CCMIN091906 - Laserfiche WebLink

Mr. Fialho clarified Signature Properties, the developer of Ruby Hills, owes the City about $2.7 million. Mayor Hosterman opened the public hearing. Hearing no requests to speak, the public hearing was closed. Council discussion included how the present Council has inherited this issue and needs to figure out how to get reimbursed for the costs. It was noted that when the financing plan is brought back, Council would like to see the worst-case scenario included. Councilmember McGovern expressed concern that there is no guarantee the cost won't be more than $13M. She indicated she did not vote for this last time and she still has concerns. She questioned if there is a way to use COPS, so the City could take the $4.6M and sell Certificates of Participation at low interest rates. Staff responded that is not possible. Council member McGovern suggested a full public review of the exact total cost. There are 68 homes left in this area to charge a fee to in order to cover the full cost. She stressed the need to recognize the full debt before going forward. Mr. Fialho clarified that the Council would only be authorizing the spending of $4.6M. Before the rest of the improvements are authorized, staff will present a more refined proposal for financing/payback. Mayor Hosterman indicated this project started years ago with a proposal for over 700 homes for the Vineyard Avenue Corridor. At that time there was substantial community input as to what made sense. After review of the proposal, the number of homes proposed was 200. The reason the Council looked seriously at allowing that development was in anticipation of Neil Elementary School. The School District continues to ensure the school will be built in the future. However, since then homes have been built in that area and some years ago the Council came up with a financing plan that included water infrastructure improvements and other infrastructure improvements. She thanked staff for coming up with a best-case scenario for getting the water tank built to service those new homes. She believes there is no another way to deal with this issue at this time. Motion: It was m/s by Sullivan/Hosterman to approve plans and specifications; reviewed bids and awarded a construction contract for the Vineyard Hills Reservoir and Access Road to Gateway Pacific Contractors, Inc. in the amount of $3,942,206; approved and authorized the City Manager to execute an amendment to the existing contract with Tetra Tech, Inc., in the amount of $505,000 to perform construction management services, specialty inspection services and geotechnical services for said project; authorized an appropriation of $1,100,000 from the current fund balance in the VCSP fee account into the VCSP Water Facility Project (CIP #011023); approved the First Amendment to the Purchase and Sale Agreement with Threehand LP, including a cap of $1,880,000 as to the City's financial participation on the finished grade portion of the road; and directed staff to develop a financing plan for the remaining portions of the City Council Minutes Page 10 of 13 September 19, 2006