REPORT:
Finance Committee
SYNOPSIS:
The Finance Committee met Friday April 19, 2002 and discussed the
issues detailed in the Committee report.
RECOMMENDED ACTION:
Receive and file this report.
Norma J. Glover, Chairman
Finance Committee
Attendance: Present were Committee members Michael Antonovich,
Jane Carney, Norma Glover and Leonard Paulitz. Absent was Committee member
William Burke.
Discussion Item:
Report on Evaluation of 3rd Floor North Diamond Bar
Facility: Mr. James Rabe, Keyser Marston Assoc., and Mr. David
Vogel, International Parking Design, presented their space analysis report
regarding completion of 3rd Floor North, which would add
approximately 16,000 sq. ft. of additional space available for leasing. The
analysis looked at factors that could impact the build-out of the 3rd
Floor. These factors include additional parking; relocation of AQMD storage;
limitation of leasing space for private use; review of leasing market in the
area; and the financial feasibility of the project requirements for
additional parking and leasing options. The report recommendations include
the redesign of the parking lot to add 97 additional spaces; the need to
further evaluate AQMD storage requirements; and the use of a real estate
broker experienced with State and/or County leases. The estimated project
cost to complete 3rd Floor North and redesign the parking lot is
approximately $1,000,000 representing a projected 8.16% return on costs.
Financing Considerations regarding 3rd Floor North
Recommendation: Rick Pearce, Chief Financial Officer, briefed the
Committee on potential financing options available to complete the 3rd
Floor with the required additional parking. Based on the analysis of Keyser
Marston, a parking structure to meet the additional parking demand will not
be required. This reduces the potential project cost by about half ($1
million) and would therefore not require additional borrowing. Mr. Pearce
proposed that the construction could be funded by using the remaining
balance in the Building Corporation’s construction fund combined with the
estimated FY 2002-2003 budget savings from the proposed refinancing of the
Diamond Bar Headquarters debt.
Action Items:
Recommendation to Adopt an Ordinance Approving Addendum No.3 to the
Installment Purchase Agreement Relating to the Diamond Bar Headquarters
Facilities: Rick Pearce and Kurt Yeager, Bond Counsel, Stradling,
Yocca, Carlson & Rauth, briefed the Committee on the proposed Current
Refunding of callable outstanding debt. The Diamond Bar Facility has twelve
years remaining (2014) on its debt payments. The current par amount of its
bonds outstanding is $56.2 million with $25.4 million callable. The
District, through the AQMD Building Corporation, is proposing to refund the
callable portion of its debt resulting in estimated present value savings of
$700 thousand. In addition, the 1998 redemption of the 2009 Term Bond
produced a large single budget savings in 2009, it is proposed to
restructure the debt payment schedule (to spread budget savings) adjusting
the annual payments over the remaining twelve years. The AQMD must adopt an
Ordinance approving the addendum to the Installment Purchase Agreement with
the SCAQMD Building Corporation for the purpose of refunding the callable
portion of the outstanding debt. The Committee approved this letter and its
attachments for Board consideration at its May 3, 2002 meeting.
Recommendation to Adopt a Resolution Approving the Third
Supplemental Trust Agreement, the Escrow Agreement, and the Preliminary
Official Statement for the SCAQMD Building Corporation Bonds Relating to the
Diamond Bar Headquarters Facilities: Rick Pearce explained that this
item was related to the above item and that Board action is required to
approve the Trust Agreement, Escrow Agreement and Preliminary Official
Statement relating to the refunding. These documents have been prepared with
input from District staff by outside Bond/Disclosure Counsel. The
Preliminary Official Statement when finalized will be used to provide
detailed financial information about the District to prospective bond
purchasers. The Committee approved this letter and its attachments for Board
consideration at its May 3, 2002 meeting.
Other Business: None
Public Comment: None
/ / / |
