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HomeMy WebLinkAboutAgenda Statement 1985/04/09 Item 19 COUNCIL AGENDA STATEMENT Item 19 Meeting Date 4/9/85 ITEM TITLE: Resolution /(7 Appropriating funds for the construction of street improvements adjacent to developed parcels on Las Flores Drive and "D" Street in the City of Chula Vista, California , SUBMITTED BY: Director of Public Works/City Engineer 11 REVIEWED BY: City Manager (4/5ths Vote: Yes X No ) The City Council approved funds in the FY 1984-85 budget for the construction of two lanes of pavement and storm drain facilities in Las Flores Drive south of "D" Street and in "D" Street from Second Avenue to Minot Avenue. The City Engineering Department has now completed plans for this project. The City Council on December 18, 1984, accepted a report which directed staff to call up deferrals on the existing developed lots, a total of seven (7) , at the same time the City prepares to advertise for bids for construction of this project. Staff is proceeding with requests to the Planning Commission and City Council to call up these deferrals. RECOMMENDATION: It is recommended that the City Council appropriate $75,000 from the unappropriated reserves of the General Fund, and establish a fund for the purpose of loaning money to property owners for a period of ten (10) years so they can construct their public improvements. Monies from this fund would be loaned to property owners with existing homes in the area and deferral agreements with the City. Exact requirements and procedures for borrowing to be determined by staff. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: As stated in the report, one way to assist property owners with deferrals is for the City to establish a fund to cover the construction cost for their improvements. Based on calculations for the ultimate design and our interim stage construction project, a fund of $75,000 would be sufficient to cover these costs. A low interest rate can be charged to those property owners if they decide to borrow money from this fund and a ten (10) year period can be used for repayment. The interest rate to be charged the property owners will be consistent with current bond rates for assessment districts. FISCAL IMPACT: City may be advancing the funds for construction of street improvements adjacent to seven (7) parcels with deferrals. Council will be approving the appropriation of $75,000 to cover the construction of these street improvements. Property owners will be repaying the City over a ten (10) year period with interest, for the funds advanced. Net cost to the City will be staff time in establishing procedures for loaning the money and collecting payments thereof. SLH:nr/AX078 WPC 1468E ;t0