HomeMy WebLinkAboutagenda.council.worksession.20080812MEMORANDUM
TO: Mayor and City Council
FROM: Steve Barwick -City Manager
DATE OF MEMO: 8-8-08
MEETING DATE: 8-12-08
RE: November 2008 Ballot Measure
SUMMARY: Staff has been working with the Construction Experts Group to create design and
construction methodology alternatives for the remaining phases of the Burlingame Ranch
affordable housing project. These altematives were to be used in creating a bond election for
additional Burlingame construction. We had hoped that the design options and associated cost
estimates would be available by mid September in order to allow voters adequate time before the
November ballot to debate the issue and conduct campaigns.
Unfortunately, it is unlikely we will be able to meet this timeline. It is possible for staff to
prepaze detailed cost estimates and an associated bond question for the original Burlingame
program that was previously presented to the community. However, we do not expect to be able
to provide this level of detail for the higher density option currently being created by the
Construction Experts Group. Since City Council had planned to consider this alternative
before proceeding with a Burlingame bond question, it is my recommendation that the City
not proceed with a Burlingame construction bond election in November, 2008. Some
alternatives are suggested below.
PREVIOUS COUNCIL ACTION: At the June 10, 2008 work session, City Council reviewed
several policy issues related to potential ballot measures. City Council directed staff to:
• Plan for a ballot question for renewal of the Housing/Daycare sales tax in May, 2009.
• Continue working with the Construction Experts Group to prepaze an alternative for
future Burlingame phases that would include a greater density of units.
• Prepaze a timeline of work necessary to create a potential November bond question for
additional construction at Burlingame.
• Proceed with draft partnership agreements for 488 Castle Creek Drive.
• Prepare a proforma for non-seasonal housing at 488 Castle Creek Drive.
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REQUEST OF COUNCIL: Evaluate options for November and/or May ballot measures
related to Burlingame or otter affordable housing topics and provide staff direction.
DISCUSSION:
If Council agrees with the recommendation to not conduct a November ballot measure for
bonding additional construction at Burlingame, there aze several other possible ballot questions.
These include:
Option A: An advisory question related to the density of additional construction at
Burlingame.
This question would ask voters if they prefer the next construction at Burlingame be consistent
with the original Shaw/Poss/DHM proposal or if it should include a greater number of units,
modulaz construction, some stacking of units, etc. as is currently being studied by the
Construction Experts Group.
Option B: Renewal of the 0.45% HousinglDaycare sales tax.
Much of the discussion leading up to City Council's decision to place this question on the May
ballot surrounded the topic of sepazating it from any specific proposal for housing construction.
To stay consistent with that philosophy, City Council may choose to place this measure before
the voters in November.
Option C: Authorization to issue $16,000,000 in bonds to reimburse the housing fund for
land acquisitions made in 2007 and to extend the RETT tax.
The City has spent $34,858,000 in creation of a land bank for future affordable housing projects.
In doing so, the City has borrowed $8 million from the Wheeler Opera House Fund.
Financing of the land acquisition costs was anticipated by the City Council and reimbursement
resolutions were passed by the Council at the time of the land acquisitions.
Assuming a 30 year bond term, the annual cost of a 16M bond issuance would be $1,017,000.
This is based on an average interest rate of 5.25%. Issuing these bonds would allow repayment
of the Wheeler Opera House loan and would provide working capital for the Affordable Housing
Fund. The working capital would be azound 7 million dollazs and would provide contingencies
for ongoing projects and revenue fluctuations.
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Oation D: An advisory question giving City Council general direction to proceed with
future Burlingame construction that is consistent with the recommendations of the
Citizens' Budget Task Force, the Performance Audit, and the Construction Experts Group.
The question would determine if there is support for completion of the project if done in
accordance of recommendations of Citizens Budget Task Force, Performance Audit and
Construction Experts group.
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