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19950307 CC SR City and Redevelopment Agency Loan Agreement Amendment 1111 • q' j cfd n t ', MEMORANDUMRANCHO PALOS VERDES O. HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCI AN)PTED CITY COUNCIL CITY OF RANCHO PALG,r--�1lt;.riDz^ FROM: DIRECTOR OF PUBLIC WORKS MAR © 71g95 DATE: MARCH 7, 1995 • SUBJECT: CITY AND REDEVELOPMENT AGENCY LOAN AGREEMENT CITY CLERK STAFF COORDINATOR:VERONICA DOLLESCHEL, SR. ADMINISTRATIVE ANALYST RECOMMENDATION It is recommended that the City Council and Redevelopment Agency Board of Directors approve the revised loan agreement dated March 7, 1995 authorizing the loan of an additional $82, 000 in General Funds to the Redevelopment Agency for costs associated with three Community Development Block Grant Projects and for storm related costs. BACKGROUND The annual loan agreement between the City Council and the Redevelopment Agency needs to be amended for costs associated with three Community Development Block Grant Projects and for storm related costs. Action from both the City Council and the Redevelopment Agency Board of Directors is required to approve the revised loan agreement with the Redevelopment Agency. In addition, the Redevelopment Agency Board is also requested to approve a corresponding budget adjustment resolution, which is discussed in the Redevelopment Agency meeting staff report. DISCUSSION The loan document shows that a total of $382 , 000 will now be loaned to the Redevelopment Agency. This includes $300, 000 from the original adopted budget, $55, 000 for the Portuguese Canyon Grading and Drainage, East Portuguese Canyon Grading, and Palos Verdes Drive South Reconstruction Community Development Block Grant projects, and $27, 000 for storm related expenses. The City Council approved the use of $55, 000 in General Funds for three Community Development Block Grant Projects currently on hold due to questions raised by the Housing and Urban Development Commission at its February 7, 1995 meeting. At that time the City Council requested that the General Funds be loaned to the Redevelopment Agency for this activity. Approval of the attached loan document is required to formalize Council's direction. 411 410 CITY LOAN AGREEMENT AMENDMENT MARCH 7, 1995 PAGE 2 On January 4 , 1995 the City was hit by the first of a series of severe winter storms. The costs to respond to immediate needs in the Redevelopment Agency area and to complete permanent repairs will exceed the funds currently allocated in the FY 1994-95 Redevelopment Agency budget. Therefore, an additional loan of $27,000 in general funds is also needed to cover these storm related response and repair costs. Exhibit "A" attached summarizes the estimated costs in the City and the Redevelopment Agency area. Response and repair costs were for activities including debris removal, street repair, drainage repair, personnel overtime, supplies (i.e. sandbags, traffic cones, etc. ) , building and safety inspections, geologist inspections, park repairs, etc. The County of Los Angeles declared the County a disaster area, which was then also declared by Governor Pete Wilson and President Bill Clinton. These declarations made disaster funds available to the City, which the City is applying for. It is unknown how much federal and state reimbursement the City will actually receive. Since the City is responsible for paying for these expenses at this time, a loan amendment is required. CONCLUSION An additional loan of $82, 000 to the Redevelopment Agency is needed, $55, 000 for the three Community Development Block Grant projects as authorized by the City Council on February 7, 1995, and $27, 000 for storm related expenses. FISCAL IMPACT An additional $82 , 000 in General Funds will be loaned to the Redevelopment Agency, bringing the total FY 94-95 loan to $382 , 000. Respectfully Submitted: Reviewed: � - 1 - e.... rent D. Pulliam Paul D. Bussey Director of Public Works City Manager rdaAJST.3-7 (VAD#6)