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HomeMy WebLinkAboutAGENDA REPORT 1994 0202 CC REG ITEM 08UITEA/IBAL CITY OF MOORPARK AGENDA REPORT TO: The Honorable City Counc,l FROM: Donald P. Reynolds Jr., Administrative Services Manager n-1 DATE: January 27, 1994 SUBJECT: Consider Resolution for the Use of 1994 Community Development Block Grant ( "CDBG") Funds to Address Urgent Health and Safety Needs Related to the January 17 Earthquake The County of Ventura has elected to use the 1994 grant funds, (estimated to be 2.8 million dollars), to address the current health and safety needs resulting from the earthquake. These funds would be used only in the Entitlement jurisdictions which include the County unincorporated area, and the cooperating cities, (Santa Paula, Camarillo, Ojai, Port Hueneme, Fillmore and Moorpark). Attached for the Council's consideration is a resolution which if adopted by the City, would show Moorpark's willingness to participate in projects to address this need. Background In 1991, the City entered into a three year "Cooperative" agreement with the County and the Entitlement cities for the use of CDBG funds. The City and County have a formal commitment which defines how funds will be distributed as established in this agreement. Of the three national objectives for CDBG, the most common for the benefit of low to moderate income persons. The least common is to address an urgent health and safety need in the community. HUD has determined that the earthquake has created an urgent health and safety need in Southern California, and therefore made CDBG available for this use. Discussion The City is considered to be a "sub- recipient" of the CDBG funds to the "Grantee" which is the County of Ventura. The County made a unilateral decision on Tuesday, January 25, to use the 1994 grant funds to address the earthquake damage in the Entitlement jurisdictions. The attached resolution was sent to Moorpark after the County reached this decision, inviting the City to show its willingness to participate. Since Tuesday's public hearing has been completed, the City can no longer influence the County's decision to use funds for this purpose, whether the attached resolution is adopted or not. It is staff's understanding that the funds will not be disbursed based on the existing Cooperative Agreement, but based upon each jurisdiction's urgent health and safety needs which resulted from the earthquake. Staff will be invited to discuss exactly how the funds will be distributed, and asked to submit a description of damage and a replacement cost estimate in the near future. For the City to receive an amount equal to the distribution formula, the City would have to have suffered 7.5 percent of the total damage to the Entitlement area. Considering the estimated property damage in Fillmore of $250 million, and Moorpark's current estimate of $720,000, the City would receive less than $8,400, not counting the damage to other cities and the County. If the City can receive enough funds to justify the use of CDBG to address Moorpark's needs related to the earthquake, there are many potential uses. These include public service assistance to unemployed or displaced persons, commercial and residential rehabilitation, payment for damages not reimbursed by the Federal Emergency Management Administration, demolition, and rehabilitation of public facilities. Property damage should not be the only factor used in determining uses, glue to the program's ability to address social needs. A more det,iiled description is provided in Attachment "B ". Impact to the 1994 CDBG Program HUD and the President have assured Southern California that supplemental funding may be available to replace the 1994 grant funds. The County and cities will have to rely on this funding to continue programs targeted for fiscal year 1994/95. The County recommends that the City send letters of support to the local federal representatives, and they are currently optimistic that these funds will be made available, match the regular grant amount, and be in time for appropriations as planned. Despite the optimism, it is still uncertain if the supplemental funds are received, that the amount will be equal to the anticipated grant amount of 2.8 millon dollars, ($210,038 for Moorpark). It is also uncertain when these funds will become available, and therefore, staff cannot advise the Council at this time, what impact the changes will have on the proposed March hearing for subsequent allocation of funds for 1994/95. There is a risk that the City would not receive =iny or all of its 1994/95 CDBG funds. Staff will be preceding with the survey for First Street to see if this neighborhood qualifies for CDBG programs. Staff mailed this form to HUD on Tuesday, January 11, however, the earthquake has caused a delay in receiving HUD's approval. Staff will also plan for the re- programming of CDBG for affordable housing pre - development costs, (from acquisition costs), but wait until a developer for the proposed affordable housing site is selected. Once the developer has been Selected, staff will work with this company to identify possible uses for the funds, and then be able to recommend that the existing funds be re- appropriated for these uses. By this time, staff should know if a supplemental grant will be forthcoming from HUD to assist with this effort. Recommendation That the Council adopt the attached resolution. Attached- Draft Resolution Detail of Eligible Projects to Address Urgent Health and Safety Needs