CC - Agendas - City Council - REGULAR - 5/13/2014

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Agenda Item: Adoption of the 2014/2015 CDBG Annual Action Plan and adoption of Resolution No. 4224-1433 authorizing application for Community Development Block Grant funds The anticipated funding allocation for Program Year 2014 is $238,655. Of this amount, a maximum of 15% ($35,798) may be used for public service projects; 20% for administrative costs ($47,731) which include legal notification, advertisements, training, and personnel services. The balance ($155,126) can be used for public facility development, infrastructure, rehabilitation, renovation and/or housing activities that benefit low-to moderate-income persons. To be eligible for funding, one of three CDBG national objectives must be met: • The project must benefit low-to moderate-income persons or clientele • The project must eliminate slums or blight on an "area" or "spot" basis • The project must meet a recent "urgent" need that poses a serious and immediate threat to the health or welfare of the community and cannot be corrected with other sources of funding. Using the 2010-2014 Consolidated Plan and the CDBG national objectives as guides, the Citizens Advisory Committee held public meetings on November 13, 2013, March 5, 2014, March 12, 2014, and April 30, 2014, to discuss the applications and to formulate a recommendation to Council. The Committee recommends that the projects listed and described in Attachment 1 be funded with the anticipated PY2014 allocation award in the amount of$238,655. In addition to the Committee's recommendation, $100,963 of carry-over funds from previous budget years are still available for eligible projects. It is recommended that these carryover dollars be reprogrammed to fully fund public facility improvements for the Prescott Area Family Shelter and the Adult Day Care Center projects, for which the current working estimates exceed their PY2013 funded budgets. These two public facility contracts were bid, but only received one proposal each, both far exceeding the budgeted amounts. The cause appears to be that the original estimates provided by the applicants did not take into account the more active development environment now being experienced, resulting in higher costs. Both projects are beneficial to the community and would be appropriate recipients of the additional funding. The Citizens Advisory Committee discussed this additional allocation of carryover funds at a meeting on April 30, 2014. The Committee reviewed and approved the revised Annual Action Plan with the carry-over funds and projects. In addition to the two projects, there is also a potential to develop a single family housing emergency repair fund in the amount of $24,000 that could address Low-to-Moderate Income health and safety home repairs. Partnerships with local organizations serving in this capacity would be sought, with funding for emergency repairs allocated on a case-by- case basis administered by the City. If Council approves the use of carryover funds as described above, the total CDBG allocation budgeted through the Program Year 2014 Annual Action Plan would be $339,618. Allocations from this amount were presented at last week's public hearing (the May 6, 2014 Council meeting). 2