SR 06:152 (2) - Laserfiche WebLink

68 - pLEASANTONo MEMORANDUM Date: August 23, 2006 To: Honorable Mayor and Members oftbe City Council From: Nelson Fialho, City Manager Subject: Vineyard Corridor Water Tank Construction At the Council Meeting of August 15,2006, no action was taken regarding the award of a construction contract for the Vineyard Hills water tank. That report (SR 06:152), is being brought back to Council at its meeting of September 5th for further consideration. The Vineyard Hills Reservoir (a 1.4 million gallon, partially buried, pre-stressed concrete reservoir) is the first of four major water system improvements required to be built in order to supply water within the Vineyard A venue Corridor Specific Plan (VCSP) area and to enhance the supply of water to areas such as Ruby Hill, adjoining the VCSP area. The other three projects are the enhancement of an existing Zone 7 water supply turnout, a new pumping station, and construction ofthe final access road with water pipeline and required utilities. As indicated in the staffreport, there are adequate funds set aside and available for the tank project at this time. As to the remaining water facilities, City Council had approved a Vineyard Avenue Corridor Financing Program in March of2000 that sets forth a financing plan to assure the funding of all required shared infrastructure within the Specific Plan Area. That plan contemplated that the City would finance the construction of all water facilities, to be reimbursed as development occurs. Should the City continue to follow that financing plan, full reimbursement for the construction of shared infrastructure would occur, assuming each entity pays their pro rata share. The entities involved include: new development (195 units); existing dwellings as they tie into newly constructed utilities (18 units); the School District (for the development of the Neal School site); and Signature Homes (for roadway improvements only). The Financing Plan, however, calls for the continual updating of Specific Plan fees representing the pro- rata share of infrastructure cost borne by new development (e.g. new development is responsible for 55.2% of water facility costs, and as tbe cost oftbose facilities escalate, the Specific Plan fee is adjusted accordingly). In addition, it is uncertain whether all of the entities listed above will fully reimburse their pro-rata share. To address these factors, staff intends to return to City Council at a subsequent meeting to offer funding options not currently included in the approved Financing Program, and to address the anticipated timing ofreimbursements that may result in a short term cash flow issue, providing worst- case and probable-case scenarios. At this time, staff recommends that City Council take those actions identified in the staff report pertaining to construction ofthe Vineyard Hills Water Tank.