MINUTES OF THE JOINT CITY OF SAN JOSÉ

CITY COUNCIL/REDEVELOPMENT AGENCY/FINANCING AUTHORITY

 

 

SAN JOSÉ, CALIFORNIA                                                                                                                              TUESDAY, FEBRUARY 13, 2001

 

The Council of the City of San José convened in adjourned regular session at 3:56 p.m. in City Council Chambers at City Hall, for a joint meeting with the San José Redevelopment Agency and the San José Financing Authority.

 

               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 with respect to the financing of the 4th & San Fernando Street Parking Facility (the “Garage”) to be issued for the Garage and Other Parking Improvements (collectively, the “Project”).

            (b)        Adoption of a resolution by the City of San José Financing Authority:

                        (1)        Authorizing the issuance of Bonds in the aggregate principal amount of not to exceed $55 million to be sold at a competitive sale in connection with the Project.

                        (2)        Approving the forms and authorizing and directing the execution of the Indenture of Trust, the City Parking Pledge Agreement, the Agency Pledge Agreement and other related documents and directing certain related actions in connection with the financing for the Project.

                        (3)        Approving the forms and approving the use of a Notice of Sale and the Official Statement in connection with the competitive sale of the Bonds, and other related actions.

            (c) Adoption of a resolution by the City Council approving the forms and authorizing the execution of the City Parking Pledge Agreement; the Reconciliation Agreement between the City and the Redevelopment Agency; the Third Amendment to the First Amended and Restated Reimbursement Agreement between the City and the Redevelopment Agency related to the Authority’s 1993 Series C Convention Center Refunding Project; and other related documents, and directing certain related actions in connection with the financing for the Project.

            (d) Adoption of a resolution by the Redevelopment Agency approving the forms and authorizing the execution of the Agency Pledge Agreement pursuant to which the Agency agrees to make certain payments to the City of San Jose Financing Authority to pay debt service on the Bonds; the Reconciliation Agreement between the City and the Redevelopment Agency; Third Amendment to First Amended and Restated Reimbursement Agreement between the City and the Agency related to the Authority’s 1993 Series C Convention Center Refunding project; and other related documents, and directing certain related actions in connection with the financing for the Project.

            (Finance/Redevelopment Agency/Streets and Traffic)

 

            Documents filed: (1) Memorandum from Acting Director of Finance Mark Burton, David Baum, Director of Redevelopment Agency Finance and Administration, and Wayne Tanda, Director of Streets and Traffic, dated January 24, 2001, recommending the City Council, in joint meeting with the Redevelopment Agency and San José Financing Authority, conduct a public hearing and take certain actions with respect to the financing of the 4th & San Fernando Street Parking Facility to be issued for the Garage and other Parking Improvements. (2) Supplemental memorandum from Director of Finance, Scott P. Johnson, dated February 7, 2001, transmitting the draft Official Statement for the City of San José Financing Authority Revenue Bonds Series 2001A (4th & San Fernando Parking Facility Project) as discussed in the January 24, 2001, Staff report. (3) Second Supplemental memorandum from Finance Director Scott P. Johnson, dated February 12, 2001, recommending an increase in the City of San José Financing Authority bond authorization amount from a principal amount not to exceed $50 million to a principal amount not to exceed $55 million, due to the increase in Garage costs, as detailed therein.

 

            Discussion/Action: Mayor Gonzales opened the public hearing and two individuals addressed Council: William Garbett spoke in opposition to the proposal, and John Williamson spoke in support of increasing public transit.  Mayor Gonzales expressed disappointment in the cost increase of the proposed project, but noted the parking is needed in the downtown until such a time as there is more light rail and bus service into the downtown. He stated he supports consideration of recommendations in the Urban Land Institute’s report for combining large with small parking facilities with the potential to be more accessible to businesses and residences in the downtown and to residences in the Downtown Frame. Vice Mayor Shirakawa, Jr. moved approval of the Staff recommendation. Council Member Cortese seconded the motion. Council Member Dando questioned whether efforts had been made to lower costs, such as relocating the banquet facilities elsewhere, and since costs have risen dramatically, she questioned whether the Rotary Club, the organization which is contributing $1,000,000 toward the project, should share the cost increases. Harry Mavrogenes, Deputy Executive Director, Redevelopment Agency, stated the parking facility was determined to be the only site that would be appropriate for the banquet facilities, that value engineering was conducted on the project to look for ways to cut costs; however, that all elements of the garage because of its location and visibility are more expensive than for a stand-alone garage, noting the relationship of the facility to the residential area and the new $170 million library across the street. Council Member Dando stated for the future, when the City is involved in public/private projects, those projects should all be self-park projects, with parking built in, because the costs of building a stand-alone garage which is appropriate for the neighborhood is more expensive. Mayor Gonzales asked that when the motion is made on the project, as part of the joint Council/Redevelopment portion of the Redevelopment Agency meeting immediately following the City Council meeting, Staff be directed to revisit the agreement with the Rotary Club before the item comes back to Council and the Redevelopment Agency Board. Referring to the issue of future discussions about parking in the downtown, Council Member Chavez stated stand-alone garages will be more costly, and as Council addresses the issue of parking for the Civic Center Plaza, the same questions will arise about the differences between stand-alone garages and private development with parking capacity in excess of their own needs. She stated that stand-alone facilities, if built, should be funded adequately to build quality structures, in addition to working with the private sector to foster responsibility in relationship to parking needs in the San José Downtown Association. She requested that Staff redistribute the report provided when the Rotary Club’s agreement came to Council, about the general uses of the facility and how the facility would be incorporated into the Department of Conventions, Arts and Entertainment as a revenue generator. Council Member Reed stated it was his understanding that the facility was being built because of a community need and the Rotary’s $1,000,000 was not expected to be enough to build the facility. He stated the Rotary Club was willing to contribute $1,000,000 to the facility in order to meet there every Wednesday, with the rest of the time belonging to whomever will control the facility, with and those fees going to the City. On a call for the question, the motion carried unanimously; Resolution No. SJFA-49, entitled: “A Resolution of the Board of Directors of the City of San José Financing Authority Authorizing the Issuance and Sale of Revenue Bonds in the Maximum Principal Amount of $55,000,000 to Finance the Construction of the New 4th & San Fernando Parking Facility and other Parking-Related Capital Improvements and Approving Related Documents and Official Actions”; Resolution No. 70163, entitled: “A Resolution by the Council of the City of San José Approving Proceedings to Finance the Construction of the New 4th & San Fernando Parking Facility and Other Parking-Related Capital Improvements, Approving the Issuance and Sale of Revenue Bonds by the City of San Jose Financing Authority for Such Purpose, and Approving Related Documents and Official Actions”; and Redevelopment Agency Resolution No. 5122, entitled: “A Resolution of the Board of Directors of the Redevelopment Agency of the City of San José Approving Proceedings to Finance the Construction of the New 4th & San Fernando Parking Facility and Other Parking-Related Capital Improvements, Approving the Issuance and Sale of Revenue Bonds by the City of San José Financing Authority for Such Purpose, and Approving Related Documents and Official Actions”, were adopted. Vote: 10-0-0-0-1. Vacant: District 5.

 

Adjournment

 

            The San José Financing Authority and San José City Council adjourned at 4:08 P.M, and the Redevelopment Board adjourned to a Redevelopment meeting immediately following this meeting.

 

 

RON GONZALES, MAYOR

 

ATTEST:

PATRICIA L. O’HEARN, CITY CLERK

By NANCY ALFORD, ASSISTANT CITY CLERK