|
Present- |
Council Members Golonski, Gordon, Ramos, Vander Borght and Campbell. |
|
Absent - - - - |
Council Members None. |
|
Also Present - |
Ms. Alvord, City Manager; Mr. Barlow, City Attorney; and, Mrs. Campos,
City Clerk.
|
|
2006 Integrated
Resource Plan �
Electric System -
Study Session |
Mr. Jeider, Power Resources Manager, Burbank Water and
Power (BWP), presented the 2006 Integrated Resource Plan (IRP), the
purpose of which is to provide direction for planning to meet Burbank�s
future electrical needs while maintaining a high level of reliability,
meeting Burbank�s commitment to the environment and keeping stable and
competitive rates. He reported that the IRP�s principal findings are that
BWP will meet 100 percent of its increased customer requirements with
efficiency and renewable resources. He added that customer energy usage
is expected to increase by approximately seven percent over the next five
years with dependency on fossil fuels declining by approximately nine
percent over the same period. He noted that there are planning challenges
facing BWP such as reliably providing for customers� capacity and energy
requirements during the peak load period, as well as having adequate
reserves to cover outages. He also mentioned that because
Burbank is a
fully-resourced utility, there may be potential rate increases in an
effort to meet the renewable portfolio commitment.
Mr. Jeider then discussed BWP�s demand and energy load
forecasts which are based on usage since 1994, and noted the need to be
mindful of the potential new loads. He also identified BWP�s resources,
which include: Palo Verde,
Colorado; Hoover Dam,
Las Vegas; Intermountain Power Project, Utah; Pacific DC Intertie; and,
Burbank�s local generation. He noted that 90 percent of the resources
currently come from coal and natural gas, with minimal nuclear and other
resources.
Mr. Jeider also discussed the resource changes since the
IRP�s adoption in 2002 and several system efficiency improvements. He
noted the challenges facing resource planning, such as: legislative
impacts; being a fully-resourced utility; meeting the City�s conservation
and Renewable Portfolio Standard goals; supply issues; and, the need to
minimize rate impacts.
The Council received the report.
|
|
6:23 P.M.
Recess |
The Council recessed at this time.
|
|
Regular Meeting
Reconvened in
Council Chambers |
The regular meeting of the Council of the City of Burbank was reconvened
at 6:38 p.m. by Mr. Campbell, Mayor.
|
|
Invocation
|
The invocation was given by Reverend Ron White, American Lutheran Church.
|
|
Flag Salute
ROLL CALL |
The pledge of allegiance to the flag was led by JP O�Connor.
|
|
Present-- |
Council Members Golonski, Gordon, Ramos, Vander Borght and Campbell. |
|
Absent - - - - |
Council Members None. |
|
Also Present - |
Ms. Alvord, City Manager; Mr. Barlow, City Attorney; and, Mrs. Campos,
City Clerk.
|
|
Fire Service Day
|
Mayor Campbell invited Fire Captain Steve Briggs to make an announcement
regarding Fire Service Day. Captain Briggs invited the community to
attend the Fire Service Day event on Saturday, May 13, 2006 at the
Police/Fire Headquarters, which will be kicked off with a pancake
breakfast benefiting the Burbank YMCA.
|
|
301-1
Building Safety
Week |
Mayor Campbell presented a proclamation in honor of Building Safety Week
to John Cheng, Building Official, Community Development Department, and,
Nicholas Trotta and Kenneth San Miguel, Members of the Board of Building
and Fire Code Appeals.
|
|
301-1
Building Safety
Poster Contest |
Mrs. Georgino, Community Development Director, gave a
brief introduction of the Poster Contest, the theme of which was Building
A Safer World Together, in celebration of the importance of the prevention
of safety and security hazards. She recognized the contest judges: T.J.
Baptie, Vice President, Walt Disney Co., which provided three grand prizes
of family passes to Disneyland; Brian Miller, General Manager, Cartoon
Network; and, Robert Mills, Chair of the Board of Building and Fire Code
Appeals. She also commended the Burbank Unified School District (BUSD)
for their support and recognized the presence of Dr. Bowman, BUSD
Superintendent; Dave Kemp, BUSD Board President; and, Joel Shapiro, BUSD�s
Assistant Superintendent for Instructional Services. Ms. Coates, Building
Inspector, Community Development Department, introduced the following
winners, who were presented certificates by the Mayor: Kindergarten and
First Grade Category � Gabrielle Bess, Emerson Elementary, Grand Prize;
Alexandra Tomb, Emerson Elementary, First Place; Danielle Boyce, Jefferson
Elementary, Second Place; and, Hailey Heath, Emerson Elementary, Third
Place.
Second Grade and Third Grade Category � Kelly Broderick,
Emerson Elementary, Grand Prize; Kara Fagin, Roosevelt Elementary, First
Place; Hannah Dragomer, Emerson Elementary, Second Place; and, Jose
Calderon, Stevenson Elementary, Third Place.
Fourth and Fifth Grade Category: Araz Majnoonian,
Jefferson Elementary, Grand Prize; Daisy Duong, Jefferson Elementary,
First Place; Ceara Norton, Jefferson Elementary, Second Place; and, Tomas
Gulbinas, First Lutheran Elementary, Third Place.
|
|
301-1
Mary Alice
O�Connor Day |
Mayor Campbell presented a video tribute to Mary Alice
O�Connor in honor of her lifetime of dedicated service to the
Burbank community. He
also presented Mrs. O�Connor with a proclamation declaring May 9, 2006 as
Mary Alice O�Connor Day and a bouquet of yellow roses. He then invited
the Council and Former Mayors Laurell, Hastings, Kramer, Bowne and
Wiggins, to take a photograph with Mrs. O�Connor.
|
|
7:12 P.M.
Recess |
The Council recessed at this time for a celebration honoring Mrs.
O�Connor. The meeting reconvened at 7:29 p.m. with all members present.
|
|
Agenda Item
Oral Communications
|
There was Council consensus to consider the item regarding Naming of the
Buena Vista Child Care Facility in Honor of Mary Alice O�Connor prior to
the regular Council business.
Mayor Campbell called for speakers on this agenda item at this time.
|
|
Citizen
Comment |
Appearing to comment in support of naming the facility in Mrs. O�Connor�s
honor were: Peter McGrath; Anja Reinke; Gary Olson; Helen Von Seggern;
David Laurell; Janet Killian; Connie Wilson; Robert Idavia; and, Dink
O�Neal.
|
|
1207
Naming of
the Buena Vista
Child Care
Facility in Honor
of Mary Alice
O�Connor |
Ms. Alvord, City Manager, requested the Council consider naming the Buena
Vista Child Care and Family Resource Center facility in honor of long-time
Burbank resident Mary Alice O�Connor. She noted several of Mrs.
O�Connor�s accomplishments, including: Member of Burbank Board of
Education for 10 years; Founding Member of the Burbank Historical Society
and Friends of the Burbank Library; Founding Member and 50-plus year Board
Member of the Family Service Agency of Burbank; Member of the Advisory
Board for the Burbank Community YMCA; leader of the effort to reopen the
Starlight Bowl in the early 1980s; one of the first members of the Burbank
Civic Pride Committee; and, Member of the Board of Trustees of Burbank
Community Hospital, among many others.
Ms. Alvord noted that based on Mrs. O�Connor�s lifetime of community
service and volunteerism, staff recommended that the Council adopt the
proposed resolution renaming the Buena Vista Child Care Facility and
Family Resource Center as the Mary Alice O�Connor Family Center. She then
unveiled a rendering of the proposed child care and family center.
Mrs. O�Connor made brief remarks and thanked the Council
and the community for the tribute.
The Council commended Mrs. O�Connor for her service to
the Burbank community and noted her accomplishments and the many
ways in which she has touched the lives of community members.
|
|
Motion |
It was moved by Mrs. Ramos and seconded by Mr. Vander Borght that �the
following resolution be passed and adopted:�
|
|
1207
Naming of
the Buena Vista
Child Care
Facility in Honor
of Mary Alice
O�Connor |
RESOLUTION NO. 27,232:
A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK APPROVING RENAMING THE
BUENA VISTA CHILD CARE FACILITY AND FAMILY RESOURCE CENTER THE MARY ALICE
O�CONNOR FAMILY CENTER.
|
|
Adopted |
The resolution was adopted by the following vote:
Ayes: Council Members
Golonski, Gordon, Ramos, Vander
Borght and Campbell.
Noes: Council Members None.
Absent: Council Members None.
|
|
Reporting on
Council Liaison
Committees
|
Mr. Campbell reported on the Southern California
Association of Governments Regional Council meeting he attended.
|
|
Initial Open
Public Comment
Period of Oral
Communications |
Mr. Campbell called for speakers for the initial open public comment
period of oral communications at this time.
|
|
Citizen
Comment |
Appearing to comment were:
Annabelle Godwin and
Deanne Phinney, members of the Child Care Committee, in support of the
lease of property to the Burbank Housing Corporation for the operation and
management of the Mary Alice O�Connor Family Center; Tom Carson, member of
the Friends of the Burbank Library, in support of Proposition 81; Gary
Garrison, on the Downtown summer concert series; Paul Dyson, on the
pending Arroyo Verdugo Corridor Transit Study; Lee Paysinger, Chair of the
Board of Library Trustees, in support of Proposition 81; Dr. Jay Adams,
member of the Magnolia Park Citizens Advisory Committee, in support of the
Magnolia Park Improvements Phase 5 Project; Brian Malone, liaison for the
Traffic and Transportation Committee, reporting on recent issues discussed
at their meetings; Fred Prouser, on the lease of property for the
operation and management of the
Mary Alice O�Connor Family Center;
Eden Rosen, on affordable housing; James Schad, on oral communications and
in support of an additional Kennel Attendant position; Mark Barton, on
awards and proclamations; and, Esther Espinoza, on the acquisition of the
property located at 2721 West Burbank Boulevard.
|
|
Staff
Response |
Members of the Council and staff responded to questions raised.
|
|
Agenda Item
Oral Communications |
Mr. Campbell called for speakers for the agenda item oral communications
at this time.
|
|
Citizen
Comment |
Appearing to comment were: Anne
Macleod and Jackie Light, in support of an additional Kennel Attendant
position; Peter McGrath, in support of the lease agreement for the
operation of the Mary Alice O�Connor Family Center; Esther Espinoza, on
the purchase of the property located at 2721 West Burbank Boulevard; Rose
Prouser and Annette Ivey, on the lease agreement for the operation of the
Mary Alice O�Connor Family Center; David Piroli, on the acquisition of
property located at 2721 West Burbank Boulevard and on child care costs;
and, James Schad, on oral communications.
|
|
Staff
Response |
Members of the Council and staff responded to questions raised.
|
|
9:06 P.M.
Dr. Gordon Left
the Meeting |
Dr. Gordon left the meeting at this time due to an alleged Brown Act
violation regarding this item.
|
|
1208-2
Jt. Mtg. with
Redev. Agency
Lease of Prop.
At 401 N.
Buena Vista for
Buena Vista
Family Center
Deliberation
|
Ms. Roldan, Redevelopment Project Analyst, Community Development
Department, requested the Council and Redevelopment Agency (Agency) Board
consider a lease of City property located at 401 North Buena Vista Street
to the Burbank Housing Corporation (BHC) for the operation and management
of the Mary Alice O�Connor Family Center. She reported that on August 23,
2005, the Council and Agency Board approved the re-use of the former Buena
Vista Library as a child care and family resource center. Included in
that approval was a Cooperation Agreement between the City and Agency that
authorized the Agency to fund and complete the rehabilitation of the site
as a child care and family resource center.
Ms. Roldan reported that as previously recommended, staff is proposing
that the City enter into a long-term, real property lease with the BHC to
provide exclusive management responsibilities of the child care and family
resource center. She explained that the approved project includes the
rehabilitation of the existing 7,900-square foot former library building
to be utilized as a childcare center for 84 to 88 children. She added
that an additional 640 square feet have been added to the building along
Buena Vista Street to accommodate the family resource center. She stated
that the facility�s management and operations are proposed to be
structured similar to the management structure of the Cottages Child Care
Center located on Ontario Street, in which BHC owns the center, Knowledge
Learning Center (KLC) operates the center and 20 percent of the spaces are
affordable for low- to moderate- income households. She added that the
affordable spaces will be available on a first-come first-serve basis with
priority given to residents of BHC projects, Agency-assisted housing
developments as well as focus neighborhoods. She also noted that the
Family Resource Center will have no access to the child care center and
will include its own restroom facilities. She further added that during
weekdays when the child care center is open, the Family Resource Center
will be open to the public for information only and during the evenings
and weekends when the child care center is closed, programs and classes
will be held in partnership with community organizations geared towards
building healthy families. She stated that staff has compiled a
comprehensive list of programs and potential partnerships.
With regard to the proposed lease, Ms. Roldan noted that staff proposes:
a 55-year lease with the BHC for $1 per year; BHC agrees to enter into a
five-year operation agreement with KLC for the operation of the child care
component; BHC will pay for the initial start-up costs, including an
annual management fee of $55,000 and pre-opening expenses for furniture,
equipment etc, estimated at $305,000; BHC and KLC will adhere to the
priority enrollment criteria; 20 percent of the spaces will be made
affordable for low- to moderate-income households; a sponsorship program
will be implemented; a single waiting list will be established for the
Cottages and Mary Alice O�Connor Child Care Centers; BHC will oversee the
Family Resource Center component; and, BHC will be required to pay for the
furnishings and equipment for the Family Resource Center, estimated at
$10,000.
Ms. Roldan elaborated on staff�s recommendation for KLC�s operation of the
child care center, considering: its excellent reputation in the child care
industry; a proven history in the community; experience in working with
the BHC; and, operating more than 800 child care centers of which 400 are
accredited and 400 are currently in process of receiving national
accreditation for the education of young children.
Ms. Roldan informed the Council that the management fee model would
require BHC to maintain financial responsibility for the center while KLC
assumes all operational management and liability. In addition, BHC will
maintain control over the tuition rates for both the market and subsidized
spaces, an important factor in managing the gap between market and
affordable rates. She estimated that after the first year of operation,
the profits generated from the child care center will offset the
management fee and any profit generated thereafter will be reinvested to
provide deeper subsidies for the affordable spaces.
Ms Roldan discussed that in order to sustain BHC�s housing activities,
operation of the Family Resource Center, child care center and their
administrative costs, staff is recommending a forgivable loan in the
amount of $370,000, over a ten-year period, as outlined in the Loan
Agreement. In addition, staff proposes to transmit the $75,000 play yard
allowance approved in the Fiscal Year 2005-06 project budget to BHC for
the purchase and installation of play yard equipment. She noted that this
will allow BHC to work with KLC in selecting the preferred play yard
equipment. She also gave an update on the construction schedule, with a
grand opening anticipated for January 2007, and commented on the
appropriation request of $364,000 for unanticipated construction costs.
Ms. Roldan also responded to public comment regarding the number of spaces
allocated for infants and toddlers; lease term with the BHC; KLC�s lease
term; the priority enrollment system; and, waiting lists.
Mrs. Ramos requested clarification on the priority
enrollment for BHC project residents or those in focus neighborhoods.
Mr. Golonski requested further clarification on the
implementation of the corporate sponsorship program and on the subsidized
child care rates at the
Cottages
Child Care Center.
Mr. Vander Borght inquired as to whether an audit of
KLC�s operations at the
Cottages Child Care
Center has been conducted and how a determination of the profits is made,
since deeper subsidies are predicated upon profits. He suggested a
mechanism to ensure that the Center is added to the City�s internal
auditing entities. He also inquired as to whether the child care costs
are comparable to other child care facilities in the surrounding areas,
especially for the infants.
Mrs. Ramos requested clarification on the corporate
sponsorship program and expressed support for its implementation. She
also supported the requirement for an annual audit.
Mr. Campbell, Mr. Golonski and Mrs. Ramos requested more
clarification on the accreditation process, whether accreditation has been
made a requirement for the child care center and on the time period prior
to its initiation.
Mr. Golonski inquired as to whether funds have been
budgeted for the ongoing maintenance costs.
Mr. Vander Borght requested clarification on the
unanticipated costs.
|
|
Motion |
It was moved by Mrs. Ramos and seconded by Mr. Golonski that �the
following resolutions be passed and adopted:�
|
|
1208-2
Approve Lease
Agmt. with
BHC for the
Buena Vista
Family Center |
RESOLUTION NO. 27,233:
A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK APPROVING THE LEASE
AGREEMENT BETWEEN THE CITY OF BURBANK AND BURBANK HOUSING CORPORATION
(BUENA VISTA FAMILY CENTER).
|
|
Redev. Agency
Reso. Adopted |
Redevelopment Agency Resolution No. R-2158 Approving a Loan Agreement
between the Agency and Burbank Housing Corporation and Amending the Agency
Fiscal Year 2005-2006 Budget to Appropriate $370,000 was adopted.
|
|
Adopted |
The resolutions were adopted by the following vote:
Ayes: Council Members
Golonski, Ramos, Vander Borght
and Campbell.
Noes: Council Members None.
Recused: Council Member Gordon.
|
|
9:56 P.M.
Dr. Gordon
Returned to the
Meeting |
Dr. Gordon returned to the meeting at this time.
|
|
1208-1
Jt. Mtg. with
Redev. Agency
Property
Acquisition of
2721 W.
Burbank Blvd. |
Ms. Davidson-Guerra, Assistant Community Development
Director/Housing and Redevelopment, requested the Council consider the
proposed acquisition of real property located at 2721 West Burbank
Boulevard and related documents; and, the Redevelopment Agency (Agency)
Board consider a budget amendment to the Fiscal Year (FY) 2005-06 annual
budget. She noted that the Council has historically shown its ongoing
commitment to and support of the non-profit service providers in Burbank,
such as in providing Community Development Block Grant funding totaling
$1,034,900 to assist in the expansion and rehabilitation of the Burbank
Temporary Aid Center facilities and lease of the former Fire Station 13 to
the Boys and Girls Club since 1994 to further its mission in serving
Burbank�s youth. She stated that similarly, the Council has established a
goal of helping the Family Service Agency (FSA) find a suitable new
location from which they can continue and expand operations. She
elaborated that the FSA has been working on strengthening
Burbank�s communities
since 1953 by providing low- and no-cost professional clinical and
psycho-educational services. She stated that while the FSA receives
grants from various agencies, there are no substantial profits being
generated and their current 2000-square foot facility limits their ability
to grow and increase community support.
Ms. Davidson-Guerra reported that the proposed site
measures approximately 7,900 square feet, with a 6,800-square foot
building and 16 on-site parking spaces. She added that the proposed
acquisition price is $1.95 million which represents the fair market value
of the property. She also highlighted several elements of the purchase
and sale agreement, including: the seller will deliver a vacant property;
escrow will be completed in thirty days or sooner; the City will cooperate
with the seller�s 1031 Exchange at no cost to the City; the title
insurance company will be Alliance Title; title insurance will be provided
by the seller; the escrow company will be Escrows Inc.; and, the $1,500
escrow fee will she shared equally by the seller and the City. She noted
staff�s recommendation that the City retain ownership of the property and
negotiate a lease agreement with the FSA with the guidance of a Project
Oversight Committee including two Members of the Council, City Manager,
Community Development Director and other key staff members. She also
stated that staff recommended that the Agency repay a portion of its City
Centre Project Area Loan for the sole purpose of funding the proposed
acquisition, through a cooperation agreement.
Dr. Gordon expressed concern with the property
acquisition process and requested several clarifications from staff
regarding the negotiation process and the specifics of the services and
clientele of the FSA.
|
|
Motion |
It was moved by Mrs. Ramos and seconded by Mr. Vander Borght that �the
following resolutions be passed and adopted:�
|
|
1208-1
Approve Coop.
Agmt. with
Redev. Agency |
RESOLUTION NO. 27,234:
A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK AMENDING THE FISCAL
YEAR 2005-2006 ANNUAL BUDGET, APPROPRIATING FUNDS IN THE AMOUNT OF
$1,950,750.00 AND APPROVING A COOPERATION AGREEMENT WITH THE REDEVELOPMENT
AGENCY OF THE CITY OF BURBANK.
|
|
1208-1
Approve Purchase and
Sale Agmt. with
Burnett Trust
(2721 W.
Burbank Blvd.) |
RESOLUTION NO. 27,235:
A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK APPROVING THE PURCHASE
AND SALE AGREEMENT AND ESCROW INSTRUCTIONS BETWEEN THE CITY OF BURBANK AND
THE BURNETT TRUST (2721 West Burbank Boulevard).
|
|
Redev. Agency
Reso. Adopted |
Redevelopment Agency Resolution No. R-2159 Amending the Fiscal Year
2005-2006 Annual Budget in the Amount of $1,950,750 and Approving a
Cooperation Agreement with the City of Burbank was adopted.
|
|
Adopted |
The resolutions were adopted by the following vote:
Ayes: Council Members
Golonski, Ramos, Vander Borght
and Campbell.
Noes: Council Members Gordon.
Absent: Council Members None.
|
|
Project Oversight Committee |
Mrs. Ramos and Mr. Vander Borght were appointed to serve on the Project
Oversight Committee by Council consensus.
|
|
Motion |
It was moved by Mr. Golonski and seconded by Mr. Vander Borght that "the
following items on the consent calendar be approved as recommended.�
|
|
Minutes
Approved |
The minutes for the regular meetings of March 21, March 28, April 4 and
April 11, 2006 were approved as submitted.
|
|
1301-3
Magnolia Park
Imp. Phase 5
(B.S. No. 1208) |
RESOLUTION NO. 27,236:
A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK APPROVING AND ADOPTING
CONTRACT DOCUMENTS, PLANS AND SPECIFICATIONS, AND DETERMINING THE LOWEST
RESPONSIBLE BIDDER, ACCEPTING THE BID, AND AUTHORIZING EXECUTION OF A
CONTRACT FOR MAGNOLIA PARK IMPROVEMENTS PHASE 5 PROJECT, BID SCHEDULE NO.
1208, TO CINARY CONSTRUCTION COMPANY.
|
|
1301-3
Animal Shelter
Driveway
Reconstruction
(B.S. No. 1191) |
RESOLUTION NO. 27,237:
A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK APPROVING A CHANGE
ORDER IN THE AMOUNT OF $17,117.64 FOR THE ANIMAL SHELTER DRIVEWAY
RECONSTRUCTION AND LANDSCAPING PROJECT, BID SCHEDULE NO. 1191.
|
|
1301-3
Installation of
Bicycle Detection at 11
Signalized
Intersections |
RESOLUTION NO. 27,238:
A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK APPROVING AND ADOPTING
CONTRACT DOCUMENTS, PLANS AND SPECIFICATIONS, AND DETERMINING THE LOWEST
RESPONSIBLE BIDDER, ACCEPTING THE BID, AND AUTHORIZING EXECUTION OF A
CONTRACT FOR INSTALLATION OF BICYCLE DETECTION AT ELEVEN (11) SIGNALIZED
INTERSECTIONS PROJECT, BID SCHEDULE NO. 1210, TO REPUBLIC ELECTRIC AND
AMENDING THE FISCAL YEAR 2005-2006 BUDGET TO APPROPRIATE ADDITIONAL FUNDS
IN THE AMOUNT OF $10,852.00 FOR THE PROJECT.
|
|
Adopted |
The consent calendar was adopted by the following vote:
Ayes: Council Members
Golonski, Gordon, Ramos, Vander
Borght and Campbell.
Noes: Council Members None.
Absent: Council Members None.
|
|
804-4
Converting Pension Obligation Bonds
from a Variable
to a Fixed Rate
Council Deliberation
|
Mr. Torrez, Financial Services Director, requested
Council authorization to convert the City�s variable rate Pension
Obligation Bonds to a fixed rate. He reported that in June 2004, the City
issued $25,120,000 of taxable Pension Obligation Bonds (POBs) to pay off
the unfunded pension liability associated with the Police and Fire
personnel retirement plans. He stated that the POBs were structured as
variable rate bonds bearing a monthly interest at a rate equal to the
30-day London Inter-Bank Offered Rate (LIBOR) plus a margin of 30 basis
points (0.30 percent) and were purchased by DEPFA Bank. He explained that
LIBOR is the interest rate banks charge each other for short-term money
and is a commonly used index for establishing short-term bond rates.
Interest rates are set monthly and the bonds amortize on June 1 of each
year from 2005 through 2024.
Mr. Torrez added that in addition, the City also
established a $10 million reserve as a hedge against potential volatility
of the variable rate debt. However, since June 2004, the Federal Reserve
Board has increased short-term interest rates 15 times. In turn, the
30-day LIBOR rates have increased from approximately 1.45 percent at the
outset to 5.12 percent recently or 5.32 percent, including the 30 basis
point margin. He added that in spite of the current higher interest rates,
today�s rates are still much lower than the 7.325 percent rate that the
City would have been paying had the POBs not been issued. He cited two
basic options that could be undertaken; leave the bonds as is, or choose
to convert to a fixed rate of approximately 5.90 percent either with DEPFA
Bank the existing bond holder, or refinance the bonds through a new fixed
rate bond issue. He then discussed the pros and cons of each option.
With regard to the $10 million reserve, Mr. Torrez stated
that the Council could: retain the reserve against rising interest rates
should the Council choose not to convert the bonds to a fixed rate; use
some or all of the $10 million to pay down the principal on the POBs,
noting that this can only be done prior to converting to a fixed rate; or,
reserve the funds for other projects or purposes.
There was Council consensus to converting the bonds to a
fixed rate and discussion on the use of the $10 million hedge fund. While
some members expressed preference for using the entire amount to pay off
the bond obligation, there was also discussion on using $5 million to pay
off the bond obligation and holding off on the additional $5 million as
recommended by staff.
|
|
Motion |
It was moved by Mr. Golonski and seconded by Mrs. Ramos that �the
following resolution be passed and adopted:� |
|
|
A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK AMENDING THE FISCAL
YEAR 2005-2006 ANNUAL BUDGET BY APPROPRIATING $5,035,000 FOR THE PENSION
OBLIGATION BONDS.
|
|
|
A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK AMENDING RESOLUTION NO.
26,692, ADOPTED BY THE CITY COUNCIL OF THE CITY ON MARCH 30, 2004, MAKING
PROVISIONS FOR THE FIXED RATE CONVERSION OF THE BONDS AND AUTHORIZING
ACTIONS RELATED THERETO.
|
|
Motion Failed |
The motion failed by the following vote:
Ayes: Council Members
Golonski, Gordon, and Ramos.
Noes: Council Members Vander Borght and Campbell.
Absent: Council Members None.
|
|
Continued
Council Deliberations
|
Mr. Vander Borght stated he would support staff�s recommendation provided
that the Council makes a commitment that the $5 million remains in the
Pension Obligation Bond Reserve and is restricted to pension-related
costs.
|
|
Motion |
It was moved by Mr. Golonski and seconded by Mrs. Ramos that �the
following resolutions be passed and adopted:�
|
|
804-4
Appropriating
$5,035,000 for
Pension Obligation Bonds |
RESOLUTION NO. 27,239:
A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK AMENDING THE FISCAL
YEAR 2005-2006 ANNUAL BUDGET BY APPROPRIATING $5,035,000 FOR THE PENSION
OBLIGATION BONDS.
|
|
804-4
Amend Reso.
No. 26,692 for
Fixed Rate
Conversion of
Bonds |
RESOLUTION NO. 27,240:
A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK AMENDING RESOLUTION NO.
26,692, ADOPTED BY THE CITY COUNCIL OF THE CITY ON MARCH 30, 2004, MAKING
PROVISIONS FOR THE FIXED RATE CONVERSION OF THE BONDS AND AUTHORIZING
ACTIONS RELATED THERETO.
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Adopted |
The resolutions were adopted by the following vote:
Ayes: Council Members
Golonski, Gordon, Ramos, Vander
Borght and Campbell.
Noes: Council Members None.
Absent: Council Members None.
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11:42 P.M.
Mr. Vander
Borght Left the
Meting |
Mr. Vander Borght left the meeting at this time.
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801-2
Budget Study
Session
(Police Dept. and
Community Dev.
Dept.) |
Police Chief Hoefel presented the proposed Fiscal Year
2006-07 budget for the Police Department.
Mrs. Georgino, Community Development Director, presented
the proposed Fiscal Year 2006-07 budget for the Community Development
Department.
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12:59 A.M.
Reconvene Redev. Agency
Meeting |
The Redevelopment Agency meeting was reconvened at this time.
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Final Open
Public Comment
Period of Oral
Communications |
Mr. Campbell called for speakers for the final open public comment period
of oral communications at this time.
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Citizen
Comment |
Appearing to comment was Rose Prouser, on a recent Planning Board meeting
and on the Police Department budget.
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Staff
Response
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Members of the Council and staff responded to questions raised.
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Adjournment |
There being no further business to come before the Council, the meeting
was adjourned at 1:01 a.m.
Margarita Campos,
CMC
City
Clerk
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