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HomeMy WebLinkAboutReso 2025-147 RESOLUTION NO. 2025-147 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (1) AUTHORIZING AN INTERFUND LOAN FROM THE MEASURE A SALES TAX FUND TO THE PUBLIC FACILITY DEVELOPMENT IMPACT FEE FUND AND THE GENERAL FUND CIP FUND AND (2) AMENDING THE FISCAL YEAR 2025-26 CAPITAL IMPROVEMENT PROGRAM BUDGET BY INCREASING APPROPRIATIONS IN THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE FUND AND THE GENERAL FUND CIP FUND TO “TEMPORARY FIRE STATION 12” PROJECT (GGV0275) WHEREAS, the Chula Vista Bayfront development, currently under construction, will significantly increase calls for service to the Fire Department in the area; and WHEREAS, the existing fire stations and response companies in the service area do not have response capacity for the new population growth and the associated risks involved with the development type; and WHEREAS, the hazards and risks associated with the Bayfront development are uniquely different from the existing service demands in the City of Chula Vista. Density, elevated occupancy, and the water (bay) create a higher complexity to provide Fire, EMS, and Rescue services requiring dedicated resources; and WHEREAS, the award of a Design Build contract to design and construct a new temporary fire station (Fire Station 12) for the Bayfront District was approved by Council action in September 2024; and WHEREAS, following award of the Design Build contract, the design of the project was developed and the Fire Department’s needs for this facility and the site constraints became clearer; and WHEREAS, several factors, including more accurate cost estimating, increased scope to provide all the needed features, and site constraints, increased the project costs; and WHEREAS, Council approval of an interfund loan from the Measure A Sales Tax fund in the amount of $5.6 million, split between 73.6% the Public Facility Development Impact Fee (PFDIF) Fund and 26.4% the General Fund, is necessary for cash flow purposes; and WHEREAS, City Council Policy No. 220-06 authorizes the establishment of interfund loans for cash flow management purposes; and WHEREAS, the proposed interfund loan to the PFDIF Fund is anticipated to be repaid in full within 10 years, dependent on the rate of development, and the interfund loan to the General Fund is anticipated to be repaid in full within five years. Should funds become available sooner, the interfund loans would be retired earlier; and Docusign Envelope ID: 3006F359-F6A8-4022-B7A0-342FF006517A Resolution No. 2025-147 Page No. 2 WHEREAS, interfund loan amounts will be advanced on a quarterly basis in order to minimize borrowing costs; and WHEREAS, any and all loaned amounts will be repaid with interest at a rate equal to the City’s pooled investment rate of return, currently approximately 3.3%; and WHEREAS, as a result of the projected timing for repayment of the loans, and the applied interest rate, the Measure A Sales Tax Fund will not be adversely impacted. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it: 1. Authorizes an interfund loan from the Measure A Sales Tax Fund to the PFDIF Fund and General Fund CIP Fund in the not to exceed amounts of $4,121,600 and $1,478,400, respectively, with interest accruing at the City’s pooled investment rate, and repayment at the earliest practical date from the sources and revenues described above; and 2. Amends the Fiscal Year 2025-26 Capital Improvement Program (CIP) by increasing appropriations for the Temporary Fire Station 12 project (GGV0275) as summarized below. Fund Amount PFDIF - Fire Suppression Component (560901) $ 4,121,600 General Fund CIP Fund (713) 1,478,400 TOTAL $ 5,600,000 [SIGNATURES ON THE FOLLOWING PAGE] Docusign Envelope ID: 3006F359-F6A8-4022-B7A0-342FF006517A Resolution No. 2025-147 Page No. 3 Presented by Approved as to form by Mathew Little, PE Marco A. Verdugo Deputy City Manager/ Director of Engineering City Attorney & Capital Projects PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 9th day of September 2025 by the following vote: AYES: Councilmembers: Chavez, Fernandez, Inzunza, Preciado, and McCann NAYS: Councilmembers: None ABSENT: Councilmembers: None John McCann, Mayor ATTEST: Kerry K. Bigelow, MMC, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2025-147 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 9th day of September 2025. Executed this 9th day of September 2025. Kerry K. Bigelow, MMC, City Clerk Docusign Envelope ID: 3006F359-F6A8-4022-B7A0-342FF006517A