Staff Report/Resolution of the City Council of the City of Livingston in Support of the Court Theater Renovation Project.

Maybe some technical goofs and textual gremlins. If so. Oops.

STAFF REPORT

AGENDA ITEM: Resolution of the City Council of the City of Livingston in Support of the Court Theater Renovation Project.

MEETING DATE: May 17, 2011

PREPARED BY: Jasmin Bains, Senior Accountant

REVIEWED BY: Victoria Lewis, Interim City Manager

RECOMMENDATION:

The Court Theater Committee has requested approval of a Resolution of the City Council of the City of Livingston in support of the Court Theater Renovation Project.

BACKGROUND:

Staff was requested to provide the background information below:

Grant Information:

The Roberti-Z’ Berg Harris (RZH) grant application requesting $500,000 in grant funds with matching funds in the amount of $361,524 to come from the Livingston Redevelopment Agency was approved by the State on November 28, 2005. This application was funded under the California Clean Water, Clean Air, Safe Neighborhood Parks, and Costal Protection Act of 2002. The intended purpose of the RZH grant program is to meet the urgent need for safe, open, and accessible local parks and recreational facilities for increased recreational opportunities that provide positive alternatives to social problems. The eligible uses for the grant include acquisition and development of new and existing parks, major maintenance projects of parks and recreational lands and facilities, and historic preservation of historic sites or structures.

The Community Development Block Grant (CDBG) application requesting $500,000 in grant funds and no matching funds was approved by the State on July 1, 2005. This application was funded under the 2005-2006 CDBG General Allocation Program to provide benefit to the Targeted Income Group (TIG) which is made-up of families who earn 80% or less of the County’s median income. The eligible uses for the Program include projects such as housing new construction, housing acquisition, housing rehabilitation, housing program-housing rehabilitation and housing acquisition, community facilities, public works, and public service.

The Sustainable Communities Loan and Grant Program application in the amount of $350,000 was approved by the California Pollution Control Financing Authority (CPCFA) on October 15, 2007. This application was funded under the 2007 funding round of the Sustainable Communities Grant and Loan Program to assist the cities and counties to develop and implement sustainable development growth policies, programs, and projects. Eligible projects and programs under this funding opportunity included specific plans, portions of specific plans, alternative transportation studies, finance plans, redevelopment plans, engineering studies, public projects and other projects that promote sustainable development principles.

Total grant funds awarded to the project were in the amount of $1,350,000 and matching funds in the amount of $361,524 to come from the RDA.

Current Status of Grants

To date the City has drawn down the entire $500,000 in CDBG funds, which were used to prepare architectural drawings, construction documents, a detailed cost estimate, and payment of fees associated with the building permit. In the event the City is unable to complete the project prior to the grant deadlines could require the City to pay back the entire amount of the $500,000 of CDBG funds of which the City currently has $170,620.82 on deposit, leaving a balance to be paid back to the State in the amount of $329,379.18.

To date the City has spent funds totaling $29,643 which were used to prepare a detailed cost estimate, and engineering costs to prepare the required lot line adjustment. Of the $29,643, $18,812.54 were funds drawn down from the RZH grant and $10,830.46 were matching funds used to be reimbursed back from the Livingston RDA. The RZH grant expiration date is fast approaching on March 31, 2012. The State Department of Parks and Recreation has provided the following options to the City of Livingston:

1. Complete the project as proposed by the established deadline. The agency may continue issuance of project payments to vendors through March 31, 2012.

2. Submit a formal letter to withdraw the project resulting in a total loss of grant funds, including required repayment of already advanced grant funds to date, totaling $18,812.54.

3. Submit a Change of Scope Request with the understanding that, likely, only modifications that would continue to provide the proposed public recreation experience would be approved. Elimination of major components will generally be denied. Once a Change of Scope Request is received by the State office, the timeline for processing can vary; the norm being a month. The City’s request for Change of Scope would be rate and scored on a competitive basis as it was during the initial application review.

4. Request an extension of time. If approval is given, the City may still be left with a predicament of under funding and inability to secure what is yet needed for completion according to the originally proposed scope, or approved Change of Scope Request.

The Sustainable Communities Loan and Grant program funds in the amount of $350,000 expired January 1, 2011, and reverted back to the State. The City submitted an extension of time request to the California Pollution Control Financing Authority (CPCFA), however, it was denied due to the un certainty of future funding for the project due to the touchy economic financial condition of the State and the City.

DISCUSSION:

During the Court Theater Committee meeting in April 2011, the Committee requested that City Staff prepare and submit a resolution of support of the Court Theater Renovation Project to the City Council on behalf of the Committee.

FISCAL IMPACT:
None.

ATTACHMENTS:

1. Resolution No. 2011-

2. City of Livingston letter dated November 9, 2010 to the CPCFA

3. CPCFA letter dated December 28, 2010

RESOLUTION NO. 2011-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGTON
IN SUPPORT OF THE COURT THEATER RENOVATION PROJECT

WHEREAS, the Court Theater Committee has been working toward renovating the Court Theater since 2002; and

WHEREAS, the proposed use of the building is for a community facility where families can come together for community and family events as well as for recreation use; and

WHEREAS, the City Council of the City of Livingston views the Court Theater Project as an equitable and valuable project for the citizens of Livingston.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Livingston
does hereby support the Court Theater Committee in its efforts to renovate the Court Theater.

BE IT FURTHER RESOLVED that it is deemed in the best interest of the City of Livingston that the Court Theater Committee pursue both private and government grant funds for the Court Theater Renovation Project.

Passed and adopted this 17’x’ day of May, 2011, by the following vote:

AYES:

NOES:

ABSENT:

Rodrigo Espinoza, Mayor
of the City of Livingston

ATTEST:

1, hereby certify that the foregoing resolution was regularly introduced, passed and adopted at a regular meeting of the City Council of the City of Livingston this 17’x’ day of May, 2011.

Antonio Silva, City Clerk

of the City of Livingston

City of Livingston

1416 C Street

Livingston, CA 95334

November 9, 2010

California Pollution Control Financing Authority Sustainable Communities Grant & Loan Program Attn: Deanna Hamelin

915 Capitol Mali, Room 442
Sacramento, CA 95814

RE: Grant Expiration Date
Dear Ms. Hamelin:

Pursuant to Section 5.4 of the Loan Agreement for the Sustainable Communities Grant and Loan Program the City of Livingston was required to make the initial disbursement no later than six months from the date of the agreement. However, the CPCFA granted an extension of time to the City which is set to expire on November 30, 2010.

The City’s financial condition has not changed since the last request for an extension. Due to the decline of the economy and the collapse of the lending market the City is unable to secure the additional funding to begin construction of the project. The City has been actively seeking other alternatives such as grant funds from federal, state and private entities. The scarcity of the grant funds available for arts and cultural projects during this tough economic time has resulted in the City being unsuccessful in securing grant funds. Therefore, after exhausting all possibilities and seeking other alternatives the future of this project is unpredictable making it difficult to
determine a project extension date.

The restoration of the Court `.Theater is an excellent infill development project that met many of the SCGL objectives however, due to the lack of resources the City has to regretfully put this project on hold for sometime in the future.

If you have any further questions please feel free to contact Jasmin Bains at 209-394-8041

Ext.107.

Sincerely,

Victoria Lewi§’ ‘I

Assistant City Manager/Finance Director

Ci Y Of- I..IVING Tt N

i4’16 "C’ Slroet LIVINGSTON, Cnl_.IFORN1A 95334 I P I-IONE: (209)394–8041 FAX: (209) 394-4190

i tny v.liv j ‘tofldty.cx�rn

S’I’A’I’1-: OF CALIFORNIA

CALIFORNIA POLLUTION CONTROL

FINANCING AUTHORITY

915 Capitol Mail, Room 457

Sacramento, CA 95814

Telephone: (916) 654-5610

Telecopier: (916) 657-4821

MEMBERS:

Bill Lockyer, Chairman
State Treasurer

December 28, 2010

John Chiang

State Controller

Cynthia Bryant, Director

Department of Finance

Ms. Victoria Lewis

Assistant City Manager/Finance Director

City of Livingston

1416 C Street

Livingston, California 95334

EXECUTIVE DIRECTOR: Michael Paparian

RE: Sustainable Community Grant and Loan (SCGL) Program Grant Agreement

Number 07-01 – City of Livingston Court Theater Project

Dear Ms. Lewis:

The California Pollution Control Financing Authority ("CPCFA") is in receipt of the City of Livingston’s ("Grantee" or the "City") letter dated November 9, 2010 indicating that the Court Theater Project ("Project") has been put on hold due to economic decline and lack of funding, Pursuant to Section 5.4 of the SCGL Grant Agreement, the Grantee was required to make an initial disbursement no later than six months from the date of the agreement. CPCFA granted an extension, which expired on November 30, 2010. In addition, pursuant to the Recitals Section of the Grant Agreement, the term of the agreement shall be thirty-six (36) months from the execution date of the Agreement, which in this case is January 1, 2011. Since the City is unable to secure the necessary funds to complete the Project and the Project has been placed on hold for the foreseeable future, the City’s SCGL Grant must be forfeited. This letter serves as an acknowledgement that the City intends to revert the SCGL grant funds in the amount of $350,000 back to CPCFA.

If you have any questions, please feel free to call Jason L. Bradley, Program Manager, at (916) 653-3376.

Sincerely,

Sherri Kay Wahl

Deputy Executive Director

cc: Jasmin Rains, Sr. Accountant

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