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CITY COUNCIL AGENDA ITEM NO. 14

Meeting Date: September 11, 2007

Subject/Title: Adopt a Resolution making the necessary findings and determination for the financing of the Walnut Boulevard Widening Project, CIP No. 336-30560, by the Brentwood Redevelopment Agency in the amount of $970,000.

Prepared by: Gina Rozenski, Redevelopment Manager

Submitted by: Howard Sword, Community Development Director

RECOMMENDATION
Adopt a Resolution making the necessary findings and determination for financing of the Walnut Boulevard Widening Project, CIP No. 336-30560, which shall be partially funded by the Brentwood Redevelopment Agency in the amount of $970,000.

PREVIOUS ACTION
On May 23, 2006, by Resolution No. 2006-126, City Council adopted the City’s 2006/06 – 2010/11 Capital Improvement Program that included the Walnut Boulevard Widening, CIP Project No. 336-30560.

On April 10, 2007, the City awarded the bid for constructing Phase II of the Walnut Boulevard Widening Project to Top Grade Construction, Inc., in the amount of $1,794,794, plus a 10% contingency, for a total amount of $1,974,273.

On June 12, 2007, by Resolution No. 2007-126, the City Council adopted the City’s 2007/08– 2011/12 Capital Improvement Program that included the Walnut Boulevard Widening Project, CIP No. 336-30560, in the amount of $5,672,055, which amount is partially funded by the Brentwood Redevelopment Agency in the amount of $970,000. The remaining amount shall be funded by City’s Facility Fees and federal grants.

On June 26, 2007, by Resolution RDA-128, the Redevelopment Agency approved its two-year operating budget, which included a budget amount of $970,000 in 2007/08 for the Walnut Boulevard Widening Project.

BACKGROUND
This is a companion staff report to the Brentwood Redevelopment Agency’s staff report tonight requesting adoption of a resolution authorizing the Agency Treasurer to appropriate $970,000 from the Redevelopment Agency of the City of Brentwood Tax Allocation Bonds, Series 2001, to partially fund the contract with Top Grade Construction, Inc., in the amount of $1,974,273 for Walnut Boulevard Widening, CIP 336-30560.

Since the Redevelopment Agency of the City of Brentwood intends to partially fund the contract with Top Grade, Inc., for Walnut Boulevard Widening Project, CIP No. 336-30560, in an amount not to exceed $970,000, the City Council, acting as the legislative body of the Agency, and the Agency, in accordance with Health & Safety Code Section 33445, must make the necessary findings, including that there are no other reasonable means of financing the project’s $970,000 gap available to the City. This finding is based on the lack of sufficient funds in the capital improvement budget of the City to fund the Project together with other urgently needed public improvements and facilities, and the infeasibility of financing the Project through an assessment district, debt service or other conventional method of financing public facilities. Furthermore, the City was successful in its application for approximately $600,000 from the Federal Intermodal Surface Efficiency Act (ISTEA) program for the Walnut Boulevard Phase II construction and additional federal or state grants are unlikely.

FISCAL IMPACT
There are no fiscal impacts associated with the Council taking action on making the necessary findings and determination in accordance with Health & Safety Code Section 33445.

Attachment: Resolution

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD MAKING THE NECESSARY FINDINGS FOR THE FINANCING OF THE WALNUT BOULEVARD WIDENING PROJECT, CIP NO. 336-30560, BY THE REDEVELOPMENT AGENCY OF THE CITY OF BRENTWOOD IN THE AMOUNT OF $970,000

WHEREAS, on June 12, 2007, by Resolution No. 2007-126, the City Council adopted the City’s 2007/08– 2011/12 Capital Improvement Program that included the Walnut Boulevard Widening Project, CIP No. 336-30560, in the amount of $5,672,055, which amount is partially funded by the Redevelopment Agency of the City of Brentwood (“Agency”) in the amount of $970,000. The remaining amount shall be funded by City’s Facility Fees and federal grants; and

WHEREAS, on June 26, 2007, by Resolution RDA-128, the Agency approved its two-year operating budget, which included a budget amount of $970,000 in 2007/08 for the Walnut Boulevard Widening Project; and

WHEREAS, on April 10, 2007, the City awarded the bid for constructing Phase II of the Walnut Boulevard Widening Project to Top Grade Construction, Inc., in the amount of $1,794,794, plus a 10% contingency, for a total amount of $1,974,273; and

WHEREAS, since the Agency intends to partially fund the contract with Top Grade, Inc., for the Walnut Boulevard Widening Project, CIP Project No. 336-30560, in an amount not to exceed $970,000, the City Council, acting as the legislative body of the Agency, in accordance with Health & Safety Code Section 33445, must make the necessary findings for financing the project’s $970,000 gap by the Agency.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood hereby finds and determines

1. The City hereby finds and determines as follows:

a. The payment of funds for the Walnut Boulevard Widening Project will assist in the elimination of blighting conditions inside the Project Area by providing necessary public improvements.

b. The Walnut Boulevard Widening Project is consistent with the identified goals and objectives in the 2005-2009 Implementation Plan as follows:

 Revitalize the Merged Project Areas through the improvement and installation of public improvements, public safety provisions, transportation, circulation and parking facilities to reduce congestion, improve public safety and accommodate long-term growth and development patterns.

c. The Walnut Boulevard Widening Project will be a significant benefit to the Project Area. This finding is based on the fact that the project will improve traffic circulation and pedestrian safety, will upgrade and improve existing aged and deteriorated infrastructure systems, and will benefit not only the immediate Project Area but the community as a whole.

d. That there are no other reasonable means of financing the project’s $970,000 gap available to the City. This finding is based on the lack of sufficient funds in the capital improvement budget of the City to fund the Project together with other urgently needed public improvements and facilities, and the infeasibility of financing the Project through an assessment district, debt service or other conventional method of financing public facilities. Furthermore, the City was successful in its application for approximately $600,000 from the Federal Intermodal Surface Efficiency Act (ISTEA) program for the Walnut Boulevard Phase II construction and additional federal or state grants are unlikely.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 11th day of September 2007 by the following vote:
 

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