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HomeMy WebLinkAbout2007/10/02 Item 2 CITY COUNCIL AGENDA STATEMENT , 10/2/07, Item~ SUBMITTED BY: REVIEWED BY: RESOLUTION DECLARlNG THE CITY'S INTENTION TO REIMBURSE CERTAIN EXPENDITURES RELATING TO THE PHASE 3 CIVIC CENTER IMPROVEMENTS FROM THE PROCEEDS OF THE SALE OF TAX EXEMPT OBLIGATIONS DIRECTOR OF FIN . C~~Tl)E.#SURER~ CITY MANAGER V1Y~ 4/5THS VOTE: YES D NO ~ ITEM TITLE: BACKGROUND The Public Facility Development Impact Fee ("PFDIF") was established to fund a number of specific projects in the City, including the Civic Center Renovations. The PFDIF funds may only be used for those projects specifically approved by the City Council in the ordinance establishing the PFDIF and its subsequent amendments. Phase 3 of the project is funded by a combination of the PFDIF (88.87%) and the General Fund (11.13%). The first two phases of the project have been completed in accordance with the budget approved by the City Council. Phase 3 of the project includes the renovation of the former police department building, the demolition of the Legislative Office Building and the Community Development Building and the construction of the additional parking and landscaped areas. The renovated former police department building will house the Human Resources Department, Community Development Department, Recreation Department, Information Technology Services Department, a portion of the Building and Planning Department and the Chula Vista Employees Credit Union. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the proposed action was adequately covered in previously adopted Mitigated Negative Declaration, IS-04-013. Thus, no further environmental review or documentation is necessary. 2-1 OCTOBER 2, 2007, Item~ Page 2 of2 RECOMMENDATION That Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not Applicable. DISCUSSION It was anticipated that PFDIF proceeds from the sale of Community Facilities District (CFD) bonds would be available to pay for the construction costs of Phase 3, but due to the downturn in the housing market, the sale has been delayed and the funds are not yet available. This reimbursement agreement allows the City to secure the PFDIF obligations for the Phase 3 Civic Center Renovations if and when CFD bonds are sold. The City will be able to reimburse the PFDIF fund for expenditures made 60 days prior to the resolution and no later than 18 months after the later of the date of the original expenditure is paid or the date the Phase 3 Civic Center improvements are placed in service, but in no event more than three years after the original expenditure is made. A similar reimbursement agreement for Phase 2 Civic Center improvements was approved by City Council on February 14, 2006. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found a conflict exists, in that Councilmember Jerry Rindone has holdings within 500 feet of the boundaries of the property which is the subject of this action. FISCAL IMPACT There would be a positive fiscal impact to the PFDIF Fund of up to $11.5 million from the anticipated reimbursement for expenditures relating to Phase 3 Civic Center Renovations. There would be no impact to the General Fund. ATTACHMENTS Not Applicable. Prepared by: Nadine Mandery, Treasury Manager, Finance 2-2 RESOLUTION NO. 2007- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARlNG THE CITY'S INTENTION TO REIMBURSE CERTAIN EXPENDITURES RELATING TO THE PHASE 3 CMC CENTER IMPROVEMENTS FROM THE PROCEEDS OF THE SALE OF TAX EXEMPT OBLIGATIONS WHEREAS, the Public Facility Development Impact Fee Fund (PFDIF) was established to fund a number of specific projects in the City, including the Civic Center Renovations; and WHEREAS, the PFDIF funds may only be used for those projects specifically approved by the City Council in the ordinance establishing the PFDIF and its subsequent amendments; and WHEREAS, Phase 3 of the Civic Center renovations is funded by a combination of the PFDIF Fund (88.87%) and the General Fund (11.l3%); and WHEREAS, Phase 3 includes the renovation of the former police department building, the demolition of the Legislative Office Building and the Community Development Building and the construction of the additional parking and landscaped areas; and WHEREAS, it was anticipated that PFDIF proceeds from the sale of Community Facilities District (CFD) bonds would be available to pay for the construction costs of Phase 3, but due to the downturn in the housing market, the sale has been delayed and the funds are not yet available; and WHEREAS, this reimbursement agreement allows the City to secure the PFDIF obligations for the Phase 3 Civic Center Renovations if and when CFD bonds are sold; and WHEREAS, the City will be able to reimburse the PFDIF fund for expenditures made sixty days prior to the resolution and no later than eighteen months after the later of the date of the original expenditure is paid or the date the Phase 3 Civic Center improvements are placed in service, but in no event more than three years after the original expenditure is made; and WHEREAS, a similar reimbursement agreement for Phase 2 Civic Center improvements was approved by City Council on February 14,2006. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Chula Vista declare the City's intention to reimburse certain expenditures relating to the Phase 3 Civic Center improvements from the proceeds of the sale of tax exempt obligations. Presented by Approved as to form by Maria Kachadoorian Director of Finance/Treasurer J:lAttorneyIRESO\fINANCE\Civil:CtrPbua3inlellllOraimburllllpendit_10.02.07.doc 2~3