AGENDA #4d
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Proposed Amendment to the 2001-2002 Community Development Program
DATE: June 24, 2002
The purpose of this memorandum is to recommend an amendment to the 2001-2002 Community Development Program.
The attached resolution would amend the Community Development program to allocate $7,360 of Community Development Program funds as follows:
Sertoma International / Youth Creating Change $2,110
Pines Community Center/ Grandma’s Support Group $5,250
$7,360
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 rescheduling the public hearing for June 10, 2002 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.
The Council held a public hearing on June 10, 2002, to receive citizen comments on how to allocate funds. After the close of the public hearing, Ms. Virginia Barbee, representing the Pines Community Center/Grandma’s Support Group, requested that the Town provide funds for its summer program for youth living in the Pine Knolls neighborhood during the Council’s petition process. No other comments were received.
DISCUSSION
Two proposals are under consideration by the Town Council for the use of current year Community Development funds.
1. Youth Creating Change
History
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. In 2002, the group opened a retail shop on North Graham Street instead of pursuing a youth arcade, with no assistance from the Community Development program.
At a Town Council budget public hearing on March 26, 2002, Ms. Maxine Mitchell representing Youth Creating Change requested that the Town provide funds for this activity. At that time, we reported that staff 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.
Revised Proposal
After meetings with staff, Youth Creating Change submitted a revised outline of a proposed job training program and a revised budget detailing program costs (please see Attachment 1). 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.
Budget
The estimated total cost for operating the workshops is approximately $3180, of which $2110 is estimated to be eligible for reimbursement using Community Development funds. Staff proposes to pay for program costs on a reimbursement scholarship basis, by session. 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. The Town would reimburse the organization on a scholarship basis for the number of eligible students actually enrolled, up to 10 participants. Therefore, based on ten eligible participants per class, we estimate the total amount that would be eligible for reimbursement is $2,110.
Evaluation
This request would meet the objectives of the County-wide Consolidated Plan for Housing and Community Development Programs adopted by the Council and the Towns of Carrboro and Hillsborough and Orange County, as a public service which supports the Town’s current neighborhood revitalization efforts in the Northside and Pine Knolls neighborhoods. All participants for which the Town would reimburse would be lower-income (from households making less than 80% of median income by household size) and reside in the Chapel Hill city limits.
The Town would enter into Performance Agreements with the 501(c)(3) agency that sponsors Youth Creating Change (Sertoma International). The performance agreements include federal provisions related to the Community Development Block Grant Program with which this agency must comply. These include provisions related to fair housing and equal opportunity, employment and contracting, conflict of interest, financial records (OMB cost circulars), uniform administrative requirements and cost principles, documentation and recordkeeping, retention of records, access to records, maintaining client data, procurement provisions, nondiscrimination, and program income. We recommend the Town’s performance agreement include a provision that administrative and management mechanisms are in place to operate this program in accordance with federal regulations.
2. Pines Community Center
History
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.
In a written proposal submitted on May 22, 2002, the Grandma’s Support Group of the Pines Community Center expanded the request to include: (1) a $31,200 grant for an annual salary for an 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). This memorandum responds to the summer camp proposal as presented by Ms. Barbee to the Council on May 13, 2002.
Proposal
According to the information submitted, 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. The materials state that fees 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.
Budget
At the May 13 Council meeting, funds were requested for staff costs and activities for a summer program, to run from June 10 to August 16, 2002. Using a start date of July 1, 2002, we estimate the following budget for the program:
* Staff costs ($600/week x 7 weeks) $4,200
* Materials/supplies for activities 1,050
TOTAL $5,250
Staff proposes to pay for program costs on a reimbursement scholarship basis. For an estimated 30 children, the cost per child would be $175 ($5250/30). The Town would reimburse the program $175 for each eligible low-income child who is a Chapel Hill resident enrolled in the program, up to a maximum of 30 students. Federal funds cannot be used to reimburse for program costs incurred before the Council’s approval of the program and the signing of a performance agreement.
At the June 10 public hearing, Ms. Barbee stated that the majority, if not all of the children that participate in the program would not be required to pay the $25 per week fee. In addition, Ms. Barbee explained that the original proposal had been slightly modified and that the requested $600 per week would be used to pay for three staff people (each would receive $200 per week) instead of the weekly salary for the Activities Director of the program.
Evaluation
This request would meet the objectives of the County-wide Consolidated Plan for Housing and Community Development Programs adopted by the Council and the Towns of Carrboro and Hillsborough and Orange County, as a public service which supports the Town’s current neighborhood revitalization efforts in the Northside and Pine Knolls neighborhoods. All participants for which the Town would reimburse would be lower-income (from households making less than 80% of median income by household size) and reside in the Chapel Hill city limits.
The Town would enter into Performance Agreements with the 501(c)(3) agency that sponsors the Grandma’s Support Group, the Pines Community Center, Inc. The Town’s history with the Pines Community Center, Inc. includes a federal audit in 1998. The audit of the Pines Community Center conducted by the U.S. Department of Housing and Urban Development (HUD) resulted in the Pines Community Center having to repay Community Development funds that the Town loaned to the organization for housing activities. The audit report recommended that the Town “ensure the Pine Knolls Neighborhood Revitalization Program administrator establishes effective management procedures, if the program is continued.” The Town’s performance agreement would require that all federal regulations be followed.
The performance agreements include federal provisions related to the Community Development Block Grant Program with which this agency must comply. These include provisions related to fair housing and equal opportunity, employment and contracting, conflict of interest, financial records (OMB cost circulars), uniform administrative requirements and cost principles, documentation and recordkeeping, retention of records, access to records, maintaining client data, procurement provisions, nondiscrimination, and program income. We recommend the Town’s performance agreement include a provision that administrative and management mechanisms are in place to operate this program in accordance with federal regulations.
In addition, questions arose in 1999 and 2000 about the building condition of the Pines Community Center building at 107 Johnson Street, the facility in which this summer camp would be located. In response to the Council’s request, we provided a report to the Council on June 26, 2000 about the results of inspections. At that time, the building was found to meet the Town’s Minimum Housing Code (please see Attachment 3). The Orange County Health Department also provided an additional letter dated July 3, 2000 concerning follow-up inspections related to molds in the building (please see Attachment 4). Since that time, the Pines Community Center has replaced the roof of the building. We recommend that the Town’s Performance Agreement include a provision that the facility be shown to continue to meet the Town’s Minimum Housing Code prior to the start of the program.
The Division of Child Development of the State Department of Health and Human Services informed us that no child care license is required for summer camps operating less than four months of the year. However, if Subsidized Child Care Program funds are accepted for the children (distributed by the Department of Social Services), the facility would need to be licensed.
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).
Manager’s Recommendation: That the Council adopt the attached resolution to amend the 2001-2002 Community Development program and allocate $7,360 of Community Development program income as follows:
Sertoma International / Youth Creating Change $2,110
Pines Community Center/ Grandma’s Support Group $5,250
$7,360
The resolution includes a provision that administrative and management mechanisms are in place to operate these programs according to federal regulations.
1. Proposal from Youth Creating Change (p. 8).
2. Proposal from Pines Community Center, Grandma’s Support Group, May 22, 2002 (p. 13).
3. June 26, 2000 Memorandum to Council about the Pines Community Center (p. 16).
4. Letter of July 3, 2000 from the Orange County Health Department concerning 10 Johnson Street (p. 22).
5. Housing and Community Development Advisory Board Summary of Action, May 28, 2002 (p. 24).
A RESOLUTION AMENDING THE 2001-2002 COMMUNITY DEVELOPMENT PROGRAM (2002-06-24/R-2)
WHEREAS, on April 22, 2002, the Council adopted a process to amend the 2001-2002 Community Development program to allocate $9,000 of Community Development program income; and
WHEREAS, on June 10, 2002, the Council held a public hearing to receive citizen comments;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council amends the 2001-2002 Community Development program to allocate $7,360 of Community Development funds as follows:
Sertoma International/Youth Creating Change $2,110
Pines Community Center/Grandma’s Support Group $5,250
$7,360
BE IT FURTHER RESOLVED that the Council authorizes the Town Manager to enter into Performance Agreements with Sertoma International/Youth Creating Change and the Pines Community Center/Grandma’s Support Group for use of these funds, such agreements to include provisions that administrative and management mechanisms are in place to operate these programs according to federal requirements, including the 1998 audit requirement of the U.S. Department of Housing and Urban Development that the Town “ensure the Pine Knolls Neighborhood Revitalization Program administrator establishes effective management procedures.”
BE IT FURTHER RESOLVED that the Council authorizes the Manager to submit an amended 2001-2002 Annual Update to the Consolidated Plan to the U.S. Department of Housing and Urban Development to reflect this amendment.
This the 24th day of June, 2002.