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Home My WebLink About6.k. Approval of CDBG Resolution FY2016EXECUTIVE SUMMARY City Council Meeting: December 15, 2015 AGENDA ITEM: Approval of CDBG Resolution FY2016 AGENDA SECTION: Consent PREPARED BY: Kim Lindquist, Community Development Director AGENDA NO. 6.k. ATTACHMENTS: Resolution, CDBG Status Report May 2015, Amendment Request Form APPROVED BY: ddj RECOMMENDED ACTION: Motion to Adopt a Resolution Approving the 2016 CDBG Application and Major Amendment SUMMARY Every year the City is allocated approximately $50,000 Community Development Block Grant (CDBG) funds. This money comes from the Federal Government and is disbursed through the Dakota County CDA. In the past several years we had used our allocation to make ADA improvements to public facilities such as the Ericson Shelter, sidewalks along Connemara and steps and sidewalks at the Steeple Center. For program year 2015, the City will be making ADA improvements to the Central Park Shelter. For 2016, staff is recommending utilizing the funds for well sealing. The Engineering department is looking at sealing two previous municipal wells which are currently located on private property. There are no records that the wells have been sealed. Staff is aware other well sealing is also being considered at the Connemara water tower, however that activity would not be an eligible expense since some of the work has begun. The 2016 allocation would not become available until July 1, 2016. No work, including any contracts can be entered into prior to that date. Along with the 2016 application, the CDA will be undertaking an amendment to the previous project allocations. In 2012, the City designated its allocation to a weatherization program to be run by the CDA. Those funds have not been used as quickly as anticipated and the City is now in jeopardy of losing the remaining allocation, approximately $19,000. Additionally, there is approximately $100,000 for ADA sidewalk improvements, not all which will be spent with the work recently completed. The CDA will be processing an amendment to transfer some of that funding so that the “oldest” allocations can be used for recent activities so that the City doesn’t lose any funds. The federal government recently changed the rules of the CDBG program so the carryover time period cannot be as long as previous. In summary, the CDBG funding will reimburse the City for all the sidewalk work completed in fall of 2015, along with some engineering/project management costs. Additionally, there is funding for those Rosemount residents in the queue for the weatherization program. The remainder of the funds will be allocated to the Central Park ADA project and for the future well sealing project. This amendment change should bring the City into compliance with the Federal rules for spenddown and timing. 2 CONCLUSION & RECOMMENDATION Staff is requesting approval of the attached resolution of support for allocation of 2016 CDBG funds for well sealing. Additionally, this item is to notify the Council that monies previously allocated for eligible expenses are being amended to ensure that we can utilize our allocation and not be penalized for untimely expenditure. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2015 - A RESOLUTION APPROVING THE APPLICATION OF THE CITY OF ROSEMOUNT FOR FISCAL YEAR 2016 DAKOTA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING AND A MAJOR AMENDMENT WHEREAS, the City of Rosemount is a participating jurisdiction with the Dakota County CDBG Entitlement Program for Fiscal Year 2016 (ending June 30, 2017); and WHEREAS, the Dakota County Community Development Agency (CDA) is a Subgrantee of Dakota County for the administration of the CDBG Program; and WHEREAS, the Dakota County CDA has requested fiscal year 2016 CDBG application to be submitted by January, 2016, based on a district formula allocation of funds approved in the 1984 Community Development Implementation Plan NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Rosemount hereby approves the following: 1. The Fiscal Year 2016 CDBG application is approved for submission to the Dakota County CDA. 2. The Mayor for the City of Rosemount is authorized to execute the application and all agreements and documents related to receiving and using the awarded CDBG funds. 3. The Dakota County CDA is designated as the administrative entity to carry out the CDBG program on behalf of the City of Rosemount, subject to future Subrecipient Agreements that may be required for specific CDBG-funded activities. BE IT FURTHER RESOLVED that the City Council of the City of Rosemount hereby approves amendments to the 2012, 2014, & 2015 program budgets to assist in meeting spenddown compliance. ADOPTED this 15th day of December, 2015, by the City Council of the City of Rosemount. _________________________________ William H. Droste, Mayor ATTEST: ___________________________________ Clarissa Hadler, City Clerk ROSEMOUNT CDBGSTATUSREPORT --- FUNDBALANCES 31-May-15Quarter4FFY2014 Activity2011201220132014TotalPercent PublicFacility - ADAProject/Sidewalk$800.89$49,767.28$51,554.00$102,122.1778.8% WeatherizationPlus $27,477.99$27,477.9921.2% TOTAL (byyear)$800.89$27,477.99$49,767.28$51,554.00$129,600.16100.0% TOTALBUDGET 48,500.00$ 48,500.00$ 52,485.00$ 51,554.00 PERCENTEXPENDED BYYEAR 98.3%43.3%5.2%0.0% Greencircleindicatesactivitiesfundedthatprogramyear.) FY2014SpenddownRatio2.47 TimelinessRatioof1.5isnomorethan $77,331.00 52,269.16(Amountthatneedstobespent) byMay1, 2015 RehabNumbers: (asof6/16/15) ActiveCDBGFilesCommitted Funding# peopleonwaitinglistMHFAFile 1$ 23,000.0010 Dakota County CDBG Activity Amendment Request Form 1 City/Township Name: City of Rosemount Please identify the change(s) to be made: Identify the activity budgets you are requesting to be amended. The amendment options, include:  A transfer of funds from one activity to a different activity within the same program year;  A transfer to a newly created activity from an existing activity within the same program year;  A cancelation of an activity (with no prior expenditure) and transfer of funds to one or more existing/new activities within the same program year. Activity Status* Program Year Activity Name Original Budget Proposed Budget Budget Change New 2012 ADA project/sidewalk 0 17000 17000 New 2014 Well Sealing 0 10000 10000 New 2015 Well Sealing 0 5000 5000 *(i.e. New, Cancel, or Continue) Prepared by: Local Program Administrator (Print) (Signature) Approved by: ____________________________________ ______________________________________ City or Township Financial Officer (Print) (Signature) Administrative Amendment Change an existing activity budget < $100,000 Substantial Amendment A substantial amendment will take approximately 45 days to complete. Create a new activity (previously not an application) *Please complete pages 3-6 Cancel an existing activity Change an existing activity budget > $100,000+ Change the National Objective of an existing activity Identify the specific property location for an activity previously unknown at the date of application Dakota County CDBG Activity Amendment Request Form 2 CDA Office Use Only Reviewer Amendment Received _ _/_ _/_ _ Other Comments: CDBG Account Numbers CDBG Account Numbers Dakota County CDBG Activity Amendment Request Form 3 If creating a new activity, complete the following sections. Will the proposed activity alter the completion timeline for any previously funded activity? No Check the eligible activity category of the proposed activity: Affordable Rental Housing Rehabilitation of Multi-Unit Residential Rental Assistance Subsidies Fair Housing Activities Energy Efficiency Improvements Public Service Senior Services Youth Services Transportation Services Operational Support Affordable Homeowner Housing Homeownership Assistance New (Re)Construction Homeowner Housing Rehabilitation/ Energy Efficiency Improvement of Single Unit Residential Housing Counseling and Short Term Assistance Fair Housing Activities Community Development Recreational Parks Water/Sewer Improvements Street Improvements Sidewalks Beautification Assessment Abatement Homelessness Coordinated Access to service & Shelter Housing Stabilization Emergency Shelter Operation Addition of Permanent Supportive Housing Units Shelter Renovation/Creation Neighborhood Revitalization Acquisition of Real Property Clearance and Demolition Clean-up of Contaminated Site Economic Development Employment Training Economic Development Assistance Rehabilitation of Commercial/Industrial Buildings Micro-Enterprise Assistance Relocation Planning and Administration Planning Administration Describe the activity schedule: Proposed Activity Start Date: 8/2017 Proposed Activity Completion Date: 12/2017 CDBG funded activities must meet one of the program objectives. Check the objective for which the CDBG funds will be used. Describe the proposed activity. Municipal well sealing Dakota County CDBG Activity Amendment Request Form 4 If you checked the Low/Mod Housing Benefit box, please answer the following: How many Low/Mod Households will benefit? Households (Income eligibility must be verified by written documentation) Where will this activity occur? (Address of property, neighborhood, city-wide) If you checked the Low/Mod Limited Clientele Benefit box, please answer the following: How many Low/Mod People or Households will benefit? People/Households (Please choose either people or households for each project.) How will income be verified? Income Verification Request Forms Eligibility Status for other Governmental Assistance program Self Certification (Must request source documentation of 20% of certifications and must inform beneficiary that all sources of income and assets must be included when calculating annual income) Presumed benefit (HUD presumes the following to be low and moderate-income: abused children, battered spouses, elderly persons, severely disabled persons, homeless persons, persons living with AIDS, migrant farm workers) If you checked the Low/Mod Jobs Benefit box, please answer the following: To meet the “Jobs” National Objective requirements, the assisted business must enter into an agreement showing commitment that at lease 51% of jobs created/retained will be available to low/mod income persons. The business must also be prepared to provide a list of all jobs, detailed information about the jobs being Low/Mod Area Benefit Low/Mod Limited Clientele Benefit Low/Mod Housing Benefit Low/Mod Jobs Benefit Slum/Blight Area Benefit Slum/Blight Spot Benefit Urgent Need (extremely rare; used only for emergencies): If you checked the Low/Mod Area Benefit box, please answer the following: In what Census Tract/Block Group(s) do beneficiaries of your Activity live? (Please include map) How many residents live in this area? What is the percentage of low and moderate-income beneficiaries? How was this documented? HUD Data Survey (Please include a copy of survey) Dakota County CDBG Activity Amendment Request Form 5 created/retained, the selection and hiring process, and demographic information about the employees. Will this activity create or retain full time equivalencies (FTEs)? Create Retain For job(s) that are being retained, please provide evidence that the assisted business has issued a notice to affected employees or that the business has made a public announcement to that effect, OR an analysis of relevant financial records that shows the business is likely to cut back on employment in the near future without planned intervention. Will the job(s) created or retained require a special skill? Yes No What percent of permanent FTEs will be held by or available to low/mod income persons? % If you checked the Slum/Blight Area or Spot Benefit box, please answer the following: What are the boundaries of the slum/blight area or the address of the slum/blight spot? The address of the two wells is 14605 Robert Trail South. Investigation will be undertaken in 2016 to determine the exact location of the wells. If Slum/Blight Area, what percent of buildings are deteriorated? % What deficiency will be corrected or the public improvement be? Two obsolete municipal wells currently located on private property will be properly capped to reduce threat of groundwater contamination. Indicate the proposed objective and outcome of the activity/project. Outcome #1 Availability/Accessibility Outcome #2 Affordability Outcome #3 Sustainability Objective #1 Suitable Living Environment Accessibility for the purpose of creating a suitable living environment Affordability for the purpose of creating a suitable living environment Sustainability for the purpose of creating a suitable living environment Objective #2 Decent Housing Accessibility for the purpose of providing decent housing Affordability for the purpose of providing decent housing Sustainability for the purpose of providing decent housing Objective #3 Economic Opportunity Accessibility for the purpose of creating economic opportunities Affordability for the purpose of creating economic opportunities Sustainability for the purpose of creating economic opportunities Indicate how the activity outcome will be measured and projected number of beneficiaries. People Households Housing Units Public Facilities 23000 Jobs Businesses Organizations Dakota County CDBG Activity Amendment Request Form 6 Provide the total project cost and CDBG request. Total Project Cost: 100,000 Total CDBG Request: 15000 Describe all other funding sources. Source of Funds Amount Committed Pending CDBG Amendment 15,000 Department of Health-grant 50,000 X City Water Fund 33,000 CDBG-2016 applicaton 52,000 Total: 150,000 Itemized Use of Funds/Expenses Costs CDBG Funds Requested Other Funding Sources 2 municipal wells sealed 150,000 15,000 135,000 Total: 150,000 15,000 135,000