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HomeMy WebLinkAbout06-13-2011 CDBG MinutesCDBG Minutes June 13, 2011 Page 1 of 4 CITY OF ORANGE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM COMMITTEE MINUTES WEDNESDAY, JUNE 13, 2011 6:30 P.M. Economic Development Conference Room MEMBERS PRESENT Eva Perez Fernando Rico Gina Scott Robert Tunstall MEMBERS ABSENT Mary Ellen Manning Alternate Darren Smith STAFF PRESENT Mary Ellen Laster Aaron Schulze I.CALL TO ORDER The meeting was called to order at 6:32 P.M. II.APPROVAL OF MINUTES – MARCH 16, 2011 Committee Chair Rico moved, seconded by Committee Member Perez, to approve the March 16, 2011, Minutes as presented. Motion carried, 4-0. III.DISCUSSION OF FY 2011-12 CDBG PROGRAM AND HOME PROGRAM FUNDING REDUCTIONS Ms. Laster informed the Committee that HUD’s final FY 2011-12 CDBG allocation for Orange will be $1,197,252, which is approximately 16 percent less than amount that was originally anticipated. She referred the Committee members to the updated financial data and informational pages, such as the Four-Year Funding Allocation History, Subrecipient Status Report, and Revised CDBG Program Committee Funding Recommendations. Mr. Schulze referenced the FY 2010-11 CDBG Subrecipient Status Report, noting that most of the agencies are on track with their spending of allocated funds. He advised that Olive Crest is behind in spending, noting they have spent a little over $5,000 of their $7,000 allocation from the Public Facilities category. He explained that the Assistance League of Orange will soon be outfitting the last of their students and will have depleted their funding allocation. He noted that the YWCA will most likely not be spending all its money this fiscal year, pointing out it has only assisted 16 people out of the proposed 22 people. CDBG Minutes June 13, 2011 Page 2 of 4 Ms. Laster stated that $135,235 of additional funding was recouped by pooling unused monies from Administration, Olive Crest, and ADA ramps; and explained that these additional monies can be placed in the Public Facilities category and can sufficiently cover those requests. (The total FY 2011-12 CDBG budget would be $1,332,487 when the additional funding is combined with the City’s FY 2011-12 allocation of 1,197,252.) The Committee members agreed to maintain the funding recommendations in the Public Facilities category because of pooling those additional funds. Ms. Laster stated that the reduction in funding leaves $16,418 to be put toward the Nonprofit Agency Public Services category, explaining that the Committee’s original recommendations now have to be amended. She mentioned that reducing City department funding would affect the General Fund and the City’s budget deficit and is not a favorable option. She highlighted the options for the Committee to consider, such as reducing the funding to each agency or eliminating some of the agencies from funding consideration. Committee Member Scott stated she would not support funding each agency with this reduced amount, pointing out that the CDBG reporting is labor intensive throughout the year and is not a financially efficient use of staff time. Committee Member Perez stated that she would support eliminating the funding for YWCA since it is not on track with spending its current allocations. Committee Member Scott reminded the Committee that one of the main goals of HUD is to prevent homelessness; and because of the limited funding this year, she would eliminate Lestonnac’s Diabetes Sanctuary Program request. Committee Chair Rico stated that he would support eliminating YWCA, Lestonnac, and either WTLC or Mariposa. Ms. Laster confirmed that one of the goals of HUD is to prevent homelessness; pointed out that both WTLC and Mariposa help the homeless population; and for that reason, she suggested at least one of those agencies be funded. Mr. Schulze stated that WTLC has always reported on time and that they typically exceed their goals. The Committee unanimously agreed to remove Lestonnac from funding consideration, noting its intent to concentrate on HUD’s goal to prevent homelessness. Committee Chair Rico stated that since YWCA is not currently meeting its goal, he would favor removing them from funding consideration. Committee Member Perez stated that she would support funding WTLC instead of Mariposa, pointing out that Mariposa doesn’t serve mainly Orange residents and that they charge on a sliding scale basis; and she also noted her CDBG Minutes June 13, 2011 Page 3 of 4 disappointment that some people referred to this agency had been turned away for assistance. Committee Member Scott stated she would support reducing funding to Friendly Center because of the large sum of money it received through the Homelessness Prevention and Rapid Re-Housing Program (HPRP). IV.RECONSIDERATION OF FUNDING RECOMMENDATIONS FOR FISCAL YEAR 2011-2012 CDBG PROGRAM AND HOME PROGRAM MOTION:Committee Member Perez moved, seconded by Chair Rico, to allocate a portion of $16,418 to the following nonprofit agencies: $5,000 to Assistance League of Orange --Operation School Bell; $6,418 to The Friendly Center, Inc. --Emergency Assistance and Supplemental Food Programs; and $5,000 to Women’s Transitional Living Center, Inc. (WTLC) -- Independence from Dependence. MOTION:Committee Member Scott moved, seconded by Committee Member Tunstall, to not fund the following nonprofit agencies: Lestonnac Free Clinic --Diabetic Sanctuary Program ($10,000); Mariposa Women and Family Center --Community Counseling Program ($7,500); and YWCA of Central Orange County --First Steps at Beverly’s House ($7,500). Committee Member Scott stated that these are worthy nonprofit agencies, but noted her disappointment there is not enough money to fund all the agency requests. Ms. Laster pointed out that the funding for the 2011-12 HOME Investment Partnerships Act Program has also been reduced, noting this money is received from HUD; and she stated these funds will go to the Administrative cap (10 percent), Community Housing and Development Organizations (CHDO – 15 percent), and Capital Developer Allocation (remaining balance), noting these funds are used for affordable housing projects. MOTION:Committee Chair Rico moved, seconded by Committee Member Scott, to authorize staff to allocate the FY 2011-12 Home Investment Partnerships Act Program funding as follows: Capital Developer Allocation, $430,770.75; CHDO, $86,154.15; and Administration, $57,436.10, for a total of $574,361.00. CDBG Minutes June 13, 2011 Page 4 of 4 Motion carried, 4-0. Ms. Laster advised that the revised recommendations will be considered by City Council on June 28th and noted that the application to HUD is due on June 30th. She added that the agencies will be advised of these recommended reductions/changes. IV. PUBLIC COMMENT None. V.ADJOURNMENT At 7:10 P.M. the meeting was formally adjourned.