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HomeMy WebLinkAbout1989-01-25HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION MINUTES MEETING OF JANUARY 25, 1989 The Adjourned Meeting of the PFC was called to order by President Carpenter at the City of Huntington Beach Central Library, Huntington Beach, California at 4:03 P.hA. on the aforementioned date. Roll call was taken as recorded below. There were present from the Board: Absent: Also attending were: Melvin Carpenter Lorraine Faber Warren Hall Thomas West Michael Tierney Dan Villella, Assistant Secretary Shari Donoho, Recording Secretary Ron Hayden, Library Director The first order of business, motion made, seconded and approved to accept the November 30, 1988 regular meeting minutes. Under "Subsequent Needs" a motion was made, seconded and approved to place the Quarterly Treasurer's Report on the agenda for discussion. Mr. Villella reviewed the report with the Board. Motion made, seconded and approved to accept the First Quarter's Treasurer's Report. ,Mr. Carpenter noted at the request of the Board the Financial Audit Report was to be placed on the agenda for this meeting. Mr. Carpenter went onto indicate that he had not received subject audit nor did he see it agendized. Mr. Villella stated that the staff had requested, and the Auditor's usually prepare an individual report for the PFC. The Auditor's did have the PFC numbers calculated, but they have not developed an individual report to date. Indicating further that an individual PFC Financial Audit Report would be provided in the near future. Mr. Villella did submit for the Board's review the Comprehensive Annual Financial Report for the City of Huntington Beach. Mr. Villella then highlighted the sections relevant to the PFC. The Board discussed this matter and concluded that the individual PFC Financial Audit Report should be received and agendized for the April Meeting of the Board. Under New Business, Mr. Carpenter raised for discussion the topic of expanding the HBPFC Board of Directors to seven members as recommended by Mr. Hall at the November 30th meeting. �11r. Hall offered that he felt a seven member Board would be more conducive to obtaining a quorum as well as furthering the public's representation by the Board. Mrs. Faber felt that the Board was experiencing such a low level of activity that such an action was unnecessary. Further discussion was held. A motion was made, seconded and approved to amend the Bylaws of the Huntington Beach Public Facilities Corporation to expand the Board of Directors to seven members from the current five member board - 3 Ayes (Hall, West, Carpenter), 1 No (Faber). Next item on the agenda was discussion regarding Debt Reserve Requirement. Mrs. Faber indicated that at the November 30th meeting discussion was held by the Board regarding how it came to be that the PFC held a double reserve fund if a double reserve fund really existed. Research of all existing resolutions of the Board reflected that such action was not taken by resolution. Mrs. Donoho indicated that the phraseology regarding the Debt Reserve was not found in the either the Lease or Sublease, but that Section 506 of the Indenture addressed this item. Discussion was held relative to "surplus" reserve funds. Mr. West inquired as to the concern regarding the Debt Reserve, was it that the concern was that the PFC has too much money, or not enough. Mrs. Faber indicated that the topic was raised only to see whether the Board could quantify what amount would be "surplus". Mr. Villella answered Mr. West's question, indicating that the PFC definitely had enough money in the Debt Reserve Fund, the only question was whether the amount + reserved was in excess of that needed. Mr. West questioned whether the PFC was in jeopardy. Mr. Villella indicated negatively. As requested at their meeting of November 30, 1988, Mr. Villella reviewed and held discussion with the Board regarding the City's Capital Improvement Listing. Informational Items were reviewed and noted. Mr. Hayden joined the meeting at 4:32 P.M. Mr. Carpenter turned the meeting over to Mr. Hayden for his report. Mr. Hayden updated the Board with regards to the Library Expansion Project, indicating that this topic had gone before Council at their regular meeting of December 19, 1988. Council at that meeting requested that staff return to them with a phased approach to the expansion. This phase approach will then go back to Council the second meeting in February. Phase I will include the childrens programs, circulation area, realignment of Talbert and parking. Phase II would include the meeting rooms and auditorium. Phase III would include construction of the master plan for the complete parking design. Specific discussion was held with regards to each phase and its approximate cost. Mr. West introduced the possibility of another financing vehicle in the form of a defeasance of the second issue (Central Library Facility) for a bond or certificates of participation issue much in the same manner as the City defeased the first issue (Civic Center). Mr. Villella assisted the Board with better understanding the schematics -2- 89-001/4388j between a bond and a certificates of participation issuance. Discussion was held regarding Board members approaching City staff with the inquiry of whether the City had entertained such a financing vehicle. Mr. West emphasized that it would be the intent of the HBPFC Board not to take the role of adversary, but to be assisting and facilitating the City in such a financing vehicle if the City so desires. Mr. West inquired of Mr. Villella if the City has explored the possibility of such a certificates of participation issue regarding the Central Library Facility. Mr. Villella indicated that he felt staff has investigated this possibility, indicating that if the City has explored this possibility the idea may not have been discarded, but may have been placed on the "back burner" as a possibility. Mr. Villella stated that from Mr. Hayden's and the Board's perspective, the Library is the primary concern. The Library is also a City concern. However, Mr. Villella again directed the Board's attention to the Capital Improvement Listing and the many projects which are listed both in the "Funded" and "Unfunded" categories. The City must approach the Library Expansion much in the same manner as it does other major City projects - and that is a prioritization table must be established for the City as a whole, hence the Capital Improvement Program Listing. A motion was made to have Mr. Carpenter, as the Board's Chairperson, contact Mr. Paul Cook to ascertain whether or not City Administration, under Mr. Cook's administration, has considered the refinancing of the Library using certificates of participation. or bond indenture. If the answer is that the City has not considered this alternative financing method, the next question would, be whether the City would be willing to meet with the PFC to discuss such a. viable alternative. The motion was seconded and approved. Under Director's Comments, Mr. Carpenter directed the Recording Secretary to advertise for the open positions of the Board and to agendize interviews for the April meeting of the Board. At 5:03 P.M. the meeting was adjourned to the Regular Meeting of the Board at 4:00 P.M., April 25, 1989 at the Central Library Facility, Balboa Room, 7111 Talbert Avenue, Huntington Beach, California. R/IKa.D OH Recording Secretary, H.B.P.F.C. _ 1 D . VILLELLA Assistant Secretary, H.B.P.F.C. 89-001/4388j Note: Statements referred to hereinabove are noted as being in general only and are not intended to be verbatim quotes. Approved: iKAELVIN J. CARPENTER President, H.B.P.F.C. LORRAINE FABER Secretary/Treasurer, H.B.P.F.C. -4- 89-001/4388j