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HomeMy WebLinkAboutMINUTES - 08291989 - 1.7 To- BOARD OF SUPERVISORS FROM J. M. Walford Contra Director, Public Works Department Cx)sta DATE: August 27, 1989 WO^ SUBJECT: State Route 4 Interim Project, Westbound Lane Over Willow Pass SPECIFIC REQUEST(S) OR RECOMMENDATION(.S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION: Authorize Public Works Director to arrange for payment of $275, 149.68 from the East/Central Travel Corridor Area of Benefit to Security Pacific National Bank for the County' s share of the annual base payment for the State Route 4 Interim Project. FINANCIAL IMPACT: The County' s share of this project is $275, 149. 68 for 1989. This work is funded on the East/Central Travel Corridor Area of Benefit, (Fund 8191) . REASONS FOR RECOMMENDATIONS/BACKGROUND: On May 24, 1988 , the Board of Supervisors executed a Joint Exercise of Powers Agreement with the cities of Pittsburg and Antioch creating the Contra Costa Delta Highway Joint Powers Financing Authority. The Authority was created to issue bonds to finance the State Route 4 Interim Project, which consists of adding a westbound lane over Willow Pass. On June 7 , 1988, the .County entered into a Payment Agreement with the cities of Antioch and Pittsburg to share the cost of repaying the bonds issued by the Authority. The bonds were issued on August 22, 1988, to be repaid during the next five years. A debt service payment of $988, 325. 01 is due on September 1, 1989. The Payment Agreement requires that each participant' s share of the debt service payment be adjusted annually based on each participant' s prorata share of housing construction during the year. Based on the building permit activity for residential construction between June 1, 1988 and May 31, 1989, each jurisdiction' s proportionate share of the annual debt service payment is as follows: JMW/slg:hwy4ip.pay Orig. Dept. : Public Works, Accounting XX CONTINUED ON ATTACHMENT: _ YES SIGNATURE: RECOMMENDATION OF COUNTY 1 ATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE E I . Schroder or1a]4� SIGNATURE(S): ACTION OF BOARD ON AUG 2 9 Jun APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS (ABSENT ,Ii �' AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES. AND ENTERED ON THE MINUTES OF THE BOARD ABSENT 1Strat OUrrty $gTA'N: OF SUPERVISORS ON THE DATE SHOWN. cc: County Counsel ATTESTED AUG 2 9 1989 Community Development Dept. City of Antioch PHIL BATCHELOR, CLERK OF THE BOARD OF City of Pittsburg SUPERVISORS AND COUNTY ADMINISTRATOR M382/7-83 BY_. .( ,DEPUTY Board of Supervisors State Route 4 Interim Project Page Two Housing Jurisdiction Units Percentage Payment Antioch 1,262 48.720 $481,511 . 95 County 721 27.84% $275,149. 68 Pittsburg 607 23 . 44% $231, 663 . 38 Total 2,590 100. 00% $988,325. 01 The County' s proportionate share of debt service, $275,149.68, will be paid through fees collected by the East/Central Travel Corridor Area of Benefit, which was established in 1987 specifically to pay for this project. The Transportation Committee has approved staff ' s recommendation. CONSEQUENCES OF NEGATIVE ACTION The Payment Agreement discloses that revenues paid by the County or the cities on behalf of the Authority are subject to annual appropriations, and that there is no guarantee that the County or the cities will appropriate such revenues. However, the County and the cities acknowledged in the Payment Agreement that they fully intend to make the necessary annual appropriations. Withholding approval of this recommendation will cause a delay in the debt service payment and could cause the Authority to default on the bonds. Rejecting this recommendation could cause the Authority to default on the bonds. A default by the Authority would have a short term adverse impact on the credit rating of the County.