pages: CityCouncil/2010-06-15.pdf, 18
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CityCouncil | 2010-06-15 | 18 | picking the perfect rate is difficult because the transaction is complicated; a lot of factors go into achieving a rate; that he would suggest having a present value savings of 5% to 6%; all of the other numbers would wash out; Legacy Holdings went through an exhaustive analysis to see its actual savings would be; the City received an email stating that Legacy Holdings should be making a payment. Mayor Johnson inquired what are Legacy Holdings property taxes, to which Mr. Holmstedt responded approximately $2 million. *** Councilmember Tam left the dais at 11:00 p.m. and returned at 11:04 p.m. The Interim City Manager stated the $2 million is not delinquent. Mayor Johnson inquired whether the estimated savings would be more conservative than expected. Mr. Holmstedt responded in the affirmative; stated $9 million was set as the maximum for the principal amount of the bonds for Marina Village; last time numbers were run, the amount was approximately $8.5 million; Harbor Bay is at $10,780,000; the resolution states not to exceed $11.5 million; the idea is to set parameters so that the market can do its job; the bid process would be competitive; the City needs to ensure there is enough room because of the nature of public noticing; a bond sale is scheduled for competitive bids on June 23rd; the transaction is good; the total transaction cost, including financial advisory fees and what underwriters would be allowed to achieve, would be less than what was estimated for doing it another way. In response to Councilmember Gilmore's inquiry, Mr. Reynolds stated the rule of thumb is that financing does not make sense unless there is a present value savings of at least 3%; the limit could be put at 6% because the present value savings is anticipated to be more than 3%. Councilmember Matarrese moved adoption of the resolutions with the limit [present savings value of 6%] and direction to set a policy on single source bids across the board. Mayor Johnson stated the issue should be discussed in more detail in order to establish a comprehensive set of policies. The Interim City Manager stated the matter would be placed on the June 24th special meeting agenda. Under discussion, Mr. Thimmig clarified that the Council resolutions would not need to be amended to include present value savings but the APFA resolution would be amended. Regular Meeting Alameda City Council June 15, 2010 | CityCouncil/2010-06-15.pdf |