HomeMy WebLinkAbout6/1/2006 Minutes - Regular MeetingCITY OF DIAMOND BAR
CITY COUNCIL SPECIAL MEETING
JUNE 1, 2006
STUDY SESSION: Mayor Herrera called the Special Meeting to
order at 11:04 a.m. in Room CC -2 of the South Coast Air Quality Management
District/Govemment Center, 21865 Copley Dr., Diamond Bar, California and led
the Pledge of Allegiance.
Present: Council Members Tanaka, Tye, Mayor Pro
Tem Zirbes and Mayor Herrera. Council Member Chang arrived at 11:10 a.m.
Also Present: Linda Lowry, City Manager; David Doyle,
Assistant City Manager; Greg Kovacevich, Assistant City Attorney; David Liu,
Public Works Director; Nancy Fong, Interim Community Development Director;
Kim Crews, Human Resources Manager; Ken Desforges, IS Director; Ryan
McLean, Senior Management Analyst; Marsha Roa, Public Information Manager,
and Tommye Cribbins, City Clerk.
CM/Lowry explained that today's Special City Council meeting was convened in
compliance with Government Code §54956 setting forth what would be the
subject matter and appropriate noticing requirements for a special meeting that
requires a 24- hour notice. Notices were publicly posted before 11:00 a.m. on
May 31; general distribution was notified prior to 11:00 a.m. on May 31; City
Council Members were: notified prior to 11:00 a.m. on May 31 and other
individual notifications were made via email.
PUBLIC COMMENTS:
Lydia Plunk, 1522 Deerfoot, registered her objection to today's meeting
which she termed an "emergency' meeting disallowed under the Brown
Act. She felt it particularly disconcerting that this Council with its fine
record would give 24-hour notice of a weekday meeting to act on a matter
that involved taxing the citizens. This matter should be discussed in full
public view. She spoke about the costs involved in building, stocking and
maintaining a new library and said she believed people should not be
exempted from the tax by category because a new library would benefit
the entire community. She felt that today's meeting was contrary to the
fair judicial procedure D.B. had established.
Alan Wilson said he was very disappointed that the Council had declared
a special meeting and felt that the public was not given sufficient
notification. He felt the City Council should be reprimanded for levying a
tax on the people without due notification.
M/Herrera explained that today's meeting was not an emergency meeting
but a fact-finding meeting for staff. During the last City Council meeting
the members voted to place an item on the November ballot so that the
citizens could vote yes or no whether they wished to pay for building a
JUNE 1, 2006 PAGE 2 CC SPECIAL MEETING
new library. Because there are a number of items that must be decided
by the Council, staff has a limited amount of time to gather information to
produce a ballot that specifically tells the residents the amount of parcel
tax that would be levied on properties in the City to pay for the new facility
and ongoing maintenance. The meeting was scheduled during the day
because it is staff's usual work time and they are seeking input from the
Council in order to proceed with their responsibilities.
MlHerrera stated in response to Mrs. Plunk, that today's meeting is not an
emergency meeting.
MlHerrera asked that the record reflect C/Chang's arrival at 11:10 a.m.
2. DISCUSSION OF ITEMS RELATING TO ULTIMATE PREPARATION OF
A RESOLUTION OF INTENTION TO PLACE A LIBRARY COMMUNITY
FACILITIES DISTRICT ON THE NOVEMBER BALLOT.
CM/Lowry stated that when staff received direction from Council at its last
Council meeting to bring back information and prepare the process for
placing the library ballot measure on the November ballot, staff
immediately called in the consultants that the City had used earlier in the
year to talk about creation of a CFD. Due to the 30 -day window between
resolutions, time is of the essence for staff and the consultants to gather
information and begin working on the necessary financing tabulations and
ballot language. In addition, the City must establish its place on the ballot
with the County. If there is no space available on the ballot, the item will
not be included, even if the City meets its timing requirements. The
criteria for placing the item on the November ballot is that the City must
meet the legal requirements of the waiting period between the resolutions
and getting the measure to the County Registrar's office in time to secure
a spot on the ballot.
CM/Lowry said it was important to get the Council's input immediately so
that the staff and consultants could begin to resolve the funding criteria
and whether it was appropriate to have a Community Facilities District
(CFD) rather than a parcel tax. Staff wants to make certain that the City
Council fully understands and supports every single word that will
ultimately be included in the ballot measure. The consultants are present
for today's meeting to gather information from Council on how to proceed
to simply prepare discussion items to be considered for the resolution.
There is no formal resolution to be considered during today's meeting.
AGM/Doyle introduced the consulting team and stated that there were a
number of decision points that needed direction from Council today in
order to craft Resolution of Intent language for Council's consideration at a
future regularly scheduled meeting in the form of a Resolution of Intent.
He explained that this project began with the State Bond Act application
JUNE 1, 2006
PAGE 3 CC SPECIAL MEETING
for a 24,000 sq. ft. facility that was not funded. Subsequently, surveys
were conducted in an attempt to understand the community's level of
support for a bond issuance. When the Bond Act proposal was submitted
in 2002 the project was deemed to cost about $10 million.
Last year the cost to construct the facility increased to about $13.5 million.
The first consideration is whether the Council wishes to move forward with
the originally conceived 24,000 sq. ft. facility. The second direction is that
Council publicly indicated a $13.5 million cost estimate last year and the
actual cost for a 24,000 sq. ft. facility may have increased another $1
million by the time the facility is constructed. According to estimates
based on the State's formula the cost to build was $227 per sq. ft. The
recently opened Newport Beach Library had a cost of $366 per sq. ft. So
Council needs to decide whether it wants to build a 24,000 sq. ft. facility
and issue bonds for that facility at the anticipated cost for a 2009 opening
date or, scale the facility back to a size that would support the previously
discussed $13.5 million project.
ACM/Doyle further stated that another consideration is the ongoing and
increased operating costs. The agreement with Los Angeles County
called for the County to operate the new D.B. library for about $260,000
with the City paying the remaining amount for a total of about $400,000 in
additional annual operating and maintenance costs. The County typically
adjusts their costs, upward at about five percent annually. In summary, the
County anticipated the baseline cost for running the new facility at about
$1.4 million assuming nothing changes. Therefore, assuming the
County's original agreement and building in escalators the additional costs
over the $1.4 million baseline amount would likely amount to an additional
$500,000 versus the original anticipated $400,000 amount. The out-of-
pocket expenses would be the difference between the increased revenue
from the County's general property tax assessment and the additional
operating costs of about $474,000. The Council previously discussed
whether it would pay 100 percent of the additional costs, have the
community pay 100 percent of the operating costs or whether the City
would participate with the community on a 50150 basis. At that time the
anticipated additional operating costs would be about $400,000.
ACM/Doyle pointed out that the operating costs in 2009 could be
$500,000. Staff its seeking direction from the Council as to whether the
City will pay 50 percent of the increased operating costs; operating costs
will be borne in whole by the community; or whether there is another
scenario the Council would like to consider.
Chris Fischer of Munifinancial stated that in order to get a measure on the
November 7 ballot the information must be submitted to the County by
August 10. In order to have that information submitted to the County, the
City must have passed a "Resolution of Formation" to form the CFD and
JUNE 1, 2006 PAGE 4 CC SPECIAL MEETING
the next Council meeting prior to that is August 1 and prior to that Council
meeting and between 30 and 60 days prior to that meeting the City must
pass the "Resolution of Intention." Therefore, according to the timeline
June is the latest possible start time for this process and the reason for the
urgency in moving forward with the process. The Resolution of Intention
is when staff comes before Council to state its intention to form a
Community Facilities District (CFD) and that Resolution of Intention will
include a description of the District as well as diagrams indicating the
boundaries of the District. The resolution includes a document called "The
Rates and Method of Apportionment" which spells out how the special tax
is going to be allocated or spread or applied to properties within the
boundaries of the Community Facilities District and sets the time and
place for a public hearing. The law requires that no fewer than 30 days
and no more than 60 days may elapse between adoption of the Resolution
of Formation and the public hearing to form the District. At the public
hearing meeting Council will adopt the Resolution of Formation, which
officially forms the District and establishes the boundaries of the CFD.
Council also adopts what is called a Community Facilities District or
special tax report, which creates a little bit more narrative describing the
need, describing the facilities that are going to be financed, describing the
maintenance that will be financed by the tax and finally, the Council will at
that time call for an election to be held in November 2006. At that point
the Mello -Roos or Community Facilities District requires that the City have
the election no fewer than 90 and no longer than 180 days from the time
the Resolution of Formation is adopted.
Emad Mirgoli from Stone and Youngberg stated that the Resolution of
Intention that Council adopts is essentially made up of two or three
different resolutions: First there is the Resolution of Intention which
informs the public of the City's intent to establish the District. Next there is
the Resolution of Necessity which states why the City needs to incur
bonded indebtedness and indicates a public hearing will be held no less
than 30 days from the adoption of the Resolution of Intent to declare the
City needs to issue bonds in order to finance these facilities. The Mello -
Roos Act requires that prior to the adoption of initiating the proceedings to
form a District, cities must adopt goals and policies for Community Facility
Districts. On the night of the public hearing two resolutions will be
adopted. One is the Resolution of Formation the second is a Resolution
of Necessity. Upon adoption of these two resolutions, the City Council
should adopt a resolution calling for the City to have a special election in
November 2006 to authorize the levy of the tax, finance not only the
facilities but also ongoing operation maintenance costs for the District.
Mr. Fischer said that in order to start the process the Resolution of
Intention and the rate and methods of apportionment (RMA) for the special
tax would be formulated. All of the calculation and work must be done
before that first meeting so that when the Resolution of Intention is
n
1
JUNE 1, 2006
PAGE 5 CC SPECIAL MEETING
brought to the Council, the RMA work must be done. Once the Resolution
of Intention is adopted there is little ability to change the RMA and it not
recommended. His firm ran some very basic numbers using some very
basic assumptions, in terms of interest rates, costs of the facilities and how
much the City would want to raise the maintenance project. At this point
he needs direction on the Council's comfort level with respect to the tax
rate. Once that is determined he would be able to build a more thorough
analysis in the tax; rate structure to fit the Council's direction. There are
two components: Construction of the facility itself (the capital cost of
building a library) and, the ongoing operation and maintenance, which will
occur on an annual basis throughout the life of the library. For discussion
purposes his firm assumed three different construction proceeds analysis:
$10 million, $13 million and $15 million. With a $10 million bond issue or
$10 million bond proceeds analysis, the actual bond issue would probably
be about $1.5 to $2 million dollars higher factoring in all of the hard costs
of doing the bond issuance (cost of issuance) including the cost of the
underwriter and bond counsel, engineering work and whatever other work
is required to do that bond issuance, setting up a reserve fund, capitalized
interest, etc. To net $10 million in proceeds the basic single-family rate
would be $61 per year. Adding to that the cost of the operation and
maintenance at an estimated amount of about $400,000 a year the tax
would be $83.50 per year per single-family residence. $600,000 a year in
operation and maintenance would increase the tax to $94.75 per
residence.
Mr. Fischer responded to M/Herrera that the $400,000 was added in on
the assumption that the residents would pay 100 percent of the
maintenance.
Mr. Fischer responded to MPTIZirbes that the assessment for the
$400,000 would be $22.50 per parcel and $33.75 per parcel for $600,000.
Mr. Mirgoli said he works with Stone and Younberg a firm that underwrites
bonds for the State of California. His firm does a number of CFDs in the
State and the reason he came to today's meeting was to answer
questions about what the bond investor community looks for and the
coverage ratios they look for. Usually, investors want 110% coverage for
the debt service so the proposed 116% would be a bit more than the
required minimum coverage. The coverage number is predicated on the
City's credit rating and depends on the structure of the RMA and who pays
the taxes that has an affect on what ratio would be required.
Brian Forbath said that essentially, the Council would set the maximum
amount that parcels could be taxed. The taxes could be lower but could
never be higher than the maximum approved levy.
JUNE 1, 2006
PAGE 6 CC SPECIAL MEETING
MPT/Zirbes was concerned that costs would continue to increase and that
in 10 years for example, the operating costs could reach $1 million per
year. Mr. Fischer agreed and emphasized that it was very important that
the people who were going to pay the tax understand that possibility at the
time of the election.
ACM/Doyle pointed out that there would be two assessments — the 30 -
year construction cost assessment and the assessment for ongoing
operation and maintenance that would continue after the construction
bond was satisfied. He encouraged the Council to consider building in
some type of CPI adjustment to create an increase mechanism that would
keep pace with inflation.
Mr. Fischer reported that the anticipated construction assessments would
be as follows assuming a net $13 million bond issue: The base single-
family rate for the construction portion is $76. Adding on the $22.50 and
the $33.75 for the $400,000 and $600,000 scenarios the levy would
increase to $98.50 for the $400,000 annual maintenance and $109.75 for
the $600,000 annual maintenance amount. For a $15 million net
construction proceed the amounts go to $89 base for construction and
$111.50 for $400,000 of annual maintenance and $122.75 for $600,000 of
annual maintenance. The range of possible assessments is $61 for net
$10 million construction funds only up to $122.75 for net $15 million
construction and 100% of $600,000 of operation and maintenance.
Mr. Fischer responded to MPT/Zirbes that the table was based on the
following: Hotel/Motel - $41.01 per structure, mobile home park $44.43
per mobile home, condominium units, per unit and, retail office $55.03 per
building.
At the request of MPT/Zirbes, Mr. Fischer explained the difference
between a parcel tax and a CFD. Mr. Fischer said that generally, the two
were very similar. A CFD allowed for more flexibility. A parcel tax is really
a flat tax mechanism to tax all parcels in the City. A CFD offers the same
tax ability but provides flexibility to assess different types of property at
different rates. The CFD law was actually created for this type of project.
The name of the law is Community Facilities District and that is precisely
what the City intends to finance in this instance, a community facility. And
it creates a mechanism that is really better suited for financing this type of
facility and then bonds for it.
Mr. Forbath explained that the hang
no legal authority in the provisions
pledge that parcel tax to a bond deal.
up with the parcel tax is that there is
for parcel taxes that allow cities to
C/Tye stated his understanding that cities could raise the tax, impose the
tax and spend it on something other than what the public voted on.
JUNE 1, 2006 PAGE 7 CC SPECIAL MEETING
Mr. Forbath responded no. Cities could spend the tax annually for what it
was intended.
ACM/Doyle clarified that the tax could be repealed and the City would still
have the debt because the indebtedness would not be bonded.
Mr. Forbath said that in short, the biggest concern about the parcel tax
was the question of legal authority.
Mr. Fischer stated the ballot measure required a two-thirds special vote for
approval. There are a few more administrative steps, the Resolution of
Intention, the Resolution of Formation and the others and these are more
of a process than what a parcel tax would be. They are similar in nature in
that both are taxes passed for specific purposes. They're both special
taxes. The money can only be spent on what it was intended for; there
are accountability provisions in the Mello -Roos Code that requires the City
to annually disclose what monies were collected and how it was spent and
to provide the status of construction. The special purposes tax money
cannot be spent on anything else.
Mr. Mirgoli added that there is a relationship between how the money is
distributed to pay the tax, what types of properties are paying the tax, and
how the bond investors perceive that credit. It may not be an issue but
could be considered due to the wide diversity of types of parcels.
Investors could view that negatively and it could have an impact on the
City's borrowing rate.
MPTIZirbes asked if the bond could be paid down with the excess funds if
the project came in under budget by lowering the term of the loan or
lowering the annual cost to the residents.
Mr. Fischer responded that it would most likely be applied to lower the
annual costs.
ACM/Doyle asked the consultants to comment on a special
exemption/potential rebate program for lower income status residents.
Mr. Forbath stated that essentially, the special tax that the Council would
be imposing was a tax on property and blind to whether residents were
low income or high income. He said he discussed this issue with the City
Attorney and they were comfortable with the City providing some sort of
rebate program that the City would be responsible for administering.
They felt that if the "rebate" were to come out of the special taxes that
were paid, it would still be a backdoor method of taxing folks differently.
ACM/Doyle asked Council to focus on direction to the consultants so that
they could prepare the resolutions for the June 20 Council meeting. He
JUNE 1, 2006
PAGE 8 CC SPECIAL MEETING
estimated that if the ballot passed on November 7 a tentative timeline
would be as follows: The City would develop an RFP for design services;
thereafter the Council would be getting proposals from architects,
developing a process to select an architect, interviewing, reviewing
projects, reaching a determination regarding the final architect, award of
contract sometime in February with the design process taking about nine
months to a year beginning about February, getting insurance documents
in place, etc. to gear it up. A tight timeline we would be October for the
design, out to bid October, November, December, award of contract late
January followed by commencement of construction. The construction
period takes basically for 12, 14, 16 months with a possible opening date
set for around April 2009.
MPT/Zirbes said he was concerned about escalating costs and asked if
the Council could cap the amount of the City's annual contribution toward
additional ongoing operation and maintenance.
Mr. Fischer responded affirmatively and stated that the CFD was
independent of what the City decided with respect to its contribution. The
tax rate is predicated on the amount needed to debt service the bond and
support the level of maintenance provided by the CFD. The City's
agreement or pledge would supplement that issue.
He responded to ACM/Doyle that the City must establish a maximum tax,
that it cannot be an open-ended tax. The City could set the maximum tax
rate high and in reality never reach that amount.
Mr, Forbath explained that the annual tax levy would be based on the
difference between the City's contribution and the amount needed to
satisfy the debt.
Mr. Fischer stated that each year the City Council sets a special tax
requirement to finance debt service and finance services, etc. That
amount can never exceed the maximum tax rate but can always be lower.
MPTIZirbes said that if the City set its maximum contribution at $400,000 it
would not be sufficient to pay for '09. In years 2015 and 2020 the amount
could increase to $1.5 million.
Mr. Fischer suggested the document could include a 2 or 4 percent CPI
for succeeding years. The original amount could be set at $400,000 or
$500,000 with automatic escalators built in.
Mr. Forbath confirmed to M/Herrera that the tax was levied on properties
and not on individuals so no group of individuals could be exempted.
JUNE 1, 2006
PAGE 9 CC SPECIAL MEETING
CMILowry asked for discussion regarding the amount the Council would
like to invest for a new library.
ACM/Doyle stated in response to MPT/Zirbes that in accordance with the
projected timeline for construction the estimated cost to construct the
24,000 sq. ft. library would be about $14.5 million.
C/Tanaka suggested the Council consider reducing the square footage
from 24,000 to 22,000.
CM/Lowry asked if the collection cost could be included in the construction
cost or whether that would be part of the operations and maintenance.
C/Tye thought the collection costs were included in the $15 million cost
estimate.
ACM/Doyle responded that the collection cost was not included and he
recalled that in discussions with the County it would cost another $1
million to increase the size of the collection to accommodate the new
structure. The collection costs could probably be included in the
operations and maintenance assessment but not in the construction
assessment.
Mr. Forbath explained that if the library did not open until 2009 the
proceeds from 2007 and 2008 could be levied and used for collections
even though no operations costs had yet occurred.
Mr. Fischer responded to ACM/Doyle that assuming the vote passes in
November and the ordinance is enacted to levy the tax it would be levied
the following August and the money would be available to the County late
December with the proceeds to the City in January.
CM/Lowry asked if by using the first two and one-half year's operations
and maintenance levies for the collection, would that kind of information
would be something that we would include in our ballot language?
Mr. Forbath responded to CM/Lowry that the maintenance tax report
would define the use of the maintenance tax.
In response to CIN/Lowry's concern that the ballot would define the use
Mr. Forbath responded that the ballot is limited to 75 words and everything
of substance should be included in the language.
CM/Lowry advised Council and staff that it should be cognizant of the 75 -
word limitation and the need to incorporate substantive language.
JUNE 1, 2006 PAGE 10 CC SPECIAL MEETING
Mr. Forbath said that the story box on the ballot would contain arguments
for and against, that it would include a impartial analysis prepared by the
City Attorney and there would be a summary of the ballot provisions to the
extent that the county allowed C/Tanaka asked if the County would
automatically increase the book collection.
ACM/Doyle responded that during sessions with the County the City
indicated it was looking for about $1 million to increase the collection.
Each year the County (Diamond Bar Library) has $11,000 and $12,000
that they get toward collection.
ACM/Doyle responded to MPT/Zirbes that a cost analysis revealed little
cost difference to the City between the County and LSI operating the
library. In terms of staffing we have a staffing level that the County has a
commitment to provide to us and we are actually buying additional
services and personnel from the County, we are not necessarily at their
mercy.
CM/Lowry said that staff had been unable to establish a value of the
existing library building as an offset to the new investment and staff was
never been able to get a commitment from the County or anything about
what that kind of offset might be for the existing site. Basically, the City
would be replacing the current facility and it could be argued that the
County owes the City for a facility that is no longer contributing value to
the City.
ACM/Doyle stated that during initial discussions with the County the City
wanted to wait to see what happened with the Bond Act. One option was
that the facility would be made available for some other public use or it
could be sold with the proceeds being used for operations and
maintenance costs, collections, and so forth for the new facility.
C/Tye felt such discussions were irrelevant because it was the County's
building and they could knock the wall down and make it part of the
firehouse.
ACM/Doyle explained that could not happen because the Fire Department
would actually have to pay the County Library. The citizens of D.B. paid
for the property theoretically it belonged to the people. Even if the Fire
Department wanted the building, although they have indicated they have
no desire to have the building, the Fire Department would actually have to
pay the value of that building to the LA County Department of Library
Services.
C/Chang said he believed that if that property were being held for any
other purpose the City of D.B. would get the larger portion of the property
proceeds. But before giving direction to the staff Council would probably
JUNE 1, 2006 PAGE 11 CC SPECIAL MEETING
need to know what kind of impact the exemptions would have on the new
project.
ACM/Doyle said that without input from the County he would not be able
to provide that information.
MPT/Zirbes continued the discussion about a how a potential rebate
program might work and be administered.
ACM/Doyle said that staff would need a couple of weeks to gather the
information for Council to make its decision.
MPTIZirbes suggested the City might make a contribution toward the
operating costs of $100,000 or $150,000 a year and absorb the rebates.
ACM/Doyle responded to M/Herrera that the approximate $1 million to
purchase tables and chairs was included under Furniture, f=ixtures and
Equipment in the construction budget.
ACM/Doyle asked Council if it wanted to proceed with the 24,000 sq. ft.
facility scenario. Council concurred that they did.
ACM/Doyle asked if the City was contributing $3 million toward the project
as previously discussed.
C/Chang recommended increasing the City's contribution to $4 million.
MPT/Zirbes said he responded C/Chang's recommendation but felt that
the City could contribute more down the road once the actual costs were
known. He said he was especially concerned about the City having to find
more and more dollars to pay for ongoing operation and maintenance of
the facility and that other essential services might have to be cut back. If
the City wished to contribute additional money perhaps it could be toward
the collection.
C/Tanaka said he preferred to stay within the $10 million budget and scale
back on the size and aesthetics of the facility.
MPT/Zirbes felt the City should move forward with the original 24,000 sq.
ft. facility and let the people decide. He thought it would be best to show
the community that the City was making its best effort to save its money.
If the people feel that a levy of $67 for the construction and $22 for
additional operations and maintenance is too much of a burden they will
make that decision.
C/Chang reiterated his recommendation that the City bond for $10 or $11
million for construction.
JUNE 1, 2006
PAGE 12 CC SPECIAL MEETING
Mr. Forbath explained to M/Herrera that in order to obtain $10 million in
proceeds the City would have to bond for about $12.5 million.
MlHerrera asked if that would increase the payback.
ACM/Doyle explained that the $61 figure included the bond payback for
construction.
C/Tye said he was more inclined to agree with Mr. Chang about
increasing the City's commitment on the flat amount from $3 million to $4
million or $4.4 million. However, he was not at all interested in sharing the
cost of the increased operation because it was not a fixed amount. He
reminded Council that other cities had declined toward bankruptcy and he
wanted D.B. to continue on its fiscally responsible path.
M/Herrera asked if the Council wanted to go with a $10 million $13 million
or a $15 million bond.
C/Tye said he would recommend going with the highest amount and build
a building that would compare with the community center. He believed by
doing so there were ways to increase use of both buildings.
MPT/Zirbes moved to have the City contribute $4 million up front toward
the construction, go out for a $11 million net construction bond with any
leftover funds used to reduce the loan; that the City go out with the 100
percent of the estimated $500,000 operating costs with CPI built in
(approximately $28 per month per parcel) to be borne by the voters; the
City will administer and pay rebates to seniors and low to moderate
income (as the program is defined) and that the Council consider, on an
annual basis, some type of a contribution toward the operating costs if the
City can afford to do so. C/Chang seconded the motion. Motion carried
by the following Roll Call vote:
AYES: COUNCIL MEMBERS: Chang, Tanaka, Tye,
MPT/Zirbes, MlHerrera
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ACM/Doyle asked Council to comment on the assessment worksheet.
Discussion ensued.
CM/Lowry summarized that at this point the City is looking at building a
$15 million library.
MPT/Zirbes and C/Chang said they would like a $15 million dollar library
to be built for $14 million.
JUNE 1, 2006 PAGE 13 CC SPECIAL MEETING
Mr. Forbath explained that once the construction bids were in, the bond
could be issued for the correct amount rather than paying it down after the
fact. However, if it happens that the estimates were way over and there
was an extra million left over after construction the City could use it to pay
down the debt.
ACA/Kovacevich clarified the motion was to direct staff to bring back
resolutions for future consideration.
C/Chang said he believed that no one had pre -planned this meeting and
wanted to assure! everyone that the comments that were made this
afternoon and the discussion that Council conducted was very civilized
and there was no heated debate. All Council Members were working for
the best interest of the people as responsibly as possible and there was
nothing said that was out of line. All of the Council Members are
concerned about providing the best information to the people and letting
them make the decision.
ADJOURNMENT: With no further business to come before the City
Council, M/Herrera adjourned the Study Session at 1:00 p.m.
J
Tommye Cnbbins, City Clerk
The foregoing minutes are hereby approved this 20th day of June ,
2006.
5A0�4VIel'—
CAROL HER ERA, Mayor
1