04-0585R

 

RESOLUTION TRANSFERRING FUNDS IN THE AMOUNT OF $91,051 BETWEEN THE 2002 AND 2004 HUD COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAMS.

BY COUNCILOR GILBERT:

     WHEREAS, the city of Duluth established the following CDBG programs and funding changes as set forth below.

     NOW, THEREFORE, BE IT RESOLVED, that the proper city officials are authorized to make the following transfer of funds between the Federal Fund 0262, Agency 020, 2002 and 2004 HUD-funded community development accounts as set forth below:

2002 CDBG Transfers

Account Revised - 2002

Project #

Project

Budget amount

New amount

Amount of increase or decrease

6509

Grant Recreation Center improvement

$303,760

$394,811

 $91,051

2004 CDBG Transfers

Account Revised - 2002

6717

Citywide street improvement

$161,000

$ 69,949

($91,051)


STATEMENT OF PURPOSE:  The Grant Recreation Center improvement project had cost overruns due to excavation and clean-up costs associated with the removal of two underground fuel storage tanks and poor soils. The underground tanks and soils conditions were not disclosed by the land owner, who is ISD 709. The city administration has requested ISD 709's assistance with the increased financial burdens.

 

The citywide street improvement program is being reduced to cover the costs. This change is due to a new policy that modified the reimbursement process and who is eligible for reimbursement by the geographic location of their household. The policy was due to be implemented in 2005, but was moved up to 2004 to address this need.