HomeMy WebLinkAbout2004-05-11 Special
.
MEETINGS OF THE SPECIAL MEETING
OF THE CITY COUNCIL OF THE
CITY OF SANTA ANA
SANTA ANA, CALIFORNIA
MAY 11, 2004
CALLED TO ORDER
POLICE COMMUNITY ROOM
60 CIVIC CENTER PLAZA
SANTA ANA, CALIFORNIA
5:35 P.M.
Councilmembers present:
MAYOR MIGUEL PULIDO
CLAUDIA ALVAREZ
LISA BIST
MIKE GARCIA
JOSE SOLORIO
Absent:
ALBERTA CHRISTY
MAYOR PRO TEM BRETT FRANKLIN
.
Staff present:
DAVID N. REAM, City Manager
JOSEPH W. FLETCHER, City Attorney
PATRICIA E. HEALY, Clerk of the Council
PLEDGE OF ALLEGIANCE
MAYOR PULIDO
AGENDA
W.SA TRANSPORTATION CORRIDOR
RESTRUCTURING OPTIONS
AGENCIES
(TCA)
FINANCIAL
.
Orange County Supervisor Bill Campbell addressed the Council and presented an
alternative plan for the Transportation Corridor Agencies that would not include
the merger of the San Joaquin Hills Transportation Corridor Agency and the
Foothill/Eastern Transportation Corridor Agency. Supervisor Campbell stated that,
under his alternative plan, there would be:
. No merger or new debt issued
. Mitigation Agreement between Transportation Corridor Agencies
0 $120 million payment to SR 73 by SR 241 to offset lost revenue due
to Foothill-South
0 $1 billion loan to cover debt payment shortfall by SR 73- Payback
starts 2033
CITY COUNCIL SPECIAL MEETING MINUTES
143
MAY 11,2004
WORKSTUDY SESSION
. All construction projects completed on schedule
. No subsidy
Supervisor Campbell noted that the major issues involved in the matter the
Transportation Corridor Agency will consider on Thursday, May 13, 2004 include:
. Avoidance of bond default
. Build Foothill-South
. Financing fees
. Super majority Board voting
. Financing with derivatives
Wally Kreutzen, Chief Executive Officer, Transportation Corridor Agencies,
presented the Synthetic Fixed Rate bond issue proposal recommended by the
Agencies' staff. Assisting Mr. Kreutzen were Colleen Clark, Chief Financial Officer
(TCA), Mark Young, Independent Financial Advisor, Gardner Underwood &
Bacon, and Rob Thornton, Agency Counsel, Nossaman, Guthner Knox & Elliott.
Peter Herzog, Chair of the Foothill/Eastern Transportation Corridor Agency also
addressed the Council.
Mr. Kreutzen emphasized that the goals of the proposal recommended by the
TCA staff:
. Establish long-term financial stability
. Retain local control over toll rates
. Enhance ability to finance other capital projects
. Continue to pay debt service due under the San Joaquin Hills Indenture
. Maintain Foothill/Eastern toll rates at or below stand alone level
Following the presentation by staff, Mr. Kreutzen noted that the recommended
Synthetic Fixed Rate plan:
. Has the lowest cost debt service
. Most quickly implements planned capital projects
. Allows tolls to be removed sooner
. Avoids trigger of non-complete clauses and allows 1-405 chokepoint and
SR-91 general purpose land improvements without potential payments to
TCA
. Combines policy making boards of two Agencies
At the conclusion of the presentations, Council discussion ensued.
Council members asked TCA staff and Supervisor Campbell questions relative to
the differences in the various alternatives before the Transportation Corridor
Agencies. Council members Bist and Alvarez expressed concern that the Council
did not have enough information to make a decision on this matter; they further
expressed concern that there was not a recommendation from City staff.
Following Council discussion, Mayor Pulido moved, seconded by Councilmember
Garcia that the resolution supporting the proposed acquisition ofthe assets of the
CITY,COUNCIL SPECIAL MEETING MINUTES
144
MAY 11.2004
WORKSTUDY SESSION
.
two Corridor Agencies be adopted. Council member Solorio proposed, as a
substitute motion, that the Clerk of the Council be instructed to give the City's
representative on the TCA a copy of the audio tape of tonight's meeting.
Council member Solorio also moved that the City's representative should inform
the City Council of any significant changes to the recommendations under
consideration by the TCA.
Motion:
Adopt a Resolution.
RESOLUTION NO. 2004-034 - A resolution of the City Council of the
City of Santa Ana supporting the proposed acquisition of the assets of
the San Joaquin Hills Transportation Corridor Agency and the
Foothill/Eastern Transportation Corridor Agency by the Transportation
Corridor System
MOTION:
Pulido
SECOND:
Garcia
Substitute
Motion:
Instruct the Clerk of the Council to provide a copy of the audio tape of
tonight's testimony to the City's representative on the Transportation
Corridor Agencies (TCA) and request the City representative to report to
the City Council if there are significant changes to the plans being
considered by the TCA
.
MOTION: Solorio SECOND: Pulido
VOTE: AYES: Garcia, Solorio, Pulido (3)
NOES: Alvarez, Bist (2)
ABSTAIN: None (0)
ABSENT: Christy, Franklin (2)
Bya vote of 3-2 the majority ofthe members present supported the recommended
action
ADJOURNMENT: 7:05 P.M.
./-~ - .
+~a.-f:>~
Patricia E. Healy
Clerk of the Council
.
CITY COUNCIL SPECIAL MEETING MINUTES
145
MAY 11, 2004