[00:00:02]
[I. Call to Order.]
WELCOME.THE TIME IS NOW 10 0 3 AND I'M GOING TO CALL TO ORDER THE L-A-U-S-D FINANCING CORPORATION MEETING.
I AM GOING TO TAKE ROLL, UH, MS. NEW BILL.
PRESENT BOARD PRESIDENT SCHON PRESENT.
UH, BEFORE WE BEGIN THE MEETING, I'M HOPING MR. TIM RASNICK CAN COME UP AND GIVE US A QUICK, OR ANYONE, UM, WHO HAS THE ABILITY IN OUR FINANCE TO COME UP AND GIVE US A QUICK EXPLANATION.
MAYBE ONE TO TWO MINUTES MAX OF THIS MEETING AND THE NEXT MEETING, WHAT THEY DO FOR THE, WHAT THEY DO FOR THE DISTRICT CONTROLLER.
UM, THE DISTRICT HAS TWO FINANCING CORPORATIONS, THE L-A-U-S-D FINANCING CORPORATION AND THE L-A-U-S-D, ADMINISTRATIVE BUILDING FINANCING CORPORATION.
THE PURPOSE OF BOTH OF THEM IS TO SERVE AS A COUNTERPARTY WHEN WE DO COP TRANSACTIONS.
A COP FUNDAMENTALLY IS A LEASE LEASEBACK TRANSACTION.
AND SO THE COUNTERPARTY IS THE FINANCING CORPORATION IN THOSE DEALS.
THE ADMINISTRATIVE BUILDING FINANCING CORPORATION, AS YOU CAN IMAGINE, HELPED FINANCE THIS BUILDING.
UM, AND THE FINANCING CORPORATION WAS USED FOR A VARIETY OF SCHOOL AND NON-SCHOOL LOCATIONS, UM, PROJECTS THAT WERE DONE IN OTHER LOCATIONS.
IF YOU WANNA LEARN MORE, YOU CAN REACH OUT TO US AND WE'LL DIRECT YOU TO THE PLACE TO, TO FIGURE THIS ALL OUT.
[II. Approval of prior meeting minutes.]
BUSINESS IS APPROVAL OF THE PRIOR MINUTES.CAN I HAVE A MOTION AND A SECOND FOR THE, UH, APPROVAL OF THE PRIOR MINUTES? I'LL MOVE IT.
MOVE BY MR. MELVOIN, SECONDED BY DR. RIVAS.
UH, THE PURPOSE OF THIS CORPORATION
[III. Appointment, Designation, and Ratification of Officers.]
IS TO ASSIST IN THE DISTRICT'S CERTIFICATION OF PARTICIPATION OF FINANCING.THE ROLE OF THE CORPORATION IS PURELY MINISTERIAL.
THERE, THERE'S NO OTHER SIGNIFICANT BUSINESS TAKEN BY THIS BOARD OF DIRECTORS, AND NOW IT'S MY, UM, DUTY TO SET THE BOARD OF DIRECTORS AS REQUIRED BY THE CORPORATION'S BYLAWS.
SO THE PRESIDENT OF THE CORPORATION SHALL BE THE CURRENT PRESIDENT OF THE BOARD OF EDUCATION.
THAT'S MR. SCOTT SCH MESEN, THE VICE PRESIDENT OF THE CORPORATION SHALL BE THE CURRENT VICE PRESIDENT OF THE BOARD OF EDUCATION.
THE TREASURER OF THE CORPORATION SHALL BE THE CURRENT CFO.
UH, THAT'S MR. SIMON BRAVO, KAMI SITTING IN THE AUDIENCE.
AND THE SECRETARY OF THE CORPORATION SHALL BE THE CURRENT CONTROLLER OF THE DISTRICT.
UM, MAY HAVE A MOTION TO APPROVE THE OFFICERS AS I HAVE JUST READ THEM.
MOVED BY BOARD PRESIDENT SCHON, SECONDED BY DR.
UH, BOARD PRESIDENT SCHON? YES.
ARE THERE ANY OBJECTIONS? OH, SORRY.
MR. DAVID TOSKI IS HERE FOR PUBLIC COMMENT.
YOU'LL HAVE TWO MINUTES TO SPEAK ONCE YOU BEGIN, AND I'M WILLING TO COMBINE.
YOU'RE GONNA DO THE SECOND COP, UH, SECOND FINANCIAL? THAT'S CORRECT.
I'M UNWILLING TO GIVE YOU A COMBINED FOUR MINUTES.
UM, UH, LADIES AND GENTLEMEN, THE FINANCING CORP AS EXPLAINED WAS PRETTY OBTUSE, BUT IT IS A VERY BRILLIANT IDEA THAT WE DEVELOPED WHEN I WAS ON THE BOARD TO AVOID BAD ACTORS IN THE MARKETPLACE.
PEOPLE WHO, UH, AS PLUNKET OF TAMMANY HALL WOULD SAY, HAD SEEN THEIR OPPORTUNITIES AND TAKEN THEM.
FOR EXAMPLE, AT SODOM IOR HIGH SCHOOL, WE WERE KNOWING ON MONDAY THAT WE WERE GOING TO BUY THAT PROPERTY.
AND ON FRIDAY, THE LARGEST DONOR TO ANTONIO OSA SWEPT IN AND BOUGHT THE PROPERTY BEFORE WE COULD BUY IT.
AND IN THE END, WE HAD TO IMMINENTLY DOMAIN IT AND PAY AN EXTRA $20 MILLION TO THIS BAD ACTOR.
THIS ABILITY OF THE FINANCE CORP HELPS AVOID, WE HAD ANOTHER ONE IN THE VALLEY SIMILARLY.
UM, SO IT, IT IS A BRILLIANT IDEA.
OUR TWO LEGAL COUNSEL, UH, WHO DO FACILITIES AND PEOPLE WHO DO FINANCE, CAME UP WITH THIS AFTER WE HAD SOME BAD EXPERIENCES.
IT IS VERY THOUGHTFUL AND IT ALSO AVOIDS SOME POLITICAL CONFLICT.
LIKE THIS BUILDING HAD A LOT OF POLITICAL CONFLICT WHEN I VOTED AGAINST IT.
THERE, THERE WAS INVESTMENTS IN THIS BUILDING THAT WOULD'VE TANKED OUR BOND.
AND SO INSTEAD OF USING BOND MONEY, WE ENDED UP USING COP MONEY, WHICH HAS SOME BAD PROBLEMS BECAUSE IT PAID OUTTA THE GENERAL FUND, BUT IT WAS A WAY TO MAKE SURE WE PASS THE BOND.
SO THESE FINANCING CORPS HAVE VERY, VERY GOOD IDEA.
[00:05:02]
ARE REALLY PROBLEMATIC, BUT THIS IS NOT THE CLPS THEMSELVES.THE CLPS ARE PAID OUTTA GENERAL FUND, AND YOU HAVE VOTED RECENTLY TO BRING IT DOWN IN HALF SO THAT YOU'RE NOT SUCKING MONEY OUTTA CURRICULUM INSTRUCTION AND EMPLOYEES SALARIES, UH, TO PAY BACK BOND.
WE HAVE $9 BILLION PLUS THE STATE BONDS, WHICH WE HAVE STILL HAD NOT ANY EXPLANATION ON PROPOSITION TWO AND FOUR, WHICH NORMALLY WOULD BE ANOTHER BILLION DOLLARS FOR GREENING ON MEASURE FOUR AND ANOTHER BILLION DOLLARS FOR CONSTRUCTION.
MAY I RECORD YOUR VOTES? SO FOR THE APPROVAL OF THE PRIOR MINUTES? YES, THAT'S, YES.
AND FOR APPROVAL OF THE BOARD OF DIRECTORS? YES.
AND HAVING NO MORE PUBLIC COMMENT, UM, SHALL WE ADJOURN THE MEETING? YES.