Item Coversheet

NEW BUSINESS  17.

COMMITTEE MEMORANDUM

TO: Finance and Citywide Projects Committee Members


FROM:
Jimmy L. Morales, City Manager


DATE: April 20, 2018


SUBJECT:

DISCUSSION REGARDING THE RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND/OR AUTHORIZING THE FOLLOWING ACTIONS: AUTHORIZING THE CITY MANAGER TO RECAPTURE $178,378.09 OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS PREVIOUSLY ALLOCATED TO THE MADELEINE APARTMENTS REHABILITATION PROJECT PURSUANT TO RESOLUTION NO. 2018-30135, UNDER THE ACTION PLAN FOR FY 2016/2017 AND THE FIVE YEAR CONSOLIDATED PLAN FOR FY 2013-2017, AND REALLOCATING THESE RECAPTURED CDBG FUNDS TO THE NEPTUNE APARTMENTS PROJECT; AUTHORIZING THE CITY MANAGER TO SUBMIT THE REVISED ACTION PLAN AND CONSOLIDATED PLAN TO THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD); AND, FURTHER, AUTHORIZING THE CITY MANAGER TO EXECUTE ALL NECESSARY DOCUMENTS OR AGREEMENTS



KEY INTENDED OUTCOME:
Supplemental

HISTORY:

Item C7N from the April 11, 2018 City Commission meeting recaptured funds from a City-sponsored capital project and reallocated these funds to another City-sponsored capital project in order to ensure that the City met ratio for CDBG funds by July 30, 2018.

 


ANALYSIS:

The City is obligated to not exceed a 1.5 funds ratio by August 2, 2018. In order to meet this ratio, the City must expend $478,000 and withdraw these funds from the Treasury by July 30th.

 

By reallocating the funds from the Madeleine Village project which has been deemed overfunded because of project constriction limits, the City can expend these funds to replace the roof at the Neptune Apartments which is failing and leading to water intrusion in the units. All of the acquired properties have significant capital needs that must be met to ensure they meet housing quality standards.

 

Please further note that the City can award these capital funds as delineated in the City’s HUD approved Consolidated Plan.  The City's Consolidated Plan states that awards to sub-recipients must be via one of these four methods:

1. Application  with grantee follow-up (Request For Proposal process);

2. Grantee survey of qualified organizations, with direct solicitation thereafter (survey of organizations followed by Request For Proposal from interested organizations);

3. Response to unsolicited application with adherence to City's Consolidated Plan and HUD rules; and

4. Review of existing sub-recipients' performance for compliance before renewing their participation via new funding agreement (ongoing funding of compliant existing provider).

 

Please note that no organization seeking a capital project would qualify for existing year funds as:

* They are not an existing sub-recipient of CDBG funds;

* They have not submitted an eligible unsolicited funding proposals; and

* Issuance of  Requests For Proposals and resulting  environmental reviews and HUD approval for selected projects would not meet the August 2nd deadline.



CONCLUSION:
The Administration is seeking approval from the Mayor and Commission to enable the timely expenditure of these funds while also ensuring that much-needed capital improvements are made at the Neptune Apartments.

ATTACHMENTS:
DescriptionType
April 11 2018 Commission Item C7NMemo