2003 AGN APR 01 I01 - Laserfiche WebLink

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CITY OF COLTON Item #1 AGENDA REPORT FOR COUNCIL MEFTING OF APRIL 1, 2003 TO: Uonole Mayor a ouncil FROM: David R. Zamora, C munit evelopment Director SUBJECT: Reprogramming of $146,314.84 of Community Development Block Grant (CDBG) Funds from the Colton Contingency Account to Two CDBG Eligible Projects DATE: March 24, 2003 BACKGROUND: The City's CDBG Contingency Account currently has an uncommitted balance of $169,638.55. Approximately $43,323.71 is derived from unspent funds of projects previously funded in the Fourth District and therefore are specifically reserved for any eligible CDBG project located only in the Fourth District. The remainder of the funds, approximately $126,314.84 may be allocated to any eligible project located in a CDBG target area census tract. The Engineering Department consolidated five (5) street improvement projects funded with CDBG funds and has issued a notice inviting bids. The total amount of CDBG funds allocated for the five projects is approximately $711,651. One of the five projects is "Street Improvements -Walters. Monroe, Vermont, Fur, Penn & Miller Streets." According to the City Engineer, the notice inviting bids includes additional streets that were not included in the original CDBG application, however are eligible. The notice inviting bids contains alternate bid items, which allows for the deletion of the added streets if the bid exceeds available funding. However, if additional funding is made available the city may be able to finance the full project. The City Engineer has therefore requested that the unreserved $126,314.84 available in the CDBG Contingency Account be allocated to the City's CDBG street improvements project. Regarding the $43,323.71 reserved for the Fourth District, the Park, Recreation and Family Services Department is requesting that $20,000 be allocated to the proposed, "Veterans Park/Luaue Community Center Improvements" project. This is one of the projects that was recently submitted for funding from the CDBG FY 2003-2004 Program Year, however, it was not selected. The proposed project would provide for the restoration of two picnic shelters located at Veterans Park and renovation of the landscaping and irrigation system located in front of the Pete Luque Community Center. DISCUSSION/ANALYSIS: The San Bernardino County Economic and Community Development (ECD) Department has verbally encouraged Cooperating Cities to allocate CDBG funds in city Contingency Accounts to eligible activities in order to assist the county with a positive drawdown rate. According to the county, the U.S. Department of Housing and Urban Development (HUD) has intensified its efforts to get grantees to increase expenditures of CDBG funds that are either not moving in a timely manner or are in un -obligated accounts. HUD is concerned that a large balance in the CDBG program will send Congress a mixed message and could result in either a smaller appropriation in the future or statutorily mandate automatic reductions for grantees and sub - grantees. Staff continues to maintain a positive working relationship with the County ECD Department, and is supportive of efforts that will advance the city's drawdown rate. The requested reprogramming of funds from the Contingency Account to the two referenced projects is a