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Council approves financing to help relocate County Department of Public Social Services office; city to assume building after 30 years
Summary
The council approved a financing arrangement to help the County Department of Public Social Services (DPSS) relocate to a seismically safe building; proponents said the county and city negotiated terms so the city would assume ownership at the end of the financing term and sought to protect the city's fiscal exposure.
The council voted to approve an agreement providing financing (reported in the discussion as approximately $44 million requested by county staff in the accompanying presentation) to support the County Department of Public Social Services' (DPSS) relocation to a seismically safe facility on Pico Boulevard.
Public comment urged caution about the city taking on new leased facilities without a clear long-term plan for the city's existing 6,500 miles of streets and infrastructure. One speaker said the city should not accept additional maintenance burdens without a long-range maintenance plan.
Councilmembers and city staff described the transaction as a pass-through tax-exempt financing for a county project that includes protections for the city. Staff said the escrow was scheduled to close imminently and that the financing mechanism was slightly different from prior pass-throughs; the city sought language to minimize liability and to clarify that the county is responsible for performance and repayment. Councilmember motions included adopting the CAO's recommendation and the CAO report was accepted in the motion.
The council approved the item on a roll call of 11 ayes. Staff said, over the financing term (noted as 30 years), the city would ultimately own the building, and they asked the council to approve the CAO report and recommendation to proceed.
