HomeMy WebLinkAboutAgenda Statement 1986/10/28 Item 10COUNCIL AGENDA STATEMENT
Item 10
Meeting Date 10/28/86
ITEM TITLE: Resolution ~°2 79z Approving agreements with George T.
Simpson, Willdan, Associates, F. Mackenzie Brown, Inc., and
Kadie-Jensen and Johnson for consultant services for the
preparation of a feasibility plan and implementation program
for financing certain public improvements for East "H" Street
pursuant to the provisions of the "Municipal Improvement Act
of 1913" and approving an Assessment District Reimbursement
Agreement between the City and the E1 Rancho del Rey
Partnership
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SUBMITTED BY: Director of Public Works/City Engineer ~~~~
REVIEWED BY: City Manager ~ (4/5ths Vote: Yes No X )
The E1 Rancho Del Rey Partnership (Home Capital Development Group, Inc. and
f~cMillin Development, Inc.) has requested the City to initiate proceedings
under the State 1913 Improvement and 1915 Bond Acts to finance the
construction of certain improvements to East "H" Street from I-805 to Otay
Lakes Road.
In addition, the E1 Rancho Del Rey Partnership has signed an agreement, to
advance funds to allow the City to pay for all initial consulting,
administration, engineering and construction expenses, relating to the
formation of the assessment district. The owners will be reimbursed or
receive credit upon their assessment for monies previously advanced.
The agreement lists the various expenses (or consultant services) eligible for
inclusion in the cost of the proceeding. It also provides a mechanism for the
payment of funds by the property owner and the administration of the contract
by the City. All City costs associated with these proceedings will be borne
by the property owner.
RECOMMENDATION: That Council adopt resolution.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The E1 Rancho Del Rey Partnership is now underway with the preparation of a
Sectional Planning Area (SPA) for the implementation of the first phase of the
E1 Rancho Del Rey Specific Plan as amended by Council in 1985.
It is expected that the SPA I Plan along with a Facilities Financing Plan and
a Development Agreement will be presented to Council for action in about nine
months.
One of the key elements of the circulation system necessary to serve the SPA I
Plan and ultimately the entire E1 Rancho Del Rey Specific Plan area and
surrounding properties is the widening of East "H" Street to a six-lane
Page 2, Item 10
Meeting Date-T~7~$7$6
primary highway facility between I-805 and Otay Lakes Road. Portions have
already been widened, but the two-lane section through the E1 Rancho Del Rey
properties is critical to improving circulation in this area.
The Rancho Del Rey Partnership is anxious to move ahead with the construction
of East "H" Street at this time because of the the time necessary to design
and construct the facility. To this effect, they have requested the City to
retain consultants to investigate the feasibility and pursue the
implementation of proceedings under the State 1913 Improvement and 1915 Bond
Acts to finance the construction of the project.
Because of their familiarity with the area and demonstrated expertise in the
implementation of 1913 and 1915 Acts for financing public facilities in the
Eastlake project, we are recommending the same team of consultants:
* George T. Simpson, Project manager - Infrastructure Planning and Finance
* F. Mackenzie Brown, Bond Counsel - F. Mackenzie Brown, Inc.
* Richard Jacobs, Assessment Engineer - Willdan Associates Engineers
and Planners
* Carl Kadie, Financial Consultant - Kadie-Jensen & Johnson, Municipal
Finance Consultants, Inc.
The Partnership has submitted funds in the amount of $100,500.00 to ensure
that there will be no fiscal obligation to the City for the consultant and
appraisal fees. A "Reimbursement Agreement" which provides for the
reimbursement to the Partnership of funds advanced if the Assessment District
is brought to a successful conclusion is submitted for Council consideration.
The following chart indicates the payments to consultants and illustrates the
maximum payments required if the Assessment District proceedings are halted
for whatever reason.
F. Mackenzie Brown
Bond Counsel
Willdan Associates
Assessment Engineer
Assessment District
Proceedings Halted
- iiaximum Payments
$ 5,000*
Bond
Proceeds
Payments
Percentage
of final
bond sale
$52,000* -0-
George T. Simpson $20,000* -0-
Project f~lanager
Kadie-Jensen & Johnson $14,500*~1~ $26,000
Financial Consultant
* Maximum payment based on work completed or actual expenses incurred to time
proceedings are halted.
(1) Includes $7,500 in payments that will be made from bond proceeds if the
proceedings are not halted.
Page 3, Item 10
Meeting Date 10/28/86
In addition to the $91,500 maximum
if the proceedings are halted, an
Developer to provide funds for an
Official Statement of the bond sale.
obligation under the consultant contracts
additional $10,000.00 is advanced by the
appraisal which will be necessary for the
It should be noted that the present 2-lane roadway facility was built in
1983-84 with funds advanced by the Gersten Company (the previous property
owners) and the City of Chula Vista. The funds advanced (in excess of the
responsibility of each party) were $343,462.43 and $1,023,024.00,
respectively. The work was accomplished in accordance with the Council
approved "East H Street Development Program" which provides a mechanism for
the reimbursement of funds advanced by participating developers and/or the
City. This mechanism is perfectly valid to build the ultimate roadway
improvements, and will be reevaluated by the consultant as part of their
feasibility plan investigation. In addition, the consultants will address the
manner(s) by which the City will recover the funds advanced (plus interest) to
build the present two-lane roadway.
FISCAL IMPACT: None to the City. All necessary funding will be advanced by
the E1 Rancho Del Rey Partnership or paid from Assessment District bond
proceeds.
WPC 2364E
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by tho City Council of
Chula Vista, California
Dated '6 "~~' ~