HomeMy WebLinkAbout07.a. Adjourn Board meeting and reconvene as the Central Contra Costa Sanitary District Facilities Financing Authority (Authority) to conduct its Annual Meeting CENTRAL CONTRA COSTA SANITARY DISTRICT Ta.
FACILITIES FINANCING AUTHORITY
ANNUAL MEETING
January 12, 2017
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 Finance Committee of the
District Board of Directors — Jim Nejedly);
2) Appoint Vice Chair of the Authority (Member of the Finance
Committee of the District Board of Directors —Tad Pilecki);
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 7, 2016 meeting.
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 2016.
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.
DRAFT
MINUTES OF THE ANNUAL MEETING OF THE
CENTRAL CONTRA COSTA SANITARY DISTRICT
FACILITIES FINANCING AUTHORITY
HELD ON JANUARY 7, 2016
At 2:14 p.m., President Pilecki adjourned the Board Meeting and, Member Nejedly, as
Chair of the Central Contra Costa Sanitary District (Central San) Facilities Financing
Authority (the "Authority"), convened the annual meeting of the Authority.
Chair Nejedly requested that the Secretary call roll.
PRESENT: Members: Causey, Pilecki, Williams, Nejedly
ABSENT: Members: McGill
In compliance with Assembly Bill 23, it was noted 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 Causey and seconded by Member Williams to approve the
following slate of officers for 2016, in accordance with Article III, Section 2 of the
Bylaws:
1) Chair of the Authority shall be Board President Tad Pilecki, Chair of the
Finance Committee;
2) Vice Chair of the Authority shall be Board Member Paul Causey, the
remaining member of the Finance Committee;
3) Executive Director of the Authority shall be the General Manager of the
District;
4) Treasurer of 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 Members present at the meeting.
[4-0-1 ; McGill absent.]
It was moved by Member Causey and seconded by President Pilecki to approve the
Authority minutes of January 8, 2015. Motion passed by unanimous vote of the
Authority Members present at the meeting. [4-0-1; McGill absent.]
CENTRAL CONTRA COSTA SANITARY DISTRICT
FACILITIES FINANCING AUTHORITY
Minutes of January 7, 2016 Board Meeting
Ms. Thea Vassallo, Finance Manager, referred to the report contained in the agenda
packet that included a historical background of the Authority and a summary of past
activity. She reported that there had been no new debt issued by the Facilities
Financing Authority during 2015. However, there was a change in the subsidy received
from the Internal Revenue Service (IRS) on the 2009 Series A Bonds as part of the
continued Federal budget sequestration. The IRS announced credit payments by
issuers of certain tax credit bonds, including Build America Bonds, may be subject to a
reduction of 7.3%.
In August 2015, the District's rebate requested from the IRS was $208,397 and the
amount received was $193,184 for a difference of $15,213.
There being no further business to come before the Authority, Chair Nejedly adjourned
the annual meeting of the Central San Facilities Financing Authority at 2:16 p.m. and
President Pilecki reconvened the meeting of the Central San Board of Directors.
Elaine R. Boehme, CMC
Secretary of the Authority
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CENTRAL CONTRA COSTA SANITARY DISTRICT
FACILITIES FINANCING AUTHORITY
January 12, 2017 Annual Meeting
Report of Treasurer of the Authority Thea Vassallo
The following pages provide background on the Facilities Financing Authority
(Authority) as well as a summary of past activity from its inception in 1994
through 2015.
During 2016, no new debt was issued by the Authority. However, there was a
change in the subsidy received from the Internal Revenue Service (IRS) on the
2009 Series A Bonds as part of the continued Federal budget sequestration. The
IRS announced that credit payments by issuers of certain tax credit bonds,
including Build America Bonds, may be subject to a reduction of 7.3%.
In August 2016, Central San's rebate requested from the IRS was $208,397 and
the amount received was $194,226, for a difference of$14,171, or a 6.8%
reduction.
As of December 31, 2016, the remaining principal balance on the 2009 debt
service is $31,500,000.
CENTRAL CONTRA COSTA SANITARY DISTRICT
FACILITIES FINANCING AUTHORITY
Background and Summary of Past Activity
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
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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.
2014
In March 2014, 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 7.2%.
In August 2014, the District's rebate requested from the Internal Revenue Service (IRS)
was $208,397 and the amount received was $193,392 for a difference of $15,005.
The 2009 Revenue Bonds have a covenant in the Agreement to comply with
requirements for rebate of excess investment earnings to the federal government to the
extent applicable every 5 years. An arbitrage audit was performed by PFM Asset
Management LLC during 2014 and no arbitrage liability was owed to the Internal
Revenue Service.
2015
In March 2015, as part of the continued 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 7.3%.
In August 2015, the District's rebate requested from the Internal Revenue Service (IRS)
was $208,397 and the amount received was $193,184 for a difference of $15,213.
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