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HomeMy WebLinkAbout1997-12-15 City Council (25)City of Palo Alto City Manager’s Rep t TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT:ADMINISTRATIVE SERVICES DATE:DECEMBER 15, 1997 CMR:502:97 SUBJECT:APPOINTMENT OF DIRECTOR TO THE PALO ALTO PUBLIC IMPROVEMENT CORPORATION RECOMMENDATION Staff recommends that Council accept the appointment of Gaff Wooley to the Board of Directors of the Palo Alto Public Improvement Corporation (PIC). EXECUTIVE SUMMARY The PIC was established by the Council as a nonprofit, tax exempt organization in 1983, as a mechanism to facilitate the financing of improvements to the Civic Center. The City, through the Corporation, issued Certificates of Participation in 1983 to finance the installation of a third elevator and seismic restructuring of the Civic Center building. In 1992, new Certificates of Participation were issued to refinance the original debt at a lower interest rate, and to finance the structural retrofitting of the Police wing of the Civic Center and to install fire prevention sprinklers in certain areas of the buildings. The Certificates are funded by lease payments from the City to the Corporation. The Board of Directors of the Corporation is required to meet at least annually. During the annual meeting of the PIC on November 10, 1997, Gaff Woolley was appointed to a second, consecutive four-year term ending ending September 1,2001. Directors are appointed to the Board subject to Council approval. The remaining Board members, Betsy Bechtel, Kirke Comstock, Ellen Fletcher, and Le Levy are serving terms which expire in September 1999. Board members are allowed to serve for a maximum of two consecutive four-year terms. CMR:502:97 Page I of 2 ATTACHMENT Palo Alto Public Improvement Corporation Minutes for Meeting of November 10, 1997 PREPARED BY: Joe Saccio, Senior Financial Analyst DEPARTMENT HEAD APPROVAL: CITY MANAGER APPROVAL: CC: n/a M~allo ~ Acting Director Administrative Services EmiJy Harrison Assistant City Manager CMR:502:97 Page 2 o.f 2 PALO ALTO PUBLIC IMPROVEMENT CORPORATION MINUTES FOR MEETING OF NOVEMBER 10, 1997 The agenda for this meeting was posted on Thursday, November 6, 1997. The meeting was called to order by President Gail Wooley at 4:00 p.m. in the Fourth Floor Conference Room at the City of Palo Alto, Civic Center. In attendance were Directors: Ellen Fletcher, Le Levy and Gail Wooley. Directors Betsy Bechtel and Kirke Comstock arrived at 4:07 p.m. Also present were Jim Steele and Joe Saccio, staff from the City of Palo Alto. Potential Refinancing of 1992 Certificates of Participation Prior to the arrival of Directors Bechtel and Comstock, Le Levy raised the question of whether the 1992 Certificates of Participation should be refinanced and defeased when interest rates on the existing certificates approach the 6.0 percent level (this will occur in the year 2000). This question was further discussed after Directors Bechtel and Comstock arrived. Staff will prepare a sensitivity analysis determining an interest rate at which it is cost-effective to refinance. This analysis will be presented to the Board at its Fall 1998 meeting. Approval of Minutes Le Levy moved and Gail Wooley seconded approval of the minutes of the October 26, 1996 meeting. The motion passed by a vote of 4-0. Appointment of Director of Board Staff reported that the term of Gail Wooley had expired.. By motion of Le Levy, seconded by Kirke Comstock, Gail Wooley was tmanimously approved for her second consecutive term beginning September 1997 and ending September 2001. The Palo Alto City Council will be notified of the appointment. The appointment will stand unless the City Council takes action to disapprove the appointment within 30 days of the notification. Audited Financial Report Copies of the General Purpose Financial Statements for the Fiscal Year ended June 30, 1997 were provided to the Board of Directors in advance of the meeting. From information in the Financial Statement, Director Levy calculated a 4.8 percent interest rate return on the reserve fund. Jim Steele pointed out that this rate excluded interest receivable which, when included, raised the rate of return to 5.2 percent. In addition, Director Levy asked how the reserve was invested. Jim Steele stated that, at the recommendation of Director Levy, the bond reserve fund was invested by the Trustee in a Government Agency Security (FNMA) having a yield of 5.9 percent. This investment was made following completion of calculations to determine "arbitrage yield" on the Civic Center bonds for the first five years. By motion of Kirke Comstock, seconded by Ellen Fletcher, the Board unanimously approved the audited financial report for the year ending June 30, 1997 as presented. Election of Officers Director Bechtel moved to reappoint the current officers for the 1997-98 term, and Kirke Comstock seconded the motion. The following officers were unanimously re-elected: President - Gail Wooley Secretary - Kirke Comstock Treasurer - Le Levy Adjournment The meeting was adjourned at 4:15 p.m. Kirke Comstock, Secretary a\pic97min