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HomeMy WebLinkAbout12-18-1985ADJOURNED REGULAR MEETING - December 18, 1985 An adjourned regular meeting of the City Council of the City of Dublin was held on Wednesday, December 18, 1985 in the meeting room of the Dublin Library. The meeting was called to order at 7'33 p.m. by Mayor Peter Snyder. ROLL CALL PRESENT' Councilmembers Hegarty, Jeffery, Moffatt, Vonheeder and Mayor Snyder. PLEDGE OF ALLEGIANCE The Mayor led the Council, Staff and those present in the pledge of alleg- iance to the flag. CONSENT CALENDAR On motion of Cm. Hegarty, seconded by Cm. Jeffery, and by unanimous vote, the Council took the following actions' Denied claim submitted by Timothy Simpson and directed Staff to notify insurance carrier; Approved Warrant Register in the amount of $130,512.i8; Cm. Vonheeder requested that the minuVes of the December 9th meeting be removed. Regarding the motion related to the City offering Murray School District $112,25~.~8 for the Dolan School site, Cm. Vonheeder felt that it should be clarified that this price is per acre. On motion of Cm. Vonheeder, seconded by Cm. Moffatt, and by unanimous vote, the Council approved the Minutes as corrected of Regular Meeting of December 9, 1985. PUBLIC HEARING ORDINANCE APPROVING LEASE TRANSACTION CIVIC CENTER, PUBLIC FACILITIES PROJECT NO. 1 Mayor Snyder opened the public hearing. At its meeting of December 9, 1985, the City Council adopted a Resolution establishing a public hearing on December 18, 1985, for the purpose of considering a proposed lease transaction for the lease of the site of the municipally-owned civic center complex and related facilities to be acquired by the City and the lease of the completed civic center complex and related facilities from Dublin Information, Inc. CM-I-262 Adjourned Regular Meeting December 18, 1985 Also at the December 9, 1985 meeting, an Ordinance was introduced which will provide for the acquisition and construction as well as the financing. Annual lease payment by the City is estimated at 1 to 1.3 million dollars and is dependent upon interest rates obtained by the City for the issuance of certificates of participation. The purpose of the public hearing is to also present interested persons · with an opportunity to submit financial proposals for the proposed lease transaction, which will offer the City the greatest economic return for this project. The ordinance proposed is an urgency ordinance which would provide for the adoption of several agreements between the City and Dublin Information, Inc. These agreements consist of a Lease Agreement, an Agency Agreement, and a Trust Agreement. The Lease Agreement provides that the City lease the civic center site as well as the project improvements from Dublin Information, Inc. The Agency Agreement provides for the appointment of the City as Agent for Dublin Information, Inc. for the purposes of construct- ing, acquiring, and operating the civic center complex. The Trust Agreement provides that the City and Dublin Information, Inc., authorize the sale of participation interests in the lease agreement by Dublin Information, Inc., as trustee, at rates of interest to be subsequently determined and approved by the City. Robert Haight, Bond Counsel explained thaV Exhibit C of the Lease Agreement is being modified. The new Maturity Schedule will have the same schedule of payments year to year rather than a decreasing payment schedule. This schedule also appears in the Trust Agreement. Mr. Haight introduced Ken Martin, Vice President of First California Regional Securities who will be flying to New York the following day to get the bonds rated. Mr. Haight also indicaved that an item had been added to the agenda related to a temporary loan of $1,000,000 by the City of Dublin to Dublin Information, Inc. This will basically establish a third fund which will be a reserve fund and will have a $1,000,000 cap on it. Any interest earned would go back into the City's General Fund. When the issue is retired, the funds will go back into the Street Improvement Fund. Mr. Haight reported that any interested party has a right to inspect the lease documents which are on file with the City Clerk to see if a better package can be provided. Cm. Jeffery questioned with regard to Section 4.03 of the Lease Agreement, what would happen if insurance cannot be obtained. Mr. Haight explained that the City of Capitola has an issue which will close at approximately the same time as Dublin's, and their insurance has been cancelled. Capitola then entered into a pooled arrangement with other cities. Mr. Haight explained that a worse case scenario was set forth. Basically if a City cannot obtain insurance, it becomes self-insured. CM-~-263 Adjourned Regular Meeting December 18, 1985 Discussion was held regarding Page 22, Section 7.10 Form of Certificates of Officers. Mr. Haight explained that this is basically a Form of Certificate for Mr. Ambrose or the City Attorney or the Bond Counsel. Anyone that mak~es these opinions must know what they are talking about; i.e. they are responsible for what they say. Tricia Wortman, a Senior at Valley High School questioned the Council if this sale included land on which the school sits. Mayor Snyder responded that it did not. Ms. Wortman questioned what would happen when the building starts, and whether the. City intends to relocate the school. Mayor Snyder stated he didn't feel that anyone could really answer this question at this point in time, but that it might be advisable to reach some agreement with the School District to do something different with that facility or it may possibly be the wishes of everyone to leave it as it is. Mayor Snyder indicated there was no desire to disrupt the program that is there at this time. Ms. Wortman responded that this was the answer she was looking for. Mayor Snyder gave a brief history of how, after many months of searching, the City came to select this particular site. Mayor Snyder closed the public hearing. On motion of Cm. Jeffery, seconded by Cm. Vonheeder, and by unanimous vote, the Council waived the reading and adopted ORDINANCE NO. 34 - 85 APPROVING A CERTAIN LEASE TRANSACTION FOR THE LEASE BY THE CITY AS LESSEE OF CERTAIN PUBLIC FACILITIES AND APPROVING AND AUTHORIZING THE EXECUTION OF CERTAIN LEASES AND OTHER RELATED FINANCING DOCUMENTS IN CONNECTION WITH THE DUBLIN PUBLIC FACILITIES PROJECT NO. 1 PUBLIC HEARING RESOLUTION APPROVING ISSUANCE OF 1985 CERTIFICATES OF PARTICIPATION CIVIC CENTER, PUBLIC FACILITIES PROJECT NO. 1 Mayor Snyder opened the public hearing. Staff explained that this Resolution authorizes the issuance by the City of Dublin of $11,968,000 in Certificates of Participation for the purpose of financing Public Facilities Project No. 1. This Certificates of Participation issue is in accordance with the Lease, Agency and Trust Agreements adopted by the City as part of its adoption of Ordinance No. 34-85. This Resolution also approves the final form of the Lease Agreement, Agency Agreement and Trust Agreement subject to such changes, additions or deletions as may be recommended by Bond Counsel for the intended transaction. CM'4-264 Adjourned Regular Meeting December 18, 1985 The Resolution also provides that a Preliminary Offering Statement is to be filed with the City Clerk and approved by the City Manager. The Preliminary Offering Statement will be prepared by the purchaser of the Certificates. The Resolution also authorizes the modifications of the Preliminary Offering Statement to a Final Offic.ial Statement subject to the approval by Bond Counsel and the City Manager. The Resolution also specifies how the proceeds of the Certificates are to be spent. The Resolution appoints Dublin Information, Inc., as Trustee for the City and the owners of the Certificates as provided for in the Trust Agreement. The Resolution approves the form of the Certificates which were presented to the Council at the meeting. The Resolution provides that a Purchase Contract be filed with the City Clerk and approved by the City Manager and sets forth the purchase price of the Certificates and the payment schedule for the interest on the Certificate as well as principal. The Resolution provides that the City accepts the terms of the Certificates and authorizes the Mayor or the City Manager to accept the offer made in the Purchase Contract. Staff indicated that the exchange of cash is anticipated to occur on December 30th. Mayor Snyder closed the public hearing. On motion of Cm. Hegarty, seconded by Cm. Moffatt, and by unanimous vote, the Council adopted, with the new schedule inserted RESOLUTION NO. 13~ - 85 APPROVING THE ISSUANCE BY THE CITY OF DUBLIN OF ITS 1985 CERTIFICATES OF PARTICIPATION (PUBLIC FACILITIES PROJECT NO. 1) AND THE EXECUTION OF CERTAIN DOCUMENTS AND APPROVING TERMS THEREOF CONTRIBUTION TO DUBLIN INFORMATION, INC. ACQUISITION OF REAL PROPERTY OWNED BY GALCOR DEVELOPMENT (CALIFORNIA), INC. Dublin Information, Inc., is considering an agreement of purchase and sale with Galcor Development (California), Inc., for real property on Dublin Boulevard known as Assessor's Parcel 9~1-1~01-01~-05. Staff explained that it is anticipated that all costs associated with the acquisition of this property will be financed with certificates of participation, with the exception of the $100,000.00 required by the sales agreement to be deposited upon opening of escrow and the closing costs, which must be borne by Dublin Information, Inc., which are presently estimated nov to exceed $15,000.00. Since Dublin Information, Inc., will have no funds other than those which are generated from the sale of certificates of participation, and the proposed issuance of certificates of CM-~-265 Adjourned Regular Meeting December 18, 1985 participation does not presently include closing costs or the $100,000.00 necessary to open escrow, and further, such sale of certificates of participation will occur subsequent to the required date for the opening of escrow specified in the agreement of purchase and sale, Staff recommended that the City Council authorize the contribution of $115,000.00 to Dublin Information, Inc. to offset a portion of the acquisition cost and all of the closing costs related to the sale. Staff indicated that approximately $220,000 has been budgeted this year for the civic center. On motion of Cm. Hegarty, seconded by Cm. Moffatt, and by unanimous vote, the Council authorized the contribution of $100,000 toward the acquisition of the property presently owned by Galcor Development (California), Inc., and an amount not to exceed $15,000 for costs associated with closing the escrow. TEMPORARY LOAN FROM CITY OF DUBLIN TO DUBLIN INFORMATION, INC. Determination has been made that it would be advantageous for the City to earmark $1,000,000 of its present Street Improvement Reserve as an emergency interest and principal reserve for the issuance of the Certificates of Participation related to the acquisition and construction of a civic center complex. It is standard practice to include such a reserve as part of the Certificates of Participation issue. However, this increases the cost of issuance of the Certificates. If the City sets up a reserve to serve the same purpose outside of the Certificates of Participation issue, the cost of issuanc'e to the City is lower, while still providing the City with a good marketing position. The $1,000,000 would be repaid to the City upon the retiring of the Certificates. The City could not spend any of the reserve until the Certificates had been paid off. During the term of the Certificates, all interest from investment of the $1,000,000 will be paid to the City's General Fund. The City would be restricted from using the $1,000,000 until the Certificates of Participation have been paid off. Ail interest proceeds from the investment of the $1,000,000 would be paid to the General Fund during the term of the Certificates of Participation. The loan of these reserves to Dublin Information, Inc., will improve the City's ability to obtain the most competitive interest rate on the Certificates of Participation. Staff indicated that a separate fund would be set up in the City's books. On motion of Cm. Jeffery, seconded by Cm. Vonheeder, and by unanimous vote, the Council authorized~a temporary loan in the amount of $1,000,000 from the City's Street Improvement Reserve to Dublin Information, Inc. CM-~-266 Adjourned Regular Meeting December 18, 1985 OTHER BUSINESS Resignation - Planning Commissioner Alexander Cm. Moffatt reported that his appointment to the Planning Commission, John Alexander had contacted him and indicated that due to health reasons, he is resigning his position on the Planning Commission. The Council indicated they hate to see him leave the Commission and directed Staff to prepare a Resolution of Appreciation. Paramedic Services Cm. Jeffery reported that it was her understanding that a decision needed to be made by March with regard to the paramedic situation. City Manager Ambrose indicated that the electorate had voted to join the EMS District, and since there was some question with regard to the level of service that has been received, he would get together with Chief Phillips to clarify. Amendment to Solid Waste Management Authority Plan Mayor Snyder indicated he had attended a meeting of the Solid Waste Management Authority and the amendment related to San Francisco waste was voted on. The Amendment passed by a 15 yes, 3 no and 1 abstention vote. The Cities of Hayward and Emeryville and the Castro Valley Sanitation District voted against the amendment. ADJOURNMENT There being no further busine.ss to come before the Council, the meeting was adjourned at 8'20 p.m. C'itF' ~l~e rk CM-~-267 Adjourned Regular Meeting December 18, 1985