TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: DIRECTOR OF PUBLIC WORKS

DATE: DECEMBER 5, 2006

SUBJECT: PROPOSED 2007-2008 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM

Staff Coordinator: Judy A. Huey, Senior Administrative Analyst

Attachment: Public Hearing Notice
Attachment:Exhibit “A” – Eligible Activities
Attachment:Exhibit “B” – Ineligible Activities
Attachment: REACH Program Statement and Description
Attachment:Home Improvement Program Brochure - PDF

RECOMMENDATIONS

1. Conduct a public hearing to receive citizen input on the proposed 2007-2008 Community Development Block Grant (CDBG) Program.

2. Approve the proposed CDBG projects and budget.

3. Authorize the Director of Public Works to execute agreements for CDBG projects with the Los Angeles County Community Development Commission.

FISCAL IMPACT

Approving staff’s recommendation authorizes the allocation of $267,623 in CDBG funds. This allocation includes $190,496 in 2007-2008 CDBG funds, $38,997 in the Unallocated Balance of Funds, and $38,130 of re-programmed FY 2006-2007 funds. Upon approval of the CDBG projects by the CDC, the project budgets will be programmed into the City of Rancho Palos Verdes’ FY 2007-2008 budget.

BACKGROUND

Each year, Community Development Block Grant (CDBG) funds are allocated to cities by the federal Department of Housing and Urban Development (HUD) which is administered through the Los Angeles Community Development Commission (CDC). Participating cities receive funding based upon the total number of cities participating in the County’s program, and a city’s commitment to provide housing, economic and community development opportunities which principally benefit persons of low and moderate income levels and/or aid in the prevention or elimination of blighted conditions.

The City of Rancho Palos Verdes has annually participated in the Los Angeles Urban County’s CDBG Program since 1986. Typically the City uses its CDBG allocation to fund the Home Improvement Program, the REACH Program for developmentally disabled youth and young adults, Americans with Disability Act (ADA) projects and

qualifying capital improvement projects. In order to continue its participation in the upcoming 2007-2008 program year (beginning July 1, 2007 through June 30, 2008) the
City of Rancho Palos Verdes must prepare and submit a summary of proposed CDBG projects, including descriptions and budgets, to the Los Angeles County Community Development Commission (CDC) by February 1, 2007 for review and approval.

Pursuant to federal requirements, this public hearing was noticed in the Palos Verdes Peninsula News on November 4, 2006 and November 18, 2006. A copy of the notice is attached to this staff report. Federal requirements also mandate that as a part of the hearing, the City Council and public be informed of the range of eligible and ineligible housing and community development activities that may be funded under the CDBG Program. A list of eligible and ineligible CDBG projects and activities are attached to this report as Exhibits A and B, respectively.

In addition, interested persons may review a copy of the federal eligibility guidelines at the City of Rancho Palos Verdes’ Public Works Department.

DISCUSSION

Description of Proposed 2007-2008 CDBG Projects

A combined total of $267,623 CDBG funds will be available for the FY 2007-2008 CDBG projects from the following sources:

Preliminary 2007-2008 CDBG allocation for RPV $190,496
Unallocated Balance of Funds for 2007-2008 $ 38,997
Balance from 2006-2007 Hesse Park ADA
Restrooms Project $ 38,130

Total CDBG funds available $267,623

It is recommended that the City Council approve the following proposed projects for the 2007-2008 program year:

1. CDBG Administration and Planning $ 19,049
Program administration funds are used for overall program
management, coordination, monitoring, reporting and evaluation
to meet CDC guidelines.

2. REACH Program $ 28,574
Funds will be used to continue operation of this program for
developmentally disabled students and young adults. A copy
of the REACH Program Statement and Description is attached.
The public service cap (which is a percentage of the new allocated
funds not including prior years’ funds) is limited to 15%.

3. Home Improvement Program $ 150,000
This program has been providing housing rehabilitation assistance
to low and moderate income homeowners since its inception in
in 1999. A copy of the Home Improvement Program brochure
is attached.

4. ADA Compliance-City Hall $ 70,000

Funds will be programmed for a future project to remove access
barriers at City Hall in accordance with the Americans with
Disabilities Act, (ADA). It is expected that the total cost for this
project will be approximately $70,000. Funds will pay for design,
engineering and construction costs for new walkways from the front
parking lot to the Building and Safety/Planning Department Building.
_________
Total FY 2007-2008 CDBG Funds: $ 267,623

In the event that actual CDBG funding levels vary from the $190,496 estimate, the proposed projects and budgets may be adjusted accordingly.

Respectfully submitted,

 

Jim Bell
Director of Public Works

Reviewed,

 

Les Evans
City Manager

Attachments:
Attachment: Public Hearing Notice
Attachment:Exhibit “A” – Eligible Activities
Attachment:Exhibit “B” – Ineligible Activities
Attachment: REACH Program Statement and Description
Attachment:Home Improvement Program Brochure - PDF