OFFICE OF THE CITY ADMINISTRATIVE OFFICER

Transcription

1 REPORT FROM OFFICE OF THE CITY ADMINISTRATIVE OFFICER Date: February 10, 2012 Council File No. Council District: All To: From: Reference: Subject: The Mayor The Council Miguel A. Santana, City Administrative Officer~~ Community Development Department Transmittal dated January 25, 2012; Referred to the Housing, Community and Economic Development Committee on February 2, 2012; Additional information received through February 9, 2012 COMMUNITY DEVELOPMENT DEPARTMENT: 2012 COMMUNITY SERVICES BLOCK GRANT AWARD AND RELATED ACTIONS SUMMARY The Community Development Department (CDD) requests authority to accept $7,316,982 from the State of California Department of Community Services and Development (CSD) for the 2012 Community Services Block Grant (CSBG) program. The COD also requests authority to execute CSBG Contract No. 12F-4223 and subsequent amendments with CSD for the period of January 1, 2012 through December 31, Of the $7,316,982, $1,077,737 is available for allocation by CSD. The COD anticipates that the remaining $6,239,245 will be allocated by March 31, We recommend approval for COD to accept the 2012 CDBG award and execute the relevant documents with CSD, subject to the approval of the City Attorney as to form and legality. The 2012 CSBG is pursuant to the City's Community Action Plan for 2012 and 2013 that was approved by Council and Mayor in.june 2011 (Council File [C.F.] ). The COD states that the CSBG program is currently operating under a continuing resolution that maintains funding at the 2011 level. Our Office will report back with revised recommendations if reductions to the CSBG program should occur when the final grant awards are received or when the final federal budget is signed. We will make the necessary adjustments to CSBG funding in the Fiscal Year proposed budget. This report includes recommendations for related actions that are required to implement grant activities, including approval of the proposed distribution of CSBG funds across program and administrative costs in support of COD's FamilySource Program (FSP) and appropriations for personnel expenses and contracts. It should be noted that the recommendations in this report modify those in the transmittal from COD, dated January 25, 2011 (Transmittal) to establish accounts for FSP contracts and transfer appropriations for COD's program and administrative costs for Appropriations for FSP contracts, program and administrative costs are typically included the Community Development Block Grant (CDBG) Consolidated Plan (CP) report and in the CSBG Adopted Budget Schedule 1.3. Council approval is required by CSD for COD to accept the grant and execute grant documents. The Community Action Board (CAB) approved the acceptance of the 2012 CSBG award on January 10, The CAB is an advisory body comprised of elected community members and representatives from the

2 2 public and private sector nominated by the Council and Mayor. The CAB provides oversight on CSBG funding and programs in conformance with the CSBG Act. BACKGROUND Community Services Block Grant Program The CSBG is administered by the CSD with funding from the U. S. Department of Health and Human Services. Funding is awarded to states and other jurisdictions based on a formula which is determined in part by poverty levels. States and other jurisdictions award CSBG funds through contracts with Community Action Agencies (CAA), as established under grant requirements. The COD is the CAA for the City. The COD utilizes CSBG in conjunction with CDBG funds to support the FSP and network of FamilySource Centers (FSC) in the delivery of human services that help reduce the effects of poverty throughout the City. The CSBG is awarded on a calendar year basis. As a result, funding to FSC contracts is pro-rated in increments of three months and nine months to align with the CP, which is based on an April1 through March 30 calendar. For the 2012 CSBG Program Year a total of $5,047,095 is proposed for contractual services: $847,770 in the current CP year, (3ih Program Year) and $4,199,325 for the upcoming CP year (38'h Program Year). Expenditure Plan The COD proposes to allocate the total award of $7,316,982 between program and administrative costs based on a distribution of approximately 75 percent to 25 percent: $5,487,737 for program costs and $1,829,245 for administrative costs. Program costs include funding for FSC contracts and four full-time COD employees. Administrative costs support a portion of direct salaries, operating expenses and related costs for 39 COD employees engaged in grant activities and administrative and financial support of the CSBG program. Proposed expenditures for the 2012 CSBG program is as follows: Description Fundinq Period Amount Program Costs: FSC contracts Januari 1 -March 31, 2012 $847,770 FSC contracts April 1 - December 31, Sub $5,047,095 FSC Pro>]ram Staff: Direct Salary and Expenses April1- December 31,2012 $315,669 Related Costs April1 -December 31, Sub $440,642 Administrative Costs: Partial Funding for 39 positions January 1 - December, 2012 $1,075,361 Operatin>J Expenses January 1 - December, ,575 Related Costs January 1- December, Sub $1,829,245 $ The $847,770 of the $5,047,095 proposed for FSC contracts was approved by the Mayor and Council in March 2011 as a portion of funding for 16 FSC contracts for the period of January 1, 2012 through March 31, 2012 (C. F ). The remaining $4,199,325 is proposed for 16 FSC providers, one

3 GAO File No. 3 technical assistance contractor and one evaluation contractor for the period of April 1, 2012 through December 31, The authority to execute these 18 contracts will be requested as part of the (38th Year) CP report to Council and Mayor. Funding for FSC contractors is pursuant to the FSC Request for Proposals issued in Funding for COD's direct program staff is proposed for the nine-month period of April 1, 2012 through December 31, Funding for the period of January 1, 2012 through March 31, 2012 will be provided from CDBG funds in the 3th Year CP. This report includes Controller instructions to appropriate $150,406 of the $440,642 proposed for COD's program staff for the period of April1 through June 30, 2012 that was not included in the CSBG Schedule 13. The remaining $290,236 will be budgeted in CSBG Schedule 13. The recommendations in this report comply with the City's Financial Policies in that funding is provided from ongoing grant funds, including direct salary costs and full cost recovery for indirect salary costs. Additional information on the CSBG program is provided in the Transmittal which is available on the City internet site at Council File Management System, C.F Additional information on the City's Community Action Plan for 2012 and 2013 is provided in a transmittal from CDD, dated May 19, 2011 and is available at Council File Management System, C.F The CSBG Contract Budget Summary is provided as an attachment to this report. RECOMMENDATIONS That the Council, subject to the approval of the Mayor: 1. Authorize the General Manager, Community Development Department (COD), or designee, to: a. Accept on behalf of the City the 2012 Program Year (PY) Community Services Block Grant (CSBG) award from the California Department of Community Services and Development (CSD); b. Execute CSBG Contract No. 12F-4223 with CSD in an amount of up to $7,316,982, including the current allocation of $1,077,737 with required supporting documentation, subject to City Attorney approval as to form and legality; and, c. Execute any subsequent amendments to the CSBG contract, to the extent permitted under City ordinances, administrative procedures and directives, subject to City Attorney approval as to form and legality; 2. Approve an amount of up to $7,316,982 for FamilySource Program for portions of the and Consolidated Plan program years and administrative expenses for the period of January 1, 2012 through December 31, 2012 as follows, and subject to final federal appropriations of 2012 CSBG funds: Program Expenses FSC contracts ($5,047,095): PY 2012 (January 1 -March 31, 2012) PY 2013 (April 1 -December 31, 2012) Program Support $847,770 4,199, ,642 Administrative Expenses 1,829,245 $

4 4 3. Authorize the Controller to: a. Establish a receivable from CSD for the amount of $7,316,982 within the CSBG Fund No. 428; b. Increase appropriations within CSBG Fund No. 428 as follows: Account No. Account Name Amount 22H122 22H299 COD Related Costs $112, $150,406 c. Increase appropriations within CDD Fund 100/22 as follows: Account No. Account Name Amount Salaries General Salaries As Needed Office and Administrative Leasing $96, , $ Authorize the General Manager, Community Development Department (COD), or designee, to prepare Controller instructions and/or make any necessary technical adjustments consistent with the Council action on this matter, subject to approval of the City Administrative Officer, and instruct the Controller to implement those instructions. FISCAL IMPACT STATEMENT There is no impact on the General Fund. The recommendations comply with City Financial Policies in that funding for proposed expenditures for the City's FamilySource Program is available from Community Services Block Grant (CSBG) funds received from the U.S. Department of Health and Human Services as a pass through from the California Department of Community Services and Development. There are no General Funds supporting this activity. MAS:BLT: Attachment

5 c.f Attachment State of California DEPARTMENT OF COMMUNITY SERVICES AND DEVELOPMENT CSBG Contract Budget Summary CS0425.S (Rev.11111) Contractor Name: Prepared By: Telephone #: ATTACHMENT I CSBG CONTRACT BUDGET SUMMARY City of LA - Community Development Department Contract 12F-4422 Number: Zita Davis Contract Term: 1/1/ /31/2012 Fax Number: Expenditure Reporting: [l(]bi-monthly L:.JMonthly Contract Amount: Amendment#: $7,316,982 Date: Address: 1/12/2012 Z:"!k.U2J\ I~.ill.!;H.:Il'v.(~ SECTION 10: ADMINISTRATIVE COSTS Line Item Description CSBG Fund 1 Salaries and Wages $1,075,361 2 Fringe Benefits $360,246 3 Operating Expenses $282,575 4 Equipment 5 Out-of-State Travel. $3,000 6 Subcontractor Services 7 Other Costs: $108,063 Subtotal Section 10: Administrative Costs (Not to exceed 12% of the total operating budget Section 80) $1,829,245 SECTION 20: PROGRAM COSTS Line Item Description CSBG Funds (rounded to the nearest dollar) 1 Salaries and Wages $315,669 2 Fringe Benefits $105,749 3 Operating Expenses 4 Equipment 5 Out-of-State Travel 6 Subcontractor Services $5,047,095 7 Other Costs: $19,224 Suqtotal Section 20: Program Costs $5,487,737. SECTION 40: CSBG Budget Amount (Sum of Subtotal Sections 10 and 20) $7,316,982 SECTION 70: Enter Other Agency Operating Funds Used to Support CSBG $11,110,100 SECTION 80: Agency Operating Budget (Sum of Sections 40 and 70) $18,427,082 SECTION 90: CSBG Funds Administrative Percent (Section 10 divided by Section 80) 10%