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HomeMy WebLinkAbout2006-13 - Facilities Finance Review CommitteeRESOLUTION NO. 2006- 13 A RESOLUTION OF THE CITY COUNCIL OF NEWPORT BEACH, CALIFORNIA ESTABLISHING A FACILITIES FINANCE REVIEW COMMITTEE WHEREAS, the City Council has had under consideration the construction of a civic center project, consisting of a new city hall, a replacement fire station and a parking garage; and WHEREAS, the City staff was working with a financial team for the issuance of Certificates of Participation (GOP's) as the project's financing instrument; and WHEREAS, concerns have been expressed in the community as to whether COP's are the proper financing mechanism for this project and whether the City can afford this type of debt financing. NOW, THEREFORE, BE IT RESOLVED by the City Council of City of Newport Beach as follows: Section 1. The Facilities Finance Review Committee is hereby established. Section 2. The Commission shall consist of seven to eleven (7 -11) residents, appointed by the City Council and three (3) Ad- Hoc City Council Members, appointed by the Mayor. Section 3. The Mission Statement of the committee states: "after reviewing the 20 year facility needs of the City and the City's financial capacity to meet those needs, make recommendations to the City Council on financing, budgeting and revenue methods which will allow those needs to best be addressed for the continuation of high quality City services to meet the community's needs." Section 4. PROCESS: A. All Committee meetings are to be open to the public. Public comments and questions are allowed to be heard during each meeting, at the discretion of the Committee's Chair, as long as they do not hinder the Committee in making effective use of its time. B. City staff will be provided to take minutes of each meeting. Meeting minutes will be available no later than the beginning of each meeting. C. Any questions the Committee has necessary to proceeding with its work will be addressed to the City Council ad -hoc members or City staff. If unanswerable, the questions should be posed to the City Council in writing. D. The Committee should review the 20 year facility needs list and cost estimates prepared by staff for the Committee's consideration. E. Review the methods used by the City in the past for financing its facilities. F. The Committee should review the current and long term future financial status of the City, giving particular attention to the assumptions on which the long term financial projections are based. G. The Committee should review a complete listing and hear a thorough explanation of financing alternatives available to public agencies to finance public facilities. H. The Committee will disband after the Committee's oral presentation has been made, unless its life is extended by action of the City Council. Section 5. FACILITY FINANCE CONSIDERATIONS: A. Take into consideration the potential rise and fall of interest rates and the effect those changes might have on short and long term cost of facility financing. B. Take into consideration the short and long term costs of labor, construction materials, and other cost factors which have the potential to impact the City's ability to afford its facility needs. C. Consider revenue enhancement alternatives which are available to the City for financing its facility needs. D. Consider how the proposed Initiative to require a public vote for the City to enter into certain kinds of debt would affect the ability of the City to meet its long term facility needs and what the cost to the City might be under the Initiative's requirements. E. Consider how the timing of facility replacements or refurbishments over the next 20 years can best be staggered in terms of affordability. F. Use today's dollars in estimating future financing needs and costs. Section 6. WRITTEN AND ORAL REPORTS: A. The Committee's written report should list the facility needs and costs that it reviewed, make an assessment on the short and long term financial ability of the City to replace /refurbish its needed facilities, identify the assumptions that are key to making that financial assessment, assess the implications of the potential Initiative which would require a public vote for the City's issuance of certain debt, and make recommendations as to how the City should position itself to meet the community's public facility needs. B. The Committee's written report should be submitted to the City Council no later than May 1, 2006. The Committee is requested to complete its work in a thorough and complete manner, as soon as possible, and earlier than the May 1st date, if feasible. C. The Committee is asked to select a committee member to provide an oral presentation to the City Council covering the written report's considerations, findings and recommendations, after the written report is completed. ADOPTED this 14th day of February 2006. Mayor ATTEST: 0 i�d� VMd STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, LaVonne M. Harkless, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing resolution, being Resolution No. 2006 -13 was duly and regularly introduced before and adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the 14th day of February 2006, and that the same was so passed and adopted by the following vote, to wit: Ayes: Curry, Selich, Rosansky, Ridgeway, Daigle, Nichols, Mayor Webb Noes: None Absent: None Abstain: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 15th day of February 2006. (Seal) City Clerk Newport Beach, California