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Home My Public Portal About11-06-96 CDBGM wr IY A G E N D A COMMUNITY DEVELOPMENT BLOCK GRANT ADVISORY BOARD COMMISSION _ REGULAR MEETING WEDNESDAY, NOVEMBER 6, 1996 6:00 P.M. LYNWOOD CITY HALL COUNCIL CHAMBERS 11330 BULLIS ROAD, LYNWOOD, CA 90262 CONSTANCE FRANKLIN CHAIRPERSON DONALD PRIMMER MARGARET ARAUJO VICE CHAIRPERSON COMMISSIONER KEN ALFORD COMMISSIONER EUGENIA MERCADO COMMISSIONER OPENING CEREMONIES: A. CALL TO ORDER. B. FLAG SALUTE C. ROLL CALL D CERTIFICATION OF AGENDA POSTING E. APPROVAL OF MINUTES OCTOBER 16, 1996 F PUBLIC ORALS. G. NEW BUSINESS. (ITEMS ON AGENDA ONLY) PUBLIC HEARING. BLANCA CHAVIRA COMMISSIONER ISADORE HALL COMMISSIONER I SUBSTANTIAL CHANGE - AMENDMENT TO THE CONSOLIDATED PLAN FY 1996 -97 2. LOAN REVIEW COMMITTEE H. STAFF ORALS 1. BOARD ORALS J ADJOURNMENT Adjourn to the next regularly scheduled meeting at 6:00 p.m. in the Council Chambers of Lynwood City Hall, 11330 Bullis Road, Lynwood, CA. HAh1SMCH /AGENDA 1 7,:?J? = i • MINUTES OF A SPECIAL MEETING OF THE COMMUNITY DEVELOPMENT BLOCK GRANT ADVISORY BOARD COMMISSION WEDNESDAY, OCTOBER 16, 1996 A. CALL TO ORDER: The meeting was called to order on the above captioned date by Vice Chairperson Primmer at 6:25 p.m. in the Lynwood City hall Council Chambers, 11330 Bullis Road, Lynwood, CA 90262. B. FLAG SALUTE: Commissioner Hall led the flag salute. C. ROLL CALL: Chairperson Primmer request roll call; staff complied as follows: PRESENT: Vice Chairperson Primmer Commissioner Alford Commissioner Hall Commissioner Chavira ABSENT: Commissioner Franklin D. CERTIFICATION OF AGENDA POSTING: Staff informed the Commission that the Agenda was posted per the Brown Act. APROVAL OF MINUTES: Motion was made by Commissioner Hall to approve the minutes of September 4 and 18, 1996. Seconded by Commissioner Alford. F. PUBLIC ORALS: Mr. Raymond Alexander, of 10925 Lewis Road requested that the Commission review and aprove his request for assistance in the form of a Deferred Payment Loan. G. NEW BUSINESS: (LOAN REVIEW COMMITTEE) Mr. Alexander request approval of a Deferred Payment loan in the amount of $14,550.00 and requested that the commission waive the restriction on the number of loans. After brief discussion, Motion was made by Commissioner Hall, seconded by Commissioner Primmer to approve the DPL in the requested amount of waive the restriction of the number of loans. Motion carried unanimously, with the exception of Commissioner Alford who abstained. H. STAFF ORALS: NONE I. BOARD ORALS: NONE J. ADJOURNMENT: Motion to adjourn was made by Commissioner Hall, seconded by Commisioner Alford. Motion carried unanimously. Meeting adjourned at 7:10 p.m. CHAIRPERSON FRANKLIN ANNETTE CLARK, PROJECT MANAGER 1 ® • DATE: November 6, 1996 TO: COMMUNITY DEVELOPMENT BLOCK GRANT ADVISORY BOARD (CDBGAB) FROM: Alfretta F. Earnest, Assistant City Manager BY: Annette Clark, Project Manager SUBJECT: FISCAL YEAR 1996 -97 CONSOLIDATED PLAN AMENDMENT PURPOSE: To request that the Community Development Block Grant Advisory Board conduct a Public Hearing to review and consider citizens input for the City's proposed Substantial Change to the Consolidated Plan for fiscal year 1996/97. BACKGROUND: 1. on May 7, 1996, City Council approved the Consolidated Plan One Year Action Plan for fiscal year 1996 -97. The plan included an allocation to Lynwood Entrepreneur Development Academy (LEDA) in the amount of $300,000. 2. LEDA was allocated $300,000 to provide economic development activities to Lynwood residents and businesses in the form of incubator space and business development training. The program initially received funding for the period of July 1, 1996 through June 30, 1997. 3. During the first quarter of FY 1996 -97, LEDA incurred staffing changes, in addition to the expiration of it's property lease agreement. Expiration of the lease agreement has resulted in LEDA no longer being able to provide space to small businesses, while the staffing changes has caused a hinderance for implementation and completion of LEDA's proposed goals and objectives for fiscal year 1996 -97. 4. HUD Regulations allow for remedies in cases where a subrecipient fails to comply with any term of it's contractual agreement, which may be due to hardship or special circumstances. Remedies include: a. Grant suspension. b. Termination of the grant. C. Termination for convenience, upon written notification setting forth the reasons for such termination and the effective date. i 0 Due to LEDA's current situation, the City has informed LEDA's Board of Directors of the intent to terminate LEDA's contractural agreement and rescind the remaining CDBG allocation in the amount of $214,000, effective November 7, 1996. The City has not received, to date, any written correspondence from LEDA's Board regarding the proposed changes. Therefore, it is recommended that the LEDA program activity be cancelled and deleted from the Consolidated Plan One Year Action Plan (in accordance with HUD guidelines) - for fiscal year 1996 -97 and that the $214,000 be reprogrammed for eligible CDBG activities. 6. The deletion of LEDA's program constitutes a Substantial Change to the City's Consolidated Plan. An amendment to the plan is necessary when adding /deleting activities funded with CDBG funds or increasing /decreasing allocation amounts approved in the original Final Plan for fiscal year 1996 -97. 7. Although termination of the current LEDA program is recommended, the City will continue its efforts to provide business development opportunities to Lynwood businesses and residents. The Environmental Services Department proposes to offer these services by implementing a business development program within the Community Development Division. The goals and objectives of the program will be: a. To stimulate business growth and development by providing business training, support and outreach, technical and professional assistance. b. Enhance entrepreneurial opportunities. C. Improve the City's economic base. The above program is eligible for CDBG funding under economic development activities. The cost of program operation for the remainder of fiscal year 1996 -97 is expected to be $103,000. Proposed amendments to the Consolidated Plan one Year Action Plan for fiscal year 1996 -97 are as follows: ,, • �► CANCELLATION OF CDBG ACTIVITY Lynwood Entrepreneur Development Academy Remaining funds: $214,000 NEW CDBG ACTIVITY Lynwood Business Institute: Proposed allocation $103,000 CONTINGENCY Unprogrammed Balance: $111,000 9. In order to obtain citizens input and comments regarding the proposed amendments, staff advertised Public Hearing Notices from October 3, 1996 to November 6, 1996. ANALYSIS AND CONCLUSION: It is recommended that the Lynwood Entrepreneur Development Academy program be cancelled and deleted from the City's One Year Action Plan for fiscal year 1996 -97. As a result of deletion, the City has available $214,000 for reprogramming in other CDBG eligibile activities (except for public service activities which have already reached the maximum allowable limit). In addition, it is recommended that $103,000 in CDBG unprogrammed funds be allocated to implement the new business development activity and that the remaining $111,000 be returned to the CDBG unprogrammed balance as contingency funds. RECOMMENDATION: Staff respectively requests that the Community Development Block Grant Advisory Board (CDBGAB), approve the proposed Substantial Change and amendment to the CDBG Consolidated Plan use of funds for fiscal year 1996 -97.