02-02-1999 - Approval of Funding for the Lease of Valencia Heights Water Company Property__u 0T ,test Lonna
0 lllemorandum
TO: City Council and City Manager AGENDA
ITEM NO. B'8e
FROM: Public Services Department DATE February 2, 1999
*PRINTED ON RECYCLED PAPER
SUBJECT: APPROVAL OF FUNDING FOR THE LEASE OF
VALENCIA HEIGHTS WATER COMPANY PROPERTY
SUMMARY: The City Council will approve $10,000 in funding to be used as payment
for the six-month lease extension on the Valencia Heights Water
Company's Citrus Street property.
BACKGROUND
In October of 1998, the City Council executed an extension of the lease for the Valencia
Heights Water Company's Citrus Street site which houses Maverick Field and the Ridge
Rider Equestrian Center. The terms of the lease call for the payment of $2,500 per month
beginning in December.of 1998. During the term of the lease extension, the City and
Valencia Heights are negotiating the potential purchase of the site by the City. If the City
purchases the site, $7,500 of the lease payments are to be applied toward the purchase
price of the site.
DISCUSSION
At the time that the City Council approved the lease extension with Valencia Heights,
staff noted that a funding source for the $10,000 in lease payments would be brought
back to the Council for approval. Staff is recommending that the Council utilize funding
from several sources to be used for the payment of the lease. These funds include:
1. $3,700 in unappropriated Capital Projects Funds.
2. $2,000 in unappropriated Park Funds.
3. $3,000 in unappropriated Construction Tax Funds.
4. $3,840 in Park Funds remaining from the Cortez Football Bleacher Improvement
project.
5. $1,418 in Construction Tax Funds remaining from the Walmerado Baseball
Improvement project.
ALTERNATIVES
The Council can appropriate $10,000 from the General Fund Reserve.
RECOMMENDATION
It is recommended that the City Council take the following actions:
1. Establish Project No. PP-99220 for the Valencia Heights Lease/Purchase
(Finance No. 3962-770).
2. Approve the transfer of $3,840 in Parks Funds (163) from Project No. PP-
99210 (Finance No. 3910) to Project No. PP-99220.
3. Appropriate $2,000 in unappropriated Park Funds (163) to Project No. PP-
99220.
4. Transfer $1,418 in Construction Tax Funds (161) from Project No. PP-96223
(Finance No. 3639) to Project No. PP-99220.
5. Appropriate $2,742 in unappropriated Construction Tax Funds (161) to
Project No. PP-99220.
ecy W. Collier
lic Services Director
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