PURPOSE

This report requests the City Council to approve a budget amendment to Fund 122-CD25A-63051 by adding unprogrammed CDBG funds of $231,967.47 to account number 122-CD25A-63051-1061 and change the account name from Public Works � Olive Avenue Reconstruction to Public Works � Third Street Reconstruction.

BACKGROUND

On April 20, 2004, the Burbank City Council under Resolution 26,705 appropriated CDBG funds for fiscal year (FY) 2004-05.  Included among the projects approved for the City�s Public Works Department was the reconstruction of Olive Avenue between Third Street and Glenoaks Boulevard ($255,108).  In a notice published January 12, 2005, the Public Works Department proposed changing the above listed project to the reconstruction of Third Street between Olive Avenue and Verdugo Avenue at an estimated cost of $620,000.  On January 25, 2005, the City Council considered and approved the change of projects.

ANALYSIS

Once CDBG projects are approved by the City Council and funds are released by the U.S. Department of Housing and Urban Development (HUD) financial data and descriptions are maintained in the federal Integrated Disbursements and Information System (IDIS).

IDIS contains specific budget data by project or activity and also tracks entitlement funding and program income.  During the year as projects are implemented, completed and/or cancelled, the amount of the CDBG Entitlement reflected in IDIS fluctuates.  This figure also changes as program income is reported into the system.  As of 1/25/05, IDIS entitlement funds were shown at $301,283.97

Based on City Council approval on January 25, 2005, the following changes were completed in IDIS, and are summarized in the table that follows:

1. Changed the project description from Public Works � Reconstruction of Olive Avenue to Public Works � Reconstruction of Third Street, and amended the estimated project cost to $620,000.

2. Closed the fiscal year 2003 Public Works � Streets, Sidewalks, Alleys and Pedestrian Ramps project, which was completed at a cost savings ($132,924.53).

3. Added CDBG unprogrammed entitlement funds of $231,967.47 to the project.

Prior to January 25, 2005

After January 25, 2005

The savings from Oracle #1041 (HUD 12-225) was budget transferred to Oracle #1061 (HUD 45-228) on February 7, 2005, and the budget amendment proposed in this report will add $231,967.47 from CDBG entitlement funds to create a revised project budget of $620,000.

The Consolidated Plan (2003-08) was amended as required by federal regulations and publicly noticed February 2, 2005.  The revised project is within CDBG regulations and is an eligible use of funds.  Appropriate consultations and reviews have been completed with applicable City staff and departments.  

FISCAL IMPACT

The proposed budget amendment adds $231,967.47 to fiscal year 2004 CDBG funds, project number 122-CD25A-63051-1061 (Public Works � Third Street Reconstruction).

RECOMMENDATION

Staff recommends that the City Council approve the proposed budget amendment.

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