JOINT CITY OF SAN JOSÉ

CITY COUNCIL/FINANCING AUTHORITY

SAN JOSÉ, CALIFORNIA TUESDAY, JANUARY 30, 2001

The Council of the City of San José convened the San José Financing Authority at 2:17 p.m. in City Council Chambers at City Hall, in a Joint Session.

Present: Council Members - Chavez, Cortese, Dando, Diquisto, LeZotte, Reed, Shirakawa, Jr., Williams, Yeager; Gonzales.

Absent: Council Members - None.

Vacant: District 5.

2 (a) Conduct a Public Hearing of the City Council concerning the approval of the proposed lease financing by the City and the City of San José Financing Authority related to the refinance of certain outstanding obligations, a portion of which the proceeds were used by the City to acquire and construct improvements to the Hayes Mansion and Edenvale Garden Park and to finance certain additional improvements to the Hayes Mansion, additional park improvements and a public parking facility at Edenvale Garden Park.

(b) Adoption of a resolution by the City of San José Financing Authority authorizing the issuance of three series of lease revenue bonds in the initial aggregate principal amount not to exceed $50 million for the Series B & C taxable bonds, and $11 million for the Series D tax exempt bonds, in connection with financing and refinancing certain public capital improvements at the Hayes Mansion and Edenvale Garden Park, authorizing and directing execution of an Indenture of Trust and certain financing documents, authorizing the negotiation of the sale of bonds, approving the Official Statements and authorizing other related actions.

(c) Adoption of a resolution by the City Council:

(1) Authorizing and directing the execution of certain financing documents, including the Project Lease and other related documents and directing certain related actions in connection with financing for certain public capital improvements.

(2) Authorizing the City Manager to negotiate and execute an agreement with Stone & Youngberg, LLP for financial advisory services from January 1, 1999 until April 1, 2001, in an amount not to exceed $70,000.

(3) Authorizing the City Attorney to negotiate and execute an agreement with Jones Hall, A Professional Law Corporation, for bond counsel services, in an amount not to exceed $85,500.

(d) Adoption of an ordinance by the City Council approving, authorizing, and directing the execution of a Project Lease in connection with the Hayes Mansion Phase III Improvement and Refunding Project.

(Finance)

(Deferred from 1/16/01 – Item 2)

Documents filed: (1) Memorandum from Acting Director of Finance, Mark Burton, dated January 22, 2001, recommending Council hold a public hearing concerning proposed lease financing related to the refinancing of certain outstanding obligations pertaining to improvements to the Hayes Mansion and Edenvale Garden Park, and adoption of resolutions authorizing related actions. (2) Memorandum from Assistant to the City Manager, Deanna Santana, dated January 30, 2001, submitting Preliminary Official Statement, Lehman Brothers and Painewebber Incorporated and Preliminary Official Statement, Dain Rauscher Incorporated.

Discussion/Action: The public hearing was opened and William Garbett spoke in opposition. Upon motion Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, the public hearing was closed, and Resolution No. SJFA-48, entitled: “Resolution of the City of San José Financing Authority Authorizing the Issuance of Lease Revenue Bonds in Connection with Financing and Refinancing of Certain public Capital Improvements, Authorizing and Directing Execution of an Indenture of Trust and Certain Financing Documents, Authorizing the Negotiation of the Sale of Bonds, Approving the Official Statements, and Authorizing Other Related Actions”; Resolution No. 70143, entitled: “Resolution of the Council of the City of San José Approving, Authorizing and Directing Execution of Certain Financing Documents and Directing Certain Related Actions in Connection with Financing for Certain Public Capital Improvements”; Ordinance No. 26290, entitled: “An Ordinance of the City of and San José Approving, Authorizing and Directing Execution of a Project Lease”, were adopted. Vote: 10-0-0-0-1. Vacant: District 5.

ADJOURN SAN JOSÉ FINANCING AUTHORITY

The San José Financing Authority adjourned at 2:20 p.m.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN

CITY CLERK