HomeMy WebLinkAboutAgenda Statement 1986/07/08 Item 46 COUNCIL AGENDA STATEMENT �/
Item j '4
Meeting Date 7/08/86
ITEM TITLE: Resolution/,<5W.Appropriating Assessment District No. 85-2
bond proceeds of $7,680,623.85 and $311 ,540.00 cash
contribution totaling $7,992,163.85 for the EastLake
Development Project
SUBMITTED BY: Director of Public Works/City Engineer
Director of Finance?5'
REVIEWED BY: City Manage YC (4/5ths Vote: Yes X No )
On June 17, 1986, the City Council by Resolution No. 12539 authorized the
issuance of bonds to finance the improvements in the EastLake Assessment
District 85-2. The cost of these improvements totalled $7,992,163.85 as set
forth in the Final Engineer' s Report approved by Council on May 13, 1986
(Resolution No. , 12470) .
The cost of these improvements will be financed with $7,680,623.85 from bond
proceeds and $311 ,540.00 contributed by EastLake Development Company
($184,000) and Otay Water District ($127,540).
The funds need to be appropriated before we can make disbursements to EastLake
Development Company and the Otay Water District for their expenses and/or
advances made prior to the sale of the bonds. The funds will also be used to
cover the various contractual obligations and to reimburse the City for staff
costs incurred in the assessment district proceedings.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
RECOMMENDATION: That Council adopt resolution appropriating bond proceeds
and cash contributions for the EastLake Assessment District No. 85-2.
DISCUSSION:
Assessment District 85-2 was formed to finance the construction of sewer,
water, and road infrastructure improvements needed to serve the Business
Center portion of the EastLake development. In the past year, Council has
adopted a series of resolutions that approved the formation of the district
and authorized the sale of bonds to pay for the construction of these
improvements. The cost of these improvements amounts to $7,992,163.85 as set
forth in the Final Engineer' s Report and summarized below:
1 . Contract I - 5 MG Reservoir $1 ,028,445.00
2. Contract II - Water Pump Station
1 ,087 350.00
3. Contracts III A & III B - Sewer, Water & Streets 3,543,181 .51
4. Easement Acquisition 214,000.00
5. Incidental Costs & Expenses 2,119,187.34
TOTAL PROJECT $7,992,163.85
..............._..
Page 2, Item 17‘
Meeting Date 7/08/86
There were two cash contributions to the assessment district totalling
$311 ,540.00. The contributions were made by: (1 ) the EastLake Development
Company ($184,000) for the construction of a reclaimed water line, and (2) the
Otay Water District ($127,540) for the oversizing of transmission lines.
Bonds totaling $7,680,623.85 ($7,992,163.85 - $311 ,540.00) were sold to
provide the funding for the project.
At the beginning of the proceedings, the City entered into an agreement with
EastLake Development Company whereby they agreed to: (1 ) secure the costs of
the improvements via a $3,000,000 letter of credit, and (2) to reimburse the
City for all costs incurred in conjunction with the Assessment District
proceedings. The City agreed to administrate the bond proceeds and to
reimburse EastLake Development Company for their expenses.
It should be noted that Council on three previous occasions has appropriated
funds to be advanced by EastLake Development Company and secured by their
$3,000,000 letter of credit (see fiscal impact). Bond proceeds will replace
these appropriations and reimburse EastLake for their expenses.
FISCAL IMPACT: There is no cost to the City. The total cost of the
improvements ($7,992,163.85) will be covered with bond proceeds and cash
contributions from the EastLake Development Company and Otay Water District.
The funds will be collected and disbursed as shown in the table below:
Previously Additional
Account No. Description Total Amount Appropriated Appropriation
620-6200-5201 Incidental & $1 ,350,740.87 $52,800.00 $1 ,297,940.87
Expenses (Res. 12541
dated 6-17-86)
620-6201-5569 5 million gallon 1 ,028,445.00 $ 996,000.00 32,445.00
reservoir (Res.#12292
dated 12-17-85)
620-6202-5569 Water Pump Station 1 ,087,350.00 (Re087,350.00 -
dated 4-15-86
620-6203-5569 Utility & Road 2,474,271 .60 - 2,474,271 .60
Improvement
620-6204-5569 Offsite Water 757,369.91 - 757,369.91
Improvement
/ ��
Page 3, Item
Meeting Date 7/08/86
Previously Additional
Account No. Description Total Amount Appropriated Appropriation
620-6205-5561 Easement 214,000.00 - 214,000.00
Acquisition
546-270 Special Reserve 768,446.47 - 768,446.47
Fund
Subtotal - Bond Proceeds $7,680,623,85 $2,136,150.00 $5,544,473.85
620-6203-5569 Utility & Road 311 ,540.00 - 311 ,540.00
Improvement
(Cash Contrib. )
TOTAL APPROPRIATION $7,992,163.85 $2,136,150.00* $5,756,013.85
*These appropriations were amounts to be advanced by EastLake Development
Company secured by a $3,000,000.00 letter of credit. Bond proceeds will
replace these appropriations and reimburse EastLake for their expenses.
WPC 2141E
r � � Council of ---�'.�- C.4 .,�a
by the City by
Chula Vista, California Chula
Datd'd �: ' Dated
1