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HomeMy WebLinkAboutAgenda Statement 1986/10/28 Item 24COUNCIL AGENDA STATEMENT Item 24 Meeting Date 10/28/86 ITEM TITLE: Public Hearing: Considering the allocation of FY 1986-87 Supplemental Community Development Block Grant Funds and the transferring of prior years' Community Development Block Grant Funds Resolution / a 794 Allocating FY 1986-87 Supplemental Community Development Block Grant Program Funds, appropriating funds therefor, authorizing transmittal to HUD of application for the Supplemental Grant, and transferring prior years Community Development Block Grant unds SUBMITTED BY: Community Development Director ~~~ M~ Director of Parks and Recreation /~ REVIEWED BY: City Manager ~ (4/5ths Vote: Yes X No ) The City was recently notified that the federal government had released previously deferred Community Development Block Grant (CDBG) funds and that the City was eligible to receive $147,000 in supplemental funds for its 1986-87 CDBG Entitlement program. The resolution being considered is to approve how the supplemental funds are to be used. In addition, the resolution transfers funds from completed projects and projects to be funded from other sources. BOARDS/COMMISSIONS RECOMMENDATION: The Montgomery Planning Committee approved the use of supplemental 1986-87 CDBG funds for upgrading a previous year County-funded project to pave Shy Lane. The Committee also expressed a desire to have Shy Lane dedicated as a public street. RECOMMENDATION: That the Council adopt 1986-87 Supplemental CDBG application, transferring prior years CDBG funds. the resolution approving the FY appropriating funds therefor, and DISCUSSION: SUPPLEP~IENTAL FUNDIPJG: On Play 13, 1986, the Council approved the City's 1986-87 program budget and set of objectives. In July the federal government released an additional $500,000,000 in CDBG supplemental funds, and $147,000 of those funds were later earmarked for the City. The City is allowed to use the supplemental funding for any of a number of eligible activities which primarily benefit low and moderate income residents of the City. Page 2, Item 24 Meeting Date~~7~T~~ The availability of City supplemental CDBG funds has been noticed in a general circulation newspaper. Public notice has also been given of the decision to be made at this meeting. In response to the public notice of the availability of the CDBG Supplemental funds, one proposal for funding was submitted to the City. The f~IAAC Project, operating out of the Otay Community Center 1 ocated at 1571 Albany Avenue, is requesting $25,256 for a driver and other operational expenses of a van for transporting clients to the center and to special events sponsored by the Center, as well as to deliver emergency food to families in need. The proposal (attached) is similar to the one that was denied for funding from the original 1986-87 City Block Grant budget. The City could consider funding the MAAC Project, or any of the other applicants for the original 1986-87 City CDBG funding. However, it is felt that no additional funds should be granted for social service activities until completion of the City's Social Services Plan, which will assist the City in identifying needs and setting priorities. Supplemental CDBG funding is recommended for the Shy Lane Project ($137,672) and Local Option ($9,328). At the August 26, 1986, Council meeting, approval was given to pursue the dedication of Shy Lane as a public street and to use supplemental CDBG funds for a portion of the cost of providing the following list of improvements on Shy Lane: grading to improve traffic line-of-sight and to create a crowned road, paving of the street, curbs and gutters, sidewalks, and other drainage improvements. Previous year County CDBG funds were allocated for a project to pave Shy Lane only and leave it as a private street. Although some of those funds have been spent for design of the Shy Lane project, the remaining County funds are to be granted to the City for implementing the upgraded project. A preliminary estimate by the Engineering Department places the total cost of the current Shy Lane project at $185,000. Since $47,328 are available in County funds for the project, $137,672 are needed from the City's supplemental CDBG funds to carry out the project. It is sugyested that the funds remaining after allocation to Shy Lane be placed in a discretionary account called Local Option. These funds could be reassigned later to Block Grant eligible projects in need of additional funds. TRANSFERRING: There are funds remaining in two prior year Block grant projects which are now completed. It is recommended that remaining funds from the two projects, Central Drainage Channel Fence ($325.26) and the Palomar Street Walkway ($733.31) be reprogrammed and transferred to the Local Option account mentioned above. Page 3, Item Meeting Date10 28/86 Additionally, in FY 1981-82, the City Council appropriated $125,000 of CDBG funds for the design and construction of improvements to Harborside School playground/park. There is currently $105,851.19 of these funds remaining in Account #630-6300-BG110. A landscape architect hired by the City has designed the project which will include improvements to the playground, sand lots, fencing, parking lot, ballfields, picnic area and school frontage. Because of the strict documentation requirements and the necessity of paying Davis/Bacon wages for Block Grant funded projects and the lack of landscape contractors who pay prevailing wages to their workers, it is believed preferable to use funds which do not have such restrictions for the Harborside project. Following the City's annexation of Montgomery, the City received $149,900 in PAD funds from the County for the Montgomery area. It would be appropriate to fund the Harborside School Park development with these funds because, although the park is located within the pre-annexation City limits, it is surrounded on three sides by Montgomery and primarily serves people of the Montgomery area. It is recommended that sufficient PAD funds be appropriated from the PAD reserve fund to the Harborside Park project when Council awards the construction contract and the specific cost of the project is known. The freed-up Harborside Park CDBG funds could be transferred to any other project in the City that is eligible for CDBG funding. It is recommended that the CDBG funds set aside for the Harborside project be transferred to the Telegraph Canyon Creek Flood Control project, 630-6300-BG158, which is currently being funded with Block Grant dollars and Residential Construction Tax (RCT) monies. The transfer of Block Grant Funds would thus free up an equal amount of RCT funds in Account #600-6000-RC32, which could then be transferred to a high priority project for the Parks and Recreation Department. FISCAL IMPACT: The Supplemental CDBG funds, prior year reprogrammed CDBG funds would be budgeted in the following manner: Source of Funds 632-6320 632-6320 610-6000 BG152 BG142 RC32 Project CDBG Channel Palomar Telegraph Net (Account #) Supplemental Fence Street Canyon Total Shy Lane (New) $137,672 -- -- -- $137,672.00 Telegraph -- -- $105,851.19 $105,851.19 Canyon Flood Control (630- 6300-BG158) Local Option 9,328 $325.26 $733.31 10,386.57 (New) TOTAL $147,000 $325.26 $733.31 $105,851.19 $253,909.76 Page 4, Item 24 Meeting Date~T2~~ Additional County CDBG funds in the amount of $47,328 are also to be applied to the Shy Lane Project. The implementation of the Harborside School Park project is to be funded by PAD reserve funds designated for the E~lontgomery area. Sufficient funds would be appropriated from the PAD reserve funds when the Council awards the construction contract for the Harborside School Park Project. WPC 2537H ~, by the City C~ ~l.ancil of Chula Vista, C;~iifornia Dated ~~ ~ ~