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CC - Item 3A - Public Hearing on FYE 08-09 Annual Action Plan CDBG ProgramROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: MATTHEW E. HAWKESWORTH, ACTING CITY MANAGER DATE: MAY 26, 2009 SUBJECT: PUBLIC HEARING ON THE FISCAL YEAR 2008-09 ANNUAL ACTION PLAN AMENDMENT FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)PROGRAM SUMMARY A public hearing is being held tonight for review and approval of the City's amended Annual Action Plan for the period of July 1, 2008-June 30, 2009. The City has received notification from the U.S. Department of Housing and Urban Development (HUD) that Rosemead is expected to receive $306,851 from the American Recovery and Reinvestment Act of 2009: Community Development Block Grant. This funding, referred to as "CDBG-R," is separate from the regular, annual CDBG funds that the City receives every year. As a result of these additional funds, the City is required to amend its FY 2008-09 Annual Action Plan to include the proposed use of the CDBG-R funds. The City received $1,138,481 in CDBG funds for fiscal year 2008-09 (July 1, 2008 - June 30, 2009). The FY 2008-09 Annual Action Plan provides specific information about projects that are currently being funded as CDBG-eligible activities. Staff Recommendation Staff recommends that the City Council take the following actions: 1. Conduct a public hearing and take public testimony on the Annual Action Plan covering the period July 1, 2008 - June 30, 2009; 2. Approve the CDBG-R funding recommendations, authorize the submittal of the City's amended FY 2008-09 Annual Action Plan to the U.S. Department of Housing and Urban Development; and 3. Authorize the Interim City Manager to execute all appropriate and necessary documents to receive funding and implement approved use. ANALYSIS The CDBG program enables local governments to undertake a wide range of activities intended to create suitable living environments, provide decent affordable housing and create economic opportunities, primarily for persons of low and moderate income. The full range of CDBG-eligible activities and projects are eligible under the CDBG-R funds; however, the Recovery Act directs that priority be given to projects that can award contracts based on bids within 120 days from the date the funds are made available. ITEM NO. 31k APPROVED FOR CITY COUNCIL AGENDA: City Council Report May 26, 2009 Page 2 of 2 Having reviewed the activities identified in the Fiscal Year 2008-09 Action Plan, staff is proposing to amend this Plan to allow for the additional funding under the CDBG-R Program to be used as follows: Planning and General Administration Activities $30,685 Provide funds toward the payment of reasonable administrative costs and carrying charges related to the planning and execution of community development activities financed in whole or in part by CDBG-R funds. Targeted Public Works Project $276,166 Provide funds for projects involving various public improvements to curbs, gutters, sidewalks and streets in eligible low and moderate-income block groups based on an official designation of deteriorating and/or deteriorated area(s) as well as ADA improvements throughout the City. These revisions affect only that portion of the Plan dealing with activities and expenditures. PUBLIC NOTICE PROCESS Notice of the public hearing was published in the San Gabriel Valley Tribune on May 18, 2009, as well as through the regular agenda notification process. Prepared by: Michelle G. Ramirez Economic Development Administrator