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HomeMy WebLinkAboutItem 12December 14, 2012 Lakeville imminmew 2013 Community Development Block Grant Application and Substantial Amendment to the 2010 CDBG Program Year Activities December 17, 2012 City Council Meeting Item No. Proposed Action Staff recommends adoption of the following motions: Move to adopt a resolution authorizing the submittal of the 2013 CDBG application in the amount of $103,950. Passage of this motion will result in the submittal of a 2013 CDBG Grant Application in the amount of $103,950 for funding the Housing Rehabilitation Loan Program, Property Acquisition and Clearance on a spot basis, and a Senior Transportation program. Move to adopt a substantial amendment to the Dakota County Community Development Block Grant Program for Federal Fiscal Year 2010 as described in Attachment A: Passage of this motion will result in the reallocation of the Senior Center Rehab activity to fund an Accessibility Planning activity, Accessibility Public Improvements activity, and a Senior Transportation activity. Overview The City has been informed that it will be receiving approximately $103,950 in CDBG funding in 2013. Use of these funds is contingent on the City submitting and receiving approval of an application that identifies activities that meet at least one of the federal objectives of either benefiting low /moderate income persons or eliminating slum and blight. A breakout of the recommended allocation is included in Attachment B. The City Council discussed several CDBG program activities at its November 26th Work Session, along with potential options for spending CDBG funds to meet HUD's federal program spend down timeliness requirements. The actions being requested are the next steps needed to establish general program activities as outlined in Attachment B, and will be used to assist the City Council in making future decisions related to the CDBG program. Primary Issues to Consider • How are CDBG program funds being utilized for eligible activities in Lakeville? (See Attachment B) • son Community and Economic Development Director Financial Impact: $ Budgeted: Y/N _Y Source: _CDBG Related Documents (CIP, ERP, etc.): _Attachments A and B Notes: Attachment A • Cancel the Lakeville Public Facility - Senior Center Rehab activity with a balance of $60,000. • Create the Lakeville Public Facilities Accessibility Planning activity with an original budget of $15,000 for the purpose of developing an analysis of ADA compliant needs in public facilities. • Create the Lakeville Accessibility Public Improvements activity with an original budget of $30,000 to design and implement ADA compliant improvements in public facilities. • Create the Lakeville Senior Transportation Public Service activity with an original budget of $15,000. Attachment B 2013 CDBG Application The Dakota County CDA requires that all cities submit applications with at least 50% of the proposed activities for 2013 being activities or projects that provide benefit to low /moderate income individuals. 2013 funding will be available July 2013 through June 2014. Staff recommends that half of the 2013 CDBG funding (estimated to be $51,975) be made available for the Housing Rehabilitation Loan Program. This is an ongoing program administered by the CDA, and the City has been allocating funding to this program for a number of years. Staff also recommends that the other half of the 2013 CDBG funding be split evenly between the existing spot acquisition and clearance program and a new senior transportation program ($25,988 and $25,987 respectively). The 2013 CDBG application is proposed to be submitted as follows: - Estimated amount available for Lakeville's 2013 total appropriation o $103,950 Housing Rehabilitation Program o $51,975 - Spot Acquisition and Clearance Program o $25,988 Senior Transportation o $25,987 CDBG Program Amendments The proposed program amendment is a part of Lakeville's plan to work with the Dakota County CDA to meet HUD's timeliness spend down requirements while funding the maximum amount of programs in Lakeville possible. The proposed amendments will be considered by the Dakota County Board at their January 8th, 2013 meeting. The CDBG program allows for flexibility to shift funds within program years to accommodate revised costs of program activities as they are developed and implemented. These budgeted amounts are placeholders created for the activities so that as the programs are developed, costs can be allocated within the CDBG program by the City Council as deemed appropriate. The action requested in the cover memo and described in Attachment A reflects the reallocation of the 2010 senior center rehab activity dollars ($60,000). These funds need to be reallocated within the same program year. The reallocated dollars are proposed to be shifted towards the creation of an Accessibility Planning activity ($15,000), Accessibility Public Improvements activity ($30,000), and a Senior Transportation activity ($15,000). As these activities are developed in 2013, funds are able to be shifted between the activities as necessary based on revised cost estimates. Future decisions on expending CDBG funds for these new activities will be brought before City Council prior to being expended. These program amendment budget numbers differ from the big picture activity numbers that were discussed at the November 26th Work Session. $15,000 is a starting budget number for the senior transportation services activity and can be increased or decreased within the CDBG program as the Council makes decisions on the range of the senior transportation services that can be offered. Examples of services could range from subsidizing transportation costs for monthly senior field trips, to providing specialty senior on- demand ride services. The $88,000 placeholder number originally discussed at the work session was derived from calculations that took into account additional program income from the sale of the senior center and a total amount needing to be spent by May 1st. It was also reflective of the remainder of funds that could be allocated to eligible programs to be spent prior to the May 1st deadline. In reality the actual budget number for senior transportation services will likely be much lower as scope of services and costs are better defined. The proposed CDBG Program Amendments are as follows: - Reallocate 2010 Senior Center Rehab Activity o $60,000 - Create Accessibility Planning Activity o $15,000 Create Accessibility Public Improvements Activity o $30,000 Create Senior Transportation Activity o $15,000 WHEREAS, the City of Lakeville is a participating jurisdiction with the Dakota County CDBG Entitlement Program for Fiscal Year 2013 (ending June 30, 2014); and WHEREAS, the Dakota County Community Development Agency (CDA) is a Subgrantee of Dakota County for the administration of the CDBG Program; and WHEREAS, the Dakota County CDA has requested fiscal year 2013 CDBG applications to be submitted by December 31, 2012, based on an allocation of funds approved in the Community Development Implementation Plan. NOW, THEREFORE, BE IT RESOLVED that the City of Lakeville hereby approves the following: 1. The Fiscal Year 2013 CDBG application is approved for submission to the Dakota County CDA. 2. The Mayor and City Clerk are authorized to execute the application and all agreements and documents related to receiving and using the awarded CDBG funds. 3. The Dakota County CDA is designated as the administrative entity to carry out the CDBG program on behalf of the City, subject to future Subrecipient Agreements that may be required for specific CDBG- funded activities. DATED this day of 2012. ATTEST: RESOLUTION APPROVING THE APPLICATION OF THE CITY OF LAKEVILLE FOR FISCAL YEAR 2013 DAKOTA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING Charlene Friedges, City Clerk CITY OF LAKEVILLE RESOLUTION NO. CITY OF LAKEVILLE Mark Bellows, Mayor