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Home My WebLink About2006-05-03 STAFF REPORTS 2N ♦�RALM Sp, .y V .n k 9«FOR City Council Staff Report DATE; MAY 3, 2006 CONSENT AGENDA SUBJECT: FISCAL YEAR 2004-05 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) BUDGET AMENDMENT AND AMENDMENT TO THE ANNUAL PLAN FROM: David H. Ready, City Manager BY: Department of Community & Economic Development SUMMARY This budget amendment to the Fiscal Year 2004 — 2005 One-Year Annual Action Plan will allow the allocation of unobligated funds to project-ready Public Facilities & Improvements, as well as Housing Rehabilitation, which will ensure evidence to HUD that, as an Entitlement City, the City is taking steps to comply with HUD's Timely Expenditures Requirement. The unobligated funds represent the remaining unallocated Program largely from reimbursements from the utility undergrounding of the Crossley Tracts which was being held in an anticipation of a need for some funding of the relocation of the Desert Resource Center. RECOMMENDATION: 1) Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) BUDGET FOR FISCAL YEAR 2004-05; AUTHORIZING THE SUBMITTAL OF THE AMENDED ANNUAL PLAN UPDATE TO THE UNITED STATES DEPARTMENT OF HOUSING & URBAN DEVELOPMENT (HUD);" and 2) Authorize the City Manager to execute subrecipient agreements and all necessary documents subject to approval of the City Attorney: PS Public Works & Engineering Department— ADA Pedestrian Safety Improvements $82,000 Mizell Senior Center— HVAC Energy-Efficient Improvements $75,000 Stroke Recovery Center— Energy Conservation Improvements $50,000 PS Community& Economic Development Department— Home Repair Program $12,000 Item No. 2 . N . PS Parks & Recreation Department— James O. Jessie Desert Highland Unity Center Improvement $8,000 STAFF ANALYSIS: This action appropriates $227,000 toward several public facilities projects. Half of the "new" appropriations would merely move allocations approved for the 2006-07 fiscal year — the energy improvements at the Stroke Recovery Center and the Mizell Senior Center, to this fiscal year's activity. That would allow the reprogramming of those funds for the next year. The City had identified in the 2004 - 2005 Annual Plan Updates to HUD that `Public Facilities & Improvements will also be partially funded with program income and the reprogramming of unexpended activity funds, both prior years and current'. HUD has annually approved this methodology for the past six Program Years. The reprogramming of these additional funds will provide evidence to HUD that the City is taking steps to comply with HUD's Timely Expenditures Requirement. This requires that the City's CDBG unspent line-of-credit, including unobligated funds, does not exceed 1.5 tirries its annual grant ($574,718 x 1.5 = $862,077) by the end of this fiscal year. Without reprogramming these funds to projects that are underway or ready to begin with a short completion, the City risks being out of compliance with HUD regulations. The remaining Program Income receipts reported in HUD's Integrated Disbursement Information System (IDIS) and in Unscheduled Capital Projects totals $227,000 which was reimbursements from Crossley Tract Utility Undergrounding and revenue from land rental of CDBG-funded land (Sunrise Norte). A summary of the proposed projects is as follows: ADA Pedestrian Safety Improvements In recent months, Staff has learned of the special needs for the tenant population within the Tahquitz Canyon corridor. There are a number of frail, impaired and wheel- chair bound residents traversing this heavy vehicular corridor, especially at the PS Senior Apartments and Tahquitz Court Apartments. Many of the City's intersection crosswalks are pedestrian unfriendly with limited time for crossing. In consultation with the City's Traffic Management Center and ADA Coordinator, Staff proposes to improve the safety and walkability within several neighborhoods with Accessible Pedestrian Signals (APS) and Countdown Pedestrian Signals. The APS is an integrated push- button audible speech message that provides additional information when the pedestrian button is pushed, and the countdown pedestrian signals take the guessing out of pedestrian crossings by letting the pedestrian know exactly how long they have to cross an intersection by displaying a countdown of the number of seconds the pedestrian has left to cross. Energy-Efficiency Improvements The 2006 — 2007 Annual Action Plan and CDBG Budget Adoption included the Mizell Senior Center and Stroke Recovery Center HVAC Energy-Efficient/Conservation Improvements. However, this equipment is readily available for installation and use prior to the summer months and in time for the County's Cooling Center program, as well as permit the acceleration of program expenditures. If approved, these funds will be available for reprogramming later in the year. 2 Home Repair Program As a result of increasing the marketing of the Home Repair Program, there have been an increased number of new clients. Additional funds are needed to carry the Program to the end of this fiscal without experiencing a break of service or turning-away new clients until next program funds are received. This $12,000, like the Energy-Efficiency Improvements above, would be able to be reprogrammed next year. James O. Jessie DHUC Extra costs in asbestos abatement monitoring/air analysis and increased staff time for Construction Management have occurred with the JOJ Desert Highland Unity Center expansion. This would fund these additional costs. The ADA Pedestrian Safety Improvement is a proposed new project and the three projects are accelerated. Two factors contributed heavily to this year's timeliness problem with HUD; the multi-year funding commitment of the James O. Jessie Desert Highland Unity Center expansion, plus its large size ($528,000) meant that that amount of funds remained on hand at the early April 30 milestone. Combined with the difficulty in obtaining competitive bids on the project due to the active construction market (bidding was extended three times, and even then we only received one bid) delayed the commencement of the construction of the project and the resulting drawdown of funds beyond the June 30 timeless deadline. Additionally, CDBG has received an unprecedented amount of program income over the past three years, first from the sale of the Sunrise Norte lots ($557,000), the sale of the Coyote Run lot to the Community Redevelopment Agency ($165,000), and finally, reimbursements from builders of the cost of wet utility connections paid for by CDBG in the: Crossley Tract. Most of the program income over the past several years has been allocated through the CDBG process by the City Council, but currently there is a balance of$227,000. FISCAL IMPACT: IFinance Director Approval There is no direct fiscal impact to the General Fund. These dollars are the City's allocated federal annual entitlement funds from the U.S. Department of Housing & Urban Development Community Development Block Grant program. JOH S.4FkAYMOND DALE E. COO' , JR. e or of Community Development Community & Economic Development Administrator 7> THOMAS J. P ILSON DAVID H. READY Assistant City Manager— Development Services City Manager ATTACHMENT: 1. Resolution 3 RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) BUDGET FOR FISCAL YEAR 2004 — 2005; AUTHORIZE THE SUBMITTAL OF THE AMENDED ANNUAL PLAN UPDATE TO THE UNITED STATES DEPARTMENT OF HOUSING & URBAN DEVELOPMENT (HUD). WHEREAS Resolutions 20894 approving the CDBG budget allocations for the fiscal years 2004 - 2005 was adopted on April 7, 2004; and WHEREAS, the City is eligible to receive an entitlement of Community Development Block Grant funds as entitlement city under the Department of Housing & Urban Development (HUD) Regulations; and WHEREAS, the City has approximately $227,000 available in existing Community Development Block Grant Program Income which need to be reprogrammed into approved and ready eligible projects; and WHEREAS, the funds must be used for eligible activities which principally benefit low and moderate income people, and WHEREAS, pursuant to the requirements of citizen involvement, public review of the City's 2004 —2005 Annual Plan Updates were held to receive citizen input on the allocation of its entitlement, as well as `Public Facilities & Improvements will also be partially funded with program income and the reprogramming of unexpended activity funds, both prior years and current' which HUD annually approved this methodology for the past six Program Years; and WHEREAS, the projects have been assessed by staff and the Citizen's Advisory Committee (CAC) based on needs of low and moderate income neighborhoods to benefit the maximum number of people; and WHEREAS, the City Council held a public hearing on April 7, 2004 to receive public input on the allocation of these funds; and WHEREAS the standard Term of all CDBG Subrecipient Agreements is one year, even while projects are sometimes carried for several years, requiring an amendment to extend the expiration; and WHEREAS the City Manager has recommended, and the City Council desires to approve, certain amendments to said Subrecipient Agreement; I RESOLUTION NO. Page 2 NOW, THEREFORE, be it resolved that the City Council of the City of Palm Springs, California, does hereby approve the following: SECTION 1. Allocations of Community Development Block Grant funding: PS Public Works & Engineering Department— ADA Pedestrian Safety Improvements $82,000 Mizell Senior Center— HVAC Energy-Efficient Improvements $75,000 Stroke Recovery Center— Energy Conservation Improvements $50,000 PS Community & Economic Development Department— Home Repair Program $12,000 PS Parks & Recreation Department— JOJ Desert Highland Unity Center Improvement $8,000 Total Reprogrammed Dollars 22� 7 000 SECTION 2. Staff is authorized to submit a revised 2004 - 2005 Consolidated Plan Annual Plan Update to the Department of Housing & Urban Development which accurately reflects the CDBG projects and budget approved by the City Council. SECTION 3. The City Manager is authorized to execute the appropriate Subrecipient Agreements and/or Amendments, in a form approved by the City Attorney, with the additional funds and Term extension as required in accordance with this Resolution, and the aforementioned Resolutions, adopting the budgets for the 2004 — 05 fiscal year. ADOPTED this day of 2006. David H. Ready, City Manager ATTEST: James Thompson, City Clerk RESOLUTION NO. Page 3 i CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on May 3, 2006, by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California Da IeC/CDB G04-05/CC_P I_Bdgt_Reso.Apr06