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Current Council Agenda and Past Meeting Information

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
 

City Administration
City of Brentwood City Council
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Brentwood, CA 94513
(925) 516-5440
Fax (925) 516-5441
E-mail allcouncil@brentwoodca.gov