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City Council Meeting of March 1, 2005 CDBG Project 2005-2006 Page 2 of 3 Proposals that requested a combined total of $1,310,204 in CDBG funds; and the 21 Public Service Program Proposals that requested a combined total of $337,415 in CDBG funds. The Committee acknowledged that all of the proposals submitted for consideration were viable projects, and expressed disappointment that insufficient funds were available to allocate all or at least a portion of CDBG funds being requested. In addition, the Ad -Hoc Committee was also very concerned with the possibility that the CDBG Program would be eliminated in its present form and that there would be a significant reduction in receiving future CDBG funds, or no funding at all, for community improvement projects in the next fiscal year. Staff informed the Ad -Hoc Committee that based on correspondence received from the U.S. Conference of Mayors, the President's federal budget is proposing to consolidate the CDBG Program and 17 other existing federal programs (that contain their own separate and inconsistent eligibility criteria) into a single federal community and economic development program in fiscal year 2006-2007. The new Administration proposal would be entitled "Strengthening America's Communities Initiative," and would be administered under the U.S. Department of Commerce. After review and considerable discussion on the proposed projects, the Ad -Hoc Committee agreed to continue last year's precedent to recommend the funding of City sponsored projects. Based on an analysis of the four (4) City sponsored Public Service Programs, the Ad -Hoc Committee unanimously agreed not to recommend funding for any Public Service Programs, and to allocate the City's entire entitlement allocation to Construction type projects. The Ad -Hoc Committee then carefully reviewed the six (6) City sponsored Construction type projects, and after an in-depth discussion of each proposal, unanimously voted to recommend the funding of the three (3) CDBG projects listed on Attachment "B" ALTERNATIVES: The Council may reject the projects recommended for funding by the CDBG Ad -Hoc Committee and select alternative projects for funding. The County has requested that the City submit it's list of funding recommendations by no later than March 3, 2005, in order to meet their schedule for the 2005-2006 CDBG application submittal to the United States Department of Housing and Urban Development (HUD). Failure to submit a list of funding recommendations will delay receipt of federal funds to implement public service and community improvement projects. FINANCIAL IMPACT: The City's anticipated allocation of CDBG funds for fiscal year 2005-2006 is $518,000. All approved projects are 100% reimbursable from the CDBG Program. ENVIRONMENTAL IMPACT: There is no impact at this time. Environmental Assessments are required of all CDBG funded activities prior to implementation. CONFLICT OF INTEREST: - Gift Disclosure Requirements None. The CDBG Program is a federally funded program administered by the San Bernardino County Economic and Community Development (ECD) Department.