RDA RES 2009-014 RESOLUTION NO. RDA 2009- 14
A RESOLUTION OF THE RANCHO PALOS VERDES
REDEVELOPMENT AGENCY ADOPTING AN
IMPLEMENTATION PLAN FOR PROJECT AREA NO. 1.
THE RANCHO PALOS VERDES REDEVELOPMENT AGENCY HEREBY FINDS,
DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1: The Redevelopment Plan for Project Area No. 1 of the Rancho Palos
Verdes Redevelopment Agency (the "Project Area") was approved and adopted by
Ordinance No. 190 of the City Council of the City of Rancho Palos Verdes on November
27, 1984.
Section 2: Health and Safety Code Section 33490 requires that each
redevelopment agency that has adopted a redevelopment plan prior to December 31,
1993, adopt, after a public hearing, an Implementation Plan on or before December 31,
1994 and each five years thereafter, containing the specific goals and objectives of the
agency for the project area, the specific programs (including potential projects), and
estimated expenditures proposed to be made during the next five years, and an
explanation of how the goals and objectives, programs and expenditures will eliminate
blight within the project area and implement the low and moderate income housing
requirements of the Community Redevelopment Law (Health and Safety Code Section
33000, et seg.).
Section 3: The Agency adopted an initial Implementation Plan for the Project
Area on December 6, 1994, an updated Implementation Plans on December 7, 1999 and
December 7, 2004. All three of these Implementation Plans are on file in the office of the
City Clerk.
Section 4: The Agency has prepared anew Implementation Plan for the Project
Area, attached hereto as Exhibit A and incorporated herein by reference (the
"Implementation Plan"), in accordance with the requirements of Health and Safety Code
Section 33490.
Section 5: On December 15,2009,the Agency held a duly noticed public hearing
on the proposed adoption of the Implementation Plan at which time all persons desiring to
comment on or ask questions concerning the Implementation Plan were given the
opportunity to do so. Prior to the public hearing on the Implementation Plan, copies of the
Implementation Plan were available for public inspection in the office of the City Clerk.
Section 6: The Agency has reviewed and considered all written and oral
comments, questions and concerns regarding the Implementation Plan received prior to
and at the public hearing on the Implementation Plan.
Section 7: The Agency hereby adopts the Implementation Plan as the
Implementation Plan for the Project Area pursuant to the requirements of Health and
Safety Code Section 33490.
Section 8: The Implementation Plan may be amended from time to time after a
public hearing on the proposed amendment.
Section 9: Adoption of the Implementation Plan does not constitute an approval
of any specific program, project or expenditure and does not constitute a project within the
meaning of Section 21000 of the Public Resources Code.
Section 10: The Agency hereby directs that the Implementation flan remain on file
in the office of the City Clerk and be open to public inspection.
PASSED, APPROVED AND ADOPTED this 15th day of December, 2009.
hair
ATTEST:
Secretary
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF RANCHO PALOS VERDES )
I, Carla Morreale, Secretary to the Rancho Palos Verdes Redevelopment Agency, hereby
certify that the above Resolution No. RDA 2009-14 was duly and regularly passed and
adopted by the said Agency at a regular meeting held on December 15, 2009.
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Secretary
Resolution No. RDA 2009-14
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Resolution RDA 2009-14
Exhibit "A"
IMPLEMENTATION PLAN
For The
RANCHO PALOS VERDES REDEVELOPMENT AGENCY
January 1, 2010 through December 31, 2014
Resolution No. RDA 2009-14, Adopted on December 15, 2009
Prepared for:
Rancho Palos Verdes Redevelopment Agency
30940 Hawthorne Boulevard
Rancho Palos Verdes, CA 90275
Resolution No. RDA 2009-14
Exhibit"A"
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TABLE OF CONTENTS
I. Legislative Requirements................................................................. 1
11. Background .................................................................................2
III. Identified Conditions of Blight...........................................................3
IV. Long Term Objectives of the Redevelopment Plan...................................3
V. Five Year Goals for the Project Area ...................................................3
V1. Implementation Activities to Achieve Five Year Goals ..............................4
VII. Relationship Between Implementation Activities
and Redevelopment Plan Findings of Blight ...........................................5
VI 11. Inclusionary F± Replacement Housing Requirements .................................5
IX. Replacement Housing Plan ............................................................. 10
X. Inclusionary Housing Plan .............................................................. 11
X1. Housing Set-Aside Requirements ...................................................... 12
XI 1. Long Term Housing Goals and Policies ............................................... 16
XI 11. Five-Year Housing Goals ............................................................... 17
XIV. Financial Assistance/Developer Participation....................................... 21
XV. Time Limits............................................................................... 22
Appendix A
Attachment 1-A List of Specific Programs and Estimated Expenditures
Attachment 1-B Map of Project Area
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Exhibit"A"
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IMPLEMENTATION PLAN FOR
THE RANCHO PALOS VERDES REDEVELOPMENT AGENCY
I. LEGISLATIVE REQUIREMENTS
Assembly Bill 1290, also known as the Community Redevelopment Law Reform Act
of 1993, effective January 1, 1994, enacted numerous revisions to the California
Community Redevelopment Law including a requirement for the adoption of an
implementation plan. The California Community Redevelopment Law, Health and
Safety Code Section 33490 now requires that each redevelopment agency adopt an
implementation plan prior to December 31, 1994 and each five years thereafter
for each redevelopment project area.
The implementation plan must contain the specific goals and objectives of the
redevelopment agency for each project area; the specific programs including
potential programs and estimated expenditures proposed to be made during the
five year period of the plan; and an explanation of how the goals and objectives,
potential projects and estimated expenditures will eliminate blight within the
project area. The plan must also describe the agency's plans to implement the
housing related requirements of Code Sections 33334.2, 33334.4, and 33413.
The implementation plan must contain, for each year of the five-year period, an
annual housing program, including estimates of the number of housing units
destroyed and/or removed, and the number of units developed, rehabilitated,
price restricted and/or otherwise assisted. Further, the implementation plan
must describe the agency's plans for the use of the annual deposits in the low and
moderate income housing fund during each of the next five years.
Additionally, if the implementation plan contains a project or projects for which
the redevelopment agency is providing financial assistance, and which will result
in the destruction or removal of dwelling units housing persons and families of low
or moderate income, the implementation plan must identify proposed locations
suitable for replacement housing units.
In accordance with Code Section 33490(c), the agency must conduct a public
hearing and hear testimony of all interested parties relative to the redevelopment
plan and the implementation plan at least once within the five-year term of the
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implementation plan. The hearing must take place no earlier than two years and
no later than three years after adoption of the implementation plan.
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Notice of public hearings conducted regarding the adoption of the implementation
plan must be published pursuant to Code Section 6063 of the Government Code
and posted in at least four permanent places within the project area for a period
of three weeks. Publication and posting must be completed not less than 10 days
prior to the date set for hearing.
I I.
BACKGROUND
Redevelopment Plan Adoption
On November 27, 1984, the Rancho Palos Verdes Redevelopment Agency adopted
a Redevelopment Plan for Project Area Number One.
Project Area Description
The Project Area includes 1,240 acres, predominantly in single-family residential
use with small amounts of institutional, recreational and agricultural uses. The
majority of the development within the Project Area occurred prior to 1962.
The Project Area includes the Abalone Cove, Portuguese Bend, and Klondike
Canyon landslides and adjoining areas and roughly corresponds to the City's
Landslide Moratorium Area.
Implementation Plan
This Implementation Plan will meet the legislative requirements described in
Section I as they relate to the Rancho Palos Verdes Redevelopment Plan.
Specifically, the Implementation Plan will:
• Describe the specific goals and objectives of the Redevelopment Agency
for the project area.
• Identify the programs including potential projects and estimated
expenditures proposed to be made during the five-year period of the
Implementation Plan.
• Explain that the goals and objectives will eliminate blight from within the
project area; and
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• Describe the Redevelopment Agency's plans to implement the housing
related requirements of Community Redevelopment Law Code Sections
33334.2, 33334.4, and 33413.
III, IDENTIFIED CONDITIONS OF BLIGHT
The Redevelopment Agency adopted the "Redevelopment Plan for Project Area
Number One" on November 27, 1984 after identifying blighted conditions within
the project area generally described as follows:
Continuous earth movement has resulted in blighted conditions in the Project
Area.
Palos Verdes Drive South, the major circulation element in the area, is in
perpetual need of repair, as are other infrastructure in the Project Area.
The land formation in the Project Area is fractured with steep scarps and rifts,
and homes are set at odd angles.
IV. LONG TERM OBJECTIVES OF THE REDEVELOPMENT PLAN
The Project Area includes a number of conditions that are defined in the
California Community Redevelopment Law as characteristics of blight. The
objective of the Redevelopment Plan is to eliminate such conditions of blight by
providing needed public improvements, controlling excessive moisture in the slide
area, stabilizing earth movement and repairing damage resulting from landslides
in the Project Area. The Redevelopment Plan contains the following general
objectives:
(1) Eliminate physical and economic blight in the Project Area through the
stabilization of soils conditions leading to hazardous landslides.
(2) Prevent the recurrence of blighting conditions in the Project Area
V. FIVE YEAR GOALS FOR THE PROJECT AREA
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The priority short term (five year) goals for the Project Area that are intended to
guide the City's redevelopment program from January 1, 2010, through December
311 2014, are shown below. It is anticipated that the projects and activities
undertaken by the Redevelopment Agency (except those resulting from emergency
situations) will meet these goals.
(1) Provide a broad range of public infrastructure improvements to ameliorate
effects of unstable geologic conditions and to abate the geologic hazards,
which currently exist in the Project Area.
(2) Enhance the public safety and welfare by providing improved community
services. This goal will be achieved through the design and construction of
needed public facilities and utilities.
(3) Preserve, improve and expand housing opportunities for low and moderate
income residents. This goal will be achieved either through the rehabilitation,
repair, and replacement of currently marginal or substandard residential units,
providing subsidies or other support to qualified low- and moderate-income
households utilizing suitable existing housing resources and/or encouraging the
development of new affordable housing resources.
VI. IMPLEMENTATION ACTIVITIES TO ACHIEVE FIVE YEAR GOALS
To achieve the five-year redevelopment goals, the Redevelopment Agency
proposes to undertake the following blight elimination, community improvement,
and affordable housing programs.
• Design and construct needed public improvements. Typical examples
include, but are not limited to dewatering wells, construction of pipelines,
storm drains, culverts, pipes and channels, relocation and/or
reconstruction of public streets serving the Project Area and installation or
relocation of utilities including debris basins, channel lining and storm
drain improvements.
• Provide improved community services. Typical examples include, but are
not limited to the improvement of public streets, utilities, parks and open
spaces and the control of excessive moisture in the Project Area that
creates destabilization of soils leading to hazardous landslides.
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• Preserve, improve and expand housing opportunities for low and
moderate income residents.
Typical examples include, but are not limited to: the replacement or repair
of marginal or substandard dwelling units, providing financial subsidies to
qualified low and moderate income households, and the implementation of
financial assistance programs to reduce land, site development and/or
construction costs to facilitate the development of low and moderate
income housing.
Specific projects proposed for the next five years to fulfill the goals expressed
above are described throughout this Plan and in Attachment 1-A
VII. RELATIONSHIP BETWEEN IMPLEMENTATION ACTIVITIES AND THE FINDINGS OF
BLIGHT
The preliminary list of redevelopment program activities scheduled for the next
five years are shown in Attachment 1-A. All of the program activities scheduled
will eliminate blighting conditions by:
(1) Stabilizing soils conditions in the area preventing further erosion and
instability;
(2) Improving infrastructure that will prevent the recurrence of blighting
conditions; and
(3) Improving public streets, utilities, parks and open spaces.
VIII. INCLUSIONARY AND REPLACEMENT HOUSING REQUIREMENTS
Legislative Requirements
The Community Redevelopment Law requires that an annual housing program be
adopted as a part of the mandated implementation plan. The implementation
plan must include the number of housing units developed, substantially
rehabilitated, price-restricted, otherwise assisted, or destroyed. The
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implementation plan must also describe the Agency's plans for using annual
deposits in the low and moderate income housing fund.
If the implementation plan contains a project that will result in the destruction or
removal of dwelling units that will have to be replaced pursuant to Community
Redevelopment Law (CRL) Code Section 33413, the implementation plan shall
identify proposed locations suitable for those replacement dwelling units.
CRL Code Section 33413 states:
(a) Whenever dwelling units housing persons and families of low or
moderate income are destroyed or removed from the low and
moderate income housing market as part of a redevelopment
project which is subject to a written agreement with the agency or
where financial assistance has been provided by the agency, the
agency shall, within four years of the destruction or removal,
substantially rehabilitate, develop, or construct, or cause to be
substantially rehabilitated, developed, or constructed, for rental or
sale to persons and families of low or moderate income,
replacement dwelling units which have an equal or greater number
of bedrooms as those destroyed or removed units at affordable
housing cost within the territorial jurisdiction of the agency. When
dwelling units are destroyed or removed after September 1, 1989,
75 percent of the replacement dwelling units shall replace dwelling
units available at affordable housing cost in the same or a lower
income level of very low income households, lower income
households, and persons and families of low and moderate income,
as the persons displaced from those destroyed or removed units.
When developing units that are destroyed or removed on or after
January 1, 2002, 100 percent of the replacement dwelling units shall
be available at affordable housing cost to persons in the same or
lower income category (low, very low or moderate) as the persons
displaced from those destroyed or removed units.
(b) (1) Prior to the term limit on the effectiveness of the
redevelopment plan, at least 30 percent of all new and
substantially rehabilitated dwelling units developed by an
agency shall be available at affordable housing cost and
occupied by persons and families of low or moderate income.
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Not less than 50 percent of the dwelling units required to be
available at affordable housing cost to persons and families of
low or moderate income shall be available at affordable
housing cost to, and occupied by, very low income
households.
(2) Prior to the term limit of the effectiveness of the
redevelopment plan, at least 15 percent of all new and
substantially rehabilitated dwelling units developed within a
project area under the jurisdiction of an agency by public or
private entities or persons other than the agency shall be
available at affordable housing cost to and occupied by
persons and families of low or moderate income. Not less
than 40 percent of the dwelling units required to be available
at affordable housing cost to and occupied by persons and
families of low or moderate income shall be available at
affordable housing cost to and occupied by very low income
households.
Additional Inclusionary Housing Requirements
The agency's inclusionary housing requirements are required to be met every ten
years. If the requirements are not met within the applicable ten-year period, the
agency must fulfill its inclusionary housing requirements on an annual basis until
the requirements for the ten year period are met. Further, if the agency exceeds
its inclusionary housing goals during a given ten year period, the excess housing
units can be counted towards inclusionary housing goals in the subsequent ten
year period.
For example, if 100 new housing units are developed or substantially rehabilitated
in a project area within ten years of the initial implementation plan by entities
other than the redevelopment agency, 15 of those units must be affordable to low
or moderate income households (of which 6 must be affordable to very low
income households). If more than 15 units are developed or substantially
rehabilitated as units affordable to low and moderate income households during
this ten-year period, the affordable units in excess of 15 may be counted toward
the agency's requirements for the next ten-year period. However, if fewer than
15 units are affordable to low or moderate income households at the end of the
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ten-year period, the agency must meet its production goals on an annual basis
until the requirements for the ten-year period are met.
Affordability Requirements
Housing costs for low and moderate income housing developed pursuant to CRL
Section 33413 must be affordable to persons and households whose income do not
exceed 120 percent of the area median family income. For purposes of the
Implementation Plan, the following income limits are used:
• Very Low Income (0-50 percent of area median family income)
• Low Income (51-80 percent of area median family income)
• Moderate Income (81-120 percent of area median family income)
The area median family income limits are adjusted for household size, with
smaller households having lower income limits. The 2009 median family income
adjusted for a four-person household in Los Angeles County is $62,100. Thus by
definition, 2009 maximum income is $39,650 for a very low income four-person
household, $63,450 for a lower income four-person family and $74,500 for a four-
person moderate income family for jurisdictions in Los Angeles County.
TABLE 2
DEPARTMENT OF HOUSING Et COMMUNITY DEVELOPMENT - INCOME LIMITS
Standard 1 2 3 4 5 6 7 8
Very Low 27,750 31,700 35,700 39,650 4200 4600 49,150 52,350
Income
Lower 44,400 50,750 57,100 63,450 68,550 7300 78,700 83,750
Income
Median 43,450 49,700 55,900 62,100 67,050 72,050 7700 8L950
Income
Moderate 52,150 5900 67,050 74,500 80,450 86,400 92,400 98,350
Income
TABLE 3
AFFORDABLE HOUSING COSTS
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The second step in determining compliance with affordable housing requirements is
determining whether the total housing costs payable by the household are within
allowable amounts. The following table illustrates the Community Redevelopment Law
affordable housing costs requirements.
Income Levels Owner Costs Renter Costs
Very Low (0-50%) 30% of 50% of adj. AMI(2) 30% of 50% of adj. AMI(2)
Low 30% of 70% of adj. AMI(2) 30% of 60% of adj. AMI(2)
(51-70%)
(70-80%) Option:
Max: 30% of gross hh inc.(,)
(61-80%) Option:
Max: 30% of gross hh inc.(,)
Moderate Min: 28% of gross hh inc.(,) 30% of 110% of adj. AMI(2)
(81-120%) Max: 35% of 110% of adj. AMI
(111-120%) Option: Option:
Max: 35% of gross hh inc.(,) Max: 30% of gross hh inc.(,)
(1) Household income (hh inc.) levels relative to area median income.
(2) Area Median Income (AMI) adjusted for family size appropriate for the unit.
Following are examples of the application of affordable housing cost requirements:
AFFORDABLE HOUSING EXAMPLE FOR AVERY Low I NCOME FAMILY PURCHASING A 3-BEDROOM HOUSE
A very low income family buying a 3-bedroom house could not have monthly housing
payments exceeding $991.25. The Community Redevelopment Law requires that the
following be included as estimates for purposes of determining what the monthly housing
payment is:
• Principal and interest payments on the mortgage loan, including rehabilitation
loans.
• Mortgage loan insurance fees.
• Property taxes and assessments.
• Fire and casualty insurance.
• Property maintenance and repairs.
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• A reasonable allowance for utilities (including garbage collection, sewer, water,
electricity, gas and other fuels, but not telephone service). Such an allowance
shall take into consideration the cost of an adequate level of service.
• Homeowner association fees.
• Space rent, if the housing unit is on rented land.
AFFORDABLE HOUSING EXAMPLE FOR A VERY Low INCOME FAMILY RENTING A 3-BEDROOM UNIT
A very low income family renting a 3-bedroom house could not have monthly rental
payments exceeding $991.25. The Community Redevelopment Law requires that the
following be included as estimates for purposes of determining what the monthly rental
payment is:
• Use and occupancy of a housing unit and land and facilities associated therewith.
• Any separately charged fees or service charges assessed by the lessor which are
required of all tenants, other than security deposits.
• A reasonable allowance for utilities not included in the above costs, including
garbage collection, sewer, water, electricity, gas and other heating, cooking, and
refrigeration fuels. Utilities do not include telephone service. Such an allowance
shall take into consideration the cost of an adequate level of service.
• Possessory interest taxes or other fees or charges assessed for use of the land and
facilities associated therewith by a public or private entity other than the lessor.
Duration of Affordability
CRL Code Section 33413(c) states, in part, "The agency shall require that the
aggregate number of dwelling units rehabilitated, developed, constructed or
price-restricted pursuant to subdivision (a) or (b) remain available at affordable
housing cost to and occupied by persons and families of low income, moderate
income, and very low income households, respectively, for the longest feasible
time, as determined by the agency, but for not less than 55 years for rental units
and 45 years for homeownership units. The agency may permit sales of owner-
occupied units prior to the expiration of the 45-year period established by the
agency for a price in excess of that otherwise permitted under this subdivision
pursuant to an adopted program that protects the agency's investment of moneys
from the Low and Moderate Income Housing Fund. If land on which the dwelling
units required by this section are located is deleted from the project area, the
agency shall continue to require that those units remain affordable as specified in
this subdivision."
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CRL Code Section 33413(g) adds that "Longest feasible time as used in this
section, includes but is not limited to, unlimited duration."
Due to amendments to the Law, the time limits on affordability in CRL Code
Section 33413 (c) and (g) are now the same as the general affordability criteria for
agency-assisted units set forth in CRL Code Section 33334.3(f).
CRL Code Section 33413(b)(2)(C) adds that "long-term affordability covenants
purchased or otherwise acquired pursuant to subparagraph (B) shall be required to
be maintained on dwelling units at affordable housing costs for not less than 55
years for rental units and 45 years for homeownership units."
IX. REPLACEMENT HOUSING PLAN
Whenever dwelling units housing persons and families of low or moderate income
are destroyed or removed from the low and moderate income housing market as
part of a redevelopment project which is subject to awritten agreement with the
agency or where financial assistance has been provided by the agency, the agency
shall, within four years of the destruction or removal, substantially rehabilitate,
develop, or construct, or cause to be substantially rehabilitated, developed, or
constructed, for rental or sale to persons and families of low or moderate income,
replacement dwelling units which have an equal or greater number of bedrooms
as those destroyed or removed units at affordable housing cost within the
territorial jurisdiction of the agency. When dwelling units are destroyed or
removed after September 1, 19891 75 percent of the replacement dwelling units
shall replace dwelling units available at affordable housing cost in the same or a
lower income level of very low income households, lower income households, and
persons and families of low and moderate income, as the persons displaced from
those destroyed or removed units.
The Redevelopment Agency of the City of Rancho Palos Verdes does not
contemplate the removal or destruction of existing dwelling units within the
Project Area that house persons and families of low or moderate income that are
subject to written agreement with the agency or where financial assistance has
been provided by the agency because there are no such existing units. Thus,
there is no need for a replacement housing plan.
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X. INCLUSIONARY HOUSING PLAN
Since the adoption of the Redevelopment Plan, to date, there has been no Agency
assisted housing units developed or substantially rehabilitated within the Project
Area. Nor has there been any privately developed or substantially rehabilitated
housing units constructed within the project area. This is due to the fact that
since the adoption of the Redevelopment Plan, there has been a building
moratorium that has restricted the development of new housing within the
Project Area. Therefore, the Rancho Palos Verdes Redevelopment Agency
currently has no inclusionary housing requirements.
However, in 2008, the California Court of Appeal ruled in the case of Monks v.
City of Rancho Palos Verdes, that a taking had occurred with respect to the City's
limitations on development within Zone 2 of the City's Landslide Moratorium Area,
which also is within the Redevelopment Agency's Project Area. That ruling results
in the City either having to purchase the plaintiffs' 16 lots or remove the
restrictions that are preventing those lots from being developed. Because the
City does not have the funds in its reserves to purchase the plaintiffs' properties,
it is anticipated that development of the plaintiffs' 16 lots will occur within the
planning period. Furthermore, as a result of the Court's action, the Rancho Palos
Verdes City Council has directed the preparation of an Environmental Impact
Report to address the impacts of the potential development of an additional 31
lots within that same area of the project area. As a result, it is anticipated that
up to 47 existing vacant single-family residential lots may be developed with
single-family homes within the project area by private entities during the 2009-
2014 planning period.
Per the inclusionary requirements of State Redevelopment Law, at least 15
percent of all new dwelling units developed within a project area under the
jurisdiction of an agency by public or private entities or persons other than the
agency shall be available at affordable housing cost to and occupied by persons
and families of low or moderate income. Not less than 40 percent of the dwelling
units required to be available at affordable housing cost to and occupied by
persons and families of low or moderate income shall be available at affordable
housing cost to and occupied by very low income households.
Anticipating the development of 47 new housing units within the project area, 8
(15%) inclusionary housing units would be required over the 2009-2014 planning
period. As noted throughout this report, the proposed Mirandela Senior
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Affordable Housing Project located at the northwest corner of Crestridge Road
and Crenshaw Blvd., which is partially being funded by Redevelopment Agency
20% set-aside funds, will be constructed during the planning period. The project
includes a total of 34 units, of which 33 are affordable housing units consisting of
16 Very Low income units (7 of which are Extremely Low Income), 10 Low income
units, and 7 Moderate income units. The project's 33 affordable housing units will
be subject to recorded affordability covenants of not less than 55 years duration.
As such, the Mirandela project will satisfy the 15% inclusionary requirement and
the requirement that 40% of the units be available for Very-low income units.
Beyond the 47 units described above, no development of new housing or the
substantial rehabilitation of existing housing within the project area is anticipated
within the next ten years or over the life of the redevelopment plan.
XI. HOUSING SET-ASIDE REQUIREMENTS
The Agency is required to set-aside twenty percent (20%) of the gross annual tax
increment into the Low and Moderate Income Housing Fund. The purpose of the
housing set-aside fund is to increase, improve and preserve the city's supply of
low and moderate income housing. In carrying out the annual housing set-aside
requirements, the Agency may exercise any or all of its powers, including the
following:
• Acquire real property or building sites subject to the provisions of CRL
Code Section 33334.16. It should be noted that in March 2000, the Agency
purchased the Crestridge property for $702,392 with RDA set-aside funds.
The property was purchased with the intent that the property be used for
the development of affordable housing. In March 2009, the City Council
approved the "Mirandela" project - a 34-unit affordable housing (extremely
low, very low, low and moderate income) apartment complex on the
subject property. The project is being funded through the City's In-lieu
Affordable Housing Funds, the Agency's 20% Affordable Housing Set-aside
Funds, and tax credits awarded through the California Tax Credit Allocation
Committee. AMCAL, the project developer, will build and own the project.
As such, it is still the intention of the Agency to use this property for the
development of affordable housing.
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• Improve real property or building sites with onsite improvements but only if
either (A) the improvements are made as part of a program which results in
the new construction or rehabilitation of affordable housing units for low
or moderate income persons who are directly benefited by the
improvements and are a reasonable and fundamental component of the
housing units, and (B) the agency requires that the units remain available
at affordable housing cost, to and occupied by persons and families of
extremely low, very low, low or moderate income for the same time period
and in the same manner as provided in CRL Section 33334.3(F)(2).
• Donate real property to private or public persons or entities.
• Finance insurance premiums subject to CRL Section 33136.
• Construct buildings or structures.
• Acquire buildings or structures.
• Rehabilitate buildings or structures.
• Provide subsidies to, or for the benefit of extremely low income households
or very low-income households, as defined by Health and Safety (HEtS)
Code Section 50105, lower income households, as defined by H&S Code
Section 50079.5 or persons and families or low or moderate income, as
defined by H&S Code Section 50093, to the extent those households cannot
obtain housing at affordable costs on the open market. Housing units
available on the open market are those units developed without direct
government subsidies.
• Develop plans, pay principal and interest on bonds, loans, advances, or
other indebtedness, or pay financing or carrying charges.
• Maintain the community's supply of mobile homes.
• Preserve the availability to lower income households of affordable housing
units in housing developments which are assisted or subsidized by public
entities and which are threatened with imminent conversion to market
rates.
Resolution No. RDA 2009-14
Exhibit"A"
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The twenty percent housing set-aside fund monies can also be used for planning
and general administrative costs, when directly related to programs and activities
associated with CRL Code Section 33334.2(e). This includes the following
activities:
• Costs incurred for salaries, wages, and related costs of the Agency's staff or
for services provided through inter-agency agreements, and agreements
with contractors, including usual indirect related costs.
• Costs incurred by a non-profit corporation that are not directly attributable
to a specific project.
• Legal, architectural, and engineering costs and other salaries, wages, and
costs directly related to the planning and execution of a specific project
which are authorized under subdivision (3) of CRL Code Section 33334.2
and which are incurred by a non-profit housing sponsor and are not
planning and administrative costs for the purpose of this section, but are,
instead, project costs.
The Agency is entitled to spend its twenty percent housing set-aside funds both
within the Project Area and outside of the Project Area (but within the
jurisdictional boundary of the City of Rancho Palos Verdes).
Housing Set-Aside Fund Estimate, Expenditures and Targeting Requirements
In order for the Agency to estimate the number of units it could assist in the next
five years, a projection of twenty percent (20%) of the tax increment revenue was
developed for the period FY 2009-2010 through FY 2014-2015. As of December 3l,
2009, it is estimated that the Redevelopment Agency will have accumulated
approximately $1,471,865 in the Housing Fund.
Per an adopted Disposition and Development Agreement entered into by the
Agency and AMCAL Multi-housing Inc., during the planning period, most of these
monies will be allocated specifically towards the development of the 34-unit
affordable (extremely low, very low, low and moderate income) housing complex
("Mirandeta"). It is expected that these funds will be leveraged in concert with
the City's In-lieu Housing Funds and tax credit financing.
Resolution No. RDA 2009-14
Exhibit"A"
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TABLE 6
PROJECTED HOUSING SET-ASIDE
Estimated 20% Estimated Housing
Fiscal Years Tax Increment Expenditures
As of 12/31/09 $1,471,865 (1)
Remainder of 2009 - 2010 $107,900 (1) $1,579,765
2010 - 2011 $2111400 $2111400
2011 - 2012 $218,800 $218,800
2012 - 2013 $227,500 $0
2013 - 2014 $237,800 $0
2014 - 2015 $248,500 $0
Total $2,723,765 $2,009,965
(1) Estimated 20%Tax Increment also includes interest earnings.
These funds will be spent in proportion to the housing needs in the City as follows:
Extremely Low = 7 units (29% or $582,890)
Very Low = 9 units (29% or $582,889)
Low = 10 units (42% or $844,186)
Moderate = 11 units
It should be noted that the proposed "Mirandela" affordable housing project will
construct 7 Extremely Low income units, 9 Very Low income units, 10 Low income
units and 7 Moderate income units. The remainder of the Moderate income units
will be developed through other means over the planning period.
Targeting Reg ui rements:
It should be noted that this proposed expenditure plan meets the requirements of
Section 33334.4(a), which requires that the Agency must expend over each 10-
year period of the Implementation Plan the Housing Fund moneys to assist housing
for persons of low income and housing for persons of very low income in at least
the same proportion as the total number of housing units needed for each of those
income groups bears to the total number of units needed for persons of moderate,
low and very low income within the City, as those needs have been determined
for the City pursuant to Government Code Section 65584. Specifically, this
section requires that for the Agency, at least 43% of funds be spent on Very-low
income and at least 27% of funds be spent on Low income units. The Agency
meets this requirement as shown above, wherein a total of 58% is being spent on
Resolution No. RDA 2009-14
Exhibit"A"
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Very-low income units (inclusive of Extremely Low) and 42% is being spent on Low
income units.
Additionally, Section 33334.4(b) generally provides that the Agency must spend
over the duration of each Implementation Plan Housing Fund moneys to assist
housing that is available to all persons regardless of age in at least the same
proportion as the number of low income households with a member under age 65
years bears to the total number of low income households of the City as reported
in the most recent U.S. census. Based upon the 2000 U.S. census, the Agency has
determined that it may spend up to a maximum of 49.66% towards an age-
restricted project, ensuring that at least 50.34% of funds are spent on non-age
restricted projects. The Agency has determined that expenditures for the
"Mirandela" affordable housing project, which is an age-restricted project, will
account for the maximum expenditure towards age-restricted project. As such,
all expenditures beyond this project will be spent towards non-age restricted
projects.
Finally, it should also be noted that during the previous Implementation Plan
period the Agency purchased an existing condominium unit for future sale to a
Low to Moderate income household (non-age-restricted). The purchase price of
the unit was $437,775. It is planned that this unit will be re-sold to a Low to
Moderate income household during the 2009-2014 planning period.
XII. LONG TERM HOUSING GOALS AND POLICIES
The General Plan Housing Element for the City of Rancho Palos Verdes has six
separate and distinct goals developed to address the various housing needs of the
City. These are explicitly stated in order to give latitude and authority to design
and address the implementation of the housing program. They are as follows:
Goal 1 DESIGNATE SITES THAT FULLY MEET THE HOUSING NEEDS OF ALL
INCOME GROUPS AS QUANTIFIED BY SCAG'S REGIONAL HOUSING
NEEDS ASSESSMENT.
Goal 2 ASSIST IN THE PROVISION OF HOUSING AFFORDABLE TO VERY LOW,
LOW AND MODERATE-INCOME HOUSEHOLDS.
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Goal REMOVE EXISTING GOVERNMENTAL CONSTRAINTS TO THE
MAINTENANCE, PRESERVATION, IMPROVEMENT AND DEVELOPMENT OF
HOUSING.
Goal CONSERVE AND IMPROVE THE EXISTING STOCK OF AFFORDABLE
HOUSING.
Goal 5 ATTAIN A HOUSING MARKET WITH "FAIR HOUSING CHOICE", MEANING
THE ABILITY OF PERSONS OF SIMILAR INCOME LEVELS REGARDLESS OF
RACE, COLOR, RELIGION, SEX, NATIONAL ORIGIN, HANDICAP AND
FAMILIAL STATUS TO HAVE AVAILABLE TO THEM THE SAME HOUSING
CHOICES.
Goal PRESERVE THE EXISTING AND FUTURE SUPPLY OF AFFORDABLE
HOUSING THAT IS FINANCIALLY ASSISTED BY THE CITY, COUNTY,
STATE OR FEDERAL GOVERNMENTS.
The Regional Housing Needs Assessment (RHNA) provided by the Southern
California Association of Governments (SCAG) for the established eight year
planning period of 2006-2014 calls for 7 extremely low income housing units, 9
very low income housing units, 10 low income housing units, 11 moderate income
housing units and 23 high income housing units, for a total of 60 new housing units
in the City of Rancho Palos Verdes.
According to State Law, cities are required to adopt an updated General Plan
Housing Element every 5 years. In order to prepare an updated General Plan
Housing Element, cities rely upon SCAG's to provide the updated RHNA. As of the
date this Implementation Plan was adopted, the City had adopted the 2008
Housing Element, which covers the 2006-2014 planning period. The fulfillment of
the Redevelopment Agency's obligation to utilize 20% of its tax increment income
for low to moderate income housing development ("Mirandeta" project) will
support the General Plan Housing Element Goals and assist in meeting the
Regional Housing Needs allocated to the City of Rancho Palos Verdes now and in
the future.
XIII. FIVE-YEAR HOUSING GOALS
Resolution No. RDA 2009-14
Exhibit"A"
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During the five-year period of the implementation plan, the Redevelopment
Agency of the City of Rancho Palos Verdes will facilitate the preservation, new
construction and/or rehabilitation of affordable housing projects that will support
the following goals:
• Satisfy the replacement housing requirements of the Community
Redevelopment Law as they relate to any housing units, if any, displaced
by Redevelopment Agency activities.
• Satisfy the inclusionary housing requirements of the Community
Redevelopment Law as they relate to the provision of affordable housing as
a percentage of any new or substantially rehabilitated housing which may
be constructed within the Redevelopment Project Area.
• Meet the fair share regional affordable housing goals for the City of Rancho
Palos Verdes by improving public improvements and community facilities,
removing and preventing blighting conditions and providing and/or
preserving affordable housing resources.
• Support overall community development, economic development, and
redevelopment/revitalization efforts within the City of Rancho Palos
Verdes by improving public improvements and community facilities,
removing and preventing blighting conditions and providing and/or
preserving affordable housing resources.
It is anticipated that the Redevelopment Agency will couple 20% housing set aside
funds with other public and private funding sources as described below. The
Redevelopment Agency will seek to generate the construction, substantial
rehabilitation, and/or purchase of affordability covenants through public and/or
nonprofit sponsors. The City of Rancho Palos Verdes has no Article 34 authority
and it is not anticipated that the Redevelopment Agency or the City of Rancho
Palos Verdes will directly own and manage affordable housing projects.
Project Selection Criteria
Projects seeking financial assistance from the Redevelopment Agency's Low and
Moderate Income Housing Fund will be evaluated on a case-by-case basis based on
the following criteria:
Resolution No. RDA 2009-14
Exhibit"A"
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• Ability of the project to generate other public/private funding in support
of housing set aside funds.
• Degree to which the proposed project meets multiple community goals in
addition to affordable housing goals. These goals include but are not
limited to the following:
a. Replacement housing requirements.
b. Inclusionary housing requirements.
C. Fair share regional housing requirements.
d. Community goals for redevelopment, neighborhood revitalization
and economic development.
• The cost benefit of the proposed affordable housing program as defined by
the level of affordable housing assistance requested as it relates to the
number of affordable housing units provided.
• The financial track record, management and development experience of
the proposing sponsor.
Annual Targets
The number of affordable housing units to be developed/established over the five
year implementation plan period will be primarily from the development of the
"Mirandela" affordable housing project located at the corner of Crestridge Road
and Crenshaw Blvd, which should be completed in year 2011. Due to limited
available funding, the Agency anticipates only 4 additional affordable housing
units to be developed during the 5-year implementation plan period. As such, the
following table represents the production goals for the five-year implementation
plan:
TABLE 7
ANNUAL HOUSING GOALS
Year Units
2010 0
2011 1 33
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Exhibit"A"
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2012 1
2013 1
2014 2
TOTAL: 37
Limiting Factors
The estimates of housing units noted above will include extremely low, very low,
low and/or moderate income units constructed or rehabilitated by a developer
with the financial assistance of the Agency. While it is expected that the
"Mirandela" 34-unit affordable housing project will be completed in 2011, it is
possible that there may be unforeseen factors that could limit the ability of the
Redevelopment Agency to meet its Implementation Plan goals, such as the
inability of the developer, AMCAL, to meet their obligations within the approved
Disposition and Development Agreement governing the completion of said project.
Additionally, due to limited funding opportunities, it may be difficult for the
Agency to provide for an additional 4 units during the 5-year planning period.
Other Programs
In addition to the "Mirandela" project, following are examples of some specific
programs that could be used by the Redevelopment Agency of the City of Rancho
Palos Verdes to fulfill their housing goals.
Deed-Restrict Existing Projects
Within the City of Rancho Palos Verdes are a number of multi-family projects.
The Agency may negotiate deed restrictions with owners of these existing projects
to restrict rental rates to levels affordable to low and moderate income
households. Low and moderate income housing funds for rehabilitation of the
buildings may be offered as an incentive in exchange for deed restrictions.
Assistance to the existing rental stock may be publicly advertised to solicit
applications from existing property owners.
Subsidized New Construction/Purchase of Existing Housing
New construction of rental housing for low and moderate income households
traditionally represents one of a redevelopment agency's primary options to meet
its housing production goals. However, the gap between market rents and rents
affordable to very low and low income households within the City of Rancho Palos
Verdes will typically require significant subsidies to achieve affordability for new
Resolution No. RDA 2009-14
Exhibit"A"
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construction or the purchase of existing market rate housing.
As discussed throughout this report, the Agency has already taken steps in
implementing this specific program through the development of the proposed
"Mirandela" 34-unit affordable housing project. The Agency has committed its
property and its 20% set-aside funds towards this project through the adoption of
a Disposition and Development Agreement with the developer AMCAL, Multi-
Housing, Inc.
Substantial Rehabilitation
Rehabilitation of existing rental properties is a cost effective program option to
fulfill the Agency's affordable housing production requirements. The Agency may
use Housing Fund monies to provide financial assistance for the rehabilitation of
private, non-profit and for-profit rental properties. The City/Agency may
establish its own rehabilitation program or may contract with the Los Angeles
County Housing Authority to carry out a rehabilitation program.
First-Time Homebuyers Program
The First-Time Homebuyers Program (FTHB) is a down payment assistance
program for moderate, low and very low income homebuyers. Qualified buyers
are eligible to receive down payment assistance for the purchase of a primary
residence. Typically, a second mortgage is held by the Redevelopment Agency
and repaid from the proceeds of a sale or refinance. Alternatively, the
Redevelopment Agency may elect to allow the sale of the home to a second
qualified buyer and transfer the mortgage for the down payment assistance to the
second qualified owner. As previously discussed, the high cost of housing in the
City of Rancho Palos Verdes could make this program less than cost effective.
Mortgage Credit Certificate Program
The Mortgage Credit Certificate Program (MCC) is available for first-time
homebuyers who have not had an ownership interest in a principal residence
within the previous three years. Buyers interested in participating in the program
make application through their lender at the time they apply for a home loan.
The MCC provides a tax credit, which allows the borrower to qualify for a larger
mortgage. This tax credit is calculated as 20% of the annual interest paid on the
primary mortgage and can be no greater than $2,000 per year.
XIV. FINANCIAL ASSISTANCE/DEVELOPER PARTICIPATION
Resolution No. RDA 2009-14
Exhibit"A"
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The Agency's philosophy with regard to providing financial assistance in the
development of affordable housing will be to leverage low and moderate income
funds with other sources of funds. There are numerous federal, state, county or
city programs in which an agency or developer may participate. In addition, the
Agency may establish local programs to assist in the establishment and
preservation of low and moderate income housing. Appendix A. contains a brief
description of these various programs.
XV. Time Limits
For implementation plans prepared after January 1, 2007, the Agency must
identify the fiscal year the Agency expects the following time limits to expire:
Time limit to incur indebtedness: Expired
(does not apply to Housing Bonds)
Time limit on effectiveness: November 27, 2024
Time limit to receive property taxes
and repay indebtedness: November 27, 2034
Time limit to commence eminent
domain proceedings: Expired
Resolution No. RDA 2009-14
Exhibit"A"
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APPENDIX A
LIST OF FUNDING PROGRAMS
HOME Program
The HOME Program is a federally funded grant program for housing. Funds are allocated
by formula to participating jurisdictions that are allowed great flexibility with respect to
the types of properties to be assisted, the types of development (new construction,
modest or major rehab, etc.) to be undertaken, the forms and amounts of financing to
be offered, the quality and type of housing provided, the households assisted and
procedures for running programs.
The intent of HOME is:
• To expand the supply of decent, safe, sanitary and affordable housing.
• To strengthen the abilities of state and local governments to provide housing.
• To assure that federal housing services, financing, and other investments are
provided to state and local governments in a coordinated and supportive fashion.
Low Income Housing Tax Credit (LIHTQ
As part of the Tax Reform act of 1986, Congress created the Low Income Housing Tax
Credit (LIHTC), which provides a tax shelter for limited partners in low income housing
projects. This program is currently being used in the development of the "Mirandela"
34-unit affordable housing project, wherein the City/developer obtained an award of Tax
Credits in September 2009 by the California Tax Credit Allocation Committee. These Tax
Credits provide for about one-half of the funding for this project.
Private Institutions
Under the Community Reinvestment Act (CRA), private lending institutions such as banks,
thrifts, and their affiliated mortgage banking subsidiaries are required to annually assess
the credit needs of the communities in which they operate. The City has and will
continue to hold meetings with lenders to discuss local needs and potential programs
that may be within the guidelines of community reinvestment.
California Community Reinvestment Corporation (CCRQ
CCRC is a non-profit mortgage banking consortium specifically designed to provide long-
Resolution No. RDA 2009-14
Exhibit"A"
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term debt financing for affordable housing developments. Created in 1989, the CCRC is
comprised of 56 banks representing all areas of the State. The CCRC finances loans by
pooling funds from each of its member banks. CCRC has its own staff, which screens
applications and provides technical assistance to developers. A loan committee,
consisting of senior credit officers from members' banks, approves all loans on behalf of
member banks. When the loan committee approves a loan, CCRC draws funds from each
bank in proportion to their size.
CCRC enters into "partnership"with cities to leverage public monies (redevelopment low
and moderate income housing funds, CDBG, etc.) with CCRC private funds to construct
low and moderate income housing. Five different 30-year fixed rate loans products are
offered, with affordability required to be maintained for the life of the loan. Below
market interest rates are provided to both non-profit and for-profit sponsors (Treasury
bonds of comparable maturities plus 100 basis points for non-profits, plus 200 basis points
for profits.)
Federal Home Loan Bank
The affordable housing programs mandated by the Financial Institutions Reform,
Recovery and Enforcement Act (FIRREA) of 1989 and the Community Reinvestment Act
are now being implemented through the 12 Federal Home Loan Banks. By law, the
affordable housing provisions call for, among other things, a requirement for interest-
subsidized loans to be extended to low income homebuyers, as well as a variety of
lending activities that fall under the "community investment" heading.
Through the Affordable Housing Program, the FHLB provides interest rate subsidies on
advances to member banks that engage intending to long-term low to moderate income
owner-occupied or affordable rental housing. Loans that qualify for the program include
those used to finance homeownership by low income families, and loans that finance the
purchase, construction or rehabilitation of rental housing, of which at least 20 percent
will be occupied by very low income households.
In addition to the Affordable Housing Programs, the FHLB also implements a Community
Investment Program. Through this program, each district bank appoints a community
investment officer and provides "community-oriented" mortgage loans to members at its
own cost of funds. Loans that qualify for the program include those used to finance the
purchase or rehabilitation of homes by borrowers earning 115%or less of the area median
income, and those that finance commercial or economic development projects that
benefit low and moderate income families.
Resolution No. RDA 2009-14
Exhibit"A"
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Single Family Mortgage Revenue Bond Program
Los Angeles County coordinates interested lenders and developers who wish to
participate in a single-family, tax exempt bond program. The County issues tax exempt
bonds to generate a pool of funds from which mortgages will be drawn. The developers
and/or lenders pay the costs of the financing and reserve a portion of the pool to
originate mortgages in their projects. The individuals purchasing the homes must be first
time homebuyers and fall within certain income parameters. Ultimately, the first time
homebuyer can qualify for a larger mortgage because the interest rate is lower than
market rate. The developer/lender can use the mortgage pool to more effectively
market their homes.
Multi-Family Bond Program
The Multi-Family Bond Program provides long-term financing for multi-family projects at
tax exempt rates. The program requires that 20% of the units be reserved for low and
moderate income residents. Project owners are required to provide a letter of credit,
insurance or other credit, insurance or other credit enhancement for the financing.
Resolution No. RDA 2009-14
Exhibit"A"
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ATTACHMENT1-A
List of Proposed Projects and Estimated Expenditures
Capital Expenditures:
• Re-Construct Palos Verde Drive South from Narcissa Drive to Schooner Drive in the
Portuguese landslide area to accommodate bike-compatible lanes
Estimated Expenditure: $788,000
FY 09/10 - 11/12
Annual Expenditures For Maintenance and Administration Activities
• Engineering Services to monitor the operation of the existing monitoring and
dewatering wells.
Estimated Expenditure: $5,500 annually
FY09/10 through FY13/14
• Engineering and Contract Services to repair and rehabilitate discharge lines for
dewatering wells.
Estimated Expenditure: $35,000 annually
FY09/10 through FY13/14
• Contract Services to maintain that portion of Palos Verdes Drive South within the
project area.
Estimated Expenditure: $350,000 annually
FY09/10 through FY13/14
• Energy Cost for the operation of pumps for the dewatering wells.
Estimated Expenditure: $20,000 annually
FY09/10 through FY13/14
• Engineering and Contract Services to monitor ground movement (GPS monitoring).
Estimated Expenditure: $37,000 annually
FY09/10 through FY13/14
• Contract Services for Abalone Cove Sewer System Maintenance.
Estimated Expenditure: $40,000 annually
FY09/10 through FY13/14
• Contract Services for Abalone Cove Sewer System Lift Station Maintenance.
Estimated Expenditure: $32,000 annually
FY09/10 through FY13/14
RDA Resolution No. 2009-14
Attachment 1-A
Page 1 of 1
ATTACHMENT1-B
Map of Project Area
(See Greg Pfost or copy on file in City Clerk's office for map)
RDA Resolution No. 2009-14
Attachment 1-B
Page 1 of 1