HomeMy WebLinkAboutAgenda Report - February 15, 2006 K-06AGENDA ITEM 11r 6
AhCITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE: Review of CDBG/HOME Program Funding that has been allocated to LOEL
Foundation
MEETING DATE: February 15,2006
PREPARED B Y Community Improvement Manager
RECOMMENDED ACTION: That the City Council receives a report from the Community
Development Department regarding CDBGIHOME Program funding
that has been allocated to the LOEL Foundation.
BACKGROUND INFORMATION: What follows is a summary of the CDBGIHOME Program funding
activities that have taken place over the past ten years, pertaining to
the LOEL Foundation.
Previous Funding Allocations
1996 - LOEL Foundation Building Rehab
1997 - LOEL Foundation
1998 - LOEL Foundation - Building Rehab Project
1999 - LOEL Foundation - Interior/Exterior Renovation
2000 - LOEL Foundation - Sidewalk/Streetscape Project
2000 - LOEL Senior Center Program
2002 - LOEL Foundation - Parking Lot Project
2003 - LOEL Foundation- Minor Interior Rehab
2004 - LOEL Senior Housing - Buy -down 301 E, Oak
2004 - LOEL Senior Housing - Buy -down 301 E. Oak
2005 - LOEL Senior Housing -Acquisition 301 E. Oak
2005 - LOEL Senior Housing - Buy -down 303 E. Oak
$ 45,000 -Reallocated to 7998
$ 60,000 -Reallocated to 1998
$105,000 - Completed
$ 75,000 - Completed
$ 40,000 - Completed
$ 10,000 - Deemed Ineligible-Reallocatedto 2005
$ 72,199 - Completed
$ 22,908 - Not yet started
$202,681 (HOME Funds) —Completed
$100,109 (CDBG Funds) — Completed
$128,319 —Not Yet Completed
$161,609 — Not Yet Completed
Requested
2006 - LOEL Senior Housina-Acauisition 303 E. Oak $278,391
2006 - LOEL Senior Housing -Acquisition 331-33 E. Oak $330,000
Of those allocations listed above, only the following funding allocations are outstanding:
2003 - LOEL Senior Center Rehab $ 22,908
2005 - LOEL Senior Housing -Acquisition 301 E. Oak $128,319
2005 - LOEL Senior Housing -Acquisition 303 E. Oak $161,609
APPROVED:
BI ing, City Manager
Regarding the 2003 Rehab Project, we will need to walk the LOEL Foundation through the process of
soliciting bids/quotes, providing Davis -Bacon Labor Standards through the project specifications, getting
the required documentation from contractors before and throughout the duration of the project. The
LOEL Foundation does not have a Project Manager as most other City and larger projects do, so the
responsibility to ensure compliancewith Federal regulations falls to Community improvement staff. The
funding would be released to LOEL as a reimbursementfor their paymentto the contractoron the
project. In Staffs contact with the LOEL Foundation administrators, it was understood that the
reimbursement for acquisition costs for the 301 & 303 E. Oak Street properties was a priority, as they
were incurring additional costs until the reimbursementwas complete, so Staff advised that they would
handle that first and then follow up with the 2003 Rehab Project. LOEL Administration acknowledged this
priority.
Regarding the 2005 allocations for acquisition, the County has called into question certain aspects of the
acquisition of these properties and will not process further reimbursement requests until these issues are
resolved. The County's questions relate to:
• How is Farmers & Merchants Bank (FMB) determining the fair market value of the property to be
purchased; appraisal?
• What instrument is used by FMB to secure the "buy -down" portion of funds received from LOEL
for the 301 and 303 E. Oak Street properties?
• Is the property at 303 E. Oak Street vacant? If there are tenants, are they going to be displaced
after acquisition?
These questions raise concerns about potential relocation costs that would be due to residents of not just
the 303 E. Oak Street units, but also the 301 E. Oak Street units that were also funded by CDBGIHOME
funds. There was an issue with an eviction at the 301 E. Oak Street property this past year which shed
some light on the possibilitythat relocation costs may be due to at leastone residentthere. These
issues, which affect the previous allocations and the requests for funding currently under review, came to
the surface during the week of January 30th. Staff metwith the County on Thursday, February2"tl, in an
attempt to resolve these issues. At the completion of that meeting, it was agreed that the Countywill
need to meet with representatives from F&M Bank and the LOEL Foundation.
As of the date that this Council Communication is being prepared, a meeting between the parties has
been set for Friday, February 10th. The purpose of that meeting is not only to resolve these issues
brought up by the County, but also to arrange to have LOEL and F&M submit directly to the County, to
expedite the reimbursement of their 2005 funding. This will then allow our Staff to focus attention on
getting LOEL's 2003 Rehab Project underway.
FISCAL IMPACT: None.
FUNDING AVAILABLE: CDBGIHOME Program Funding
Ruby Pais Interim Finance Director
!Community Improvement Manager
Concurred
Randy atch
Community Development Director