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HomeMy WebLinkAboutCDBG FY 2004/2005 ReprogrammingNo. 4 INTEROFFICE MEMORANDUM City of Palm Desert REQUEST: Approve Reprogramming of Community Development Block Grants from Food In Need of Distribution. SUBMITTED BY: Frankie Riddle, Senior Management Analyst DATE: April 14, 2005 CONTENTS: 1. Staff Report I. RECOMMENDATION: By Minute Motion, approve reprogramming of Community Development Block Grant (CDBG) funds in the amount of $188,435.00 which were previously awarded to Food In Need of Distribution (FIND) to the following organizations: Organization: No. 1 Joslyn Cove Senior Center No. 2 Catalina Garden Senior Community Room (RDA) No. 3 Episcopal Community Services (ECS) (Navajo Trails Project — Emergency Shelter) ABC Center TOTAL: 1I. EXECUTIVE SUMMARY: Reprogram Dollars: $80,000.00 $8,435.00 $75,000.00 $25,000.00 $188,435.00 Reprogramming of CDBG funds to the identified organizations will allow the expenditure of those funds originally designated to FIND during the FY 2004/05 Cycle. The above organizations were selected for various reasons: (1) Each project is currently underway or ready to commence work; (2) CDBG funds need to be expended as soon as possible; as a result the City does not have the time required for other organizations to move forward to this stage. Therefore, other organizations were not recommended; and City Council Staff Report April 14, 2005 (3) Due to extremely high construction costs, some organizations such as Episcopal Community Services (ECS) do not have the funds to cover their projects when bids received are more than the funds set -aside. In circumstances such as this, if additional funds are not provided, the organizations will not be able to proceed with the projects. The $80,000 designated to the Senior Center Project will replace the $70,000 of RDA funds that were approved to offset the demolition of the old storage shed and replacement of a storage area as part of the renovation project currently underway (this action was approved by Council at its meeting of January 13, 2005) and $10,000 to complete project overage. This action is being recommended due to the time constraint the City is currently under to expend the funds originally set aside for the FIND project. III. BACKGROUND: The Outside Agency Funding Committee, at its meeting of March 17, 2005, recommended approval to reprogram FIND funds in the amount of $188,435 to the above identified organizations in the given amounts. Since the original intent of the project was to fund the design and construction of a food distribution facility and the project is still in the very conceptual stages, the City needs to reprogram the aforementioned funds in order to stay in compliance with HUD guidelines related to the CDBG Program. However, the City and RAP are still working to bring this project forward. In order to bring a comprehensive plan before Council, there are specific issues and concerns that need to be addressed related to operating a food distribution facility. The City notified FIND that the CDBG funds for FY 2004/05 would be reprogrammed. As information, FIND has submitted an application for FY 2005/06 CDBG funding which will be considered as a new application. The Citizen's Participation process has commenced. Public Notice advertising the 30-day public comment period and the Public Hearing scheduled for April 14, 2005, was published on Thursday, February 17, 2005. Submitted By: Frankie Riddle Senior Management Analyst Depa ment Hexil. d: Robert P. Kohn Director of Special Programs Sheila R. Gilliga Assistant City Manager of Community Services Approv Carlos L. Orte Cityage Paul S. Gibson Director of Finance