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HomeMy WebLinkAbout1992-05-26 - AGENDA REPORTS - COMMUTER RAIL STATION (2)AGENDA REPORT City Manager Approv Item to be presente Jeff Kolin DeDutv Citv ManaLyer UNFINISHED BUSINESS DATE: May 26, 1992 SUBJECT: COMMUTER RAIL STATION - FINANCING DEPARTMENT: Public Works BACKGROUND At their September 24, 1991 meeting the City Council took action subject to the City Attorney approval which authorized the City Manager and the City Attorney to execute a memorandum of understanding with the Los Angeles County Transportation Commission for the loan of $2.5 million dollars for the construction of the Commuter Rail Station (see Attachment I). This loan and the future allocation of Prop C funds are the key financial components from which the Station can be constructed. As of this date, this memorandum remains unexecuted as staff was developing alternative financing options in case litigation against Prop C . was successful. On May 14, 1992, staff received word from the LACTC. that Prop C funds will be available to the City by July 1992. If executed, the City, under this loan agreement, would be required to pledge TDA funds as a back up funding source to Prop C: However, staff believes this possibility is remote. Staff has investigated many variables which impact financial outcomes. These outcomes are primarily dependant upon secured funding sources (which now include Prop C) and future unsecured funding sources. There are two primary outcomes; the first is the Best Case Scenario and is dependant upon the City receiving pending funding sources. The second is the Conservative Case Scenario, dependant solely on funds which are currently available to' the City. BEST CASE SCENARIO With Prop C funds available, the City may now to repay the $2.5 million dollar loan from the LACTC as well as accumulate sufficient reserve to assist in the purchase of the Bermite rail site land in fiscal year 1995-96. Additionally, it assumes that the City will receive $1.5 million in federal funds (Sec. 9 Capital) for rail station construction and 50% of the land cost from Transportation Capital Improvement funds (TCI) in 1994-95 (see Attachment II). APPROVED Agenda Item: Commuter Rail Station - Financing May 26, 1992 Page 2 BEST CASE FINANCIAL IMPACT Under this assumption, surplus TDA for streets and roads would not be impacted. Additionally, with the assistance of surplus Proposition A funds, no addition of monies or funds will be required to purchase the rail station land conservatively estimated at $6,200,000 for both the Whittaker and Rodeo properties. Approximately $92,000-$95,000 may need to be shifted from Transit operations to the rail station. Lowering the cost of transit operations may be achieved by increasing both local and commuter fares and merging the Yellow (60) line with the Blue (30) line. (See attachment III, 92-93 Transit Expenditure Alternatives, Draft Scenario 1). CONSERVATIVE CASE SCENARIO With Proposition C available to the City to repay debt service on a $2.5 million loan, other services or capital projects will not be significantly impacted. Other funding sources included in this Scenario and which the City has received confirmation on are $1.2 million in Transit Capital Improvement funds and $350,000 in SB300 funds (see Attachment IV). CONSERVATIVE FINANCIAL IMPACT Surplus TDA Funds would be available immediately for road projects. However, under this scenario, because of the total land purchase (currently estimated at $6.2 million ) the City will run a deficit beginning in 1996-97. This situation may be affected by the land value being appraised at a much lower figure than staff's conservative estimate. Additionally, the lease agreement contains provisions for deducting the value added to a surrounding 30 -acre parcel as a result of the Rail Station. Significant development or -value added to this land could result in reductions to the land purchase price for the City. In conclusion, Staff has reviewed many financial options with variables which include construction cost, loan amounts and their length of repayment and various possible funding sources (see Attachment V). However, with the recent California Supreme Court decision not to hear the arguments against Prop C, the financial impact to transportation funded service and projects is greatly reduced. Staff desires to move forward to the completion of the station's engineering design and construction with the full intent to have passenger service by October 1992. Commuter Rail Station - Financing May 26, 1992 Page 3 RECOMMENDATION 1.) Direct staff to proceed with the conservative financial scenario. 2.) Direct staff to proceed with Council's direction per its October 22 meeting and execute construction MOU. 3.) Direct staff to execute the MOU for the Rail Station construction. ATTACHMENTS 1. September 24, 1992 - Loan MOU 2. Best Case Financial Scenario Spread Sheet 3. Transit Budget Scenario 4. Conservative Case Financial Scenario Spread Sheet 5. LACTC Loan Agreement 6. October 22, 1991 - Commuter Rail Station Agenda Item 7. Council/Commission Chronology railfm2.agn DEL:dmr CONSENT CALENDAR DAM September 24, 1991 SUBJECTS COMMUTER RAIL STATION DEPARTMINT) Public Works ATTACHMENT I City Manager Item to be presented 5ye .X The Initial Studios for environmental clearance prepared for both the Bermite site and the Glaser Site (alternate location of the Commuter Rail Station) have been completed. The Initial Studies have determined that-& mitigated Negative Declaration is appropriate for both Bites. (See Proposed mitigated Negative Declarations, Attachment 1.) The owners of the Cates property have indicated that their site need not be considered at this time, due to development time restraints. The proposed Negative Declaration has been prepared pursuant to the California Environmental Quality Act and is currently concluding the public review phase. Any comments on the proposed mitigated Negative Declaration will be forwarded to the Council for consideration. The LosAngelea. County Transportation Commission has sent to staff a Memorandum of Understanding (M,O.U.) by which they will loan the City the required amount of money to finance the costs for the Station project. This loan program was implemented by the LACTC because Proposition C funding, which could be used for rail station purposes, is currently in litigation. It is also the City's only funding source which provides immediate capital in.order to meet the construction and station start-up schedule of October, 1992. The anticipated sources for funding this project are) the Transit Capital Improvement Program (TCI)) the Transportation Development Act (TDA)) and the loon program established by the LACTC The loan would ultimately be paid back with proposition C local distribution. In the' event that Proposition C fails in litigation and these funds were not available, then the loan would be paid back with Preposition A, TDA, and/or Ceneral.Fund money. On June 110 3991, staff presented to Council a revised outline agreement with the Whittaker Corporation in order- for the City to lease and eventually acquire, a portion of the 8ermite property. The Council approved the outline In concept, ..and directed staff to draft a Segal document from the outline agreement. �nOnfia (IPIi1� f Agenda Report Commuter Rail Station Page The draft outline was purchase agreement was remaining between the resolved. ATTACHMENT I—A Sent to the City Attorney'@ office and a draft lease prepared (Sea Attachment 3). There are some issues agreed upon outline and the draft agreement yet to be • Anden/Whittaker prefer to use an escrow company of their choice. Staff feels that the City should have the option of using a local company. • anden/Whittaker wishes to establish shared parking with the .station. Staff foresees. parking conflicts if Ander sites businesses with peak hours which coincide- with rail $etvice parking and City leased Speedway parking,. (A potential acquisition option with Rodeo property. • Aaden/Whittaker seeks to reserve the right to previev and approve the City's non -rail station uses or other sublease uses. This may restrict the City's ability to establish multi model transit uses and control commercial uses around the station. Staff feels that these issues would hamper our development of the property and would like the Council's concurrence in that regard,, Staff is seeking Council's approval, in concept, of the Draft Agreement as presented. Staff has met with representative$ of Rodeo Property (owners of the Saugus Speedway) in order to acquire a narrow strip of land.betveen the City's future 2ease/purchass and the railroad right-of-way, which they own. Our negotiations have not been completed but they have indicated a willingness to trade the property for joint use of the parking on the Commuter Rail $its. The draft of the propoSed mitigated Negative Declaration is' 04 file in the Office of the City Clark, 1. Conceptually approve the proposed mitigated Negative Declarations for the Bermite and Olaser sites, with direction to staff to return the proposed Negative Declaration for final certification within thirty days. Z. Council approve, in concept, the loase/purchase agreement as presented contingent upon certification of the proposed mitigated Negative Declaration. 3. Subject to the City Attorney's approval, authorise the City Manager and City Attorney to execute the Memorandum of Understanding with the Los Angeles County Transportation Commission. ATS�Ci4i£li'!g '. Memorandum of Understandiag Lease Purchase Agreement /cesSle BEST CASE CITY OF SANTA CLARITA COMMUTER RAIL STATION REPORT H FY 91/92 + COMMUTER RAIL- REVENUE ESTIMATES: Reserves (Total Rail Surplus/Deficit) 0 Interest Earned @ 6% 0 Transit Capital Improvement (TCI) 234,000 Proposition A Loan 0 Proposition A - Local Return Fund 200,000 SB300 0 Funds from Transit Surplus Anticipated Revenue: 3 Proposition C - pending litigation 0 Transit Capital Improvement (TCI) 0 UMTA - Section 9 Capital Projects 0 Land Acquisition Bond 0 Total Revenue 434,000 COMMUTER RAIL- COST ESTIMATES: RAIL 8: C. TCI, Sec9, SB300, Surplus Art.B avail. beg. FY 93/94, No Loans, No Bonds needed. Note: Shaded area of Transit Surplus not Included in totals. FY 9W FY 97/98 E1L9Bt99 FY 99100 1V 00!01 169,000 354,064 1,610,798 2,616,063 622,532 1,667,310 2,836,228 4,140,482 5,592,170 10,140 21,244 96,648 156,964 37,352 100,039 170,174 248,429 335,530 1,000,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 95,000 95,000 99,275 103,742 110,071 116,785 123,909 131,467 139,487 320,000 0 0 0 0 0 0 0 0 0 1,628,982 814,491 851,143 889,445 943,701 1,001,266 1,062,344 1,127,147 1,195,903 0 0 0 3,100,000 0 0 0 0 0 500,000 1,036,000 0 0 0 0 0 0 0 0 0 0 52,172 0 0 0 0 0 3,723,122 2,320,799 2,657,864 6,866,213 1,713,656 2,885,400 4,192,654 5,647524 7,263,089 5 -Year Debt - $2.5 mil Prop A Loan 0 0 0 - 0 0 0 0 0 0 0 Construction Costs 265,000 - 3,329,057 0 0 0 0 0 0 0 0 Right -of -Way Cost 0 0 670,000 0 0 0 0 0 0 0 Maintenance Costs 0 40,000 40,000 41,800 43,681 46,346 49,173 52,172 55,355 58,731 Lease Payments 0 1 1 1 0 0 0 0 0 0 Land Purchase 0 0 0 0 6,200,000 0 0 0 0 _ 0 10 -Year Debt Svc.- $3.9 Land Bond(7.60/) 0 0 0 0 0 0 0 0 0 0 Total Project Cost 265,000 3,369,058 710,001 41,801 6,243,681 46,346 49,173 52,172 55,355 58,731 Total RailSurplus/Deficit 169,000 354,064 1,610,798 2,616,063 622,532 1,667,310 2,836,228 4,140,482 5,592,170 7,204,358 Note: Figures are based on: (1) 3 -yr. lease, (2) 4th -yr. land purchase, (3) City to pay $670,000 RIW Costs, (4) Construction Cost at $3,594,057. 5/13192 Santa Clarita transit Rail Station Expenditure Alternatives Base Budget (As submitted) 4,132,510 4,132,510 4,132,510 4,132,510 Decision Packages: 1 - Transportation Analyst 41,086 41,086 41,086 41,086 2 - Local Service/San Fernando 125,000 233,000 0 125,000 3 - Elderly/Disabled DAR 51,000 147,000 0 0 4 - General Public DAR 13,000 20,000 0 0 5 - Century City Commuter 89,000 89,000 0 69,000 6 - System Maps 20,000 20,000 20,000 20,000 7 - Side Destination Signs 26,000 26,000 0 0 8 - TranStar 11,000 11,000 0 0 9 - Bus Benches 14,000 14,000 0 0 10 - Kiosks/Maps 5,000 5,000 0 0 11 - Expand LA Commuter 89,000 89,000 89,000 89,000 Tat2lRequested I5&' IsionPackages 484,086 695,086 .•• . 150?086 :' 344,086', ,• !; Savings: R30 Service to Ind Ctr 0 0 (125,000) (125,000) Total Cost Savtstg§ 0 0 ,' (15,OQ0), (125,OOOj DP's minus Cost Savings 484,086 695,086 25,086 219,086 LAC Reimbursement/SFV Local (62,500) (116,500) 0 (93,500) DP's minus Savings/LAC Reimburse 421,586 578,586 25,086 157,586 Fare Increases 20% 0 0 (80,000) (80,000) CONSERVATIVE CASE CITY OF SANTA CLARITA COMMUTER RAIL STATION REPORT 9 EY.9119 FY 97143 FY 93(94 FY 9455 FY.20 FY 9657 i-+ COMMUTER RAIL- REVENUE ESTIMATES: F 2,111,523 253,577 (406,031) Reserves (Total Rail Surplus/Deficit) 0 (848,508) Interest Earned @ 6% 0 108,803 Allocated Revenue, 15,215 r Transit Capital Improvement (TCI) 234,000 0 Proposition A Loan 2,500,000 0 SB300 Anticipated Revenue: 0 0 Proposition C - pending litigation 0 0 Land Acquisition Bond 0 0 Total Revenue 2,734,000 0 COMMUTER RAIL - COST ESTIMATES: 0 0 5 -Year Debt - $2.5 mil Prop A Loan 0 0 Construction Costs 265,000 0 Right -of -Way Cost 0 0 Maintenance Costs 0 851,143 Lease Payments 0 1,001,266 Land Purchase 0 1,195,903 10 -Year Debt Svc.- $3.9 Land Bond(7.6%) 0 0 Total Project Cost 265,000 0 Total Rail Surplus/Deficit 2,469,000 RAIL 1:. C. A$2.5 ban, 5yr., SB300 FY 9756 FY gam FY 99/0II EY M19 2,469,000 2,197,064 1,813,378 2,111,523 253,577 (406,031) (1,026,115) (968,121) (848,508) 148,140 131,824 108,803 126,691 15,215 0 0 0 0 1,000,000 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 0 0 0 320,000 0 0 0 0 0 0 0 0 1,628,982 814,491 851,143 889,445 943,701 1,001,266 1,062,344 1,127,147 1,195,903 0 0 0 3,989,600 0 0 0 0 0 5,566,122 3,143,379 2,773,324 7,117,258 1,212,493 595,236 36,229 159,025 347,395 0 620,000 620,000 620,000 620,000 620,000 0 0 0 3,329,057 0 0 0 0 0 0_ 0 0 0 670,000 0 0 0 0 .0 0 0 40,000 40,000 41,800 43,681 46,346 49,173 52,172 55,355 58,731 1 1 1 0 0 0 0 0 0 0 0 0 6,200,000 0 0 0 0 0 0 0 0 0 952,178 952,178 952,178 952,178 952,178 3,369,058 1,330,001 661,801 6,863,681 1,618,524 1,621,351 1,004,350 1,007,533 1,010,909 2,197,064 1,813,378 2,111,523 253,577 (406,031) (1,026,115) (968,121) (848,508) (663,514) Note: Figures are based on: (1) 3 -yr. lease, (2) 4th -yr. land purchase, (3) City to pay $670,000 RM Costs, (4) Construction Cost at $3,594,057 and (5) First Constr. loan pmt. deferred until FY 93/94. 5/1352 0 COMMUTER RAIL STATION BORROWING AGREEMENT THIS AGREEMENT is made and entered, in duplicate, as of the day of 1992, pursuant to a Minute Order adopted by the City Council of Santa Clar ta at its meeting held on February 11, 1992, and pursuant to a Minute Order adopted by the I s Angeles County Transportation Commission at its meeting held on June 26, 1991, by and between the CITY OF SANTA CLARITA, a municipal corporation (the -"City") and the LOSJANGELES COUNTY TRANSPORTATION COMMISSION, a public body, (the NNW, the City has agreed to pay for the planning and construction of a cuter rail station to be located on real property described on 'Exhibit A hereto, solely the funds provided for herein; and WHEREAS, Commission has approved the City's commuter rail site selection; and ' WHEREAS, City wishes to borrow and the Commission agrees to loan City Two Milli,�on Five Hundred Thousand Dollars ($2,500,000) for costs related to the construction of the Milt commuter rail station; and NOW, THEREFORE, in consideration of the mutual terms and conditions herein, the Parti s agree as follows: 41 1. To the extent funds are available, Commission shall transfer all or a portion of TwolIMillion Five Hundred Thousand Dollars ($2,5W,WW) (the "Loan") to City upon a date or Two and in the amounts selected by the City and appruved by the Commission. City agr s to use said funds solely for costs associated with constructing a commuter rail station at th site approved by the Commission. 2. City shall be charged a variable rate for funds borrowed and transferred to the City hat is based upon the rate funds earn in Los Angeles County's Pooled Investment Fund plus )nc-half a percentage point. Interest on the Loan shall accrue upon the date of receipt of fu ids by the City. Interest will accumulate on the unpaid principal and interest with mont ily amortization in arrears. 3. City shall repay Commission solely from the City's allocation of Proposition "C" Loc Return Funds the principal and interest accrued thereto on the Loan completely within five 5) years of receipt of funds. Repayment schedule shall be equal annual installment payttents due one (1) year from date of receipt of the first funds transferred to the City. Co m1nission will provide City with annual invoices at least sixty (60) days prior to the annual repayment date. City may repay any or all amounts due in excess of the annual requi{-ed in the annual repayment schedule any time within the five (5) years. City, solely at .1. 0 0 9 •..Z 0 its option, may use any of its other available funds instead of Proposition "C" Local Return Funds to make the installment payments, but such funds are not in any way pledged to such 1 4. In the event that the City can not pay an installment of the Loan when due to the Co fission, the Commission may declare an "Event of Default" under this Agreement and Uan •lull a written notice of Event of Default to the City. The Event of Uetautt shall identify the amount of the payment of the installment of the Loan as then due. If the City does not tender from the funds provided herein the amount of such installment of the Loan to the Commission within thirty (30) days following receipt of such written notice of Event of Default, the Commission may, upon coordination with City, instruct the Auditor -Controller to w thhold from payment to the City an amount during the fiscal year in which the Event of Default is declared to exist sufficient to pay the Commission the installment of the Loan as due solely from the City's allocation of Proposition "t:" Local Return Funds not yet received by ie City or held in trust by the Auditor -Controller for the account of the City. PropoThis remedy of the Commission may only be asserted against such City's allocation of sition "C" Local Return Funds not yet received by the City or held in trust for the account of the City by the Auditor -Controller during the fiscal year of the City in which an Evert of Default may be declared and remain unpaid by the City. The Commission shall not seek to assert the special and limited remedy as authorized in this Section 4 against any other funds of the City as may be received, held in trust or otherwise payable to the City by the Auditor -Controller or any other official or agency of the County of Los Angeles. S. City may, at its option, malum to Commission any portion of the Loan transferred to thf City and not needed for construction of the commuter rail station. Said funds repaid will be charged the agreed rate of interest for the time the funds were borrowed. 6. The terms and condition of the Agreement shall be effective upon execution by the Qity and the Commission. 7. All notices required pursuant to this Agreement shall be in writing and personally served or deposited in the U.S. Postal Service, first class, postage prepaid to City at 23920 Vale cia Boulevard, Suite 300, Santa Clarita, California 91355, Attention: City Manager and lo Commission at 818 West 7th Street, Los Angeles, California 90017. Notice shall be deer ed given oil the date personal service is obtained or on the date of deposit in the mail, whic iever applies. S. Tlie ter+ns of this Agreement shall be governed by, construed and interpreted in utce with the laws of the State of California. -2- 9.This Agreement shall not be amended, nor any provision or breach hereof waived, excCpt in writing signed by the parties which expressly refers to this Agreement. 10. This Agreement constitutes the entire understanding between the parties and supefsedes all other agreement, whether oral or written, with respect to the subject matter IAS 11. In the event that there is any legal proceeding between the parties to enforce or I this Agreement or to protect or establish any rights or remedies hereunder, the ng party shall be entitled to its costs and expenses, including reasonable attorneys' IN WITNESS WHEREOF, the parties hereto have caused these present to be duly d with all of the formalities required by the law on the respective dates set forth e their signatures. ANGELES COUNTY TRANSPORTATION COMMISSION Date: 0 PETERSON, Executive Director APPOVED AS TO FORM: r)R 1 rrr CLINTON, County Counsel Date: PHILLIPS, Deputy County Counsel CITt OF SANTA CLARITA, CALIFORNIA III bate: CITY MANAGER APP OVER AS TO FORM: CITY ATTORNEY •4. Date: ATTACHMENT VI AGENDA REPORT / City Manager Approval Item to be presented by: DennisyLuppens w CONSENT CALENDAR & DATE: October 22, 1991 SUBJECT: COMMUTER RAIL STATION DEPARTMENT: Public Works The Los Angeles County Transportation Commission, in an effort to guarantee their desired October 1992 start up schedule, have instituted a program by which they will administer the construction of the Commuter Rail Station platforms for those cities which desire such service. The LACTC has forwarded to staff a Memorandum of Understanding to perform this work. (See Attachment). At the Santa Clarita station site, the LACTC will be administering the grading and construction of the Southern Pacific Rail Road track alignment, required to create level, tangent track for passenger platform use. The LACTC has indicated to staff that expense in time and cost would be saved by including our platform grading and construction in their realignment project. Staff has been provided with the LACTC standard platform design. After entering into this agreement, the City has the option of using their design or we can provide our own design for which they will construct. Because of the proximity of the station to the future City Center, it may be desirable for the City to have a station which fits into the City Center Design Theme. Staff has prepared some platform construction concepts as possible alternatives to the LACTC standard design. (See Attachments). o Staff recommends to Council to direct the City Manager to sign upon approval by the City Attorney, the Memorandum of Understanding with the LACTC for grading and construction of the station platform. o Staff also requests that the Council provide direction to staff regarding the design of the station platform and platform structures. o LACTC Memorandum of Understanding for grading and construction of the.Commuter Rail Station Platform. o Standard platform structure design and representations of alternate designs. rrdAgend STN ARMOWED a Item: ATTACHMENT VII UPDATED CHRONOLOGY OF EVENTS October 30, 1990 Station sites are to be identified by December 11, 1990 for Council's review and approval. November 27, 1990 Council informed that a resolution and site application needed for receiving Station Transportation Capital Improvement (TCI) funds. February 11, 1991 Staff conducts a Commuter Rail Station site forum. February 12, 1991 Request a recommendation from the Planning Commission for a Rail Station site. February 19, 1991 Staff informed the Planning Commission that Bermite was not feasible as a short-term site because the additional right-of-way was not purchased. In ranking short-term rail site, the Planning Commission split; two preferred Gates; two preferred Glazer; and one preferred Drayton. Three of the Commissioners preferred Bermite as the long-term site, and two preferred Schmidt. Since that time, the LACTC has purchased right-of-way to the Bermite site. February 26, 1991 Council adopts Resolution No. 91-91 establishing the City's intention to construct a Commuter Rail Station by applying for funding. April 23, 1991 Council presented an outlined summary of agreement for the Bermite site. Staff directed to negotiate toward final agreement. June 11, 1991 Council receives the latest outline agreement; staff directed to work out final agreement. September 24, 1991 Council conceptually approves the proposed Mitigated Negative Declaration for the Bermite (Glazer) sites, approves the lease/purchase agreement. October 22, 1991 Council approves Commuter Rail Station MOU with the LACTC and directs the City Manager to sign upon the approval of the City Attorney. Page 2 Attachment VII -A February 18, 1991 Planning Commission agrees not to approve the Proposed Commuter Rail site located on the Bermite property, the Negative Declaration or the Oak Tree Permit. February 25, 1992 Council directs staff to return all information submitted in their February 25, 1992 agenda report and staff presentation on this subject back to the march 3, 1992 Planning Commission for their review and consideration. March 3, 1992 Commission approves Bermite site Plot Plan, Negative Declaration and Resolution P92-08. March 10, 1992 Council approves Rail Station Plot Plan and Oak Tree Permit; adopts Resolution 92-47, certifies Negative Declaration; procures construction plans; signs Letter of Acceptance of Drainage Cut/Fill Slopes/ April 21, 1992 Council approved Rail Station land lease agreement between the City and the Whittaker Corporation April 28, 1992 Council awards design on engineering for the Rail Station to Willdan Associates. 5-28cr.agn