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Home My WebLink About02/25/2008 B A K E R S F I E L D W f �--- Ken Weir, Chair John W. Stinson, Assistant City Manager Sue Benham For: Alan Tandy, City Manager Irma Carson Rick Kirkwood, Management Assistant AGENDA SUMMARY REPORT REGULAR MEETING OF THE BUDGET AND FINANCE COMMITTEE Monday, February 25, 2008 — 12:00 p.m. City Manager's Conference Room — Suite 201 City Hall, 1501 Truxtun Avenue, Bakersfield, CA The meeting was called to order at 12:03:52 PM 1. ROLL CALL Committee members present: Councilmember Ken Weir, Chair Councilmember Irma Carson Committee members absent: Councilmember Sue Benham Staff present: Alan Tandy, City Manager; John Stinson, Assistant City Manager; Rick Kirkwood, Management Assistant; Steven Teglia, Administrative Analyst III; Joshua Rudnick, Deputy City Attorney II; Nelson Smith, Finance Director; Donna Kunz, EDCD Director; Rhonda Barnhard, Assistant EDCD Director; Toni Crosby, EDCD Business Manager; Vince Zaragoza, EDCD Principal Planner Others present: Dr. David Goh, Garden Pathways; Karen Goh, Garden Pathways, Bob Prater, The Garden Community Center; James Geluso, Bakersfield Californian. 2. ADOPT JANUARY 28, 2008 AGENDA SUMMARY REPORT Adopted as submitted. 3. PUBLIC STATEMENTS None. AGENDA SUMMARY REPORT Page 2 BUDGET AND FINANCE COMMITTEE MEETING Monday, January 28, 2008 4. NEW BUSINESS A. Discussion regarding CDBG, HOME, and ESG Action Plan FY 08/09 — Donna Kunz Economic Development Direct Donna Kunz, summarized the Annual Entitlements received by the City through the U. S. Department of Housing and Urban Development (HUD). These entitlements help to improve the quality of life in low to moderate income neighborhoods. The HUD Community Development Block Grant Program (CDBG), HOME Investment Partnership (HOME) and Emergency Shelter Grant (ESG) entitlements for FY 2008-09 were allocated, reflecting a decrease from $5,144,518 to $4,981,250. Staff is projecting program income for CDBG in the amount of $20,000 and $150,000 for HOME. The total proposed budget for CDBG, Home, ESG for FY 2008-09 is $5,151,250. CDBG Proposed FY 2008-09: The total resources available for FY 2008-09 are $3,324,560. This amount includes the CDBG Entitlement of $3,304,560 and the project program income of $20,000. The total resources are allocated as follows: • Total Administration —20% CAP: $664,912. • Long Term Obligations: $402,317. These on-going, long term obligations are repayments of Section 108 Loans. • Public Services: $315,000. Services include graffiti removal in HUD eligible areas, the Bakersfield Senior Center, and Fair Housing. • CDBG Home Owner Rehabilitation: $400,000 — McDonald / Stockdale Sewer Assessment Grant Project. • Low-Mod Benefit - 70% of Entitlement: $40,000 — Boys and Girls Club of Kern County. • Housing and Slum and Blight Activities: $50,000 Net resources available for Capital Improvement Projects (CIP) are $1,427,331. Staff submitted the following proposed CIP's for consideration: • Central Park Restroom with Pump Station & Storage: $450,000 • Park Improvements — Millcreek Land Acquisition — 525 18th Street: $400,000. Staff proposes to acquire the property known as Catholic Charities on 18th Street. The structure will be demolished and the land will become part of the linear park plan. AGENDA SUMMARY REPORT Page 3 BUDGET AND FINANCE COMMITTEE MEETING Monday, January 28, 2008 • MLK Jr. Center— Roof Replacement: $300,000 • Q Street Streetscape — 24th Street to Truxtun — Phase I Design: 277,331 Donna Kunz provided a brief overview of the applications received for FY 2008-09. Twelve applications totaling $4,430,000 were received for Intra City Proposals for CDBG Assistance. Seven applications totaling $967,978 were received from nonprofit and private entities requesting assistance from various HUD Programs. Staff is recommending continued assistance to two nonprofit organizations, the Bakersfield Senior Center for operating costs, and the Boys and Girls Club for facility repairs. Due to internal capital improvements obligations currently underway, the City does not have the financial resources to consider large expenditures from other nonprofit organizations. Ms. Kunz suggests that for next year's budget, nonprofit organizations should consider requesting smaller contributions over a two year period. Home Investment Partnership (HOME The total funding available for FY 2008-09 is $1,680,027. This amount includes the HOME Entitlement of $1,520,921; $150,000 of projected program income; and $9,106 from the American Dreams Downpayment Initiative (ADDI). Proposed Housing Programs: Staff estimates the total Program/Project Costs ($1,630,027) and Direct Delivery ($50,000) for FY2008-09 to be $1,630,027. This amount includes $1.0 million in new construction for affordable housing in the southeast redevelopment project area; $218,829 in SEPA, DT & OTK Downpayment Assistance; $235,000 in HUD mandated Community Housing Development Organization (CHDO) sponsored projects; and $9,106 ADDI. Emergency Shelter Grant (ESGJ Staff proposes $146,663 in ESG to fund the Bakersfield Rescue Mission ($62,000); Bethany Homeless Shelter ($62,000); and Alliance Against Family Violence ($15,330). Also included is the 5% Administrative Cap of $7,333. Committee members unanimously approved staff's recommendations to move forward to full Council for approval. 5. COMMITTEE COMMENTS None. AGENDA SUMMARY REPORT Page 4 BUDGET AND FINANCE COMMITTEE MEETING Monday, January 28, 2008 6. ADJOURNMENT The meeting adjourned at 12:27:34 P.M. cc: Honorable Mayor and City Council S:\Council Committees\2008\08 Budget and Finance\February\February 25 Agenda Summary.doc