HomeMy WebLinkAboutAGENDA REPORT 2002 1120 CC REG ITEM 09CMOORPARK CITY COUNCIL
AGENDA REPORT
ITEM 9 • C10
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BY:
TO: The Honorable City Council
FROM: Mary K. Lindley, Director of Community Services,'
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DATE: November 6, 2002 (CC Meeting of November 20)
SUBJECT: Consider Funding Source for AVCP Phase II
SUMMARY
At its meeting on October 16, 2002, the City Council
approved an expanded scope of work for AVCP Phase II. The
expanded work includes the scope previously approved with
the addition of improved paved parking lots and ball field
lights for the new fourth softball field.
The additional work approved by the Council requires a
temporary loan to the Park Improvement Fund (Community
Zone) of approximately $712,351. The Council directed its
Budget and Finance Committee (Mayor Hunter and
Councilmember Wozniak) to consider and recommend a funding
source for the loan. The Committee met on October 30 and is
recommending to the full Council that the loan be made from
the General Fund at the time the funds are needed.
BACKGROUND
The initial cost estimate for AVCP Phase II was $1.5
million. Included in the plans was a fourth softball field,
requiring modifications to the adjacent unimproved parking
lot; hydroseeding and irrigating approximately 11 acres for
multi - purpose fields (primarily soccer); construction of a
playground with equipment; installation of a large picnic
pavilion; grading for the new gravel parking lot east of
the football field; minimal hardscape improvements
(concrete walkways); minimal security lighting; and
miscellaneous site furniture such as picnic tables and
trash cans. The approved draft plan also includes the
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Honorable City Council
November 20, 2002
Page 2
installation of electrical conduit at the fourth softball
field to accommodate future ballfield lights, as well as
the potential for lighting the adjacent multi - purpose field
(soccer). Additionally, the approved draft plan proposes
leaving the football practice field in its present
location, rather than moving it east of the football game
field as shown on the previous conceptual plan. The Council
also elected to include work to underground the existing
electrical power line east of the football field.
Not included in the plan were ballfield lights for the new
softball field; asphalt and concrete curbing for the new
parking lot east of the football field; and the water
feature and small parking lot identified at the east end of
the park.
As you will recall from the October 16 Agenda Report, the
cost estimate to construct the approved improvements
increased above the original estimate to $1,793,610,
requiring an additional appropriation of $103,610. However,
the Council was provided with additional construction
options and it elected to expand the scope of work, which
requires an additional appropriation of $902,351 (Option
C). This brings the total project budget to $2,402,351.
The AVCP Phase II is being funded from the Community Zone
of the Park Improvement Fund. It is estimated that at the
end of FY 02/03, the fund balance will be $190,000 (this
includes all budgeted expenditure including $1.5 million
for Phase II). By incurring the additional cost of Option C
($902,351), there will be a funding shortfall of
approximately $712,351 until new Park Improvement Fee
revenue is generated.
DISCUSSION
Attachment A to this report shows the estimated fund
balance for the Community Zone of the Park Improvement
Fund. As you can see, it is estimated that sufficient
revenue should be generated in FY 03/04 to repay any loan
authorized to fund Option C.
Attachment B shows the estimated fund balance for the other
Park Improvement Zones (1 - Central, 2 - North, & 3 -
M: \MLindley \PARKS \Park Projects \AVCP Phase II \AVCP Funding ccagd.doc
Honorable City Council
November 20, 2002
Page 3
South) . Currently, there is not a sufficient fund balance
in any of the other Zones to loan $712,351 to the Community
Zone. The Committee focused its discussion on the use of
the General Fund Reserve Balance and the City's Endowment
Fund as the source of the loan. Both of these sources have
sufficient fund balances to make such a loan. Since the
Endowment has been identified as a funding source for a
number of other projects, such as the construction of City
Hall, the Committee decided the General Fund Reserve was
the preferred option for the loan.
The loan would not be processed until the funds were
actually needed (approximately April 2003) . At that time,
staff will present the Council with a budget amendment for
approval. It is estimated that the loan would be repaid in
approximately a year from the actual loan date. Repayment
would include interest at the applicable Local Agency
Investment Fund (LAIF) rate.
STAFF RECOMMENDATION
Authorize a loan for up to $712,351 from the General Fund
Reserve Balance to the Park Improvement Fund - Community
Zone, for AVCP Phase II.
Attachments: A & B
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II \AVCP Funding ccagd.doc
Honorable City Council
November 20, 2002
Page 4
ATTACHMENT A
Community Zone — Estimated Fund Balance Activity
* Includes Possible Future Aquatic Facility
Fiscal
Year
Expenditure /Project
Estimated
Cost
Revenue
Fund Balance
02/03
$1,500,000
AVCP Phase II
$2,402,351
Tennis Court
Pavilion
$20,000
$210,000
- $712,351
03/04
$784,031
$71,680
04/05
Aquatic Facility
$250,000
$1,314,000
$1,135,680
05/06
Aquatic Facility
$2,750,000
$1,314,000
- $300,000
06/07
$1,122,000
$822,000
Beyond
$5,000,000
$5,822,000
M: \MLindley \PARKS \Park Projects \AVCP Phase II \AVCP Funding ccagd.doc
Attachment B
Park Improvement Funds
Estimated Revenue
* An additional $5 million is anticpated in the Communtiy Zone beyond 2006
Parks /Est Revenue - 10/25/02
Unobligated
Fund Balance
June -03
Revenue Revenue Revenue Revenue
2003/04 2004/05 2005/06 2006/07 Total
Zone
Community Zone
- $712,351
$784,031
$1,314,000
$1,314,000
$1,122,000
$3,821,680
Zone 1 - Central
$354,200
$120,000
$240,000
$240,000
$0
$954,200
Zone 2 - North
$126,000
$0
$0
$0
$0
$126,000
Zone 3 - South
$145,000
$147,000
$50,000
$234,000
$0
$576,000
* An additional $5 million is anticpated in the Communtiy Zone beyond 2006
Parks /Est Revenue - 10/25/02