#5 Authorize submission of amendment to Community Block Grant Emergency Assistance Program contrat (File Res. #2009-656)
NEIGHBORHOOD SERVICES MEMORANDUM
November 13, 2009
TO: City Council
FROM: Jennifer Petruzzello, Neighborhood Services Director
SUBJECT: Action on a Proposed Resolution Authorizing the Submission of an
Amendment to the Community Block Grant Emergency Assistance
Program Contract between the State of Wisconsin Department of
Commerce and the City of Janesville (File Res. 2009-656)
Summary
Federal funds are available under the Community Development Block Grant
Emergency Assistance Program (CDBG-EAP) to assist local units of government
that have experienced a natural disaster. The City of Janesville has previously
applied for and received a grant award of $1,718,876 for the local share of the
residential buy-out program, residential rehabilitation, public facilities and business
assistance.
The Department of Commerce has announced the availability of an additional
$75,000,000 in disaster recovery funds. City staff is recommending that the City
Council authorize staff to submit an amendment to the CDBG-EAP Contract
between the Wisconsin Department of Commerce and the City of Janesville for
additional funding. Additional funding totaling $2,695,000 is proposed to be used for
public infrastructure and facilities, mitigation efforts, business assistance, and
acquisition and demolition of damaged properties in the floodplain.
Background
In March of 2009, the City applied for and received funding under the Community
Development Block Grant Emergency Assistance Program (CDBG-EAP). In total,
the City was awarded: $1,718,876, which included $194,940 in housing acquisition,
demolition and relocation for substantially damaged properties, $39,263 in
residential rehabilitation, $411,747 in public facilities, $1,000,000 in business
assistance, and $72,926 in administration. All funding under this grant is anticipated
to be expended by the first quarter of 2010.
The Community Development Block Grant-Emergency Assistance Program (CDBG-
EAP) is a special program the Wisconsin Department of Commerce, Division of
Housing and Community Development (DHCD) activated to assist local units of
government that have experienced a natural or manmade disaster. The storms and
flooding of June 5 through July 25, 2008, led to a federal disaster declaration,
FEMA-DR-1768 WI, in 31 Wisconsin counties including Rock County.
Recently, the Department of Commerce has announced the availability of an
additional $75,000,000 in disaster recovery funds. Requests for amendments to our
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contract for additional funding under this program must be received by the
Department of Commerce on or before December 4, 2009.
There are three categories of eligible activities.
1. The repair and replacement of low and moderate-income (LMI) owner
occupied housing that is the principal place of residence and was damage
during the disaster;
2. The repair and replacement of public infrastructure limited to facilities that
affect the health and safety of residents of the community that was damaged;
and
3. Assistance to businesses having unmet recovery needs including the repair
of flood damages, loss on inventory and lack of working capital due to lost
revenues.
The City is proposing to request an additional $2,695,000 in funding to be used for
public infrastructure and facilities, mitigation, business assistance and acquisition
and demolition of damaged properties in the floodplain.
City staff is proposing an amendment to our current contract to include the following:
1. Funding in the amount of $251,000 for 3 residential properties located within
the Mole Sadler Neighborhood that were substantially damaged. These
properties were originally included in another FEMA grant application, but
were denied funding for environmental reasons.
2. Funding in the amount of $694,000 for public infrastructure and facilities that
were damaged in the flood and for mitigation efforts to reduce future damage
due to flooding.
3. Funding in the amount of $1,500,000 to purchase and demolish residential
and commercial properties that were damaged and that were identified within
areas that were inundated with flood waters.
4. Funding in the amount of $150,000 in additional business assistance.
5. Funding in the amount of $100,000 for program administration.
City Manager Recommendation:
The City Manager supports the Neighborhood Services Department’s proposed
amendment.
As part of the grant requirement the City of Janesville is required to conduct a public
hearing to gain citizen input regarding the need for funding under this program. The
Community Development Authority will hold a public hearing for this purpose on
November 18, 2009. Their recommendation will be forwarded to the City Council
prior to the Council meeting.
cc: Eric J. Levitt, City Manager
Jacob J. Winzenz, Assistant City Manager/Director of Administrative Services
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RESOLUTION NO. 2009-656
RESOLUTION AUTHORIZING THE SUBMITTAL OF AN AMENDMENT TO THE
COMMUNITY DEVELOPMENT BLOCK GRANT EMERGENCY ASSISTANCE PROGRAM
CONTRACT BETWEEN THE STATE OF WISCONSIN DEPARTMENT OF COMMERCE AND
THE CITY OF JANESVILLE
WHEREAS
, Federal funds are available under the Community Development Block
Grant-Emergency Assistance Program (CDBG-EAP), administered by the Wisconsin
Department of Commerce, Division of Housing and Community Development (DHCD)
to assist local units of government that have experienced a natural or manmade
disaster; and
WHEREAS
, the storms and flooding of June 5 through July 25, 2008, led to a federal
disaster declaration, FEMA-DR-1768 WI, in 31 Wisconsin counties including Rock
County; and
WHEREAS,
in March of 2009, the City of Janesville applied for and received funding
under the Community Development Block Grant Emergency Assistance Program
(CDBG-EAP) in the amount of $1,718,876 for housing acquisition, demolition and
relocation costs for substantially damaged properties; residential rehabilitation; public
facilities; business assistance; and administration; and
WHEREAS
, the Department of Commerce has announced the availability of an
additional $75,000,000 in disaster recovery funds; and
WHEREAS
, the City of Janesville has undertaken public facility improvements that
address damages and losses during the disaster period; and
WHEREAS,
the citizens of Janesville have incurred significant cost associated with the
disaster; and
WHEREAS,
the City of Janesville desires to undertake mitigation efforts that will
prevent damages due to future flooding events; and
WHEREAS
, the Janesville Community Development Authority (CDA) held a public
hearing on November 18, 2009 to seek citizen input into the need for additional funding
under this program; and
WHEREAS
, there is no local match requirement for CDBG-EAP; and
WHEREAS,
the City of Janesville is seeking additional CDBG-EAP funding to be used
for eligible activities; and
WHEREAS,
the Common Council hereby finds that this funding and application are in
the best interest and benefit of the City and the Community.
NOW, THEREFORE, BE IT RESOLVED
by the Common Council of the City of
Janesville that they authorize and direct the City Manager and/or his designee(s) to
submit an amendment request to the Community Development Block Grant Emergency
Assistance Program Contract between the State of Wisconsin Department of
Commerce and the City of Janesville, and to provide such additional information as may
be required and to administer the program in accordance with all applicable State and
Federal Grant Regulations; and
BE IT FURTHER RESOLVED
, that the City Manager and/or his designee(s) on behalf
of the City of Janesville is/are hereby authorized and empowered to negotiate, draft,
modify, review, execute, and enter into additional agreements, record, file and/or make
minor modifications and/or amendments to any and all documents, papers, forms, and
agreements, and to take whatever other actions as the City Manager may determine,
from time to time and at any time, necessary and/or desirable to effectuate the intent of
this resolution and/or the public good.
ADOPTED:
Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Brunner
McDonald
Eric J. Levitt, City Manager
Perrotto
Rashkin
ATTEST:
Steeber
Truman
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
Wald Klimczyk, City Attorney
Proposed by: City Staff
Prepared by: Neighborhood Services Director
NEIGHBORHOOD SERVICES MEMORANDUM
November 19, 2009
TO: City Council
FROM: Jennifer Petruzzello, Neighborhood Services Director
SUBJECT: Community Development Authority Recommendation
Amendment to the Community Block Grant Emergency Assistance
Program Contract between the State of Wisconsin Department of
Commerce and the City of Janesville (File Resolution 2009-656)
Summary
On November 23, 2009, the City Council will consider an amendment to the
Community Block Grant Emergency Assistance Program Contract between the
State of Wisconsin Department of Commerce and the City of Janesville (File
Res. 2009-656). Details regarding this item are included in your agenda packet.
The CDA held their regular meeting on Wednesday evening, November 18,
2009. Because this meeting occurred after the distribution of agenda materials,
their recommendation is being forwarded to the City Council under this separate
memorandum.
Backgroundand Public Hearing
The Department of Commerce has announced the availability of an additional
$75,000,000 in disaster recovery funds. City staff is recommending that the City
Council authorize staff to submit an amendment to the CDBG-EAP Contract
between the Wisconsin Department of Commerce and the City of Janesville for
additional funding. Additional funding totaling $2,695,000 is proposed to be used
for public infrastructure and facilities, mitigation efforts, business assistance, and
acquisition and demolition of damaged properties in the floodplain.
As part of the grant requirement the City of Janesville is required to conduct a
public hearing to gain citizen input regarding the need for funding under this
program. The Community Development Authority held this public hearing on
November 18, 2009. The following individuals spoke:
Ms. Christine Mozer, from the 2008 flood recovery program, announced that they
are beginning a public notification process regarding assistance they have
available from a federal social services block grant. She asked if funding could
be included to provide storm sewer in the Putnam Avenue area. She also asked
about business assistance.
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Ms. Andrea Briarmoon, 339 Locust Street, spoke to say that she thought the
CDA should direct staff to include funding for the Putnam Avenue area.
Ms. Laura Markley, from the 2008 flood recovery program, asked if there was
room for interpretation in the grant criteria to include funding for the Putnam
Avenue area.
Staff explained that funding had not been included for the Putnam Avenue area
because it does not appear to meet the grant criteria.
This area has been impacted by high ground water problems since before the
2008 flood event, although residents have reported that the problems have
increased. The installation of storm sewers will not reduce the problems
experienced within the private properties. It would redirect the water flow from
the sidewalk and street area to a storm sewer. The estimated cost for the
installation of storm sewer is approximately $375,000.
In response to the inquiry about business assistance, staff explained that $1
million in funding was awarded to the City for business assistance under this
program. To date, approximately $800,000 has been awarded for businesses
and property owners to repair property damage and to cover lost inventory. The
remaining $200,000 will be awarded for business loss. This amount is believed to
be sufficient to cover the eligible requests received.
CDA members requested that the grant criteria be made available to the City
Council. Funding is available for housing, public facilities and business
assistance that address damages and losses during the disaster period of
June 5 through July 25, 2008. In general, CDBG-EAP activities include: repair,
restoration and/or replacement, and must be in direct response to disaster
damage.
There are three categories of eligible activities.
1. The repair and replacement of low and moderate-income (LMI) owner
occupied housing that is the principal place of residence and was damage
during the disaster;
2. The repair and replacement of public infrastructure limited to facilities that
affect the health and safety of residents of the community that was
damaged (including mitigation activities as they relate to the repair of
damaged facilities); and
3. Assistance to businesses having unmet recovery needs including the
repair of flood damages, loss on inventory and lack of working capital due
to lost revenues.
Additional Community Development Block Grant rules and regulations apply (i.e.
environmental review and Davis-Bacon prevailing wage rates).
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CDA Recommendation
The CDA unanimously recommended the City Council authorize the filing of an
amendment to the Community Block Grant Emergency Assistance Program
Contract between the State of Wisconsin Department of Commerce and the City
of Janesville. This amendment would include an additional $2,695,000 to be
used for public infrastructure and facilities, mitigation efforts, business
assistance, and acquisition and demolition of damaged properties in the
floodplain.
Funding would be requested as follows:
1. Funding in the amount of $251,000 for 3 residential properties located
within the Mole Sadler Neighborhood that were substantially damaged.
These properties were originally included in another FEMA grant
application, but were denied funding for environmental reasons.
2. Funding in the amount of $694,000 for public infrastructure and facilities
that were damaged in the flood and for mitigation efforts to reduce future
damage due to flooding.
3. Funding in the amount of $1,500,000 to purchase and demolish residential
and commercial properties that were damaged and that were identified
within areas that were inundated with flood waters.
4. Funding in the amount of $150,000 in additional business assistance.
5. Funding in the amount of $100,000 for program administration.
cc: Eric J. Levitt, City Manager
Jacob J. Winzenz, Assistant City Manager/Director of Administration
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