CPG3rdQtrCCmtg5-16-22(klk)
CITY OF SIMI VALLEY
MEMORANDUM
May 16, 2022
TO: City Council
FROM: Department of Environmental Services
SUBJECT: RECEIVE AND FILE UPDATE ON THE FISCAL YEAR (FY) 2021 -22
COMMUNITY PROJECTS GRANT PERFORMANCE REPORT FOR THE
THIRD QUARTER ACTIVITIES AND AUTHORIZ E THE RELEASE OF
CONTINGENCY FUNDS
STAFF RECOMMENDATION
It is recommended that the City Council receive and file the Community Projects Grant performance report for the third quarter of Fiscal Year (FY) 2021-22 and authorize the release of contingency funds in the amount of $10,000 to the Free Clinic of Simi Valley.
BACKGROUND AND OVERVIEW
On May 9, 2011, the City Council approved a Memorandum of Understanding (MOU) between the City of Simi Valley and Waste Management related to the expansion of the Simi Valley Landfill and Recycling Center. The MOU provides annual funding of $150,000 for co mmunity projects and programs to be distributed at the discretion of the City Council. On March 11, 2019, the City Council awarded all available program funding for FY 2019-20, FY 2020-21, and FY 2021-22, a combined total of $461,102, which included $11,1 02 from unexpended prior awards, to the Free Clinic of Simi Valley pursuant to a c ontract. The Community Projects Grant award is subject to a contingency amount of $10,000 for FY 2021-22, which may be awarded to other community organizations at the discretion of the City Council for an emergent need. The Free Clinic’s expenditure period began on July 1, 2019 (FY 2019-20) and will conclude on June 30, 2022 (FY 2021- 22). The Free Clinic is required to submit quarterly performance reports identifying progress on the approved scope of work and maintain the records for ten years. Additionally, pursuant to City Council direction on November 20, 2017, and the contract between the City and the Free Clinic for the grant awards, any unexpended funds at the conclusion of the expenditure period shall be returned to the City. The City has the discretion to allocate these funds during the next award cycle.
FINDINGS AND ALTERNATIVES
Due to the considerable sum of the multi -year award and the three- year expenditure period, staff requested the Free Clinic submit a narrative update on the expenditure of the grant award as well as an overall status of its Multi Services Center (MSC) and its financial progress toward project completion.
AGENDA ITEM NO.
Consent (2)
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As detailed in Exhibit 1, the Free Clinic has indicated that the cash on hand as of March 31, 2022, for the MSC project is $84,078, which does not include the remaining $10,000 yet to be received from the City in FY 2021-22. As previously documented, the Free Clinic received a construction loan from Montecito Bank and Trust for $300,000. The Free Clinic paid off the remaining third-party construction loan balance with the FY 2021-22 award of $140,000 disbursed by the City during the first quarter of FY 2021-22. However, in order to retire the full balance of the loan and avoid additional interest expense, the Free Clinic borrowed $10,000 from its operating account creating an internal loan with the capital account. The Free Clinic requests the release of contingency funds to repay the internal loan to fully retire all construction loan costs.
The Free Clinic’s community fundraising drives, as well as activities with major donors, continue to identify potential donor contributions for ongoing support of the project. The commemorative brick installation program offers donors the opportunity to be recognized in the Donor Recognition P laza located near the entrance of the MSC. As of March 31, 2022, this program surpassed its initial $50,000 goal by reaching $68,293.
The agency side of the MSC i s now approximately 82 percent occupied. Soaring Spirits International, Big Brothers Big Sisters, Sarah’s House, Coalition for Family Harmony, GiGi’s Playhouse, For the Need, and Community Action of Ventura County are currently operating from the MSC. The remaining non-profit partner space is allocated based on need and the ability of organizations to contribute to overhead costs including utilities, insurance, and common area maintenance based on the square footage being utilized.
To minimize electrical costs for lessees of the MSC and to provide power supply reliability in the event of an outage and/or emergency , the Free Clinic signed a Memorandum of Understanding, funded by Direct Relief International, for the installation of a battery storage system. The project was approved by Southern California Edison and awaits installation. The possibility of adding the installation of sol ar panels to the scope of work is under review. It is anticipated that the project will begin the installation phase sometime in July 2022.
Staff has reviewed the report covering activities completed from January 2022 to March 2022 and has found it to be responsive in detailing the progress of the Free Clinic’s scope of work. The Free Clinic will provide an informational presentation to the City Council at the conclusion of the expenditure period with a comprehensive overview of programs and services that have been supported by the Community Projects Grant.
The following alternatives are available to the City Council:
1. Receive and file the Community Projects Grant performance report;
2. Authorize the release of the contingency funds in the amount of $10,000;
3. Request additional information associated with the Community Projects Grant performance report for the activities during the third quarter of FY 2021-22; 3 CPG3rdQtrCCmtg5-16-22(klk)
4. Provide staff with alternate direction.
Staff recommends Alternative Nos. 1 and 2.
SUGGESTED CITY COUNCIL MOTION
I move to receive and file the Community Projects Grant performance report for the third quarter of FY 2021-22 and authorize the release of contingency funds.
SUMMARY
On March 11, 2019, the City Council awarded all available program funding for FY 2019- 20, FY 2020-21, and FY 2021-22, a combined total of $461,102, which includes $11,102 from unexpended prior awards, to the Free Clinic of Simi Valley. The annual award amount of $150,000 is subject to a contingency of $10,000 in FY 2021-22. The Free Clinic is required to submit quarterly performance reports identifying progress on the approved scope of work. The report for the period of January 2022 to March 2022 has been reviewed by staff and found to be responsive in detailing the accomplishments of the scope of work. It is recommended that the City Council receive and file the Community Projects Grant performance report for the activities during the third quarter of FY 2021- 22 and release the available contingency funds in the amount of $10,000 for FY 2021-22.
____________________________________
Stratis Perros
Environmental Services Director
Prepared by: Jennifer Del Toro, Management Analyst
INDEX Page
Exhibit 1 – Correspondence from the Free Clinic ............................. 4 EXHIBIT 1
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