AGENDA #2a
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Public Hearing to Amend the 2001-2002 Community Development
Program
DATE: June 10, 2002
The purpose of this public hearing is to receive citizen comments on a proposal to allocate $9,000 of Community Development program income to community service programs.
We are scheduled to return to the Council with a final recommendation on June 24, 2002.
On April 22, 2002, the Council adopted a process to amend the 2001-2002 Community Development program to consider allocating Community Development program income for a job training program to be sponsored by Youth Creating Change, and scheduled a public hearing for May 8, 2002.
On April 23, the Housing and Community Development Advisory Board reviewed Youth Creating Change’s proposal and raised concerns about the program as it was proposed. At that time, the Board did not recommend this program for funding as presented.
On May 8, 2002, the Council adopted a resolution to postpone the public hearing previously scheduled for that evening and reschedule it for tonight. We recommended postponing the public hearing to allow the Housing and Community Development Advisory Board an opportunity to review a revised proposal from Youth Creating Change. The Housing and Community Development Advisory Board reviewed the proposal on May 28, 2002.
In addition to the request from Youth Creating Change, on May 13, 2002, the Council received a request for funding from the Pines Community Center for support for a summer youth program.
PROPOSED ACTIVITIES
We have determined that the requests received from Youth Creating Change and the Pines Community Center would be eligible for funding under the Community Development program regulations. Both requests are summarized below:
Youth Creating Change
In March 2001, the Youth Creating Change Serteen Club requested Community Development funds from the Town to open a youth arcade in the Northside neighborhood. At that time, we recommended that if the group’s business plan were more fully developed and other resources and funding were committed, the Council should consider using up to $9,000 of Community Development program income or reallocate residual Community Development funds to match the funds raised. The group has since modified its original proposal and has instead opened a retail shop on North Graham Street.
At a budget public hearing on March 26, 2002, Maxecine Mitchell representing Youth Creating Change requested that the Town provide funds for this activity. At that time, the Manager reported that we would meet with representatives from Youth Creating Change and determine if an eligible job training program could be developed. We reviewed the federal Community Development regulations and determined that funds could be provided if a job training component was developed.
Youth Creating Change has submitted a revised outline of a proposed job training program and a revised budget detailing program costs (Please see Attachment 1). We note that based on comments received from the Housing and Community Development Advisory Board, we worked with Youth Creating Change to revise the budget for this program. The estimated total cost for operating the workshops has been reduced from $9,000 to approximately $3180. Youth Creating Change estimates that there would be ten eligible participants for each workshop. Eligible participants must be Chapel Hill residents and live in households earning less than 80% of the area median. If the Council approves use of funds for this program, we would determine the cost per participant and reimburse the organization for the number of eligible students. Therefore based on ten eligible participants per class, we estimate the total amount that would be eligible for reimbursement to be $2,110.
The organization intends to sponsor four workshops, each with four to five sessions. Topics of the workshops are: Financial Literacy Education and Training; Leadership Training; Job Readiness and Life Skills Training; and Entrepreneurship Training. Community Development funds would be used to pay for costs related to providing the workshops. The majority of funds would be used to pay a portion of the program director’s salary for coordination of the workshops. Funds would also be used to pay a consultant to provide financial literacy education to the estimated fifteen participants, and for the cost of materials for the workshops.
We note that $2,110 is less than the amount of funds requested ($9,000). Youth Creating Change has determined that this amount is sufficient to sponsor four workshops.
Pines Community Center
On May 13, 2002, Ms. Virginia Barbee, representing the Pines Community Center, Inc. requested that the Council provide funds for a director position for the organization’s summer camp program held at the Pine Knolls Community Center on Johnson Street. Funds were also requested for field trips and snacks for the program.
A written proposal submitted on May 22, 2002 by the Pines Community Center requests: (1) a $31,200 grant for the annual salary of the Activities Director ($600 per week); (2) a $1,000 grant for activities for the summer camp (June 10 through August 16, 2002); and (3) a grant of $4,900 for utility expenses for the Pine Knolls Community Center (Please see Attachment 2). We note that because of the schedule for the Council’s consideration of an amendment, the earliest that funds could be available to the Pines Community Center is June 26, 2002. We also note that utility expenses are not an eligible expense under the Community Development regulations for public service activities.
The program would offer childcare to residents of the Pine Knolls neighborhood Monday through Friday from 7:30 am until 5:30 pm for $25 per week. Representatives from the Grandma’s Support Group stated that the fee would be determined based on a sliding scale and that scholarships are available. The program would be offered to children ages five through twelve and is limited to thirty children. The program would include arts and crafts, educational skills, computer skills, character development, daily living skills, educational field trips, games, swimming and playground activities.
At the May 13 Council meeting, funds were specifically requested for the summer program. Therefore, the estimated grant for the summer program would be $5,200 ($4,200 for the salary of the Activities Director, $1,000 for supplies and activities). If the Council chooses to fund this program, we suggest that Community Development funds be made available for income eligible children on a reimbursement scholarship basis.
Other Proposals
The Council could also consider other eligible uses for these Community Development funds. A summary of the National Community Development Legislation and a list of eligible Community Development activities are attached (Please see Attachment 3). In addition, we have attached a summary of the 2001–2002 Community Development activities adopted by the Council on April 24, 2001 (Please see Attachment 4).
Comment
Any proposals approved by the Council would be implemented subject to meeting all U.S. Department of Housing and Development regulations. The Town would enter into Performance Agreements with the agencies, and monitor performance according to provisions of the Agreements. We note that both agencies could request additional funding through the 2002-2003 Community Development Neighborhood Revitalization program. Additional funding would be contingent upon successful performance, meeting federal requirements, and availability of funds.
NEXT STEPS
After tonight’s hearing, we will consider citizen comments and develop a recommended plan for the Council’s consideration. We will return to the Council on June 24, 2002 for consideration of an amendment. If the Council approves an amendment, we would submit a revised 2001-2002 Annual Update to the Consolidated Plan to the U. S. Department of Housing and Urban Development.
RECOMMENDATION
Housing and Community Development Advisory Board Recommendation
At its meeting on May 28, 2002, the Housing and Community Development Advisory Board reviewed the proposals and the members in attendance recommended funding for the proposals submitted by Youth Creating Change and the Pines Community Center (Please see Attachment 5 for a summary of comments from the Housing and Community Development Advisory Board).
ATTACHMENTS
1. Request from Youth Creating Change (p. 5).
2. Request from Pines Community Center, Inc. (p. 10).
3. National Objectives of the Community Development Program (p. 12).
4. 2001-2002 Community Development Plan Adopted by Council on April 26, 1999 (p. 13).
5. Summary of Comments from the Housing and Community Development Advisory Board (p. 15).