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SR-6-C (107) , . . {;,-c . . . 104-01-4 jUL 2 6 1988 CA:lM:aksjsrbrnlpa Council Meeting: July 26, 1988 Santa Monica, Californ1a TO: Mayor and City Council l (; (/ - ( , - ) - / } FROM: C1ty Staff SUBJECT: November 1988 Ballot Measure for Library Property Acquisition Introduction ThlS report presents for City Council approval a resolution which determ1nes it is 1n the publ1C interest for the City to acquire and improve certain real property adjacent to the City's Main LibrarYl and requests that the City Council dlrect the Clty Attorney to draft for Councll consideration at its August 9, 1988 meet1ng an approprlate ordinance to place a general obllgat;on bond issue on the November 1988 ballot for th1S project, and to prepare other assoclated ballot materials. Background On May 24, 1988, the City Councll directed staff to take actions necessary to place a measure on the November 1988 ballot to purchase property adjacent to the Main Llbrary frontlng Santa Monlca Blvd. for future expans10n and to be used temporarily to provide additional parklng for library patrons and staff. ThlS action was taken in response to a request of the Library Board. The Library Board's request was based on a 1986 library space study which recommended that the present Maln Llbrary be enlarged to at least 87,000 square foot by the year 2,000 in order to meet the future needs of library users. The study also recommended that certain real property adjacent to the Main Library be acquired to provide the needed space. Subsequent review by City staff and a financial consultant indicated that the most economical way to raise the funds necessary for thlS project was to - 1 - 6-C, JUl 2 6 1988 . . . . . obtain voter approval for the issuance of general obligation bonds, thereby allowing an associated increase in the City/s property tax rate to finance the annual debt service payments on the bonds. One effect result1ng from the passage of Proposition 13 in 1978 was to prohibit local governments from issuing general obligation bonds financed by an increase in the local property tax rate. However, w1th voter approval of Proposition 46 in 1986, local governments rega1ned authority to increase local property taxes above the Proposition 13 limit of 1% of full cash value by issuance of general obligation bonds, provided: a) two-thirds of those voting in the authorizing elect10n approve such measure, and b) the bond proceeds are used exclusively to acqu1re and/or improve real property. The placing of a general obligation bond measure on the ballot is a two step process: - A C1ty council resolution must be adopted by two-thirds vote of all councll members which finds that the public lnterest or necess1ty demands the acquisition, construction or completion of a municlpal improvement project; - At any subsequent meeting, an ord1nance must be passed by two-thirds vote of all council members ordering the subm1ss10n to the voters of the C1ty of a proposition for the issuance of general obllgatlon bonds fOf the municlpal improvement project. Council approval of the attached resolution and direction to the City Attofney to prepare the necessary ordinance and associated ballot materials w1l1 satisfy the first step in this process. - 2 - . . Resolution of Public Interest or Necessity The resolution intlates proceedings for the proposed General Obligatlon Library Bonds, by making a findlng that the public interest or necessity demands the actions identified therein (acquisition and improvement of real property). Such resolutlon requires a two-thirds vote of the City Council members for adoptlon. Direction to City Attorney Followlng adoption of the attached resolution, the City Attorney should be directed to draft an approprlate ordinance for the August 9, 1988 City Council meeting. The ordinance must order the submisslon of the proposed General Obligatlon Library Bond issue, for the purposes set forth in the resolutlon of publlC interest or necesslty, to the qualified voters of the City of Santa Monica at the November, 1988 electlon. Budget and Financlal Impact Staff wlll present at the August 9, 1988 Council meeting the total cost, associated annual debt service requirement, and tax rate impact for this project. Staff does not believe it is appropriate to request voter approval in November 1988 for construction of a library expanSlon as well as property acqulsltion because insufflClent tlme has been avallable to plan for such a complex undertaklng. Should the proposed General Obllgation Library Bonds issue be approved by the voters in November 1988, staff will recommend to the Council capital funds to proceed with the necessary expanslon planning. - 3 - . . Recommendation It is recommended that the City Council: 1) Adopt the attached resolution which flnds it is in the public interest to place before the voters in November, 1988 a General Obllgation Library Bonds measure to acquire and improve certain real property adjacent to the City's Main Library for future expansion and temporary use as parklng; and 2) Direct the C1ty Attorney to present for City Council consideration at the August 9, 1988 Council meeting an ordlnance placing such a measure on the November 1988 ballot, and assoclated ballot materials. Prepared by: John Jalili, Clty Manager Linda Moxon, Deputy City Attorney Mike Dennis, Director of Finance - 4 - . . . CA:RMM:moxd164/hpw City Council Meeting Santa Monica, California RESOLUTION NUMBER II - (City council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA DETERMINING THAT THE PUBLIC INTEREST DEMANDS THE ACQUISITION AND IMPROVEMENT OF REAL PROPERTY FOR THE PURPOSES OF EXPANSION AND PARKING NEEDS FOR THE SANTA MONICA PUBLIC LIBRARY WHEREAS, the City of Santa Monica owns and operates a municipal improvement commonly known as the Santa Monica Public Library Main Branch, located at 1343 6th street in the city of Santa Monica (hereinafter "Library"): and WHEREAS, in order to provide for anticipated needs of the Library and the pUblic it is desirable that the City acquire certain real property adjacent to the Library for parking and expansion requirements: and WHEREAS, pursuant to Government Code Sections 43600 et seq. the issuance of general obligation bonds is a permissible means of financing the acquisition, construction, or completion of a municipal improvement such as the Library: and WHEREAS, the Library is a valuable City resource Which serves the community and the general public at large: and WHEREAS, in order to satisfy the growing needs of the community, it is necessary for the City to make plans and take action to accommodate parking and future expansion of the Library, - 1 - , . . , . NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA HEREBY FINDS, RESOLVES, AND DETERMINES AS FOLLOWS: SECTION 1. The public interest and necessity demands and requires the city's acquisition and improvement of certain real property adjacent to the Santa Monica Public Library Main Branch in order that plans for anticipated expansion and parking needs of such municipal improvement may be fulfilled, and to assure that the Library may continue to serve the growing needs of the public. SECTION 2. The city Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: ~M. ~ ROBERT M. MYERS City Attorney - 2 - c . . . . . $100,000, to Ocean Park Communi ty Center for rehabilitation of the facility. Funds in the amount of $200,000 for the rehabilitation of the remainder of the facility are available in General Fund Reserves. Appropriation authority is requested in Account 01-720-262-000-952. RECOMMENDATION City staff recommends that the City Council: (1) approve appropriation authority in the amount of $100,000 in account 01-200-262-143-506: (2) approve the award of funds, not to exceed that amount, to Ocean Park Community Center for rehabilitation of the homeless portion of the facility; and (3) approve appropriation authority in the amount of $200,000 in account 01-720-262-000-952. Prepared by: Barbara stinchfield, Community Development Manager Department of Community and Economic Development - 4 -