SR-6P (6)
0P
JAN 2 8 1997
CMO- KEL FlcmanagerfstafrprtsfEQ CDBG
Council Meeting January 28,1997
Santa Monica, California
TO Mayor and City Council
FROM City Staff
SUBJECT Recommendation to authonze the use of Earthquake Supplemental
Community Development Block Grant funds and take necessary budget
actions
Introduction
This report recommends that the City Council authorize the use of Earthquake
Supplemental Community Development Block Grant funds for earthquake repair
projects and take necessary budget actions This acllon IS necessary In order to
comply wIth deadlines Imposed by the U S Department of Housing and Urban
Development (HUD)
Background
In the aftermath of the January 14, 1994 Northndge Earthquake, the Federal
Government offered numerous forms of relief to the citizens and the City The City
received Emergency Supplemental CDBG funding Intended for two purposes One
allotment of emergency CDBG funds was Intended exclusively for restoration of
earthquake damaged multi-family housing referred to by HUD as "Ghost Towns" The
purpose for the other allotment of CDBG funds (referred to In thIS report as
Supplemental CDBG) was to allow muniCipalities to offer essential disaster related
services and repair City owned facilities ThiS report only relates to the Supplemental
CDBG funds
~p
JAN 2 8 1997
The City received two allotments of Supplemental CDBG funds -- the first Increment of
$2,712,000 was awarded on February 7, 1995 and the second Increment of $1 ,724,845
was awarded on September 22, 1995 Grant conditions place a time frame of 24
months for obligatIOn and 36 months for expenditure of the funds awarded to the City
The proposed acllons In this staff report will commit funds within the first deadline
DIScussion
The City Council prevIOusly authorized two projects uSing Supplemental CDBG funds
amounting to $699,552 The remainder of the Initial grant ($2,012,448) IS available to
be obligated Staff proposes that a total of $1,992,613 Supplemental CDBG funds be
obligated for the earthquake related projects descnbed below
Miles Plavhouse This unrelnforced masonry structure was significantly damaged by
the Northndge Earthquake Earthquake damage would be repaired and the facIlity
would be brought Into compliance With all applicable codes ($366,195)
Sea Castle Demolition As a result of action by the NUisance Abatement Board, the
earthquake damaged Sea Castle Apartments were demolished Funding for the
demolition came from the City's "Ghost Town" funds HUD Informed the City that the
demolition cannot be paid for uSing the hOUSing related earthquake recovery funds
Therefore, costs associated With this project Will be paid for uSing the less restnctlve
Supplemental CDBG funds ($710,764)
Streamlined Permit Processing In the aftermath of the earthquake, the Planning and
Community Development and the EnVIronmental and Public Works Management
Departments Initiated a streamlined and expedited permit processing system
specifically related to earthquake damaged properties EXisting staff In addlllon to
consultants and technical experts were used to Implement and maintain thiS system
($704,279 for PCD and $58,402 for EPWM)
Permit Processing of Rent Control Permits In response to earthquake damage to rent
controlled properties, the Rent Control Board initiated a permit process to allow rent
Increases necessitated by earthquake repair costs ThiS permit process reqUired staff
and consultant resources Though thiS IS an earthquake related activity eligible for
reimbursement from FEMA approval has not been granted Total costs are $966,010,
2
of which $152,973 Will be paid for from Supplemental CDBG funds Staff Will continue
to pursue FEMA approval of the remaining costs
Budget and Financial Impacts
Adopting the recommendations contained In this report will require the budget actions
contained In Attachment 1 The budget actions are technical transfers of budget
authority from eXisting accounts to new accounts Expenditures associated with these
projects Will be moved to these new accounts as appropnate
Recommendation
City staff recommends that the City Council authorize the use of Supplemental
Community Development Block Grant (CDBG) funds for earthquake repair prOjects
contained In thiS report and take necessary budget actions
Prepared By
Katie E Llchtlg, Senior Management Analyst
City Manager's Office
Attachment 1 Budget Adjustments
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