HomeMy WebLinkAboutCC 5 DEVEL'S ADVANCE 07-06-93 _¢~ CONSENT CALENDAR NO. 5
· 7-6-93 ~. ......
,,ATE:
JUI~ 29· 2993
Inter-Com
TO: ~ILL'rA~ A. HUI~ITON~ CITY IO.I~GER
FROM: F'rN~CE DEPARTHENT
SUBJECT: P~ P~~ OF ~TFZE~ DE~P~ RU~ ~5 "DE~PE~
~V~CE"
RECOMMEND&TION:
Authorize the Finance Director to buy out Hatfield Development's
"Developer Advance" Contract for $2,919 from the City's Water
Enterprise Fund.
FISCAL IMPACT=
There is no material fiscal impact. The enterprise is currently
carrying a $4,054 liability on its books. The full liability will
be removed from the enterprise balance sheet.
DISCUSSION=
In the early 70's the Tustin Water Works entered into agreement
with a number of developers for construction of service lines under
Rule 15 of the Public Utilities Code. The developer put up a
deposit which was used by Tustin Water Works to construct main
lines and service extensions to the newly developed property. The
developer was repaid over the following twenty.years from water
revenues generated by the new services.
The City assumed responsibility for the remaining liability on
purchase of the Tustin Water Works and presently $28,194 remains
unpaid on all advances. Included in the $28,194 is a liability to
Hatfield Development in the amount of $4,054.00.
Mr. Hatfield has proposed an early payoff of the amount due him by
discounting his note by twenty eight percent (28%) or $1,135.00;
this represents a payoff of $2,919. This is slightly below the
calculated present value of the deposit balance that would be
repaid over the eight years remaining on Mr. Hatfield's. contract.
AI~s~s~an~UtF~nanc~rector
Finance Director
RAN: LS: ls
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