PURPOSE

This resolution requests the City Council to approve capital project uses funded with CDBG and include them in the FY 2004-05 Annual Plan and Final Statement of Community Development Objectives and Projected Use of Funds.

BACKGROUND

Burbank submits an Annual Plan and applications for federal funds, including CDBG, pursuant to regulations dated January 5, 1995, covering 24 CFR Part 91, Consolidated Submissions for Community Planning and Development Programs.  Both the Annual Plan and the Final Statement describe activities/projects planned to accomplish goals and objectives stated in the Consolidated Plan (FY 2003-08).  Activities eligible under the CDBG program must principally benefit persons of low and moderate income, aid in the prevention or elimination of slums and blight, or address community development needs having a particular urgency.  For Burbank, CDBG funds are used for capital improvement projects, public services and program administration.

The Annual Plan and Final Statement of Community Development Objectives and Projected Use of Funds are scheduled for formal submission in May 2004.  However, due to U.S. Department of Housing & Urban Development (HUD) regulations regarding the timeliness of CDBG expenditures, capital project requests are being accepted earlier for City approval, allowing sufficient lead time for completing pre-development tasks such as project design, preparation of specifications and bid scheduling.  This advanced implementation process permits projects to go forward immediately when federal applications are approved and funds are budgeted by HUD.

ANALYSIS

By February 2004, the City will receive HUD�s entitlement allocation notice for FY 2004-05.  Meanwhile, the CDBG capital amount is estimated at $1,104,242 based on last year�s entitlement.  When the Annual Plan and Final Statement are approved in April 2004, capital project approvals will be amended to equal the actual entitlement and other fund sources.  At that time, appropriations for program administration and public services will be approved at the statutory limits of 20 percent and 15 percent, respectively.  CDBG funds are expected to total approximately $1.7 million.

Capital project fund availability and a request for proposals was advertised and noticed to departments/agencies on October 4 and October 8, 2003, with proposals accepted until November 7, 2003.  Six City departments/organizations submitted 13 projects totaling $2.1 million in requests.

The Community Development Goals Committee met on November 20, 2003, to review proposals and make recommendations.  The Committee�s rationale for project approvals is predicated on creating a direct/visual impact, benefiting the appropriate citizenry, or providing funds where resources are limited or non-existent.  Consistent with this methodology is a non-recommendation for City Code Enforcement and only a partial recommendation for infrastructure improvements.  The partial funding recommended for Public Works is to be utilized by the Department on priority projects that can be quickly implemented and spend funds.  Other projects are recommended at the proposal amount:

1. Public Works Department (All Projects)                                                       $328,242

2. Washington Elementary School Exterior Lighting & PA System               $  41,500

3. Washington Elementary School Fencing & Security Gate                         $  18,000

4. Disney Elementary School Exterior Lighting & PA System                       $  33,500

5. Burbank Center for the Retarded � Utility/Storage Cabinets                    $  15,000

7. Build Rehabilitation Industries � Facility Improvements                             $  70,000

8. Burbank Temporary Aid Center � 2-Story Addition/Bldg. Renovation     $598,000

                                                                                    Total:                             $1,104,242

Burbank Temporary Aid Center�s (BTAC) proposal is a two-year project with an amended total construction cost estimated at $924,000-$960,000, and a CDBG share totaling $832,000-$868,000 (BTAC share: $92,000).  Phase 1 for year one of the project entails demolishing the existing rear structure and constructing a new 2-story addition, with the core elements (certificate of occupancy) completed the first year.  BTAC estimates that Phase 1 can be completed for approximately $575,000-$598,000.  CDBG required for Phase 2, year two, to complete improvements to the addition and renovate/improve the front building of the facility would total $257,000-$293,000.  BTAC will submit its CDBG proposal for year two (Phase 2) next year. (Note: Above costs do not include any temporary relocation and professional services projected to be $69,500).

Executive Staff met on November 19 and December 3, 2003 to review proposals and finalize their recommendation listed below:

1. Public Works Department (All Projects)                                                       $273,958

2. CDD-License & Code Services Code Enforcement                                  $147,284

3. Washington/Disney Elementary Schools (All Projects)                               $  50,000

4. Burbank Center for the Retarded � Utility/Storage Cabinets                      $  15,000

5. Build Rehabilitation Industries � Seismic Retrofitting & New Roof             $  43,000

6. Burbank Temporary Aid Center � 2-Story Addition/Bldg. Renovation       $575,000

                                                                                    Total:                                $1,104,242

Compared with the Goals Committee, there is one major difference in its recommendation for Code Enforcement ($147,284), where staff feels this service maintains the viability and integrity of neighborhoods in CDBG areas, and cannot be presently funded with other resources.  To fund the Code Enforcement program, other projects are recommended at lesser amounts when compared to the Goals Committee recommendation.  Differences include $54,284 less for Public Works, $43,000 less for Burbank Schools, $27,000 less for Build Rehabilitation Industries, and $23,000 less for Burbank Temporary Aid Center.

The partial funding recommended for Public Works is to be utilized by the Department on priority projects while School District projects are left to their discretion, although staff prefers its recommendation ($50,000) to be utilized for the exterior lighting projects.  In its recommendation for school projects, staff gives preference to joint-use projects that benefit schools and the City, and/or schools and surrounding area residents.

Staff�s recommendation for Build Rehabilitation Industries ($43,000) is to cover seismically retrofitting the facility and a new roof, while the recommendation for BTAC covers their Phase 1 estimated cost.  All projects as recommended by the Community Development Goals Committee and the Executive Staff are reflected on Exhibit A, CDBG Capital Projects (Fiscal Year 2004-05).

FISCAL IMPACT

HUD notification of the City�s award of CDBG funding for FY 2004-05 will not be known until approximately February 2004. 

RECOMMENDATION

STAFF RECOMMENDS THAT THE CITY COUNCIL ADOPT THE PROPOSED RESOLUTION.

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