FORM GEN. 160

CITY OF LOS ANGELESINTER-DEPARTMENTAL CORRESPONDENCE

CAO W.A. #0111-31341-0000 C.F. 14-1174-S10 Council District 4

August 11, 2016Date:

To: The Council

Miguel A. Santana, City Administrative Officer Chair, CRA/LA Bond Oversight Committee

From:

TRANSMITTAL - REPORT FROM THE EWDD TO APPROPRIATE $400,000 IN CRA- LA EXCESS BOND PROCEEDS FROM THE WILSHIRE CENTER/KOREATOWN REDEVELOPMENT PROJECT AREA WITHIN COUNCIL DISTRICT 4 FOR INFRASTRUCTURE IMPROVEMENTS

Subject:

At the CRA/LA Bond Oversight Committee (BOC) meeting on July 28, 2016, the Committee considered the attached report from the Economic and Workforce Development Department (EWDD) and adopted the recommendations. The recommendations, as adopted by the BOC, and now forwarded for Mayor and Council consideration below are:

That the Council, subject to the approval of the Mayor:

1. APPROVE $400,000 in CRA/LA Excess Bond Proceeds available to CD 4 from the Project Area within the district be utilized to rehabilitate public infrastructure;

2. AUTHORIZE the Controller to:

a. Establish a new account 22N174, titled "BPW Office of Community Beautification" within the CRA/LA Excess Non-Housing Bond Proceeds Fund No. 57D.

b. Transfer appropriations within the CRA/LA Excess Non-Housing Bond Proceeds No. 57D as follows:

Fund

Acct. No. Acct. Name Amount

From:22LT9TT Wilshire Center/Koreatown Taxable (Series A) 55,602.01

22L9TT Wilshire Center/Koreatown Taxable (Series B) 226,603.68

Wilshire Center/Koreatown Tax Exempt (Series C)22L9TN 93,294.31

$375,500.00TotalTo:

BPW, Office of Community Beautification 375,500.0022N174

$375,500.00Total

-2 -

Increase Fund 100/74 appropriations as follows:c.

Acct. No. Acct. Name Amount

003040 Contractual Services 375,500

d. Expend funds up to $24,500 within CRA/LA Excess Non-Housing Bond Proceeds Fund No. 57D, Account 22L9TN, titled "Wilshire Center/Koreatown Tax Exempt", upon presentation of proper documentation and demand of the General Manager, EWDD, or designee, pursuant to a contract with Beautify Earth for public improvements;

3. AUTHORIZE EWDD to transfer cash up to $375,500 from CRA/LA Excess Non-Housing Bond Proceeds Fund No. 57D, Department 22, Account 22N174, titled BPW Office of Community Beautification to General Fund 100/74;

4. AUTHORIZE the Board of Public Works, Office of Community Beautification to amend its existing contract with the Los Angeles Beautification Team (LABT) for beautification and graffiti abatement services (Contract No. C-122619) to include corridor and building fagade beautification along Western Avenue between Melrose Avenue and 3rd Street. The improvements will include small business fagade improvements, improved signage, street furniture, landscaping and/or other aesthetic improvements that are prioritized by the community;

5. AUTHORIZE the Board of Public Works, Office of Community Beautification on behalf of City Plants (Million Trees LA Trust Fund) to amend its existing contract with the Los Angeles Conservation Corp. (Contract No. C-124509) to purchase, plant, and maintain street trees along Western Avenue from Melrose Avenue to 3rd Street;

6. AUTHORIZE the General Manager, EWDD, or designee, to negotiate and execute a contract in an amount not to exceed $24,500 with Beautify Earth for public art improvements subject to a Charter Section 1022 determination; and

7. AUTHORIZE the General Manager, 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 Office of the City Administrative Officer (CAO) and authorize the Controller to implement these instructions.

FISCAL IMPACTThere is no impact on the City’s General Fund from the proposed allocation of CRA-LA Excess Bond Proceeds. The CRA/LA Excess Non-Housing Bonds Proceeds Fund No. 57D is funded solely from the transfer of approximately $84.1 million in pre-2011 tax allocation bond proceeds from CRA/LA to the City (CF 14-1174). Said transfer has been deposited with the Office of the Controller.

Attachment MAS:SMR:15170003

Item 3

City of Los AngelesCALIFORNIA

ECONOMIC AND WORKFORCE DEVELOPMENT DEPARTMENT

JAN PERRY GENERAL MANAGER

1200 W. 7th Street Los Angeles, CA 90017

ERIC GARCETTIMAYOR

July 28, 2016

Council File: 14-1174-S10 Council District No.: 4 Contact Persons & Extensions: Meg Barclay: (213) 744-9340

CRA/LA Bond Oversight Committee c/o Stephanie Magnien Rockwell Office of the City Administrative Officer Room 1500, City Hall East ‘

COMMITTEE TRANSMITTAL: REQUEST COMMITTEE REVIEW ANDRECOMMENDATION TO COUNCIL TO APPROPRIATE $400,000 IN CRA/LA EXCESS BOND PROCEEDS FROM THE WILSHIRE CENTER/ KOREATOWN REDEVELOPMENT PROJECT AREA FOR INFRASTRUCTURE IMPROVEMENTS

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

SUMMARY

Transmitted herewith for your review, approval and further processing are recommendations pursuant to Motion (Ryu - Wesson) dated June 10, 2016 which was adopted by Council on June 17, 2016 (C.F. 14-1174-S10). The Motion proposes to appropriate $400,000 in Community Redevelopment Agency of the City of Los Angeles’ non-housing Excess Bond Proceeds (EBP) available to Council District (CD) 4 from the Wilshire Center/Koreatown Project Area (Project Area) for public infrastructure improvements along Western Avenue between Melrose Avenue and 3rd Street. The proposed use of funds is permissible under the Bond Spending Plan (BSP) adopted by City Council on October 29, 2014 (C.F. 14-1174). Sufficient funds for this purpose are available from CD 4's portion of the EBP in this Project Area.

RECOMMENDATIONS

The General Manager, EWDD, requests that the Bond Oversight Committee review, approve and process the following recommendations for Council approval:

BOC Report - CD 4 Motion Page 2 of 7 July 28, 2016

1. APPROVE $400,000 in CRA/LA Excess Bond Proceeds available to CD 4 from the Project Area within the district be utilized to rehabilitate public infrastructure;

2. AUTHORIZE the Controller to:a. Establish a new account 22N174, titled “BPW Office of Community

Beautification” within the CRA/LA Excess Non-Housing Bond Proceeds Fund No. 57D.

b. Transfer appropriations within the CRA/LA Excess Non-Housing Bond Proceeds Fund No. 57D as follows:

Acct No. Acct. Name AmountFrom:

Wilshire Center/Koreatown Taxable (Series A)____________________

Wilshire Center/Koreatown Taxable (Series B)

55,602.0122L9TT

22L9TT 226,603.68

Wilshire Center/Koreatown Tax Exempt (Series C)_______________________22L9TN 93,294.31

$375,500.00TotalTo:22N174 BPW, Office of Community Beautification 375,500.00

$375,500.00Total

c. Increase Fund 100/74 appropriations as follows:

Acct No. Acct. Name Amount003040 Contractual Services 375,500

d. Expend funds up to $24,500 within CRA/LA Excess Non-Housing Bond Proceeds Fund No. 57D, Account 22L9TN, titled” Wilshire Center/Koreatown Tax Exempt”, upon presentation of proper documentation and demand of the General Manager, EWDD, or designee, pursuant to a contract with Beautify Earth for public improvements;

3. AUTHORIZE EWDD to transfer cash up to $375,500 from CRA/LA Excess Non­Housing Bond Proceeds Fund No. 57D, Department 22, Account 22N174, titled BPW Office of Community Beautification to General Fund 100/74;

4. AUTHORIZE the Board of Public Works, Office of Community Beautification to amend its existing contract with the Los Angeles Beautification Team (LABT) for beautification and graffiti abatement services (Contract No. C-122619) to include corridor and building fagade beautification along Western Avenue between Melrose Avenue and 3rd Street. The improvements will include small business fagade improvements, improved signage, street furniture, landscaping and/or other aesthetic improvements that are prioritized by the community;

BOC Report - CD 4 Motion Page 3 of 7 July 28, 2016

5. AUTHORIZE the Board of Public Works, Office of Community Beautification on behalf of City Plants (Million Trees LA Trust Fund) to amend its existing contract with the Los Angeles Conservation Corp. (Contract No. C-124509) to purchase, plant, and maintain street trees along Western Avenue from Melrose Avenue to 3rd Street;

6. AUTHORIZE the General Manager, EWDD, or designee, to negotiate and execute a contract in an amount not to exceed $24,500 with Beautify Earth for public art improvements subject to a Charter Section 1022 determination; and

7. AUTHORIZE the General Manager, 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 Office of the City Administrative Officer (CAO) and authorize the Controller to implement these instructions.

FISCAL IMPACT STATEMENT

There is no impact on the City’s General Fund from the proposed appropriation of CRA/LA EBP. The CRA/LA Excess Non-Housing Bonds Proceeds Fund No. 57D is funded solely from the transfer of approximately $84.1 million in pre-2011 tax allocation bond proceeds from CRA/LA to the City (C.F. 14-1174). Said transfer has been deposited with the Office of the Controller.

BACKGROUND

Pursuant to the dissolution of the former Community Redevelopment Agency of the City of Los Angeles on February 1, 2012, CRA/LA, a Designated Local Authority (CRA/LA) was established on February 3, 2012 to serve as the successor agency. AB 1484, which passed the State legislature on June 27, 2012, permits eligible successor agencies to use unobligated pre-2011 tax allocation bond proceeds (Excess Bond Proceeds) for new obligations, as long as the funds are used in a manner consistent with the original bond covenants.

To that end, the City of Los Angeles (City) executed a Bond Expenditure Agreement (BEA) with CRA/LA in January 2015 which authorized the transfer of approximately $84.1 million in EBP from the CRA/LA to the City. The $84.1 million was generated by 26 bond issues of which 7 were tax exempt ($41.4 million), and 19 were taxable ($42.6 million). The EBP is to be spent on bond eligible purposes that are of maximum benefit to the City, and the affected taxing entities including the County, School District, and Community College District. The EBP does contain provisions for 16% of taxable EBP to be expended on staff administration and project evaluation costs.

The City Council also adopted a Bond Spending Plan (BSP) which was created by the offices of the Mayor, City Administrative Officer, Chief Legislative Analyst, EWDD, Housing and Community Investment Department (HCID), and Bureau of Engineering (BOE) to implement the BEA. The BSP delineates each redevelopment project area’s available EBP broken down by their taxable or tax-exempt origin; and outlines permissible investments by project, program and activity per project area as follows:

BOC Report - CD 4 Motion Page 4 of 7 July 28, 2016

1. Public Infrastructure - Capital improvements to roadways, utility infrastructure, streetscapes and sidewalks;

2. Community Facilities/Open Space - Land acquisition, new construction and improvements to schools, libraries, community centers, parks, public plazas, museums, theaters;

3. Affordable Housing Projects - Land acquisition, new construction, rehabilitation of existing buildings, and preservation of affordability covenants; and

4. Business Assistance and Catalytic Commercial Development - Establishment and investment in Business Districts to create jobs, fagade programs, technical assistance to small businesses, development of underutilized/contaminated sites to address blight, develop catalytic projects to attract private investment, and rehabilitation of historic/commercial buildings.

Additionally, potential projects, including high priority investments, are identified per project area.

The City will use the EBP for redevelopment purposes for which the bonds were sold and consistent with the applicable bond covenants as set forth in the bond documents, BEA, applicable provisions of the Community Redevelopment Law and Redevelopment Plans, and the BSP. The BSP allows the City to transfer funds between projects, programs and activities as long as the funds remain within the Redevelopment Project Area from which the EBP are derived.

CD 4 EXCESS BOND PROCEEDS AND PROPOSED PROGRAM ACTIVITIES

CD 4 is entitled to $2,711,872 in Excess Bond Proceeds over 4 project areas: East Hollywood/Beverly, Hollywood, North Hollywood and Wilshire Center/Koreatown. CD 4’s EBP consist of $836,162 in tax-exempt bond proceeds, and $1,875,709 in taxable bond proceeds in all 4 project areas. The details are reflected below:

CD 4 sPercentage

Share of ProjectArea EBP

Tax-ExemptBond

Proceeds

TaxableBond

Proceeds

Total Bond Proceeds in Project Area

CRA Project Area

$1,221,789 $1,221,789East Hollywood/Beverly_______Hollywood

$38% 0

$653,528 $ 160,062 $ 813,59011%$ 64,840North Hollywood 2% $ 64,840 $ 0

$117,794 $ 493,859 $ 611,653Wilshire Center/ 6.34%Koreatown

$2,711,872TOTAL $836,162 $1,875,710

BOC Report - CD 4 Motion Page 5 of 7 July 28, 2016

The approved bond spending within project areas containing portions of CD 4 total $23,501,025. The proposed bond spending within each redevelopment area does not provide a breakdown per Council District. The projects, programs and activities are broken down as follows along with the potential projects identified for each project area:

i otalCommunityFacilities

AffordableHousing

BusinessAssistanceCRA Project Area Infrastructure Project Area

SpendingEast Hollywood/ Beverly_______ $ 500,000 $ 500,000 $ $2,215,234 $3,215,2340

Hollywood $3,441,163 $1,500,000 $1,000,000 $1,455,105 $7,396,268$3,000,000 $ 241,994 $ $North Hollywood 0 0 $3,241,994

Wilshire Center/$ $6,647,529 $9,647,5290 $1,000,000 $2,000,000Koreatown$6,941,163 $5,670,339TOTAL $8,889,523 $2,000,000 $23,501,025

ANALYSIS AND RECOMMENDATIONS

CD 4’s motion (Motion), adopted by Council on June 17, 2016 (C.F. 14-1174-S10), proposes to invest $400,000 in available EBP to implement public infrastructure improvements along Western Avenue between Melrose Avenue and 3rd Street.

EWDD has consulted with CD 4 staff and the Board of Public Works, Office of Community Beautification (Office of Community Beautification) regarding the Motion and the scope of work for the contractual work to be performed by the Los Angeles Beautification Team (LABT), Los Angeles Conservation Corps (LACC), and Beautify Earth.

This project has three components:

$300,000 $ 75,500 $ 24,500 $400,000

Fagade Program (LABT)Street trees (LACC)Public Art Improvements (Beautify Earth)

Upon approval by Council, the Office of Community Beautification will amend its existing contract with LABT for beautification and graffiti abatement services (Contract No. C- 122619). The additional services will include corridor and building fagade beautification along Western Avenue between Melrose Avenue and 3rd Street. The budget for this contract amendment is $300,000. EWDD will review the scope of work for this amendment to ensure consistency with this action. LABT will be responsible for meeting the following project goals:

BOC Report - CD 4 Motion Page 6 of 7 July 28, 2016

• Engaging small businesses on Western Avenue around their needs for storefront and streetscape improvements;

• Providing feasible options for these storefront and streetscape improvements to business owners for their final approval;

• Installing final physical improvements; and• Establishing a maintenance plan for new physical improvements over a 5 year

time period.

Specific tasks and deliverables include:

TASK 1: Project administration TASK 2: Outreach

Deliverable 2.1: Canvass all small businesses along Western Avenue Deliverable 2.2: Host small business gathering along the corridor Deliverable 2.3: Host a community workshop Deliverable 2.4: Unveil final designs Deliverable 2.5: Unveil improvements

TASK 3: ResearchDeliverable 3.1: Conduct needs assessment for corridor Deliverable 3.2: Identify project location on Western (no less than 4 blocks, no more than 6 blocks)

TASK 4: Designs and entitlementsDeliverable 4.1: Draft preliminary designs for visual improvements Deliverable 4.2: Final designs for visual improvements

TASK 5: Secure permits and entitlementsTASK 6: Construction and installation of aesthetic corridor improvements TASK 7: Establish a maintenance plan for constructed materials and final

products

LABT’s work is expected to be completed within 10 months. The Office of Community Beautification will report back to EWDD regarding work accomplishment for this component and funds expended for EWDD’s monthly Bond Oversight Committee status reports, as well as EWDD’s quarterly and semi-annual reports to CRA/LA. EWDD will consult with CD 4 to ensure that the work performance meets with their requirements.

The second component of this project involves planting additional trees along Western Avenue between Melrose Avenue and 3rd Street. Upon approval by Council, the Office of Community Beautification will amend its existing contract with LACC (Contract No. C-124509) to purchase, plant and maintain new trees along the corridor. BSS located 35 empty tree wells on the corridor. The budget for purchasing new trees is approximately $7,000; the budget for planting trees is approximately $33,000; the budget to maintain these new trees and existing trees along the corridor is $35,500. EWDD will review the scope of work for this amendment to ensure consistency with this action. The planting will take approximately one month, and is scheduled to be completed in November 2016. The Office of Community Beautification will report back to EWDD regarding work accomplished in this component, and funds expended for the EWDD’s monthly Bond Oversight Committee status reports, as well as EWDD’s

BOC Report - CD 4 Motion Page 7 of 7 July 28,2016

quarterly and semi-annual reports to CRA/LA. EWDD will consult with CD 4 to ensure that the work performance meets with their requirements.

The third component is budgeted for public art improvements. Upon approval by Council, the EWDD will develop, in consultation with CD 4, a sole source contract with Beautify Earth, a 501 c3 not-for-profit group. A determination pursuant to Charter Section 1022 that this work cannot otherwise be performed by a City employee possessing the appropriate expertise will be required prior to contract execution.

The services to be provided by Beautify Earth are to create murals on walls and utility boxes along the corridor and paint walls at:

« 641 N. Western Avenue 646 N. Western Avenue 225 N. Western Avenue 4996 Melrose Avenue 165 N. Western AvenueOther locations, including City-owned utility boxes between 3 Melrose Avenue

rd Street and

The budget for this work is $24,500. These public art improvements will begin in the first quarter of FY 2016-17, and will be completed in the second quarter of FY 2016-17 pending permission by new property owners to be identified for their walls to be painted. EWDD will consult with CD 4 to ensure that the work performance meets with their requirements. EWDD will report work accomplished in this component, and . funds expended in the monthly Bond Oversight Committee reports, as well as EWDD’s quarterly and semi-annual reports to CRA/LA.

The CAO has reviewed the original bond documents and finds that the proposed use of excess bond proceeds, as presented, is consistent with those covenants. EWDD concurs with the use of $55,602.01 in taxable bond proceeds (Wilshire/Koreatown, Taxable Series A); $226,603.68 (Wilshire/Koreatown, Taxable Series B) and $117,794.31 in tax-exempt bond proceeds (Wilshire/Koreatown, Tax-exempt Series C) for this purpose. It is recommended that $400,000 in CRA/LA EBP be appropriated for the purposes outlined in the Motion.

JAN PERRY 'Gene/al Manager

JP:SH:MB:MMS:RBV

Attachment: Motion (Ryu - Wesson)

■ *1 ON NEXT t\ nr POSTED

(MOTION , r— ( CM #54'S’Ii :

In accordance with policies adopted by Cbuncll(C;F. i4--1174V’Ttelated to the fRA/I A Bonn firprmfimr-r Agreement and Bond Spending Plan, any proposal to'expend CRA/LA Excess Bond Proceeds shall be initiated byCouncil Motion. Proposals will be reviewed by the CRA/LA Bond Oversight Committee, Economic Development Committee, and any other applicable committee with final recommendations presented to the Council and Mayor

for final consideration and approval.

In June 2014, the Mayor announced the Great Streets Initiative that aims to improve neighborhood gathering places and generate economic activity by revitalizing key community corridors. The streets of Los Angeles

make up about 13 percent of all land In the City which translates to approximately 6,500 centerline miles. By focusing on transforming this valuable and underutilized public asset in a manner that supports thriving

neighborhoods, the Great Streets Initiative activates the public realm, provides economic revitalization, increases public safety, enhances local culture, and builds great communities. The goal is to reimaglne the public streetscape throughout the City to create gathering places for residents and visitors to come together to shop, eat, work, or just enjoy at their leisure. There are currently 15 streets, one in each Council District, identified as part of the Great Streets Initiative, including Western Avenue in Council District Four (CD4).

Located at the northern end of Koreatown and the southern end of East Hollywood, Wilshire Center and St. Andrews Square, Western Avenue serves its community with mom-and-pop restaurants, personal services, furniture stores, and home-oriented shops. CD4 is interested in the design and implementation of public Improvements along Western Avenue between 3rt Street and Melrose Avenue that meet the goals and objectives

of the Great Streets program. Furthermore, CD4 would like to explore the possibility of including public improvements that benefit a Safe Routes to School project along a portion of Western Avenue. Safe Routes to School Is both a State and Federal program aimed at improving the safety and wa Mobility of common routes children

take to and from school each day. Use of CRA/LA Excess Bond Proceeds as local match dollars would provide for a more competitive Safe Routes to School grant application.

I THEREFORE MOVE that both tax-exempt and taxable CRA/LA Excess Bond Proceeds available to Council District Four In an amount not to exceed $400,000 from the Wilshire Center/Koreatown Redevelopment Project Area be used to implement public infrastructure improvements along Western Avenue between 3rd Street and

Melrose Avenue.

I FURTHER MOVE that the Economic and Workforce Development Department, with the assistance of theCity Administrative Officer, Chief Legislative Analyst, Council District Four, and any other applicable City

department, provide a report with recommendations to the CRA/LA Bond Oversight Committee to allocate both

tax-exempt and taxable CRA/LA Excess Bond Proceed not to exceed $400,000 to implement public infrastructure improvements along Western Avenue between 3rd Street and Melrose Avenue, as described above and identified

in the Bond Expenditure Agreement and Bond Spending Plan for the Wilshire Center/Koreatown Redevelopment Project Area. _r

HWWWti

PRESENTED BY nRYU ET

Councilmember, 4™ District ,c*

;€SECONDED BYi

r •

jut* \ * W* s<*w >OOIi i-i'-