City of Culver City, California
City Council Agenda Item Report
Meeting Date: 04/10/06 Item Number: A-3
AGENDA ITEM: Designation of Unallocated Community Development Block
Grant (CDBG) Funds to the Sherbourne Streetlight Replacement Project between
Washington Boulevard and Jacob Street for Program Year 2006/2007.
Contact Person/Dept.: Akil Manley/CAO
Lee Torres/PW
Phone Number: (310) 253-6015 /
(310) 253-5623
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [ ] Action Item: [X] Attachments: [X]
Public Notification: Master Notification List (04/05/06), Community Development Block
Grant (CDBG) Advisory Committee (04/05/06)
Department Approval:
Charles D. Herbertson (03/31/06)
CAO Approval: Martin R. Cole for Jerry B.
Fulwood (04/05/06)
City Controller Approval:
Marlee Chang (04/05/06)
RECOMMENDATION:
That City Council (the “Council”) tentatively designate unallocated CDBG funds,
totaling $58,292, to the Sherbourne Streetlight Replacement project for Fiscal Year
2006/2007.
BACKGROUND:
The estimated CDBG funds available for City projects for program year 2006/07
totaled $323,791. On January 23, 2006, the City submitted the following four Council
approved projects to Los Angeles Community Development Commission (LACDC)
for consideration for 2006/07 CDBG funding:
Council Recommended CDBG Projects
Priority 1: Senior Center Section 108 Loan Repayment $204,427
Priority 2: CDBG General Administration Authority $ 32,379
Priority 3: Disability Services Specialist $ 48,569
Priority 4: Washington Place Streetlight Replacement Project $ 38,416
Total $323,791
On February 1, 2006, the City received notification from LACDC that the Washington
Place Streetlight Replacement project was ineligible for funding. LACDC determined
the project service area did not qualify under Housing and Urban Development’s
(HUD) National Objective of Low/Moderate Income Area Benefit (LMA). To qualify
under the LMA guideline, fifty-one percent (51%) of the residents served by the
project must meet the minimum of low- and moderate-incomes of the HUD median
City of Culver City, California
City Council Agenda Item Report
income for Culver City’s Metropolitan Statistical Area (MSA). Because of the
project’s ineligibility, funds have not been allocated, leaving the City with an
unallocated CDBG balance of $33,018. The amount of $33,018 is the final number
set by the LACDC and it is less than the estimated $38,416. Also the City forwarded
$25,273 in program income to LACDC, increasing the City’s unallocated CDBG
balance to $58,292.
DISCUSSION:
HUD requires a minimum of seventy percent (70%) of allocated CDBG funds
awarded to a jurisdiction for a specific program year to be used for activities that
principally benefit low- and moderate-income persons, defined by eighty percent
(80%) or less of area median income. With the ineligibility of the Washington Place
Streetlight project, the City currently does not meet this threshold for program year
2006/07. Below are options the City can employ to allocate the remaining CDBG
balance for program year 2006/2007 to meet HUD’s low/mod threshold.
Option 1. Request New Public Improvement Projects for the 2006/07
CDBG Program Year
This option requires reconvening the CDBG Advisory Committee, public
hearing process, and Council approval, which will incur additional costs, such
as staff time. After Council approval, the newly proposed project would be
submitted to LACDC for consideration and allocation of the funds, this entire
process could range from 2 to 3 months to complete.
Option 2. Allocate the Unallocated Fund Balance to the Sherbourne
Streetlight Improvement Project for 2006/07 Program Year
With Council approval, staff would expedite the submission of the Sherbourne
Streetlight Improvement project for LACDC’s approval.
Sherbourne Streetlight Improvement Project
The Sherbourne Streetlight Improvement project, which is a priority of the Public
Works Department, consists of upgrading seven (7) existing streetlights on
Sherbourne Drive between Washington Boulevard and Jacob Street to current
standards. The existing streetlights are on a series, high voltage circuitry and will be
replaced with a new parallel, low voltage circuitry which will make the streetlights
more reliable and efficient. City staff will perform project design, construction
management, and construction inspection.
The project is in an area that meets the LMA guideline with fifty-eight percent (58%)
of the area residents to be served by the project meeting the minimum of City of Culver City, California
City Council Agenda Item Report
low/moderate incomes, defined by eighty percent (80%) or less of area median
income.
FISCAL ANALYSIS:
The total project cost of the Sherbourne Streetlight Replacement project is $85,000.
The unallocated CDBG funds, totaling $58,292, would be allocated to cover the
project construction costs, professional services, project management planning, and
construction management/administration associated with the project. The City will
also use State Gas Tax funds in the amount of $26,708 for this project. With this
option, the City meets the goal of using the most restricted funds for eligible projects
before using other funding.
Both items will be included in the Capital Improvement Project budget requests for
Fiscal Year 2006/2007.
ATTACHMENTS:
1. Staff Report, Agenda Item PH-1: January 23, 2006, Public Hearing Regarding
the Allocation of 2006-07 Community Development Block Grant (CDBG)
funds.
MOTION:
That the City Council approve the recommendation to designate unallocated CDBG
funds in the amount of $58,292 in Fiscal Year 2006/07 to the Sherbourne Streetlight
Improvement Project.
MEETING DATE 04/10/06
AGENDA ITEM Allocate and Appropriate Unallocated Community
Development Block Grant (CDBG) Funds to the
Sherbourne Streetlight Replacement Project
between Washington Boulevard and Jacob Street
for Program Year 2006/2007
ATTACHMENTS
Pages|109| Staff Report, Agenda Item PH-1 January 23, 2006, Public 1-5
Hearing Regarding the Allocation of 2006-07 Community
Development Block Grant (CDBG) fundsCity of Culver City California
City Council Agenda Item Report
Meeting Date 01/23/06 Item Number PH-1
AGENDA ITEM Public Hearing Regarding the Allocation of 2006-07 Community
Development Block Grant (CDBG) Funds
Contact Person/Dept Akil Manley Phone Number (310) 253-6015
Fiscal Impact Yes PS] No 0 General Fund Yes [X] No 0
Public Hearing [X] Action Item 0 Attachments [X]
Public Notification Master Notification List and CDBG Advisory Committee Members
and Alternates (01/19/06), Legal Notice was published in the Culver City Observer and
posted at various City locations (01/11/06)
Department Approval
Martin R Cole (01/19/06)
CAO Approval
Martin R Cole for Jerry B Fulwood
(01/19/06)
City Controller Approval
Marlee Chang (01/19/06)
RECOMMENDATION
consider approval of the Community
Committee s recommendation in the
the affidavit and notice of publication
or asks Council members if they have
and calls upon the public for comments
Hearing
takes the appropriate actions concerning
changes
program as a member of the Los Angeles
During that time the City has received
have been approved by the City Council
of the new Senior Center installation of
and upgrade of streetlights, and
with Federal accessibility regulations
Act (ADA) mandates CDBG funds have
Staff recommends the City Council
Development Block Grant (CDBG) Advisory
allocation of CDBG funds for FY 2006-07
PROCEDURE|109| Mayor seeks a motion to receive and file|109| Mayor calls on staff for a brief report
questions of staff on this subject|109| Mayor declares the Public Hearing open|109| Mayor seeks a motion to close the Public|109| City Council discusses the matter and
the recommendations or specifically approves
BACKGROUND
Culver City has participated in the CDBG
Urban County Entitlement since 1977
allocations in excess of $10 million, which
to fund such projects as the construction
wheelchair ramps/curb cuts installation
modifications to City facilities to comply
including the Americans with Disabilities
ICity of Culver City California
City Council Agenda Item Report
z-
also gone toward the administration of the CDBG program and to provide funding for
positions providing programs and services for people with disabilities
In compliance with requirements for citizen participation in the allocation of CDBG
funding, the Community Development Block Grant Advisory Committee (CDBGAC)
meets annually to discuss the allocation of CDBG Entitlement funds The CDBGAC
Orientation meeting was held on December 7 2005 and a Public Hearing was held
on January 4 2006 in which project recommendations were made by CDBGAC
Additional material is attached for review to further describe program regulations and
eligibility criteria Also included is a list of projects approved for FY 2005-06, as
recommended by the CDBGAC and the individual requests for CDBG funding
submitted by the various City departments
DISCUSSION
The CDBG funding estimate of $323 791 for 2006-07 reflects an 8% reduction from
the 2005-06 allocation Since FY 2001-02, due to the decrease in Federal funding
for the overall CDBG Program funds allocated to the City have declined by 17 5%
The actual 2006-07 allocation will not be known until late March, after the
submission of the City s CDBG application Of the total estimated allocation for
2006-07, $204 427 is earmarked for the repayment of the Section 108 Loan which
was used to partially fund construction of the City s new Senior Center leaving
$119 364 available to fund other CDBG projects CDBGAC made their
recommendations at their January 4 th public hearing as to how the remainder of the
funds should be utilized If the estimated allocation is not received at the anticipated
level the earmark will remain the same, as adjustments will be accordingly to
capital administration and public service project allocations
CDBG funding for public service projects is capped at 15% of the City s 2006-07
total allocation, while funding for general administration of the CDBG program is
capped at 10% Also as was the case in 2005-06, proposed CDBG projects must
meet the minimum budget of $10 000 to be considered
PROPOSED PROJECTS FOR 2006-07
The following are the recommendations of the CDBGAC for the allocation of 2006-07
CDBG funding
Priority 1 Senior Center Section 108 Loan Repayment ($204,427) Section 108
loan funding was utilized to partially construct the City s Senior Center The amount
earmarked for repayment of the loan in FY 2006-07 is $204,427 The payment isCity of Culver City California
City Council Agenda Item Report
taken directly from the City s allocation of CDBG funding The obligation to repay
this loan will conclude with the final payment in August 2014
Priority 2 CDBG General Administration Authority ($32,379) This project is a
priority of the Office of the Chief Administrative Officer whose staff, along with
Accounting Division staff has primary responsibility for the administration and
management of the City s annual CDBG funding allocation CDBG guidelines allow
the City to apply up to 10% of the entitlement funds for administration, which
includes administrative accounting and public participation costs The CDBGAC
recommends that $32 379 the full amount allowable under CDBG regulations, be
used for the reimbursement of all eligible costs associated with the administration of
the City s CDBG program
Priority 3 Disability Services Specialist ($48,569) The funding for this project is
a priority of the Parks, Recreation and Community Services Department and the
Disability Advisory Committee This position assists in the identification of available
community services, and implements conducts and facilitates services and
programs for Culver City residents with disabilities The full amount necessary to
fund this full-time position is $83 728 CDBGAC recommends funding of $48,569
the full amount allowable under CDBG regulations Please note that there is a
difference of $37 159 between the requested amount and the amount recommended
by the CDBGAC As with previous fiscal years the Committee requests the Council
backfill the position with General Fund dollars to make up the difference
Priority 4 Washington Place Streetlight Replacement ($38,416) This project is
the first priority of the Department of Public Works and consists of upgrading 34
existing streetlights and associated circuitry on the north and south side of the street
The CDBG funding request is $78 000 The matching fund will be $192 000 Gas
Tax funds The total estimated cost of the project for construction is $270,000
CDBAC recommends to partially fund this project in the amount of $38,416
OTHER PROJECT REQUESTS
Due to a lack of available CDBG funding for FY 2006-07, the CDBGAC was unable
to recommend the Hubbard Streetlight Replacement Project and the Sherbourne
Streetlight Replacement Project
The Hubbard Streetlight Replacement Project, which is the second priority of the
Department of Public Works consists of upgrading the 15 existing streetlights to
current standards The total CDBG funding request is $40 000 The matching fund
will be $130 000 Gas Tax funds The total estimated cost of the project for
construction is $170 000City of Culver City, California
City Council Agenda Item Report
1-
The Sherbourne Streetlight Replacement Project which is the third priority of the
Department of Public Works, consists of upgrading the 7 existing streetlights to
current standards The total CDBG funding request is $30,000 The matching fund
will be $55 000 Gas Tax funds The total estimated cost of the project for
construction is $85,000
FISCAL ANALYSIS
Approval of the CDBGAC s recommendations could result in an impact to the City s
General Fund The position of Disability Services Specialist can be funded through
CDBG at the maximum expenditure for public services, but leaves a need for
$37,159 that the CDBGAC requests be backfilled by the General Fund With
CDBGAC s recommendation to fund the Washington Place Streetlight project in the
amount of $38 416 matching funds of $231 584 in Gas Tax funding will be used, not
requiring General Fund monies
SUMMARY OF 2006 -07 CDBGAC FUNDING RECOMMENDATIONS
Priority Proiect Title Recommended Funding
Priority 1 Senior Center 108 Loan Repayment $204 427
Priority 2 CDBG General Administration $ 32 379
Priority 3 Disability Services Specialist $ 48,569
Priority 4 Washington Place Streetlight Replacement $ 38,416
TOTAL CDBGAC RECOMMENDATIONS $323,791
ESTIMATED AVAILABLE FUNDING $323 791
(Est Allocation + Unprogrammed Funds)
ATTACHMENTS
1 Proposed Resolution authorizing the filing of the City s 2006-07 CDBG
application
2 Minutes of the CDBG Advisory Committee Public Hearing conducted on January
4 2006
3 Approved CDBG Projects for 2005-06
4 2006-07 CDBG Public Information ReportCity of Culver City California
City Council Agenda Item Report|109| Memo from Akil Manley, Management Analyst / CDBG Administrator, regarding
Culver City Senior Center Project Section 108 loan repayment funding from the
2006-07 CDBG allocation|109| Memo from Armando Abrego Senior and Social Services Manager requesting
2006-07 CDBG funding for the Disability Services Specialist|109| Memo from Lee Torres, Associate Engineer, requesting 2006-07 CDBG funding
for streetlight replacement along Washington Place|109| Memo from Akil Manley Management Analyst / CDBG Administrator, requesting
2006-07 funding for General Administration
MOTION
That the City Council|109| Approve the 2006-07 CDBG projects, including procedures for accommodating
changes in antici pated CDBG funding and CDBG Advisory Committee
modifications, as set forth in this staff report (or as amended this evening), and|109| Adopt the Resolution authorizing the filing of the 2006-07 application for funding
from the Community Development Block Grant Program, including all
certifications, and|109| Designate the Chief Administrative Officer as the authorized City official to
execute and file all documents pertaining to the CDBG program, including
making minor adiustments to project funding to address the actual 2006-07
CDBG Allocation, and|109| Approve execution of the CDBG Reimbursable Contract with the County of Los
Angeles concerning Culver City s 2006-07 CDBG Allocation, subject to the
review of the City Attorney and authorize the Mayor to sign and the City Clerk to
attest thereto