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HomeMy WebLinkAboutRESOLUTIONS - 05022006 - 2006-192 1 SE Contra TO: BOARD OF SUPERVISORS/ E- REDEVELOPMENT AGENCY Costa FROM: DENNIS BARRY, DIRECTOR COMMUNITY DEVELOPMENT` _ titi County OST'q COl1I3'� JOHN CULLEN, EXECUTIVE DIRECTOR CONTRA COSTA COUNTY REDEVELOPMENT AGENCY DATE: May 2, 2006 - SUBJECT: Parker Avenue Reconstruction, Rodeo I SPECIFIC REQUEST(S)OR RECOMMENDATIONS)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: 1. As the Board of Supervisors, ADOPT Resolution 2006/192: (� • Approving an Amended and Restated Project Agreement - Parker Avenue Reconstruction Project, Rodeo with the Contra Costa County --9 Redevelopment Agency increasing the amount of the agreement by v $6,500,000 to an amount not to exceed $8,000,000 and extending the term to December 31, 2008 and authorizing the Director of Public Works to execute the Agreement; • Consent to a Public Facilities and Loan Agreement between the Contra Costa County Redevelopment Agency and the City of Pinole providing for ® the Agency to loari $300,000 for sewer force main relocation underlying Ci Parker Avenue and San Pablo; CONTINUED ON ATTACHMENT: ® YES SIGNATURE: [ 0E'COMMENDATION OF EXECUTIVE DIRECTOR ❑ REC M NDATION OF AGENCY COMMITTEE [PROVE ❑ OTHER SIGNATURE(S). ACTION OF I E Y ON APPROVED AS RECOMMENDED OTF R ❑ VOTE OF COMMISSIONERS: I HEREBY CERTIFY THAT THIS IS A TRUE AND / CORRECT COPY OF AN ACTION TAKEN AND v UNANIMOUS(ABSENT ENTERED ON THE MINUTES OF THE AYES: NOES: REDEVELOPMENT AGENCY ON THE DATE SHOWN. ABSENT: ABSTAIN: ATTESTED 2-0o( Contact: Jim Kennedy (335-7225) JOHN CULLEm ,dGEN6Y SECRETARY Orig Redevelopment Agency cc: CAO " County Counsel By: Deputy Redevelopment Agency \ r I 1 RECOMMENDATION cont: • Make findings required by California Community Redevelopment Law (California Health & Safety Code Section 33000 et. seq.) related to the a) Improvement of publicly owned facilities within the Rodeo Redevelopment Project Area; b) That the Parker Avenue improvements, including sewer force main relocation is of benefit to, and will eliminate blight within the Rodeo Redevelopment Project area; c) That there are no other reasonable means available to finance the Parker Avenue improvements, including the sewer force main relocation; and d) That the payment of funds by the Contra Costa County Redevelopment Agency is consistent with the Agency's adopted Implementation Plan and the Adopted Redevelopment Plan; • Determine that the Mitigated Negative Declaration for the Parker Avenue Reconstruction Project adopted by the County on January 28, 2003 adequately covers impacts of the project; and • Determine that the force main relocation portion of the Parker Avenue Reconstruction Project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15304 (e) of the CEQA Guidelines. 2. As the Governing Board of the Redevelopment Agency, ADOPT Resolution 2006/193 • Approving an Amended and Restated Project Agreement - Parker Avenue Reconstruction Project, Rodeo with Contra Costa County increasing the amount of the contract by $6,500,000 to an amount not to exceed $8,000,000 and extending the term to December 31, 2008 and authorizing the Redevelopment Director to execute the Agreement; • Approving a Public Facilities and Loan Agreement between the Contra Costa County Redevelopment Agency and the City of Pinole providing for the Agency to loan $300,000 for sewer force main relocation underlying Parker and San Pablo Avenues; • Make Finding required by California Community Redevelopment Law (California Health and Safety Code Section 33000 et. seq.) related to the a) Improvement of publicly owned facilities within the Rodeo Redevelopme,t Project area; b) That the Parker Avenue improvements, including the sewer force main relocation is of benefit to, and will eliminate blight within the Rodeo Redevelopment Project Area; c) That there are no other reasonable means available to finance the Parker Avenue improvements including the sewer force main relocation; and d) That the payment of funds by the Contra Costa County Redevelopme t Agency is consistent with the Agency's adopted Implementatio Plan and the adoption of Redevelopment plan; • Determine that the Mitigated Negative Declaration for the Parker Avenue Improvements adopted by the County on January 28, .2003 adequately covers impacts of the project; and • Determine that the force main relocation portion of the Parker Avenue Improvement Project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 153021(e) of the CEQA Guidelines. I 1 FINANCIAL IMPACT: None. No General Funds are involved. The Redevelopment Agency has identified the source of the required funds contemplated by these actions. The Agency is using a combination of budgeted funds and funds from an issuance of Agency Tax Allocation Bonds expected to be completed later this summer. The underlying financing plan maximizes the ability of the County, the Redevelopment Agency, and the City of Pinole to undertake the project in the near term. The County is responsible for approximately $4.3 million (53%) of the total Phase 2 roadway reconstruction project cost to completion and the Redevelopment Agency is responsible for approximately $3.8 million (47%) of the total Phase 2 project cost to completion, for a total Phase 2 project cost to completion of approximately $8 million) The underlying plan of finance contemplates that the Agency would loan the City of Pinole $300,000 for sewer force main relocation costs, and advance to the County approximately $2.5 million for a portion of its share of the project, which advance would be returned to the Agency from road improvement fees and other available road/street revenues (i.e., Measure C, Unocal and Road Funds). The total cost of the project its $13.3 million, of which $5.2 million has already been expended for preliminary and design engineering, Lefty Gomez Park parking lot improvements, and Phase I Parker Avenue utility undergrounding work. A cost summary is included as Attachment A. BACKGROUND: 1. Scope The Parker Avenue Reconstruction Project in Rodeo was initially approved by the Board of Supervisors/Redevelopment Agency on December 5, 2000. The project has two major phases: a) Utility undergrounding; and b) Roadway reconstruction including streetscape improvements. The project extends along Parker Avenue for eight blocks from Seventh Street to California Street, through downtown Rodeo. Phase 1, the utility undergrounding phase, is currently 95% complete. The final work on this phase of the project, removing existing power poles and reconnecting utility services to the new underground system, will be completed during phase 2, the roadway reconstruction phase of the project. Major improvements in phase 2 include reconstruction of the four-lane commercial thoroughfare into a two-lane pedestrian-oriented boulevard with landscaped median islands, curb biulb-outs and curbside parking, and new street lighting, furniture and trees. Completion of the roadway reconstruction project will create a visually prominent, tree-lined boulevard uniting downtown Rodeo, the waterfront, and the surrounding community. The project, when it is completed, will represent a substantial improvement to the physical conditions of downtown Rodeo. The adopted Rodeo Redevelopment Plan (July 10, 1990 Ordinance 90- 501) and the more recently adopted Implementation Plan (January 17, 2006) for the Agency identified the Parker Avenue Improvements as a key element in addressing blight in Rodeo. Reconstruction and streetscape improvements along Parker Avenue was also identified as a key element for revitalizing downtown Rodeo in the Rodeo Dowmtown/Waterfront Specific Plan adopted by the Board of Supervisors on August 12, 1997. 2. History The basis for this project is driven by the blighting conditions along Parker Avenue in the Rodeo Redevelopment Project Area, including inadequate infrastructure .and public improvements, and an overall appearance of neglect.. Parker Avenue will be reconstructed to )incorporate and finalize the streetscape enhancements specified in the 1997 Rodeo Specific Plan, the Rodeo Redevelopment Plan and the Agency's Implementation Plan. 1 On October 24, 2000, the Board of Supervisors and Redevelopment Agency approved a Project Agreement and Work Program for the project in the amount $1.3 million. On December 5, 2000, the Public Works Department presented revised cost estimates for the project,. and the Board approved an amended Project Agreement and Work Program in the amount of $1.5 million. On January 28, 2003, the Board found that there was no substantial evidence the project would have a significant effect on the environment based on the Parker Avenue Reconstruction and Undergrounding Project Mitigated Negative Declaration initial study and comments) received, and therefore adopted the Mitigated Negative Declaration and Mitigated Monitoring Program in compliance with CEQA. The Board also approved the project and authorized the Public Works Director to publicly advertise the project at this time. The utility undergrounding phase (Phase 1) of the project was initiated in the spring of 2004, and the pre-roadway reconstruction component of this phase was completed in the spring of 2005. Lastly, on January 27, 2004, the Redevelopment Agency and Public Works amended the Project Agreement to include reconstruction of the Lefty Gomez parking lot. This amendment did not increase the amount of the Redevelopment Agency's financial obligation ($1.5 million) for the overall project under the agreement at that time. This component of the project was completed in the winter of 2006. 3. Recent Events The Parker Avenue improvements from the outset were expected to be a complicated undertaking, given the age of the underlying improvements and facilities. The level of complication has far exceeded even the expectation. The Public Works Department staff has been creative and tenacious in identifying reasonable solutions to new issues as they arose, including additional storm drainage work, traffic signal work, water and electrical connections, and landscape maintenance considerations. Some of these complications have resulted in a requirement for the I County to cancel the previous bidding period and subsequently re-advertise the project at a later date, resulting in project cost increases. In addition, there has been a significant increase in the cost of essential materials as the project has proceeded through final design. After successfully sorting through these complications, the County Public Works Department re-advertised the roadway reconstruction phase of the project on February 14, 2006, and opened bids for the project on March 28, 2006. With the actions recommended herein, the Public Works Department will be able to recommend an award of a contract for construction. The roadway reconstruction phase of the project is anticipated to start in July or August, 2006. An additional complication unrelated to County owned facilities was a determination that a sewer force main serving the cities of Pinole and Hercules would have to be relocated under Parker Avenue between Seventh and Third Streets, and under San Pablo Avenue between Railroad and California Streets. The sewer service in Pinole and Hercules is operated by a Joint Powers Agency (JPA) comprised of the two cities. Their treated wastewater is pumped through a sewer force main along Parker, Railroad, and San Pablo Avenues through Rodeo to the Rodeo Sanitary District Treatment Facility. As a condition of the encroachment permit issued by the County, the JPA must relocate its facilities at its own costs. The total cost of the sewer line relocation is approximately $2 million, which is being ahared between the two cities. Hercules has indicated they can provide their share as required. The City of Pinole has indicated that their current rates do not allow them to fully fund 100% of their obligation, and have requested that the County Redevelopment Agency loan the City $300,000 to permit the project to proceed immediately. The recommended actions to approve a Public Facilities and Loan Agreement with the City of Pinole accomplished the desired loan of $300,000. The City would agree to repay the loan over a five year term, with an interest ra4e fixed at the time of origination based on 5-year Treasury Bill rates (currently 4.75% ). The City would repay the loan from dedicated sewer service fees collected by the City. The loan is an unsecured loan to be repaid solely from available sewer service fees. Staff has reviewed the City's ability to repay the loan in view of other obligations the City has, and it is comfortable that the City will have the capacity to repay the loan. 4. Elements of the Board/Agency Action: County/Redevelopment Agency Project Agreement and Work Program Staff recommends that the Board and Agency approve the "Amended and Restated Parker Avenue Reconstruction Project Agreement and Work Program" by Resolution. These actions will allow for Contra Costa County to complete construction improvements to Parker Avenue within the Rodeo Redevelopment Project Area. This a ended agreement will accomplish two purposes: 1) allow the Agency to provide additional funds in the amount of $2.3 million towards completion of the project; and 2) allow the Agency to provide Public Works an additional "advance" of $2.5 million to be utilized towards completion of the project. The County will ultimately be responsible for approximately 53% of the Phase 2 roadway reconstruction project cost to completion, with the Agency responsible for approximately 47%. The funding source for the County's share of the Phase 2 project costs will be a combination of Measure C, Unocal and Road Funds. The total project cost to completion (Phases 1 and 2) is now estimated at $13.3 million. City of Pinole/Agency Agreement Staff recommends that the Board of Supervisors consents to, and the Redevelopment Agency approves the "Public Facilities and Loan Agreement' between the City of Pinole and the Agency. These actions will allow for the Agency to provide the City of Pinole with a loan in the amount of $300,000 as a partial source of funds for completion of the relocation of the sewer force main underlying Parker Averiue. 5. Legal Context The. Resolution befo a the Board/Agency makes a variety of Findings & Determinations. The purpose of this section is to briefly summarize these actions. First, Section 33445 of the Community Redevelopment Law authorizes an Agency to pay for public improvements, subject to legislative findings. These findings are made by both the Board of Supervisors and the Redevelopment Agency, and includes findings that ■ The improvements are of benefit to the project area; ■ No other reasonable means of financing the improvements are available; and ■ the improvements will eliminate blight in the project area. The preceding material documents that these findings are appropriate. With respect to the Pinole Loan Agreement portion of the project, the City of Pinole made these findings in approving the loan agreement on March 7, 2006. Second, the Board of Supervisors, as the legislative body for the County, must consent to the Redevelopment Agency paying its part of the costs of the Parker Avenue improvements. Third, with respect to California Environmental Quality Act (CEQA) compliance, both the Board of Supervisors and the Redevelopment Agency action determine that 1) the January 28, 2003 Mitigated Negative Declaration adopted by the Board of Supervisors adequately covers the Parker Avenue improvements because there are no substantial changes in the project, no new circumstances exist that would create new environmental effects, and no new information had been k presented to show any significant effects not previously covered; and 2) that the Pinole/Hercules sewe force main relocation and the loan agreement between the :. Agency and the City of Pinole related thereto are exempt from CEQA pursuant to Public Resources Code Section 2100.21 and the CEQA Guidelines Section 15302(c). And fourth, the resolutions authorize the Public Works Director, or designee, to execute documents on behalf of the County and for the Redevelopment Director to execute documents on behalf of the Agency. ( s {E{ Y. F 4 k k' 1 i l ATTACHMENT A Cost Summary: Parker Avenue Reconstruction Project Phase I (Utility Undergrounding) Costs-Completed Preliminary, Design, &Construction Engineering $601,000 Construction $2,246,000 TOTAL PHASE I $2,847,000 Phase II (Parker Ave Reconstruction) Costs to Date Lefty Gomez Parking Lot Improvements $232,000 Preliminary and Design Engineering Redevelopment portion $507,000 Public Works portion $1,634,000 Sub-Total Phase II Costs to Date $2,373,000 Estimated Costs to Completion Redevelopment Agency Share $3,800,000 County Share $4,300,000 Sub-Total Estimated Phase ll to Completion $8,100,000 TOTAL PHASE If $10,473,000 PROJECT COSTS - TOTAL (Estimated) $13,320,000