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CITY COUNCIL FINANCE COMMITTEE October 21, 2008 4:00 p.m. - 5:30 p.m. San Leandro City Hall 835 East 14th Street San Leandro, California (Sister Cities Gallery) HIGHLIGHTS Committee Members: Mayor Santos, Councilmember Grant (Chair), Councilmember Gregory City Staff Present: Interim City Manager Hollister, Interim Assistant City Manager Diaz, Interim Finance Director Carter, Housing-CDBG Manager Liao, Budget & Compliance Manager Perini, and Administrative Assistant III Perez Public Present: Diana Souza, Gordon Galvan, and Rose Padilla Johnson The meeting was called to order at 4:01 p.m. 1. Presentation by Davis Street Family Resource Center Interim City Manager Hollister introduced Davis Street Resource Center's Board of Director, Gordon Galvan and Executive Director, Rose Padilla Johnson to the Committee. Galvan presented the Committee with information regarding the cost to purchase the building that is currently occupied vs. the cost to lease. Rose Padilla stated that although every year she negotiates the cost of the rent with the landlords, of rent continues to steadily increase. Currently 60% of the money that is raised by Davis Street Resource goes towards payment of the rent. Galvan stated that the cost to purchase the property located on Teagarden would be $3.5 million. Of that cost, Davis Street Resource is asking the City of San Leandro to contribute $1.5 million, leaving $2.0 million to be raised through fundraising and grants. Galvan stated that prior to his retirement, former City Manager John Jermanis was working with Davis Street Resource, along with Alameda County Supervisor Alice Lai-Bitker, on this issue. Councilmember Michael Gregory asked about the time constraints. Padilla stated that she had informed the landlords of the desire to purchase the property and therefore negotiated a lower rent through December 2008. This would allow time for Davis Street Resource to raise money for the purchase of the property. Understanding that the City needs time to take this issue to Council, Padilla stated that she is certain the landlords will continue with the lower rent as long as there is a commitment from the Davis Street and the City. Hollister explained the restrictions, uses, and availability of CDBG funds. Currently the City anticipates a net of $500,000/annually for city-wide uses including infrastructure, housing the senior center, and community projects. The City is also limited in the amount of Sec. 108 1