HomeMy WebLinkAboutAgenda Statement 1987/05/12 Item 6 COUNCIL AGENDA STATEMENT
Item 6
Meeting Date 5/12/87
ITEM TITLE: ResolutionX? t.3 0 Appropriating funds from the
unappropriated balance of the EastLake Assessment District
86-1 Improvement Fund
SUBMITTED BY: Director of Publ 'c Works/City Engineer ;
REVIEWED BY: City Manager (4/5ths Vote: Yes X No )
In July 1986, EastLake Assessment District 86-1 was formed by the City to
acquire certain improvements in the "Hills and Shores" area of the EastLake
Development under the 1913/15 Acts of the Streets and Highway Code. These
improvements consisted of sewer, drainage, water and street facilities. The
subject of this resolution relates to water facility improvements.
A series of agreements were executed by the City, Otay Water District and
EastLake Development Company to assure that the Otay Water District would be
the ultimate owner of the water facilities and be reimbursed for their costs
associated with the construction/inspection of these facilities.
The Otay Water District, pursuant to these agreements, has submitted an
invoice for payment of expenses they incurred to complete the inspection and
administration of the Assessment District work. Their expense, however, is
significantly more than was provided for in the original Engineer' s report.
Sufficient funds are available from the unappropriated balance of the EastLake
Assessment District 86-1 Improvement Fund to cover the added cost. According
to Mr. Warren Diven, Bond Counsel for the Assessment District, this is an
appropriate use of these funds.
RECOMMENDATION: That Council adopt the Resolution appropriating funds from
the unappropriated balance of the EastLake Assessment District 86-1
Improvement Fund.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The Assessment District 86-1 proceedings were initiated by the City as
requested by the EastLake Development Company. The District proceedings were
under the supervision of a Bond Counsel , Assessment Engineer and Financial
Consultants who worked under contract for the City. The improvements were
built by the EastLake Development Company.
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Page 2, Item
Meeting Date 5/12/87
The Assessment Engineer prepared an Engineer's Report showing all the costs
associated with the proceedings. The Final Engineer' s Report was approved by
the City Council on July, 1986 by Resolution No. 12625. This report allocated
$73,438 for plan check and inspection fees. The total cost for plan check and
inspection fees are now estimated at $96,862 or an additional $23,424. The
reason for this increase is that the Otay Water District expenditures were
significantly higher than were originally estimated by the Assessment
Engineer. These additional Otay Water District costs have been substantiated
and approved by the EastLake Development Company.
Investment earnings on bond proceeds are available and according to Bond
Counsel can be used to reimburse Otay Water District for their expenses.
Additionally, $65,000 was contributed by the Otay Water District in July, 1986
to oversize water transmission facilities. This was done to accommodate
future development outside the Assessment District 86-1 boundary. This
contribution of $65,000 was never appropriated and should be, to properly
reflect budgeted expenditures for the project.
FISCAL IMPACT: There is no cost to the City.
Appropriate $88,824 from the unappropriated balance of the EastLake Assessment
District 86-1 Improvement Fund as follows:
TO ACCOUNT NO. AMOUNT SOURCE OF FUNDS
625-6250-5201 $23,424.00 Investment Earnings on bond proceeds
625-6250-5569 65,000.00 Otay Water District cash contribution
Total Appropriation $88,424.00
WPC 2766E
y the City Council of
Chula Vist California
Dated ,?�42-