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REDEVELOPMENT AGENCY AGENDA ITEM NO. 17

Meeting Date: September 11, 2007

Subject/Title: Adopt a Resolution authorizing the Agency Treasurer to appropriate funds from the Redevelopment Agency of the City of Brentwood Tax Allocation Bonds, Series 2001, to partially fund the contract with Top Grade Construction for Phase II of the Walnut Boulevard Widening Project, CIP No. 336-30560, in an amount not to exceed $970,000

Prepared by: Gina Rozenski, Redevelopment Manager

Submitted by: Howard Sword, Deputy Director

RECOMMENDATION
Adopt a Resolution authorizing the Agency Treasurer to appropriate funds from the Redevelopment Agency of the City of Brentwood Tax Allocation Bonds, Series 2001, to partially fund the contract with Top Grade Construction for Phase II of the Walnut Boulevard Widening Project, CIP No. 336-30560, in an amount not to exceed $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
Walnut Boulevard widening, from Balfour Road to Oak Street, consists of two phases of work. Phase I consisted of installation of utilities such as storm drain, water, street lighting and underground power, phone and cable. Phase I is completed, and Phase II has begun. Phase II consists of widening the roadway to two lanes in each direction and installation of a median island and landscaping. On May 23, 2006, the City Council awarded the Phase II construction to Top Grade Construction, Inc., in the amount of $1,974,273, which includes a 10% contingency.

The Brentwood Redevelopment Agency has reserved funding for this project for the last few years. The payment of Redevelopment Agency funds towards this project will assist in the elimination of blighting conditions inside the Merged Redevelopment Project Areas by providing necessary public improvements that, in turn, will improve traffic circulation and pedestrian safety. Improving Walnut Boulevard will improve the vehicular commute to Vasco Road as well as provide a gateway entrance to the historic Downtown district. The Walnut Boulevard widening project is consistent with the identified goals and objectives in the Agency’s 2005-2009 Implementation Plan and will benefit not only the Project Area but the community as a whole.

Community Redevelopment Law Section 33445 states that a redevelopment agency may, with the consent of the legislative body, pay all or part of the cost for the construction of infrastructure improvements upon making findings and determinations including a finding that no other reasonable means of financing the improvements are available to the City. Such findings and determination are included in the Agency’s resolution for this item, as well as a reciprocal staff report and resolution for the City Council on tonight’s agenda.

Staff requests the Redevelopment Agency adopt 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. for Walnut Boulevard Widening, CIP 336-30560.


FISCAL IMPACT
The partial payment of $970,000 towards the Walnut Boulevard Widening, CIP 336-30560, shall be funded by the Redevelopment Agency’s Tax Allocation Bonds, Series 2001. These funds are included in the 2007/08 Redevelopment Operating Budget as well as budgeted on the CIP project sheet.


Attachment:
Resolution

RESOLUTION NO. RDA-

A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BRENTWOOD AUTHORIZING THE AGENCY TREASURER TO APPROPRIATE FUNDS FROM THE REDEVELOPMENT AGENCY OF THE CITY OF BRENTWOOD TAX ALLOCATION BONDS, SERIES 2001, TO PARTIALLY FUND THE CONTRACT WITH TOP GRADE CONSTRUCTION, INC., FOR WALNUT BOULEVARD WIDENING, CIP 336-30560, IN THE AMOUNT OF $970,000

WHEREAS, on April 11, 2006, the Redevelopment Agency of the City of Brentwood (“Agency”) approved its annual project priorities to be funded by its 2001 Tax Allocation Bond Proceeds (“Bonds”) with deliberate coordination with the City’s Capital Improvement Program. The Agency’s approved priorities included the Walnut Boulevard Widening; and

WHEREAS, on May 23, 2006, by Resolution No. 2006-126, City Council adopted the City’s 2006/07 – 2010/11 Capital Improvement Program (CIP), which included 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, 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; and

WHEREAS, 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; and

WHEREAS, the Walnut Boulevard Widening Project, located within the Merged Redevelopment Project Areas, will construct storm drain, curb and gutter, sidewalk, median island and landscaping, pavement widening, street lighting, and underground power, cable and phone. This project will improve traffic circulation and pedestrian safety, and improve the vehicular commute to Vasco Road as well as provide a gateway entrance to the historic Downtown district.

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

1. The Agency 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.

2. 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.

3. The Agency does hereby authorize the Agency Treasurer to appropriate funds from the Redevelopment Agency of the City of Brentwood Tax Allocation Bonds, Series 2001, to partially fund the Walnut Boulevard Widening Project, CIP 336-30560, in the Merged Redevelopment Project Areas in the amount of $970,000.

PASSED, APPROVED AND ADOPTED by the Redevelopment Agency 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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