The URL can be used to link to this page

Home My WebLink AboutAGENDA REPORT 1990 1219 CC REG ITEM 08S�_. MOORPARK ITEMBS. PAUL W. LAWRASON JR. K STEVEN KUENY Mayor DORPARK, CALIFORNIA io°�J' � o '?'• City Manager BERNARDO M. PEREZ Mayor Pro Tern city C cll Meeting - %f i - CHERYL J. KANE SCOTT MONTGOMERY �� City Attorney Councilmember ACTION: PATRICK RICHARDS, A.I.C.P. JOHN E. WOZNIAK �� Director of Councilmember `" Community Development LILLIAN KELLERMAN gy r- - -- JOHN F. KNIPE City Clerk City Engineer JOHN V. GILLESPIE Chief of Police RICHARD T. HARE M E M O R A N D U M City Treasurer TO: The Honorable City Council FROM: Donald P. Reynolds, Jr., Management Analyst DATE: December 13, 199c SUBJECT: Consider Status Report of Entitlement Community Development Block Grant (CDBG) Expenditures, Pursuant to HUD April, 1991, Objective At the November 7, 1990, . Counc meet -inq, staff reported to the Council that the City has been requested to attempt to accelerate its expenses of CDBG funds, pursuant to the HUD objective to spend $445,500 by April, 1991. Staff reported to the Council that we would advise the Council as to th,= piogress of CDBG at the December 5, 1990 meeting. Staff inadvert.e:it i -y fa=iled to include this report on that agenda. On November 7, two opt=ions were approved by the Council; that staff pursue an extension to the April deadline, and pursue the potential for affor.da 1c- hou :;inq land acquisition. Due to the uncertainties relatit g to the details of the current affordable housing project being considered by the Council, (BIBO /Cabrillo Economic Development: �oint venture), and the coordination of the City's Virjinaa Colony Street Improvement Project with the County FILo(: :, i ontrol District, staff is recommending that the Council c(nsider an intercity loan to the City of Santa Paula, and continuf t) pur-ue an extension from HUD. Discussion Staff has continued to pursue an <peja.t i ous method for the City to meet the HUD objective, witho.,)t 1 -rf rir f the nature of past CDBG appropriations. It is staff's intention to only c ns:der an option that will allow the City to maximize its flexib_il -i - :y ?.owards meeting the objective, in the event that an extension I riot c :ranted, and that the land acquisition project Tails to ITa 99 Moorpark Avenue Moorpark alifornia 9 X021 _ - (805) 529 -6864 CDBGSTA2 December 13, 1990 Page 2 Rather than shifting funds from past projects, staff proposes that the City actively pursue an ir-itercity loan of CDBG funds to the City of Santa Paula. Staff haE, made preliminary contact with the City of Santa Paula, in an attempt to receive more explicit details as to the nature and timing of their needs for Moorpark CDBG funds (attached) . In October, Santa Paula staff felt that the City could use between $100,000 and $400,000 for the renovation the local Boys and Girls Club facility. Infrastructure projects were also mentioned. Staff will have �iore detailed information for the Council prior to December 15+. The loan may be the best way for the City meet the HUD objective at this time, and staff estimates that this loan could as much as $300,000, depending on the progress of the affordable housing project. It is anticipated tha~ the i.oan would probably be repaid over a two year period. A more accurate estimate of funds available will be known after t:ne bids are received for the street improvements on Avenida Colon.a and Nogales. Progress in this regard, combined with progress on street improvements, will ultimately determine how much C'0BG fun,ws will need to be considered for a loan. Not meeting the HUD objectiv( may result in penalties to the County's Entitlement CDBG recif;ients, and these penalties will be passed to each agency proportionately. Due to the many uncertainties relating to a HUD approved time extension to complete street improvements, and the land acquisition proposal currently before the Council, staff feelL that the most conservative option at this time to actively pursi.re, an intercity loan with the City of Santa Paula. Recommendation That the City Council authorize staff to continue to pursue an extension of the objective from HUD, and to pursue the potential of an intercity loan of CDBG to t e City of Santa Paula. Attachment: Letter to the ci,y .:)f' Santa Paula Requesting Additional Deta:].s Pertaining to an Intercity Loan ATTACfih' "J MOORPARK BERNARDO M. PEREZ Mayor SCOTT MONTGOMERY Mayor Pro Tern ✓,'< ELOISE BROWN Councilmember ^` 1 CLINT HARPER, Ph.D. Councilmember PAUL W. LAWRASON, Jr. Councilmember LILLIAN KELLERMAN City Clerk December 6, 1990 Steve Stuart Building and Safety City of Santa Paula P.O Box 569 Santa Paula, CA 93060 RE: Intercity Transfer /Loan ,f 'DFIG Funds Dear Steve: STEVEN KUENY City Manager CHERYLJ.KANE City Attorney PATRICK RICHARDS, A.I.C.P. Director of Community Development R. DENNIS DELZEIT Cty Engineer JOHN V. GILLESPIE Chief of Police RICHARD T. HARE City Treasurer The City of Moorpark is truly grateful that the possibility of loaning CDBG funds to Santa Fauir may be an option for Moorpark to consider in attempting to meet 'he HUD expenditure objective. As previously mentioned, the C=it,, will exhaust all other options before making a commitment to S.ntu Paula. At this time, I need to conduct a superficial evaluaticn of the feasibility of pursuing a loan to your City, At some point in the near future., Moorpark will have to decide if pursuing City projects will wor -., and if not, if there is still enough time to pursue an inter, ity loan. We need to attempt to identify when we are nearing th:i: crucial point, and whether or not Santa Paula is currently pursuii; spe(;if.ic project that Moorpark CDBG funds could be applied tc,. In drafting this communi(-�it ,r present the following assumptions: 1) A loan is a valid ��ay o sho.4 expenditures to HUD; 2) Santa Paula is inter(' ecf in in intercity CDBG loan from Moorpark; 3)_ Santa Paula has an -r, diat(-!/,- 1ig11o1e use for the funds; not too late f >r Mo)rp<crk; to consider this option in r('laticn to meet_ ; nc t'1 � .�,�.r. objective; 5) Thy 'o�r7ty c1= ��nt�,.i 3 „r 1 ist the two c-ties in a 799 Moorpark Avenue %toorC)a K :'wif �rnia 1 +3021 (805) 529-6864 CDBG Intercity December 6, 19yo Page 2 timely fashion in order to execute a loan agreement; 6) Depending on the amo,.,7t of --he loan, Santa Paula will reimburse Moorpark PL, rsuant to agreed terms, which at this time, are conc,�:t• >d to be in a format of incremental payments spread ovE,r r ore thzin one CDBG program year; 7) That in the event th,:�t the CDBG program is terminated before the loan is repaid to Moorpark, that Santa Paula will not be held l iai fe by 1oorpark for any remaining balance due to the 8) The County of Ventura will not be held liable for any aspect of this propos+ 3 relationship. On Tuesday, November 4, 199U, . mentioned to Ann Hewitt, CDBG Analyst, that the City would to contacting you regarding this matter. Prior to making a commitment to Santa Paula, the City will verify the above mentioned assum;t..c >ns, then receive approval from our Council to pursue this pro ;F -t. Please let me know, to the Les' cf your ability, an approximate deadline for the expiration c this option for the City of Moorpark, (in the event that :_t ,s lot too late already), and the general nature of how these fun would be used. I realize that this information is an estimati r7, but it will provide us with a reference point, just in ca,=c • he ..:y needs to rely on this option. I assure you that no actions on the pant. of the City of Moorpark will take place in regards to n Lnter_city loan, without first contacting the City of Santa ` °at a, and the County of Ventura. Thank for your assistance, and ;lease #eel free to contact me at 529 -6864. Sincerely, Donald P. Reynolds, Jr. Management Analyst CC: Steven Kueny, City Manager Richard Hare, Deputy City Manager Ann Hewitt, Ph.D, County CD1 Anal } "st, (Santa Paula) Melody R,- ito-l. On, County `3 t'.na I�!" t, ( Moorpark)