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HomeMy WebLinkAbout08.01.2018 Regular Minutes @6:30MINUTES REGULAR MEETING MEASURE W CITIZENS' OVERSIGHT COMMITTEE c�L1F0RA OF THE CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 Meeting to be held at: MUNICIPAL SERVICES BUILDING COUNCIL CHAMBERS 33 ARROYO DRIVE SOUTH SAN FRANCISCO, CA WEDNESDAY, AUGUST 1, 2018 6:30 p.m. Call to Order. Time: 6:30 p.m. Roll Call. PRESENT: Chair Zemke, Vice Chair Wong, Committee Members Alcalde, Brosnan, and De Paz PUBLIC COMMENTS None. MATTERS FOR CONSIDERATION 1. Motion to approve the Minutes from the meeting of June 6, 2018. MOTION Committee Member Alcalde moved and Committee Member Brosnan seconded a motion to approve the minutes for the meeting of June 6, 2018. The motion carried unanimously. 2. Report regarding the Community Civic Campus quarterly update for Quarter 4 Fiscal Year 2017- 2018. (Marian Lee, Assistant City Manager and Dolores Montenegro, Kitchell Program Manager) Assistant City Manager Lee summarized the proposed presentation. Dolores Montenegro, Kitchell Program Manager, provided an update on the events completed over the last three months, finances, and active contracts. Committee Member Alcalde discussed the $199 million project estimate with $15 million for possible change in Fire Department and requested reconciliation. Assistant City Manager Lee discussed engagement of the Smith Group, outreach and public meetings. She discussed the impact of construction cost escalation. She identified the direction provided by the City Council for a $210 million project. She explained the proposal to phase the community center. In response to Vice Chair Wong, Assistant City Manager Lee clarified the budget modification from Council for the $210 million project. .L' Committee Member Alcalde asked if estimate construction cost increases were included. Assistant City Manager Lee stated the estimate included 2.5 years of construction escalation. Committee Member Alcalde confirmed that the contingency was included. Committee Member Brosnan asked if the project included the same square footage and operations within the buildings. Assistant City Manager Lee explained the modifications to the parks and rec space and surface parking. Committee Member Brosnan asked about funding for the Fire Station. Assistant City Manager Lee stated the cost was $15 million and MSB property was assessed at $8 million. Committee Member Brosnan expressed sensitivity to the day one motivation for a public safety facility. In response to Chair Zemke, Assistant City Manager Lee stated the schematic design would continue through the end of the year. Ms. Montenegro explained the process of conceptual design, design development, and construction documents. Committee Member Brosnan asked about the fees for the Smith Group. Chair Zemke asked about travel costs. Assistant City Manager Lee stated $34 million in program management costs included Smith Group and Kitchell. In response to Vice Chair Wong, Assistant City Manager Lee stated the contract was based on deliverables and other related expenses. Vice Chair Wong asked if the City's travel policy was followed. Director Lee stated the administrative instruction related to travel expenses only applied to City employees. Committee Member Alcalde asked about consultant travel. Director Lee stated there was a cap on the contract and staff reviewed expenses. Committee Member Brosnan asked how much of the $210 million would need to be raise. Assistant City Manager Lee explained the funding plan including cash on hand and bond proceeds. Committee Member Alcalde asked if the $70 million would be available. Director Lee stated those presumptions were included. Committee Member Alcalde asked if bond counsel would address questions. Director Lee explained that they were the City's financial advisor could respond and bond counsel would be brought on board following issuance of debt. REGULAR MEASURE W COC MEETING AUGUST 1, 2018 MINUTES PAGE 2 Committee Member Brosnan questioned the required funding. City Manager Futrell summarized the presentation to Council on June 13, 2018 and workshop on July 13, 2018. He discussed the funding gap of $25 million and use of Measure W funds. He explained the need to build the Fire Station after the MSB was vacated. Committee Member Brosnan agreed with the phased approach. Committee Member De Paz requested information on phasing within Phase 1. Assistant City Manager Lee stated Plan A was to build all buildings association with parks, library, police and community theater. She explained the option to phase the community theater. 3. Report regarding Measure W Fiscal Year 2017 -18 financial reports as of June 30, 2018 (Richard Lee, Director of Finance) Director Lee presented the 2017 -18 financial reports for Measure W. Vice Chair Wong asked the 2018 -19 budget for Measure W. Director Lee stated the adopted budget included $9.7 million for Measure W revenues. Director Lee explained the unassigned fund balance. �SEP; Committee Member Brosnan asked if the planned revenue would increase. Director Lee stated the changes and assumptions were incorporated into the adopted budget at $9.7 in anticipated revenues. He discussed the sales tax estimated retraction, therefore not leveraging all Measure W dollars. Mina Richardson questioned travel reimbursements and the sale of the MSB. City Manager Futrell stated the City only owned the current building. Ms. Richardson requested payments be retained separately. She stated there were no minutes to show the payment information. Chair Zemke asked if the minutes were available on the City's website. Director Lee confirmed they were and stated he would assist Ms. Richardson. 4. Presentation regarding Community Civic Campus debt financing (Sarah Hollenbeck, Managing Director, PFM Financial Advisors) Director Lee introduced the item and financial advisors. Sarah Hollenbeck, Managing Director, PFM Financial Advisors, provided an overview of the Civic Campus debt financing, including projected construction to begin February 2020, lease payments, City's credit ratings and pledge of General Fund, financing process and timeline, risks and considerations, and history of municipal market index. Committee Member Alcalde discussed rising estimates and use of General Fund if Measure W income was not sufficient. He asked if a vote was required on use of General Funds. Ms. Hollenbeck explained the required payment of debt service if the assumption of growth was not as initially estimated. Committee Member Alcalde asked about lease revenue bonds. Ms. Hollenbeck explained the formation of a financing authority. Director Lee confirmed that the General Fund would cover the delta between debt service payment and Measure W. He stated the payment would come from non - departmental funds. Committee Member Alcalde asked if the amounts REGULAR MEASURE W COC MEETING AUGUST 1, 2018 MINUTES PAGE 3 would be based on the amount of area or space. Director Lee stated the Police Department, Library and Parks and Recreation were supported by the General Fund. Vice Chair Wong asked about the three year requirement to spend the funds. Ms. Hollenbeck explained the need to be able to certify that the funds would be spent at the time of issuance of bonds, audits and restricted earnings on unused funds. In response to Committee Member Brosnan, Ms. Hollenbeck discussed review of expenditure and revenue projections and anticipated bond issuance in February 2020. ADJOURNMENT At 7:53 p.m., Chair Zemke adjourned the meeting. Subm ' 7z t N--- Gabrie Rod ' eputy City Clerk City of South San Francisco REGULAR MEASURE W COC MEETING MINUTES Approved by: i William Zemke, hairman City of South San Francisco AUGUST 1, 2018 PAGE 4