04-07-2020 - AGENDA ITEM 12 CONSIDERATION OF PROPOSED AMENDMENTS TO THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ACTION PLANAGENDA ITEM NO. 12
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AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: April 7, 2020
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF PROPOSED AMENDMENTS TO THE COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) ACTION PLAN
RECOMMENDATION:
It is staffs recommendation that the City Council take the following actions:
1. Approve the proposed amendments to the CDBG Action Plan as detailed in Table 1;
2. Approve the following Resolution:
RESOLUTION NO.2020-18 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE FISCAL
YEAR COMMENCING JULY 19 2019 AND ENDING JUNE 309 2020 (PROJECT NO. 19003)
BACKGROUND:
The City receives CDBG funds from the U.S. Department of Housing and Urban Development (HUD). The overall
objective of the federal program is to develop viable urban communities by providing decent housing and a suitable
living environment, and expand economic opportunities principally for low and moderate income persons.
On June 4, 2019, the City Council approved the City's FY 2019-2020 Action Plan, which describes how funds will
be used to achieve community development goals. According to HUD regulations, these plans can be amended at
any time, with proper notice. Due to COVID-19, HUD allowed the City to move this item under Consent.
DISCUSSION:
The contract for Project No. 19003 (Restroom Renovation at Senior Center) was awarded at the March 17, 2020
City Council meeting. The project consists of renovation of existing men's and women's restroom facilities,
accessibility improvements, replacement of partitions, accessories, lavatories, urinals, water closets, lighting, floor
slab, and finishes at the Senior Center Facility. The nature and extent of the renovations needed were greater than
originally anticipated when the project budget was prepared, which necessitated the request for the budget increase.
The award was contingent on approval of these amendments to the CDBG Action Plan. Funded by CDBG funds,
the City had approximately $167,600 remaining in the approved budget for this project. However, the estimated
cost of the project was greater than previously budgeted due to increased materials costs and the extensive work that
was needed. The balance of funding is to come from the re -programming of funds from
another CDBG-funded activity, Project No. 19005 (Senior Center Roof Replacement), which is proposed to be
canceled and moved to a later date.
As shown in Table 1 below, Amendment No. 1 proposes to cancel the activity of Senior Center Roof Replacement
previously approved in the amount of $231,902 in funding. Amendment No. 2 proposes to increase funding for the
activity of Restroom Renovation at Senior Center in the amount of $100,000.
TABLE 1
PROPOSED ACTION PLAN AMENDMENTS
Ci!y
HUD
Proposed
No.
Project
Activity
IDIS
Grant Funded
Approved
Proposed
Amended
No.
No.
Budget
Amendment
Budget
Center❑�
ni❑Senior
19005
Roof
638
B-18-MC-06-0532
$ 231,902
Cancel Pro ect
$ 0
Replacement
eiorC❑F�E�U�]
NE03
Renovation at
636
$ 30Q,000
Sstroom
Senior Center
These changes in CDBG-funded projects require amendments to the City's Action Plan, requiring a 30-day public
review period, as well as consideration by the governing body in a public hearing. The public review period began
on March 4, 2020. No comments have been received as of the writing time of this report.
The amendments require HUD approval. Prior to the award of contract, staff made HUD aware of how the City
intended to proceed. HUD advised staff that the project could be awarded contingent on HUD approval and that
related expenditures should not exceed the approved budget at the time of the award until the City receives the
HUD approval for the amendments.
LEGAL REVIEW:
The City Attorney's Office has reviewed the proposed resolution and approved it as to form.
OPTIONS:
The City Council has the following options:
1. Approve the staff recommendation
2. Provide alternative direction.
Prepared by: Kelly McDonald, Public Services Manager
Fiscal Impact
FISCAL IMPACT:
There is sufficient CDBG funding available to carry out the proposed amendments. There will be no impact to the
General Fund resulting from the Amendment. If not approved, another source of funding would need to be
identified to cover the cost of the project.
Attachments
Attachment 1 - Resolution 2020-18 (Budget Amendment)
Exhibit 1 - BA 044 - 2020-04-07 (Project No. 19003)
CITY COUNCIL GOALS & OBJECTIVES: Enhance City Facilities and Infrastructure
Respond to the Global COVID-19 Pandemic
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, ADOPTING A BUDGET
AMENDMENT FOR THE FISCAL YEAR COMMENCING
JULY 1, 2019 AND ENDING JUNE 30, 2020 (PROJECT NO.
19003)
WHEREAS, the City Manager, on or about June 18, 2019, submitted to the City Council
a proposed budget for the appropriation and expenditure of funds for the City for West Covina
for Fiscal Year 2019-20; and
WHEREAS, following duly given notice and prior to budget adoption, the City Council
held a public meeting on June 18, 2019, considered and evaluated all comments, and adopted a
budget for the fiscal year commencing July 1, 2019 and ending June 30, 2020; and
WHEREAS, during the scoping and bidding for the Cortez Park restroom is was
determined a budget was increase was needed due to the extensive nature of the required
renovations; and
WHEREAS, amendments must periodically be made to the budget to conform to
changed circumstances following adoption of the budget.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA,
CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The budget amendment relayed to Conymmity Development Block Grant
fiords for Fiscal Year 2019-20 reflected in Exhibit No. 1 attached hereto is hereby approved.
SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall
enter the same in the book of original resolutions and it shall become effective immediately.
APPROVED AND ADOPTED this 7th day of April 2020.
Tony Wu
Mayor
APPROVED AS TO FORM ATTEST
Thomas P. Duarte Lisa Sherrick
City Attorney Assistant City Clerk
I, LISA SHERRICK, Assistant City Clerk of the City of West Covina, California, do
hereby certify that the foregoing Resolution No. 2020-18 was duly adopted by the City Council
of the City of West Covina, California, at a regular meeting thereof held on the 7th day of Apa
2020, by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
Lisa Sherrick
Assistant City Clerk
Exhibit No. 1
CITY OF WEST COVINA
BUDGET AMENDMENT
BA # 044
Posted By:
Date Posted:
Date:
4/7/2020
Fiscal Year: 2019-2020
Requested by:
Kelly McDonald
Amount: $ 100,000.00
Dept/Div:
Public Services
Senior Center Restroom
(Project No. 19003)
FXDFNOTTURFS
Account Number
Dept/Account Description
Current Budget
Proposed
Amendment
Amended Budget
19005.131.7500
Sr Ctr Roof Replacement
231 902.00
231 902.00
19003.131.7500
Restroom Renovation at Sr Ctr
200 000.00
100 000.00
300 000.00
2EVENUES
Proposed
Account Number Account Description Current Budget Amendment Amended Budges
Estimated cost of Restroom Renovation at Senior Center Project No. 19003 greater than budgeted.
APPROVALS
City Council Approval Date (if required, attach minutes):
Dept Head Approval:
Date:
inance Director: Date:
unds Available? ❑ Yes ❑No
❑ Approval Not Required
Ity Manager: Date:
:omment: ❑ Approved ❑ Denied