HomeMy WebLinkAbout1989-06-20; City Council; 10065; Out of state travel for EFJPA ChairmanCARLSBAD — AGENDA ILL
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DEPT FIN
TITLE:
APPROVAL OF OUT OF STATE TRAVEL FOR THE
EFJPA CHAIRMAN, FINANCE DIRECTOR AND AN
EAA REPRESENTATIVE
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RECOMMENDED ACTION:
Adopt Resolution No.89^//authorizino the Chairman of the EFJPA, the City
Finance Director and one (1) EAA Representative to travel to New York to
meet with bond rating agencies and insurance companies, with all costs to
be reimbursed from the bond issue.
ITEM EXPLANATION
The City of Carlsbad is a member of the Encina Financing Joint Powers
Authority (EFJPA), an authority created for the purpose of issuing bonds
to finance a portion of the construction cost of the Encina Phase IV
project. The four member agencies of the EFJPA have been working on the
proposed issue for approximately six months and are now entering the final
stages.
At this time it is necessary to meet with the bond rating agencies and
insurance companies who will be asked to participate in this issue to help
them to fully understand the Phase IV project and the financing program.
If these key players in the issue process are well informed on the
strength of the EFJPA, its members, revenue pledges and the necessity of
the project, interest rates can be favorably influenced and insurance
premiums can be dramatically reduced.
The EFJPA is proposing to take a financing team to New York to meet with
representatives of Moody's Investor Service and three to four bond
insurance companies on June 20 and 21, 1989. Since Carlsbad is the
largest member of the EFJPA, it is important to have a representative
included in the group. Staff is recommending that Councilmember Eric
Larson, who was elected Chairman of the EFJPA, and James Elliott, Finance
Director be allowed to travel to New York as the City's representatives.
All costs related to this travel request will be reimbursed to the City
from bond issue proceeds.
Another important member of this team is the EAA representative. It is
imperative that the rating agencies and insurance companies understand the
project and the details of its construction, as well as the background of
the Encina Water Pollution Control Facility and the operation of the JAC.
The members of the EFJPA believe that the EAA's role in the dialogue with
the rating agencies and insurance companies is of prime importance. Staff
is asking the Council to advance funds for the expenses of one EAA staff
member to accompany the EFJPA group to New York with the understanding
that the cost will ultimately be born by the bond issue and all members
of the EFJPA. Since this travel will take place before the questions of
approval could be placed before the EAA board, the Council is being asked
to approve this advance. Further, as a result of timing, this item will
appear before the Council after the out of state travel is to take place,
and therefore, retroactive approval of this agenda item is being
requested.
Page Two of Agenda Bill No. ld( 0(0 5*
FISCAL IMPACT:
The travel to New York involves round trip air fare, hotel for two nights,
meals and transportation. The total cost is expected to be between $4,200
and $4,500. Funding for these expenses can be made available temporarily
by transferring funds from other accounts within the general fund. No
council action is necessary for transfers of this size.
EXHIBITS:
1. Resolution No.Q' / ' / authorizing out of state travel expenses for
the EFJPA Chairman, the City Finance Director and an EAA
Representative.
1 RESOLUTION NO. 89-177
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA,AUTHORIZING THE EFJPA
3 CHAIRMAN, CITY FINANCE DIRECTOR TO TRAVEL OUT
OF STATE AND ADVANCING FUNDS FOR ONE EAA
4 REPRESENTATIVE TO TRAVEL OUT OF STATE
5
6 WHEREAS, the City of Carlsbad is the largest participant in the
7 Encina Financing Joint Powers Authority (EFJPA); and
8 WHEREAS, the ability of the EFJPA to receive favorable ratings and
9 insurance bids on the proposed bond issue will have a material effect on
10 the cost to the City for debt service payments during the next 20 to 25
11 years; and
12 WHEREAS, meeting with representatives of the rating agencies and
13 insurance companies will provide the EFJPA with the opportunity to
14 establish clear and valuable communications with the individuals who will
15 be responsible for said ratings and insurance premium bids; and
16 WHEREAS, the attendance of a representative of the EAA will allow
17 the financing team to deal with all issues related to the JAC, project
18 construction for Phase IV and existing operations effectively; and
19 WHEREAS, funds for all expenses related to this travel can be made
20 available from within the existing General Fund accounts; and
21 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
22 Carlsbad, as follows:
23 1. That the City Finance Doctor and the City Council
24 representative to the EFJPA are hereby authorized to travel to New York
25 as part of the EFJPA financing team,
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2. That funds to cover the cost of one EAA representative traveling
to New York as part of the EFJPA financing team will be advanced by the
City of Carlsbad.
3. That all costs related to this travel will be recovered from the
EFJPA Bond Issue.
PASSED, APPROVED AND ADOPTED by the City Council at a regular
meeting thereof held on the 20th day of June , 1989, by the
following vote, to wit:
AYES: Council Members Lewis, Mamaux & Pettine
NOES: None
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ABSENT: Council Members Kulchin parson / /T
ATTEST:
tU. JP.
LmlDE A. LEWIS, Mayor
ALETHA L. RAUTENKRANZ, City CleVk
(SEAL)