HomeMy WebLinkAboutAGENDA REPORT 1991 0109 CC REG ITEM 11CPAUL W. LAWRASON JR.
Mayor
BERNARDO M.PEREZ
Mayor Pro Tern
SCOTT MONTGOMERY
Councilmember
JOHN E. WOZNIAK
Councilmember
LILLIAN KELLERMAN
City Clerk
TO:
FROM:
DATE:
SUBJECT:
MOORPARK ireM 11. C.
MOORPARK, CALIFORN
City Co c11 Meofng
of ' C
19S
B)�Za L a L
M E M O R A N D U M
STEVEN KUENY
City Manager
CHERYL J.KANE
City Attorney
PATRICK RICHARDS, A.I.C.P.
Director of
Community Development
JOHN F. KNIPE
City Engineer
JOHN V. GILLESPIE
Chief of Police
RICHARD T. HARE
City Treasurer
The Honorable City Council
Donald P. Reynolds, Jr., Management Analyst's
January 2, 1991
Community Development Block Grant (CDBG) Status
Report for the Development of 1991/92 Funding
Objectives
The following report will summarize past City CDBG appropriations,
review the status of these programs, discuss new regulations
pertinent to the development of 1991/92 CDBG objectives, and
suggest for the Council's consideration, certain objectives for the
upcoming CDBG appropriations. Staff has also analyzed City
expenditures, in order to evaluate progress towards the HUD April
expenditure objective. Staff is recommending that funds continue
to be provided for existing public services, and that the balance
of the grant be applied towards either street improvement projects,
or affordable housing endeavors.
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 20, 1991, in order to
evaluate the proposals and receive public testimony for determining
the uses for the 1992 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 3, 1991. The 1992 funds will most likely be available for
the City's use in September 1991, and have been estimated to be
equal to last year's appropriation of $1.71,000.
BACKGROUND
The City participates in the annual appropriations of grant funds
for CDBG program as part of the Urban County/ Entitlement CDBG,
799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864
CDBG92B
January 2, 1991
Page 2
administered by the County of Ventura, in cooperation with the
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.
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 three programs in 1987 and 1988, to eight programs in
1989, to nine different programs in 1990.
Public services, limited by HUD to no more than 15% of the total
amount of CDBG, have remained stable in funding, but have grown in
diversity, beginning in 1989. As a result of these appropriations,
many new service programs have been created or are being created in
Moorpark for low and moderate income persons, including; the
continuation of the Senior Nutrition program, support for the
Homeless Ombudsman program, the initiation of a vocational training
program, literacy program, senior life line telephone answering
device procurement and placement program, and legal services
project. The status of each of these programs has been summarized
with all other programs for the Council in Attachment "B."
The two main objectives of Moorpark CDBG, street improvements (43%
of project funds) and affordable housing projects (49% of project
funds) , have progressed rapidly over the last year. Currently,
staff is preparing for the use of $236,790 of the grant as a loan
for affordable housing land acquisition, and hopes to utilize the
services of Cabrillo Economic Development Cooperation, (CEDC) as
provided by the 1987 appropriation ($75,000) to meet this
objective. Many different uses of CDBG for affordable housing have
been discussed since 1987, (such as housing rehabilitation, land
acquisition, and equity share programs) but no specific uses have
been identified until recently. The Virginia Colony Street
improvement project will begin construction in February of this
year, and the estimated completion date is June, 1991.
Since 1989, the City has approved the expenditure of CDBG for
administrative purposes. This dollar amount has ranged from
between 19,070 to 19,810, and accounts for approximately half of
the Management Analyst salary and benefits in Administrative
Services.
CDBG92B
January 2, 1991
Page 3
In 1990, the City took advantage of a new proposal from the County
for the administration of jointly funded projects. On December 19,
1990, 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 will
hold its CDBG public hearing on Tuesday, March 19, 1991, 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 1992. Only projects which are funded by the County's
CDBG funds, (and subsequently funded by a participating city) , are
eligible for JPA administration, (last year, if two cities funded
a project the County would create a JPA, and this year, only County
funded projects are eligible).
DISCUSSION
HUD Expenditure Objective
During the last two months, staff has presented the Council with
information regarding the HUD performance criteria, which
stipulates that Moorpark will spend $445,550 by April, 1991. This
objective was the result of a HUD monitoring of the Urban
County/ Entitlement CDBG program in Ventura County which identified
that the program was moving too slow. Staff has focused on three
main variables relative to the City's ability to meet the HUD
objective, including; an extension of the deadline from HUD which
would allow the City to include all of the street improvement
project costs in the expenditure calculations, (including expenses
incurred between May and June of this year for phase two of
Virginia Colony improvements)_, land acquisition through CEDC for
100 affordable rental units, and the potential of an intercity loan
to the City of Santa Paula.
After evaluating the most current information available, it appears
as though the success of the land acquisition project ($236,790),
combined with the progress made in the street improvement project
($165,774 for phase one, $90,354 for phase two) will determine if
a loan is necessary. If land acquisition does come to fruition in
a timely fashion, then no loan will be required. In the event that
a land acquisition project cannot be completed in time, then the
proposed extension from HUD, and the final bid amount for the
Virginia Colony street improvement projects, will determine the
amount of funds which will have to be considered for a loan to the
City of Santa Paula. Staff has initiated a preliminary assessment
of the potential for making a loan of CDBG funds to Santa Paula,
and will request an extension of the objective deadline from
regional HUD representatives.
CDBG92B
January 2, 1991
Page 4
New Regulations
Two regulations are important to the City in consideration of
1991/92 grant appropriations, and they relate to public services
and to affordable housing projects.
Prior to December 14, 1990, it was staff's understanding that when
a public service received CDBG funds for use other than for the
initiation of a new service, that the program would have to
demonstrate that CDBG caused the program to increase its prior
volume of service provided to the community. The County of Ventura
has informed staff that public services do not have to show an
increase in service when funded for consecutive years. This
finding eliminates past concerns of staff relative to the Senior
Nutrition program, and other City funded CDBG services.
The second regulatory change is the adoption of the federal Housing
Act of 1990, which will temporarily make available a wider variety
of eligible CDBG housing projects then was possible in the past.
It is staff's understanding, that while a specific department of
the federal government is being established to administer this
legislation, that CDBG will be able to initiate some of the
objectives. Newly eligible potential projects may include; direct
loans to beneficiaries in the form of equity share or down payment
assistance, lump sum draw down of funds for loan programs, and
other more general types of housing aid. Unfortunately, the County
does not expect to receive formal regulations until June, 1991, and
has been informed that the CDBG program will only be eligible for
these types of uses until 1992, (or for two grant years). After
two years, it is anticipated that a program other than CDBG will
implement the policies of the Act, and subsequent CDBG
appropriations will not be eligible for the above mentioned uses.
CDBG Public Staff Meeting (December 14 1990)
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 14, 1990, (fulfilling HUD's
requirement as it applies to Moorpark) . At this meeting, over
twenty agencies made proposals to staff representing entitlement
program. Attachment "C" is a list of those specific agencies and
representatives who made proposals to the City or are for County-
wide consideration.
Future Considerations
It is staff's understanding that the CDBG program did receive
favorable appropriations in the federal budget for fiscal year
1991/92. Based on past appropriations, staff anticipates that the
CDBG92B
January 2, 1991
Page 5
1992 grant will make available to the City between $160, 000 and
$185,000. Using the same appropriation as last year, ($171,000)
and based on past City objectives, staff presents the following
preliminary considerations for use of this year's grant:
Affordable Housing
Past appropriations have not been targeted at specific projects,
and could potentially spread these funds across many diverse and
expensive objectives. Uncertainty on staff's part, and limited
amount of funds appropriated have caused delay in the City's
ability to use these funds. Even though new regulations make
affordable housing projects more attractive to the City than in the
past, staff recommends that the City develop a specific use for
these funds, before creating any new CDBG appropriations. Past
proposals submitted to the County in general terms, will not be
acceptable in the future because of the new housing regulations
(Housing Act of 1990) which apply to CDBG programs.
By developing a specific objective for CDBG affordable housing
projects, such as identification of specific parcels, (or size of
parcel, or potential locations of a parcel) for acquisition, or the
identification of specific objectives for housing rehabilitation,
the City will be in a better position to expend these funds in a
timely fashion, thus reaching objectives more quickly. The City
does not currently have the legal authority to purchase land and
develop it for housing, but can rely on a non - profit organization
to assist the City in meeting this objective. If the agreed upon
focus for the use of CDBG for an affordable housing project cannot
be initiated within 12 months of the March hearing, then staff will
recommend that the project be- deferred until next year.
Street Improvements
After a preliminary assessment of projected street improvement
costs for the Virginia Colony neighborhood, staff estimates that
between $15,000 and $18,000 will remain available for use on
Charles Street. Charles Street became a CDBG objective as a result
of the 1990 appropriations, to be pursued after Virginia Colony
improvements have been completed. Staff recommends that the
Council consider a significant appropriation of 192 CDBG funds,
between $100,000 and $130,000, for this project. Exactly how much
is needed will not be determined until the project is designed.
Charles Street improvements, whether funded in part or in whole by
CDBG, will have to adhere to all applicable federal regulations,
therefore, it seems to be most efficient to attempt to use all of
the CDBG funds appropriated for street improvements in one
identified eligible neighborhood.
Charles Street is an eligible street because it is part of a Census
CDBG92B
January 2, 1991
Page 6
block group (block 5) which has an average income level which meets
the HUD National Objective. Block group 5 uses the railroad tracks
and Spring Road as its eastern and southern tip, spanning all of
the downtown area following the tracks to Gabbert Road, and North
past Walnut Canyon. Therefore, in addition to Charles Street, High
Street, Wicks Road, Casey Road, N.Highway 23, and Bonnie View are
considered to be some of the eligible project areas within this
block group. Block Group 1 is also an eligible neighborhood, and
begins at Moorpark Avenue, between Los Angeles Avenue and
Poindexter, extending west along the south side of the tracks past
Gabbert Road, to include the Shasta /Sierra Street community.
Public Services
Many proposals were received last year for local and county -wide
public service programs. Last year, the 15% allotment ($25,600)
for this use was divided amongst seniors, homeless, illiterate and
professional legal services for low and moderate income persons.
The continuation of existing programs for 1992 will absorb almost
all of the estimated 15% funding cap. Staff recommends that the
Council consider the use of the 15% allotment for public services
based the performance of past programs, proposals submitted for new
services, and after the City has a better understanding of how much
funding will be available for this purpose.
Recommendation
That the City Council authorize staff to request proposals for the
use of CDBG funds for the upcoming 1992 appropriations, consistent
with this report and pursuant to the following schedule:
Request For Proposals 1/10/91 to 2/27/91
Staff to Review Proposals 3/1/91 to 3/13/91
Public Hearing, Receive
Public Testimony 3/20/91
Budget and Finance Committee
Review 3/20/91 to 3/27/91
Final Appropriations 4/3/91
Attachments: A) Five Year Overview of Past Appropriations
B) Project Status Summary
C) List of Agencies Submitting Testimony to
Staff at the December 14, 1990, Public
Staff Meeting
Attachment A
FIVE YEAR
OVERVIE;9
COMPREHENSIVE
SUMMARY OF
CITY CDBG APPROPRIATIONS
April 9, 1990
PRGRM
1986/87
1987/88
1988/89
1989/90
1990/91
TOTAL
Admin.
0
0
19,070
19,810
19,010
57,890
P.Impr.
Streets
133,660
54,116
30,266
20,000
51,790
CasaPac.
0
0
0
0
25,000
Fd Share
0
0
0
0
5,000
Sub.Tot.
319,832
Aff.Hsng.
CEDC(Acq)
0
75,000
0
0
0
Acquis.
0
0
0
92,000
44,790
Netwkng.
0
5,000
0
0
0
Rehab.
0
0
75,000
25,000
0
Sub.Tot.
316,790
Pub.Services
Sr.Ntr.
0
0
0
10,000
10,000
Sr.Lf.Lne
0
0
0
5,480
0
Vocat.Trg.
0
0
0
6,000
p
Mpk.Lit.
0
0
0
0
8,000
Hmisomb.
0
0
0
0
S00
Legal Svcs.
0
0
0
0
7,000
Sub -Total
46,980
Totals 133,660
134,116
124,336
178,290
171,090
741,492
ATTACHMENT B
CDBG PROJECT SUMMARIES
The following summaries will present the current status of each
program funded by CDBG, the grant years which have funded the
program, and the total amount of funds appropriated.
Administration, ($57,970, Grant years 1988/89, 1989/90, and
1990/91, 8% of program), is not considered by the HUD regulations
to be a "project" expense, and is therefore, not part of this
summary.
Project Funds $683,522 92% of CDBG
AFFORDABLE HOUSING- Aggregate percentage 43%
Total Project Funds- $316,790
General City Affordable Housing 0 Jectives 32%
(Land Acquisition, Housing Rehabilitation)
Total Project Funds- $236,790
Years Funded- 1988/89, 1989/90, 1990/91
Staff has pursued the development of both housing rehabilitation
and land acquisition with CDBG funds over the past year.
Currently, the City is considering the use of all 32% of the CDBG
for land acquisition for the CEDC /Bibo proposal. Although CDBG
alone falls short of the $400,000 request from CEDC, other City
resources could be made available to support the balance. As of
the date of this report, Bibo has not filed this project with the
City's Department of Community Development, but plans to do so in
the near future.
Housing rehabilitation can take many shapes and sizes. Staff has
conducted research of other local programs in order to begin to
define an appropriate program for Moorpark. If the Council still
feels that this project is a desirable program for CDBG, than staff
will report its research to the Council so that this project can
begin its development.
CEDC Affordable Housing Land Search and Development- 10%
Total Project Funds- $75,000
Year Funded- 1987/88
The City and CEDC have entered into agreement for the development
of new housing units in the City, which became effective January
18, 1989. CEDC has been researching several potential parcels in
the City, and proposes that the City pursue the above mentioned
project for development of 100 affordable rental units. The
County, based on technical grounds, refused to reimburse CEDC for
expenses incurred between January 1989 and November 1990
(approximately $25,000). This determination is being challenged by
CEDC, and if no change is made, could result in an 18 month delay
towards meeting this projects' milestones.
Networking for Housing in Ventura County 6%
Total Project funds- $5,000
Year Funded- 1987/88
The JPA will be adopted by the County of Ventura in early February,
1991. This will allow the $5,00o to be transferred from the County
to the agency for use a loans to reduce the development costs of
new affordable housing units (county - wide). Networking is
currently in the process of making loans to development companies
and estimates that two of these projects may begin construction in
the near future, (in Simi Valley and Santa Paula).
PUBLIC IMPROVEMENTS- A re ate Percentage- 43%
Total Project funds- $319,832
Street Improvements 39%
Total Project Funds- $289,832
Years funded: 1986/87, 1987/88, 1988/89, 1989/90, 1990/91
The City's street improvements have been coordinated around
improvement schedules of the County of Ventura Flood Control
District (VCFD), relative to work at Virginia Colony and the lower
Happy Camp storm drain. The City has designed the project in two
phases; phase one to begin in February, separate from VCFD
improvements, and phase two which must be completed after
completion VCFD improvements. Phase two is anticipated to be
completed in June, 1991.
Once completed, the City can evaluate how much CDBG will be
available for Charles Street Improvements. Currently, staff feels
that additional CDBG appropriations will have to be made in order
to complete this project.
Casa Pacifica Youth Connection Area Housing Authority Project- 3.30
Total Project Funds- $25,000
Year Funded- 1990/91
The JPA will be executed by the County of Ventura in February,
1991. This will allow the City's funds to be passed onto the above
mentioned sponsors. Currently, there is an issue relating to water
connections and improvements between the project sponsors and the
local water purveyor, which has to be resolved before CDBG funds
can be used. If this issue is not resolved to the financial
benefit of the program, then this project will require more funds
than originally requested.
Food Share Warehouse Acquisition- .6%
Total Funds- $5,000
Year Funded- 1990/91
Food Share made CDBG proposal to every City and the County in
Ventura County last year in order to raise funds to acquire the
warehouse that they currently lease. This effort was marginally
successful, and therefore, Food Share still needs several hundred
thousand dollars in order to buy the site. It is not clear at this
time if the agency will be able to raise enough funds to purchase
the site.
PUBLIC SERVICES- Aggregate Percentage 6.30
Total Funds- $46,980
Senior Nutrition- 2.7%
Total Funds- $20,000
Years Funded- 1989/90, 1990/91
This program has been very successful, and well managed by the
County Public Social Services Agency. From July, 1991 to September
1991, the program has served 339 home delivered meals and 527 meals
at the Senior Center. Since July, the program is serving 44 new
seniors, and 12 new home deliveries. The program was under budget
for 1989/90, and the balance of these funds have been applied to
1990/91 services.
Senior Lifeline- .7%
Total Funds- $5,480
Year Funded- 1989/90
The proposed administration of this program by the Rotary Club of
Moorpark is currently being reconsidered. Representatives of
Rotary have met with staff and requested that the Club be removed
from any long term responsibilities. As a result, there is no
agreement in place, and no devices have been purchased for
placement into needy homes. This frustration is causing staff to
consider an in -house administration of the program. In the event
that a satisfactory relationship cannot be arranged between Rotary
and the City, staff will report to the Council for the
consideration of a City managed program. It is staff's
understanding that the funds appropriated to purchase ten devices,
may be capable of only purchasing nine devices at this time.
Vocational Training- 8%
Total Funds- $6,000
Year Funded- 1989/90
Staff has attempted many times to meet with the Club and execute
the service agreement, and on Friday, January 4, 1990, the
agreement will be executed. The program was successfully initiated
in July, 1990, without CDBG. Between 85 and 88 teenagers have
participated in training, of these, 16 have been placed into jobs.
Moorpark Literacy Program- 1.1%
Total Funds- $8,000
Year Funded- 1990/91
This program has been serving the public since July, 1990, and has
been very popular in the community. Currently, the program serves
about between 10 and 15 persons who reside in Moorpark. Funds have
been used for the purchase of materials, marketing and to pay for
site coordinator expenses.
Channel Counties Le al Services- .9%
Total Funds- $7,000
Year Funded- 1990/91
This program will open two offices in the City, one downtown, and
the other at the Catholic Charities site on First Street. Staff
has received environmental clearance for the High Street location,
but has been unable to complete the execution of the service
agreement. It is staff's understanding that the First Street site
will be open in January and will not be funded by CDBG, and we hope
that the High Street office will be opening in February, so that
CDBG expenses can begin to be used soon.
Homeless Ombudsman Program- .1%
Total Funds- $500
Year Funded- 1990/91
City funds will be contributed to this program after the JPA is
executed by the County in early February.
ATTACHMENT C
CDBG PUBLIC STAFF MEETING PRESENTATIONS
December 14, 1990
Agencies Applying to the City of Moorpark
Networking for Housing, Lynn Jacobs
The Wellness Community- Valley /Ventura Office, Mr. Lynn
Crockatt
Laubach Literacy of V.C., Steve McMorrow
Food Share, Inc, Jewel Pedi
Clinicas Del Camino Real, Pamela Grothe
Homeless Ombudsman, Nancy Steinhelper
Senior Nutrition, Eleanor Evens
Long Term Care Ombudsman, Bee Ellisman
Area Housing Authority, Carolyn Briggs
CEDC, Karen Flock
Casa Pacifica, Betty Ketron
Commission for Human Concerns, Lee Regan
Palmer Drug & Alcohol Abuse Program, Genie Connel