TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: DIRECTOR OF PUBLIC WORKS
DATE: JULY 5, 2005
SUBJECT: GRANT APPLICATIONS FOR ACQUISITION OF OPEN SPACE
STAFF COORDINATOR: LAUREN RAMEZANI, SR. ADMINISTRATIVE ANALYST
The revised FY 04-05 budget includes $1,000,000 from Proposition 12, Proposition 40 and Measure A monies toward the acquisition of open space in the Portuguese Bend area. This staff report requests Council approval to move forward and work with the State of California and County of Los Angeles to obtain the Proposition 12, Proposition 40 and Measure A funds that make up the City's portion of cost, up to a total of $1,000,000, to purchase one of the two private properties (the Hon Property) that make up the Portuguese Bend Nature Preserve.
The Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection Bond Act of 2000 (Proposition 12) and the California Clean Water, Clean Air, Safe Neighborhood Parks Coastal Protection Bond Act of 2002 (Proposition 40), responding to the recreational and open-space needs of a growing population and expanding urban communities, is intended to revive state stewardship of natural resources by investing in neighborhood parks and state parks, clean water protection and coastal beaches and scenic areas. The City of RPV has received approval for $538,878 in Proposition 12 grant funds ($408,000 in Per Capita and $130,878 in Roberti-Z'Berg-Harris Block Grant funds) and $331,221 ($220,000 in Per Capita and $85,930 in Roberti-Z'Berg-Harris Block Grant funds).
The Safe Neighborhood Parks Proposition of 1992 and 1996 (Commonly referred as Measure A) provides $860 million Countywide for park and open space improvement projects. Out of the City’s total allocation of $11,705,019, the amount of $155,913 remains earmarked specifically for the acquisition of open space in the vicinity of the Portuguese Bend area. This remaining balance cannot be used for any development or construction project. Additionally, Measure A allocates annual funds to the City for maintenance and servicing (M&S) of any Measure A funded project and/or acquisition.
The City and the Palos Verdes Peninsula Land Conservancy (PV Conservancy) have been working together to acquire property to incorporate into a nature preserve. Negotiations with the owner of properties (Hon Property) that lie largely within the Portuguese Bend area (approximately 424 acres) and within Agua Amarga Canyon (approximately 39 acres) were completed and an agreement has been approved by the City Council on November 2004. The 463 acres will be purchased for the price of $17,057,000, which is $37,000 per acre. The City has committed to pay $1,000,000 towards this purchase. The total purchase price including closing and misc. costs is $17,250,000.
PROPOSITION 12 & PROPOSITION 40: All of the City’s Proposition 12 and 40 funds are already encumbered by the State for the City, and are awaiting a City application to allocate the funds to specific City projects. By approving staff’s recommendation, those funds will be allocated towards this acquisition, and will go towards the City’s portion. (the only previous grant application was for PVIC in the amount of $27,300). Any amounts not used for this acquisition, will remain available for use for future eligible projects.
MEASURE A: A total of $155,913 of Measure A funds has been earmarked specifically for open space acquisition in the Portuguese Bend Area. Staff recommends utilizing $140,000 of the total available funds now, with the balance of $15,913 in Measure A funds to be used toward any future purchase of open space in the Portuguese Bend area. By utilizing Measure A funding for acquisitions, it enables the use of M&S funds
for those acquisitions, and that will help reduce future General Fund expenditures for maintenance of the properties.
RETENTION: For open space acquisitions, Proposition 12 and 40 will pay 80% of the grant amount into escrow with the balance of the 20% (retention) paid upon completion of the purchase and closing of the grant. Measure A will pay 90% of the grant amount into escrow with the balance paid upon completion of the purchase. An escrow has already been opened. When all of the City's grant applications are initially approved and funds have been put into escrow, the City will be short approximately $215,200 (which are the grant retention amounts plus funds for misc. minor costs). Therefore, staff recommends the City front up to $215,200 from the Capital Improvement Projects (CIP) fund in order to have a total of $1,000,000 in escrow. Once the purchase is complete, and retention funds released, the total amount borrowed will be returned back to the CIP fund. These funds are from the CIP reserve balance. Borrowing these funds will not affect any current or pending CIP projects.
The City has deposited $50,000 from Environmental Excise Tax (EET) in escrow as part of the purchase agreement. If that transaction (purchase of the 463 acres) is not completed, that money will not be refunded. However, the City's $50,000 will be used, along with the $50,000 match placed into escrow by the PV Conservancy, to purchase approximately 3 acres at the top of Agua Amarga Canyon. If the acquisition does occur, once escrow is closed, the $50,000 in EET funds will be returned to the City.
Additionally, the City of Rolling Hills (RH) has recently pledged their Proposition 40 Per Capita grant in the amount of $220,000 to the City towards the acquisition of open space. These funds will go toward the PV Conservancy’s share, while the City’s share will remain the same $1,000,000. This item is discussed in a separate staff report. Additionally, RH has allocated the amount of $5,199 in Proposition 40 RZH funds to the City. This item will be brought to the City Council next month.
If approved, staff will apply up to:
Dean E. Allison, Director of Public Works
Les Evans, City Manager
Attachment: Resolution 2005-
RESOLUTION NO. 2005-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, AMENDING RESOLUTION 2005-53, THE BUDGET APPROPRIATION
FOR FY05-06, FOR BUDGET ADJUSTMENTS TO THE CITY'S CAPITAL IMPROVEMENT PROJECTS FUND
WHEREAS, Section 3.32 of the Rancho Palos Verdes Municipal Code provides that all expenditures in excess of budgeted allocations must be by supplemental appropriation of the City Council: and
WHEREAS, on May 31, 2005, the City Council of the City of Rancho Palos Verdes adopted Resolution 2005-53, approving a spending plan and authorizing a budget appropriation for FY05-06: and
WHEREAS, restricted grant funding for a purchase of open space does not pay 100% of the funding prior to the open space purchase; and
WHEREAS, the Capital Improvement Projects (CIP) fund has a sufficient reserve balance to contribute the retention portion of the restricted grant funding to the open space purchase escrow account; and
WHEREAS, once the open space purchase is complete, the retention portion of the restricted grant monies will be re-paid to the CIP fund reserve; and
WHEREAS, the City Council desires that the FY05-06 budget appropriation for CIP expenditures be increased to provide partial cash flow for an open space purchase.
BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES:
The following adjustment be made to the FY05-06 budget:
Adjust the CIP fund budget as follows:
Infrastructure Admin #330-3030-461-69-00 Misc. Expenditure $215,200
PASSED, APPROVED, AND ADOPTED THE 5th DAY OF JULY 2005.
State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )
I, CAROLYNN PETRU, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2005- was duly and regularly passed and adopted by the said City Council at regular meeting thereof held on July 5, 2005.
CITY OF RANCHO PALOS VERDES