of Interest Code, Meeting Date - On April 20, 1999, the City Council and the Redevelopment Agency of the City of Redlands formed a joint powers authority, more specifically the Redlands Financing Authority, to facilitate the refinancing of certain outstanding City debt. The agreement establishing the Authority calls for the adoption of by- laws and a conflict of interest code, as well as setting the time and place for regular meetings. Mr. Freedman moved to adopt Resolution No. 1, a resolution of the Governing Board of the Redlands Financing Authority adopting by-laws and a conflict of interest code, specifying a regular meeting date and taking related actions in connection therewith. Motion seconded by Mrs. Banda and carried unanimously, Resolution No. 2 - Water Revenue Bonds, Series 1999A - Controller Johnson explained that during the May, 1998, budget hearings, the City Council of the City of Redlands gave staff authorization to begin the refinancing process with relation to outstanding water and wastewater utility debt {GOP's). The main objective was to convert variable rate debt to fixed rate debt while rates were still favorable. Staff has been actively pursuing the matter since that time. The Preliminary Official Statement is scheduled for print on June 2, 1999. Distribution is scheduled for June 6, 1999, with bond pricing to occur June 8, 1999, and bond closing on June 23, 1999. Based on current market conditions and the City's current cost of funds (interest and letter of credit fees), conversion to a fixed rate is likely to yield no current savings, but will yield costs savings over the life of the bonds. The maturity dates of the new debt are identical to that of the old debt. Mr. Jim Cervantez, Stone and Youngberg, reported our Standard & Poor's rating is "A" for the water and wastewater debt He reviewed the bond insurance bids, current interest rates, and the projected Redlands Financing Authority June l, 1999 Page 1 Amended underwriter's discount. Mr. Freedman moved toadopt Resolution No. 2. @ [eSo|UUOn of the Governing 2]O8nd Of the Redlands Financing AVthOhh/ authorizing the iSSuBOC8. S@|8 and deliver Of not to exceed $20,000.000.00 Water Revenue Refunding BQOdS' S8[i8S 1999A; the execution and delivery of 8 trust agreement, 3 Vv8t8r iO3t3||Ol8Dt S8|e agreement, an OffiCia| StGt8DleOt and a bond purchase agreement and certain other actions in connection with the issuance and sale of such bonds, with the language in Section 2 reflecting Mr. Cunningham's requested change regarding the underwriter's discount: "shall not exceed less than one percent." K8OtiOO seconded by K8[S. Banda and carried unanimously. (Also see City Council minutes for June 1' 1G98.) Resolution No. 3 - Wastewater Revenue Bonds, Series 1999A - Controller Johnson 8Xp|BiO8d that during the May, 1908' budget h88hngS. the City Council Ofthe City 0fRedlands gave staff authorization tVbegin the refinancing process with [8|@bOO tOoutstanding water and vvaSt8vv8te[ utility debt (COP'S). The main Obi8(tiVR was to COOv8[t variable rate debt to fixed rate debt vvhi|8 r80BS were SU|| favorable. Staff has been actively pUnSUiOg the matter SiOC8 that time. The Preliminary C>fhCia| Statement is SCh8dU|8d for print OO JUO8 2, 1899. Distribution is scheduled for June 8, 1999' with bond pricing to occur June 8, 1999' and bond closing ODJune 23' 1999. Based on current market cOOdiUOOS and the City's CV[[8Ot C0St of funds (interest and |8tt8[ of credit f88S)' COOVerSiOn to a fixed rate is likely to yield OO current SGViOgS, but will yield COStS SGViOgS over the life of the bonds. The [D@tUrib/ dates of the new debt are identical to that Of the old debt. Mr. Jim CenxantGz. Stone and Youngberg, reported our Standard & Poor's rating is "/Y' for the vveLer and YV8ShewG1e[ debt He reviewed the bond iOSunBOC8 bids, CU[F8O1 |Ot8F8S� [8t8S , and the projected UDd8mVht8r'S discount. M[. FF88dnl@O OOOV8d to adopt Resolution No. 3. G resolution of the Governing Board of the Redlands Financing Authority authorizing the issuance, S8|8 and deliver Ofnot k] exceed $19.000.000.00 VV@Stevvgter Revenue Refunding Bonds, Series 1999A; the SX8CUtiOO and d8|iV8[y of @ trust ag[880eOt' a VV@S18VV@te[ iOStgUDOeDt S8|8 agreement, an official statement and G bond purchase agreement and certain other 8Cti003 in cDOnRCtiOO with the iS3U8DC8 and Sa|8 Of such, with the |aOgU8g8 in Section 2 reflecting M[ Cunningham's [eqU8Sb8d Ch8Og8 regarding the uDde0mh1G['S discount: "ShG|| not exceed less than one percent." Motion S8DODd8d by Mrs. Gilbreath and carried UO@OiFDOuS|y. (Also see City Council minutes for June 1' 1ASQ.) ADJOURNMENT There being OO further bUSiO8SS, the GOV8[DiOg Board's meeting Of the Redlands Financing /\U1hO[ib/ 8diOUOled at 4:56 P.K Redlands Financing Authority June 1. 1SQO Page