HomeMy WebLinkAbout1993-05-11; City Council; 12220; REALLOCATION OF TRANSNET LOCAL FUNDS TO PROVIDE INTERIM FINANCING FOR LA COSTA AVENUE & POINSETTIA LANE INTERCHANGES WITH INTERSTATE 5* *..
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REALLOCATION OF TRANSNET
LA COSTA AVENUE & POINSElTIA LANE
RECOMMENDED ACTION:
Adopt Resolution No. ci 3- 13 9 approving the reallocation of TransNet local fu provide interim financing for the La Costa Avenue and Poinsettia Lane Interchangc
Interstate 5 (1-5) and authorize the Mayor to execute a loan agreement with the San
Association of Governments (SANDAG) to provide bond funding for the 1-5 Interct-
and approve cancellation the current Palomar Airport Road/ld loan agreemer
SANDAG.
ITEM EXPLANATION:
The City of Carlsbad receives annually approximately $1,000,000 in TransNet loca tax funds to assist in the funding maintenance and improvements to the transpc
system. These funds may be utilized without restriction for legitimate transpc
purposes, except they cannot replace General Fund monies needed to meet a stir
maintenance of effort requirements and they cannot be utilized to supplant fund
projects which are a requirement of development.
Carlsbad’s current and proposed funding allocation of Trans.Net local sales tax func
CURRENT PROPOI
PROJECT ALLOCATION ALLOCAT
Palomar Airport Road East $3,015,000 $500,0(
Hidden Valley Road Access to Poinsettia Park*
Local Road Drainage (Railroad Village Storm Drain
to Agua Hedionda Lagoon) $4,700,000 -0-
Palomar Airport Road - Airport Frontage West of El Camino Real (County Airport Frontage) $1,285,000 -0-
Sidewalk Construction Program $300,00O/Year $1 OO,OOO/
$ 750,000 $1 20,0(
Poinsettia Lane Interchange with 1-5 -0- $7,5OO,Ol
La Costa Avenue Interchange with 1-5 -0- $7,000,01
*Only $120,000 of this project is eligible for funding. Remaining funds would SI
developer obligations which would require special agreement with SANDAG.
The restriction of TransNet funds to non-developer obligations prevents the Ci
directly funding major priority projects which are included within the City’s extenc
programs.
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Page 2 of Agenda Bill No. 1% ! 3 2 0
Proiect Status
Among the City’s highest priority circulation projects are the construction
Interchanges with 1-5 at La Costa Avenue and Poinsettia Lane. These projc
included within the City’s Bridge and Thoroughfare District and Community F
District (CFD) No. 1, along with the Palomar Airport Road/ld Interchange.
Poinsettia Lane Interchange is included in the current Capital Improvement Progr:
to be constructed in the 93-94 Fiscal Year at a current estimated cost of $7,500
La Costa Avenue Interchange is programmed for the 94-95 Fiscal Year at a
estimated cost of $7,000,000.
The Palomar Airport Road Interchange is currently under construction and is fully
Approximately $2,000,000 in CFD No. 1 funds are required for the project alc
$2,500,000 to front Federal funds allocated to the project, which will be received ii
increments over the next four years. The City currently has in effect a st
agreement with SANDAG to provide funding for the Palomar Airport Road Intel
This agreement was never exercised by Carlsbad and SANDAG has requested
formally release the current loan agreement.
Both the Poinsettia Lane and La Costa Avenue projects are on schedule, The P
Lane Project has completed design and is ready for final submittal leading tc
advertisement by CALTRANS in late 1993 or early 1994.
La Costa Avenue is lagging Poinsettia Lane by six to nine months.
Prior to advertisement of either project, CALTRANS requires that the City entc
cooperative agreement committing to project funding.
Fundinq Status
Due to the current economic climate, the issuance of bonded indebtedness ur
No. 1 is not advisable at this time. The current CFD fund unencumbered b
approximately $3,000,000. The district currently receives from $1,500,000 to $:
per year. Insufficient funds exist to fund any of the following top priority projec
1. South Carlsbad Library
3. Poinsettia Lane Interchange
4. Cannon Road Reach 1
The staff has identified the option of a loan from the TransNet local funds to th
fund the interchanges. In contacts with SANDAG, it appears that a loan is possil
will add $1 0,000,000 to the City’s current $5,000,000 TransNet fund balance.
2. La Costa Avenue Interchange
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Page 3 of Agenda Bill No. 12,220
The total $1 5,000,000 with supplemental CFD funding would be adequate to procee
both interchange projects.
Funds borrowed under the SANDAG program would be City funds that would r
repayment with interest before the end of the TransNet program in the year 2008. I
debt service would be provided by the City’s annual YransNet allocations unti
payments could begin.
This program is equivalent to a loan to ourselves. Upon repayment the payment fur
be directed into other City projects. This program allows both interchange projt
proceed without delay.
Alternatives
Without a supplemental funding or CFD bond financing, the interchanges WOI
delayed for a number of years. Listed below are the projected dates of consti
assuming the priority listed below:
Cannon Road Reach 1
These are worst case assumptions. It is highly unlikely that the economy will remair
current low levels over a 15 year period. Project schedules would be revised dep
on the priority of the projects.
The remaining CFD projects are:
1. City Hall
2. ha Costa Avenue
3. Veteran’s Memorial Park
4. OlivenRain/Rancho Santa Fe Road
5. Faraday Avenue
6. Leucadia Boulevard
7. Utilities & Maintenance Warehouse
FISCAL iMPACP:
The proposed loan progrzm will divert funding from the following projects to a110
funding of the 1-5 interchange projects:
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Page 4 of Agenda Bill No. j a! 2 2 0
1. Hidden Valley Road.
2. Local Drainage Along the Railroad Village Storm Drain from Oak Stre
Agua Hedionda Lagoon.
Palomar Airport Road East Overfunding.
Palomar Airport Road Airport Frontage West of El Camino Real.
3.
4.
5. Sidewalk Funding Reduction.
These projects will be delayed until alternative funding sources can be general
the exception of Hidden Valley Road, none of these facilities are of a critic;
Hidden Valley Road will require financing in conjunction with Poinsettia Park.
An analysis of the CFD projected revenues and expenditures shows that a SANl
of $8 million will be necessary to fund the projects. The loan would be fully rep:
year 2000 at an Interest cost of approximately $2.8 million.
Should insufficient funds be generated by the CFD prior to 2008, the General Fu
be required to fund the residual debt and receive reimbursement at a later d
probability of this occurring is very low.
To ensure that the General Fund is not exposed, the Council may wish to F
funding after the Library to debt service on the interchanges. This is consisten
current program priorities.
EXHl BITS:
1. Location map - La Costa Avenue Overpass
2. Location map - Poinsettia Lane Overpass
3. Agreement between the San Diego Association of Governments acting as
Diego County Regional Transportation Commission and the City of Carls
Loan of TransNet funds of the Poinsettia Lane and La Costa Avenue/l-5 Int
Projects.
4. Resolution No. 9 3 c J 3 9 approving the reallocation of TransNet local
provide interim financing for the La Costa Avenue and Poinsettia Lane lnte
with Interstate 5 (1-5) and authorizing the Mayor to execute a loan agreemer
San Diego Association of Governments (SANDAG) to providing bond fund
Interchanges. Further, approves cancellation of the current Palomar Airporl
loan agreement with SANDAG with attached Table 1.
LEGEND
: . . . : :. 0 *.-:::i : : : BRIDGE TO BE IMPROVED ... -.
LA COSTA AVENUE OVERPASS
LEGEND
r
POINSETTIA LANE OVERPASS
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AGREEMENT BETWEEN THE SAN DIEGO ASSOCIATION OF
GOVERNMENTS ACTING AS THE SAN DIEGO COUNTY
REGIONAL TRANSPORTATION COMMISSION AND THE CITY OF
CARLSBAD FOR A LOAN OF TRANSNET FUNDS FOR THE
PROJECTS
POINSETIA LANE AND LA COSTA AVENUE/I-5 INTERCHANGE
THIS AGREEMENT is entered into this day of , 1993, betwee
San Diego Association of Governments, a public agency acting as the San Diego Cc
Regional Transportation Commission (hereinafter referred to as "SANDAG") and the C
Carlsbad (hereinafter referred to as "City").
RECITALS
WHEREAS, the voters approved Proposition A on November 3, 1987, adopting thc
Diego Transportation Improvement Program Ordinance and Expenditure Plan, Ordinance
(referred to herein as "Ordinance"); and
WHEREAS, Section 3 of the Ordinance imposed a lh percent transactions and us
(referred to herein as "Sales Tax") for a period not to exceed twenty years for the purpc
providing funding for highway, transit, bicycle, and local street and road improver
regionwide; and
WHEREAS, Section 9 of the Ordinance provides that the Sales Tax revenues shall r
used to replace private developer funding which has been or will be committed for any pr
and
WHEREAS, SANDAG adopted Commission Policy #2 which allows SANDAG to ap,
a loan of Sales Tax revenues to finance a project which is prohibited from receiving fui
under Section 9 of the Ordinance subject to certain terms and conditions; and
WHEREAS, the City has expressed interest in a loan of Sales Tax funds to accelera
implementation of the Poinsettia Lane and La CostaAvenue/l-fi Interchange Improvement Prc
(referred to herein as "Projec:s"); and
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WHEREAS, the Projects are included in and will be financed primarily by developrr
related to Bridge and Thoroughfare Benefit District No. 1 and Community Facilities District
1 making it subject to the requirements of Section 9; and
WHEREAS, the Project would be an eligible street and road project under the Ordina
absent private developer funding; and
WHEREAS, in order to accelerate the implementation of these important projc
SANDAG and the City desire to enter into a Sales Tax loan agreement in accordance with
terms and conditions of Commission Policy #2.
NOW, THEREFORE, SANDAG and the City agree as follows:
1. That SANDAG will loan up to $1 0,000,000 in bond proceeds and up to $4,800,
in City local street and road Sales Tax revenues for the Projects. Payments
be made by SANDAG to the City on a reimbursement basis following receir
a payment request from the City with supporting documentation.
That SANDAG will deduct a prorated share of issuance costs and debt ser
payments for any bond proceeds loan for the Projects on a monthly basis f
the City’s allocation of lntermodal Surface Transportation Efficiency Act (IS7
funds are available in any given month, with any remaining costs to be deduc
from the City’s share of Sales Tax revenues allocated for local street and r
purposes.
The City will repay the total amount loaned, including all debt service paymc
from revenues made available through Bridge and Thoroughfare District #1 an
Community Facilities District #1. The repayment of all funds loaned from
City’s share of Sales Tax revenues allocated for local street and road purpc or deducted for debt service payments shall include the interest earnings
such Sales Tax revenues would have earned had the funds remained in the S
Tax fund. Such interest earnings shall be computed based on the average an
rate of return earned on the investment of the Sales Tax funds during the pe
of the loan. The repayment of the loan will take place prior to the end of
program in 2008.
That, in the event that revenues for the Bridge and Thoroughfare District
and/or Community facilities District $1 are not sufficient to repay the loan
related debt service and interest payments, then the City shall provide payn
from other local non-Sales Tax revenues.
That, as funds are received by SANDAG for repayment of the loan, SANDAG :
return such funds to the City’s share of the Sales Tax revenues allocated for I
street and road purposes.
2.
Surface Transportation Program - Local (STP-Local) funds to the extent s
3.
4.
5.
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6. That, in no case shall the repayment of the amount loaned plus related dc service payments take place after the termination date of the Sales Tax.
That the City covena'nts that it will not take any action that would adversely affc
loan with tax-exempt debt without SANDAG's approval.
That SANDAG and the City may review the terms of this agreement should a
subsequent amendments to the Ordinance modifying the financing provisions
Proposition A be adopted.
That this agreement complies with the provision of Commission Policy #2 and t
Ordinance and will be carried out in accordance therewith.
That the previous loan agreement between SANDAG and the City for the Palorr
Airport Road/l-5 Interchange Project (dated December 2, 1991) is canceled.
IN WITNESS THEREOF, the authorized representatives of both parties have executed ti
7. the tax-exempt status of SANDAG's bond funds and that it will not refinance t
8.
9.
10.
agreement effect the date specified above.
SAN DIEGO ASSOCIATION OF GOVERNMENTS B;;22&N
ACTING AS THE SAN DIEGO COUNTY REGIONAL TRANS PO RTATl 0 N COM MISS ION
KENNETH E. SULZER CLAUDEKE , ayq-
Executive Director City of Carlsbad
APPROVED AS TO SUFFICIENCY APPROVED AS TO FORM: .
OF FORM AND LEGALITY:
Qp & DEBRA A. GREENFIELD l?OU\'-E R. EA'-L r.,~. 5 3 L SANDAG General Counsel < i:,- ?.:'e :p 3;'
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RESOLUTION NO. 93-139
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLS8At
CALIFORNIA, APPROVING THE LOAN OF TRANSNET LOCAL FUNDS FOR TH
CONSTRUCTION OF CERTAIN INTERCHANGE IMPROVEMENTS AN
APPROVING PROJECTS FOR THE 1993 REGIONAL TRANSPORTATIO
IMPROVEMENT PROGRAM, APPROVING A LOAN AGREEMENT WITH THE SA
DIEGO ASSOCIATION OF GOVERNMENTS, AND CANCELING LOA
AGREEMENT FOR FUNDING THE PALOMAR AIRPORT ROAD INTERSTATE
INTERCHANGE.
WHEREAS, the City Council of the City cf Carlsbad determines it is necessary,
and in the public interest to construct improvements to interchanges on Interstate 5 at
Avenue and Poinsettia Lane; and
WHEREAS, funding from the Bridge and Thoroughfare Benefit District and CI
Facilities District (CFD) No. 1 will be received over a long period of time and Council
accelerate the construction of these interchange improvements; and
WHEREAS, the City Council desires to use TransNet Local sales tax funds on a 1
basis for the construction of improvements located at the La Costa Avenue and Poins
interchanges with lriterstate 5, said funds to be repaid from future Bridge and Thoroug
and CFD No. 1 funds; and
WHEREAS, the City Council wishes to enter agreements with the San Diego A
of Governments to provide bond funding to accelerate project construction; and
WHEREAS, the City Council no longer has need for similar funding agreeme
Palomar airport Road - Interstate 5 interchange improvements;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
California, as follows:
1. That the above recitations are true and correct.
2. That the City Council hereby approves the use of TransNet Local sales
made available over the fiscal years 1992 through 1999 to be loaned for the improve1
Interstate 5 interchanges at La Costa Avenue and Poinsettia Lane to be repaid from
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collected from the Bridge and Thoroughfare Benefit District, tax revenues from CFD Nc
Federal ~unds.
3. That the City Council also hereby approves the inclusion of the inte
interchanges at La Costa Avenue and Poinsettia Lane in the 1992-1 999 Regional Trans1
Improvement Program (RTIP) as shown on Table 1, attached hereto and made a part
4. That the City Council hereby requests that the SANDAG Board approve the
funding and the project list and indude them in the Regional Transportation Impl
Program (RTIP) as shown on Table 1.
5. That the City Council hereby authorizes the Mayor to execute the Agreemenl
the San Diego Association of Governments acting as the San Diego County
Transportation Commission and the City of Carlsbad for a Loan of TransNet fund
Poinsettia Lane and La Costa Avenuell-5 Interchange Projects.
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6. That the City Council hereby authorizes the cancellation of the agreement
the San Diego Association of Governments for a loan of TransNet Funds for the Palomi
Road/l-5 Interchange.
PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad CiQ
held on the 11th day of my , 1993 by the following vote, to wit:
AYES: Council Members Lewis, Stanton, Kulchin, Nygaard, Finnil2
NOES: None
ABSENT: None
ATTEST:
ALETHA L. RAUTENKRANZ, City Clerk (SEAL)
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May 13, 1993
Lee Hultgren
Director of Transportation
San Diego Association of Governments
401 B Street Suite 800 San Diego, CA 92101
Dear Lee,
Please find attached a certified original Council Resolution approving FY 94 R’
amendments to the City’s TransNet Local Funds allocation. This list is meant to repl;
in total our previous project submittal. Any project not listed has been deleted.
No changes are proposed in the remainder of the Carlsbad City Programs. I h:
forwarded the original agreements to Craig Scott for final execution.
If you have any questions please call.
LBH:brg ,
c: Craig Scott - Sandag
Financial Management Director
Assistant Finance Director
Traffic Engineer Steve Jantz -_
Debbie Neville
Attachments
2075 Las Palmas Dr. - Carlsbad, CA 92009-1 576 0 (61 9) 438-11 61 - FAX (61 9) 438-0
j 1- -
May 13, 1993
Craig Scott
San Diego Association of Governments
401 B Street Suite 800
San Diego, CA 92101
Dear Craig,
Please find attached three original agreements approving PI 94 RTlP amendments to
City’s TransNet Local Funds allocation for final execution. Please have all three origii
signed and return two back to our office.
If you have any questions please call.
Cordially,
Ci Engineer
LBH:brg
c: Lee Hultgren - Sandag
Financial Management Director
Assistant Finance Director
Traffic Engineer
Steve Jane
Debbie Neville
<
Attachments -_
2075 Las Palmas Dr. - Carlsbad, CA 92009-1 576 0 (61 9) 438-11 61 FAX (61 9) 4384