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20. a. Review and approve the updated draft Financing Plan for Vineyard Avenue Corridor Infrastructure Improvements Assistant City Manager Bocian gave an overview of the Draft Financing Plan indicating this report updates the Draft Financing Plan for Vineyard Avenue Corridor Infrastructure Improvements (Financing Plan) (Attachment 2) approved by the Council at its meeting of September 19, 2006. The Updated Financing Plan (Attachment 1) is provided in response to Council's request to revisit the Financing Plan prior to making additional expenditures in the Vineyard Corridor. The Updated Financing Plan also includes funding adjustments to meet expenses related to constructing additional Vineyard Avenue Corridor infrastructure improvements as outlined in Agenda item 20b. While the Updated Financing Plan is intended to be used for these projects, it retains the "Draft" label pending inclusion in the FY 2007-08 Capital Improvement Program (CIP) as discussed in the staff report. Staff recommended approval of the Updated Plan (Attachment 1) and authorization for expenditures for the Vineyard Ave. Booster Pump Station (CIP 011023), Water Turnout No. 6 (CIP 011023) and related contract management and consulting services as detailed. Councilmember McGovern noted she had reviewed the plan with respect to what would be the total risk to the City and what the possible long-term debt would be. She came up with approximately $10 million. Staff responded the total loan amount is $8.4 million. In response to question, City Manager Fialho explained how the debt is reflected and what will be required annually in financial reports. Councilmember McGovern expressed concerns with the long-term debt and that initially there was a school site that was to pay a large portion of the financing plan. She stated she is uncomfortable with the financing plan as there are too many unknowns as to how to fund this. She added she hoped that the fee study would have been done so that the Council could look at where other fees could be of help. She expressed she is not sure all the proposed money will be reimbursed. She also noted that every time something is approved before the fee study is done and new fees are in place, the City goes deeper in the hole. She questioned if there was a way to hold off with the fees until the study is done and then when it moves forward the appropriate fees would be charged. City Manager Fialho indicated the City is embarking on a rate study in the next 6 months and out of that rate study the appropriate fee schedule for water will be determined. Councilmember McGovern questioned if there was any way to condition that the fee will be paid once the full study has been done and there is a better financing plan for this whole area. Staff indicated the program contemplates that as development occurs and as staff identifies public infrastructures needs that the City would collect the appropriate amount from future development. One way would be to collect fees upfront, but it detracts from the financing plan that the City currently has in place with the Vineyard Corridor. Council discussed risks as it relates to development and staff indicated the cost of expenditures have been mitigated to the greatest extent possible with this last action that the Council is asked to take regarding the Booster Pump Station and the Turnout No. 6. City Council Minutes 5 February 6, 2007