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CC - 2010-29 - Joint Resolution - Making Findings required by section 33445 and 33679 of CA Redevelopment Law and Determining that the Construction of Certain Public Improvements for Project Area No. 1 and 20 • RESOLUTION NO. 2010-29 and CDC 2010-15 A JOINT RESOLUTION OF THE ROSEMEAD CITY COUNCIL AND THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION, MAKING THE FINDINGS REQUIRED BY SECTIONS 33445 AND 33679 OF CALIFORNIA REDEVELOPMENT LAW AND DETERMINING THAT THE CONSTRUCTION OF CERTAIN PUBLIC IMPROVEMENTS IS OF BENEFIT TO REDEVELOPMENT PROJECT AREAS NOS. 1 AND 2. WHEREAS, the Rosemead Community Development Commission (the "Commission") is a public body, corporate and politic, duly established and authorized to transact business and exercise powers under and pursuant to the provisions of the Community Redevelopment Law of the State of California, constituting Part I of Division 24 of the Health and Safety Code of the State of California (the "Law"), including the power to expend funds for public improvements for the benefit of Redevelopment Project Areas Number 1 and 2 ("Project Areas"); and WHEREAS, the City of Rosemead ("City") is the legislative body for the community in which the Project Areas are located and pursuant to Health & Safety Code section 33445 is required to consent to payments to be made by its Commission for the provision of public improvements; and WHEREAS, the provision of the public improvements identified herein are consistent with the Commission's Five-Year Implementation Plan Goals adopted for 2005- 2009; and WHEREAS, there are appropriate facts supporting the findings required by Health & Safety Code Sections 33445 and 33679 for the City Council to consent to the Commission's expenditure of funds for provision of funds for the public improvements identified in this Resolution; and WHEREAS, the Resolution is being considered at a properly noticed Public Hearing as required by Health and Safety Code section 33679, and further that the report required by section 33679 has been available with the City Clerk/Commission Secretary for the past two weeks. NOW, THEREFORE, THE ROSEMEAD CITY COUNCIL AND THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION, CALIFORNIA DO HEREBY RESOLVE AS FOLLOWS: SECTION 1. Recitals. The City Council and Commission Board finds and declares that the above recitals are true and correct and incorporates them herein. SECTION 2: Public Improvements. The public improvements that the Commission Board believes are of benefit to the Project Areas (as described in Section 3 herein) are set forth below, including approximate cost estimates for each project. • 0 (i) Replace equipment at Klingerman Park - $50,000 This project includes the removal of an existing playground (excluding swings) to be replaced with a new ADA accessible system and safety surfacing. This project will be completed as soon as possible to ensure that all safety concerns are resolved. A contract for the repairs and replacement will be brought to the Commission on May 25, 2010. The project estimate including all financing costs is $73,400 (ii) Replace northern equipment at Zapopan Park - $50,000 This project includes the removal of an existing playground to be replaced with a new ADA accessible system and safety surfacing. This project will be completed as soon as possible to ensure that all safety concerns are resolved. A contract for the repairs and replacement will be brought to the Commission on May 25, 2010. The project estimate including all financing costs is $73,400. (iii) Replace playground equipment at Rosemead Park - $180,000 Project includes the removal of the existing hilltop and southern playgrounds to be replaced with new ADA accessible systems and safety surfacing. This project will be completed as soon as possible to ensure that all safety concerns are resolved. A contract for the repairs and replacement will be brought to the Commission on May 25, 2010. The project estimate including all financing costs is $264,300. (iv) Construct Aquatic Center at Rosemead Park - $6,520,000 The project is a complete renovation of Rosemead Pool to include demolition of the entire existing facility and construction of new pool, deck area, shade structure and covered bleachers, turf area, chemical and mechanical systems, and bath house. Schematic design development is underway. The next phase of the project would include design development and construction documents, followed by construction. The project would take approximately six months to complete once design development is approved. The project estimate including all financing costs is $9,574,500. (v) Expand Rosemead Community Center and parking Lot - $2.5 to $3.5 Million This project includes the creation of a civic center campus with increased and unified parking between City Hall, the library, and Rosemead Community Recreation Center, expanded pedestrian areas, landscape and lighting improvements, and a 2500 square foot expansion of the RCRC to include offices, teen center, and community computer lab as well as roof/HVAC repairs. Only such portions of the project as allowable under Redevelopment Law would be charged to the Community Development Commission. The project estimate including all financing costs are between $3,671,200 to $5,139,700. (vi) Develop a new neighborhood park at Rush and Walnut Grove - $500,000 Acquisition and development of a parcel currently owned by SCE as a neighborhood park to include turf and landscaped areas, playground, walking path, and benches. The project estimate including all financing costs is $734,250. (vii) Construct new restrooms at Zapopan Park - $212,000 Project includes the demolition and removal of the existing modular restroom at the park to be replaced with a 650 square foot structure. The project estimate including all financing costs is $310,200. (viii) Develop and install 10th Anniversary of 9/11 Memorial at Civic Center - $50,000 The project includes design, creation, and installation on the City Hall Plaza of a public art sculpture to commemorate the 10th Anniversary of 9/11 using an artifact from the World Trade Center. The project estimate including all financing costs is $73,400. (ix) Renovate fields at Rosemead Park - $196,000 to $784,000 The project includes grading and soil preparation of 400,000 square feet of turf area. To hydro-seed the area, the estimate is $196,000; the estimate to sod the same area is $784,000. The project estimate including all financing costs is between $287,850 and $1,151,400. (x) Replace/construct new preschool playground at Rosemead Park - $100,000 Project includes the removal of an existing preschool playground to be replaced with a new ADA accessible system, safety surfacing, and fencing. The project estimate including all financing costs is $146,850. SECTION 3. Findings Required by Health & Safety Code Sections 33445 and 33679. The City Council and Commission Board hereby determine that: (i) The use of Commission funds is of benefit to the project areas. The Projects are of benefit to the Redevelopment Project Areas as they will improve community amenities for businesses and residences within the project areas. The ability to provide amenities to the community will help to improve property values and assist with the sale and resale of new and existing homes. Projects such as the development of the Aquatics Center or the expansion of the Rosemead Community Center will enhance the Project Area and will provide new resources. These projects will also assist in the growth of existing and new businesses by attracting additional patrons and residents to the project areas, thereby helping to reduce stagnant economic conditions. (ii) There is no other reasonable means of financing the improvements. At this time, no other reasonable means of financing the Projects are available from the City as the City is using its funds to undertake other projects, services and public improvements throughout the City. The City's budget does not currently project any surplus which could be utilized for these improvements. Accordingly, bonding against current City revenues is also not an option. Further, given the current economic condition of California, the City believes that all fund reserves must be utilized for emergencies and further reductions in tax and other revenues to ensure that the City can continue to fund its • • basic ongoing services and maintain its existing facilities. Finally, given the current economic conditions in California, the City does not believe that any new taxes or assessments would receive the appropriate voter approval levels to finance these improvements. The only available funding source for the improvements is bonding which does not require additional taxes be levied or additional assessments to be imposed. (iii) Funding the project will assist in the elimination of one or more blighting conditions inside the project areas. The payment of funds for the Projects will assist in the elimination of blighting conditions inside the Redevelopment Project Areas by improving the appearance of community amenities and facilities in the City of Rosemead and Redevelopment Project Area. It is anticipated that such improved appearance and enhanced facilities will attract additional new investment into the project areas in terms of new businesses and improvements to existing businesses in light of additional residential patronage and use of these nearby public facilities-or at least minimize the likelihood of any continued decline of the project areas as a result of decreased patronage resulting from deteriorating public facilities in the project areas. (iv) Consistency with 5-Year Plan The use of Commission funds for these Projects is consistent with the Commission's 5- year Implementation Plan (2009-2014). The Plan indicates the goal of eliminating blighting influences, including deteriorating buildings, incompatible land uses, obsolete structures, and other environmental, economic, and social deficiencies; improve the overall appearance of existing buildings, streets, parking areas and other facilities, public and private; and assure that all buildings, new and old, are safe for persons and business to occupy. Additional plan goals include providing new or improved public improvements and facilities, the absence or inadequacy of which constitute an economic liability of the City, are impediments to development, and which cannot be remedied by private or governmental action without redevelopment. The Implementation Plan also specifies capital improvement projects to improve the public infrastructure and facilities in the Project Areas. The plan specifically indentifies that the Commission may also assist in funding the construction of new and rehabilitated public facilities within or serving the Project Areas. Projects are intended to stimulate the growth of existing and new businesses and reduce stagnant economic conditions. (v) Redevelopment Purpose for funding Public Improvements As set forth herein, the redevelopment purpose for the funding of the public improvements described herein is the elimination of blight within the project areas. SECTION 4. Council Consent to use of Funds. The City Council hereby consents to the use of Rosemead Community Development Commission Funds to fund the improvements identified herein to the extent that the Commission Board approves the use of any of the Commission's funds for such purpose. The City Council and Commission Board understand that the actual costs of public improvements identified herein could vary from the cost • • estimates set forth herein. However, neither the City Council nor the Commission Board find that such a variance, even if material, would alter the findings set forth in this Resolution. SECTION 5. Effective Date: This Resolution shall take effect from and after its date of passage; approval and adoption. SECTION 6. Certification: The City Clerk and the Commission Secretary shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 1- day of May, 2010. ARY TA R, MAYOR/C MISSION CHAIR ATTEST: )l 9 93. GLORIA MOLLEDA, CITY CLERK/COMMISSION SECRETARY APPROVED AS TO FORM Josep ontes, J Attorney/Commission Counsel • STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS. CITY OF ROSEMEAD 1 • I, Gloria Molleda, City Clerk/Commission Secretary of the City of Rosemead, do hereby certify that the foregoing City Council Resolution No. 2010.29 and CDC Resolution No. 2010-15 being: A JOINT RESOLUTION OF THE ROSEMEAD CITY COUNCIL AND THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION, MAKING THE FINDINGS REQUIRED BY SECTION 33554 AND 33679 OF CALIFORNIA REDEVELOPMENT LAW AND DETERMINING THAT THE CONSTRUCTION OF CERTAIN PUBLIC IMPROVEMENT was duly and regularly approved and adopted by the Rosemead City Council/Community Development Commission on the 11th of May, 201010, by the following vote to wit: Yes: Armenta, Clark, Low, Ly, No: Taylor Abstain: None Absent: None Gloria Molleda City Clerk/Commission Secretary E M F 5 O F 1 9 ~~ORaTEO i9~ • ROSEMEAD CITY COUNCIL & COMMISSION STAFF REPORT TO: THE HONORABLE MAYOR AND CHAIRMAN AND MEMBERS OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION FROM: JEFF ALLRED, CITY MANAGER/EXECUTIVE DIRECTOR DATE: MAY 11, 2010 SUBJECT: PUBLIC HEARING ON THE CONSENT TO USE COMMUNITY DEVELOPMENT FUNDS FOR FUTURE CAPITAL IMPROVEMENT PROJECTS PURSUANT TO HEALTH & SAFETY CODE SECTIONS 33445 AND 33679 SUMMARY On March 9, 2010, the City Council unanimously approved the project list component of the Parks, Recreation and General Facilities Master Plan. Contained in the list are thirty-two identified projects within the City that are to be considered. There are ten projects that require the use of Commission funds. Redevelopment Law (Health and Safety Code Sections 33445 and 33679) requires that, if redevelopment funds are to be used to pay for improvements which will be publicly owned, both within and adjacent to the project area, the City Council and the Community Development Commission must list and describe the improvements and the costs associated therewith, as well as make the following findings: a) that the proposed improvements are of benefit to the Project Areas or the immediate neighborhood in which the projects are located; b) that there are no other reasonable means of financing for the proposed projects available to the community; c) that the projects will assist in the elimination of blighting conditions in the Project Areas and are consistent with the adopted 5-year Implementation Plan. Staff Recommendation Staff recommends the following: 1. That the Community Development Commission and City Council adopt Joint (Resolution No--20_1'0=29"and-CDC_201.0-1 (Attachment A) making the appropriate findings under Health and Safety Code Section 33445; and 2. That the Community Development Commission and City Council adopt Resolutions No. 2010-30 (Attachment B) and CDC No. 2010-16 (Attachment C) appropriating $280,000 from the existing 2006A Bond proceeds to fund the three urgent playground equipment projects listed as priorities 1 through 3 in this report. ITEM NO. _7 F APPROVED FOR CITY COUNCIL AGENDA: 0 • City Council/Community Development Commission Meeting May 11, 2010 Paoe 2 of 6 ANALYSIS The following is a detailed list of the projects included in the master plan that require funding through the Commission. As required under the Code, the detailed section for each project includes the total anticipated cost of the project including assumed interest of 6.0% for a term of 13 years. The cost estimate provided in the project title are the anticipated construction costs that have been discussed previously. 1. Replace equipment at Klingerman Park - $50,000 This project includes the removal of an existing playground (excluding swings) to be replaced with a new ADA accessible system and safety surfacing. This project will be completed as soon as possible to ensure that all safety concerns are resolved. A contract for the repairs and replacement will be brought to the Commission on May 25, 2010. The project estimate including all financing costs is $73,400 2. Replace northern equipment at Zapopan Park - $50,000 This project includes the removal of an existing playground to be replaced with a new ADA accessible system and safety surfacing. This project will be completed as soon as possible to ensure that all safety concerns are resolved. A contract for the repairs and replacement will be brought to the Commission on May 25, 2010. The project estimate including all financing costs is $73,400. 3. Replace playground equipment at Rosemead Park - $180,000 Project includes the removal of the existing hilltop and southern playgrounds to be replaced with new ADA accessible systems and safety surfacing. This project will be completed as soon as possible to ensure that all safety concerns are resolved. A contract for the repairs and replacement will be brought to the Commission on May 25, 2010. The project estimate including all financing costs is $264,300. 4. Construct Aquatic Center at Rosemead Park - $6,520,000 The project is a complete renovation of Rosemead Pool to include demolition of the entire existing facility and construction of new pool, deck area, shade structure and covered bleachers, turf area, chemical and mechanical systems, and bath house. Schematic design development is underway. The next phase of the project would include design development and construction documents, followed by construction. The project would take approximately six months to complete once design development is approved. The project estimate including all financing costs is $9,574,500. • 0 City Council/Community Development Commission Meeting May 11, 2010 Paoe 3 of 6 5. Expand Rosemead Community Center and parking Lot - $2.5 to $3.5 Million This project includes the creation of a civic center campus with increased and unified parking between City Hall, the library, and Rosemead Community Recreation Center, expanded pedestrian areas, landscape and lighting improvements, and a 2500 square foot expansion of the RCRC to include offices, teen center, and community computer lab as well as roof/HVAC repairs. Only such portions of the project as allowable under Redevelopment Law would be charged to the Community Development Commission. The project estimate including all financing costs are between $3,671,200 to $5,139,700. 6. Develop a new neighborhood park at Rush and Walnut Grove - $500,000 Acquisition and development of a parcel currently owned by SCE as a neighborhood park to include turf and landscaped areas, playground, walking path, and benches. The project estimate including all financing costs is $734,250. 7. Construct new restrooms at Zapopan Park - $212,000 Project includes the demolition and removal of the existing modular restroom at the park to be replaced with a 650 square foot structure. The project estimate including all financing costs is $310,200. 8. Develop and install 10th Anniversary of 9/11 Memorial at Civic Center - $50,000 The project includes design, creation, and installation on the City Hall Plaza of a public art sculpture to commemorate the 10th Anniversary of 9/11 using an artifact from the World Trade Center. The project estimate including all financing costs is $73,400. 9. Renovate fields at Rosemead Park - $196,000 to $784,000 The project includes grading and soil preparation of 400,000 square feet of turf area. To hydro-seed the area, the estimate is $196,000; the estimate to sod the same area is $784,000. The project estimate including all financing costs is between $287,850 and $1,151,400. 10. Replace/construct new preschool playground at Rosemead Park - $100,000 Project includes the removal of an existing preschool playground to be replaced with a new ADA accessible system, safety surfacing, and fencing. The project estimate including all financing costs is $146,850. In addition, the proposed Aquatics Center at Garvey Park can be constructed at an estimated cost of $3,320,000. The primary anticipated source of these funds is the repayment of an outstanding loan to the City's General Fund from the Community Development Commission's proposed bond proceeds. • City Council/Community Development Commission Meeting May 11, 2010 Page 4 of 6 Health and Safety Code Sections 33445 and 33679 Findings and Requirements As stated above, Health and Safety Code Section 33445 requires that the City Council consent to the Commission expenditures for public improvement projects and that the Commission and Council find that: 1) The use of Commission funds is of benefit to the project areas. The Projects are of benefit to the Redevelopment Project Areas as they will improve community amenities for businesses and residences within the project areas. The ability to provide amenities to the community will help to improve property values and assist with the sale and resale of new and existing homes. Projects such as the development of the Aquatics Center or the expansion of the Rosemead Community Center will enhance the Project Area and will provide new resources. These projects will also assist in the growth of existing and new businesses by attracting additional patrons and residents to the project areas, thereby helping to reduce stagnant economic conditions. 2) There is no other reasonable means of financing the improvements. At this time, no other reasonable means of financing the Projects are available from the City as the City is using its funds to undertake other projects, services and public improvements throughout the City. The City's budget does not currently project any surplus which could be utilized for these improvements. Accordingly, bonding against current City revenues is also not an option. Further, given the current economic condition of California, the City believes that all fund reserves must be utilized for emergencies and further reductions in tax and other revenues to ensure that the City can continue to fund its basic ongoing services and maintain its existing facilities. Finally, given the current economic conditions in California, the City does not believe that any new taxes or assessments would receive the appropriate voter approval levels to finance these improvements. The only available funding source for the improvements is bonding which does not require that additional taxes be levied or additional assessments imposed. 3) Funding the project will assist in the elimination of one or more blighting conditions inside the project areas. The payment of funds for the Projects will assist in the elimination of blighting conditions inside the Redevelopment Project Areas by improving the appearance of community amenities and facilities in the City of Rosemead and Redevelopment Project Area. It is anticipated that such improved appearance and enhanced facilities will attract additional new investment into the project areas in terms of new businesses and improvements to existing businesses in light of additional residential patronage and use of these nearby public facilities-or at least minimize the likelihood of any continued • 0 City Council/Community Development Commission Meeting May 11, 2010 Page 5 of 6 decline of the project areas as a result of decreased patronage resulting from deteriorating public facilities in the project areas. 4) Consistency with 5-Year Plan The use of Commission funds for these Projects is consistent with the Commission's 5-year Implementation Plan (2009-2014). The Plan indicates the goal of eliminating blighting influences, including deteriorating buildings, incompatible land uses, obsolete structures, and other environmental, economic, and social deficiencies; improve the overall appearance of existing buildings, streets, parking areas and other facilities, public and private; and assure that all buildings, new and old, are safe for persons and business to occupy. Additional plan goals include providing new or improved public improvements and facilities, the absence or inadequacy of which constitute an economic liability of the City, are impediments to development, and which cannot be remedied by private or governmental action without redevelopment. The Implementation Plan also specifies capital improvement projects to improve the public infrastructure and facilities in the Project Areas. The plan specifically indentifies that the Commission may also assist in funding the construction of new and rehabilitated public facilities within or serving the Project Areas. Projects are intended to stimulate the growth of existing and new businesses and reduce stagnant economic conditions. Development of the Parks, Recreation, and General Facilities master plan has aided in identifying the public projects requiring rehabilitation. Section 33679 requires that a public hearing be held on the funding of the improvements. This staff report satisfies the requirements of section 33679 that a report be prepared and available prior to the public hearing. The report contains the required list of improvements, the costs associated therewith, the findings required by section 33445, and, as stated above, the redevelopment purpose for the funding of such facilities is the elimination of blight within the project areas. FISCAL IMPACT A request to appropriate $280,000 from the existing 2006A bond proceeds is included to expedite the work necessary to complete the work for the first three projects listed. Staff is not recommending a specific allocation for any others projects at this time, but will be bringing back the items individually for an allocation of funds and specific project approval. It is anticipated that there will be approximately $7 million of proceeds from the proposed 2010 Tax Allocation Bonds for the funding of the improvements described in this report. PUBLIC NOTICE PROCESS This item has been noticed as required by Health and Safety Code section 33679 and through the regular agenda notification process and a copy of this report has been available with the City Clerk's office since the date of the first public notice publication. • City Council/Community Development Commission Meeting May 11, 2010 Paqe 6 of 6 Submitted by: vylam' Matthew E. Hawkesworth Assistant City Manager 10 Attachments: A - Joint City Council/Community Development Commission Resolution No. 2010-29 and CDC 2010-15 B - City Council Resolution No. 2010-30 C - Community Development Commission Resolution No. 2010-16