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Home My WebLink About08.a. Adjourn and reconvene to hold annual meeting of Facilities Financing Authority8.'a. CENTRAL CONTRA COSTA SANITARY DISTRICT FACILITIES FINANCING AUTHORITY The Central Contra Costa Sanitary District Facilities Financing Authority ( "Authority ") is a non - profit corporation 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, it was necessary to form a non - profit corporation to sell the facilities improvements to the District. Thus, the Authority was formed, bylaws were adopted, a time and place for regular meetings was established, and a resolution was adopted approving issuance of the bonds. Regular meetings of the Authority Board are generally held following the first District Board meeting in January each year. Summary of Past Activity 1994 In December 1994, the Authority 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 Authority 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 Authority Board could decide whether the Authority should 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 was to produce an approximate $1.2 million net present value savings. The interest rates on the tax exempt bonds ranged 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 had a direct 35% subsidy from the Federal Government with yields ranging from 3.45% to 3.78% net of the subsidy. The proceeds of these 20 -year bonds have been used to fund capital projects. Debt Service payments will be $5.4 million each year for the first five years (through fiscal year (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). 2013 In March 2013, as part of the Federal budget sequestration, the Internal Revenue Service (IRS) announced credit payments by issuers of certain tax credit bonds, including Build America Bonds, may be subject to a reduction of 8.7 %. In August 2013, the District's rebate requested from the Internal Revenue Service (IRS) was $208,397 and the amount received was $190,266 for a difference of $18,131. Next Regular Meeting of the Authority The Agenda for the January 9, 2014 regular meeting of the Authority appears on the following pages. CENTRAL CONTRA COSTA SANITARY DISTRICT FACILITIES FINANCING AUTHORITY ANNUAL MEETING JANUARY 9, 2014 AGENDA 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 Finance Committee of the District Board of Directors — Paul Causey); 2) Appoint Vice Chair of the Authority (Member of the 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 10, 2013. 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 2013. 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. MINUTES OF THE ANNUAL MEETING OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT FACILITIES FINANCING AUTHORITY HELD ON JANUARY 10, 2013 At 3:52 p.m., President Nejedly adjourned the Special Board Meeting and Board Member Williams, as Chair of the Central Contra Costa Sanitary (CCCSD) District Facilities Financing Authority (the "Authority "), convened the annual meeting of the Authority. Chair Williams requested that the Secretary call roll. Wji' PRESENT: Members: Causey, McGill, Nejedly,.Pile ki, Will", is£ ABSENT: Members: None In compliance with Assembly Bill 23, it was noted that Board Members i ' not be receiving a separate or increased stipend f �1 Ry meeting . H w � HIP Chair Williams requested public comments, and �wthat there was none. Chair Williams stated that, in accord c61wn the Bylaw of the Authority, it would be appropriate to elect officers at this time` . i It was moved by Member le and seconded by Membe P r Causey to approve the following slate of off ors for 20t,a in acca "�nn`ce with Article 111, Section 2 of the Bylaws:s ,i 1) Chair ° e Authority shall- be 136W Member Michael McGill, Chair of the x B qrt al Fz[dai ce Comrrii� ., 1) Vice 1&'Oir of the Authority shall be Board President James Nejedly, the remainirembof.the Budget and Finance Committee; 3)" , :_ Executive Dir ctor of the Authority shall be the General Manager of the 11bistrict; HIM, 4) Tr6a prer£6f the Authority shall be the Finance Manager of the District; and 5) Secretary of the Authority shall be the Secretary of the District. Motion passed by unanimous vote of the Authority. CENTRAL CONTRA COSTA SANITARY DISTRICT FACILITIES FINANCING AUTHORITY Minutes of January 10, 2013 It was moved by Member McGill and seconded by Member Nejedly to approve the Authority minutes of January 12, 2012. Motion passed by the following vote of the Authority: AYES: Members: McGill, Pilecki, Nejedly, Williams NOES: Members: None ABSTAIN: Members: Causey contained in Ms. Thea Vassallo, Finance Manager of the CCCSD, referre he report the agenda packet that included a historical background of thol,11A,uthority and a summary of past activity. She reported that the Authority had no qp"iiv"ft'i" 2012. I yAn There being no further business to come before the Authority, 'illiams adjourned the annual meeting of the CCCSD Facilities Fin '!`g Authority at ;l—" 't and District President Nejedly reconvened the meeting offfi entral Contra Cc itary ll Board of Directors. w. Elaine R. Boehme, CMC Secretary of the Authority gr lhk CENTRAL CONTRA COSTA SANITARY DISTRICT FACILITIES FINANCING AUTHORITY January 9, 2014 Annual Meeting Report of Treasurer of the Authority Thea Vassallo There has been no new Facilities Financing Authority activity during 2013. However, there has been a change in the subsidy received from the Internal Revenue Service (IRS) as part of the Federal budget sequestration. The Internal Revenue Service (IRS) announced credit payments by issuers of certain tax credit bonds, including Build America Bonds, may be subject to a reduction of 8.7 %. In August 2013, the District's rebate requested from the Internal Revenue Service (IRS) was $208,397 and the amount received was $190,266 for a difference of $18,131.