2002 AGN JUN 04 I14 - Laserfiche WebLink

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Item #14 REDEVELOPMENT AGENCY FOR THE CITY OF COLTON For the Redevelopment Agency and City Council Meeting of June 4, 2002 TO: Honorable Agency Chairperson and Boardmembers Honorable Mayor and Councilmembers FROM: Candace Cassel, Redevelopment Manage 5 SUBJECT: Consideration and Approval of Redevelopment Agency Resolution No. 801 and City Council Resolution approving Amendment No. 1 to Santa Ana River Public Works Projects Funding and Construction Management Agreement. DATE: May 28, 2002 Background/Discussion i On March 20, 2001, the Redevelopment Agency Board approved Agency Resolution No. 770 and the City Council approved Resolution R-23-01, which approved entering into the Santa Ana River Public Works Projects Funding and Construction Management Agreement (Attachment "A") for the purposes of paying for the cost of the installation and construction of certain public work improvement projects situated in or of benefit to the Santa Ana River Redevelopment Project Area. The City and Agency have identified several amendments that need to be made to the Agreement: 1) The public work improvement projects identified in Section 2 of the Agreement have not yet been completed. The Agreement provides that if the projects are not completed by June 30, 2002, the funds shall be disbursed to the Agency. 2) After approval of the Agreement, SANBAG announced plans to construct a bridge over the railroad tracks that cross Hunts Lane, with construction scheduled to begin in early 2004. Therefore the Hunts Lane Street Lighting and Landscaping and Sidewalks improvements has been eliminated from the list of scheduled improvements. And, 3) In order to invest the funds in accordance with City practices, it is being requested that Union Bank be designated as the fiscal agent. The Escrow Agreement, which identifies the terms of serving as the fiscal agent, is attached as Exhibit "A" to Amendment No. 1 to Santa Ana River Public Works Projects Funding and Construction Management Agreement. Financial Impact The Santa Ana River Bond Proceeds are the primary source to fund all of the described projects. The Agreement is basically a tool for encumbering the bond funds for projects currently budgeted and in progress. These changes will allow the Agency/City to retain the bond funds rather than reduce outstanding debt as provided for in the bond indentures. In addition, changing the fiscal agent will allow the Agency/City to direct the investment of the funds in accordance with City practices. Environmental Impact The City is responsible for the performance of any required environmental review for the various public improvement projects prior to their construction. Amending the Construction Management Agreement will not result in any environmental impact.