The URL can be used to link to this page

Home My WebLink AboutPrelim Minutes - FA 04/11/201991:Me\211111111 PRELIMINARY MINUTES PALM DESERT FINANCING AUTHORITY MEETING THURSDAY, APRIL 11, 2019 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 CALL TO ORDER - 3:00 P.M. President Weber convened the meeting at 3:00 p.m. II. ROLL CALL Present: Commissioner Jan C. Harnik Commissioner Sabby Jonathan Commissioner Kathleen Kelly Vice President Gina Nestande arrived at 3:03 p.m. President Susan Marie Weber Also Present: Lauri Aylaian, Chief Administrative Officer Robert W. Hargreaves, City Attorney Rachelle D. Klassen, Secretary Lori Carney, Director of Administrative Services Russell Grance, Director of Building & Safety Ryan Stendell, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Finance/City Treasurer Tom Garcia, Director of Public Works Stephen Y. Aryan, Risk Manager Ty Davis, Division Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Bryan White, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Matt Martello, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Department M. Gloria Sanchez, Management Specialist II With Authority Board concurrence, President Weber adjourned the meeting to Closed Session of the City Council and Successor Agency to the Palm Desert Redevelopment Agency at 3:01 p.m. She reconvened the meeting at 4:00 p.m. PRELIMINARY MINUTES DRAFT PALM DESERT FINANCING AUTHORITY MEETING APRIL 11, 2019 III. CONSENT CALENDAR For clarification, Financing Authority Consent Calendar is combined into the CITY COUNCIL AGENDA, Section XII - CONSENT CALENDAR and considered jointly. It appears here only for record -keeping purposes. A. MINUTES of the Financing Authority Meeting of September27, 2018 (Item T on City Council Agenda Section XII - Consent Calendar). Rec: Approve as presented. Upon a motion by Harnik, second by Nestande, and 5-0 vote of the City Council, Successor Agency Board, Financing and Housing Authority Boards (AYES: Harnik, Jonathan, 'Kelly, Nestande, and Weber; NOES: None), the Consent Calendar was approved as presented. IV. CONSENT ITEMS HELD OVER None V. RESOLUTIONS None VI. NEW BUSINESS A. REQUEST FOR ADOPTION OF THE PALM DESERT "STATEMENT OF INVESTMENT POLICY, AS AMENDED" (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL, SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, AND PALM DESERT HOUSING AUTHORITY). Deputy City Treasurer Thomas Metz stated adoption of the Palm Desert "Statement of Investment Policy, As Amended," was requested as part of the Finance Department's annual review process. He said several changes were being recommended, either to make the Policy more conservative or to align it more closely with the State Investment Code. Mayor/Chair/President/Chairman Weber added that this matter was presented to the Audit, Investment & Finance Committee on March 26 and given approval. 2 PRELIMINARY MINUTES I D R A F T PALM DESERT FINANCING AUTHORITY MEETING APRIL 11, 2019 Mayor Pro Tem/Vice Chair/Vice President/Vice Chairman Nestande moved to waive further reading and adopt the Palm Desert Statement of Investment Policy, As Amended, with: 1) City Council Resolution No. 2019-15; 2) Successor Agency Resolution No. SA -RDA 076; 3) Financing Authority Resolution No. FA-69; 4) Housing Authority Resolution No. HA-91. Motion was seconded by Councilmember/Director/Commissioner/Member Kelly and carried by 5-0 vote (AYES: Harnik, Jonathan, Kelly, Nestande, and Weber; NOES: None). B. CONSIDERATION OF UNIVERSITY PARK COMMUNITY FACILITIES DISTRICT (CFD) BOND REFUNDING (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Senior Management Analyst Veronica Tapia commented that of the $70 million originally issued in 2006-2007 for this CFD, approximately $28 million remains for property owners to pay debt service on annually. She noted that the economic downturn occurred subsequent to this debt issuance, and the major property owner here currently is University Park Investor LLC (UPI) at 63%. They have completed the entitlement process, are now in the grading permit process and asked the City to see if any cost savings could be achieved with a refunding. She went onto say that the City has engaged its municipal advisor for such review, and he came back with a savings of $4.65 million over remaining life of the bond, which is approximately$273,000/year going back to property owners. Generally,she said if there is a net present value (NPV) savings of around 3%, it's said to be 'a .good cost savings to refund; this particular issue is conservatively estimated to have 11.45% NPV, with staff believing there is slightly more if refunding is closed by the September 2019 call date. Therefore, staff was requesting authority to engage the finance team and move forward with documentation required to refund. The Audit, Investment & Finance Committee nominated two of its members as an underwriter selection subcommittee to choose one from the pool approved by City Council in 2018. She pointed out that there will be no impact to the General Fund, with all costs associated with the financing team needed to accomplish the refunding being borne by the cost of issuance. She offered to answer questions. Councilman/Commissioner Jonathan commended staff for its work on this item. He added that periodically the City refinances/refunds debt and asked staff if there was a process for systematically reviewing savings opportunities. Ms. Tapia answered that, generally, staff responds whenever a pool participant comes forward to alert the City that a particular savings would benefit the homeowners/property owners; or if the property owner comes in to specifically request the City take a look. Further responding, she K1 PRELIMINARY MINUTES DRAFT PALM DESERT FINANCING AUTHORITY MEETING APRIL 11, 2019 confirmed that the City had not initiated such a review previously and reiterated that it waits for an affected property owner to make a request instead. Councilman/Commissioner Jonathan said he would leave it to staff's discretion, but felt it prudent to initiate review for potential opportunities. Councilmember/Commissioner Harnik moved to, by Minute Motion, authorize: 1) City Manager and the Finance Officer (Director of Finance of the City of Palm Desert) to begin working with the financing team to prepare necessary preliminary documentation for issuance of Refunding Bonds for University Park 2006A bonds— including entering into engagement letters and agreements with the financing team for their services; 2) staff to select an underwriter from the approved Underwriters Pool, based on criteria established in the Request For Qualifications (RFQ) dated June 4, 2018; and prioritized by the refunding needs of the CFD. Motion was seconded by Mayor Pro Tern/Vice President Nestande and carried by 5-0 vote (AYES: Harnik, Jonathan, Kelly, Nestande, and Weber; NOES: None). VII. CONTINUED BUSINESS None VIII. OLD BUSINESS None IX. PUBLIC HEARINGS None X. REPORTS, REMARKS, AND AUTHORITY BOARD ITEMS REQUIRING ACTION A. CHIEF ADMINISTRATIVE OFFICER None B. AUTHORITY COUNSEL None C. PRESIDENT AND MEMBERS OF THE AUTHORITY None 0 PRELIMINARY MINUTES DRAFT PALM DESERT FINANCING AUTHORITY MEETING APRIL 11, 2019 XI. ADJOURNMENT With Authority Board concurrence, President Weber adjourned the meeting at 5:37 p.m. ATTEST: RACHELLE D. KLASSEN, SECRETARY PALM DESERT FINANCING AUTHORITY SUSAN MARIE WEBER, PRESIDENT 5