Title
a. Approve amending the Community Development Block Grant FY 2013-2014 adopted budget, by increasing revenue and appropriations by $1,038,220; and
b. Authorize the Auditor-Controller's Office to incorporate the approved appropriations and revenue modifications in the FY 2013-2014 Budget.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a) Approve amending the Community Development Block Grant FY 2013-2014 adopted budget, by increasing revenue and appropriations by $1,038,220; and
b) Authorize the Auditor-Controller's Office to incorporate the approved appropriations and revenue modifications in the FY 2013-2014 Budget.
SUMMARY:
On March 27, 2012, the Board of Supervisors held a public hearing to consider applying to the California Department of Housing and Community Development (HCD) for a Community Development Block Grant (CDBG). The grant application had two components: (i) a Housing Acquisition/Rehabilitation project for the Camphora Highlands Farm Labor Camp; and, (ii) a Planning and Technical Assistance Study for a Regional Cut Flower Transportation Consolidation Study. The Board approved the application and the County received notice that the grant application was awarded on August 27, 2012. The County entered into a Standard Agreement with the State on December 27, 2012. The recommended increase in revenue and appropriations was approved by the Board of Supervisor's on February 12, 2013 as part of the FY2012-13 Budget. Due to delays in regard to the environmental reviews, the funds were not expended in FY2012-2013 as originally planned. The recommended action approves amending the budget to increase the budget revenue and appropriations for the grant related activities and authorizes the Auditor-Controller's Office to make the necessary budget adjustments and allow the County to begin using the grant funds.
DISCUSSION:
The County was awarded a CDBG grant for two activities.
The first activity is for housing acquisition refinancing and rehabilitation of the Camphora Highlands Farm Labor Camp owned and operated by South County Housing (SCH). There are two elements of the proposed activity. The first element involves pay down of a portion of the Seller Take Back note which is now due. Paying down this acquisition debt will help ensure that SCH has the cash flow necessary to maintain the long-term affordability of the project. The second element is improvements to the water storage and distribution system. Proposed construction will improve the domestic water supply to residents and increase storage capacity for fire suppression. The CDBG grant for the activity is $1,000,000, of which $75,000 will be for administration of the grant. The bulk of the grant, $777,000, will be used for the refinance; $129,150 will be used for construction of the improvements; and $18,850 will be for miscellaneous activities including title and legal costs associated with the refinancing, permits, wage monitoring, procurement, and project management. South County Housing has now completed environmental reviews sufficient to satisfy the requirements of the California Environmental Quality Act (CEQA) and National Environmental Protection Act (NEPA) in order to proceed with the activity that will be funded with CDBG funds.
The second activity is a Planning and Technical Assistance study to evaluate the feasibility of a regional cross dock consolidation facility for the cut flower industry. In 2011, California Cut Flower Commission (CCFC) conducted an analysis of the transportation practices of the cut flower industry in California. The study indicated that the California cut flower industry could increase its share of the national cut flower market by consolidating state-wide flower shipments prior to pick up by the major transportation companies. CCFC believes that growers in the Monterey Bay Area could realize increased market share and decreased shipping costs by consolidating shipments regionally before they are transferred to Oxnard for shipment to their end destination. The CDBG grant is $36,400 for this activity and CCFC will provide the required match of $1,820 for a total of $38,220. There is an allocation of $1,820 for administration of the grant.
OTHER AGENCY INVOLVMENT
The Budget Committee considered this recommendation on October 30, 2013.
FINANCING:
There is no impact on the General Fund. The CDBG grant of $1,036,400 and the California Cut Flower Commission match of $1,820 cover all project costs. Grant revenues and expenditures will be budgeted in Community Development Grants, DEO003, Fund 013, Unit 8200. Due to late submission of this Board Report, the CAO Budget and Analysis Division was not provided adequate time to fully review for potential fiscal, organizational, policy, or other implications to the County of Monterey .
Prepared by:
Jane Barr, Housing Programs Manager, Ext. 5389
Approved by:
David L. Spaur, CEcD, EDFP, Economic Development Director, Ext. 5387
Attachments: None