TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: DIRECTOR OF PUBLIC WORKS

DATE: MARCH 4, 2003

SUBJECT: EXPENDITURE PLAN FOR PROPOSITION 12, PROPOSITION 40, AND MEASURE A BOND FUNDS

RECOMMENDATIONS

1. Adopt Resolution 2003 - , a resolution of the City Council of the City of Rancho Palos Verdes approving the application of grant funds for the per capita grant program under Proposition 12, the Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection Bond Act of 2000.
2. Adopt Resolution 2003 - , a resolution of the City Council of the City of Rancho Palos Verdes approving the application of grant funds for the Roberti-Z’berg-Harris urban Proposition 12, open space and recreation program under the safe neighborhood parks, clean water, clean air, and Coastal Protection Bond Act of 2000
3. Approve an expenditure plan that programs Proposition 12 Bond Act funds, Proposition 40 Bond Act funds, and remaining Measure A funds to the building expansion project at Point Vicente and the acquisition of open space in the Portuguese Bend area.
4. Re-program Measure A funds currently programmed for the Abalone Cove Beach project to the building expansion project at Point Vicente Interpretive Center.
5. Delete the Abalone Cove Beach Improvement project from the Capital Improvement Program, until an alternative funding source is identified.
6. Authorize staff to formally withdraw the Abalone Cove Beach Improvement project from review by the California Coastal Commission.

BACKGROUND

This report presents a comprehensive look at how $ 4.7 million of park acquisition and development funds could be programmed in the City of Rancho Palos Verdes over the next several years. The report recommends a revision to how funds are currently programmed, and recommends how new funding sources could be used to fund new activities.

The funds are available from three bond acts approved by the voters over the past several years. One of the bond acts, County Bond Measure A, has been a significant funding source for city for almost ten years, and a significant portion of its revenues have been expended. However, two state bond acts, Proposition 12 and Proposition 40, passed by the voters in 2000 and 2002 respectfully, have been discussed only briefly by the City Council and none of their funds have been expended or programmed.

Finally the report requests that the City Council adopt two resolutions that enable staff to apply for Proposition 12 funds. Adoption of these two resolutions, which do not require a commitment to any specific project, are time sensitive and need to be presented to the State of California no later than April 1, 2003.

DISCUSSION

In November 1992 and 1996, the voters of Los Angeles County approved Measure A, the Los Angeles County Safe Neighborhood Parks Proposition of 1992 and 1996. These acts make $ 11,705,019 available to the City of Rancho Palos Verdes for its park acquisition and development needs. To date a total of $ 8,844,175 has been expended; $ 2,860,844 is available, most of which is programmed for the Abalone Cove Beach Improvement Project and the Point Vicente Interpretive Center Building Expansion Project.

In March 2000 the voters of California passed Proposition 12 the "Safe Neighborhood Parks, Clean Water, Clean Air and Coastal Protection Bond Act of 2000". This act makes $ 538,878 available to the City of Rancho Palos Verdes for its park acquisition and development needs. These funds have not been expended or programmed towards any project.

In March 2002 the voters of California passed Proposition 40 the "California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Act of 2002". This act makes $ 332,500 available to the City of Rancho Palos Verdes for its park acquisition and development needs. These funds have not been expended or programmed towards any projects.

A summary of funding available from these three bond acts is as follows:

Source	Available
Measure A- (unexpended balance)	$ 2,860,844
Proposition 12	$ 538,878
Proposition 40	$ 332,500
Total	$ 3,732,222

The FY 2002 – 03 budget includes the following projects:

Point Vicente Interpretive Building Expansion:

Total Project Costs:	$ 3,337,203
Funding Sources:
Measure A	$ 2,278,103
Quimby Fund	282,900
EET Fund (overestimated)	776,200

Abalone Cove Beach Improvements:

Total Project Costs:	$ 422,828
Funding Sources:
Measure A	$ 422,828

Since the 02 – 03 budget was adopted the following new facts have developed that impact these project budgets:

Point Vicente Interpretive Building Expansion

The most recent engineer’s estimate concludes that construction costs have increased by approximately five percent. In addition the project as now proposed includes funding in the amount of $175,000 for an exhibit that will be constructed as part of the building. The City Council approved this expenditure in May 1999. The revised project budget is $3.5 million

Abalone Cove Beach Improvements

For the past two years this project has been under review by the California Coastal Commission. In this process the Coastal Commission has requested revisions to the project. The original project estimate was $550,000. The most recent engineer’s estimate estimates project costs at approximately $1 million.

Fund balance in the EET Fund

Developers pay Environmental Excise Taxes at the time a building permit is issued. The adopted FY 02 – 03 budget overestimated EET revenues by approximately $150,000. Thus there are less EET funds available for programming than was assumed by the adopted budget.

Open Space Acquisition

The City Council gave conceptual approval for funding $1 million towards the purchase of open space in the Portuguese Bend area. No funding source has been identified.

Staff’s perceived shift in City Council priorities

Although no formal action has been taken by the City Council it has been staff’s perception that there has been a shift of priorities away from the development of the Abalone Cove Beach Improvements towards a plan to acquire open space.

Given the new sources of funding, the new facts listed above, and in keeping with the city’s goal of programming the expenditure of the more restricted funds before less restricted funds, the funding plan attached as Exhibit A is proposed for the acquisition and development of parks.

This funding plan departs from the current funding plan in the following areas:

• All funds available to the City of Rancho Palos Verdes from Measure A, Proposition 12, and Proposition 40 are now programmed.
• All Measure A funds allocated to the Abalone Cove Beach Improvement Project have been re programmed. This means this project will not proceed until and unless an alternative funding source is identified.
• Measure A funds that have been expended to date on the Abalone Cove Beach Project have been reimbursed with EET funds.
• $1 million is programmed towards the acquisition of open space in the Portuguese Bend Area.
• Point Vicente Building Expansion project, including a built in exhibit, is now fully funded.
• Excess EET funds have been re-programmed from the Point Vicente Expansion Project to uncommitted reserves. Staff recommends that these funds remain in reserve until the building project is completed to fund any need for additional funding for that project.

CONCLUSIONS

Adopting the staff recommendations approves a plan for how park acquisition and development could be funded in the City of Rancho Palos Verdes for the next several years. The plan reprograms funding from the Abalone Cove Beach project to the Point Vicente Expansion project and provides new funding for the acquisition of open space in the Portuguese Bend area.

Adopting the staff recommendations also authorizes staff to apply for Proposition 12 Funds.

ALTERNATIVE ACTION

Postpone action on the approval of an expenditure plan, but approve staff recommendations one and two that authorize staff to apply for Proposition 12 funds from the State of California without a project specific commitment.

FISCAL IMPACT

Staff could identify no impacts to the recommendation actions.

Submitted by,
Dean E. Allison
Director of Public Works

Reviewed by,
Les Evans, City Manager

Attachments:

Exhibit A – Expenditure Plan for Park Acquisition and Development

Resolution 2003 –

Resolution 2003 –

RESOLUTION NO. 2003-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING THE APPLICANT TO APPLY FOR GRANT FUNDS FOR THE ROBERTI-Z’BERG-HARRIS URBAN OPEN SPACE AND RECREATION PROGRAM UNDER THE SAFE NEIGHBORHOOD PARKS, CLEAN WATER, CLEAN AIR, AND COASTAL PROTECTION BOND ACT OF 2000

WHEREAS, the people of the State of California have enacted the Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection Bond Act of 2000 which provides funds for the Roberti-Z’Berg-Harris Open Space and Recreation Program; and

WHEREAS, the Legislature of the State of California has enacted the Roberti-Z’Berg-Harris Open Space and Recreation Program, which provides funds to certain political subdivisions of the State of California for acquiring lands and for developing facilities to meet urban recreational needs; and

WHEREAS, the California Department of Parks and Recreation has been delegated the responsibility for the administration of the grant program, setting up necessary procedures; and

WHEREAS, said procedures established by the California Department of Parks and Recreation require the Applicant’s Governing Body to certify by resolution the approval of the Applicant to apply for the Roberti-Z’Berg-Harris allocation; and

WHEREAS, the Applicant will enter into a Contract with the State of California;

BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES:

That the City Council of the City of Rancho Palos Verdes:

1. Approves the filing of an Application for local assistance funds from the Roberti-Z’Berg-Harris Urban Open Space and Recreation Program under the Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection Bond Act of 2000; and

2. Certifies that the Applicant has or will have sufficient funds to operate and maintain the project(s); and
3. Certifies that the Applicant has reviewed, understands and agrees to the General Provisions contained in the Contract shown in the Procedural Guide; and
4. Appoints the Director of Public Works as agent to conduct all negotiations, execute and submit all documents including, but not limited to, Applications, agreements, payment requests and so on, which may be necessary for the completion of the Project(s).

PASSED, APPROVED, AND ADOPTED THE 4^th DAY OF MARCH, 2003.

_____________________

MAYOR

ATTEST:

__________________

CITY CLERK

State of California )
County of Los Angeles ) ss
City of Rancho Palos Verdes )

I, JO PURCELL, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2003-___ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on March 4, 2003.

_____________________

CITY CLERK

RESOLUTION NO. 2003-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING THE APPLICANT TO APPLY FOR GRANT FUNDS FOR THE PER CAPITA GRANT PROGRAM UNDER THE SAFE NEIGHBORHOOD PARKS, CLEAN WATER, CLEAN AIR, AND COASTAL PROTECTION BOND ACT OF 2000

WHEREAS, the people of the State of California have enacted the Per Capita Grant Program which provides funds to meet the urgent need for safe, open and accessible local park and recreational facilities for increased recreational opportunities that provide positive alternatives to social problems; and

WHEREAS, the California Department of Parks and Recreation has been delegated the responsibility for the administration of the grant program, setting up necessary procedures; and

WHEREAS, said procedures established by the California Department of Parks and Recreation require the Applicant’s Governing Body to certify by resolution the approval of the Applicant to apply for the Per Capita Allocation, and

WHEREAS, the Applicant will enter into a Contract with the State of California;

BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES:

That the City Council of the City of Rancho Palos Verdes:

1. Approves the filing of an Application for local assistance funds from the Per Capita Grant Program under the Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection Bond Act of 2000; and
2. Certifies that the Applicant has or will have sufficient funds to operate and maintain the project(s); and
3. Certifies that the Applicant has reviewed, understands and agrees to the General Provisions contained in the Contract shown in the Procedural Guide; and
4. Appoints the Director of Public Works as agent to conduct all negotiations, execute and submit all documents including, but not limited to Applications, agreements, payment requests and so on, which may be necessary for the completion of project(s).

PASSED, APPROVED, AND ADOPTED THE 4^th DAY OF MARCH, 2003.

_____________________
MAYOR

ATTEST:

___________________
CITY CLERK

State of California )
County of Los Angeles ) ss
City of Rancho Palos Verdes )

I, JO PURCELL, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2003-___ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on March 4, 2003.

_____________________
CITY CLERK