HomeMy WebLinkAboutAgenda Statement 1987/01/06 Item 14a, b COUNCIL AGENDA STATEMENT
Item 14a, b
Meeting Date 1/6/87
4 ITEM TITLE: a) Resolution Approving Second Amendment to Agreement
between the County of San Diego and the City of Chula Vista
for the final design and construction of the Bayfront Trolley
Station
b) Resolution/0 7 Approving Agreement between the County
of San Diego and the City of Chula Vista for the transfer of
rents at the Bayfront Trolley Station
SUBMITTED BY: Director of Public Works/City Engineer
REVIEWED BY: City Manager (4/5ths Vote: Yes X No )
The Transit Coordinator received the attached letter from Sharon Reid, Deputy
Director, Department of Public Works, requesting that the City approve two
agreements relative to the Bayfront Trolley Station. The Second Amendment to
the City/County Agreement for Bayfront Station Construction increases the
total project cost from the previous estimate in April 1986 from $5.2 million
to $6.5 million and the City's 50% share to $650,000. The County is
requesting the City to contribute $169,500 of the $650,000 increase now, in
anticipation that the $961 ,000 in State funds for this project previously
approved by the State will be released. The second agreement provides for the
County to transfer to the City rent collected from Cabrillo Lanes, Inc. prior
to October 21 , 1986, in the amount of approximately $40,000. By Resolution
No. 551 adopted by the Redevelopment Agency in December 1984, the Agency
determined that it could legally finance the Bayfront Station project. In
order to increase funding for the project as contained in the Second
Amendment, it will be necessary for the Agency to hold a public hearing which
is scheduled for February 5, 1987.
RECOMMENDATION: That Council :
1 . Approve Second Amendment to Agreement between the County of San Diego and
City of Chula Vista for the final design and construction of the Bayfront
Trolley Station.
2. Request the Redevelopment Agency to appropriate $169,500 for the Bayfront
Station Project.
3. Approve agreement between the County of San Diego and the City of Chula
Vista for the transfer of rents at the Bayfront Trolley Station.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
Page 2, Item 14a, b
Meeting Date 1/6/87
DISCUSSION:
The County of San Diego has revised cost estimates for the Bayfront Trolley
Station Project based upon Phase I completion costs, settlement costs for
property acquisition, and Phase II construction. This revised estimate is
$6,500,000 which is an increase of $1 ,300,000 from the projected cost of
$5,200,000 in April 1986. The major cost components of the project are
indicated below:
Estimate April 1986 Current Estimate Change
Construction (Phase I) $1 ,919,000 $2,139,000 $ 220,000
Land Acquisition 2,992,000 4,054,000 1 ,062,000
Construction (Phase II) 289,000 307,000 18,000
Total $5,200,000 $6,500,000 $1 ,300,000
Funding sources are:
County of San Diego $2,769,500
City of Chula Vista Redevelopment
Agency Tax Increment Funds 2,622,500
City Right-of-Way 147,000
State Intermodal Funds 961 ,000
$6,b00,000
The land acquisition costs include estimated settlement costs on all parcels
at the station including Seymour Rabin, the owner of the property in which
Cabrillo Lanes is a tenant. The estimated settlement on the Rabin property is
$2,213,000. With the acquisition of the Rabin property, the City/County will
own the land and building shell . The tenant's interests, which include
furniture, fixtures and equipment, are yet to be resolved. In addition,
relocation and good will interests have not been resolved, although the
current land acquisition estimate of $4,054,000 includes relocation and good
will . As directed by the Redevelopment Agency, the future operation of
Cabrillo Lanes is being evaluated by City and County staff, and a report will
be brought to the Agency by April 1987.
The total project estimated cost increase from $5.2 million to $6.5 million
increases the City's share by $650,000 (1/2 of $1 ,300,000). However, at this
time, the County is requesting the City to contribute only an additional
$169,500, assuming that the $961 ,000 in State of California intermodal funds
which have been approved will be released prior to April 1987. If these funds
are not released prior to April 1987, the County will request the City in
March 1987 for an additional contribution of approximately $480,500 ($650,000
minus $169,500).
With regard to the second agreement before Council for consideration, in
October 1986, both Council and the Board of Supervisors approved an agreement
for operations and maintenance of the Bayfront Trolley Station. Under the
terms of that agreement, the County is to transfer all rents received from the
Page 3, Item 14a, b
Meeting Date 1/6/87
Cabrillo Lanes tenant to the City of Chula Vista to offset operating
expenses. The monthly rent is in the amount of $4,000. However, the County
Auditor and Controller requires a separate agreement to allow the County to
also transfer all rents received prior to October 1986 which totals
approximately $40,000. Upon approval of this agreement, therefore, the
$40,000 will be transferred to the City's revenue fund for operation and
maintenance costs at the Bayfront Trolley Station.
FISCAL IMPACT: The Second Amendment to the Agreement between the County and
City for final design and construction of the Bayfront Trolley Station
increases the total estimated cost for the project from $5.2 million to $6.5
million with the City's 50% share increasing by $650,000. However, in
anticipation of release of the $961 ,000 in State funds previously approved by
the California Transportation Commission for the Bayfront Station Project, at
this point in time the County is requesting the City contribute $169,500.
CalTrans staff anticipates a decision on the release of the $961 ,000 in
February 1987.
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