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SR-906-000 (20) Council Meeting: March 14, 2006 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Authorization for the City Manager to Submit an Application and Negotiate and Execute Agreements with the U.S. Department of Housing and Urban Development to Accept Grant Funds to Support the Reuse of 415 Pacific Coast Highway Introduction This report recommends that the City Council authorize the City Manager to submit all necessary documents to the U.S. Department of Housing and Urban Development (HUD) to accept grant funds in the amount of $298,230 to support the renovation of the North House at 415 Pacific Coast Highway (415 PCH) for use as a visitor?s center and appropriate the grant funds. Background This 5-acre beachfront property at 415 Pacific Coast Highway is the responsibility of the City under its long-term agreement with the State of California for oversight of the Santa Monica State Beach. Santa Monica?s public beach areas anchor the southwestern corner of the Santa Monica Mountains National Recreation Area (SMMNRA) ? the largest federally designated urban recreational area in the United States. Upon approval of the Reuse Plan for 415 PCH in July 1999, the City Council authorized the City staff to pursue grant funding opportunities to support the redevelopment of the site. Since that time, the City has received $350,000 in State Proposition 12 funding, $673,616 in federal funding from fiscal years 2002, 2003 and 2006, and $21 million from 1 the Annenberg Foundation. The City recently received notice of additional federal funding that was approved by the U.S. Congress as referenced in the HUD Appropriations Act for FY 2004 and recognizes the potential of the historic structures on the site to serve as a visitor?s center. This possibility was included in the Reuse Plan which provided for visitor services and interpretative elements on the site. Discussion In order to receive the currently appropriated federal funds, the City must submit an application form, federal assurances and certifications that are standard for receipt of federal funding. Budget/Financial Impact The grant amount of $298,230 for FY 2004 will supplement other funding sources to support the redevelopment of the site, and are specifically earmarked for renovation of the North House. No matching funds are required. The following budget changes will be needed to record receipt of the grant funds and make it available for program use: Establish a revenue budget in the amount of $298,230 at account number ? 20501.403050; Appropriate $298,230 in capital improvement project number ? C200525.589004 ? 415 PCH Federal Grant. Recommendation Staff recommends that the City Council: (1) Authorize the City Manager to submit the necessary application for grant funding and to negotiate and execute all agreements related to this grant; and 2 (2) Approve the appropriation and other budgetary action outlined in the Budget/Financial Impact Section of this report. Prepared by: Barbara Stinchfield, Director Karen Ginsberg, Assistant Director Department of Community & Cultural Services Reference Contract No. 8568 (CCS) 3