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Exh 8DAGENDA ITEM SD MARCH 25, 2002 CITY OF ATLANTIC BEACH CITY COMMISSION STAFF REPORT AGENDA ITEM: Revision to FY 2001-2001 Community Development Block Grant Contract SUBMITTED BY: .Sonya Doerr, AICP, Community Development Director 5~® DATE: March 18, 2002 BACKGROUND: The Community Development Block Grant (CDBG) contract submitted in April of last yeaz contained a request for $96,000 to be used to purchase construction materials for the Jordan Park Community Center reconstruction. Because volunteer labor was used to make the improvements to the facility, the City has been advised that Davis Bacon Wage Act provisions prohibit use of Federal CDBG funds for this project. (The City's original CDBG application stated that volunteer labor would be used for this project; however, the final executed contract prepazed by the City of Jacksonville did not include this provision.) Since the Jordan Park Community Center improvements have .been determined not to be a reimbursable expense, the current contract must be amended to use these funds for other CDBG eligible activities. Staff has been advised by the City of Jacksonville's Community Development Division that an administrative amendment can be made to our contract provided that the funds are used for projects within the same activity category. City staff has met to identify and discuss the most urgent needs in the CDBG area, which would be eligible projects within the Public Facilities and Infrastructure category, and which can be completed during the current CDBG contract yeaz. The Public Works and Utility Departments have recommended the continuation of the sewer replacement and rehabilitation work that has been underway in the Donner Road. Approximately $46,000 is proposed to be allocated for this work. Additionally, several sections along Orchid Street and Rose Street have no sidewalks, and there is a relatively high level of pedestrian activity in this area. The remaining $50,000 is proposed to construct sidewalks to the extent funds will allow along these streets. Both of these activities aze eligible uses of funds within the Public Facilities and Infrastructure category. BUDGET: Mid-year budget amendment to eliminate CDBG operating budget amount of $96,000 for Buildings (Acct. No. 110-1005-515.62-00) and add CDBG operating budget lines of $46,000 for sewer replacement and $50,000 for sidewalk construction. (The $96,000 for the Jordan Park Community Center was included in last year's general fund budget, and the work was paid for from that fund. The $96,000 of CDBG funds were intended to be a reimbursement to the General Revenue fund for the Jordan Park work, until the City was advised that this was not an eligible CDBG activity.) RECOMMENDATION: Motion to authorize Staff and Mayor to execute an amendment to the Fiscal Year 2001-2002 CDBG... ATTACHMENTS: None. REVIEWED BY CITY MANAGR3L•