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HomeMy WebLinkAboutAGENDA REPORT 1990 0103 CC REG ITEM 11EMOORPARK ITEM • PAUL W. LAWRASON, Jr. Mayor SCOTT MONTGOMERY Mayor Pro Tern ELOISE BROWN Councilmember CLINT HARPER, Ph.D. Councilmember BERNARDO M. PEREZ Councilmember LILLIAN KELLERMAN City Clerk TO: FROM: DATE: SUBJECT: MEMORANDUM The Honorable City Council Donald P. Reynolds, .Jr., Management December 28, 1989 STEVEN KUENY City Manager CHERYL J. KANE City Attorney PATRICK RICHARDS, A.I.C.P. Director of Community Development R. DENNIS DELZEIT City Engineer JOHN V. GILLESPIE Chief of Police RICHARD T. HARE City Treasurer Analystz)��. 1990/91 Community De'velopment BlocIr. Grant, (("DEG), Funding Priorities Pursuant to City Council action on June 21, 1989, staff is reporting 'to the City Council on the status of current CD.'BG projects in order to initiate, discussion for development <xi" f und i ng priorities for the 1990"/,91 fundinqj cycla, (Attachment A i. s the adcopte(l schedule for_- r e f e r e i i c e, ) . Typically, the Department of Housing and Urban Developnient. appropriates CDBG funds to t-he County of Ventura in late January of each year. The Couuty, as the grantee under the (jrban County, (Entitlement;), Program, then form-ulcates the appropriation for each partici, ating City, (sub -grantees), based on population, and requests grant, propos,-als by March of the same year. B e c a u, f", C-A of the public h. ea r i n g requirements and close scheduling between appropriations and proposal submission, the Cit-y is attempting to start 'eEirli-er and address the fu.tiding policies in a raore- forma). and organized manner. Prior to reporting to the City Counr,.J.1, staft- has been directee.-I to meet with the Biic1g4'.t and Finance Committee in order to review the pa:�A­, performance of p.rograms which received funding in previous years during the first week of January. Due to the scheelaile, it was n.:)t poss-ible to coordinate such ;a meeting, staff is reporting directly to the Council in orde�r to stay in line with the established procedi.ires. St.aff will coritinue to attempt ho meet with the (7,,ornmittee pi-.-itor. to the Jani.i-ary 3, 1.990, Ci[-I.y Council meeting. 799 Moorpark Avenue Moorpark, California 93021 (805) 529-6864 Background The following will briefly touch on the H.U.D. policies and requirements, and review the progress of programs which have been funded since the City's involvement with the Urban County, (Entitlement), CDBG program in 1986. As funds are appropriated to the County of Ventura, the Chief Administrative Office divides the appropriation between the unincorporated areas, and the cities of Camarillo, Santa Paula, Port Hueneme, Fillmore, Ojai, and Moorpark. Last year, Moorpark was third in population to Santa Paula and Camarillo, receiving an appropriation of $178,290, the largest appropriation since 1986. This year, staff expects that the appropriation will be at least the same amount or higher because the City's population now exceeds Santa Paula, but this is ultimately determined by the Federal appropriation to the County. At the present time, this report assumes that the CDBG appropriation will be the same as last year. Generally, the City has flexibility in developing proposals for the use of CDBG funds. The County determines what portion of the grant can be used for the administration of the grant, typically 10%, but these funds do not have to be used for this purpose. If the City decides to use funds for Public Services, there is a limit of fifteen percent of the entire City appropriation for this purpose. Specifically, the City must use CDBG funds to address one or more of the three national objectives as follows: 1), to benefit low and moderate income persons; 2), to eliminate slum and blighted conditions, and: 3), to address health. and safety needs posed by an urgent situation. The emphasis of the program is for the benefit of low and moderate income persons, H.U.D. specifies that grantees/sub-grantees must use 65% of their funds for this purpose. Under this requirement, public service programs have been targeted for special clientele groups such as seniors and low income persons. Typically, CDBG funds are used for improving the lives of those persons in the most need of assistance as determined at the local level. Over the past four years, the City has chosen to use CDBG funds primarily for the purpose of developing low income housing, and improving low income neighborhoods. Last year was the first year the City Council appropriated funds for public service needs. _2 0 Re -Cap of Previous Appropriations The City has appropriated funds for the following programs as follows: Program 1986/87 .1987 88 1988 89 1989 90 Total Admin. 0 0 19,070 19,810 38,880 Public Imp. 133,660 54,11-6 30,266 20,000 2.38,042 Aff.Housing CEDC 0 75,000 0 0 Netwrk. 0 5,000 0 0 City 0 0 75,000 117,000 Sub Total 272,000 Public Svc. Snr.Nutr. 0 0 0 10,000 Snr.Life Ln. 0 0 0 5,480 Vocation. Tr. 0 0 0 6,000 Sub Total 21,480 Grand Total 133,660 136,116 124,336 178,290 570,402 A summary of the above table can be presented as the following percentages; 48% for affordable housing, 42% for public improvements, 7% for administration and 3% for public services. Status of Past Ar>DroDriations Because the CDBG program underwent major modifications in deleting the Senior Center appropriations, and also because the nature of a public service program under CDBG is new to the City, there is not much progress to report at this time. Affordable Housing: Three approaches have been recommended by the Council in an attempt to address the affordable housing needs of the community. Two programs, one with Cabrillo Economic Development Corporation, (CEDC), and a second with Networking have not progressed due to technical problems in implementing contract for services. -3- The Networking program, (Networking for Housing in Ventura County), is a County wide pool of funds to be used with nonprofit and private development firms to lesson the pre -development costs for site improvements. The City's funding of this program is on hold until a proposed joint powers agreement can be arranged between the County and the City. A draft agreement is currently being reviewed by staff. The City can then determine if it wants to participate in this manner in providing the currently appropriated funds to Networking. The CEDC program is intended to fund costs related to locating and acquiring a new site for affordable units to be built. Last year, H.U.D. raised concerns regarding this proposal in relation to the environmental documentation, whereby it was tentatively determined that the scope of work under this proposal is considered to be "administration". In the event that this determination is final from H.U.D., then the City does not have adequate administrative funds to appropriate for it. Recently, the County, (under contract with CEDC for the same proposal), was able to resolve this concern, and keep the project outside of the administrative category. Staff has completed a draft agreement which was on hold until further notice from the County, and the County has not yet formally advised the City of H.U.D.'s determination. Based on informal communications, staff is forwarding the draft contract to the County and City Attorney to review. As a result of these concerns, no funds have been allocated yet. City programs are to include a housing rehabilitation program, an equity share program for first time home buyers, and funds set aside to assist in land acquisition. These programs were all approved in 1989, and will require additional time to initiate. Staff will be pursuing a general policy for the Council to consider so that the affordable housing programs can be implemented in an efficient and effective manner. Public Improvements: Public improvements consist of street improvements for the Virginia Colony neighborhood and possibly on Charles Street. In Virginia Colony the City will make the necessary improvements in order to connect Nogales Avenue and Avenida Colonia, then proceed with curbs, gutters and side walks. If there are funds available, the curbs, gutters and sidewalks wil.1 be reconditioned/constructed along Charles Street. As of the date of this report, staff has received confirmation from the County that the eligibility -4- survey for Virginia Colony was successful in documenting the income stratus of the community as low and moderate, therefore allowing the City to proceed with the project. The design of the project is expected to start in February. There are some environmental concerns relating to archeological discoveries in the area, but these are expected to be easily mitigated. Public Services: The three public services are proceeding despite the fact that no formal agreements have been executed. The Boys and Girls Club Vocational Training program has been successful in recruiting a coordinator, and is currently waiting for the draft agreement to be approved by City Attorney and the County. New public services require an environmental statement to be approved by the County, and this was submitted in November. The Rotary Senior Lifeline program has proceeded in planning for disbursement of lifeline devices, and will be ready to review the draft contract in January. The environmental statement .is pending approval by the County. The Senior Nutrition program received environmental clearance in July of 1981), and the City has proceeded in funding this program,, to be reimbursed once the agreement is complete. As reported by the Ventura County Public Social Services Agency, the program has experienced an increase in clientele since moving to the Senior Center location. Existing public services funded by CDBG must be able to show that the CDBG funds :increased the level of service to community and this criteria is being met by the Nutrition program. The other programs are new to the community, and fulfilled the second H.U.D. criteria for public services because the CDBG funds will be assisting in the establishment of these new programs. In summary, the public service appropriations, except for the Senior Nutrition program, have not had an opportunity to demonstrate their ability to meet program objectives. Staff recommends that the 1990/91 public service appropriation be $12,000 for continuation of the Senior Nutrition program, (anticipating an increase in cost), and that other considerations for public service uses be deferred until -the 1991/92 funding cycle. Administration: Administration has been focussed primarily on resolving changes to past appropriations and playing catch up from past years. Because the Senior Center project was separately funded by three different years, each proposal had to be re -written, and approved by the County Board of Supervisors. Staff has now completed this process, as well as completing the agreements that were on hold for each year between the City and the County. All environmental documentation has been submitted except for the City's housing program, because the precise projects have not been formally established yet. Discussion Prior to the public hearing for appropriation of funds in February or early March, the City Council will need to consider the future of upcoming programs in order to allow for an effective and efficient use of the CDBG funds. As depicted in the re -cap, affordable housing and public improvements have equally divided most of the funds. The City Council has determined that these two concerns receive top priority based on the above mentioned history, therefore, staff is recommending that the City continue to provide funds for affordable housing and public improvements as well the Senior Nutrition Program. Keeping in mind the fact that Redevelopment projects may be initiated in the near future, it will be beneficial .for. the City to use CDBG and Redevelopment funds in a coordinated fashion. Working together, the funds can help in providing a better living and business environment by building or reconstructing public facilities in our older residential and commercial districts. Eventually, CDBG will supplement redevelopment projects, and assure that the community receives the full potential of both funding sources. The City Council may also consider continuing to fund the Senior Nutrition program because it has been successful, and cannot operate without City subsidy. Staff feels confident that with additional publicity and the new kitchen currently under construction, that the program will continue to show an increase in service to the community. -6•- Based on the premise that the Urban County Community Development Block Grant appropriations for the fiscal year 1990/91 will be the same as last year, ($1.78,290), staff is recommending that the City Council make a preliminary determination for City appropriations as follows: 1) $18,290 for Administration; 2) $12,000 for Senior Nutrition; 3) $74,000 for Public Improvements; 4) $74,000 for Affordable Housing Prior to the required public hearing, the City cannot make a final determination on funding appropriations. It's recommended that the Council concur to have the staff's recommendation for funding included in the request for proposals material. Before advertising the availability to submit proposals, the Council should specify criteria for funding and desired objectives to be met. Recommendation: That the City Council direct staff: 1) To publicize the availability of funds , including staff's funding recommendations, and receive requests for proposals from qualified eligible non-profit groups for Affordable Housing and Public Service consistent with the time frame contained in Attachment A; 2) To develop possible uses for the staff proposed $74,000 appropriation for Affordable Housing Programs. Attachment A - June 21, 1989 Adopted Procedural Schedule for CDBG Appropriations MOORPARK, CALIFORNIA City Council Meeting of r19&,�(J ACTION: -�-- a 11.E. Consider Report on Community Development Block Grant Funding for 1990/91. Staff Recommendation: Determine general priorities for allocation of 1990/91 funding and direct staff to process requests for proposals. MOTION: Councilmember Harper moved and Councilmember Brown seconded a motion to approve the Staff recommendation to publicize the availability of funds, including staff's funding recommendations, and receive requests for proposals from qualified eligible non-profit groups for Affordable Housing and Public Service consistent with the time frame contained in Attachment A; and to develop possible uses for the staff proposed $74,000 appropriation for Affordable Housing Programs. After discussion concerning the possible misconception that might be created by publicizing Staff's funding recommendations, City Manager suggested that the advertisement reflect the total CDBG Funds available; the three objectives of the program (to benefit low and moderate income persons; to eliminate slum and blighted conditions; and to address health and safety needs posed by an urgen situation); and that up to 15% of the total funding is available for public services. MOTION AMENDMENT: Councilmember Harper moved and Councilmember Brown seconded an amendment to the motion to incorporate the City Manager's recommendation on the publication of available CDBG funds. The voice vote was unanimous. � `'? + ,'i: "'{ T". �+_ � ,.;F tiL„c T �' ... - .. '. _ - �..,. >� y .f-"a>a; "1 �. ti,r. -r�-C Z •� � L : '�` »'4'�. � . �",' ATTACHMENT "A" Schedule for the CDBG Proposal Process 1) City Council determines general priorities and guidelines for allocation use of current year'sLG.-u.y(' ��t 2) Invite proposals 0 1) Advertisements 2) Flyers 3) Proposal Completion Guidance 4) Public Notice of Staff meeting. 5) Deadline to receive written proposals. 6) Public Staff Meeting 7) Council/Budget/Finance Committee and City Staff review of Proposals 8) City Council Public Hearing 9) Submit Proposals to County DR/ls ATCHMENT.CHRONI First City Council meeting of January. Second week of January. Third week of January Third week of January January 31 First or second week of February Second and third week of February. First Meeting in March End of March