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HomeMy WebLinkAbout10 AMEND CDBG FUNDS 02-07-05 AGENDA REPORT Agenda Item Reviewed: City Manager Finance Director MEETING DATE: FEBRUARY 7,2005 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: AMENDMENT TO THE 2004-05 ACTION PLAN FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS RECOMMENDATION That the City Council adopt Resolution No. 05-23 amending the Action Plan for Fiscal Year 2004-05. FISCAL IMPACT The proposal involves the reallocation of CDBG funds from a 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 the 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 the City will undertake during the program year to address the priority needs of housing and community development. The Action Plan also describes the program budget for disbursement of CDBG funds to the activities that will be undertaken during the program year. The Community Development Department is proposing to amend the submitted Action Plan by reallocating funds from an approved activity to more active activities. Federal Law Section 573.902(a)(1)(i) related to CDBG programs indicates that HUD will consider an entitlement recipient (City) to be failing to carry out its CDBG activities in a timely manner if, sixty (60) days prior to the end of current program year, the amount of entitlement grant funds available is more than 1.5 times 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. City Council Report CDBG Reallocation February 7, 2005 Page 2 The Community Development Department is proposing to amend the submitted Action Plan by reallocating funds as follows: Program Year 2004-05: From Newport Avenue Street Improvement Activity (Account No. 22-999-9515- 7130-00) to the following activities: . Sycamore Gardens Sound Wall Design (CIP 7131) - amount $ 70,000 . Old Town Commercial Sign Program (CIP 4065) - amount $185,000 . East Alley Improvements (CIP 7176) - amount $110,000 . Prospect Avenue Improvements (CIP 7177) - amount $165,388 . Altadena/Pasadena Pedestrian Enhancement - amount $133,914 . CDBG Consolidated Plan - 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 2004-05. Justina Willkom Associate Planner Elizabeth A. Binsack Director of Community Development Attachment: Resolution No. 05-23 RESOLUTION NO. 05-23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING AMENDMENT TO THE CITY'S 2004-05 ACTION PLAN FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM BY REALLOCATING $689,302.00 OF CDBG FUNDS FROM NEWPORT AVENUE STREET IMPROVEMENT ACTIVITY TO VARIOUS ACTIVITIES 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 are directed toward certain specific objectives as set forth in the Act as the Community Development Block Grant; and WHEREAS, previously funded programs and projects have not been initiated and remain inactive and 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 February 7,2005. NOW THEREFORE BE IT RESOLVED, the City Council of the City of Tustin resolves as follows: Section 1: The amendment to the City of Tustin's Action Plan shall be as follows: Program Year 2004-05: From Newport Avenue Street Improvement Activity (Account No. 22-999-9515- 7130-00) to the following activities - Total Amount $689,302.00. . Sycamore Gardens Sound Wall Design (CIP 7131) - amount $ 70,000 . Old Town Commercial Sign Program (CIP 4065) - amount $185,000 . East Alley Improvements (CIP 7176) - amount $110,000 . Prospect Avenue Improvements (CIP 7177) - amount $165,388 City Council Resolution No. 05-23 Page 2 . AltadenalPasadena Pedestrian Enhancement - amount $133,914 . CDBG Consolidated Plan - amount $25,000 Section 2: Staff is hereby directed to prepare and submit the amended Action Plan for FY 2004-05 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 Block Grant (CDBG) 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 yth day of February 7, 2005. LOU BONE Mayor Pamela Stoker City Clerk STATE OF CALIFORNIA) COUNTY OF ORANGE) SS CITY OF TUSTIN ) CERTIFICATION FOR RESOLUTION NO. 05-23 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. 05-23 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the yth day of February, 2005, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: Pamela Stoker, City Clerk