The URL can be used to link to this page

Home My WebLink About12 TRANS SURPLUS FNDS TO SPECIAL PW ACCT 11-17-09Agenda Item ~ 2 Reviewed: AGENDA REPORT City Manager Finance Director MEETING DATE: NOVEMBER 17, 2009 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: DOUGLAS S. STACK, ACTING DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: DECLARATION REGARDING SURPLUS IN IMPROVEMENT FUND FOR RE- ASSESSMENT DISTRICT 95-1 AND TRANSFER OF SURPLUS FUNDS TO A SPECIAL PUBLIC WORKS MAINTENANCE ACCOUNT FOR MAINTENANCE PROJECTS WITHIN THE ASSESSMENT DISTRICT SUMMARY All work within Re-Assessment District 95-1 (RAD 95-1) is complete and the City may now declare a surplus in the Improvement Fund for RAD 95-1, as allowed under Section 10427 of the California Streets and Highways Code. Staff is recommending that the surplus be transferred to a special Public Works Maintenance Account to be used for maintenance projects within the District. RECOMMENDATION It is recommended that the City Council adopt Resolution No. 09-57 declaring a surplus in the Improvement Fund for Re-Assessment District No. 95-1 and authorizing transfer of surplus funds to a special Public Works Maintenance Account to be used for maintenance projects within the District. FISCAL IMPACT Transfer of surplus funds from the Improvement Fund for RAD 95-1 to a special Public Works Maintenance Account will provide $4,007,223 (subject to a final audit) for maintenance projects within the District. BACKGROUND On June 16, 1986 Assessment District No. 85-1 (AD 85-1) was formed by Resolution No. 86-81. The District was bounded by the I-5 Freeway, Browning Avenue, Irvine Boulevard and Jamboree Road. On August 1, 1986 bonds were issued in the amount of $50,650,000 to fund the design and construction of public improvements within AD 85-1, including among other items, streets, traffic signals, drainage facilities, utility improvements, and landscaping. Streets constructed within the District included, but were not limited to, Jamboree Road, Tustin Ranch Road, Irvine Boulevard and Bryan Avenue. On June 13, 1988 Assessment District No. 86-2 (AD 86-2) was formed by Resolution No. 88-61. The District was bounded by Irvine Boulevard, Tustin Ranch Road, Santiago Canyon Road/Chapman Avenue and Jamboree Road. On September 1, 1988 the City issued bonds in the amount of $81,400,000 to finance design and construction of public improvements within the District, similar to those for AD 85-1. Streets constructed within the District included Jamboree Road, Tustin Ranch Road, Portola Parkway and Pioneer Road. Declaration of Surplus Funds for Re-Assessment District 95-1 November 17, 2009 Page 2 On January 15, 1996, Re-Assessment District No. 95-1 (RAD 95-1) was formed by Resolution No. 96-8, thereby consolidating portions of AD 85-1 and AD 86-2 within the City of Tustin into a single district and authorizing the issuance of bonds in the amount of $46,000,000 to exonerate the previous bonds. Assessments levied under RAD 95-1 cover the same public infrastructure improvements within the City of Tustin as the previous Assessment Districts. DISCUSSION With the completion of the traffic signal installation at Portola Parkway/Allen/Citrus Ranch Park (CIP No. 4026) on June 29, 2009, all work under the Improvement Fund for RAD 95-1 is complete. It has been determined that a traffic signal at the intersection of Browning Avenue and EI Camino Real (CIP No. 4020), which was to be funded by the Improvement Fund for RAD 95-1, does not satisfy standard warrants and therefore, will not be installed. From an original total of $132,050,000 in bonded improvements, there remains a surplus of $4,007,223 which the City may now declare as a funding surplus. The actual amount will be determined during a final audit. Section 10427 of the State of California Streets and Highways Code permits the City Council to declare the existence of a funding surplus upon the completion of all work identified when the district was formed. This surplus may be used to provide for the ongoing maintenance of the improvements which were funded by the Assessment District. Most landscaping and irrigation improvements within the District are more than twenty years old and are in need of replacement or upgrading due to their deteriorating state. In particular, the backbone irrigation system is in need of replacement, including main lines, master valves, central control and pressure regulators. Much of the plant material is also in need of replacement. Although the surplus funds are not sufficient to pay for all of the required work, the funding will help pay for a portion of the needed work. A project entitled "Tustin Ranch Irrigation System Upgrades/Rehabilitation" (CIP No. 1064) is included in the FY 2009/2010 Capital Improvement Program, with a budget of $1,500,000. This project is currently planned as the first phase of irrigation rehabilitation within the Assessment District. With the adoption of Resolution 09-57, surplus money in the Assessment District Improvement Fund will be transferred to a special Public Works Maintenance Account for projects within the District, beginning with CIP No. 1064. The funds for this project will primarily be applied to rehabilitating the District's backbone irrigation system. ;`~ ~ L // ~ S. Stack irector of Public Works/City Engineer Pamela rends-King Finance Director L~~~^G~ Dana R. Kasdan Engineering Services Manager Attachment Resolution No. 09-57 Re-Assessment District No. 95-1 Boundary Map S:\City Council Items\2009 Council Items\Declaration Re Surplus in Imp Fund for A.D. 95-1.& Reso 09-57.docx RESOLUTION NO. 09-57 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA DECLARING A SURPLUS IN THE IMPROVEMENT FUND FOR RE- ASSESSMENT DISTRICT NO. 95-1 AND AUTHORIZING TRANSFER OF SURPLUS FUNDS TO A SPECIAL PUBLIC WORKS MAINTENANCE ACCOUNT TO BE USED FOR MAINTENANCE PROJECTS WITHIN THE DISTRICT WHEREAS, the City Council of the City of Tustin, California has conducted proceedings and completed construction for certain works of improvement in a special Assessment District pursuant to the terms and provisions of the "Municipal Improvement Act of 1913", being Division 12 of the State of California Streets and Highways Code; said special Assessment District known and designated as Re-Assessment District No. 95-1, hereinafter referred to as (the "Assessment District"); and WHEREAS, it has been determined that a traffic signal at the intersection of Browning Avenue and EI Camino Real (CIP No. 4020), which was to be funded by the Assessment District, does not satisfy standard warrants and will therefore not be installed; and WHEREAS, the remaining work of improvement, as set forth and described in the Resolution of Intention of the proceedings for the Assessment District, has been completed to the satisfaction of this legislative body, and payment has been made; and WHEREAS, after completion of the improvements and payment of all the claims from the Improvement Fund for said Assessment District, there remains a surplus in the Improvement Fund, and this legislative body is desirous at this time to make the disposition of said surplus as so provided by Section 10427 of the State of California Streets and Highways Code. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Tustin, California does declare that the above recitals are all true and correct; and that all the surplus monies, at this time remaining in the Improvement Fund, shall be transferred to a special Public Works Maintenance Account to be used for maintenance projects within the Assessment District. PASSED and ADOPTED by the City Council of the City of Tustin, California on the 17tH day of November 2009. ATTEST: Doug Davert, Mayor Pamela Stoker, City Clerk ,~~ ;>s--in ~ v ~~ ^. ~~~a `, .4 .. CfTY OF TUSTN RE-ASSESSMENT DISTRICT No. 95-1 BOUNDARY MAP LEGEND: City Boundary - - ~ - Aasessors Parcel No. 525-021-03 GRAPHIC SCALE w: iiis +~m- ii ii nun .. ~vn, sea r. u aIU ,. p ~ ~ , I,I-aI ,~, n PE7ER5 ~ ~ aal ~~ el>• CANYON I(I( ~ REGIONagI~~ •-,,,~, el PARK ~~ ., m ~ `~ sls-allei rw o .' u r~iu a m-~ sis-'aa a n~iu n .:.m ~ ~ eif7-Iii MY Ill IYCI n u.n ~~ , Y,-Ill-o1 ~ sls-.n a~ ~'°" srs-ml-o~ mu u . nun sriii-°a~ \ M „ a ~~\, a :-av-al vIU ; iil%iwI - l W-0 'mar s,rsl ~u Il ~..e ...... .. .srn ~w-.u- nun .. lmo ~y "7s w>•n~il n~wl r sm-mar mu r ~O'uSl lL'~ - _ ~ y~i>ti ei-arrs~sd I / ~~~ f "" y,,. 9 na 1 .~. '. m i ~~'„ ,~ l4M aA~I,~e1 1 1 Illee ~i- \ r ~wc _ 1 yTIIVeYI uIc -Oroe~ I y~bMl .n~A u VIII ~~~ u - ~n-n ..e-Y] MY eI~ s ~~ r~:.w~{~ am - b~- arYm Y1~1n1- can YIIItI ]. r `il 'l nun $ ~~~~ -u-sm nwi em } IH~ • F~a ~,.,~xe~l.~r. a qo sr~ n-m _ __~ _ .~,.~L, ._ ~~ 3 »r ~IU em'u` _ ~ ~ uwuii ~' I~ ~ ~~' , uo- ~IU- ~w'°'-u s: w '\ .._.~=~ .:. ~ i