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<br />Project Fund balance, a portion is needed for future construction of non-water related facilities <br />or to reimburse construction costs already expended in other (non-water) areas of the VCSP. <br />As a result, staff is only recommending that $1.1 million of the VCSP Project Fund be <br />appropriated at this time to the construction of the reservoir and the rough-graded access road. <br /> <br />FUNDING <br />CIP Project No. 011023 <br />VCSP Infrastructure Project Fund <br />TOTAL <br /> <br />$3,500,000 <br />$1,100,000 <br />$4,600,000 <br /> <br />TANK EXPENDITURES <br />Construction Contract <br />Contingency (approx. 4%) <br />Construction Services <br />(Surveying/construction management/material testing/compaction tests) <br /> <br />$3,942,206 <br />$152,794 <br />$505,000 <br /> <br />TOTAL (tank and rough-graded access road) <br /> <br />$4,600,000 <br /> <br />Because there are adequate funds to build the reservoir and rough-graded access road, but <br />inadequate funds in the VCSP fee account fund or appropriated in a CIP project to fund the <br />remaining water facilities, this presents a cash flow challenge before the pump station and <br />turnout can be awarded and the access road completed. <br /> <br />Direction to Staff Concerning Funding Options <br /> <br />Because of the difference between what is needed for these four projects ($8,531,206) and the <br />amount appropriated ($4,600,000), and because of the uncertainty as to when additional <br />development within the VCPS area will occur (triggering the payment of additional VCSP <br />fees), staff recognizes that there is a need to identify a more definitive source of funding if this <br />project is to proceed at this time. <br /> <br />Staff has looked at a wide range of financing options that are available to the Council. There <br />are also a number of assumptions that figure into the equation as to how much and when the <br />City would be reimbursed for any funds it has expended and will expend. For example, if it is <br />assumed that over the course of the next three years, all remaining development occurs in the <br />VCSP area and that those property owners pay their specific plan fees, as currently the <br />Financing Plan directs staff to calculate, the cash flow to pay for remaining facilities and to <br />reimburse the City and other developers is fairly positive. On the other hand, this assumption <br />anticipates that VCSP Fee account will be reimbursed approximately two million dollars by <br />Signature Properties. <br /> <br />SR06:I52 <br />Page 11 of 13 <br />