MINUTES OF THE MEETING OF THE CITY COUNCIL Wichita, Kansas, November 26, 2002 Tuesday, 10:34 A.M. The City Council met in special session with Mayor Knight in the Chair. Council Members Brewer, Gale, Lambke, Pisciotte, present. Council Members Fearey, Martz; absent. Chris Cherches, City Manager; Gary Rebenstorf, Director of Law; Pat Burnett, City Clerk; present. NEW BUSINESS Agenda Report # 02-2078. Tom Smith Grants-in-Aid Coordinator reviewed the Item. In 1995, the Department of Housing and Urban Development (HUD) issued new regulations regarding the planning and application process for three grant programs. In 1995, HUD required local governments to submit Consolidated Plans and combined applications for the Community Development Block Grant (CDBG); Emergency Shelter Grant (ESG); and Home Investment Partnership Grant (HOME) programs. As part of the requirements, local units of government also were required to develop Five-Year Strategic Plans (2000-2004) with priority needs established. In addition, One-Year Action Plans, outlining specific activities and grant funding sources for the fiscal year, were also part of the HUD requirements. It is now time to develop the annual plan submittal required for 2003-2004. Preparation for the 2003-2004 program year is based on 2002-2003 City Council action and action by the Council on October 26, 1999 regarding the 2000-2004 Priority Needs. The City Council is requested to consider designating and reserving special funding and allocations. Funding Reservations and Designated Funding - For the past few years, the City Council has revised its procedure to ensure special programs (priorities) would be addressed on an outcome basis. Through a Request for Proposal (RFP) process, those programs felt to be high priority (and traditionally funded from grant sources) were developed based on a required "scope of services" where performance could be monitored and evaluated. In the past, such programs included Youth Employment, Women/Family Crisis Shelters, and Youth Recreation/Enrichment Programs (Public Services). This year, it is recommended an RFP for Homeless Services be added. To meet previously established goals, it is recommended that the City Council continue those programs in the 2003-2004 allocations. In addition to the (above) designated programs, the following allocations are being proposed: 1. Streets/Sidewalks (Neighborhood Improvement ProgramAnd Handicap Improvements) 2. Neighborhood Centers/Community Facilities 3. Environmental Health-Inspectors 4. Neighborhood Improvement Services & Grants Programs 5. Neighborhood Stabilization 6. Community Education Program 7. Neighborhood Assistance-District Advisory Boards 8. Historic Preservation/Mandated Activities 9. Consolidated Plan Program Grant Administration (Direct and Indirect costs) The City Council needs to determine if these programs - traditionally funded - should be designated and funding reserved and if there are other special programs desired by the City Council that should be reserved, such as additional community improvement projects. The 2003-2004 Consolidated Plan suggested designated funding is listed in Attachment 1. In addition, there are two prior year sources of funds to be designated: $600,000 from completed projects and program income and $351,500 from the Heartspring Demolition project. It is recommended the $600,000 be designated for park renovation, public facility renovation and street paving listed on Attachment 2 (light green). Because of the new HUD expenditure standards and the need to expend CDBG funds rapidly, it is recommended the $351,500 be designated for Recreation Center and Tennis Court improvements listed on Attachment 3 (yellow). HUD estimates that CDBG funding will be reduced for the next fiscal year. Although final grant amounts are not known at this time, it is estimated that $5.8 million in Consolidated Grant funding will be available for allocation in the 2003-2004 program year. This total is comprised of approximately $3.6 million in CDBG; $2.1 million in HOME; and $133,000 for Emergency Shelter Grants. If approved, the prior year CDBG funds of $600,000 and $351,500 would be included in 2003-2004 Consolidated Plan. Each grant program is restricted to certain federal allocation limits, which cannot be exceeded. These are listed for each Grant as follows: CDBG $1,163,000 Public Services 20% Planning and Administration HOME 15% Neighborhood-Based Non Profits (Minimum required allocation for CHDO's) ESG 30% Essential Services 30% Homeless Prevention 5% Administration Allocation of Consolidated Plan grant funds is also subject to individual federal eligibility rules regarding specific activities/programs and national objectives of primarily benefiting low-income persons, or addressing conditions of slums or blight. The process by which grant funds are authorized by the City Council is a matter of local determination. That is, the City Council is not obligated to solicit funding applications unless it desires to do so. The City Council may also reserve grant funds for community priority needs and programs, as determined by the City Council. Mayor Knight Mayor Knight inquired whether anyone wished to be heard and no one appeared. Motion -- Knight moved that the suggested designated allocations for 2003-2004 Consolidated Plan, the $600,000 in prior year CDBG funds, and allocations for the $351,500 in prior year CDBG funds be approved. -- carried Motion carried 5 to 0. (Fearey, Martz; absent) ADJOURNMENT The City Council meeting adjourned at 10:39 a.m. Pat Burnett CMC City Clerk CITY COUNCIL PROCEEDINGS JOURNAL 177 NOVEMBER 19, 2002 PAGE 1