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Home My WebLink AboutAGENDA REPORT 1994 1005 CC REG ITEM 09Cr C4C C';', ITEM yC .CT;ON: City of Moorpark City Council Agenda Report TO: The Honorable City Council FROM: Donald P. Reynolds Jr., Administrative Services Manager DATE: September 23, 1994 SUBJECT: Consider the Reallocation of CDBG from Grant Years 1987, 1992 and 1993, totalling $45,784 The following report recommends that the City Council reappropriate inactive CDBG monies to the First Street construction project. A summary of the unobligated CDBG funds is presented in Attachment "A. 11 Background The City has used CDBG to focus on the primary objective established by Congress for the CDBG program; to benefit low income persons. In doing so, its primary projects have been in the area of housing, infrastructure improvements and public services. Status of Inactive CDBG Appropriations Certain past appropriations are currently inactive and include; monies set aside for administrative costs, surplus funds available from the Charles Street Phase II improvement project, and the balance of funds available from the contract with Cabrillo Economic Development Corporation, (CEDC), to locate land for an affordable housing project. Although CEDC had entered into several negotiations with property owners between 1987 and 1994 for the purchase of land for affordable housing it has not been successful in acquiring a suitable site. By 1993, CEDC had used all of its administrative dollars available for site search, ($50,000 of a $75,000 contract), plus $3,540 of hard costs for designs applicable to specific land uses. The remaining balance of $21,460 is currently idle. After being awarded the contract to develop a proposal for the Redevelopment Agency, CEDC sent the letter provided in Attachment "B" requesting that the balance of funds be used for the Villa Campesina Park improvement. The Charles Street Phase II project was originally allocated $233,155. This project was completed earlier this year, leaving a balance of funds available in the amount of $3,053. The total amount of administrative monies set aside since 1988, including contributions to the fair housing program, is $129,440, ($123,970 for staff expenses and $5,470 for fair housing). On April 4, 1994, staff reported to Council that $16,000 of these funds would remain unobligated after the 1994/95 budget was adopted. 00213 During the appropriation of the 1994/95 CDBG monies, the fair housing contribution of $1,600 was set aside from new grant monies and increased staff's surplus estimate of administrative funds from $16,000, to $17,600. The actual year -end expenditures for FY 1993/94 is $3,671 less than staff estimated in April. Adding this amount to the $17,600 already available, brings the total amount of unobligated administrative dollars to $21,271, (Attachment "C" describes the status of the administrative dollars). Discussion The City has unobligated CDBG available totalling $45,784 from three past appropriations as described above. These funds can be appropriated for any CDBG national objective, but can't be used for public service activities because past allocations have already reached the HUD expenditure cap. Moving the unobligated funds to an active project assures that the funds will be spent in a timely fashion per HUD requirements. First Street, estimated to cost $500,000, is the only active CDBG project which can meet all of the eligibility requirements and expend all surplus funds in a timely manner. The current CDBG contribution is $277,747, and adding the surplus funds would increase it to $323,531, (as summarized in Attachment "A"). CEDC Recommendation CEDC has recommended using the surplus funds for Villa campesina Park. This project has not been approved by HUD and would have eligibility problems because as a public park, it would not exclusively serve low income persons. This is similar to concerns raised by HUD regarding the eligibility of past CDBG projects that would be of benefit to all of the residents of Moorpark, (e.g., the Boys and Girls Club). Therefore, this project is not recommended by staff. Recommendation That the City Council reappropriate CDBG as follows: 1) Move $21,271 of the 1992 Administrative (ID # G3.9) funds (currently held in reserve) to First Street Improvements, 18.4.180.903; 2) Move $21,460 from 1987 Affordable Housing Land Search, (ID # B3.3), (currently held in reserve) to First Street Improvements, 18.4.180.903, and; 3) Move $3,053 from 1993 Charles Street appropriations (ID # H3.2), to First Street Improvements, 18.4.180.903. Attachments: A) Summary of Unobligated CDBG Monies B) Letter from CEDC C) Summary of CDBG Administrative Monies 00214 ATTACHMENT "A" PROPOSED CDBG BUDGET FOR THE CONSTRUCTION OF FIRST STREET CURRENT STATUS OF THE CDBG BUDGET FOR FIRST STREET APRIL 1994 CDBG APPROPRIATIONS RE- APPROPRIATED TO GRANT YEAR FROM FIRST STREET 1991 AFFORDABLE HOUSING 60000 1992 AFFORDABLE HOUSING 25000 1994 N/A 192747 277747 STATUS OF UNOBLIGATED CDBG FUNDS The following informs tion summarizes the status of CDBG monies which are either un- obligated, or will be in the near future. original Total Unobligated Project Budget Cost Balance Charles Street Phase II 233155 230102 3053 CEDC Affd. Hsg. Site Search 75000 53540 21460 Administration /Fair Housing 129440 108169 21271 437595 391811 45784 TOTAL AMOUNT THAT COULD BE USED FOR FIRST STREET O O 1V C11 323531 ,4TTr"t Chi T 4P Cabrillo Economic Development Corporation I'M 11011 Azahar Street. Saticoy, California 93004 (805) 659 -3791 Fax (805) 659 -3195 BOARD OF DIRECTORS May 5, 1994 RECEIVED ERNIE MORALES President MAY — 6 94 Former Maya of the redevelopment agency in the design of the Gisler Fields project. Cabrillo Crty of Fillnnore hopes to develop the housing portion of the site. KENNETH R. MERIDETH Mr Donald Reynolds, Jr. CITY of MOORPAR Vice President Soaroa, Sandall. Administrative Services Manager g Bernsochi d Petrovich CITY OF MOORPARK DAVID J. SABEDRA Vice Ventura °"' 799 Moorpark Avenue P ra Co County National Bank Moorpark, CA 93021 OSCAR GONZALEZ Treasurer England, Whitfield, Schroeder 6 Tredway BARBARA MACRI-0owiz Dear Don: Secretary Channel Counues Legal Services Association I wanted to memorialize our conversation regarding the status of the CDBG JUA IA ARROYO contract by and between the City and the CEDC. There were no Villa Campenina Corporation - Oxnard expenditures for the first quarter of CY94 on the CDBG "hard costs" Grew Ba° kfJO contract. There is presently $21,400 left in the CEDC "hard costs" Western contract. MARC CHARNEY Nordman, Cormany, Haw d Compton Y�;EC ;r,� a S The CEDC is, as I know you are aware, involved by contract with the City's Corporation - Moorpark redevelopment agency in the design of the Gisler Fields project. Cabrillo RICHARD FRANCIS Anomey hopes to develop the housing portion of the site. JUAN GOMEZ Driffill Park. This would assist to close the funding gap along with the other Low- Inoorne Community R.pr.e.M.t mr The CEDC is also presently completing the design of the park at Villa BARBARA A. JOURNET Campesina. At this writing neither of these projects involve CDBG funding. Community Representatrve R��der�i� It appears that there will be a gap in the financing of the Villa Campesina GRACIELA OUINONES Park. The park was originally conceived as minimalist in design, and we Villa Campesina 1 in - Swm `alley expected the residents would build the lion's share. The design parameters FATHER MIKE WALSH Rancho Seeps Workers have expanded and we are uncertain to what extent the material will be Corporation Associatipn donated and the residents will be able to assist in its installation. Corporation ADVISORY BOARD Don, can we continue our conversation exploring the use of the CDBG RON Hertel Co st u`„ award for the construction of the park. I believe there to be ample AL ZAPANTA precedent for using CDBG funding in this way, most recently in Oxnard's Atlantic Richfield company Driffill Park. This would assist to close the funding gap along with the other help the City has extended to us. I look forward to talking to you more about STAFF this. RODNEY E.FERNANDEZ Executive Director KAREN FLOCK Senior Project Manager JESSE R.ORNELAS Project Manager Very truly yours, RALPH LIPPMAN Protect Manager MIKE CARROLL R.M.E. Construction Manager JUDI VINCENT Control'" Ralph Lippman BERTHA GARCIA Executive Secretary BRENDA McILLWAIN Bookkeeper CYNTHIA ZABEL PATRICLA GUZMAN Receptionist ON A Unrted Way Agency Equal Housing Opportunity A oornmunrty °cancmc devaloprnery corporation serving Ventura County 00216 ATTACHMENT C STATUS OF ADMINISTRATIVE FUNDS ADMINISTRATION FAIR HOUSING TOTAL SUMMARY TOTAL ALLOCATION 123970 5470 129440 129440 TOTAL EXPENDITURES THROUGH FY 1993/94 82134 3870 86004 FY 1994/95 BUDGET 20565 1600 22165 TOTAL EXPENSES /OBLIGATIONS 102699 5470 108169 108169 UNOBLIGATED BALANCE 21271 l� CITY OF MOORPARK INDEX FOR Status Report on 1993/94 Objectives City Manager 1 City Attorney . 18 City Clerk . 20 Administrative Services. . 26 Public Safety . 40 Community Development . 43 Public Works . 52 City Engineer . 61 Community Services . 70 c: \wpwin \citymgr \object94.ndx i