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Minutes - San Leandro City Council Meeting - May 24, 1993 Page - 6 - NEW BUSINESS (continued) Council Member Polvorosa asked what agency would hold the reserve funds and if the State could tap them. Mr. Jermanis said the funds would be part of the bond issue itself and under control of the Trustee. He said the Parking Authority Reserve will be under the City Council 's control and not available to the State. Council Member Faria asked if there were still ten years to go on the Parking Authority bonds. Mr. Jermanis said this was correct. He said the total outstanding debt is $2,750,000, down from $3.4 million. He said there is nearly enough to pay it off and, under most circumstances, it would be advantageous to the General Fund to do so. He said, however, this financing opportunity allows the City to borrow money at an overall issuance cost such that the interest rate will be a little under 6%. He said the City will hold the $2.5 million in Reserves; and he can invest it, which is a wise move to conserve resources. Council Member Corbett said she knew there have been attempts to contact people in the north block but said she has heard there may be some tenants who are not aware of the proposed acquisition. Mike Oliver, City Manager, said staff has been working with them for a good deal of time, and he would be glad to talk with them. Council Member Myers asked why a Public Hearing was not being held on Items A and B on the Agenda. Steve Meyers, City Attorney, said a Hearing is legally required only for Resolution 6.A. , not for the other items. Mayor Karp asked if the existing Parking Authority bonds were coupon bonds or registered. Mr. Jermanis said they are bearer bonds. . The following Resolutions were then introduced: A. Resolution No. 93-100, Resolution Authorizing Formation of a Joint Powers Authority with the Redevelopment Agency of . the City of San Leandro (creates the San Leandro Public Financing Authority by the City and the San Leandro Redevelopment Agency for the purpose of financing costs related to the acquisition and improvement of property through a single entity in order to eliminate duplication of effort, inefficiencies in administration, and excessive cost by acting separately) . (2739/2735) Introduced by Council Member Kerr, who moved its adoption, seconded by Council Member Faria, and carried by the following called vote: AYES: Council Members Corbett, Faria, Kerr, Myers, Perry, Polvorosa; Mayor Karp ( 7 ) NOES: None ( 0 ) ABSENT: None ( 0 ')