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HomeMy WebLinkAbout1995-08-22 - AGENDA REPORTS - AMEND CDBG STATEMENT (2)AGENDA REPORT Manager Approval Item to be presented by: CONSENT CALENDAR DATE: August 22, 1995 SUBJECT: Amendment of CDBG Supplemental Appropriation Final Statement DEPARTMENT: Community Recovery Agency The Emergency Supplemental Appropriations Act of 1994 (Public Law 103-211) was designed to aid communities affected by the January, 1994 earthquake with needed disaster recovery funds. Of the $500 million appropriated in the Act, $452 million was immediately appropriated, with the remaining $48 million reserved for allocation after Federal Emergency Management Agency (FEMA) public facilities damage and Small Business Administration (SBA) business damage data became available. The U.S. Department of Housing and Urban Development (HUD) has informed staff that Santa Clarita's share of the $48 million reserve is $1,922,273. On January 10, 1995, the City Council approved the Community Development Block Grant (CDBG) Emergency Supplemental Appropriation Final Statement, a document which outlines how the City plans to spend $4,627,000 in emergency funds received from HUD. The additional $1,922,273 need to be treated as an amendment to the Community Development Block Grant Emergency Supplemental Appropriation Final Statement, which was approved by HUD last January. This item is requesting an amendment to this final statement, in accordance with the City's policy governing such amendments. In order to provide the Council with a recommendation on the use of these funds, staff reviewed the public input received during the original final statement process. The majority of those citizens who participated in that process felt that circulation system repairs were of the highest priority. The original final statement allocated $450,000 to this activity, an amount which the Engineering Department feels is inadequate to address the need. Therefore, staff recommends that these additional funds be allocated as follows: A. Citywide Hazard Mitigation/Circulation System Repairs and Improvements as allowed by 570.201 (c) / 570.208(b)(1)(I)(ii)-$1,537,819. This will allow the Engineering Department to repair a significant amount of earthquake damage to the City's streets and rights of way, as a measure to aid in the prevention of slums and blight. It is anticipated that these funds will be used primarily to address earthquake damage in the Newhall area, consistent with the City's Newhall Revitalization Plan. B. Program Administration as allowed by 570.206/570.208 (d)(4)-$384,454. This will provide for funds needed for plans, specifications, oversight, and management of the Supplemental Appropriation. In addition to this amendment, staff is seeking approval of a minor change to the same final statement. Although HUD did approve the document, their program staff noticed an element of the final statement which should be cleaned up. This change is minor and does not affect any programs identified or their funding levels, but in accordance with the City's policy on final statement amendments, City Council approval is being sought at this time. The change requested by HUD include the following: 1. Housing Program Implementation -Change the eligibility criteria from 570.206 (program administration criteria) to 570.201 (e) (public service criteria), which will not subject these funds to the planning and administration cap as they are currently. 2. Citywide Right of Way Safety Improvements -Change the national objective criteria from 570.208 (a) (1) (activities benefitting low and moderate income persons in a particular area) to 570.208 (c) (activities designed to meet community development needs having a particular urgency) in order to reflect the nature of the dangerous condition which was repaired utilizing this funding source. The Council identified two activities in the Final Statement designed to assist the business community with their recovery needs. These activities are Commercial & Industrial Rehabilitation/Reconstruction Program Development, and Commercial & Industrial Rehab ilitation/Reconstruction Grants and Loans. The City's Economic Development Manager reports that the needs of business community would be better served by providing infrastructure repairs in commercial and industrial areas. The following amendment is suggested: 3. Eliminate the Commercial & Industrial Rehabilitation/Reconstruction Program Development and Commercial & Industrial Rehabilitation/Reconstruction Grant and Loan activities, with a combined allocation of $750,000, and reprogram the allocated funds to Circulation System Repair as allowed by 570.201 (c) / 570.208 (b)(1)(1)(ii). It is planned that this activity will concentrate on the repair of Railroad Avenue and constitute the matching funds required by the Economic Development Administration's earthquake recovery grant to the City. RECOMMENDATION: Staff recommends that the City Council: 1. Increase estimated revenues account number 12-3562 in the amount of $730,046; and 2. Approve changes to the CDBG Emergency Supplemental Appropriation Final Statement, and; 3. Direct staff to prepare a public notice describing the changes adopted, and; 4. Direct staff to formally amend the final statement by transmitting a letter to the U.S. Department of Housing and Urban Development, indicating that the City has conducted its final statement amendment process and fulfilled its citizen participation requirements, and; 5. Appropriate $730,046 to fiscal year 1995-1996 as follows: Program Administration 12-5700-227 $192,227 Circulation System Repairs 12-5712-227 $537,819 Total $730,046 Note: The remaining funds will be allocated to the 1996-1997 fiscal year through the regular budget process as follows: Program Administration Circulation System Repairs Total emersupp\082295.agn 12-5700-227 $192,227 12-5712-227 $1,000,000 $1,192,227 Notice For Public Comment On Proposed Amendment to the. City's Final Statement -Use of Community Development Block Grant (CDBG) for the Emergency Supplemental Appropriation Notice is hereby given that the City of Santa Clarita will be receiving public comment for a period of seven (7) days from the date this notice is published, regarding a proposed amendment to the City's Final Statement of Community Development Block Grant (CDBG) Funds for Fiscal Year 1994-95. In accordance with CDBG regulation (24 CFR 570.305) and the City's adopted amendment policy, the City must amend its Final Statementwhenever it decides to substantially change the proposed location, funding, or beneficiaries of a project or activity. The City considers substantial change to be defined as any of the following: 1) the addition of a proposed activity which was not described in the adopted Final Statement. 2) the deletion of a proposed activity which was described in the adopted Final Statement. 3) a change in the activity location, scope, purpose, or beneficiaries from that which was described in the adopted Final Statement. 4) an increase or decrease of expenditures of more than 25% to a proposed activity in the adopted Final Statement. The City proposes to amend the CDBG Emergency Supplemental Appropriation Final Statement as follows: 1) Add Citywide Circulation System Repairs and Improvements activity as allowed by 570.201(c)/570(b)(1)(I)(ii) in the amount of $1,537,819, 2) Add $384,454 to the existing Program Administration activity. 3) Change the eligibility criteria on Housing Program Implementation from 570.206 to 570.201(e). 4) Change the national objective criteria onCitywide Right of Way Safety Improvements from 570,208 (a) (1) to 570.208 (c)• 5) Eliminate the Commercial and Industrial Rehabilitation/Reconstruction Program Development Activity. 6) Eliminate the Commercial and Industrial Rehabilitation/Reconstruction Grant and Loan Activity, 7) Reprogram the funds from the the two above activities into Circulation System Repair as allowed by 570.201 (c)/570.208(b)(1)(1)(ii). Citizens' wishing to comment on the proposed change to the Final Statement may mail written comments to: Sarona Becker, Administrative Analyst, City of Santa Clarita, 23920 Valencia Blvd., Suite 300 Santa Clarita, CA 91355.