Fiscal Note
The Common Council previously authorized the amendment of the adopted CDBG Operating Budget to recognize an additional $534,096 in Federal CDBG-R revenues and commensurate expenditure authority (RES-09-00509, Legistar ID # 14747). This Resolution provides for the approval of $480,687 to be expended for specific contracts with non-profit providers or for profit providers. ($53,409 will be retained in CDBG for administrative expense.)
Title
AMENDED SECOND SUBSTITUTE - Approving specific projects to be funded using the City of Madison's Community Development Block Grant-Recovery (CDBG-R) program funds based on an RFP process previously approved and also authorizing the Mayor and City Clerk to sign agreements with Operation Fresh Start, Inc. for $167,059 $269,184, Common Wealth for $33,350, Higher Ground Urban Farm for $106,050, and YWCA of Madison, Inc. for $38,455, and Dane County Housing Authority for $33,648.and amending the 2009 operating budgets of CDBG and the Office of the Director of Planning and Community and Economic Development to provide for $102,125 in additional hourly salary and benefit expenditures and offsetting revenue. various agencies to implement projects. Projects proposed by area agencies will be reviewed and approved by the CDBG Committee and recommended to the Board of Estimates. Projects will be implemented in four categories targeting low and moderate income individuals: housing rehabilitation and preservation; economic development services; foreclosure prevention, counseling, and referral services; and job development and placement services.
BACKGROUND:
The American Recovery and Reinvestment Act of 2009 provides $534,096 to the City for the Community Development Block Grant-Recovery (CDBG-R) program for the purpose of providing community development assistance for projects that assist low or moderate income households while creating and or retaining jobs and providing long-term benefits to the City of Madison.
AGENCIES:
The agencies selected to perform these projects will be were determined following a previously approved Request For Proposal (RFP) process conducted by the CDBG Office. The CDBG staff will reviewed the proposals and provided proposal rankings and recommendations to the CDBG Committee. Based on these rankings, project recommendations will be made by the CDBG Committee to the Board of Estimates for referral to the Common Council.
The CDBG Committee deferred action on the proposal to provide foreclosure prevention counseling and referral services. This proposal will be on the July 30, 2009 special meeting of the CDBG Committee for action and referred back to Council at a later date.
WHEREAS, the American Recovery and Reinvestment Act of 2009 provides $534,096 to the City for the Community Development Block Grant-Recovery program for the purpose of providing community development assistance for projects that assist low or moderate income households while creating and or retaining jobs and providing long-term benefits to the City of Madison.
WHEREAS, the Common Council authorized the amendment of the adopted CDBG Operating Budget to recognize an additional $534,096 in federal revenues and commensurate expenditure authority and authorized the CDBG Office to issue a request for proposals.
NOW, THEREFORE, BE IT RESOLVED that the Common Council approve the use of the City's CDBG-R program funds for specific projects performed by area non-profit or for-profit agencies. Authorize the Mayor and the City Clerk to enter into agreements with Operation Fresh Start, Inc. $167,059, Common Wealth for $33,350, Higher Ground Urban Farm for $106,050 and YWCA of Madison, Inc for $38,455. that will be identified at a later date based on a previously approved RFP process; and authorize the CDBG Committee to review the staff rankings and select agencies to complete projects in the four designated areas (housing rehabilitation and preservation; economic development services; foreclosure prevention, counseling, and referral services; and job development and placement services tied to eviction prevention). The city will enter into funding agreements with the selected agencies to implement the following projects:
(See Attachment A)
BE IT FINALLY RESOLVED that the City of Madison CDBG Office enter into contracts for purchase of services as described, and in the amounts noted, on Attachment A.
General Authorizations. The Mayor and City Clerk are hereby authorized to execute and deliver any documents necessary to accomplish the purposes of this resolution.
BE IT FURTHER RESOLVED that $102,125 be allocated from the CDBG grant monies to the Office of the Director of Planning and Community and Economic Development for funding of hourly salaries and benefits, and that the operating budgets of CDBG and the Office of the Director of Planning and Community and Economic Development be amended appropriately, as follows:
($102,125) SC01-54920-260000 Community Agency Contracts [Decrease CDBG Expenditures]
$102,125 SC01-57441-260000 Operating Transfer Out to the Office of the Director of Planning and Community and Economic Development
$91,757 GN01-51200-210000 Hourly Salaries
$10,368 GN01-52000-210000 Benefits
$102,125 GN01-79427-210000 Operating Transfer in From CDBG
NOW THEREFORE BE IT RESOLVED that the Common Council approve the use of the City's CDBG - R funds for following specific projects, and authorize the Mayor and City Clerk to enter into agreements with:
YWCA of Madison Inc. for $38,455 for the employment services to prevent homelessness project.
Dane County Housing Authority for $33,648 for foreclosure prevention service project with the following conditions:
1. 150 City of Madison LMI households in danger of foreclosure will be served.
2. A 75% FTE be hired to work 50% time on provision of the workshops described in the application, and 50% time on assisting with the Dane County Task Force On Foreclosure workshops and providing ongoing referral services and coordination of existing foreclosure prevention services to LMI residents of the City of Madison.
3. Contract shall run no longer than December 31, 2010.
Operation Fresh Start, Inc. for $269,184 for the housing rehabilitation and preservation services project as submitted, with the following conditions. OFS will create a graduate crew of five (5) FTE positions to rehabilitate up to twenty-seven (27) housing units for LMI households, with the rehabilitiation tied to energy efficiency goals of the RFP.
Common Wealth Development for $33,350 for the economic development project with the condition that they provide one loan / grant to a solar technology business for the retention of an FTE position under the terms of their Green Loan Fund.
Higher Ground Urban Farm for $106,050 for the economic development project with the condition that the loan / grant be for working capital or equipment purchase to enable the development of the urban farm business. Require that at least three (3) FTE positions be created for LMI residents of Madison. Provide the funds as 50% grant and 50% loan. The loan will begin amortizing in 2015 and be repaid to the City on a quarterly basis, at 0% interest, over 10 years. There would be no prepayment penalty with the loan.
BE IT FINALLY RESOLVED, that the loan agreement between the City and Higher Ground Urban Farm include the following terms and conditions: If Higher Ground Urban Farm creates at least six full-time years of new jobs by January 1, 2015, then $53,025 of the original $106,050 loan shall be forgiven. (A full-time year means one person employed for a calendar year, or two people employed for one half of a year, etc.