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. . ,, - MIS: HARTNETT/CLAIRE THAT WE TERMINATE THE PROCEEDINGS RELATED TO THE ORDINANCE ESTABLISHING MORATORIUM UPON THE DEVELOPMENT OF THE PROPERTY WITHIN THE "CG" GENERAL COMMERCIAL ZONING DISTRICT - PORTION OF PROPERTIES INCLUDED IN THE LIDO NEIGHBORHOOD SPECIFIC PLAN AND PROHIBITING THE ISSUANCE OF PERMITS OR OTHER ENTITLEMENTS PERTAINING THERETO. CARRIED BY UNANIMOUS ROLL CALL VOTE. MINUTE ORDER 97-243 ------------______n______---------------------------------______n______----______n______---------------------------------- Mayor Howard recessed the meeting at 9:08 p.m. Meeting reconvened at 9:16 p.m. -------------______n______-------------------______n_----______n______-------_n------------------------------------------ C. COUNCIL DISCUSSION OF THE ISSUANCE OF BONDS FOR FINANCING CITY HALL AND OTHER CITY BUILDINGS TO ACmEVE A NET PRESENT VALUE BENEFIT, OVER A PERIOD OF YEARS. THE NET PRESENT VALUE BENEFIT IS NOW ESTIMATED TO BE $750,000 OVER 15 YEARS. (505) REPORT: Director of Finance and Financial Planning Ponty, December 18, 1997 Director Ponty presented the staff report and explained that in "April, 1995, the Council adopted a resolution which provided the City with the opportunity to reimburse itself with bond proceeds for the cost of constructing City hall and several other City facilities." He - said the resolution was not binding, but allowed for a decision to be made at a later date after the facilities were constructed "to decide if issuing bonds was the most efficient use of the City's assets." Director Ponty said that he and Bill Euphrat, the City's financial advisor, who had researched this process, had presented a report to Council in October, 1996, but the Council was not interested at that time. He said that recently several Council Members had expressed an interest in this process, and explained that the deadline to complete such a transactions as fast approaching. Director Ponty advised that if the Council wished to look into the process, the Council Investment Subcommittee, as well as other financial representatives from the community, would pursue it. Bill Euphrat, the City's financial advisory, described his background and the Council's options. "Continue to expend cash as you have to date for the construction of this facility. The advantages are transparent... there is no debt service, and there is no risk to the General Fund... The other side of the coin is there is no investment income, and your assets in your Capital Improvement Fund are depleted. They are not earning anything and they are not available for anything else you may need to finance in the future. Mr. Euphrat said there are many ways to finance facilities, and described the advantages of "floating rate bonds.. ..bond interest costs would be less than the capital projects (fund) investment income." Mr. Euphrat said the goal was to achieve "a more efficient allocation of (the City's) resources." He described the liability in selling bonds, a variable rate - demand bond and described the salient features of these bonds which included a fixed ADJOURNED REGULAR COUNCIL MEETING MINUTE BOOK NO. 56 DECEMBER 18, 1997 MINUTES Page No. 125 PAGE 20