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SR-6-C (111) . 6-c .. r 0 L{.... 0 1'Lf jUL 2 6 1988 CA:LM:aks/srbmlpa Councll Meetlng: July 26, 1988 Santa Monlca, Callfornla TO: Mayor and City Council FROM: City Staff SUBJECT: November 1988 Ballot Measure for Library Property Acquisition Introduction ThlS report presents for Clty Council approval a resolutlon WhlCh determines it is in the public interest for the Clty to acqulre and lmprove certaln real property adjacent to the City's Main Library, and requests that the Clty Council direct the City Attorney to draft for Councll conslderatlon at ltS August 9. 1988 meeting an appropriate ordinance to place a general obllgation bond issue on the November 1988 ballot for this project, and to prepare other assoclated ballot materials. Background On May 24, 1988, the City Councll dlrected staff to take actlons necessary to place a measure on the November 1988 ballot to purchase property adjacent to the Main Library frontlng Santa Monlca Blvd. for future expanSlon and to be used temporarlly to provide additional parklng for library patrons and staff. This action was taken in response to a request of the Library Board. The Library Board's request was based on a 1986 l1brary space study WhlCh recommended that the present Main Library 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 acqulred to provlde the needed space. Subsequent reVlew by City staff and a flnanclal consultant indicated that the most economical way to ralse the funds necessary for this project was to - 1 - 6-C JUt 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 flnance the annual debt serVlce payments on the bonds. One effect resulting from the passage of Propositlon 13 in 1978 was to prohibit local governments from lssuing general obligation bonds financed by an lncrease in the local property tax rate. However, wlth voter approval of Propositlon 46 in 1986, local governments regalned authority to increase local property taxes above the Propositlon 13 limlt of 1% of full cash value by issuance of general obligation bonds, provlded: a) two-thirds of those votlng in the authorizlng electlon approve such measure, and b) the bond proceeds are used excluslvely to acquire and/or improve real property. The placlng of a general obligation bond measure on the ballot is a two step process: - A City councll resolution must be adopted by two-thlrds vote of all council members WhlCh finds that the public interest or necesslty demands the acqulsltion, construction or completlon of a munlclpal improvement project; - At any subsequent meetlng~ an ordinance must be passed by two-thirds vote of all council members orderlng the submlssion to the voters of the City of a proposition for the issuance of general obligation bonds for the municipal improvement project. Council approval of the attached resolution and dlrectlon to the City Attorney to prepare the necessary ordlnance and associated ballot materlals wlll satisfy the first step in this process. - 2 - Resolution of Public Interest or Necessity The resolution intiates proceedings for the proposed General Obllgation Library Bonds, by maklng a finding that the public interest or necessity demands the actions identified therein (acqulsition and lmprovement of real property). Such resolutlon requires a two-thirds vote of the City Councll members for adoption. Directlon to Clty Attorney Following 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 submission of the proposed General Obligation Library Bond lssue, for the purposes set forth in the resolutlon of public lnterest or necesslty, to the qualified voters of the City of Santa Monlca at the November, 1988 electlon. Budget and Flnancial Impact Staff wlll present at the August 9, 1988 Council meeting the total cost, assoclated annual debt service requirement, and tax rate impact for thlS project. Staff does not believe lt is approprlate to request voter approval ln November 1988 for constructlon of a library expanslon as well as property acquisitlon because insufflcient time has been avallable to plan for such a complex undertaking. Should the proposed General Obligation Library Bonds issue be approved by the voters in November 1988, staff will recommend to the Council capltal funds to proceed with the necessary expansion planning. - 3 - . ". ,- '- , BEFORE DISTRIBUTION CHECK CONTENT OF ALL FOR CITY C~ERKIS ACTION DISTRIBUTION OF RESOLUTION * 7~ S-S- ORDINANCE * Council Meeting Date 7ht/~t Introduced: r") Agenda Item II r; - C!- Adopted: QJ f/c 1\lNAYS PUBLISH AOOP'l1:D ORDINANCES* -..... Was it amended? *Cross out Attorney's approval 0 '" ...... , 0\ VOTE: Affirmat1ve: <7 - () If) Negative: CJ Abstain: u c: Absent: n.1 -) PROOF VQTE~ WITH ANOTHER PERSON BE~ORE A~WTHING c ..; DISTK.:iBUTluN: uKIGINAL '[.0 be slgIied; -sealed and 'filed in '{ault:. "t:l j..., 0 NEWSPAPER PUBLICATION (Date: , ) Q.l > Pepartment originating staff report ( * ) ..; ~ *C1ty Attorney does not want copies of his orcu.t}ances or resolutions. u CI.l tdanagement Ser~~se~ Lynne Bar,rette urd1nances only ~ j..., . +J Agency mentioned in document or staff report 0 ::: (certi fied?) - >. ~ Subject file (agenda packet) I c: I- --- 0 Counter file .... 1 +J < ~ Others: (Review for depai- i..i(ents ~ need to kn::w). t':l . ~ - +J Alrport Parking Auth. "'d Aud1torum Q) Personnel ,..J VI Q) Building Dept. Planning ::::l C" Q.l C:....11....uni ty and Econcmic [)eV. Police (en- s... Q:I forcement?) u Finance ( "4 Purchasing . ~ 4-1 Fire 0 Recr/Parks VI General Servo - >.. Transportation ll.l t::' LIbrary j..., -- Treasurer 0 ~ Manager ..... < >.. SEND F()U~ COPIES OF ALL ORDINANCES. TO: *Check COde Sect~cns befor;:;: s':?l1dIr. .... ..; CODFD SYSTE~1S, At!n Peter Maclearie u .i.:) 0 "fjLin- ~t raet ~ ...... AVrJ . ~T~W Jersey. 01717 0 r C'O SEND FOUR COPIES-OF ALL OROTNANr.FS _to: ~ ~tfift ~r1ck · s... ll.l M NICA MUNICIPAL COURT Ll ~725 MAIN STREEt Room 118 3 0 0:: SANTA MON!CA, CA 90401 TOTAL COPIES . - ~- . . Recommendation It is recommended that the City Council: 1) Adopt the attached resolution WhlCh finds it lS ln the public lnterest to place before the voters in November, 1988 a General Obligation Library Bonds measure to acquire and improve certain real property adjacent to the City's Maln Library for future expansion and temporary use as parking; and 2) Direct the Clty Attorney to present for Clty Councll conslderation at the August 9, 1988 Council meeting an ordinance placlng such a measure on the November 1988 ballot, and assoclated ballot materials. Prepared by: John Jalili, City Manager Llnda Moxon, Deputy City Attorney Mike Dennls, Director of Finance - 4 -