The URL can be used to link to this page

Home My WebLink AboutMINUTES - 06101986 - 2.2 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on June 10, 1986 , by the following vote: AYES: Supervisors Fanden, Schroder, McPeak, Torlakson, Powers NOES: None ABSENT: None ABSTAIN: None -------------------------------------------------------------------- -------------------------------------------------------------------- SUBJECT: Highway 4 Improvements Harvey E. Bragdon, Acting Director of Community Development, transmitted to the Board a report describing the pro- posed construction project on Highway 4 over the Willow Pass Grade, its funding mechanism, the apportionment of project costs and the loan repayment options (attached hereto and by reference incorporated herein) . Supervisor Tom Torlakson noted that the County' s share of 26% of the initial engineering costs was based on current population and that the apportionment of the repayment of the $2 million project costs would be determined after passage of proposed legislation SB 878 . He suggested that a fee on new housing should be established at this time, both to cover the $25,000 County share of the engi- neering costs and to assure that the fee structure would be in place in the event it is required to repay the County' s share of the $2 million project costs. Supervisor Robert Schroder noted that the fee as currently proposed pertained to only residential construction and that non- residential projects were exempt. He suggested that the fee structure cover both residential and non-residential construction projects. There being no further discussion, IT IS BY THE BOARD ORDERED that the method of sharing the initial $100,000 project cost for the Highway 4/Willow Pass Grade improvement with participating juridictions based on population is APPROVED. IT IS FURTHER ORDERED that the project financing through ABAG' s Credit Pool Program using a five year Certificate of Participation is APPROVED. IT IS FURTHER ORDERED that the Director of Community Development is REQUESTED to report to the Board on June 24 , 1986 on establishment of a fee structure in the unincorporated portion of East County to repay the Certificate of Participation. I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the cc: Community Development Director Board of Superv' rs on the date shown. County Administrator ATTESTED: /0 9 6 PHIL BAIYCHELOR, Clerk of the Board of Supervisors and County Administrator By '`�� , Deputy ' A®OOZ CONTRA COSTA COUNTY COMMUNITY DEVELOPMENT DEPARTMENT TO: Board of Supervisors DATE: June 4, 1986 FROM: Harvey E. BragdonI i S CT: Highway 4 Capacity- Acting Director of Com y ment Improvement f �• a i ti On April 22nd, the Board of Supervisors voted to support construction of a locally financed project on Highway 4 over Willow Pass. The project will provide short term relief to the congestion problem until more extensive improvements can be made. The Board agreed to advance $25,000 for preliminary engineering and en- vironmental clearance and Antioch has agreed to provide the remaining $75,000 to cover these costs. The financial support of all East County jurisdictions must be secured for construction to proceed. To gain this support this report was prepared which describes the proposed project, its funding mechanism, the appor- tionment of project costs, and,the loan repayment options. PROJECT DESCRIPTION The project consists of adding one westbound lane between Willow Pass Road in West Pittsburg 'and Willow Pass Road in Concord, and relocating the existing westbound on-ramp at the West Pittsburg interchange to the right side of the freeway. This improvement would add about 50 percent more capacity in the west- bound direction, accommodating about 2,000 more vehicles per hour. The estimated cost for this project is $2 million. The County would be designated as the project sponsor which involves managing the project and its finances. FUNDING MECHANISM Project financing is proposed through 'ABAG' s Credit Pool Program. ABAG would serve as the Joint Power Authority to which each participating agency is indi- vidually responsible to repay their share of the debt. Payments are made semi-annually. Antioch and the County would be reimbursed for the preliminary engineering and environmental clearance costs through the proceeds from this loan. The remaining funds would be reserved for payment of construction costs. Board of Supervisors Page 2 June 4,• 1986 Debt service schedules for the $2 million. project have been prepared for five, seven, and ten year Certificates of Participation as shown in Table 1. Table 1 ALTERNATIVE DEBT SERVICE SCHEDULES . Certificates of Participation 5 Year 7 Year 10 Year Internal Rate 6.40% 6.73% 7.20% of Return Average Annual Net $474,756 $360,992 $281,557 Debt Service Total $2,373,780 $2,526,942 $2,815,560 Net Debt Service It is proposed that a five year Certificate of Participation be used to repay the loan. Even with the most conservative growth projections the added freeway capacity provided by the project will become fully utilized within five years. It is hoped that the ultimate improvements to Highway 4 from Concord to Antioch will be budgeted and scheduled for construction by that time. If not, additional locally financed capacity improvements will need to be financed and constructed through a new Certificate of Participation. APPORTIONMENT OF PROJECT COSTS The most appropriate method to apportion project costs is to use future housing construction activity. The jurisdiction with the greatest housing growth would put the greatest burden on the added freeway capacity and would pay the greatest share of the project costs. Unfortunately, this method does not allow the fi- nancial obligations for each jurisdiction to be accurately determined before the loan agreements are made. It is proposed that costs be shared on a population basis. Such data is well established and allows each jurisdiction to know what their financial obliga- tions will be before any commitments are made to back the loan. A Public Works memorandum from the City of Antioch dated May 13, 1986, provides the following apportionments: Area Population Share Antioch 49,372 38% Brentwood 5,412 4% Pittsburg 40,495 32% Unincorporated E. County 33,000 26% 128,279 100% Board of Supervisors Page 3 , June 4, 1986 LOAN REPAYMENT MECHANISMS After project costs are apportioned, each jurisdiction would determine how it would pay its share. Options include development fees, redevelopment agency revenues, or the General Fund. Antioch and the County are working toward establishing a fee on new housing construction. Non-residential projects would be exempted from the fee since such projects typically do not increase peak hour traffic on Highway 4 in the westbound direction. Table 2 estimates the fees if all jurisdictions were to use this approach. Table 2 NEW HOUSING UNIT FEES FOR THE HIGHWAY 4 PROJECT Total Annual Projected Fee/ Share of Debt Debt New Housing Housing Project Costs Service Service Construction l Unit Jurisdiction County 26% $617,183 $123,437 2,750 $224 Antioch 38% 902,036 180,407 3,425 263 Brentwood 4% 94,951 18,990 1,125 84 Pittsburg 32% 759,609 151,022 4,024 189 $2,373,779 $474,756 11,324 $210 NOTES: (1) Projections are for five year period 1986-1990, developed for the Consolidated Fire District's East County Fire District Fee Program. FUTURE ACTIONS The following actions need to be taken by the Board of Supervisors to put the Highway 4 project into motion. 1) Agree on a method of sharing project costs with participating jurisdictions. 2) Agree to finance the project through ABAG;s Credit Pool Program using a Five Year Certificate of Participation. 3) Establish a fee for new housing construction in the unincorporated portion of East County to repay the Certificate of Participation. Board of Supervisors Page 4 June 4, ' 1986 On June 9, elected officials representing all East County jurisdictions will meet to finalize cost sharing arrangements for financing the Highway 4 project and to discuss the actions necessary for implementation. It is anticipated that the resolutions allowing work to proceed on this project will be submitted for your consideration on June 10. HEB:plpAdmin