0111-31341-0148TRANSMITTAL

TO DATE

10-15-19COUNCIL FILE NO14-1174-S84Council

FROMCRA/LA Bond Oversight Committee

COUNCIL DISTRICT8

At its Special Meeting on October 10, 2019, the CRA/LA Bond Oversight Committee approved recommendations in the attached Economic and Workforce Development Department (EWDD) report and instructed staff to transmit to Council for consideration. Council approval of the report recommendations would authorize the appropriation of up to $420,465 plus all earned interest in CRA/LA Excess Non-Housing Bond Proceeds from the Western/Slauson Redevelopment Project Area (Taxable Series 2006-A) for the Western Gage Median Park Project.

Fiscal Impact Statement: There is no impact on the City’s General Fund from the proposed appropriation. The CRA/LA Excess Non-Housing Bonds Proceeds Fund No. 57D is funded solely from transfers totaling approximately $88.4 million in pre-2011 tax allocation bond proceeds from CRA/LA to the City. (C.F. 14­1174) Said transfers have been deposited with the Office of the Controller.

Richard H. Llewellyn^Jr.City Administrative Officer \

Chair, CRA/LA Bond Oversight Committee

RHL:YC/JVW:nsh 15200076Attachment - October 10, 2019 EWDD Report - Western Gage Median Park Project

CAO 649-d

Item 5

CiTY of Los AngelesCALIFORNIA ECONOMIC AND WORKFORCE

DEVELOPMENT DEPARTMENTJOHN L. REAMER, JR.

INTERIM GENERAL MANAGER

1200 w.7th Street Los Angeles, CA 90017

ERIC GARCETTIMAYOR

October 10, 2019Council File:14-1174-S84 Council District No.: 8 Contact Person & Extension: Daysi Hernandez: (213) 744-9340

CRA/LA Bond Oversight Committee c/o Jacqueline Wagner Office of the City Administrative Officer Room 1500, City Hall East

BOND OVERSIGHT COMMITTEE TRANSMITTAL: REQUEST REVIEW AND RECOMMENDATION THAT COUNCIL AND MAYOR, AS REQUIRED, APPROPRIATE UP TO $420,465 PLUS ALL EARNED INTEREST IN CRA/LA EXCESS NON-HOUSING BOND PROCEEDS FROM THE WESTERN/SLAUSON REDEVELOPMENT PROJECT AREA (TAXABLE SERIES 2006-A) FOR THE WESTERN GAGE MEDIAN PARK PROJECT

The Interim General Manager of the Economic and Workforce Development Department (EWDD) requests your review, approval and processing of the recommendations in this transmittal to the Mayor and City Council for their review and consideration.

RECOMMENDATIONS

The Interim General Manager of EWDD, or designee, requests that the Bond Oversight Committee (BOC) recommend that the City Council, subject to the approval of the Mayor as required:

FIND that the action of allocating and withholding expenditure of funds for the Western Gage Median Park Project (Project) pending the completion, review, and consideration of planning and environmental documents related to Project is not a project pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15378(b)(4) because it merely creates a funding mechanism or other government fiscal activity that does not commit the City to a project that may result in a potentially significant impact on the environment, and that preparing preliminary planning and environmental documents is not a project pursuant to

1.

Page 2 of 6 October 10, 2019BOC ReportCD 8 Motion 14-1174-S84

CEQA Guidelines Section 15378(b)(5) because it is an administrative activity that will not result in physical changes in the environment;

APPROVE up to $420,465 plus all earned interest (Interest) in taxable CRA/LA Excess Non-Housing Bond Proceeds (EBP) available to Council District (CD) 8 from the Western/Slauson Redevelopment Project Area (Project Area) to be utilized for Project;

2.

AUTHORIZE the Department of Public Works, Bureau of Engineering (BOE) to be the implementing department for activities related to Project;

3.

AUTHORIZE BOE to approve, negotiate and execute contracting documents and/or amendments to C-122910 (Contract) with the Los Angeles Neighborhood Initiative (Contractor) as required to effectuate Project subject to the approval of the Board of Public Works (BPW), prevailing wage requirements, and the City Attorney as to form;

4.

AUTHORIZE the Controller, subject to the requirements below and availability of funds and duly executed and encumbered contract(s), to expend up to $420,465 plus Interest from EBP Fund No. 57D, Account Nos. 22L9RT and 22S9RT Western/Slauson Taxable Series 2006-A, for activities related to Project upon presentation of proper documentation by BOE, and satisfactory review and approval of EWDD in accordance with the terms and conditions of the Bond Expenditure Agreement (BEA);

5.

AUTHORIZE BOE to perform limited preliminary planning as may be necessary to conduct the environmental review for Project from the above-noted funds appropriated to Project;

6.

DIRECT BOE to withhold expending, or committing to expend, any of the remainder of the above-noted funds allocated to Project until all of the following have occurred:

7.

a. BOE has completed the preliminary planning documents and environmental review documents;

b. The City has complied with the requirements of CEQA with respect to Project, including obtaining any necessary CEQA clearances; and

c. BPW has considered and approved Project and Contractor for expenditure of the remaining funds;

DIRECT BOE to transmit copies of all executed Contracts) for Project to EWDD;8.

AUTHORIZE BOE to expend the EBP allocation no later than September 30, 2024;

9.

DIRECT BOE to report on its work accomplishments to the Office of the City Administrative Officer (CAO), and fund expenditures to EWDD, on a quarterly and as-needed basis;

10.

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BOC ReportCD 8 Motion 14-1174-S84

Page 3 of 6 October 10, 2019

11. AUTHORIZE the Interim General Manager of EWDD, or designee, to make any corrections or clarifications to this report as necessary in order to effectuate the intent of this action; and

AUTHORIZE the Interim General Manager of EWDD, or designee, to prepare Controller instructions and/or make technical adjustments that may be required and are consistent with this action, subject to the approval of the CAO, and authorize the Controller to implement these instructions.

12.

SUMMARY

Transmitted herewith for your review, approval, and further processing are recommendations pursuant to a CD 8 Motion (Harris-Dawson - Price) (Attachment) which was adopted by Council on July 3, 2019 (C.F. 14-1174-S84).

The Motion requests that all remaining taxable EBP plus Interest in Project Area available to CD 8 be allocated to BOE for development costs related to the Western Gage Median Park (Park). Gage & Western Park development was identified as a potential project in the Project Area’s Bond Spending Plan (BSP) that was adopted by Council on June 24, 2015 (C.F. 14-1174). Sufficient funds for this purpose are available from CD 8’s portion of EBP and Interest in this Project Area.

The original EBP in Project Area available to CD 8 was $123,654, all taxable. After the 16% ($19,785) administrative allocation, there remained $103,869 in Project Area available to CD 8. CD 8 subsequently received an additional $376,900 in taxable EBP from the FY 2017/2018 Recognized Obligations Payment Schedule (ROPS). A net balance of $316,596 ROPS EBP remained after the 16% ($60,304) administrative allocation, thus yielding a combined total of $420,465 taxable EBP for CD 8. This transmittal’s proposed allocation will completely exhaust CD 8’s EBP in Project Area.

EWDD ANALYSIS

The BOC team met and consulted with CD 8, BOE and Contractor. The assignment is for a new park to be built on an unused median at the intersection of Western and Gage Avenues in CD 8. BOE will serve as the implementing department who will oversee project design and construction. Contractor was created by the Los Angeles Mayor’s Office as a “City Partner” to expedite transit and pedestrian projects. Recognized as a City department in the City's LABAVN portal, Contractor also serves as a liaison between the City and economically challenged transit-dependent communities. Contractor’s scope of work will include, but is not limited to, creating a buffer area between traffic and future park site at Western Gage Median by constructing comer bump outs, creating a one-way street and angled parking, and vacation of a paper street if necessary to create the Park.

The initial cost estimate for Project is $436,075 which will be 100% funded by CD 8's EBP plus Interest of $15,610 (through June 30, 2019) in Project Area. Breakdown of the estimated budget line items is as follows:

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October 10, 2019BOC ReportCD 8 Motion 14-1174-S84

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Budget Cost Estimates for Taxable EBP

• Project Management (Design procurement, fiscal management, community outreach during design/construction phase)

» Design/Engineering (Design costs related to B permit and temporary revocable permits)

• Permits (B and Vacation Permits)» Construction and Construction Management

(Fund construction of B permit items to include curt extensions)

• CEQA NOE filing fee/ContingencyTotal Taxable EBP Cost Estimates

$ 46,000

$ 55,000 $ 28,000

$301,000 $ 6.075$436,075

Upon Council adoption of Project and City’s compliance with CEQA requirements, Project design is expected to begin in March 2020. Construction will follow in October 2021 with an anticipated completion date in January 2022. Ail construction work and labor for Project will be subject to prevailing wage requirements.

BOE will negotiate and execute Contract(s) and all related documents with Contractor(s) and encumber funding in a timely fashion. EBP allocation must be fully expended no later than September 30, 2024. Deliverables and/or activity reports showing percentages of completion must accompany BOE's original signed off invoices to be submitted to EWDD. Disbursements will be authorized pursuant to receipt and satisfactory review by EWDD to ensure compliance with bond covenants and BEA, and that the approved charges adhere to the spending categories and amounts outlined in this transmittal.

BOE will report on its work accomplishments to CAO, and fund expenditures to EWDD, on a quarterly and as-needed basis for their respective reporting to BOC, Mayor and CRA/LA.

BENEFITS TO THE AFFECTED TAXING ENTITIES

The expenditures set forth in this report will provide community benefits in Project Area by bringing greatly needed open space to a neighborhood in South Los Angeles that currently lacks sufficient options for exercise, recreation, and outdoor enjoyment. The Park at Western and Gage Avenues will contain a '‘playmound” for children, exercise equipment and an exercise trail, native plantings and bicycle parking, all of which will promote the health and well-being of the surrounding community. Children in particular will benefit from the well-shaded open space and landform that offers them an opportunity for outdoor play.

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BOC ReportCD 8 Motion 14-1174-S84

Page 5 of 6 October 10, 2019

ENVIRONMENTAL REVIEW

The City of Los Angeles Housing and Community Investment Department provided the environmental analysis below:

The recommended actions are not considered a “project" pursuant to CEQA. Consistent with CEQA Guidelines Section 15378(b)(4), approving the allocation of funds for Project and concurrently withholding any expenditure of those funds pending the completion, review, and consideration of planning and environmental documents and consideration of whether or not to approve Project, is not a project. Such actions are intended to only create a funding mechanism or other government fiscal activity that does not commit to a project that may result in a potentially significant impact on the environment. Instead, the funds would be made available to Project, similar to other regular government budgeting activities. But, just as such occurs with other City budgeting procedures, no construction of Project will occur until the City has complied with CEQA (including the preparation and consideration of an environmental review document, if needed), and until BPW has ultimately reviewed and determined whether or not to approve moving forward with, and expending the funds on, Project.

Accordingly, after preparing preliminary planning and environmental documents, BOE's expenditure of the remainder of funds will not occur until all of the following have occurred: (1) BOE has completed the preliminary planning and environmental review documents; (2) the City has complied with the requirements of CEQA with respect to Project, including obtaining any necessary CEQA clearances prior to final consideration and approval of Project by BPW; and (3) BPW has considered and approved Project. This process is intended to ensure compliance with CEQA by evaluating and considering the environmental impacts before deciding whether to proceed with Project. If BPW ultimately determines not to proceed with Project, the remaining funds will not be used on Project.

Also, consistent with CEQA Guidelines Section 15378(b)(5), preparing preliminary planning and environmental documents is not a project pursuant to CEQA because it is only an administrative activity that will not result in physical changes in the environment. Preparing such preliminary documents does not commit the City to completing Project. Rather, such documents merely facilitate assisting BPW with evaluating whether Project will potentially impact the environment when it considers whether to approve the Project.

CAO COVENANT REVIEW

The CAO has completed its review of the original bond documents, covenants and BSP, and has found that the proposed use of EBP, as presented, is consistent with those documents.

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October 10, 2019BOC ReportCD 8 Motion 14-1174-S84

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FISCAL IMPACT STATEMENT

There is no impact on the City’s General Fund from the proposed allocation of EBP. The CRA/LA EBP Fund No. 57D is funded solely from transfers of approximately $88.4 million in pre-2011 tax allocation bond proceeds from CRA/LA to the City (C.F. 14-1174, 14-1174-S36, and 14-1174-S78). Said Transfers have been deposited with the Office of the Controller.

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ATTACHMENT: Motion (Harris-Dawson - Price) C.F. 11-1174-S84

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ATTACHMENT

cGOHQMfO DBVElmotion

The Cily of Los Angeles has long been committed id establishing open space and park land for public use with over 16,000 aeres of park land under City management in Council District 8, the City owns a parcel of land that is situated w ithin a median at the intersection of Western and Gage Avenue. The adjacent parcel, also within the name median, is owned by CRA/LA, A Designated Local Authority, but will soon transfer ownership to the City. Roth parcels combined Slave been proposed for development of the Western Gage Median Path project

A conceptual design of the park was approved by the community in 2011 and amenities included a transit plazu and shade structure, adult fitness equipment, a mature climbing tree, security lighting, Wal king trail markings, pciimeter fencing, and landscaping with bios wale treatment. The project will vacate a paper alley separating the CRATA-owned parcel and the City-owned parcel, if necessary. The project will also compliment another park protect directly across the st feet on Gage Avenue Funding is needed to assist with the development costs associated with the Western Gage Median Park proj'ect.

Funds are available to Council District 8 through taxable CRA/LA Excess Bond Proceeds from the Western Slausun Redevelopment Project Area that can assist wilh development coats related to the Western Gage Median Park In accordance wit It policies adopted by Council (C F. 14-117<J) related to the CRA/LA Bond Expenditure Agreement and Bona Spending Plan, any proposal to expend GRATA Excess Bond Proceeds shall be initiated byCouncil Mot ion. Proposals will be reviewed by the CRA/LA Bond Oversight Committee, Economic DevelopmentCommittee, and any other applicable committee with final recommendations presented to die Council arid Mayor tor final consideration Slid approval. The use of taxable CRA/LA Excess Bond Proceeds for development of a park at the intersection of Western arid Cage Avenue in the Western Slauson Redevelopment Project Area is an eligible expense identified in the Bond Expenditure Agreement and Bond Spending Plan.

1 'I HERliFORE MOVE that the Council instruct the Economic and Workforce Development Department, with the assistance of the City Administrative Officer. Chief Legislative Analyst. Bureau of Engineering, and any other applicable City department, provide a report with recommendations to the CRA/LA Bond Oversight Committee to allocate all remaining taxable CRA/LA Excess Bend Proceeds available to Council District 8, including any earned interest, for development costs related to the Western Gage Median Park as identified in the Bond Expenditure Agreement and Bond Spending Plan for the Wesiem SJauson Redevelopment Project Area.

t FURTHER MOVE that the Council authorize the expenditure of all remaining taxable CRA/LA Excess Bond Proceeds available to Council District 8, including any earned interest, from the Western Slauson Redevelopment Project Amu to be utilized by BOE for development coats related to the Western Gage Median Park,

PRESENTED B'VM AkOUEF.CE TiARRlS-DAWSON Oouncihaember, 8,KDjstnc1

1SECONDED BYs ytft-sy. i

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