The URL can be used to link to this page

Home My WebLink About2003 09-16 CC ADJ AGENDA PKTAGENDA OF AN ADJOURNED REGULAR MEETING COUNCIL WORKSHOP LARGE CONFERENCE ROOM CIVIC CENTER 1243 NATIONAL CITY BOULEVARD TUESDAY — SEPTEMBER 16, 2003 - 2:00 P.M. OPEN TO THE PUBLIC 1. Financing: Main Fire Station PUBLIC ORAL COMMUNCICATIONS (Five -Minute Time Limit) NOTE: Pursuant to State Law, items requiring Council action must be brought back on a subsequent Council agenda unless they are of a demonstrated emergency or urgent nature. ADJOURNMENT Next Regular City Council Meeting — Tuesday, September 16, 2003 — 6:00 p.m. — Council Chambers, Civic Center TAPE RECORDINGS OF EACH COUNCIL MEETING ARE AVAILABLE FOR SALE AND TO LISTEN TO IN THE CITY CLERK'S OFFICE MATERIALS DISTRIBUTED TO THE CITY COUNCIL DURING THE MEETING MATERIALS DISTRIBUTED TO THE CITY COUNCIL DURING THE MEETING tSC14,t--- 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" 0 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: 091603FireAgend a. d oc 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. 8tih Street Beautification h. Store Front Loan/Grant i. New Town homes West Side j. Additional Land Purchases P. Others... file: 091603FireAgenda.doc 9/15/2003 The "Gap" Fire Station Design and Construction Costs Design fees: Construction Cost: Temporary Facilities FFE Const. Management Special Inspection: Security/Card Access Fiber Optic Contingency Public Art Total: Available Funding Identified and Encumbered HUD Section 108 Loan Prior Year CDBG Allocation Total Fire Station Funding Gap file: 091603 FireAg en d a. d oc $655,000 $7,745,000 $50,000 $250,000 $260,000 $35,000 $125,000 $100,000 $250,000 $77,450 $9,547,450 $6,900,000 $202,500 $7,102,500 $2,444,950 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 * Alternatively, the City, or any other corporate or related body, could issue short term notes to provide interim ** The California Infrastructure Bank may provide 20 to 25 year loans at favorable interest rates. 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 financing for projects. 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 CITY OF NATIONAL CITY BUDGET ANALYSIS, BY FUND - ALL FUNDS, PRELIMINARY BUDGET FISCAL YEAR 2003.04 Fund Balances Fund Fund Td le 001 General Fund 103 General Capital Outlay Fund 104 Library Fund 105 Parks Maintenance Fund 108 Library Capital Outlay • • Gas Taxes Fund Preparedness Fund 110 Erne 111 POST Fund 113 Cultural Arts Fund rsuarMPP.<rm,.n a nget Projected 06/30/03 Revenues 1.054.033 27,279,895 O 240.000 O 407,800 O 458,000 255,261 79,000 266.595 1.200,000 15,000 0 O 0 Protected Expenditures 27,247,706 Page Fund Inter Fund Balances Transfers 06/30/04 (540.604) 545.618 240,000 0 1,327,498 919,698 858,466 400.466 45,000 470.000 15,000 0 95,000 0 0 0 289,261 (700,000) 296.595 0 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 Layer 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 Lease Reimbursement Model City's General Fund RDA Lease Reimbursement Agreement w/City for portion of Fire Station (similar to Police Station) file: 091603FireAgenda.doc 9/15/2003 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 E 4 4 L • 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 Projects City of Nationale 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 Library Construction of a new Public Library or significant renovation of the current facility, A Libraryconsultant is currently working 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.) with City staff s proposed pro a proposed work 2001. (See bottom recently built to gather ect. Staff plan and of San Diego State bond funding' Yes B Library: rehabilitation of existing library for alternative uses Quality of Life Public Works Renovation of current Library building for alternative uses if new Library Is built. Reuse of facility unknown unknown No funds Identified Yes 2 C Swimming Pool Master Plan Implementation Quality of Life Parks and Recreation Renovate swimming pool and bathhouse, add a waterslide, 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. Ongoing 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 necessary. 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 a 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 Possibly4 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 ' State bond funding will provide 85% 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. ' 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 National City - Possible Future Significant Capital Improvement Protects City of National t„ City Manager's Office Project Title Motivation for Project Lead Dept. Project Description Why Needed? When Needed? Approx. Cost Funding Possibilities CDBG Eligible? I Phases II & Ill of Civic Center Landscape Quality of Life Parks and Recreation Beautification and ADA access changes to Civic Center, Needed to bring access up to ADA standards, add si na a to clearlydirect g g customers to their destination, general upgrade of City Hall appearance. desired in FY2001-02 or FY 2002-03 $774,471 No funds identified 8 No Fire Station Replacement e Safety Fire Construction of a new 18, 450 square foot fire station to replace the current facility located at 333 East 16th Street. Current facility is obsolete, does not meet current operational requirements, State and Nationally recognized health & safety standards and has a space deflctency of 65% based on Space Needs Analysis completed November 1999, FY 2002-03 $6.9 million Federal Fire Act; California Infrastructure and Economic Development Bank Loan; "Section 108" Yes K Police 800 MHz radio system replacement Safety Police Replace old radio trunking system with Regional Communication System for consistent communication and county wide support. 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. Unknown - several years $900,000 Cops More (Technology) and California Law Enforcement Equipment Program (Available in 2002) Not likely6 L Fire Truck Replacement Safety Fire Replaces 15 year old engine, Places 15 year old engine In reserve (back up) status for projected 5 year period. To ensure reliable fleet of fire apparatus as per Fire Apparatus Replacement Schedule (15 Years first line/5 years reserve) FY 2002-03 $280,000 CDBG 5 Year Lease Purchase $65,000- $75,000 per year payment; Federal Fire Act Yes M Disposition of El Toyon Recreation Center Safety Parks and Recreation Demolition of building Buildinghas termites and is not feasible to repair. Within 2-3 yrs $50,000 General fund & CDBG Yes N Fire Administrative Offices Efficiency Fire Provides 5,000 Square Feet of Office Space New Fire Station Project was scaled back Summer 2000 eliminating Admin. Office Spaces. FY 2002-03 $300 000- $912,220 Loan from California Infrastructure and Economic Development Bank No 5 General landscaping is not eligible for CDBG, but construction costs incurred to meet ADA requirements are CDBG eligible. e Unless project is part of community policing or other community initiative this would not be eligible for CDBG. 19CIP.exe 5/02/01 Page 2 National City - Possible Future Sianificant Capital Improvement Projects City of National C. City Manager's Office Project Title Motivation for Project Lead Dept. - Project Description Why Needed? When Needed? Approx. Cost Funding Possibilities CDBG Eligible? 0 Re -roof at Public Works Shop Maintenance Public Works Install new roof • The Public Works Shop roof is leaking thereby causing the potential for damage to the building interior and contents. When resources and space needs at Yard become better defined. $240,000 No funds identified No P Re -paving of Public Works Yard Maintenance Public Works Repave Public Works Yard 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. When resources and space needs at Yard become better defined. $170,000 $50,000 is proposed in the Fiscal Year 01.No 02 CIP Q Energy management at Civic Center Cost Savings Public Works 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. The California Energy Commission study identified 7 major projects of varying costs and payback periods. The dollar amount shown at right would allow ajj the projects to be done at the same time. As soon as possible $352,500 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. This leaves No $170.200 with no identified funding source. 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 $3.8mililon. 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 was constructed 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 Const. Cost $9,200,000 Gross Sq Ft 64,000 Sq Ft Cost $143.75 Equipment Cost $5,200,000 Site Cost $3,800,000 Other Costs $3,800,000 Chula Vista - Total Project Cost $12,119,905 Construction Cost $5,053,479 Gross Sq Ft 37,000 Sq Ft Cost $136.58 Equipment Cost $2,069,234 Site Cost $2,285,000 Other Costs $2,712,192 19CIP.exe 5/02/01 Page 3 Interest Rate Environment Year Maturity "AAA" Insured National City "A" Stand- Alone National City 1 2004 1.10% 1.70% 3 2006 1.80% 2.25% 5 2008 2.50% 3.00% 10 2013 3.60% 4.15% 15 2018 4.25% 4.80% 20 2023 4.65% 5.15% 25 2028 4.70% 5.20% 30 2033 4.75% 5.25% KINSEIL, NEWCOMB DE DIOS, INC. INVESTMENT BANKING National 30-Year "AAA" Insured GO Bond Rates - Last 10 Years 7.00% 6.50% I. 6.00% 5.50% 5.00% 4.50% 4.00% a'b boa L• w ,.11. a° ,\ 9h mac �� NI' dO � ef\ lac ai �, a$ 0a9 ` lac 4' A° \ °s NO As Ati boa �° 3 NOO