“MINUTES”
CITY COUNCIL MEETING
CITY OF CARMEL-BY-THE-SEA
Tuesday, July 13, 2010
Archived video streaming
City Hall
East side of Monte Verde Street between Ocean and Seventh Avenues
VII. Consent Calendar
These matters include routine financial and administrative actions, which are usually approved by a single majority vote. Individual items may be removed from Consent by a member of the Council or the public for discussion and action.
F. Consideration of a Resolution authorizing Gerard Rose to represent the City of Carmel-by-the-Sea on the Carmel Regional Fire Ambulance (CRFA) Board of Directors.
Mayor McCloud opened and closed the meeting to public comment.
Council Member TALMAGE moved to approve the Consent Agenda Items A-D and F-G, seconded by Council Member SHARP and carried by the following roll call vote:
AYES: COUNCIL MEMBERS: BURNETT, HAZDOVAC; SHARP; TALMAGE & McCLOUD
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
X. Resolutions
A. Consideration of a Resolution supporting the proposed Monterey Regional Water Supply Program.
Mayor McCloud addressed the opening brief of July 2, 2010 on water project subject, three settling parties, namely California American Water, the Monterey County Water Resources Agency and Marina Coast Water District agreement (Water Project Agreement), policy overview by six cities, and closing brief of July 16, advocating “local oversight,” although not yet defined, according to City Attorney Don Freeman.
Mayor McCloud opened the meeting to public comment.
Roberta Miller, James Emery and Carrie Theis addressed Council.
Mayor McCloud closed the meeting to public comment.
City Attorney Don Freeman recommended the City advocate for the cities being a “formal fourth party,” not merely an advisory role.
Council Member TALMAGE moved to adopt a Resolution supporting the proposed Monterey Regional Water Supply Program, as amended to include the six Monterey Peninsula cities participate in its governance, seconded by Council Member BURNETT, and carried by the following roll call vote:
AYES: COUNCIL MEMBERS: BURNETT; HAZDOVAC; SHARP; TALMAGE & McCLOUD
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
UPDATE: “Under the new governance proposal, two Peninsula mayors would share one slot in the role of "municipal adviser" on the four-member committee, though they would not have equal powers as the other members representing the partners.”
“That's because an attempt by the Peninsula mayors to secure the right to call for arbitration to resolve disputes on the committee was unsuccessful, Della Sala said. The partners successfully argued that retaining that power to themselves was essential to protecting their ability to secure favorable financing for the project, according to a staff report.”
(Source: Monterey Peninsula mayors seek expanded water role, Peninsula mayors seek seat on desalination committee, JIM JOHNSON Herald Salinas Bureau, 07/24/2010)
XI. Orders of Council
A. Receive report from Bartle Wells Associates regarding the refunding of the 2001 Sunset Center Lease Certificates.
Bartle Wells Associates principal Tom Gaffney presented his report.
City Council Member Ken Talmage reviewed issues to decide by the City Council.
City Council Member Jason Burnett reviewed policy questions involving savings now or annually over 29 years.
Mayor McCloud opened and closed the meeting to public comment.
Bartle Wells Associates principal Tom Gaffney answered questions of City Council Members.
Council Member BURNETT moved to refinance the 2001 $7.5 million Sunset Center bonds due to low interest rates, take savings annually over 29 years and reduce the bond reserve fund from $550,000 to $400,000, seconded by Council Member TALMAGE, and carried by the following roll call vote:
AYES: COUNCIL MEMBERS: BURNETT; HAZDOVAC; SHARP; TALMAGE & McCLOUD
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
Showing posts with label Monterey Regional Water Supply Program. Show all posts
Showing posts with label Monterey Regional Water Supply Program. Show all posts
Saturday, July 24, 2010
Monday, July 12, 2010
Three Noteworthy 13 July 2010 City Council Agenda Items
ABSTRACT: Three noteworthy 13 July 2010 City Council Agenda Items, namely a Resolution authorizing Gerard Rose to represent the City of Carmel-by-the-Sea on the Carmel Regional Fire Ambulance (CRFA) Board of Directors, a Resolution supporting the proposed Monterey Regional Water Supply Program and Receive report from Bartle Wells Associates regarding the refunding of the 2001 Sunset Center Lease Certificates, are presented. Excerpts from Agenda Item Summaries and a report are presented.
AGENDA PACKET
Regular Meeting
Tuesday, July 13, 2010
4:30 p.m., Open Session
Live and archived video streaming
City Hall
East side of Monte Verde Street between Ocean and Seventh Avenues
VII. Consent Calendar
These matters include routine financial and administrative actions, which are usually approved by a single majority vote. Individual items may be removed from Consent by a member of the Council or the public for discussion and action.
F. Consideration of a Resolution authorizing Gerard Rose to represent the City of Carmel-by-the-Sea on the Carmel Regional Fire Ambulance (CRFA) Board of Directors.
Description: The CRFA Board has three voting members--one representative from Carmel and two from Carmel Valley (representing the Carmel Valley Fire Protection District), the two entities that comprise the Authority.
Article 6 of the CRFA Joint Powers Agreement relates to the membership of the Governing Board and states that, “The legislative body of each Authority member shall appoint either a member of the legislative body, its administrative officer, or its fire chief to serve as its representative to the Board.” Since April 2000, Gerard Rose has served as the Carmel delegate.
At its May 19, 2010 meeting, the CRFA Board amended Article 6 to expand the membership criteria to allow each legislative body to appoint “a voting citizen of the Member Agency jurisdiction” to serve as its representative to the Board.
Staff Recommendation: Adopt the Resolution.
Important Considerations: Former Council Member Rose has served on the CRFA Board for more than a decade, most recently as its president. We recommend he continue to serve on the board until the individual members of CRFA have finalized ongoing plans to disassociate themselves from the JPA. At that time, CRFA will then become independent and have its own budget.
X. Resolutions
A. Consideration of a Resolution supporting the proposed Monterey Regional Water Supply Program.
Description: The Regional Water Project for Monterey County is a water supply combination of desalination and underground storage (of winter river flows). This project will satisfy the demands mandated by the State to reduce the Monterey Peninsula’s reliance on the Carmel River for its water supply. It will also serve future needs for customers of the Marina Coast Water District.
An agreement has been reached by CalAm, Monterey County Water Resources Agency and the Marina Coast Water District to implement the Regional Water Project at a reduced price over alternate projects. This collaborative project will be the most environmentally friendly of the many options that were considered. The Project is now being reviewed by the California Public Utility Commission.
The Monterey Peninsula Mayors are currently meeting with the three above mentioned water agencies regarding governance of the Regional Water Project.
Staff Recommendation: Adopt the Resolution.
Important Considerations: Several regional water project alternatives have been considered that were either too expensive or did not have public support. The currently proposed Regional Water Project is a collaborative alternative that is cost effective and has less adverse environmental impact. The Regional Water Project will meet the objective of reducing CalAm’s historic diversions from the Carmel River by 70 percent.
Decision Record: No prior action has been taken by the Council on this Project.
XI. Orders of Council
A. Receive report from Bartle Wells Associates regarding the refunding of the 2001 Sunset Center Lease Certificates.
Description: As requested by Council at its June 8, 2010 meeting, Bartle Wells Associates principal Tom Gaffney has prepared a more detailed analysis of the refinancing options available to the City.
Decision Record: At its June 8, 2010 meeting, Council approved Resolution 2010-41, entering into an agreement with Bartle Wells Associates for financial advising services on the refinancing of the 2001 Sunset Center Lease Certificates.
BARTLE WELLS ASSOCIATES
INDEPENDENT PUBLIC FINANCE ADVISORS
1889 Alcatraz Avenue
Berkeley, CA 94703
510 653 3399 fax: 510 653 3769
www.bartlewells.com
Date: July 1, 2010
To: Rich Guillen, City Administrator
Dewey Evans, City Treasurer
From: Alex Handlers & Tom Gaffney
Re: Refinancing of 2001 Lease Revenue Certificates
A) Change in interest rates that would offset the $75,000 prepayment premium
All other things held equal, an increase in interest rates of approximately 0.12% (12 basis points) would offset the 1%, $75,000 prepayment premium on the outstanding 2001 Certificates. The 1% prepayment premium is in effect through October 2011. If the City waited until October 2011, it would also forego one year of savings, estimated at roughly $27,000. Accounting for these unrealized savings in the next year, interest rates would only need to rise by a little less than 1/10th of 1 percent to negate the savings from avoiding the prepayment
premium.
B) Front-Loaded and Back-Loaded Savings
To supplement the original numbers, which were based on roughly level annual savings, we added tables showing versions with front‐loaded and back‐loaded savings. All three versions of tables are attached. In reality, there is no correct answer regarding which approach is best from a financial perspective. For example, use of different discount factors in the present value analysis could result in different outcomes as which option yields the most present value savings. Hence, we generally maintain that the choice is a policy decision. While all options are equally valid, in general, most agencies opt for roughly level annual savings.
C) Debt Service with Reduced Reserve Fund Requirement at ½ Max Annual Debt Service
Tables showing projected debt service with a reduced reserve fund are attached. Since any change in the reserve fund is typically accounted for as a change in cash on the closing date, it will only have a small impact on any savings calculations.
Roughly Level Annual Savings
City of Carmel-by-the-Sea
2010 Refunding Savings Estimate
Gross savings as % of outstanding principal 7.0%
Present value savings as a % of outstanding principal 4.2%
AGENDA PACKET
Regular Meeting
Tuesday, July 13, 2010
4:30 p.m., Open Session
Live and archived video streaming
City Hall
East side of Monte Verde Street between Ocean and Seventh Avenues
VII. Consent Calendar
These matters include routine financial and administrative actions, which are usually approved by a single majority vote. Individual items may be removed from Consent by a member of the Council or the public for discussion and action.
F. Consideration of a Resolution authorizing Gerard Rose to represent the City of Carmel-by-the-Sea on the Carmel Regional Fire Ambulance (CRFA) Board of Directors.
Description: The CRFA Board has three voting members--one representative from Carmel and two from Carmel Valley (representing the Carmel Valley Fire Protection District), the two entities that comprise the Authority.
Article 6 of the CRFA Joint Powers Agreement relates to the membership of the Governing Board and states that, “The legislative body of each Authority member shall appoint either a member of the legislative body, its administrative officer, or its fire chief to serve as its representative to the Board.” Since April 2000, Gerard Rose has served as the Carmel delegate.
At its May 19, 2010 meeting, the CRFA Board amended Article 6 to expand the membership criteria to allow each legislative body to appoint “a voting citizen of the Member Agency jurisdiction” to serve as its representative to the Board.
Staff Recommendation: Adopt the Resolution.
Important Considerations: Former Council Member Rose has served on the CRFA Board for more than a decade, most recently as its president. We recommend he continue to serve on the board until the individual members of CRFA have finalized ongoing plans to disassociate themselves from the JPA. At that time, CRFA will then become independent and have its own budget.
X. Resolutions
A. Consideration of a Resolution supporting the proposed Monterey Regional Water Supply Program.
Description: The Regional Water Project for Monterey County is a water supply combination of desalination and underground storage (of winter river flows). This project will satisfy the demands mandated by the State to reduce the Monterey Peninsula’s reliance on the Carmel River for its water supply. It will also serve future needs for customers of the Marina Coast Water District.
An agreement has been reached by CalAm, Monterey County Water Resources Agency and the Marina Coast Water District to implement the Regional Water Project at a reduced price over alternate projects. This collaborative project will be the most environmentally friendly of the many options that were considered. The Project is now being reviewed by the California Public Utility Commission.
The Monterey Peninsula Mayors are currently meeting with the three above mentioned water agencies regarding governance of the Regional Water Project.
Staff Recommendation: Adopt the Resolution.
Important Considerations: Several regional water project alternatives have been considered that were either too expensive or did not have public support. The currently proposed Regional Water Project is a collaborative alternative that is cost effective and has less adverse environmental impact. The Regional Water Project will meet the objective of reducing CalAm’s historic diversions from the Carmel River by 70 percent.
Decision Record: No prior action has been taken by the Council on this Project.
XI. Orders of Council
A. Receive report from Bartle Wells Associates regarding the refunding of the 2001 Sunset Center Lease Certificates.
Description: As requested by Council at its June 8, 2010 meeting, Bartle Wells Associates principal Tom Gaffney has prepared a more detailed analysis of the refinancing options available to the City.
Decision Record: At its June 8, 2010 meeting, Council approved Resolution 2010-41, entering into an agreement with Bartle Wells Associates for financial advising services on the refinancing of the 2001 Sunset Center Lease Certificates.
BARTLE WELLS ASSOCIATES
INDEPENDENT PUBLIC FINANCE ADVISORS
1889 Alcatraz Avenue
Berkeley, CA 94703
510 653 3399 fax: 510 653 3769
www.bartlewells.com
Date: July 1, 2010
To: Rich Guillen, City Administrator
Dewey Evans, City Treasurer
From: Alex Handlers & Tom Gaffney
Re: Refinancing of 2001 Lease Revenue Certificates
A) Change in interest rates that would offset the $75,000 prepayment premium
All other things held equal, an increase in interest rates of approximately 0.12% (12 basis points) would offset the 1%, $75,000 prepayment premium on the outstanding 2001 Certificates. The 1% prepayment premium is in effect through October 2011. If the City waited until October 2011, it would also forego one year of savings, estimated at roughly $27,000. Accounting for these unrealized savings in the next year, interest rates would only need to rise by a little less than 1/10th of 1 percent to negate the savings from avoiding the prepayment
premium.
B) Front-Loaded and Back-Loaded Savings
To supplement the original numbers, which were based on roughly level annual savings, we added tables showing versions with front‐loaded and back‐loaded savings. All three versions of tables are attached. In reality, there is no correct answer regarding which approach is best from a financial perspective. For example, use of different discount factors in the present value analysis could result in different outcomes as which option yields the most present value savings. Hence, we generally maintain that the choice is a policy decision. While all options are equally valid, in general, most agencies opt for roughly level annual savings.
C) Debt Service with Reduced Reserve Fund Requirement at ½ Max Annual Debt Service
Tables showing projected debt service with a reduced reserve fund are attached. Since any change in the reserve fund is typically accounted for as a change in cash on the closing date, it will only have a small impact on any savings calculations.
Roughly Level Annual Savings
City of Carmel-by-the-Sea
2010 Refunding Savings Estimate
Gross savings as % of outstanding principal 7.0%
Present value savings as a % of outstanding principal 4.2%
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