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HomeMy WebLinkAbout2009/03/10 City Council Item No. 7CITY OF LADE L LSI AOIZE �%Z DREAM EXTREME- REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROBERT A. BRADY CITY MANAGER DATE: MARCH 10, 2009 SUBJECT: TRANSFER OF CDBG FUNDS - DANGEROUS STRUCTURE ABATEMENT Background On January 9, 2007, City Council adopted the 2007 -2008 Community Development Block Grant (CDBG) Program allocating $75,000 to projects. The following year, on December 11, 2007 2009 CDBG Program allocating $40,183 towards projects. Discussion Dangerous Structure Abatement City Council adopted the 2008 - Dangerous Structure Abatement On February 10, 2009, staff submitted a letter to the Riverside County Economic Development Agency requesting pre - approval to transfer unused 2007 -2008 and 2008- 2009 Structure Abatement funds to 2008 -2009 Nuisance Abatement. Last week the County informed staff that our request was approved. The County is requiring City Council approval to complete the transfer of funds. Currently, Dangerous Structure Abatement has an unused remaining balance of $47,720 for the 2007 -2008 program year and $40,183 for 2008 -2009; creating a combined total of $87,903. Due to the extensive structure abatement process, projects seldom utilize the full funding allocation. By approving the transfer the City will take full advantage of the funding allocation. To avoid the risk of losing any CDBG allocated funds, it is in the best interest of the City to transfer the unused remaining dollars from Dangerous Structure Abatement projects to Nuisance Abatement to support code enforcement services. Dangerous Structure Abatement will now be categorized as unfunded and each project will be brought before Council on a case -by -case basis. Agenda Item No. 7 Page 1 of 2 Transfer of CDBG Funds — Dangerous Structure Abatement March 10, 2009 Page 2 Fiscal Impact There will be a significant cost savings in the general fund. A total of $87,903 of CDBG funds will cover Code Enforcement - Nuisance Abatement services. Recommendation 1. Approve the transfer of $87,903 from Dangerous Structure Abatement into the 2008 -2009 Code Enforcement — Nuisance Abatement project. 2. Approve submittal of the City's transfer request to the County of Riverside. Prepared by: Claudia Davis Parks and Recreation Analyst Approved by: Ray Gonzales O V Director of Parks and Recreation Approved by: Robert A. Brady City Manager �{J� Agenda Item No. 7 Page 2 of 2