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CC - Item 2A - Public Hearing regarding reallocation of CDBG and Home Funds fro FY 2002-2003 - Box 070I~ TO: HONORABLE MAYOR AND MEMBERS ROSEME CITY COUNCIL FROM: BILL CRO E, CITY MANAGER DATE: JANUARY 21, 2003 RE: PUBLIC HEARING REGARDING REALLOCATION OF CDBG AND HOME FUNDS FOR FY 2002-2003 Since FY 1994-1995, the City of Rosemead has participated in the federal CDBG program as a direct entitlement entity. On May 2002, the Rosemead City Council approved the CDBG and HOME budget for FY 2002-2003. That budget was based on anticipated costs of projects and anticipated resources. Because the budget was based on preliminary estimates, the City now needs to reallocate resources based on actual bids and/or revised estimates of costs for projects. The City has unexpended carryover funds from FY 2001-2002 to expend. Such funds cannot be expended for administration or public services, but can be expended on projects. In addition, the City's allocation of HOME administrative funds is less than that set aside by the Department of Housing and Urban Development (HUD). In addition, A & R Community Childcare will not be retaining its non-profit status; therefore, the public service project previously funded by the Council must be reprogrammed. Finally, the Rosemead Chamber of Commerce is requesting a modification of its project. Currently it is funded for an energy outreach program for low-to-moderate income households and to a business assistance program. The funds would be reprogrammed to a more proactive business awareness liaison program, operated by the City and cosponsored by the Chamber. COUNCIL JAN 23 2003 FrE~M No. Proposed CDBG and HOME Reallocation, FY 2002-2003, 2 The proposed reallocation changes are as follows: • Increase HOME Administration funds in the amount of $25,000 for operation of the Mortgage Assistance Program to allow for additional outreach (including lender outreach and regular press releases), staffing and preparation of a 2003 Lender Fair to encourage homeownership in the City. • Increase Commercial Rehabilitation in the amount of $50,000 to its previously funded amount. • Create a Business Awareness Liaison Program funded through CDBG dollars that will promote business development in the community. Funding for the project would be allocated as follows: o Unexpended carryover FY 2001-2002 CDBG funds in the amount of $15,000 for microenterprise development (for businesses with five or fewer employees) o Unexpended funds in the amount of $4,246.50 from FY 2002-2003 A & R Community Childcare for public service outreach to businesses in qualified areas o Move Unexpended funds in the amount of $5,000 from the Rosemead Chamber of Commerce's energy outreach program to a public service outreach for businesses who qualify. • Increase funding for ADA repairs to Parks from $110,500 to $315,000 using unexpended carryover funds from FY 2001-2002 • Funding for Concrete repairs to broken, damaged and uplifted concrete sidewalk and gutter to eliminate trip hazards and to provide ADA accessibility in the amount of $105,000 • Funding for Charlotte Avenue Tree Removal and replacement to allow the removal of Ash trees that pose a potential threat of personal injury and property damage with new trees and to plant trees where none currently exist in order to improve the area. Proposed funding in the amount of $44,000 in prior year unexpended CDBG funds. Proposed CDBG and HOME Reallocation, FY 2002-2003, 3 The following attachments are included in this report: A) Table of Proposed Reallocation B) Memo from City Engineer Regarding Concrete Repair, Tree Replacement and Park ADA Improvements C) Rosemead Chamber of Commerce and City of Rosemead Business Liaison Program Description D) Letter from A & R Community Childcare regarding 501 C (3) Status RECOMMENDATION Staff recommends, after public testimony, review and after any amendments, that the City Council approve the City's proposed reallocation of CDBG and HOME funds for FY 2002-2003 and authorize this as an amendment to the City's Annual Funding Plan. Exhfbit "A" UNEXPENDED CARRYOVER FY 2001-2002 AND PROPOSED REALLOCATION PROJECTS FY 2002-2003 Project FY 2002- 2003 Budget FY 2002-2003 Revised Budget Difference Administrative Cap;Projects Administration 185,000 185,000 0 Fair Housing 25,000 25,000 0 General Plan Amendment 75,000 75,000 0 iProjecu-Residential, Commercial-and-Infrastructure Code Enforcement 55,676 55,676 0 Housing Code Compliance 58,000 58,000 0 Residential Rehabilitation 250,000 250,000 0 Res. Lead Testing 35,000 35,000 0 Res. Lead Remediation 100,000 100,000 Res. Rehab. Activities 63,421 63,421 0 Commercial Rehabilitation 100,000 150,000 +50,000 Business Liaison - Microenterprise 0 15,000 +15,000 ADA Improvements 110,500 315,000 +204,500 Alley Paving 189,500 189,500 0 Charlotte Avenue Tree Removal/Replacement 0 44,000 +44,000 Concrete Repairs 0 105,000 +105,000 Street Lighting Project 450,000 450,000 0 Virginia Street 167,145 167,145 0 Public Services A & R Community Childcare 18,133 13,886.50 -4,246.50 Business Liaison 0 5,000 +9,246.50 Boys & Girls Club 24,600 24,600 0 Chamber of Commerce 10,000 5,000 -5,000 Family Counseling Center 58,061 58,061 0 People for People 16,698 16,698 0 Rosemead School District 12,134 12,134 0 Senior Nutrition Program 91,661 91,661 0 TOTAL INCREASE +418,500 Total CDBG available for reallocation: $772,713.40 less $418,500 (in reprogrammed funds) is $354,213.40 in funds available for future projects HOME ADMINISTRATIVE SET ASIDE : $55,900. Currently budgeted: $25,000. Recommended budget: $50,000 for increased outreach, Lender's Fair and staffing JAN. -21' 03 (TUE) 14:22 Exhibit TO: FROM: DATE: CITY OF ROSEMEAD ,E, MEMORANDUM TEL 626-307-9216 LISA BAKER, CDBG COORDINATOR KEN RUKAVINA, CITY ENGINEER NOVEMBER 14, 2002 SUBJECT: CONCRETE REPAIR, TREE REPLACEMENT AND PARK ADA IMPROVEMENTS Following is the cost breakdown for the subject project: 1. Concrete Repairs $105,000 Removal and replacement of broken, damaged and uplifted concrete sidewalk and curb and gutter citywide. This project is necessary to eliminate trip hazards and provide ADA accessibility, and to mitigate ponded water. 2. Charlotte Avenue Tree Replacement (Park/Hellman) $44,000 Removal of Ash trees that are aged and in dire need of removal due structural problems. This project is necessary to mitigate the potential for personal injury and property damage. New trees will be planted to replace those removed along with the planting of parkway trees where none currently exist in an effort to improve the aesthetics of the neighborhood and mitigate blighting conditions. 3. Park ADA Improvements $315,000 installation of rubber surfacing and play equipment and construction of walkways necessary to comply with ADA requirements. The improvements will be conducted at Rosemead Park, Garvey Park, Zapopan Park and Rosemead Community Center. P. 002 Exhibit "C" ROSEMEAD CHAMBER OF COMMERCE AND CITY OF ROSEMEAD BUSINESS AWARENESS LIAISON PROGRAM 2003 TIMEFRAME: PROGRAM START-FEBRUARY 1, 2003 STAFFING START-APRIL 1, 2003 FUNDING SOURCE : COMMUNITY DEVELOPMENT BLOCK GRANT BUDGET: $24,246 (02/01/03 thru 06/30/03) PURPOSE: A BUSINESS AWARENESS LIAISON WILL BE HIRED TO SERVE AS AN INTERPRETIVE ADVOCATE FOR AND ON BEHALF OF NEW AND EXISTING BUSINESSES (FOR-PROFIT AND NON-PROFIT) THAT WISH TO ESTABLISH A PRESENCE IN ROSEMEAD. UPON REFERRAL BY AN INSTITUTION (CHAMBER OF COMMERCE OR THE CITY) OR SELF-REFERRAL, THE LIAISON WILL CREATE A NEEDS PROFILE OF THE BUSINESS AND THEN IDENTIFY ANY GENERAL MUNICIPAL CODES, PLANNING/DEVELOPMENT ENTITLEMENTS AND STANDARDS, PUBLIC SAFETY, BUSINESS LICENSE/PERMIT REQUIREMENTS AND OTHER REGULATORY AGENCY ISSUES THAT APPLY TO THE ESTABLISHMENT, EXPANSION OR TRANSFER OF THAT BUSINESS WITHIN ROSEMEAD. THE LIAISON WILL WORK WITH ALL APPROPRIATE AGENCIES TO GATHER INFORMATION AND REPRESENT THE BUSINESS. THE LIAISON WILL ASSIST THE BUSINESS OWNER/MANAGEMENT IN COMPLETING ALL NECESSARY APPLICATIONS AND UNDERSTANDING REQUIREMENTS, RULES, LAWS AND REGULATIONS. THE GOAL OF SUCH PARTNERSHIP SHALL BE TO PROVIDE ROSEMEAD RESIDENTS WITH A WIDE RANGE OF QUALITY GOODS. PRODUCTS AND SERVICES LOCALLY. AN EMPHASIS WILL BE PLACED UPON BUSINESSES WHO SERVE NEIGHBORHOOD NEEDS THIS WILL IN TURN HELP TO CREATE NEW EMPLOYMENT OPPORTUNITIES AS WELL AS ENHANCE THE EXISTING JOB BASE. THE LIAISON WILL GATHER DATA. DEVELOP OUTREACH MATERIAL; CONDUCT EDUCATIONAL SEMINARS AND WORKSHOPS AND ESTABLISH AND MAINTAIN A NETWORK OF SUPPORT ORGANIZATIONS THAT MAY BE OF ASSISTANCE TO THE CLIENT. December 18, 2002 To: Michael Neal City of Rosemead 8838 E. Valley Blvd. Rosemead 91 770 Deal- Sir, This letter is to inform you that A & R Child Care Association is not retaining it's non-profit status as of December 31, 2002. We will operate affective January 1, 2003 as a for profit facility. Therefore, we will not is-, bill you after December 31, 2002. Thank you for all your help. It was greatly appreciated. Happy Holidays To All Of You! lam. ~ Uma Chander Project Manager 16115 High Tor Drive, Hacienda Heights, CA 91745