OB - Item 3A - Capital Improvement Projects Funded By Existing Bond ProceedsROSEMEAD SUCCESSOR
AGENCY STAFF REPORT
TO: THE HONORABLE CHAIR AND BOARD MEMBERS
FROM: MATTHEW HAWKESWORTH, ASSISTANT CITY MANAGER
DATE: MAY 13, 2013
SUBJECT: CAPITAL IMPROVEMENT PROJECTS FUNDED BY EXISTING BOND
PROCEEDS
SUMMARY
The Successor Agency received its Finding of Completion (FOC) on April 18, 2013
(Attachment A). The FOC permits the Success Agency to utilize proceeds derived from
bonds issued prior to January 1, 2011 in a manner consistent with the original bond
covenants per Health and Safety Code section 34191.4(c). The former Rosemead
Community Development Commission issued tax increment bonds in July 2010 in order
to the fund several critical capital improvement projects in the City. Some projects were
completed prior to the dissolution of redevelopment; however, approximately $7.0 million
of bond proceeds are still being held by the Successor Agency for the remaining projects.
These projects include:
1. Rosemead Community Center and Public Plaza Expansion and Construction
2. Zapopan Park Improvements
3. Rosemead Park Improvements (Fitness and playground equipment)
4. Sewer System Expansion
5. Valley Blvd. Street Improvements
6. Rosemead Park Turf Improvements
7. Park Development at Rush & Walnut Grove
Over the past two years while the Successor Agency worked through all the objectives to
obtain the FOC, costs have increased and the economy has changed and the completion
of all the projects may no longer be obtainable, but the City is prepared to move forward
with the most critical projects as soon as possible. In order to move forward, the
Successor Agency must comply with Health and Safety Code section 34191.4(c), which
is included as Attachment B. Per this section of the code, the projects must be listed on
the Recognized Obligation Payment Schedule (ROPS), which the Successor Agency has
done since the first ROPS was submitted to the Department of Finance. These projects
have remained on the ROPS and have been included and approved on every subsequent
ROPS. Staff is seeking direction from the Oversight Board to confirm the inclusion of the
capital improvement projects on the ROPS and authorize the staff to move forward with
the projects in a manner consistent with the City's municipal code.
jTE1V NO- 3 -
Rosemead Successor Agency Oversight Board
May 13, 2013
Page 2 of 4
Staff Recommendation:
That the Oversight Board adopt Resolution 2013 -0003 reaffirming the decision to include
the capital improvement projects on the ROPS and authorize City staff to move forwad
with the projects in a manner consistent with the City's municipal code.
BACKGROUND
The Rosemead Redevelopment Commission issued bonds in 2006 and 2010 to enable the
construction and renovation of a number of community improvement projects to provide
revitalization and the rehabilitation of numerous community amenities. The City completed its
General Plan in 2008 and subsequently began the development of the Parks and Facilities Master
Plan in January 2009. The purpose of this master plan was to identify deficiencies within the
community's facilities and parks to create a long -term capital improvement plan. Through this
plan, the City and Commission identified several improvement projects which would require a
partnership with the local school districts and the library to fulfill. While some projects, such as
the construction of an all- weather track at Rosemead High School, the complete reconstruction
of the Rosemead Aquatic Center which is used by both Rosemead and San Gabriel High School,
phases 1 and 2 of the Civic Center, Rosemead Community Center and Library complex
renovation have been completed, there are numerous other projects that need to be finished. The
remaining projects will continue to build upon these partnerships to provide much needed
resources and renovations to the community. These seven projects have been in the works for
many years and several have already undergone design work, engineering, community outreach
and some have had the initial phases of construction completed.
Rosemead Community Center and Public Plaza Expansion and Construction
This project was developed in four phases. The City Council first took action to approve this
project as part of the Parks and Facilities Master Plan on February 23, 2010. This project was
subsequently approved by Commission resolution CDC 2010 -15 on May 11, 2010 as part of the
2010 bond issuance. The previous parking lot for the Community Center, Library and City Hall
was in great disrepair with significant drainage problems, insufficient ADA accessibility and
insufficient parking. While much of the parking lot is owned by the County of Los Angeles, the
City recognized that the County did not have the financial resources available to make the
necessary improvements. Therefore, the City took the lead in development a project that would
benefit both parties while requiring no funds from the County to complete.
Phases 1 and 2 include the removal of a block wall dividing the parking lot in half, the complete
demolition of the east and west sides of the parking lot and the reconstruction of a new parking
lot with additional parking, a public corridor connecting all the sites. These first two phases have
been completed and the City is prepared to continue with phases 3 and 4 of the project. Phase
3 includes the demolition of the parking lot between City Hall and the Library, and the construction
of a new public plaza, which will provide an outdoor space for residents and library patrons as
well as a center for numerous community events throughout the year. The lack of completion of
this phase has resulted in serious drainage problems due to the different grades between the
completed phases and existing areas.
Phase 4 of the projects includes the expansion and renovation of the Rosemead Community
Center. This community center serves as a central hub for a variety of community programs
serving all ages. Due to the age of the facility, there are numerous problems with the roof and
HVAC systems along with ADA Accessibility issues. The City had received grant funds for the
HVAC system and roof repairs and those projects are complete. The City also received a grant
for many of the interior renovations, and recently awarded a contract for the completion of the
Rosemead Successor Agency Oversight Board
May 13, 2013
Page 3 of 4
interior. The remaining work for the community center includes the complete reconstruction of the
restrooms and doorways to ensure ADA compliance, the addition of a computer lab, replacement
of all the flooring, repainting the interior and exterior of the center along with the construction of a
new building directly to the east to provide additional space for meetings and activities.
Zapopan Park Improvements
The improvements at Zapopan Park were also part of the initial Parks and Facilities Master Plan
and subsequently approved by the Commission with Resolution CDC 2010 -15. Zapopan Park is
located on Garvey Avenue in the Southern California Edison (SCE) transmission corridor. Over
the years this park has become a local spot for homeless encampments and illegal drinking and
vending. In an effort to make improvements to this critical commercial corridor and to create a
better atmosphere for both residents and businesses, a plan for significant renovations was
developed. Along with necessary ADA accessibility improvements to bring the park into
compliance with law, plans were developed to add additional parking, construct new restrooms,
replace playground equipment, and construct a walking track similar to the'' /2 -mile track that was
previously constructed at Rosemead Park. The required land survey was completed for this park
and the Commission was prepared to issue a contract for architectural design work when the
project was put on hold in 2011. The original estimate for this project was $750,000; however,
staff believes that the total cost of construction will likely be $1.0 million due to cost increases.
Rosemead Park Improvements
Rosemead Park is the City's largest park and is home of the many of the City's community events
such as the Fourth of July Carnival /Fireworks Show and the Fall Fiesta celebration. Additionally,
several of the City's youth sports league use this park for practices and games. Due to the large
number of renovations and improvements that were necessary at this location, the projects were
to be spread out in phases to ensure that as much of the parkas possible remained functional
and in use by the Community. Renovations for this park began in 2008 with the construction of
the Yz -mile walking trail. Subsequent to the walking trail installation was the construction of the
all- weather track at Rosemead High School, immediately adjacent to the park; and then in 2011
the construction of the Rosemead Aquatic Center was completed. The remaining projects at
Rosemead Park include the replacement of a playground and fitness equipment, reconstruction
of the basketball courts, parking lot repairs, and renovation of the irrigation and turf areas. The
playground improvements, basketball court renovations and parking lots repairs are the highest
priority and work will be scheduled as soon as possible. The irrigation and turf renovation will be
postponed until all of the other critical projects have been completed.
Sewer System Expansion
This project is part of the Garvey Avenue resurfacing project. The expansion will provide capacity
improvements to the City's sewer system along Garvey Avenue. These capacity enhancements
are identified in the City's sewer system management plan, which was adopted in 2009. This
plan identified a capacity deficiency along Garvey Avenue (along the east City limit). This project
will be important as new development occurs in conjunction with the City's General Plan and
Garvey Avenue Master Plan. Capacity improvements to the sewer system will also reduce sewer
spill overflows in accordance with the City's sewer system management plan. Furthermore, this
portion of Garvey Avenue is also scheduled to be resurfaced and it is important that all of these
infrastructure improvements occur prior to the street being repaired.
The projects detailed above are the most critical and work will begin as soon as possible. The
remaining projects will be reviewed in the future to determine if the projects are still feasible and
may be completed with the remaining bond proceeds.
Rosemead Successor Agency Oversight Board
May 13, 2013
Page 4 of 4
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process in accordance with
the Brown Act.
Prepared by:
_gip- F
Matthew E. Hawkesworth
Assistant City Manager
Attachments: A — Finding of Completion
B — Health and Safety Code section 34191.4(c)
C — Resolution 2013 -0003
a u111 ' Z
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DEPARTMENT OF
°9C1FDRµlP F I N A N C E
April 18, 2013
EDMUND G. BROWN JR. • GOVERNOR
915 L STREET ■ 9ACRAMENTD CA ■ 95B14-3706 ■ WWW.DOF.CA.GOV
Mr. Matthew Hawkesworth, Assistant City Manager
City of Rosemead
8838 E Valley Blvd.
Rosemead, CA 91770
Dear Mr. Hawkesworth:
Subject: Request for a Finding of Completion
The California Department of Finance (Finance) received the City of Rosemead's request for a Finding of
Completion.
Finance has completed its review of your request, which may have included reviewing supporting
documentation submitted to substantiate payment or obtaining confirmation from the county auditor -
controller. Pursuant to Health and Safety Code (HSC) section 34179.7, we are pleased to inform you
that Finance concurs that the Agency has made full payment of the amounts determined under HSC
section 34179.6, subdivisions (d) or (e) and HSC section 34183.5.
This letter serves as notification that a Finding of Completion has been granted. The Agency may now
do the following:
Place loan agreements between the former redevelopment agency and sponsoring entity on the
ROPS, as an enforceable obligation, provided the oversight board makes a finding that the loan
was for legitimate redevelopment purposes per HSC section 34191.4 (b) (1). Loan repayments
will be governed by criteria in HSC section 34191.4 (a) (2).
Utilize proceeds derived from bonds issued prior to January 1, 2011 in a manner consistent with
the original bond covenants per HSC section 34191.4 (c).
Additionally, the Agency is required to submit a Long -Range Property Management Plan to Finance for
review and approval, per HSC section 34191.5 (b), within six months from the date of this letter.
Please direct inquiries to Andrea Scharffer, Staff Finance Budget Analyst, or Chris Hill, Principal Program
Budget Analyst, at (916) 445 -1546.
Sincere_ ly,
h
STEVE SZALAY
Local Government Consultant
cc: Ms. Molleda, City Clerk, City of Rosemead
Ms. Burns, Manager, Los Angeles County Department of Auditor - Controller
California State Controller's Office
Attachment B
Health and Safety Code section 34191.4
(c) (1) Bond proceeds derived from bonds issued on or before December 31, 2010, shall be used
for the purposes for which the bonds were sold.
(2) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond
proceeds in excess of the amounts needed to satisfy approved enforceable obligations shall
thereafter be expended in a manner consistent with the original bond covenants. Enforceable
obligations may be satisfied by the creation ofreserves for projects that are the subject of the
enforceable obligation and that are consistent with the contractual obligations for those
projects, or by expending funds to complete the projects. An expenditure made pursuant to this
paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the
excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized
Obligation Payment Schedule submitted by the successor agency.
(B) If remaining bond proceeds cannot be spent in a manner consistent with the bond covenants
pursuant to subparagraph (A), the proceeds shall be used to defease the bonds or to purchase
those same outstanding bonds on the open market for cancellation.
RESOLUTION: 2013 -0003
A RESOLUTION OF THE OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY
TO THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION RE- AFFIRMING
THE APPROVAL OF THE BOND PROCEEDS FUNDED CAPITAL IMPROVEMENT
PROJECTS AS PREVIOUSLY INCLUDED IN THE RECOGNIZED OBLIGATION
PAYMENT SCHEDULES
WHEREAS, on April 25, 2012 the Oversight Board for the Rosemead Successor
Agency approved the inclusion of Capital Improvement Projects to be funded with existing bond
proceeds on the Recognized Obligation Payment Schedule; and
WHEREAS, the approved Capital Improvement Projects have been included on each
Recognized Obligation Payment Schedule filed by the Rosemead Successor Agency; and
WHEREAS, the Rosemead Successor Agency received the Finding of Completion on
April 18, 2013 from the Department of Finance; and
WHEREAS, the Finding Completion states that the Rosemead Successor Agency may
utilize proceeds derived from bonds issued prior to January 1, 2011 in a manner consistent with
the original bond covenants per Health and Safety Code section 34191.4(c); and
WHEREAS, the Rosemead Successor Agency is holding approximately $7.1 million in
bond proceeds derived from bonds issued prior to January 1, 2011 for Capital Improvement
Projects identified in the bond covenants; and
WHEREAS, the Rosemead Successor Agency will be required to enter into new
contracts or agreements for the completion of the Capital Improvement Projects; and
WHEREAS, the Rosemead Successor Agency will be required to submit amended
Recognized Obligation Payment Schedules upon the award of any related contracts for periods
in which a Recognized Obligation Payment Schedule has previously been submitted.
NOW THEREFORE, THE OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY
TO ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION HEREBY RESOLVES:
1. Successor Agency staff may move forward with Capital Improvement Projects
identified in the bond covenants and listed on the ROPS.
2. Successor Agency staff shall follow the City of Rosemead's municipal code and
purchasing policies, and any applicable matching grant requirements to the
completion of the projects.
3. Successor Agency staff is directed to submit amended ROPS for the January to
June 2013 and /or July to December 2013 period once contracts are issued and the
anticipated funding schedule is identified.
4. Successor Agency staff is directed to provide a copy of this Resolution to the County
Auditor - Controller, the State Controller's Office and the State Department of
Finance.
PASSED, APPROVED AND ADOPTED this 13th day of May 2013.
Pat Wallach
Chairperson
ATTEST:
Matthew E. Hawkesworth
Successor Agency Staff
Assistant City Manager
HEREBY CERTIFY that the above and foregoing resolution was duly passed and adopted by
the Oversight Board for the Successor Agency to the Rosemead Community Development
Commission at its special meeting held on the 11th day of February 2013, by the following vote,
to wit:
AYES:
NOES:
ABSENT:
ABSTAINED:
Matthew E. Hawkesworth
Successor Agency Staff
Assistant City Manager