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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: RECE, IED PO MADE A PART OF THE RECORD AT ��OVED d 2 MEETING L ITEM NO. % 3 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. MPM\0428agd