Minutes 1993 0524 - Laserfiche WebLink

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Minutes - San Leandro City Council Meeting - May 24, 1993 Page - 3 - NEW BUSINESS (continued) He said a Public Hearing is required by State law for any bonded indebtedness. Mr. Jermanis said he would go through each of the documents in the Agenda. He noted several minor corrections. He said this evening was the culmination of many months of putting together a program that provides financing for a number of projects at the lowest cost. He said the Disaster Preparedness Committee looked at all the issues of seismic work and evaluated the City's essential buildings. Mr. Jermanis displayed an exhibit listing the City' s essential buildings and estimated costs for retrofit. He said retrofit of the City's fire stations would cost approximately $1 ,575,000, which will be provided for in the bond issue. He said the next priority is the Public Safety Building, then the Public Works Service Center which houses the Emergency Operations Center, followed by City Hall itself. He said City Hall represents the greatest amount of seismic retrofit work at just over $5 million. He said the next priority would be the Library at $1 .8 million, followed by lower-rated but still critical buildings, including the Public Works shops and garage and the South Offices. He said the North Offices Addition, costing approximately $5,415,000, would serve as a swing space while the Public Safety Building and City Hall are retrofitted. He said this was determined to be the most cost-effective method for doing this work, rather than temporary renting and relocation. Mr. Jermanis said all the buildings together will cost $18, 194,000, which is the amount of construction financing the City is seeking to maintain through bonds. He said the bonds will be split between the Redevelopment Agency, at just under $7 million, and the City, at approximately $11 million. He said the Agency will pay its existing debt and provide financing for City Hall . He said the annual debt service will be split between the Agency and City. He said this will transfer the Agency debt from the City to the bond holders and will protect the Redevelopment Agency funds from the State. He said, in order to do so, the funds must be used for an eligible capital project, and the North Offices meet this criteria. He said the City's obligation would be a new debt and is included in the long-term-budget financial strategies at $880,000 per year. Council Member Myers asked if, when everything is done, the Redevelopment Agency will have a bond issue and bond holders. Mr. Jermanis said the Agency would still have a residual amount and would still owe the City $2.5 million. He said the vast majority of the Agency's debt will be bond debt. Council Member Myers asked if the City's obligation will be Certificates of Participation (COP's) . Mr. Jermanis said the City will issue its own COP's to provide for the retrofit of City Hall . He said the Public Financing Authority (PFA) will be selling bonds to acquire the Civic Center Complex,