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Home My WebLink AboutItem 4.03 BART ShortTermLoan .... .. e . CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: April 11, 1994 SUBJECT: Informational Report On Status of BART Short Term Loan (Prepared by: Paul S. Rankin, Assistant city Manager) EXHIBITS ATTACHED: 1.~ Excerpt from Section 9(a) of agreement between the City of Dublin and Alameda county Surplus Property Authority. .(')(2. /Letter to Surplus Property Authority Advising 11~. lof the status of the obligation to be repaid. RECOMMENDATION ~ ~ Recei ve the report. them FINANCIAL STATEMENT: BART originally advanced $1.224 million to the ci ty on a short term basis. The Alameda County Surplus Property Authority has guaranteed the repayment of the advance with accrued interest, if specified funding sources are not available to the city. DESCRIPl'ION: In 1990, the city of Dublin and the Bay Area Rapid Transi t District entered into a "Settlement Agreement." The agreement resulted in a dismissal of a lawsuit filed by the city of Dublin, related to alleged violations of the California Environmental Quality Act (CEQA), with respect to BART's approval of the Dublin/Pleasanton Extension project. The agreement provided the City with access to certain funds to construct roadway improvements adjacent to the proposed station. primarily this related to the two lane extension of Dublin Boulevard between Dougherty Road and Hacienda Drive. PROVISIONS OF SETTLEMENT AGREEMENT PROVIDING AN ADVANCE OF FUNDS Section 2(b) of the Settlement Agreement states: "... if BART determines to construct parking lots for the East Dublin BART Station both north and south of Interstate 580, BART agrees to advance funs on (i) a short-term basis in the amount of up to $1.224 million, and (ii) a long term basis in the amount up to $1.061 million, ... for the purpose of building the Roadway Extension." In December of 1991 the city received its first advance of $1,928,247.75 and the final increment was received in March of 1992. The terms for the repayment vary on the short-term vs long term advance. TERMS FOR REPAYMENT TO BART OF SHORT TERM ADVANCE The Settlement Agreement provides that the short-term advance along with accrued interest shall be paid back to BART by December 31, 1995. section 3 (c) describes that the source of the repayment "... will be made from proceeds of assessments, special taxes, exactions and/or fees or any bonds secured by such assessments, special taxes, exactions or fees, which are imposed for the Roadway Extension or from any source available to the ci ty. . . " As of March 27, 1994, the total amount outstanding on the short-term advance is $1,434,661.20. This includes the original advance of $1,224,000 plus accrued interest. Section 3(f) of the Settlement Agreement provided for the interest rate to be based on the average rate of return on BART's investments for the previous three year period. ---------------------------------------------------------------------- ITEM NO. ~. '7 COPIES TO: CITY CLERK FILE ~ e . SUBSEOUENT GUARANTEE FROM ALAMEDA COUNTY SURPLUS PROPERTY AUTHORITY In March of 1991 the city of Dublin entered into a separate agreement with the following parties: the city of Pleasanton, the county of Alameda, and the Surplus Property Authority. The purpose of the agreement was to facilitate the construction of Dublin Boulevard Extension, which was a Federal Highway Administration requirement for the city of Pleasanton to construct the Hacienda Drive Interchange. Within this agreement the Surplus Property Authority granted a Guarantee to the city of Dublin related to the repayaent of the short-term BART advance. (See Exhibit 1) Specifically the agreement states that if "... such advance has not been repaid by DUBLIN to BART by october 31, 1995, from the proceeds of assessments, special taxes, exactions and/or fees or any bonds secured by said assessments, special taxes, exactions and/or fees, the Surplus Property Authori ty will repay the full amount of such advance, together with interest thereon ..." This commitment will release the city from the obligation if monies from development benefitting from the roadway cannot be assessed and collected prior to December 31, 1995. REOUIREMENT FOR NOTICE TO SURPLUS PROPERTY AUTHORITY The Agreement provides that not later than April 1, 1994, the city of Dublin must provide the Surplus Property Authority with an accounting of funds available or anticipated to be available to repay the BART advance. The city must also disclose the amount which the Surplus Property Authority will be required to repay. At the present time the City cannot report that any monies will be available to repay the commitment. Due to lawsuits related to the Eastern Dublin specific Plan and the Eastern Dublin General Plan, the City has not had any Developer interest in proceeding wi th infrastructure financing plans, until there is greater certaini ty of the approved land use. Further, it is not possible to predict at this time that any specific amount of money will be collected over the next 21 months before the Obligation comes due. Staff has prepared and submitted the Notice to the Surplus Property Authority (Exhibit 2) which meets the legal obligations of the Agreement. Staff will continue to update the information and advise the city council as well as the Authority of any material changes. It is recommended that the city Council receive this report. <or or".~ ,. . AGREEMENT BETWEEN THE CITY OF DUBLIN, THE CITY OF PLEASANTON, THE COUNTY OF ALAMEDA AND THE SURPLUS PROPERTY AUTHORITY REGARDING CONSTRUCTION OF CERTAIN ROADWAY IMPROVEMENTS (-" ....2. \ Ex c. t.\~j)T 9. SURPLUS PROPERTY AUTHORITY Guarantee. (a) In the event that DUBLIN exercises its right under the BART/DUBLIN AGREEMENT to' receive a short term advance in an amount up to One Million, Two Hundred Twenty-Four Thousand and NO/l00 Dollars ($1.224 million) and such advance has not been repaid by DUBLIN to BART by October 31, 1995, from the proceeds of assessments, special taxes, exactions and/or fees or any bonds secured by said assessments, special taxes, exactions and/or fees, the SURPLUS PROPERTY AUTHORITY guarantees DUBLIN that SURPLUS PROPERTY AUTHORITY will repay the full amount of such advance, together with interest thereon as provided in the BART/DUBLIN AGREEMENT, to BART on behalf of DUBLIN within 45 days of written demand by DUBLIN to SURPLUS PROPERTY AUTHORITY to do so and in no event later than December 31, 1995. SURPLUS PROPERTY AUTHORITY agrees and promises in good faith to exercise all its powers, as provided by Government Code S 40567, to repay such advance to BART on behalf of DUBLIN. No later than April 1" 1~94,": DUBLIN shall provide SURPLUS PROPERTY AUTHORITY with an accounting of funds available or anticipated to be available to DUBLIN to repay the advance to BART and the anticipated a~ount which SURPLUS PROPERTY AUTHORITY will be requ~red to pay to BART under the provisions of this paragraph. Sx\-\I~T T 1. " e e CITY OF DUBLIN Po. Box 2340, Dublin, California 94568 . City Offices, 100 Civic Plaza, Dublin, California 94568 March 24, 1994 Mr. steven Szalay, county Administrator Alameda county Surplus Property Authority 1221 Oak street, suite 555 oakland, california 94612 RE: Notice Required By section 9(a) of Agreement Regarding Construction of Certain Roadway Improvements [#C-91-270] CERTIFIED MAIL # P 677 804 041 Repayment Obligation By Surplus property Authority for BART Advance To city of Dublin (DUblin Blvd. Extension) Dear Mr. Szalay: In accordance with the agreement referenced above, the city of Dublin is required to notify your entity prior to April 1, 1994, of the status of the BART advance to construct Dublin Boulevard Extension. The agreement provided for the city of Dublin to repay the outstanding amount from development related funding from those properties benefitting from the roadway. As you are aware, the timeframe for development in the affected area has been hindered by the delay caused by legal proceedings against the City's adopted development plans. Therefore, at this time we must report that there have been no monies collected by the city attributable to repayment of the BART short-term advance. Further, at this time it is not possible to predict the amount of monies, if any, which would be available on the repayment date of December 31, 1995. The amount currently outstanding is the original advance of $1.224 million plus accrued interest. As of March 27, 1994, the total outstanding is $1,434,661.20. The estimated total Alameda County Surplus property Authority obligation will include additional accrued interest for the period from March 1994 through December 1995. It is anticipated that we will receive the interest rate applicable to the period (March 28, 1994 - March 27, 1995) in the next two months. I have requested that my Staff provide you with updated information as it is received. In accordance with the Agreement the surplus Property Authority should anticipate a requirement to repay the entire BART Advance plus all accrued interest. In the event that these circumstances change the city will advise you accordingly. Sincerely, \.j3AjlC ~ Richard C~brose City Manager cc: Paul s. Rankin, Assistant city Manager Elizabeth Silver, City Attorney E'AHibtf Z Administration (510) 833.6650. City Council (510) 833-6605. Finance (510) 833-6640. Building Inspection (510) 833-6620 Code Enforcement (510) 833-6620 . Engineering (510) 833-6630 · Planning (510) 833.6610 . Recreation (510) 833-6645