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REDEVELOPMENT AGENCY AGENDA ITEM NO. 4

Meeting Date: August 10, 2004

Subject/Title: Approve Resolution authorizing the Redevelopment Agency to fund the construction contract for the O’Hara Loop Realignment, CIP Project No. 336-3145, and authorizing the Agency Treasurer to use funds from the Redevelopment Agency of the City of Brentwood Tax Allocation Bonds, Series 2001, to fund this CIP Project in an amount not to exceed $1,000,000

Prepared by: Gina Rozenski, Redevelopment Manager

Submitted by: Howard Sword, Director of Economic Development

RECOMMENDATION
Approve Resolution authorizing the Redevelopment Agency to fund the construction contract for the O’Hara Loop Realignment, CIP Project No. 336-3145, and authorizing the Agency Treasurer to use funds from the Redevelopment Agency of the City of Brentwood Tax Allocation Bonds, Series 2001, to fund this CIP Project in an amount not to exceed $1,000,000.

PREVIOUS ACTION
On February 11, 2003, the Redevelopment Agency adopted project priorities to be funded by the Agency’s 2001 Tax Allocation Bond (“TAB”) Proceeds. The adopted priorities included the extension of O’Hara Avenue to Second Street at Central Boulevard as one of the Downtown re-investment projects, with a reserved amount of $1,000,000. This $1M funding commitment was reconfirmed by the Agency at its April 27, 2004, priority setting session.

On June 10, 2003, by Resolution No. RA-69, the Redevelopment Agency adopted its 2003-05 Budget, which included $1,000,000 for the O’Hara Loop Realignment project.

On September 23, 2003, the Redevelopment Agency approved a resolution to fund professional services agreement with Northstar Engineering Group, Inc., for the design of O’Hara Loop Realignment and authorized the Agency Treasurer to use funds from the Redevelopment Agency of the City of Brentwood Tax Allocation Bonds, Series 2001, to fund this agreement.

On May 25, 2004, the City Council approved Resolution No. 2004-113, approving the 2004/05 – 2008/09 Capital Improvement Program (CIP) for the City of Brentwood, which included the completion of the O’Hara Loop Realignment, CIP Project No. 336-3145, in the amount of $1,516,780.

BACKGROUND
The O’Hara Loop Realignment Project will comply with Redevelopment Agency goals and objectives by providing superior access from north and west portions of the City to the Downtown area, improving transportation infrastructure and vehicular circulation patterns, and promoting business retention and attraction in the Downtown area. The realignment of O’Hara Avenue and extension of Second Street from Central Boulevard is critical to improve traffic circulation into the Downtown area.

At tonight’s City Council meeting, staff is recommending Council approval for the O’Hara Loop Realignment construction contract to Bay Cities Paving & Grading in the amount of $1,524,296.32, plus 10% change orders, for a total contract amount of $1,676,725.95. This Agency staff report is the corresponding request to approve the partial funding for this CIP Project in an amount not to exceed $1,000,000 from Redevelopment Agency ‘s Tax Allocation Bond, Series 2001, proceeds.

FISCAL IMPACT
The 2004/09 Capital Improvement Program estimated the total cost for the O’Hara Loop Realignment Project at $1,516,780. Due to the higher than anticipated construction contact, the CIP budget must be amended to reflect a new budget of $1,918,895 The Redevelopment Agency’s Tax Allocation Bond (“TAB”) shall fund a portion of this project in the amount of $1,000,000. This amount is included in the Agency’s 2003-2005 budget. Costs exceeding $1,000,000 shall be funded through roadway facility fees.

Attachments: Resolution

RESOLUTION NO. RA-

A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BRENTWOOD AUTHORIZING THE FUNDING OF THE CONSTRUCTION CONTRACT FOR THE O’HARA LOOP REALIGNMENT, CIP PROJECT NO. 336-3145, AND AUTHORIZING THE AGENCY TREASURER TO USE A PORTION OF THE AGENCY’S 2001 TAX ALLOCATION BOND PROCEEDS TO FUND THIS CIP PROJECT IN AN AMOUNT NOT TO EXCEED ONE MILLION DOLLARS ($1,000,000)

WHEREAS, on April 27, 2004, the Redevelopment Agency of the City of Brentwood (“Agency”) adopted project priorities to be funded by the Agency’s 2001 Tax Allocation Bond Proceeds, which included the reconfirmation of a $1,000,000 funding commitment to the O’Hara Loop Realignment Project; and

WHEREAS, on May 25, 2004, the City Council of the City of Brentwood (“City”) approved and adopted the 2004/09 Capital Improvement Program for the City, of which the O’Hara Loop Realignment Project, CIP No. 336-3145, is a part; and

WHEREAS, on June 10, 2003, by Resolution No. RA-69, the Agency adopted its 2003-05 Budget, which included $1,000,000 for the O’Hara Loop Realignment Project (O’Hara Project”); and

WHEREAS, the O’Hara Loop Realignment Project will provide superior access from north and west portions of the City to the Downtown area, will improve transportation infrastructure and vehicular circulation patterns throughout the Merged Redevelopment Project Areas, and will promote business retention and attraction in the Downtown area, it is now timely for staff to proceed with the O’Hara Project design; and

WHEREAS, the O’Hara Loop Realignment Project is consistent with the Brentwood Redevelopment Plan and the Agency’s Five-Year Implementation Plan; and

WHEREAS, the City Council of the City of Brentwood awarded the construction contract for the O’Hara Loop Realignment Project to Bay Cities Paving & Grading in an amount not to exceed $1,676,725.95; and

WHEREAS, the Agency desires to memorialize its expenditure approvals for redevelopment programs and activities that will facilitate commercial, retail and industrial development programs, public improvements and facilities programs.

NOW, THEREFORE BE IT RESOLVED by the Redevelopment Agency of the City of Brentwood as follows:

1. The Agency hereby finds and determines:

a. The O’Hara Project will be of benefit to the Redevelopment Project Area. This finding is based on the fact that the O’Hara Project will be located within the Merged Redevelopment Project Area, will provide alternate transportation patterns that will improve circulation and reduce congestion, will provide access from north and west portions of the City to the Downtown area, and will promote the retention and attraction of businesses in the Downtown area.

b. There is no other reasonable means of financing the O’Hara Project. This finding is based on the lack of sufficient funds in the capital improvement budget of the City to fund the O’Hara Project together with other urgently needed public improvements and facilities and the infeasibility of financing the O’Hara Project through an assessment district, community facilities district or other conventional method of financing public facilities.

c. The payment of funds for the O’Hara Project will assist in the elimination of one or more blighting conditions inside the Project Area, will improve roadway facilities inside the Project Area, will improve vehicular circulation patterns and reduce congestion, and is consistent with the Implementation Plan. This finding is based on the following facts:

i. The Implementation Plan identifies as objectives for the five-year period from Fiscal Year 1999/00 through 2003/04 the following:

Improve transportation and parking facilities; enhance circulation within the Project Areas to reduce congestion and accommodate long-term growth and development patterns.

Encourage commercial development within the Project Areas by providing required public infrastructure.

BE IT FURTHER RESOLVED that the Agency authorizes the funding of the construction contract for the O’Hara Loop Realignment, CIP Project No. 336-3145, and authorizes the Agency Treasurer to use a portion of the Agency’s 2001 Tax Allocation Bond Proceeds to fund this CIP Project in an amount not to exceed $1,000,000.

PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of the City of Brentwood at a regular meeting held on the 10th day of August 2004 by the following vote:

AYES:
NOES:
ABSENT:
_____________________________
Brian Swisher
Agency Chairman

ATTEST:

__________________________________
Karen Diaz, CMC
Agency Secretary
 

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