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Home My WebLink About03/14/2002 BAKERSFIELD ~~ Mike Maggard, Chair Alan Tandy, city ~nager Harold Hanson Darnell Haynes, Assistant to the City Manager Mark Salvaggio AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMrI'rEE Thursday, March 14, 2002 4:00 p.m. City Manager's Conference Room 1501 Truxtun Avenue - Suite 201 1. ROLL CALL Call to Order at 4:06 p.m. Present: Councilmembers Harold Hanson and Mark Salvaggio Absent: Councilmember Mike Maggard, Chair 2. ADOPT FEBRUARY 21, 2002 AGENDA SUMMARY REPORT Adopted as submitted. 3. PUBLIC STATEMENTS 4. DEFERRED BUSINESS 5. NEW BUSINESS A. Staff report and Committee recommendation regarding acceptance of Financial Statements for Fiscal Year 2000-01 Transportation Development Act Funds Public Works Director Raul Rojas explained this is an audit of the Transportation Development Act Funds, which is routinely sent to the Committee for approval. The compliance audit is to ensure the monies have been spent on appropriate expenditures. The audit was clean and in compliance with generally accepted accounting principles. The Committee unanimously approved the Audit Report for FY 2000-01 Transportation Development Act Funds. (Committee Chair Maggard absent) ADOPTED AS SUBI'[[TT]Q) 01~ APRIL 18, 2002 AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Thursday, March 14, 2002 Page -2- B. Staff report and Committee recommendation on Fiscal Year 2002-03 Community Development Block Grant (CDBG), Home Investment Partnerships (HOME), and Emergency Shelter Grant (ESG) Annual Spending Plan Bakersfield is an entitlement City and expecting to receive approximately $3,110,000 in Community Development Block Grant (CDBG) funds, $1,411,000 in Home Investment Partnerships (HOME) funds, and $106,000 for the Emergency Shelter Grant (ESG) program, for a total of approximately $4,627,000 frOm HUD to improve Iow-income neighborhoods in the City. A Notice of Funding Availability was sent out to non-profits, agencies and City departments for possible projects for the next fiscal year. A total of 21 proposals were submitted from non-profits and agencies totaling about $8 million. City departments submitted 25 projects totaling $6 million to improve infrastructure in Iow-income neighborhoods. After reviewing all the proposals and projects, staff prepared a proposed budget and an action plan for the Committee's review and recommendation to Council. After the Budget and Finance Committee recommendations on the proposed plan for fiscal year 2002-03, staff will prepare a 30-day public notice identifying the proposed projects and requesting input and comments from the public as required by HUD regulations. The Notice will be published March 24, 2002. During the 30-day public notice period, two public meetings will also be held to receive input. The meetings are scheduled for April 16th at the Boys and Girls Club and April 18th at Martin Luther King, Jr. Community Center. The 2002-03 CDBG, HOME and ESG Annual Spending Plan will be on the May 8th City Council agenda for action and submittal to HUD no later that May 16, 2002. Funds will be released to the City by HUD on July 1,2002 for implementation. Economic Development Director Donna Kunz gave an overview of available funds and staff's recommended proposed spending plan for 2002-03 as outlined in the memorandum of March 8, 2002 included in the Committee packet. Committee Member Salvaggio supported the CDBG proposed spending, but requested staff to be diligent in trying to fund the remaining phases of the Public Works Capital Improvement Program funding for Pacheco Sewers. This was an annexed area and many homes do not have sewer service. Donna Kunz pointed out HUD has some new requirements regarding cities spending funds in a timely manner, so multi-year projects as we have done in the past, may have to be funded and completed in 24 months under the new regulations. Each item proposed for funding was reviewed separately by the Committee with staff. Mr. Dennis Wallace, Executive Director, Habitat for Humanity - Golden Empire, presented a letter to the Committee; however, he apologized as some of the facts quoted in the letter AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Thursday, March 14, 2002 Page -3- regarding City funding of $195,000 for job training are incorrect. He explained how their program works with volunteers, donated materials and funds to build houses for Iow-income families. The houses are sold to the families at no interest and no profit. A 20-year loan is made from a lender and house payments run just under $300 per month. To qualify you must have an income source from a job or disability. Corporations and churches donate approximately $50,000 per house. They have received HOME funds in the City's program for the last two years to buy land, pay building permits and school fees; however, Habitat for Humanity - Golden Empire was not recommended for funding in the 2002-03 proposed spending plan. He explained the merits of their program and asked the Committee to consider them for funding. Committee Member Salvaggio requested Mr. Wallace rewrite their letter summarizing their work and send it to the Mayor and City Councilmembers. The Committee discussed they would like' to find some funding for Habitat for Humanity. Staff recommended adding Habitat for Humanity - Golden Empire to the spending plan for $50,000 to purchase five lots. Since the Single Family Rehab is a year-around program, $50,000 could be taken from the HOME entitlement for Proposed Housing Programs, Single Family Rehab (est. 18 loans @ average of $24,000 each) total $431,000. This is a year- round program and if there are savings from the pool projects, the funds could be replaced in the Single Family Rehab program. The Committee unanimously approved staff's recommendation to add Habitat for Humanity- Golden Empire to the Annual Spending Plan for $50,000 as recommended by staff; moving forward with the public meetings and 30-day public notice to be first published on March 24, 2002; and forwarding the Fiscal Year 2002-03 Community Development Block Grant (CDBG), Home Investment Partnerships (HOME), and Emergency Shelter Grant (ESG) Annual Spending Plan to the Council at the May 8th meeting. (Committee Chair Maggard absent) 6. COMMI'R'EE COMMENTS 7. ADJOURNMENT The meeting adjourned at 5:03 p.m. Staff present: City Manager Alan Tandy; City Attorney Bart Thiltgen; Assistant to the City Manager Darnell Haynes; Public Works Director Raul Rojas; Economic Development Director Donna Kunz; Community Development Coordinator George Gonzales; Assistant to the Public Works Director Georgina Lorenzi; and ED/CD Business Manager Rhonda Barnhard. Others present: Dennis Wallace, Executive Director, Habitat for Humanity; Eileen O'Donohue, Habitat for Humanity; Laverne Mashado, Habitat for Humanity; Vanessa Perez, Cai State University Bakersfield; and Daniel Alvarado, Bakersfield College cc: Honorable Mayor and City Council DWH:jp S:\Damel~002Bud&FinanceCommittee~bfO2marl 4summa~y.wpd