SR-06-22-2010-1OCity Council Meeting: June 22, 2010
Agenda Item: 1 ~~
To: Mayor and City Council
Chairperson and Redevelopment Agency
From: Andy Agle, Director of Housing and Economic Development
Subject: Clean-Up Actions Related to Redevelopment Agency-Funded Projects
Recommended Action
Staff recommends that the City Council (Council):
1) Adopt a resolution (Attachment A) finding the use of funds from the
Redevelopment Agency for design and construction bid document preparation
costs associated with the Downtown/Civic Center Freeway Capping & Bridging
project to be of benefit to the Earthquake Recovery Redevelopment Project Area;
and
2) Authorize the City Manager to execute a Cooperation Agreement between the
City and the Redevelopment Agency for payment of the costs associated with the
Downtown/Civic Center Freeway Capping & Bridging project; and
3) Adopt a resolution (Attachment- B) finding the use. of funds from the
Redevelopment Agency for the Palisades Garden Walk & Town Square project
to be of benefit to the Earthquake Recovery Redevelopment Project Area; and
4) Authorize the City Manager to execute a Cooperation Agreement between the
City and the Redevelopment Agency for payment of the costs associated with the
Palisades Garden Walk & Town Square project; and
5) Authorize the City Manager to execute an amendment to the existing
Reimbursement Agreement between the City and Redevelopment Agency
(#7117) to clarify that reimbursements from the Agency to the City be in
accordance with the annual adopted budget resolution and the Schedule of
Redevelopment Reimbursements to the General Fund.
6) Adopt an amendment to Resolution No. 10410 (CCS) (Attachment E) to reflect all
administrative charges related to planning and design of Redevelopment.
Agency-funded capital improvement projects.
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Staff recommends that the Redevelopment Agency (Agency):
1) Adopt a Resolution (Attachment C) finding the use of funds from the
Redevelopment Agency for design and construction bid document preparation
costs associated with the Downtown/Civic Center Freeway Capping & Bridging
project to be of benefit to the Earthquake Recovery Redevelopment Project Area;
and,
2) Authorize the Executive Director to execute a Cooperation Agreement between
the Redevelopment Agency and the City for payment of the costs associated with
the Downtown/Civic Center Freeway Capping & Bridging project; and
3) Adopt a Resolution (Attachment D) finding the use of funds from the
Redevelopment Agency for design and construction bid document preparation
costs associated with the Palisades Garden Walk & Town Square project to be of
.benefit to the. Earthquake Recovery Redevelopment Project Area; and,
4) Authorize the Executive Director to execute a Cooperation Agreement between
the Redevelopment Agency and the City for payment of the costs associated with
the design of Palisades Garden Walk & Town Square and- the preparation of
construction bid documents.
5) Authorize the Executive Director to execute an amendment to the existing
Reimbursement Agreement between the City and Redevelopment Agency
(#7117) to clarify that reimbursements from the Agency to the City shall be in
accordance with the annual adopted budget resolution and the Schedule of
Redevelopment Reimbursements to the General Fund.
6) Adopt an amendment to Resolution No. 10410 (RAS) (Attachment F) to reflect all
administrative charges related to planning and design of Redevelopment
Agency-funded capital improvement projects.
.Executive Summary
This staff report recommends the completion of certain actions by the Council and
Agency, as required by California. Redevelopment Law, in order to use redevelopment
funds to pay for costs associated with the Downtown/Civic Center Freeway Capping &
Bridging and Palisades Garden Walk & Town Square. Specifically, the Council and
Agency must execute cooperation agreements and adopt resolutions making certain
findings in order to fund the projects as proposed. In addition, staff has amended the
FY 2009-10 Budget Adoption Resolution No. 10410 (CCS) to reflect all administrative
and planning charges related to Redevelopment projects.
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Background
On January 19, 2010, Council authorized phased. contracts with AECOM to prepare a
full feasibility study for phased freeway capping from Ocean Avenue to 4th Street over
the I-10 freeway, and development of concept alternatives for the McClure Tunnel dnd
Fujinomiya Douri Drive extensions. Council and the Agency also authorized the
execution of a reimbursement agreement, in an amount not to exceed $3,156,508,
utilizing redevelopment funds to pay for costs associated with the freeway capping
feasibility study, including engineering and constructability analysis, and'the preparation
of options for connecting the Civic Center and Downtown over the freeway.
On April 13, 2010, the Council approved a contract with James Corner Field Operations
for the design and construction bid document preparation of the Palisades Garden Walk
& Town Square Project. The Council and Agency approved a reimbursement
agreement in an amount not to exceed $3,200,000 utilizing redevelopment funds to pay
for costs associated with James Corner Field Operations undertaking the landscape
architectural design services for the development of a new six-acre public open space
within the Civic Center, located north of Olympic Drive, west of Main Street, south of
Interstate-10 Freeway, and east of Ocean Avenue, and aone-acre Town Square
oriented to civic and community activities in front of City Hall.
On June 23. 2009, the Council adopted Resolution No. 10410 (CCS) (Resolution)
approving and adopting the City's FY 2009-10 Budget. The Resolution included the FY
2009-10 Schedule of Redevelopment Reimbursements to the General Fund (Schedule),
which replaced Exhibit 1 to the Reimbursement Agreement entered into between the
Redevelopment Agency and .the City on November 22, 1994. The Resolution and
Schedule constitute the Redevelopment Agency's indebtedness to the General Fund in
accordance with California Health and. Safety Code Sections 33670 ET. SEQ.
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Discussion
Freeway Bridging and Capping Analysis and Palisades Garden Walk
To fund the two projects as described above, the Council and Agency are required to:
® Prepare and execute a Cooperation Agreement for each project, in place of a
reimbursement agreement; and
• Adopt Resolutions for each project, making certain specific findings (Attachments
A, B, C, and D).
The Cooperation Agreements will allow the Agency to record the financial obligations as
indebtedness. The resolutions must be adopted in order to make the appropriate
findings as required by the Health and Safety Code Section 33445. The attached
resolutions find that: 1) the use of these funds is a benefit to the Earthquake Recovery
Redevelopment Project area; 2) no other reasonable means of financing for the
improvements is available; 3) the payment of funds for the Project will assist in the
elimination of one or more of the conditions resulting from the 1994 Northridge
Earthquake disaster inside the Earthquake Recovery Redevelopment Project area; and
4) the Project is consistent with the Redevelopment Agency's Five-Year Implementation
Plan.
Schedule of Redevelopment Reimbursements to the Geherat Fund
The Reimbursement Agreement between the City and Agency, executed on
November 22, 1994, provides for the City's aid and cooperation in the planning,
undertaking, construction and operation of redevelopment projects and for the City to be
reimbursed for costs and expenses incurred as a result of undertaking redevelopment
activities on behalf of the Agency. An amendment to the Reimbursement Agreement is
needed to clarify that the Agency will reimburse the City in accordance with the City's
annually adopted budget resolution and the Schedule of Redevelopment
Reimbursements to the General Fund. In addition, an amendment to the Schedule of
Redevelopment Reimbursements to the General Fund, as presented in Resolution No.
10410 (CCS/RAS) (Resolution), is needed to reflect a change in the accounting of 8.0
FTE existing permanent employees who assist in the planning and design of
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Earthquake Recovery Redevelopment Project-funded capital improvement projects. The
amendment would make it clear that repayment to the City will correspond with the
adopted budget resolution. Accordingly, the Agency will reimburse the City for 8.0 FTE
positions working on redevelopment projects on behalf of the Agency.
Financial and Budget Actions
There are no financial impacts associated with the actions recommended in this report.
Prepared by: Nia Tang, Senior Development Analyst
Approved:
Andy Agle, Director
Housing and Economic Development
Forwarded to Council:
Rod Gould
City Manager
Attachments:
Attachment A: Downtown /Civic Center Freeway Capping & Bridging Project
(City Council Resolution)
Attachment B: Downtown /Civic Center Freeway Capping & Bridging Project
(Redevelopment Agency Resolution)
Attachment C: Palisades Garden Walk & Town Square Project
(City Council Resolution)
Attachment D: Palisades Garden Walk & Town Square Project
(Redevelopment Agency Resolution)
Attachment E: Amended Resolution 10410 (City Council Resolution)
Attachment F: Amended Resolution 10410 (Redevelopment Agency Resolution)
Reference Resolution Nos.
10497 (CCS) - 10499
(CCS) & 522 (RAS) - 524
(RAS).
Reference Contract Nos.
9233 (CCS/RAS), 9234
(CCS/RAS), & Amended
Contract No. 7117 (CCS).