City of West Sacramento Agenda
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SPECIAL MEETING OF THE RIVER CITY REGIONAL STADIUM FINANCING AUTHORITY JUNE 17, 2021 AGENDA Phil Serna, County of Sacramento, President Martha Guerrero, City of West Sacramento, Vice President Oscar Villegas, County of Yolo Patrick Kennedy, County of Sacramento Chris Ledesma, City of West Sacramento 12:00 PM Call to Order Pursuant to the Governor’s Executive Order N-29-20, members of the River City Regional Stadium Financing Authority and staff will participate in this meeting via a teleconference. To reduce the spread of COVID-19, members of the public are asked to watch the meeting broadcast live on Wave Cable Channel 20 and to submit comments in writing by 10:00AM on June 17, 2020. To submit a comment in writing, please email [email protected] and write “Stadium Authority-Public Comment” in the subject line. In the body of the email, include the item number and/or title of the item as well as your comments. All comments received by 10:00 AM will be provided to the Authority Members; posted on the meeting agenda page of the City’s website: https://www.cityofwestsacramento.org/government/meetings-agendas/river-city- regional-stadium-financing-authority; and shall become part of the record of the meeting. MINUTES 1. APPROVAL OF MINUTES OF THE JUNE 8, 2020 SPECIAL MEETING OF THE AUTHORITY. (ABBAS) REPORTS 2. PRESENTATION OF THE TREASURER’S REPORT FOR CALENDAR YEAR 2020. (RAPER) Comment: This report provides information on the compliance provisions of the River City Stadium Financing Authority revenue bonds, which funded construction of Sutter Health ballpark, for calendar year 2020. Recommendation: It is respectfully recommended that the Board receive and accept this report. NEW BUSINESS 3. CONSIDERATION OF APPROVAL OF AUTHORITY AND MUNICIPAL ADMINISTRATIVE EXPENSE BUDGETS FOR FY 2021/22. (RAPER) Comment: The Stadium Lease Agreement provides for a Municipal Administrative Budget to be adopted annually to reimburse member agencies for costs incurred for compliance with the Financing Agreements, terms of Bonds, and Indenture. Approval of a 2021-22 budget will allow for these reimbursements. Recommendation: It is respectfully requested that the River City Stadium Financing Authority Board: 1) approve an initial budget for Municipal Administration Expenses for FY 2021/22 while the parties continue to negotiate in good faith to agree on a final budget for FY 2021/22, and 2) direct the Treasurer to send bills to the River City Stadium Management (RCSM) as expenses are paid by the City of West Sacramento on behalf of the Authority. 4. COVID-19 UPDATE ON BALLPARK OPERATIONS, REVENUES, AND DEBT OBLIGATIONS. (RAPER) Comment: Under the Stadium Lease Agreement, the Sacramento River Cats Baseball Club, and River City Stadium Management aka “the River Cats” operate Sutter Health Park as sublessees and provide revenues to the River City Regional Stadium Financing Authority to make debt service on the outstanding bonds. This agenda item provides the opportunity for the River Cat’s representative to make an informational presentation to the Authority on the status of the stadium and business plan. 5. PRESENTATIONS BY THE PUBLIC ON MATTERS NOT ON THE AGENDA AND WITHIN THE JURISDICTION OF THE AUTHORITY. ADJOURNMENT I declare under penalty of perjury that the foregoing agenda for the June 17, 2021 meeting of the River City Regional Stadium Financing Authority was posted June 14, 2020 at 1110 West Capitol Avenue, West Sacramento, California; and at 700 H Street, Sacramento, California; and was available to the public. A copy of the agenda was provided to the Yolo County Board of Supervisors for local posting. /s/Yashin Abbas Authority Secretary If you need special assistance to participate in this meeting, please contact the City Clerk’s Office, (916) 617-4500. Notification of at least 48 hours prior to the meeting will assist staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting. Assisted listening devices are available at this meeting. Agenda Item #1 RIVER CITY REGIONAL STADIUM FINANCING AUTHORITY June 8, 2020 Minutes Pursuant to the Governor’s Executive Order N-29-20, members of the River City Regional Stadium Financing Authority and staff will participate in this meeting via a teleconference. To reduce the spread of COVID-19, members of the public are asked to watch the meeting Livestream (https://www.cityofwestsacramento.org/government/meetings-agendas/river-city-regional-stadium- financing-authority), or via Wave Cable Channel 20 and to submit comments in writing by 2:00 PM on June 8, 2020. To submit a comment in writing, please email [email protected] and write “Stadium Authority-Public Comment” in the subject line. In the body of the email, include the item number and/or title of the item as well as your comments. All comments received by 2:00 PM will be provided to the Authority Members; posted on the meeting agenda page of the City’s website: https://www.cityofwestsacramento.org/government/meetings-agendas/river-city-regional-stadium- financing-authority. shall become part of the record of the meeting. The special meeting was called to order at 4:01 PM. Board Member Villegas was absent. All other members were present. Chair Serna presided. The Pledge of Allegiance was led by President Serna. Entry No. 1 Approved the minutes of the May 30, 2019 special meeting of the River City Regional Stadium Financing Authority. (0206-11-03) MOTION: Sandeen. SECOND: Kennedy. AYES: Cabaldon, Serna. ABSENT: Villegas. ROLL CALL VOTE: SANDEEN: Aye. CABALDON: Aye. KENNEDY: Aye. SERNA: Aye. Entry No. 2 Received and accepted the Treasurer’s Report for calendar year 2019. Entry No. 3 Approved the budget for Municipal Administration Expenses for Fiscal Year 2020-21; and directed the Treasurer to send bills to River City Stadium Management as expenses are paid by the City of West Sacramento. MOTION: Kennedy. SECOND: Cabaldon. AYES: Sandeen, Serna. ABSENT: Villegas. ROLL CALL VOTE: CABALDON: Aye. KENNEDY: Aye. SANDEEN: Aye. SERNA: Aye. Board Member Villegas joined the meeting at 4:23 PM. Entry No. 4 Heard presentation by the River Cats on the impacts of COVID-19 and related public health orders on the baseball season, ballpark revenues, and upcoming debt obligations; and provided feedback related to impacts from COVID-19. Entry No. 5 There were no presentations by the public on matters not on the agenda. River City Regional Stadium Financing Authority Meeting Minutes June 8, 2020 Page 2 The meeting adjourned at 4:31 PM. Yashin Abbas, Authority Secretary Minutes approved as presented by a majority vote of the Authority Board on June 17, 2021. Yashin Abbas, Authority Secretary 2 RIVER CITY REGIONAL STADIUM FINANCING AUTHORITY AGENDA REPORT MEETING DATE: June 17, 2021 ITEM #2 SUBJECT: TREASURER’S REPORT FOR CALENDAR YEAR 2020 INITIATED OR REQUESTED BY: REPORT COORDINATED OR PREPARED BY: [ ] Council [X] Staff Becky Robertson, Finance Manager Finance & Technology Department [ ] Other ATTACHMENT [X] Yes [ ] No [X] Information [ ] Direction [ ] Action OBJECTIVE The purpose of this report is to provide an information report on the “post issuance” compliance provisions associated with the revenue bonds issued by the River City Regional Stadium Financing Authority (Authority) to fund construction of the Sutter Health Park ballpark. RECOMMENDED ACTION Staff respectfully recommends that the River City Regional Stadium Financing Authority receive and accept the Treasurer’s report for calendar year 2020. BACKGROUND In 1999, the River City Regional Stadium Authority was formed as a joint powers agency for the purpose of assisting with the financing of the (Sutter Health) ballpark, and that year issued $39.99 million in taxable lease revenue bonds to construct the facility. The bonds were secured by an installment sale agreement with River City Land Holding Company (RCLH) which requires that RCLH makes lease payments to the Authority sufficient to cover debt service on the bonds. A substantial portion of stadium revenues flow to a “lock box” from which they are distributed on a 50/50 basis to the River City Stadium Management (RCSM) for operating expenses and to the bond trustee (BNY Mellon) for payment of debt service. Funds sent to the trustee are used first for bond service then to fund various reserves. Additional funds are then returned to the RCSM for stadium operations. The stadium is owned by the RCLH, a limited purpose corporation that is legally isolated from the RCSM via a chain of leases, with the RCSM as the ultimate lessee. This structure is intended to create protections that would preserve the Authority’s ability to foreclose on the stadium and grounds in the event of a bankruptcy. Under the stadium lease, the RCSM is obligated to make rental payments equal to the debt service on the revenue bonds. In addition, there are agreements that secure the River Cats team to the stadium, including non- relocation agreements, security agreements, pledge agreements and a deed of trust. There are several measures put in place to ensure that the Authority and the purchasers of the bonds are protected. For example, at the time the bonds were issued, bond insurance was purchased for the bonds, and this insurance protects the purchasers of the bonds, not the Authority. To protect the Authority, a number of reserve funds were established. In fact, multiple layers of required reserves are built into the stadium transaction in order to ensure that various sources of funds would be available in the case that RCSM is unable to make required debt service payments; including: 1. Revenue fund reserve: maintained equivalent to one year’s debt service obligations. 2. Supplemental reserve fund: a. Guaranteed Payment Reserve Account: funded at $100,000 per year up to $3 million maximum; and b. Attendance-Based Payment Reserve Account: funded up to $50,000 per year, with amounts varying depending upon attendance.