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ANNUAL MEETING NOTICE
4:30 p.m.
City Council Chambers
100 Civic Center Drive
Newport Beach, CA 92660
�C * 1
1. Roll Call
2. Election of Officers
Mayor Chairperson of the Corporation
Mayor Pro Tem Vice- Chairperson of the Corporation
Council Members Corporation's Board of Directors
City Manager Corporation's Secretary
Finance Director Corporation's Treasurer
3. Approval of Minutes
4. Receive, discuss as necessary, and file Financial Report from the Corporation's
Treasurer
5. Public Comments
6. Adjournment
NOTICE OF SPECIAL MEETING
NOTICE IS HEREBY GIVEN that a Special Meeting of the City Council of the City of
Newport Beach has been scheduled for Tuesday, July 23, 2013, at 4:34 p.m. for the
purpose of holding a Newport Beach Public Facilities Corporation meeting (as per
agenda). The meeting will be held at the City Council Chambers, 100 Civic Center
Drive, Newport Beach, California.
t
Leilani I. Brown
City Clerk
City of Newport Beach
MY OF NEWPORT BEACH
TO THE FOLLOWING MEMBERS OF THE CITY COUNCIL:
Mayor Pro Tem Hili ncii Member Selicn
Council Member Henn Council Member Gardner
Council Member Petros R7ayar Curry
CQwn -dl Member Dalgie
AND TO THE FOLLOWING NEWS MEDIA:
The daily Pilot Chamber of Cammeme
Om— reeCCounty Resister Newport Beach Inde nest
NB Cen�I Library
PLEASE TAKE NOTICE THAT A SPECIAL MEETING of the City Council of the City of Newport Beach has been
called for and will be held on Tuesday the 23"' day of July, 2013, at the hour of 4 :30 p.m. in the City; Council
Chambers at the Newport Beach City Hall, 100 Civic Center Drive, Newport Beach, California.
The business to be transacted at said meeting Is as follows:
1. Public Facilities ConxWation (arc �r agendas
2.
Dated at Newport Beach, California, this Ht" , day of
r
Mayor ro
--A-------------°-------
nCOWL €DGMENT OF NOTICE
The City Council Members of the City of Newport: Beach received a copy of this Notice.
Name Received ni Date/ Time
Medialloti(s listed) %� >
Via F aaad Email °' a f C i17
G un 'i (�a ti. stwi� Via Email aad,+e� -Ears �� J` }�✓ 'tom y �i�`�'�
Attest;
city clerk - u r
a� 7 /zois
rg41 FoF0.lt�F
Mulvey, Jennifer
From:
ch2e- 02 @newportbeachca.gov
Sent:
Wednesday, July 17, 2013 3:31 PM
To:
mhenn527 @hotmail.com; Henn, Michael; Hill, Rush; Daigle, Leslie; Selich, Edward; Gardner,
Nancy; Curry, Keith; customerservice @ocregister.com; local @ocregister.com; City Clerk's
Office; Petros, Tony; editor @newportbeachindy.com; Christopher @newportbeachindy.com;
jill.cowan @latimes.com; jamie.rowe @latimes.com; McMillion, Elaine;
ksanchez@newportbeach.com
Subject:
Message from KONICA MINOLTA COPIER
Attachments:
SKONICA MIN13071714300.pdf
"RECEIVED AFTER AGENDA
7- .2x-1.3
July 23, 2013 Council Consent Calendar Comments
The following comments on items on the Newport Beach City Council agenda are submitted by: Jim Mosher
(jimmosher vahoo.com ), 2210 Private Road, Newport. Beach 92660 (949- 548 -6229)
Newport Beach Public Facilities Corporation Meeting
1. The printed agenda appears to be missing some of the Brown Act required notices
identifying, for example, a contact person for additional information.
2. In the draft minutes, under "3. Approval of Minutes for the Meeting of July 12, 2091" the
following corrections are suggested:
Ayes Diractars Hill, Selich, Henn, and Daigle; Vice - Chairperson Curry; and
Chairperson Gardner
Absent. =,� �,� �r' Director Rosansky
REGULAR MEETING
Item 1. Minutes for the July 9, 2013 Regular Meeting
1. I have no corrections to the minutes to offer, however with regard to Items 3 ( "Amendment
of the Balboa Village Advisory Committee Membership ") and 4 ("Amendment of the General
Plan/Local Coastal Program Implementation Committee Membership") I continue to think
the Council violated Government Code §ection 5;4972 by creating new appointive positions
and making non - emergency appointments to them, all in a single evening without
advertising for interested applicants.
2. in addition, with regard to the Item 3, filling of the "Balboa Village IWrchant Association
Business Board Member' position (per Exhibit A), the California Secretary of State
continues to have no record I can find of any recently created, or currently active, legal
entity with a name resembling that, even though the Council has budgeted, and plans to
give, $40,000 to it in the current fiscal year.
Item 6. Building Inspection and Plan Review Services
The report fails to make clear what need triggered staffs original $100,000 contract with VGA
Code Group dated September 1, 2011 (and ending June 30, 2012), or whether that need and its
continued existence have ever been carefully reviewed by the City Council.
Item 10. Agreement for Sewer Video inspection Services
1. The agreement begs the question of why the present in -house service costs so much more
than the same service provided by the selected outside vendor, and why that vendor's cost
is so much lower than most of the other bidders.
2. Without clear explanation, the proposed ten year contact term seems unusually long for a
service agreement of this type, particularly for an untested service.
1 i believe the Costa Mesa Sanitary District, which provides sewer service to some portions
of Newport Beach, and is perhaps more focused on sewer maintenance, has reduced its
July 23, 2013 Council agenda item comments - Jim Mosher Page 2 of 2
"hot- spots" to a considerably smaller fraction of miles than that suggested in the City's
report.
4. The fate of the City's existing sewer inspection equipment, which the report says would cost
$141,172 to repute, is left unclear, at least in the summary report.
Item 13. Budget Amendment to Accept a Check from the Newport Beach
Public Library Foundation
1. Although it is not clearly stated, I assume the recommended action is intended to include
actual acceptance of the check as well as approval of a budget amendment.
2. Although a small amount, even in total, I do not recall the acceptance of these gifts, or their
proposed uses, ever having been approved or recommended to Council by the City's Board
of Library Trustees, as would seem to be expected under City Charter Section 708M.
Item 14. Budget Amendment to Accept a Check from the Friends of the
Newport Beach Library
1. As in the previous item, I assume the intended action includes formal acceptance of the gift
(ceremonially presented on July 9), as well as approval of a budget amendment.
2. The Council may wish to be aware that the library "wish lists" appear to be prepared entirely
by library staff based on unknown input and criteria, and although the Board of Library
Trustees reviewed and approved a PowerPont of staff's draft of their 2013 -2014 Wish Lists
(one to be funded by the Friends and one by the Foundation) at their I %ia 0013 ra;e , ina,
it was with the understanding that it was only a draft, and might be modified by the donor
organizations.
3. Since no printed handout was provided at the May 6 meeting, and since the list, which is
not included with the present staff report, might have been subsequently changed, I don't
think either the Trustees or the public at large know for sure what "approved" uses the
$255,000 Friends gift has been accepted for.
Item 15. Sculpture In the Civic Center Park, Orange County Museum of Art
Memorandum of Understanding
1. As staff acknowledges in its report, the present proposal seems rather different than the
one reviewed, refined and approved by the City Arts Commission at its July 11.,2013
meeting, as well as being quite different from the original Peter Walker — OCMA plan that
the public had been expecting.
2. As I said to the Arts Commission at their July 11 meeting (but due to limitations on public
comment at those meetings, affertheir recommendation had been voted on), i believe
interest in the proposed project, would be considerably enhanced if the selection of the
successful artists from among all entries received for this public art exhibition was made
with public input at a widely publicized public session of the City Arts Commission, rather
than having the entries "vetted" by a private entity whose tastes may differ from those of the
community, as seems presently to be proposed.
3. It remains unclear tome why the original Peter Walker — OCMA plan for a rotating display
of loaned sculptures at the locations shown on Attachment A was, and is being,
abandoned.
Agenda Item No. PFC -3
July 23, 2013
City Council Minutes
Newport Beach Public Facilities Corporation
July 24, 2012 — 4:30 p.m.
1. ROLL CALL
Present: Council Member Hill, Mayor Pro Tem Curry, Mayor Gardner, Council Member Selich,
Council Member Henn, Council Member Daigle
Excused: Council Member Rosansky
2. ELECTION OF OFFICERS
3.
as Chairperson of the Corporation, the Mayor Pro
the Council Members as the Corporation's Board of
Secretary, and the Finance Director as the Q060rai
The motion carried by the following roll call
Ayes: Council Member Hill,
Council Member Henn,
Absent: Council Member Rosan
of the subject mimtte4y Aljprove ds written, and order
The motion carried by the following roll call vote:
d bWi,,Selich to to elect the Mayor
:e- d3airperson of the Corporation,
City Manager as the Corporation's
r for the 2012 -2013 fiscal year.
Gardner, Council Member Selich,
to waive reading
Ayes: Board of Directors Hill, Selich, Henn, and Daigle; Vice - Chairperson Curry; and Chairperson
Gardner
Absent: Board of Director Rosansky
4. NEWPORT BEACH PUBLIC FACILITIES CORPORATION ( NBPFC)
FINANCIAL REPORT
Corporation Treasurer McCraner reported that the only outstanding NBPFC bonds are the Civic
Center bonds which were issued in November 2010. Additionally, the financial information in the
staff report indicated the current year's activities; the net debt service on the bonds, which was
about $7.1 million; and that all Federal subsidies have been received by the City. The bonds were
funded by lease revenue payments from the City and have an outstanding principal balance of
$124,920,000 as of June 30, 2012.
Jim Mosher noted that the City borrowed money to finance the new Civic Center, reviewed
how much has been paid on the debt, and asked when the debt will be paid off. Corporation
Treasurer McCraner reported that the bonds are scheduled to be paid off in July 2040.
5.
6.
In response to Board of Director Daigle's question regarding the Library Bonds, Corporation
Treasurer McCraner indicated, that approximately $4 million in the Library bonds were refunded
with the Civic Center Certificates of Participation (COP), and bonds received for the refunding
portion will be paid according to the same schedule as the Library bonds, ending in 2019. Board of
Director Henn clarified that it was a defeasance. Treasurer McCraner stated that the Library bonds
were prepaid by the City in an escrow account and are no longer on the City's debt schedule.
PUBLIC COMMENTS ON NON- AGENDA ITEMS - None
ADOURNMENT - 4:35 p.m.
The agenda for the Newport Beach Public Facilities Corporation was posted on July 19,
2012, at 4:45 p.m. on the City Hall Bulletin Board locat�utside of the City of Newport
Beach Administration Building.
Agenda Item No. PFC-4
July 23, 2013
FROM: Finance Department
Dan Matusiewicz, Finance Director/Treasurer
949 -644 -3123, danm @newportbeachca.gov
PREPARED BY: Trevor Power, Accountant
APPROVED: A,,.,�_.... �
_ ) �N
TITLE: Newport Beach Public Facilities Corporation
ABSTRACT:
The Bylaws of the Newport Beach Public Facilities Corporation call for an annual
meeting of the Board of Directors.
RECOMMENDATION:
Convene the meeting of the City of Newport Beach Public Facilities Corporation for the
2013 -14 fiscal year, elect officers, approve minutes of the July 24, 2012 meeting, and
receive and file this brief financial report.
There is no fiscal impact related to this item. Council members who serve as members
of the Newport Beach Public Facilities Corporation do not receive compensation for the
Public Facilities Corporation role.
DISCUSSION:
A common and efficient way to finance public facilities is through the use of Certificates
of Participation (COPs). All COPs are structured so that the ownership of the building,
equipment or land being financed (the "Project ") is vested in a third -party entity that then
leases the Project back to the public agency conducting the financing, giving that
agency the use or occupancy of the Project in return for lease payments. The third -party
entity assigns the lease payments to a trustee, who then remits the lease payments to
investors of the COPs. The City of Newport Beach Public Facilities Corporation was first
formed for this purpose in 1988 in order to specifically finance the acquisition and
construction of the Cannery Village Parking Lot. The Cannery Village Parking Lot has
long been completed and the debt retired. The Corporation's role was later expanded to
Newport Beach Public Facilities Corporation
July 23, 2013
Page 2
allow for the construction of public facilities, more generally, when financing of the
Central Library construction was necessary in 1992.
The City Council sits as the Board, with the City Manager serving as Secretary, and the
Finance Director serving as Treasurer. Normally, the Mayor will serve as Chairperson of
the Board, with the Mayor Pro -Tern serving as Vice - Chairperson.
In Fiscal Year 2010 -11, $126,660,000 of Series 2010 COPs was issued to provide
financing for the acquisition, improving and equipping of a new Civic Center (which
includes a new City Hall, an expansion to the Central Library, civic park and a parking
structure).
A portion of the Series 2010 Certificates was issued to refinance the $3,990,000
principal outstanding on the 1998 Library COPs resulting in a net present value savings
of $429,500. Accordingly, the 1998 Library COPs have been defeased pursuant to the
defeasance provisions of the 1998 Trust Agreement.
The remaining proceeds from the Series 2010 Certificates were used to finance the
acquisition, improvement and equipping of the Civic Center Project. As of June 30,
2013, the outstanding principal balance of the Series 2010 Certificates is $122,230,000.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act ( "CEQA °) pursuant to Sections 15060(c)(2) (the activity will
not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it
has no potential for resulting in physical change to the environment, directly or
indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Submitted by:
Finance Director(Treasurer
Attachments: Financial Statements
NEWPORT BEACH PUBLIC FACILITIES CORPORATION
Comparative Balance Sheet
June 30, 2013 and 2012
Assets
Cash with fiscal agent
Due from other funds
Other
Total Assets
Liabilities and Fund Balances
Liabilities:
Accounts payable
Due to other funds
Total Liabilities
Fund balances:
Nonspendable
Restricted for:
Debt Service
Committed
Assigned
Unassigned
Total fund balance
Total liabilities and fund balance
2013 2012
$ 7,838,990 $ 7,904,634
$ 7,838,990 $ 7,904,634
7,838,990
7,904,634
7,838,990 7,904,634
$ 7,838,990 $ 7,904,634
This page was missing from original report
NEWPORT BEACH PUBLIC FACILITIES CORPORATION
Comparative Statement of Revenues,
Expenditures and Changes in Fund Balances
June 30, 2013 and 2012
Revenues:
Lease revenues
Investment income
Federal interest subsidy
Total revenues
Expenditures:
Debt service:
Principal
Interest and fiscal charges
Service fees
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balance, beginning
Fund balance, ending
KIM
Agenda Item No. PFC -4
July 23, 2013
PMPa
$ 8,067,030 $ 8,078,506
125 217
2,424,915 2,535,196
10,492,070 10, 613, 919
2,690,000
7,867,714
10,557,714
(65,644)
7,904,634
1,740,000
7,941,268
9,681,268
932,651
6,971,983
$ 7,838,990 $ 7,904,634