TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: DIRECTOR OF PUBLIC WORKS

DATE: NOVEMBER 5, 2003

SUBJECT: FUNDING PLAN, BUDGET RESOLUTION AND GRANT APPLICATION FOR THE EXPANSION OF POINT VICENTE INTERPRETIVE CENTER

Staff Coordinator: Lauren Ramezani, Sr. Administrative Analyst

RECOMMENDATIONS

1. Approve a revised funding plan for the expansion of the Point Vicente Interpretive Center.
2. Adopt Resolution 2003- ___, authorizing the application to the County of Los Angeles Regional Park and Open Space District for transfer of grant funds from the Abalone Cove Beach Improvement Project to the Point Vicente Interpretive Center Expansion project in the amount of $556,682.
3. Authorize the return to the Los Angeles County Regional Park and Open Space District the amount of $129,854, previously paid to the City for Abalone Cove Beach Improvement project administrative costs.
4. Adopt Resolution 2003- ___, amending Resolution 2003-42, the budget appropriation for FY 2003-04, to adjust the City's Quimby, Measure A, Development Impact Mitigation (EET) and Capital Improvements Project Funds.

BACKGROUND

On March 4 2003 the City Council established a $3,500,000 project budget for the Point Vicente Interpretive Center (PVIC) building expansion project and approved a tentative funding plan that programmed Measure A, Quimby, EET and Proposition 40 funds for that project. On that evening the City also cancelled the Abalone Cove Beach project, and approved reimbursement for Measure A funds spent to date on that project. Although a funding plan was discussed, a formal budget adjustment was not adopted.

Since March 2003, additional Quimby funds have become available. This staff report recommends a spending plan that maintains the March 2003 total project budget, and revises the March 2003 funding plan by increasing Quimby funding, and reducing EET funding. This revised funding plan is consistent with the city’s practice of maximizing the use of more restrictive funding prior to using other less restrictive funds.

DISCUSSION

The staff recommendations will revise the project budget and funding plan as follows:

The proposed plan:

1. Maintains the PVIC project budget at $3,500,000.
2. Increases the Quimby funding by $55,000.
3. Reduces EET funding by $45,000.

One final but important aspect of the proposed funding plan is that it places $10,000 of Measure A funds in reserve for a future unnamed capital project. Staff makes this recommendation to take advantage of the fact that if Measure A funds are used in part to construct a capital improvement, Measure A maintenance funds – rather than General Funds – may be used to maintain that improvement.

The PVIC project is scheduled to advertise for bids this month. Once bids are opened in early 2004, staff may need to request additional budget modifications.

ALTERNATIVE

One alternative would be to establish a funding plan other than that proposed by staff.

CONCLUSION

Adopting the staff recommendations will establish an overall project budget for the Point Vicente Interpretive Center of $3,500,000, and approve a funding plan which utilizes Measure A, Quimby, and EET funds. In addition the Measure A program will be reimbursed from EET funds for costs to date for the Abalone Cove project.

FISCAL IMPACT

Adopting the staff recommendation will increase the overall project budget for the Point Vicente Interpretive Center from $3,177,400 to $3,500,000. Although this is an increase over what is currently budgeted, it is consistent with the direction from the City Council in March 2003

Respectfully Submitted,

Dean E. Allison, Director of Public Works

Reviewed by:

Les Evans, City Manager

Attachment: Resolution 2003- ___ , Project Application

Resolution 2003- ___, Budget Adjustment