SUBJECT: FY 2002-2003 APPROPRIATIONS AND REVENUE RESOLUTIONS, AMENDMENTS TO THE FY 2001-2002 ADOPTED CAPITAL BUDGET, AND MAKE CERTAIN DETERMINATIONS REGARDING PUBLIC IMPROVEMENT PROJECTS AND GRAFFITI REMOVAL PROGRAM
It is recommended that:
(a) The Agency Board adopt a resolution approving amendments to the FY 2001-2002 Appropriations Resolution to reflect various modifications to the FY 2001-2002 Capital Budget;
(b) The Agency Board adopt the Fiscal Year 2002-2003 Revenue and Appropriation Resolutions for the Operating and Capital Budgets;
(c) The Agency Board adopt a resolution making certain determinations regarding the expenditure of Agency funds to eradicate graffiti; and,
(d) The City Council adopt a resolution making certain determinations regarding the expenditure of Agency funds on public improvements specified in the FY 2002-2003 Capital Budget.
On June 11, 2002 the Agency Board adopted the proposed FY 2002-03 Operating and Capital Budgets and the proposed 2003-2007 Capital Improvement Program with modifications reflecting the Mayor’s June budget message and modifications proposed in the Executive Director’s memo dated June 11, 2002.
Section 33445 of the Redevelopment Law requires the City Council to make certain determinations with respect to publicly owned improvements funded by the Redevelopment Agency. The required findings are as follows:
· That the public improvement primarily benefits a project area.
· That there are no other reasonable means of financing the public improvement.
· That the public improvement will assist in the elimination of blight within a project area.
· That the public improvement is consistent with the adopted Implementation Plan for the area.
This report outlines certain public improvements contained in the Proposed FY 2002-03 Capital/Program Budget in order to enable the Council to make the required determinations.
If tax increment is used to construct or buy land for public buildings, a public hearing is required in addition to the above findings. This is generally done at the time the individual project is approved.
Section 33420.2 of the Redevelopment Law requires the Agency to make certain findings with respect to graffiti removal. Those findings are described below.
Public improvement projects requiring certain determinations prior to the expenditure of Agency funds are as follows:
SIDEWALK AND STREETSCAPES
The Proposed FY 2002-2003 Capital Budget includes the following sidewalk and streetscape projects:
Civic Plaza Civic Plaza Streetscape
Civic Center – Development Site
Horace Mann Public Improvements
NBD Alum Rock – Streetscape Improvements
Story Road – Streetscape (Trees & Medians)
The Alameda – Streetscape Improvements
West San Carlos – Sidewalk Infill City-County
Japantown – Street Trees/Gateway Posts
Monterey Corridor – NID Improvements
SNI’s 13th Street – Streetscape Improvements
Five Wounds – Williams 24th Street Improvements
Five Wounds – 33rd & McKee Improvements
Delmas Park - W. San Carlos Streetscape
Delmas Park – Sidewalks
East Valley/680 Communities – Sidewalks
Greater Gardner – Street Improvements
Greater Gardner – W. Virginia Streetscapes
West Evergreen – Intersection Improvement
Winchester – Winchester Streetscape
These projects are located within, or are adjacent to, Agency project areas and, therefore, are of direct benefit to those areas. No funding is available from the City or any other source for the projects. Improvement of streets, sidewalks, and associated landscaping improves the appearance of Agency project areas, extends the useful life of associated facilities, and makes the areas more conducive to private development, thereby eliminating blight. The above projects are consistent with the Adopted Implementation Plan for the Merged Area, and the SNI Implementation Plan.
The Proposed FY 2002-2003 Capital Budget includes the following traffic calming and couplet conversion projects:
SNI’s 13th Street – Couplet Conversion
East Valley/680 Communities – Traffic Calming
Edenvale/Great Oaks – Traffic Calming
Greater Gardner – School Traffic Calming
Washington – Couplet Conversion
West Evergreen – Traffic Calming
Winchester – Traffic Calming Eden
Winchester – Traffic Calming
These projects are located within, or are adjacent to, Agency project areas and, therefore, are of direct benefit to those areas. The City does not have the ability to cover all the projects needed in its Budget. Implementation of traffic calming measures and couplet conversion projects will reduce speeding, increase pedestrian safety and allow for the better flow of traffic through the neighborhoods. The above projects are included in the Adopted SNI Implementation Plan.
The Proposed FY 2002-2003 Capital Budget includes the following park projects:
Julian Stockton Pellier Park Renovation
NBD’s Monterey Corridor – Bellevue Avenue Park
Merged Area Guadalupe River Park
SNI’s West Evergreen – Meadowfair Park Expansion
Washington – Floyd and Locust Park
University – Park
Greater Gardner – Open Space Fuller Ave/Park
Edenvale/Great Oaks – Skate Park
The proposed park improvements are located within, or adjacent to, Agency project areas. No City or other funding is available for these projects. Park improvements eliminate blight by improving the physical appearance of an area by providing recreation facilities for project area residents and by providing facilities, which will attract public use. The Adopted Implementation Plan included the provision of downtown parks, such as Pellier Park as a means to establish a 24 hours downtown, and neighborhood parks, such as Bellevue Avenue Park, to serve neighborhood needs. The SNI Implementation Plan includes plazas, parks, playgrounds and pedestrian and bike facilities.
B. GRAFFITI REMOVAL FINDINGS:
The Agency uses funding in its Merged Area Impact - Property Management line item, various NBD, and other line items to remove graffiti within project areas. To spend Agency funds for this purpose, the Agency Board must make a finding that, because of the magnitude and severity of the graffiti within the project areas, this action is necessary to effectuate the purposes of the redevelopment plan and to assist with elimination of blight. The City’s graffiti abatement team processes an average of 300 tags per day.
C. BUDGET REVISIONS:
Recommended revisions to the FY 2001-2002 Adopted Budget are described below and summarized on Attachment A.
Civic Plaza – Litigation +$1,245,414
Pursuant to the terms of the stipulated settlement agreement dated April 17, 2002, the Agency has been ordered to pay $1,245,414 in attorney’s fees and costs, per the court Order Awarding Reasonable Attorney’s Fees and Cost, dated June 7, 2002.
Software/Environmental Business Cluster Leases +$400,000
Reflects adjustments per terms of the amended lease agreement.
Software Development Center +$15,000
Reflects adjustments per terms of the amended lease agreement.
Neighborhood Investment Program
NID – County Improvement +$6,820,000
Pursuant to an agreement between the City, Agency and County dated May 22, 2001 the Agency has agreed to delegate, funds to the County for redevelopment purposes. The delegated redevelopment payment for FY 2001-2002, is $16,000,000. This amount is subject to change, depending on the actual Tax Increment receipts.
Phase II of the Rincon Flood Master Plan includes the construction of the Trimble Pump Station and related infrastructure improvements. The award of the construction contract is scheduled for City Council approval on June 25, 2002. Work is expected to commence in October 2002 and be completed in March 2004.
Phase II, funded by the Agency, is budgeted at a total cost of $27,300,000. A total of $4,162,000 was transferred to the Department of Public Works for costs associated with the design consultant and city project management staff fees. A total of $20,438,000 is currently available in FY 2001-02. Agency staff recommends an add of $2,700,000 to the Agency Adopted FY 2001-02 Capital Budget, which will provide for a total amount of $23,138,000 to be transferred to the Department of Public Works prior to award of contract.
This item has been coordinated with the Agency’s General Counsel and the City Manager’s Budget Office.
The proposed budget adjustment for FY 2001-2002 will reduce the capital reserve fund by $11,180,414 as summarized on Attachment A.
SUSAN F. SHICK