65B - MATER DEI UPDATE - Laserfiche WebLink

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• MOM ilk [111111 CITY COUNCIL MEETING DATE: MAY 17, 2016 TITLE: MATER DEI APPENDIX ANALYSIS AND UPDATE (STRATEGIC PLAN NO. NOT APPLICABLE) CITY MANAGER CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2 "d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER On March 15, 2016, the City Council approved an amendment to the Mater Dei Development Agreement. Mater Dei independently submitted an Appendix to be included for consideration at that evening's scheduled Council Meeting. As insufficient notice was given, the City Manager recommended that the Appendix not be approved due to concerns over the cost of the project, the potential for an unfunded liability, legal requirements that place a burden on the City, and increased liability in other areas. The City Council subsequently directed staff to analyze the Appendix and bring it back to a City Council Meeting in 60 days. Councilmember Reyna recommended that this request be included in the context of the budget process. Mayor Pro Tern Sarmiento requested a 60 day period for staff and Mater Dei to provide accurate budget costs. During the Mater Dei public comment on March 15, 2016, Patrick Murphy, President of Mater Dei, referenced the 1999 Amendment when the City previously paid for similar types of improvements as those currently being requested in the Appendix. During the research of the 1999 Amendment, staff was able to identify $550,000 in reimbursements made by the City to Mater Dei. Staff has not been able to substantiate the source of funding for that expenditure, although it appears that Gas Tax fund was most likely used. Mater Dei has subsequently provided a revised project cost of $5 million. This is substantially higher than originally estimated by Mater Dei (e.g. $2.5 to 3 million). Mater Dei has reduced their request to a not to exceed amount of $2.5 million. At this time only General Fund dollars would be available for a private development, such as the one being proposed. Mr. Murphy did indicate that if the City Council did not approve the funding request associated with Appendix 1, the school will raise the additional funds necessary to complete the project. RECOMMENDED ACTION 1. Receive and file the Mater Dei Update; and 2. Consideration of the following options and provide direction accordingly: 65B -1