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HomeMy WebLinkAbout2002-12-09MINUTES RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY ADJOURNED MEETING MONDAY, DECEMBER 9, 2002 — 8:30 A.M. NORTH WING CONFERENCE ROOM PALM DESERT CIVIC CENTER 73-510 FRED WARING DRIVE, PALM DESERT, CALIFORNIA 92260 I. CALL TO ORDER President Kelly convened the meeting at 8:30 a.m. II. ROLL CALL Present: Commissioner Carlos L. Ortega Commissioner Larry Parrish Vice President Roy Wilson President Richard S. Kelly Also Present: Paul S. Gibson, Treasurer William L. Strausz, Authority Counsel Michael O'Connor, Deputy County Executive Officer Homer Croy, ACM for Development Services Justin McCarthy, ACM for Redevelopment Stephen Aryan, Assistant to the City Manager Patrick Conlon, Special Projects Administrator Rachelle D. Klassen, Secretary III. ORAL COMMUNICATIONS None IV. CONSENT CALENDAR A. MINUTES of the Regular Meeting of the Riverside County Palm Desert Financing Authority Meeting of November 4, 2002. Rec: Continue to the meeting of January 6, 2003. On a motion by Vice President Wilson, second by Commissioner Parrish, and unanimous vote of the Authority Board, the Consent Calendar was approved as presented. MINUTES ADJOURNED MEETING OF THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY DECEMBER 9, 2002 V. CONSENT ITEMS HELD OVER None VI. NEW BUSINESS A. REQUEST FOR APPROVAL OF CONTRACT NO. RCPDFA 20680. Commissioner Ortega reported the subject contract represented continued forward movement with preliminary work for the site of the proposed Coachella Valley Animal Campus. He noted that it would also require Riverside County to authorize the corporation to release more funds for this purpose. Upon question, Mr. Conlon responded that the agenda proposed two options; one contract was for the full architectural service package, the other was for Phases I and II of the package. In further response, he affirmed that it would be the same cost if done in stages versus all at once; it was proposed in two alternatives in order to recognize funding availability for the contract. Commissioner Ortega believed the Authority wanted to fund the Animal Campus project, and he recommended authorization of the architectural contract in total. Vice President Wilson felt the recommendation with options was important, as the County was very concerned about the State's budget situation. Therefore, exercising caution would be wise. Commissioner Parrish also believed there was no question at all about moving forward with the Animal Campus, and he supported the total contract. He noted that even if it were delayed at some point in the future, at least this part of the process would be completed. He concurred with Vice President Wilson that in light of the budget situation, caution was warranted, yet it was his hope that the Authority's intent could be preserved in the process. Vice President Wilson moved to, by Minute Motion: 1) Approve the subject contract for complete architectural services with WLC Architects, Rancho Cucamonga, California, for the proposed Coachella Valley Animal Campus in an amount not to exceed $324,000; 2) authorize appropriation of funds for same. Motion was seconded by Commissioner Ortega and carried by unanimous vote. VII. CONTINUED BUSINESS None 2 MINUTES ADJOURNED MEETING OF THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY VIII. OLD BUSINESS DECEMBER 9, 2002 A. CONSIDERATION OF FUNDING VARIOUS PUBLIC CAPITAL IMPROVEMENT PROJECTS VIA BOND PROCEEDS ISSUED BY THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY. Commissioner Ortega stated that at the last meeting, a substantial list of projects was reviewed. Since that time, it's been indicated to him that perhaps the County wouldn't be able to commit all the available funding for projects at this time. Therefore, two projects were reviewed for the Authority's consideration: 1) Animal Shelter; 2) Mecca Clinic. (A handout outlining sources and uses of funds was distributed at the meeting, which is of record and on file in the Secretary's office.) Commissioner Ortega went on to say that he and Mr. Aryan met with County staff to discuss the approximately $4 million held in trust by the Palm Desert Redevelopment Agency, which was projected to be increased by another $6 million in 2002/03. He said that assuming the County wanted to withdraw the $4 million for whatever purpose, there would still be a revenue stream of $6 million, which was growing every year due to continued development and construction. He asked the County how much of the $6 million it needed for other projects for which these funds were being used for debt service. He believed the existing projects being paid on were the Larson Justice Center in Indio, the County Building in Blythe, and a couple of others (about $3.2 million total), meaning over $2 million could be committed for other capital expenditures. Therefore, it was felt that a proposed funding of the Animal Shelter and Mecca Clinic would fall well within the range of uncommitted funds, requiring a bond issue of around $8.6 million over 30 years, with Tess than $1 million in debt service annually from a fund that would continue to grow. Responding to Vice President Wilson, Mr. Strausz answered that Palm Desert's Financing Authority issued the bonds for the Blythe facility; he didn't recall what the interest rate was, but he believed the rate would be better now. Commissioner Parrish commented that his staff would be very much in favor of refinancing the Blythe bond issue. Upon his question of how much the Mecca Clinic would cost, staff answered that it would be $3.4 million. In response to further question, Vice President Wilson noted that when the idea for the Mecca Clinic was first considered, Supervisor Buster challenged it, believing there was a greater need in other communities like Anza or Temecula. Therefore, a Countywide clinic needs analysis was performed, 3 MINUTES ADJOURNED MEETING OF THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY DECEMBER 9, 2002 and Mecca was the number one location. However, he added that if the RCPDFA wanted to move forward with funding that project, it should be explained to the Board of Supervisors. Commissioner Parrish didn't think there would be any opposition; it was desperately needed, and there were funds available. The only question that could be debated was flexibility of the available funds and what other non -Fourth District issues might surface. Mr. Conlon affirmed that the Animal Shelter would cost $5 million ($4.5 million plus a $400,00 contingency). In answer to Vice President Wilson's question about adding refinancing of the Blythe facility to the proposed bond issue, Commissioner Ortega stated that the last analysis performed was about two months ago, which showed at that time that it was feasible with a present value savings. However, he noted while the bond amount would increase, the $3.2 million amount was already figured into available funds. It would reduce part of the amount that the County was already paying in debt service, not come out of the $2.8 million left. He went on to explain that it was the City's/Agency's policy to only pursue refunding if a 3% present value savings was realized; the consultants were pursuing that line in this case as well. If it wasn't available at the time these bonds were to be issued, it wouldn't be included. Otherwise, it would be, providing flexibility to include the refinancing that was referred to as "refunding plus new money issue," which could be applied to the two new projects. He called attention to the handout, the line item for Project Construction Fund specifying that $7.7 million would be available for actual construction; there was also a line item set aside for debt service as an assurance of repayment, and the balance of the money was for cost of issuance. He added that the City's/Agency's experience has proven that buying bond insurance is prudent because the bond rating automatically goes to "AAA," providing a substantial savings. Vice President Wilson moved to, by Minute Motion, put together a package for the subject bond issue to include the projects of: 1) Mecca Clinic; 2) Animal Shelter; 3) Refinancing of the existing debt service with a notation of the comparative savings to be realized from the existing amount, all to be presented to the County Committee and/or the Board of Supervisors. Motion was seconded by Commissioner Ortega, who noted that the documents to be prepared would be the same, only the numbers would be different, and current numbers for the refinancing would be provided along with an option for inclusion in the issue. 4 MINUTES ADJOURNED MEETING OF THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY DECEMBER 9, 2002 Mr. Strausz remarked that the draft documents already prepared and sent out contained provisions for refunding the Blythe transaction, which could be eliminated, if so desired. President Kelly called for a vote on the motion, and it carried unanimously. IX. REPORTS AND REMARKS None X. ADJOURN TO CLOSED SESSION A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: APN 650-020-003 Negotiating Parties: Agency: Carlos L. Ortega/RCPDFA Property Owner: Animal Samaritans, Inc. Under Negotiation: x Price x Terms of Payment With Authority Board concurrence, President Kelly adjourned the meeting to Closed Session at 8:49 a.m. XI. ADJOURNMENT President Kelly reconvened the meeting at 8:55 a.m. and, with Authority Board concurrence, immediately adjourned, with no action being announced from Closed Session. ATTEST: RA HELLE D. KLASSEN, SECRETARY TO HE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY ..A HARD S. KEL Y, PRESIDENT 5