HomeMy WebLinkAbout9/17/2003 - STAFF REPORTS (6) DATE: September 17, 2003
TO: City Council
FROM: Director of Public Works/City Engineer
MID-VALLEY PARKWAY MEASURE A REIMBURSEMENT TO COACHELLA VALLEY
ASSOCIATION OF GOVERNMENTS
RECOMMENDATION:
It is recommended that City Council authorize staff to request CVAG's concurrence for a
repayment plan consisting of annual payments of$10,421.26, beginning in 2004 for each
remaining year under the authorized Measure A program until 2038 for a total payment of
$364,744.20. This satisfies the future landowner reimbursement requirement by Agreement
3562 between City of Palm Springs and the Coachella Valley Association of Governments
(CVAG).
SUMMARY:
Acceptance of this proposal by CVAG will satisfy the City of Palm Springs obligation under
Agreement 3562 by paying$10,421.26 per year out of City Local Measure A Funds to CVAG
beginning in 2004 and annually until the last year of the authorized Measure A Program
(2038). The City currently receives approximately $1.4 million dollars per year of Local
Measure A Funds so that payment of$10,421.26 per year will have minimal impact on City
Capital Budgets.
BACKGROUND:
On July 19, 1995, City Council approved a reimbursement agreement with the City of
Cathedral City and CVAG with respect to Phase I of Mid-Valley Parkway which was the
project that constructed Mesquite Avenue from Gene Autry Trail to Shifting Sands Trail in
Cathedral City including the Dinah Shore Bridge. Under the terms of this agreement CVAG
was responsible for payment of 50% of the cost of this project and the local agency was
responsible for the remaining 50%. In accordance with a letter from CVAG,dated March 17,
2003,the total cost of the project was$14,279,011.47. Of that amount the portion occurring
in Palm Springs totaled$6,193,192.84. Agreement 3562 further provides that CVAG pay half
of the 50% local share or 25% of the project costs in addition to their 50%share because
Palm Springs had successfully applied for SB 300 Funds for portions of the project.
Therefor the Palm Springs share of the$6,193,192.84 was 25%or$1,351,956.15. CVAG
further acknowledged a credit due to regional street Improvements on Gene Autry Trail
funded by Assessment District. This credittotaled$987,211.95 as provided in Amendment
2 to Agreement 3562. The$1,351,956.15 obligation,less the credit of$987,211.95,leaves
a total due by the City of Palm Springs under Agreement 3562 of $364,744.20. The
agreement provided that CVAG be reimbursed this amount by future developers and that
costs be collected by the City as property along Mid-Valley Parkway is developed and that
such monies collected be paid to CVAG. The parties further understood that because the
land is almost entirely under Indian allottee ownership thatthe ability of the Cityto collect the
reimbursable charge as property developed is, at best, questionable. Therefor the
agreement provided that if monies were not able to be collected or even if the rate of
development was not satisfactory to CVAG that CVAG could demand and the City would
have the responsibility of paying this amount at any time. Staff recognizes this potential
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Reimbursement to CVAG
September 17,2003
Page 2
problem with establishing a developer reimbursement payment plan and proposes annual
payments to CVAG from City Local Measure A monies until the total amount is remitted.
Discussions with CVAG staff had indicated acceptance with the concept of annual
payments through the life of the Measure A Program recently extended until 2038.
APPROVED APPROVES—'" `���1-
DAVID J. BARAKIAN City Manager
Director of Public Works/City Engineer
ATTACHMENTS:
1. Minute Order
REVIEWED BY DEPT.OF FINANCE
MINUTE ORDER NO.
AUTHORIZING STAFF TO REQUEST CVAG'S
CONCURRENCE FORA REPAYMENT PLAN CONSISTING
OF ANNUAL PAYMENTS OF $10,421.26, BEGINNING IN
2004 FOR EACH REMAINING YEAR UNDER THE
AUTHORIZED MEASUREA PROGRAM UNTIL 2038 FORA
TOTAL PAYMENT OF $364,744.20
I HEREBY CERTIFY that this Minute Order authorizing staff to request CVAG's concurrence
for a repayment plan consisting of annual payments of$10,421.26, beginning in 2004 for
each remaining year underthe authorized Measure A Program until 2038 fora total payment
of$364,744.20 was adopted by the City Council of the City of Palm Springs, California, in
a meeting thereof held on the 17th day of September 2003.
PATRICIA A. SANDERS
City Clerk