CC Min 1998-04-27 - Laserfiche WebLink

Browse Search

.' . . I . I . In response to Vice Mayor Ruskin's questions regarding a postponement, Mr. Swart said, "I think we were obligated to have the hearing. There was no good reason to - withdraw from the hearing... We informed you as soon as we possibly could that there was a transaction in the works. In retrospect, to avoid the appearance of evil, we may have acted differently, but at the time, there was no malice of forethought.... At the time it didn't occur to us that it would be a germane issue." Kathleen Mahany, member of the HHCC, said she wanted an answer from ARV about the existence of an Alzheimer's unit. David Collins of ARV said the statements Mr. Swart gave were correct. He said ARV was working with the University of California System on the subject of dementia, including Alzheimer, and planned to establish Alzheimer's units in all their facilities. Mr. Collins said some of their facilities do not have these special care units yet, but they will have. He said Mr. Swart was also correct on possible rent increases, and ARV expected about a 2% per year rent increase. Mr. Collins said a rent increase was a reasonable concern, but ARV did not intend to go in and raise rents. In response to Council Member Ira's questions regarding the increase in the net present value and why it wasn't all going into the General Fund, Finance Director Ponty said that initially the net present value which will occur over a 30-year period which will accrue to the City was $3.3 million. He said, "As a result of the change in ownership.... we were able to negotiate compensation for the City of (an additional) $1.2 million... it is certainly - Council's prerogative to decide which of the funds under Council's control this money can go." Director Ponty said that the incremental piece the City had negotiated since February 9, 1998, "the net present value of that is equal to $1.2 million. It is staffs recommendation that that be deposited into the low income housing fund, and be used to address some of the needs that the HHCC expressed at the February 9 hearing, and from some of the Council Members, before and after the February 9 hearing." Council Member Claire said he was the Chairman of the Finance Committee before Council Member Ira was elected last year, and he and Vice Mayor Ruskin, the other Finance Committee member at the time, discussed this situation. He said they had made it clear to Director Ponty that they would recommend to the full Council, "that a certain amount of the monies we were then acquiring, the present value of those cash flow fees, be set aside for... senior low income housing.... This is not exactly staffs doing. It was the doing of the prior Council Finance Committee." Council Member Claire said the HHCC had addressed the Council at its February 9 meeting with the same recommendations. He said the Council could certainly override the Finance Committee's recommendations, but he hoped they did not. Council Member Hartnett summarized the decisions before the Council. He said, "One is, adopting a resolution to distribute the revised preliminary official statement. If we - adopt that then the deal in effect proceeds. The second is interrelated, and that is, the approval of the enhanced financial pot as part of the transaction. And a third is perhaps REGULAR COUNCIL MEETING MINUTE BOOK NO. 56 APRlL27.1998 MINUTES Page No. 427 PAGE 24