HomeMy WebLinkAbout1999-12-14 - AGENDA REPORTS - VERMONT/EVERETT ASMT DIST 99-1 (2)CITY OF SANTA CLARITA
AGENDA REPORT
UNFINISHED BUSINESS
DATE: December 14, 1999
City Manager Approval:
Item to be presented by:
SUBJECT: VERMONT DRIVE/EVERETT DRIVE IMPROVEMENTS,
ASSESSMENT DISTRICT NO. 99-1, RESOLUTION AUTHORIZING
THE ISSUANCE OF LIMITED OBLIGATION IMPROVEMENT
BONDS, AND APPROVED AS TO FORM, THE EXECUTION AND
DELIVERY OF A FISCAL AGENT AGREEMENT, A BOND
PURCHASE AGREEMENT, AN OFFICIAL STATEMENT, AND A
PRELIMINARY OFFICIAL STATEMENT — PROJECT NO. 52039
DEPARTMENT: Administrative Services
RECOMMENDED ACTION
City Council adopt the Resolution, authorizing the issuance of limited obligation
improvement bonds, and approve as to form the execution and delivery of a fiscal agent
agreement, a bond purchase agreement, an official statement, and a preliminary official
statement.
BACKGROUND
This project provides a new storm drain, sanitary sewer mainline with house laterals, and
completely reconstructed street improvements for the Vermont Drive/Everett Drive
Improvements, Assessment District No. 99-1. On November 23, 1999, the City Council
awarded the contract for these improvements, with construction scheduled to commence
before the end of December 1999. The Engineer's Report, previously approved by the
Council, gives the details concerning the boundaries, improvements, costs, and method of
assessment for the district.
Staff has been working diligently with the members of the Vermont/Everett community to
implement this project and resolve any questions or conflicts that arise. Recently, several
members of the district complained to staff and the Council that the costs of bringing sewer
laterals to their homes would be especially expensive. Staff reminded the residents that
the district was never intended to pay for the private connections to the sewer main line, as
those costs could vary greatly depending on site conditions. A compromise was worked out
which allowed for the extension of an additional publicly maintained line nearer to their
parcels. The additional costs of the line would be bid as a construction option and then
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VERMONT DRIVE/EVERETT DRIVE IMPROVEMENTS
December 14, 1999 - Page 2
added to their assessments exclusively. When the low bid was accepted, the residents were
informed of the costs, and they chose not to exercise the option.
As previously authorized by the City Council, a portion of the total cost of the district will
be paid by a contribution of City funds. The remaining amount will be funded through the
sale of limited obligation municipal bonds. These bonds, issued under the Improvement
Bond Act of 1915, will be issued in January 2000 and will supply the remaining funds
necessary to complete the project.
As part of the process of issuing bonds, the resolution, in addition to authorizing the
issuance of limited obligation improvement bonds, will execute and deliver a fiscal agent
agreement, execute and deliver a bond purchase agreement, and authorize an official
statement.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
The Engineer's Estimate for the construction of this project is $714,122.00. City Council
previously approved $400,000.00, which has been budgeted in Account No. 52039001 for
this fiscal year. Additional funds will be provided for this project by the sale of municipal
bonds under the Improvement Bond Act of 1915.
ATTACHMENTS
Resolution — Assessment District No. 99-1, Authorizing the Issuance of Bonds
Fiscal Agent Agreement (Available in City Clerk's reading file)
Bond Purchase Agreement (Available in City Clerk's reading file)
Preliminary Official Statement (Available in City Clerk's reading file)
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