Council Takes on New City Hall Design
• More Money Has to Be Borrowed to Pay for the Changes
BY BILL KOENEKER
BY BILL KOENEKER
The Malibu City Council is expected to take another stab at how to finance the improvements required to turn the new city hall complex into a functional office building for staff, while at the same time offering money-making public amenities, such as a theater and recording studio.
The council will be told that the preliminary construction estimate will remain the same at $3,755,000. That is the same estimate that was used by the staff at the previous meeting when the council discussed the matter. At that time, the council directed the staff to see if they could trim that estimate to lower the costs. The staff was also directed to return to the council with further details on those preliminary costs.
LPA Inc., the city’s architect, will present the design and estimate costs to the council.
At the same time, the city council is expected to make the final decision on incurring another $7 million of indebtedness to finance the makeover of the new city hall in the form of certificates of deposit.
“Pursuant to the lease/purchase agreement, the city will covenant with the owners of the certificates to annually budget and appropriate from the city’s general fund sufficient funds to make all lease payments pursuant to the lease purchase agreement. The city will issue an amount not to exceed $7 million of certificates, which will generate up to $5 million in proceeds for the City hall improvements. Certificates proceeds will also fund a debt service reserve fund, capitalized interest with respect to the certificates for three years and pay costs of issuing the certificates,” wrote Assistant City Manager and Administrative Services Director Riva Feldman, in a staff report.
Feldman will tell the council the annual lease payment associated with the certificates will be about $480,000.
The council and the architect agreed that in constructing the building there should be space for a senior center, emergency operations center and community theater.
Councilmember Pamela Conley Ulich, who has been the lone outspoken critic of using COPs to finance the improvements, wants the council to explore the feasibility of forming an Ad Hoc Committee for New City Hall Cost-Saving Options.
Conley Ulich has repeatedly expressed concern that the city council is not being given time for sound decision making.