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HomeMy WebLinkAboutReprogramming CDBG Funds 08/26/2004REQUEST: SUBMITTED BY: DATE: CONTENTS: CITY OF PALM DESERT COMMUNITY SERVICES DEPARTMENT STAFF REPORT City Council approval to reprogram Community Development Block Grant funds to designated organizations in specified amounts. Frankie Riddle, Senior Management Analyst August 26, 2004 1. Staff Report Recommendation: By Minute Motion, approve the reprogramming of Community Development Block Grant funds in the amount of $193,094.54 to the following organizations: (1) Joslyn Cove Senior Center Project in the amount of $15,000, (2) Redevelopment/Housing's Senior Community Room in the amount of $168,813, and (3) Family YMCA, Jean Benson Child Care Center in the amount of $9,280.54. Executive Summary: City Council approval of the recommended reprogramming of CDBG funds in the amount of $193,094.54 will allow staff to move forward with expenditure of CDBG and will allow existing projects to move forward. If approval is not granted, the Family YMCA and Senior Center projects will not move forward. The City will then have additional unspent funds to reprogram with the added burden of awarding to a new organization(s) that may not be ready to proceed with a project. The City should only have $600,000 on the books as of March/April of 2005. This includes the FY 2004/05 allocation of $400,000. Discussion: The following programs/projects will be affected with the reprogramming of CDBG funds: • The Home Improvement Program: (HIP) has unspent funds in the amount of $168,813.00. The program was unable to expend FY 2003/04 funds due to repayment of loans and interest earned on loans. HIP funds in the amount of $168,813.00 will be reprogrammed to the Senior Community Room that will be part of the Senior Housing Complexes on Catalina (owned by Housing). This is a Redevelopment/Housing Project. • Coachella Valley Historical Society: Per HUD, this program is ineligible for CDBG funding unless the organization can verify that 51 % or more of the visitors are of low/moderate income. The Historical Society would have to survey a City Council Staff Report August 26, 2004 major percentage of visitors for income limits in order to obtain this information. This is unlikely to occur, as visitors would probably not be open to providing this information. Therefore, staff is recommending that the funds be reprogrammed. The recommendation is to reprogram the awarded $10,000 to the Joslyn Cove Senior Center Project. The Senior Center received bids for the room addition that was originally funded through CDBG in the amount of $50,000. The Health Care District also awarded funds in the amount of $80,000. However, the bids came in around $225,000 (that is $95,000 over the $130,000 budget). The Senior Center and City staff met with Doug Wall Construction to revise the project and associated costs. Plans are being modified based on new project design. This new design will only include the building expansion for additional storage space. With the modifications and adjusted costs it is anticipated that the project cost will be somewhere around $160,000. If the new project cost is within the anticipated range and the City awards the additional funds, the Senior Center will pay remaining funds, which could be around $15,000 to $20,000. • Family Services of the Desert: Initially the City awarded $5,000 to this organization to participate in the Ready Rides Transportation Program through SunLine; however, SunLine discontinued this service. Family Services requested that the funds be utilized for a "Child Abuse & Abduction Education Program," which staff approved. Staff has requested on numerous occasions that the organization provide required program information and to start expending funds; however, no information or billing was received. Public Service funds have to be expended within the year received. The deadline to expend these funds was June 30, 2004. These funds now need to be reprogrammed. The recommendation is to reprogram the awarded $5,000 to the Joslyn Cove Senior Center Project. This project is ready to go and needs additional funds (see comments above) and the City needs to expend CDBG funds. Total CDBG funds proposed to be reprogrammed to the Senior Center Project is $15,000. • Coachella Valley Rescue Mission: The City awarded $20,000 to the Rescue Mission; however, it was unable to expend the full $20,000. Total expenditure was $10,719.46 leaving an unspent amount of $9,280.54, which now needs to be reprogrammed. These were Public Service dollars that require expenditure within year awarded. The recommendation is to reprogram the $9,280.54 to the Family YMCA, Jean Benson Child Care Center Kitchen Renovation Project. The YMCA had the same experience as the Senior Center; the project cost came in well over the project budget. City staff, YMCA staff, Interactive Design staff, and Doug Wall Construction met to review plans and were able to reduce the cost of the project through material changes and the YMCA being able to perform part of the work (e.g., installing of kitchen cabinets). As a result, with the reduced cost, additional City Council Staff Report August 26, 2004 CDBG funds, and the YMCA picking up part of the cost, the project will be able to move forward. HUD only allows jurisdictions to have 1.5 years of funding on the books as of March/April of each year. The City's deadline is March/April of 2005. At which time the City should only have $600,000 on the books. This is determined based on the current allocation of $400,000 (FY 2004/05) and 50% ($200,000) for a total of $600,000. Since the above organizations/programs were unable to expend funds and there is an immediate need for those funds, staff recommends that City Council approve the recommendation as noted above. Submitted By: Frankie :'•dle Senior Management Analyst Department Head: Robert P. Kohn Director of Special Programs Sheila R. Gilliga Assistant City Manager Community Services Approval: Carlos L. Ort ;- a City Manager Paul S. Gibson Director of Finance/City Treasurer CITY COUNCIL ACTION: APPROVED DENIED RECEIVED OTHER MEETING DATE AYES: NOES: ABSENT: ABSTAIN: VERIFIED BY: Original on File with City Clerk's Offic