For City Council Meeting [April 23, 2019]
TO: Honorable Mayor and City Council
APPROVAL: Sean Grayson, Interim City Administrator
FROM: Robb Steel, Assistant CA/Development Services Director
Title
Request City Council to Adopt Resolution No. 7501 Appropriating Expenditures of $67,378.09 for the Costs of Forming a Community Facilities District for the Lytle Creek Ranch Project.
(ACTION)
Body
BACKGROUND:
On July 25, 2017, the City Council approved a Deposit and Reimbursement Agreement with Lytle Development Company (“Lytle”). The City Council concurrently approved professional service agreements and purchase orders with Fieldman, Rolapp and Associates as financial advisor ($30,000), Aleshire & Wynder for bond counsel services ($30,000), and Willdan Inc. for special tax consulting services ($35,000). Under the Deposit and Reimbursement Agreement, Lytle bears all costs associated with the financing and the Initial Deposit required was $80,000. On December 14, 2017, Lytle deposited $80,000 with the City. The City may request additional deposits as necessary to pay the incurred expenses.
ANALYSIS/DISCUSSION:
The parties have incurred modest expenditures to date during the early formation stages ($12,621.91 for FRA). While the revenues were received and expenditures incurred in fiscal year 2017/18, the residual budget was not carried over to fiscal year 2018/19. The attached Budget Resolution appropriates the residual deposit of $67,378.09 to General Fund Account No. 010-500-4255-3001 to pay the consultant costs associated with the formation of the CFD. Lytle previously deposited monies to pay these costs, and this is simply a budgeting adjustment to authorize expenditure of the existing funds on deposit.
ENVIRONMENTAL IMPACT:
The requested action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY:
This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW:
The City Attorney reviewed and approved the staff report and Budget Resolution.
FINANCIAL IMPACT:
Operating Budget Impact
Funding of $80,000 was deposited by Lytle to Account No. 010-400-4255-7598 in FY18. The City expended $12,621.91 of this for consulting services related to the CFD, leaving a carry forward amount of $67,378.09. The Budget Resolution attached hereto increases the budget for 010-500-4255-2011-Lytdd1 to authorize expenditures of $67,378.09 toward the authorized consultants.
Capital Improvement Budget Impact
This does not have an impact upon the Capital Improvement Budget.
Licensing
This action does not have a licensing implication.
RECOMMENDATION:
Staff recommends that the City Council Adopt a Resolution Appropriating Expenditures of $67,378.09 for the Costs of Forming a Community Facilities District for the Lytle Creek Ranch Project.