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Home My Public Portal About19990727 - Agendas Packet - Board of Directors (BOD) - 99-19 . Re nal Open Space glo MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Meeting 99-19 SPECIAL MEETING BOARD OF DIRECTORS AGENDA* 6:30 P.M. Town of Portola Valley Tuesday Town Hall July 27, 1999 765 Portola Road, Room 8 (6:30) ROLL CALL SPECIAL MEETING OF THE BOARD OF DIRECTORS ** ORAL COMMUNICATIONS -- Public ADOPTION OF AGENDA BOARD BUSINESS 1. Public Hearing Pursuant to Government Code Section 6586.5 on the Proposed 1999 Revenue Bond Financing (Second Issue) by the Midpeninsula Regional Open Space District Financing Authority and the Significant Public Benefit Thereof -- C. Britton ADJOURNMENT *NOTE: Times are estimated and items may appear earlier or later than listed. Agenda is subject to change of order. ** TO ADDRESS THE BOARD: The Chair will invite public comment on agenda items at the time each item is considered by the Board of Directors. You may address the Board concerning other matters during oral communications. Each speaker will ordinarily be limited to 3 minutes. Alternately, you may comment to the Board by a written communication, which the Board appreciates. 110 I)tstel ( ircle . Los Altos, CA 94022-1404 . Phone:650-691-1200 FAX:0)0-691 0485 . E-mail: mrosd«openspace.or, Wehsite:www.openspace.org ho,rrcl of Director, Petra Sienwnti,Nlxv( Rivev,led Cyr, Deane Little, Nanette I Linko, Bet,v,Crowder, Kenneth C. Nit/ -Geiter.rl Mmm,wr:I (raid Britton July 15, 1999 As President of the Midpeninsula Regional Open Space District Board of Directors I hereby call a Special Meeting Public Hearing in San Mateo County to be held on Tuesday, July 27 at 6:30 p.m. at the Town Hall, Town of Portola Valley, 765 Portola Road, Room 8, Portola Valley, California 94028 to consider the proposed financing of the acquisition of land located within the District for open space purposes of the District in San Mateo County by the issuance and sale of bonds of the Midpeninsula Regional Open Space District Financing Authority, and whether there are any significant public benefits to the District from the proposed financing, including demonstrable savings to the District from the issuance and sale of such bonds, such as savings in effective interest rate, bond preparation, bond underwriting or bond issuance costs (in accordance with Section 6586 of the California Government Code), and at said hearing any interested person may appear to address the Board of Directors of the District on the foregoing matters. A Public Hearing in Santa Clara County will be held on August 11, 1999, at 7:30 p.m., at the regular meeting place of the Board of Directors of the District, 330 Distel Circle, Los Altos, California 94022 for the same purposes for financing of the acquisition of land located within the District for open space within Santa Clara County. `Yled Cyr Board President Regional Open Space s 1 R-99-109 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Meeting 99-19 July 27, 1999 AGENDA ITEM 1 AGENDA ITEM Public Hearing Pursuant to Government Code Section 6586-5_on the Proposed 1999 Revenue Bond Financing (Second Issue)by the Midpeninsula Regional Open Sp District Financing Authority and the Significant Public Benefit Thereof GENERAL MANAGER'S RECOMMEND Hold a public hearing for the purpose of receiving comment on the proposed 1999 Revenue and financing(Second Issue)by the Midpeninsula Regional Open Space District Financing Authority and the public benefit thereof. DISCUSSION At your meeting of March 10, 1999(see report R-99-38)the Controller's Report for 1999-2000 budget assumed there would be an additional note issue in 1999 to defease the 1990 Notes and provide approximately$13.3 in new acquisition funds. This proposed borrowing was subsequently folded into the budget preparation process. At your Meeting of March 24, 1999 (see report R-99-40)the Administration and Budget Committee noted and endorsed the issuance of approximately $29,000,000 of the Midpeninsula Regional Open Space District Financing Authority 1999 Revenue Bonds (Second Issue). Accordingly, Government Code Section 6586.5 requires public hearings to be held in any county where the proceeds of such a bond issue are proposed to be spent for District purposes. Public testimony should be received on the significant public benefit to the District resulting therefrom, including demonstrable savings to the District. On August 11, 1999 it is proposed that you will conduct a similar hearing in Santa Clara County and then adopt the required resolution to initiate the sale of the 1999 Revenue Bonds (Second Issue). In accordance with the attached letter from Tom Lockard, Managing Director of Stone and Youngberg,the District's underwriter,the aggregate savings expected from the Midpeninsula Regional Open Space District Financing Authority's bond structure would total $170,000,which is deemed to be a significant savings as defined by law. Prepared by: L. Craig Britton, General Manager Contact person: Same as above 330 Distel Circle - Los Altos,CA 94022-1404 - Phone:650-691-1200 FAX:650-691-0485 . E-mail: mrosd@openspace.org - Web site:www.openspace.org Board of Directors:Pete Siemens,Mary C.Davey,led Cyr,Deane Little,Nonette Hanko,Betsy Crowder,Kenneth C.Nitz -General Manager:L.Craig Britton 07/20/99 16:28 FAX 10002/002 Stone & Youngberg LLC Escablishcd i9p july 20, 1999 Mr-Craig Britton Midpeninsula.Regional Open Space District 330 Distel Circle Los Altos,California 94022 Re: 1999 Financing Program Dear Craig: The 1999 Revenue Bond financing program is being issued by the District's Joint Powers Financing Authority(JPA). The JPA was established in 1996 and at that time the District used this financing authority to issue the District's 1996 financing program. During 1998 a taw was passed requiring joint powers authorities to conduct public hearings in the jurisdictions where bond proceeds will be expended. The public hearings are intended to set out the purpose for the financing and to establish the costs savings expected to be achieved from the JPA financing. The 1999 financing program will refinance at lower interest rates promissory notes sold in 1990 and raise new funds for acquiring open space in Santa Clara and San Mateo Counties. By selling the financing program in one issue of IPA revenue bonds the District will realize savings in excess of$150,000 from the economy of issuing one bond issue rather than in two — one for the refunding and then another bond issue for the new funds. included in the$150,000 estimated savings are the costs of bond counsel, trustee, rating, printing, regulatory compliance and underwriter's counsel.Also,by combining issues,the District realizes some annual administrative savings from only paying one set of trustee and continuing disclosure fees. I estimate the present value cost of these savings to be approximately$20,000. Therefore, the aggregate savings expected from the JPA bond structure totals $170,000. In my opinion, use of the JPA structure will provide significant public benefit to the District by generating the savings described above. Sincerely, Stone&Youngberg LLC Tom Lockard Managing Director cc. Carlo Fowler,Orrick Herrington& Sutcliffe 50 California Strcct - San Francisco, California 94111 1 415/981-1314