PURPOSE

The purpose of this report is to recommend adoption of a Memorandum of Understanding for Cooperative Joint Use and Improvement of Recreation Facilities between the City of Burbank and the Burbank Unified School District and to appropriate funds related to these improvements.

This first step segregates funds for the estimated costs of the project, authorizes preconstruction activities to begin, such as design work, and identifies the steps necessary in the joint cooperative effort with the School District. Step two, which will occur at a later date, will involve the Council and School District consideration of a detailed Joint Use and Improvement Agreement, which will come back to each body before any construction contract is considered.

BACKGROUND

A Joint Meeting of the City Council and Board of Education was held on January 31, 2007, at which time there was discussion and consideration of funding improvements to Jordan Middle School, John Burroughs High School and Burbank High School athletic facilities.  For background and reference purposes, a copy of the staff report for the January 31, 2007 meeting is attached as Exhibit 1.  Additionally, the staff report and supporting documents from the October 16, 2006 Joint Meeting related to this subject are attached as Exhibit 2.

As presented during the Joint Meeting, athletic field infrastructure improvements are being recommended at three Burbank Unified School District facilities; namely, Burbank High School, John Burroughs High School and Jordan Middle School.  At both high schools the installation of high quality all-weather synthetic track and field surfaces and various support facilities are recommended.  At John Burroughs High School the replacement of the stadium seating at Memorial Field is also recommended.   Proposed improvements at Jordan Middle School include the addition of parking, irrigation, natural turf and support facilities.   During the Joint Meeting, staff received direction from the Council and School Board to: (1) obtain community input from residents near Jordan Middle School concerning the proposed improvements; and (2) return to the City Council and the School Board with the identified funding appropriations.     

Related to the proposed improvements to Jordan Middle School, staff was directed at the January 31, 2007 Joint Meeting, to initiate the necessary neighborhood and community outreach efforts.  Notices were sent to 1,500 residents living in the area and adjacent to Jordan Middle School advising them of two community meetings scheduled for the purpose of discussing the proposed improvements and soliciting feedback. Representatives of local soccer organizations, as well as the Vikings Football Program, were also notified regarding these meetings to accommodate their input.  The meetings were held on Monday, March 12, 2007 at 7 p.m. and on Saturday, March 17, 2007 at 10 a.m. in the Jordan Middle School cafeteria facility.  Approximately 25 individuals attended the Monday meeting and 34 residents attended the meeting on Saturday morning.  All of the members of the Steering Committee, including Council representatives Marsha Ramos and Jef Vander Borght, School Board representatives Debbie Kukta and Dave Kemp, Dr. Greg Bowman, Superintendent, and Mary Alvord, City Manager, attended both meetings.

Each meeting began with a staff overview of the proposed improvements to Jordan Middle School along with a discussion of the scope of work proposed for the two high schools.  Following the staff presentation, the meeting was open to questions and comments from the public.  During public comment the residents in attendance identified the following concerns:  (1) traffic impacts; (2) parking impacts; (3) speeding; (4) excessive noise from the various user groups; (5) lack of enforcement related to traffic and parking violations; (6) litter impacts on the neighborhood; (7) lack of campus security; (8) vandalism to private property; and (9) non-resident use of the school facilities.  A detailed summary of the comments from both public meetings is attached as Exhibit 3.

In addition to identifying these concerns related to existing joint use of the Jordan Middle School campus, those in attendance also voiced strong opposition to the installation of field lighting.  One resident in attendance opposed the proposed new parking facility adjacent to the District�s maintenance facilities because of the impact to Shelton Street.

Related to moving forward with the improvements to John Burroughs High School and Burbank High School, the City Council, at the Joint Meeting held on January 31, 2007, unanimously directed staff to bring back a funding appropriation in the amount of $9,650,000.  This appropriation includes a $650,000 payment from the City of Burbank to the School District for prior joint use.

ANALYSIS

Following the Joint Meeting on January 31, 2007, City and District staff has met on two occasions to discuss a variety of issues related to the projects at Burroughs High School, Burbank High School and Jordan Middle School.  Discussions have included:  (1) development of a Request for Proposal for architectural services, including the scope of work to be completed; (2) scheduling of proposed improvements; (3) project oversight; and (4) establishment of escrow accounts for appropriated project funds.

Additionally, the Steering Committee met on Monday, April 9, 2007, to receive an update from staff on the status of the projects and to formulate their recommendations for consideration by the City Council and the School Board.  An agenda for this meeting is attached as Exhibit 4.  The Committee�s recommendations are summarized by school as follows:

Jordan Middle School

Relative to the proposed improvements to Jordan Middle School and based on input from the two community meetings, the Steering Committee does not recommend the installation of field lights at this time.  It is clear that the current joint use of the Jordan Middle School campus has impacted the adjacent neighborhood and that mitigation efforts are needed to lessen the impacts of existing uses.  At the direction of the Steering Committee, staff has initiated work to determine the feasibility of installing speed humps on Mariposa and the appropriateness of permit parking as a mechanism for protecting residents living adjacent to the school.

While the new parking lot facility, proposed to be built adjacent to the District�s maintenance facility, will add traffic to Shelton Street, it is recommended by the Steering Committee to move forward with this improvement.  This parking lot will provide approximately 70 additional off-street parking spaces which will benefit the residents in the impact area.  As directed by the members of the Steering Committee, the City�s Traffic Engineer is exploring options to address the safe ingress and egress for this parking facility as well as alternatives for mitigating traffic impacts on Shelton.

Based on the Steering Committee�s recommendations, the Council is being asked to appropriate $2,000,000 in Youth Endowment Services funds to proceed with the improvements to Jordan Middle School.  These improvements will include:  (1) the new parking lot facility; (2) new public restroom facility for after school use; (3) required demolition of existing facilities to facilitate public access and allow for track and field component replacements; (4) campus security measures to limit access during after-hour use; and (5) installation of new irrigation systems, soil preparation and re-seeding of both athletic fields.  To reiterate, the Steering Committee is not recommending the installation of field lights at this time.  However, as part of the scope of work, the architect will be asked to look at, as other electrical work is being completed, any necessary infrastructure work that could make lighting a future phase.  Specifically, the Steering Committee wants to insure that if lights are approved in a future phase of work, that damage is not done to this first phase of improvements to install the lighting infrastructure.

Should the Council approve and appropriate this funding, it is anticipated that work at Jordan will be initiated as early as this summer � specifically as it relates to the demolition, site preparation and construction of the new parking lot facility.  However, given that the Jordan fields will continue to receive heavy use by the community while work is completed to the two high schools, the Steering Committee is recommending that the actual field improvements (i.e. new irrigation systems, soil preparation and re-seeding) be completed after both high schools are renovated as a separate phase of work.

It is clear, based on the input from the community, that the joint use of Jordan Middle School has significantly impacted the residents in the adjacent neighborhood.  More security and enforcement efforts are needed if joint use is to continue without the disruptions and impacts that were identified.  The addition of security personnel, which will be hired by the District and paid for by the City under the terms of a new Joint Use Agreement, will greatly enhance our ability to respond and resolve many of the issues identified by the residents of this area.  It should also be noted that completion of improvements to both high schools will also help alleviate the heavy use of Jordan by community groups since more use dates will be available at the two high school facilities.

Burbank High School

Subsequent to the January 31, 2007, Joint Meeting of the City Council and the Board of Education, the Steering Committee received a proposal from coaches, players and supporters of the Burbank High Baseball Program.  A copy of that proposal is attached as Exhibit 5.  Essentially, the proposal asks for consideration of enlarging and improving the baseball field in conjunction with the track and field improvement project.  City and District staff, along with the members of the Steering Committee, have carefully discussed and considered this proposal.  District staff was specifically asked to have an architect review the scope of work in the proposal and accordingly develop a more realistic cost estimate.  These efforts have determined that the improvement work, as outlined in the proposal, would cost approximately $350,000.

While this additional cost is significant, given the existing funding gap of nearly $2,000,000 for the overall improvements to the two high schools, there are other factors that the Steering Committee considered and discussed.  The proposed work to increase the size of the baseball field would require the football field and track to be moved approximately 45 feet south.  While this is physically possible, as the other improvements are being completed, moving the track and field would shift these facilities out of alignment with the existing permanent bleacher structure.  As funds are expended to make Burbank High School more usable for such community groups as soccer and Vikings football with the addition of lights and synthetic turf, it is important to remain focused on an end-project that will be of greatest benefit to the entire community.  The Steering Committee, in analyzing the merits of this proposal, also took into consideration the existing athletic field adjacent to and south of the track and field which would be reduced if the baseball field was enlarged.  This field is currently used daily for school athletic programs, physical fitness classes and for band rehearsal.  The loss of a portion of this field (estimated at over 6,300 square feet) would be significant to the school.

While all the members of the Steering Committee recognize the limitations of the existing baseball field at Burbank High School and gave the Baseball Field Upgrade Proposal their full consideration, for the reasons previously identified, they have serious concerns and reservations about moving forward with these changes.  It should be noted, however, that the baseball field at Burbank High School is not used by community groups or for joint use purposes.  Therefore, relative to this proposal, it is primarily a decision for School District action and funding consideration.  A discussion of this proposal is scheduled for the April 19, 2007, meeting of the Board of Education.

The members of the Steering Committee recommend moving forward with the preparation of plans for the improvement work at Burbank High School to include:  (1) a new restroom facility for use by the public during non-school hours; (2) new track and field facilities with synthetic surfaces; and (3) added field lighting.  While it is somewhat premature to discuss the project schedule, given that staff is still drafting a Request for Proposal for architectural services, it is the desire of the Steering Committee that the improvements to Burbank High School be completed as the first phase.  This will help address and eliminate issues related to the traction from the existing track damaging the gym floor and requiring additional maintenance.  While it is the intention of staff and the members of the Steering Committee to expedite the improvements to Burbank High School and to optimistically look at construction beginning in late fall 2007 or early winter 2008, much will depend on how quickly the plans will be processed and approved by the Division of the State Architect (DSA).

Stadium at Memorial Field and Burroughs Track and Field

In addition to the track and field improvements, the members of the Steering Committee continue to recommend building a new stadium facility at John Burroughs High School.  While this will result in decreased seating capacity due to Americans with Disabilities Act (ADA) regulations and compliance, it will provide a state-of-the-art, structurally sound, ADA compliant facility that will better meet the equipment storage needs of the various user groups.  Additionally, new concession and restroom facilities are proposed along with aesthetic improvements to the frontage.  The Steering Committee has received some input from members of the community requesting that, as this project moves forward, the fencing around the tennis courts and baseball field also be replaced.  The Steering Committee recommends that the additional fencing replacement be added to the scope of work and included as a bid alternate.  This would greatly enhance the aesthetics of this entire portion of the John Burroughs High School campus.

Obviously, the scope of work at John Burroughs High School is much larger than the work proposed at Burbank High School, and it is anticipated that the design and construction of a new stadium will take longer.  As currently planned, and if approved by the City Council, it is anticipated that the improvements to John Burroughs High School, including the new stadium and related facilities, as well as the track and field replacement, would commence in the fall/winter (following the football season) of 2008/2009.  The improvements to Burbank High School should be completed, and this facility back in use, prior to work commencing at Burroughs.  The final phase of field improvements at Jordan would follow the completion of the Burroughs improvements � optimistically in the summer of 2009.

Project Oversight

As the City and the School District move forward with the improvement work to all three identified schools, project oversight will be critical.  Following discussions with City and District staff, the City Manager and the Superintendent of Schools have created a Joint Oversight Committee that consists of:

          City Manager

          School Superintendent

          Two School Board Members to be appointed by the Board of Education

          Two City Council Members to be appointed by the City Council

        Two at-large community members, one appointed by the City Council and one appointed

           by the School Board.

As envisioned, this committee would provide administrative oversight for the projects at all three schools and be responsible for periodic updates and status reports to the City Council and School Board, and replaces the previous Steering Committee which provided recommendations for the projects.  The members of the Joint Oversight Committee will work to ensure that construction planning, timelines, bidding, inspections and costs are reviewed before and during actual construction in accordance with the expectations of the City of Burbank and the Burbank Unified School District.  Additionally, it is envisioned that this committee will assist with recommendations related to key architectural components and assist with any necessary value engineering decisions.  The Joint Oversight Committee will also be responsible for monitoring fundraising efforts and appraising the City Council and School Board regarding the status of these efforts.  The Joint Oversight Committee shall serve through the completion of the improvements to both high schools and Jordan Middle School.

Given that all the improvement work will be completed on School District property, it is recommended that the District take the lead on the day-to-day management of the projects.  However, it is staff�s recommendation that a portion of the project funds be utilized to hire a dedicated Project Manager to oversee the improvements at Burbank High School and John Burroughs High School.

FISCAL IMPACT

A breakdown of proposed funding appropriations related to the Jordan Middle School, John Burroughs High School and Burbank High School athletic facilities projects are detailed below.

Escrow Accounts

The Steering Committee is recommending the establishment of escrow accounts with Wells Fargo Bank, to allow for the project funds to be deposited, monitored and controlled.  If the funding is approved and appropriated by City Council, four accounts will be established.  One account will be for $2 million in YES Funds, specifically, for the improvements at Jordan. Only preconstruction expenses (i.e. plans and specifications) may be paid for from this fund until further approval is provided by Council.   The second will be established with the District�s $1.5 million contribution and a match of $1.5 million from the City of Burbank.  This will allow for an equitable drawdown of these funds, for immediate use for preconstruction activities at the high schools, such as plans and specifications, when approved by both parties.  The third account will be established with the remaining City funds in the amount of $8.15 million. This account will accrue interest and act as a holding account pending approval of future construction contracts.  The fourth account will be established for purposes of depositing and monitoring monies generated through fundraising efforts. 

Release of funds for any preconstruction activities will require the approval of the City Manager as well as the Superintendent of Schools.  With the approval of the Superintendent and the City Manager, funds will be released from the appropriate account for the purpose of paying approved invoices.  All interest accrued will remain in the escrow accounts and be utilized for these projects.

It should be noted that the Burbank Unified School District took action at their February 15, 2007 Board of Education meeting to appropriate $1.5 million for the track and field improvements at Burroughs and Burbank High Schools.  The agenda for this meeting is attached as Exhibit 6.

The City has negotiated the establishment of the escrow account with Wells Fargo Bank, Corporate Trust & Escrow Services.  Normally, the Bank would charge a $2,000 fee for establishing and administering the escrow. However, as a goodwill gesture, and since the City and Agency have used Wells Fargo�s services on various other financial transactions over the years, Wells Fargo has agreed to waive its escrow fees.  In addition, monies held within the escrow account will earn interest while they are held in the account. The earnings rate is a variable rate tied to the earnings on a Wells Fargo money market fund.  As of the beginning of March, the funds on deposit in this money market fund earned at the rate of 5.16%.  Earnings will fluctuate with market conditions.

Staff also explored the option of establishing an escrow account with the State�s Local Agency Investment Fund (LAIF). Although the LAIF earnings rate is comparable to the Wells Fargo money market account, LAIF imposes restrictions with regard to deposits and withdrawals. For example, LAIF will allow only one deposit; no additional deposits may be made after the initial deposit. On the other hand, Wells Fargo allows daily deposits.  In addition, LAIF has restrictions on number of withdrawals, whereas Wells Fargo is more flexible, allowing one withdrawal per week.

Therefore, staff recommends that the escrow account be established through Wells Fargo Bank.  Since Wells Fargo has agreed to waive its fees, there is no cost associated with the escrow account.  Earnings will accrue to the account; however, those earnings cannot be estimated until a construction draw down schedule is established.

Fundraising and the Funding Gap

At the January 31, 2007 Joint Meeting of the City Council and the School Board, it was discussed and decided to target a community fundraising goal of $1 million.  While this effort has not been initiated, there is significant interest in the community to get this initiative under way.  Should the Council approve the Memorandum of Understanding and appropriate the related funding, this will send a strong message that the projects are moving forward.  This should give good momentum to kicking off fundraising efforts in the community.

It is important to remember that even with the $1 million fundraising effort, there remains nearly a $2 million deficit related to the proposed high school improvements, which again is based upon preliminary estimates.  While tonight�s actions would provide sufficient funds to move forward with the preparation of plans and specifications for improvements at both high schools, there will likely not be sufficient funding to award bid � at which time the funding gap will need to be discussed and addressed if the projects are to move forward.  A copy of the estimated project costs, as identified at the January 31, 2007 Joint Meeting are attached as Exhibit 7.  It should also be noted that the Burbank Unified School District has the issue of the athletic field improvements on their April 19, 2007 agenda.  It is anticipated that there will be a discussion at this time related to the School Board�s consideration of appropriating additional project funds.

Youth Endowment Services Funds

The City Council established the Youth Endowment Services (YES) Fund during their meeting of January 15, 1991.  This 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.  During the May 5, 1998 YES Fund Board of Directors meeting, staff was directed to also incorporate five percent of the incremental tax revenues from the new South San Fernando Redevelopment Area.  There is also a private contribution to this effort, comprised of donations received from the community, which is specifically designated for this purpose. When the YES Fund was established, the Agency required all expenditures of the tax-increment funds to return to the Agency Board and the City Council so that the determinations and findings required by redevelopment law could be made.

In 2004 and 2006, at Joint Meetings of the Board of Directors of the Youth Endowment Services Funds, the Redevelopment Agency Board, and the City Council, the expenditure of $2,000,000 of YES funds were approved for the Ovrom Park Project.  Additionally, the findings required by Health and Safety Code Section 33445 were made by the Agency Board and the City Council (the �Findings�).  Now, the Board of Directors of YES, the Redevelopment Agency Board, and City Council are in this matter being asked to:  (1) redesignate the use of those previously approved YES funds from the park project to the Jordan Middle School Project; and (2) substitute a new Agency deposit of $2,000,000 to the Ovrom Park Project to replace those redesignated funds. The replacement funds, like the YES funds, are still redevelopment tax increment; however, they are not encumbered to YES.  In order to substitute other Agency funds for the YES funds, the Agency and the City are required to again restate the required Findings.

Briefly the Findings are that the public improvements funded by the tax increment will benefit the project area; that there is no other reasonable means of financing the public improvements; that the public improvements will assist in the elimination of blighted conditions inside the project area and that the expenditure is consistent with the implementation plan adopted pursuant to the redevelopment law. The Findings made in 2004 and 2006 by the Agency Board (Resolutions Nos. R-2165 and R-2101) and by the City Council (Resolutions No 27,298 and 26,694) remain applicable and are incorporated herein by this reference.

In order to use the redesignated YES funds at the Jordan Middle School, new Findings by the Agency Board and City Council are required. The improvements to the recreational facilities at Jordan Middle School will benefit all of the redevelopment project areas by providing recreational facilities 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. No other reasonable means of financing the Jordan Middle School improvements are available to the community inasmuch as the City�s General Fund has committed its resources to other capital projects and the School District does not have available funds.

Lastly, the use of Agency funds for the Jordan Middle School improvements will assist in the elimination of one or more blighted conditions inside the project area, and is consistent with the implementation plan adopted pursuant to Section 33490 of the Health and Safety Code. The redevelopment purpose served by this proposed capital expenditure 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. The City Council is further required to consent to this expenditure of Agency/YES funds.

CONCLUSION

The adoption of the Memorandum of Understanding for Cooperative Joint Use and Improvement of Recreation Facilities between the City of Burbank and the Burbank Unified School District will formally begin the first step to fund improvements to Jordan Middle School, John Burroughs High School and Burbank High School athletic facilities. This first step segregates funds for the estimated costs of the project, authorizes preconstruction activities to begin, and identifies the steps necessary in the joint cooperative effort with the School District. Step two, which will occur at a later date, will involve the Council and School District consideration of a detailed Joint Use and Improvement Agreement, which will come back to each body before any construction contract is considered.

The City of Burbank and the Burbank Unified School District have a successful history related to the joint use of facilities which has been of great benefit to the entire community.  The proposed improvements to Jordan Middle School, Burbank High School and John Burroughs High School will be important assets as we continue, in a built-out City, to try and meet the growing needs of youth sports programs.  Moving forward with these projects is a tremendous opportunity for the entire community and a goal which, with continued cooperation, community support and sound management, now seems achievable.

RECOMMENDATION

City staff and the members of the Steering Committee recommend that the City Council, Agency Board, and YES Board approve a Memorandum of Understanding for Cooperative Joint Use and Improvement of Recreation Facilities between the City of Burbank and the Burbank Unified School District and to appropriate funds related to these improvements by adopting the following resolutions:

City Council:

A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK APPROVING THE MEMORANDUM OF UNDERSTANDING AGREEMENT FOR COOPERATIVE JOINT USE AND IMPROVEMENT OF RECREATION FACILITIES BETWEEN THE CITY OF BURBANK AND THE BURBANK UNIFIED SCHOOL DISTRICT.

A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK AMENDING THE FISCAL YEAR 2006-2007 ANNUAL BUDGET BY APPROPRIATING $11,326,472 FOR THE BURBANK UNIFIED SCHOOL DISTRICT ATHLETIC FACILITIES PROJECTS

Agency:

A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK AUTHORIZING THE REDESIGNATION OF CERTAIN YOUTH ENDOWMENT SERVICES EXPENDITURES FOR THE JORDAN MIDDLE SCHOOL PROJECT AND AMENDING THE FISCAL YEAR 2006-2007 ANNUAL BUDGET BY APPROPRIATING $2,000,000 FOR THE OVROM PARK PROJECT.

YES Board:

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE YOUTH ENDOWMENT SERVICES FUND OF THE CITY OF BURBANK APPROVING THE REDESIGNATION OF $2,000,000 FOR THE JORDAN MIDDLE SCHOOL PROJECT.

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