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HomeMy WebLinkAboutR-1999-010 Consolidated Plan Amendment PolicyX• • • • RESOLUTION NO. R-99- 10 A RESOLUTION approving and adopting an amendment to the Consolidated Plan in order to define what constitutes a "substantial change" to the One Year Action Plan and/or Consolidated Plan regarding use of CDBG funds. WHEREAS, the City of Yakima is an entitlement city pursuant to Community Block Grant funds as specified by the United States Department of Housing and Urban Development and is required to file a One Year Action Plan each year subsequent to the Consolidated Plan application developed in 1995; and WHEREAS, the One Year Action Plan is developed using the priorities of the community, the direction of City Council and the approved programs as established in the Consolidated Plan; and WHEREAS, the One Year Action Plan includes Community Development Block Grant (CDBG) and HOME budgets, and activities and expenditures as projected by the Office of Neighborhood Development Services; and WHEREAS, the City Council approved the One Year Action Plan for 1999 on November 17, 1998; and WHEREAS, circumstances occur during the course of the year that require a change in the purpose of a budgeted program, a change in the scope of a budgeted program, or require that funds be reallocated from a budgeted program to a new activity; and WHEREAS, "substantial changes" generally require an amendment of the One Year Action Plan and/or the Consolidated Plan; and WHEREAS, attached hereto is a proposed amendment to the Consolidated Plan that defines what constitutes a "substantial change"; and WHEREAS, said amendment was reviewed and was recommended by the Council Neighborhood Development Committee on November 6, 1998; and WHEREAS, the City Council of the City of Yakima deems it to be in the best interests of the City of Yakima to adopt the attached amendment to the Consolidated Plan in order to define what constitutes a substantial change to the One Year Action Plan and/or Consolidated Plan, now, therefore, (1k)res/cdbg 1999 -amendment -pm BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The attached and incorporated amendment to the Consolidated Plan is hereby approved and adopted in order to define what constitutes a "substantial change" to the One Year Action Plan and/or Consolidated Plan. ADOPTED BY THE CITY COUNCIL this 19th day of January, 1999. A 1"1EST: City Clerk (1k)res/cdbg 1999 -amendment -pm Z..., 7����L ,- John Puccinelli, Mayor • CITY OF YAKIMA DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES CONSOLIDATED PLAN AMENDMENT POLICY INTRODUCTION On an annual basis, City of Yakima develops a Consolidated Plan (and/or Annual Action Plan). This document is used to request Community Development Block Grant and HOME funds from the U.S. Department of Housing and Urban Development (HUD). The Consolidated Plan consists of locally adopted affordable housing and community development objectives and descriptions of the various activities to be funded. During the course of conducting housing and community development activities, circumstance may occur which affect the schedule, budget or accomplishments of an activity. In some cases the planned activities are completed at a lower cost than anticipated. When funds are "deobligated" from an activity, they are reallocated to a new or different activity. The most "substantial" of changes to activities require an Amendment to the Consolidated Plan (and/or Annual Action Plan). It is the intent of this policy statement to define what a "substantial change" in an activity is. This definition of substantial change is used to determine whether or not an amendment to the Consolidated Plan is required. If an Amendment is made to the Consolidated Plan, the process involves citizen review of the proposal, assessment of environmental impact and evaluation of the proposal relative to City of Yakima Consolidated Plan strategies and objectives. An Amendment is made only if a significant change in the type of an activity, purpose, eligibility, or cost affect an activity. The public will be invited to comment for 30 days on proposed amendments before they are implemented. This policy defines the activity purpose, scope, and funding allocation changes, which require an amendment to the Consolidated Plan. If a proposed activity change meets the definition in this policy, the proposal must be reviewed and approved by City of Yakima before proceeding with the changed activity. There may be factors other than those stated in this policy considered by City of Yakima, which result in the proposed change not being approved. In this policy document, the definition of "substantial change" is supplemented with examples of circumstances considered to meet the definition. The examples are provided for illustrative purposes only and do not include the complete range of "substantial changes" to affordable housing or community development activities. There are three (3) types of changes to activities included in this definition, purpose, scope, and funding program allocation. A change of any one of these types could require a Consolidated Plan amendment. 1 PURPOSE OF PROJECT During the project selection process, the purpose of each project is evaluated as to how it furthers City of Yakima's Consolidated Plan objectives and strategies. A change to the purpose of a project, which would result in a different objective being furthered, requires an amendment. If the CDBG or HOME eligibility category changes an amendment is required. Example of a change in project purpose requiring an amendment: Change from improving the physical facilities of a park to providing support to youth sports programs that use the park. Change from a housing project involving development costs, to a human services program activity. SCOPE OF A PROJECT Each approved project includes a listing of activities, a project implementation schedule and budget. The project selection process involves evaluation of the reasonableness of costs and schedule, and eligibility of activities. An analysis of how the activities relate to the purpose of the project is also made. A change to the scope of a project, which would add activities, requires an amendment. A change to the scope of a project, which would delete activities, requires an amendment unless the change results from an approved competitive bidding process or a higher than anticipated average cost per direct beneficiary. Changes in schedule require an amendment if the result would be to extend an activity more than one year beyond the period of performance stated in Subrecipient, Contractor, Interdepartmental or other Agreements. Example of a change in project scope requiring an amendment: Change from improving a building for expanded provision of services to building improvements without an expansion of services. Change production of owner -occupied housing units to production of rental housing units. FUNDING ALLOCATION During a program year, funds are allocated to each designated program. A change in the allocation funds of one program to another requires an amendment. An amendment is not required when the disbursement change is less than 10% of the original allocation or 5% of total annual budget. Example of a change in funding allocation requiring an amendment: Change from making a $25,000 disbursement from an Infrastructure Program that was allocated $50,000 and transferring the funds to a housing program. 2 POLICY STATEMENT It is the policy of City of Yakima to require an amendment to the Consolidated Plan (and/or Annual Action Plan) if one or more of the projects funded, changes substantially during the program year. A substantial change to an affordable housing or community development activity is any one or more of the following: 1. A change in the purpose of a project which would result in a different objective being furthered, than previously approved. 2. A change in the scope of a project which would result in a deleted activity or activities, unless the deletion was necessary because of competitive bidding results or higher than average cost per direct beneficiary. 3. A change in the scope of a project, which would result in extension of an activity three months beyond the approved period of performance contained in Subrecipient or Contractor Agreements. 4. A change in the allocation funds from one program to another different program in excess of 10% of the original allocation or 5% of total annual budget. 3 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No.: / For Meeting of: January 19, 1999 ITEM TITLE: Consolidated Plan Amendment Policy SUBMITTED BY: 1 tam Cook, Director of Community and Economic Development CONTACT PERSON/TELEPHONE: Marvin Miller, Acting Manager, Neighborhood Development Services (509) 575-6101 SUMMARY EXPLANATION: On an annual basis, City of Yakima develops a Consolidated Plan (and/or Annual Action Plan). This document is used to request Community Development Block Grant and HOME funds from the U.S. Department of Housing and Urban Development (HUD). The Consolidated Plan consists of locally adopted affordable housing and community development objectives and descriptions of the various activities to be funded. During the course of conducting housing and community development activities, circumstance may occur which affect the schedule, budget or accomplishments of an activity. In some cases the planned activities are completed at a lower cost than anticipated. When funds are "deobligated" from an activity, they are reallocated to a new or different activity. The most "substantial" of changes to activities require an Amendment to the Consolidated Plan (and/or Annual Action Plan). It is the intent of this policy statement to define what a "substantial change" in an activity is. This definition of substantial change is used to determine whether or not a Council approved amendment to the Consolidated Plan is required. 1. A change in the purpose of a project which would result in a different objective being furthered, than previously approved. 2. A change in the scope of a project which would result in a deleted activity or activities, unless the deletion was necessary because of competitive bidding results or higher than average cost per direct beneficiary. 3. A change in the scope of a project, which would result in extension of an activity three months beyond the approved period of perfoimance contained in Subrecipient or Contractor Agreements. 4. A change in the allocation funds from one program to another different program in excess of 10% of the original allocation or 5% of total annual budget. This proposed Consolidated Plan Amendment Policy was reviewed and recommended by the Council Neighborhood Development Committee at their meeting on November 6, 1998. Resolution X Ordinance Contract Other Specify Funding Source: APPROVAL FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Approve Consolidated Plan Amendment Policy BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: