HomeMy WebLinkAboutItem 8.6 FinAdv&BondCounselSvs
CITY CLERK
File # D[3][6J[Q-[l][Q]
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AGENDA STATEMENT
CITY COUNCIL MEETING DATE: March 17, 1998
SUBJECT:
Authorization to solicit proposals for Financial Advisory and Bond Counsel
Services to evaluate feasibility of establishing a Community Facilities
District and other options for financing infrastructure in eastern Dublin.
Report by: Richard Ambrose, City Manager
EXHIBITS ATTACHED: None
RECOMMENDA TIo?\l Authorize Staff to solicit proposals
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FINANCIAL The cost of these services would be paid for by Dublin
STATEMENT: Ranch. If an Assessment District is formed in the
future, these costs could be borne by the Assessment
District.
DESCRIPTION: For over a year, City staffhas been meeting with representatives from the
Dublin San Ramon Services District and property owners in the Eastern Dublin Specific Plan Area to
.discuss infrastructure and financing.
Representatives from Dublin Ranch have recently requested that the City consider the feasibility of
establishing a Community Facilities District for the purpose of financing certain infrastructure, i.e., roads,
freeway interchange improvements, utilities and other public improvements.
Staff has discussed the Dublin Ranch proposal with other property owners in the area. Presently, the other
property owners are not interested in being included in an assessment district. Dublin Ranch has indicated
an interest in having the City form a Community Financing District, which would include those properties
which benefit from the improvements.
Staff believes that there are a number of issues that need to be addressed before the City proceeds with the
formation of a Community Facilities District, including, but not limited to, the following:
1. Is the Community Facilities District the only viable option for funding infrastructure at this time. If
so, what are the impacts on the City, developers and future property owners?
2. Are there other viable financing mechanisms to finance major infrastructure? If so, how do these
mechanisms compare to the Community Facilities District option?
3. What should be the appropriate boundaries of a financing district?
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4. What improvements should be included?
5. What is the impact of Proposition 218 on any of the funding mechanisms?
Given the nature of the issues involved, Staff believe it is highly advisable for the City to retain an
independent financial advisor and legal counsel that are skilled in land-based financing. These
professionals would provide the City and DSRSD with an independent analysis.
COS'r
Dublin Ranch has indicated a willingness to provide funds to the City which could, in turn, be used to
secure the services of the financial advisor and legal counsel. If a financing district is formed in the
future, it may be possible to reimburse the developer from the proceeds of the District.
RECOMMENDA nON
It is recommended that the City Council authorize the City Manager to solicit proposals for financial
advisory and legal services. Upon reviewing the proposals, Staffwould return to the City Council with
recommended proposals.
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