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Minutes - San Leandro City Council Meeting - May 24, 1993 Page - 4 - NEW BUSINESS (continued) and the City will be transferring title of the Complex by selling them to the PFA. He said the COP's will be annual lease payments that the City will make back to the PFA. He said the trustees will hold funds to make the retrofit. He said the PFA will hold title, lease the Civic Center back to the City, and incur debt to retrofit all the essential City buildings. Council Member Myers asked how the Parking Authority was involved. Mr. Jermanis said. the City already has an obligation through the Parking Authority. He said in 1982 the Authority issued bonds for $3.4 million at 12% interest. He said October 1993 is the first opportunity to call the bonds in, and the City will do so by issuing bonds to cover the retrofit and pay for refinancing the Parking Authority bonds. He said doing so will result in a much lower payment at lower interest rates, saving $100,000 per year for 10 years. He said this will not extend the life of the Parking Authority bonds any further. He said the Agency bonds and the City COP's will have a 30-year term; the Parking Authority bonds will mature in 2003, and the City will save $1 million. Council Member Myers said the Resolution states $9 million in Agency bonds. Mr. Jermanis said it states "not to exceed" $9 million. He said the actual amount will be closer to $7.6 million, but staff will have authority to go up to $9 million. He said some costs have already been paid so he is trying to hold the total down. He said $18.2 million will be the maximum for construction purposes. He said the aggregate bond issue will be closer to $22 million, due to reserves, legal costs, etc. He said annual costs will equal $1 .4 million. Council Member Corbett asked how the Parking Authority debt service works. Mr. Jermanis said it is in addition to the obligation for the essential buildings. Council Member Corbett said the $600,000 did not appear to be a new debt, but the $880,000 was a new debt. Mr. Jermanis said that was correct; he said the City will be issuing $22 million in debt, but the City's obligation over what is currently being paid is only about $11 million. He said the remainder is refinancing an existing debt. Council Member Kerr asked if the City's debt would be in the form of COP's and asked if the Redevelopment Agency's bonded indebtedness would be a COP. Mr. Jermanis said the COP's will be an element of the City's Lease. He said the Agency will use tax allocation bonds, which means pledging the real property tax increment monies to make the bond payment. Council Member Kerr asked if all five fire stations would be retrofit. He said the Task Force recommended closing one fire station. Mr. Jermanis said funding is provided to do all five. He said design work is now being done to make an evaluation of the extent of seismic work that may be needed. He said staff will report to the City Council with this information, at which time alternatives can be explored. He said the use of these bond funds will always remain under the control of the City Council , and staff will always come back to the City Council for authority to disburse funds, such as tonight's Call for Bids. •