R 4364 RESOLUTION NO. 4364
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE APPROVING A FUNDING AGREEMENT BY AND BETWEEN
THE CITY AND THE ARROYO GRANDE REDEVELOPMENT AGENCY,
AND MAKING THE FINDINGS REQUIRED BY HEALTH & SAFETY
CODE SECTION 33445, FOR AGENCY FUNDING OF A PORTION OF
THE EL CAMINO REAL REHABILITATION AND ENHANCEMENT
PROJECT, PW 2008 -09
WHEREAS, the Arroyo Grande Redevelopment Agency ( "Agency ") is a public body,
corporate and politic, authorized under the provisions of the California Community
Redevelopment Law (Health & Safety Code §33000 et seq.) ( "CRL "), to undertake
redevelopment activities in the community of Arroyo Grande; and
WHEREAS, the City of Arroyo Grande ( "City ") is a municipal corporation organized and
existing under the laws of the State of California; and
WHEREAS, the City Council, by adoption of Ordinance No. 487 C. S. on June 10, 1997,
approved and adopted the Redevelopment Plan for the Arroyo Grande Redevelopment
Project Area, as thereafter amended from time to time ( "Redevelopment Plan "); and
WHEREAS, the Redevelopment Plan delineates the Arroyo Grande Redevelopment
Project Area ('Project Area "); and
WHEREAS, the City has commenced a public project, known as the El Camino Real
Rehabilitation and Enhancement Project, PW 08 -09 consisting generally of street and
bike path and related improvements (the "Public Project "); and
WHEREAS, the site of the Public Project is within the Project Area and the Public
Project will benefit and serve the Project Area by alleviating the blighting condition of
inadequate public improvements; and
WHEREAS, pursuant to Health and Safety Code Sections 33445, the Agency, with the
consent of the City, may pay for the cost of the land for and the installation of publicly
owned facilities and improvements inside or contiguous to a redevelopment project area
within the community, provided the Agency and City Council make certain required
findings set forth in Sections 33445; and
WHEREAS, the City and Agency, pursuant to the authority set forth in Health and
Safety Code Sections 33445, desire to make available a portion of the Agency's tax
increment revenues allocated to and received by the Agency pursuant to Health and
Safety Code Section 33670(b), in an amount not to exceed FIFTY THOUSAND
DOLLARS ($50,000.00) (the "Agency Funds "), to pay for, or assist in paying for, the
construction of the Public Project; and
RESOLUTION NO.
PAGE 2
WHEREAS, the Agency staff and City staff have prepared a Funding Agreement (the
"Agreement ") to commit and effectuate the use of the Agency Funds in the amount
described above (the `Project Costs ") for the Public Project; and
WHEREAS, because no part of the Public Project is a publicly owned building, Health
and Safety Code Section 33679 is not applicable; and
WHEREAS, the City and Agency each desire to enter into the Agreement for the
purposes set forth above and declare that their entering into the Agreement is in the
best interests and welfare of the residents of the Project Area and effectuates the
purposes of the Redevelopment Plan and the purposes of the CRL specifically therein
the policies and purposes evidenced by Health and Safety Code Section 33445.
NOW, THEREFORE, the City Council of the City of Arroyo Grande resolves as follows:
Section1. The foregoing Recitals are true and correct and are incorporated herein and
made a part hereof.
Section 2. The City Council finds and determines:
(1) That, pursuant to Health and Safety Code Section 33445(a)(1), the Public
Project, all of which is located inside or contiguous to the Project Area, to be funded
with Agency Funds pursuant to the Agreement, is of benefit to the Project Area by
helping to eliminate blight within the Project Area, in that:
(a) By adoption of Ordinance 487 C. S., the territory within the Project
Area has been conclusively determined under law to be a blighted area as defined by
law.
(b) The essential purpose of the Redevelopment Plan is the
redevelopment of the Project Area by alleviating blighting conditions in the Project Area,
which Ordinance No. 487 C. S. identified as including inadequate public facilities. The
Redevelopment Plan identifies as an objective the provision of public infrastructure and
community facilities, including community facilities addressing public infrastructure
improvements such as construction or reconstruction of streets and utilities.
(c) The Public Project will therefore directly help alleviate the foregoing
described blighting conditions and thereby benefit the Project Area.
(2) That, pursuant to Health and Safety Code Section 33445(a)(2), no other
reasonable means of financing the Public Project is available to the community for the
following reasons:
(a) Potential actions by the State of California to address the State
budget are likely to reduce local revenues and increase mandated local services, and
these likely changes have necessitated a reassessment of the need for retention of City
funds for other projects and the need for alternative funding for the Public Project.
RESOLUTION NO.
PAGE 3
(b) Other City monies are dedicated to critical police, fire, and other
necessary expenditures, including the other capital improvement projects shown on the
City's Capital Improvement Program.
(c) The continued decline in the local and national economy, and
reasonable projections in connection therewith, has delayed, and potentially reduced,
City funds necessitating the need for alternative funding to be used for the payment for
the Public Project.
(d) Limits set forth in the State Constitution and State law on local
control over traditional revenue sources make it infeasible for the City to raise new local
revenues to meet the cost of the Public Project.
(e) Sound financial practices require that payment for part of the cost
of the Public Project be made using the Agency Funds and the failure to use the Agency
Funds would be detrimental to the community including specifically the residents and
businesses within the Project Area.
(3) That, pursuant to Health and Safety Code Section 33445(a)(3), the
payment of the Agency Funds for the Public Project is consistent with Agency's adopted
Section 33490 Five Year Implementation Plan FY 2009 -10 Through FY 2013 -14 (the
"Implementation Plan "), in that the Implementation Plan specifically identifies the Public
Project as a forecasted program and project to be undertaken by the Agency during the
Implementation Plan period ( #10 on Page 24).
(4) That, consistent with Health and Safety Code Section 33445(b)(2), street
and related improvements within Project Area of the type encompassed by the Public
Project are among the type of public infrastructure and facilities improvements identified
in the Redevelopment Plan necessary for the alleviation of blight in the Project Area.
Section 3. The City Council hereby approves the Funding Agreement in the form on file
with the City Clerk concurrent with the adoption of this Resolution, and authorizes and
directs that either the Mayor or City Manager sign the Funding Agreement on behalf of
the City.
Section 4. The City Manager and authorized designees are hereby authorized and
directed to take such other and further actions, and sign such other and further
documents, as are necessary and proper in order to implement this Resolution on
behalf of the City..
Section 5. The City Council finds and determines that the funding and activities that
are the subject of this Resolution are encompassed by the previous determination by
the City Council made at the City Council's meeting of October 26, 2010, that the
Public Project is categorically exempt pursuant to Sections 15301(c) and 15303(d) of
the State CEQA Guidelines (14 Cal. Code Regs. § 15000 et seq.).
RESOLUTION NO. 4364
PAGE 4
Section 6. If any section, subsection, subdivision, paragraph, sentence, clause or
phrase, or portion of this Resolution is, for any reason, held to be unconstitutional or
invalid or ineffective by any court of competent jurisdiction, or is rendered invalid, void,
or unenforceable as a result of a change in State or federal law, such decision shall not
affect the validity or effectiveness of the remaining portions of this Resolution or any
part thereof. The City Council hereby declares that it would have adopted this
Resolution and each section, subsection, subdivision, paragraph sentence, clause or
phrase of this Resolution irrespective of the fact that one or more sections, subsections,
subdivisions, paragraphs, sentences, clauses or phrases be declared unconstitutional
or invalid or ineffective. To this end the provisions of this Resolution are declared to be
severable.
On motion of Council Member Brown, seconded by Council Member Guthrie, and on
the following roll call vote, to wit:
AYES: Council Members Brown, Guthrie, Costello, Ray, and Mayor Ferrara
NOES: None
ABSENT: None
the foregoing Resolution was passed and adopted this 24 day of May 2011.
RESOLUTION NO. 93(4
PAGE 5
TO F 41 0. 1 L •,MAYOR
ATTEST:
KELLY TM % " RE, CITY CLERK
APPROVED AS TO CONTENT:
STE N A' A' ; CITY MANAGER
APPROVED AS TO FORM:
TI THY J. RMEL, CITY ATTORNEY
OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San
Luis Obispo, State of California, do hereby certify under penalty of perjury, that
Resolution No. 4364 is a true, full, and correct copy of said Resolution passed
and adopted at a regular meeting of the City Council /Redevelopment Agency of
the City of Arroyo Grande on the 24 day of May 2011.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 27
day of May 2011.
tG 1>�
KEL E RE, CITY CLERK