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
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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