HomeMy WebLinkAbout1998-03-24 - AGENDA REPORTS - BLOCK GRANT 1998 99 (2)e
AGENDA REPORT
City Manager Approval
Item to be presented by:
Dennis Luppens
lMiit'18RI UDfMi
DATE: March 24, 1998
SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT 1998-99 ACTION
PLAN
DEPARTMENT: Administrative Services
RECOMMENDED ACTION
That the City Council (1) select Option Two, to be utilized in the 1998-99 Action Plan, (2)
approve the Action Plan, (3) direct staff to post the City's 1998-99 Action Plan for a period of
30 days for public input and comment, and (4) direct staff to execute and submit the City's
1998-99 Action Plan to the United States Department of Housing and Urban Development.
BACKGROUND
Annually, the City Council must approve the City's CDBG Action Plan to spend the coming
year's CDBG allocation. The 1998-99 estimated allocation is $922,000. The plan is created
under Federal eligibility regulations, community need, and input from public meetings.
The Action Plan for Program Year 1998-99 represents Santa Clarita's formal application for
Federal Assistance available through the CDBG Entitlement Program. Included within the
Action Plan is (1) a listing of proposed programs, projects, and activities that the City is
requesting be funded during the upcoming fiscal year, (2) signed certification required by HUD,
and (3) a description of the Public Participation Process that was facilitated by staff to gather
input from the community.
In developing the City's Action Plan, staff facilitated a public participation program that
included three community meetings throughout the City. In an effort to promote these
meetings, staff prepared bilingual promotional information that was placed at all City Hall
public counters and park sites, including the Newhall Community Center, and distributed to
local community groups, agencies, and residents. Additionally, staff published a series of public
notices and advertisements in the Signal newspaper and on cable television.
At this time, staff is requesting that the City Council review and approve Santa Clarita's
proposed 1998-99 CDBG Action Plan with one of the funding recommendations listed on the
following page. Once the City Council has reviewed and approved this proposed document,
staff will provide residents with a thirty (30) day period to review and comment upon the Action
Plan. Following the conclusion of this thirty (30) day review period, staff will then submit the
proposed 1998-99 Action Plan to HUD for their review and approval.
- A WE � endo ItUNINCU
CDBG 1998-99 ACTION PLAN
March 24, 1998 - Page 2
As stated previously, HUD has advised the City that its annual allocation is expected to be
$922,000 for the coming year. This is the third decrease in as many years. With the decrease
and HUD's 15% cap on funding grantees, there may be marginal impacts to their funding
levels. In addition, staff received more funding requests for other valley agencies. To wit, staff
is considering for Council's approval at a later date a more formal application process for
grantees during the 1999-00 CDBG Action Plan process. Because of the decrease in funding
and increase in requests, staff presents three funding utilization options described below.
OPTION ONE: This is essentially the same as last year's Action Plan but for the reduction
to our grantees and capital projects because of the lower allocation.
OPTION TWO: Matches the County to provide CDBG funds to the Child and Family
Development Center for a land purchase. Fifty thousand dollars ($50,000) per year for the
following five (5) years, totaling $250,000, would be allocated to the Center for land acquisition
and building construction. If support from the County or other agencies does not came
through, staff would recommend the $50,000 match be put into West Newhall CIP programs..
Under this option, the Center would forego this years request for $5,000 in public service funds,
and grantees would receive the same funding as the previous year.
OPTION THREE: This option pursues a Section 108 Loan for improvement in West Newhall.
It would provide $4.6 million in capital funds and fund phases III, IV, and V to complete the
West Newhall curb, gutter, and sidewalk program by the year 2001. The debt service would
be $505,055 annually for the next 15 years, and interest would amount to approximately $3
million. The result of this action lowers the funds available for the Handyworker program.
ion
9gion Two
OQtion Three
PL"ic Improvements
Public Improvements
Public Improvements
Hwdp"ker
$180,000
Handpmrker
$180,000
Handyvwrker
$151,249
West Newhall CIP
$476,304
West Newhall CIP
$427,029
W. Newkrall Debt Sev.
$505,055
Child & Family
$ 50,000
$ -
Public Services
Public Services
Public Services
CamlyService Center
$ 30,070
County Service Center
$ 31,000
County Service Center
$ 30,070
Senior Center
$ 46,560
Senior Center
$ 48,000
Senior Center
$ 46,560
SANE CAMP
$ 45,833
SANE CAMP
$ 47,250
SANE CAMP
$ 45,833
Mobile Dental tab
$ 6,063
Mobile Dental lab
$ 6,250
Mobile Dental tab
$ 6,063
Health Center
$ 4,850
Health Center
$ 5,000
Health Center
$ 4,850
Child & Family
$ 4,850
Child & Family
$ -
Child & Family
$ 4,850
Adrrinistration
Administration
Administration
Adrrinistr-don
$111,671
Administration
$111,671
Administration
$111,671
Fair Housing
$ 15,800
Fair Housing
$ 15,800
Fair Housing
$ 15,800
$922,000
$922,000
$922,000
CDBG 1998-99 ACTION PLAN
March 24, 1998 - Page 3
Following the Council selection of one of the above options, staff will include it in the 1998-99
CDBG Action Plan, submit it to HUD for approval, and be eligible to spend. approximately
$922,000.
ALTERNATIVE ACTION
Adopt funding utilization for Options One or Three.
FISCAL IMPACT
There is no impact to the City's General Fund. The purpose of this report is to adopt an Action
Plan to utilize the 1998-99 HUD allocation of $922,000 in CDBG Entitlement Funds. Above
staff listed three options from which the City Council may choose to utilize the funding.
ATTACHMENT
Proposed 1998-99 CDBG Action Plan (available in City Clerks's Reading File).
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