CCMIN091906 - Laserfiche WebLink

improvement, the pump station and the estimated costs associated with the project. Mr. Bocian went over the assumptions made in the Financing Plan and a summary of the Vineyard Avenue Corridor Specific Plan Future Expenses and Revenues. He further detailed the summary of the Vineyard Avenue Corridor Specific Plan Water and Sewer Infrastructure Funding. Mr. Fialho referenced the staff report, page 9 of 13, where staff outlined the cost of the access road. He noted there was a concern expressed at the last Council Meeting where this was discussed, that the City's obligations were somewhat open ended and in fact, they were open-ended. In discussions with the Council staff was asked to look at a way to contain the City's obligation for that improvement - to basically establish some parameters. Staff did talk to the developer, Mr. Resnick, and he, in full cooperation with staff, had his engineer identify an estimate for the improvements based on today's dollars and has come up with a revised estimate of about $1.8M. He indicated Mr. Resnick has informed him that he is willing to cap the City's obligation at that amount, indicating he would be taking the risk on the improvement in the future in the event the project is done and the cost is higher. It would be structured in the way of a reimbursement agreement, so that if he were able to do the project cheaper, the City would only be obligated to reimburse him up to $1.8M. If the Council chooses to pursue that reimbursement agreement to reflect this change, he requested that the Council reflect in their motion to modify the second amendment in the contract to reflect that cap. Mr. Bocian provided a synopsis that indicates the Council is looking at approving a previous City Council staff report to award a contract for the construction of a water reservoir in the Vineyard corridor and other related improvements at a cost of $4.6M. Secondly, as the City Manager just indicated, to direct City staff to bring back an amendment for a sales and purchase agreement to basically cap off the cost of the construction of the access road. He added the third issue is the needed feedback regarding the financing concepts that were presented this evening. Mr. Roush indicated that if Council wanted, direction could be given to staff to include in the amendment to the purchase and sales contract, to include the concept of the $1.8M cap. He added, by awarding the contract this evening, Council is putting into play the fact that the remaining improvements will need to be funded and built as well, which is why the financing plan would need to come back to the Council for approval. He stated this is the first step and once the Council takes this step, the Council is committed to moving ahead with that and finding the funds to pay for it and/or repay the City for any funds that the City has to put out above and beyond the City's pro-rata share of the Vineyard Avenue Corridor Specific Plan infrastructure. In response to Council question, staff clarified the loan/funding process for existing loans #1 and #2, as well as anticipated future loan #3. In response to Mayor Hosterman's question, staff indicated they did not have any concern in the sense that they don't anticipate any major water improvement City Council Minutes Page 8 of 13 September 19, 2006