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<br />Loan # 2 - As indicated in Attachment 2, in July 2003, the Council approved the CIP
<br />project Vineyard Corridor Infrastructure Improvements: Water Tank, Supply Line and
<br />Pump Station (CIP- 011023) in the amount of $3,885,000 for Vineyard Avenue
<br />Corridor water improvements. At the time of approval, it was anticipated that at least
<br />$3,240,000 of this funding would be in the form of a loan using available City CIP
<br />Water Replacement and Improvement funds. The action taken by the City Council on
<br />September 19,2006 awarded contracts for portion of the projects included in (CIP-
<br />011023) including the water storage reservoir, utility planning and design, and the
<br />temporary access road.
<br />
<br />Loan # 3 - This loan, which was also approved by the City Council at its September 19,2006
<br />meeting, will also be made using available City CIP Water Replacement and Improvement
<br />funds. The loan was estimated to be $3,028,138 based on engineering estimates for related
<br />projects. However, with the completion of the public bidding process and the negotiations for
<br />the water storage reservoir access road, the amount will need to be increased to $3,991,944.
<br />The loan will primarily fund the projects included in agenda item 25B.
<br />
<br />A summary of the three loans as included in Attachment 1/Sheet Three, is as follows:
<br />
<br />SUMMARY OF LOANS FOR VINEYARD CORRIDOR UTILITY INFRASTRUCTURE
<br />
<br />Loan # Funding Source 9/16/06 Loan 1/16/07 Loan Difference
<br /> Amount Amount
<br />I CIP Sewer Fund $1,178,625 $1,178,625 $0
<br />2 CIP Water Fund $3,240,000 $3,240,000 $0
<br />3 CIP Water Fund $3,038,138 $3,991,944 $963,806*
<br /> TOTAL $7,446,763 $8,410,569 $963,806
<br />
<br />'Of this amount, $668,000 results in an increase for the water tank access road approved previously by the City Council.
<br />
<br />Loan Reoavment
<br />
<br />As indicated in Attachment 1/Sheet Three, all but $655,000 of the $8,410,569 will be repaid
<br />from Vineyard Avenue Corridor Specific Plan fees. The $655,000 would potentially come from
<br />a water rate adjustment detailed in Attachment 2. The loan repayments will be consistent with
<br />the payment of Vineyard Avenue Corridor Specific Plan fees from new and existing
<br />development and the receipt of reimbursements owed the City for previously completed
<br />improvements to the new Vineyard Avenue. As a result, it is difficult to identifY a specific
<br />repayment timeline. However, an increase in residential development in the Corridor could
<br />result in the majority of repayment being made within the next few years.
<br />
<br />Notwithstanding this situation, there is some risk associated with these loans as follows:
<br />
<br />1) Repayment assumes all properties within the Corridor will develop or, in the case of
<br />existing development, subdivide. While it is difficult to predict the outcome of
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