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City of Missoula, Montana Item to be Referred to City Council Committee Committee: Administration and Finance Item: Resolution amending FY 09 Action Plan and awarding supplemental Community Development Block Grant (CDBG) funds Date: June 19, 2009 Prepared by: Mike Barton, OPG Initiated by: Mayor John Engen Action Required: Consider an amended resolution to award CDBG-R funds. Recommended Motion: I move the City Council adopt the attached amendment to Resolution amending its Fiscal Year 09 Action Plan and awarding $168,720 in Community Development Block Grant funds appropriated under the American Recovery and Reinvestment Act. Timeline: Referral to committee: June 22, 2009 Committee discussion: June 24, 2009 Public Hearing: N/A Deadline: ASAP Background and Alternatives Explored: The Congress has appropriated additional CDBG funds as part of the American Recovery and Reinvestment Act (ARRA). The Department of Housing and Urban Development (HUD) has allocated $168,720 of those funds to the City of Missoula. On June 1, the City Council conducted a special meeting and public hearing, following which it adopted Resolution 7424 awarding $151,850 as follows 1) $22,000 to the Missoula Fire Department for installation of two fire hydrants in the Franklin to the Fort neighborhood. 2) $75,000 to the Missoula Parks and Recreation Department for installation of playground equipment at Lafray Park. 3) $54,850 to the Missoula Parks and Recreation Department for replacement of playground equipment at Kiwanis Park. Subsequent to the Council’s action, HUD officials notified the City that awards for recreational facilities would not be considered “basic infrastructure.” HUD also informed City staff that administrative expenses associated with CDBG-R must be included in advertisement of public meetings and the adopted resolution. As a result City staff has recommended that CDBG-R funds be used for health, public safety and structural improvements to the pedestrian bridge that connects the North Side to Toole Avenue. Staff has contacted HUD officials relative to this proposal and has been assured that it meets the Department’s mandate “to use CDBG-R funds for ---PAGE BREAK--- hard development costs associated with infrastructure activities that provide basic services to residents.” The amended resolution also incorporates the hydrant project in the Franklin to the Fort neighborhood that was approved previously as well as the administrative costs that were included as information in the original referral. Financial Implications: The City must respond to HUD with an amended Action Plan to receive the $168,720 allocation.. Attachments: Applicable HUD regulations: http://www.hud.gov/recovery/cdbg-r-notice.pdf Resolution