TITLE
Recommendation to increase appropriations contingent upon an executed grant agreement with the Los Angeles County Regional Park and Open Space District (RPOSD), in the Capital Projects Fund Group in the Public Works Department by $1,710,562 for various park improvement projects, offset by grant revenue;
Increase appropriations contingent upon an executed grant agreement with the RPOSD, in the Capital Projects Fund Group in the Public Works Department by $1,710,562 for various park improvement projects, offset by a transfer from RPOSD funds from the Capital Grants Fund;
Increase appropriations contingent upon an executed grant agreement with the RPOSD, in the Capital Projects Fund Group in the Parks, Recreation and Marine Department by $380,213 for grant administration, offset by grant revenue;
Increase appropriations contingent upon an executed grant agreement with the RPOSD, in the Capital Projects Fund Group in the Parks, Recreation and Marine Department by $380,213 for grant administration, offset by a transfer from RPOSD funds from the Capital Grants Fund; and
Decrease appropriations in the General Grants Fund Group in the Parks, Recreation and Marine Department by $67,036 as a technical correction for grant administration costs. (Citywide)
DISCUSSION
In 2016, Los Angeles County voters approved the Safe, Clean Neighborhood Parks and Beaches Measure (County Measure A), which authorizes dedicated local funding for park, recreation, and open space development and maintenance through an annual special tax of 1.5 cents per square-foot of building floor area on all taxable real property in the County. County Measure A makes funding available to eligible recipients for projects that repair and upgrade parks and recreational facilities; create new parks; preserve and protect open spaces and beaches; and, support recreational programming. County Measure A provides funding through both annual allocation programs and competitive grant programs. Annual allocations are distributed using set formulas, while competitive grants are awarded on a competitive basis during set grant cycles.
Annual allocations are divided among the 188 Study Areas that were used to prepare the initial Los Angeles County Park Needs Assessment (PNA) in 2016. The City of Long Beach (City) contains five Study Areas: Central, East, North, South, and West. Attachment A shows the Long Beach Study Areas overlaid on Council Districts. Attachment B shows the funding amounts for each Study Area.
Community-Based Park Investment Program (Category 1) funds are allocated annually to each Study Area in the County. Neighborhood Parks, Healthy Communities, and Urban Greening Program (Category 2) funds are allocated annually to Study Areas identified as High-Need or Very-High-Need in the most current PNA. Funds in both categories are allocated using a Per Capita and Structural Improvements Formula. Recently resolved litigation had prevented the RPOSD from releasing allocation funding, resulting in allocations for two years being available as of June 2019. Annual allocations in Category 1 and Category 2 for each Long Beach Study Area are shown in Table 1.
Table 1. Annual Allocations for Long Beach Planning Areas (Years 1 and 2)
|
PLANNING AREA |
CATEGORY 1 |
CATEGORY 2 |
Total |
|
North |
$511,118.01 |
$378,173.24 |
$889,291.25 |
|
South |
$1,139,314.92 |
$857,855.70 |
$1,997,170.62 |
|
East |
$512,253.50 |
$- |
$512,253.50 |
|
Central |
$230,030.52 |
$- |
$230,030.52 |
|
West |
$448,500.53 |
$333,292.60 |
$781,793.13 |
|
Total |
$2,841,217.48 |
$1,569,321.54 |
$4,410,539.02 |
On June 11, 2019, the City Council approved the Parks, Recreation and Marine Department to apply for County Measure A allocation funding for a series of projects totaling $4,312,724. Since then, due to additional revenues collected by the County, the total allocation for Long Beach Study Areas increased to $4,410,539. Of this amount, $4,392,789 in recommended projects and uses for County Measure A funding is shown in Table 2 and are consistent with the goals of the PNA. The balance of $17,750 available to the City will be budgeted as part of a future City Council item for the County Measure A Year 3 annual allocation.
Table 2. County Measure A Project Recommendations (Year 1 and 2)
|
PLANNING AREA |
PROJECT |
AMOUNT |
|
South |
14th Street Park Improvements |
$309,863.22 |
|
South |
Lincoln Park |
$754,947.47 |
|
South |
Bixby Park Parcel 1 Improvements |
$90,000.00 |
|
South |
PE Right-of-Way Grand/10th -Temple/8th |
$282,642.87 |
|
East |
Whaley HVAC |
$225,401.82 |
|
East |
Wardlow Park Restroom ADA Improvements |
$235,626.33 |
|
South |
MacArthur Park Improvements |
$180,000.00 |
|
South |
McBride Park Improvements |
$180,000.00 |
|
West |
Tanaka Park Acquisition |
$764,454.82 |
|
Central |
Scherer Park Improvements |
$207,027.47 |
|
North |
Houghton Park Community Center Improvements |
$782,612.01 |
|
All |
Required Grant Program Administration and Community Engagement for 11 projects and Master Planning for 14th Street Park, El Dorado Regional Park, Scherer Park and Hamilton Loop |
$380,212.90 |
|
|
Total |
4,392,788.91 |
County Measure A guidelines require specific levels of park planning, community engagement and grant program administration, tracking, reporting, and close-out responsibilities, which the Parks, Recreation and Marine Department will perform. The Public Works Department will perform project delivery.
Of the total $4,410,539 allocated to the City, the City Council previously approved appropriations totaling $2,302,014 for Lincoln Park, Tanaka Park Acquisition, and Houghton Park Community Center Improvements. The Lincoln Park appropriation was approved on March 17, 2020, Tanaka Park appropriation on June 18, 2019, and Houghton Park appropriation on August 20, 2019. Funding in the amount of $1,710,562 will be used to fund the remaining eight priority park projects as shown on Table 2, which are shovel ready and not currently funded. The remaining $380,213 will be used to fund grant administration and community engagement and $17,750 will be requested as part of a future item to City Council.
Prior to executing grant agreements with RPOSD, the City must submit proof of the City’s ability to accept and administer annual County Measure A funding and meet various benchmarks including submitting reimbursement requests for prior Measure A funded expenditures. As proof that the City can administer funding, funding for projects and grant administration will be appropriated on a contingent-basis only. Project expenses will not commerce until grant agreements are finalized. Should grant agreements not be available by the close of FY 21, the department will return to the City Council to request a reduction to appropriations until executed grant agreements are available. The department will also return with an adjustment to appropriations if funding amounts in the executed grant agreements are different from those amounts requested as contingent appropriations.
This matter was reviewed by Deputy City Attorney Arturo D. Sanchez and by Revenue Management Officer Geraldine Alejo on December 17, 2020.
TIMING CONSIDERATIONS
City Council action is requested on January 19, 2021, to expeditiously execute grant agreements required to commence park improvement projects and allow for project-related staff time to be charged to grant funding and not subsidized by the General Fund.
FISCAL IMPACT
The RPOSD annual allocation program is a formula grant based on population. Under the formula, the City will receive County Measure A reimbursement funding up to $4,410,539. Of this amount, $2,302,014 is appropriated for Lincoln Park, Tanaka Park, and Houghton Park projects. Additionally, $67,036 is currently appropriated in the General Grants Fund Group for County Measure A-related park planning, community engagement, and grant program administration. An appropriation transfer to the Capital Projects Fund Group for this amount is included in this recommendation as a technical correction to align appropriations to where grant administration expenditures will be realized. The remaining allocation of $17,750 will be requested as part of a future request to the City Council. County Measure A funding has no match requirement or in-kind service mandate.
An appropriation increase, contingent upon an executed grant agreement with RPOSD, is requested in the amount of $3,421,124 in the Capital Projects Fund Group in the Public Works Department for various park improvement projects. Of this amount $1,710,562 will be offset by County Measure A reimbursement revenues received from the RPOSD. The remaining $1,710,562 is a technical appropriation to allow for the transfer of County Measure A funds from the Capital Grants Fund, a fund within the Capital Projects Fund Group.
An appropriation increase, contingent upon an executed grant agreement with RPOSD, is requested in the amount of $760,426 in the Capital Projects Fund Group in the Parks, Recreation and Marine Department for grant administration, including staff and consultant support. Of this amount $380,213 will be offset by County Measure A reimbursement revenues received from the RPOSD. The remaining $380,213 is a technical appropriation to allow for the transfer of County Measure A funds from the Capital Grants Fund, a fund within the Capital Projects Fund Group.
Finally, an appropriation decrease is requested in the amount of $67,036 in the General Grants Fund Group in the Parks, Recreation and Marine Department as a technical correction to move appropriation to the Capital Projects Fund Group.
To meet the funding requirements and submit proof that the City can accept and administer grant funding, funding for projects and grant administration will be appropriated on a contingent-basis only. Projects will only proceed at such time that grant agreements have been approved and executed between the City and the RPOSD. Should grant agreements not be available by the close of FY 21, the Parks, Recreation and Marine Department will return to the City Council with a request to reduce appropriations. The department will also return with an adjustment to appropriations if funding amounts in the executed grant agreements are different from those requested as contingent appropriations. Future operating and maintenance costs associated with these projects are unknown at this time, and funding sources have not been identified. Estimates will be provided by the Park, Recreation and Marine Department and appropriations will be requested as part of the annual budget process. This recommendation has a staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. Additional staff and consultant support required for grant administration, project planning, and project delivery will be necessary and are eligible grant expenses for reimbursement. There is no local job impact associated with this recommendation. However, it is anticipated that projects constructed using these grant funds will result in creation of some number of local jobs.
SUGGESTED ACTION
Approve recommendation.
BODY
[Enter Body Here]
Respectfully Submitted,
BRENT DENNIS
DIRECTOR
PARKS, RECREATION AND MARINE
ERIC LOPEZ
DIRECTOR
PUBLIC WORKS
APPROVED:
THOMAS B. MODICA
CITY MANAGER