PURPOSE

The purpose of this report is threefold: 1) to provide information for project consideration; 2) to provide information related to Bid Schedule No. R-1190 (Old Buena Vista Library � Children�s Center/Resource Center); and 3) provide information on alley vacation V-370; all for the proposed reuse of the former Buena Vista library as a childcare and family resource center.

BACKGROUND

Since the opening of the new Buena Vista library, extensive analysis has been conducted on land reuse opportunities for the former Buena Vista library site.  A variety of land uses were identified and analyzed including: a community room; senior center; community arts center; performing arts center; new residential development; and a childcare facility.  Various factors were considered during the land use analysis phase including: minimum required building and lot size; parking requirements; neighborhood compatibility; and the benefits of the City retaining ownership of the property.  Most of the proposed uses were deemed inappropriate for the site considering the size of the site and neighborhood compatibility.  After additional analysis, two land use options were presented to the City Council that were determined to be compatible with the single-family nature of the neighborhood, and that could be accommodated by the site and/or existing building: 1) single-family residential; and 2) re-use of the existing building for a childcare facility.

On February 3, 2003, the City Council directed staff to hold a general community meeting with special notification to the neighborhood to get feedback on these two land use options, and any other ideas the community had for the site. 

The community meeting was held on Saturday, May 31, 2003.  The meeting was publicized on Burbank Channel 6, the Burbank Leader and flyers were placed throughout the community.  To advertise the meeting to the immediate neighborhood, staff sent written notification to property owners and residents within a 2,500 foot radius of the site.

Approximately 100 people attended this community meeting.  The intent of the community meeting was not to reach consensus on a land use, instead, staff sought feedback from the community on the two proposed land use and any other thoughts for the site.  Organizations in attendance with special interests in the site were:

• Burbank Arts Association;

• Conservatory of Puppetry Arts in Pasadena;

• Girl Scouts (Submitted a petition with 217 signatures for a regional administration office and meeting facility); and

• Storybook Theater/Theater West in Hollywood.

The community meeting was held in an education/idea �fair� format.  The format allowed participants to be part of smaller discussion groups in order to give feedback, thoughts, and ideas on the two reuse options the City Council had been considering for the site: 1) residential (5 single-family homes or a 9-unit small lot residential development); and 2) the reuse of the existing building for a childcare center.  In addition, there was a third, �blank canvas� area where participants added other land use ideas.  Each area had site plans, elevations, and information helpful for the discussion on each land use.

While there was no consensus on land use for the building/site, there were two primary messages that staff received from the community: 1) the City should keep the existing building; and 2) use the building for some type of community use based on need (possibly a mix of uses).  Therefore, based on that feedback and the general understanding of the need for more childcare in the community, staff proposed to the City Council that the former Buena Vista library be used as a childcare facility.  The site is appropriately located for a childcare center (in close proximity to the Media District employment center and in a residential neighborhood), and has good vehicular access with good on-site circulation.  In addition, the building has a scale that is compatible with the residential nature of the neighborhood.

In July 2003, the City Council and Redevelopment Agency Board authorized staff to finalize plans for a childcare facility and asked staff to include a family resource center component.  In addition, the City Council and Agency Board requested that staff meet with the community to develop plans for a proposed childcare and family resource center, and address any concerns of the community including:  impact to Frederic Street with additional traffic; the need for a buffer along the perimeter of the site; and the security of the playground areas.

Since this direction, staff has completed several components of the project: 1) held three community design meetings to develop and refine plans for a childcare and family resource center (nearly a 12-month phase); 2) conducted a childcare needs assessment to confirm the future need of childcare in the community (which tracked simultaneously with the community outreach phase); 3) met regularly with the City�s Childcare Committee to discuss and refine plans on an on-going basis; 4) worked with the Knowledge Learning Corporation, a nationally acclaimed childcare operator, to get feedback from an operations point of view on the proposed plans; 5) met with representatives of the State Licensing Board to get feedback on the proposed plans; 6) toured several childcare facilities in the city and other areas to assist with finalizing plans; 7) received Planning Board land use approvals for the proposed childcare and family resource center; 8) prepared construction plans and went through the formal plan check process; and 9) completed the bid process for the rehabilitation of the former library as a childcare and family resource center two times.  The first bid opening was held in March 2005.  The second bid opening was held in July 2005.

DISCUSSION

There has been extensive community participation and input during the last two years; since the first community meeting in May 2003 held to determine the final land use of the site.  Specifically, comments from the community meetings, discussions with City departments, the Childcare Committee, Knowledge Learning Corporation and the State Licensing Board were incorporated into the final plan for the proposed childcare and family resource center.  Some of the primary suggestions that came out of these discussions are:

1. Encourage staff to park across the street at the Buena Vista library at peak drop-off and pick-up times;

2. Discourage cut-through traffic along Frederic Street with a physical diverter and signage; and

3. Allow no access from the family resource center to the childcare facility to maximize safety.

Based on these comments and a collaborative inter-departmental effort with the Parks, Recreation, & Community Services department, Burbank Water and Power, Police, Fire and Public Works Departments, and subsequent comments from the Planning Board (which will be discussed in greater detail later in the report), final plans have been developed.  One specific design feature incorporated is a physical diverter restricting right turn movements from the east/west alley to Frederic Street.  In addition, the family resource center will be a new addition to the front of the building with no access to the childcare facility and will have its own entrance and restroom facilities.  The following is a summary of the final plans.

FINAL PLANS

The proposed project will include the rehabilitation of the existing 7,900 square foot building.  There will be 640 square feet added to the existing facility for a total building size of 8,540 square feet.  The new 640 square feet will be added to the front of the building along Buena Vista Street to be the Family Resource Center.  The project will include the undergrounding and rerouting of overhead electrical lines (in the alley, parallel to Buena Vista Street; adjacent to the building).  In addition, a portion of the north/south alley with access from Verdugo Avenue will need to be vacated (Exhibit A). 

Childcare Facility

The existing 7,900 square foot building will be rehabilitated to be used as a childcare facility for 88 children.  Childcare services will be provided for Burbank residents and the Burbank workforce.  The main entrance will be off of Verdugo Avenue.  The total number of parking spaces required for the childcare center is 23.  The number of parking spaces to be provided on site is 26.

The breakdown of children to be served is outlined as follows:

In accordance with State licensing requirements for play yard space, two play yards will be provided.  The main play yard for the preschool children will be located at the rear of the building adjacent to the parking lot.  This play yard is approximately 5,415 ��������square feet and will be used by the preschool and pre-kindergarten children; with a small portion sectioned off for infants.  The second play yard will be located at the front of the building and will be approximately 1,185 square feet, to be used by toddlers and young preschoolers.  The play yard equipment for both play yards will be selected in collaboration with the childcare operator, but will generally include play structures, different surface materials, benches, etc.  For safety and security reasons, the play yards will have block walls that are six to eight feet in height.

Hours of operation for the proposed childcare facility will be from 6:30 a.m. to 6:30 p.m., Monday through Friday.  At full capacity, there will be a total of 100 people in the building, consisting of 12 employees and 88 children.

Family Resource Center

The family resource center component will be a new addition of 640 square feet to the front of the building off of Buena Vista Street.  The family resource center will have no access to the childcare center and will include its own restroom facilities in order to secure the childcare facility that must adhere to strict state licensing requirements on the use of the childcare space.  However, there may be opportunities to use the classrooms for �babysitting� for attendees of the family resource center programs.  Staff is exploring that possibility with the State.

During weekdays when the childcare center is open, the family resource center will be open to the public as an information center only.   During the evenings and weekends when the childcare center is closed, programs, classes and other possible activities will be held.

Daytime hours of operation for the family resource center will be from 9:00 a.m. to 6:30 p.m. from Monday through Friday. During these hours of operation, approximately 250 square feet of the facility will be utilized.  Volunteers may staff the family resource center, however, it is anticipated that the center will mostly be �self serve.�  The following are possible (but not limited to) resources that may be available to the community:

• Computer station or interactive information �kiosk�;

• Materials, brochures, pamphlets, and other types of information on community services, organizations, resources in the city; and

• Materials, brochures, pamphlets, and other types of information on services, organizations and resources outside the city such as the Employment Development Department, healthcare services and other social service organizations.

Through partnerships with community organizations, the family resource center is proposed to provide evening and weekend programs, classes and events geared towards building healthy families, and will fully utilize the entire 600 square feet.  The following is the proposed schedule for evenings and weekends:[2]

• Monday through Friday � 6:30 p.m. to 9:00 p.m.

• Saturday � 10:00 a.m. to 5:00 p.m.

• Sunday � 1:00 p.m. to 5:00 p.m.

This expanded program component will only be held when the childcare center is closed in order to share the on-site parking provided.

The following subjects have been identified for programs and classes, but not limited to:

• Child Development

• Child and Family Counseling

• Childcare Environment Safety

• Childcare Referral Service

• Childhood Injury Prevention

• Children�s Health

• Consumer Product Safety

• Divorce Counseling

• Drug and Alcohol Prevention

• Federal legislation affecting young children: child protection; child safety; education; health; mental health and disabilities; nutrition

• Financial Planning

• Information on Child Abuse and Neglect

• Literacy

• Managing Stress

• Nutrition

• Parenting

• Parent Education

• Prenatal classes

• Tutoring/Mentoring for children and/or adults

Plans for the proposed childcare and family resource center were finalized based on the above-mentioned description and submitted to the Planning Board for project review and approval.  A conceptual landscape plan has been developed and will be finalized during the rehabilitation of the building (Exhibit B).

PLANNING BOARD ACTION

On January 10, 2005, the Planning Board approved the land use entitlements for the reuse of the former Buena Vista library as a childcare facility and family resource center.  The Planning Board approved the following (Exhibit C):

• Conditional Use Permit, Variance and Development Review No. 2004-152 for the operation of a childcare and family resource center in an R-1 single family residential zone;

• Variance for reducing the front yard set-back from 25 feet to 5 feet for the 640 square foot addition (portion of the Buena Vista Street building frontage) that is approximately 26 and one half foot in length (20% of the building/fence frontage);[3] and

• Variance for a fence height in the front yard of 6 to 8 feet in height.

The following is a summary of some of the conditions of approval for the project:

• To help mitigate noise impacts for the adjacent residential property on Buena Vista Street, the play area located in the northwest corner of the property, shall not be used prior to 9:00 a.m.

• Hours of operation were modified to allow the childcare facility to remain open past 6:30 p.m. during the week if parents were attending a program in the family resource center.

• A condition was placed requiring a physical diverter at the intersection of the east/west alley and Frederic Street that would restrict traffic from continuing west along the alley (straight across Frederic), or making a right turn onto Frederic Street.  Only left turn movements would be allowed from the east/west alley to Frederic Street.  In addition, �No Right Turn� signage is required at the same location.

The primary concern of the Planning Board was to minimize traffic, circulation and parking (along Buena Vista Street) impacts to the neighborhood (Exhibit D).  Therefore, the Planning Board asked staff to continuously monitor the facility and to mitigate any impacts that may arise.  Staff will monitor the facility and coordinate as necessary with the appropriate departments to minimize impacts to the neighborhood. 

The project is Categorically Exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15303 of the State CEQA Guidelines.

ALLEY VACATION (V-370)

Proposed Area to be Vacated

There are two alleys on the project site: an east/west alley that allows access to the site from Frederic Street; and a north/south alley that allows access to the site from Verdugo Avenue and runs the length of the block to Clark Avenue (Exhibit E).  In order to: 1) accommodate the required play yard at the rear of the building for the proposed childcare facility; 2) provide the required parking; and 3) provide heightened safety and security, a portion of the north/south alley behind the existing building is proposed to be vacated (Exhibit F).  With the proposed area to be vacated, traffic circulation will have two ingress and egress points for the alleys to remain; the first off of Frederic Avenue and the second off of Clark Avenue.

As previously stated, the proposed area to be vacated is required in order to facilitate the safest and most efficient development of the required play yard and parking spaces.  If the alley is not vacated, the children would have to cross the alley to get to the play yard and the parking required for the use could not be accommodated.  From a design and operations perspective and to maximize the safety of children, the entire site should be contiguous and secured without cross traffic interesting the site.  Finally, without the area of the alley proposed to be vacated, the required parking for the proposed childcare and family resource center could not be accommodated.  Therefore, for these reasons, the proposed area to be vacated is an essential element to the proposed project.

In order to accommodate the traffic that would be using the two alleys, the existing alley with access from Frederic Street will be widened from 15 feet to 20 feet and will include a 35 foot turning radius at the intersection of the two alleys to allow adequate circulation for refuse vehicles, fire engines and other service and emergency vehicles to make the turn (Exhibit G).

There are only two properties off of the alley at the intersection of Clark Avenue that have trash bins and would require trash pick-up in the alley by a refuse truck (Exhibit E).  The remaining properties on Frederic Street and Buena Vista Street have street curbside pick-up.  In addition, the City�s Traffic Engineering Division took traffic counts in the two alleys to determine usage.  During a 24 hour period in July, a total of 33 vehicle trips were counted in the proposed alley to be vacated adjacent to the site.  The maximum usage was four (4) vehicles in a one hour period at 7:00 AM and also at 6:00 PM.  A total of 18 vehicle trips were counted in the alley that intersects Frederic Street, with a maximum of four (4) vehicles counted at 11:00 PM.  The average traffic demand in each alley is about one vehicle per hour.

The City�s Traffic Engineer opines that the proposed alley vacation could also help reduce traffic as the proposed vacation may discourage �cut-through� traffic from motorists that do not live on the block.  Finally, it is important to note that while 14% of the properties on the block have access to garages only from the alley, 66% of all properties on the block have driveways off of Frederic Street and Buena Vista Street.

Resolution of Intention

On July 26, 2005, the City Council adopted a Resolution of Intention to Vacate, declaring its intention to consider the vacation of the subject alley and setting the public hearing date for this evening.  The proposed vacation of the alley would only become effective if the project occurs.

All appropriate City departments and all outside utility companies have reviewed the proposed vacation, including the Fire, Police and Public Works Departments, Pacific Bell, Charter Cable, The Gas Company, the Los Angeles County Department of Public Works and the Metropolitan Water District.  The proposed vacation is conditioned in accordance with their responses (Exhibit H).  Since the development of the property is not feasible with all the utility reservations, staff has confirmed that all utility companies are agreeable to the relocation of their facilities as part of the project expense.  Staff has been in discussions with Burbank Water and Power, Charter Communications and SBC Communications on the coordination of utility undergrounding.

The following is a summary of comments received:

The Gas Company � No Objections

Metropolitan Water District � No Objections

County of Los Angeles, Department of Public Works � No Objections

Burbank Water & Power, Water Division � No Objections

Burbank Water & Power, Electrical Division, no objections pending relocation of existing electrical lines at applicant�s expense.

Charter Communications has aerial facilities that need to be protected with a utility easement or may be relocated at the applicant�s expense and to the satisfaction of Charter Communications. 

SBC Communications maintains existing communication facilities within the subject area that would require a utility easement or relocation at applicant�s expense.

City of Burbank Public Works Department has placed a condition on the development of the project that requires a five-foot dedication to the City for the alley that runs perpendicular to the alley to be vacated to Frederic Street.  This condition has been incorporated into the civil engineering plans for the site.

As previously described, the five-foot dedication required by the Public Works department will be accommodated completely on City property in order to enhance the alley for traffic and circulation and to accommodate an additional 15 feet (35 feet total) for the turning radius that will allow emergency vehicles and refuse trucks to make the turn between alleys.  Furthermore, in collaboration with other City Departments and outside agencies, staff has determined that the proposed portion of the alley to be vacated is not required for traffic and circulation.

Community Outreach on Proposed Alley Vacation

All procedures for routing the application for comment, notification mailing, setting and publication of public hearing, and posting at the proposed areas of the proposed vacation were performed in accordance with the Burbank Municipal Code and the State Streets and Highways Code.  Specifically, staff sent written notification of the proposed alley vacation to property owners within 1,000 feet of the site.  The notice also included the announcement that in conjunction with the public hearing for the alley vacation, the City Council and Agency Board will give final project consideration on the reuse of the former library as a childcare and family resource center. 

Staff sent notification of the meeting to all attendees of the May 2003 community meeting and the three subsequent design meetings.  In addition to the regular required posting in the proposed area to be vacated, staff posted maps that showed the proposed area to be vacated and the new enhanced alley that runs parallel to Verdugo Avenue with access off of Frederic Street.  The map showed that the alley is to be widened to 20 feet and that there is a 35 foot turning radius for alley circulation.

Furthermore, since the first community design meeting held in October 2003, staff has been meeting with residents of the neighborhood to discuss the proposed project.  The proposed alley vacation was part of the site plan originally presented to the community since the first meeting.  Staff informed the residents of the enhancements to the remaining east/west alley with access off of Frederic Street.  Finally, staff held several meetings and circulation exercises with representatives of the Burbank Fire and Public Works Departments in order to confirm that adequate circulation area for City service and emergency vehicles in the alley was provided for in the proposed project design.

CHILDCARE NEEDS ASSESSMENT

In addition to finalizing plans for the proposed childcare and family resource center, staff contracted with the Knowledge Learning Corporation (Knowledge Learning) to not only confirm the current need for childcare, but to assess the trends for projecting the future need as well.  Knowledge Learning�s scope of work included: an assessment of the need for structured (i.e. center-based) childcare in Burbank; an analysis of the current childcare market; an assessment of unmet childcare needs relevant to the Buena Vista site; and recommendations for the conversion and configuration of the proposed facility.  In addition, the report included a summary of the childcare facilities within three-miles of the proposed center with facility information such as ages served, accreditation and waiting list if any (Exhibit I).

Knowledge Learning opined that the most important external determinants of financial success of a childcare center are the demographics and competitive landscape within a three-mile radius of a center.  Therefore, their analysis included information pertaining to the three-mile radius that surrounds the former Buena Vista library site.  The analysis also considered the childcare needs of both Burbank residents and the Burbank workforce.  The assessment provided a conservative estimate of the unmet need for childcare that would drive current and future enrollment at the proposed Buena Vista childcare center.

Data regarding the Burbank zip codes within the three-mile radius revealed that block groups immediately surrounding the site have an average penetration of young children and higher than average family incomes.  While household childcare expenditures are average, the rate of growth for childcare expenditures per household is expected to increase at a rate of 7-10% over the next five years.   Block groups further to the northwest and some to the east of the area have relatively high densities of children, with lower household incomes.  Also, a few pocket areas to the south of the proposed site have an average penetration of children, much higher than average childcare expenditures, and higher family incomes.

Knowledge Learning determined there is an unmet childcare need for both Burbank residents and non-residents who work in the city.  In 2004, a total of 2,756 children needed access to structured childcare within Burbank. This included 2,148 children who were Burbank residents, and 608 children of employees who commute from outside Burbank and work within the city. Based on demographic trends, Knowledge Learning opines that in 2008, a projected total of 2,839 children will need access to structured childcare within Burbank. This is expected to include 2,213 children who are Burbank residents, and 625 children of employees who commute from outside Burbank to work in the city. 

Currently, there are 29 structured childcare centers in the City of Burbank within a three-mile radius of the former Buena Vista site.  Several of those facilities have waiting lists for their respective facilities.  The highest demand is for infant and toddler spaces.  The Burbank Housing Corporation childcare center (Cottages) that the Knowledge Learning Corporation manages and operates has a waiting list of more than 100 children.  The Horace Mann Children�s Center, one of the Burbank Unified School District�s childcare centers, has a waiting list of more than 250 children.

Knowledge Learning utilized two methodologies to determine the number of children currently served by these centers: 1) estimated enrollment capacity based on the number of employees at each center; and 2) conducted a phone survey of the childcare centers to gather more specific information about the nature of the childcare available. 

Knowledge Learning determined there is substantial unmet need for structured childcare.  In 2004, the 29 existing Burbank facilities within a three-mile radius of the site were at 90% - 100% average utilization and provided care for 61% or 1,674 of the total children who needed access to structured childcare (2,756).  As such, 39% or 1,082 of the total children who needed structured childcare were not being served by existing childcare centers. Furthermore, the number of children ages 0-5 is expected to increase 3.0% by the year 2008. Despite an assumed yearly increase of childcare services, by 2008 the projected need will be 31%, or 880 children, who may not be served by existing childcare centers. 

The table below summarizes the total current and projected childcare statistics; comparing total demand, supply, and current and projected unmet need.

Based on these findings, Knowledge Learning determined that there is currently and will be a considerable demand for additional structured childcare facilities within a three-mile radius of the former Buena Vista library site.  In addition, based on an assessment of the proposed plans, Knowledge Learning stated that up to 88 children could be accommodated at the proposed center.  Therefore, even with the proposed Buena Vista childcare and family resource center, Knowledge Learning confirmed there would still be a need for additional structured childcare.

As a separate measure of the Burbank Workforce (non-resident) childcare need, there were several questions asked regarding the need for childcare in a Workforce Housing Survey conducted last fall.  There were 323 non-resident, Burbank employees that responded to the childcare portion of the survey (45% of total respondents). 

Of the respondents with children between the ages of 0 � 5 years:

• 18.2% stated they had childcare in the City of Burbank; and

• 89.2% stated they would be interested in a childcare facility in the City of Burbank.

As noted above, 89% of the respondents to the childcare portion of the survey with children stated they would be interested in a childcare facility in the City of Burbank, indicating that in addition to the need for childcare, interest for childcare in proximity to a person�s workplace also exists; further validating the conclusions reached in Knowledge Learning Corporation�s assessment.

MANAGEMENT AND OPERATIONS

Staff recommends that the proposed Buena Vista childcare center be structured after the successful Burbank Housing Corporation Center (Cottages).  Therefore, if so directed, staff would work with the Burbank Housing Corporation to manage the facility and the operations contract.

The proposed Buena Vista childcare and family resource center will provide Agency-assisted housing developments within and outside the Redevelopment Project Areas,[4] the Focus Neighborhoods and throughout the city with needed childcare.  In addition, through the family resource center, programs and resources will be provided as services to supplement affordable housing in the community.  In addition, the center will assist with retaining and attracting business, as childcare is an amenity that many employers look for in order to attract and retain employees.

Furthermore, community education and awareness has long been a part of the City�s/Agency�s affordable housing program.  The Agency not only assists with building affordable housing, but also with providing the facilities that house the community serving uses that build healthy families.  The Elmwood Achievement Center, the Verdugo Activity Center and the two new activity centers under construction in the Peyton Grismer and Golden State Neighborhoods, have and will have a secondary revitalizing effect on the neighborhoods.  Therefore, in existing and future Agency-assisted affordable housing projects and programs in the Project Areas, Focus Neighborhoods and throughout the city, the residents will be made aware of the proposed Buena Vista childcare and family resource center, and will be given priority notice and registration for classes, events and programs at the facility.  This is an important component of the Agency�s efforts in providing service enriched affordable housing.

About two years ago, staff and the Burbank Housing Corporation went through an extensive Request for Proposals/Request for Qualifications process to select a childcare operator for the Cottages childcare facility.  The selection committee included staff from Community Development and Parks, Recreation and Community Services Departments, representatives from the City�s Childcare Committee and the Burbank Housing Corporation.  The result of that extensive screening and selection process (that included tours of facilities in other cities) was the hiring of the Knowledge Learning Corporation.

The Knowledge Learning Corporation childcare program has a focus on education.  Even after the company merged with Kinder Care earlier this year, staff was assured that the education component of their centers will not change.  It is the only national childcare company whose president holds a Ph.D. in Education and has extensive industry experience.  In addition, they have demonstrated an ability to operate a nationally accredited program.  More than 800 of their centers, with 400+ in process, have received and maintained accreditation from the National Association for the Education of Young Children (NAEYC).  Based on this program, Knowledge Beginnings (one of the operating arms of the company) has successfully operated the Cottages Center since its opening a year ago.  Staff recommends the Knowledge Learning Corporation as the operator of the proposed Buena Vista childcare center for several reasons: 1) Knowledge Beginnings has an exemplary reputation in the childcare industry; 2) they have a proven history in the community with the very successful program at the Cottages Center; and 3) they have experience working with the Burbank Housing Corporation.

The Knowledge Learning Corporation has submitted a proposal to operate a second facility in the City of Burbank.  If so directed, staff will continue to work with both the Burbank Housing Corporation and the Knowledge Learning Corporation to finalize all appropriate childcare management and operations agreements and any necessary contracts for final City Council consideration at a later time.

AFFORDABILITY COMPONENT

Also tailored after the Cottages Center, staff proposes that 20% (18) of the spaces be made affordable to moderate-income households.  However, to allow the proposed childcare facility to reach full capacity and become financially stable, staff suggests a �ramp-up� affordability period.  The industry standard for new childcare centers to reach full capacity and become financially stable is two to three years.  Even the very successful Cottages Center, that is now at 100% capacity in only a year and a half, experienced cash flow challenges during its first year. 

Therefore, the recommendation is to make 10% of the spaces affordable at start-up, and when the childcare center reaches 50% capacity, increase the number of affordable spaces to 20%.  This proposed affordability ramp-up period should allow the center to better stabilize financially, as enrollment reaches capacity.  The subsidized spaces would be made available on a first-come-first-served basis to qualifying households at moderate-income.  As described earlier, Agency-assisted projects in the Project Areas, elsewhere in the city, as well as the Focus Neighborhoods, will receive priority notice of the affordable childcare spaces.  In addition, staff will be seeking corporate sponsorships that may assist with providing deeper subsidies to eligible households.

CORPORATE SPONSORSHIP PROGRAM

In 2002, staff solicited corporate sponsors and provided information packages to the major employers in the community in an attempt to secure corporate sponsors for the Cottages childcare facility that was under construction.  In addition, staff informed the major employers of a proposed childcare facility at the former Buena Vista library site.  In total, 218 packages were sent to the business community.  Of the 218 packages, five companies responded as having a possible interest as corporate sponsors.  However, no firm commitments were made.

At that time, the corporate sponsorship program for the proposed Buena Vista childcare center was structured around raising funds to cover the cost of rehabilitating the building for a childcare center.  However, since Agency funding is now available (Golden State and West Olive bond proceeds) to fund rehabilitation costs, staff recommends using corporate sponsorship funds to provide deeper level of subsidy for the affordable childcare spaces.  Therefore, it is proposed that the Buena Vista childcare and family resource center use the same corporate sponsorship program adopted in July 2005 for the Burbank Housing Corporation Childcare Center.

Program Summary

The program allows priority enrollment to a corporate sponsor that purchases a block of 12 childcare spaces at an annual fee of $10,000.  Of this amount, $4,000 would be used to offset Knowledge Learning Center�s costs to administer the enrollment and waiting list, with the remaining $6,000 to be used to reduce the tuition rates for the 20% affordable spaces that are proposed to be available to Burbank residents.  For each corporate sponsor who purchases a block of 12 spaces, the tuition reduction would increase accordingly.  It is proposed that any one corporation could not purchase more than two blocks of 12 spaces, and that the total number of corporate spaces be restricted to 48 spaces, representing slightly more than one-half (55%) of the total spaces in the proposed center.

It is proposed that the affordable spaces be reserved for households, who are at or below moderate income levels.  First priority for these lower rates would be given to households in Burbank Housing Corporation or City/Agency-sponsored affordable housing projects then to city-wide Burbank residents.

In order to allow for the flexibility in allowing corporate sponsors to participate, the following outlines the priority system for the program.

Priority System

1^st Priority - Residents of projects owned by the Burbank Housing Corporation.

2^nd Priority � Residents of other affordable housing units sponsored by the Agency, City or Housing Authority.

3^rd Priority � Employees of corporate-sponsored childcare spaces limited to 44 spaces.  No one company may receive more than a block of 24 spaces.

4^th Priority - Any Burbank Resident.

5^th Priority � Any Employee working in Burbank.

6^th Priority � Any non-resident and non-employee.

As previously stated, the affordable spaces must first be reserved for households whose income is at or below moderate income levels.  The Parks, Recreation and Community Services Director must also review and approve each corporate sponsorship agreement.

In developing the plan, staff had to balance the desire to make the spaces available to both Burbank residents and corporations, and be flexible enough to allow several corporations to become corporate sponsors.  In this process, staff also had to make sure the plan would be manageable for Knowledge Learning Corporation, while offering the ability to maximize affordable tuition rates.

Business Retention Tool

In addition to increasing the supply of infrastructure to support the City�s/Agency�s affordable housing efforts (childcare, achievement and activity centers); the primary goal of the Redevelopment Agency is the removal of blight.  This goal is accomplished through several ways including economic development efforts such as business retention and attraction activities that create and retain jobs, increase revenue to the City, and help provide a stable economic base for the community.  That is why a corporate sponsorship program is a key component to the proposed childcare and family resource center.

The corporate sponsorship program would be a beneficial part of the proposed childcare and family resource center as it will benefit the businesses (and residents) city-wide and in the Golden State, City Centre, West Olive and South San Fernando Project Areas.  The proposed project and corporate sponsorship program would also assist with business retention and attraction.  The four Project Areas are within the three-mile radius that Knowledge Learning identified as the key factor in determining the financial success of a new childcare facility.  As stated before, one key goal of the Agency�s redevelopment efforts is economic development through business retention and attraction.  The proposed childcare and family resource center would be a vital component to the city�s infrastructure and would support the Agency�s efforts.

In many cases, businesses in the Project Areas (and city-wide) cannot accommodate childcare facilities at their existing sites.  Therefore, the proposed Buena Vista childcare and family resource center will provide a childcare facility in close proximity to the businesses in the Project Areas.  The businesses in the Project Areas will be made aware of the childcare facility and family resource center, and will be given notice for registration and information on classes, events and programs.  In addition, the businesses will be informed of and have the opportunity to become a corporate sponsor for priority childcare enrollment for employees.

BID PROCESS

The work under this contract consists of furnishing all labor, materials, equipment, services, and performing all work related for the selective demolition, structural, new mechanical, plumbing and electrical systems, rehabilitation, additions (640 new square feet) and interior improvements related to the adaptive reuse of an existing 7,900 square foot, one-story, wood frame former library building as a childcare and family resource center.  In addition, a complete fire sprinkler system is to be provided on a design-build basis by an authorized fire sprinkler contractor under the general contract for construction. 

Site work includes selective demolition, on-site and off-site civil improvements, surface parking, exterior play yards, shade structures, entry ramps, stairs, and site lighting.  The installation of the play yard equipment and furniture, fixtures and equipment for the proposed center is not a part of this bid.  Staff will work with the childcare operator to select the appropriate play yard equipment and the remaining furniture, fixtures and equipment.  In addition, the landscape design and installation will be handled as a separate contract.  However, the anticipated cost is included in the project budget described below.  Staff has been working with the Parks, Recreation and Community Services Department to develop the conceptual landscape plan.  The landscape installation will be coordinated with the general contractor so as not to interfere with other building and site work.  There may also be an opportunity to bid the play yard equipment and landscape work together.

In order to prepare for rehabilitation of the building for any type of facility reuse, lead based paint and asbestos abatement was completed in April 2005.  There will be minimal abatement work to the exterior of the building that will be completed after the general contractor has been selected.

As previously mentioned, staff held the first bid opening in March 2005 for Bid Schedule No. R-1184.  Six companies submitted bids ranging from $2,365,172 to $3,697,000.  The preliminary estimate for the rehabilitation of the building and the accompanying site work when planning commenced two years ago was $2.0 million.  Due to the bid amounts and the wide range of bids received (a spread of more than $1.3 million), staff rejected all six bids and explored opportunities to refine plans and reduce costs without compromising the quality of the project.  During a value engineering process, after the first round of bidding, staff eliminated approximately $175,000 from the project scope.  Furthermore, with the abatement of the building complete, contractors were able to get a better idea of the as-is-condition of the building in order provide a better bid. 

Staff then held a re-bid of the project with the value-engineered plans � Bid Schedule No. R-1190.  Four bids were accepted during the second bid opening held in July.[5]  The bids ranged from $2.397 million to $2.967 million (Exhibit J).  While the bids during the second bid process were still above the estimate of $2.0 million, staff is more confident that the contractors better understood the bid, as the range between the high bid and low bid was less than $600,000.  Two contractors that bid on the project the first time, bid on the revised project scope.  In both cases, the bids were lower than their initial bid.

The low bid of $2.397 million was submitted by TLD Construction, Inc.  The company has experience with similar sized projects in the cities of Sierra Madre, San Marino and Santa Monica.  They have also worked with the California Department of Transportation (CalTrans) on a maintenance station project in Ventura County, and for the City of Burbank Parks, Recreation and Community Services Department on the Victory Park renovation project.  Should the proposed project be approved, staff recommends award of the bid contract to TLD Construction, Inc. as they submitted the lowest responsive bid.

As previously discussed during the background section of this report, there was overall sentiment to keep the existing building.  However, while constructing a new childcare center was not the direction from the City Council, staff did, upon analyzing the results of each round of bidding, re-examine cost comparisons between the proposed rehabilitation project and new construction.  In doing so, staff once again looked to the Cottages project.  In 2003, the construction cost for that center totaled approximately $2.6 million.  However, while the size of the building is comparable, there is additional extensive site work required for the proposed Buena Vista Childcare center.  Instead of one play yard there are two at the Buena Vista site, and there is a new off-street drop off area and parking lot that is a part of the scope of work for the Buena Vista facility. [6]  Furthermore, when taking into account construction costs that have appeared to be escalating about 25% per year for the last two years, the estimate for a new childcare facility is approximately $100,000 more than the rehabilitation of the existing building.[7]

Based on the low bid of $2,397,600; plus an additional $37,300 for an alternative, more durable roofing system suggested by Public Works and a revised play yard grade for the large rear play yard; and a 10% contingency on the bid amount, the total rehabilitation and site work bid amount is $2,678,390.  The following is a summary of the costs related to the proposed project:

Rehabilitation/Addition/Site work                                        $2,678,390

Utility Undergrounding (BWP and Charter)                            $250,000

SBC Communications                                                                $55,000

Play yard Equipment[8]                                                              $75,000

Landscaping Estimate[9]                                                           $68,000

Construction Management                                                         $50,000

Fee Estimate [10]                                                                         $40,000    

TOTAL                                                                                      $3,216,390[11]

The total cost of the project is estimated to be $3,216,390.  However, approximately $320,660 of cost savings from two completed capital improvement projects is available in the project account.  Therefore, an appropriation of $2,895,730 would be required for the proposed project.

PROJECT FUNDING

Staff recommends the use of three funding sources for the proposed project: 1) Golden State and West Olive Project Area bond proceeds; 2) the State Department of Housing and Community Development (HCD) Workforce Housing Grant program; and 3) funds from completed capital improvement projects.  There are adequate bond funds available to fund the proposed project.  The approximate balance available in Golden State bond proceeds is $28 million, and $1.58 million is available in West Olive bond proceeds.  Staff proposes to use $2,195,730 in Golden State bond proceeds and $700,000 in West Olive bond proceeds to fund the proposed project.  This proposed funding split allows bond proceeds to be used for other projects from both Golden State and West Olive bond proceeds.

To supplement funds, the City has received $34,743 through the State Department of Housing and Community Development (HCD) Workforce Housing Grant program for this project.  Finally, approximately $450,000 has been transferred from two other Agency capital improvement projects; the Golden State Reclaimed Water Line project that is complete and the Ontario Street Utility Undergrounding project, as that project is also complete and funds were no longer needed.  As previously stated, while the total cost of the proposed project is estimated to be $3,216,390, approximately $320,660 are available in the project account (HCD Grant and transferred funds), and an appropriation of $2,895,730 would be required for the proposed project.

COOPERATION AGREEMENT

Staff recommends the City Council and Redevelopment Agency Board enter into a cooperation agreement that would allow the City to retain ownership of the site and allow the Redevelopment Agency to fund and complete the rehabilitation of the former Buena Vista library site as a childcare and family resource center.  The project will require $2,895,730 of Redevelopment Agency bond proceeds from the Golden State and West Olive Project Areas unappropriated fund balance to pay for the above stated project costs.  In order for the Redevelopment Agency to fund the proposed project that is outside of the Burbank Merged and Amended Redevelopment Project Area (Golden State, City Centre and South San Fernando Project Areas) and the West Olive Redevelopment Project area, certain findings must be made in accordance with California Community Redevelopment Law, Section 33445.

Health and Safety Code (HS) Section 33445 requires that the City Council find that: 1) the use of Agency funds outside a Redevelopment Project Area is of benefit to the project area funding the improvement; 2) there is no other reasonable means of financing the improvements; 3) the elimination of one or more blighting conditions in the project area is served or provides housing for low-or moderate-income persons.

HS 33445 FINDINGS

1.  The use of the Agency funds, specifically bond proceeds, will permit the construction of a childcare and family resource center in close proximity to the Golden State, City Centre, West Olive and South San Fernando Project Areas.  A corporate sponsorship program will benefit the businesses (and residents) in the four Project Areas; all within the three-mile radius that Knowledge Learning identified as the key factor in determining the financial success of a new childcare facility.

Furthermore, as previously stated, the primary goal of the Redevelopment Agency is the removal of blight.  This goal is accomplished through several ways including economic development efforts such as business retention and attraction activities that create and retain jobs, increase revenue to the City, and help provide a stable economic base for the community.  Many of the businesses in the Project Areas cannot accommodate childcare facilities at their existing buildings/sites; including the required play yards.  Therefore, the proposed Buena Vista childcare and family resource center will provide a childcare facility in close proximity to the businesses in the Project Areas.

2. The City�s General Fund cannot fund the $2,895,730 needed for the project.  Other than the $34,743 received through the State Department of Housing and Community Development (HCD) Workforce Housing Grant program and the $450,000 in completed capital improvement projects, there is no other reasonable means of financing the childcare and family resource center project.

As stated before, both the residents and businesses in Agency-assisted projects in the Project Areas and Focus Neighborhoods will be made aware of the childcare and family resource center, and will be given priority notice and advance opportunity for class registration, events and programs at the family resource center.  In addition, the businesses in the Project Areas will be informed of and have the opportunity to become a corporate sponsor (as described earlier) for priority enrollment for employees.

CONCLUSION

Since City Council directed staff to move forward with finalizing plans for a childcare and family resource center for the former Buena Vista library site, staff has completed several components of the project: finalizing plans with the assistance of the community and City departments; completing a childcare needs assessment to confirm the need for additional childcare; received entitlements for the project; completed construction drawings (and subsequent plan check); and completed the bid process for the proposed award of a construction contract.

In summary, the proposed childcare and family resource center addresses certain issues raised at the first community meeting:  1) keep the existing building; and 2) use the building for some type of community use based on need and a mix of uses.  If so directed, staff will return at a later date with all appropriate childcare management and operations agreements, and any necessary contracts with the Burbank Housing Corporation and the Knowledge Learning Corporation, for final City Council/Agency Board consideration and approval.  In addition, should the proposed project be approved, staff will begin developing a waiting list in order to fill the childcare spaces on a first-come-first-serve basis.  The persons on the waiting list for the Cottages Center will be notified of the opportunity to be placed on the waiting list for this facility.

Staff recommends that the City Council and Agency Board approve the reuse of the former Buena Vista library as a childcare and family resource center.  The plans have been developed with input from the community and City departments.  There is a clear, unmet childcare need in the community, and there are available Redevelopment Agency funds to complete the project.  Furthermore, the proposed childcare and family resource center assists in meeting the Redevelopment Agency�s primary purpose of blight elimination through measures that support economic development, and by providing community-serving facilities that support the revitalization of the Project Areas and Focus Neighborhoods.

FISCAL IMPACT

The capital, consultant and pre-opening expenses of the adaptive reuse of the former Buena Vista library site as a childcare and family resource center is $3,216,390 million dollars.  However, as there is $320,660 in available funds in the project account (including $34,743 received through the State Department of Housing and Community Development (HCD) Workforce Housing Grant program), an appropriation of $2,895,730 is required.  Sufficient funding is available in the Golden State and West Olive Redevelopment Project Areas un-appropriated fund balance (bond proceeds).  Staff proposes to use $700,000 in West Olive bond proceeds, and $2,195,730 in Golden State bond proceeds, and recommends those funds be transferred to project account number 301.CD22A.70004.0000.15653.

RECOMMENDATION

Staff recommends the approval of the proposed Redevelopment Agency and City Council resolutions.

EXHIBITS

Exhibit A �     Site Plan, Floor Plan and Elevations

Exhibit B �     Conceptual Landscape Plan

Exhibit C �     Planning Board Resolution No. 2969

Exhibit D �     Planning Board Meeting minutes of January 10, 2005

Exhibit E �     Alley Vacation Map V-370

Exhibit F �      Map of block bounded by Buena Vista Street, Verdugo Avenue, `         Frederic Street and Clark Avenue

Exhibit G �     Map of Existing Alley Improvements

Exhibit H �     Department Comments on Alley Vacation V-370

Exhibit I �       Knowledge Learning Corporation Report �

Executive Summary

Exhibit J �      Summary of Bids Received

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