Gilroy’s City Council approved an $18.18 million bid for a new
library on Monday before voting to issue $26 million in bonds to
pay for it.
Gilroy’s City Council approved an $18.18 million bid for a new library on Monday before voting to issue $26 million in bonds to pay for it.
The council unanimously approved the bid from Milpitas-based Devcon Construction that was nearly $5 million less than the estimated base price of the project. The bid also includes several improvements beyond the base price, namely photovoltaic panels, solar panel maintenance costs, parking improvements on Rosanna Street and floor moisture sealer work.
“Who says this council can’t get a 7-0 vote?” Mayor Al Pinheiro said with a grin, making reference to the fact that council votes are often split.
Later in the meeting, the council voted unanimously once again to issue $26 million in bonds after some discussion about whether or not to issue a lesser amount.
Councilman Dion Bracco said that he did not want to spend all of the money that has been allocated toward the library if there was no need to do so. Yet City Finance Director Christina Turner noted that voters agreed to spend $37 million on the project when approving Measure F in 2008.
She recommended approving at least $21.5 million on Monday to ensure there would be contingency funds if the library project ended up costing more than Devcon anticipates. She also said there may be additional costs if bonds were issued in three stages rather than two as planned.
Chick Adams, an attorney who provides counsel for the city on bond matters, said that federal tax law requires cities only to approve as much bond money as they believe they can reasonably spend within the next three years, although he did not want to discourage the council from setting aside money for contingencies.
At the same time, any remaining cash that is left over three years from now can be set aside in a trust fund where it can earn interest, he said.
