CITY COUNCIL AGENDA ITEM NO.
Meeting Date: March 26, 2002
Subject/Title: Approve a Resolution authorizing a loan between the City of Brentwood Fire Facility Fee and the Water Facility Fee Fund
Submitted by: Finance/Engineering: P. Ehler/B. Grewal/T. Wooten
Approved by: John Stevenson, City Manager
Approve a Resolution authorizing the City manager to approve a loan in the amount not to exceed $666,657 from the City’s Water Facility Fee Fund to the Fire Facility Fee Fund to cover payments to be made to Brookfield Homes for the construction of Station #52, CIP Project No. 336-3109.
On May 9, 2000, the City Council approved a Reimbursement Agreement with Brookfield Homes in the amount of $1,663,558 for actual costs associated with construction of Fire Station #52, CIP Project No. 336-3109. This amount was based on estimated construction cost of $1,045,000.
On February 26, 2002, the City Council approved a Resolution authorizing the City Manager to execute a Change Order in the amount of $666,657, increasing the Reimbursement Agreement with Brookfield Homes for the construction of Fire Station #52, CIP Project No. 336-3109; approving an increase in the project budget to a total of $2,581,915, and authorizing the City Manager to approve change orders up to 10% of the contract amount and amend the CIP budget to conform with these amendments.
Staff has met with the County Administrator’s office to negotiate a plan that would reimburse the City for the increased budget costs on Station #52. This reimbursement would come from the Fire Facility Fee the City currently collects for the Fire District. When complete, this agreement would be agendized for action by the Board of Supervisors and, if approved, would subsequently be agendized for approval by the City Council.
The City of Brentwood is obligated to make payments to Brookfield Homes per the Reimbursement Agreement approved on May 9, 2000. In order to cover these expenditures until the agreement with Contra Costa County is executed, staff is requesting authorization for the Finance Director to loan $666,657 for a two (2) year period to the Fire Facility Fee Fund.
The resolution accepts a loan from the City’s Water Facility Fee Fund in the amount of $666,657 to the City’s Fire Facility Fee Fund for a period of two (2) years. The interest rate to be assessed by the City for this loan is six percent (6%), which is approximately equivalent to the rate currently earned by the investment of other City funds with the State of California Local Agency Investment Fund.
It is anticipated that Fire Facility Fees to be collected and retained by the City will ultimately repay this loan.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD ACCEPTING A LOAN IN THE AMOUNT OF $666,657 FROM THE CITY’S WATER FACILITY FEE FUND TO THE FIRE FACILITY FEE FUND
WHEREAS, existing proceeds from CIFP 94-1 are inadequate to fund construction of Station #52, CIP Project No. 336-3109; and
WHEREAS, the City has entered into a Reimbursement Agreement with Brookfield Homes for the construction of Station #52, CIP Project No. 336-3109; and
WHEREAS, the City has requested authority from Contra Costa County to keep $666,657 from future Fire Facility Fees: and
WHEREAS, satisfying the City’s obligations relative to this Reimbursement Agreement prior to receiving above authority from Contra Costa County creates a cash flow problem; and
WHEREAS, in trying to correct this situation, the Finance Department recommends a loan from Water Facility Fee Fund in the amount of $666,657 for a two (2) year period.
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood does hereby accept a loan from the City’s Water Facility Fee Fund in the amount of $666,657 to the City’s Fire Facility Fee Fund.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 26th day of March 2002 by the following vote: