HomeMy WebLinkAboutAGENDA REPORT 1992 0205 CC REG ITEM 08RITEM RA
MOORPARK
799 Moorpark Avenue Moorpark, California 93021
M E M O R A N D U M
TO: The Honorable City Council
FROM: Donald P. Reynolds Jr., Management Analyst
DATE: January 30, 1992
(805) 529 -6864
0R ?ARK, CAL GO,RN!A
CiN COU cii Mee" :ng
of 199
ACTION:
SUBJECT: Consider Extension and Revisions to the Community
Development Block Grant, (°CDBG °), Agreement Between the
City and Cabrillo Economic Development Corporation,
( °CEDC °)
The following report will summarize the progress of the CDBG CEDC
affordable housing land acquisition program.
Summary
Staff is recommending that the CDBG agreement between the City and
CEDC be extended for a term of one year past the expiration date of
January 17, 1992, to January 17, 1993. Staff is also recommending
that a revision to the program budget (representing a total grant
of $75,000) be approved by the Council, providing $50,000 to CEDC
for the search and identification of a site in Moorpark to develop
affordable housing, and $25,000 to be used in pre - development costs
once a site is secured.
Background
As part of the 1987 CDBG program appropriations, the City Council
approved a $75,000 grant to CEDC for the search and development of
site in Moorpark to build a new affordable housing units. Of the
appropriations, $25,000 was to budgeted for the identification of
a site, and $50,000 was to be used for pre - development costs
associated with the preliminary steps to design and build
affordable housing.
The execution of the agreement for services was concluded on
November 11, 1990, and the term of the agreement correlates with
the date when the project received HUD environmental approval,
beginning January 18, 1989. CEDC proposed that the project would
require three years to complete, therefore, the end of the
agreement occurred January 17, 1992. On this date, CEDC requested
that the City extend the agreement for one year.
The term
of the agreement
is based on
the date of
the HUD
PAUL W. LAWRASON JR.
BERNARDO M. PEREZ
SCOTT MONTGOMERY
ROY E. TALLEY JR.
JOHN E. WOZNIAK
Mayor
Mayor Pro Tem
Councilmember
Councilmember
Councilmember
environmental clearance, but the clearance related to a project
similar to the Moorpark project was questioned by HUD in August of
1989, (CEDC has a similar program being sponsored by the County of
Ventura CDBG program). At this time, the County recommended to the
City that expenses related to the project be placed on hold until
HUD specified its reasons for questioning the County environmental
clearance and these matters were resolved. The HUD review lasted
nine months, (until May 10, 1990), and during this time, CEDC
continued its efforts in Moorpark because the question by HUD was
related to the County program. As a result, the County refused to
reimburse CEDC for expenses incurred in Moorpark during this
period, ($11,828.32), essentially nullifying one year's work by
CEDC towards this endeavor. The end result was that the original
HUD clearance was reconfirmed, and the project has been allowed to
continue.
One year ago, CEDC joined with a private development firm in order
to build affordable housing units near Fremont Street in Moorpark.
At that time, the CDBG agreement had become site specific and was
moving forward. Since this time however, CEDC has opted to remove
itself from the memorandum of understanding between CEDC and the
developer, causing the CDBG program to step back to the site search
efforts once again.
As of November 30, 1991, CEDC has requested reimbursement for
$30,220.44 of CDBG for the administrative efforts, (not including
the first $11,828.32 reimbursement request dating back to January,
1989). CEDC will no longer be pursuing the reimbursement request
from 1989. Costs incurred between December 1, 1991 and January 17,
1992, have not been requested by CEDC from the City as of the date
of this report.
Discussion
The status of the CEDC agreement was included as part of the agenda
for the Affordable Housing Committee meeting January .27, 1992.
CEDC representatives, Councilmember Talley, Councilmember Perez,
and staff discussed the progress of the CEDC CDBG program thus far.
Based on testimony from CEDC at this meeting, a recommendation to
extend the agreement and revise the budget was received by staff
from the Committee, to be presented to the Council at its next
regular meeting.
CEDC is nearing the site specific status again on two new potential
sites; the property adjacent to Liberty Bell Road across from Villa
Campesina, and a portion of the high school site at Casey Road. In
addition, the potential of development at the Fremont site is still
being assessed.
CEDC is nearing the end of a window of opportunity for State funds
available for affordable housing which closes March 21, 1992. In
order to successfully complete the application for funds, CEDC
needs to a have a commitment from the City to develop affordable
housing.
r-- Extension of this agreement will allow CEDC to continue its efforts
to secure a site and could help them to secure State funds for
development of a project if a site is secured. Adjusting the
budget will provide an additional $19,779.56 for the continuation
of the land search effort, ($50,000 - $30,220.44 already requested
= $19,779.56).
Recommendation
That the City Council authorize the City Manager to sign an
extension of the existing CDBG agreement between the City and CEDC
revising the term to January 17, 1993, and adjust the budget to
accommodate for $50,000 in funds for land search, and $25,000 for
pre - development costs.
February 6, 1992
MOORPARK
799 Moorpark Avenue Moorpa K, California 93021 (805) 529 -6864
Rodney Fernandez
Executive Director
Cabrillo Economic Development Corporation
11011 Azahar St.
Saticoy, CA 93004
RE: Agreement Extension for CDBG Services, Project B3.3, Agreement
Number 90 -68
Dear Rodney:
On February 5, 1992, the City Council authorized the extension of
the agreement between Cabrillo Economic Development Corporation,
( "CEDC"), and the City for 12 months, beginning January 18, 1992,
and lasting until January 17, 1993. Additionally, the budget is to
be modified for the project to provide $50,000 for land search and
$25,000 for pre - development costs.
All amendments for the agreement are to be executed in writing,
therefore, please find attached for your consideration and
execution, two copies of the amendment to the agreement per the
Council's action. The City will complete the date of execution.
If you find these documents to be acceptable, the City will
complete the execution, returning one of the two copies to CEDC for
their records.
The original term of the agreement ;s from January 18, 19891 to
January 17, 1992, and during this term, the scope of work was not
complete. It was also recognized by staff that the land search
budget was in need of modifications to accommodate additional
expenses for this portion of the work.
I will be making a reimbursement request to the County on Monday,
February 10. Please sign the amendments to the agreement and
return them to City Hall at your earliest convenience. If received
by 12:00 P.M. on Monday, February 1C, the City will complete the
current reimbursement request submit -ed by CEDC to the County.
_ N a.-'.SON .R JGHN E. `liOZN1AK SCOT' MO .,.-GOMcZ BERNARDO M PEREZ ROY E_ TALLEY JR.
Ya.s, Mayor Pro Tem Ct.-..:; mber Gounc'Imernt'er
CouncdmemLUr
In the event that you have questions regarding this request plea
feel free to contact me at (805) 529 -6864.
Thank you for your cooperation in this matter.
Sincerely,
Donald P. Reynolds, Jr.
Management Analyst
CC: Steven Kueny, City Manager
Richard Hare, Deputy City Manager
Lillian Kellerman, City Clerk
J. Ann Hewitt, CDBG Principal Analyst
AMENDMENT TO THE 1987/88
CDBG AFFORDABLE HOUSING
SITE IDENTIFICATION AND ACQUISITION AGREEMENT
BETWEEN THE CITY OF MOORPARK AND
CABRILLO ECONOMIC DEVELOPMENT CORPORATION
Whereby, it is in the best interest of the City of Moorpark
and Cabrillo Economic Development Corporation, ( "CEDC"), to enter
into an agreement to use Community Development Block Grant funds to
pay for services related to the search, identification, acquisition
pre- development of land for use in developing affordable housing
units in the City of Moorpark, and;
Whereby within this agreement, Section 7.13, it is clearly
stipulated that amendments must be submitted in writing to both
parties of the agreement, and;
Whereas, On February 5, 1992, the City Council authorized the
City Manager to execute this amendment to extend the agreement, in
conjunction with the authorized agent of the Contractor, CEDC, and;
Whereas on February 5, 1992, the City Council authorized an
amendment to the project budget which divides the total sum of
$75,000 grant as $50,000 for land search and identification, and
$25,000 for pre - development costs;
The following amendment is hereby executed by the City of Moorpark
and CEDC;
Article 1 Tern or Contract
Section 1.01 The term of this agreement is hereby amended
from the original term which reads "effective January 18, 1989, and
will continue to January 17, 1992," to read;
Section 1.01 This agreement will become effective on January
18, 1989, and will continue until '.January 17, 1993, or until
stipulated services have been completed...
The budget of $75,000 for this project will be amended in
Exhibit "A" to the agreement as $50,000 for staff costs for the
identification of a site, and $25,000 for pre - development costs.
Approved and executed on this
City of Moorpark
Steven Kueny
City Manager
day of February, 1992.
Cabrillo Economic Development
Corporation
Rodney Fernandez
Executive Director