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HomeMy WebLinkAboutAGENDA REPORT 1992 0108 CC SPC ITEM 08MTO: ;M - :Zip DATE: • s MOORPARK ITEM E3- M 799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864 M E M O R A N D U M The Honorable City Council MOOPPARK, CALIFORN[A City C uncil Wleefing of 199 Z -4,15— ACTION: By � Donald P. Reynolds Jr., Management Analyst7� December 27, 1991 ((, SUBJECT: Community Development Block Grant (CDBG) Status Report for the Development of 1992/93 Funding Objectives Introduction The following report will summarize past City CDBG appropriations, review the status of these programs, and suggest for the Council's consideration, certain objectives for the upcoming CDBG appropriations. 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 subsequent year. 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 18, 1992, in order to evaluate the proposals and receive public testimony for determining the uses for the 1992/93 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 April 1, 1992. The 1992/93 funds will most likely be available for the City's use in September 1992, and have been estimated to be approximately $17,000 less than last year's total appropriation of $194,580. 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 PAUL W. LAWRASON JR. BERNARDO M. PEREZ SCOTT MONTGOMERY ROY E. TALLEY JR. JOHN E. WOZNIAK U.— Mav r Prn Tem Councilmember Councilmember Councilmember CDBG RFP Request December 27, 1991 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 eliminate an urgent health and safety need in the community. All of the 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, (i.e., City's total grant amount, less administration times 15 %). Attachment "A" summarizes the City's past CDBG appropriations since its inception in 1986. The use of funds has grown from one program in 1986, to 11 different programs in 1991/92. PROGRAM STATUS Of the City's appropriations, eight projects have been completed, and several more are progressing. Attachment "B" illustrates what funds have been spent on various City projects as of December 10, 1991, and which have been completed. The "expenditures" for this table are based on reported expenses through December 10, 1991. Because the current Quarterly Status Report for the period ending December 31, 1991, is not due until after the first of the year, the most current figures are not yet available from many City grant sub - recipients. Attachment "C" describes the progress of the City's projects according to the categories provided in Attachment "B." In 1990, the City took advantage of a new proposal from the County for the administration of jointly funded projects. In the past year, 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, and the Homeless Ombudsman program. The County plans to hold its CDBG public hearing on Tuesday, March 10, 1992, 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 1993. Only projects which are funded by the County's CDBG funds, (and subsequently funded by a participating city), are eligible for JPA administration by the County. 2 CDBG RFP Request December 27, 1991 DISCUSSION HUD Expenditure Objective Last year, 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. This year, staff submitted a second expenditure plan to HUD based on the existing balance of appropriations, with emphasis on the Charles Street improvement project. New Regulations There are no specific CDBG regulations to report this year, but staff will continue to inform the Council about the current events related to the Cranston - Gonzales Affordable Housing Act as information becomes available. This program impacts the CDBG Entitlement agencies by introducing new programs and funding resources, (e.g., HOME funds), but does not directly impact the Policies related to CDBG. CDBG Public Staff Meeting (December 13 1991) 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 at the second such public staff meeting, held at the County Government Center, December 13, 1991, (fulfilling HUD's requirement as it applies to Moorpark). At this meeting, over twenty agencies made proposals to staff representing the Entitlement program. Most agencies that submitted an application to the City last year for grant funds were present at this meeting, and thus far, there are no new requests to report to the Council. Future Considerations This year represents the first year of a new three year Cooperative Agreement between the City and the County, presented to the Council in July of this year. Prior to executing the agreement, staff reported to the Council that the formula for disbursing the funds had been changed in a way that adversely affects Moorpark's allocation.. In prior agreements, the formula for disbursing funds to each agency consisted of a straight percentage of each jurisdiction's population, (Moorpark increased to 11.1 %). This year, ( and for the next three years) , the formula includes a factor for "poverty and housing," which drops the percentage of funds distributed to the City to 8.95 %. The anticipated result is a decrease in project funding of approximately $17,000, if the funds received this year match last year's funding level. The new 3 CDBG RFP Request December 27, 1991 formula does not impact. the administrative funding levels, therefore, the administrative allotment is anticipated to be the same, (approximately $21,620). No indication of funding levels for this year have been provided yet to staff by the County, (this information is typically made available by HUD each February). Proposed Funding Priorities Public Im rovements Housin The City's public improvements have been the most successful use for Entitlement CDBG funds thus far. Currently, staff is implementing plans to improve Charles Street in phases, because funding is not available to complete the entire project. The design and environmental clearances are moving forward at this time. Staff recommends that this project receive the highest priority by the Council for the use of funds in 1992/93. Prior to the proposed public hearing date of March 18, 1992, an important aspect of the affordable housing appropriations will be resolved. The success of Cabrillo Economic Development Corporation's ("CEDC") effort to procure land in Moorpark for the development of new affordable housing units can be evaluated based on a current offer they have made for a piece of property. This is the second time that CEDC has proposed to participate in land acquisition since the agreement was executed in 1990. The agreement will expire on January 24, 1992, and the City will consider whether or not to extend the agreement based on several factors including; the availability of other resources to support an acquisition, (that could result form the Affordable Housing Act, e.g., HOME Funds), the success of the program thus far, and the feasibility of the current proposed acquisition. By no later than September of 1993, the Boys and Girls Club will have repaid the City for its loan of $100,000. These funds, combined with program income payments made on the second trust deed generated by the sale of homes in the Small Cities CDBG Villa Campesina project, will add to the existing pool of resources. By this time, it is estimated that the available funds will be much greater than they are currently. Public Services Many proposals were received by the City in 1991 from local and county -wide public service agencies. Last year, the 15% allotment ($29,187) for this use was divided among 7 different agencies serving the seniors, homeless, illiterate and the various needs of the low and moderate income population. The continuation of existing programs for 1993 will absorb close to all of the 4 CDBG RFP Request December 27, 1991 estimated 15% funding cap. Staff recommends that the Council consider the use of the 15% allotment for currently funded public services based the performance of past programs, and proposals submitted for new services. Current performances are stated, (where information has been provided to the City from the sub - recipient), in Attachment "C." Administration Since 1989, the City has approved the expenditure of CDBG for administrative purposes. This amount has ranged from between $19,070 to $21,620, and accounts for approximately half of the salary and benefits of the Management Analyst assigned to Administrative Services. RECOMMENDATION That the City Council authorize staff to request proposals for the use of CDBG funds for the upcoming 1993 appropriations, consistent with this report and pursuant to the following schedule: Request For Proposals 1/10/92 to 2/27/92 Staff to Review Proposals 3/1/92 to 3/13/92 Public Hearing, Receive Public Testimony 3/18/92 Budget and Finance Committee Review 3/19/92 to 3/30/92 Final Appropriations 4/1/92 Proposals Due to County 4/10/92 Attachments: A) Five Year Overview of Past Appropriations B) Project Status- Fiscal Summary C) Project Status- Narrative 5 ATTACHMENT A Overview of Past Appropriations CATEGORICAL Program 1986/87 1987/88 1988189 1989/90 1990/91 1991 /92 TOTAL PERCENT OF FUNDS DISTRIBUTION OF FUNDS Administration 0 0 19070 19810 19010 21620 79510 8.50% 8.50% Public Improvements 68.50% Virginia Colony Streets 133660 54116 0 0 0 0 187776 20.09% Charles Street 0 0 0 0 53790 81773 135563 14.50% Handicap Ramps 0 0 0 92266 42790 0 135056 14.45% Food Share 0 0 0 0 5000 2000 7000 0.75% Club Acq. 0 0 105266 44734 0 0 150000 16.04% Casa Pacifica 0 0 0 0 25000 0 25000 2.67% Affordable Housing 14.98 % * ** CEDC (Acq.) 0 75000 0 0 0 0 75000 8.02% Aquisition 0 0 100000* 0 0 60000 160000* 6.42 % ** Networking 0 5000 0 0 0 0 5000 0.53% Public Services 8.02% Sr. Nutrition 0 0 0 10000 10000 10500 30500 3.26% Sr. Lifeline 0 0 0 5480 0 0 5480 0.59% Vocational Trng. 0 0 0 6000 0 0 6000 0.64% Adult Literacy 0 0 0 0 8000 5000 13000 1.39% Homeless Omb. 0 0 0 0 500 500 1000 0.11% Legal Services 0 0 0 0 7000 1200 7000 0.75% Senior Equip. 0 0 0 0 0 1987 1987 0.21% Long Term Care Omb. 0 0 0 0 0 2500 2500 0.27% Cath. Charities 0 0 ------------------------------------------------------------------------------ 0 0 0 7500 7500 0.80% Totals 133660 134116 124336 178290 171090 194580 934872 1 1 Loan to Club from grant year 1988/89 of $100,000 to be used for affordable housing acquisition when repaid to the City. ** Net percentage 18.39% when loan repayment from the Club is made available. * ** Gross percentage of 25.67 %, including Club loan repayment. 6 ATTACHMENT B Overview of Past Appropriation Expenditures reflects Expenses Reported through December 10, 1991 Program 1986/87 1987/88 1988/89 1989/90 1990/91 1991 /92 TOTAL EXPENDIT. PERCENT BALANCE REMAINING Administration 0 0 19070 19810 19010 21620 79510 55000 24510 (estimate) Public Improvements Virginia Colony Streets 133660 54116 0 0 0 0 187776 185981 1795 Charles Street 0 0 0 0 53790 81773 135563 25190 110373 Handicap Ramps 0 0 0 92266 42790 0 135056 131488 3568 Food Share 0 0 0 0 5000 2000 7000 5000 2000 Club Acq. 0 0 105266 44734 0 0 150000 150000 0 Casa Pacifica 0 0 0 0 25000 0 25000 0 25000 Affordable Housing -- CEDC (Acq.) 0 75000 0 0 0 0 75000 16453 58547 Aquisition 0 0 100000* 0 0 60000 160000* 0 160000 Networking 0 5000 0 0 0 0 5000 0 5000 Public Services Sr. Nutrition 0 0 0 10000 10000 10500 30500 20893 9607 Sr. Lifeline 0 0 0 5480 0 0 5480 5480 0 Vocational Trng. 0 0 0 6000 0 0 6000 2624 3376 Adult Literacy 0 0 0 0 8000 5000 13000 8850 4150 Homeless Omb. 0 0 0 0 500 500 1000 1000 0 Legal Services 0 0 0 0 7000 1200 7000 2375 4625 Senior Equip. 0 0 0 0 0 1987 1987 0 1987 Long Term Care Omb. 0 0 0 0 0 2500 2500 0 2500 Cath. Charities --------------------------------------------------------------------------------------------------------- 0 0 0 0 0 7500 7500 0 7500 "� Droject Year Totals 133660 134116 105266 158480 152080 160973 783375 555334 424538 54.19% Totals, (Incl. Admin.) 133660 134116 124336 178290 171090 182593 862885 610334 412551 47.81% * Loan to Club from grant year 1988/89 of $100,000 to be used for affordable housing acquisition when repaid to the City. 7 ATTACHMENT C December 27, 1991 CDBG PROGRAM STATUS, December 10, 1991 This narrative describes the City progress with the existing grant appropriations. The fiscal status of each of these programs has been summarized with all other programs for the Council in Attachment "B." Public Services Public services have remained stable in funding but have grown in diversity, beginning in 1989. As a result of these appropriations, many new service programs are sponsored in part or entirely by Moorpark CDBG, including: The third year of support of the Senior Nutrition program, (10 to 18 seniors served daily, Monday through Friday); The second year of support for the Homeless Ombudsman program; The second year of support for the Adult Literacy program, (currently serving 31 students); The initiation of a Vocational Training program, (which ends in January 1992, but will continue to be supported by other funding sources available to the Boys and Girls Club for this purpose, currently serving 36 students); Senior Life Line telephone answering device procurement and placement program (currently 5 of the 10 devices are in use); Legal Services provided for the low and moderate income families in Moorpark, (currently assisting 51 residents); County -wide Long Term Care Ombudsman services, (began in October, 1991); Acquisition of equipment for the Moorpark Senior Citizens Club, and; Support of a case worker aid employee at Catholic Charities in Moorpark, (began in October, 1991). All of these programs are currently providing these services for the community except the Senior Citizen's Club equipment, which will be moving ahead as soon as the agreement has been executed. E3 ATTACHMENT C December 27, 1991 Public Improvements Public improvements (68.50% of project funds), 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. The Boys and Girls Club of Moorpark received a loan of $150,000, (with $50,000 to become a grant in 1993), from the City to help them with the down payment on the Casey Road site gym and tennis courts. The design of Charles Street Improvements used $25,190 of CDBG funds from grant year 1990/91. The benefits of the public improvement projects are felt through- out the community. 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 10% 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. The Boys and Girls Club estimates that it will serve 1/3 of their current membership at the new site; over 300 Moorpark teens. Other improvement projects have progressed as well. Charles Street improvements have been designed using CDBG, and construction is anticipated to begin in the spring of 1992. The Food Share warehouse acquisition closed escrow in October, 1991, and Food Share will be requesting the City's funds for reimbursement of expenses in the near future. The Casa Pacifica facility has experienced some delays in processing, but ground breaking should occur in March, 1992. Affordable Housing The second largest appropriations are for affordable housing, (25.57% including the Club loan repayment, 14.98 % currently). The projects related to this category are moving slowly, but are making progress. Currently, CEDC has placed a bid on the property at 280 Casey Road. Networking recently awarded a loan to the Area Housing Authority for a project near Lake Piru. The City will not be able to use its affordable housing acquisition fund to assist CEDC or another non - profit organization to buy land prior to the termination of the City's agreement with CEDC, January 24, 1992, unless the term of the agreement is extended. As of October 101 1991, CEDC reported that over $16,000 of the $75,000 grant has been used for the search and procurement of land. In the event that the 0 ATTACHMENT C December 27, 1991 City does not extend the CEDC Agreement, the balance remaining can be used for another purpose. Administration 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 20% 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 1992/93. - 10