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HomeMy WebLinkAboutReimbursement Housing and Urban Development - HUD - Reclass E Council/Agency Meeting Held: Deferred/Continued to: F _Approved ❑ Conditionally Approved El Denied Cie 's S ature Council Meeting Date: 1/17/2006 Department ID Number: ED06-01 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: PENELOP ledULBR TH-GRAFT , Cit A ministrator PREPARED BY: STANLEY SMALEWITZ, Director of Economic Development SUBJECT: APPROVE APPROPRIATION OF $121,276 FOR REIMBURSEMENT TO U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: The U.S. Department of Housing and Urban Development (HUD) requests reimbursement in the amount of $121,276 from non-Federal funds for Public Services expenditures in Program Years 2001 and 2003. Funding Source: Unappropriated General Fund balance. Recommended Action: Motion to Approve appropriation of $121,276 from unappropriated General Fund balance for wire transfer to reimburse the U.S. Department of Housing and Urban Development for overexpenditure of Community Development Block Grant (CDBG) funds. Alternative Action(s): Do not approve appropriation to reimburse the U. S. Department of Housing and Urban Development. This may result in reduction of CDBG funds received in future allocations. Analysis: Community Development Block Grant (CDBG) funding requests for the Luis M. Ochoa Community Job Center were submitted to HUD via the City Council approved Action Plan as "Special Economic Development Activities" for program years 2001 and 2003. HUD accepted and funded the Action Plans, and funds were expended. REQUEST FOR ACTION MEETING DATE: 1/17/2006 DEPARTMENT ID NUMBER:ED06-01 HUD has subsequently re-evaluated the eligibility and determined the Luis M. Ochoa Community Job Center activity was mis-classified as a Special Economic Development Activity and should correctly be classified as "Public Services." This reclassification results in the City of Huntington Beach showing an over expenditure of$121,276 in the Public Services allocation of the city's CDBG funding. HUD regulations prohibit any municipality, agency, or joint powers authority to obligate more than this specified 15% of the total allocation towards such defined public services. HUD is requesting a reimbursement of non-Federal funds of $121,276 via wire transfer to fulfill this obligation. In addition, staff is working with HUD to ensure these types of program errors are eliminated in future fiscal years. Environmental Status: N/A Attachment(s): City Clerk's Page Number No. Description 1. Fiscal Impact Statement 2. Letter from HUD dated December 22, 2005 G:\CDBG\RCA\2005\HUD Reimbursement.doc -2- 1/3/2006 1:31 PM Fiscal Impact Statement dt iri 3v. i S �' E E `� E� �•dagaf� { E # 3 � ? €€ f b �£ r' NAIR r- � �., � 9� zn ✓ r � AEe� � � 1 E f� L € s E€g [[[' f�. ��£.E �c•,���[� s� i�t ��p��4� (( AMA ? ,x �:.. ,.L_ ,e• 7 t.,�,,I.�.t.€x S 3E 3 C�.�;:. __,,.. x � 3�)b 'Ys.. CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICATION TO: PENELOPE CULBRETH-GRAFT,DPA, CITY ADMINISTRATOR FROM: DAN T.VILLELLA, CPA, FINANCE OFFICER SUBJECT: FIS 2005-06—08 APPROVE APPROPRIATION OF $121,276 FOR REIMBURSEMENT TO DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT DATE: JANUARY 3, 2006 As required by Resolution 4832, this Fiscal Impact Statement has been prepared for "Approve Appropriation Of$121,276 For Reimbursement to Department of Housing and Urban Development" If the City Council approves this action the estimated unaudited, unreserved/undesignated General Fund Balance at September 30, 2006 will be reduced to $3,799,000. Dan Villella, Finance Officer Letter Dated December 22, 2005 e g IE� ,ZMENTOFy U.S.Department of Housing and Urban Development tn1 p Office of Community Planning and Development Los Angeles Field Office,Region IX 611 West 6t'Street,Suite 1000—9DD 9B4NOEV6��3 Los Angeles,California 90017-3101 DEC 2 2 :' Stanley Smalewitz Director,Economic Development -- City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Dear Mr. Smalewitz: SUBJECT: Reimbursement of Public Service over expenditure in 15 % Can The CDBG regulation limits the amount of funding that can be used for public service activities. The limit is based on obligations for Public services and cannot exceed 15 percent of that program year's entitlement grant. The City exceeded its Public Service Cap in Program Year 2001 for$42,150 and in Program Year 2003 for$79,126. At the City meeting on October 21, 2005,with HUD Community Planning Development Program Manager Chin Woo Choi and Community Planning Representative Chris Yao. The City agreed to reimburse HUD from City's General Fund for the Public Service over expenditure totaling$121,276. It is required that reimbursement be processed within 60 days from date of this letter and documentation submitted to the HUD field office, to show that non-Federal funds were reimbursed to the CDBG account. If you have any questions please call Chris Yao, Community Planning and Development Representative at(213) 534-2577. Sincerely, William Vasquez Director Office of Community ning and Development Cc: Luann Brunson, CDBG Administrator RECEIVED 20 EconomicDevelopment RCA ROUTING SHEET INITIATING DEPARTMENT: Economic Development SUBJECT: Appropriation of$121,276 for Reimbursement to HUD COUNCIL MEETING DATE: January 17, 2006 RSA ATTAC I `I�II E [T �4T Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Appilcable Resolution (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Contract/Agreement (w/exhibits if applicable) Attached ElNot Applicable El (Signed in full by the City Attorney) ❑ Subleases, Third Party Agreements, etc. AttachedNot Applicable (Approved as to form by City Attorney Certificates of Insurance (Approved b the CityAttached El pp y Attome y� Not Applicable Fiscal Impact Statement (Unbudget, over$5,000) AttachedNot Applicable ❑ ❑ Bonds (If applicable) AttachedNot Applicable ❑ Staff Report (If applicable) AttachedNot Applicable Commission, Board or Committee applicable)If Report a Attached ❑ p ( pp ) Not Applicable Findings/Conditions for Approval and/or Denial Attached ❑ pP Not Applicable 7777771, T T T REEDE FtR' IiAR Administrative Staff _.. . ...-.. _ Assistant City Administrator Initial City Administrator Initial City Clerk 0--,ANA1! FAR Rk,© Il'ENl Only)(Below Space For City Clerk's Use RCA Author: Brunson(5529)