HomeMy WebLinkAbout12/19/2001 - STAFF REPORTS (22) DATE: December 19, 2001
TO: City Council
FROM: Director, Department of Parks, Recreation and Facilities
A #
MEASURE Y CONTRIBUTION FOR PALM SPRINGS SKATE PARKAND SWIM CENTER
PROJECT
RECOMMENDATION:
That the City Council approve the attached Resolution which would authorize a
$500,000 advance from future Measure Y allocations, to be repaid at $100,000
annually from such Measure Y allocations, for construction of the Palm Springs
Skate Park and Swim Center project and approve a budget amendment
appropriating the $500,000 from said advance.
SUMMARY:
By authorizing the proposed loan to the Palm Springs Skatepark account, funds
will become available to immediately proceed with drafting a design and
construction contract with an architect to build the project. This will allow progress
to occur independent of the Parks and Recreation Commission's fund-raising
efforts and will ultimately speed the construction of the project. The proposed loan
will reduce the annual Measure Y allocation to the Parks and Recreation Division
by $100,000 per year for the next five years to repay the $500,000 loan as
proposed. Throughout the document preparation and construction phases, the
commission pledges to move ahead with its fund-raising efforts to reduce this
amount to the best of its members' ability.
BACKGROUND:
Each year, the Parks and Recreation Commission receives an annual allocation
of$267,000 from the City's Utility Users Tax(U UT)for capital improvements to City
parks and recreational projects. The Parks and Recreation Commission's Skate
Park Fund Raising Subcommittee has met and feels, in an effort to begin the
construction of the skate park in a timely fashion, that an immediate infusion of
capital is needed to move forward on the project.This capital infusion is proposed
to come from future Measure Y allocations through a loan payback program. This
method of financing is suggested rather than relying solely upon private donations
to fill the current funding gap so that construction can begin. If this funding device
is approved, the commission pledges to continue its efforts in obtaining donations
to construct the facility so that previously identified Measure Y capital projects will
not be further delayed or sacrificed as a result of constructing the skate park and
the swim center improvements.
MEASURE Y CONTRIBUTION FOR PALM SPRINGS SKATE PARKAND SWIM CENTER
PROJECT
DATE: December 19, 2001
PAGE: Two
The subcommittee is requesting that City Council authorize a no-interest loan from
the City's Community Promotion Fund in the amount of$500,000. This cash loan
would then be allocated to the skate park construction fund. This amount, based
upon current budget estimates and used in conjunction with funds already
accumulated from prior year allocations and Proposition 12 funds, is believed to
be sufficient to construct the principal project. Moving ahead in this manner will
allow staff to immediately proceed in the development of construction contracts
and documents that would otherwise have to wait until sufficient funds are
available.
Staff and the subcommittee believe that proceeding in this manner is the best
option to consider at this time so that the Palm Springs Skate Park and Swim
Center project can be developed and constructed in the shortest possible period.
This proposed funding mechanism will cause the project to move forward in a
positive direction without relying solely upon private donations to realize its
completion.
At its November 21 meeting, the Parks and Recreation Commission voted
unanimously(8/0)to recommend that City Council authorizethis annual no-interest
contribution.
i
iS`COTT MIKESELL, Director
Department of Parks, Recreation and Facilities
APPR ED:
City Manager
ATTACHMENTS:
1. Resolutions (2) REVIEWED BY DEPT. OF FINANCE
/`A�z
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, AUTHORIZING A $500,000 ADVANCE TO BE
REPAID AT $100,000 ANNUALLY FROM MEASURE Y
ALLOCATIONS AND/OR DONATIONS FOR CONSTRUCTION OF
THE PALM SPRINGS SKATE PARK AND SWIM CENTER
PROJECT.
WHEREAS Ordinance No. 1454, Chapter 3.32 of the Palm Springs Municipal Code
reinstated the Utility Users Tax (UUT) effective September 30, 1993; and
WHEREAS the UUT rate was established at 5% of electric, gas, and telephone usage; and
WHEREAS, on September 1, 1998, the City Council reduced the UUT collection rate to
4.5%; and
WHEREAS,on March 15,2000,the City Council established the collection rate be set at 5%
according to Ordinance No. 1454; and
WHEREAS, in November 1999, the voters of Palm Springs approved an advisory ballot
measure to annually allocate $400,000 of the collections from the UUT for improvements
to City parks, leisure and recreational activities;
WHEREAS, the$400,000 allocation will be apportioned each year, with $133,000 going to
the Palm Springs Library and the remaining $267,000 going to the Parks and Recreation
Division for facility improvements,
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs that
a $500,000 loan is authorized for construction of the Palm Springs Skate Park and Swim
Center project, to be repaid annually at $100,000 from Measure Y Utility User Tax
allocations and/or donations over a five-year period.
ADOPTED this day of 2001.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED &APPROVED AS TO FORM
/`
RESOLUTION NO.
OFTHE CITYCOUNCILOF THE CITYOF PALM SPRINGS,
CALIFORNIA,AMENDING THE BUDGET FOR THE 2001-02
FISCAL YEAR.
WHEREAS Resolution 20062 approving the budget for the fiscal year2001-02was adopted
on June 6, 2001; and
WHEREAS the City Manager has recommended, and the City Council desires to approve,
certain amendments to said budget;
NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to record
inter-fund cash transfers as required in accordance with this Resolution, and that Resolution
20062, adopting the budget for the 2001-02 fiscal year is hereby amended as follows:
SECTION 1. ADDITIONS
Fund Activity Account Amount
261 2493 51516 $500,000
Capital Projects Park Improvements Palm Springs Skatepark
Purpose To provide funds for construction of the skate park. Community Promotion
Fund reserves to be repaid via a $100,000-per-year reduction in the
Measure Y funding and/or donations received from the community.
SECTION 2. SOURCE
Fund Activity Account Amount
112 29322 $500,000
Community Promotion Transfers to Other Funds
Adopted this day of 2001.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED AND APPROVED /10w