CC Min 1985-01-21 - Laserfiche WebLink

Browse Search

Item No. 1 (continued) Mayor Britschgi stated that he, Vice Mayor Mosher, City Manager Smith and Finance Director Tasseff are the members of the Investment Policy Committee. Mr. Tasseff presented the subject report dated January 21, 1985 containing the five recommended amendments. He stated also that a monthly report on investments with maturity dates will be provided to Council in the future. M /S: Bury /Mosher to accept the City Council Investment Policy Subcommittees Report of January 21, 1985 and to implement the recommended amendments contained therein. Carried unanimously by voice vote. MINUTE ORDER NO. 85 -06 2. Port Commission recommendation re refunding 1979 revenue bonds (302 -03) Dick Dodge, President of the Board of Port Commissioners, stated that the proposed action will remove restrictive financial covenants of the 1979 bond issue which limit the type of financing the Port may employ in paying off the bonds, with a resulting overall saving of some $800,000 to the Port. In response to request, Mr. Dodge said the failure to provide a written report to Council was an oversight, but that the Port's financial adviser is present to comment and reply to questions. James Colfer, First Municipal Leasing Corporation, Denver, Colorado, financial adviser to the Port, said that the sole purpose of the proposed action is to pay for bonds and remove covenants which would hamper Port development and to save money by reducing the term of the bonds. Mr. Colfer said that Port financial conditions are presently such that debt coverage is 4.8 to 1 which makes such action possible. He reported that an "A" rating is anticipated from Moody's Investor Services which is significantly higher than the present rating. Mr. Colfer said that bonds are scheduled to be advertised January 22 with competitive bids to be received until February 12 when bid w i l l be awarded. He reported that bond interest rates are dropping, and the issue is going to market at a favorable time. Discussion followed and Mr. Colfer and City Attorney Schricker commented and replied to questions regarding the lack of any obligation of the City of Redwood City in the matter; the Charter requirement that Council consider matters relating to the issuance of revenue bonds; the obligation of the Port; the understanding of buyers of revenue bonds of that obligation; the fact that the bonds would have priority over any commitment of the Port to contribute to City funds; and the likelihood of the City's ability to share in Port earnings being enhanced as a result of the issue. Title read. M /S: Stangel /Chandler RESOLUTION NO. 9776 APPROVING RESOLUTION OF THE BOARD OF PORT COMMISSIONERS FOR REFUNDING OF PORT REVENUE BONDS adopted unanimously by roll call vote. Reg.Mtg. 1/21/85 Page 2 MINUTE BOOK NO. 45 Page No. 239