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<br />WORKSTUDY SESSION <br /> <br />. All construction projects completed on schedule <br />. No subsidy <br /> <br />Supervisor Campbell noted that the major issues involved in the matter the <br />Transportation Corridor Agency will consider on Thursday, May 13, 2004 include: <br />. Avoidance of bond default <br />. Build Foothill-South <br />. Financing fees <br />. Super majority Board voting <br />. Financing with derivatives <br /> <br />Wally Kreutzen, Chief Executive Officer, Transportation Corridor Agencies, <br />presented the Synthetic Fixed Rate bond issue proposal recommended by the <br />Agencies' staff. Assisting Mr. Kreutzen were Colleen Clark, Chief Financial Officer <br />(TCA), Mark Young, Independent Financial Advisor, Gardner Underwood & <br />Bacon, and Rob Thornton, Agency Counsel, Nossaman, Guthner Knox & Elliott. <br />Peter Herzog, Chair of the Foothill/Eastern Transportation Corridor Agency also <br />addressed the Council. <br /> <br />Mr. Kreutzen emphasized that the goals of the proposal recommended by the <br />TCA staff: <br />. Establish long-term financial stability <br />. Retain local control over toll rates <br />. Enhance ability to finance other capital projects <br />. Continue to pay debt service due under the San Joaquin Hills Indenture <br />. Maintain Foothill/Eastern toll rates at or below stand alone level <br /> <br />Following the presentation by staff, Mr. Kreutzen noted that the recommended <br />Synthetic Fixed Rate plan: <br />. Has the lowest cost debt service <br />. Most quickly implements planned capital projects <br />. Allows tolls to be removed sooner <br />. Avoids trigger of non-complete clauses and allows 1-405 chokepoint and <br />SR-91 general purpose land improvements without potential payments to <br />TCA <br />. Combines policy making boards of two Agencies <br /> <br />At the conclusion of the presentations, Council discussion ensued. <br />Council members asked TCA staff and Supervisor Campbell questions relative to <br />the differences in the various alternatives before the Transportation Corridor <br />Agencies. Council members Bist and Alvarez expressed concern that the Council <br />did not have enough information to make a decision on this matter; they further <br />expressed concern that there was not a recommendation from City staff. <br />Following Council discussion, Mayor Pulido moved, seconded by Councilmember <br />Garcia that the resolution supporting the proposed acquisition ofthe assets of the <br /> <br />CITY,COUNCIL SPECIAL MEETING MINUTES <br /> <br />144 <br /> <br />MAY 11.2004 <br />