HomeMy WebLinkAboutAgenda Statement 1987/03/03 Item 5 COUNCIL AGENDA STATEMENT
Item 5
Meeting Date 3/3/87
ITEM TITLE: Resolution/7 9v Requesting reprogramming of FY 1986-87 San
Diego Urban County Block Grant Funds and authorizing the
transfer of City Gas Tax funds
SUBMITTED BY: Community Development Director ;_
REVIEWED BY: City Manage (4/5ths Vote: Yes X No )
On April 8, 1986, the Council requested that the County of San Diego allocate
FY1986-87 Community Development Block Grant (CDBG) funds for the Montgomery
area for a project to install street improvements on William Avenue (project
description attached). The County Board of Supervisors approved the project
with the condition that the CDBG funding eligibility of the project be
verified. A survey conducted by the City demonstrated that the William Avenue
project is not eligible for CDBG funding. Subsequent to the survey, the
Council directed staff to further investigate the CDBG-funding eligibility of
the project. The subsequent investigation has confirmed the non-eligibility
of the project. An alternative is proposed.
RECOMMENDATION: That the Council adopt the resolution requesting
reprogramming of FY1986-87 San Diego Urban County Block Grant funds and
authorizing the transfer of City Gas Tax funds.
BOARDS/COMMISSIONS RECOMMENDATION: The Montgomery Planning Committee on
April 2, 1986, recommended that the City direct the County to include the
William Avenue project in its CDBG funding application to HUD. On July 16,
1986, the Council approved that recommendation. On July 16, 1986, the
Montgomery Planning Committee recommended that the County be directed to
transfer 1986-87 Montgomery CDBG funds out of the William Avenue project to
another CDBG eligible project due to project ineligibility. Council did not
approve that recommendation, but rather directed on July 22, 1986, that a
further investigation of the CDBG funding eligibility of the William Avenue
project be undertaken.
DISCUSSION:
The 1986-87 Federal CDBG funding allocation for the Montgomery area was
received by the County of San Diego. An agreement was reached between the
County and the City of Chula Vista by which the City was to choose projects
for funding with Montgomery CDBG funds and the County was to pass the
Montgomery CDBG funding on to the City for project implementation by the
City. One of the projects recommended by the City was the installation of
curbs, gutters and sidewalks on William Avenue for $54,000.
Page 2, Item 5
Meeting Date 3/3/87
After receiving the City recommendation for Montgomery projects to be funded
by CDBG in 1986-87, representatives of the County questioned whether the
beneficiaries of the William Avenue project were low income, based on a
contrary report from the County's Housing and Community Development Advisory
Committee. The County Board of Supervisors approved the inclusion of City
recommended projects in their CDBG funding application to HUD on the condition
that the eligibility of the William Avenue project be verified by a survey of
the project beneficiaries.
HUD regulations require that at least 51% of the beneficiaries of a CDBG
funded project are low income. Census data indicates that the area including
William Avenue is more than 51% low income. Since this was the most specific
income data on the project available to the City, the project was considered
to be CDBG-eligible. This method of project eligibility determination is
acceptable to HUD and is standard procedure for the City. However, HUD
regulations require that the best and most specific data available must be
used to determine CDBG funding eligibility. Since the survey of residents on
William Avenue indicated that substantially less than 51% of the residents
were low income, the City determination of CDBG funding eligibility for the
project based on census data was no longer valid.
A further investigation of the eligibility of the project was requested by the
Council and has been conducted. It was argued by residents on William Avenue
that the street is used by neighboring residents of the two mobilehome parks
south of Orange Avenue. Data available on the Orange Tree Mobilehome Park
indicates that only about one-third of the residents of that park are low
income. Although no income data is available for the other mobilehome park,
Hacienda Mobile Estates, the appearance and general condition of that park
suggest that its residents have generally similar if not higher income than
the residents of Orange Tree.
It was also learned that a bus for Chula Vista Junior High School stops on
William Avenue, but information on the household income levels of the students
riding the bus is not available from the school or the school district.
Because the street is only one block long, it cannot be considered as a
thoroughfare that significantly serves the entire census tract. Income data
for areas smaller than the entire census tract is not made available by the
federal government. It should also be considered that the only portion of the
proposed project that could be considered to serve persons other than the
actual residents of William Avenue is the installation of sidewalks. Most of
the cost of the proposed project is for curbs and gutters which only benefit
the residents of William Avenue in any significant way.
The above findings serve to reinforce the earlier determination that the
project is not eligible for CDBG funding. It remains impossible to
demonstrate project eligibility to the County, the Agency responsible to HUD
for the correct use of the funds. To ask the County to fund the project under
these circumstances would only result in the County's refusal and additional
delay. However, since the proposed improvements are needed and the residents
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Page 3, Item 5
Meeting Date 3/3/87
of William Avenue have been given reason to believe that the City will provide
those improvements at no cost to them, it is recommended that the project be
implemented using alternative funds.
A mechanism by which this could be accomplished would he to transfer
sufficient Gas Tax funds out of the Telegraph Canyon Flood Control Project to
the William Avenue project and to request that the County transfer an equal
amount of County CDBG funds from the William Avenue project account to the
Telegraph Canyon Flood Control Project. The latter project has already been
determined to be eligible for CDBG funding.
FISCAL IMPACT: Sufficient funds exist in the Gas Tax Account for the
Telegraph Canyon Flood Control project (#250-2501-GT221 ) to transfer $54,000
to the William Avenue project account (#250-2501 -GT224) as per the
resolution. CDBG funding currently held by the County to be allocated to the
City's Wi 11 i am Avenue project account (#635-6350-BG160) are to be transferred
by the County and allocated to the City's Telegraph Canyon Flood Control
Project account (#635-6350-BG1 58).
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Chula Vista, California
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