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REDEVELOPMENT AGENCY AGENDA ITEM NO. 33


Meeting Date: July 22 2008

Subject/Title: Adopt a Resolution making findings and determinations in accordance with Health and Safety Code Section 33445 for the financing of the Downtown Infrastructure Project, CIP No. 562-56382, in an amount not to exceed $1,739,070.

Prepared by: Donald Kwong, Senior Redevelopment Analyst

Submitted by: Casey McCann, Community Development Director


RECOMMENDATION
Adopt a Resolution making findings and determinations in accordance with Health and Safety Code Section 33445 for the financing of the Downtown Infrastructure Project, CIP No. 562-56382, in an amount not to exceed $1,739,070 for 2008/09 Project costs.

PREVIOUS ACTION
On May 24, 2005, by Resolution No. RDA-99, the Redevelopment Agency appropriated funds for Downtown Infrastructure (sewer collection upgrade) for a total amount of $177,600.

On March 11, 2008, by Resolution No. RDA-138, the Redevelopment Agency appropriated funds for Downtown Infrastructure for a total amount of $256,210.

On May 27, 2008, by Resolution No. 2008-137, the City Council adopted the City’s 2008/09– 2012/13 Capital Improvement Program that included the Downtown Infrastructure Project, CIP No. 562-56382, in the amount of $4,953,600, which amount is partially funded by the Brentwood Redevelopment Agency in the amount of $3,887,410. The remaining amount shall be funded by City Enterprise funds.

On June 10, 2008, by Resolution 2008-140, the City Council approved the construction contract for the Downtown Infrastructure, CIP Project No. 562-56382, with Delta Excavating for a total amount of $869,077.

On June 24, 2008, by Resolution No. RDA-142, the Redevelopment Agency approved its two-year operating budget, which included a budget amount of $1,739,070 in 2008/09, a partial funding of the Agency’s expected contribution of $3,887,410 for the Downtown Infrastructure Project.

BACKGROUND
The Downtown Infrastructure CIP will provide for the installation of new water and sewer facilities, rehabilitation of existing facilities or the removal and replacement of existing infrastructure to support redevelopment of the Downtown and correct aged, deteriorating facilities.

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 upgrade and improve existing aged and deteriorated infrastructure systems. The Downtown Infrastructure 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 planning and 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.

FISCAL IMPACT
The payment of $1,739,070 towards the Downtown Infrastructure, CIP 562-56382, shall be funded by the Redevelopment Agency’s Tax Allocation Bonds, Series 2001 and the Agency cash reserves. These funds are included in the 2008/09 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 MAKING FINDINGS AND DETERMINATIONS IN ACCORDANCE WITH HEALTH AND SAFETY CODE SECTION 33445 FOR THE FNANCING OF DOWNTOWN INFRASTRUCTURE, CIP NO. 562-56382, IN THE AMOUNT OF $1,739,070


WHEREAS, on May 24, 2005, by Resolution RDA-99, the Agency appropriated funds for Downtown Infrastructure (sewer collection upgrade) for a total amount of $177,600; and

WHEREAS, on March 11, 2008, by Resolution RDA-138, the Agency appropriated funds for Downtown Infrastructure (sewer collection upgrade) for a total amount of $256,210; and

WHEREAS, on May 27, 2008, by Resolution No. 2008-137, the City Council adopted the City’s 2008/09 – 2012/13 Capital Improvement Program that included the Downtown Infrastructure Project, CIP No. 562-56382, in the amount of $4,953,600, which amount is partially funded by the Brentwood Redevelopment Agency in the amount of $3,887,410. The remaining amount shall be funded by City Enterprise funds; and

WHEREAS, on June 10, 2008, by Resolution 2008-140, the City Council approved the construction contract for the Downtown Infrastructure, CIP Project No. 562-56382, with Delta Excavating for a total amount of $869,077; and

WHEREAS, on June 24, 2008, by Resolution No. RDA-142, the Redevelopment Agency approved its two-year operating budget, which included a budget amount of $1,739,070 in 2008/09, a partial funding of the Agency’s expected contribution of $3,887,410 for the Downtown Infrastructure Project; and

WHEREAS, the Downtown Infrastructure Project, located within the Merged Redevelopment Project Areas, will provide for the installation of new water and sewer facilities, rehabilitation of existing facilities or the removal and replacement of existing infrastructure to support redevelopment of the Downtown and correct aged, deteriorating facilities.

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 Downtown Infrastructure Project will assist in the elimination of blighting conditions inside the Project Area by providing necessary public improvements.

b. The Downtown Infrastructure 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 Downtown Infrastructure Project will be a significant benefit to the Project Area. This finding is based on the fact that the project 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. There are no other reasonable means of financing the Project’s 2008/09 $1,739,070 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.

PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of the City of Brentwood at a regular meeting held on the 22nd day of July 2008 by the following vote:





 
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