HomeMy WebLinkAboutAgenda Statement 1987/12/08 Item 10•
COUNCIL AGENDA STATEMENT
Item 10
ITEM TITLE:
SUBMITTED BY:
REVIEWED BY:
Meeting Date 12/8/87
Resolution~~,37 ~ Authorizing and providing for the
issuance of bonds pursuant to "Improvement Act of 1911" and
accepting offer to purchase bonds for the 1911 Block Act -
Phase XVII cash contract
Director of Public Works
Director of Finance .-~~
City Manager'
(4/5ths Vote: Yes No X )
At the time the staff accepted bids and awarded the contract for 1911 Block
Act - Phase XVII street improvements at various locations in the City of Chula
Vista, staff proposed that upon completion of the work and confirmation of the
assessments that bonds be sold. Proceeds from the bonds would reimburse the
City for any cash advancements made to cover the property owner's share of the
cost of the improvemments.
RECOMMENDATION: That Council approve the resolution authorizing and
providing for the issuance of bonds pursuant to the "Improvement Act of 1911"
• and accepting offer to purchase bonds.
BOARDS/COMMISSIONS RECOMMENDATION: Plot applicable.
DISCUSSION:
The City Council on September 22, 1987, approved Resolution 13263 confirming
"Report" of the Superintendent of Streets on the cost of construction and
levying assessments in Chapter 27 proceedings under the "Improvement Act of
1911." This was for the work performed in the 1911 Block Act - Phase XVII
Cash Contract.
After the assessments were imposed by the City Council, several of them were
paid off by the various property owners. Eight of the parcels did not choose
to pay off their assessment during the cash collection period. Stone and
Youngberg has made an offer to purchase bonds in the amount of $60,042.88
issuing from the City of Chula Vista 1911 Act - XVII Cash Contract. Attached
is a copy of their offer to purchase and a copy of the assessment diagram.
One peculiarity in the agreement is that the City agrees to purchase the bond
for assessment #2 which was for the installation of sidewalk on Millan Street
at the northeast corner of First and Millan. This particular piece of
property is undeveloped and is traversed by Telegraph Canyon Creek. Stone and
Youngberg felt that there was some question as to the value of the property
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Meeting Date~'z78787
for development. Staff believes that by purchasing the bond for $1,176.12,
the City could be assured of obtaining the property should the owner's default
on payment on the bond. This property would be useful to the City for
drainage purposes at some future time when the culvert across First Avenue is
enlarged or replaced.
Mac Brown with Brown & Diven law offices has prepared the appropriate
resolution for the issuance of the bonds and acceptance and the offer to
purchase the bonds. A copy of this resolution is attached.
The Director of Finance has reviewed the offer to purchase and accompanying
resolution and finds them to be satisfactory.
FISCAL IMPACT: Funds obtained from the sale of the bonds shall be deposited
into Gas Tax unappropriated reserves.
SLH:fp/AX-076
WPC 3378E
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C~~ula Vida, C:~~fcrnia
Dated
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