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363 <br /> <br /> Mr. Mercer inquired what the procedure would be. <br /> <br /> Ms. Markolf replied that the School District would advance the <br />money to construct the gymnasium. She indicated that the plans <br />have been approved by the Office of the State Architect (OSA) and <br />that the project would go out to bid in August and be awarded in <br />October. <br /> <br /> Ms. Acosta stated that the details of the financing plan have <br />yet to be discussed but that what would effectively happen is that <br />the School District would extend a loan to the City, and the City <br />would have a more attractive interest rate and a shorter repayment <br />time period than if Certificates of Participation were sold. The <br />Certificates of Participation would commit the community for 20 <br />years, which Staff feels is not feasible at this time because the <br />payments would have to be made out of the Operating Budget. <br /> <br /> Mr. Buster McCurtain, AssiStant Superintendent for Business of <br />the Pleasanton Unified School District, indicated that the School <br />District is willing to proceed with the loan agreement as long as <br />the agreement is a good faith promise and a legal contract that is <br />binding on the City and that the School District will have the sum <br />of money equal to the amount agreed upon at the end of the loan <br />period. He continued that any financing plan between the City and <br />the School District would have to be in place in the next few days <br />because the School District has an educational program that it has <br />to deliver to its students. He stated that the City must make a <br />decision soon, either to finance the gymnasium or cancel the joint <br />agreement to build the gymnasium, because the parents have been <br />informed that a gymnasium would be built, and if that does not <br />happen, the School District would need to come up with another <br />program that would be acceptable to the school community. <br /> <br /> Ms. Acosta indicated that Staff would bring a report back to <br />Council on the August 20th meeting. <br /> <br /> Mr. Clark Gunson, a member of the Pleasanton Unified School <br />District Board, indicated that he could not commit School District <br />funds to pay for the gymnasium without a legal contract that would <br />be binding on the City. <br /> <br /> Mr. Mercer stated that if the City is unable to finance its <br />share of the double gymnasium, the City would be under a moral <br />obligation to reimburse the School District for the $500,000 it has <br />already spent towards the construction of a double gymnasium. He <br />indicated, however, that he would rather appropriate the $500,000 <br />towards the construction of the double gymnasium. <br /> <br /> - 15 - <br /> 8-6-91 <br /> <br /> <br />