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CC - 2013-47 - Authorizing the City Manager to Enter Into a Loan Agreement With Savannah Memorial Park To Permit Access Road ReconstructionRESOLUTION NO. 2013 -47 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD AUTHORIZING THE CITY MANAGER TO ENTER INTO A LOAN AGREEMENT WITH SAVANNAH MEMORIAL PARK (EL MONTE CEMETERY ASSOCIATION) TO PERMIT ACCESS ROAD RECONSTRUCTION WHEREAS, Savannah Memorial Park ( "Savannah) was founded over one hundred sixty (160) years ago in 1850 by pioneer residents of what is now known as the west San Gabriel Valley. The remains of many early American pioneers and prominent citizens, including war veterans, are buried at the historic cemetery. In addition, Savannah is recognized by the State Office of Historic Preservation as a California Historic Landmark #1046; and WHEREAS, the City Council considers the Savannah a valuable community asset both for City residents to use, as well as out of town tourists to visit; and WHEREAS, the City desires to assist in preserving the unique status of the Savannah for the benefit of the public by entering into a loan agreement with Savannah to permit road reconstruction work to be completed on the property. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, DOES HEREBY RESOLVE AND FIND AS FOLLOWS: Section 1 . The above recitals are hereby incorporated as true and correct. Section 2. The City Manager is authorized to take the steps necessary to complete the access road reconstruction work at Savannah and to enter into a loan agreement, to be drafted by the City Attorney, for the reimbursement of money to the City by Savannah in an amount not to exceed $12,000 with a repayment term of 10 years. Section 3 . The City Clerk shall, certify to the passage and adoption of this Resolution, whereupon it shall take immediate effect. PASSED, ADOPTED AND APPROVED this 13th day of August, 2013. Polly o , ayor Attest: Kpona Moll-d., City Clerk Approved as to Form: By: ajd 6 4& , A -D Rachel kichmarl Burke, Williams & Sorensen, LLP City Attorney STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS. CITY OF ROSEMEAD ) I, Gloria Molleda, City Clerk of the City of Rosemead, do hereby certify that the foregoing Resolution No. 2013 -47 being: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD AUTHORIZING THE CITY MANAGER TO ENTER INTO A LOAN AGREEMENT WITH SAVANNAH MEMORIAL PARK (EL MONTE CEMETARY ASSOCIATION) TO PERMIT ACCESS ROAD RECONSTRUCTION was duly and regularly approved and adopted by the Rosemead City Council on the 13th of August 2013, by the following vote to wit: Yes: Alarcon, Armenta, Clark, Low, Ly No: None Abstain: None Absent: None Gloria Molleda City Clerk August 8, 2013 Honorable Mayor Polly Low and City Councilmembers City of Rosemead 8838 East Valley Blvd. Rosemead, CA 91770 Dear Ms. Low: I write this to you on behalf of the Savannah Memorial Cemetery in order to ask for your support and assistance from the City of Rosemead in regards to the access road at our facility. The road is currently in a state of disrepair and requires much reconstruction. We are aware that the City of Rosemead is doing some road resurfacing in the local area and our hope would be that the Cemetery could get some assistance using your contract. By doing so, we would be able to realize a significant cost savings in completing repairs to our access road. Such cost savings would help our cause and help us restore the look and safety of our cemetery. In the last year the Savannah Memorial Cemetery was given one of the state's highest honors and became California Registered Historical Landmark No 1046. We are very proud of this recognition and we feel that this will probably be the only historical landmark in our city for years to come. I am sure you are aware that running a non - profit organization in these unstable financial times is difficult and has its challenges of reaching the necessary needs and goals to maintain its operation and preservation. The donations that we receive each month allow us to maintain the daily upkeep of the grounds but do not give us the opportunity to pay for a new driveway and or make repairs, so a loan from the city would greatly be appreciated and will not be taken for granted. Over the years, we have depended on the goodwill of kind - hearted individuals like you who are able to give to our cause. We always strive to do our best to show our thanks and give well - deserved recognition to our supporters; rest assured the City of Rosemead's tremendous support will not go un- noticed. I would like to thank you for your time and consideration. Respectfully, Joanne Russell- Chavez President Savannah Memorial Cemetery ROSEMEAD CITY COUNCIL STAFF REPORT TO: HONORABLE MAYOR AND CITY COUNCIL FROM: JEFF ALLRED, CITY MANAGER DATE: AUGUST 13, 2013 SUBJECT: LOAN AGREEMENT WITH SAVANNAH MEMORIAL PARK (EL MONTE CEMETERY ASSOCIATION) FOR ACCESS ROAD RECONSTRUCTION SUMMARY The City has a Memorandum of Understanding (MOU) with the El Monte Cemetery Association for the provision of in -kind services at Savannah Memorial Park Cemetery (Savannah) located at 9263 Valley Boulevard. Since Savannah is a California Historic Landmark and located in a major commercial corridor in the City, it is beneficial to the City that the facility is properly maintained and preserved. Through the MOU, the City has helped Savannah address maintenance issues such as fence repair, debris removal, tree maintenance, and general handyman duties. Recently, the City was approached by Savannah in regards to the access road at their facility. The road is currently in a state of disrepair and requires reconstruction. Accessing a City contract for road resurfacing on Muscatel Avenue, Savannah will be able to realize a significant cost savings in completing repairs to their access road. Such cost savings include low unit costs for materials and reduced mobilization costs due to Savannah's close proximity to the Muscatel Avenue project location. The parties were able to negotiate a price of $15,000 for the rehabilitation of the access road at Savannah. Representatives from Savannah are requesting that the City assist with financing in order to fund this improvement. As proposed, such financing would be an interest -free loan and include an upfront payment of $3,000 by the Cemetery Association followed by ten (10) annual payments of $1,200. Staff Recommendation It is recommended that the City Council approve Resolution No. 2013 -47, authorizing the City Manager to execute a loan agreement in an amount not to exceed $12,000 with the El Monte Cemetery Association in order to finance a portion of the costs for access road improvements at Savannah Memorial Park (California Historic Landmark No. 1046). ffEM NO. �L __ City Council Meeting August 13, 2013 Page 2 of 3 DISCUSSION The Savannah Memorial Park Cemetery (Savannah) is located in the commercial district of Valley Boulevard and is in close proximity to Rosemead Park and Rosemead High School. Savannah was founded over one hundred sixty (160) years ago in 1850 by pioneer residents of what is now known as the west San Gabriel Valley. The remains of many early American pioneers and prominent citizens, including war veterans, are buried at the historic cemetery. In addition, Savannah is recognized by the State Office of Historic Preservation as a California Historic Landmark, No. 1046. The City has an interest in seeing that Savannah is appropriately maintained and preserved as an important local historic site. The City's Strategic Plan includes a strategy to `Preserve Historical, Cultural, and Natural Resources ". To that end, the City's assistance with projects and improvements will help ensure that the site remains a viable community resource with local, regional and state -wide significance. The City has been able to negotiate a price of $15,000 for the rehabilitation of the access road at Savannah. As proposed, the work would take place in conjunction with the City's street resurfacing improvement project on Muscatel Avenue. Since Savannah is in close proximity to the project location, the contractor has agreed to charge reduced mobilization fees associated with the repair of the access road. The contractor also agreed to extend the unit costs to complete improvements to the access road. It should be further noted that progress payments for the improvement work at Savannah would be billed separately from the Muscatel project billing. Savannah's Board of Directors and President Joanne Russell- Chavez have requested the City's assistance with financing a portion of the improvements to the access road. As proposed, Savannah has $3,000 available to make an upfront payment on the project. The remainder of the balance, $12,000, would be paid in annual installments over a period of ten (10) years. The execution of an agreement to provide a loan to the Savannah Memorial Park Cemetery and permit this work to be completed, serves a proper public purpose due to the very unique historical status of the site as discussed above. Protection and proper maintenance of this historical site will benefit the City and its residents by providing a safe and well maintained entrance to the site and assist in increasing use of the Savannah as a State historical site. FINANCIAL REVIEW The total loan amount for this project is $12,000. Such amount would be financed interest -free over a period of ten (10) years. This loan amount is not included in the current Fiscal Year 2013 -14 budget and would require an appropriation from general fund reserves. City Council Meeting August 13, 2013 Page 3 of 3 Submitted by: UAp Chris Marcarello Director of Public Works Attachments: (1) Letter Request (2) Resolution No. 2013 -47