HomeMy WebLinkAbout08/20/2002, C3 - COMMUNITY DEVELOPMENT BLOCK GRANT AMENDMENT councit Mcefi tDm. 8-20-02
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C I TY OF S AN L U IS O B I S P O
FROM: Bill Statler,Director of Finance
Prepared By: Carolyn Dominguez, Accounting Manager
SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT AMENDMENT
CAO RECOMMENDATION
Reduce Community Development Block Grant (CDBG) funding for the Oceanaire-Huasna
neighborhood improvements by$14,869.
DISCUSSION
On February 19, 2002, the Council approved the 2002 CDBG program, which was based on the
County's estimated funding allocation for the City of $946,205. This funding was ultimately
included in the City's 2002-03 Budget adopted on June 18,2002.
However, after budget adoption, the County notified the City that the U.S. Department of Housing
and Urban Development (HUD) reduced the "urban county" total allocation by 1.6% from original
estimates. As a result, the City's final CDBG allocation was reduced by $14,869 on a proportional
basis. To facilitate a timely filing of the grant application, this reduction was applied to the
Oceanaire-Huasna neighborhood improvements project, reducing the CDBG portion of this project
(tree replacement and sidewalk repair) from $130,671 to $115,802. Accordingly, the purpose of
this item is to formalize this change.
As discussed below, no offsetting funding is recommended at this time. We recommend waiting
until the portion of the neighborhood improvements that will be funded from the CDBG program is
further along in the design stage to determine if supplemental funding will be needed.
FISCAL IMPACT
Based on the approved workscope for this project in the 2001-05 Capital Improvement Plan as well
as subsequent revisions resulting from the CDBG public hearing process, federal environmental
review and refined project scheduling, there are four distinct phases to this neighborhood
improvement project:
1. Removing problem street trees.
2. Resealing pavement and repairing curbs, gutters and driveways as part of the pavement
management plan for Pavement Area 5.
3. Replacing trees.
4. Repairing sidewalks.
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Community Development Block Grant Amendment Page 2
The most recent financing plan for this project calls for funding Phases 1 and 2 through the General
Fund as part of the City's ongoing pavement management program, with Phases 3 and 4 to be
funded through the CDBG program. The following summarizes the funding and status of these four
phases:
• Neighborhood Improvement
Gehi*M/Fund Via the Pavement Mana ement Program .
Phase 1:Tree Removal $ 52,000
Phase 2: Paving and Curb, Gutter and Driveway Repair 885,000
CDBG
Phases 3 and 4: Tree Replacement and Sidewalk Repair
Council-Approved Based on Original HUD Estimate 130,671
Proposed Based on Revised HUD Allocation 115,802
Phase 1: Tree Removal. The contract for tree removal was awarded on May 30, 2002 in the
amount of$48,600. Due to the subsequent reduction in the number of trees to be removed from 230
to 158 (72 fewer trees),the final cost of this work will be less than this.
Phase 2: Paving and Curb, Gutter and Driveway Repair. Authorization to solicit bids and
award the contract for this phase is a separate item on the Council agenda for the August 20, 2002
meeting.
Phases 3 and 4: Tree Replacement and Sidewalk Repair. Contracts for the two remaining
phases, which will be funded via the reduced CDBG allocation (from $130,671 to $115,802), will
be let once the paving and curb repair is completed. Since the number of trees to be replaced is less
than originally planned, this should reduce both the direct replacement cost as well as the related
cost for sidewalk repair. Moreover, final plans have not been prepared for this work, and we will
have a better idea of the funding needs for this project at that time. Accordingly, we recommend
waiting until then to see if we need supplemental funding to complete this project. If we do,we will
make a funding recommendation at that time.
CONCURRENCES
The Departments of Public Works and Community Development concur with this recommendation.
ALTERNATIVES
We could re-program the $14,869 from other CDBG projects. However, the proposed reduction is
consistent with the Council's previous funding priorities: during the CDBG public hearing in
February 2002, the Council reduced the proposed CDBG funding for this project ($140,000 to
$130,671) in order to fund higher-priority projects. Further, as noted above, it is possible that the
reduced funding may still be adequate to fund the proposed portion of the work.
G:CDBG/Budget Reduction Council Agenda Report 8-20-02
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