HomeMy WebLinkAboutFY 1988-89 Allocation of Funds Community Development Block Grant CDBG V CITY COUN+ 777--
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INTEROFFICE II€MO ALUM
CITY OF PALd ANSERT0Isti/ti-� CZ
ABSENT; •
DATE : March 10 , 1988 ABSTAI*.,a.
VERIFIED ____._
TO : CITY MANAGER , HONORABOti 11aRoflNkiM FI64S 0•F CITY
COUNCIL __
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FROM : ASSISTANT CITY MANAGER
SUBJECT: STAFF RECOMMENDATION FOR USE OF COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG) FUNDS FOR 1988-89
Recommendation:
That the City' s allocation of $ 116 , 000 of Community Block Grant
( CDBG ) funds for fiscal year 1988-89 be applied towards the
expansion of the Senior Center . With the condition that the
Senior Center obtain CDBG funds from Indian Wells and Rancho
Mirage and that it have a fully funded project .
Background:
The City Council on December 10 , 1987 authorized seeking bids
for the Senior Center addition . Such authorization was based on
the fact that $253 , 966 was available from CDBG program and a
representation from the Senior Center that there was a contractor
that would donate the rest of the project . The project at the
time was estimated by the architect at $590 , 000 .
I indicated to the City Council that such donations could be made
as long as the total project was in compliance with CDBG regula-
tions pertaining to payment of prevailing wages on total project ,
bonding and bidding requirements . These conditions were
communicated to the Senior Center . The Center contacted the
individual that had agreed to donate the labor and material for
the completion of the project and subsequently the contractor did
not come through as promised .
The current estimated cost by John Outcault , who is the architect
for the project , is $510 , 000 - the new estimate is a result of
revisions to the plans . There are $253 , 966 available for
the construction , therefore , a shortfall off $256, 034 exists .
Our recommendation is that the City of Palm Desert appropriate
its 1988-89 allocation which is $ 116 , 000 , which would still
leave a shortfall in the project of $ 140 , 000 .
Indications from Van Cadenhead , Executive Director of the Senior
Center , are that he has contacted the Cities of Indian Wells and
Rancho Mirage for their participation in the completion of the
Senior Center expansion . It is estimated that those cities may
be able to apply an additional $65 , 000 , which would still leave a
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shortfall of $75 , 000 .
In a meeting with Supervisor "Corky" Larson , County staff and
representatives of the Senior Center , the County indicated that
they would be agreeable to an advance , in this case approximately
$ 75 , 000 of the City ' s 1989- 90 CDBG allocation , so that the
project could be fully funded.
This recommendation is based on all these contingencies . If all
of the funding falls into place as planned , the Senior Center
addition will be funded in the following manner :
City of Palm Desert participation $306 ,885
City of Rancho Mirage participation 100 , 000
City of Indian Wells participation 42 , 081
County of Riverside participation 60 , 000
TOTAL $508 , 966
Carlos L . Ort4a REVIEWED & CONCUR :
Assistant City Manager
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0110
CITY MANAGER