HomeMy WebLinkAbout02 ACTION PLAN CDBG 12-16-02AGENDA REPORT
NO. 2
12-16-02
/I '
MEETING DATE:
TO:
FROM:
SUBJECT:
DECEMBER 16, 2002
WILLIAM HUSTON, CITY MANAGER
COMMUNITY DEVELOPMENT DEPARTMENT
AMENDMENT TO THE 2002-03 ACTION PLAN FOR COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) FUNDS
RECOMMENDATION
That the City Council adopt Resolution No. 02-122 amending the Action Plan for Fiscal
Year 2002-03.
FISCAL IMPACT
The proposal involves the reallocation or redistribution of CDBG funds from previously
approved project. No impacts to the General Fund are anticipated.
PROPOSED AMENDMENTS / FUNDS REALLOCATIONS
In May of each fiscal year, the City submits to U.S. Department of Housing and Urban
Development (HUD) a one-year Action Plan as an application to receive the Community
Development Block Grant (CDBG) funds. The Action Plan describes the activities that
the City will undertake during the program year to address the priority needs of housing
and community development. The Action Plan also describes program budget for
disbursement of CDBG funds to the activities that will be undertaken during the fiscal
year.
The Community Development Department is proposing to amend the submitted Action
Plan by reallocating funds from Program Administration activity to the Boys and Girls
Club Building Improvement activity. During the current Fiscal Year, the Boys and Girls
Club did not receive CDBG allocation because they failed to submit an application to the
City in a timely manner. To offset their program budget, the Boys and Girls Club
requested that the City assist them in funding the needed improvements at the Boys
and Girls Club. The improvements include the boys' and girls' restrooms renovations,
interior and exterior door replacements, and exterior painting not to exceed $25,000.00.
The proposed amendment would reallocate funds from the Program Administration
activity. Over the past few years the City allocated Program Administration funds based
upon past allocations and time spent in administering the CDBG program. However,
the actual expenditures came lower than the estimated amount. Therefore, over the
City Council Meeting
December 16, 2002
Page 2
years the City accumulated about $25,000.00 that is now available for other CDBG
activities.
In addition, Federal Law Section 573.902(a)(1)(i) related to CDBG program indicates
that HUD will consider an entitlement recipient (City) to be failing to carry out its CDBG
activities in a timely manner if, sixty days prior to the end of current program year, the
amount of entitlement grant funds available is more than 1.5 times of the entitlement
grant amount for the current program year. The proposed reallocation, if approved by
the City Council, would allow the City to expedite draw down of CDBG funds to meet the
timeliness requirements.
The amendment is proposed as follows:
· Fiscal Year 2002-03
From Program Administration activity to the Boys and Girls Club Building
Improvements activity- Amount $25,000.
In accordance with Federal Law, the City has published a notice in the local newspaper
with regard to the proposed amendment. Staff recommends that the City Council
support the amendment to the Action Plan for FY 2002-03.
Associate Planner
Elizabeth A. Binsack
Director of Community Development
Attachment: Resolution No. 02-122
S:\Cdd\CCREPOR'IAcdbg reallocation for B&G.doc
RESOLUTION NO. 02-122
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF TUSTIN, CALIFORNIA,
APPROVING AMENDMENT TO THE CITY'S
2002-03 ACTION PLAN FOR COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDS AND
AUTHORIZING SUBMISSION OF THE
AMENDMENT TO THE FEDERAL DEPARTMENT
OF HOUSING AND URBAN DEVELOPMENT.
WHEREAS, under the Housing and Community Development Act of 1974,
as amended, Federal assistance may be provided for the support of community
development activities which area directed toward certain specific objectives as
set fort in the Act as the Community Development Block Grant; and
WHEREAS, previously funded Program Administration activities have
accumulated excess funds and the funds remain unexpended; and
WHEREAS, it is important that the City of Tustin expend CDBG funds
expeditiously to meet the timeliness requirement; and
WHEREAS, funds must be reallocated to other eligible activities prior to
expenditure; and
WHEREAS, citizens were notified of the proposed changes in use of
CDBG funds through a legal notice published in the local newspaper; and
WHEREAS, the City Council considered the amendment at the meeting
on December 16, 2002.
NOW THEREFORE BE IT RESOLVED, the City Council of the City of
Tustin resolves as follows:
Section 1:
as follows:
The amendment to the City of Tustin's Action Plan shall be
Fiscal Year 2002-03
From Program Administration activity to the Boys and Girls Club Building
Improvement activity- Amount $25,000.00.
Section 2: Staff is hereby directed to prepare and submit the amended
Action Plan for FY 2002-03 to the Federal Department of Housing and Urban
Development reflecting Council's direction for the City's funding allocations to
eligible program activities.
Section 3: the City Manager of the City of Tustin or his designated
representative, such as the Director of Community Development, is authorized to
execute documents, certifications, contracts or other instruments as may be
required to carry out the City's Community Development Program.
Section 4: The City Clerk shall certify to the adoption of this Resolution
and shall file a copy of said application with the minutes of this City Council
meeting.
PASSED AND ADOPTED at a regular meeting of the Tustin City Council,
held on the 16th day of December, 2002.
Jeffery M. Thomas
Mayor
Pamela Stoker
City Clerk
City of Tustin
RESOLUTION CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF ORANGE )SS
CITY OF TUSTIN )
RESOLUTION NO. 02-122
I, PAMELA STOKER, City Clerk and ex-officio Clerk of the City Council of the City of
Tustin, California, hereby certifies that the whole number of the members of the City
Council of the City of Tustin is five; and that-the above and foregoing Resolution No. 02-
122 was adopted at a regular meeting of the City Council held on the 16th day of
December, 2002, by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
Pamela Stoker, City Clerk