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HomeMy WebLinkAboutLIBRARY FACILITIES - Construction - Capital Improvements - E 4 J REQUEST FOR CITY COUNCIL ACTION Date March 25, 1991 Submitted to: Honorable Mayor and City Council Submitted by: Michael T. Uberuaga, City Administrator N>— Prepared by: Ray Silver, Assistant City Administrator e¢ss F} � p �►U V-e l� �`F Subject: Library Expansion Project C(j Coovc�I Consistent with Council Policy? [ ] Yes [ ] New Policy or Exception Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachments: Statement of Issue: Although the entire Library Project is being designed, funding for the project needs to be determined. Recommendations: 1. Approve Option 3 which includes the Huntington Beach Playhouse Theatre. 2. Direct staff to work with Stone & Youngberg to devise a specific financing package- which will be returned to Council for their approval. 3. Direct staff to return with the proposed fees as described to finance Option 3, without requiring General Funds to pay the Bond Debt Service. 4. Direct staff to include in the 1991/92 Budget a Library Service Fund as provided in the Municipal Code. This fund shall be used solely to finance the Library Expansion Option 3, unless specifically authorized by the City Council for other purposes. Analysis- At the February, 1991, Mid-Year Budget Review, Council approved staff's recommendation that the Library Expansion Project be delayed. It was necessary to replace the revenue that would have been earned with the sale of Irby Park land. Staff has reviewed the amount of funds which are presently being used to pay for the 1972 Library Mortgage Lease Revenue Bonds. By refinancing this bond issue, at a lower interest rate and staring a new twenty-five year payback period, the city can increase the amount of debt that the existing committed funds can finance. When this approach is coupled with new and existing revenue sources, as identified in this report, some or all of the Library expansion can go forward. This will occur without requiring any additional revenue from the General Fund or the Capital Improvement Fund. The new revenues will come from increased room rentals at the Library, media use revenues, Community Enrichment Library Fees from known projects, auditoriums and theatre uses, and parking meter installation around the Library. PIO 5/85 y I Page -2- Library Expansion Project March 25, 1991 Based upon the extent to which the city is able to adopt these new fees, staff is providing four options for Council's consideration. They are: 1. Option 1 - Limited Library expansion including the following facilities - Children's programs, circulation area, lobby, Friends Book and & Gift Shop, storytime theater, media computer and technology center, 2 meeting rooms, additional space for books and study space - at a cost of $5,500,000 requiring $2,058,000 in additional funds. 2. Option 2 - All in Option 1, including 3 additional meeting rooms, catering kitchen, 320 seat auditorium, redesign of parking—including 714 spaces, and overlay a vacated section of Talbert Avenue - at a cost of $8,043,000 requiring $4,601,000 in additional funds. 3. Option 3 - All of the above plus the theater. This would provide a location for the Huntington Beach Playhouse, as well as other theatrical dance and musical performances of a community nature - at a cost of $8,468,000 requiring $5,026,000 in additional funds. 4. Option 4 - Postpone until funding available. Funding Source: The cost for the Library appraisal would utilize existing funds dedicated to the Library project, and the remaining construction funds would be generated by the issuance of COP's. The increased debt service cost for the COP's will be funded from increased fees as described in the report. Alternative Actions: 1. Option 1 - Limited Library expansion including the following facilities - Children's programs, circulation area, lobby, Friends Book and & Gift Shop, storytime theater, media computer and technology center, 2 meeting rooms, additional space for books and study space - at a cost of $5,500,000 requiring $2,058,000 in additional funds. 2. Option 2 - All in Option 1, including 3 additional meeting rooms, catering kitchen, 320 seat auditorium and redesign of parking—including 714 spaces, overlay a vacated section of Talbert Avenue - at a cost of $8,043,000 requiring $4,601,000 in additional funds. 3. Option 3 - Postpone until funding available. Attachments: 1. Library Expansion Project Plans (in phases). 2. Library Expansion Project Funding Analysis. 3. Stone & Youngberg COP Financing Report. MTU/RS/RH:pf #0540q-67 u.w.•..r. .�.' .. ML a o Ne MOMPI Al (,•.I Y••,y}Yli• .Mf.r s c_Ge LOWER LEVEL FLOOR PLAN UPPER LEVEL FL00(t PLAN � �. . OPTION I: (Phase I) ZCh d en's Programs Storytime Theater Circulation Area Media Computer and Technology Center Lobby Two meeting rooms. Friends Book & Gift Shop Additional space for books and study i co O„ O .�~ �1�61•�t f - . ~- A`• - - ; a Ai'ofalMri.14 IA fIM � i SAt i MT sin GRAIMM ND1B •••,•••,�•••�••• - ME N� j .N Xu - Nrs Ys� - GFAADW PLAN OPTION I: (Phase I) - N Existing parking - no changes CC LM - ="'— ...<.N>. . A 1 �� ....W. a' U -a-- a 0 ..... o } o ..,„ 0 0 �. O r\_ O Jyo G M ED ED - 13 ED \ ' :U Mn7 _1 �r TM� w Ink o UPPER LEVEL FL00 PLAN LOWER LEVEL FLOOR PLAN W OPTION II: Three additional meeting rooms, catering kitchen, 320 seat auditorium, redesign of parking including 714 spaces. IL 0' i' '1 ' � 1' I LIBRARY ill {I �I 1101 ' - ,�a.4.`�• .' ''� ,"•i = ` �`• — '1. `.. ! 'l - ... � - �` �'_;; - % 1 I t t I t t�i I I I I 1 I 111 L li•I _. ��... Q �-/ �. "'�"' 3� � OPTION II: Parking ..Redesign of parking, including 714 spaces, deletion of section of Talbert Avenue. } • i ''^I Ln - I I'/ IMir YYw.Y■1 O Mwr Q Q � 0 O .• 0 ` �.... ED ►� ago ....■ E O . ED t MUM- D UPPER LEVEL FL00 PLAN � a� LOWER LEVEL R N OPTION III: All programs, including a theater to accommodate the Huntington Beach Playhouse. Y , HUNTINGTON BrACH LIBRARY EXPANSION PROJECT FUNDING ANALYSIS BUILDING COSTS OPTION I OPTION II OPTION III OPTION IV PHASE I PHASE I & II W/THEATER PHASE I $5,500,000 $5,500,000 Postpone PHASE II 1,343,000 Expansion PARKING (Estimated) 1,200,000 until THEATER 0 $ 425,000 funds are available TOTAL $5,500,000 $8,043,000 $8,468,000 Costs include furniture and fixtures Please see Attachment A for itemized costs Option I: Children's programs, circulation area, lobby, Friends Book & Gift Shop, storytime theater, media computer and technology center, 2 meeting rooms, additional space for books and study space. . Option II: All in Option I. including three additional meeting rooms, catering kitchen, 320 seat auditorium, and redesign of parking, including 714 spaces, on vacated section of Talbert Avenue. Option III: All the above plus the theater. This would provide a location for the Huntington Beach Playhouse and other theatrical, dance and musical performances. FUNDED Building Fund (PFC) $1,900,000 1,900,000 $1,900,000 Capital Improvement Fund 550,000 550,000 550,000 Park Acq. & Dev. Fund 292,000 292,000 292,000 Donations 700,000 700,000 700,000 TOTAL $3,442,000 $3,442,000 $3,442,000 UNFUNDED OPTION I OPTION II OPTION III THEATER $2,058,000 $21543,000 $2,968,000 TOTAL UNFUNDED $2,058,000 $4,601,000 $5,026,000 -6- SUMMARY EXPENDITURE/REVENUE: CERTIFICATES OF PARTICIPATION Proceeds Current Increase/ Increased Total Cost Building Available from New New Annual Annual <Decrease> Personnel/ Increase Increased Costs Funds Debt (COPs) Debt Debt Annual Debt Operatinq <Decrease> Revenue Net Debt OPTION I 5,500,000 3,442,000 2,058,000 246,960* 399,000 <152,040> 49,040 <103,000> 60,024 <$163,024> (Phase I) OPTION II 8,043,000 3,442,000 4,667,490 553,425 399,000 154,425 247,408 401,833 401,644 $ 189 (Complete with auditorium) OPTION III 8,468,000 3,442,000 4,880,157 589,780 399,000 190,780 263,625 454,405 454,064 $ 341 (Complete with theater) *Estimated based on Stone & Youngberg Report of funding complete expansion without theater. I v I Eupansion7-3—pg.2 Huntington Beach Library Projected Decreased Costs Expansion Project �$103,000> Decreased Cost and Revenue Projections COP Annual Decrease : <$152,040> Option I Personnel : $85,314 Building costs Operating Costs : $115,766 $5,500,000 Funded : $3,442,000 Unfunded : $ 2,068,000 Annual Net Debt Decrease <$163,024> 00 Costs vs. Revenues Projected Increased Revenues $60,024 Cost Decrease : <$103,000> Media Services : $43,000 Revenue Increase : $60,024 Room Rentals : $13,360 Interest : $3,664 Huntington Beach Library Projected Increased Costs Expansion Project $401,833 Increased Cost and Revenue Projections COP Annual Increase 38% $164,426 i t On II Building Costs $8,O43,OOO Operating Costs 38% $161,739 Personnel 24% $95,069 Funded : $3,442,O0O Unfunded : $ 4,601,000 Annual Net Debt : $189 I to ' Cost vs. Reverwes Projected Increased Revenues $401,644 Costs $401.833 Parking Meters 29% $117,460 Media Services 11% >: $43,000 Revenws Interest 6% Auditorium 6% $24,514 $401,644 $20,000 Room Rentals 12% 0 100000 200000 s00000 400000 600000 $40,680 Com. Enrich, Lib Fee 37% $160,000 Huntington Beach Library Projected Increased Costs Expansion Project $454,405 Increased Cost and Revenue Projections COP Annual Increase 42% $190,780 OptionIII I Building�'� -- Costs $8,468,000 Operating Costs 36% $167,956 Personnel 23% $105,669 Funded : $3,442,000 Unfunded : $ 5,026,000 Annual Net Debt : $341 I Cost vs. Revenues Projected Increased Revenues $454,064 Costs $464,406 Parking Meters 34% $163,460 Media Services 9% Revenues $43,000 Interest 8% $27,714 $464,084 Theater 7% $33,220 "Ys 0 100000 200000 300000 400000 600000 600000 Room Rentals 10% ..mm^."? _ $46,680 Com. Enrich Lib, Fee 33% $160,000 DETAILED INFORMATION ON POST CONSTRUCTION REVENUE 1. Room Rentals Option I Option II & III Option I Option II & III Current Projected Projected Increase Increase Talbert Room $13,320 $13, 320 $13,320 $ -0- $ -0- Balboa Room 6,680 6,680 6,680 -0- -0- New Meeting Rooms A -0- 6,680 6,680 6,680 6,680 B -0- 6,680 6,680 6,680 6,680 C -0- 13,320 -0- 13,320 D -0- 13,320 -0- 13,320 E -0- 6,680 -0- 6,680 TOTAL $20,000 $33,360 $66,680 $13,360 $46,680 Currently the library has two meeting rooms generating $20, 000. The expansion rooms are various sizes and revenue is projected based on the uses of the current rooms. Due to lack of convenient parking, and booking availability, clients have been turned away. The expansion includes five additional rooms with catering facilities and convenient parking. City sponsored organizations are not charged. Twenty hours a week for a temporary clerk have been included under personnel costs for room reservations. 2 . Media OPTIONS I - II - III Revenue Current Projected Increase videos 21,500 26,875 5, 375 Compact Discs 21, 000 26,875 5,875 Computer Stations 6, 600 35,750 29, 150 Fines 9, 000 11,500 2,500 Equipment 1,900 2, 000 100 TOTAL 60,000 103,000 43,000 The increased circulation and revenue for videos and compact discs is a result of the expanded space for growth of the collection, improved visibility of the Media Department due to relocation to the main entrance and the increase in hours Media Services is open per week from 48 to 60 hours (25% increase) . Ten additional computer stations will be added to meet patron demand for personal computers. The computer stations currently generate $2,200 each. We anticipate a 25% increase in usage due to the increased visibility and the expanded hours of service. It is anticipated that each of the 13 stations will generate $2,750 per unit. One 20 hr. temporary clerk will be added to staff expanded hours. Computer stations will cost $2,800 each to purchase. The itemized operating expenses are included in Attachment B. Expansion7-3--pg.4 -11- J MajorDevelopment Projects and Community Enrichment Library Fee Holly Seacliff 11.86 i Bolsa Chica 12.565 Meadowlark P1.26 322 Ascon Waterfront 2.534 Downtown Core 1.69 Misc. Redevelopment 2.312 E Total 33.543 0 5 10 15 20 25 30 35 40 Square Feet (in Millions) Residential ® Commercial/Indust. C E L F $.10 $3,354,260 $.15 $5,031,390 3 . ' Community Enrichment Library Fee. " FY84/85-89/90 Average Projected Increase 300,000 450, 000 150,000 This fee was approved to assist the library in meeting the growing demand for library services as a result of development. It is assessed per square foot during building permit application. From FY 84/85 through 89/90, the fee has fluctuated from $175,000 to. over $450,000. The average is $300,000. The recommendation is based upon Municipal Code Chapter 3 .40. 100 to establish a special capital outlays fund entitled Library Service Fund be set aside. "All proceeds from the tax, penalty, and interest collected under this chapter, shall be paid into a special capital outlays fund of the City entitled: 'Library Service Fund# for acquiring, constructing, equipment, maintaining, and staffing of libraries. 0011 If the community enrichment library fee was placed into a separate, cumulative interest bearing account, the library revenue would be increased and secured for future bond debt payments. Current fee is at $. 10 per square foot. Municipal code allows fee to be $. 15. If fee was increased from $.10 to $. 15 (50%) , the annual average would increase $150, 000 (300, 000 x 50%) = 150, 000. Although there is a current building slowdown, Holly Seacliff and Bolsa Chica and other major developments in the next ten to fifteen years will affect the library and be assessed the fee. The demand for libary services is related to three factors which the above developments meet: 1) proximity; 2) education; and 3) income. Any additional requests for staffing will be a direct result of development, not the library expansion. ) COMMUNITY ENRICHMENT LIBRARY FEE Increases from Major Development Projects Development Residential Commercial/ Total SF Community Enrichment Library Fee Industrial Units Avg.SF Total SF $.10 $.15 Increase Holly Seacliff 4,400 2,500 11,000,000 860,000 11,860,000 1,186,000 1,779,000. 593,000 Bolsa Chica 5,700 2,200 12.540,000 25,000 12.565,000 1,256,500 1,884,750 628-,250 Meadowlark 600 2,000 1,200,000 122,000 1,322,000 132,200 198,300 66,100 Ascon 600 2,100 1,260,000 0 1,260,000 126,000 189,000 63,000 Waterfront 639 2,000 1,278,000 1,255,600 2,533,600 253,360 380,040 126,680 Downtown Core 800 1,800 1,440,000 250,000 1.690,000 169.000 253.500 84,500 Miscellaneous 1,200 1,800 2,160,000 152,000 2,312,000 231,200 346,800 115,600 Redevelopment Total 13,939 2,215 30,878,000 2,664,600 33,542,600 3,354,260 5,031,390 1,677,130 CELF @ $.10 $3,354,260 @ $.15 5.031,390 Increase 11.677,130 Expansion7--2--pg.5 -13- 4 . Interest The FY89/90 revenue (see Attachment C for itemized list) will generate $48,250 in interest. ($798, 680 x 6.5%) Option I interest is projected to be $51,914. ($742,320 x 6.5%) . Option II interest is projected to be $72,764 ($1,119,450 x 6.5%) : Option III interest $75,964 ($1,168,670 x 6.5%) . 5A. Auditorium (Option II) - Uses: Library support groups, city departments, genealogy, arts, piano recitals/musical events, exhibits, parties, film series, weddings, lectures, business meetings, receptions, dance recitals, actors' workshops, literacy, library fund- raising, classroom instruction. Current Projected Increase 0 20,000 20,000 Eight local auditoriums were surveyed to determine booking rate, fees, size and users. All were booked heavily with reduced availability for the general public. Fees averaged $60.00 to $300.00 per hour. Annual average revenue of these auditoriums with similar patterns of usage is approximately $20,000. City sponsored programs will remain free. 5B. Theater (Option III) - Uses: Huntington Beach Playhouse, professional performances. Current Projected Increase Lease 0 10,000 10, 000 Ticket Sales 9,900 9,900 *Other Rental 13,320 13,320 Total 33,220 33,220 The Huntington Beach Playhouse is currently paying approximately $8,000 at its present location, Gisler School. They would agree to an additional $2,000 to be relocated due to facility, parking and location. In addition, a City fee of $1.10 (or more) would be charged per ticket. 60 Performances x 150 Tickets per performance (average) 9,000 Tickets x$1. 10 City Fee $ 9,900 Additional revenue *Theater would be used by the Huntington Beach Playhouse one third of the time. Revenue would be $13,320 the other two thirds, based on the $20,000 projected in 5A above. Twenty hours per week of Maintenance Worker have been included under Option II personnel costs for theater sound, light system and general assistance. -14- Expansion7-3—p&6 6. Parking The expansion parking plan eliminates a section of Talbert Avenue between Golden West and Gothard Streets. This section would then be developed as parking. Additionally, the plan allows for more access to Central Park and outdoor cultual activities. Of the 714 spaces, 261 (Option 1) or 341 (Option II) will be metered at .$25 per hour. Citywide meters average $450 net annually. Option I Option II Option III No metered spaces 261 Metered spaces 341 Metered spaces x 450 Net annual revenue x 450 Net annual revenue $117,450 $153,450 * (The library currently has four meters which generated $525 each in 1990) . In Option I, we do not recommend adding meters to existing parking because there are many complaints about parking. Option I does not change existing parking conditions and to add parking meters without solving the parking concerns of convenience and accessibility, would further irritate patrons. -15- Expansion7-3-pg.7 LIBRARY EXPANSION -- CERTIFICATES OF PARTICIPATION (COP'S) JUSTIFICATIONS 1. COPS - USING THE LIBRARY TO FINANCE THE LIBRARY. 2. ATTRACTIVE INTEREST RATES. 3. GOOD CONSTRUCTION BID ENVIRONMENT. 4. MORE ECONOMICAL TO BUILD ENTIRE PROJECT WITHOUT PHASES (25-40% SAVINGS DEPENDING ON PHASE II COMPLETION) 5. CITY MAY NOT HAVE CAPITAL FUNDS FOR YEARS. WITH COPS, WON 'T NEED ADDITIONAL CAPITAL FUNDS WHICH CAN GO TO OTHER PROJECTS. G. REVENUE GENERATED FROM EXPANSION WILL OFFSET INCREASED ANNUAL PAYMENT. 7. MOMENTUM: KEEP PEOPLE ACTUALLY WORKING FOR AND DONATING TOWARD PROJECT. 8. FUNDING PROPOSAL DOES NOT CONSIDER FUTURE FUND-RAISING, I. E. , DONOR IS CATALOG, FUND-RAISING CAMPAIGN FOR FURNITURE, EQUIPMENT, DONOR RECOGNITION, ETC. UPON CONSTRUCTION, DONATIONS WILL INCREASE. 9. ONGOING LIBRARY SUPPORTERS ANNUAL FUND-RAISING FRIENDS OF THE LIBRARY $ 50, 000 LIBRARY PATRONS FOUNDATION 40,000 FRIENDS OF THE CHILDREN'S 51000 LIBRARY DONATIONS 10, 000 TOTAL $105, 000 10. LAST YEAR, LIBRARY VOLUNTEERS DONATED 25,000 HOURS ANNUALLY, SAVING THE CITY $350,000 IN PERSONNEL COSTS. EXPANSION WILL ENCOURAGE MORE VOLUNTEERS. 11. IF DEFERRED, PROJECT WILL CAST MORE IN FUTURE. 12. $700, ft IN DONATIONS TO DATE FROM PEOPLE WHO EXPECT PROJECT TO BE STARTED NOW! 13. COMMUNITY RELATIONS: BUILDING AN EDUCATIONAL FACILITY -IS POSITIVE FOR CITY IMAGE. 14. ADJACENT HOLLY SEACLIFF, BOLSA CHICA HOMES AND OTHER MAJOR DEVELOPMENTS WILL INCREASE DEMAND ON LIBRARY, SO, IT MUST EXPAND TO ACCOMMODATE GROWTH. cxpansion6-16 -16- STONE & YOUNGBERG MEMBERS: PACIFIC STOCK EXCHANGE February 28, 1991 Mr. Ron Hayden Huntington Beach Library 7111 Talbert Avenue Huntington Beach,California 92648 Dear Ron: Enclosed is the preliminary analysis you requested regarding a COP financing for Library improvements and a concurrent refunding of the outstanding 1972 Library Mortgage Lease Revenue Bonds. Due to the low interest rates on the outstanding bonds (5%to 5.75%), it is most cost-effective to fund an escrow which will defease the outstanding bonds to maturity(a deposit of U.S. Treasury securities which will be sufficient to make all of the remaining scheduled debt service payments on the old bonds). The alternative of actually calling the outstanding bonds and paying a premium would increase the size of the bond issue by approximately $130,000 and increase the annual debt service payments by approximately$10,000. I have assumed that the new COPS would carry an A rating from Moody's and that only the reserve fund was available from the 1972 bonds ($404,250). I have also assumed a one year construction schedule and interest earnings on the constriction fund and new reserve fund at 6.5%during the construction period. Finally,I assumed that either the existing Library or the Library plus other unencumbered City-owned buildings would have sufficient value to be the subject of the COP lease. If that proves not to be true,the size of the COP will have to be increased to accomodate approximately 18 months of capitalized interest. That would increase the size of the issue by another$650,000 and the annual debt service requirements by approximately$60,000. The following table illustrates the key dimensions of financing for the two scenarios you have presented: Library Expansion Project COP OPTION I OPTION H (W/O THEATER) (WITH THEATER) Par Amount of COPS $7,005,000 $7,465,000 Net Annual Debt Service $553,425 $589,780 Net Construction Fund $4,467,490 $4,880,157 Refunding Escrow $2,170,945 $2,170,945 ONE CALIFORNIA STREET•SAN FRANCISCO,CALIFORNIA 94111•(415)981-1314 -17- Mr. Ron Hayden February 28, 1991 The average interest cost I have assumed for both financings is approximately 6.95%. I have assumed costs of issuance of$70,000 and an underwriting discount of 1.5%. Of course, the interest cost and underwriting discount can change significantly depending on market conditions at the time of sale. Each COP includes a debt service reserve fund equal to maximum annual debt service. I hope this information is helpful to you. I have included the detailed schedules which were developed to support the analysis. Please call me if you have any questions about this material or anything else related to your project's financing needs. Sincerely, Edward G. Schilling Attachments -18- y i STATEMENT OF THE ACTION OF THE CITY COUNCIL Council Chamber, Civic Center Huntington Beach, California Monday, March 25, 1991 A videotape recording of this meeting is on file in the City Clerk's Office. Mayor Green called the adjourned regular meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach to order at 7 p.m. ROLL CALL PRESENT: MacAllister, Winchell , Silva, Green, Kelly, Robitaille, Moulton—Patterson ABSENT: None LIBRARY EXPANSION — APPROVED The City Clerk presented a communication from the City Administrator pertaining to the Library Expansion Project. Ron Hayden, Library Director, was available for a presentation. A motion was made by MacAllister, seconded by Winchell , to approve the following: 1 . Approve Option No. 3 which includes the Huntington Beach Playhouse Theatre. 2. Direct staff to work with Stone & Youngberg to devise a specific financing package which will be returned to Council for their approval . 3. Direct staff to return with the proposed fees as described to finance Option No. 3, without requiring General Funds to pay the Bond Debt Service. 4. Direct staff to include in the 1991/92 Budget a Library Service Fund as provided in the Municipal Code. This fund shall be used solely to finance the Library Expansion Option No. 3, unless specifically authorized by the City Council for other purposes. Page 2 - Statement of Action - 3/25/91 Councilman MacAllister stated the motion is made with the intent that this would be as an enterprise fund where the revenue that is generated would pay for a reduction of Certificates of Participation so the city is not funding it out of the general fund budget. The motion carried by the following roll call vote: AYES: MacAllister, Winchell , Silva, Green, Kelly, Robitaille, Moulton-Patterson NOES: None ABSENT: None Mayor Green adjourned the adjourned regular meeting of the City Council and the adjourned regular meeting of the Redevelopment Agency of the City of Huntington Beach to 5:30 p.m. , Monday, April 1 , 1991 , to Council Chamber, Civic Center. ATTEST: Connie Brockway City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California Connie Brockway City Clerk STATE OF CALIFORNIA ) Peter Green County of Orange ) Mayor City of Huntington Beach) I, CONNIE BROCKWAY, the duly elected and qualified City Clerk of the City of Huntington Beach, California, do hereby certify that the above and foregoing is a true and correct Statement of Action of the City Council of said City at their adjourned regular meeting held on the 25th day of March 1991 . WITNESS my hand and seal of the said City of Huntington Beach this the 28th day of March 1991 . Connie Brockway City Clerk and ex-officio Clerk of the:City Council of the City of Huntington Beach, California Deputy REQUEST FOR CITY COUNCIL ACTION September 21, 1992 Date Submitted to: Honorable Mayor and City Council Submitted by: Michael T. Uberuaga, City Admini*MLION Prepared by: Ron Hayden, Director, Library Se Subject: CAPITAL FUND CAMPAIGN TO RAISE $ FOR FURNISHINGS AND EQUIPMENT FOR THE LIBRARY EXPANSION PROJECT Consistent with Council Policy? [ ] Yes [ ] New Policy or Exception c Statement of Issue, Recommendation,Anal iz s,Attachint .�.. � C-LN;RR STATEMENT OF ISSUE: The library support groups wi 1 begin a year long fund-raid campaign commencing October 1, 1992 and ending October, 19 , for the Library Expansion Project. RECOMMENDATION: Approve the fund-raising campaign as identified in the Huntington Beach Public Library and Cultural Resource Center expansion brochure sponsored by the library support groups. ANALYSIS The library support groups, consisting of Friends of the Library, Library Patrons Foundation, and the Friends of the Children's Library, have raised $700,000 toward the library expansion project. They, in addition to the Huntington Beach Playhouse, have committed to raise an additional $300, 000 to bring the total to $1, 000, 000. The library support groups have developed a brochure and fund-raising campaign for this purpose. The brochure provides a list of opportunities for people to contribute toward furnishings and equipment for the newly expanded area. Although the library has funding for the building and most of the interior desks and furnishings, there are various items that still need to be funded. Donations will be sought for books, computers, furniture, theater equipment, meeting room furniture, salt water aquarium, art pieces, and various other items. If a group, organization, company or individual sponsors an entire room, the room will be named after that sponsor. Council support is requested for the brochure fund-raising campaign and the concept of placing private donors' names on the items and areas which they are supporting. Plo 5/85 W i FUNDING SOURCE: Private donations. ALTERNATIVE ACTION: Finance purchasing of equipment and furnishings for the Library Expansion Project through City's General Fund. ATTACHMENTS: Brochure of the Huntington Beach Public Library & Cultural Resource Center Expansion, including list of items to be sponsored. MTU:RH:gc N REQUEST FOR CITY COUNCIL ACTION Date January 21, 1992 Submitted to: Honorable Mayor and City Council Submitted by: Michael T. Uberuaga, City Administr o Prepared by: Ron Hayden, Director, Library Se Subject: CENTRAL LIBRARY EXPANSION - A OVED BY CITY COUNCIL .0011 19— Consistent with Council Policy? [ ] Yes ( ] New Policy or Excep i�-.Ara"; CITY CLLi�Ii Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions, Attachments: STATEMENT OF ISSUE: To begin construction of the Central Library Expansion Project, the City Council must award the construction contract and approve the financing. RECOMMENDATION 1. Utilize up to $5,000,000 of the 1986/89 unused COP proceeds as temporary financing for the Library Expansion Project. 2. Accept the lowest qualified bid and award the contract to Gentosi Brothers Contractors. 3 . Authorize the Director of Public Works to expend $6, 136, 500 to cover contract costs of $5,830,000, estimated construction change orders of $291,500, and anticipated incidental expenditures of $15, 000. ANALYSIS: Pursuant to the 1987 HBW Associates, Inc. "Needs and Assessment Study, " of the Huntington Beach Library System, Council directed staff to proceed with the expansion of the Central Library. On July 5, 1988, Council approved the selection of Anthony & Langford to prepare plans, specifications, and a probable cost estimate for the expansion of the Central Library. Subsequent to this action, Council approved expanding the scope of the project to include the design of additional improvements and the development of a master parking plan. On October 21, 1991, City Council authorized a call for bids for the Central Library Expansion Project. The following lists the contractors and bids for the building only and limited site work received and opened on Tuesday, December 17, 1991. MISC.04.1 PI 0 5/85 i Contractor Bid Amount A.R. Willinger Company $5,560, 000* Gentosi Bros Contractors 5,830, 000 Nationwide Construction Co. Inc. 5,889, 000 C.W. Driver & Associates 5,983 ,000 Lewis Jorge 6, 000, 000 Sumitomo Construction American, Inc. 6,825, 000 John R. Hundley, Inc. 6, 143,826 PW Construction, Inc. 6,298, 000 Swinerton & Walberg Co. 6, 300, 000 Shirley Bros. , Inc. 6,318, 000 J Ray Construction 6, 357, 000 Cal-Pac Construction, Inc. 6, 383, 000 Millie and Severson, Inc. 6, 390, 000 Macco Constructors, Inc. 6,543 ,000 Berry Construction, Inc. 6,572, 588 Culp Construction Company 6,825, 000 *A.R. Willinger Company made a $1, 000,000 clerical error, the correct bid should have been $6,560, 000. Based on a legal opinion received from the City Attorney (see attached) , A.R. Willinger was permitted to withdraw their bid without penalty. Therefore, the lowest bid was submitted by Gentosi Bros. Contractors. A committee comprised of the Director of Library Services, the Public Contract Administrator, the Chief Structural Building Inspector, the Chief Plumbing & Mechanical Inspector, and the Chief Electrical Inspector reviewed the qualifications of Gentosi Bros Contractors. Based on the extremely positive outcome of this review process, it is recommended that a contract be awarded to Gentosi Bros Contractors for the construction of Library Building only. Contract for the Parking Master Plan construction will be returned to the City Council June, 1992. The estimated total costs of the Library Expansion and parking is $8,500,000. The unfunded portion is estimated to be $5, 000, 000. To finance the library during construction, the current budget proposes and staff recommend temporary use of $5, 000, 000 of the City's unused $10,200, 000 COP proceeds. According to Stone & Youngberg, the underwriting firm used by the City for prior COP issue, using the existing COP' s are more economical than issuing new debt. The following are four funding alternatives by Bob Franz, Deputy City Administrator (see Attachment #1: Funding Alternatives - Library Expansion Project) . An important point to understand is that the existing General Fund payment of $399, 000 per year is for debt service on the 1972 Library bonds. In the summaries and analysis of new library costs resulting from the expansion project, the continuation of the General Fund annual payment of $399,000 is assumed. M1SCOU r Alternative 1: (STAFF RECOMMENDATION) Loan $5 million from 1986/89 COP proceeds, as interim/temporary Library Expansion Project funding, then repay the $5 million with a new 1994 COP issue which would include defeasance of 1972 library bonds. Alternative 2 : Defease 1972 library bonds, and issue $5 million of new COP's (no use of 1986/89 COP's) . Alternative 3 : Use $5 million of 1986/89 COP proceeds as permanent financing (do not defease 1972 library bonds) . Alternative 4 : (Not included in attached analysis) : Utilize General Fund reserves to finance all or a portion of the $5 million needed. for the Library Expansion Project. Mr. Franz concludes that Alternative 1 provides the City with a sound interim financing approach while still keeping many options open as to the permanent financing of the Library Project. Therefore, it is recommended as the best financing option available for the funding of the $5 million needed for the Library Expansion Project. The construction is expected to take 18 months. Upon completion of the construction, staff will return to Council to recommend the permanent financing. However, based on economic conditions or necessity of funding other capital projects, the $5, 000,000 loan of COP proceeds could be repaid by issuing new debt at any time during or post construction. To finance the project, Council approved the establishment of a special enterprise fund titled Library Service Fund. This fund will be used to finance the expansion costs including interest payments on the loan of COP proceeds, plus all increased personnel and operating costs. New revenues for the fund include the Community Enrichment Library Fee, room rentals, theater rentals, parking meter revenue, interest earnings, and media revenues. Because of this Library Service Fund, the General Fund would not be impacted during or post construction (see Attachment #2) . During construction: During construction, the Library Service Fund will pay interest to the General Fund primarily from the interest earned on the existing Library Service Fund balance, revenue from the Community Enrichment Library Fee, and the existing parking meter revenue (see Attachment #3 : Construction Financing During Construction) . The existing Library Service Fund has approximately $2, 122, 000 in addition to approximately $700, 000 donated funds for a total fund balance of $2,822 ,000. During construction, it is anticipated to use the Library Service Fund and donations prior to using the COP funds. This approach will allow the COP's to continue to generate interest earnings revenue to offset the General Fund costs. When the library begins using the $5, 000, 000, (estimated to be January, 1993) , the Library Service Fund will pay to the General MISCA4.1 Fund the interest on the loan. Total interest payments during construction are estimated to be $327, 000. The revenue from the Library Service Fund during the construction period is estimated to be $506,748. When interest payments on the COP loan of $327,000 are subtracted, the cumulative balance would be $178,917. (See attachment #4: Library Service Fund Revenues and Expenses During Construction. ) This reserve will carry over for post construction expenses. Post construction: The post construction expenses related to the Library Expansion Project will continue to be paid by the Library Service Fund. However, revenue from programs generated as a result of the expansion including the theater, room rental, media, and additional parking meters will be included in the Library Service Fund (please see Attachment #5) . Beginning in FY 94/95, when the expanded library is in operation, the annual revenue related to the Library Expansion is estimated to be $575, 625. The annual estimated expenses are $450, 000, resulting in an annul surplus of $121, 000. When this surplus is added to the cumulative balance of $178,917, acquired during construction, the Library Service Fund reserve at the end of 94/95 should be approximately $300,000. It is important to note that this does not include additional potential revenue of the Friends Book & Gift Store, and fund-raising and donations of $120, 000 total. For more detailed information on post construction revenue, please see Attachment #6: Detailed Information on Post Construction Revenue) . In summary, during construction, the Library Service Fund consisting of existing funds, interest earned, and limited parking meter revenue will pay to the General Fund the interest on the $5, 000, 000 loan. In post construction, the Library Service Fund package will expand to include room rental, theater rental, expanded parking meters and cumulative balance. These funds are sufficient to pay not only the debt service but also personnel and operating costs. Upon completion of the project, staff will return to Council to determine the most economical means for permanent financing. Again, if economic conditions warrant, these funds can be returned and new debt issued at any time during the construction. MISC.04.1 FUNDING SOURCE: ARCHITECT'S ESTIMATE Based upon a detailed cost estimate proposed by Construction Analysts, Inc. of Carlsbad, CA. , the cost of constructing the building improvements alone, we projected at $5,403,598 prior to the bidding project. On December 16, 1991, Construction Analysts prepared a revised cost estimate to $5,912,999 based on numerous plan changes and clarifications in the specifications which occurred during the project bidding process. The $5,912,999 does not include a budget for anticipated change orders or incidental expenditures. When these items are included the final estimate is $6,223, 648 as summarized below: Contract Costs: $5.1912,999 Anticipated Change Orders 295,649* Incidentals 15,000** $6,223,648 GENTOSI'S BID Contract Amount $5,830,000 Anticipated Change Orders 291,000* Incidental Expenses 15,000** $6,136,500 *Resolution 4896 authorizes the Director of Public Works to spend up to 10% of the contract amount, not to exceed $50,000 for Change Orders. Staff recommends a budget equal to 5% of the contract amount. Examples of possible Change Orders include such things as change in field conditions, unavailable materials, weather delays, errors in the plans and changed city requirements. **Miscellaneous soils testing, Edison electrical hookup, water serve, etc. SOURCE OF FUNDING Funds for this project will be obtained as directed in the analysis section of this RCA. ALTERNATIVE ACTION: 1. Select a different funding alternative as described in Attachment 1. 2. Reject low bid or all bids and do not proceed with construction. ATTACHMENTS: 1. Funding Alternatives - Library Expansion Project 2 . Projected Annualized Increased Costs/Revenues 3. Construction Financing During Construction 4. Library Service Fund Revenues and Expenses During Construction . 5. Estimated Library Service Fund Revenues and Expenditures Post Construction 6. Detailed Information On Post Construction Revenue MTU:RH:gc ATTACHMENT 1 Hca ! CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION NUNTING"KACM TO: RON HAYDEN, Library Director FROM: ROBERT J. FRANZ, Deputy City Administrator SUBJECT: FUNDING ALTERNATIVES — LIBRARY EXPANSION PROJECT DATE: January 9, 1992 Attached is a copy of my October 14, 1991 report recommeiding a financing program for the Library Expansion Project. For the reasons indicated in that report, it is recommended that $5,000,000 of the City' s unused C.O.P. proceeds be used as interim/temporary financing for the project. Permanent financing, under the recommended approach, would be determined upon project completion in 1994 when all construction costs are known. Permanent funding alternatives would be more fully analyzed in 1994. Also attached is a financial analysis of alternatives to the above recommended funding approach. Following is a description of four funding alternatives. An important point in this analysis and the attached detail is to understand the existing General Fund payment of $399,000 per year for debt service on the 1972 Library bonds. In your summaries and analysis of new Library costs resulting from the expansion project, the continuation of the General Fund annual payment of $399,000 is assumed. The attached analysis, therefore, needs to be reviewed in comparison to the current annual cost of $399,000 being paid by the General Fund. ALTERNATIVE 1 — (STAFF RECOMMENDATION): Loan $5 million from 1986/89 C,O.P. proceeds. as interim/temporary Library Expansion Project funding. then repay the $5 million with a new 1994 C.O.P. issue which would include defeasance of 1972 Library Bonds This recommended alternative would allow a delay in the issuance of permanent C.O.P. ' s and defeasance of the 1972 bonds. This has the benefit of delaying the increase in annual debt service payments. You have shown that the Library Service Fund can pay interest to the City on the temporary loan of $5 million during the construction of the Library Expansion. Upon completion of the project, the City can then approve permanent financing as outlined under Alternative 2, 3 or 4 below, can consider the issue of whether to issue new C.O.P. debt. ALTERNATIVE 2: Defease 1972 Library Bonds. and issue $5 million of new C.O.P. 's (no use of 1986/89 C.O.P. ' s) . This alternative represents the basic permanent financing approach for the Library Expansion Project. As indicated in the attached October 15th memorandum, this financing approach was approved by the City Council in March of 1991 and could be implemented now. A delay in the implementation of this permanent financing approach (Alternative 1 ) has been recommended for the following reasons: BUDGET STUDY SESSION Policy Guidelines for 192/93 Budget Preparation 1 . From a cash management point of view, it is not recommended that new C.O.P. debt be issued when proceeds of the prior C.O.P. issue have not yet been utilized or allocated. To do so would increase annual debt service costs unnecessarily. 2. Any new C.O.P. issue requires a pledge of General Fund resources as security for the annual debt service payments even if the Library Service Fund revenues are "earmarked" for debt service payments. Due to the current General Fund shortfall , rating agencies could lower the City' s bond rating upon issuance of a new C.O.P. debt. This would result in higher annual debt service payments compared to issuance at current City bond ratings. 3. Total costs for the Library Expansion Project are unknown until the construction contract is completed, parking, Talbert Avenue, and methane mitigation issues are resolved. ALTERNATIVE 3: Use $5 million of 1986/89 C.O.P. proceeds as permanent financing. (do not defease 1972 Library Bonds) . While this alternative has the advantage of being the least cost over the long term, it has the disadvantage of being the highest cost for the four fiscal years beginning in 1994/95. This is due to the need, through 1997/98 to pay both the debt service on the 1972 bonds ($399,000 per year) plus the debt service on the 1986/89 C.O.P. ' s (roughly $425,000 per year) for a total annual average debt service for the four years of $815,000. Following those four years, the annual debt service would drop to an average of $423,000 compared to alternatives 1 and 2 where total average annual debt service would be an estimated $550,000 or $573,000 respectively. Please note that the City will retain the option of implementing this alternative in 1994 if Alternative #1 is approved as recommended. That is, in 1994, prior to the issuance of permanent financing for the Library Project (including defeasance of the 1972 bonds) this Alternative #3 can be analyzed again in comparison to a 1994 C.O.P. issue to defease the 1972 bonds and raise $5 million in new proceeds. ALTERNATIVE 4 — (Not included in attached analysis): Utilize General Fund reserves to finance all or a portion of the $5 million needed for the Library Expansion Project. '- Instead of loaning any of 1986/89 unused C.O.P. proceeds or issuing any new debt to defease the 1972 bonds, General Fund reserves could be allocated to fund all or a portion of the $5 million needed for the Library Expansion Project. Obviously this would reduce the fund balance (reserve) of the General Fund by whatever amount is allocated to the Library Expansion Project. This alternative is not recommended at the current time due to the uncertainty about the 1992/93 General Fund budget shortfall (and the litigation of the additional PERS refund of $6.5 million) . Upon completion of the construction of the Library Project, the General Fund reserve may be large enough to fund all or a portion of the $5 million currently estimated to be needed for the Library Expansion Project. If this occurs, then the City could consider using General Fund reserves instead issuing new C.O.P. debt in 1994. —2— BUDGET STUDY SESSION Policy Guidelines for '92/93 Budget Preparation SUMMARY As indicated in the above analysis, Alternative 1 provides the City with a sound interim financing approach while still keeping many options open as to the permanent financing of the Library Project. Therefore it is recommended as the -- best financing option available for the funding of th 5 million needed for the Library Expansion Project. RT J. FRANZ Deputy City Administrator RJF:skd -3- WPADSERT:738 CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HL"NGTON BEACH To MICHAEL T. UBERUAGA From ROBERT J. FRANZ City Administrator Deputy City Administrator Subject FINANCING — LIBRARY Date OCTOBER 14, 1991 EXPANSION PROJECT This memorandum will outline the reasons for the proposal to utilize up to $5,000,000 of unused Certificates of Participation (COP) proceeds as temporary financing for the Library Expansion Project. These COP proceeds (total - $10.2 million) are available due to the cancellation of the North of the Pier Parking Project. The unused COP proceeds will ultimately be used for City capital improvement projects or will be refunded. -- PERMANENT FINANCING — LIBRARY EXPANSION PROJECT The permanent financing for the Library Expansion Project is a refinancing of the 1972 Public Facilities Corporation (PFC) debt on the Library. The estimated new annual debt service for this approach is $589,780 compared to current debt service of $399,000. The $190,780 increase in annual debt service cost would be paid from the new Library Service Fund revenues. This financing approach was approved by the City Council in March of 1991 and could be implemented now. A delay in implementation of this permanent financing approach has been recommended for the following reasons: 1 . From a cash management point of view, it is not recommended that new COP debt be issued when proceeds of a prior COP issue have not yet been utilized or allocated. To do so would increase annual debt service unnecessarily. 2. Any new COP issue requires a pledge of General Fund resources as security for the annual debt service payments even if other revenues are "earmarked" for debt service payments. Due to the current General Fund shortfall , rating agencies could lower the City's bond rating upon issuance of a new debt issue. This would result in higher annual debt service payments compared to issuance at current City bond ratings. 3. Total costs for the Library Expansion Project are unknown until a construction contract is awarded, parking, Talbert Avenue, and methane mitigation issues are resolved. PROPOSED TEMPORARY FINANCING — LIBRARY EXPANSION PROJECT It is proposed to use up to $5,000,000 of the unused COP proceeds as temporary financing. This would allow a delay in the issue of permanent COP's and would delay the increase in annual debt service payments. The temporary financing can be viewed as a construction loan or "line of credit" upon which interest would be paid as funds are used. The interest rate on the funds used can be set by the City Council at the same rate as the City's investment portfolio earnings, thereby assuring that there is no loss in interest earning revenue to the unused COP fund. FINANCING - LIBRARY EXPANSION PROJECT Conclusion: The permanent financing approach can be implemented at any time. Staff recommendation is: 1) Use up to $5,000,000 of unused COP's for temporary financing of the Library Service Project and, 2) Delay the implementation of permanent financing until the completion of the Library Expansion Project or at such earlier time that the $10.2 million of unused COP proceeds are needed for either refunding or use for City projects. ROBERT J. FRANt De ministrator RJF:skd -2- WPADSERT:605 f STONE & YOUNGBERG MEMBERS PACIFIC STOCK EXCHANGE January 10, 1992 Mr. Robert Franz Deputy City Administrator P. O. Box 190 2000 Main Street Huntington Beach, California 92648 Dear Bob: Enclosed is our analysis of the City of Huntington Beach's alternatives regarding the funding of the $5 million Library Improvement Project. Each of the analyses assumes that project funding in some form begins on March 1, 1993, so the first expenses are reflected in the FY 1994 budgets. Interest rates for the analyses are based on tax- exempt and U. S. Treasury rates on December 16, 1991. Please let me know if you have any additional questions on this matter. Sincerely, Stone&Youngberg Edward G. Schilling Enclosures ONE CALIFORNIA STREET•SAN FRANCISCO,CALIFORNIA 94111 •(415)981-1314 CITY OF HUNTINGTON BEACH ANALYSIS OF LIBRARY FUNDING ALTERNATIVES December 17, 1991 Alternative#1 LEND PROCEEDS FROM 86189 COPS TO LIBRARY, CONTINUE TO PAY 72 BONDS, RESTORE 86189 PROCEEDS WITH 1994 COP SALE Par Amount of Bonds (1994 COP ) $7,025,000 Annual Debt Service FY 1994 (includes 72 Library Bonds & 86 COPS) $781,328 Average from 1995 through 2024 (72 Bonds defeased) (1) $548,568 Interim Debt Service for 86/89 COPS and 72 Library Bonds $781,328 Debt Service on 1994 COPS $16,457,043 Total Library Debt Service to maturity $17,238,371 Present Value of Debt Service @ 7% $7,073,381 Alternative #2 DEFEASE 72 BONDS, $S MILLION NEW MONEY CLOSING MARCH 1, 1993 Par Amount of Bonds $7,325,000 Average Annual Debt Service $573,346 Total Debt Service to maturity (2) $17,200,373 Present Value of Debt Service @ 7% $7,1 15,172 Alternative#3 REASSIGN PROCEEDS FROM 86189 COPS TO LIBRARY, CONTINUE TO PAY 72 BONDS (3) Amount of 86/89 COP Proceeds Required (4) $4,855,000 Average Annual Debt Service FY 1994 through 1998 (includes 1972 Library Bonds) $789,188 From 1998 through 2020 $423,794 Debt Service for new Library Project $1 1,414,344 Remaining 1972 Library Debt Service $1,944,869 Total Library Debt Service to maturity (5) $13,359,213 Present Value of Debt Service @ 7% $6,648,978 NOTES: I. Reinvestment yields to defease 1972 Library bonds taken from Wall Street Journal dated 12/16/91. 2. Alternatives #I and #2 assume 29 year amortization of debt at current AI interest levels. 3. Alternative#3 is assumed to be a permanent financing option for the purpose of this analysis; i.e. the 86/89 COP Fund would not be reimbursed by a future COP sale. 4. All three alternatives assume net funding of the Library project with 15 month construction period and 5% investment earnings. S. Alternative #3 uses the 1986 interest rates through final maturity in 2016 and then the 1989 interest rates for the 2019 Term Bond (26 year amortization), and continues scheduled debt service to maturity on 1972 Library Bonds CITY OF HUNTINGTON BEACH ANALYSIS OF LIBRARY FUNDING ALTERNATIVES COMPARISON OF DEBT SERVICE PAYMENTS Fiscal Alternative#I Alternative#2 Alternative#3 Year Lend 86/89 Proceeds for Library 1993 Library Reassign 86/89 COP Proceeds for Library Ending Restore 86189 COP Fund w/94 COP Sale COP/Defease Continue to Pay 72 Bonds Jun-30 86/89 CON 72 Bonds 94 COP Total 72 Bonds 86/89 COPS 72 Bonds Total Debt Svc 1994 392,359 388,969 0 781,328 573,406 392,359 388,969 781,328 1995 509,318 509,3 I$ 574,138 424,240 386,000 810,240 1996 549,495 549,495::::::::::: 574,394 424,800 387,02S 811,825 1997 S50,008 5 S0,008 574,150 424,905 388,2S0 813,15S 1998 SS0,033 SS0,033 573,408 424,575 394,62S 819,200 1999 S49,S70 5 4 9,S 70 572,170 423,800 423,800 2000 S48,623 S48,623 S75.325 ili 422,570 422,570 2001 SS2,07S 552,075 572.913 42S,683 425,683 2002 549,965 549,965 S74,9 I S 423,07S 423,07S 2003 552,27S SS2,275 S71,320 424,780 424,780 2004 548,993 5480993 -: S72,1 10 > > 425,695 425,695 2005 SS0,100 SS0.100 572,110 425,820 42S,820 2006 S50,423 5S0,423-N111*.i' S71,300«;,***-!��;i�:i 42S.155 42S,ISS 2007 549.940 5 49.9 40 S74,493 423,700 423,700 2008 S48,633 548,633 57 I.S68 426,2S8 426.258 2009 SSI,21S SS I t2 I V' *i�; S72,S95 422,828 422,828 2010 SS2,S88 S52,588 S 72,S 88 423,410 423,410 2011 548,098 548,098 571,545 422,808 422t808 2012 SS2,S73 SS2'573:- -:-:.: 574,295 42St823 42S,823 2013 550,840 SS0,840,?.' ?iiii 575.66S'&-*i!.,. i;i 422,455 422,45S 2014 548,073 548,073 !f'--!i! 575,655 422,705 422,705 201S 549,098 S49.098 574,265 421,375 421,375 2016 S48,743 548,743 S71,495 423,268 423,268 2017 SSI,83S SS 1,83S S72.173.��.�� 423,185 423.18S 2018 548,37S S48,375 575,953 � 422,72S 422,725 2019 S48,363 548,363 572,83S 422,000 422,000 2020 SSIAS3 SS 1,453 S72,820';<.§.;ji;: 424,350 424,350 2021 547,64S S47.64S s 575,563 :::::: : 2022 551,768 SS 1,768 571,063 : .*.'..-..* 2023 548,648 548,648.1 ;��*.--� 574,1481 2024 548,285 5 4 8,2 8 S Total Debt Service 392,359 388,969 16,457,043 17,238,371 17,200,373 11,414344 1,944,869 13,359,213 Present Value of Payments @ 7 .... ....7,073,381 TI IS,172 6,648,978 ATTACHMENT #2, Huntington Beach Library Projected Increased Costs .Expansion Project (Certificates of expansion - COPs) (14nnUallZed) $454,405 COP Annual Increase 42% $190.760 BuildingCosts 500 0 8 00 Operating Costs 35% $167,956 Personnel 23% $105,669 Funded : $3,500,000 Unfunded : $5,000,000 Cost vs. Revenues Projected Increased Revenues (Annualized) i costs $457,500 $464,406 Theater 7% Media Services 9% $33,220 $43,000 Parking Meters 11% Room Rentals 10% $62,500 $46,680 Revenues Interest 7% >_-'�':ji�:.iqi;�:•...i�R';y;:+$a:-;:a::..:.;:y_v-:�j£�+ .je''�' "p i-!.. � ':3+ :i::SA'.iiiil-e'.Y,s',u`:'iic?2.3.::i.'iYi.?y'::i`x:.W.x.'!s;-�?' 0 100000 200000 300000 400000 800000 800000 = •;�'•z-=i;;>i:A:'+.: "-.:<�';::_�,�-" Com. Enrich Llb. Fee 55% $250.000 Library Services Fund fi CONSTRUCTION FINANCING DURING CONSTRUCTION ATTACHMENT #3 LIBRARY EXPANSION PROJECT Expenses During Construction (6 month increments) 12,/91 �Z92 12/92 6/93 12/93 6/94 Total 1. Construction Payments 0 $449,267 1,958,984 2,733,725 2,645,181 34,843 $7,822,000 2. Expenditures to Date $678,000 678,000 Total Project Cost P-,30,000 3. Interest on COP Loan 0 0 0 0 104,399 223,432 327,831 Total $678,000 $449,267 1,958,984 2,733,725 2,749,580 258,275 $8,827,831 Construction Funding 12/91 6/92 12 92 6/93 12/93 6/94 Total 1. Capital Funds: Expenditures to Date $678,000 $ 678,000 Existing Fund Balance 0 $449,267 1,958,984 413,749 0 0 2,822,000 (Library Service Fund) Loan From Unused COP Funds 0 0 0 2,319,976 2,645,181 34,843 5,000,000 2. Use of Library Svcs.Fund Revenue 0 0 0 0 104,399 223,432 327,831 Total $678,000 $449,267 1,958,984 2,733,725 2,749,580 258,275 $8,827,831 Expansiorfinandng Pg.1 ATTACHMENT #4- LIBRARY SERVICE FUND REVENUES AND EXPENSES DURING CONSTRUCTION 6 MONTH INCREMENTS . LIBRARY EXPANSION PROJECT 12/91 6/92 12 92 6/93 12/93 6/94 Total Revenues: Community Enrichment Library Fee $ 30,000 30,000 30,000 30,000 52,000 52,000 $224,000 Interest Earnings 111,275 95,490 24,994 12,480 15,834 15,475 275,548 Parking 1,200 1,200 1,200 1,200 1,200 1,200 7,200 Total Revenue $142,475 126,690 56,194 43,680 69,034 68,675 $506,748 Expenses: Interest Expense on COP Loan $ 0 0 0 0 104,399 223,432 $327,831 (See Page 1) Cumulative Balance: $142,475 269,165 325,359 369,039 333,674 178,917 $178,917 ExpansionFlnancing Pg.2 • ESTIMATED LIBRARY SERVICE FUND REVENUE AND EXPENDITURES POST CONSTRUCTION LIBRARY EXPANSION PROJECT ATTACHMENT #5 (Annualized) Beginning FY 94/95 I. *Revenues Related to Library Expansion 1. Com. Enrichment Lib. Fee $360,000 2. Interest Earnings(7.58) 40,125 3. Media 43,000 4. Theater 33,000 5. Room Rental 47,000 6. Parking Meter Revenue 52,500 Total Estimated Revenue $575,625 Additional Annual Potential Revenue 7. Book/Gift Store 40,060 8. Fund-raising/Donations 80,000 Total Additional Revenue $120,000 II. Expenses Related to Library Expansion Personnel & Operating $263,625 Increased Debt Service 190,780 Total $454,405 III. Library Service Fund Reserve Total Estimated Revenue $575,625 Total Expenses - $454,405 Surplus $121,220 Cumulative Balance $178,917 Library Service Fund Reserve $300,137 *See Detailed Information On Post Construction Revenue Expansion Financing Pg.3 DETAILED INFORMATION ON POST CONSTRUCTION REVENUE 1. Community Enrichment Library Fee (CELF) ATTACHMENT #6 This fee was approved to assist the library in meeting the growing demands of library services as a result of development. It is placed into the Library Service Fund and assessed per square foot during building permit application. From 1982 through 1990, the fee ranged from 5C to 10C per square foot and annual revenue fluctuated from $30,000 to over $450,000. Since then, the City Council increased the fee to 15C per square foot. The actual average of these years is $216,378. However, if these amounts were adjusted to the current 15C per square foot, the average is $436,585 per year (see Chart A) . The projected average fees from 1992-2003 is estimated to be $273,000 (see Chart B) . The historical/projected revenues from 1982-2003 reflect an actual average of $247,000 and projected average of $347,000 (see Chart C) . Although there is a current building slowdown, major developments listed below have been projected by the Planningg Division to result in approximately 33,500,000 square feet, providing over $5,000,000 in CELF fees over the next 15 years. Although Planning originally projected over 30 million square feet of development, to be conservative, these projections were reduced by 33 percent (see Charts D and E) . These charts reflect Planning Divisions original, prior projections compared to the revised, reduced projections. It is important to note, these estimates do not include other developments such as McDonnell Douglas or the routine, normal building, additions, etc. The information below includes Planning's projections with the reduced projections of specific development projects only. COMMUNITY ENRICHMENT LIBRARY FEE (CELF) Increases from Major Development Projects Community Enrichment Commercial/ Library Fee Development Residential Industrial SF Total SF @ $.15 Units Avg.SF Total SF 2,650 2,438 6,460,700 7,320,700 $1,098,105 Holly Seacliff 4-,4QQ 2,;88 11,-000,QQ8 860,000 2,442 5,372,400 5,397,400 809,610 Bolsa Chica 4-;884 2,200 10,744 ,600 25,000 Meadowlark 600 2,000 1,200,000 122,000 1,322,000 198,300 Ascon 600 2,100 1,260,000 0 1,260,000 189,000 Waterfront 639 2,000 1,278,000 1,255,600 2,533,600 380,040 Downtown Core 800 1,800 1,440,000 250,000 1,690,000 253,500 Miscellaneous 1,200 1,800 2,160,000 152,000 2,312,000 346,800 Redevelopment 8,931 2,203 19,171,100 21,835,700 $3,27�5,3355 Total 13,123 2,215 29,082,000 2,664,600 31,747,40A -10 Expansion Financing PgA o. ommunit nrichment Library Fee Annual Revenue: Historical and Adjusted Thousands $ 1200 $ 1000 $8 0 0 .......... ....... $600 z ................. .......... z$400 $200 --J- --------- ----- ---------------------------- ---- ------- ----------------------- -- -------------- - ------ $0 82 83 84 85 86 87 88 89 90 91 92 Actual Revenue Adjusted Revenue ------- Real Average Adjusted Average ($216,378) ($436,585) o ommunity Enrichment Library Fee Projected 1992-2003 Thousands $600 $5 0 0 ................. .................. .................. ................................................ ............................. ........... $400 ........ ............. .............. ........... .................. ..................... $3 0 0 ........................ ........ -------------------------------- -------------------------------------------------------------------------- ....................... $200 ........................................ .............. ................. ...... ...... ............. $ 100 ........... ..........-- $0 92 93 94 95 96 97 98 99 00 01 02 03 Projected Revenues ....... Average ($272,916) Total for 1992-2003: $3,275,000 Community Enrichment o . Library Fee Annual Revenue: Historical and Projected Thousands $ 1200 $ 10 0 0 _ ____---__ - .---................................................_..........................._........__....._.._.._......._._.__....................._. $800 _. __..___._..._..............................._..................._..._._...._._.......__......._.__._._.___.____._._.__.._..._......._....._.._..._._.__.___._..._._.___..._-._.............._........__..__.._._.__..___.____.._._........_.__.__. $600 ----._..___._...._......_...._ .._.___._.._.___.____ _......_. ___.__._._._..___..._._.__....__..____......_......._... _......._.__.._...__....._ _._..._.__._..._._._.._.._._._ $4 0 0 ---- ---- ----------- --- ----------------- - ---------------------------- ---------------------------------------- ------ $200 $0 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 -9 Actual Rev. -6 Projected Rev. Adjusted Rev. ---`--- Act.-Prof. Avg. Adj.-Prof. Avg. ($247,217) ($347,311) OD , Major and Community Enrichment Library Fee (Revised) Holly Seacliff "-. 6 7.32 Bolsa Chica - T2 6Z 5.40 Meadowlark - 1 .32 i Ascon 1 .26 Waterfront 2.53 j Downtown Core 1 .69 Misc. Redevelopment 2.31 Total 3�g-! 21 .8 0 1Q 20 30 40 50 Square Feet (in Millions) Revised Residential BM Revised Com./Indust. Q Prior Planning Division Projections CELF : 0$.15 1-16;6�3�1, 90 $3,276,000 O CommunityEnrichment Library Fee ( Revised) Thousands by Fiscal Year $600 kv Ow om om o O m , h O m $500 o CD "' M M °' _ O F V W1 d' v>W v} O M M M S/} O $4 0 0 IA--'_.49 O m O m M O F • O d' w N O ,--�-- 0 v w o 0 ao o CD o O m in 0 o un to CD O yr 41 $ 10 0 $0 92 93 94 95 96 97 98 99 00 01 02 03 ® Revised CELF Prior Projections Total. for 1991-2003: $3,276,000 2. Interest Earnings All revenues indicated for items 1 - 6 will be placed into the Library Service Fund. Interest earnings on the cumulative fund balance has been estimated using an assumed interest rate of 7.0% for 1992/93, 7.5% thereafter. 3. Media Revenue Current Projected Increase Videos $21,500 $26,875 $ 5,375 Compact Discs 21,000 26,875 5,875 Computer Stations 6,600 35,750 29,150 Fines 9,000 11,500 2,500 Equipment 1,900 2,000 100 TOTAL $60,000 $103,000 $43,000 The increased circulation and revenue for videos and compact discs is a result of the expanded space for growth of the collection, improved visibility of the Media Department due to relocation to the main entrance and the increase in operation hours per week from 48 to 60 hours (25% increase) . Ten additional computer stations will be added to the current three to meet patron demand for personal computers. The computer stations currently net $2,200 each. We anticipate a 25% increase in usage due to the increased visibility and the expanded hours of service. Therefore, it is anticipated that each of the 13 stations will generate $2,750 per unit. One 20 hr. temporary clerk will be added to staff expanded hours and has been included in the personnel cost. Computer stations will cost $2,800 each to purchase and have been capitalized over a three year period. 4. Theater The theater will be primarily used for revenue generating performances and nonprofit meetings. The Huntington Beach Playhouse will occupy the theater one third of the time for 60 performances and the remaining two thirds will be rented out to other performing arts programs, business meetings, seminars, etc. Huntington Beach Playhouse Rent: The Huntington Beach Playhouse is currently paying approximately $8,000 at its present location, Gisler School. The playhouse would agree to an additional $2,000 "rent" to be relocated to the library due to the upgraded facility, parking and the prime location. Ticket Sales: In addition, a city fee of $1.10 (or more) could be charged per ticket. 60 performances x 150 tickets per performance (average) . 60 Performances x 150 Tickets per performance (average) 9,000 Tickets x 1.10 City Fee $ 9,900 Ticket Sales Revenue Expansion Financing PgS Other Uses: Twelve similar theaters were surveyed. Based on that information, we have conservatively projected the theater would generate $20,000 per year. Again, the Playhouse will use the theater one third of the time. The other two thirds would be used by other organizations. We projected the revenue to be 2/3 of $20,000 for a total of $13,320. Total Playhouse $19,900 Rent $10,000 Tickets $9,900 Other Uses 13,320 $33,220 5. Room Rental Current Projected Increase Talbert Room $13,320 $13,320 $ -0- Balboa Room 6,680 6,680 -0- New Meeting Rooms A -0- 6,680 6,680 B -0- 6,680 6,680 C -0- 13,320 13,320 D -0- 13,320 13,320 E -0- 6,680 6,680 TOTAL $20,000 $66,680 $46,680 Currently the library has two meeting rooms generating $20,000. The expansion rooms are various sizes and revenue is projected based on the uses of the current rooms. Due to lack of convenient parking, and ooking availability, clients have been turned away. The expansion includes five additional rooms with catering facilities and convenient parking. City sponsored organizations are not charged. Twenty hours a week for a temporary clerk have been included under personnel costs for room reservations. 6. Parking Meter Revenue The expansion parking plan allows for 705 parking spaces by eliminating a section of Talbert Avenue between Golden West and Gothard Streets. Additionally, the plan provides for more access to Central Park and outdoor cultural activities. Of the 705 spaces, 100 will be metered at .$25 per hour. The current six library meters net $525 per meter per year. The Parking Meter revenue projected for the post construction period is $52,500 per year. ($525 per meter x 100 meters.) 7. Book and Gift Store The existing Gift and Book Shop is remotely located in the Central Library. It generates approximately $50,000 gross, $25,000 net annually with a square footage of 700 square feet. In the new location it is prominently located near the exit with over 1,250 square feet. With this new location and increased marketing capability, it is expected that the gross would be $75,000 or a net of $40,000. Expansion Financing Pg.6 8. Donations* 4 The library has three support groups, in addition to other organizations which raise revenue for the library. Based on the last five years of fund-raising, the following is an annual average of these fund-raising activities: A. Friends of the Library $40,000 Book Sales - $30,000 Programs - $10,000 B. Library Patrons Foundation - $30,000 Concours d'Elegance - $10,000 Valentine "A Taste of Huntington Beach" - $10,000 Donations - $10,000 C. Friends of the Children's Library - $5,000 D. Miscellaneous donations - $5,000 Total Estimated Annual Donations: $80,000 *Excludes special bequests, trusts designated for Expansion Project Building Fund. Expansion Financing Pg.7 -I oF�) /Z a'." 0 REQUEST FOR CITY COUNCIL ACTION July 29, 1991 Date Submitted to: Honorable Mayor and City Council �— Submitted by: Michael T. Uberuaga, City Adminis atc u." Prepared by: Ron Hayden, Director, Library es Subject: PUBLIC FACILITIES CORPORATION AND LIBRARY EXPANSION ApPgOVED B.Y GiITY ©®'fiNCIL Consistent with Council Policy? [ ] Yes [ ] New Policy or xcoptieR------ oldtt+ Statement of Issue, Recommendation,Analysis, Funding Source,Alt s,AMER1� STATEMENT OF ISSUE: In accordance with the lease agreement between the City and the Public Facilities Corporation, the City is required to formally obtain approval from the Public Facilities Corporation Board of Directors to expand the Central Library. RECOMMENDATION: Request written consent of the Public Facilities Corporation to expand the Central Library. ANALYSIS: The lease for the Library is held by the Public Facilities Corporation. Section 8 of the Library Lease and Sublease agreement requires written consent of the Public Facilities Corporation prior to making changes or additions to the Library. The Library Expansion will add 42,000 square feet to the Central Library, including a children's wing, redesigned circulation area, media technology center, Friends' Book and Gift Shop, five meeting rooms, kitchen, theater and redesigned parking. The Library Expansion will go to bid for a contractor in the Fall, 1991. Groundbreaking is expected to commence December, 1991. It is anticipated that construction will be completed Summer, 1993. The estimated project cost is $8,500,000 of which approximately $5,000,000 will be financed from the estimated $10,213,000 prior proceeds held in reserve since Council eliminated the North of the Pier Parking Structure Project. It will be recommended that the $5,000, 000 be loaned to the Library Expansion Project in FY 91/92. The Library Expansion Project would repay the loan and project costs from increased revenue through meeting rooms and theater rental, community enrichment library fee, media, interest, and parking meters derived from a special account called Library Services Fund. Future debt for other capital projects may be issued using the library as the funding source to repay the fund proceeds. MISC.04 PI O 5/85 t FUNDING SOURCE: N/A ALTERNATIVE ACTION: 1. Do not expand the Central Library ATTACHMENTS: 1. Library Lease and Sublease, Section 8 MTU:RH:gc MISCO4 i F LIBRARY LEASE AND SUBLEASE Dated as of September I, 1972 "Section 8. Changes after Completion. The City shall not make any changes or alterations in the Facilities and shall not make any additions thereto except with the written consent of the Corporation and upon such terms as may then be agreed upon. This shall not prevent the City, without obtaining the Corporation's consent, from temporarily affixing personal property to the Facilities, provided the City shall repair any damage thereto when such property is removed." 4177j p l Yrr t�l.i� RLt'D Mt'iIL T./: a#.1i47 %4VVL4A"P,a4 40 AVJ•Vi' 4VX, W&W official business of the City • CITE r HUNTINGT©N BEACH -�.-.-...••� �, of Huntington Beacr-, as contem-P 4 I �e of the City Clerk EXEMPT _dated under Government Code ��'P`�► PUBL/C��c P. O. Box 190 C 1 O Sec. 6103 and should be recorded ntington Beach, Calif. 92648 free of chnrr-e. Huntington Beach Public Facilities Corporation IM�OA�!!Q�Q'U�Q , Post Offi cg Box I?0 fluntington Beach, California 92648 r ovRss+sR x�,�sa � T NOTICE OF COMPLETION ! cAl��t,aa�P CONFORMED COPY Not Compared with Original BOARD OF DIRECTORS William Armstrong RECORDED IN OFFICIAL RECORDS R.Alley Boyce OF ORANGE COUNTY, CALIFor— Urry Curran Min. Robert N.Polly �(0 Past 10 A M APR 241975 DaTa Ward NOTICE IS HEREBY GIVEN THAT: !•WYLIE CARLYLE,County Recoj_, 1. The undersigned is owner of the interest or estate stated below in the property hereinafter described. 2. The full name of the undersigned is the Huntington Reach Public Facilities Corporation. 3. The full address of the unders.i<gned is 2000 Main Street, P.O. Box 190, Huntington Beach, California, 92648. 4. The nature of the title of the undersigned is Lessee. 5. A public "work of improvement" , also known as Central Library and Cultural Resource Center, on the property hereinafter described was completed on April 18,1975. 6. The name of the contractor for such public "work of improvement" was Swinert,:: . Walberg Company. 7. The property on which said "work of improvement" was completed is in the City of Huntington Beach, County of Orange, State of Califor- nia, and is described as follows: That portion of the South-half (S�) of the Southwest one quarter (SW4) of Section 26, Township 5 South, Range 11 West, and that portion of the Northwest quarter of the Northwest quarter of Section 35, Township 5 South, Range 11 West, partly in the Rancho Las Bolsas and partly in the Rancho La Bolsa Chica, County of Orange, State of California, as shown on a map recorded in Book 51, page 13 of Miscellan- eous Maps, in the office of the County Recorder of Said County described as follows: Beginning at th8 Southwest corner of said section 26, thence North 89 20 ' 21" East 50.00' feet along southline of said Section 26 to a point on a line parallel with and 50. 00 feet easterly, measured at right angles, from the west line of said Southwest one-quarter (SW4) ; thence �!' Y G� ;IL;Nli N�i Oi 4 i;EACd -2- North @° 5Q a �21' Nest 39, 00 feet algng said line tp +fi TRUE POINT, Of EGI TNl T4 'k pnee continuing along said line North 0 . 50 ' 12" West 1290.57 feet to a point on the North line of the South one-half (Shy of said Southwest one-quarter (SA) ; thence North 89 21' 27" East 610. 00 feet along said line to a point on the East line of the Wes8 20 acres of said South one-half (Sh) ; thence South 0 50 ' 04" East 673. 85 feet along said eas8 line of the West 20 acres to a point; thence North 89 09 ' 55" East 23. 57 Feet to a point on a tan- gent curve concave to the Southwest having a radius of 420. 00 feet; thence southeast8rly along said curve through a central angle of 40 40' 27" an arc distance of 298. 16 feet to a point on a tangent curve concave to the southwest having a radius of 160 .00 feet; thence south8asterly along said curve through a central angle of 49 30 ' 00" an arc distance of 138 .23 feet to a point on a tangent line; thence South 00 39 ' 38" East 437 .00 feet to a point on a line parallel with and 10. 00 feet southerly measured at right angles grom the south line of said Section 26; thence South 89 20' 22" Wes8 342. 50 feet along said line to a point; thence North 37 08 ' 10" West 53. 11 feet to a point on a line parallel with and 30. 00 feet North measured at right $ngles from south line of said Section 26; thence South 89 20' 22" West 587 .71 feet along said line to the TRUE POINT OF BEGINNING. 8. The street address of said property is 7111 Talbert Avenue, Hunt- ington Beach, California. 9. City of Huntington Beach is the owner in fee of said property. Dated at Huntington Beach, California, this 23rd day of April, 1975. HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION BY �� 1p/TE'S APPROVED AS TO I©R1[i a DON P. BONpA City torney cuz B De uty City A rney Ci t OF H'_JNTIi'dCTC N BEACH STATE OF CALIFORNIA ) SS COUNTY OF ORANGE ) ROBERT N. POLLY , being duly sworn, says: that he is the Acting President of the HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION, the corporation that executed the fore- going Notice as Owner of the aforesaid interest or estate in the property therein described; that he makes this verification on behalf of said Corporation; that he has read said Notice and knows the contents thereof, and that the facts therein stated are true. Rob rt N. Polly, Acting President of the Huntington Beach Public Facilities Corporation SUBSCRIBED AND SWORN TO before me on 4 Notar Public in and for said State �; SWINERTOr/& WALBERG CO. Im !y Lindgren S W' on,Inc. 1 6 3 1 BEVERLY BOULEVARD • LOS ANGELES. CALIFORNIA 90026 uff Since lees C.S. L. 92 213 624-7684 January 22, 1974 Mr. Don Kiser Huntington Beach Public Facilities Corporation P. O. Box 190 Huntington Beach, California 92649 Re: Huntington Beach Library, Our Job No. 72-37 Dear Don: Enclosed please find three (3) copies of AMENDMENT TO AGREEMENT BETWEEN OWNER AND PRIME CONTRACTOR FOR, CONSTRUC`1'ION OF THE HUNTINGTON BEACH LIBRARY AND CULTURAL AESOUCE CENTER. Also, please find Rider No. I to labor and material bond from The Travelers Idemnity Company, together with a cover letter from the Travelers dated January Zl, 1974, stating that payment will be made re- leasing retention to Swinerton & Walberg Co. up to Five Percent (5%) of the value of the work and such consent in no way invalidates any of the terms of our bond or the contract. We are returning three (3) copies of the Amendment as revised by you on page two (2), paragraph C, line one (1), and initialed by Rod Larson. You evidently kept one (1) copy of the four (4) we originally transmitted. We trust this is all that will be required to enable us to recoup Ninety- five Percent (95%) of expenditures made for the pre-purchase of the materials on the subject project. Very truly yours, SWINERTON & WALBERG CO. {r ti Bert Maxt ed, Protect Manager BM:Ih Encl. cc: Mr. R. Larson Mr. D. Leyman Mr. D. Neutra Mr. E. Elwood Mr. R. Hart lc r�r� Pt'BLI r 4 Huntington Beach Public Facilities Corporation Z OVK R RN ATUD 27.10 H Post Office Box 190 Huntington Beach, California 92648 ► OVtM��R 2y,f�T January 31, 1974 CAL IF 010" BOARD OF DI WZMRS Mom Amotraq R.Dudley Boyce IAMY Coma Robert N.PoBy Do"Wed Swinerton and Walberg 1631 Beverly Boulevard Los Angeles, Ca. 90026 Subject: Central Library CC-149 Gentlemen: Transmitted, herewith is your copy of the amendment to the construction contract which was approved and executed by the Board of Directors of the Huntington Beach Public Facilities Corporation of January 30, 1974. I will appreciate your cooperation with Mr. Elwood in expediting the details regarding purchased, but not incorporated, materials such as shipping receivers, invoices, storage locations, bills of sales, and for other confirmations of ownership and designation to the library project guarantees. Please advise me at the earliest possible date when you or your subcontractor will need space in the previously discussed warehouse. Very truly yours, Donald W. Kiser Asst. Secretary HBPFC DWK:el APPROVED BY CITY COUNCIL Vzlgd REQUE T FOR CITY COUNCIL AC i- � - c1 Y CLfftKK Date April 2. 1990 Submitted to: The Honorable Mayor and City Council �u Submitted by: Michael T. Uber a, City AdministratorW�Cl/� c Prepared by: Jim B. Engle, ing Director, Community Services na ,� Subject: CENTRAL LIBRAR LITERACY AREA REMODELING 4 Consistent with Council Policy? [ ] Yes [ ] New Policy or Exception Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachment STATEMENT OF ISSUE The United Way donated funds to the Literacy Volunteers of America to be used to remodel an existing storage area at the Central Library for use in tutoring reading and writing. RECOMMENDATION Approve the acceptance of $4,692 donated by the Literacy Volunteers of America to the city and appropriate $4,692 in Account No. ELE-CS-391-6-31-00 to be used for remodeling an area at the Central Library for literacy tutoring. ANALYSIS An area adjacent to the Literacy Office at the Central Library was to be used as a photography lab. The lab was phased out due to high cost and low demand and has been used subsequently for storage. The literacy program needs more space for training tutors and tutoring adults and children who have reading difficulties. The United Way donated funds to the Literacy Volunteers of America to be used for remodeling of this space. The remodeling includes removing interior walls, sinks and cabinets. There will also be installation of electrical outlets, ceiling lighting and carpet. A licensed contractor, approved by the city's purchasing division, will be used to complete the project. The project is totally funded by the donation; no city funds are required. FUNDING SOURCE Literacy Volunteers of America donation. No expenditure of city funds is required. ALTERNATIVE ACTION Reject donation and remodeling. ATTACEMENTS Donation receipt from Literacy Volunteers of America Room layout to JBE:cs P10 4/84 • CASH RECEIPT Fepfl CIT'y OF bLNTINQTON MAO P.O.BOX 711 HUNTINGTON BEACH,CALIFORNIA 82648 (714)5383200 HUNTINGTON BEACH CITY TREASURER-DONALD L WATSON f 1 DATE ISSUING DEPT. -^ /I---?affz::�y RECEIVED FROM ADDRESSw W. P". FOR A occxJ 1,-T AM©IiNT 13ECE1VEi? �' `` CASH- � CHECK RECEIVED BY REVHJUE TR' ND ACCOUNT DEPT. DIV. AMOUNT '- FINANCE APPROVAL INITIAL TOTAL $ C a is AMOUNT RECEIVED 540674 ISSUING DEPARTMENT �VI Ii,Y�hL till', L. �— �BU ; 1 �251'M ; I14�4tl�'ltl�-► '114 �dU 4d83;;F 2 il' 8 0 • + 1. s Area• ww�l WWI1 � ' w/drrr 60.S1h1�' 5'NAct IWEA i✓ar�r�iop Area. J ' A��'�.r` Grnealogy WarkAG? 17� A rao. r�sTA t-SAT-(*K a� aLEcr9%cA(. vuT�ETs INTEIA(oQ WA(.LS IWorkrAof S r#4 kS Area �1�31KETS 03-20-90 1 : 11F'M FOG REQU O.. E%.. FOR CITY COUNCIL. ACTION Date November 6, 1989 Submitted to: Honorable Mayor and City Coilnci 1 VO 3 Submitted by: Paul E. Cook, City Administrator t— R Prepared by: Paul E. Cook, City Administrator�,/)�" AA- Subject: CENTRAL LIBRARY EXPANSION, PHASES II AND III .r.r+..��� -� Consistent with Council Policy? [ ] Yes [ ] New Policy or Exception J Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions, Attachments: STATEMENT OF ISSUEt�- ,t " '2`•` '� ,��rt ` cam,;_` G �t �� The City Council has requested a reevaluation of Phases II and III of the Central Library expansion. RECOMMENDATION 1 . Approve the concept of financing the unfunded portion of the cost of all three phases of the expansion to the Central Library by the issuance of Certificates of Participation (long term C.O.P. debt) . 2. Authorize a formal appraisal of the library facility by an M.A. I. appraiser in order to issue the C.O.P. debt. 3. Appropriate funds in the amount of $151 ,000 from the "Fund Balance Reserved for Children' s Wing" and authorize staff to prepare an amendment to the architectural services contract with Anthony & Langford, AIA, in that amount, to design all three phases of the expansion to the Central Library. 4. Instruct staff to prepare a phasing plan for the construction of the library expansion improvements so that the increased debt service from the C.O.P. debt is phased to the maximum financial advantage to the city. ANALYSIS At its meeting of October 16, 1989 the City Council voted to bring back Phases II and III of the Library Expansion Project for further consideration. The attachments summarize the project and related costs by phase and show both the previously approved work and costs. Also provided are a description of what remains to be approved, as well as a summary of sources of funding. Presently, the city's architect is proceeding with the preparation of plans and specifications for the children's wing of the library. FUNDING SOME The cost for architectural fees and library appraisal would come from P.F.C. funds set aside for the library expansion project. oe P10 AM& REQUEST FOR CITY COUN' ACTION NOVEMBER 6, 1989 CENTRAL LIBRARY EXPANS.,N, PHASES II AND III PAGE TWO ALTERNATIVE ACTION Reaffirm the City Council action at the 8/7/89 meeting which was "to approve Alternative Action No. 1 to direct the architect to design Phase I only and to assure design services include the Phase II substructure as described by our City Administrator, including atrium area and 231 on-site parking spaces; and appropriate additional $38,500 to cover architectural fees for Phase I." ATTACHMENTS A - Recap of Phases Cost Estimates B - Sources of Funding C - Phased Cost Estimates D - RCA of August 7, 1989 E - Statement of Action for August 7, 1989 City Council Meeting PEC:mb 0706E/76-77 ATTACHMENT A r CITY OF HUNTINGTON BEACH CENTRAL LIBRARY EXPANSION RECAP OF PHASED COST SSTINATES OCTOBER 20, 1989 PHASE I EXTRA WORK ADD'L EXTRA MW PHASE II PRASE III TOTAL Council Approval Council Approval 8/07/89 9/28/'89 Site Development 1101000 -0- -0- 110,000 Included in 220,000 Talbert Realignment Building Construction 2,678,610 560.450 157,000 1,708,050 -0- 5,104,110 Talbert Realignment -0- -0- -0- -0- 1,127,500 1,127,500 Furniture A Equipment 122,485 -0- -0- 300,795 -0- 423,280 Architectural - Eagineering Fees 290,000 38.500 49,347 139,003 11,550 528.40.. TOTAL 31201,095 598,950 206,347 2,257.848 1.139,050 CUKTLATIVE TOTAL 3,800,045 4,006,392 6,264,240 7,403,290 7,403,290 Estimated Funds on Hand (3,773,850) (3,773,850) (3,773,850) (see Attachment B) Balance Needed 232,542 2,490,390 3,629,440 3,629,440 ATTACHMENT B CITY OF HUNTINGTON BEACH CENTRAL LIBRARY EXPANSION OCTOBER 1989 SOURCES OF FUNDING ( ESTIMATED) 1 . Irby Park Surplus $1 , 500 , 000 2 . Building Fund (Council appropriations) 1 , 387 , 850 3 . Estate Bequest (LPF) 376 , 000 4. Parking Phase I Park Acquisition 292, 000 & Development Fund 5. Donations (Library, Friends of the 218, 000 Library, Friends of the Children' s Library, Library Patrons Foundation, Rotary Club) TOTAL $3 , 773 , 850 ATTACHMENT C • �ws ANTHONY AND LANGFORD AIA ARCHITECTURE • ENGINEERING • PLANNING 16152 Beach Blvd., Suite 201, Huntington Beech, California 92847 (714)848-1818 CITY OF HUNTINGTON BEACH CENTRAL LIBRARY EXPANSION Phased Cost Estimates January 30 , 1989 Phase I - CbI ldren's Library, Circulation Area, Talbert Avenue Realignment (design only) and Parking (design only) ITEM TOTAL Site Development $ 110,000 Building Construction Children's Programs 21326,610 Books, Study Space, Computer & Technology Room, Storytelling Area, Visual Education Area, Educational Media, Reading Clinic, Toddler/ Pre-School Area Circulation Area 362.000 Work Stations, Book Return, Pre-Shelving, Book Store, Lobby _Talbert Realignment & Parking 0 Architectural , Civil Engineering and Landscape Design for realignment of Talbert Ave. and 845 parking spaces north of Talbert Ave. included Subtotal Phase I Construction 2,788,610 Interior Furnishings and Equipment 122,485 Subtotal Phase I Construction & F & E 2,911,095 Architectural/Engineering Fees 290,000 TOTAL PHASE I 3,201.095 Page 1 of 3 Attachment C CITY OF HUNTINGTON BEACH CENTRAL LIBRARY EXPANSION Phased Cost Estimates January 30. 1989 ITEM Tom Extra Work Additional Scope per program to be constructed in Phase I (including captured Atrium Area not included above) - Construction $ 254,925 Architectural/Engineering Fees 22,500 Additional Parking for approx. 940 cars to be constructed in Phase I Construction 305,525 Architectural/Engineering Fees 16,000 Subtotal Extra Work 590,950 TOTAL PHASE I A EXTRA WORK - COUNCIL APPROVAL 8/07/89 $3,800,048 Additional Extra Work Dower level enclosure, lower level design, lower level storage and meeting rooms and Talbert Room access - Construction 157.000 - Architectural/Engineering Fees 49,347 Subtotal Extra Work 206,347 TOTAL ADDITIONAL EXTRA WORK -- COUNCIL APPROVAL 9/28/89 $ 206,847 Page 2 of 3 Attachment C CITY OF HUNTINGTON BEACH CENTRAL LIBRARY EXPANSION Phased Cost Estimates January 30, 1989 Phase II - Meeting Rooms and Auditorium ITEM TOT St ,ee Development $ 110,000 BUIlding Constrg2tLor} Completion of Lower Level 1,708,050 Subtotal Phase II Construction 11818,050 Interior Furnishings and Equipment 300,795 Subtotal Phase II 4 F & E 2,118,845 Architectural/Engineering Fees 139,003 TOTAL PHASE II $2,257,848 Phase III - Construction of Realignment of Talbert Avenue and Completion of Parking Master Plan ITEM TOTAL 1) New Intersection 2) Approximately 2,000 ft. of Street Realignment 3) New Parking Lots (725 spaces total, including axisting parking) - Construction $1,127,500 Architectural/Engineering Fees 11,550 Subtotal Phase III 1,139,050 TOTAL PHASE III $1,189,050 GRAND TOTAL $7►403,290 Page 3 of 3 ' REQUEL FOR CITY COUNC._._ ACTION ATTACHMENT D Date August 7 , 1989 Submitted to: The Honorable Mayor and City Council Submitted by: Paul Cook, City Administrator Prepared by: Melvin M. Bowman, Community Services Director Subject: CENTRAL LIBRARY EXPANSION Consistent with Council Policy? [ ] Yes [ ] New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: STATEMENT OF ISSUE: Conceptual drawings with phased costs for the expansion of the Central Library are complete . Decisions on proceeding with this project and funding of the project need to be made. RECOMMENDATIONS: 1 . Approve the conceptual drawings for all three phases of the expansion to the Central Library. 2 . Approve the concept of financing the unfunded portion of the cost of all three phases of the expansion to the Central Library by the issuance of Certificates of Participation ( long term C.O.P . debt) . 3 . Authorize a formal appraisal of the library facility by an M.A. I . appraiser in order to issue the C.O.P. debt. 4 . Appropriate funds in the amount of $233 , 500 from the "Fund Balance Reserved for Children' s Wing" and authorize staff to prepare an amendment to the architectural services contract with Anthony & Langford, AIA, in that amount, to design all three phases of the expansion to the Central Library. 5 . Instruct staff to prepare a phasing plan for the construction of the library expansion improvements so that the increased debt service from the C.O.P. debt is phased to the maximum financial advantage to the City. ANALYSIS: On July 5 , 1988 , the City Council approved the "selection of Anthony & Langford to prepare plans, specifications, and cost estimates for the expansion of the Central Library for a fee of $290 , 000 . At the study session of December 19, 1988 , Council requested that staff review the conceptual plan for the Central Library Expansion Project to explore the possibility of phased implementation and provide cost estimates of these phases ( see Exhibit A) . These phases would include: Phase I - children' s programs, circulation and atrium area and limited parking; Phase II - meeting rooms and auditorium; and Phase III - parking master y plan and realignment of Talbert Avenue. As directed by Council , the following are the recommended library expansion phases : Estimated Cost Phase I $3,800,000 Add 32 , 070 square feet of building area for children' s programs, ( including books , circulation, atrium, and 231 architectural additional parking spaces . This phase engineering fees, will also include the design of plans construction, and specifications for the parking furniture, master plan and the realignment of equipment and Talbert Avenue. contingency) Phase II $2,500,000 Includes a 400 seat auditorium and four meeting rooms to accommodate community meetings, seminars , receptions, fund-raisers, children' s programs , musical recitals , and other community functions . There has been an increased demand in library meeting room space which the present facility cannot accommodate. This would increase the library by 16 , 990 square feet for a total expanded building of 49, 060 square feet. The auditorium was recommended during the preliminary designs of the Central Library in 1972 and has been included in the unfunded Capital Improvement Budget since 1984 . Phase III $1,200,000 Realign Talbert Avenue and construct the total library master parking plan to coincide with the complete development of the Central Library . This would include a total of 725 spaces to accommodate Phases I & II . Total : $7,500,000 FUNDING SOURCE• See Exhibit B for analysis of available funding for overall expansion project and description of proposed method of financing the unfunded portion of the cost through the issuance of Certificates of Participation. Staff feels that this method of financing is appropriate for this facility which provides an essential service to the City. Although the final decision to actually issue these certificates should not be made until next year ' s budget is prepared, it appears that additional revenues resulting from the expanded facility could offset much of the additional burden on the general fund. ALTERNATIVE ACTIONS: 1 . Direct architect to design Phase I only, including atrium area and 231 on-site parking spaces; and appropriate additional $38 , 500 to cover architectural fees .for Phase I . 2 . Direct architect to design Phases I & II only, including meeting rooms and 400 seat auditorium, and appropriate additional $223 ,000 only to cover architectural fees for Phases I and II . 3 . Enhance the auditorium and incorporate a playhouse theater to accommodate the Huntington Beach Playhouse (see Exhibit C) which would cost approximately $400 , 000 . 4. Deny approval of conceptual drawings and direct staff to resubmit alternative expansion plans . ATTACHMENTS: 1 . Location Map 2 . Exhibit A - Itemized Cost Estimates of Phases 3 . Exhibit B - Analysis of C.O.P. funding 4. Exhibit C - Itemized Cost Estimates for Playhouse Theatre 5 . Plan of Proposed Expansion 6 . Phase I Site Plan 7 . Phase II Site Plan 8 . Phase III Site Plan PC:MMB:RH: gc I x HUNTINGTON BL,ACH CEN-TRAL LIBRARY ^ PARKS _MAIN i FNANCE --- - YARD ra FE V i T ALBERT LAKE j ADVENTURE PLAYSROUND CD1 O LIB- N nir �n I II i li _ I T/1-j B E R T -4 - zi s - - - 1 riANTI- ANY AND , LANGFOVID AIAv ExHIBIT A A.RCHi rECTURE • ENGINEE,-aNG • PLANNING 16152 Beach Blvd., Suite 201, Huntington Beach, California 92647 (714) 848-1818 CITY OF HUNTINGTON BEACH CENTRAL LIBRARY EXPANSION Phased Cost Estimates January 30, 1989 Phase I — Children's Library, Circulation Area, Talbert Avenue Realignment (design only) and Parking (design only) 4 ITEM AREA/S.F. COST/S.F. TOTAL Site Development $ 1001,000 Building Construction Cbildren's Programs 16,270 130 2,115,100 Books, Study Space, Computer & Technology Room, Storytelling Area, Visual Education Area, Educational Media, Reading Clinic, Toddler/ Pre—School Area Circulation Area 6,400 50 320,000 Work Stations, Book Return, Pre—Shelving, Book Store, Lobby Talbert Realignment. & Parking 0 Architectural, Civil Engineering and Landscape Design for realignment of Talbert Ave. and 545 parking spaces north of Talbert Ave. included Subtotal Phase I Construction 2,535,100 Interior Furnishings and Equipment 111,350 Subtotal ?haze I Construction & F & E 2,646,450 Contingency 0 10% 264,645 Architectural/Engineering Fees 290,000 TOTAL PHASE 1 $3,201,095 y ITEM AREA/S.F. COST/S.F.- TOTAL Extra Work Additional Scope per program to be constructed in Phase I (including captured Atrium Area not included above) — Construction 9.400 25 $ 230.000. - Architectural/Engineering Feeo 22,500 Additional Parking for approx. 231 cars to be ` constructed in Phase I - Constmction 276,000 - Architectural/Engineering Fees 16,000 Subtotal Extra Work 544,500 Contingency @ 10% 5 4,45 0 Total Extra Work 598,950 TOTAL PHASE I & EXTRA WORK $3.800.045 Phase II - Meeting Rooms and Auditorium, ITEM AREA/S.F. COST/S.F. TOTAL Site Development $ 100,000 Building Construction Completion of Lower Level 16,990 100 1,699,000 Subtotal Phase II Construction 1,799.000 Interior Furnishings and Equipment 273.450 Subtotal Phase 11 & F & E 2,072,450 Contingency @ 10% 207,245 Architectural/Engineering•Pees: *Programming and Schematics $28,000 *Design Development 42,500 *Construction Documents 77,100 Bidding & Contr. Admin. 36,900 184,500 184.500 TOTAL PHASE IX w $2,464.195 *Architect recommends that these services be included in Phase I design. 2 , JPN 31 '89 15:41 H&L/toLH Phase III - Construction of Realignment of Talbert Avenue and Completion of Parking Master Plan I_TEM TOTAL 1) New Intereection 2) Approximately 2,000 ft. of Street Realignment 3) New parking Lots (725 spaces total, including existing parking) - Construction $1,025,000 -- Architectural/Engineering Fees 10,500 Subtotal Phase 111 1,035,500 Contingency @ 10% 103,550 TOTAL PHASE III $1,139,050 3 EXIJIBIT B. CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH To PAUL E. COOK From ROBERT J. FRANZ City Administrator Deputy City Administrator Subject LIBRARY FUNDING PROPOSAL Date JULY 19, 1989 ou have requested that I review the possibility of issuing debt to finance the proposed library capital provements. I requested the assistance of Stone and Youngberg, the City's underwriters and financial dvisors, in this regard. As you know, the estimates of the Library Improvement Project assume three if ferent alternatives regarding scope of development. Funding sources that have been identified to date, are xcess PFC funds of $1,650,000 plus $600,000 from fund raising (estimated) for a total of $2,250,000. The cost f improvements is estimated to range from $3,800,000 to $7,400,000 depending on which alternative is chosen. he attached analysis from Stone and Youngberg provides a method to finance, from a debt issue, the unfunded ortion of the project utilizing the Library as the security for the financing. The basic concept utilized in the ttached analysis is to extend the current annual debt service payments ($399,000 per year) from the scheduled xpiration date in 1998 to the year 2019. Utilizing this concept, the following data provides the estimated new ebt service for the three alternatives LIBRARY C.O.P.'s Analysis of Alternatives Proceeds Available From New New Annual Old Annual Increased/Decreased ternative Cost Funds Debt/Issue Debt Service Debt Service Debt Service 1 $3,8007000 $2,2501000 $1,550,000 $ 329,000 $ 399,000 $ - 70,000 2 6,300,000 21250,000 4,050,000 560,000 399,000 161,000 3 7,400,000 2,250,000 5,150,000 6601000 399,000 261,000 he new debt service would be reduced if donations/fund raising results in greater contributions than assumed, r if other funding sources are used. f the City were to select Alternative 1 and decided not to construct the improvements included under lternatives 2 or 3, then it would not be advisable to issue debt. This is because $2,250,000 is already vailable and the total cost of Alternative I is $3,800,000, therefore leaving a balance of $1,550,000. If only 1,550,000 were needed, I would recommend finding funds in the current budget for the project. f Alternatives 2 or 3 are selected, then long term debt (C.O.P.'s) provides a viable way of financing the nfunded portion of the improvements. As part of the financing procedure, we would need to obtain an M.A.I. ppraisal of the Library Facility (2 - 3 months) and prepare legal documents to issue the debt. Since funds are vailable for the design of the improvements, it would not be necessary to approve the legal documents until esign is complete and the construction bids are received (similar to t�e recent approval of Parking COP's fter receiving construction bids). This allows the City to delay any increase in annual debt service payments ntil funds are actually needed for construction. If it is necessary to phase the impact of increased annual bt service over 2 or 3 years, we could bid the construction of the improvements in phases. Under this cenario, the COP issue could either be issued in phases or issued in the total amount with phased "releases" hick would enable interest earnings proceeds to finance a portion of the increased annual debt service, yments. These financial issues can be dealt with in detail in the upcoming months if the concept of using OP debt is approved (see Recommended Action No. 5). LIBRARY FUNDING PROPOSAL The City General Fund is obligated to make the annual debt service payments under this financing approach. While the Library operation is not a "revenue producer" for the general fund (in terms of comparing total library related revenues and expenses), the proposed capital improvements would create opportunities for increased library related revenues from room rentals, auditorium rentals, art/book shop sales, and media room revenues. The Library staff has estimated potential increased general fund revenues from these sources as follows: r Annual Revenue Revenue Current Potential Increase Room Rentals $ 10,000 $ 50,000 $ 40,000 Auditorium Rental 0 20,000 20,000 Art & Book Shop 25,000 50,000 25,000 Media & Technology Room 50,000 100,000 50,000 Total $85,000 $220,000 $135,000 In addition, the current developer fee for Community Enrichment (Library) is 100 per square foot of new development and could be increased to 150 per square foot under existing authority of the Huntington Beach Municipal Code. Increased revenue from this fee depends upon`the level of development activity in the City in the future. Based on the projected level of development, this increase would generate $150,000 to $200,000 per year additional general fund revenue. Lastly, you should note that utilizing this asset (Library Facility) as the security for a debt issue is not limited to debt issues for the purpose of funding Library improvements. The proceeds from such a debt issue can be used for any legally permitted municipal capital improvement. For example, the Civic Center Facilities are the security for the debt issues we have used to finance parking facilities in downtown Huntington Beach. Similarly, the Library is an asset that could be used as security for any such debt issue. I believe this is important for you and the City Council to understand for the following two reasons: 1. Once this asset is used as security for a debt issue, it is no longer available as security for debt issues to fund other capital improvements. 2. Since the "asset transfer" method of financing is a very "efficient" debt instrument, alternative approaches result in higher debt service. The City does not have any other assets of comparable value to utilize in such a financing. While a debt issue of this size or larger would not significantly burden the general fund, any subsequent debt issue would create an added general fund expense that would require careful financial analysis as follows: 8 1. A general fund budget review would focus on whether operations or staff would need to be reduced in order to pay additional debt service. 2. A detailed presentation would need to be made to the bond rating agencies to determine whether a subsequent debt issue would affect bond ratings. The above described analysis could result in a staff recommendation to not issue any subsequent debt for two (2) or more years. Because of the above four factors, a decision to utilize this asset for the Library Improvement Project is, from a financing point of view, a decision that the Library Project is the highest priority unfunded capital improvement project for which debt should be iss I mention s in view of recent directives from the Council to provide information on the debt issuan t rn tiv and other capital improvements. f Ad * FA Deputy City dm nistrator ' f STONE & YOUNGBERG MEMBERS: PACIFIC STOCK EXCHANGE June 1 , 1989 Mr. Robert Franz Deputy City Administrator City of Huntington Beach P.O. Box 148 Huntington Beach , CA 92648 RE: Additional Financing for the Huntington Beach Public Library Dear Bob: As we have discussed, further analysis by Jones Hall Hill & White of the legal documents governing the outstanding Leasehold Mortgage Bonds used to finance the Library has turned up restrictions on additional financing which will make use of the structure suggested in our letter of May 1 , 1989 difficult. That letter suggested the use of a lease with a subordinate claim on the Library. Covenant 9 within Article UII of the indenture governing the outstanding Bonds states that the Huntington Beach Public Facilities Corporation, issuer of the Bonds , "shall not. . .suffer to be created. . .any. . .encumbrance. . .upon any of the properties . . .of the Corporation" . Jones Hall has taken the position that this language would require the Corporation to contest the creation of a sublease secured by the Library. Chick Adams will send you a memo under separate cover which explains their position in detail . It seems that the only way to overcome the existing restrictions on additional financing for the Library would be to release the Library as security under the existing indenture by defeasing the outstanding Bonds . New COPS could be issued to fund a refunding escrow which would accomplish the defeasance , and to fund the cost of additional Library improvements. The defeasance would allow the new COPS to be secured with a new, larger lease of the Library and the improvements . The City, as lessee, would use the General Fund to make lease payments . We have included herein sizing and debt service schedules which illustrate new COP issues which could be sold today to accomplish the funding objectives we first addressed in the May 1 , 1989 letter. Exhibit 1 recreates those funding objectives and labels them as Scenarios A, B and C. The Sources and Uses of Funds for COP issues which would be needed to •meet these objectives under each scenario are also included in Exhibit 1 . Exhibits 2, 3 and 4 provide debt service schedules for COPs required under Scenarios A, B and C, respectively. Although the required issue sizes are larger for each Scenario than those required under the sublease structure, annual debt service is actually less due to the more conventional issue structure and the fall of interest rates since May 1st. ONE CALIFORNIA STREET•SAN FRANCISCO,CALIFORNIA 94111 •(415)981-1314 Mr. Robert Franz City of Huntington Beach June 1 , 1989 Page 2 The enclosed analysis in combination with the memo you will be receiving from Chick should provide you with sufficient information on the proposed structu.re to move it through your channels. If this is not the case, or you would like to discuss the structure further, please give me a call . Sincerely, STONE & YOUNGBERG Hunter Holding, Jr. HH:crq cc: Chick Adams Enc. /(0537h) ` ` $4,065,000 Hunt ,,.each Library Refundzng CO^ (7/17/89) elivery - 9/ 1/89 ate Prznczpal Coupon Interest Total Annual / 1/90 141 ,413. 75 141 ,413. 75 / 1/90 45,000. 00 5. 900 141 ,413. 75 186,413.75 327,827.50 / 1/91 ` 140,086. 25 140,086.25 / 1/91 50,000. 00 6. 100 140,086.25 190,086. 25 �---07172. 50 / 1/92 1 :;8,561 . 25 1-M,561 . 25 / 1/92 50,000. 00 6. 200 138,561 . 25 188,561.�25 327, 122. 50 / 1/9--." 177,011 .25 1317,011 .25 ' / 1/93 55,00C). 00 6. �0i' 1�7 ,011 . 25 192,011 . 25 329,022. 50 / 1/94 135,278. 75 1 --15,278. 75 / 1/94 60,000. 00 6. 400 135,278. 75 195,278. 75 3�0,557. 50 / 1/95 13-- 1358. 75 1-03,358. 75 / 1/95 60,000. 00 6. 450 13--1,358. 75 193,7-58. 75 -326o717. 50 / 1/96 131 ,423. 75 131 ,423. 75 / 1/96 65,000. 00 6. 500 131 ,423. 75 196,423. 75 327,847. 50 / 1/97 129,311 . 25 129v7;11 .25 / 1/97 70, 000. 00 6. 550 129,311 . 25 199,3-11 ° 25 32816-22. 50 / 1/98 127 ,018. 75 127,018. 75 / 1/98 75,000. 00 6. 600 127,018. 75 202,018. 75 �29,V3�. 50 / 1/99 124,543. 75 124 ,543. 75 / 1/99 80,000. 00 6. 650 124,543. 75 204,543. 75 329,087. 5O / 1/ 0 121 ,883. 75 121 ,883.75 / 1/ 0 85,000. 00 6. 700 121 ,883.75 06,88-0. 75 328,767. 50 / 1/ 1 119,036. 25 119,036.25 � 1/ 1 90,000. 00 6. 750 119,036. 25 209,036. 25 3281U72.50 / 1/ 2 1157998.75 1159998. 75 � 1/ 2 95,000. 00 6. 800 115,998" 75 210,998. 75 326,997" 50 � 1/ 3 112,768. 75 112,768. 75 / 1/ 3 105,000. 00 6. 850 112,768. 75 217,768. 75 330,537. 50 / 1/ 4 109, 172. 50 109, 172. 50 / 1/ 4 110,000. 00 6. 960 109, 172. 50 219, 172.50 328,345. 00 / 1/ 5 105,377.50 105,377. 50 ' / 1/ 5 115,000. 00 7. 000 105,377.50 220,377. 50 325,755. 00 �w �* / 1/ 6 101 ,352. 50 101 ,352.50 ` / 1/ 6 125,000. 00 7. 100 101 ,352. 50 226,352. 50 327,705. 00 / 1/ 7 96,915. 00 96,915. 00 / 1/ 7 135,000. 00 7. 100 96,915.00 2Z1 ,915. 00 328. 830. 00 / 1/ 8 92, 122. 50 92, 122. 50 / 1/ 8 145,000. 00 7. 100 92, 122. 50 2-17, 122.50 329,245. 00 � 1/ 9 86,975. 00 86,975. 00 � 1/ 9 155,000. 0V 7. 100 86,975. 00 241 ,975. 00 328v950. 00 / 1/10 81 ,472.50 81 ,472.50 / 1/10 165,000. 00 7. 100 81 ,472. 50 246,472.50 327,945. 00 / 1/11 75,615. 00 75,615. 00 / 1/11 175,000. 00 7. J0(-" 75,615. 00 250,615. 00 326,270. 00 � 1/12 69,402. 50 69,402.50 / 1/12 190,000. 00 7. 100 69,402.50 259,402. 50 :;28,805. 00 / 1/13 62,657. 50 62,657.50 � 1/13 o00. 00 7. 100 62,657.50 267,657. 50 3--l0,315. 00 � 1/14 55,380. 00 55,380. 00 / 1/14 220,000. 00 7. 10� 55,380. 00 275,380. 00 330,760. 00 / 1/15 47,570.00 47 ,570. 00 / 1/15 ()00. ()0 7. 100 47,570. 00 282,570. 00 :.-;0, 140. 00 � 1/16 39,227. 50 7,9,227. 5o ^' / 1/16 250,000. 00 7. 100 39,227. 50 289 ,227. 50 3�-28,455. 00 /17 :�0, 352. 50 --.01352. 50 � 26E,00(). 00 7.10o 7',0 50 295,352. 50 325,70A / 1/16 20,945. 00 30,945. 00 / 1/18 285,00o. 00 7. 100 20,945. 00 7,05,945. 00 326,890. 00 / L/19 10,827. 50 10,827. 50 / 1/ 19 �0b, 000. 00 7. 100 10,827. 50 Z-15,827.50 �26,655. 00 t 1 4,06,-:P,000. V0 t:), 786, 120. 00 9,851 , 120. 00 crued from 9/ 1/89 0. V0 0. 00 t cost 5, 786, 120. 0o 9,851 , 120. 00 t effect3ve - 7. 049 ' nd years - 82,085. 000 ` ~ . � wAL-. . . . . , ° :V6,920,000 Hunt Beach Library Refunding COPs. (7/17/89) Delzver� - 9/ 1/89 Date Principal Coupon Interest Total Annual 3/ 1/90 240,737. 50 2407737. 50 9/ 1/90 8O,000. 00 5. 900 240,737.50 320v737.50 5f,1 ,475.00 3/ 1/91 23811-977. 50 238, 377.50 9y 1y91 80,000. 00 6. 100 338,377.50 318°377. 50 556,755. 00 Z/ 1/92 235v937. 50 235,937.5O 9/ 1/92 85,000.00 6. 200 235,937. 50 320,937. 50 556,B75. 00 3/ 1/93 233,302.50 233,-302.50 ' 9/ 1y93 95,000. 00 6.300 233,302. 50 328,302.50 561 ,605. 00 3� 1/94 230,310. 00 230,310.00 9/ 1/94 100,000. 00 6. 400 27,01310. 00 -ZI30,310.00 560,620.00 3/ 1/95 227, 110.00 227, 110. 00 9/ 1/95 105v000. 00 6. 450 227, 1 10.00 132, 110. 00 559,220. 00 3/ 1/96 2231723. 75 223,723. 75 9/ 1/96 110,000. 00 6. 500 223,723. 75 3331723.75 557,447.50 3/ 1/97 220, 148.75 22(), 148.75 9/ 1/97 1201 000. [)0 6. 550 220, 148. 75 340v 148. 75 560,297.50 3/ 1/98 216v218. 75 216v218. 75 9/ 1/98 125,000. 00 6. 600 216,219. 75 341 ~218.75 557,47,7. 50 3/ 1/99 212,093. 75 212,093.75 9/ 1/99 135,000. 00 6. 650 212,093. 75 347,093. 75 559, 187.50 3/ 1/ 0 2()7,605. 00 207v6O5.00 9/ 1/ 0 145,000. V0 6. 700 207,605. 00 352,605. 00 560,210. 00 3/ 1/ 1 202,747.50 202,747. 50 9/ 1/ 1 i55,000. 00 6. 750 202v747.50 357,747. 50 560,495.00 3/ 1/ 2 197,516.25 197,516. 25 9/ 1/ 2 J65,000. 00 6. 000 197,516.25 362,516. 25 5601032. 50 3/ 1/ 3 1911906. 25 191 ,906. 25 9/ 1/ 3 175,O00. 00 6.850 191 ,906.25 366,906.25 558,812~50 3/ 1/ 4 185,912. 50 1B51912.5(} 9/ 1/ 4 185,000. 00 6. 900 185,912.50 370,912.50 556,825. 00 3/ 1/ 5 179,530. 00 17915->'0. 0() 9/ 1/ 5 200,000. 00 7. 000 179,530.00 379,530. 00 559,060. 00 3/ 1/ 6 172,530.00 1721530.()0 9/ 1/ 6 215,000. 00 7. 100 172,530.00 387,530. 00 560,060.00 ` 3/ 1/ 7 164,897. 50 164,897"50 ' 9/ 1y 7 21-00,000. 00 7. 100 164vB97.50 394v897.50 559*795. 00 3/ 1/ 8 156,732.50 156,732.50 9/ 1/ 8 245,000. 00 7. 100 156,732.50 401 ,732.50 558,465.00 3/ 1/ 9 148,035.00 148,035. 00 9/ 1/ 9 265,000. 00 7. 100 148,035.00 413,035.00 561 ,070. 00 3/ 1/10 13B,627.50 138v827.5() 9/ 1/10 280,000. 00 7. 100 139,627°50 41e7627. 5() 557,255. 00 3/ 1/11 128,687.50 128,687.50 9/ 1/1 1 300,000. 00 7. 100 128v687"50 428,687.50 557,375. 00 3/ 1/12 118,037.50 118,037.50 9/ 1/12 325,000. 00 7. 1VO 118,037. 50 443,037. 50 561 ,075.00 3/ 1/13 1D6v500. 00 106,500. 00 9/ 1/1-3 345,000. 00 7. 100 106,500. 00 451 ,500.00 558,000. 00 3/ 1/14 94,252. 50 94,252. 50 9/ 1/14 000. V0 7. 100 9zf,252.50 464v25��~50 Z504pos.OQ 3/ 1/15 81 , 117.50 81 v 1I7.50 - �' 9/ 1/15 1,95,0o0. 00 7. 100 01 , 117.50 476, 117. 50 557,2235. 00 3/ 1/16 67,095.0o 67,095.00 9/ 1/16 425,000. 00 7. 100 67,095.00 492v095°00 559, 190.00 -S-A -1/17 ~ - � 52,007.50 -- 52iO07.50 ----' ^ 9/ 1/17 4531 0(}0. 06 7. 1(J0 '--- 5 50-- 55 3/ 1/18 35,855.00 351855.00 9/ 1/18 490,000.00 7. 100 35,855.00 525,855.0{) 561 ,710. 00 3/ 1/19 18, 460. 00 18,460. 00 94 1/19 52O,000.00 7. 100 18,460.00 538,460.00 556,920. 00 Total 6,9201000. 00 9,852,025. 00 16,772,025"00 - Accrued from 9/ 1/89 0.00 0°00 Net cost 9,852,025.00 16,772,025. 00 ` Net effective - 7. 049 Bond years ~ 139,765.000 ` .` $8, 175,oOO Hunt Beach Library Refunding COPS, (7/17/89) Delivery 9/ 1/89 Date Principal Coupon Interest Total Annual 3/ 1/90 284,425. 00 284,425.00 9/ 1/90 90,000. 0o 5. 900 284,425. 00 Z74,425.00 658,650. 00 3/ 1/91 281 ,770. 00 281 ,770. 00 9/ 1/91 95,00o. 00 6. 100 281 ,770. 00 376,770. 00 658,540. 00 3/ 1/92 278,872. 50 278,872.50 9/ 1/92 105,000. 00 6. 20(-) 278,972. 50 383,872. 50 662,745. 00 3/ 1/93 275,617. 50 275,617.50 9/ 1/93 110,000. 00 6.300 275,617.50 385,617.50 661 ,235. 00 3/ 1/94 272, 152. 50 272, 152. 50 9/ 1/94 115,000. 00 6. 400 272, 152.50 387, 152. 50 659,305. 00 3/' 1/95 268,472.50 26e,472.50 9/ 1/95 125,000. 00 6. 450 268,472.50 393,472.50 661 ,945. 00 3/ 1/96 264,441.25 264,441.25 9/ 1/96 130,000. 00 6. 500 264,441 .25 394,441 .25 658,882. 50 3/ 1/97 260,216. 25 260,216.25 9/ 1/97 1407000. 00 6. 550 260,216.25 400,216.25 660,432. 50 3/ 1/98 255,631 .25 2559631.25 9/ 1/98 150,000. 00 6. 600 255,631.25 405,631. 25 6611262.1347- - 3/ 1/99 250,681 . 25 250,681 .25 9/ 1/99 160,000. 00 6.650 250,6e1. 25 410,681 .25 6611-062.50 3/ 1/ 0 245,361. 25 245,361.25 9/ 1/ 0 170,000. 00 6. 700 245,361 . 25 415,361 .25 660,722. 50 3/ 1/ 1 239,666. 25 239,666.25 9/ 1/ 1 180,000. 00 6. 750 239.)666. 25 419,666. 25 659,332.50 3/ 1/ 2 233,591. 25 233,591 .25 9/ 1/ 2 195,000. 00 6.800 233,591 . 25 428,591. 25 662, 182.50 3/ l/ .3. 226,961. 25 226,961 .25 9/ 1/ 3 205, goo. rota 6. 850 226,961 . 25 431 ,961 .25 658,922. 50 3/ '1/ 4 219,940. 00 219,940. 00 9/' 1/ 4 220,000. 00 6. 900 219,940.00 439,940.00 659,880. 00 3/ l/ 5 212,350. 00 212,350. 00 1 9/ 1/ 5 235,000. 00 7. 000 212,350.00 447,350.00 659,700. 00 3/ 1/ 6 204, 125. 00 204, 125.00 9/ 1/ 6 255,000. 00 7. 100 204, 125. 00 459, 125.00 663,250. 00 3/ 1/ 7 195,072. 50 195,072.50 9/ 1/ 7 270,000. 00 7. 100 195,072.50 465,072. 50 660, 145. 00 3/ 1/ 8 185,487.50 1859487.50 9/ 1/ a 290,000. 00 7. 100 1e5,487. 50 475,487.50 660,975.00 3/ 1/ 9 175, 192.50 175, 192. 50 9/ 1/ 9 :;10,000. 00 7. 100 175, 192.50 485, 192.50 660,385. 00 3/ 1/10 164, 187. 50 164, 187,50 9/ 1/10 3m,000. 00 7. 100 164, 187.50 499, 1e7.50 663,375. 00 3/ 1/11 152,295. 00 152,295.00 9/ 1/11 -M51000. 00 7. 100 152,295. 00 507,295.00 659,590. 00 3/ 1/12 139,692.50 139,692.50 9/ 1/12 380,000. 00 7. 100 139,692. 50 519,692.50 659,385.00 3/ 1/13 126,202.50 126,202.50 9/ 1/13 410,000. 00 7. 100 126,202.50 536,202. 50 662,405. 00 3/ 1/14 111 ,647.50 111 ,647.50 9/ 1/14 440,000.00 7. 100 111 ,647.50 551 ,647. 50 6631-295 a 00 Noj-o- 3/ 1/15 9610217.50 961027-.50 9/ 1/15 4701000. (.")0 7. 100 96,027. 50 566,027. 50 662,055. 00 3/ 1/16 79,342.50 79,342.50 9/ 1/16 505,000. (e0 7. 100 79,342.50 584,342.50 663,695. 00 '37-1/17 61J415. 00 9/ I/i7 b40,000. 00 7. 1t.)o 61 ,415.00 601 JM60 , �6 6 2 1 8-3 0-.""PW V 1/18 42,245. 00 42,245. 00 9/ 1/18 575,oOO. Oo 7. 100 42,245. 00 617,245.00 659,490. ov 3/ 1/19 21 ,832.50 21 ,832.50 9/ 1/19 6159000. 00 7. 100 21 ,832. 50 63618%-.-2.50 656,665. 00 otal 8, 175,000. 00 11 ,649,830. 00 19,824,830. 00 accrued from 0/ 1/89 0. 00 0. 00 let cost 11 ,649,8Z0. 00 19,824,830. 00 let effective 7. 049 land years 165,265. 000 . . ' ^ ` , l[lNGTON BEACH LIBRARY UND7NG CERTlFlC,-iTES OF PARTICIPATION '17/89> 4zutat .Lon of Net Proceeds Scenario A Scenario B Scenario C __________ Al Requ�remen� $7,8o0,060 V6,'100,000 A7, 400,000 ' (�2 250 000) ($2 �50 000) (�2,250,000) . sting Funds , , `� , __________ �equ» rement from COPS, -T1 ,550,C)00 -T4,05»,000 T5, 150,000 nces and Use Fu�ds Scenarz B Scenario C urces: qew Issue 44,065,00U -:r6,920"000 -r8, 175,000 1972 Reserve Fond t404 ,25�j P404,250 -t404 ,250 Totc1 x4,469,230 37 , �241250 -t8,579,250 CIS: !'%efundjr'g Es,-ruw -7 73,00C, A--,37�,000 -�r2,3731006 1989 Resurve Fund ( 1(-'%) X406,500 :r692,000 ��817,500 Under wrz1er ' s S71 , j 7'8 :r1"21 , 100 �r143,063 Costs of 4-68,612 .4F88, 150 -t95,687 Construction Fund -i�1 ,550, 74,(>50,000 X5, 150,000 Total �r4,469, 4 324,2150 1-8,579,250 | � � { _ - � CITY OF HUNTINGTON BE" '`1 - Ce 't ral L i b rjry E-xp}ans•i on Preliminary Estimate Probabl,- Construction Cost January 12, 1989 Exhibit C ALTERNATE - PLAYHOUSE THEATRE _ _ • Minimum Additional Costs necessary to accommodate performing, arts gCoups, in . •. the Pacific Room. I - ITEM AREA/SQ.FT, COST/SQ,FT. TOTAL Pacific Room: Upgrade Lighting System $ 50,000 Upgrade Sound System 25,000 Add Technical Work 1,200 75 90,000 Space 8 Storage Increase Platform Area 600 75 45,000 Add Dressing Rooms 500 75 37,500 Add Restrooms 300 125 37,500 Add Office Area 200 7S 15,000 $ 300,000 Contingency @ 10% 30,000 A/E Fees and Inspection 27,000 TOTAL ALTERNATE $ 357,000 i - 1 = I I I r r y—k-- --x--- ><— ---r x ---r - rt— x---• --x--- TL I rl r • ; ' I ,. I I U �=irk• _ x • Y Y • I 1• M M 4 • t 7•r itMiEll I `� � f105TItlG 11BM1RY l DOW I x x y+ � 11 I r r a ■ x tY i, 91 I 1 I Y I ' x ' Sf11KNS :J-- --— — 3wm ' -- — -----� My u i I ' \ ; I001t i I r f Sim ,I cy • ' trtENnEOMrcE nE�oEiv \ 10°°Y `� I mT�i mT4t 3 I I Ea �t � (_�-p(� onoo I u+ucmMrED mEGAMMON N I wEru�ENCE 1 . •\ i f y 7VA u*0 Aom I _40 f/ N UPPER LEVEL � LOWER LEVEL ANTHONY & IANGFORD/ARCHITECTI PROPOIEP ADDITION _ HUNTINGTON BEACH HUNTINGTON BEACH USRAW oic —� FMIN .. .� i / an rx 14, sYvo I'm oM1YYv. a,.r = . \ i i ` 1•_ --\ - _\\ En Ltu g It ' - A AY11YtIl ONilfl7fi �J •� , �1� ( �=l � 1 7 + 1 1.. 1eP 1�• /� 1 � . r' .� , '' •1 Ste-'`. 7` f r r� ti 1 � �' � � ti � i 0% , f' jl t L �` O O � cr P NOW -r /� rl�� + { y .//'� ;�I�.`'{``L"•iPi'�i�.'i��'r�G� /S�`.�r,�L- � � �v '�` 'i7 '!4,�J}t � t� �� �~�� s,r .i .NT :, �li7y .t, ,.'r. R.:i-�R. tca!{I1"Y ''at1¢+. ,`�f •�'.:/�.:� I It w n � If Ail ••• ws'l lip kIMN r o`,�f tl�' a �f lr .{!• .. rl! �l�l or Oil 1 rr •,�, . }.�! •� .i aN Iil - i lf1 Ail ff rn IAA VAW STn 1f�\'.IS u.�}:. ' � J,{, �� � 'Srri� IiNi• )rir ♦ I.i U \ :'r.^"�\+ `� _ ry-1 t-) ll�if7, ■_'�... •i i.r 1- i��i u i; �e()` A - �� 1 1. itf Irr ►'1 - r ,.�� ill jyyY ri♦ // � �, Y!• lilt. 44 Q 1 a ' i t STATEMENT OF ACTION CITY COUNCIL Council Chamber, Civic Center Huntington Beach, California Monday, August 7, 1989 A tape recording of this meeting is on file in the City Clerk's Office. Mayor Bannister called the regular meetings of the Huntington Beach City Council and Redevelopment Agency to order at 7 p.m. ROLL CALL Present: MacAllister, Green, Winchell , Bannister, Mays, Silva, Erskine Absent: None (City Council) CENTRAL LIBRARY EXPANSION — PHASE I APPROVED — STAFF REPORT TO REVIEW PHASE I REQUESTED The City Clerk presented a communication from the Director of Community Services transmitting conceptual drawings with phased costs for the expansion of the Central Library. Ron Hayden, Library Director, gave a slide presentation on the library expansion phases and distributed background information to the Council members. A motion was made by Winchell , seconded by Green to: (a) approve the conceptual drawings for all three phases of the expansion to the Central Library, (b) approve the concept of financing the unfunded portion of the cost of all three phases of the expansion to the Central Library by the issuance of Certificates of Participation (long term C.O.P. debt) , (c) authorize a formal appraisal of the library facility by an M.A.I. appraiser in order to issue the C.O.P. debt, (d) appropriate funds in the amount of $233,500 from the "Fund Balance Reserved for Children's Wing" and authorize staff to prepare an amendment to the architectural services contract with Anthony & Langford, AIA, in that amount, to design all three phases of the expansion to the Central Library, (e) instruct staff to prepare a phasing plan for the construction of the library expansion improvements so that the increased debt service from the C.O.P. debt is phased to the maximum financial advantage to the City. The motion failed by the following roll call vote: AYES: Green, Winchell , Mays NOES: MacAllister, Bannister, Silva, Erskine ABSENT: None i - a Page 2 - Statement o, .Action - 8/7/89 A motion was made by Erskine, seconded by MacAllister to approve Alternative Action No. 1 to direct the architect to design Phase I only and to assure design services include the Phase II substructure as described by our City Administrator, including atrium area and 231 on-site parking spaces; and appropriate additional $38,500 to cover architectural fees for Phase I. The motion passed by the following roll call vote: AYES: MacAllister, Green, Winchell , Bannister, Mays, Silva, Erskine NOES: None ABSENT: None Mayor Bannister requested a staff report to review Phase I from an aspect of security and an aspect of cost and return to council with recommendations regarding the lower station--whether it should be open or closed. ADJOURNMENT - COUNCIL/REDEVELOPMENT AGENCY Mayor Bannister adjourned the regular meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach to 5:30 p.m. , Monday, August 21 , 1989 in Room B-8, in the Civic Center. ATTEST: Connie Brockway City Clerk and ex-officio Clerk of the City Council of the City Connie Brockway of Huntington Beach, California City Clerk STATE OF CALIFORNIA ) County of Orange ) Wes Bannister City of Huntington Beach) Mayor I, CONNIE BROCKWAY, the duly appointed and qualified City Clerk of the City of Huntington Beach, California, do hereby certify that the above and foregoing is a true and correct Statement of Action of the City Council of said City at their regular meeting held on the 7th day of August 1989. WITNESS my hand and seal of the said City of Huntington Beach this the 8th day of August, 1989. Connie Brockway City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California Deputy