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HomeMy Public PortalAbout7H Budget Allocation & Amend FY 10-11 City Budget to include Rosemead Blvd Safety Enhancement and Beautification ProjectAGENDA ITEM 7.H. MANAGEMENT SERVICES DEPARTMENT MEMORANDUM DATE: March 1, 2011 TO: The Honorable City Council Community Redevelopment Agency Members FROM: Jose E. Pulido, City Manager or Jose E. Pulido, Executive Director By: Monica Molina, Financial Services Manager Veronica Aguas, Avant -Garde, Inc. SUBJECT: APPROVE THE RECOMMENDED BUDGET ALLOCATIONS AND AMEND FISCAL YEAR (FY) 2010-11 CITY BUDGET TO INCLUDE FUNDS FOR THE ROSEMEAD BOULEVARD SAFETY ENHANCEMENT AND BEAUTIFICATION PROJECT RECOMMENDATION: The City Council and Agency Members are requested to: a) Review and approve the recommended budget allocations from various local, state and federal sources; b) Amend the current FY 2010-11 City Budget to include the allocations for the Rosemead Boulevard Safety Enhancement and Beautification Project; and c) Amend the current FY 2010-11 CRA Budget to include $890,000 for the Rosemead Boulevard Safety Enhancement and Beautification Project from the Community Redevelopment Agency (CRA). BACKGROUND: 1. On June 30, 2006, the Metro Board approved the City's request to enter into a Capital Reserve Account for $5,000,000 of Proposition C (Prop C) funding for the Rosemead Boulevard Project. The establishment of this account permits a local jurisdiction to accumulate local return funds up to the amount agreed upon for the City Council Agency Members March 1, 2011 Page 2 use of a particular project, and extends the term in which the funds must be spent. 2. On January 2, 2008, the City Council approved an appropriation of $258,400 of Prop C funds for the design of the Rosemead Boulevard Safety Enhancement and Beautification Project. 3. On January 30, 2008, Avant -Garde presented City staff with an analysis and review of the City's budget to determine an approximate project budget available with only City resources and without the use of general funds. At that time, the total potential project budget was approximately $10 million. 4. On March 18, 2008, the City and Caltrans fully executed the agreement and adopted Resolution No. 08-4536 for the relinquishment of Rosemead Boulevard to the City, and accepted a payment of $386,000 from the State in exchange for the City assuming full maintenance, ownership, responsibility, control and liability of Rosemead Boulevard. These non-restrictive funds were placed into the General Fund for use at a later date. 5. On June 6, 2008, House Resolution 1195 (H.R. 1195) approved by Congress technically changed the title of the Rosemead Boulevard project from "Purchase of Rosemead Blvd ROW (Right of Way)" to "Rosemead Boulevard Safety Enhancement and Beautification Project" and made the federal earmark funds eligible to be spent for these improvements. 6. On July 1, 2009, the City Council approved a $20,000 budget appropriation of Prop C funds for the design of the Rosemead Boulevard Safety Enhancement and Beautification Project. 7. On April 6, 2010, the City Council created an Ad -Hoc Committee consisting of Council members Vincent Yu and Carl Blum to work with staff on the redesign of the Rosemead Boulevard Safety Enhancements and Beautification Project. 8. On April 16, 2010, the City Council approved a $530,760 budget appropriation of Prop 1B funds to the project budget. These funds were distributed per capita from the voter -approved initiative of State bond sales for the purposes of transportation projects. 9. On July 1, 2010, the City Council adopted the annual FY 2010-11 City Budget. The Capital Improvement Program identified a total of $5,197,865 for the Rosemead Boulevard project, which included all of the funds previously appropriated, additional Prop C funds in the amount of $3,010,145, additional STPL funds in the amount of $621,710, and the federal earmark granted in 2005 in the amount of $719,920. City Council Agency Members March 1, 2011 Page 3 10. On August 17, 2010, the CRA appropriated $125,000 of CRA funds to retain the services of Vanir Construction Management, Inc. for Phase 1 and 2 to provide a redesign implementation plan for the Rosemead Boulevard Safety Enhancement and Beautification Project. 11. On December 21, 2010, the City Council approved a $907,833 allocation of budgeted Prop C funds to retain the services of Gruen Associates to provide the architectural design and construction administration services for the Rosemead Boulevard Project. 12. On December 21, 2010, the CRA appropriated $25,000 of CRA funds for Amendment No. 1 to the Consultant Services Agreement with Vanir Construction Management, Inc. to add two additional months to the term and cover the costs associated with the extension. 13. On January 4, 2011, the CRA approved a $279,700 allocation of budgeted Prop C funds for the Second Amendment to the CRA's Consultant Services Agreement with Vanir Construction Management, Inc. for Phase 2 day to day management of the design of the Rosemead Boulevard Project. ANALYSIS: Over the last eighteen months, the City Manager and the City Council Ad Hoc Committee (i.e., Council members Blum and Yu) have focused on and accomplished many of the tasks needed to improve the design of the project with many more architectural, pedestrian, bicycle and community identity elements to reduce blight and provide more opportunities within the Rosemead Boulevard Redevelopment Project Area. These tasks have included asserribling a team of consultants and city staff, moving the project into redesign, and pursuing additional grant funding opportunities. In an effort to move this project forward, Avant -Garde conducted a second analysis of the entire City's budget to find additional funds and on -going eligible specialty funds that could be allocated towards the project based on the eligible uses of the individual funds. As a result, a budget recommendation was prepared to assist the City in determining how much funding would be available for construction. The attached table (Attachment "A") includes all of the funds that the City currently has on hand as a result of per capita distributions; secured grant funding that is reimbursed upon progress reports of money spent, and identification of future year allocations. The following funds are recommended for new appropriations to FY 2010-11 City Budget for the Project: City Council Agency Members March 1, 2011 Page 4 • $386,000 was received from the State in the relinquishment of Rosemead Boulevard and deposited to the General Fund because a project account had not been established at that time. As part of this budget appropriation, it is recommended that these funds be removed from the General Fund and designated to the project for the purposes of the specialty soft costs of the project, such as grant writing, community outreach, marketing or website, newspaper or other publishing, various funds management, or other as determined through the course of the project. Any unused funds for these purposes would be carried over to the construction budget. • Proposition A (Prop A) funds are monthly receipts of the County's voter - approved 1/2 cent sales tax for transit uses and will be used for the transit stop improvements such as bus pads, bus shelters, etc. The recommended appropriation of $1,500,000 for FY 2010-11 will leave a healthy balance in the fund for operating costs, expansion of existing transit services, or potentially another appropriation from the next year allocation to the project budget. • CRA Funds have been appropriated for Vanir Construction Management services in the amount of $150,000. An additional $890,000 is recommended for appropriation for FY 2010-11 CRA Budget fora total of $1,040,000. • The Lighting and Landscaping District (LLD) Fund is a consolidation municipal lighting district to provide a citywide lighting program and includes other eligible uses such as trees and parkways. The recommended appropriation of $2,000,000 for FY 2010-11 will improve existing lighting, and install additional lighting, trees and improved parkways for Rosemead Boulevard. • Measure R funds are voter -approved 1/2 cent sales tax in Los Angeles County for transportation purposes and distributed monthly under Local Return similarly to Prop A and Prop C funds. As a relatively new fund source, the fund balance is young with a projected $483,700 for FY 2010-11. This fund balance is recommended for appropriation to the project. • Traffic Congestion Relief (TCR) funds are State generated quarterly receipts of sales taxes on gasoline designated for transportation roadway improvements. Funds must be spent within two fiscal years from the date of receipt. For this reason, a future allocation is projected. No budget action is required at this time. • In the 2005 SAFETEA-LU legislation enacted by Congress, the Rosemead Boulevard project was earmarked to receive $800,000. Every earmark in the country undergoes a "haircut" by which approximately 9% of the funds are reduced as a result of the federal Highway Trust Fund taking in less money City Council Agency Members March 1, 2011 Page 5 than projected. The amount of federal earmark dollars obligated towards this project is now $791,920. This appropriation was included during the adoption of FY 2010-11 City Budget. No budget action is required at this time. As part of FY 2011-12 City Budget, additional allocations will be made based on projected revenues for that fiscal year. The total budget for the Rosemead Boulevard Safety Enhancement and Beautification Project will be $13.3 million by the end of FY 2012-13. The following is a brief description of the uncommitted funds that will be made available after FY 2010-11: STP-L funds are federal funds allocated per capita by Metro based on projections of federal obligation authority (available funds to encumber) as part of the Highway Trust Fund policy. These funds accumulate until requested through an administrative process with Caltrans. The City has already obligated $641,710 to the Rosemead Boulevard project. Including the projected allocation for FY 2010-11, the total amount of STPL funds is $1,007,565. Proposition C funds (Prop C) are monthly receipts of the County's voter -approved 1/2 cent sales tax for transportation uses. The City has entered into a Capital Reserve Account with Metro for up to $5,000,000 for the project. The City will have an additional $974,295 available through the end of FY 2012-13. Total Prop C funds used for this project will be $4,436,120. Proposition 1B (Prop 1 B) are voter -approved State bond proceeds distributed to every city in the State for roadway projects. The City received $600,250 in FY2007-08 and is anticipated to receive another $530,760 by FY 2011-12 upon the sale of State bonds. The funds are distributed up front to the City and a report is required to detail how the funds are spent. Measure R funds distributed to the City will be allocated to the Rosemead Boulevard Safety Enhancement and Beautification Project. It is estimated that the City will receive approximately $290,000 in Measure R funds during FY 2011-12. CONCLUSION: If approved by the City Council and the Agency Members, the new budget appropriations and amendments to the current FY 2010-11 City Budget (Attachment "B") will add $5,851,395 for the Rosemead Boulevard Safety Enhancement and Beautification Project. City Council Agency Members March 1, 2011 Page 6 FISCAL IMPACT: The City Council is requested to approve an appropriation of $4,961,395 for FY 2010- 11 City Budget for the Rosemead Boulevard Safety Enhancement and Beautification Project as follows: STPL: $ 365,855 Prop C: $ 225,840 Prop A: $ 1,500,000 LLD: $ 2,000,000 Measure R: $ 483,700 General: $ 386,000 Agency Members are requested to approve an appropriation of $890,000 for FY 2010-11 CRA Budget. This appropriation will be utilizing bond proceeds received by the City in September 2005; leaving an estimated fund balance of $821,570. The approval of these appropriations will commit these funds to the Rosemead Boulevard Safety Enhancement and Beautification Project and will not be available for any other expenditure. Any additional funds received in the future are considered uncommitted until an appropriation is approved by the City Council. ATTACHMENT(S) A. Recommended Budget B. Existing FY 2010-11 Capital Improvement Program Budget Budget Date 1/31/2008 6/30/2009 7/1/2010 8/17/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 Total Allocations Tota l Federal Total State Total Local Allocati on $ 258,400 $ 20,000 $ 5,197,865 $ 150,000 $ 5,851,395 $ 13,344,315 $ 1,727,485 $ 1,867,010 $ 9,749,820 Rosemead Bo ulevard Safety Enhancement Beautificatio n Project AttachmentA Committed Funds Sources STPL asop C Prop 1B _ 258,400 61 20,000 $ 641,710 2957,585 $ 600,250 _$ 719,920 $ 365,855 225,840 illiiiiiNPOO 474,295 $ 1,007,565 ,_$, _ 4,436,120 .If $ 530,760r , llill� $ 1,131,010 L,$ 719,920 Prop A 150,000 $ 1,500,000 tS 890,000 1— L-- $ 1,500,000 1,040,000 LLD ithawre R TCR General L_ x. $ 2,000,000 i_$ 483,700 _S 290,000 $ 350,000 l,„__ $ 2,000,000 773,700 386,000 lam. $ 350,000 386,000 03/01/2011 Mid -Year Budget Attachment B CITY OF TEMP LE CI TY ANNUAL BUDGET FY 2010-2011 CAPITAL IMPROVEMENT PROGRAM STREET CONSTRUCTI ON PR OJECT DETAIL ACCT. NO. 60-980-75-4810 FISC AL YE AR 2009 - 2010 FISCAL YEAR 2010 - 2011 No. Project Priorit y Bud get Estimated Carrie O ver Prop osed P05-07 NPDES Catch Basin Screens (E) 10,000 GF 10,000 GF P08.07 Upgra de Sewer Line on Longden from Muscatel (N) to Encinita 300,000 GF 200,000 GF 300,000 SR 400,000 SR 600,000 600,000 P08-11 Rosemead Boule vard Improvement Project (N) 258,400 PROP C 32,560 PROP C 225,840 P ROP C 3,235,985 PROP C 600,250 PROP 1B 641,710 STPL 719,920 SAFE LU 258,400 32,560 225,840 5.197 .865 P09-09 Grind and Over lay Project for Freer Street (N) 33,345 GF 575,000 AR RA 90,365 TCR 698,700 R ecap of Funding So urce s 343,345 GF 258,400 PROP C 300,000 SR 575,000 ARRA 90,355 TOR TOTAL CIP - STREET CON STRU CTION 1,667,100 699,000 ARRA 123.700 TCR 722,700 32,560 PROP 0 599,000 ARRA 123,700 TCR 765,260 210,000 GF 225,840 P ROP C 400,000 SR 835,840 3,235,985 PROP G 600,250 PROP 1B 641,710 STPL 7I9,920 S AFE LU 5,197,865 (E) = Esse ntial (N) = Necessar y (M) = Man date d (R) = Routine (D) = Dis cretionary