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CC - Item 2A - Public Hearing on Expenditure of Commission Fundsi ROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: OLIVER CHI, CITY MANAGER ok~ DATE: AUGUST 26, 2008 SUBJECT: PUBLIC HEARING ON THE EXPENDITURE OF COMMISSION FUNDS FOR THE FY 2008-09 CAPITAL IMPROVEMENT PLAN PURSUANT TO HEALTH & SAFETY CODE SECTIONS 33679 AND 33445 SUMMARY Redevelopment Law (Health and Safety Code Section 33445) requires that, if redevelopment funds are to be used to pay for improvements which will be publicly owned, both within and outside of the project area, the City Council and the Community Development Commission must make three findings: a) that the proposed improvements are of benefit to the Project Areas or the immediate neighborhood in which the projects are located; b) that there are no other reasonable means of financing the proposed projects available to the community; c) that the projects will assist in the elimination of blighting conditions in the Project Areas and are consistent with the adopted Implementation Plan. For the FY2008-09 Capital Improvement Plan, there are two projects that require the use of Commission funds. 1. The Rosemead Parks Trail Project was considered and approved by the City Council as a part of the recently adopted budget. The Project will beautify the park by adding landscaping, adding a new walking/jogging trail around the park's perimeter, and adding new exercise and fitness equipment adjacent to the new trail. 2. The Sewer Master Plan Project was also considered and approved by the City Council as a part of the recently adopted budget. The Project will conduct an overall analysis and needs assessment of the City's sewer system infrastructure. The plan will also allow staff to develop needed capital improvements projects over the next 5 and 10 years. Construction of the Rosemead Park Trails is expected to occur between September 2008 and November 2008. The Sewer System Master Plan is expected to be completed by April 2009. APPROVED FOR CITY COUNCIL AGENDA: 6 ~ A l ■ City Council Meeting August 26, 2008 Page 2 of 3 Staff Recommendation Staff recommends that the City Council adopt Resolution No. 2008-58 making the appropriate findings under Health and Safety Code Section 33445 and the Council consent to the proposed Commission expenditures. ANALYSIS Health and Safety Code Section 33445 Findings As stated above, Health and Safety Code Section 33445 requires that the City Council consent to the Commission expenditures for public improvement projects and that the Commission and Council find that: 1) The use of Commission funds is of benefit to the project area(s) funding the improvement. The Projects are of benefit to the Project Areas as there are inadequate and deficient public facilities within the Project Area including park facilities and improvements and the sewer system infrastructure is in need of improvements which will be identified in the Sewer Master Plan and permit the City to create a plan for undertaking those improvements. These projects will provide needed public facilities and improvements and will therefore benefit the Project Areas. A description of the Projects and the funding sources are attached to the Resolution proposed with this staff report as Exhibit A; and 2) There is no other reasonable means of financing the improvements. At this time, no other reasonable means of financing the Projects are available from the City as the City is using its funds to undertake other projects, services and public improvements throughout the City as reflected in the City's FY 2008-09 Capital Improvement Plan; and 3) Funding the project will assist in the elimination of one or more blighting conditions inside the project area. The payment of funds for the Projects will assist in the elimination of blighting conditions inside the Redevelopment Project Areas by providing for the identification of needed public sewer system improvements and additional public park facilities which are currently insufficient and in poor condition; and r City Council Meeting August 26, 2008 Paae 3 of 3 4) Consistency with 5-Year Plan The use of Commission funds for these Projects is consistent with the Commission's 5-year Implementation Plan for 2005-2009. FISCAL IMPACT The Community Development Commission approved $125,000 for the Sewer Master Plan and $295,000 for the Rosemead Park Trails Project in the FY 2008-09 Capital Improvement Plan budget. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Sub by Bria eki Assistant City Manager Attachment A: City Council Resolution No. 2008-58 0 0 RESOLUTION NO. 2008-58 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD MAKING THE FINDINGS REQUIRED BY SECTION 33445 OF CALIFORNIA REDEVELOPMENT LAW AND DETERMINING THAT THE PROVISION OF PUBLIC IMPROVEMENTS FOR THE CREATION OF A SEWER MASTER PLAN AND CONSTRUCTION OF PARKS IMPROVEMENTS AT ROSEMEAD PARK IS OF BENEFIT TO REDEVELOPMENT PROJECT AREAS NOS. 1 AND 2 WHEREAS, the Rosemead Community Development Commission (the "Commission") is a public body, corporate and politic, duly established and authorized to transact business and exercise powers under and pursuant to the provisions of the Community Redevelopment Law of the State of California, constituting Part 1 of Division 24 of the Health and Safety Code of the State of California (the "Law"), including the power to expend funds for public improvements for the benefit of Redevelopment Project Areas Number 1 and 2 ("Project Areas"); and WHEREAS, the City of Rosemead ("City") is the legislative body for the community in which the Project Areas are located and pursuant to Health & Safety Code section 33445 is required to consent to payments to be made by its Commission for the provision of public improvements; and WHEREAS, the provision of these projects are consistent with the Commission's Five-Year Implementation Plan Goals adopted for 2005-2009; and WHEREAS, there are appropriate facts supporting the findings required by Health & Safety Code Section 33445 for the City Council to consent to the Commission's expenditure of funds for provision of funds for the creation of a sewer master plan and park related public improvements at Rosemead Park "the Project(s)"; and WHEREAS, the Resolution is being considered at properly noticed Public Hearing as required by Health and Safety Code section 33679. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Recitals. The City Council finds and declares that the above recitals are true and correct and incorporates them herein. SECTION 2. Findings Required by Health & Safety Code Section 33445. The City Council hereby determines that: • • (i) the Projects are of benefit to the Project Areas as there are inadequate and deficient public facilities within the Project Areas including park facilities and improvements and sewer system infrastructure is in need of improvements which will be identified in the Sewer Master Plan to permit the City to create a plan for undertaking sewer system capital improvement. These projects will provide those needed public facilities and improvements and will therefore benefit the Project Areas. A description of the Projects and the funding sources are attached here to as Exhibit A; and (ii) no other reasonable means of financing the Projects are available from the City as the City is using its funds to undertake other projects, services and public improvements throughout the City as reflected in the City's Capital Improvement Plan and City 2008-2009 Budget a copy of which is on file with the City Clerk; and (iii) that the payment of funds for the Projects will assist in the elimination of blighting conditions inside the Redevelopment Project Areas by providing for the identification of needed public sewer system improvements and additional public park facilities which are currently insufficient and in poor condition; and (iv) The use of Commission funds for these Projects is consistent with the Commission's 5-year Implementation Plan for 2005- 2009. SECTION 3. City Consent to use of Agency Funds. The City Council consents to the use of Commission funds to pay $125,000 to fund in part the Sewer Master Plan and $295,000 to fund in part the Rosemead Park facilities and improvements for a total of $420,000 to permit the completion of the Projects. SECTION 4. Effective Date: This Resolution shall take effect from and after its date of passage; approval and adoption. SECTION 5. Certification: The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 26th day of August, 2008. John Tran, Mayor • APPROVED AS TO FORM ATTEST: Joseph M. Montes, Special Counsel Gloria Molleda, City Clerk • • EXHIBIT A Rosemead Park Trails The project will help beautify existing park landscaping at the Rosemead park, add a new walking/jogging trail around the park's perimeter, and add new exercise equipment adjacent to the new trail. This project was approved by the City Council and Community Development Commission as part of the FY 2008-09 Capital Improvement Plan ($295,000 - CDC funds, $155,000 - TDA funds, $50,000 - sidewalk grant). Sewer System Master Plan The sewer system master plan will provide an overall analysis and needs assessment of the City's sewer system infrastructure. The plan will also allow staff toe develop needed capital improvements over the next 5 to 10 years ($125,000 - CDC funds, $50,000 - gas tax fund).