CITY OF BRENTWOOD
CITY COUNCIL/REDEVELOPMENT AGENCY/BRENTWOOD INFRASTRUCTURE FINANCING
AUTHORITY MEETING MINUTES
TUESDAY, 7:00 P.M.
SEPTEMBER 9, 2008
COUNCIL CHAMBER
CALL TO ORDER CITY COUNCIL/REDEVELOPMENT AGENCY/BRENTWOOD INFRASTRUCTURE
FINANCING AUTHORITY (07:03 PM)
Pledge of Allegiance - Police Department
In honor of Patriots Day, Sondra Smith, Mountain View Christian Center sang
the Star Spangled Banner and God Bless America. (07:03 PM)
Invocation - Pastor Jerry Hanoum, Mountain View Christian Center and Pastor
Larry Pinnetta, Live Oak Community Church. (07:10 PM)
Roll Call (07:14 PM)
Present: Councilmember Chris Becnel; Councilmember Erick Stonebarger; Vice
Mayor Robert Brockman; Mayor Bob Taylor
Absent: Councilmember Brandon Richey
PRESENTATIONS (07:14 PM)
C. Recognition of John Dwelley and Kate Dwelley
Mayor Taylor said Kate and John Dwelley had been recognized in the 2008
Olympic trials, and he presented them with Certificates of Recognition.
B. Proclamation City Reads - Leonard Roudman
Leonard Roudman, Contra Costa Librarian, said City Read will be held
September 15, 2008, to October 25, 2008. He thanked the Friends of the
Brentwood Library and the Brentwood Arts Society for sponsoring this year’s
program and said the book was Kirk Russell’s "Dead Game". The Brentwood
Library would host a pre-author program featuring Kirk Russell on November
1, 2008, at 2:00 p.m.
Mayor Taylor presented a proclamation to Mr. Roudman and expressed the
City’s support of the City Read program.
A. Recognition of Patriots Day - September 11, 2008
Mayor Taylor read the Patriot Day proclamation in remembrance of September
11, 2001, and encouraged residents to observe Patriot Day with a moment of
silence for all of the innocent lives that were lost.
PUBLIC COMMENTS (07:29 PM)
Christine L. Young spoke regarding the Brentwood Municipal Code section
relating to fence height and said she had been cited for lattice on her
fence. She expressed concerns about a neighbor who had six garages installed
at his home for automobile use, which had businesses and people residing in
there. She felt the ordinance was not fair and many homes in the area had
lattice on their fences.
Len Del Chiro spoke about the Walnut Acres Mobile Home Park situation on
Walnut Boulevard and said arrows on Walnut Boulevard had been painted over,
which was good. He asked when the crosswalks and flashing lights at Orchard
Drive and McClarren Road would be complete and said he felt the City should
work more with the County and the School District.
Steve Barr said he had expressed concerns at the last Council meeting about
the Liberty Union High School District Board of Trustees regarding the
Negative Declaration required to satisfy the California Environmental
Quality Act regarding the Civic Center project. He had concerns about what
was said by one of the Council Members regarding the School District. He
felt residents should feel free to address the Council without fear of
embarrassment, even when their view of the speaker was contrary to the view
of the Council.
CONSENT CALENDAR (07:43 PM)
1. Approved minutes of the City Council/Redevelopment Agency meeting of
August 26, 2008. (M. Wimberly)
2. Adopted Resolution 2008-225 approving Temporary Use Permit No. 08-10 to
close several downtown streets and temporarily establishing no parking
restrictions and tow away zones, as part of allowing the use of City-owned
property and approving a fee waiver in the amount of $3,516.59 for the
staging of the annual Liberty Union High School Homecoming Parade, for one
night, Friday, October 31, 2008, between the hours of 5:00 pm and 7:30 pm.
(C. McCann/J. Zilm)
3. Adopted Resolution 2008-226 to adopt the Amended Mission Statement and
Membership Requirements for the Brentwood Advisory Neighborhood Committee.
(C. Bronzan/B. Gary)
4. Adopted Resolution 2008-227 accepting the work performed by Granite
Construction Company for the American Avenue Improvements, CIP Project No.
336-31681 and directing the City Clerk to file a Notice of Completion with
the County Recorder. (B. Grewal/F. Lideros)
5. Adopted Resolution 2008-228 accepting backbone improvements for Brentwood
Sand Creek Partners, LLC, Subdivision No. 8788, located north of Sand Creek
Road and south of Grant Street. (B. Grewal/D. Galey)
6. Adopted Resolution 2008-229 accepting the public improvements for
maintenance; accepting the Maintenance Bond; and releasing the Improvement
Securities for Subdivision No. 8849, Visions Phase III, constructed by
Warmington Homes, located west of Fairview Avenue and north of the EBMUD
Aqueduct. (B. Grewal/D. Galey)
7. Adopted Resolution 2008-230 accepting all off-site public improvements;
accepting the Maintenance Bond; and releasing the Improvement Securities for
DR 05-06, KFC/A&W Restaurant site located south of Lone Tree Way and west of
Empire Avenue. (B. Grewal/D. Galey)
8. Adopted Resolution 2008-231 accepting dedications and improvements for
Garin Ranch Subdivision No. 8609 (VTSM No. 7605), constructed by Signature
Properties, located south of Chestnut Street and east of Garin Parkway. (B.
Grewal/D. Galey)
9. Adopted Resolution 2008-232 approving and authorizing the City Manager or
her designee to execute a purchase order and an agreement with Telstar
Instruments, Inc. for the purchase of materials and labor to complete the
upgrade of the chlorine generators at City Wells 6, 7, 11, and 14, CIP
Project No. 562-56370, in a total amount not to exceed $93,529. (B.
Grewal/C. Ehlers/E. Brennan)
10. Adopted Resolution 2008-233 approving and authorizing the City Manager
or her designee to execute an amendment in the amount of $47,500 to the
current professional services agreement with EcoLogic Engineering for
groundwater evaluation studies to include groundwater well installation
services to meet the requirements of the recently adopted Wastewater
Treatment Plant Discharge Permit for a total agreement amount not to exceed
$99,000. (B. Grewal/C. Ehlers/E. Brennan)
11. Adopted Resolution 2008-234 repealing Resolution 2007-287 and
designating specified individuals as Local Agency Officials for the purposes
of AB 1234. (D. Landeros/D. Brower/M. Wimberly)
12. Adopted Resolution 2008-235 approving and authorizing the City Manager
or designee to execute an Agreement with the Town of Discovery Bay Community
Services District for Biosolids Testing for the Wastewater Treatment Plant -
Solids System Expansion, CIP Project No. 592-59180. (B. Grewal/P. Eldredge)
Redevelopment Agency Consent Items:
13. Approved warrants from Warrant lists dated August 13 and August 20,
2008. (P. Ehler/L. Schelbert)
CONSENT CALENDAR ACTIONS
Motion: Approve Consent Calendar Items 1 - 13 as recommended.
Moved by Vice Mayor Robert Brockman, seconded by Councilmember Erick
Stonebarger.
Vote: Motion carried 4-0.
Yes: Councilmember Chris Becnel; Councilmember Erick Stonebarger; Vice Mayor
Robert Brockman; Mayor Bob Taylor
Absent: Councilmember Brandon Richey
NEW BUSINESS (07:43 PM)
14. Brentwood Infrastructure Financing Authority - Adopt a Resolution
authorizing the issuance of Brentwood Infrastructure Financing Authority
Water Revenue Bonds, Series 2008 and the execution and delivery of a Master
Trust Agreement, a First Supplemental Trust Agreement, a Master Installment
Sale Agreement, a First Supplemental Installment Sale Agreement, a Bond
Purchase Contract and an Official Statement in connection therewith and
approving a preliminary official statement therefore and delegating to the
Secretary of the Authority the power to authorize the sale of said bonds and
to take certain related actions in connection therewith. (P. Ehler/B.
Kelleher)
Finance and Information Systems Accountant II, Brian Kelleher, presented a
staff report. He said new proceeds from the issuance of the 2008 Water
Revenue Bonds would be used to pay off the commercial paper issued by the
Contra Costa Water District on behalf of the City, associated with the
design and construction of the surface water treatment plant adjacent to the
Randall Bold Treatment Plant. The new 2008 water bonds included the
refinancing of the remaining water portion of the existing 1996 water and
sewer revenue bonds. The bonds had been issued to finance certain capital
improvements to the water and sewer systems. He explained what the
improvements consisted of and said by refinancing the bonds, staff estimated
the water enterprise would save approximately $592,000.
Mayor Taylor opened public comments.
Mayor Taylor closed public comments.
Brentwood Infrastructure Financing Authority Member Stonebarger asked what
other options the City had besides going out to bond given the instability
of the municipal bond market.
Director of Finance and Information Systems, Pam Ehler, said this was a
revenue bond and was not the same environment as the other municipal bond
market.
Bond Counsel, John Knox, from Orrick, Herrington & Sutcliffe LLP, said the
City had already incurred the obligation to finance the project through an
agreement with Contra Costa Water District. It was not a question of whether
the City was going to borrow the money for the project; it was a question of
what form the City was borrowing the money in. This was a long term fixed
rate financing that would protect the City in the future from volatile
markets because the rate would be locked in. If the City went with the
agreement it had now, there was a variable rate obligation that could go
much higher and did not offer protection.
Bond Underwriter, Bob Williams, RBC Capital Markets, said the financing
could be delayed and one of the implications of delay was that the "AA"
rating would eventually expire and he was not sure how long the rating was
good for. Once expired, the process would need to start over again and
return to the Brentwood Infrastructure Financing Authority. The market had
not improved this year and he did not know how the market would be in 60 or
90 days.
Brentwood Infrastructure Financing Authority Member Stonebarger said he
understood that the City was committed and had to pay and he asked what
other options the City had. He believed there were 12 months from the time
of project completion to obtain financing.
John Knox, Orrick, Herrington & Sutcliffe LLP, said the City had the option
to finance the project itself or to allow Contra Costa Water District (CCWD)
to finance and charge the City for it. CCWD had a commercial paper program
in place right now which was a variable rate and the rate changed
frequently.
Brentwood Infrastructure Financing Authority Member Stonebarger asked what
the time frame was to obtain financing.
Director of Finance and Information Systems, Pam Ehler, said the City had
been asked to commit last May and to stop the commercial paper by October.
It was better for the City to bond itself since other methods would be more
expensive.
Brentwood Infrastructure Financing Authority Member Stonebarger asked about
the difference in a revenue bond and other types of bonds.
John Knox, Orrick, Herrington & Sutcliffe LLP, said this was a revenue bond
secured by a lien on the water system revenue which was considered a very
secure source of payment. That was why there was an “AA” rating because the
water system was healthy and there was a dedicated revenue and pledge of the
revenue to the bondholder. There were many other types of bonds and he
explained how they were secured.
Brentwood Infrastructure Financing Authority Member Stonebarger said given
the instability of the bond market this last year and the fact that it was
going up, was the City at the bottom or close to the bottom and will there
be some stability in the market and was the City at an advantage if the bond
financing was delayed for six months. He also asked about the insurance
aspect of what had happened in the last six or nine months.
Bond Underwriter, Bob Williams, RBC Capital Markets, said at the beginning
of the year, an option was looked at that would have been “AAA” rated bond
insurance. All of the bond insurers had been downgraded or under credit
watch. The option was still available but was not cost effective. The bond
insurers would be back in business at some point and he was not sure when.
The City could wait twelve months and could have bond insurers back and
possibly pay higher interest rates. The long-term borrowing costs were
currently under five percent and even given the credit market problems, was
attractive on any historical basis.
Brentwood Infrastructure Financing Authority Member Stonebarger said he felt
it was the appropriate time to authorize the issuance of the water revenue
bonds in order to have stability. He asked if there was any recourse of
protection should the item be approved.
Bond Underwriter, Bob Williams, RBC Capital Markets, explained that RBC
Capital Markets was scheduled to sell in approximately two weeks and should
something disruptive happen in the next two weeks, the item could be pulled.
If anything happened after the bond purchase agreement was entered into, it
was at the risk of the underwriter.
John Knox, Orrick, Herrington & Sutcliffe LLP, said the resolution
authorized the sale up to a six percent rate and if it went over that,
Orrick Herrington and Sutcliffe LLP would need to come back to the Brentwood
Infrastructure Financing Authority.
Brentwood Infrastructure Financing Authority Member Stonebarger said he did
not like the six percent interest rate and still felt it was the right time
to go for the bond.
Motion: Adopt Resolution BIFA-17 authorizing the issuance of Brentwood
Infrastructure Financing Authority Water Revenue Bonds, Series 2008 and the
execution and delivery of a Master Trust Agreement, a First Supplemental
Trust Agreement, a Master Installment Sale Agreement, a First Supplemental
Installment Sale Agreement, a Bond Purchase Contract and an Official
Statement in connection therewith and approving a preliminary official
statement therefore and delegating to the Secretary of the Authority the
power to authorize the sale of said bonds and to take certain related
actions in connection therewith.
Moved by Councilmember Erick Stonebarger, seconded by Councilmember Chris
Becnel.
Vote: Motion carried 4-0.
Yes: Councilmember Chris Becnel; Councilmember Erick Stonebarger; Vice Mayor
Robert Brockman; Mayor Bob Taylor
Absent: Councilmember Brandon Richey
15. Adopt a Resolution authorizing execution of a Master Installment Sale
Agreement, a First Supplemental Installment Sale Agreement with the
Brentwood Infrastructure Financing Authority (the "Authority") and a Bond
Purchase Contract with said authority and RBC Capital Markets Corporation in
connection with the refunding of a portion of the Authority’s outstanding
water and Sewer Revenue Bonds, 1996 Series A, and the financing and
Refinancing of the City’s 2008 Water Project. (P. Ehler/B. Kelleher)
Finance and Information Systems Accountant II, Brian Kelleher, presented a
staff report and said the item was for the authorization to execute required
agreements and contracts by the City in connection with the issuance of the
Brentwood Infrastructure Financing Authority Water Revenue Bonds, Series
2008. City action was required to execute sale agreements between the
Brentwood Infrastructure Financing Authority (BIFA) and the City that
pledges revenue from the water enterprise for the debt service payments.
Mayor Taylor opened public comments.
Mayor Taylor closed public comments.
Motion: Adopt Resolution 2008-236 authorizing execution of a Master
Installment Sale Agreement, a First Supplemental Installment Sale Agreement
with the Brentwood Infrastructure Financing Authority (the \"Authority\")
and a Bond Purchase Contract with said authority and RBC Capital Markets
Corporation in connection with the refunding of a portion of the
Authority\’s outstanding water and Sewer Revenue Bonds, 1996 Series A, and
the financing and Refinancing of the City\’s 2008 Water Project.
Moved by Councilmember Chris Becnel, seconded by Councilmember Erick
Stonebarger.
Vote: Motion carried 4-0.
Yes: Councilmember Chris Becnel; Councilmember Erick Stonebarger; Vice Mayor
Robert Brockman; Mayor Bob Taylor
Absent: Councilmember Brandon Richey
16. Adopt a Resolution authorizing the defeasance of the Sewer portion of
debt on the Brentwood Infrastructure Financing Authority Water and Sewer
Revenue Bonds 1996 Series A and approving a budget amendment in the
Wastewater facility fund in the amount necessary for the defeasance,
currently estimated to be $1,800,000 in fiscal year 2008/09. (P. Ehler/B.
Kelleher)
Finance and Information Systems Accountant II, Brian Kelleher, presented a
staff report and said the item was to authorize the pay off the remaining
outstanding debt associated with the sewer portion of the 1996 Water and
Sewer Revenue Bonds. The City had the opportunity to realize debt service
savings through the early payoff of the sewer portion of the bonds. The
existing principal due on the sewer portion was currently $1,925,000 and a
total net present value of paying this off early was approximately $469,000.
Mayor Taylor opened public comments.
Mayor Taylor closed public comments.
Motion: Adopted Resolution 2008-237 authorizing the defeasance of the Sewer
portion of debt on the Brentwood Infrastructure Financing Authority Water
and Sewer Revenue Bonds 1996 Series A and approving a budget amendment in
the Wastewater facility fund in the amount necessary for the defeasance,
currently estimated to be $1,800,000 in fiscal year 2008/09.
Moved by Councilmember Chris Becnel, seconded by Councilmember Erick
Stonebarger.
Vote: Motion carried 4-0.
Yes: Councilmember Chris Becnel; Councilmember Erick Stonebarger; Vice Mayor
Robert Brockman; Mayor Bob Taylor
Absent: Councilmember Brandon Richey
INFORMATIONAL REPORTS FROM COUNCIL MEMBERS, SUBCOMMITTEES AND LIAISONS
(07:59 PM)
Mayor Taylor reported on the Vasco Road Task Force groundbreaking.
REQUEST FOR FUTURE AGENDA ITEMS: (08:02 PM)
ADJOURNMENT (08:02 PM)
Motion: Adjourn ADJOURNMENT
Moved by Councilmember Erick Stonebarger, seconded by Councilmember Chris
Becnel.
Vote: Motion carried 4-0.
Yes: Councilmember Chris Becnel; Councilmember Erick Stonebarger; Vice Mayor
Robert Brockman; Mayor Bob Taylor
Absent: Councilmember Brandon Richey
Respectfully submitted,
Cynthia Garcia, CMC
Assistant City Clerk
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