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:
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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