HomeMy WebLinkAbout11-15-1988 Adj. MeetingAGENDA
ADJOURNED REGULAR MEETING
MAYOR AND COMMON COUNCIL
NOVEMBER 15, 1988 - 9:00 A. M.
CALL TO ORDER 9,, ~~Cr.-.
INVOCATION
PLEDGE
ROLL CALL
PRESENT:
ABSENT:
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A. PUBLIC COMMENTS ON ITEMS NOT ON AGENDA: A five-minute limitation shall apply
to each member of the public who wishes to: address the Mayor and Common
Council on a matter not on the agenda. No member of the public shall be
permitted to "share" his/her five minutes with any other member of the
public. (Usually any items received under this heading are referred to
staff for further study, research, completion and/or future Council action.)
TO BE HELD IN THE MANAGEMENT INFORMATION CENTER
1. Workshop session - Review the draft 1988/89 to 1992/93 Capital Improvement
Program.
TO BE HELD IN THE COUNCIL CHAMBERS AT 1:00 P.M.
2. Workshop session for the purpose of discussing the subject of gangs, drugs
and"other related issues.
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3. Adjourn Meeting
Motion: That the meeting adjourn to Monday, November 21,
1988, in the Council Chambers of City Hall, 300
North "D" Street.
"NOTICE: Any member of the public may address this meeting of the Mayor
and Common Council on any item appearing on the agenda, by approaching the
microphone in the Council Chambers when the item about which the member
desires to speak is called, and by asking to be recognized. Any member of
the public desiring to speak to the Mayor and Common Council concerning
any matter not on the agenda but which is within the subject matter
jurisdiction of the Mayor and Common Council, may address the body at the
beginning of the meeting, during the period reserved for public comment,
said total period for public comment shall not exceed forty-five (45) min-
utes, unless such time limit is extended by the .Mayor and Common Council. A
five minute limitation shall apply to each member of the public, unless
such time limit is extended by the Mayor and Common Council. No member
of the public shall be permitted to 'share" his/her five minutes with any
other member of the public. The Mayor and Common Council may refer any
items raised by the public to staff, or to any commission, board, bureau
or committee for appropriate action or have the item placed on the next
agenda of the Mayor and Common Council. However, no other action shall
be taken nor discussion held by the Mayor and Common Council on any item
which does not appear on the agenda unless the action is otherwise autho-
rized in accordance with the provisions of subdivision (b) of Section
54954.2 of the Government Code.'
_ 2 _ 11/21/88
C I T Y O F S A N B E R N A R D I N O
INTEROFFICE MEMORANDUM
8811-1305
TO: Councilman Tom Minor
Fifth Ward
FROM: Kenneth J. Henderson
Director of Community Development
SUBJECT: FINANCING ALTERNATIVES FOR CHESTNUT AVENUE STORM
DRAIN k
DATE: November 10, 1988
COPIES: Mayor Wilcox, Acting City Administrator, Deputy
City Administrator - Development Services,
Director of Public Works, Director of Finance,
City Treasurer, Director of Planning, Principal
Planner Montgomery, File
This memorandum has been developed pursuant to our meeting of
November 3, 1988, and relates to possible financing alter-
natives for the Chestnut Avenue storm drain. The alterna-
tives with a brief description of each follow:
1. Borrow funds from private lender: The City could borrow
the necessary funds from a private lender with the loan
term (5-7 years) and the repayment provisions much the
same as the interfund transfer between the Sewer Line
Construction Fund and the Storm Drain Fund previously
recommended by staff. This alternative would require,
however, the payment of interest charges and negotiations
of loan terms similar to the interfund transfer. The
Director of Finance and City Treasurer should advise as
to the impact such an alternative would have on the
City's bond and credit ratings. It could also be linked
with the adoption of the resolution proposed by the
Director of Public Works entitled in part, "Resolution
establishing a schedule of fees for storm water drainage
facilities construction...", and establishing a special
surcharge for development within the Chestnut Avenue
storm drain benefit area.
2. Assessment District: The City could form an Assessment
District, issue bonds to finance the construction of the
storm drain and levy a higher tax rate on property owners
to retire the bonded indebtedness. Currently there are
109 existing lots with the 1,721 dwelling units allowed
under the RS designation and 107 under Hillside Manage-
ment. This gives a total of 1,937 lots which could be
assessed (109 existing, 1,828 new) annually for retiring
INTEROFFICE MEMORANDUM: 8811-1305
FINANCING ALTENRATIVES FOR CHESTNUT AVENUE STORM DRAIN
November 10, 1988
Page 2
the bonded indebtedness. (Hillside Management has been
calculated at one (1) unit per acre and RS has been
calculated at 2.98 units per gross acre, with 685 gross
developable acres and 578 net (excludes schools, parks,
etc.) developable acres.) The Public Works Department
should advise as to the estimated assessment each pro-
perty owner would have to pay annually under this
scenario.
3. Defer FY 88/89 Budgeted storm drain projects: The
Director of Public Works indicates there is approximately
$600,000 programmed for storm drain projects throughout
the City. With the approval of the Mayor and Common
Council, these projects could be deferred and the
$600,000 utilized for the Chestnut storm drain. In the
event certain small projects ($100,000 or less) could not
be deferred, it is possible CDBG funds could be used to
replace the general fund revenues applied to Chestnut.
Alternatively, CDBG funds or Redevelopment Agency funds
could be utilized to make up the difference between the
$600,000 in re-programmed funds and the total cost of the
project.
4. RDA loan: Section 33445 of the State Health and Safety
Code states as follows, "Notwithstanding the provisions
of Section 33440, an agency may, with the consent of the
legislative body, pay all or part of the value of land
for and the cost of the installation and construction of
any building, facility, structure, or other improvement
which is publicly owned either within or without of the
project area, if the legislative body determines both of
the following:
a) That the buildings, facilities, structures, or other
improvements are of benefit to the project area or
the immediate neighborhood in which the project is
located, regardless of whether the improvement is
within another project area, or in the case of a
project area in which substantially all of the land is
publicly owned that the improvement is of benefit to
an adjacent project area of the agency.
b) That no other reasonable means of financing such
buildings, facilities, structures, or other improve-
ments, are available to the community.
Those determinations by the Agency and the local legis-
lative body shall be final and conclusive ...(emphasis
added)." So, if the Mayor and Common Council and Com-
munity Development Commission made the appropriate
INTEROFFICE MEMORANDUM: 8811-1305
FINANCING ALTENRATIVES FOR CHESTNUT AVENUE STORM DRAIN
November 10, 1988
Page 3
findings and funds were available from the State College
Redevelopment Project Area, these monies could be loaned
to the City for the construction of the Chestnut storm
drain. Any number of repayment arrangements could be
developed to effect the pay-off of the loan.
5.~ Substitution of sewer costs by private developers for
storm drain cost paid by City: If the sewer costs for
1,828 new dwelling units approximates the cost of the
storm drain, the City could pay for these sewer costs
normally paid by the private property owner out of the
Sewer Line Construction Fund and apply funds paid by
private property owner for sewer costs to the Chestnut
storm drain construction fund. The Director of Public
Works and the City Attorney should advise as to the
practicality and legality of this particular alternative.
6. Status Quo: The final alternative is to install the
storm drain when sufficient fees are collected. During
the interim the developer of any new subdivision would be
required by the City Engineer to protect that subdivision
from storm waters. Protection of those tracts downstream
would also be required. If acceptable, this would allow
all of the other improvements to go forward without
stopping all development in the area because of the
problems associated with financing the Chestnut storm
drain.
Finally, the alternative described in number three above
might be mistakenly perceived as deferring projects in one
ward to allow for projects in another ward, not politically
palatable, I admit. I view the situation in Verdemont,
however, as not normal ward politics. As noted in previous
reports to the Mayor and Common Council, the Verdemont area
is the fastest growing residential area of the City and
provides the City its best change for developing move-up and
upscale housing. This would allow the City to balance, to
the extent possible, its mix of housing which, if most recent
reports are any indication, will assist the City in
rectifying its jobs-housing imbalance.
Please call me at 5065 if further information or clarifica-
tion is required.
Renn th Hen erson
Director of Co unity Development
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