HomeMy WebLinkAboutIR 7161 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7161
To the Mayor and Members of the City Council
'December 22, 1986
Subject:
'RESPONSES TO QUESTIONS/CONCERNS RELATING TO EQUESTRIAN CENTER PROJECT
In response to questions and/or concerns raised at the Saturday work session
on the Equestrian Center project, the following information is provided:
# What is the impact on potential revenue of a 1988 construction schedule
as opposed to a 1987 schedule?
Based on projections contained in the Moore Diversified Services , Inc.
economic impact study on the Will Rogers Complex, a 1988 construction
schedule would result in approximately $725,000 less revenue over the
next three calendar years. (See attached work sheets)
# What is the estirr,�
_ted interest earnings (arbitrage) on the $12 million
in Equestrian Center bonds over the term of the project?
Finance ' Director Judson Bailiff estimates that approximately $1 million
in interest will be earned from investing proceeds of the $12 million
sold in May, 1986.
# Are there other potential savings that could be achieved in addition
to those identified at the Saturday work session?
The staff, the Architect, and the Contractor are committed to work
cooperatively to identify and achieve other savings wherever possible.
In addition, the independent Construction Inspector who will be
hired for this project will be involved in this process.. The Council
Cultural District Committee will be updated on whatever schedule they
wish to establish and the entire Council will be given a status report
at each month's work session.
# Can we expect overages on other major projects approved in the 1986
Capital Improvement Program?
Staff will provide a briefing at the February work session on the
status of all' major projects in the bond program with an estimated
cost of $1 million or more (approximately 20 projects). Any potential
overages will be identified and highlighted. In addition, the monthly
CIP status report *currently provided to Council will highlight any
anticipated funding problems.
Staff will be prepared to discuss -these issues further at the December 22
Pre-Council Meeting.
bci-/Douglas Harman
City Manager*