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HomeMy WebLinkAboutAGENDA REPORT 1993 0106 CC REG ITEM 11CMOORPARK 799 Moorpark Avenue Moorpark, California 93021 A G E N D A R E P O R T gy.it.. IT /)Ibco LA L: y Coun t ACTION: 6y TO: The Honorable City Council FROM: Donald P. Reynolds Jr., Administrative Services Manager DATE: December 28, 1992, (CC Meeting of January 6, 1992) SUBJECT: Community Development Block Grant (CDBG) Status Report and Consider Development of 1993 /94 Funding Objectives Introduction The following report will summarize past City CDBG appropriations, review the status of these programs, and suggest certain objectives for the upcoming CDBG appropriations for consideration by the City Council. Staff is recommending that funds continue to be provided for administration and public services to the maximum amount allowed by law, that the balance of the grant be applied towards the street improvement project on Charles Street, and that funding for affordable housing be deferred until a site is secured. This report comes to the Council as the result of procedures established for the CDBG program on April 12, 1989. Staff requests authorization to distribute requests for proposals to various interested parties during the months of January and February, and return to the Council on March 3, 1992, in order to evaluate the proposals and receive public testimony for determining the uses for the 1993/94 CDBG appropriations. The information from this hearing will be evaluated by the Budget and Finance Committee, and Committee recommendations will be presented to the Council on March 17, 1993. The 1993/94 funds will most likely be available for the City's use in September 1993, and have been estimated to be between 5% and 15% less than received in previous years, (the 1992/93 grant was $184,334). BACKGROUND The City participates in the annual appropriations of grant funds for CDBG program as part of the Urban County Entitlement program, administered by the County of Ventura, in cooperation with the cities of Camarillo, Port Hueneme, Ojai, Fillmore, Santa Paula and Moorpark. The Housing and Community Development Act of 1974, as amended, established three national objectives for the Community Development Block Grant: 1) to benefit low and moderate income persons; 2) to eliminate slum and blighted conditions, and; 3) to PAUL W. LAWRASON JR. Mayor RY BERNARDO M. PEREZ ROY E. TALLEY JR. JOHN E. WOZNIAK SCOTT MONTGOME Mayor Pro Tern Councilmember Councilmember Councilmember Printed On Recycled Paper CDBG RFP's 1993/94 December 28, 1992 meet a particularly urgent health and safety need in the community. All of Moorpark's past appropriations have focussed on the "low /mod" benefit criteria through either public services, housing, infrastructure improvements in eligible neighborhoods, and administrative expenses related to the management of these programs. The grant is limited in its funding of public service activities by a 15% cap placed on the "project" funding appropriation, ( "project" funding is the City's total grant amount less administration funds). Attachment "A" summarizes the City's past CDBG appropriations since its inception in 1986. The use of funds has varied from one program in 1986, to 11 different programs in 1991/92, to 9 programs in 1992/93. PROGRAM STATUS Of the City's appropriations, all projects have been completed through grant year 1992 except Affordable Housing Land Acquisition, Street Improvements and the Casa Pacifica project. All of the past public service programs are completed, and the funding for the 4 local programs for 1992 grant year have been obligated. Attachment "B" is a summary of the fiscal condition of the City's CDBG programs, as of November 11, 1992. Attachment "C" is a narrative of program performances over the past five years. In 1990, the City took advantage of a new proposal from the County for the administration of jointly funded projects. In the past, the Council approved the Joint Powers Agreement (JPA) for the following projects; 1987- Networking for Housing, 1990- Casa Pacifica public improvement project, Food Share Warehouse Acquisition, the Long Term Care Ombudsman and the Homeless Ombudsman program. The County plans to hold its CDBG public hearing on Tuesday, March 15, 1993, and based on the Board of Supervisor's decisions at this meeting, the City will know which proposals will be eligible for a joint powers agreement in fiscal year 1993/94. Only projects which are funded by the County's CDBG funds are eligible for JPA administration by the County. E CDBG RFP's 1993/94 December 28, 1992 DISCUSSION HUD Expenditure Obiective Two years ago the City made a successful attempt at meeting the HUD expenditure criteria by reappropriating funds from other projects to be used for public improvements while the various programs for affordable housing were in the preliminary stages. Last year, staff submitted a second expenditure plan to HUD based on the existing balance of appropriations, with emphasis on the Charles Street improvement project. The combination of the initiation of work related to the Casa Pacifica development project, ($25,000 contribution from the City), and the completion of Phase I of Charles Street, (approximately $256,377), it is estimated that by June 30, 1993, the City will be performing well above the level of expenditures required by HUD. New Regulations There are no new specific CDBG regulations to report this year. Staff continues to work with the County on projects related to the 1991 Cranston - Gonzales Affordable Housing Act which were initiated last year, but no formal programs have been developed. Future Considerations The County has shared with the associated CDBG Entitlement agencies that reduced funding may be in the future for the Ventura County. Apparently, HUD will be reevaluating its distribution of funds based on the 1990 census data with a stronger emphasis on low income communities. As a result, the County projects that it will see a reduced funding level of between 5% and 15 %, (although it has been reported that some jurisdictions across the country may receive up to a 70% reduction from HUD). CDBG Public Staff Meeting (December 10, 1992) HUD requires that the public be allowed to share CDBG proposals with agency staff persons prior to the public hearing, and staff was in attendance fulfilling this requirement as it applies to Moorpark, December 10, 1992, (at the County Government Center). At this meeting, 23 agencies made proposals to staff representing the Entitlement program. There will be a few new proposals this year for the Council to consider, and staff will be presenting these proposals as written information becomes available in March. CDBG RFP's 1993/94 December 28, 1992 Proposed Fundina Priorities (Public Improvements /Housin The City's public improvements have been the most successful use for Entitlement CDBG funds thus far, and continue to be staff's highest priority for the use of CDBG in the future. With the completion of the Virginia Colony street improvements, Charles Street is now being addressed with CDBG. Because of limited funding, this project has been divided into three phases. The construction of Phase I, which includes the portion of Charles Street between Moorpark Avenue and Magnolia Street, is funded entirely by CDBG and will be completed within the next three months. Preliminary designs for Phases II and III have been developed, and will be implemented based upon the available funding amounts for the 1993/94 fiscal year. Because progress on Charles Street is based on the availability of funds, and because CDBG funds have already been targeted for this project triggering the enforcement of federal provisions, staff feels that as many CDBG dollars as possible should be appropriated for this use. The City's CDBG appropriation for affordable housing has not progressed as anticipated over the last 12 months. The City's contract with Cabrillo Economic Development Corporation (CEDC) was extended for one year by the City Council on February 5, 1992, and this is due to expire again on January 17, 1993. The project status reports from CEDC are essentially identical to the reports received by the City one year ago stating that "negotiations are continuing" on the Casey Road site. Staff has not received any fiscal reports since July 30, 1992, (which reported expenses through March 31, 1992), and currently 49% of their $75,000 budget is available ($38,577). If CEDC is successful in securing this site, they propose to develop 83 rental units for low and moderate income persons. Last week, CEDC requested that the agreement be extended for another year. Staff will be reevaluating the program and presenting CEDC's request for an extension to the Council by the end of January. Other CDBG monies appropriated for affordable housing land acquisition equal $85,000 and remain unobligated at this time. Public Services Many proposals were received by the City in 1992 from local and county -wide public service agencies. Last year, the 15% allotment ($27,650) for this use was divided among 6 different agencies serving the seniors, homeless, the literacy program and other various needs of the low and moderate income population. The continuation of existing programs during FY 1993/94 will most likely require more than the estimated 15% funding cap. Staff 4 CDBG RFP's 1993/94 December 28, 1992 recommends that the Council for currently funded public programs, number of persons submitted for new services Attachment "C." Administration consider the use of the 15% allotment services based the performance of past served and in relation to proposals . Current performances are stated in Since 1989, the City has approved the expenditure of CDBG for administrative purposes. This amount has ranged from between $19,070 to $22,590, and accounts for approximately half of the salary and benefits of the Administrative Services Manager. Last year, the County requested that 1% of these funds ($1,890) be contributed to a HUD mandated program to "affirmatively further fair housing." Staff has been informed that this request will be made each year by the County from the administrative set aside until the law changes. RECOMMENDATION That the City Council authorize staff to request proposals for the use of CDBG funds for the upcoming 1993/94 appropriations, consistent with this report and pursuant to the following schedule: Request For Proposals 1/6/93 to 2/19/93 Staff to Review Proposals 2/22/93 to 2/24/93 Open Public Hearing, Receive Public Testimony 3/3/93 Budget and Finance Committee Review 3/4/93 to 3/11/93 Final Appropriations 3/17/93 Proposals Due to County by 4/14/93 Attachments: A) Five Year Overview of Past Appropriations B) Project Status- Fiscal Summary C) Project Status- Narrative 5 ATTACHMENT "A" Overview of Past Appropriations All funds are obligated by contract or have been spent unless otherwise noted. CATEGORICAL PERCENT DISTRIBUTION Program 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 TOTAL OF FUNDS OF FUNDS ----------- - - - - -- - - - - -- Administration - -- 0 0 19070 19810 19010 21620 22590 102100 9.11% 9.11% Public Improvements 66.89% Virginia Colony Streets 133660 52321 0 0 0 0 0 185981 16.60% Charles Street 0 1795 105266 44734 57358 81773 109094 400020 35.70 %* Handicap Ramps 0 0 0 92266 39222 0 0 131488 11.74% Food Share 0 0 0 0 5000 2000 0 7000 0.62% Club Acq. (program deleted) 0.00% Casa Pacifica 0 0 0 0 25000 0 0 25000 2.23% Affordable Housing 14.73% CEDC (Acq.) 0 75000 0 0 0 0 0 75000 6.69% Aguisition 0 0 0 0 0 60000 25000 85000 7.59% ** Networking 0 5000 0 0 0 0 5000 0.45% Public Services 9.27% Sr. Nutrition 0 0 0 10000 10000 10500 10000 40500 3.61% Sr. Lifeline 0 0 0 5480 0 0 0 5480 0.49% Vocational Trng. 0 0 0 5437.43 0 0 0 5437.43 0.49% Adult Literacy 0 0 0 0 8000 5000 5000 18000 1.61% Homeless Omb. 0 0 0 0 500 500 500 1500 0.13% Legal Services 0 0 0 562.57 7000 1200 3650 12412.57 1.11% Senior Equip. 0 0 0 0 0 1987 0 1987 0.18% Long Term Care Omb. 0 0 0 0 0 2500 1000 3500 0.31% Cath. Charities 0 0 0 0 0 7500 7500 15000 1.34% --------------------------------------------------------------------------------------------------------------------------- Totals 133660 134116 124336 178290 171090 194580 184334 1120406 100.00% 100.000-0 Of $400,020, $39,550 was used on Charles Street Design, leaving a balance of $390,470. Charles Street Construction has encumbered $256,377, leaving a current balance of $104,093. ** These funds are not obligated PAGE 1 of 1 ATTACHMENT "B" PROGRAM EXPENDITURES AS OF SEPTEMBER 30, 1992 Affordable Housing CEDC (Acq.) 0 (no 1992 /93 Public Service Expenses are shown) 0 0 0 % OF 0 75000 36423 38577 51.44°% Aquisition 0 0 0 0 FUNDS Program 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 TOTAL EXPENSES BALANCE BALANCE Public Improvements 0 5000 5000 0 0.00% Public Services Virginia Colony Streets 133660 52321 0 0 0 0 0 185981 185981 0 0.00% Charles Street 0 1795 105266 44734 57358 81773 109094 400020 39550 * 360470 90.11% Handicap Ramps 0 0 0 92266 39222 0 0 131488 131488 0 0.00% Food Share 0 0 0 0 5000 2000 0 7000 7000 0 0.00% Club Acq. (program deleted) 0 0 0 0 8000 5000 5000 18000 13000 Casa Pacifica 0 0 0 0 25000 0 0 25000 0 25000 100.00% Affordable Housing CEDC (Acq.) 0 75000 0 0 0 0 0 75000 36423 38577 51.44°% Aquisition 0 0 0 0 0 60000 25000 85000 0 85000 100.00% Networking 0 5000 0 0 0 0 5000 5000 0 0.00% Public Services Sr. Nutrition 0 0 0 10000 10000 10500 10000 40500 30500 10000 24.69% Sr. Lifeline 0 0 0 5480 0 0 0 5480 5480 0 0.00% Vocational Trng. 0 0 0 5437 0 0 0 5437 5437 0 0.00% Adult Literacy 0 0 0 0 8000 5000 5000 18000 13000 5000 27.78% Homeless Omb. 0 0 0 0 500 500 500 1500 1500 0 0.00% Legal Services 0 0 0 563 7000 1200 3650 12413 8200 4213 33.94% Senior Equip. 0 0 0 0 0 1987 0 1987 1987 0 0.00% Long Term Care Omb. 0 0 0 0 0 2500 1000 3500 3500 0 0.00% Cath. Charities 0 0 0 0 0 7500 7500 15000 7500 7500 50.00% --------------------------------------------------------------------------------------------------------------------------- Totals 133660 134116 105266 158480 152080 172960 161744 1018306 482546 535760 52.61% * Of $400,020, $39,550 was used on Charles Street Design, leaving a balance of $390,470. Charles Street Construction has encumbered $256,377, leaving a current balance of $104,093. when the Charles Street Project Phase 1 is completed, all but 17% of the total CDBG funding will be expended or obligated. PAGE 1 of 1 Attachment C December 28, 1992 CDBG PROGRAM STATUS This narrative describes City progress with past and current CDBG appropriations. The fiscal status of each of these programs has been summarized with all other programs for the Council in Attachment "B." Public Services (9.27% of Funds) The City has consistently funded several programs making a variety of services available to Moorpark citizens of low and moderate income status. The table below is an attempt to illustrate the number of persons served for each program, and length of time that these programs have existed under the CDBG sponsorship. Active Local Programs Number of Program Years Funded Number served Senior Nutrition Adult Literacy Legal Services (provided for the low income families) Catholic Charities Senior Life Line 4th year 10 to 18 seniors served daily, 85 different persons during 1991/92 3rd year 34 persons enrolled 3rd year 152 families assisted last year 2nd year 3,517 served person last year telephone answering device 1 year currently 5 of the 10 devices are installed Joint Powers Agreement,. (active county -wide services) Homeless Ombudsman 3rd year 1,000 persons served per year, 8 to 12 families in Moorpark Long Term Care Ombudsman 2nd year 513 persons served last year 1 Attachment C December 28, 1992 Public Services that have been Concluded The initiation of a Vocational Training program with the Boys and Girls Club, (CDBG sponsorship ended in January 1992). Acquisition of equipment for the Moorpark Senior Citizens Club, which has now been transferred to the City and remains at the Senior Center. Public Improvements (66.890 of Funds) Public improvements have progressed rapidly over the past year. The City's handicap ramp project and Virginia Colony street improvements have both been recently accepted by the City, using $185,981 in Virginia Colony and $131,488 for Handicap Ramps. A contract of $256,377 was awarded for improvements to Charles Street on October 30, 1992, and these improvements are currently being initiated. Street improvements have occurred throughout the City. The Virginia Colony project added a dramatic improvement to a neighborhood of approximately 50 homes by connecting Nogales Avenue and Avenida Colonia and providing sidewalks and a new street overlay. The Removal of Architectural Barriers project placed 121 handicap ramps on street corners City -wide, to the benefit of approximately 100 of the community, (this is the estimate of handicapped individuals provided by Easter Seals of Ventura County). Removal of architectural barriers also helped to provide access for handicap persons at Griffin Park. Charles Street improvements will dramatically improve the aesthetics, pedestrian safety and the storm drainage in this neighborhood. Other public improvements have progressed as well. The Food Share warehouse acquisition project has been completed relieving this non - profit agency of monthly rental costs for their facility. The Casa Pacifica project broke ground in the spring of 1992, and will expend the CDBG portions of the project within the next 6 months. Affordable Housing (14-73% of Funds) The second largest amount of appropriations are for affordable housing. The projects related to this category are moving slowly, but are making progress. Approximately one year ago, CEDC placed a bid on the property at 280 Casey Road and reports indicate that negotiations are continuing. Networking for Housing awarded a loan to the Area Housing Authority for a project near Lake Piru to develop affordable housing units for this community. 2 Attachment C December 28, 1992 As of May 30, 1992, CEDC reported that $36,423 of the $75,000 grant had been used for the search and procurement of land. In the event that the City does not extend the CEDC Agreement due to expire on January 17, 1993, the balance remaining (to include expenditures between May and December 1992) could be used for another purpose. The majority of funds ($85,000) for acquiring land for development of new affordable housing units have not been obligated yet. Administration (9.110 of Funds) The need for funding administrative costs persists because of the many Moorpark CDBG programs in operation at this time. The current appropriation of CDBG is approximately 200 less than the related expenses incurred by the City during the administration of the grant thus far. This estimation does not include indirect costs or overhead expenses. It is anticipated that this need will continue through fiscal year 1993/94. The Fair Housing contribution made by the City from 1% of its administrative funds has not been determined for a specific use yet. Three meetings have occurred amongst representatives of each Entitlement jurisdiction in an attempt to create a program to promote fair housing, and soon, the Entitlement jurisdiction hopes to enter to an agreement with a consultant to develop awareness programs and staff training. 3