title
CC - CONSENT ITEM: (1) Authorization to Accept Unallocated Community Development Block Grant (CDBG) Funds in the Amount of $145,403; and (2) FOUR-FIFTHS VOTE REQUIREMENT: Approval of a Related Budget Amendment to Appropriate the Grant Funds.
body
Meeting Date: February 24, 2025
Contact.: David Nauta/Public Works, Engineering
Phone Number: (310) 253-5606
Fiscal Impact: Yes [ X ] No [] General Fund: Yes [ ] No [X]
Attachments: Yes [ ] No [X]
Public Notification: E-Mail: Meetings and Agendas - City Council (02/19/2025)
Department Approval: Yanni Demitri, Public Works Director/City Engineer (02/05/2025)
_____________________________________________________________________
RECOMMENDATION
Staff recommends the City Council (1) authorize acceptance of unallocated Community Development Block Grant (CDBG) funds in the amount of $145,403; and (2) approve a related budget amendment to appropriate the grant funds (four-fifths vote required).
BACKGROUND/ DISCUSSION
The Community Development Block Grant program is a federal program through the United States Housing and Urban Development (HUD) that provides financial assistance to communities to address a variety of community development needs such as public facilities, infrastructure, and housing among other things. The City receives an annual formulaic distribution each year to advance eligible projects. Historically, CDBG allocations for a fiscal year are approved by the City Council the previous year in November, however, the actual amounts are determined by Los Angeles County in March of the following year.
In previous years’ capital improvement projects, there have been instances that the City has budgeted less CIP funds than the final awarded CDBG amounts or spent less budgeted CDBG funds due to contractors having a bid less than the engineer’s estimate. These factors have resulted in an accumulated unallocated CDBG fund balance of $145,403. The Los Angeles County Development Authority (LACDA) has contacted City staff, requesting these un-programmed funds be included in upcoming Capital Improvement Projects, otherwise the funds will lapse. The City has two eligible projects: the Sawtelle Boulevard Sidewalk Improvement Project (PS-011, 24/25) and the ADA Sidewalk and Curb Ramp Project (PS-011, 25/26). The LACDA prepares the necessary applications and reports to the U.S. Department of Housing and Urban Development (HUD) and other funding agencies. The agency provides monitoring and technical assistance to partner agencies to ensure that activities are compliant with all Federal, State, and local requirements.
FISCAL ANALYSIS
The unallocated grant funding was not included in the Adopted Budgets for Fiscal Year 2024-2025. Staff is requesting the City Council accept the grant funds and approve a related budget amendment to appropriate the funds into CIP Project No. PS-011 (CDBG Sidewalk Repairs) which can be found in the Capital Improvements Section of the budget book in the CDBG Grants Fund (Fund 428) on page 481. The budget amendment requires a four-fifths vote.
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Authorize acceptance of unallocated Community Development Block Grant (CDBG) funds in the amount of $145,403; and
2. Approve a related budget amendment to appropriate the grant funds to CIP Project No. PS-011 (four-fifths vote required).