City Manager's Update: Budget, Council Nominations and Economic Development

The following comes from City Manager Steve Duran's weekly update, dated June 23. The complete city manager's update is attached.

• Final 2012-2013 budget approved:

In brief, the budget will be balanced using $1,050,000 in one time money from discretionary reserves. $800,000 is to offset anticipated extraordinary costs for legal fees due to the high number of legal issues still in progress and for unemployment insurance due to layoffs over the last year. Another $250,000 will be used to augment a partial year of the additional ½ cent sales tax to ensure there is an additional $500,000 available during the fiscal year because the tax does not go into effect until October.

With the passage of Measure O and the use of the one-time money, the Senior Center, Teen Center and Swimming Pool can be kept in service, and police services can be maintained at present levels.

• Nomination period for vacant city council seats begins July 16:

The purpose of the election is to fill three (3) expiring terms on the Hercules City Council.

Any person who is 18 years of age or older, a citizen of the United States, a resident and registered voter of the City of Hercules is eligible to be elected or appointed to a City Office. City candidates are required to file a Nomination Petition, nominating the individual for candidacy, containing 20 valid signatures of registered voters with the City Clerk. Nomination Petitions will be available from the City Clerk beginning Monday, July 16, 2012. Completed nomination documents must be submitted no later than Friday, August 10, 2012. However, should an incumbent fail to submit a nomination petition for re-election, the deadline for submittal of the nomination petition is extended an additional five calendar days, August 15, 2012.

For further information, please contact the City Clerk’s Office at (510) 799-8215.

• Delays, action and pending sale agreements for economic development projects

ITC - Bayfront Project: This project proposes to develop a 42.36 acre portion of the Hercules Waterfront District master Plan (WDMP) area with the “Hercules Bayfront Project,” a transit-oriented, mixed-use neighborhood that includes a variety of dwelling unit types with businesses, an associated system of walkable streets, pedestrian interconnections, and public plazas with bayviews. The City portion of the project includes the Intermodal Transit Center (ITC) and other public improvements, including the extension of John Muir Parkway and the construction of amajor Bay Trail segment.

The Record of Decision (ROD) was issued for the ITC the week. Last minute legal drafting issues have delayed the closing of escrow on the ITC site and other related land to be acquired by the City. Staff still hopes to have escrow close in June. CalTrans is completing its audit of the City’s project management procedures and should publish the results next week. While there are a number of issues with past practices, there is nothing thatcannot be almost immediately corrected moving forward.

William Silva and I are scheduled to be in Ontario, California on June 27 for the California Transportation Commission meeting, in which over $9 million in ITC project funding will be considered.

Sycamore North: This proposed development includes approximately 140 market rate apartments and about 10,000 square feet of retail/restaurant space. The due diligence period has been extended by about a month due to a high number of title and survey issues that will take time to address. These items should have been addressed prior to the City taking title to the property. Consultants have been retained to conduct CEQA analysis for the project. The developer, Presidio Investment Partners, is scheduled to submit entitlement applications shortly.

Parcel C: The Purchase and Sale Agreement (PSA) for Parcel C with DeNova Homes was executed this week. The price is $25,000 per unit and $16 per square foot land dedicated to retail,which puts the maximum price at $8,750,000. The proposed development will include up to 350 high-end apartments, with a condo map, and may contain some retail, subject to feasibility. This transit oriented development will provide support for the Intermodal Transit Center and the plannedretail/restaurant node on Bayfront Boulevard adjacent to the ITC.

Victoria Crescent: A Purchase and Sale Agreement (PSA) with SummerHill for the disposition of Victoria Crescent is scheduled for consideration of the City Council on Tuesday, June 26. The price is set at $2,350,000 and the proposed project will be detached residential homes. The site was marketed for all uses, including office, R&D, and retail, however, the only interest was for singlefamily and multi-family residential projects. This property, along with Parcel C, is part of the Ambac stipulation, in which the Superior Court attached the property to secure the City’s agreed payment to Ambac.

What do you think of the items included in this week's city manager's update? Share your thoughts in the comments.