19950502 CC SR Revised RDA Loan Agreement Additional Storm Related Expenses I 1
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MEMORANDUM IL RANCHO PALOS VERDES
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TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNC AU_ _ T
FROM: DIRECTOR OF PUBLIC WORKSCIT COUNCIL
CIS_ -
DATE: MAY 2, 1995 AYC '2i99
SUBJECT: REVISED REDEVELOPMENT AGENCY LOAN AGREEMENT F ---
ADDITIONAL STORM RELATED EXPENSES
%; CITY CLERK
STAFF COORDINATOR:VERONICA DOLLESCHEL, SR. ADMINISTRATIVE ANALYST
RECOMMENDATION
It is recommended that the City Council approve the revised loan
agreement dated May 2, 1995 authorizing the loan of $75, 000 in
General Funds to the Redevelopment Agency in FY 94-95 for a
second wave of storm related costs.
BACKGROUND
11/1 The City applied for Federal Emergency Management Agency (FEMA)
disaster funds to recover storm related expenses resulting from
the January and February 1995 rain storms. Additional damage
occurred during late February/March 1995 winter storms and a loan
of general funds is needed to the Redevelopment Agency budget
for these costs.
DISCUSSION
The costs to respond to the needs in the Redevelopment Agency
area following the February/March 1995 storms will exceed the
funds currently allocated in the FY 1994-95 Redevelopment Agency
(RDA) budget. A loan of $75, 000 in general funds is needed to
cover these storm related response and repair costs.
Exhibit "A" attached summarizes the total storm damage expenses
for the season in the Redevelopment Agency. The Agency Board
previously approved an RDA budget adjustment of $54 , 000 for a
portion of the damage costs as an urgency action at their April
4, 1995 meeting. There is an additional $21, 000 budget
adjustment request on tonight's Redevelopment Agency agenda,
bringing the total loan agreement request to $75, 000.
FISCAL IMPACT
Approving staff's recommendation will authorize an additional
1110 loan of $75, 000 in General Funds to the Redevelopment Agency in
FY 94-95 for February/March 1995 storm related costs, bringing
111 III t
RDA BUDGET ADJUSTMENT - STORM RELATED COSTS
MAY 2 , 1995
PAGE 211/0
the total RDA loan to $457, 000. Some of these expenditures
should be eligible for reimbursement with FEMA disaster funds,
however, the actual amount is unknown at this time.
Respectfully Submitted: Reviewed:
Ukomm.. 4090e
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Trent D. Pulliam Paul D. Bussey
Director of Public Works Executive Director
rdacty#2.5-2 (VADl6)
EXHIBIT "A"
SUMMARY OF 1995 WINTER STORMS DAMAGE IN THE RDA
Emergency repairs approved April 4, 1995
Emergency 1/2 round relocation 50,000
Emergency well line repair 4,000
Subtotal: 54,000
Additional Storm Damage Requiring Budget Adjustment 2
Repair PB upper 1/2 round pipe 12,000
Repair PB lower 1/2 round pipe 5,000
Repair PB Well Line 4,000
Subtotal: 21,000
January Storm Damage 3
Port. Bend Pipe repair/south of PV Dr. South 10,000
Paintbrush Canyon debris basin clearing 12,000
1/2 round pipe debris removal 5,000
Subtotal: 27,000
Total FY 94-95 Adjustments: 102,000
Less previously approved loan amendment: (27,000)
Total Loan Agreement Amendment Request: $ 75,000
FOOTNOTES:
No loan agreement amendment was submitted fora raval.
2 appraval.
budget adjustment resolution for$21,000 is attached.
3 Loan agreement and budget adjustment approved March 2, 1995.
P
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DAMG-FE .XLS(vad#2a) 4/27/95
LOAN AGREEMENT
1110
This loan agreement, dated as of May 2 , 1995 is made by and between
the City of Rancho Palos Verdes and the Rancho Palos Verdes
Redevelopment Agency. For and in consideration of the mutual
covenants and promises set forth herein, the parties agree as
follows:
RECITALS
This loan agreement is entered into with reference to the following
facts:
A. In furtherance of the objectives of the Redevelopment Law, the
Agency has undertaken a program for the redevelopment of blighted
areas in the City, and in this connection, has undertaken and is
now carrying out the responsibility for the redevelopment of the
Project Area pursuant to and in furtherance of the Redevelopment
Plan.
B. The Agency and the City have adopted the Redevelopment Plan
providing for the redevelopment of the Project Area by undertaking
such actions as may be appropriate to abate the geologic hazards in
the Project Area and to relocate, reconstruct, and repair Palos
Verdes Drive South.
C. The City has previously loaned the Agency $2 , 028, 552, plus
accumulated interest for a total outstanding balance of $2,754, 261
as of June 30, 1994 . The history of the loans made by the City to 410
the two funds of the Agency are as follows:
As of June 30 Accrued Total Balance
for the years: Principal Interest Outstanding
Portuguese Bend
1990 1,279 , 152 - 0 - 1,279 , 152
1991 318,400 148, 229 1, 745, 781
1992 165, 000 180, 901 2 , 091, 682
1993 133 , 000 215, 264 2 ,439 , 946
1994 133 , 000 181, 315, 2 , 754 , 261,
Total Portuguese Bend 2 , 028, 552 725, 709 2,754,261
Abalone Cove
1990 200,332 - 0 - 200, 332
1991 499, 025 38, 209 737, 566
1992 - 0 - 49, 774 787, 340
1992 repayment ( 699, 357,) ( 87, 983) - 0 -
Total Abalone Cove - 0 - - 0 - - 0 -
Agency Totals 2 . 028, 552, 725,709 2 ,754 .261,