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M-10/23/1984 (3) . . . '" / RESOLUTION NUMBER ~ CRAS) A RESOLUTION OF THE SANTA MONICA REDEVELOPMENT AGENCY DETERMINING CERTAIN PUBLIC FACILITIES AND IMPROVEMENTS TO BE OF BENEFIT TO THE OCEAN PARK REDEVELOPMENT PROJECT AREA AND DETERMINING THAT NO OTHER REASONABLE MEANS OF FINANCING SAID PUBLIC IMPROVEMENTS IS AVAILABLE TO THE CITY OF SANTA MONICAj AUTHORIZING THE PAYMENT BY THE AGENCY TO THE CITY OF SANTA MONICA OF THE COST OF CONSTRUCTION AND INSTALLATION OF SUCH PUBLIC IMPROVEMENTS; AND APPROVING AND AUTHORIZING THE EXECUTION OF A COOPERATION AND REIMBURSEMENT AGREEMENT BETWEEN THE CITY AND THE AGENCY WHEREAS, the Agency desires to enter Into a Cooperation and ReImbursement Agreement (attached hereto as ExhIbit "A") wIth the City of Santa Monica regarding payment to the City for the value and cost of certain public improvements of benefit to the Ocean Park Redevelopment Project Areaj and WHEREAS, CalifornIa Health and Safety Code Section 33445 requIres the Agency to determIne that saId publIc improvements are of benefit to the Redevelopment Project Area prior to making said payments and that no other reasonable means of financing said public improvements IS available to the City; and WHEREAS, Health and Safety Code Section 33679 requIres that prior to the commItment by the Agency to use tax increment funds for those publIC improvements consistIng of installation or constructIon of publicly owned bUIldings, the City Council hold a pUblIC hearIng to consider the making of such payments by the Agency, the benefIt of such improvements 1 ,... . . . to the Redevelopment Project Area, and the availabilIty to the City of alternatIve means of financing such Improvements; WHEREAS, on October 23, 1984, the CIty CouncIl and the Agency held a duly notIced public hearing on the proposed payments by the Agency; WHEREAS, the issue of benefit to the Project Area, and the alternative means of financing the improvements have been considered In the Report entitled "Summary Report PertaInIng to the Proposed Payment by the Santa MonIca Redevelopment Agency for the Cost of Public Improvements to the Ocean Park Branch Library," attached hereto as Exhibit "B;" and WHEREAS, the value and cost of said publIC Improvements has been, or WIll be, paId for initially by the City, NOW, THEREFORE, THE SANTA MONICA REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. It is hereby determined for the reasons set forth In Part IlIA of Exhibit "B," that the public facilIties and improvements constructed and installed by the City of Santa Monica pursuant to saId CooperatIon and ReImbursement Agreement between the City and Agency, are of benefIt to the Ocean Park Redevelopment Project Area. SECTION 2. The Agency hereby determines for the reasons set forth in Part IIIB of Exhibit "B" that no other reasonable means of financing said publIC improvements is available to the City. SECTION 3. The Agency hereby authorizes and approves payment of $512,385.00, by it to the CIty of Santa MonIca as 2 . . . relmbursement to the Clty for the value and cost of the installation construction of the improvements, as set Cooperatlon and Relmbursement and forth 1n the above-referenced Agreement (Exhibit "A"). SECTION 4. The Cooperation and Reimbursement Agreement is hereby approved; and the Executive D1rector is hereby authorized to execute sald Agreement on behalf of the Agency. SECTION 5. The Agency Secretary shall certIfy to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: .... ~ .... """ ""' By: iI! Agency Counsel 3 . . . Adopted and approved thiS 23rd day of October 1984. G~~ \~ : c:---- - J r;~~ L-_- C; . CFral~rson ../ I hereby certify that the foregoing Resolution No. 395(RAS) was duly adopted by the Redevelopment Agency of the Clty of Santa Monlca at a meeting thereof held on October 23, 1984 by the following Agency vote: Ayes: Agency Members: Conn, Epsteln, Jennings, Press, Reed, Zane and Mayor Edwards Noes: Agency Members: None Abstain: Agency Members: None Absent: Agency Members: None ATTEST: 12.. s?i~ . . . COOPERATION AND REIMBURSEMENT AGREEMENT FOR THE CONSTRUCTION OF PUBLIC IMPROVEMENTS TO THE OCEAN PARK BRANCH LIBRARY BY THE SANTA MONICA REDEVELOPMENT AGENCY FOR THE BENEFIT OF OCEAN PARK REDEVELOPMENT PROJECTS l(A) AND l(Bl BY AND BETWEEN CITY OF SANTA MONICA AND SANTA MONICA REDEVELOPMENT AGENCY THIS AGREEMENT, entered into thlS ____ day of 1984, by and between SANTA MONICA REDEVELOPMENT AGENCY, a publlC body corporate and politic (the "Agency"), and the CITY OF SANTA MONICA, a municipal corporation (the "City"), wIth reference to the following: B E ~ .I. .T. a ~ ~: A. The undertaklng certaln actlvitles Agency is necessary for the execution of Ocean Park Redevelopment Project l(a) and l(b) under the provislons of the California Community Redevelopment Law and pursuant to Redevelopment Plans l(a) and l(b) for ProJect. Redevelopment Plan l(a) was adopted on June 30, 1960 and the Redevelopment Plan for Project l(b), adopted on January 24, 1961, by the Clty Council of the City of Sdnta Monica. ProJects l(a) and l(b) are referred to herein collectlvely as the "Project." ATTACHtillNT TO Resolutlon No. 395 (RAS) and Resolutlon No. 6929(CCS) 1 -..._~ --- ~ . . . B. The Agency desl~es to contract with the CIty to construct and install certa1n publ1c improvements and faclllties described herein In connection with the Project. C. The Agency and the City Council have determined that said public improvements and facil1tles descrlbed 1n this Agreement are of benefit to the Project and to the immediate neighborhood in which the Project is located, and that no other reasonable means of finanCing saId Improvements IS available to the City. D. The City has paId or improvements on condition that the for its costs. will pay for said publlC Agency reimburse the City NOW, THEREFORE, the parties hereto do mutually agree as follows: 1. SCOPE OF SERVICES. The City shall cause to be designed, constructed and installed the following public facilities and improvements In a satisfactory and proper manner pursuant to plans and specifications to be prepared by the City and submitted to the Agency for its approval: A schedule of the public improvements is set forth In Exhlblt A, "Improvements to Ocean Park Branch Library," attached hereto and incorporated herein by thiS reference. 2. TIME OF PERFORMANCE. The services reqUired pursuant to Section commence not later than August 1, 1984, and 2 1 shall shall be I . . . dillgently performed by the Clty. ProJected completlon date for all described improvements 1S April 15, 1985. 3. COMPENSATION. A. Compensatlon. The Agency shall pay the Clty for the actual as-bullt costs lncurred by the Clty for the publlC lmprovement work set forth ln Section 1 and Exhlblt A hereto. The Clty'S preparation of plans and speclfications and performance of all Clty supervlsory and engineerlng work shall be relmbursed by the Agency at the City's actual costs lncluding payroll costs, materlal, travel, and other related expenses. B. Maximum Compensatlon. The total compensation for all work performed pursuant to Section 1 and Exhibit A hereto, shall not exceed the sum of Five Hundred Twelve Thousand, Three Hundred Eighty Five Dollars ($512,385.00), wlthout further Agency approval. C. Method of Payment. The Agency shall at ltS discretlon and consistent with the proper implementatlon of Redevelopment Plans l(a) and l(b), pay the City from any funds which may then be legally available to Agency therefor, lncluding tax increment payments and proceeds from the sale of bonds. D. Subordlnatlon of Citv Indebtedness. The lndebtedness of the Agency to the City created by thlS Agreement is subordlnate to any pledge of tax increments to the bondholders of any tax lncrement bonds WhlCh are or may be lssued by the Agency. 3 . . . 4. LIABILITY AND INDEMNIFICATION. In contemplatlon of the provlslons of Sectlon 895.2 of the Government Code of the State of California Imposing certain tort llablllty JOintly upon public entities solely by reason of such entitles being parties to an agreement as defined by Section 895 of said Code, the partles hereto, as between themselves, pursuant to the authorizatlon contained In Section 895.4 and 895.6 of said Code, will each assume the full liability imposed upon It, or any of its officers, agents or employees by law for injury caused by negligent or wrongful act or omission occurring in the performance of this Agreement to the same extent that such liability would be imposed In the absence of Section 895.2 of said Code. To achieve the above-stated purpose, each party indemnifies and holds harmless the other party for any loss, costs or expense that may be imposed upon such other party solely by virtue of said Section 895.2. The provisions of Section 2778 of the California Civil Code are made a part hereof as If fully set forth herein. 4 . . . . IN WITNESS WHEREOF, the parties have executed the Agreement as of the date flrst set out herein. ATTEST: City Clerk APPROVED AS TO FORM: ROBERT M. MYERS Clty Attorney ATTEST: Agency Secretary APPROVED: Agency Counsel By CITY OF SANTA MONICA, a munlcipal corporatlon By Mayor SANTA MONICA REDEVELOPMENT AGENCY By Executive DIrector 5 -..--- ....--- P"t ; - -....- -.....- ....... .. i-~ .. . 2. 3. 4. 5. 6. 7. 8. 9. 10. . 11. 12. 13. 14. --. E~:3IT A. OCEAN" PARK BRAl:CH LI BRARY I HPRO\'Et-!E~:TS 1. Add1tion for Lobby, Restroorns, Children's Library, Elevator, and Basement Exhibit Space Structural Upgrade for Seismic Safety ~~ylights and Roof Mod~f1cation Double-glaze windows Ligh t 1ng Replace Ceil1ng Replace Flooring Replace Wlrl.ng Repair anc Replace Plumblng ReV1S1ons to HVAC Palnting New Partltions ana Counters New Shelvlng Additions to ~eeting Room MISCELLANEOUS 1. Parking 2. Moving Books and Furnlture 3. Kew Furnlsnlngs 4. Temporary Relocat~on EXE:~:T .{ . . . " ., ATTACHMENT TO Resolutlon No. 395(RAS) and Resolut1on No. 6929(CCS) SU~"':"?~" E" rT"o..- 'r ,_'" ... ... -... OCEAN P~R~ REDEVELOPMENT P?0:ECT SANT~ ~ON!G~, C~LI=Cp~r~ FE?~?~ PE?T~:N!~G TO TU~ P~O?~=E~ s~~~~ ~~N:~~ ;EDEVELOP~EN7 n~E~CY 0.- -.,.v~-..r""" r-"',.It.~; =r""\'Q 1"!":.J~ __ ......... .L _ co~~ CF P?)?CS!r ?U3~IC !U?F~VE~~N~~ TO T~E OCEAN pnRY ER~NCH LI3P~?Y S~NTA MON:CA REDEVELO?~ENT AGENCY Cc:c~er 9, 1984 Exhibit B . 1. II. 111. IV T~E~E OF CONTE~~S Introductlcn E~tlmated Tax Increment Funes Proposed to be Used to Pay Costs of Ocean Park Branch Llbrary Improvemer~s - Facts Supportlng Flndlngs A_ The Ocean Park Branch Llbrary Improvements are of BenefIt to the ProJect Area E FlnanC1~? Alternatlves. No Other Reasonable Means of Flnancln~ the Ocean Park Branch Llbra~y IM?-oveme~ts 1S AvaIlable to the Com~unlty The Redevelc?~e~t P~r?ose for Wh1Ch Tax Incre~e~t Funds are beIng Used to Pay for t~e Ocear Park Branch Llbrary Improvements . Exh~blt A -, b .::.Xi.l It CoO?eratlon and FeImbursement Agree~ert Between the CIty of Santa MO~lca and the Santa Mon1ca Pedevelop~ent ~ge~cy B - Slte Map Excerpt of C:ty Staff Report Dated June 26, 1984 (Contalnlng Construct1on Cost EstlmateS for the Ocean Park Branch LIbrary Imprcve-me:ltsl ExhIb1t C . Pace 1 2 2 2 3 4 . . . I. INTRODCC~IO~. The Santa Monica Redevelop!Tlent Agency ("Agency") }las prepared th1S s~~~ary report pursuant to Section 33445 of ~he California Cor.nun~ty RedevelopMent Law (Healt~ and Safety Code Sections 33000 et sea.). - . L- Attached to this SUMmary report as Exhibit "A," and . incorporated herein by reference, is a proposed Cooperat1on anc Reimbursement Agreement ("Agreement") between the Agency and the Cl.ty of Santa Hon1Ca ("C1ty") for the developmer.~ or certain public facilities and iMprovements for the benefit of the Ocean Park Redevelopment Project. Pursuant to the Agree~ent, the Agency will des1gn, construct and install the following public J.r.',provenents for the benefit of the commun1ty as a whole and O~ean Park Redevelopment Project Areas 1 (a) and 1 (b) (hereinafter col1ect1ve1y "Project Area") 1n part~cular: A. Structural rehabilitat10n and reinforc~ent of the Ocean Park Branch Library bUJ..ldl.ng to comply wit"h se1S:':"1C safety standards. B. Expans10n of sq~are feet at grounc 1lbrary in order to: by approximately 1,000 rear of the eX1stlng the L1brary level at the (1) Increase the ch1ldrens' library area; (2) Enlarge adul~ stuuy areas; (3) Add a lobby and new entrance. C. Upgrad1r.g base:"1en t., including k1tchen fac~lity. of the Ccm~unity Room new entrances, exits, in the Library's r e strooI:'ls and a D. Addition of access and facilitJ..es for the disabled at all levels (includes elevator and restrooms). E. Construct1on of a new main entrance on NOr7'an Place. (The eX1.st1.ng entrance on t-~ain Street w1ll become an e!"'ergency e X1 t. ) . , F. Upgrading of f11m fac~lities. G. Stru' ural i~provernents for no~se control. H. Adc1.t1.on of an air-conc1t1oning systa~. ~he location of the proposec public improvements 1S shown on the 51 te r-1ap, Exh1bi t "B." 1 . It IS proposed that the constructIng the publ~c facllltles lncrement funds recelved by the Redevelopme~t ProJect pursuant Commu~lty Redevelopment Law. Agency pay fo~ the cost of and Imorove~e~ts out of ~ax Agency' from the Ocea~ Park to Sec~lon 33670 of the Attached hereto as Exhlblt ~C," and 1ncorporated hereln by reference, 15 the relevant portlon of the Clty Staff Report of June 26, 1984 settlng forth the speclflc details (includ:ng constructlon cost estlmates) of the Ocean Park Branch Library proposed publlC Improvements to be des1gned, constructed and installed uSing tax lncrement funds. ThlS report outllnes: (1) the est1mated tax lncrement funds proposed to be used to pay for the costs of constructl~g the publlc 1mprove~ents} (2) the determlnatlon that the publlC Improvements are of benef1t to the Ocean Fark Redevelopment ProJect area, (3) the determlnatlon that no other reasonable means of flnanclng the publlC 1mprov~~e~ts 1S avallable to the commun1ty, and (4) a general descrIptlon 0: the redevelopment purFose for WhlCh the taxes are belng used to ?ay for the constructlon of the publlC improvements. !: E5~:M~~E~ T~X !NCRE~E~T FUNDS CCKSTRUCTION OF PUBLIC F~CIL!TIES AND BE USED FOR P~YME~~ IMPROVE~EN'!'S. ,-.~ . Constructlon Cost Estlmates conce~nlng Eranc~ Library Im?rOVemerts descrlbed 1n tr.1S ar,= set forth 1n Exhlblt "c" hereof. the Ocean Par-k SU"T.mary re;.'":\r-1: Irr FAC7S S~?PCRT:NG F:NrIN~S A T~E PU=~!C IMP?OVEMSNTS AP~ OF 5E~~?:T TO 7~~ OCE~~ r.f?K RETEVSLC?t-'E:JT ?POJECT ,IIREA Tre proposed publlC lmprovements referred to In Sectlo~ II above w1Il beneflt the Ocean Park Redevelopme~t ProJect area 1n the followlng ways: (l) ElImlnate a substantlal safety hazard for llbrary users and ProJect Area resldents by provld1ng structural re~abllltatlon and relnforcement of sald publlC llbra~y bUIlding, nOlse controls and alr condltlonlng, so as tc provlde a safe and healthy environment for use of sucn pUD1IC bUIld:ng and lts faCllltles. (2) Provlde dlsa~lec persons ne1sr:.borl)ood access to In the such llbrary ProJect Area faCllltles to and 1m"(\eGla~e . (3) ~xpand learnlng ane educatlonal jpportunltles ~or- chlldren In the ProJect Area and Immed1ate nelghborhood due t~ the Increased Slze and programs of the new chlldren's llbrary 2 . . . ., (4) Provide a more attractive and functional commun1ty meeting area for use by residents of the Project Area and immediate neighborhood. (5) Preservation and protection of a publ1c bU1ld1ng . which has been designated as a City landmark, and which adds to the overall community history. It should be noted that although the Ocean Park Branch Library is not within the designated boundar1es of the Ocean Park Redevelopment Project Area, it is in extreJ1'lely close prox1mity to the ProJect Area. The proximity of said public library to the Project Area is an attract10n and of benefit to res1dents of the ProJect Area, particularly since 1t is the only facility of its kind which is in the immediate neighborhood of the Project Area and easily access1ble for Project Area res1dents. ~ The improvements to the public l1brary will provide for 1mproved educat10nal opportunities and community programs for ProJect Area residents as well as persons residing, v1sit1ng or working 1n the immed~ate neighborhood in which the Project 1S located. B. NO OTHER REASONABLE HEANS OF FINANCING THE PUBLIC FACILITIES AND IMPROVEMENTS IS AVAILABLE TO THE COMMUNITY. In Californ1a, municipal or tax-exempt financing has traditIonally taken one of two basic forms: general obligation bonds or revenue bonds. General obligatIon bonds pledge ad valorem property taxes without limIt as to rate or amount; hence, they were highly regarded by investors and commanded the lowest borrowing rate because of their minimal credit risk. However, ArtIcle XIIIA of the CalifornIa constitution, adopted in 1978, prohibits issuance of such general oblIgation bonds. Revenue bonds are payable from a speclflC revenue source other than property taxes. These bonds have been used extensIvely for finanCIng water, sewer, or other utility systems, toll bridges and airports, where revenues of the enterprises are reasonably well assured. Issuance of conventional revenue bonds generally requires ~ simply majorlty vote. However, the proposed improvements will not generate any revenue, so such financing 1S not feasible. of the the from The City's general revenues are another possible source revenue for the proposed 1mprovements. However, followlng passage of Proposition 13, severe strains were placed on Clty'S revenues because of the curtallment or withholding citIes by the State of CalifornIa of revenues 3 . . . ~raditionally subvented to local government. While some of these sources have been returned to cit1es in the State's FY 1984-85 budget, there is no certa1nty that the reduction of the subvention stream might not reoccur. The fact of historically d1minished revenue, uncertainty of future revenues, and the need to prOVide a suitable level of service, dictates that if the City advances any of its general operating reserve for the proposed improvements, a means of recovering the cost be available from the Agency from tax increment revenues. . Tax increment revenues or tax allocation bonds proceeds are the only vlable metho~ of flnancing the proposed improvements. Tax allocation bonds are payable from and secured solely by tax revenues to be derived from the ProJect Area and the use of such revenues is appropriate Since the Project Area will be benefitted. Tax increment revenues are allocated annually to the Agency to the extent of Agency indebtedness, and are paid from the portion of taxes in excess of the assessed valuation of that property 1n the base ,ear of the Project. IV. THE REDEVELOPMENT PURPOSE FOR WHICH TAX INCRE~En~ FUNDS ARE BEING USED TO PAY FOR THE PUBLIC IMPROVEMENTS. 7he Redevelopment Plans l{a) and l(b) for the Ocean Park Redevelopment Project contempl a te that a number of pub 1 i c improvements will be provided to turn the Project Area from stagnant and underutilized land to prOductive use and an asset to the City. Among the public improvements and ut~lities to be provided in connection w1th the redevelopment of the Site as provided for in the Redevelopment Plans are traffic s~gnals, landscaping, and s1milar site preparat~on necessities. S1nce the Redevelopment Plan for Project l{a) was adopted in 1960 and the Redevelopment Plan for Project 1 (b) was adopted in 1961, the Agency has been in the process of redeveloping the vicinity of the Site by planning and developing necessary public improvements (such as streets and related facilities) and utilit1es to remove the condltion of l.nadequate facilities which was impeding the development of the area. The Agency now proposes to continue that redevelopment effort by mak1.ng the publ1.c library a posi tive asset to the ProJect Area. The library will be structurally rehabilitated~ remodeled and expanded. The proposed improvements will encourage better use of the library facilities by Project Area res1.dents and persons resldlng, visitlng or ~ployed.1n the immediate neighborhood 1n which the ProJect is located. The Agency seeks to further the purposes of redevelopment by making the area more attract1ve to v1sitors and residents, thus eXpanQ1ng employment opportunities for jobless and underemployed persons and proviclng an environment for social, eCOnOIl'lC and psychological growth and well-being. 4 . I~ 1S ant1clpated tha~ the Improved llbra~y faClllt:es wlll attrac~ resldents and VIs1tors to the Pro:ec~ Area, W~lC~ wlll er.ha~ce the development of adjacent portlons of t,e P"c~ect Area. . . 5 t . .- i iii =4 a;) . 0< ~ v.-i'_.a.>!-.--.... , l. ,,- - . i~~~;--' ~... --~ ~.......~.....,. - ... - ..... (J . I I , I . . I I I . I . . I , = \ . I . \ . I t I I : .. I I I . I : i ' f ! I : . I - . : I . . U t I I I I I I . I I I I I J I I I I I , I I I f I I I . : ! I ; I , : I : I f ... 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