HomeMy WebLinkAbout1991-01-08 - AGENDA REPORTS - WHITES CYN RD PROJ REVENUE (2)NEW BUSINESS
DATE: January 8, 1991
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AGENDA REPORT
City Manager Approval
Item to be presented b .
John E. Medina
SUBJECT: WHITES CANYON ROAD PROJECT
REVENUE SHORTFALL
DEPARTMENT: Public Works
BACKGROUND
In March of 1989 the City and the County agreed. that the completion of Whites
Canyon Road from Soledad Canyon Road to Sierra Highway was the number one
priority road project within the City. The County had begun the project prior
to incorporation and"was the lead agency in processing the work to completion.
The City agreed to allocate and provide funds as necessary from its own revenue
producing program.
Attached is a letter from the County Department of Public Works indicating that
because of the slowdown of development they expect a $7,000,000 shortfall in
funds for completion of the project. The County has agreed to fund $6,000,000
from funds borrowed from other County sources if the City would advance
$1,000,000 of its funds toward the project.
We believe that this construction is still the priority project within the City
and propose to advance the expected shortfall of $1,000,000. This can be
accomplished by transferring approximately $900,000 from our balance in the
combined Bouquet Canyon/Route 126 Bridge and Thoroughfare Construction Fee
District (B&T) and advancing $100,000 from the Valencia B & T District.. The
$100,000 would be paid back to the Valencia District from future funds collected
in both the Bouquet Canyon and Route 126 Districts.
RECOMMENDATION
The City Council authorize the expenditure of the combined Route 126/Bouquet
Canyon Bridge and Major Thoroughfare Construction Fee Districts funds of
$900,000 to project 25-96004-227.
Transfer $100,000 to Project 25-96004-227 from the Valencia Bridge and
Thoroughfare revenues as a loan for the project.
Authorize the necessary advance to the County when appropriate to complete the
project.
Letter from the County Department of Public Works
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APPROVED Agenda Item:
THOMAS A. TIDEMANSON, Dlrrclor
November 29, 1990
AUNTY OF LOS ANGELES
DEPARTMENT OF PUBLIC WORKS
RECEIVED
Mr. George A. Caravalho,
City of Santa Clarita
23920 Valencia Boulevard,
Santa Clarita, CA 91355
Dear Mr. Caravalho:
900 SOUTH FREMONT AVENUE
ALHAMBRA, CALIFORNIA 91803.1331
Tclephonc: (818) 458-5100
City Manager
WHITES CANYON ROAD PROJECT
Suite 300
RECEIVED
DEC 14 1990
CIiY blAivriOEds �'PiI;E
CITY Or SANTA CLARITA
ADDRESS ALL CORRESPONDENCE TO:
P.O.BOX 1480
ALHAMBRA, CALIFORNIA 91802-1460
IN REPLY PLEASE
REFER TO FILE:
P-3'
As you know, Phase II of the Whites Canyon Road project, the relocation of the
railroad tracks, is under construction. We plan to advertise the construction
contract for Phase III by April 1991. Due to the downturn of the building
industry, we expect a shortfall in the Bridge and Major Thoroughfare (B&T)
District fees of $7 million by the advertising date, if the current trend
continues. This figure assumes that all funds collected in the Bouquet Canyon
and Route 126 Districts, both in the City and the County, will be used for this
project.
To..keep this much needed project from being delayed due to lack of financing,
an advance of funds from other sources will be needed. If the City of
Santa Clarita could advance $1 million to Phase III, we believe the remaining
shortfall could be borrowed from other County sources. The advanced funds will
e reimbursed in the future with the B&T fees collected as a first priority.
We request that your City consider this proposal.
If you need to discuss this matter further, please contact Mr. Carl Blum,
Assistant Deputy Director at (818) 458-4300.
Very truly yours,
T. A. TIDEMANSON
Director of Publi Works
DONALD L. WOLFE
Deputy Director
HMC:mv
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