HomeMy WebLinkAbout2001-07-10 - AGENDA REPORTS - AMEND FUND AGMT HART DIST SCFF (2)CITY OF SANTA CLARITA
AGENDA REPORT
NEW BUSINESS City Manager Approval:
Item to be presented by: Steve Stark
DATE: July 10, 2001
SUBJECT: AMENDMENT TO THE FUNDING AGREEMENT BETWEEN THE
CITY OF SANTA CLARITA, WILLIAM S. HART UNION HIGH
SCHOOL DISTRICT, AND THE SANTA CLARITA FACILITIES
FOUNDATION
DEPARTMENT Administrative Services
RECOMMENDED ACTION
City Council authorize City Manager to amend the funding agreement between the City,
William S. Hart Union High School District, and the Santa Clarita Facilities Foundation, so
that the City may advance up to $2.0 million from the Public Facilities Fund to the Santa
Clarita Facilities Foundation for the completion of public improvements associated with
Golden Valley Road Phase III.
BACKGROUND
On August 4, 1999, the City Council authorized the construction of Golden Valley Road in
conjunction with the William S. Hart Union High School District's construction of their
future high school site in order to take advantage of the economies of scale on the project.
Subsequently, the City entered into a funding agreement with the William S. Hart Union
High School District and the Santa Clarita Facilities Foundation on December 14, 1999, for
the purpose of outlining each party's financial responsibility to the project. As a result, the
project was completed on time and within the City's budget. However, an estimated
760,000 cubic yards of extra dirt still remains on the school site property that needs to be
removed.
Since then, the City continued with planning and is currently in final preparation for
awarding a construction contract for Golden Valley Road Phase III. Award of the contract
for construction of the road is scheduled for July 10. As part of the original funding
agreement with the School District and the Foundation, there still remains some
construction costs associated with needed sewer work and removal of the additional dirt on
the school property.
A pp1OdL�D Agenda Item
The School and Foundation costs are estimated to be $2 million. The City is prepared to
advance the Foundation this amount, for a term of 18 months, in order to award the
construction contract. The City will charge the School District an interest rate that is
consistent with the City's average monthly investment rate yield. The Foundation is
putting a parcel of land from their newly graded pad as collateral for the advancement of
funds. In the amendment, the City intends to include provisions of foreclosure, in the event
that funds are not paid back in the specified 18 -month period.
ALTERNATIVE ACTIONS
The City Council may choose not to authorize the City Manager to amend the agreement
between the William S. Hart Union High School District and the School Foundation.
Other action as determined by the City Council
FISCAL IMPACT
This advancement of funds will be for an 18 -month term, and interest will be set monthly at
the City's average monthly investment rate yield. Additionally, the School District will be
putting up a parcel of land for collateral with the City. The City has informed the District
that foreclosure on the property will take place in the event that advanced funds are not
paid back in the specified time of 18 months. Advancement of funds will be made from the
Bouquet Bridge and Thoroughfare District to the Santa Clarita Facilities Foundation.
ATTACHMENT
None.
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