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HomeMy WebLinkAboutAgenda Statement 1984/05/15 Item 11 COUNCIL AGENDA STATEMENT Item 11 Meeting Date 5/15/84 ITEM TITLE: Resolution `/ ' Approving agreement between the City of Chula Vista and the County of San Diego for construction and operation of Chula Vista Bayfront Station SUBMITTED BY: City Engineer (p0,/ (4/5ths Vote: Yes No X ) REVIEWED BY: City Manager 9/ A tri-party agreement among the City of Chula Vista, the Metropolitan Transit Development Board (MTDB) and the County of San Diego for development of the Chula Vista "E" Street Trolley Station (hereinafter referred to as the Chula Vista Bayfront Station) was approved by the MTDB on January 24, 1983, by the City of Chula Vista on January 25, 1983, and by the County of San Diego on March 1 , 1983. This tri-party agreement is a cooperative effort that previously defines issues pertaining to planning of the station. This new agreement between the City of Chula Vista and the County of San Diego addresses issues pertaining to station construction, maintenance and operation. This agenda statement will discuss: 1 . A summary of the Bayfront Station planning process; and 2. Specific components of the agreement between the City of Chula Vista and County of San Diego. RECOMMENDATION: That Council approve agreement between the City of Chula Vista and County of San Diego for construction and operation of the Chula Vista Bayfront Station. BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable. DISCUSSION: 1 . BACKGROUND/PLANNING PROCESS In March 1983, the County Board of Supervisors entered into an agreement with the City of Chula Vista and MTDB for development of the Chula Vista Bayfront trolley station. The County approved $1 .2 million for planning and construction of the station. The consulting firm of Sedway Cooke and Associates was selected by the County of San Diego to undertake the planning study for the station. A Project Steering Committee was also established to review, evaluate, and provide input into the planning process. The Steering Committee consists of representatives from the City of Chula Vista, County of San Diego, and the MTDB. The consultant started work on the study in June 1983. The first part of the study involved Page 2, Item 11 Meeting Date 5/15/84 looking at options for station location both on the north and south sides of "E" Street. In August 1983, the Steering Committee selected the south side of "E" Street as the preferred location of the station. A draft report was completed in November 1983, and a final report was issued in February 1984. The consultant report included the following findings, conclusions, and recommendations relative to the project: - A station location mid-block between "E" and "F" Street. - Vehicular access from both "E" Street and Woodlawn Avenue. - Parking for approximately 130 cars should be provided as part of the initial development program. - A phased parking area expansion program should be pursued. - A total of 4.146 acres of land is recommended for acquisition including the insurance stand lot, the gas station, vacant lot on "E" Street, the bowling alley, and a portion of the City Public Works Yard. - A joint development program with the Chamber of Commerce is compatible with trolley operations and site constraints. - Although not all of the 4.146 acres is necessary for initial development of the trolley station, the entire area is necessary to accommodate the longer-term parking requirements that the station is expected to generate. - Total acquisition of this land will ensure that sufficient land is acquired to meet the long term parking needs and guarantee the necessary access to both "E" Street and Woodlawn Avenue to minimize circulation conflicts. The cost to develop the station as proposed by the consultant was estimated at approximately $4.5 million. This cost included immediate demolition of the bowling alley, and construction of the station. Since the County of San Diego had allocated $1 .2 million to this project, developing the Bayfront Station as proposed by the consultant would result in a project shortfall of approximately $3.4 million. For the past few months, the staffs of the City of Chula Vista and County of San Diego have been investigating various financing and planning options that would permit development of the station. These options included: modifying the scope of the project; and looking at numerous alternatives for financing the station, such as participation from MTDB, Federal funds, and issuing certificates of participation. 11 Page 3, Item Meeting Date 5/15/84 The staffs reached consensus first on the issue of project scope. It was agreed that the key element for a south side of "E" Street location was acquisiton of the land recommended by the consultant. The cost of the land acquisition is estimated at $2.2 million, based on an appraisal by Hilliard, Lipman and Associates. Approximately $1 million of this $2.2 million is for acquisition of the bowling alley. Staff evaluated the possibility of not purchasing all the land as recommended by the consultant, but rather working out a joint parking arrangement with the bowling alley. It was concluded, however, that such a joint arrangement might be feasible initially, but not indefinitely due to projected parking demand at the station. Therefore, acquisition of the property as recommended by the consultant is a necessary component of the Bayfront Station development at this site. The staffs then investigated ways to finance the station. It was concluded that a phased development program would be feasible. Under this approach, the property recommended for acquisition by the consultant would be acquired and a station would be built; however, the bowling alley and the gas station would remain in operation for some time into the future until it becomes necessary to expand parking at the site. This phased approach has two main advantages: it reduces the initial project cost from an estimated $4.5 million to approximately $3.4 million; and revenue from bowling alley and gas station leases would generate approximately $180,000 annually ($130,000 from the bowling alley and $54,000 from the gas station). This development proposal was presented to and approved by the Steering Committee on April 13, 1984. Following is a summary of the major components of the proposal : A. Development Plan for Station 1 . A development plan for the station was presented to the Committee. This plan has the following major changes from the plan developed by the consultant: a. The bowling alley and the gas station can continue operation until such time as it becomes necessary to expand the area for additional on-site parking. b. Bus access to the station will be off Woodlawn Avenue only instead of "E" Street and Woodlawn Avenue. c. The station has been located closer to "E" Street rather than mid-block between "E" and "F" Street. 2. The Bayfront Station development plan has three phases, each related to parking demand: a. Phase I: Acquisition of five parcels. Station development in the SD&AE right-of-way. Parking shared with the bowling alley. /2-- //� z2 Page 4, Item 11 Meeting Date 5/15/84 b. Phase II (1988-1990): Gas station removed for additional parking/site development. c. Phase III (1992-1994): Bowling Alley removed for additional parking/site development. Exhibit 1 shows projected parking demand at the station. Initial peak parking demand at the station is estimated at 135 spaces. This demand is projected to increase to 175 by 1990, 250 by 1994, and 370 in 2000. Parking demand estimates include demand at the new station, and overflow from the "H" Street Station, which is projected to reach capacity by 1990. Approximately 175 spaces can be provided initially at the Bayfront Station, which will be sufficient to serve peak parking demand for both the trolley patrons and bowlers. 3. The total cost to develop the station under this phased approach has been estimated by the County at $3,417,000. B. Financing the Station Development It was proposed to the Steering Committee that the City and County share on an equal basis the cost of developing the station,maintenance outside the MTDB right-of-way, and any future revenues that would be generated from the station. The County, therefore, has proposed to increase its commitment of $1 .2 million to $1 .7 million; the approximately $1 .7 million from the City of Chula Vista would be contributed from the following two sources: the $145,000 appraisal for right-of-way through the Public Works Yard for an access road off Woodlawn Avenue would be counted toward the City's contribution; and the Redevelopment Agency would contribute the estimated remaining amount of $1 ,555,000 from Tax Allocation Bond Issue funds. Exhibit 2 shows disbursement of funds for the initial phase of the project. Under this proposal , approximately $2.3 million would be required through January 1985. An additional $1 .0 million would be required through March 1986. The County would supply the majority of the initial funding (about $1 .6 of the $2.3 million) , while the City would hold the bulk of its contribution in reserve until construction. This arrangement maximizes interest to the City on its redevelopment funds, and the County cannot earn interest on its Transportation Development Act (TDA) funds. C. Development Schedule Exhibit 2 also shows the proposed development schedule for Phase I of the trolley station. As indicated on this bar chart, the necessary environmental documents and approval , and final appraisal would be completed by September 1984; land acquisition and construction plans would be completed by June 1985; construction would begin in September 1985; and the station would be completed by March 1986. Page 5, Item 11 Meeting Date 5/15/84 In summary, this phased approach to the Bayfront Station development has the following advantages compared with a total initial development: - Lower initial project cost. - Potential to generate revenue from leases for future station development. - Flexibilty for future development on-site is maintained. Potential options for future development include: air rights and/or tying in development with the City's Public Works Yard site. 2. MAJOR COMPONENTS OF NEW AGREEMENT BETWEEN COUNTY AND CITY A. (Section 1 ) County agrees to: - Provide a project manager who reports to the Project Steering Committee (PSC), and to provide other staff support to insure continued, cooperative, comprehensive coordination for the implementation of an LRT station adjacent to the Bayfront Redevelopment Area at "E" Street in the City of Chula Vista, hereinafter referred to as the Chula Vista Bayfront Trolley Station (BFTS) . - Appoint one County Supervisor to the PSC. County Supervisor will act as officiating member of this Committee. - Act as lead agency in preparation of documents, facility design, right-of-way acquisition, and construction. - Provide TDA fund support to the extent of 50% of the station total development cost. - Utilize the PSC to review plans, projects, and procedures. - Share ownership of the facility equally with the City. - Share operating and maintenance costs equally with the City for that portion of the facility outside the SD&AE right of way. - Share revenue from leases equally with City. B. (Section 2) City agrees to: - Provide Project Coordinator. - Appoint a City Council member to the PSC. - Submit all project input through the PSC and the project manager to insure continued, cooperative and comprehensive coordination during implementation of the station. /—//ice 2-- Page 6, Item 11 Meeting Date 5/15/84 - Act as the responsible agency, if required, during the right-of-way acquisition phase. This would include initiation and administration through the PSC and condemnation proceedings should any such proceedings be necessary. - Act as the lead agency in obtaining environmental approvals. - Provide necessary staff support as required by the project manager during preparation of environmental documents, facilty design, right-of-way acquisition, and construction liaison. - Share ownership of the facility equally with the County. - Share total development costs of the station equally with the County. - Share operating and maintenance costs equally with the County for that portion of the facility outside the SD&AE right-of-way. - Share revenue from leases equally with the County. - Provide management for operations and maintenance and administration of leases. C. (Section 3) It is mutually understood and agreed: - That project management for facility implementation shall be the responsibility of the County. - That the project manager will supervise and manage the day-to-day operation of all work associated with the implementation of the station. - That project direction shall be accomplished with a Project Steering Committee (PSC) with one representative each from the County and City. The PSC will periodically review the progress of the project and make policy determinations as necessary. The County 's project manager will provide staff services to this committee. Each committee member will act as liaison to his/her respective agency. - That all project development costs will be supported by funds to be provided equally by the County and the City. The County shall manage the payment of all project development costs incurred by the City and the County. Reimbursement of costs may be subject to review by the PSC. - That the City and County will jointly seek MTDB agreement to operate and maintain that portion of the facility outside the SD&AE right-of-way. Page 7, Item 11 Meeting Date 5/15/84 - That in the event the project preparation or the facility implemented in this agreement is abandoned for public use, the County and the City will be claimants on recovering their investments from the project termination or facility abandonment in proportion to the amount of their respective investments. A determination of abandonment or termination shall be agreed to by the PSC. - In the event of project termination or abandonment, the disposition of any property on which the facility will lie shall be in compliance with the terms and conditions of the agencies from which the funds were received to implement the facility. FISCAL IMPACT: Under this agreement, the County of San Diego and City of Chula Vista will share equally in the cost of constructing, operating, and maintaining the Bayfront Station. County and City also will share equally in any revenue generated from the facility. WMG:nr/DS-038 WPC 0399T byte iv ,j Chum Vim - tir Dated