HomeMy WebLinkAboutReso 2001-378 RESOLUTION NO. 200-378
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE APPROPRIATION OF
ADDITIONAL FUNDS IN THE AMOUNT OF $800,000 FROM
THE TRUNK SEWER CAPITAL RESERVE FUNDS TO PAY
FOR CONSTRUCTION OF TELEGRAPH CANYON TRUNK
SEWER IMPROVEMENTS
WHEREAS, funds for the construction of the Telegraph Canyon Trunk Sewer system
were previously budgeted in the Fiscal Year 2000/2001 Capital Improvement Program (CIP)
budget process and will be financed utilizing a combination of two funding sources; the
Telegraph Canyon Gravity Basin DIF and the Trunk Sewer Capital Reserve Funds; and
WHEREAS, the Telegraph Canyon Gravity Basin Development Impact Fee (DIF) Funds
is derived from developers that have paid into the DIF established to fund these improvements
and the current balance is approximately $1,000,000, which is insufficient to completely fund the
required improvements to install approximately 7,250 lineal feet of PVC pipe within the
Telegraph Canyon Trunk Sewer system which will cost $3,200,000; and
WHEREAS, the City also derives revenue from new developments in the form of sewer
capacity fees that are paid into the Trunk Sewer Capital Reserve Fund which can be used to pay
for the costs of improving the capacity of the City's sewer infrastructure pursuant to Section
3.14.010 of the City's Municipal Code; and
WHEREAS, since the Telegraph Canyon Trunk Sewer is currently the only fully
operational trunk sewer line serving the developments in the eastern territories, in addition to
some of the built-out areas in the western portion of the City, this infrastructure is crucial for the
continued growth of the City and the City's ability to support existing and new development; and
WHEREAS, it was for this reason that the City Council previously authorized the
appropriation of additional funds in the amount of $1,400,000 from the unappropriated balance
of the Trunk Sewer Capital Reserve Fund into the project account during the Capital
Improvement Program budget review process when the initial project estimates based on the
preliminary project plans clearly showed that the DIF would be unable to completely fund the
construction of the required improvements; and
WHEREAS, since the budgeted funds are insufficient to fund the construction of the
required improvements, staff is recommending that Council authorize additional appropriation of
$800,000 from the unappropriated balance of the Trunk Sewer Capital Reserve Funds to allow
the construction of the Telegraph Canyon Trunk Sewer improvements by The EastLake
Company to proceed; and
WHEREAS, under the DIF reimbursement process, The EastLake Company will advance
all the necessary funds to design and construct the project and will be reimbursed through the
DIF in accordance with the provisions of Ordinance No. 2533; and
WHEREAS, approval of this staff recommendation will authorize the appropriation of
the required funds and authorize The EastLake Company to construct the improvements and be
reimbursed from the project account.
Resolution 2001-378
Page 2
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby authorize the appropriation of additional funds in the amount of $800,000
from the Trunk Sewer Capital Reserve Fund to the project account for Telegraph Canyon Trunk
Sewer to pay for the construction of Telegraph Canyon Trunk Sewer improvements.
Presented by Approved as to form by
Jol~l P. Lippitt J~/IM. Kaheny ~
Public Works Director City Attomey
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
Califomia, this 13th day of November, 2001, by the following vote:
AYES: Councilmembers: Davis, Padilla, Rindone, Salas and Horton
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Shirley Horto~Mayor
ATTEST:
Susan Bigelow, City Cleric
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2001-378 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 13th day of November, 2001.
Executed this 13th day of November, 2001.
Susan Bigelow, City Clerk