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Dtate: April 22, 2009 CITY OF LOS ANGEI.J':S INTER-PI;PARTMENTAh QORR~SPQN[)IONQE DtAte: April 22, 2009 To: Honorable Members of the City Council From: L.A. for Kids Steering Committee Raymond P. Ciranna, Interim City Administrative Officer (JL- Gerry F. Miller, Chief Legislative Analys~ ;,l Jimmy Blackman, Deputy Chief of Stat( Office of the Mayor fiv Subject: 2009-10 PROPOSITION K ASSESSMENT SUMMARY The L.A. for Kids Steering Committee presents for Council and Mayor consideration, the 2009-10 Proposition K Assessment Report that includes the recommended 2009-10 program expenditure plan and funding earmarks for Fiscal Years 2010-11 thorough 2013-14. Funding · · recommendations for reprogramming ~;:urre,pt year project allocations, award of 2008-09 maintenance funds and availapjlity, ,c)f program i(lfl.atkirl 01nd interest monies are also presented. The Proposition K: L.A. for Kids Program was established in November 5, 1996, by passage of a Ballot Measure apprpved by City voters. The measure established an assessment district coterminous with City boundaries, in which the City collects up to $25 million annually in local assessments over aperiod of 30 years. To levy the 2009-10 assessment, Council must take the following actions prior to June 30, 2009: 1. Adopt a Resolution to Initiate Proceedings; 2. Approve an expenditure plan for fiscal year 2009-1 0; 3. Adopt a City Engineer's report describing the proposed improvements for the fiscal year; 4. Adopt a Resolution and Ordinance of Intention to levy the assessment; 5. Hold a public hearing; 6. Approve the environmental documents for the projects being considered for inclusion in the assessment; and 7. Adopt an ordinance confirming the assessment for the fiscal year. In September 2008, Council took the first action for levying the 2009-10 assessment by adopting the Resolution to Initiate Proceedings (C.F. 08-2139). To complete the annual assessment process, this report recommends that Council proceed with actions two through four and initiate actions five through seven, as listed above. The proposed 2009-10 expenditure plan, presented in Section 3 of the report Findings, totals $25 million, with a breakdown, as follows: Capital projects ($14.9 million); Administration ($749,000), Maintenance ($2.6 million); Inflation ($3.6 million); and, Debt Service on bonded projects ($3 million). The 2009-10 funding recommendations are further detailed in the Five Year Plan (Attachment 1) and the A List of projects recommended for funding in 2009-10 (Attachment 2). Projects earmarked for funding in fiscal years 2010-11 through 20013-14, form the B List of Projects (Attachment 3) and serve as alternates that may be substituted for A List projects that will not be implemented during the course of the program year. Actions recommended for 2008-09 assessment funds are presented in Section 4 of the report Findings. These recommendations include the reprogramming of current year project allocations (Attachment 12) that are prompted by considerations presented in the report Findings. The recommended 2008-09 maintenance award of $3.39 million (Attachment 8), includes $2.37 million in current year funds and $1.02 million in unspent maintenance awards remaining from prior years. The availability of current year interest and inflation funds are also presented. The proposed use of inflation and interest funds will be provided through an amending Motion prior to the public hearing for the 2009-10 Assessment report that is recommended to occur on June 3, 2009. RECOMMENDATIONS That the City Council: 1. Adopt the attached City Engineer's report for the 2009-10 Proposition K Assessment (Attachment 9). 2. Adopt the attached Resolution of Intention to levy an assessment authorized by Proposition K, pursuant to the Landscaping and Lighting Act of 1972 (Attachment 10). 3. Adopt the Ordinance of Intention to levy an assessment authorized by Proposition K, pursuant to the Landscaping and Lighting Act of 1972 (Attachment 11). 4. Approve the 2008-09 Proposition K Maintenance awards totaling $3.39 million, which includes $2.37 million in 2008-09 assessment funds and the reprogramming of $1.02 million in surplus maintenance funds remaining from prior allocations of 2004-05 and 2005- 06 assessment monies (Attachment 8). 5. Approve reprogramming of 2008-09 project allocations as reflected in report Attachment 12, and authorize the City Engineer to execute or amend grant agreements with competitive grant applications, as needed to effectuate the 2008-09 reprogramming actions. 6: Authorize the Controller to adjust accounts to reflect the 2008-09 reprogramming of project allocations in the following funds pursuant to instructions to be provided by the City Administrative Officer: Proposition K Projects Fund No. 43K, Proposition K Maintenance Fund No. 43L and Proposition K Administration Fund No. 43M. 7. Instruct the City Clerk to publish notice by May 22, 2009 of a public hearing to take place on June 3, 2009, at 10:00 A.M. during the regular Council meeting. 8. Instruct the City Clerk to set an agenda item for public hearing on the Council agenda for June 3, 2009 to include the following actions: 2009·1 0 Proposition K Assessment Report Page 2 ol12 a. With respect to the projects in List 1 of Attachment 7: 1) FIND THAT each of these projects is STATUTORILY OR CATEGORICALLY exempt from the California Environmental Quality Act under the particular State and City CEQA Guidelines. 2) DIRECT the Department of Recreation and Parks and/or the Bureau of Engineering to prepare Notice(s) of Exemption or Notice(s) of Determination reflecting Council's actions and file such notices with the City and County Clerks within five working days of the City Council's final action confirming the 2009-10 Assessment and Engineer's Report. b. With respect to the projects in List 2 of Attachment 7: FIND THAT these projects are exempt from the California Environmental Quality Act under State CEQA Guidelines section 15262 and Article II, section 2.d of the City CEQA Guidelines because the City Council's action is not subject to CEQA. The City Council's action is not an approval of a project which may cause a physical change in the environment, but instead is in the nature of a feasibility and planning study for a project which is not being approved at this time. c. With respect to the projects in List 3 of Attachment 7: ACKNOWLEDGE that the City Council's action is exempt from CEQA under Article II, section 2.i, because the underlying project has already been evaluated and processed in accordance with the City CEQA Guidelines. d. With respect to the projects in List 4 of Attachment 7: 1) Review and Consider the Negative Declaration/Mitigated Negative Declaration; 2) Certify that the Negative Declaration/Mitigated Negative Declaration has been prepared in accordance with CEQA, and adopt it; 3) Adopt all the mitigation measures described in the Mitigated Negative Declaration as part of the City Council's approval of the Proposition K assessment and ADOPT the mitigation monitoring program prepared to ensure that the mitigation measures will be implemented; 4) Find that with imposition of the mitigation measures, there will remain no significant impacts; and 5) Instruct the Department of Recreation and Parks and the Bureau of Engineering to prepare a Notice of Determination and file with the City and County Clerks within five working days of the City Council's approval. 2009-10 Proposition K Assessment Report Page 3 of 12 e. With respect to the projects in List 5 of Attachment 7: Find that those are projects that may be considered for funding after CEQA compliance. No further action is required at this time. f. Adopt the ordinance prepared and transmitted by the City Attorney, confirming the assessments and approving the assessment diagram for Fiscal Year 2009-10. g. Instruct the City Engineer to record a Notice of Assessment with the County Recorder. h. Instruct the Controller to set up accounts for the 2009-10 Proposition K assessment in the following funds pursuant to instructions to be provided by the City Administrative Officer: Proposition K Projects Fund No. 43K, Proposition K Maintenance Fund No. 43L, and Proposition K Administration Fund No. 43M. i. Approve the 2009-10 Five Year Plan for the L.A. for Kids Program and related schedules, as set forth in Attachments 1, 2, 3 and 6. j. Instruct the Information Technology Agency to prepare and transmit the necessary computer tape or compact disk, as appropriate, to the County containing the assessment levy information confirmed by the City Council for fiscal year 2009-10 for each parcel in the Assessment District. k. Authorize the City Engineer to negotiate and execute Proposition K grant contracts with competitive grant applicants in the Five Year Plan for 2009-10, excluding projects from the Department of Recreation and Parks and Bureau of Street Lighting, subject to approval of the City Attorney. FISCAL IMPACT STATEMENT Adoption of an Ordinance and Resolution of Intention to levy the Proposition K: L.A. for Kids Assessment for fiscal year 2009-1 0 indicates the Council's intention to levy assessments totaling $25 million to acquire and construct park and recreational facilities. The assessment can only be used for capital improvements, acquisition of land, administration, and maintenance. The cost of operating Proposition K projects as they are completed in future years will be funded by the annual operating budget adopted for City departments and with independent funding for projects operated by external entities. As reported by the Department of Recreation and Parks (RAP), the annual impact on the General Fund, once all projects recommended for funding in 2009-10 become operational, totals $4.69 million and includes $2.92 million for maintenance and $1.77 million for operations.
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