PURPOSE

The purpose of this report is to request the City Council, the Redevelopment Agency Board of Directors and the Board of Directors for the Youth Endowment Services, to approve a contract with Burbank Unified School District (BUSD) awarding $24,000 in YES Funds for alterations to the Luther Burbank Middle School gym floor.  This gym is used extensively by City youth and adult sports programs and afterschool programs.  In addition, the report requests that the Financial Services Director be authorized to formally designate $1,272,204 in YES Funds to the Robert R. Ovrom Park Project.  Both appropriations were approved during the FY 06/07 Budget process; however certain findings must be made prior to using the funds.   

BACKGROUND

The YES Fund was established during the Council meeting of January 15, 1991.  The fund was created to provide, encourage and support activities that benefit the development of youth residing in the City of Burbank. The concept of the YES Fund was to meet this goal through a collaborative effort between the City and the community. The public contribution to this effort is a City Council/Redevelopment Agency pledge of five percent of the incremental tax revenue produced in the Golden State, West Olive, and City Centre redevelopment project areas.  In addition, on May 5, 1998, the Board of Directors, directed staff to incorporate five percent of the tax increment revenues from the new South San Fernando Redevelopment Area, beginning ten years after adoption.  These tax increment contributions to the YES Fund can only be used for capital improvement-type projects. 

At its May 16, 2000 meeting, the Board of Directors gave direction to the YES Fund Advisory Committee to review the allocation policy with the goal that funds should be expended without accruing an on-going Fund Balance.  The Committee unanimously recommended allocating the Fund Balance, and any future fund balances, to ensure the Ovrom Park Project, formerly knows as the South San Fernando Park Project, and is fully funded. 

Previously designated funds for Ovrom Park at the end of FY 04/05 total $1,779,044 and have been transferred to the Ovrom Park Project account 370.CP01A.70005.0000.13504.

ANALYSIS

City youth and adult sports programs utilize the Luther Burbank Middle School gym for practices and games during the months from September through March as well as some evenings during the summer months.  In addition, the facility is utilized for the City�s afterschool program.  The gym floor has significant water damage and is not usable for basketball and volleyball games.  BUSD staff is renovating the Luther Burbank gym facility (excluding the floors) and lockers rooms, including installation of a new roof, sealing and painting of the walls.  BUSD has not funded the floor replacement and requested financial assistance for the replacement of the Luther Burbank Middle School gym floor and installation costs in the amount of $24,000.   

During the FY 06/07 Budget process, Council approved certain appropriations of YES Funds; $1,272,204 for Ovrom Park and $24,000 for the Luther Burbank Middle School gym floor.  These funds are from the FY 04/05 and the FY 05/06 YES Fund balance.  Although Council approved these appropriations, the necessary legal findings required by Section 33445 of the California Health and Safety Code were not included during the budget process.  Before spending the YES funds, the Agency Board needs to authorize those proposed expenditures, but can do so only if the City Council consents to such expenditures and makes the required Redevelopment Law Findings. The two expenditures are: 1) $24,000 for Luther Burbank Middle School, which is outside of a Redevelopment Project Area; and 2) $1,272,204 for the Ovrom Park project which is located in the South San Fernando Project Area. 

The findings set forth in Section 33445 can be made here, as set forth below:

1. That the improvements are of benefit to the project area or the immediate neighborhood in which the project is located: 

      a) Luther Burbank Middle School expenditure: The project will benefit the West Olive Redevelopment Project Area and the Burbank Merged Redevelopment Project Area (consisting of City Centre, Golden State and South San Fernando Redevelopment Project Areas) by providing recreational facilities at Luther Burbank Middle School that are available to children throughout the City and specifically to those within the City�s Redevelopment Project Areas, Focus Neighborhoods and affordable housing developments.  

      b) Ovrom Park project expenditure: The project is located in the Burbank Merged Redevelopment Project Area (consisting of City Centre, Golden State and South San Fernando Redevelopment Project Areas), and benefits the project area, specifically the area designated as the South San Fernando Project Area, by providing additional park space. 

            2.  That no other reasonable means of financing the improvements are available to the community. 

As to both expenditures: Inasmuch as the City�s General Fund has committed its resources to other capital projects, there is no other reasonable means of financing these two projects. 

            3. That the payment of funds for the public improvements will assist in the elimination of one or more blighting conditions inside the project area, and is consistent with the implementation plan adopted pursuant to Section 33490. 

As to both expenditures: The redevelopment purpose served by these proposed capital expenditures is the elimination of blighted infrastructure conditions in recreation facilities that serves those residents living inside the City�s Redevelopment Project Areas, Focus Neighborhoods and affordable housing developments (in addition to other residents).  This type of expenditure is consistent with the Agency�s Five-Year Implementation Plan (July 2004 to June 2009 adopted December 2004, pursuant to Section 33490 of the Health & Safety Code), which included a public facilities and improvements component. Specifically, the Plan sets forth the goal of improving public infrastructure systems, and providing for the installation of new public improvements to meet the requirements of new development in the project areas. 

FISCAL IMPACT

The appropriations were included as part of the FY 06/07 Budget; therefore there is no fiscal impact.      

RECOMMENDATION

It is, therefore, the recommendation of staff that the following resolutions be adopted: 1) the City Council adopt a resolution of the Council of the City of Burbank authorizing certain Youth Endowment Services Expenditures; 2) the Board of Directors of the Redevelopment Agency adopt a resolution of the Redevelopment Agency of the City of Burbank authorizing certain Youth Endowment Services expenditures; and 3) the Board of Directors of the Youth Endowment Services Fund adopt a resolution of the Board of Directors of the Youth Endowment Services Fund of the City of Burbank approving a grant award. 

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