Title
MOTION TO ADOPT PROPOSED RESOLUTION 2020-R-21.
PROPOSED RESOLUTION 2020-R-21 IS A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF PEMBROKE PINES, FLORIDA, AMENDING THE CITY’S ACTION PLAN FOR COMMUNITY DEVELOPMENT BLOCK GRANT (“CDBG”) PROGRAM YEARS 2017-2019 TO REALLOCATE UNUSED FUNDS TO THE MICRO-ENTERPRISE BUSINESS ASSISTANCE PROGRAM AND ADMINISTRATION AND CONTRACTUAL PURPOSES UNDER THE 2019 ACTION PLAN; DIRECTING THE CITY MANAGER TO SUBMIT THE REVISED ACTION PLANS TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL REQUIRED DOCUMENTS; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE
Summary Explanation and Background
1. The City of Pembroke Pines is an entitlement recipient of federal funds from the U.S. Department of Housing and Urban Development (HUD) under the Community Development Block Grant (CDBG). The City has received an additional allocation of funds through the CARES Act to combat COVID-19. In order to receive these funds, the City must adopt a One-Year Action Plan that is consistent with its 2015-2019 Consolidated Plan for Housing and Community Development Programs.
2. The City currently contracts with Community Redevelopment Associates of Florida, "CRA" to administer City housing programs.
3. The City has recently received $545,110 in CDBG-CV funds to use to combat negative impacts to the COVID-19 on the City.
4. City Staff and CRA have determined that the creation of a micro-enterprise grant program will help small businesses and their employees impacted by COVID-19 that have not received government assistance such as the Payroll Protection Program (PPP), while being compliant with HUD rules and regulations regarding the use of these funds.
5. The program is for qualified small businesses with 5 employees or less, but excludes home based businesses and non for profit companies.
5. The qualified small businesses may receive up to $10,000 in assistance for payroll expenses required in the creation and/or retention of jobs that may be lost due to COVID-19 Public Health Emergency. The funding will be in the form of a loan/grant that will be forgiven after one (1) year if all the terms and conditions of program are met.
5. The following resolution amends CDBG Action plans for Program Year (PY) 2017, 2018, and 2019 in the following ways:
a. Acknowledges the recent CDBG-CV Allocation of $ 545,110 into the 2019 Action Plan.
b. Establishes a micro-enterprise program using CDBG funds.
c. Allocates CDBG-CV funds to the micro-enterprise program.
d. Reallocates PY 2018 Contractual Administration fees of $14.00 into the micro-enterprise program
e. Reallocates PY 2017 City Administration balance of $19,049.20 into the micro-enterprise program.
f. Amends PY 2019 Administration - Contractual budget to allow for an additional $75,000 in fees to CRA for Administration of the new micro-enterprise program. Administration fee of $75,000 is roughly 14% of the new CDBG-CV allocation.
6. Noticing of this application is compliant with the amended Citizens Participation plan provisions established within proposed Resolution 2020-R-20.
7. Administration recommends City Commission adopting proposed resolution 2020-R-21, then transmitting the substantial amendment to the County and HUD for their approvals.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: Grant Funded Program
b) Amount budgeted for this item in Account No:
2018 Administration - Contractual 121-554-600-2018-31501
2017 Administration - City 121-554-600-2017-31500
Reallocated to Micro-enterprise
2019 Micro-enterprise 121-554-600-2019-34943
2019 Administration - Contractual 121-554-600-2019-31501
c) Source of funding for difference, if not fully budgeted: Not Applicable.
d) 5 year projection of the operational cost of the project: Not Applicable.
e) Detail of additional staff requirements: Not Applicable.