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MINUTES Page 7 City of San Leandro City Council and San Leandro Redevelopment Agency Joint Meeting-April 18, 2005 System (CAD/RMS) Replacement Project, Police Laptops, and Phone System Hardware (approves a lease/purchase agreement for the Police Department's CAD/RMS replacement project). (3051) Councilmember Nardine asked whether the interest rate was fixed or variable and asked for clarification on the substitution of the telephone system replacement hardware for the project soft costs. Mr. Jermanis stated that the interest rate is fixed, and Finance Director Jesse Baloca was able to arrange a funding source through Bank of America that the City would be able to use to purchase the necessary equipment for the project. The soft costs cannot be financed through this particular method, so staff is proposing to use reserves which have been set aside to purchase hardware to instead pay the soft costs and finance the hardware purchases. Councilmember Nardine asked when the reserves will be available for the soft costs. Mr. Jermanis indicated that the reserves which will fund the soft costs will come from the depreciation of the equipment that is being purchased. Councilmember Grant asked if this item was reviewed by the Finance Committee. Mr. Jermanis stated that the financing mechanism was not reviewed by the Finance Committee, but was discussed with the Rules and Communications Committee. He noted the greater cost-effectiveness of doing a lease/purchase rather than bond financing for this project. Councilmember Grant commented that she would have liked to see a cost-benefit analysis of the various financing methods and rates and stated that she would have felt more confident about the recommendation had the Finance Committee reviewed it first. Mr. J ermanis indicated that the City has used this method of financing for major projects in the past and pointed out that it is more cost effective for short-term financing and for relatively small dollar amounts such as for this project. Mr. Jermanis noted that in the future, staff will ensure that the Finance Committee reviews these types of financial matters. Councilmember Stephens expressed appreciation for the very favorable interest rates that have been secured. M/S/C Badger and Grant. Ayes: 7; Noes: 0 10. ACTION ITEMS Public comments are limited to 3 minutes per speaker per item, subject to adjustment by the Mayor. A. Minute Order No. 2005-018, Matter of Nominations of Board and Commission Members (District 4). Public Comments on Item 10.A.: Lou Filipovich, San Leandro resident, addressed the City Council regarding the recent District 4 election which was an at-large election.