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Home My WebLink AboutAGENDA REPORT 1990 1107 CC REG ITEM 11HBERNARDO M.PEREZ Mayor SCOTT MONTGOMERY Mayor Pro Tern ELOISE BROWN Councilmember CLINT HARPER, Ph.D. Councilmember PAUL W. LAWRASON, Jr. Councilmember LILLIAN KELLERMAN City Clerk MOORPARK ITEM-L/. & M E M O R A N D 7Z ?ARK, CALIFORNA STEVEN KUENY City Manager CCU cil Meat ng CHERYL J. KANE Of /� X99 City Attorney PAT_r RICHARDS, A.I.C.P. ACTION: (�/ Director of Com Development ELZEIT By City Engineer C JOHN V. GILLESPIE Chief of Police U M RICHARD T. HARE City Treasurer TO: The Honorable City Council FROM: Donald P. Reynolds, Jr., Management Analyst DATE: October 31, 1990 SUBJECT: City Expenditure of Entitlement CDBG Funds, Pursuant to the Department of Housing and Urban Development, (HUD), Requirements The County of Ventura's Entitlement CDBG program has been identified by HUD to be moving too slowly. As a result of this finding, HUD has requested that the Entitlement program expend a stipulated amount of funds by April 1, 1991, in order to catch up to the HUD performance criteria. The City's share of the HUD objective is $445,500 to be expended by this date. Staff is reporting to the Council the status of CDBG projects, and the Possible need to revise City Council approved appropriations so that the City can meet the HUD requirement, and maintain the integrity of City CDBG objectives as well. The County has also informed the City that failure to meet the HUD deadline may result in a reduction of future CDBG appropriations. Three options have been identified by staff: 1) reappropriation of 1986/87 funds allocated for street improvements from Nogales Avenue and Avenida Colonia either to another location, or another use; 2) loan of funds to another agency, 01; 3) pursue a HUD approved short term extension. Background In May of this year, the County notified the City that HUD had demanded a City expenditure of $445,500 by April 1, 1991, and that the City shall submit a plan to meet this goal. A "work -out plan" was submitted by staff to the County on June 14, 1990, which emphasized street improvement expenses which are contingent upon completion of the Ventura County Flood Control District (VCFCD) Happy Camp Drain project. At this time, VCFCD anticipated beginning phase four of the project in September 1990. This schedule would allow the City to complete its pro -iect before April 1, 1991. 7951 MnnmOr4 e.,e.,, �„ . . CDBG Expenditures October 31, 1990 Page 2 Recently, staff learned that instead of beginning the Virginia Colony phase of the flood channel improvements in September, VCFCD would be completing three other phases first, and would begin this phase in June, 1991. Due to the nature of the natural drainage pattern that exists in the Happy Camp drain, the City Engineer recommends_ allowing the phases on the upper elevations to completed prior to working on the box culvert, (which will be located at the lowest elevation of the project) . Staff has sent a letter to VCFCD encouraging them to begin phase four as soon as possible, but they have not yet responded. This information has caused staff to consider alternative means for the City to meet the HUD goal. Status of City CDBG Pro'ects Attachment "A" provides the City Council with a summary of CDBG expenses to date, and projected expenses through April 1, 1991. With the adoption of the "model" sub - recipient agreement on June 22, 1990, staff has successfully executed four agreements, and is very near to completing two others. rt n Other City projects are dependant upon City acceptance of the Joint Powers Agreement between the City and the County for the administration of jointly funded projects. The JPA has been completed by the County, and is currently under consideration by staff. Prior to the 1990/91 appropriations, the City had only funded one project which qualified for a JPA arrangement, which the 1987/88 appropriation of $5,000 to Networking for Housing in w Ventura County. Because the execution and initiation of this o agreement is not entirely under the City's control, staff has p avoided relying on expenditure of these funds to meet the HUD rt deadline. At the bottom of Attachment "A ", staff has summarized the JPA related expenditures, and has excluded the Casa Pacifica " grant. As a construction project, this expenditure is the most unlikely to occur by the deadline of the five programs. The JPA may be executed sometime in November of this year. Past City appropriations have emphasized affordable housing and street improvements and as a result, the above mentioned programs will not be able to meet the HUD goal by themselves. Discussion As presented in Attachment "A," staff projects that $90,730 will be expended by public service programs, JPA programs and the Cabrillo Economic Development Corporation's (CEDC) agreement. This leaves a balance of $344,270 for the City to consider for immediate use as either street improvements or affordable housing. CDBG Expenditures October 31, 1990 Page 3 Staff has identified three options for the City to consider, as summarized here: 1) Intercity Loan Staff has talked to the City of Santa Paula, and they are willing and able to assist the City in expending funds, if the Council chooses to consider an intercity loan. This loan could be re -paid by Santa Paula by subtracting a portion of the annual allotment of CDBG each year until reimbursement is complete; 2) Short Term Extension In light of the Entitlement agencies not meeting the stated objective, staff believes that over the next month, we can work with the County and request an extension from HUD due to the VCFCD delay. 3) Re- appropriate Funds It is possible to hold a public hearing in December and re- appropriate funds from past years to projects that could be completed before April, 1991. Two such projects have been identified. 1) Other City Streets - After consulting with the City Engineer, other City street projects such as Charles Street, can be designed, and initiated in time to meet the stated objective. 2) Land Acquisition - The City could pursue land acquisition with CDBG funds in conjunction with a project being developed by Cabrillo Economic Development Corporation. Currently, escrow for this project is scheduled to close in December, but staff could explore the flexibility of this arrangement and attempt to extend the escrow closing date. Staff will return to the Council on December 5, 1990, and provide an update of the status of City CDBG projects. CDBG Expenditures October 31, 1990 Page 4 Recommendation: That the City Council-direct staff to proceed with a time extension request from HUD, and explore the feasibility of the affordable housing land acquisition options. Attachments: A) Expenditure and Expenditure Projection, Excluding Street Improvements and Affordable Housing Land Acquisition ATTACHMENT A SUMMARY OF CDBG EXPENDITURES The following projects are either in progress or near initiation. CDBG Expense April 1 Proi. to Date — Projected Total Senior Nutrition 10,000 5,000 15,000 Literacy Program 1,000 5,000 6,000 Sen. Life Line 0 5,480 5,480 vocational Training 1,500 3,000 4,500 Legal Services 0 1,750 1,750 CEDC /Affd.Hsq. 17,000 41,000 58,000 Total 90,730 Joint Powers Agreement Potential Expenditures Of the four projects that qualify for this arrangement, all may be ready to incur costs except Casa Pacifica, ($25,000). Food Share Warehouse Acq. 5,000 Networking for Housing / 5,000 Homeless Ombudsman 500 Total 10,500 Total Projected Expenses 101,230 Less HUD Goal 445,500 Balance to be met by Affd. Hsg., or Street Imp. 344,270