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HomeMy WebLinkAboutCDBG Reallocation of Funds From Episcopal Community to ABC RecoveryREQUEST: CITY OF PALM DESERT Community Services INTEROFFICE MEMORANDUM Reallocation of Community Development Block Grant Funds from Episcopal Community Services to ABC Recovery Center and Stroke Recovery Center. SUBMITTED BY: Frankie Riddle, Director of Special Programs DATE: November 16, 2006 CONTENT: 1. Reprogramming Matrix I. RECOMMENDATION: By Minute Motion, approve the reallocation of Community Development Block Grant (CDBG) funds in the amount of $28,965 from Episcopal Community Services (ECS) as follows: (1) ABC Recovery Center in the amount of $20,000, and (2) Stroke Recovery Center in the amount of $8,965. II. BACKGROUND: In May of 2006, Ms. Cydronia Valdez, Area Director of ECS made contact with City staff to request that CDBG funds from the Nightengale Manor Rehabilitation Project be reprogrammed to cover operational costs of the facility. She indicated that ECS was experiencing budgetary challenges related to the operation of the Nightengale Manor facility. Reallocating funds to cover facility operation costs would be considered public service funds vs. capital improvement funds, which fall under the 15% cap. Since the City previously awarded public service funds up to the 15% maximum, the request was denied. On June 7, 2006, the City received notice from ECS requesting that the grant be terminated stating that it would not have sufficient time or funds to undertake the rehabilitation project. Currently, there are three agencies that have not completed CDBG funded projects (1) ABC Recovery Center, (2) Stroke Recovery Center, and (3) Operation SafeHouse. All of the projects are at various stages of implementation. However, additional funds to ABC Recovery and Stroke Recovery will have a greater impact. City Council Staff Report Meeting of November 16, 2006 The ABC Recovery Center and the Stroke Recovery Center have capital improvement/ rehabilitation projects that were funded in FY 2005/06. Both agencies have received bid proposals on the projects and both exceeded the project budgets. Beverly Greer, Facility Administrator of the Stroke Recovery Center discussed the project and budget with the Board of Directors, who authorized additional funds to the project. Ivan Price, consultant for the ABC Recovery Center received proposals and awarded the contract; however, the contractor recently notified him that he would not be able to undertake the project due to issues related to his business. Ivan is in the process of rebidding the project. The ABC Board is committed to the project and will cover the balance between the project budget and project cost. Reallocating reclaimed funds will provide financial assistance to cover a portion of the fund shortage between the projects budgets and costs. Staff requests that City Council approve the reallocation of CDBG funds from ECS to the ABC Recovery Center and the Stroke Recovery Center as designated in the recommendation. Submitted By: Approval: FRANKIE RIDDLE' CARLOS L. OR GA DIRECTOR OF SPECIAL PROGRAMS CITY MANAGER SHEILA R. qI'LLIGA ACM/COMMUNITY PAUL GIBSON VICES DIRECTOR OF FINANCE CITY COUNCIL/ACTION: APPROVED ✓ DENIED RECEIVED OTHER MEETI AYES: {r r�l ierja_vi) NOES: A ABSENT: ABSTAIN: .P//f .l VERIFIED BY: Y // /" l Y I Original on File City Clerk's Office 2