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December 12, 2023
ITEM TITLE
Eucalyptus Park: Amend the Fiscal Year 2023 -24 Capital Improvement Program Budget and Reallocate American Rescue Plan Act Funds from Telegraph Canyon Culvert Repair Project to Eucalyptus Park Improvement Project for Improvements to Existing Park Amenities Report Number: 23-0330
Location: 436 C Street
Department: Development Services
G.C. § 84308: No
Environmental Notice : The Project qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act (“CEQA”) State Guidelines Section 15301 Class 1 (Existing Facilities), Section 15303 class 3 (New Construction or Conversion of Small Structures), and Section 15304 Class 4 (Minor Alterations to Land). Under National Environmental Policy Act (“NEPA”), the activity is exempt pursuant to Title 24, Part 58.34(a)(2)(3) & (10) of the Code of Federal Regulations.
Recommended Action
Adopt a resolution amending the American Rescue Plan Act Spending Plan to reallocate approximately $4.3 million in previously appropriated American Rescue Pl an Act of 2021 monies from the Telegraph Canyon Culvert Repair Project DRN0208 to the Eucalyptus Park Capital Improvement Project PRK0340, funding improvements to existing park amenities. (4/5 Vote Required)
SUMMARY
Eucalyptus Park is an existing 19.69-acre community park serving the northwestern area of Chula Vista. The proposed action requests the reallocation of approximately $4.3 million in previously appropriated American Rescue Plan Act of 2021 (“ARPA”) monies from the Telegraph Canyon Culvert Repair DRN0208 to the Eucalyptus Park Capital Improvement Project PRK0340 to fund improvements to existing park amenities. This additional funding to the Eucalyptus Park Project allows the City to perform comprehensive park upgrades to existing amenities, along with the installation of new park amenities from the California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All of 2018 Parks Bond Act, P a g e | 2
Statewide Park Development and Community Revitalization Program (the “Statewide Parks Program”) grant award at the same time.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed project for compliance with CEQA and has determined that the project qualifies for a Categorical Exemption pursuant to State CEQA Guidelines Section 15301 Class 1 (Existing Facilities), Section 15303 class 3 (New Construction or Conversion of Small Structures), and Section 15304 Class 4 (Minor Alterations to Land) because the proposed actions would not result in a significant effect on the environment, create a cumulative impact, damage a scenic highway, or cause a substantial adverse change in the significance of a historical resource. Under NEPA, the activity is exempt pursuant to Title 24, Part 58.34(a)(2)(3) & (10) of the Code of Federal Regulations. Thus, no further environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
Background
Eucalyptus Park was the first park built within the City of Chula Vista, opening to the public in 1927. It is a 19.69-acre community park which serves the northwestern area of Chula Vista and is heavily utilized by the community. Renovating Eucalyptus Park will provide the community with expanded recreation offerings and enhanced amenities.
Grant Funding
In March 2021, the City submitted a grant application for the Statewide Parks Program Round 4, requesting funding for the renovation of Eucalyptus Park. The City was successful, and on February 2, 2022, the City entered into Grant Contract SW-37-015 for a not to exceed amount of $7,140,000 for the design, pre- construction services, and construction of a portion of Eucalyptus Park. As part of the grant application, $750,000 of the allocated funds were designated to fund a portion of the tenant improvements for Casa Casillas, which is located along Fourth Avenue, immediately adjacent to the park site. On May 3, 2022, the City established the Eucalyptus Park Capital Improvement Program (PRK0340) and appropriated Statewide Parks Program grant funds in the amount of $6,390,000 to the project.
ARPA Funding
On May 10, 2021, the U.S. Department of the Treasury announced the launch of the Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”), established by the American Rescue Plan Act (“ARPA”), to provide $350 billion in emergency funding for eligible state, local, territorial, and Tribal governments.
The SLFRF program provides substantial flexibility for each jurisdiction to meet local needs—including support for households, small businesses, impacted industries, essential workers, and the communities hardest-hit by the crisis.
The City received a total of $57.5 million in ARPA funds, which were appropriated by the City Council with an initial expenditure plan presented on August 24, 2021 . On June 6, 2023, the City Council approved the reallocation of $3,522,558 in previously appropriated ARPA funds towards the Eucalyptus Park renovation.
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The combination of the June 6 th ARPA reallocation and the Statewide Parks Program grant funds total approximately $8.7 million for new park amenities identified in the Eucalyptus Park Master Plan (Attachment 1). This budget does not cover the costs of upgrading existing park amenities within the Park.
Since June 6 th, the City h as been preparing the documents necessary to obtain permits for the various new park amenities. Construction of the new park amenities will require the entire Park to be closed , impacting the surrounding community. City staff is requesting additional ARPA funding in order to make improvements to the existing park amenities during this necessary park closure.
Allowing the City to upgrade existing amenities simultaneously with the installation of new Park amenities will capitalize on a planned park closure and reduce future impacts to the surrounding community. The existing amenities that are proposed to be funded with this action are provided in Attachment 2 of this report.
This action proposes to reallocate $4,287,725 in previously appropriated ARPA funds towards the Eucalyptus Park renovation by amending the ARPA Spending Plan to reallocate funds from the Telegraph Canyon Culvert Repair CIP Project (DRN0208) to Eucalyptus Park Improvement CIP Project (PRK0340) within the Revenue Replacement Expenditure Category, as detailed in Table 1 below. Because both projects are included in the Revenue Replacement Expenditure Category, this reallocation has no net impact to the Spending Plan summary.
City of Chula Vista - ARPA Spending Plan
FY 2022 FY 2023 FY 2024 FY 2024 Total Budget
with Proposed
Adjustments Category Final Budget Final Budget Revised Budget Proposed
Adjustments
EC 1 - Public Health $ 9,867,625 $ 9,867,625 $ (18,751,868) $ - $ 983,382 HVAC (Project GGV0261) 9,000,000 8,900,000 (17,900,000) - - COVID Testing/Vaccinations 667,625 367,625 (851,868) - 183,382 SBCS Domestic Violence 200,000 200,000 - - 400,000 Casa Nueva Vida DV Shelter - 400,000 - - 400,000 EC 2 - Negative Economic Impacts $ 300,000 $ 3,822,558 $ (3,522,558) $ - $ 600,000 Jacobs and Cushman San Diego Food
Bank 100,000 100,000 - - 200,000 Alpha Project - Take Back the Streets 100,000 100,000 - - 200,000 Homeless Supportive Services 100,000 100,000 - - 200,000 Eucalyptus Park - 3,522,558 (3,522,558) - - EC 2 - Economic Development $ 2,900,000 $ - $ (51,951) $ - $ 2,848,049 Small Business Grants 2,600,000 - - - 2,600,000 Choose Chula 100,000 - - - 100,000 Curb/Sidewalk Café Grant 200,000 - (51,951) - 148,049 EC 4 - Premium Pay to Essential
Workers $ 916,000 $ 1,541,000 $ - $ - $ 2,457,000 EC 5 - Infrastructure $ 900,000 $ - $ (900,000) $ - $ - EC 6 - Revenue Replacement $ 11,592,750 $ 15,827,692 $ 23,226,377 $ - $ 50,646,819 Governmental Funds 11,592,750 15,827,692 23,226,377 - 50,646,819 EC 7 - Administrative Expenses $ - $ - $ - $ - $ - TOTAL $ 26,476,375 $ 31,058,875 $ - $ - $ 57,535,250 P a g e | 4
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found that ,Mayor John McCann, has real property holdings within 500 feet of the boundaries of the property which is the subject of this action.
Consequently, pursuant to California Code of Regulations Title 2, sections 18700 and 18702.2(a)(7), this item presents a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal.
Gov't Code § 87100, et seq.) for the above-identified member.
Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Approval of the resolution reallocates $4,287,725 in previously appropriated ARPA funds from the Telegraph Canyon Culvert Repair CIP Project ( DRN0208) and increases the Eucalyptus Park CIP Project (PRK0340).
Grant funds totaling $6.4 million and ARPA funds totaling $3.5 million were previously appropriated to the project.
ONGOING FISCAL IMPACT
Upon completion of the proposed improvements, the City will incur park operation and maintenance costs.
As an existing park, the operation and maintenance of the existing amenities are included in the current Public Works Department budget. The City will incur incremental additional operation and maintenance costs associated with new park amenities (e.g., interactive water feature). Funds to provide this additional maintenance will be included in future operating budgets.
ATTACHMENTS
1. Park Master Plan approved on June 3, 2023
2. Updated Park Master Plan to upgrade existing amenities
Staff Contact: Laura C. Black, AICP, Director of Development Services