05-31-1966 - Regular Meeting - MinutesMINUTES OF THE ADJOURNED REGULAR MEETING OF THE CITY COUNCIL
CITY OF WEST COVINA, CALIFORNIA
May 31, 1966
The adjourned regular meeting was called to order by Mayor Krieger at 7:30 P.M.
in the West Covina City Hallo Councilman Gleckman led the Pledge of Allegiance,
ROLL CALL
Present: Mayor Krieger, Councilmen Gillum, Nichols, Snyder, Gleckman
Others Present: Mr. George Aiassa, City Manager
Mrs. Lela Preston, Acting City Clerk
Mr. Herman R. Fast,Public Services Director
Mr. James Kay Jr., Finance Director
Absent: Mr, Robert Flotten, City Clerk
Mr. Harry Co Williams, City Attorney
Mr. Harold Joseph, Planning Director
CIVIC CENTER REVIEW
Oayor Krieger: Sometime ago, there was an expres-
sion by the two new Councilmen to
be brought up to date on'..the' ' programs , past, present and prospectiv6 for
the Civic Center, It seemed best in order to accomplish this objective
as well as to re -acquaint the other members of the Council with the
situation in this regard to schedule specifically a review session for
this purpose, In order to do so we asked the City Manager if he would
make the necessary contacts with the architectural firm of Neptune and
Thomas and with the financial consultants, Stone and Youngberg, in order
to more fully acquaint the Council as a body with both the architectural
and financial aspects of this particular project. We are pleased to
have with us tonight for this purpose Mr. Joe Thomas of the architectural
firm of Neptune and Thomas and Mr. Herman Zelles of the financial con-
sultant firm of Stone and Youngberg for the purpose of both acquainting
the Council with various aspects of the program to date as well as to
answer any questions that the Council may have in regard to this particular
matter.
You have before you under Item 1
City Council prior action to date both the nature of the action and the
date of the authorization commencing with the plans and specifications
approval in August of 1965 through the property survey, the soil survey,
the financial investigations, et cetera.
I believe it is a fair statement
to make the following comment: We do not have our Civic Center except
On paper. The paper work is as far advanced as the decisions of this body
ave enabled it to proceed with possibly the final implementation or formu-
lation of the plans and specifications and perhaps Mr. Thomas would care
to amend and modify that statement to some extent.
The avenues of financing open
to the City seem;to be within three broad areas, One is going back
to the electorate on a general obligation type of bond financing.
The second is the possible lease -purchase arrangement through a
created third entity. The third alternative would be a public
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CIVIC CENTER REVIEW = Continued
• authority between the two governmental agencies, the County and this
City,, Now, in order to more clearly discuss the architectural
developments in the project as well as the financial avenues open to
this Council for its decision, we would like to ask Mr. Thomas to
comment to the extent that he feels appropriate as to the status
of the architectural work, the finalization of plans and specifications,
any comments he cares to make in any fields relative or attendant to
the architectural aspects of it,,
Mr,, Joe Thomas,* I have not come this evening
prepared to present any drawings
because all the preliminaries and beyond that have been presented to
you before,, We are now in the very final stages of the working
drawings for this drawing,, In fact, our schedule calls for us to put
the plans and specifications into your Building Department for plan
check on the °nth of dune, which is about a week from now,, I don't know
what your schedule will be in your Building Department for checking
these,, I would imagine the normal procedure would probably take three
to four weeks for the checking of these plans and specifications.
As you know, we have been
working to a budget on this project,, Early in the project, which
goes back much further than most of us realize in calendar months,
we established a budget based on a square foot cost,, Now until we
complete our plans and specifications it is not possible for us to
make a detailed take -off to check this budget which was based on a
square foot cost,, All along the line in spite of the fact that
building costs are rising steadily we have attempted to keep this
project within the budget which was set up by our treatment and
detailing of the buildings in the project,, At the time of this
budget there were several unknowns not regarding the buildings
necessarily but regarding the arrangements between the City and the
County on common facilities and the exchange of property and so forth,,
The budgeted cost or the estimated,cost for some of the common
facilities such as the mall treatment cannot be determined finally
and definitely until the City and the County have made negotiations,,
When that is done we will be able to firm up a more definite budget
on these particular items,,
As you know, the County has
reviewed this whole project and has come up with certain costs,,
We did have costs for the site development and landscaping in our
original budget but they were based upon the areas which were then
included in the City property and not of the County property or not
the entrance mall treatment,, When you have concluded your
arrangements with the County then we will have to sit down with the
County people and your staff people and work out a definite budget
for this portion of the work,, That briefly is where we are as of
today on the plans and specifications,.budget, et cetera,,
. Mayor Krieger. I want to thank you for the
generous donation of time and
time again that you have been with us on this particular matter
for these briefing sessions and explanations,, I know it has been
beneficial to have you here in person,,
Mr. Aiassa, is your staff
prepared to give us a report on the status of the discussion on the
property exchange aspect that Mr,, Thomas alluded tog
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CIVIC CENTER REVIEW Continued
Page Three
. City Manager, Mr,, Aiassa Yes,, We have completed the main
exchange of property,, I think
Mr,, Fast has a map on the board regarding this and we have legally
transferred our portion of property to the County versus the portion
they gave us in equal exchange,, As of this date, the CountyEngineer's
Office has provided some extra work,, :.This is involving the entire
Civic Center complex,, On that proposed drawing it shows the addition
to the court and also the proposed addition to the library plus our
police building and our City Hall and the mall inside plus the entrance
into the mall,, We are now in the middle of the negotiations as to
what percentage will the County participate and what percentage the
City will take care of,, We have to make changes to existing improve-
ments,, Also, we have been advised that the County needs more parking
facilities which we can provide,, At this moment Mr. Fast is meeting
with some of the subordinates of Mr,, John Lamb.e9'County Engineers to_
see if we can' work out soave of the details,
Councilman Snydere Where are you going to park
for the library?
City Manager, Mr,, Aiassao There is avail,ablo- parking :.tre
(Andicating) and. prabA,bly-somc on
the ,other side.
Public Services Director, Mr,, Fasto The Council authorized'us to
proceed on the communications
consultant and the contract in February and Messenger Consultants
was awarded this contract at the recommendation of Neptune and
Thomas,, Their contract was in two parts; phase one and phase two,,
Phase one established the basic scope of work and their recommendations
to the City for what was required; phase two, which they are now in.,
is the detailed specifications for that equipment,, It will involve
coordination and the integration of fire dispatch, police dispatch,
Street Department dispatch on off -hours and will also combine into
the total facility EOC or emergency operating center requirements
and so for the most part we will be getting matching funds for all the
equipment in the communications area,, Messenger Consultants has had
considerable experience in communications work and specifically
in regard to EOC,, Based on their efforts to date, we feel very good
about the type of work that they have been doing for us,,
There is one other item in regard
to the County negotiation that has come up, the tunnel connection
between the police facility and the court addition is apparently
aggreable with the County to include the tunnel as well into a cost
separation,, They felt that they would perhaps have some need
occasionally from their detention facility in the courthouse to sometimes
use our holding areas so they seem to be in the position at the moment
to be willing to share the costs in that area as well,,
0 Mayor Kriegero
t:ion on before going into questions
alternatives and suggestions,, The
well remember the services rendered
pleased to have with us tonight Mr,,
Zelles has been asked to be with us
outline whatever information he can
alternative methods offinancing,,
The second aspect of this that
we would like to receive informam
and comments would be the financing
three holdover members of the Council
by Stone and Youngberg and we are
Herman Zelles of that firm,, Mr,,
this evening specifically to
provide the Council on the
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CIVIC CENTER REVIEW - Continued
• Mr, Herman Zelleso I think in your earlier remarks
to the Council the Mayor touched
on the three general financing media which was originally looked at;
namely, general obligation bonds, the non-profit type financing known
as the lease/lease back, and most recently the joint powers type of
financing I think that rather than go into the discussion of the
general obligation bonds I think we all know what they are and it is
perhaps the other two we are more concerned with,,
Up to September of last year the
joint powers type of financing was limited to various types of
structures in the State of California; namely, exhibition halls,
things of that nature,, The Legislature in 1965 changed this law and
broadened it to include public buildings which made this type of a
project feasible under the joint powers type of financing, The
requirements are rather rigid, It takes more than just two public
bodies getting together in order to have a bona fide joint powers
financial vehicle, Both people involved actually have to have a
common powers namely, the power to construct buildings, In this
particular situation, there is no question that both the City and the
County can construct public buildings and that this type of financing
would be applicable to your type of a project,
• Relating this to the lease/
lease back type of arrangement, which was the other type involved', you
would actually have a nonprofit corporation created;, a non-profit
corporation would be composed of members of the community, They would,
in effect, finance the facilities and in turn lease them back to the
City who would pay an annual rent which, in turn, would be equal to the
bond service on the bond issued by the nonprofit corporation, As
a nonprofit corporation, the bonds they would issue are not the same
as the bonds of a public corporation, For this reason, certain things
have to be done, First of all, it is necessary to have the Internal Revenue
Service render a ruling that the bonds are tax exempt because they are
being issued by a non-profit corporation for a public purpose,
Secondly', if 1t were des rable`to sell the bonds on the open market
under competitive bidding it would require further approval by the
Securities Exchange Commission,
The joint powers authority
differs from the non=profit corporation in that it is a public body,
it is created by the parties that make up the joint powers, namely
in this instance the County and the City, Once the joint powers
agreement is put into being the authority is created and continues
to exist as a legal and separate entity, In other words, there is a
Board of Directors and the Board of Directors will be responsible
for the construction of both of the facilities involved subject to
your plans and specifications, They will be responsible for seeing
that the structures are built and at that time will be sure that you
• then pay them when the facilities are completed annual rents and
the County the same, which in turn will be -used to pay the bond service
on the bonds which are issued by the authority, These bonds are called
revenue bonds, They are revenue bonds in a different sort of way in
a sense that the revenues used to pay the bonds are the lease payments
by the parties occupying the structures, They are municipal bonds;
they are tax exempt; there is no problem with the Internal Revenue
Service and Securities Exchange Commission; they are sold just as you
would sell any municipal bond- the interest rates would be somewhat
higher than the general obligation bonds of either entity because
they are not general obligation bonds; they are limited in the sense
they are payable only from one source and that is the general funds
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CIVIC CENITR REVIEW e Continued
of each of the people involved, Now, the joint authority has had a
great deal of use lately in this type of financing and the reason why
it has been lately and not heretofore was simply it couldn't be done
before, There are a lot of documents involved, I can very briefly
list what some of these items area First, we have this joint powers
agreement which is the key to the whole thing, It spells out what the
authority is, what it is supposed to do, and who is going to do it.
You indicated there was certain land transfers which we recognize in
the beginning and created some problems because of the locations of the
buildings in the beginning, Through the exchange you have now gotten
the lands more or less related to where the structures are going to be,
The next document which would be
involved would be a ground lease, I will call it, in which the County
and the City would lease the land which you now own to the authority
and the authority would then construct the various buildings and then
lease them back to the County and to the City so there is one more
lease involved which is the building lease which is the lease of the
land with the building on it back to the respective agencies,
Now, at the end of the term of
the lease or whenever the bonds are fully retired, the title to the
buildings would go back to each respective agencies, In other words,
• the land you have had from the beginning which you normally lease,
the building would go back to the City that belonged to the City and
the authority would cease to exist. It would then be dissolved,
This would all be spelled out in the joint powers agreement,
There are a number of items
involved here to protect the bond holder and also protect the people
involved, Perhaps the most notable one is that you have the trustee.
I'n other words, the authority would retain a trustee who would be
a bank with certain qualifications who would actually receive the
proceeds of the bond funds, In other words, the bond fund monies
themselves would not go to either the County or the City, they would
go to the trustee who would have the responsibility of dispersing
the bond funds upon written approval by whoever the designated person
is to see to it that payemntsoto the contractor should be made, and
the trustee has the responsibility of a-ccaunting for all the funds
during construction, He also is charged with the responsibility of
re -investing the bond monies during construction because not all of
it will be paid at one time, When the structures are complete,, the
trustee then receives the rent each year from the various parties and
is also responsible for the payment of the principal and the interest
on the bonds to the bond holder and he continues to occupy this role
for the entire length of the term that the bonds are outstanding.
Other items are involved,
Certain insurance provisions which must be maintained to see to it that
• the rightful owners be in force, earthquate insurance on the structures;
use and occupancy insurance, general extended type coverage that you
normally have, revenue type enterprise,
In terms of timing, it is
something we can do reasonably fast, We would recommend that no
bonds be sold until construction bids are received and they would be
sold after the construction bids are received because this type of
financing for all practical purposes is somewhat closed in the sense
that it is possible to sell additional bonds but you are better off
going to a bond sale knowing that the amount of money that you are going
to receive in the way of your bond sale will be sufficient to do the
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CIVIC CENTER REVIEW o Continued
. entire job,, In this case there is a small time lag from the time you
receive your construction bid and actually going to bid on the bondso
The bond sale itself would be conducted in the same manner as most
municipal bond sales,, The bonds actually sold to whomever would offer
you the lowest net interest cost over the life of the bond issue,,
Again, this is.all done by the authority once the authority is created.
Your lease payments are geared to the bond interest which is bid at
the time so that your lease payments would be sufficient to amortize the
principal and the interest on the bonds issued by the authority on
your portion of the project
The leases involved are generally
what we would call a net net type of a lease which means all the other
responsibility relating to the structures, operation, maintenance,,
insurance,, the like, you. would normally assume as you would on any
leased premises and that would not constitute a part of the annual rent,,
The authority itself is a body which would be composed of people
that either you would select or you and the County would select or
however which way you care to do it,, people who are not members of
the Council, who are not members of the Board of Supervisors, who would
be sort of hands distance type relationship,, They would serve for
four years and initially some of the terms would be two years so they
would be staggered,, They would be subject to reappointment at the end
of their terms by the persons appointing them,, again, this is something
Mthat would have to be worked out between the County and the City as to
how you would name the members of the authority and also their number.
The fewest you could have would be three,, Perhaps the normal and most
workable group is five,, It could be more- it could be less,, They
would serve without pA,yo.T ere could be ex officio members, representatives
of the City staff, for example, the City Attorney, the City Auditor,
Director of Finance, and the County officers of equal standing to
lend technical assistance and the like to the authority,,
There are certain expenses that
the authority would have, certain accounting expenses, purc.hases,payment of
the trustee during the life of the bonds and the like. Lt would be
our feeling and the way we have done these in the past that simply
the authority could generate from within sufficient monies to meet
these expenses, namely from the investment of the rents which are
f paid by the two parties to the authority and the rent payments are
generally paid in advance.
The rent payments themselves,,
for all practical purposes, are a lien on the general fund of the City
of West_ Covina,, However, in the absence of any sources it would come
from the general fund and then is subject to whatever limitations you
have on your general funds in terms of the mandatory or statutory
tax limits which for a general- law city is one dollar,, You could
never exceed your statutory limit by virtue of this debt,,
We certainly want to be sure
when you get into this type of financing that there will.be ample
room because the bond buyer is going to be looking at it, too. If
you were within two or three cents of your maximum tax rate
he would look askance at this,, I think your assessed valuation and
the fact I think your general tax rate now is about sixty-five,
sixty-six cents that there is ample protection to the bond holder
and this again is related back to the City's credit,, This shouldn't
constitute any problem. As far as the County is concerned, there is
no problem because there is really unlimited for general fund purposes,,
1M
•
C,, C,, 5/31 /66
CIV%C CEI�TTER' REVIEW 'Continued
Page Seven
I have covered a lot of ground,,
Perhaps I should just stop and leave the rest open to questions,,
Mayor Krieger-, The staff is to supplement your
remarks so we will see what they
want to offer on this and we will throw the whole thing open for
discussion,,
City Manager, Mr,, Aiassa-, I would like to advise the Council
as far as the County is concerned
on this matter that I have met with the representatives of the County
Administrator's Office and dealing directly with Mr,, Art Wills acid we
have reviewed numerous aspects of the public authority and I believe
right now the only action that is awaiting a decision is what happens
to the million and a half dollars now being proposed in their budget,,
It appears from tonight's headline that most of this will be deleted
from the budget possibly and if it does this would be one method that
the County will consider very seriously because we have talked to the
County officials on this matter, especially this Citrus Court, and
this has been an item of need for some time and I think the a
judges have made their needs known to Mr,, Bonelli and Mr. Bonelli is
trying to find an answer to provide this facility,, We also have had
very splendid cooperation with the County,on this project because the
whole area contained is almost equally needed by the County and the
City and it is all public land as far as the acreage is concerned,,
We also find that we can do a joint program in maintenance and upkeep
of the"facility after it is built to be sure that we get some assurance
for the"future that we will be given safeguards as far as landscaping and
maintaining of the parking lot, etcetera,, I think the possible answer
for the County will be some time in June, approximately June 17th as
to which way the County will go,,
Finance Director, Mr,, Kay-, I think we might ask Mr,, Zelles
to talk briefly about the role of
bond counsel,,
City Manager, Mr,, Aiassas We had not discussed this matter
of the role of a bond counsel
because we had used O°Melven.y and Myprs , in the general obligation bond
issue that we attempted and failed and I think Mr,, Zelles could
probably give us a quick outline where the'bond counsel would be
effective in this matter,,
Mr,, Herman Zelles-, I think it goes without saying
that without bond counsel you
wouldn't have A'bond sale,, He occupies a very important role and
in"effect what he does is he drafts all of these legal documents that
I havae mentioned before,,. The bond counsel actually occupies the same
role that we do,, Once the authority would be created we would then be
advisors to the authority and the authority would assume whatever
obligations that the City had.to us and to a bond counsel and various
contracts we have,, He is an essential member of.a team to effect the
financing and to be sure that first of all that it is legally possible
to do these things because without this opinion the .investor would
not underwrite the bonds,, I think there are very few people that can
occupy this role,, There are only two in the State of California that
I think would be acceptable mm OBMelyeny and Myers and another firm
in San Francisco,, They are tops in their field,, There are people, I
am surer who have legal training in your own City staff that could
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'CIVIC,CENTER REVIEW Continued
Page Eight
• prepare a lot of the documents involved and if this were done it would
still be necessary for a bond counsel review of all of the items to be
sure it did conform with the laws and the like. I think it is an
individual youhave to have in order to have a successful bond program,
He is a very important part of the team,
Councilman Snydere Mr, Thomas, regarding the
regional auditorium, you have
dotted out a proposed community center building, If at such time a
regional auditorium becomes feasible, will there be a problem
regarding parking for such an auditorium within this complex?
Mr, Joe Thomas. There won°t be a problem because
our parking that we indicate
here is depressed and the plans are if the auditorium is built we would
come in and doubledeck this area which would mean there would be parking
at the ground level as well as the parking underneath. None of us know
now exactly what the regional auditorium might develop into when it is
built, If we find at the time that we cannot develop enough parking
in this area, then we have the other area back here that can be
developed, There is adequate area here to get all the parking you
are likely to need for the complete Civic Center development,
Councilman Snyder. Mr, Aiassa, when we decided
• not to go ahead with the next
phase of the Stanford Research on a regional auditorium, this decision
not to go ahead further was based they wanted to see what effect the
Carousel would have on the San Cabiel Valley and it seems to me that
there is sufficient time now for them to see what effect and perhaps
.the next phase of the feasibility study of a regional auditorium
should be considered, Do you have any comment on that'
City Managers Mr, Aiassao According to the Stanford
Research report, it stated it
would probably be a period of three to five years in which the area
here would definitely establish itself as to _the feasi,bi.li,ty of
supporting such a regional auditorium, I believe we have a year and a
half or two years estimated time to review this need but I think if
the Council remembers the report they felt this was the hub of'the.East San
Valley and this area would lend itself very well to a regional
auditorium, The only question brought forth was the financing of the
facility and the actual supporting of a.structure of the nature we
were talking about of'a regional size,
Councilman Snyder,, At that time Mr. Bonelli
also indicated,as an individual
supervisor, that the County would be possibly interested in a joint
use of'a regional auditorium, Have you had any further word from the
County or discussions regarding the possibility of such a use?
• City Managers Mr, Aiassao No, I have not, not since the
Council has tabled the matter, I
believe this would require Council action to reactivate that phase of
the plan,
Councilman Snyder. Do you think it would be
appropriate at this time to feel
out the County to see if they are interested in joint participation in
a. regional auditorium?
IMP
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'CIVIC CENTER REVIEW Continued
Page Nine
• City Manager, Mr, Aiassa-, My personal opinion right now,
I would not suggest to activate
the regional auditoriumuuntilw. w. get the program of financing the
addition to the Citrus Court and the City Hall because I believe we
may cloud the issue,
Councilman Snyder-, Mr, Zelles, you have indicated
that the interest rates on a
joint powers bondissue would be slightly higher than C,O, bonds,
How much higher?
Mr, Herman Zelles-, It is a relative sort of thing.
It will vary at the time you
are actually selling the bonds depending on the condition of the
market, The maximum difference may be as high as one half of one
per cent, I would say the range would be a quarter to one half over
the general obligation bonds of a community which is involved in
securing lease payments,
Councilman Snyder-, Is it not true at the time when
the money market is like it is
now that bonds sell better, they are a better investment for the
investor?
• Mr, Herman Zelles-, In January of this year the
bond market as we call it was
the worse that it was in the last thirty years from the standpoint
of the issuer of the bonds, the interest rates that had to be paid,
We had a period of time in 19619 29 3, and 4 where the bond market was
very strong, You will recall in December of 1955 the Federal Reserve
raised the discount rate of the banks which just about picked the floor
up on all types of financing to some degree, I would say that the
interest rates will continue to be somewhat the same level they are now,
They are a lot better now than they were in January or February but they
will not be.the same level that they were, say, three and four years
ago until everything else more or less goes down the same way,
Councilman Snyder-, If the City were to have another
election for general obligations
and fail again, it has been said before that such a failure would have
an effect on our ability to sell bonds under lease purchase. Would
the same be true under joint powers? Would a double failure make it
difficult to sell bonds?
Mr-, Herman Zelles-, It would have an effect, _it's
sort of an abstract type of
effect, From a legal standpoint the answer is "No" because legally
there is nothing that requires an election for either the joint authority
or the lease/lease back, I think theproblem you really have is one
• of a personal type of policy decision, If the vote is something less
than a majority vote I think it is a local decision you have to make,
The investors will. look at the City in terms of the ability to pay
the bills,
Councilman Snyder-,
How much do we bave-invested
in Neptune and Thomas as of now?
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CIVIC CENTER REVIEW Continued
Public Services Director, Mr,, Pasta Based on the status of the plans
and specifications, I would guess
we have just about the full amount invested, approximately $1409000,,00,,
Councilman Snyder.- It seems to me that when we
engaged the services of Neptune
and Thomas we did this after considerable thought and interviewing of
many firms,, This was all done in the light of the public eye and
with the full information that we intended to build a civic center,,
At no time during that time can I recall any individual or groups of
individuals coming forward objecting to this,, When I voted to expend
this money I did it with the full faith that we were going to go ahead
and build a civic center and I think that the entire Council did and
therefore I think it is encumbent upon us now to find a way to do it
which builds us the best civic center the most efficient and cheapest
way..At no time has anybody during these preliminary studies and
will fall public knowledge on the amount of cost we were considering,
did anyone come forward to protest and I spent this money on the
plans to get.something done not just for another study,,
Councilman Gillum.- Mr,, Zelles, this would be a joint
authority between ourselves and
the County,, In other words, everything would be done with these
people selected or appointed' to operate this,, What if in such period
of time, fifteen years, the City decided to acr-ele:rate its portion
of it or possibly issue general obligation bonds to pay off the balance.
What happens to this setup?
Mr,, Herman Zelleso At this point we don°t know
whether the County and the City
would be going ahead exactly the same time, whether there would be
one bond issue to cover both projects. Let's assume that is the
situation,, In any event, when a portion of bonds would be subject
to call prior to their fixed date which means you could call them in
ahead of time,, you have to give the investor a reasonable period of
time in which to hold the bonds,, You would have provisions that say
after a period of time, ten, twelve, fifteen years that the authority
could call the bonds which are then outstanding and redeem them ahead
of time so it would be possible to have a refunding where the City
would, in effect, pay its lease all at one time,, The authority
would still continue. to be in existence because of the rest -of the
project,, When it finally comes toan end, then it desolves,, As long
as there are any bonds outstanding, the authority has to exist,,
Councilman Gillum.- Once we agree to this, are we
tied to the County for 25 years
or can we decide we don't want anything to do with the County part of
it,at all, we want our own City Hall and the citizens want to pay for
it,,
Mr,, Herman Zelles.-
Some things would not come back to
from a working standpoint you are
you tie yourself into at the very
operating agreements how you will
Councilman Gillum. -
After a certain period of time
I think the answer is "Yes",,
you until it is all done,, I think
only tied in with the County what
beginning because.you will have
maintain'.these facilities.
What we set up at the beginning
is what we live with?
mom
Cl
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C, C, S13l/66
CIVIC CENTER REVIEW Continued
Page Eleven
Mr, Herman Zelless That's right, That is why it
is so important that it has
been given the test by both you and the other party and by an independent
review,
Councilman Gillum, Suppose for some reason the City
of West Covina was able to meet
its obligations and the County for some reason would not be able to?
Mro Herman Zelleso The trustee plays the role in
the sense that he is required
every year during budget time to review budgets of the agencies
involved to be sure that there is included within the budget such
monies to meet the various payments, There has to be a budget item
for it, The only problems that you might get into would be, say,
you had an unusually high tax delinquency and this is why you have
the reserve fund so that the trustee could step in and use the
reserve fund until such time you can reinstate the funds you are
supposed to have, It is more of a timing device than anything else,
From a very real sense here if you were to be making a payment on
July 1, say, of 1967, you would actually have budgeted for those
funds and if they were going to be part of your general tax rate,
whatever it is, you will actually have acquired those funds in the
previous fiscal year so you will have them on June 1, This is why
the trustee is there and this is why you have the reserve funds,
Councilman Gleckman;
How about the land as far as the
subject to the tax rolls? How
about this lease purchase?
Mr, Herman Zelleso There was a court decision not
too long ago that held that the
possesscvy interest of the nonprofit corporation was subject to tax.
In this particular case it dealt with proprietorship, It was a
garage financed through lease/lease back financing, This case last
held they are subject to the possessory interest tax which is
determined by -the assessor,
Councilman Gleck.man; Included in the bond issue as
far as to the total amount of
dollars is merely construction or does furnishings play a part in
this?
Mr, Herman Zell esa There are a lot of items that
make up the total of financing,
The key item, of course, is the construe-ii.ou cost. To the
construction cost you want to provide for some contingency allowance
on construction because there will be changes; buildings just don't
go up exactly the way they are put on paper and sometimes you run
into materials problems and things of this nature so you provide for
a conntingency, It can be so stated as a percentage of the construction
cost, The newt item would be included in there would be what we call
interest during construction which is. to pay the bond holder while the
buildings themselves are being constructed because legally you cannot
pay rent for something that you don't occupy so that for this one-
year period of time we provide that the interest on the bonds for the
first year or year and a half would be capitalized within the bond
financing, The next item which is also involved is the.various fees
of your architect, your various advisors, consultants, legal fees,
printing costs, and the research fund which is a fund held throughout
C, C, ' 5/31/66
'CIVIC CENTER REVIEW Continued
Page Twelve
the life of the bonds,, We intend that you will have more money than
you will need when you build this thing,, We want you to wind up with
something in excess of what the actual costs are, We want you to do
this because the financing is sort of closed -in in the sense that once
you sell your bonds you couldn't come back and decide you need more,
There are numerous ways in which you can be credited for what expense
money you have left over,
The furnishings can be a part
of this if you want them to be, You can put in any legally and
judtifiable item, Just keep in mind the greater you make the bond
issue, the more it will cost you every year,
Councilman Gleckmano I was thinking about the lien on
a general fund and if we are
going to need money out of our general fund and not have the money in
order to pay our obligation, we will have a problem,
Mr, Herman Zelleso You are going to have to live
within your means. The bond
buyer will be more concerned here from a legal standpoint that the
limited sources from which his payment can come from but you are
going to look at costs very carefully. Time is a factor, too,
• Councilman Gleckmano As to the additional space that
we have in this complex once it
is completed as far as leasing certain facilities to State and County
and other offices, is the joint powers authority the ones that set
up the terms of a lease, the amount paid, and who to lease to?
Mr, Herman Zelleso Not unless you want them to,
This goes back to the joint
powers agreement, Within each of the various structures you would
have a right to sublease them to whoever you want,
Councilman Gleckmano I need an opinion, Would you
feel that going to joint powers
authority that it is a system in which you can best pay for a city
hall and a complex of this type or is it just another way of circum-
venting the people when it comes to general obligations bonds, keeping
in mind that what we are proposing here is of dual purpose and general
obligations bonds could never accomplish this,
Mr, Herman Zelles You both have available to you
both means of financing, In
each instance, I think it is safe to say you are never circumventing
the voter because by legal steps the voter can stop you from doing
anything he wants to whether it be a bond issue or the like. This is
always difficult to say what you do and what you don't do because the
circumstances and the situations are so different, I really don't
know how to answer your question in the sense that this is not really
a -means of'circumventing the voter because in many instances votes
are required to do exactly what you want to do, The Legislature of
the State of California made this means of financing possible, It
gave it its legal blessing, It wrote some pretty good rules as to
how you can use it, The intent was to protect the taxpayer who
eventually will pay for whatever any public agency does,
m1,2
C,, Co 5/31/66
CIVIC CENTER REVIEW Continued
Page Thirteen
Councilman Gleckmano Under joint powers if some part
of this new facility qualifies
for federal funds such as civil defense or the tunnel, et cetera, does
this have anything to do with the joint powers agreement allowed by
the State or this o0
Mr,, Herman Zellese I think it depends on what it is
and who it is ford if the
prospects of getting some federal money and I think probably the only
thing you would have would be on some of your emergency equipment,
this would be between the City and the federal government and it would
be something that we would have to work out with the bonding house and
whatever agency of the federal government it is who is involved.
Councilman Gleckmano There would be nothing in the
disallow accepting this money? joint powers agreement that would
Mr,, Herman Zellese No,, The federal government just
wants to be sure you can pay
for whatever portion they are going to share with you,,
Councilman Nichols-, How could the voters in West
Covina stop this Council
• from building this facility under a joint authority or a lease back?
Mr,, Herman Zelles° There would have to be a
referendum petition because you
have to do this by executive order of the Council,, They would be
testing your right to enter into this agreement,,
Councilman Nichols-, The courts have held that only
an ordinance is subject to
referendum and not an executive order,,
Mr,, Herman Zelles. I think it is safe to say that
any action can be put into the
courts and whether the people are successful or not in doing this
involves time, et cetera,, The probabilities are that unless there
were something that absolutely was terrible the courts would not uphold
the petition but then against this, why, you have all of the legal
advice that you have to be sure there aren't any problems involved,,
Councilman Gillum-,
City Manager, Mr,, Aiassao
we started this program and that
program,, It has been updated,,
Councilman Gillum-,
Mr,, Joe Thomas-,
Mr,, Aiassa, this report is how
old?
I think about three years old,
That was the initial book when
book helped us get a federal assistance
How realistic is this information
in here as of today?
It is pretty realistic,, It has
held up very well,,
e13®
Co C,, 5691/66
CIVIC CENTER REVIEW m Continued
Mayor Krieger -
Councilman Snyder -
Page Fourteen
The booklet was distributed
after May of 1964,,
It was initiated prior to that,,
Councilman Gillum,, Mr,, Fast, under this communi-
cations contract have we contracted
with someone to make a study of our requirements and needs for the
communications within this building?
Public Services Director, Mr,, Fast, We hired a communications
consultant to not only look
into our needs but attempt to predict what our future needs would be as
well as to advise us as to an :11increimental procurement program so we
wouldn't have to buy everything now and yet be able to incorporate
the new concepts and frequencies and what -have -you that communications
are coming up with for both the City Hall and the police building,
incorporation of such little things like should we have an intercom
through the telephone system which has lots of high monthly rental
rates or should we have our own and they make these economical balances,,
The E,O,,C,, people from San Francisco have quizzed me somewhat unsuccessfully
insofar as the financing is concerned and they felt that their matching
funds would not be applicable then under lease purchase,,
Councilman Snyder -
How about under joint powers?
Public Services Director, Mr,, Fast- Public authority is all right,,
Mayor Krieger- Mr,, Kay, Mr,, Zelles in his
comments referred to our tax.
rate,, Our tax rate at the present time is 99�,, What portion of that
is considered or is all of it considered as against our capacity in this
regard?
Finance Director, Mr,, Kay- Only the capital outlay fund
and the general fund portion
of that is considered a charge against the dollar limit which is
about 65fi0 We have the movability between several funds,, .
Mayor Krieger- Mr,, Thomas, with respect to this
master landscaping plan which
presupposes a joint development with the County, two years ago we didn't
have that,, We had a big plan where we have the courthouse and the
library as far as the developmental aspects of it are concerned,, From
an architectural standpoint, from a developmental standpoint, forgetting
the method of financing for a moment, it strikes me as much more
advantageous to try to plan our civic center through cooperation with
the County in development of these joint use areas,, Is this basically
correct?
• Mr,, Joe Thomas- I think so,,
Mayor Krieger- Has this imposed
and architectural
aspect that you weren't immediately visualizing when you
this project?
upon your firm
services an
undertook
a14®
C. CO 5/31/66
CIVIC CENTER REVIEW Continued
Rage Fifteen
Mr. Joe Thomas I think it has. The more people
you introduce into solving a
problem the more complicated it becomes. We have found the County to
be very cooperative and we see no difficulties in working with the
County if that is your decision in developing these joint facilities
such as the mall and so forth. We see no difficulties in working with
the County.
Mayor Kriegero I was struck by the fact that
two years ago we had at least
some resolved problems that were going to have to be ironed out with
the County. We seem to be well along the line., this land exchange,
access, parking, landscaping, everything to the south of the civic
center which involved the County and there seems to be many steps
towards formulation of solutions to those problems.
Mr. Joe Thomas° I think the answer to that is that
in the absence of decisions having
been made that were necessary for the total development we have gone
ahead with development designs just under the risk or the assumption
that the City and the County would get together on this. The plan you
see here, the colored plan, was prepared by the County and it is based
a hundred per cent on our designs which we had previously prepared
and gave to the County. I might say, too, the County has been enthus-
iastic about this general design concept and have accepted it.
Mayor Kriegero Mr. Zelles, to get down to
specifics as far as your firm
is concerned, when we contracted with Stone and Youngberg before the
last bond issue it was based upon a percentage of the amount of bonds
that were ultimately utilized. Is basically the services of Stone and
Youngberg set up along the same lines?
Mr. Herman Zelles° Yes. The steps involved are
very much the same. Certain
documents that you use as a non-profit corporation are a different
set of documents than used for the joint powers but the mechanics of
it, all the steps would be the same with the exception that on one end
you are not involved with the S.E.C. and the I.R.S. but there are
other things you do because it is a public agency.
Mayor Kriegers
that the need for
subjects than the
implements this.
Mr. Herman Zelles°
I gathered from your comments
and I think it is rather apparent
legal counsel encompasses a much broader range of
joint authority in terms of the documentation that
.bit of documents involved,
thing under and call it a
it is, you have need for a
mentation, various leases,
joint authority or regular
general obligation bond.
This is also true of the lease/
lease back. There are quite a
I think when you sort of put this whole
sophisticated type of revenue bond, which
great deal of legal work involved, docu-
et cetera. This is true not only with a
revenue bond but not quite the same as a
Mayor Krieger,, Mavbe you and Mr. Thomas can
fie ldthis next one because I
think it overlaps, that is the ultimate dollar that we are going to
have to pay for this development and the two aspects of it that concern
_15- 1
•
0
C, Co 5/31/66
CIVIC CENTER REVIEW m Continued
Page Sixteen
me with the capital costs which Mr. Thomas suggests depends somewhat on
timing and Mr, 'Zelles the difference in the interest rates between G,O',
and joint authority, which is a ballpark guess at best, I realize, but
as I understand your guesstimates it is somewhere between a quarter and
half a percentage over the 0,0, rate, what you could expect in a G,O,
rate on a receptive market all other things being equal, together are
you in a position to evaluate these two factors one in connection with
another? You use four or five per cent as far as capital cost
fluctuation is concerned
Mr, Herman Eelle.s
Mayor. Krieger,,
percentage consideration?
costs?
In terms of the contingency
allowance,
The increase in capital cost,
Mr, Thomas, is this a fair
What is our next jump likely to be in capital
Mr, Joe Thomas We have found that over the past
five years that the rate on the
work we have been doing has been going up at about three per cent per
year, There is a lot of indication that this is going to be
accelerated, There is indication that it is being accelerated at the
present time, It is hard to say we can depend on three per cent per
year in the next period but I doubt it will be over five per cent at
the most,
Councilman Krieger, Why would it be accelerated?
Hr. Joe Thomase Because of the ways of
negotiations that have taken
place in the immediate past and the general rise in labor costs and
material costs, The indications are that all of these are going up at
a more rapid rate than they have in the past period, Right at the
very moment we have indications that bidding right now is very good
because of the general economic conditions, There has been some
slow down in construction but that is looked upon to be quite a
temporary thing and maybe it will last for three or four months, There
is no way of knowing about that,
Mayor Krieger,
Has anybody, Mr, Aiassa, on our
staff or Mr, Zelles, to your
knowledge, ever equated a three per cent per year capital jump to
build these facilities in terms of its equivalent in interest rate
differential between the G,O, and the joint authority?
Mr, Herman Zelle.so Originally what you want to know
is how much will the whole
thing be, We guesstimated it would be once before on.the basis of
an architect's estimate, nine or ten months ago which was two million
six, This was under the concept of possibly using the lease/lease
back, I think the total project by the time when we put the capitalized
interest and all the other items, totals somewhat in excess of three
million dollars, This is just a guess- three million one; three
million two, For.every million dollars of cost you have in bond Funds
and lets assume just four and a half per cent interest rate, you have
forty-five thousand of just interest that you are capitalizing so a
three million dollar project, the interest factor alone is a hundred.
twenty-five thousand. This gets back to the thing we were concerned
o1.6m
C,, Co ' 5/31/66
CIVIC CENTER REVIEW m Continued
Page Seventeen
• about before,, Before you move ahead you must put these numbers all
together; you must determine what your maximum costs are going to be
because this in terms relates to what you are going to have to pay
and then it is a cost of going in and taking your construction bids and
relating your actual bids, which is the proof of the ,pudding, to what
your projected figure is and can you or can you not do it,,
Mayor Krieger, In order to -compare likes and
likes I don't imagine it would
be very difficult m�th6ms.ttce.1.1y� to take a 2,,6 million dollar project
and make an assumption that that 2,,6 million dollar project can be
financed under general obligations bonds that would sell at, say,
3,,75 or take any interest rate that you want to take in today°s market,,
Mr,, Herman Zelles° I think you can make a comparison,,
There are some things you can
do and others that you cannot. There are plusses and balances,, You are
required to have a reserve fund, for example, with the joint authority
system,, You won't have this same requirement with the general obligation
bond,,
Mayor Kriegere This is the type of computations that_
•I think might be quite interesting,, _To
keep as many factors constant in that equation as you can, adjusting
only those two which seem to be of immediate and paramount concern, and
that is your projected percentage increase and capital costs which
appears to be a certainty, oe
Mr,, Herman Zelle.se The architect spoke of three
and four per cent,, It depends on
the type of projects you build,,
Mayor Kriegera Take your lowest percentage
increase o I haven't heard
anybody say below three and I haven't heard you say in your interest
differential above a half per cent,, I assume it would not be impossible
to sit down with a 2,,6 million dollar project projected on a three
per cent increase on the one hand as against paying a half a per cent
interest greater over term and see where you come out,,
Mr,, Herman ZelI.eso
Mayor Krieger,,
We can do that this evening,,
Before the evening is out will
you give us that figure?
Mr,, Herman Zelless Yes,, Three per cent of two and
a half million would be seventy-
five thousand,, You are saying for every year of delay the cost would
be seventy-five thousand and you can compound that, too, if you want
to,,
Finance Director, Mr,, Kayo A one-year delay that three per
dent costs ninety thousand but
over the life of the bond it begins to approach almost double,,
Mr,, Human Zelleso Let's take the project of two
million six; let's assume what
the total amount of' interest would be paid over a period of twenty-
five9 thirty years,, The numbers are relative,, Let's assume it is
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CO C,, 5/31/66 Page Eighteen
CIVIC CENTER REVIEW Continued
• thirty years for all practical purposes,, How much interest is paid over
a thirty-year period of time at four per cent,, four and a half per cent,
which is the maximum, and the difference between the two is the
instrumental, cost,, We relate that to each year of delay in terms of the
project,, I think this is the number that you want,, I might only throw
one more thing in; that is the interest differential is not a true
differential because the present worth of money today and over thirty
years is not the same,, What is the present value of this money? I
don't have the tables with me,,
Councilman Snydera Is interest on municipal bonds
or bonds issued this way paid
on the unpaid balance or on the face amount of the bond?
Mr,, Herman Zelles° It amounts to the same thing,,
It is on the amount of bonds
outstanding at the time each year and as the bonds mature the interest
rates keep going down,,
Finance Director, Mr,, Kaye You might ask Mr,, Zelles to
comment on the trustee,,
Mr,, Herman Zellese I think that once you get past
the construction stage and when
the building is ready for occupancy your lease payments have to be on
a true lease, a fixed annual sum for a certain period of time,,
Councilman Snyder,, Where do you envision the blue
ribbon committees fitting into
this? Is that the next topic of discussion?
Mayor Krieger,, The postcards have started coming
in,, The civic center was my
top priority,, It would be my hope to create that committee early in
June,,
Councilman Snyd.er� I would suggest in forming these
committee, I don't recall whether
this was done with the central business district committee, that either
Mr,, Aiassa or one of his staff be designated as a staff liason with the
Councilmen.apponted'to this committee,,
Mayor Krieger° This was most specifically done
at all stages,, Mr,, Aiassa and
Mr,, Fast are, in fact, the prime staff delegation and they have been
.working with them and the Planning Director, the Traffic Engineer,
and the Parks and Recreation Director,,
Councilman Snyder,, This is fine,, I just didn't
recall it was ever understood,,
I think since these letters are coming in that we should form this
blue ribbon committee quickly to help us'in this decision regarding
the civic center,,
CJ
11
Co Co ' 5/31/66
CITY MANAGEReS'SALARY*REV=
Page Nineteen
Mayor Krieger; There was an information sheet
submitted to you on city manager
salary comparison; The matter is now on this agenda.
Councilman Gillum; After going over this report it
does appear to me that comparing
your city with cities of comparable size or even smaller that we are
somewhat behind as far as compensation to the City Managero I think if
we are going to take our rightful position in the valley as the headquarters
city that we should in all areas be comr rable with the cities of our
size within the San Gabriel Valley,,
Councilman Snyder; I would like to make one comment
regarding the value of a
professional city manager as compared to a smaller city who may have a
city administrator; During my term on the Council the City has received
funds, particularly in the area of streets and highways, which have been
due to the knowledge that Mr, Aiassa has had regarding the availability
of these funds and I am sure that in a smaller city without professional
help that often times these funt
have been overlooked and not obtained
and I think in this area alone City Manager has -paid in not only
knowing about these funds but using the necessary procedures to obtain
them for the City, the City Manager has paid for any increase in salary
as well as his salary, I think that comparing like cities has nothing
to do with it; doesn't say a thing of the ability of the managers
included, I am for a salary raise at this time,
Councilman Gl.eck.man: I feel after reviewing the chart
that we have that we should take
s ome.action of the job our City Manager has done,, Being new on the
Council I am still very familiar with the efforts in which our City
Manager has worked towards receiving County and other money that with
a lesser type individual would not have been received by this City.,
I would like to see the salary increase be there., I think it is just
a question to what degreeo
Mayor Krieger° I believe there are two questions
involved in this consideration,
One is the job performance of the City Manager, secondly, the
competitive salary structure of other communities, There is absolutely
no question in my mind neither as to the competency of the man per-
forming the job nor to the excellence of the job he performs, I
necessarily look to a salary comparison to other communities of com-
parable size and requirements and the City of [Wiest Covina is below
comparable pay schedules in comparable communities, Therefore,
I would similarly be in favor of an adjustment in the City Manager°-s
salary to bring it into competitive position with like communities,
taking full cognizance of the quality of his work, of his long tenure
with the City, Along those lines, I would recommend to the Council a.
consideration of raising the City Manager's salary monthly to the
sum of $19900,00 which would represent an increase of $106,00 per
month or an increase of six per cent basing this upon my previous
statements as to the performance of his services and a valuation of
cities in Los Angeles County with city managers of similar tenure,
similar population, and similar performances of duties. This would
probably be retroactive to the 1st of June,
®1.90
C,, Co S/31/66
'CITY MANAGER'S SALARY REVIEW Continued
Page Twenty
. Motion by Councilman Snyder, seconded by Councilman Gleckman, that the
City Attorney be instructed to draft a resolution setting the City
Manager's salary at $1,900,,.00 per month as of the lst of June, 1966.
Councilman Nichols-. I believe according to the
information I received that the
last adjustment in the City Manager's salary was last September lst
which was approximately nine months ago,, If my memory serves me right
I believe that one of the reasons that the adjustment was made was
following the budget review and the review of the general recommenda®
tions of the upward shifts or modifications in salary ranges of City
employees in general,, During the preparation of the fiscal budgets
both in West Covina and in other cities, there are often such reviews
that result in changes or shifts in salary ranges of other employees
and it seems to that in light of the fact that there has been only
a nine -month period that has intervened since the City Manager's
salary was reviewed and in light of the fact that all other City
employees will be coming in for some consideration in this area, I
understand Mr,, Gold is about to make a definite recommendation to the
Council, it would be my own feeling, and it has nothing to do with
the element of the discussion that preceded, it would be my own
feeling that I would prefer not to make any adjustment on the City
Manager's salary until we have reviewed again this year the basic
salary structure of the City employees and have completed any action
necessary in that area,,
Councilman Snyder-. I believe it was customary in
the past to consider the City
Manager's salary in January,, Somehow over the years this schedulef
has been differed,,
Action on Councilman Snyder's motion-. Motion passed on roll call as
follows-.
Ayes: Councilmen Gillum, Snyder; Gleckmans Mayor Krieger
Noes-. Nichols
Absent; None
Councilman Snyder-. I would like to suggest a motion
that as a matter of policy that
the City Manager's salary be reviewed every January,,
Mayor Krieger-.
'CIVIC 'CENTER REVIEW (Continued)..
Finance Director, Mr,, Kay-.
Mr,, Herman Zellesg
applied with three per cent
million six to two million
is for a delay of one year
more year the increment in
The increment in the second
The motion dies for lack of a
second,,
Mr,, Zelles has been most
cooperative,, He has those
figures for you now,,
I have some numbers for you,, We
took the two million six and
and that boosts your project from two
six hundred seventy-eight thousand. That
at three percent,, Assuming you delay one.
the first year was seventy-eight thousand,,
year was an additional eighty thousand-,
-20-
C, C, 5/31/66 Page Twenty -One
CIVIC CENTER REVIEW — Continued
• and the increment in the third year would be a total of approximately
eighty-three thousand which meant that over a three-year period of time
the two million six would have increased by two hundred forty-one
thousand, or a total of two million eight fourty=one.
The other number that I took
was this-. This is a lump sum, interest and principal, A project of
two million six at four and one quarter per cent for a period of
thirty years would have an annual cost of about a hundred fifty-five
thousand per year times thirty which would total a grand total of
four million six hundred forty-nine thousand, The same two million six
at four and a half per cent -,for thirty years would have an annual
payment of approximately a hundred sixty thousand a year and the total
--there would be,approximately four million seven hundred fifty-nine
thousand, The two million six hundred seventy-eight, let's say you
delayed the project a year and it cost you seventy-eight thousand more
the next year and let's also assume the in erest rate is still at four
per cent, the annual cost for that would be approximately a hundred
and fifty -thousand per year which would be equal to what the two million
six project would be at the four and a quarter per cent, In actual
figures it is about five thousand dollars per year for one quarter
of'one percent jump that you make,
Councilman Nichols-. The answer is we should have
built this two years ago,
Mayor Krieger-. Is this a fair oversimplification
of what you are saying? If we
wait one year and can get interst money at four per cent one year from
now that it would cost us two thousand dollars a year less to service
and retire those bonds than it would if we went ahead at the project
cost of two million six at a half a per cent higher interest rate now?
Mr, Herman Zelles-. If you were talking about the
annual cost at four and a half
per cent interest over a period of thirty years the annual cost for
two million six would be about a hundred and sixty thousand annually,
both payment and interest, The annual cost for two million six hundred
seventy-eight, which is two million six escalated by one year, at four
per cent and that is just as magic as the four and a half, would be
about a hundred fifty-five thousand, What we are saying is that the
annual cost is five thousand a year more, Once you introduce the present
value of concept into this thing it reduces your overall cost by about
thirty per cent because presumably if you invest money at a minimum
of three per cent per year you could put seventy thousand in the bank
now and --
Mayor Krieger. -
you delay the more you increase
increase the project cost by the
also begin to pay interests,
Councilman Snyders
If you take the four and a quarter
it is about a push, The longer
the other side, Not only do you
escalation in that sense but you
Should we have a recession, it
is possible costs would go down,
-21-
Co Co 5f31/66
CIVIC CENTER REVIEW m Continued
Page Twenty -Two
• Councilman Nichols-, There are so many variableso
Only for my own assurance
let me say that I at no time have expressed a major concern in the area
that you have pursued here this evening, which is the cheapest or which
would be the best though we have talked about one form being cheaper
than the other, My main concern all along in this area has been a
moral issue rather than a financial issue, The financial issue has been
a secondary issue and it is not my concern,
Mayor Krieger-, Thank you, Mr, Zelles, We
appreciate you being with
us tonight,
Mr, Herman Zelle.s-, I would suggest one thing-, That
is simply that as you begin to
deliberate the method that you ultimately select here I would suggest
you engage bond counsel soon if this is to be the case because there is
a great deal of time that has to be spent in the preparation of the
joint powers agreement with documents, It is my understanding that
your plans and specifications are almost finalized and I think the
same is true with the County facilities,
Mayor Krieger-, Mr, Thomas, we would also like
to thank you for taking your
49 time to come down and be with us this evening,
APPOINTMENTS
Mayor Krieger; With the concurrence and permission
of the Council I would like to
make two appointments this evening to two existing vacancies in our
Personnel Board and our Planning Commission
Mr, Robert Young will be appointed
to serve on the Personnel Board effective their first meeting in June
which I believe will be Wednesday, June Bth, Mr, Young is appointed
to serve the unexpired term of William Chamlee, which.: is to June 30, 1967.
To fill the unexpired term of
Councilman Gleckman on the Planning -Commission through June 30, 1968
we would appoint Mr, Robert Jackson, This appointment will be
effective as of the first meeting of the Planning Commission which
will be tomorrow night, June,_, 1966,
' 'COM'MUNI'CATION
Mayor Krieger;
for the flowers and the resolution,
(No objections voiced,)
We have received a thank -you
card from Mr, Templin's family
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•
C, Co 5/31/66
CENTRAL 'BUSYNESS STUDY
Page Twenty -Three
Councilman Gillum., There is a meeting tomorrow
morning with the merchants
association and myself and the chairman of the blue ribbon committee,
We had our meeting last week. I will submit a further report,
'CHAMBER MEETING
Councilman Nichols.,
Councilman Snyder-,
Councilman Nichols-.
Councilman Snyder°
City Manager, Mr, Aiassa.,
'E'LECTION 'DAY
Councilman Nichols.,
'LEAGUE MEETING
Dr, Snyder, this meeting with the
Chamber is Thursday noon for sure?
I believe that's correct, Didn"t
you get a letter on it?
No,
I would suggest that Mr, Windsor
find out the facts and advise
myself and Councilman Nichols,
We will take care of that,
Next Tuesday is Election Day,
We hope everybody votes,
Councilman Snyder-. I am the delegate to the League
of California Cities and there
is a meeting Thursday night and there is an adjourned meeting of the
Human Relations Commission and they have specifically asked that I be
there that night, Is anybody else able to go to the League meeting?
Mayor Krieger.,
'MO'NTER'EY 'TRIP REPORT
I will see if I can make it, If
not, I will ask a member of the
staff to cover that meeting,
• Councilman Gleckman< I am preparing a report on my
visit to the Councilmen and
1Kayors7 Institute'in Monterey and you should have it at your next
meeting,
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C,, Co 5/31/66
• ' ADJOURNED MEETING
•
Page Twenty -Four
Mayor Krieger,, Monday, June 6th, is supposed to
be an adjourned meeting of the
Council,, We have water, a joint meeting with .the Planning Commission
on the General Plan,, Is there anything else for that meeting?
City Manager, Mr,, Aiassaa No,, We have the condemnation
for the Valencia well on Azusa
Avenue,, I' will need a Council decision on that,,
There being no further business, Motion by Councilman Snyder, seconded
by Councilman Gleckman, and carried., that this meeting be adjourned at
10005 P,,M,, to Monday, June 6, 1966 at 7e30 P,,M,,
AATTEST °
CITY CLERK
APPROVED
MAYOR
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