MINUTES OF THE JOINT MEETING OF THE

SAN JOSÉ CITY COUNCIL/REDEVELOPMENT AGENCY BOARD

AND SAN JOSÉ FINANCING AUTHORITY

 

 

SAN JOSÉ, CALIFORNIA                                                                TUESDAY, MAY 21, 2002

 

The Council of the City of San Jose convened at 4:50 p.m. for a Joint Meeting with the San José Redevelopment Agency and the San José Financing Authority in Council Chambers at City Hall.

 

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

               Absent: Council Members:        Campos, Yeager (both excused).

 

2          (a)        Adoption of a resolution of the Agency Board:

                        (1)        Authorizing the issuance of Redevelopment Agency of the City of San José Merged Area Redevelopment Project Housing Set-Aside Taxable Revenue Bonds, Series 2002G and 2002H (collectively, the "Bonds") in an aggregate principal amount not to exceed $70,000,000, initially at a variable interest rate;

                        (2)        Approving in substantially final form the Bonds, Indenture, Fiscal Agent Agreement, Regulatory Agreement and Declaration of Restrictive Covenants, Bond Purchase Agreements, Official Statement and Remarketing Agreements; authorizing the Executive Director, or her designee, to execute and, as appropriate, negotiate these documents and other related documents as necessary.

                        (3)        Authorizing the Executive Director and the Director of Finance to take all necessary actions in connection with the issuance of the Bonds.

            (b)        Adoption of a resolution of the City Council:

                        (1)        Approving the issuance of the Bonds by the Redevelopment Agency; making a finding pursuant to Redevelopment Law that the Merged Area will benefit from the projects funded by the Bonds that are located outside of the Merged Area;

                        (2)        Authorizing certain City officials to take all necessary actions in connection with issuance of the Bonds, which include the hiring of bond counsel and financial advisor.

            (c)        Adoption of a resolution of the City of San José Financing Authority approving in substantially final form and authorizing the Treasurer, or his designee, to execute Bond Purchase Agreements and Remarketing Agreements with Banc of America Securities LLC and Salomon Smith Barney, Inc. to serve as underwriter and remarketing agent for Series 2002G and 2002H, respectively.

 

            Documents filed: (1) Memorandum from City Manager Del D. Borgsdorf and Redevelopment Executive Director Susan F. Shick, dated May 1, 2002, recommending the adoption of said resolutions. (2) Supplemental memorandum from Chief Deputy General Counsel Patricia A. Deignan, dated May 20, 2002, transmitting additional disclosure language proposed to be added to the Preliminary Official Statement based on proposals in the Governor’s 2002-2003 May Budget Revision pertaining to required payments to the Educational Revenue Augmentation Fund. (3) Supplemental memorandum from Redevelopment Executive Director Susan F. Shick and City Manager Del D. Borgsdorf, dated May 21, 2002, transmitting the draft Preliminary Official Statement for the Redevelopment Agency of the City of San José Merged Area Redevelopment Project Housing Set-Aside Taxable Revenue Bonds, Series 2002G and 2002H, as discussed in the April 29, 2002, Staff Report. (4) See Item 3.2(f) in City Council Minutes of May 21, 2002 for the April 29, 2002 Staff report from the Director of Finance, Scott P. Johnson, and the Redevelopment Agency Director of Finance & Administration, David Baum.

 

            Discussion/Action: William J. Garbett spoke in opposition to the proposal. Upon motion by Council Member Chavez, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, Resolution No. 70982 entitled: “Resolution of the Council of the City of San José Approving the Issuance by the Redevelopment Agency of the City of San José of its Merged Area Redevelopment Project Housing Set-Aside Taxable Revenue Bonds, Series 2i002G and 2002H in an Aggregate Principal Amount not to Exceed $70,000,000”; Resolution No. SJFA-53 entitled: “Resolution Authorizing the Execution and Delivery of a Bond Purchase Agreement by and Among the Redevelopment Agency of the City of San José, the City of San José Financing Authority and Banc of America Securities LLC and the Execution and Delivery of a Bond Purchase Agreement by and Among the Redevelopment Agency of the City of San José, the City of San José Financing Authority and Salomon Smith Barney Inc.”; and Redevelopment Agency Resolution No. 5282, were adopted. Vote: 11-0-0-0.

 

ADJOURNMENT

 

            The Council of the City of San José adjourned the Redevelopment Agency and the San José Financing Authority and the joint portion of the meeting adjourned at 4:51 p.m.

 

 

RON GONZALES, MAYOR

ATTEST:

 

 

PATRICIA L. O’HEARN

CITY CLERK