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HomeMy WebLinkAboutAgenda Statement 1987/03/10 Item 8 COUNCIL AGENDA STATEMENT Item 8 Meeting Date 3/10/87 ITEM TITLE: a. Resol r of Intention to reserve development credits for Rancho Del Rey Partnership b. Resolution Approving bond and agreement for construction of improvements on East "H" Street c. Resolution Making findings on a petition requesting the acquisition of certain public improvements to be acquired pursuant to the terms and provisions of the "Municipal Improvement Act of 1913" d. Resolution Adopting a map showing the proposed boundaries of Special Assessment District 87-1 e. Resolution Approving an acquisition/financing le,/ agreement between the City and the Rancho Del Rey Partnership SUBMITTED BY: Director of Public Works/City Engineer REVIEWED BY: City Manager (4/5ths Vote: Yes No X ) Last December it was reported to Council that in accordance with the Development Agreement for EastLake, issuance of building permits had been stopped. The Facilities Financing Plan, which was a part of the SPA approval for EastLake, provided that only a certain number of building permits could be issued prior to the commencement of construction for four lanes of pavement on East "H" Street between I-805 and Otay Lakes Road. Although the widening of East "H" Street in this location is ultimately the responsibility of Rancho Del Rey, EastLake needs to have the road under construction in order to receive further building permits. EastLake, McMillin, Rick Engineering, and the City have been working diligently since December to commence construction of this project. McMillin Development Company (MDC) has agreed to complete the plans, get a permit, and construct the drainage and grading improvements ahead of any tentative map approvals for their development. They have also requested that the City do a feasibility study to finance the six lanes of East "H" Street between Terra Nova and Buena Vista by using an assessment district over their properties. Although MDC is willing to commit to funding the grading ahead of an assessment district and ahead of any tentative map approvals for El Rancho Del Rey, they are not willing to commit to the entire six lanes improved prior to tentative map approvals. It is the Planning Department' s estimate that the SPA Plan and tentative map approvals won't be to Council for public hearings until the latter part of August or early September. Page 2, Item 8 Meeting Date 3/10/87 In order to release building permits for EastLake, City staff is insisting that security in the form of bonds and agreements be provided to the City for a minimum of four lanes of improved roadway (as provided for in the Facilities Financing Plan for EastLake). Therefore, there is an additional agreement and bond from EastLake to guarantee that the work of putting the pavement, concrete, improvements, etc. on top of the grading will be commenced within 30 days upon completion of the grading. RECOMMENDATION: That Council approve resolutions "a" through "e". BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: On October 28, 1986, Council approved agreements with consultants for the preparation of a feasibility plan and implementation program for financing certain public improvements for East "H" Street pursuant to the provisions of the "Municipal Improvement Act of 1913" and approved an Assessment District Reimbursement Agreement between the City and the Rancho Del Rey Partnership in which the Partnership advanced $100,500.00 to pay all costs for necessary consultants and an appraisal of the land proposed to be assessed. In order for EastLake to continue to receive building permits, it is necessary for the road to be under construction prior to the normal time that McMillin would begin work on the roadway. McMillin Development Company is willing to commit funds for grading and drainage on the roadway prior to any tentative map approvals (vested rights for development), but they are not willing to go any further until such time as a SPA Plan and the first tentative map have been approved. In order to ensure that completion of the road project will be guaranteed now, and to satisfy the needs of the McMillin Development Company, EastLake Development Company, and the City in relation to enforcing the Facilities Financing Plan for EastLake, the following items of work have been completed. 1 . The engineers for the developers have completed the grading and drainage plans for East "H" Street and the City has signed the plans. 2. McMillin will bond 100% of the grading costs and has a valid contract for the grading and drainage work. 3. EastLake has prepared a bond and an agreement stating that should McMillin not go forward within 30 days after the grading is completed with the surface improvements so that four lanes of pavement can be on the ground, the City would have a right to call that bond and finish four lanes of improvements. Therefore, prior to construction of the roadway and release of any further building permits, the City will have the road under construction and be insured that there will be a minimum of four lanes of pavement completed by guarantee per the development agreement with EastLake. Page 3, Item 8 Meeting Date 3/10/87 4. In consideration for the early commitment of a sizable amount of money by the McMillin Development Company, they have requested that the City Council adopt a Resolution of Intention reserving development credits for Rancho Del Rey Partnership. This resolution (attached Item a, above) would reserve 30,000 trips for SPA I which would relate to approximately 22,500 trips from SPA I on East "H" Street daily. Staff has reviewed the numbers involved and concurs that with "H" Street at six lanes and the FBA improvements at I-805 and East "H" Street, 22,500 trips can be handled at a level of service of C on East "H" Street even with other development expected in the City's eastern sector. Resolution of Intention McMillin Development Company's position is that prior to its expending $4 million for street improvements on East "H" Street that it be given some assurances from the City that it can have at least 30,000 trips allocated for their development. The total SPA I trips are approximately 40,000 trips, while the remaining Rancho del Rey SPAs bring total trips for Rancho Del Rey to 58,000. It is clear to everyone that prior to other roads being improved in the eastern area including SR-125, Otay Lakes Road, Telegraph Canyon Road, etc. , Rancho Del Rey cannot be completely built out. Therefore, their position is that before they commit to $4 million, they want to have a reasonable amount of trips designated for them instead of some other developer. The resolution further provides that as other highway in the eastern areas are completed, i .e. , SR-125 and other streets as mentioned above, and trips are removed from East "H" Street MDC will be given equitable treatment to be able to continue the development of their project. In 1980, the Gersten Companies entered into an agreement with the City for the construction of East "H" Street. This agreement provided a system whereby East "H" Street would be installed on a pay-as-you-go basis. The City of Chula Vista contributed approximately $1 .7 million towards that effort, $700,000 of which was considered to be a City contribution. It was fully the intent of the City to be paid back $1 .2 million based on the trip generation rates of the 1978 General Development Plan for El Rancho Del Rey. Since that time, it has been proposed that a Facilities Benefit Assessment District originally created for EastLake would be spread over the entire eastern area. McMillin objects to being required to put in four lanes of East "H" Street under an assessment district, and also pay the City back $1 . 9 million, and furthermore be required to pay the full amount for the FBA. They feel it would be more equitable since McMillin has done no development in Rancho Del Rey and there are currently 17,000 trips on the road, to have the FBA pay back the City its funds. The resolution does not resolve this issue; however, it does state that the City staff is directed to bring back a proposal to include in the East Chula Vista Benefits Assessment District the sums which are reimbursable to the City pursuant to the 1980 "H" Street Agreement. Staff believes that is reasonable. The consultants that are updating the FBA for the eastern area have been instructed to take these concerns into consideration. Page 4, Item 8 Meeting Date 3/10/8 7 Assessment District for Rancho Del Rey The consultants have completed a financial feasibility analysis for the construction of four additional lanes to East "H" Street including full width grading and associated drainage and parkways, curb and gutter, sidewalk, street lights, traffic signals, guardrail , and raised landscaped median with decorative concrete for a length of approximately 9,900 feet. Also included were appurtenant water, sewer, storm drain and utility structures. The above facilities would be constructed by the Rancho Del Rey Partnership and "acquired" by the City when construction is completed. The petition also proposes and the feasibility analysis considered the construction under a City-administered public contract, the construction and installation of the Rice Canyon Sewer and the construction of the storm drainage system in the canyon with associated revegetation. The following is a summary of the proposed improvements and the estimated costs: East "H" Street Street $3,991 ,431 Water 1 ,054,216 Sewer 93,158 Storm drain 792,051 Utilities 1 ,647,075 Sub-Total $7,577,931 Contingencies (+15%) 1 ,136,690 TOTAL $8, /I4,621 Rice Canyon Sewer and Drainage Sewer $ 344,500 Drainage structures 679,000 Sub-Total $1 ,023,500 Contingencies (+15%) 153,525 TOTAL $1 ,177,025 The total cost of improvements and incidentals (reserve fund, design, inspection consultants, etc. ) will require a bond sale of about $12 million. The financial consultant (Kadie-Jensen and Johnson) has completed a "Value to Lien Ratio Analysis" to make a determination as to the financial feasibility of the proposed assessment district. This analysis relates the value of the property after the proposed improvements are constructed to the amount of the assessment which will be levied against the property. The analysis shows that lien ratios are substantial for the properties within the assessment district with the exception of the "School/Church" parcel which is marginal at 1 to 1 .69 but still within the range of acceptability. In the final analysis, the consultant has concluded that the proposed assessment district is financially feasible and that bonds proposed to be issued will be well secured. Page 5, Item 8 Meeting Date 3/10/8 7 Summary of Council Actions 1 . Approve a Resolution of Intent to allocate 30,000 trips to Rancho Del Rey and treat the partnership fairly regarding future trips and reimbursement agreements. 2. Accept bond and agreement from EastLake Development Company to complete improvements on East "H" Street. 3. Accepted a petition to commence proceeding for the formation of an assessment district for certain infrastructure improvement in East "H" Street and Rice Canyon. 4. Approved an Acquisition Agreement with the Rancho Del Rey Partnership for certain water, sewer, storm drain, utility and street improvements in East "H" Street. 5. Approved a map of the proposed boundaries of the proposed assessment district. FISCAL IMPACT: None to the City. The Assessment District and/or the developer provides for all necessary funding. WPC 2608E •y the City Council of Chula Vista, California Dated L /e7.'- 12 GEORGE T. SIMPSON RE r a V E D INFRASTRUCTURE PLANNING AND FINANCE 4537 OF.VIEW COURT LA MESA.CAUFON IA 92041 (619)462-4257 '87 MAC' -2 "3 :33 CITY OF .�iA March 2 , 1987 CITY CLE rFICE TO: JOHN LIPPIT Cit E ine er FROM: G. SIMPSON / • �T SUBJECT: EAST "H: STREET ASSESSMENT DISTRICT NO. 87-1 Enclosed are the following documents which are now ready for consideration and adoption by the City Council at their March 10 , 1987 meeting: 1 . Petition executed by property owners and lenders of record. 2 . A Preliminary Title Report showing ownership and lenders of record. 3 . An Appraisal of EL RANCHO DEL REY property. 4 . A Certificate of Sufficiency of the Petition indicating that 97% of the property owners within the proposed assessment district have signed the Petition. 5. Original and copy of the proposed Boundary Map. 6 . The Acquisition/Financing Agreement executed by the Rancho Del Rey Partnership (Home Capital and McMillin) . 7 . Three (3) Resolutions for Council action: - Resolution making findings on Petition - Resolution adopting the proposed Boundary Map - Resolution authorizing execution of the Acquisition/Financing Agreement MAC BROWN suggests that items 1 through 6 above should be on file in the Office of the City Clerk prior to the adoption of the resolutions . He also would appreciate receiving conformed copies of the resolutions along with minutes of the Council meeting. Any questions -- please call. cc: Mac Brown . Dick Jacobs Carl Kadie City Clerk COUNCIL AGENDA STATEMENT Item 8 Meeting Date 3/10/87 ITEM TITLE: a. Resolution of Intention to reserve development credits for Rancho Del Rey Partnership b. Resolution Approving bond and agreement for construction of improvements on East "H" Street c. Resolution /275 co. Making findings on a petition requesting the acquisition of certain public improvements to be acquired pursuant to the terms and provisions of the "Municipal Improvement Act of 1913" d. Resolution Adopting a map showing the proposed boundaries of Special Assessment District 87-1 e. Resolution Approving an acquisition/financing agreement between the City and the Rancho Del Rey Partnership Ifie//' SUBMITTED BY: Director of Public Works/City Engineer REVIEWED BY: City Manager (4/5ths Vote: Yes No X ) Last December it was reported to Council that in accordance with the Development Agreement for EastLake, issuance of building permits had been stopped. The Facilities Financing Plan, which was a part of the SPA approval for EastLake, provided that only a certain number of building permits could be issued prior to the commencement of construction for four lanes of pavement on East "H" Street between 1-805 and Otay Lakes Road. Although the widening of East "H" Street in this location is ultimately the responsibility of Rancho Del Rey, EastLake needs to have the road under construction in order to receive further building permits. EastLake, McMillin, Rick Engineering, and the City have been working diligently since December to commence construction of this project. McMillin Development Company (MDC) has agreed to complete the plans, get a permit, and construct the drainage and grading improvements ahead of any tentative map approvals for their development. They have also requested that the City do a feasibility study to finance the six lanes of East "H" Street between Terra Nova and Buena Vista by using an assessment district over their properties. Although MDC is willing to commit to funding the grading ahead of an assessment district and ahead of any tentative map approvals for El Rancho Del Rey, they are not willing to commit to the entire six lanes improved prior to tentative map approvals. It is the Planning Department' s estimate that the SPA Plan and tentative map approvals won't be to Council for public hearings until the latter part of August or early September. Page 2, Item 8 Meeting Date 3/10/87 In order to release building permits for EastLake, City staff is insisting that security in the form of bonds and agreements be provided to the City for a minimum of four lanes of improved roadway (as provided for in the Facilities Financing Plan for EastLake). Therefore, there is an additional agreement and bond from EastLake to guarantee that the work of putting the pavement, concrete, improvements, etc. on top of the grading will be commenced within 30 days upon completion of the grading. RECOMMENDATION: That Council approve resolutions "a" through "e". BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: On October 28, 1986, Council approved agreements with consultants for the preparation of a feasibility plan and implementation program for financing certain public improvements for East "H" Street pursuant to the provisions of the "Municipal Improvement Act of 1913" and approved an Assessment District Reimbursement Agreement between the City and the Rancho Del Rey Partnership in which the Partnership advanced $100,500.00 to pay all costs for necessary consultants and an appraisal of the land proposed to be assessed. In order for EastLake to continue to receive building permits, it is necessary for the road to be under construction prior to the normal time that McMillin would begin work on the roadway. McMillin Development Company is willing to commit funds for grading and drainage on the roadway prior to any tentative map approvals (vested rights for development), but they are not willing to go any further until such time as a SPA Plan and the first tentative map have been approved. In order to ensure that completion of the road project will be guaranteed now, and to satisfy the needs of the McMillin Development Company, EastLake Development Company, and the City in relation to enforcing the Facilities Financing Plan for EastLake, the following items of work have been compl eted. 1. The engineers for the developers have completed the grading and drainage plans for East "H" Street and the City has signed the plans. 2. McMillin will bond 100% of the grading costs and has a valid contract for the grading and drainage work. 3. EastLake has prepared a bond and an agreement stating that should McMillin not go forward within 30 days after the grading is completed with the surface improvements so that four lanes of pavement can be on the ground, the City would have a right to call that bond and finish four lanes of improvements. Therefore, prior to construction of the roadway and release of any further building permits, the City will have the road under construction and be insured that there will be a minimum of four lanes of pavement completed by guarantee per the development agreement with EastLake. / , �_' Page 3, Item 8 Meeting Date 3/10/87 4. In consideration for the early commitment of a sizable amount of money by the McMillin Development Company, they have requested that the City Council adopt a Resolution of Intention reserving development credits for Rancho Del Rey Partnership. This resolution (attached Item a, above) would reserve 30,000 trips for SPA I which would relate to approximately 22,500 trips from SPA I on East "H" Street daily. Staff has reviewed the numbers involved and concurs that with "H" Street at six lanes and the FBA improvements at I-805 and East "H" Street, 22,500 trips can be handled at a level of service of C on East "H" Street even with other development expected in the City's eastern sector. Resolution of Intention McMillin Development Company's position is that prior to its expending $4 million for street improvements on East "H" Street that it be given some assurances from the City that it can have at least 30,000 trips allocated for their development. The total SPA I trips are approximately 40,000 trips, while the remaining Rancho del Rey SPAs bring total trips for Rancho Del Rey to 58,000. It is clear to everyone that prior to other roads being improved in the eastern area including SR-125, Otay Lakes Road, Telegraph Canyon Road, etc. , Rancho Del Rey cannot be completely built out. Therefore, their position is that before they commit to $4 million, they want to have a reasonable amount of trips designated for them instead of some other developer. The resolution further provides that as other highway in the eastern areas are completed, i.e. , SR-125 and other streets as mentioned above, and trips are removed from East "H" Street MDC will be given equitable treatment to be able to continue the development of their project. In 1980, the Gersten Companies entered into an agreement with the City for the construction of East "H" Street. This agreement provided a system whereby East "H" Street would be installed on a pay-as-you-go basis. The City of Chula Vista contributed approximately $1 .7 million towards that effort, $700,000 of which was considered to be a City contribution. It was fully the intent of the City to be paid back $1 .2 million based on the trip generation rates of the 1978 General Development Plan for El Rancho Del Rey. Since that time, it has been proposed that a Facilities Benefit Assessment District originally created for EastLake would be spread over the entire eastern area. McMillin objects to being required to put in four lanes of East "H" Street under an assessment district, and also pay the City back $1. 9 million, and furthermore be required to pay the full amount for the FBA. They feel it would be more equitable since McMillin has done no development in Rancho Del Rey and there are currently 17,000 trips on the road, to have the FBA pay back the City its funds. The resolution does not resolve this issue; however, it does state that the City staff is directed to bring back a proposal to include in the East Chula Vista Benefits Assessment District the sums which are reimbursable to the City pursuant to the 1980 "H" Street Agreement. Staff believes that is reasonable. The consultants that are updating the FBA for the eastern area have been instructed to take these concerns into consideration. Page 4, Item 8 Meeting Date 3/10/87 Assessment District for Rancho Del Rey The consultants have completed a financial feasibility analysis for the construction of four additional lanes to East "H" Street including full width grading and associated drainage and parkways, curb and gutter, sidewalk, street lights, traffic signals, guardrail , and raised landscaped median with decorative concrete for a length of approximately 9,900 feet. Also included were appurtenant water, sewer, storm drain and utility structures. The above facilities would be constructed by the Rancho Del Rey Partnership and "acquired" by the City when construction is completed. The petition also proposes and the feasibility analysis considered the construction under a City-administered public contract, the construction and installation of the Rice Canyon Sewer and the construction of the storm drainage system in the canyon with associated revegetation. The following is a summary of the proposed improvements and the estimated costs: East "H" Street Street $3,991 ,431 Water 1 ,054,216 Sewer 93,158 Storm drain 792,051 Utilities 1 ,647,075 Sub-Total $7,577,931 Contingencies (+15%) 1 ,136,690 TOTAL $B, /14,621 Rice Canyon Sewer and Drainage Sewer $ 344,500 Drainage structures 679,000 Sub-Total $1 ,023, 500 Contingencies (+15%) 153,525 TOTAL $1 ,177,025 The total cost of improvements and incidentals (reserve fund, design, inspection consultants, etc. ) will require a bond sale of about $12 million. The financial consultant (Kadie-Jensen and Johnson) has completed a "Value to Lien Ratio Analysis" to make a determination as to the financial feasibility of the proposed assessment district. This analysis relates the value of the property after the proposed improvements are constructed to the amount of the assessment which will be levied against the property. The analysis shows that lien ratios are substantial for the properties within the assessment district with the exception of the "School/Church" parcel which is marginal at 1 to 1 .69 but still within the range of acceptability. In the final analysis, the consultant has concluded that the proposed assessment district is financially feasible and that bonds proposed to be issued will be well secured. r � COUNCIL AGENDA STATEMENT Item 8 Meeting Date 3/10/87 ITEM TITLE: a. Resolution of Intention to reserve development credits. for Rancho Del Rey Partnership b. Resolution Approving bond and agreement for construction of improvements on East "H" Street c. Resolution Making findings on a petition requesting the acquisition of certain public improvements to be acquired pursuant to the terms and provisions of the "Municipal Improvement Act of 1913" d. Resolution/ 5 ' Adopting a map showing the proposed boundaries of Special Assessment District 87-1 e. Resolution Approving an acquisition/financing agreement between the City and the Rancho Del Rey Partnership SUBMITTED BY: Director of Public Works/City Engineer K// REVIEWED BY: City Manager 4 (4/5ths Vote: Yes No X ) Last December it was reported to Council that in accordance with the Development Agreement for EastLake, issuance of building permits had been stopped. The Facilities Financing Plan, which was a part of the SPA approval for EastLake, provided that only a certain number of building permits could be issued prior to the commencement of construction for four lanes of pavement on East "H" Street between I-805 and Otay Lakes Road. Although the widening of East "H" Street in this location is ultimately the responsibility of Rancho Del Rey, EastLake needs to have the road under construction in order to receive further building permits. EastLake, McMillin, Rick Engineering, and the City have been working diligently since December to commence construction of this project. McMillin Development Company (MDC) has agreed to complete the plans, get a permit, and construct the drainage and grading improvements ahead of any tentative map approvals for their development. They have also requested that the City do a feasibility study to finance the six lanes of East "H" Street between Terra Nova and Buena Vista by using an assessment district over their properties. Although MDC is willing to commit to funding the grading ahead of an assessment district and ahead of any tentative map approvals for El Rancho Del Rey, they are not willing to commit to the entire six lanes improved prior to tentative map approvals. It is the Planning Department' s estimate that the SPA Plan and tentative map approvals won't be to Council for public hearings until the latter part of August or early September. Page 2, Item 8 Meeting Date 3/10/87 In order to release building permits for EastLake, City staff is insisting that security in the form of bonds and agreements be provided to the City for a minimum of four lanes of improved roadway (as provided for in the Facilities Financing Plan for EastLake). Therefore, there is an additional agreement and bond from EastLake to guarantee that the work of putting the pavement, concrete, improvements, etc. on top of the grading will be commenced within 30 days upon completion of the grading. RECOMMENDATION: That Council approve resolutions "a" through "e". BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: On October 28, 1986, Council approved agreements with consultants for the preparation of a feasibility plan and implementation program for financing certain public improvements for East "H" Street pursuant to the provisions of the "Municipal Improvement Act of 1913" and approved an Assessment District Reimbursement Agreement between the City and the Rancho Del Rey Partnership in which the Partnership advanced $100,500.00 to pay all costs for necessary consultants and an appraisal of the land proposed to be assessed. In order for EastLake to continue to receive building permits, it is necessary for the road to be under construction prior to the normal time that McMillin would begin work on the roadway. McMillin Development Company is willing to commit funds for grading and drainage on the roadway prior to any tentative map approvals (vested rights for development), but they are not willing to go any further until such time as a SPA Plan and the first tentative map have been approved. In order to ensure that completion of the road project will be guaranteed now, and to satisfy the needs of the McMillin Development Company, , EastLake Development Company, and the City in relation to enforcing the Facilities Financing Plan for EastLake, the following items of work have been completed. 1. The engineers for the developers have completed the grading and drainage plans for East "H" Street and the City has signed the plans. 2. McMillin will bond 100% of the grading costs and has a valid contract for the grading and drainage work. 3. EastLake has prepared a bond and an agreement stating that should McMillin not go forward within 30 days after the grading is completed with the surface improvements so that four lanes of pavement can be on the ground, the City would have a right to call that bond and finish four lanes of improvements. Therefore, prior to construction of the roadway and release of any further building permits, the City will have the road under construction and be insured that there will be a minimum of four lanes of pavement completed by guarantee per the development agreement with EastLake. Page 3, Item 8 Meeting Date 3/10/87 4. In consideration for the early commitment of a sizable amount of money by the McMillin Development Company, they have requested that the City Council adopt a Resolution of Intention reserving development credits for Rancho Del Rey Partnership. This resolution (attached Item a, above) would reserve 30,000 trips for SPA I which would relate to approximately 22,500 trips from SPA I on East "H" Street daily. Staff has reviewed the numbers involved and concurs that with "H" Street at six lanes and the FBA improvements at I-805 and East "H" Street, 22,500 trips can be handled at a level of service of C on East "H" Street even with other development expected in the City's eastern sector. Resolution of Intention McMillin Development Company' s position is that prior to its expending $4 million for street improvements on East "H" Street that it be given some assurances from the City that it can have at least 30,000 trips allocated for their development. The total SPA I trips are approximately 40,000 trips, while the remaining Rancho del Rey SPAs bring total trips for Rancho Del Rey to 58,000. It is clear to everyone that prior to other roads being improved in the eastern area including SR-125, Otay Lakes Road, Telegraph Canyon Road, etc. , Rancho Del Rey cannot be completely built out. Therefore, their position is that before they commit to $4 million, they want to have a reasonable amount of trips designated for them instead of some other developer. The resolution further provides that as other highway in the eastern areas are completed, i .e. , SR-125 and other streets as mentioned above, and trips are removed from East "H" Street MDC will be given equitable treatment to be able to continue the development of their project. In 1980, the Gersten Companies entered into an agreement with the City for the construction of East "H" Street. This agreement provided a system whereby East "H" Street would be installed on a pay-as-you-go basis. The City of Chula Vista contributed approximately $1 .7 million towards that effort, $700,000 of which was considered to be a City contribution. It was fully the intent of the City to be paid back $1 .2 million based on the trip generation rates of the 1978 General Development Plan for El Rancho Del Rey. Since that time, it has been proposed that a Facilities Benefit Assessment District originally created for EastLake would be spread over the entire eastern area. McMillin objects to being required to put in four lanes of East "H" Street under an assessment district, and also pay the City back $1 . 9 million, and furthermore be required to pay the full amount for the FBA. They feel it would be more equitable since McMillin has done no development in Rancho Del Rey and there are currently 17,000 trips on the road, to have the FBA pay back the City its funds. The resolution does not resolve this issue; however, it does state that the City staff is directed to bring back a proposal to include in the East Chula Vista Benefits Assessment District the sums which are reimbursable to the City pursuant to the 1980 "H" Street Agreement. Staff believes that is reasonable. The consultants that are updating the FBA for the eastern area have been instructed to take these concerns into consideration. Page 4, Item 8 Meeting Date 3/10/87 Assessment District for Rancho Del Rey The consultants have completed a financial feasibility analysis for the construction of four additional lanes to East "H" Street including full width grading and associated drainage and parkways, curb and gutter, sidewalk, street lights, traffic signals, guardrail , and raised landscaped median with decorative concrete for a length of approximately 9,900 feet. Also included were appurtenant water, sewer, storm drain and utility structures. The above facilities would be constructed by the Rancho Del Rey Partnership and "acquired" by the City when construction is completed. The petition also proposes and the feasibility analysis considered the construction under a City-administered public contract, the construction and installation of the Rice Canyon Sewer and the construction of the storm drainage system in the canyon with associated revegetation. The following is a summary of the proposed improvements and the estimated costs: East "H" Street Street $3,991 ,431 Water 1 ,054,216 Sewer 93,158 Storm drain 792,051 Utilities 1 ,647,075 Sub-Total $7,577,931 Contingencies (+15%) 1 ,136,690 TOTAL $8, 114,621 Rice Canyon Sewer and Drainage Sewer $ 344,500 Drainage structures 679,000 Sub-Total $1 ,023, 500 Contingencies (+15%) 153,525 TOTAL $1 ,177,025 The total cost of improvements and incidentals (reserve fund, design, inspection consultants, etc. ) will require a bond sale of about $12 million. The financial consultant (Kadie-Jensen and Johnson) has completed a "Value to Lien Ratio Analysis" to make a determination as to the financial feasibility of the proposed assessment district. This analysis relates the value of the property after the proposed improvements are constructed to the amount of the assessment which will be levied against the property. The analysis shows that lien ratios are substantial for the properties within the assessment district with the exception of the "School/Church" parcel which is marginal at 1 to 1 .69 but still within the range of acceptability. In the final analysis, the consultant has concluded that the proposed assessment district is financially feasible and that bonds proposed to be issued will be well secured. Page 5, Item 8 Meeting Date 3/1 0/8 7 Summary of Council Actions 1 . Approve a Resolution of Intent to allocate 30,000 trips to Rancho Del Rey and treat the partnership fairly regarding future trips and reimbursement agreements. 2. Accept bond and agreement from EastLake Development Company to complete improvements on East "H" Street. 3. Accepted a petition to commence proceeding for the formation of an assessment district for certain infrastructure improvement in East "H" Street and Rice Canyon. 4. Approved an Acquisition Agreement with the Rancho Del Rey Partnership for certain water, sewer, storm drain, utility and street improvements in East "H" Street. 5. Approved a map of the proposed boundaries of the proposed assessment district. FISCAL IMPACT: None to the City. The Assessment District and/or the developer provides for all necessary funding. WPC 2608E r the City Council of Chula Vista, California Dated --/t ) f:-