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HomeMy WebLinkAbout08.a. Annual Meeting of CCCSD Facilities Financing Authority�I CENTRAL CONTRA COSTA SANITARY DISTRICT FACILITIES FINANCING AUTHORITY The Central Contra Costa Sanitary District Facilities Financing Authority (CCCSDFFA) is a non - profit corporation that was established on November 14, 1994 through Board action to facilitate the borrowing of funds using long -term Revenue Installment Certificates (Certificates of Participation). Background In conjunction with the 1994 -95 Capital Improvements Financing Program, the Board approved borrowing $25 million by issuing 20 -year revenue bonds. As a requirement of the Installment Sale Agreement for delivery of the bond certificates, if was necessary to form a non - profit corporation to sell the facilities improvements to the District. Thus, the CCCSDFFA was formed, bylaws were adopted, a time and place for regular meetings was established, and a resolution was adopted approving the issuance of the bonds. Regular meetings of the CCCSDFFA Board are generally held following the first District Board meeting in January each year. Summary of Past Activity 1994 In December 1994, the CCCSDFFA was utilized to facilitate issuance the 1994 Revenue Installment Certificates (Certificates of Participation) in the amount of $25 million for a term of 20 years. All payments for the capital projects supported by the proceeds were made from the District's Sewer Construction Fund. Once all the capital projects supported by the proceeds were substantially complete, payments were made from the Running Expense Fund. 1998 In October 1988, revenue bonds were issued to refund all outstanding debt because interest rates had declined significantly. After the refunding, on advice of Bond Counsel was sought as to whether the CCCSDFFA should be dissolved. Counsel advised that it must continue to exist and meet on an annual basis until the earliest call date of the older Certificates of Participation, September 2004. At that time, the CCCSDFFA Board can decide whether it wishes to continue to exist or dissolve. 2002 In May, 2002, Revenue Installment Certificates were issued in the amount of $16,565,000 for a term of 20 years. 2009 In November and December, 2009 the District sold a total of $54 million in both taxable and non- taxable bonds. The purpose of the sale was to refund the 1998 and 2002 outstanding bonds of $24 million due to very favorable interest rates and to issue new debt to help fund several large capital projects included in the Capital Budget. Tax exempt bonds were issued to refund the 1998 and 2002 bonds as well as to raise new money. The refunding of the District's $24 million of outstanding debt will produce an approximate $1.2 million net present value savings. The interest rates on the tax exempt bonds range from 0.4% to 3.79 % with a 20 -year term. Of the $30 million in new debt, the District issued $19 million in taxable Build America Bonds which have a direct 35% subsidy from the Federal Government with yields ranging from 3.45% to 3.78% net of the subsidy. These also have a 20 -year term and are being used to fund capital projects. Debt Service payments will be $5.4 million each year for the first five years (through FY 2014) dropping to $3.6 million for the next nine years (through FY 2023) and $2.4 million for the remaining six years (through FY 2029). Next Regular Meeting of CCCSDFFA The Agenda for the January 10, 2013 regular meeting of the CCCSDFFA appears on the following pages. 2 CENTRAL CONTRA COSTA SANITARY DISTRICT FACILITIES FINANCING AUTHORITY ANNUAL MEETING JANUARY 10, 2013 AGENDA 1. CALL TO ORDER 2. ROLL CALL 3. PUBLIC COMMENTS 4. APPOINTMENT OF OFFICERS a. Appointment of Officers pursuant to Article III, Section 2 of the Bylaws as follows: 1) Appoint Chair of the Authority (Chair of the Budget and Finance Committee of the District Board of Directors — Michael McGill); 2) Appoint Vice Chair of the Authority (remaining Member of the Budget and Finance Committee of the District Board of Directors — James Nejedly); 3) Appoint Executive Director of the Authority (General Manager of the District); 4) Appoint Treasurer of the Authority (Finance Manager of the District); and 5) Appoint Secretary of the Authority (Secretary of the District). STAFF RECOMMENDATION (Motion Required): Appoint the Officers as recommended for a one -year term. 5. APPROVAL OF MINUTES a. Approve Minutes of January 12, 2012. STAFF RECOMMENDATION (Motion Required): Approve the minutes. 6. BUDGET AND FINANCE a. The Treasurer of the Authority (Thea Vassallo) will present Financial Status Report for 2012. 7. OTHER BUSINESS RELATING TO MATTERS ABOVE 8. ADJOURNMENT a. Adjourn annual meeting of the Authority and reconvene as the Board of Directors of the Central Contra Costa Sanitary District. MEEC= MINUTES OF THE ANNUAL MEETING OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT FACILITIES FINANCING AUTHORITY HELD ON JANUARY 12, 2012 At 2:37 p.m., President Nejedly adjourned the Special Board Meeting and, as Chair of the Central Contra Costa Sanitary District (CCCSD) Facilities Financing Authority (FFA) (the "Authority "), convened the annual meeting of the Authority. Chair Nejedly requested that the Secretary call roll. PRESENT: Members: Hockett, McGill, Menesini, Williams, Nejedly ABSENT: Members: None In compliance with Assembly Bill 23, Secretary of the District Elaine Boehme announced that Board Members will not be receiving a separate or increased stipend for this meeting. Chair Nejedly requested public comments, and noted that there was none. Chair Nejedly stated that in accordance with the Bylaws of the Authority, it would be appropriate to elect officers at this time. It was moved by Member McGill and seconded by Member Hockett to approve the following slate of officers for 2012,, in accordance with Article 111, Section 2 of the Bylaws: 1) Chair of the Authority shall be Board Member David Williams, Chair of the Budget and Finance Committee; 2) Vice Chair of the Authority shall be Board President James Nejedly, the remaining member of the Budget and Finance Committee; 3) Executive, Director of the Authority shall be the General Manager of the District; 4) Treasurer of the Authority shall be the Controller of the District; and 5) Secretary of the Authority shall be the Secretary of the District. Motion passed by unanimous vote of the Authority. It was moved by Member Williams and seconded by Member McGill to approve the CCCSDFFA minutes of January 6, 2011. Motion passed by unanimous vote of the Authority. CENTRAL CONTRA COSTA SANITARY DISTRICT FACILITIES FINANCING AUTHORITY Minutes of January 12, 2012 Ms. Deborah Ratcliff, Controller of the District, reported that, in November and December of 2009, the District sold a total of $54 million in both taxable and non- taxable bonds. The purpose of the sale was to refund the 1998 and 2002 outstanding bonds of $24 million due to very favorable interest rates and to issue new debt of $30 million to help fund several large capital projects included in the Capital Budget. She added that tax - exempt bonds were issued to refund the 1998 and 2002 bonds. The refunding of the District's $24 million of outstanding debt will produce an approximate $1.2 million net present value savings. The interest rates on the tax - exempt bonds range from 0.4% to 3.79% through the end of the original 20-year term. Of the $30 million in new debt, the District issued $19 million in taxable Build America Bonds which have a direct 35% subsidy from the Federal Government with yields ranging from 3.45% to 3.78% net of the subsidy. These also have a 20 -year term and are being used to fund capital projects. Debt service payments will be $5.4 million each year for the first five years (through Fiscal Year 2014) dropping to $3.6 million for the next nine years (through Fiscal Year 2023) and $2.4 million for the remaining six years (through Fiscal Year 2029). There being no further business to come before the Authority, Chair Nejedly adjourned the annual meeting of the CCCSD Facilities Financing Authority at 2:41 p.m. and reconvened the meeting of the Central Contra Costa Sanitary District Board of Directors. Elaine R. Boehme, CIVIC Secretary of the Authority 2 CENTRAL CONTRA COSTA SANITARY DISTRICT FACILITIES FINANCING AUTHORITY January 10, 2013 Annual Meeting Report of Treasurer of the Authority Thea Vassallo There has been no new Facilities Financing Authority activity during 2012.