AGENDA REPORT
REQUEST FOR CITY COUNCIL AND
CORONA UTILITY AUTHORITY ACTION
DATE: 04/01/2020
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Administrative Services Department
SUBJECT:
Title
City Council consideration of Resolution No. 2020-014, declaring its intent to reimburse expenditures relating to the construction of public facilities from the proceeds of the sale of tax-exempt bonds.
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RECOMMENDED ACTION:
Recommended action
That the:
a. City Council adopt Resolution No. 2020-014, declaring its intent to reimburse expenditures relating to the construction of public facilities from the proceeds of the sale of tax-exempt bonds.
b. Corona Utility Authority (CUA), review, ratify and to the extent necessary direct that the City Council take the above action.
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ANALYSIS:
The City of Corona Department of Water and Power started construction on the master planned Keith Tank 1220-Zone Potable Water Tank (the "Project") on February 18, 2020. Total Project cost is estimated to be $10,140,000.
Funding for construction of the Project including construction management, inspection, and all other necessary costs, will be partially provided by The New Home Company ("Developer"), the developer of the Bedford Community, also known as Arantine Hills. Under the terms of the Arantine Hills Development Agreement, the Developer is responsible to pay its fair-share contribution equal to 43.2 percent of the total cost of the Project. The City is responsible for the remaining 56.8 percent.
The City intends to use $2,486,779 of bond proceeds from Community Facilities District No. 2016-2 Terrassa ("CFD No. 2016-2") and Community Facilities District No. 2017-2 Valencia/Seville ("CFD No. 2017-2"), which have already been issued, as well as approximately $1.4 million in water capacity fees that have been collected to date for the Sierra Bella development to pay part of the City's portion for the Project.
The C...
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