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HomeMy WebLinkAboutAGENDA REPORT 1992 0304 CC REG ITEM 08MI LA �i i 7 5' 7 - 7 J 8 M MOORPARK ITEM 799 Moorpark Avenue Moorpark, California 93021 (805) 529- 6�4-., TO: The Honorable City Council FROM: Donald P. Reynolds Jr., Management DATE: February 27, 1992 • Analyst T � SUBJECT: Consider Reappropriation of Unobligated Community Development Block Grant ("CDBG ") Program Funds Summary The following report requests that the City Council schedule a second public hearing in conjunction with the 1992/93 CDBG hearing for the reappropriation of surplus grant funds. Staff is also asking the Council to consider an appropriation of these funds to a similar use as the original appropriations. Background On July 10, 1991, the City Council took action to reappropriate $30,000 from the Removal of Architectural Barriers Program, (handicap ramp project), and apply it to the Charles Street improvements. These funds were not expended for the handicap ramp project since the cost was less than originally estimated. A balance of $3,568 was available for any costs associated with the final completion. The City has now accepted the handicap ramp improvements. A balance of $3,568 remains and can be designated for another project. An amount of $187,776 had been appropriated for the Virginia Colony street improvement project, which was accepted by the City in October, 1991. These funds were split in the grant proposal between engineering and inspection, ($60,000), and for costs related to the actual improvements ($127,776). The final engineering and inspection costs were not known until after project completion. A balance of $1,675 was remaining from the allocated costs for engineering and inspection. As of this date, there is a combined unobligated balance of $5,243 available from both the handicap ramp project and the Virginia Colony improvements. These funds need to be reappropriated by the Council to new programs so that they can be expended in a timely fashion, per HUD requirements. Staff is currently working with the Boys and Girls Club of Moorpark to conclude the final reports for the Vocational Training program which ended City /CDBG sponsorship on December 31, 1991. It is PAUL W. LiWRASON JR. BERNARDO M. PEREZ SCOTT MONTGOMERY ROY E. TALLEY JR. JOHN E. WOZNIAK .Awn, v,., T.,,, Councilm -mber Councilmember Councilmember possible that some of the original $6,000 appropriation of the 1988/89 grant year may not have been expended by the Club, ( the Club had expended $2,654 after 6 months of the 12 month agreement). Extension of the agreement is not possible at this time due to restrictions applied by HUD relating to retroactive changes. Discussion The Council can reappropriate the surplus CDBG funds to any program, (new or existing), as long as it is not for administration. A public service reappropriation would only be possible if there is a balance of Vocational Training monies remaining after final expenses are reported to the City. Staff hopes to complete the final paperwork for the program within the next week. It is estimated that this balance will not exceed $1,000. These funds could be appropriated by the Council to a public service or to other CDBG programs. Public Improvements Because the City had originally placed mentioned above into an appropriation for because the City has already initiated staff suggests that the Council consider existing Charles Street program. the 1987 and 1990 funds public improvements, and work on Charles Street, adding these funds to the Currently, there are two separate appropriations totalling $135,563 for Charles Street improvements: $53,790 from grant year 1990/91, and; $81,773 from grant year 1991/92. Grant year 1990/91 has been relied upon for design costs thus far, leaving a balance of $14,240.30, (expenditures of $39,549.70). Currently, the entire $81,773 from 1991/92 has been appropriated for construction costs only. The total amount remaining for construction including both grant appropriations is currently $96,013.30. Adding the recommended $5,243 would bring the total to $101,256.30. Funds from the upcoming grant year (1992/93) may be available for this project as well, but this is contingent upon the Council's determination, the timing of the project and the County's ability to reach agreement with HUD in July, (last year funds became available in July, but were not available until September in the prior year). CDBG regulations will be applicable to this project regardless of the quantity of CDBG resources used, therefore, it is most efficient to use as much CDBG resources as possible. Other City funds designated for street improvements can be used to address a greater variety of projects without the unnecessary obligation of following the stricter federal expenditure regulations. Gas Tax and Gann monies are available to a limited extent to supplement the CDBG funds for this project. This information has been presented in order to allow the Council to consider where to reappropriate the surplus funds which could be accomplished at the same hearing as the 1992/93 grant year, March 18th or 25th, 1992. At this time, staff is only requesting that the Council schedule this hearing in conjunction with the 1992/93 grant appropriations. Recommendation That the City Council authorize staff to schedule a public hearing on March 18 or March 25, 1992, for the purpose of re- appropriating surplus funds from CDBG program years 1987/88, 1990/91 and 1988/89, (if the 1988/89 funds are available).