HomeMy WebLinkAbout2/4/2004 - STAFF REPORTS (12) DATE: February 4, 2004
TO: CITY COUNCIL
FROM: COMMUNITY DEVELOPMENT ADMINISTRATOR
VIA DIRECTOR OF COMMUNITY& ECONOMIC DEVELOPMENT
2003 — 2004 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) BUDGET
AMENDMENT AND AMENDMENT TO THE ANNUAL PLAN
RECOMMENDATION:
It is recommended that the City Council approve allocating $352,253 in CDBG
Program Income as recommended, authorize the funding increases of already
approved Department of Housing & Urban Development (HUD) approved Public
Facilities & Improvement projects identified in the City's 2002 — 2003 and 2003 —
2004 Consolidated Plan's Annual Plan Updates and authorize the City Manager to
execute the appropriate Subrecipient Agreement and/or Amendment with the
additional funds and Term extension.
BACKGROUND:
The City had identified in the 2002-03 and 2003-04 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 approved this methodology for both Program Years.
Program Income receipts reported in HUD's Integrated Disbursement
Information System (IDIS) are as follows:
$165,807.00 Proceeds from sale of prior CDBG-funded land (Sunset Hacienda)
158,587.36 Repayments from Commercial & Residential Loans made under
County CDBG Program
19,971.42 Reimbursements from Crossley Tract Utility Undergrounding
7,887.05 Revenue from land rental of CDBG-funded land (Sunrise Norte)
$352,252.83
- 51,177.33 Current Fiscal Year Allowable 20% Administration
$301.075.50 Available Program Income for Re-Programming
The chart below indicates the specific recommendations for reprogramming
funds to increase previously approved Public Facilities & Improvement projects.
ORIGINAL ADDITIONAL PRIVATE
SUBRECIPIENTS FY APPROVED CDBG REVISED TOTAL $
FUNDED CDBG FUNDS CDBG PROJECT MATCH
FUNDING RECOMMENDED FUNDING $ (%)
PS Public Works Department- 2002-03 $86,380. $47,500. $133,880 $133,880, -D-
ADA Park Improvements Frey,Jaycee Building ...... __ ____ _ _
Desert AIDS Project- 2002 03 246 820. 155,000. 401 820. 736 820. $335,000,
...Exterior Safetylmprovements.............. . . .........---------- ---._..... ----------------- --------.----......... .... ------..
Family YMCA of the Desert(formerly PS Youth Center)- 2003-04 54,725. 55,500. 110,225. 110,225. -0-
ADA Improvements-Fire Alarm System __
Mizell Senior Center- 2003 04 27,000. 13,000. 40,000. 45,000. 5,000.
Energy,-.Efficiency Roof Improvements. .. . ....... . ...... .. ... . ... _ (11.1%)...
PS Building Department- -0- _ 076. 3 .076. 30,076. -0-
ADA Improvements-Cit Hall
TOTAL FUNDING $301,076. /A A d/
The reprogramming of these unexpected additional funds will ensure evidence to HUD
that, as an Entitlement City, the City is taking steps to strive in complying 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 times its annual grant ($618K x
1.5 = $927K) as of March 15 in a given year. Without reprogramming these funds to
projects that are ready to go, the City risks being out of compliance with HUD
regulations.
J H OND DALE E. COOK, JR.
D r ctor of Community Development
Community& Economic Development Administrator
APPROVED: Waa
�y
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ATTACHMENT:
1. Resolution
2 " Zo
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, AMENDING THE COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) BUDGET FOR
FISCAL YEAR 2003 — 2004; AUTHORIZE THE OF THE
CONSOLIDATED PLAN'S ANNUAL PLAN UPDATE.
WHEREAS Resolutions 20302 and 20330 approving the CDBG budget allocations for
the fiscal years 2002 - 2003 was adopted on April 3, 2002 and May 15, 2002
respectively; and
WHEREAS Resolutions 20580 and 20581 approving the CDBG budget allocations for
the fiscal years 2003 - 2004 was adopted on April 2, 2003; 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 $352,253 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 2002 —2003 and 2003 — 2004 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 has approved this methodology
for both 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 public hearings on April 3, 2002 and April 2, 2003 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;
NOW, THEREFORE, be it resolved that the City Council of the City of Palm Springs,
California, does hereby approve the following:
OZ.
SECTION 1. Allocations of Community Development Block Grant funding:
2002-03 2003-04 NEW
Entitlement Entitlement Reprogrammed 2003-04
Allocation Allocation Allocation Allocation
PS Public Works Department—
ADA Park Improvements—Frey-Jaycee Building $86,380. -0- $47,500. $133,880.
Desert AIDS Project—
Exterior Safety Improvements 246,820. -0- 155,000. 401,820.
Family YMCA of the Desert—
ADA Improvements-Fire Alarm System -0- 54,725. 55,500. 110,225.
Mizell Senior Center—
Energy-Efficiency Roof Improvements -0- 27,000. 13,000. 40,000.
PS Building Department—
ADA Improvements—City Hall -0- -0- 30,076. 30,076.
PS Comm & Econ Development Dept—
Program Admin&Analysis Of Impediments -0- 102,000. 51,177. 153,177.
TOTAL 333 slsa 7as M�
SECTION 2. Staff is authorized to submit a revised 2003 - 2004 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 2002 —03 and 2003 — 04 fiscal years.
ADOPTED this day of February 2004.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED AND APPROVED
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