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HomeMy WebLinkAboutAgenda Report - August 5, 1998 (66)COUNCILCITY OF LODI • • 9</FORCE AGENDA TITLE: Measure K Loan for Highway 12 - Kettleman Lane/Highway 99 Interchange Improvements Project MEETING DATE: August 5, 1998 PREPARED BY: Public Works Director RECOMMENDED ACTION: That the City Council adopt the attached resolution approving the City's commitment to San Joaquin County Council of Governments (COG) securing a Measure K loan for construction of Highway 12 - Kettleman Lane/Highway 99 interchange improvements using future Measure K allocations as collateral and authorizing the City Manager to execute COG's loan agreement. BACKGROUND INFORMATION: City Council approved the contract award for the above project on June 17, 1998. The City has requested a Measure K loan from COG for $840,000 using future Measure K allocations as collateral. Annual payments will be approximately $105,000. The City will make payments on the loan for ten years using Regional Impact Fees as development occurs. Should fee revenues be insufficient, our Measure K maintenance funds would make up the difference. However, this is unlikely as street fee revenue has exceeded $290,000 annually in the past few years. In October 1997, COG developed a Commercial Paper Program to accommodate similar loan requests. Interest will be assessed that covers COG's borrowing costs and a small administrative fee. The actual amount will be determined at the time of signing the loan documents but should be around 4%. COG's Technical Advisory Committee approved the City's loan request. COG's Board will review the loan request on August 27, 1998. FUNDING: In addition to the loan, funding for construction of this project will be from the following sources: California Transportation Improvement Program, Measure K funds, State/Local Transportation Partnership Program, and local funds. The local funds will primarily be funds from Street and Utility Imp )9W ounts. Public Works Director Prepared by Paula J. Fernandez, Associate Traffic Engineer RCPIPJF/Im attachment cc: City Attorney Finance Director Revenue Manager Associate Traffic Engineer APPROVED: Dixon Flynn -- City M nager CMSRKLOAN.DOC 07/28!98 RESOLUTION NO. 98-120 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE CITY OF LODI'S COMMITMENT TO SAN JOAQUIN COUNTY COUNCIL OF GOVERNMENTS (COG) SECURING A MEASURE K LOAN FOR CONSTRUCTION OF HIGHWAY 12/KETTLEMAN LANE/HIGHWAY 99 INTERCHANGE IMPROVEMENTS USING FUTURE MEASURE K ALLOCATIONS AS COLLATERAL AND AUTHORIZING THE CITY MANAGER TO EXECUTE COG'S LOAN AGREEMENT ------------------------------------------------------------------------ ------------------------------------------------------------------------ WHEREAS, on June 17, 1998 the City Council approved the contract award for the Highway 121Kettleman Lane/Highway 99 Interchange Improvement Project; and WHEREAS, the City has requested a Measure K loan from the San Joaquin Council of Governments for $840,000 using future Measure K allocations as collateral; and WHEREAS, annual payments will be approximately $105,000 for ten years using Regional Impact Fees as development occurs; and WHEREAS, should fee revenues be insufficient, the City's Measure K maintenance funds would make up the difference; and WHEREAS, in October 1997, COG developed a Commercial Paper Program to accommodate similar loan requests, in which interest will be assessed that covers COG's borrowing costs and a small administrative fee; and WHEREAS, COG's Technical Advisory Committee has approved the City's loan request and COG's Board will review the loan request on August 27, 1998. BE IT RESOLVED, that the City Council of the City of Lodi does hereby approve the City of Lodi's commitment to the San Joaquin Council of Governments securing a Measure K Loan for construction of Highway 12/Kettleman Lane/Highway 99 Interchange Improvements using future Measure K allocations as collateral and authorizing the City Manager to execute COG's loan agreement. Dated: August 5, 1998 ------------------------------------------------------------------------ ------------------------------------------------------------------------ I hereby certify that Resolution No. 98-120 was passed and adopted by the City Council of the City of Lodi in a regular meeting held August 5, 1998, by the following vote: AYES: COUNCIL MEMBERS - Johnson, Land, Mann, Pennino and Sieglock (Mayor) NOES: COUNCIL MEMBERS - None ABSENT: COUNCIL MEMBERS - None ABSTAIN: COUNCIL MEMBERS - None ALICE M. REIMCHE City Clerk 98-120