SUBJECT:     COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) SECOND QUARTER MONITORING REPORT FOR THE 2002-2003 PROGRAM YEAR AND ADOPTION OF APPROPRIATION ORDINANCE AMENDMENTS IN THE COMMUNITY DEVELOPMENT BLOCK GRANT FUND

 

Council District: City Wide

SNI Area: City Wide

 

RECOMMENDATION

 

1.      Accept this second quarter report summarizing the status of CDBG projects and recommending corrective actions.

 

2.      Approval of an extension of the funding term for six months, from June 30, 2003 to December 31, 2003, for the following projects:

·        G13 Northside Community Center Expansion - Filipino-American Senior Opportunity Development Council, Inc.;

·        F87 Disabled Housing Preservation – Housing for Independent People, Inc.,

·        F89 Nursery Renovation Project – San Jose Day Nursery; and

·        F90 Franklin-McKinley School District Child Care - Franklin-McKinley School District.

 

3.      Approval of an extension of the funding term for one year, from December 31, 2002 to December 31, 2003, for the following project:

·        G43 Roosevelt Roller Hockey Rink Renovation project – Parks, Recreation and Neighborhood Services Department.

 

4.      Approval of the return of CDBG funds for the following project:

·        F91 Zoe-27 South 11th Street – Alliance for Community Care ($403,698).

 

5.      Adoption of amendments to the Appropriation Ordinance in the Community Development Block Grant Fund to do the following:

a.       Decrease the appropriation to Zoe-27th South 11th Street by $403,698

b.      Increase the Ending Fund Balance by $403,698.

 

 

BACKGROUND

 

On a semi-annual basis, a monitoring report is prepared on the projects provided by Community-Based Organizations (CBOs) and City Departments supported by CDBG funds, and for certain human services projects supported by the General Fund.  The report includes projects funded in 2002-2003 and other projects carried over from years prior to 2002-2003.  This report was reviewed and approved for recommendation to the City Council by the CDBG Steering Committee on February 24, 2003.

 

This report and its attachments provide the status of all CDBG funded projects and certain human services projects funded from the General Fund.  Attachment A highlights the performance of 44 public service projects in six categories: senior services, youth services, childcare, services for persons with disabilities, homeless/emergency assistance/employment and legal services.  A description of services provided and outcomes achieved is included.  Attachment A also describes the accomplishments of 67 Community Development Improvement programs in six categories: housing improvement program, program administration and planning, code enforcement, economic development, fair housing and physical improvements.

 

A total of 111 projects are included in the 2002-2003 Second Quarter Monitoring Report.  Of these, 88 (or 80%) met, substantially met, or exceeded their goals and 23 had outstanding issues.  Attachment C identifies those projects that have met, substantially met, or exceeded their goals, as well as those with outstanding performance issues.

 

For projects with performance issues, Attachment B provides a narrative that includes steps the project sponsor took to improve performance and recommended corrective actions where appropriate.  CDBG staff is working with project sponsors to resolve deficiencies.  In order to complete five projects mentioned in the recommendation section of this memo, approval to transfer funds or extend the funding term is requested.  Funding is being returned for two projects.

 

ANALYSIS

 

The two categories of CDBG projects are the Contractual Community Services and the Community Development Improvement projects.  Project performance is evaluated slightly differently for these categories as their goals and contractual obligations are different. 

 

Contractual Community Services (CCS) or Public Service Program

The 2002-2003 Second Quarter Monitoring Report contains information related to 44 CCS projects.  Of these programs, 40 met, substantially met, or exceeded their goals and four have performance issues requiring discussion.  Goals are considered substantially met if agencies meet approximately 90% of their numeric goals and submitted outcome measures.  All Public Service agencies were contractually required to submit results of outcome measures and a report analyzing those results.

 

Community Development Improvement (CDI) Program

The Community Development Improvement Program is comprised of construction and various “non-construction” (or non-physical improvement) projects.  The CDI category funds a total of 67 projects, 48 of which (or 72%) have met, substantially met, or exceeded their goals and 19 have outstanding issues.  The construction projects are considered as having met their goals if the construction time-line is on-schedule.  In some cases if the time-line was revised, a project is considered having substantially met its goals if it is back on target. 

 

The projects that are recommended for extension are listed in the Recommendation Section of this memo and are also identified in Attachment B (Projects with Outstanding Issues) and Attachment C (Monitoring Chart).  All CDI projects recommended for extension are discussed in the Projects with Outstanding Issues section of this report.  One project, G43 Roosevelt Roller Hockey Rink Renovation, is requested to be extended retroactively from December 31, 2002 to December 31, 2003.  All requests for funding extensions are made through the CDBG Steering Committee.  However, the Committee did not meet until January 2003, after the funding term for this project has expired.

 

CDBG funds for the rehabilitation of the residential care facility located on Zoe-27th South 11th Street are being returned because the property owner of the facility decided not to proceed with the project.

 

Funding for two related projects, F71 East San Jose Community Law Center Building and F80 East San Jose Multi-Service Center Project are being combined to allow for the construction and/or rehabilitation of 960 Remillard Court to be used as a multi-service center providing community, health, and economic development services to low-income San Jose residents.  These actions are included in the City Council agenda for April 8, 2003.

 

 

PUBLIC OUTREACH

 

This report was coordinated with all funded agencies, including City Departments.  The CDBG office used status reports provided by the agencies in preparing this report.  This report was also considered and approved by the CDBG Steering Committee in a meeting open to the public.

 

 

COORDINATION

 

This memorandum has been coordinated with the Budget Office and the City Attorney’s Office.

 

 

COST IMPLICATIONS

 

There is no cost implication to the General Fund. Projects are funded by Community Development Block Grant funds (Fund 441).

 

 

CEQA

 

Not a project.

 

 

 

LARRY D. LISENBEE

Budget Director

 

SARA L. HENSLEY

Director of Parks, Recreation  and Neighborhood Services