CC - Item 2B - Public Hearing - Regarding the proposed CDBG and Home Allocation for FY 1997-1998 .
M
.
.J. �1
nt
y��p =
74 staqp0rt�=
•
TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: FRANK G. TRIPEPI, CITY MANAGER
DA 1'h: APRIL 2, 1997
RE: r''- ?PUBLIC HEARING REGARDING THE PROPOSED COMMUNITY
, t' ,-' DEVELOPMENT BLOCK GRANT(CDBG)AND HOME ALLOCATION
1,_.,~- --.r, ., .,.,1
--_ = FOR FISCAL YEAR 1997-1998
Since Fiscal Year(FY) 1994-1995,the City of Rosemead has participated in the federal CDBG
program as a direct entitlement entity. In FY 1996-1997,the City became an entitlement entity
for the HOME program as well. In FY 1996-1997, the City's CDBG allocation is $1,557,000
and its HOME allocation will be $500,000.
As part of the overall budget process,the City must reprogram the FY 1996-1997 allocation
carryover which it anticipates will not be spent by June 30, 1997, and any anticipated income
received by its programs during the fiscal year. The total amount which is anticipated to be
available for the FY 1997-1998 budget, including reprogrammed amounts, is $2,367,752.
Fifteen percent(15%) of the City's current grant amount may be used for Public Service
Agencies (PSA's). For FY 1997-1998,the amount of funding available for PSA's is $223,500.
The City did not receive any new applications for funding. Staffs recommended funding levels
are for the non-profit organizations is for the same amount as last year. This leaves $5,506 in
discretionary funds for the Council to reallocate.
COUNCIL AGENDA
. :: APR,.O S 19
ITEM No. _Z---- 6
Proposed CDBG and HOME budget, 2
Included in this year's recommended budget is $150,000 for a Water Quality Improvement
Project. The City has received a proposal from Adams Mutual Water Company for$380,000 for
a new well project. The Water Company currently has two wells--one has collapsed and one is
closed due to nitrate infiltration. The Water Company is currently purchasing water from an
outside vendor. Staff is recommending $150,000 for the drilling of a new well at a 1,000 foot
depth.
Regarding the HOME allocation,the City Council has approved use of FY 1996-1997 funds for
the Garvey Avenue Senior Housing development. Staff is proposing that FY 1997-1998 funds
also be used for the Garvey Avenue development. Of the HOME allocation, 5%may be used for
Administration and 15%must be set aside for local non-profit housing development
organizations.
The City is still waiting for receipt of approximately$1.2 million dollars in CDBG funds which
are being transferred from the County's Letter of Credit to the City. Currently,the transfer has
been approved by the local and regional HUD office and has now been sent to headquarters in
Washington, D.C. for fmal approval. Once that funding is received, it will be programmed by
the City Council.
Since the City of Rosemead is an entitlement city,the City Council is required to conduct a
public hearing regarding projected use of funds. After publication of the Annual Funding Plan,
there will be a 30 day comment period prior to adoption by the City Council. All programs
outlined in the proposed Annual Funding Plan are in conformance with the City's stated needs as
addressed in the City's approved Consolidated Plan.
In order to receive the new allocation and spend the balance of the prior year's, the City must
comply with the certain requirements regarding presubmission. The requirements are:
1. Fulfill citizen participation requirements by conducting a public hearing to receive citizen
input regarding projected use of funds. -
2. Develop an Annual Funding Plan.
3. Publish the draft Annual Funding Plan for a 30 day comment period in order to receive
citizen input regarding the fmal document.
4. Hold a public meeting to receive citizen input regarding the Final Plan.
5. Adopt the Annual Funding Plan.
For your review and approval is the attached proposed budget for FY 1997-1998. Please note
that, due to grant reductions,there is less money available than in the last fiscal year. Funding
available for public service grants is based on 15% of the current year's grant. In order to meet
Proposed CDBG and HOME budget, 3
the requirements of the Annual Funding Plan, the draft Plan must be completed and published for
comment by April 13, 1997. The second public hearing and adoption by the City Council must
be conducted by the Council on May 13, 1997, in order to meettheHUD deadline of May 15,
1997.
•The following attachments are included: Table I, Anticipated CDBG and HOME funds; Table II,
Proposed Budget; Table III, Proposed HOME Budget; Table IV, Public Service Grant Requests;
Applications from Public Service Grant Agencies; Proposal from Adams Mutual Water
Company.
RECOMMENDATION:
1. Staff recommends, after public testimony,review and after any amendments, that the
City Council approve the City's proposed CDBG and HOME program and the projected
use of funds for Fiscal Year 1997-1998, and authorize staff to include this in the Annual
Funding Plan.
CDBG
Administration $168,000
Fair Housing 20,000
Code Enforcement 154,000
COPS 132,000
Residential Rehabilitation 250,000
Rehabilitation Inspections 96,000
Street Resurfacing 294,252
Valley Blvd. ADA Compliance 350,000
Lorica Street Reconstruction 200,000
Handicapped Accessibility Project 80,000
Commercial Rehabilitation 250,000
Water Quality Project 150,000
Public Service Agencies 223,500
Contingency (unprogrammed) 0
Total 2,367,752
HOME
Administration 25,000
Garvey Avenue Sr. Housing 400,000
Housing set-aside 75,000
Total 500,000
Proposed CDBG and HOME budget, 4
2. That the City Council, after public testimony, review and any amendment, approve and
designate funding for public service agencies for Fiscal Year 1997-1998, including the
$5,506 in discretionary funding, and authorize staff to include this in the Annual Funding
Plan.
3. That the City Council authorize the City Manager, or designee, to act as the official
representative of the City to submit the Annual Funding Plan, and all understanding and
assurances contained therein, and directing and authorizing the City Manager, or
designee,to act in connection with the submission of the Annual Plan, and to provide
such additional information as may be required.
TABLE I
ANTICIPATED CDBG AND HOME FUNDS
...........................................................
CDBG Grant
$1,557,000
•
Anticipated Carryover 775,000
Reallocated 6,835
Program Income 28,917
TOTAL FUNDS (CDBG) 2,367,752
HOME Funds • 500,000
TABLE II .
PROPOSED BUDGET
il!APPORRIPTINRINPMEN
Administration • • •• $168,000 $168,000
•
Fair Housing 20,000 20,000
Code Enforcement - 100,250 • 154,000
COPS 73,100 132,000
Security Bars Compliance 20,000 0*
Residential Rehabilitation 290,000 250,000
Rehabilitation Inspection 84,000 96,000
Street Resurfacing 450,000 294,252
Abilene Street 150,000 0
Valley Boulevard ADA 350,000 350,000
Compliance
Lorica Street 250,000 200,000
Handicapped Accessibility 77,000 80,000
ADA Compliance Project 130,000 0
Blight Removal 10,000 0
Commercial Rehabilitation 225,000 250,000
Water Quality Project 0 150,000
Public Service Grants 250,455 223,500
Contingency • 9,113 0
TOTAL 2,656,918 2,367,752
*Project complete at end of this fiscal year
TABLE III
PROPOSED HOME BUDGET
Administration (5%) $25,000
Garvey Avenue Senior Housing 400,000
Set Aside for non-profit community housing development corps. 75,000
(mandatory)
TOTAL 500,000
TABLE IV
PROPOSED PUBLIC SERVICE GRANT FUNDING .
...................................................... ..................... .....................�:'....�iD ANG:................. . . .. .. ............:::.:::::::::.�::::::::::..::::::.:::::::::::::.:
.........................................................:::.........:...........:............:::...........:................
Senior Nutrition 115,064 80,000* 80,000
Rosemead Boys & Girls 24,600 24,600 24,600
Juvenile Diversion Program 45,390 (1,810 General Fund) 76,782 48,000
Family Counseling Services 40,000 45,000 40,000
Rosemead School District 12,134 25,000 12,134
Asian Youth Center 4,127 17,907 4,127
A & R Childcare 9,133 47,971 9,133
Discretionary Funds** 0 5,506 5,506
TOTAL 250,448 322,766 223,500
* Senior Nutrition Program is averaging $75,000 +/-per year over the last two years.
**Total funding available is $223,500, which can be spent on Public Services