HomeMy WebLinkAbout01 CDBG FD OBJECTIVES 10-21-96DATE'
OCTOBER 21, 1996
· NO. 1,
10-21-96
,
Inter-Oom
TO'
FROM'
WILLIAM A. HUSTON, CITY MANAGER
COMMUNITY DEVELOPMENT DEPARTMENT
AMENDED FINAL STATEMENT OF OBJECTIVES (FY 1994-95) AND ONE-
SUBJEOT: YEAR ACTION PLANS (FY 1995-96 AND FY 1996-97) FOR FEDERAL
COM~g3NITY DEVELOPMENT BLOCK GRANT' (CDBG) FUNDS
i CD:B~ f~Cls fro~ :':~'nactive: proiec~ o;: }e:maining frbm :COmpleted projects to other !1
ellgibleacti~itiesI :: : ·::: ::: : :;
RECOMMENDATION
That the City Council adopt Resolution No. 96-105 approving
amendments to the Final Statement of Objectives for Fiscal year
(FY) 1994-95 and One-Year Action Plans for FY 1995-96 and FY 1996-
97 for the proposed use of Community Development Block Grant (CDBG)
funds.
FISCAL IMPACT
The proposal involves the reallocation of approximately $152,046 in
CDBG funds from inactive or completed projects to other eligible
activities. No impacts to the General Fund. are anticipated.
BACKGROUND
The Housing and Community Act of 1974, as amended, created the
~ommunity Development Block Grant (CDBG) program to return federal
funds to local communities for the purpose of developing viable
urban communities by providing adequate housing and a suitable
living environment and by expanding economic opportunities,
specifically for low and moderate income persons. Communities are
encouraged to obtain citizen suggestions as to potential uses for
these funds prior to their allocation.
Examples of eligible projects include public services such as:
child care; job training; services for abused persons, seniors or
the homeless; removal of architectural barriers; housing
rehabilitation, and related support activities; commercial or
industrial rehabilitation; and, the acquisition, construction or
rehabilitation of public and certain planning activities.
City Council Report
Objectives and One-Year Action Plans
October 21, 1996
Page 2
Federal law states that at least 75 percent of funds expended by a
local jurisdiction must benefit low- and moderate-income persons
and no more than 15 percent may be used for public service
programs. Federal law also limits the amount of funds spent on
administrative activities, including planning studies, to a maximum
of 20 percent of the grant award.
PROPOSED AMENDMENTS/FUND REALLOCATIONS
During recent months, two approved CDBG-funded projects were
completed and monies remain unexpended in the project accounts. In
addition, previously funded activities have not been initiated and
the projects remain inactive. Staff is proposing reallocation of
those remaining and or unexpended monies to other CDBG eligible
activities. Proposed amendments to previously approved allocations
are as follows:
FY 1994-95 (Grant Year 20)
From the "C" Street Reconstruction Project to:
1) Code Enforcement (support for
2)
3)
housing
rehabilitation program) - $37,500;
Commercial Rehabilitation Program - $30,000;
Planning Activities (consultaht services related to
the completion of ~the Reuse/Specific Plan and
EIS/EIR for MCAS, Tustin, and an analysis of
various public utilities at the Base) - $13,318 or
the amount remaining in the project account.
FY 1995-96 (Grant Year 21)
From CDBG Program Administration to Planning Activities
(consultant services related to the completion of the
Reuse/Specific Plan and EIS/EIR for of MCAS, Tustin, and
development of marketing material and strategies) -
$4,188 or the amount remaining in the project account.
From Rancho Santiago Community College to Saddleback
Community College District for Planning Activities
related to the proposed education and vocational training
center known as the "Learning Village" at MCAS, Tustin -
$39,000.
City Council Report
Objectives and One-Year Action Plans
October 21, 1996
Page 3
FY '1996-97 /Grant Year 22)
From the Park Master Plan at MCAS, Tustin to Planning
Activities (consultant services related to the completion
~f the Reuse/Specific Plan and EIS/EIR for MCAS, Tustin)
- $28,040.
ANALYSIS
FY 1994-95 (Grant Year 20)
The "C" Street Reconstruction project was completed for an
amount substantially under the original $159,500 budget; over
$80,000 remains in the project account. Formal reallocation
is necessary to allow the funds to be expended on other
activities. Projects recommended for funding with the
reallocated monies reflect current City priorities. Those
projects are as follows:
Code Enforcement
Code enforcement in the southwest neighborhood is requiring
increased staff time. Reallocated funds will be used to pay
85% of the salary and benefits of the City's full-time code
enforcement officer who will focus efforts on violations in
CDBG target areas.
The resulting General Fund salary savings will be used to hire
a contract code enforcement officer concentrating efforts in
other areas of the City. 'Staff is proposing that $37,500 be
allocated to this program. This new allocation will be added
to an existing code enforcement.account with a balance of
approximately $12,600 for a total fund of approximately
$51,000.
Commercial Rehabilitation
The Community DevelOpment Department has received requests
from Old Town property/business owners for assistance through
the Commercial Rehabilitation program. This pro'gram,
initially.funded in 1991, provides "seed" monies for facade
improvements, including paint, awnings ~and signage, and
seismic renovation. Currently, there are no funds allocated
to the program. Staff is proposing to allocate $30,000.
City Council Report
Objectives and One-Year Action Plans
October 21, 1996
Page 4
Planninq Activities
Planning activities related to the reuse of Marine Corps Air
Station (MCAS), Tustin are on-going. Additional funding is
necessary for consultant services associated with the
completion of the Reuse/Specific Plan and EIS/EIR and for an
analysis of the potential for the City to acquire the
electrical, gas and telephone systems at the Base, including
an evaluation of the feasibility of installation and ownership
of cable and fiber optic systems. Staff proposes allocating
approximately $13,318 from the remaining "C" Street
Reconstruction funds.
FY 1995-96 (Grant Year 21)
Planninq Activities
As stated above, additional funding is needed for planning
activities associated with the reuse of MCAS, Tustin. Staff
proposes reallocating approximately $4,188 remaining from the
funds set-aside for the general administration of the CDBG
program during the past fiscal year to off-set costs incurred
for the completion of the MCAS, Tustin Reuse/Specific Plan and
EIS/EIR, including any additional contingencies needed for
consultant services, and for development of Base-related
marketing materials and strategies.
Learninq Villaqe
Fiscal Year 1995-96 funds have previously been allocated to
the Rancho Santiago Community College for planning activities
associated with the development of the Learning Village at
MCAS, Tustin. Staff has recently been informed that the
entity carrying out the project has changed. The Saddleback
Community College District will now be the lead agency in the
development and operation of the Learning Village. Staff is
recommending that the $39,000 allocated to Rancho Santiago be
reallocated to Saddleback Community College District to be
used for a portion of the cost of the preparation of a Master
Plan for the proposed education/vocational training center.
City Council Report
Objectives and One-Year Action Plans
October 21, 1996
Page 5
FY 1996-97 (Grant Year 22).
Planninq Activities
Fiscal Year 1996-97 funds were previously allocated for the
preparation of a master plan for park land on the Base.
Recently it was determined that undertaking such a study may
be somewhat premature. A more urgent community need is the
completion of the Reuse/Specific Plan and EIS/EIR for the
Base. That scope of work will involve a change order to an
existing contract due to significant project overruns
resulting from the 18-month delay in the Department of Defense
and the Navy making a decision on a determination of surplus~
property for MCAS, TuStin.
It is important that Tustin continue to draw down CDBG funds.
During the federal monitoring of our program, HUD will examine the
rate at which the City of Tustin has expended grant awards.
Regulations discourage a jurisdiction from accruing more than 1.5
times its total grant award. Inadequate spending may jeopardize
future grants. Reallocating funds to current City priorities, such
as code enforcement and the Base reuse will help ensure full awards
in subsequent years.
All applicable HUD regulations have been f611owed in the processing
of this 'change in the use of CDBG monies. Staff has published a
notice of the amended Final Statement of Objectives and One-Year
Action Plans and the required public hearing in the local newspaper
and posted the notice at various City Hall locations.
CONCLUSION
Based on the above analysis, staff recommends that Council support
the amendments to the Final Statement of Objectives and One-Year
Action Plan. Resolution No. 96-105 has been prepared for Council
action.
P~ula Ra~k~n' ~
Associate~ Planner
Elizabeth A. Binsack
Community Development
Department Director
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1 RESOLUTION NO.- 96-105
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, APPROVING AMENDMENTS TO THE
CITY'S FINAL STATEMENT OF OBJECTIVES AND ONE-YEAR
ACTION PLANS FOR COMMUNITY DEVELOPMENT BLOCK GRANT
FUNDS AND AUTHORIZING SUBMISSION OF SUCH AMENDMENTS
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 are
directed toward certain specific objectives as set forth in
the Act as the Community Development Block Grant (CDBG)
Program; and
~WHEREAS, with the recent completion of a CDBG-funded
public works project and the administration of the 1995-96
fiscal year, funds remain unexpended; and
WHEREAS, previously funded programs and projects have not
been initiated and remain inactive; and
WHEREAS, it is important that the City of Tustin expend
CDBG funds as quickly as possible; and
WHEREAS, monies must be formally reallocated to other
eligible activities prior to expenditure; and
WHEREAS citizens were notified of the proposed changes
in use of CDB% funds through an advertisement published in the
local newspaper; and
WHEREAS, a staff report has been prepared recommending
proposed funding reallocations; and
WHEREAS, a public hearing to obtain the view of citizens
on the amended Final Statement of Objectives and One-Year
Action Plans was held by the City Council on October 21, 1996.
NOW THEREFORE BE IT RESOLVED, the City Council of the
City of Tustin resolves as follows:
Section· 1: The Amendments to the City of Tustin Final
Statement of Objectives and One-Year Action Plans shall be as
indicated:
FY 1994-95 (Grant Year 20)
A. From the "C" Street Reconstruction ·Project to:
1) Code Enforcement (support for housing
rehabilitation program) ~ $37,500;
2) Commercial Rehabilitation Program - $30,000;
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Resolution ~,o. 96-105
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Planning Activities (consultant services
related to the completion of the
Reuse/Specific Plan and EIS/EIR for MCAS,
Tustin and for an analysis of various public
utilities at the Base) - $13,318 or the amount
remaining in the project account.
FY 1995-96 (Grant Year 21)
A. From CDBG Program Administration to Planning
Activities (consultant services related to the
completion of the Reuse/Specific Plan and EIS/EIR
for MCAS, Tustin and for development of Base
marketing materials and strategies) - $4,188 or the
amount remaining in the project account.
B o
From Rancho Santiago Community College to
Saddleback Community College for Planning
Activities related to the proposed education and
vocational training center known as the "Learning
Village" at MCAS, Tustin - $39,000.
FY 1996-97 (Grant Year 22)
A. From Park Master Plan at MCAS, Tustin to Planning
Activities (consultant services related to the
completion of the Reuse/Specific Plan and EIS/EIR
for MCAS, Tustin) - $28,040.
Section 2: Staff is hereby directed to prePare and
submit an Amended Final Statement of Objectives and Amended
One-Year Action Plans 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 is authorized to execute, such '
documents, certifications, contracts or other instruments as
may be required to carry out the City's Community Development
Block Grant 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.
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Resolution No. 96-105
Page 3
PASSED and ADOPTED by the City Council of Tustin this
21st day of October, 1996.
TRACY WILLS WORLEY
Mayor
Pamela Stoker
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF TUSTIN )
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CERTIFICATION FOR RESOLUTION NO. 96-105
PAMELA STOKER, City Clerk and ex-officio Clerk of the City
Council of the City of Tustin, California, does hereby certify
that the whole number of the members of the City Council of
the City of Tustin is five; that the above and foregoing
Resolution No~ 96-105 was duly adopted at a regular meeting of
the Tustin City Council, held on the 21st day of October,
1996.
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER:ABSENT:
PAMELA STOKER
City Clerk
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