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CITY OF SAN BERNCJDIN() - REQUEST FO COUNCIL ACTION
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Dept:
Community Development
Dir-..." -A~rlct: APPROVAL OF CDBG PROGRAM MIX
. OFF. FOR FISCAL YEAR 1989/1990
f989 FE8 -9 PM 2: 54
From:
Kenneth J. Henderson,
Date: February 7, 1989
Synopsis of Previous Council action:
None.
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Recommended motion:
Approve and adopt the FY 1989/1990 Community Development Block Grant
Program Mix and authorize staff to solicit proposals for same.
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Signature
Contact person: Ken Henderson/Edward Flores Phone: 5065
Supporting dati IUached: Staff Report Ward: 1-7
FUNDING REQUIREMENTS: Amount: N/A
Sourca: (ACCT. NO.) N/A
(ACCT. DESCRIPTION) N/A
Flnlncl:
Council Notl':
Agenda Item No. .:1,0
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CITY OF SAN BERN~DINO - REQUEST F~ COUNCIL ACTION
STAFF REPORT
On February 6, 1989, staff received notification from the U.S.
Department of Housing and Urban Development (RUD) that the FY
1989/1990 Community Development Block Grant (CDBG) allocation
will be $1,724,000 which is $66,000 more than FY 1989/1990
allocation of $1,658,000.
Based on this information, staff developed a Program Mix taking
into account prior Council actions and current Community
Development needs. FOllowing is a summary of the actions taken
by the Mayor and Common Council for Fiscal years 1987/88 and
1988/1989 and the Program Mix recommended by staff for FY
1989/1990:
Approved Approved Proposed
Cateaorv FY 1987/88 FY 1988/89 IT 1989/90
Public services (includes $ 258,000 $ 248,700 $ 258,600
Fair Housing)
Capital Improvements $ 600,000 $ 555,000 $ 631,600
Rehabilitation Loans $ 100,000 $ 150,000 $ 150,000
Employment Linkage $ -0- $ -0- $ -0-
Demolition $ 50,000 $ -0- $ -0-
Infill Housing $ 50,000 $ -0- $ -0-
Appropriated Reserve $ 313,648 $ 273,000 $ 339,000
Administration ~ 342.912 ~ 331. 000 ~ 344.800
Total: $1,714,560 $1,658,000 $1,724,000
The recommended allocation for Public services which includes
Fair Housing, is $258,600, fifteen percent (15%) of the grant
allocation and the maximum allowed by law. New federal
regulations now stipulate costs for Fair Housing to be funded
by either the Public Services category or the Administration
category. In view of the fact that Public services is tradi-
tionally the most competitive category with private non-profit
community based organizations, staff is recommending that the
Mayor and Common Council limit grant awards in this category to
a maximum of twenty thousand dollars ($20,000.00). If this
recommendation is accepted by the Mayor and Common Council, a
provision to that effect would be placed in the Public Notice
soliciting proposals. (The Common Council approved this
recommendation which was implemented with success during the
1988/1988 fiscal year.)
Staff is recommending $631,600 for Capital Improvement and
Infrastructure projects. In addition to the construction of
capital improvement projects, other eligible activities include
architectural and engineering services, building rehabilitaiton
and the acquisition and disposition of real property. It
should be noted that the Public Works and Parks, Recreation and
Community Services Departments have historically submitted
several applications for financial assistance in such areas as
sewers, street lighting, sidewalk construction, park acreage
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acquisition, park development and construction of community
centers. This "brick and mortar" category has been of
significant benefit to the City, especially in light of General
Fund budget constraints. Moreover, recent experience has shown
a rise in such requests from outside organizations.
The Neighborhood Rehabilitation Program (NRP) has experienced
increased activity this past year which has significantly
reduced previous fund balances. Because of the strength of
this program in addressing health and safety needs, upgrading
declining residential areas and providing an income generating
vehicle, it warrants consideration of funding to continue
meeting an important community need.
staff is also recommending a total of $339,000 for the CDBG
Appropriated Reserve Account. This fund is utilized to fund
mid-year projects, as appropriate, and to defray cost overruns
associated with CDBG-financed capital projects. For example,
over the last three (3) fiscal years, the Mayor and Common
Council have appropriated $2,891,386 in CDBG funds for capital
projects. Because a number of these projects are paid for in
1989 dollars, although originally funded in 1985, 1986 and 1987
dollars, a sufficient reserve is necessary to pay for these
additional costs, and to allow the Mayor and Common Council the
flexibility to address other community development needs during
the course of the fiscal year.
Under the administration cost category, staff is recommending
$344,800, twenty percent (20%) of the grant and the maximum
allowed by law. These funds support 3.5 full-time equilvalents
(FTEs), our housing consultant contract ($25,000 plus
expenses), one-half of the office rent and about forty-five
percent of all supplies and other miscellaneous offices
expenses.
No funds are being recommended for the Demolition, Infill
Housing and Employment Linkage categories, as sufficient fund
balances remain from previous years' allocations.
I recommend adoption of the form motion.
evelopment
KJH/ELF/lab/3039
February 7, 1989