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HomeMy WebLinkAbout1986-01-29a HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION MINUTES REGULAR MEETING OF JANUARY 29, 1986 The Regular Meeting of the Public Facilities Corporation was called to order by President Wight at the City of Huntington Beach Civic Center, Huntington Beach, California at 3:00 p.m. on January 29, 1986. There were present from the Board: Faber Newman Wight Absent: Wamhoff Also attending: Dan Villella, Financial Operations Administrator Donald W. Kiser, Assistant Secretary Terry Dixon, Corporate Attorney for the HBPFC Arthur De La Loza, Deputy City Attorney The meeting was called to order by President Wight. Roll call was taken as recorded above. The first order of business was the approval of the November 27, 1985 Minutes. Motion was made, seconded and passed to approve the Minutes. Next, the approval of the January 8, 1986 Special Meeting Minutes. After noting a change should be made on Page 2, Line 4, motion was made, seconded and passed to approve the Minutes. After discussion, motion was made, seconded and passed to approve the August, September, October, November and December 1985 Treasurer's Reports., President Wight called for the acceptance of William Wamhoff's resignation from the Board. Motion was made, seconded and passed to accept, with regret, the resignation. Mrs. Faber made a request that a letter be sent to Mr. Thompson, City Administrator, and the City Council informing them of Mr. Wamhoff's resignation. Mr. Kiser assured Mrs. Faber this would be done. The Board Members were informed that the current Trustee for Bank of America is Robert Schneider. The next item on the Agenda was the Functions and Responsibilities of Trustee Report. This report was given by Mrs. Faber. She informed the Board that she had called and spoken with the former Trustee of Bank of America, Mary Lee, asking what the current cost of their trusteeship is, but the former Trustee did not have that information. However, in the records, dated July 1984, which Mrs. Faber had received from former PFC Secretary/Treasurer, Mrs. Houseal, the fee was noted as being $500.00 annually, plus a fee for every investment of $75.00. Mrs. Faber has asked that the present Trustee write the Board a letter stating what the fee structure is, at the present time. Mrs. Faber asked if the Treasurer's Reports could be mailed out with the agenda to the Board prior to the meetings. She was informed that the Treasurer's Reports are mailed to the Board as -2- soon as they are received by Mr. Kiser. The Board discussed the Treasurer's Report and its format. Again, Mr. Villella assured the Board that the format of the Treasurer's Report could be changed, if they so wish. Mr. Kiser informed the Directors that around 1976 or 1977, about the time of Proposition 13, the Board had by Minute Action called for a two year reserve of funds. This was not done by a resolution. The Board did this in order to cover all their bond debts in case the City should ever be in financial trouble. Since that time, the Board has always maintained the two year reserve, although the indenture only calls for one year. Mr. Wight questioned why the Construction Fund is excessive, since the construction has been completed. Mr. Kiser stated, the PFC has always maintained a Construction Fund, just to have it there, and if Bank of America had received a resolution from the Board to kill the fund, they would have done so. He continued, Bank of America moves the money around to cover bonds as needed. Mrs. Newman reported on the next item on the agenda, Obligations and Responsibilities of Directors toward PFC Investments/Excess Funds. She felt the Board should look at what options they have by law. That because there is a healthy amount of money there this particular Board of Directors could kind of get side tracked and could become politicized. While this may happen as a matter of course, this is something that should be guarded against. She felt this was why there was so much bitterness over the last seating of new Directors. The Board has to be real clear as to the direction they take. The Board has to determine whether or -3- N not they want to do as many things as they can for the City or retire some of the bonds early and help the people who invested in them. The Directors agreed, they should have a policy and a set of criteria under which they can act, regarding the above mentioned by Mrs. Newman. Mr. Wight felt they should start a policy consistent with the Indenture and By -Laws to the treatment of the excess funds. Unofficially, Mr. Wight will start work on the above. Mr. Kiser reported there are no major projects going on at the Civic Center at this time. However, there are some minor remodelings that the City will be funding. These are minor projects located on the third and fifth floors. Mr. Kiser informed the Board, the City Council has approved $115,000.00 for the reactivation of the pools and fountains at the Central Library. A consultant has submitted a bid for $17,000.00 for the specifications and redesign. The Council has also approved $26,500.00 for expanding a parking lot and additional lighting at the Central Library. The next item on the agenda was the acceptance of the resignation of Donald W. Kiser as primary City liaison and the acceptance of Dan Villella as Mr. Kiser's replacement. Mr. Kiser explained that both would remain Assistant Secretaries, but only exchange liaison roles. With regret, motion was made, seconded and passed to accept the above. Motion was made, seconded and passed to fix the dates, hour and am place of regular meetings of the PFC to be on the last Wednesday of every month, commencing on March 26, 1986; to be at the hour of 4:00 p.m.; and to be within the Civic Center of the City of Huntington Beach, California. The Board requested they be notified as to which Counci.lperson is the appointed PFC liaison. Also, if there is currently no appointee, would the Mayor please make the desired appointment. The Board called for a Special Meeting at 4:00 p.m., at the Civic Center, on February 12, 1986, for the purpose of interviewing applicants for the two vacancies on the Board. The Board also requested the seven applicants, who had applied previously, be notified of the meeting by mail. Mr. Wight reported he had checked into the insurance for the PFC and found that the Public Facilities Corporation is covered by the City's liability insurance. Mrs. Faber felt that after the vacancies on the Board are filled, it might be a good idea for Mr. Thompson, Insurance and Benefits Manager for the City, to make a presentation to the Board on insurance coverage. Mr. Terry Dixon, Corporate Attorney, was called upon to report his findings on the question of arbitrage which was brought up at the Special Meeting of January 8, 1986. He stated that his preliminary findings were that there is not an arbitrage problem. However, he felt the Board should check into this further, some time in the future. Motion was made, seconded and passed for a plaque to be made for Donald Kiser and Mary Jenkins for their service to the Board. Mrs. Faber and Sheri Donoho, Recording Secretary, will check into the preparation of the plaques. -5- After discussion, the Board decided it would not be necessary for Mr. Dixon, Corporate Attorney, to attend the next meeting. Mr. Dixon did request that the Board keep him informed of their business. The meeting was adjourned to the Special Meeting at 4:00 p.m. on Wednesday, February 12, 1986, to be held at the Civic Center. ACCEPTED: Stephen W. Wight President Respectfully submitted, nawl I/; - Q016/-� Mary Jen s Recor `ng Secretary Lorraine Faber Secretary/Treasurer -6-