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HomeMy WebLinkAboutAGENDA REPORT 1991 0710 CC SPC ITEM 09A ITEMt MOORPARK \„ ,41. ^� 799 Moorpark Avenue Moorpark, California 93021 (805) 529-6864 MOORPARK. CAIJFORNIA City Council Mooing of /!7 199L MEMORANDUM ACTION: A>.A �1 TO: The Honorable City Council /U ' �ry� ��� FROM: Donald P. Reynolds, Jr. , Management Analyst % — DATE: July 1, 1991 SUBJECT: Consider the Reappropriation of Community Development Block Grant (CDBG) Funds from Program Years 1988-91 Staff has learned from the City Attorney and from the County of Ventura that the City's appropriation to the Boys and Girls Club of Moorpark, ( "Club" ) , needs to be modified to match the City's agreement with the Club. Staff presents two options for making this change. Staff's recommendation to the Council is to select an option, and authorize staff to make the appropriate changes to the ' CDBG program. Staff is also requesting that the City make an additional change at this time, in order to move excess funds appropriated for the Removal of Architectural Barriers project, ( "Handicap Ramps" ) , to a project that is currently underway. Backaround The Council appropriated funds to the Club in order to assist them acquire a satellite facility at 280 Casey Road. A portion of the assistance is to be a grant, ($50,000) and a portion is to be a loan, ( $100,000) . The Council appropriated $165,052 for the removal of architectural barriers. The bids received by the City were lower than estimated, and now that the project is almost completed, there is a balance remaining of approximately $33 ,568 . Discussion In working towards implementing the agreement between the City and the Club, the City Attorney advised staff that the Grant portion of assistance could not be secured by a deed of trust. Therefore, the language of the Agreement is currently structured so that the entire assistance is considered a loan until the Club repays the $100 ,000 , upon which the City would then "forgive" the remaining $50,000 , and it would become a grant. The County advised the City that it needs to make a change in the PAUL W. LA'WRASON JR. BERNARDO M. PEREZ SCOTT MONTGOMERY ROY E. TALLEY JR. JOHN E. WOZNIAK Mayor Mayor Pro Tern Councilmember Cooncilmemher Couneilmember CDBG appropriation to be consistent with the Agreement language, and state that it is a loan, as presented in Attachment "A" . This modification requires a public hearing on the matter. This change has to be made prior to the closing of escrow for the property, which is tentatively scheduled for July 15, 1991. Options The City can proceed as advised by the County and implement their request to make the change in the appropriation, or consider the following option. The City currently has $70 ,000 in Gann funds appropriated towards street improvements at Nogales Avenue/Avenida Colonia, to compensate for the portion of the project costs not available from CDBG or other funding sources. The City currently has an unused CDBG balance of approximately $30,000 available for street projects or other eligible objectives (except for public service or administration projects) . The Club's needs for the new facility include assistance for the downpayment, and rehabilitation of the structure. The Club is required to make a downpayment of $100,000. The Club's needs for ' the rehabilitation are in excess of $50 , 000, but the exact amount has not yet been determined, (because the rehabilitation work has not yet been designed) . The Club has previously informed staff that it can use $150, 000 towards a downpayment. Staff is reviewing the two options with the Club. The City may choose an option of granting the Club $50,000 of Gann funds previously appropriated for the Nogales Avenue/Avenida Colonia project and place the $50,000 of CDBG in the street appropriation as an exchange. Adding the $30,000 that remain from the Handicap Ramp project, there would be an excess of approximately $10,000 , which could be applied to the Charles Street improvements. The remaining balance of Gann funds appropriated to the Nogales Avenue/Avenida Colonia project of $20,000 could also be added to the original appropriation for Charles Street improvements, or used elsewhere. Construction of Phase II at Nogales Avenue/Avenida Colonia is scheduled to begin July 1 , 1991 . The original Club grant funds could be quickly used by this project, if the Council selects this option. Attachment "B" reflects staff's proposed change, and Attachment "C" provides a summary of the current proposed Gann expenditures for FY '91/92 . The adjustments that would have to be made in order to adapt to this change include the following; modify the Club/City Agreement, and modify existing proposals from the City to the County. The environmental clearance for the Nogales Avenue/Avenida Colonia project includes the proposed grant years, but staff needs to complete the environmental clearance for Charles Street construction. Recommendation That the City Council; 1) Select an option as presented by staff and reappropriate the Grant portion of Club Assistance which includes $5,266 of CDBG program year 1988/89 and $44 ,736 of CDBG program year 1989/90 for; A) Redesignation as loan to the Club with conversion to a grant upon repayment of $100,000; or B) Reappropriate for use on street projects on Nogales Avenue/Avenida Colonia and Charles Street with an accompanying grant of $50,000 from Gann Funds currently appropriated for street improvements. 2) Reappropriate $30,000 from CDBG program year 1990/91 to City street improvement projects. Attachments A) County Letter Requesting a Reappropriation B) Staff Option to the Reappropriation Request Addressed in Attachment A C) Gann Expenditure Summary for FY '91/92 • 3 ATTACHMENT A �. CHIEF ADMINISTRATIVE OFFICE cOUflti of A�u s r Chief Administrative Officer Robert C..Hirtensteiner Assistant Chief Administrative Officer June 17 , 1991 Donald P. Reynolds, Jr. Management Analyst City of Moorpark 799 Moorpark Avenue Moorpark, CA 93021 Dear Don: Re: Boys and Girls Club Acquisition Need for Public Hearing As we discussed on the phone today, since the City has entered into' an agreement for a $150, 000 loan with the Boys and Girls Club, it will be necessary to hold a public hearing to allow for the amendment of the Final Statement. In the first public hearing allocating funds to this project, the public was informed that the City would be granting $50, 000 and loaning $100, 000. The upcoming hearing should clarify that the project is funded with loan funds only, but that $50, 000 will be forgiven upon payment of the $106, 000. This hearing should take place prior to the close of escrow, and must include the normal public noticing of 10 days. Sincerely, MARTY SHAW-HALLOWAY MANAGER, SPECIAL PROJECTS & PROGRAMS UNIT 1Z4L M44.4 J. Ann Hewitt, Ph.D. Principal Administrative Analyst mrpk0617 .cdb Half of Acrninpstratuon L «1:-� S00 South Victoria Avg-nue, Ventura. CA °3009 (805) 6==-2680 FAX (805) 654-5106 r 00 In 0 CO In O 0 0 0 o O S.• ^-1 0 o In o o In Q o ill Mr t• m CI P-I 0 . < 0. F O 0 O 0 0 '.0 Y O 0 ul 0 0 In .-1 0 0 {0 C1 0 0 In N O In ti In M i to* V E O O 0 0 0 0 0 G 0 0 0 0 0 0 a C in to r- N 1.i CO 0. 0 O 0 0 0 0 0 N 0 0 0 C O CO 0 C) 0 0 0 LI C I+ In N C .-I V 0 .. .. .. .. .. .. .. .. .. .. .. .. .. .. CD CO O O 0 0 0 0 CO Q) 0 0 01 V 0 0 CV N .--I Cr 0 .o-I n $, 0 0 LI 01 D. OO O 0 0 0 al 0 y N N C .--I r I-- CP F. Ol .. 4 0 'J' - V O O •.=p V' .0 0 - 0 2 co M 0 72 i 0 N t` 0 0 et • O• z. v ti 2m a 4. 2 0 @ 10 0 0 0 0 en O O u 1� N 0 C = O cr O) en C) O .--I op L J = m h. 0 c C 0 00 O 0 ' co VD C 'O V O N N Ca N8. CT 0 0 1.0 LO 00 = o e s. c. S c O O s O O O vp CV CV i1 a+ 0 0 0 `I0 0• = m 0 0 0. 1•. m 0. o co T V y •• •• .. .. .. .. .. .. .. .. .. .. .. .. .. 0: a1 I Ne .O-' ''4 14 1 4.) ^e. o a. N I E I/1 04 ttl _I O I y O O. C V I m CO G O 11 O N a z rp= = 0 N I CO 8 co CD VI CD I 0 w d O — .y MMC w •o ea I-. I v N p - GCNIL C 0. 0 V = = 0 IL ATTACHMENT "C" CURRENT BUDGETED APPROPRIATIONS FOR THE GANN FUND, (51) Dept. Line Item Project Amount 117 629 500 631 Chamber contract 9000 641 Youth Services 40000 906 1/2 Emerg. Generator 11500 121 641 Professional Services 150000 142 903 Walnut Street Curbs/Gutters 75000 Nogales/Colonia Imps. 70000 - as mentioned in Charles Street Imps. 55000 staff report 147 903 Arroyo Vista Community Park 100000 149 903 Community Center Imps. 150000 906 1/2 of Emerg. Generator 11500 TOTAL 672500