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Home My WebLink About2003 09-16 CC ADJ MINBook 85/Page 216A 9/16/03 MINUTES OF THE ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA September 16, 2003 The Adjourned Regular Meeting of the City Council of the City of National City was called to order at 2:06 p.m. by Mayor Nick Inzunza. ROLL CALL Councilmembers present: Morrison, Natividad, Parra, Ungab, Inzunza. Administrative officials present: Campbell, Condon, Dalla, Eiser, Hyland, Kirkpatrick, Matienzo, Morse. Other Officials present: Mr. De Dios from Kinsell, Newcomb and De Dios Inc. FINANCING: Main Fire Station (See attached discussion outline and charts: Exhibit A) A brief presentation was made on the architectural approach being pursued for the new fire station. There was discussion about the costs and implications of ADA compliance for the entire Fire Station facility. Funding issues and sources of revenue for the Fire Station project as well as other projects in addition to the Fire Station were discussed. The funding gap for the Fire Station, what it is, when it needs to be filled, and potential sources and actions required to accomplish that objective were reviewed. Staff recommended that a layered approach be explored to fill the funding gap; that at a minimum there should be a plan to issue a note, use Redevelopment reserves or reactivate the California Infrastructure Bank Loan; and that a final workshop be scheduled to choose the funding vehicle to fill the gap and determine interest in securing new long-term financing beyond the immediate gap. Book 85/Page 216B 9/16/03 The consensus of the Council was to pursue a short term solution to fill the gap for the Fire Station, the new Library and the old Library; to keep the long-term financing solution in mind for other needs and to schedule a second workshop to make a final decision. There was no vote. ADJOURNMENT The meeting was adjourned to the Regular Meeting of the City Council to be held on September 16, 2003, at 6:00 p.m., Council Chambers, Civic Center. The meeting closed at 3:15 p.m. u/01, 4 CITY ERK The foregoing minutes were approved at the Regular Meeting of October 21, 2003. CITY OF NATIONAL CITY ALL CITY COUNCIL MEETINGS ARE TAPE-RECORDED. YOU MAY LISTEN TO THE TAPES IN THE CITY CLERK'S OFFICE. COPIES OF THE TAPES MAY BE PURCHASED FROM THE CITY CLERK. EXHIBIT A Fire Station (and maybe other) Funding Needs Goal: review background today; decision at next Workshop 1. Brief discussion of architectural approach (sketches) 2. Two flows of cash: a. One Necessary - immediate (Fire "Gap") & b. Two Suggested - long term (other stuff) 3. Potential projects beyond Fire (Chart A) 4. What is the Fire "Gap" (Chart B) 5. RDA "disclaimer" O 6. Local available funding vehicles — City & CDC (Chart C) and bonding capacity (Charts D & E) 7. Some guiding assumptions: a. Redevelopment is our economic engine b. Redevelopment funds cannot be raided c. Not advisable for City to incur new debt (Chart F) 8. Timing for flows of cash a. Current market b. Gap must be filled by 12-30-03 (out to bid on Fire Station) 9. Explore a layered financing approach to fill the Gap (Charts G & H) 10. Tentative recommendation going into a second Workshop a. At a minimum, plan to issue a note or use Redevelopment reserves or reactivate "C.I.B." application to fund the Gap. b. Schedule a final Workshop on the Gap soon (in 2 weeks?) c. Return then and decide upon: i. Choose the financing vehicle to fund the Gap ii. Determine if there is interest in securing new long-term financing beyond the immediate Gap 1. If there is Council interest, then give Staff some preferences for potential projects & Staff can return with information on projects and financing vehicles file: 091603FireAgenda.doc 9/15/2003 Quick List of Potential Capital Projects Requiring Long Term Financing (no order) (Old ideas, new ideas, some may already be done or have become obsolete; some may have had their scope changed) A. Fire station (Gap) B. Library — any residual needs including: public art, FF&E, books, theft detection, etc. C. City Hall remodel, landscape & seismic (probably can't pass RDA law tests) D. Skateboard Park? E. Green the City - Neighborhood signing & streetscape program F. Bus stop improvements G. Aquatics Center H. Arts Center I. Filipino Village J. Highland Avenue K. CIP — Long Range List of Projects (Chart I) L. 2001 List of Significant Future CIPs (Chart J) M. Transit Oriented Development (housing) N. High density/high rise residential (on the Boulevard & elsewhere) O. From CDC 2001 bond financing discussion: a. Education Center b. Parking Structure c. FEDCO Redevelopment d. National City Blvd. e. Marina Excavation f. Highland Avenue Beautification g. 8th Street Beautification h. Store Front Loan/Grant i. New Town homes West Side j. Additional Land Purchases P. Others... file: 091603Fir6Agenda.doc 9/15/2003 The "Gap" Fire Station Design and Construction Costs Design fees: $655,000 Construction Cost: $7,745,000 Temporary Facilities $50,000 FFE $250,000 Const. Management $260,000 Special Inspection: $35,000 Security/Card Access $125,000 Fiber Optic $100,000 Contingency $250,000 Public Art $77,450 Total: $9,547,450 Available Funding Identified and Encumbered HUD Section 108 Loan $6,900,000 Prior Year CDBG Allocation $202,500 Total $7,102,500 Fire Station Funding Gap $2,444,950 file: 091603FireAgenda.doc 9/15/2003 CITY OF NATIONAL CITY Schedule of Financing Mechanisms Description Uses of Funds Lease Revenue Bonds / Certificates of Participation Lease between City and Authority secures bonds — lease payments are subject to annual appropriation Special Tax Bonds Special tax levied on taxable property secures the bonds — tax is not ad valorem, but is based on Rate & Method General Obligation Bonds Ad valorem tax approved in election secures the bonds Sources of Repayment Voter Approval Key Aspects Variety of public facilities, including general improvements Any governmental facility the legislative body is authorized to construct Uses approved under election General Fund is source of annual appropriations — covenant to budget Special taxes levied annually by the County at the direction of the City Ad valorem taxes levied annually by the County Not required Yes — 2/3 of voters within district Time to Execute • Flexibility to finance a number of projects • Need to have existing repayment capacity • Annual review and approval of levy, subject to maximum tax authorized • Taxes are first lien on property and have right of foreclosure • Authorization limit 10 to 12 weeks 180 to 360 days Yes — 2/3 of qualified voters within City • Authorization limit allows for planning as property values increase . General purpose financing tool, subject to ballot language . County assumes risk on delinquencies 180 to 240 days * Alternatively, the City, or any other corporate or related body, could issue short term notes to provide interim financing for projects. ** The California Infrastructure Bank may provide 20 to 25 year loans at favorable interest rates. 0 CITY OF NATIONAL CITY Financing Capacity Undesignated surplus in the General Fund (FY03 Budget) $545 618 Divide by: Coverage factor (times) 1.20x Multiply by: Revenue cap rate (times) 16.0x Par amount of bonds available $7,274,907 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Financing Capacity Projected gross tax increment for FY2004 $7,643,000 Less: Housing set -aside and pass -through agreements (2,809,500 ) Less: Agency administrative allocation (500,000) Less: Debt service and reimbursement agreements (2,084,000 ) Total — T/I available for bonding $2,249,500 Divide by: Coverage factor (times) 1.20x Multiply by: Revenue cap rate (times) 15.5x Par amount of bonds available $29,056,000 f BOOTMPPrehmtnary &.abet CITY OF NATIONAL CITY BUDGET ANALYSIS, BY FUND • ALL FUNDS, PRELIMINARY BUDGET P—ag.e FISCAL YEAR 2003-04 Fund Fund Balances Projected Projected Inter.Fund Balances Fund Fund Title 06i30/03 Revenues Expenditures Transfers 06/30/04 001 General Fund 1.054.033 27,279,895 27.247.706 (540.604) 545,618 103 General Capital Outlay Fund 0 240,000 240,000 0 D 104 Library Fund 0 407,800 1,327,498 919.698 0 105 Parks Maintenance Fund 0 458,000 858,466 400.466 0 108 Library Capita Outlay 255,261 79,000 45,000 0 289,261 •• Gas Taxes Fund 266.595 1,200,000 470,000 (700,000) 296.595 110 Erne Preparedness Fund 15,00C 0 15,000 0 ill POST Fund 0 0 0 0 113 Cultural Arts Fund • 95,000 95.000 5/29/038:39 PM Suggested Layered Financing — Two Parts LAYER 1 - Do this because: • the cost of money is inexpensive • there is a policy decision to use CDC as the underlying and, if needed, primary funding source • it does not hit CDC reserves at one time if a C.I.B. loan is forthcoming • this Layer addresses the only critical issue; the Fire Gap Details — Need to do to fill the Gap: 1. Reactivate (if practical) a previous C.I.B. loan application and seek approx. $3M. Rate will be about 3.25%, 20- year term; 90-day approval process; repaid by the City. 2. If C.I.B. says no or is late in approving, CDC reserves must move into 1st position to fill the Fire Gap. 3. If C.I.B. loan goes through, execute a lease reimbursement agreement with CDC (chart) LAYER 2 — Could do this IN ADDITION to Laver 1 because: • it is back-up if C.I.B. fails • we want increased project capacity for short-term needs ($5M in Layer 2 vs. $3M in Layer 1 and, potentially $8M if done together) • still economical vs. a conventional bond at normal rates around 5.25% Details — Could add this layer to Layer 1: 1. City's Public Financing Authority (Police Station Project) issues a short-term Note for approx. $5M. Rate will be about 3.25%, 5-year term; 60-day issuance process; perhaps $100k in fees for issuance; repaid by City. 2. Once Note goes through, execute a lease reimbursement agreement with CDC (same chart) file: 091603FireAgenda.doc 9/15/2003 -Investors - Certificates of Participation (COP) or Loan _) -City $3/5M in Debt Obligation / file: 091603FireAgenda.doc Lease Reimbursement Model City's General Fund 9/15/2003 RDA Lease Reimbursement Agreement w/City for portion of Fire Station (similar to Police Station) CAPITAL IMPROVEMENT PROGRAM LONG RANGE LIST OF PROJECTS FY 2003-2004 BEAUTIFICATION Landscape enhancement various freeway exits/entrances Provide entry signs at key locations Billboard abatement Landscape 8th Street south side, east of Harbison LIBRARY Once new library is built, rehabilitate existing for alternative uses PARKS Soccer field Disposition of El Toyon Recreation Center Skateboard park (s) Replace lighting at El Toyon athletic field Replace lighting at Las Palmas athletic field Replace and add lighting system at Kimball Park athletic fields Acquire property near 15th and "B" for new recreation center per Kimball Park Master Plan Acquire property at 16th and C for park expansion per Kimball Park Master Plan Develop Bayfront access and interpretive trails adjacent to Paradise Marsh PUBLIC BUILDINGS AND FACILITIES Energy management at Civic Center Rehabilitate Public Works asphalt yard Phase II and III of Civic Center Landscape Swimming pool master plan implementation "` Replace swim pool filter system Off-street parking lot assessment projects at various locations Preservation of designated historical buildings Upgrade computer capabilities for all City departments Completion of Public Works shop re -roof Equipment parking shed, Public Works compound Install exhaust system in garage Continue with expansion of integrated access control/fire/security system PUBLIC SAFETY Replace City radio network with San Diego County Regional Communications System Network. Construct fire station in northeast quadrant of the City Relocate the primary Emergency Operations Center Establish a secondary Emergency Operations Center Provide electronic data management system for Emergency Operations centers PUBLIC TRANSIT Bus turn -around at 8th Street trolley station PUBLIC UTILITIES Continue undergrounding of overhead utility wires SEWERS Sewer main rehabilitation and extensions. Various locations STORM DRAINS Correction of flooding conditions in vicinity of 18th Street and National City Boulevard Construct concrete cross gutters at various locations Drainage improvement underground - Harbison, 20th to 24th 2 L 4 L 0-1 Storm drain for Division between Harbison and Euclid Underground Paradise Creek at Honeysuckle Lane Complete capacity portion of the Storm Sewer Master Plan STREETS Cul-de-sac Olive between 8th Street and Plaza Boulevard Continue to rehabilitate streets and alleys as necessary Division St./I-5 interchange redesign Continue Division Street widening program to offset impacts caused by loss of Freeway 252 Reconstruct Harbor Drive Accomplish neighborhood street improvements Improve Civic Center Drive/I-5 interchange Improve Bay Marina Way/I-5 interchange Cul-de-sac selected neighborhood streets L/N Avenue, Plaza to 14th - study feasibility of obtaining right-of-way and widening roadway Improve 8th Street and Plaza Boulevard freeway connections Extend N Avenue from Plaza Boulevard to 8th Street Construct 17th Street between Lanoitan and Rachael TRAFFIC CONTROL Continue traffic signal coordination Provide signage for bicycle routes 3 National City - Possible Future Significant Capital Improvement Protects City of National City Manager's Office., Project Title Motivation for Project Lead Dept. project Description Why Needed? When Needed? Approx. Cost Funding Possibilities CDBG Eligible? A Library: renovation or new construction Quality of Life LibraryPublic Construction of a new Library or significant renovation of the current facility. City staff s proposed project. a proposed work 2001. (See bottom recently built unknown o gather • Staff plan and of San Diego unknown State bond funding No funds identified Yes Yes2 A Library consultant Is currently working"with information for the planning phase of th expects to have a final report Including cost estimates completed by the end of page 3 for general information about two area public libraries.) Reuse of facility B Library: rehabilitation of existin library for g ry alternative uses Quality of Life Public Works Renovation of current Library building for alternative uses If new Library is built. C Swimming Pool Master Plan Implementation Quality of Life Parks and Recreation Renovate swimming pool and bathhouse, add a waterside, and add an entry kiosk. Facility is forty years old and is showing chronic signs of its age. This project would implement some or all of consultant's recent findings. Within 2-3 yrs $2 million National Park Service (Urban Park and Recreation Recovery Program grant) and CA Prop. 12 (Parks Bond) Yes D New utility undergrounding projects Quality of Life Public Works This project relocates overhead utilities. Underground utilities increase the health, safety, and welfare of National City residents. On go1ng project Dependant on scope of project Public Utilities Commission Rule 21A Yes E Skateboard park(s) Quality of Life Parks and Recreation Develop 4 parks Meet community desire Within 1-2 yrs $400,000 Private funding and CA Prop 12 (Parks Bond) Yes F New street and alley resurfacing projects Quality of Life Public Works This project repairs or replaces street and alley pavement as necessa ry• Street work Is based upon the the City's Pavement Management System. Alley work is based upon observed need. Ongoing project Dependant on scope of project Proposition A TransNet, Gas Tax Possibly s G Soccer field(s) Quality of Life Parks and Recreation Develop soccer field(s) Meet community desire Within 2-3 yrs $100,000 $75,000 is authorized in General Fund under Capital Facilites Fund #303 Possibly" H "Boxing Club"/Community athletic proposal(s) Quality of Life Parks and Recreation Develop boxing facility Meet community desire unknown unknown No funds identified Yes I State bond funding will provide 65% of total cost. Local match of 35% required. 2 Rehabilitation eligible for CDBG only If building Is used for community purpose, will not be eligible If reused for City office space. 9 CDBG may be used for new paving and major reconstruction, but may not be used for basic maintenance of existing Infrastructure. CDBG cannot be used for equipment purchases for current athletic fields (goal posts, nets, etc...), but CDBG can be used for construction of new athletic fields. 19CIP.exe 5/02/01 Page 1 J Project Title Phases II & III of Civic Center Landscape Fire Station Replacement National City - Possible Future Significant Capital Improvement Protects Motivation Lead for Project Dept. Project Description Quality of Parks and Life Recreation Beautification and ADA access changes to Civic Center. Construction of a new 18, 450 square foot fire Safety Fire station to replace the current facility located at 333 East 16th Street. K Police 800 MHz radio system replacement Safety L Fire Truck Replacement Disposition of El M Toyon Recreation Center Replace old radio trunking system with Regional Police Communication System for consistent communication and county wide support. Replaces 15 year old engine. Places 15 year Safety Fire old engine in reserve (back up) status for projected 5 year period. Safety N Fire Administrative Offices Efficiency Parks and Recreation Fire Demolition of building t Why Needed? Needed to bring access up to ADA standards, add signage to clearly direct customers to their destination, general upgrade of City Hall appearance. Current facility is obsolete, does not meet current operational requirements, State and Nationally recognized health & safety standards and has a space deficiency of 65% based on Space Needs Analysis completed November 1999. Eliminate radio frequency dead areas, in support of Police, Fire, City, and medical services. Needed due to the age of existing equipment and the additional potential dead areas with the radio interference from the Installation of new cell phone transmitters. To ensure reliable fleet of fire apparatus as per Fire Apparatus Replacement Schedule (15 Years first line/5 years reserve) City of National L. City Manager's Office When Approx. Funding CDBG Needed? Cost Possibilities Eligible? desired in FY2001-02 or $774,471 No funds identified Nos FY 2002-03 FY 2002-03 Unknown - several years Federal Fire Act; California $6.9 million Infrastructure and Economic Yes Development Bank Loan; "Section 108" $900,000 Cops More (Technology) and California Law Enforcement Equipment Program (Available in 2002) Not likely 6 CDBG 5 Year Lease FY 2002-03 $280,000 Purchase $65,000- $75,000 per year Yes payment; Federal Fire Act Building has termites and is not feasible o repair. Within 2-3 yrs $50,000 Provides 5,000 Square b Feet of Office Space New Fire Station Project was scaled ack Summer 2000 eliminating Admin. Office Spaces. General landscaping is not eligible for CDBG, but construction costs Incurred to meet ADA requirements are CDBG eligible. Unless protect Is part of community policing or other community Initiative this would not be eligible for CDBG. 19CIP.exe FY 2002-03 $300,000- $912,220 General fund & CDBG Loan from California Infrastructure and Economic Development Bank Yes No 5/02/01 Page 2 National City - Possible Future Significant Capital Improvement Projects City of National City Manager's Office 0 P Project Title Re -roof at Public Works Shop Re -paving of Public Works Yard Energy management at Civic Center Motivation for Project Maintenance Maintenance Cost Savings Lead Dept. - Public Works Public Works Public Works Project Description Install new roof Repave Public Works Yard The City, in partnership with the California Energy Commission, performed a study of possible upgrades for the Civic Center HVAC system which would result in significant energy savings. Why Needed? The Public Works Shop roof is leaking thereby causing the potential for damage to the building interior and contents. The pavement In the Public Works yard is old, deteriorating rapidly, and in need of repair. There is settling at the vehicle entrances to the buildings which potentially can cause damage to the vehicles. The California Energy Commission study identified 7 major projects of varying costs and payback periods. The dollar amount shown at right would allow all the projects to be done at the same time. General information on two recently built public libraries In the County of San Diego In 2000, the City of Carlsbad opened the most recently constructed main library In San Diego County. Carlsbad's library, at 64,000 sq. ft., is larger than the library anticipated for National City. In addition, the City of Carlsbad purchased a site at a cost of $3.8million, In 1995, the City of Chula Vista opened the South Chula Vista Branch Library, funded by the 1987 State Bond. The library is 37,000 sq. ft. and wasconstructed for a total cost of $12,119,905. The actual costs for these two buildings are as follows: Carlsbad - Total Project Cost $22,000,000 When Needed? When resources and space needs at Yard become better defined. When resources and space needs at Yard become better defined. As soon as possible Approx. Cost $240,000 $170,000 $352,500 Funding Possibilities No funds identified $50,000 is proposed in the Fiscal Year 01- 02 CIP The City has received a $50,000 grant from the California Energy Commission and $132,300 is proposed in the Fiscal Year 01-02 CIP, hi a $170.2_ 00 with no identifi ed f ndinc source. Const. Cost Gross Sq Ft Sq Ft Cost Equipment Cost Site Cost Other Costs $9,200,000 64,000 $143.75 $5,200,000 $3,800,000 $3,800,000 9CIP.exe Chula Vista - Total Project Cost $12,119,905 Construction Cost Gross Sq Ft Sq Ft Cost Equipment Cost Site Cost Other Costs $5,053,479 37,000 $136.58 $2,069,234 $2,285,000 $2,712,192 CDBG Eligible? No No No 5/02/01 Page 3 Interest Rate Environment Year Maturity "AAA" Insured National City «wr Stand - Alone National City 1 2004 1.10% 1.70% 3 2006 1.80% 2.25% 5 2008 2.50% 3.00% 10 2013 3.60% 4.15% 15 2018 4.25% 4.80% 20 2023 4.65% 5.15% 25 2028 4.70% 5.20% 30 2033 4.75% 5.25% KINSELL, NEWCOMB DE DIOS, INC. INVESTMENT BANKING 7.00% 6.50% 6.00% 5.50% National 30-Year "AAA" Insured GO Bond Rates - Last 10 Years A 5.00% 4.50% 4.00% 4,0P >O` .o�O4m4) �0h 0y �9° .O4v.dsO4o-+o ,0 s0� \00 90� O rO�4A�• A`Y •OSOa\o.s� `S ,1/41,‘