Laserfiche WebLink
CITY COUNCIL FINANCE COMMITTEE <br />November 17, 2009 <br />4:00 p.m. - 5:30 p.m. <br />San Leandro City Hall <br />835 East 14th Street <br />San Leandro, California <br />(Sister Cities Gallery) <br />HIGHLIGHTS <br />Committee Members: Mayor Santos, Councilmember Prola <br />City Staff Present: City Manager Hollister, Assistant to the City Manager Diaz, Interim <br />Finance Director Carter, Community Development Director Sims, Police <br />Chief Willis, Human Resources Director Caire, Business Development <br />Manager Battenberg, Deputy Finance Director Rodriguez, Budget & <br />Compliance Manager Perini, CDBG Manager Liao, Accountant II Galvin, <br />Administrative Assistant III Perez <br />Public Present: None <br />The meeting was called to order at 4:04 p.m. <br />1. Discussion Regarding Financing for Alameda at San Leandro Crossings <br />Interim Finance Director Carter provided the Committee with an overview of the $9.1 million <br />loan commitment for the Alameda at San Leandro Crossings Housing Project as approved by <br />City Council in Apri12009. Carter stated that at his time, the Redevelopment Agency of the City <br />of San Leandro (RDA) is seeking approval from the Committee to approach Council on issuing <br />Tax Allocation Bonds (TABS) for the financing of this loan. Carter explained that the bonds <br />will be repaid over a 15 year period and as a result of the bonds being taxable, the interest rate, <br />paid by the RDA, will be approximately 7.7% to 8%. There is also a Contingency Plan. If the <br />RDA is unable to complete the process of issuing the TABS, the City is will provide the RDA <br />with a 90 day bridge loan that will be made from the Water Pollution Control Plant Fund <br />(WPCP) and the interest paid would be at the City's investment portfolio rate. The short-term <br />loan will not negatively impact the WPCP. <br />Mayor Santos requested further information from staff and would like to see different scenarios <br />brought back to the Committee. Councilmember Prola agreed and asked why the RDA couldn't <br />take the loan from the WPCP directly without seeking any TABS. Mayor Santos would like to <br />know what the feasibility, legality, and the exact interest rate would be by utilizing funds from <br />the WPCP. City Manager Hollister stated that if there was an internal loan, the payback period <br />would be shorter. Staff will return to the Finance Committee with answers to their questions in <br />December. <br />1 <br />