HomeMy WebLinkAbout01 USE OF CDBG FUNDS 12-05-94NO. 1
12-5-94
I n t e r- C o m
,.)ATE:
DECEMBER 5, 1994
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: COMMUNITY DEVELOPMENT DEPARTMENT
SUBJEC~ AMENDED FINAL STATEMENT (APPLICATION) FOR PROPOSED USE OF
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS - FISCAL YEAR
1994-95
RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 94-128
approving an amendment to the Final Statement (application) for the
proposed use of Community Development Block Grant (CDBG).funds for
Fiscal Year 1994-95
FISCAL IMPACT
The proposal involves the reallocation of previously authorized'
CDBG funds. The additional activities to be undertaken as a result
of the proposed amendment will be accomplished entirely with
federal CDBG monies. No general fund impacts are anticipated.
BACKGROUND
In May of 1994, the Tustin City Council approved the allocation of
$494,000 of federal CDBG funds to a variety of public facility,
rehabilitation, historic preservation, and public service projects
and programs. At that time, $35,000 was allocated to the City's
Graffiti Removal Program and $10,180 was allocated for part-time
code enforcement staff supporting the City's housing rehabilitation
program; no funds were allocated to CDBG program administration.
The proposed amendment will 1) enable the purchase of computer
hardware and software necessary to administer the CDBG program, 2)
offset a' portion 'of..the City's cost of staff training and
subscriptions to related publications, and 3) upgrade the
previously allocated code enforcement position to a full-time code
enforcement position, concentrating code enforcement efforts in the
southwest portion of the City.
City Council Report
Amended Final Statement - CDBG Funds FY 1994-95
December 5, 1994
Page 2
ANALYSIS
Reallocation of Graffiti Removal Funds
In September of 1994, the Community Development Department entered
into a contract with a new graffiti removal service. The new
contractor's rates are substantially less than the rates of our
previous service provider. As a result, it is believed that the
$35,000 allocated from 1994-95 monies ~.will not be needed to
continue our current program.
The City is currently expending funds allocated to graffiti removal
from Fiscal Year 1993-94 CDBG monies. The balance of that account,
approximately $23,000, will take several years to draw down, at our
projected rate of expenditure. If %he City ~ere to see a dramatic
increase in graffiti occurrence in the next several months, the
Council will have an ~opportunity to allocate additional funds to
the graffiti removal program during their review of the Fiscal Year
1995-96 CDBG application in spring of 1995.
Therefore, we believe that funds can be reallocated to other CDBG
activities and programs without jeopardizing the current Graffiti
Removal Program.
Purchase of Computers and Staff Traininq
As a part of President Clinton's policy to "re-invent government",
the federal Department of Housing and Urban Development (HUD) is in
the process of implementing broad changes to the regulations and
requirements for the CDBG program, known as the Consolidated Plan,
beginning in Fiscal Year 1995-96. One welcome aspect of the
Consolidated Plan is a new requirement for fully automated
application, reporting, accounting systems.
HUD has recently provided cities with copies of the numerous
computer software programs required for the new, automated
accounting systems, as well as detailed specifications for the type
of computer equipment necessary to run the programs.
Unfortunately, none of the Community Development Department's
existing computer hardware has the capability to efficiently
operate the software programs.
Generally, the purchase of equipment is not an eligible expenditure
of CDBG funds. This year HUD has made an exception to that
regulation and will allow the purchase of computers needed to run
the previously provided software. However, during the initial
City Council Report
Amended Final Statement - CDBG Funds FY 1994-95
December 5, 1994
Page 3
distribution of 1994-95 CDBG funds by Council; no money was set
aside for administrative activities.
Staff is proposing that of the $35,000 in Graffiti Removal funds
available for reallocation (noted above), a portion of those funds,
$22,000, be allocated to CDBG Program Administration, with $19,000
being used to purchase four (4) computers to operate the HUD-
provided software and $3,000 to be used for staff training and the
purchase of CDBG-related publications. A breakdown of the proposed
use of the funds reallocated to CDBG Program Administration is as
follows:
Computers (3 @ approximately $4,300 each)
AST Bravo LC4/66d, Model 343C
Lap-top computer and docking station
Computer Subtotal
Staff Training and Publications
Administration Total
$13,000
6,000
19,000
3~000
$22,000
Code Enforcement Officer
The City Council has recently requested that the Community
Development Department study the options for providing additional
code enforcement personnel, focussing on the Southwest
Neighborhood.
Staff proposes that the remainder of the reallocated monies,
$13,000 be added to the $10,180 previously allocated for a part-
time code enforcement position. That would enable the sum of
$23,180 to be used to upgrade the position to full-time, for the
remaining six months of the 1994-95 CDBG fiscal year. Funding of
the position for Fiscal Year 1995-96, as well as subsequent years,
will be included 'in the City's annual CDBG application. A
breakdoWn of ~funds allocated to Rehabil~itation and Preservation
Activities is as follows:
..
I Upgrade of code enforcement support staff to
a full-time position (to be added to previously
allocated $10,180) $13,000
Rehabilitation and Presentation -
Code Enforcement Position Total
$23,180
City Council Report
Amended Final Statement - CDBG Funds FY 1994-95
December 5, 1994
Page 4
CONCLUSION
It is very important that Tustin draw down our CDBG funds as
quickly as possible. During the monitoring of our program, HUD
will examine the rate at which the City of Tustin has expended our
grant awards. Regulations discourage a jurisdiction from accruing
more than 1.5 times its total grant award ($494,000 X 1.5 =
$741,000). Inadequate spending may jeopardize our future year's
grants. Reallocating funds to allow their use for administrative
and code enforcement costs will help us ensure full awards in
subsequent years.
Ail applicable HUD regulations have been followed in the processing
of this change in the use of CDBG monies. Staff has published a
notice of the amended Final Statement (application to HUD), as well
~.as the 'required public hearing.
Based on the above analysis, staff recommends that Council support
the amendment to the Final Statement for Fiscal Year 1994-95.
Resolution No. 94-128 has been prepared for Council action. Staff
will be available during the public hearing to make a presentation
on the CDBG Program and the amendment, as well as answer questions
about the above-listed recommendations.
PR: br: kd\ccreporl: \cdb99Z, - 5. amd
~ A: s/~ngleton
Assistant Cit~/Manager
4
5
6
$
9
]0,
~3
]4
]5
~6
]7
~8
~19
20
2~
22
24
26
27
28
RESOLUTION NO. 94-128
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, APPROVING AN AMENDMENT TO THE
CITY'S 1994-95 FINAL STATEMENT (APPLICATION) FOR
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS AND
AUTHORIZING SUBMISSION OF SUCH APPLICATION 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, in May of 1994 the City Council approved
Resolution 94-54, authorizing allocation of federal CDBG funds
for Fiscal Year 1994-95 to various projects and programs; and
". WHEREAS, in the months since Council's initial allocation
of CDBG funds, staff has re-evaluated, some of those planned
expenditures and finds that City and community needs have
changed; and
WHEREAS, Council finds that monies allocated to the
Graffiti Removal Program can be reallocated to CDBG
administration for the purchase of computers, staff training
and subscriptions, as well as additional code enforcement
personnel.
WHEREAS, citizens were notified of the proposed changes
in use of CDBG funds through an advertisement published in the
local newspaper; and
WHEREAS, a staff report has been prepared recommending
proposed projects for the City's participation in the 1994-95
CDBG Program.
WHEREAS, a public hearing to obtain the views of citizens
on the amended Final Statement, was held by the City Council
on"December 5, .1994
NOW THEREFORE BE IT RESOLVED, the City Council of the
City of Tustin resolves as follows:
1
2
3
4
5
6
7
8
9
10
~3
~15
16
17
~8
;19
20
2~
22
23
24
25
26
27
28
Resolution No. 94-128
Page 2
Section 1: The Amendment to the City of Tustin's 1994-95
application for CDBG funds, and the proposed use of funds is
hereby approved in the order of prioritization identified by
Council at their hearing of December 5, 1994 as follows:
[] CDBG Program Administration $22,000
(Reallocated funds)
[] Rehabilitation and Preservation- $23,180
Code Enforcement position
(Previously allocated funds-S10,180,
plus reallocated funds-S13,000)
Section 2: Staff is hereby directed to prepare and
submit an Amended Final Statement to the federal Department of
Housing and Urban Development reflecting Council's direction
for the City's participation in the 1994-95 CDBG funding year.
Section 3: The Assistant City Manager of the City of
Tustin or her 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.
PASSED and ADOPTED by the City Council of Tustin this 5th
day of December, 1994.
THOMAS R. SALTARELLI
Mayor
Mary E. Wynn,
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF TUSTIN )
SS