HomeMy WebLinkAbout1998-04-28 - AGENDA REPORTS - FEDERAL FUNDING (2)AGENDA REPORT
City Manager Approval
Item to be presented by:
Michael P. Murphy
SUBSEQUENT NEED
DATE: April 28, 1998
SUBJECT: FEDERALFUNDING OPPORTUNITY
DEPARTMENT: City Manager's Office
RECOMMENDED ACTION
Request Representative Howard P. `Buck" McKeon to solicit funding for local
projects as part of the FY 1999 Departments of Veterans Affairs and Housing and .
Urban Development appropriations bill.
BACKGROUND
On April 23, 1998, Representative Howard P. "Buck" McKeon was notified that it
may be possible to include Member Requests for local projects in the FY 1999
Departments of Veterans Affairs and Housing and Urban Development
appropriations bill presently being considered in Congress. A final determination is
anticipated to be made within the next week regarding Member Requests and Mr.
McKeon has asked that Santa Clarita provide him with projects for inclusion in the
bill should the opportunity arise. Representative McKeon has requested that this
information be transmitted to his office by Wednesday, April 29, 1998.
In reviewing this issue with the City's Washington lobbyists, it appears that local
requests in the range of $500,000 to $2,000,000 have the best opportunity to receive
approval. City staff has reviewed several potential projects which fit within the
purview of the Department of Housing and Urban Development. Furthermore, the
project list reflects projects which already have City Council approval and
supplemental federal money would enhance the existing effort or create
opportunities to move already committed general fund dollars to other programs or
projects.
The following projects are identified as potential opportunity areas:
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1. Newhall Metrolink Station
The Newhall Metrolink Station project carries an overall cost of approximately
$5 million with a potential General Fund commitment of $650,000. This project
is particularly attractive as it is located in a HUD identified Low/Moderate
census tract, creating job opportunities and serving as a catalyst for future
development. A $500,000 request would significantly reduce the amount of
General Fund dollars for this project which could be used for other programs.
2. Sherzinger Lane Improvements
This project area, located in Canyon Country east of Sierra Highway and north of
Soledad Canyon Road, is in need of sewers and pavement improvements. The
City's Capital Improvement Program identifies an overall project cost of
$500,000 of which $250,000 comes from Gas Tax and $196,000 comes from
Community Development Block Grant Funds (CDBG). A $500,000 request
would allow the project to be totally funded and enable restricted funds to be
allocated toward other projects.
3. West Newhall Improvements
The City Council recently authorized a $2.3 million Section 108 HUD loan
request against an overall need of $4.2 million. The project improvements
include reconstruction and construction of curbs, gutters and sidewalks on a
multi -phased project. A $1,000,000 request would enable the already identified
project improvements to be completed in a more timely and cost efficient
manner. The Appropriations request would be in addition to the $2.3 million
loan already authorized by Council.
4. Hart High School Auditorium
The City has previously committed $380,000 in CDBG funds toward earthquake
repairs and reconstruction of the Hart High School Auditorium which carries an
overall cost of $1.8 million. Of that $1.8 million, approximately $900,000
remains unfunded. State Senator William J. "Pete" Knight has expressed an
interest in pursuing unfunded amounts through thestatebudget process. A
federal request could be made equal to the City's already committed amount or
an amount over and above the previous City commitment.
5. Child and Family Development Center
The City Council recently approved a $250,000 CDBG commitment ($50,000
annually for five years) to be matched by Los Angeles County.for construction of
a new facility. Although the overall cost is $3.2 million, project supporters
envision using the Santa Clarita/Los Angeles County financial commitment as
the foundation for an aggressive fundraising effort. A federal request could be
made equal to the City's overall commitment or an amount over and above the
previous commitment.
City staff believes that the first three projects provide the best opportunities for
timely completion of existing commitments, financial flexibility and project
flexibility should the federal negotiations yield changes in the amounts for each
project.
ALTERNATIVE ACTIONS
Make no federal request for funding.
FISCAL IMPACT
This action could result in increased revenues to the City from $500,000 to
$2,000,000.
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