HomeMy Public PortalAboutCRA3BCRA AGENDA
ITEM 3.B.
MANAGEMENT SERVICES DEPARTMENT
MEMORANDUM
DATE: March 1, 2011
TO: The Honorable City Council
Community Redevelopment Agency Members
FROM: Jose E. Pulido, City Manager L1
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
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Agency Members
March 1, 2011
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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.
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Agency Members
March 1, 2011
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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:
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Agency Members
March 1, 2011
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• $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 '/z 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 for a 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
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Agency Members
March 1, 2011
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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 1B) 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
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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
Rosemead Boulevard Safety E nhancement Beautification Proj ect
Attachment,
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
Allocation
$ 258,400
$ 20,000
$ 5,197,865
To tal Allo cations
Total Federal
Total State
Total Local
$ 150,000
$ 5,851,395
$ 13,344,315
$ 1,727,485
$ 1,867,010
$ 9,749,820
Committed Funds Sources
STPL prpC
258,400
20,000
$ 641,710. 2,957,'585
$ 365,855 _ 225,840
500,000
__-474.,295
Ptr�
Prop 1B
$ 600,250
$ 530,760
Prop A
150,000
$ 1,600,0E10 S
1
1, 007,565 61.11,46,./20 $ 1,131,0.1 .5 *719,920 $ 1„,500,0 00 $ 1
LLD Measure R TCR
low
89[3,000 S 2,000,000 61, 483,700
290,000
Harm
jac000
$ 350,000
L_
0,000 $ 1.o00,000 773,700 $ 350,000 5O00
03/01/2011 Mid -Year Budget
Attachment B
CITY OF TEMPLE CITY
ANNUAL BUDGET
FY 2010-2011
CA PITAL IMPROVEME NT PROGRAM STRE ET CONSTRUCTION
PRO JECT DETAIL ACCT. NO. 60-980-75-4810
FISCAL YEAR 2009 - 2010 FISCAL YEAR 2010 - 2011
No. Project Priority Budget Estimated Carry Ove r Pro posed
P05-07 NPDES Catch Basin Screens (E) 10,000 GF 10,000 GF
P08-07 Upgrade Sewer Line on Lo ngden from Muscatel ( N) 300,000 GF 200,000 GP
to Encinita 300,000 SR 400,000 SR
600,000 600,000
P08-11 Rosemea d Boulevard Impr ov ement Project (N) 258,400 PROP C 32,560 PROP C 225,840 PROP C 3,235,985 PROP C
600,250 PROP 18
641,710 STPL
719,920 SAFE LU
258.400 32,560 225,840 5,197,865
P09-09 Grind and Overlay Project for Freer Street (N) 33,345 GP
575,000 ARRA
90,355 TCR
698,700
Re cap of Funding Sourc es
599,000 AR RA
123,100 TOR
722,700
343,345 GF - 210.000 OF
258,400 PROP C 32,560 PROP 0 225,840 PROP C
300,000 SR - 400,000 SR
575,000 ARRA 599,000 ARRA
90,355 TCR. 123,700 TCR
TOTAL CIP - STR EET CONSTRUCTION 1,567,100
755,260
835,840
3,235,985 PROP C
600,250 PROP 1B
641,710 STPL
719,920 SAFE LU
6,197,865
(E) = Essential
(N) = Necesea ry (M) = Mandated
(R ) Rou tine (D) = Discretion ary