SUBJECT: ANNUAL STATUS REPORT ON THE BRANCH LIBRARY BOND PROJECTS
That the Mayor and Council accept this report on the library bond projects.
After overwhelming voter approval of the Branch Library Bond Measure in November 2000, the City Council appointed the Library Commission as the Citizen Oversight Committee to conduct an annual public hearing and prepare an annual report informing the Council and public of the appropriateness of bond expenditures, the progress of the various projects, and the results of the annual audit on or before December 31st of each year.
On October 10, 2001 the Citizen Oversight Committee for the Library Bond Projects conducted a public hearing regarding the Branch Library Bond Measure approved by voters in November 2000. Richard Desmond, Deputy Director for the Library Bond Program and Scott Johnson, Finance Director presented information to the Committee regarding the appropriateness of bond expenditures, the progress of the various projects, and the results of the annual audit.
This report to the Mayor and Council provides an update on the status of the branch library bond projects at the end of its first fiscal year (2000-01).
In 2000-01,
Public Works and Library staff started work on the first branch library
projects. Design contracts were awarded
and design began on the Berryessa, Blossom Hill, and Tully Road branch
libraries. A site for the new Tully
Road Branch adjacent to the Police Department’s Tully Stables was identified
and the owner accepted the City's offer to purchase. Site plan studies for the Berryessa Branch and the Tully Road
Branch location were also started.
A template branch building program was completed in March. The building program has been customized for the Blossom Hill Branch Library and will be the basis for the rest of the branches. It will be customized for each branch based on community input and special service area needs. A Request for Proposal was issued and interviews conducted for an environmental graphics consultant for program wide interior and exterior sign design and specifications.
In summary, three library projects, including two new and one replacement facility, were underway in 2000-01. Land acquisition for new and relocated branch libraries was also begun.
PROJECT
SCHEDULES
A schedule for all projects was presented to the Council in a March 2001 staff report and subsequently included in the Adopted 2002-2006 Capital Improvement Program. All projects are currently on the established schedule.
PROJECT
FINANCING, REVENUE AND EXPENDITURES
The City had a very successful General Obligation (GO) bond sale on May 23, 2001 for the City’s first series totaling $71 million to fund library and parks projects. Of the bonds sold, $31 million constitute libraries bonds. The City expects to issue additional GO bonds under the Measure O and Measure P authorizations over the next five to eight years. It is projected that all of the $31 million in bonds that have already been sold for library projects will be encumbered or expended by June 30, 2002.
In addition to the $31 million in bond revenue received in 2000-01, interest earned totaled $48,612 for total revenue of $31,048,612. Bond expenditures and encumbrances for 2000-01 totaled $3,382,078.
The independent accounting firm of Macias, Gini & Company completed the annual audit of all city funds in September 2001 for the fiscal year ended June 30, 2001. The audited financial statements, known as the Comprehensive Annual Financial Report (CAFR), included an extensive review of the Branch Libraries Bond Projects Fund. As part of the outside auditor’s review, any significant issues are identified and commented upon. A comprehensive presentation of the audited financial statements was made by the Finance Department and the City’s independent outside auditors to the City’s Finance and Infrastructure Committee on September 26, 2001. No significant issues were identified in the Branch Library Bond Projects Fund.
PUBLIC
INPUT
Two residents addressed the Oversight Committee. Both speakers inquired into the status of the location and timing of the new Rosegarden Branch Library.
CONCLUSION
There has been significant progress made on the branch library bond projects since passage of Measure O in November 2000. Design of the first three branches is well underway, along with site selections and identifications for new and relocated branches. The Oversight Committee encouraged staff to increase public awareness and outreach regarding the status of the library bond program. The Library Bond Program is on schedule and on budget.
Edna Sewill, Chair
San Jose Library Commission