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TO: BOARD OF SUPERVISORS
FROM: J. MICHAEL WALFORD, PUBLIC WORKS DIRECTOR
DATE: August 21, 1990
SUBJECT: State Route 4 Interim Project, Westbound Lane Over Willow Pass
SPECIFIC REOUEST(q OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
I. Recommended Action:
Authorize Public Works Director to arrange for payment of $368,986.59 from the East/Central
County 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.
II. Financial Impact:
The County's share of this project is $368,986.59 for 1990. This work is funded through fees
collected within the East/Central County Travel Corridor Area of Benefit, (Fund 8189).
III. Reasons for Recommendations and 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 on State Route 4 over the 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
$992,700.00 is due on September 1, 1990.
Continued on Attachment: X SIGNATURE•
,/
_ RECOMMENDATION OF COUNTY ADMINISTRATOR
_ RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON AVG APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
✓ UNANIMOUS (ABSENT 1
AYES: NOES:
ABSENT: ABSTAIN: I hereby certify that this is a true and correct copy of
an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
JMw: ATTESTED: AUG `I. 1 1990
asp ac0Ct�B021.t8 PHIL BATCHELOR,Clerk of the Board
Orig. Div: Public Works (Acct.) of Supervisors and County Administrator
cc: County Administrator
County Counsel ) '
By aw /�3 A� Deputy
Community Development Dept.
City of Antioch
City of Pittsburg
Board of Supervisors
State Route 4 Interim Project -
Page Two
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, 1989,
and May 31, 1990, each jurisdiction's proportionate share of the annual debt service payment
is as follows:
Jurisdiction >Housag Urnts' Percentage ;!Payment
Antioch 820 48.69% $483,345.63
County 626 37.17% $368,986.59
Pittsburg 238 14.14% $140,367.78
Total 1684 100.00% 1 $992,700.00
The County's proportionate share of debt service, $368,986.59, will be paid through fees
collected within the East/Central County Travel Corridor Area of Benefit, which was established
in 1987 specifically to pay for this project. The Transportation Committee has approved staff's
recommendation.
IV. 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 could cause a delay in the debt service\payment
and could cause the Authority to default on the bonds. Rejecting this recommendatioG could
also 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.