CITY OF TALLAHASSEE
CITY COMMISSION AGENDA ITEM
ACTION REQUESTED ON: May 27, 2009
SUBJECT/TITLE: Discussion of Returning Unspent Funds to Good News Outreach Ministries from the Maryland Oaks Development
TARGET ISSUE: NA

STATEMENT OF ISSUE

This agenda item is to obtain approval to return unused grant funds to the Good News Outreach Ministries (the Ministries).
In January 2009, the City accepted funds from the Ministries to construct portions of the drainage and roadway system adjacent to the Maryland Oaks affordable housing site. City crews have completed the work, spending a total of $7,146.90 from the original budget of $25,081.10. The remaining funds totaling $17,934.20 are available to return to the Ministries.

RECOMMENDED ACTION

Option 1 - Approve the return of $17,934.20 of unspent grant funds to the Ministries.

FISCAL IMPACT

The Ministries has made a payment of grant funds to the City in the amount of $25,081.10 to fund work in the Maryland Oaks Development and is currently deposited in fund 300 – Capital Improvements Fund. Unspent grant funds specifically allocated for Good News Project No. 0900437, totaling $17,934.20, may be returned with City Commission approval, which will reduce the balance in Fund 300 – Capital Improvements Fund. The Budget Office has reviewed this item and agrees it meets budgetary guidelines.

Gabriel Menendez, Director, Public Works Department

Anita Favors Thompson, City Manager

For information, please contact: John Gonzales, Public Works Department, Streets & Drainage Division, 891-5300.

SUPPLEMENTAL MATERIAL/ISSUE ANALYSIS
HISTORY/FACTS & ISSUES

The Ministries at Maryland Oaks Crossing is a rent-subsidized development with 20 existing manufactured homes located off Bicycle Road in west Tallahassee. The City, through the Public Works Department, partnered with the Ministries to perform project-associated work to meet concurrency requirements. Phase V of the Maryland Oaks development includes the construction of ten manufactured homes and associated drainage and concurrency requirements.

The Ministries received a grant to construct the needed improvements from the State of Florida, Department of Children and Families (DCF). To save funds, the Ministries requested that the City of Tallahassee’s Streets and Drainage Division perform the work along Bicycle Road. The grant funds totaling $25,081.10 were conveyed to the City so work could be performed and all accounting of funds tracked. The drainage and roadway improvements required by this project are all located within the City’s Right of Way.

The City constructed the needed improvements and only spent $7,146.90, which is the total costs including materials labor and overhead charges. The City’s Drainage Maintenance Unit installed a drainage outfall system while Street Operations followed up with a patch and final overlay of the roadway.

The Ministries turned over all the funds from their grant to the City. No construction cost estimate was provided to the Ministries at the time. Therefore, staff is recommending the return of $17,934.20 to the Ministries to continue their work for affordable housing.

CHARITABLE CONTRIBUTIONS

Charitable contributions are not applicable to this item because no evaluation of bids or proposals was part of the construction work.

OPTIONS

1. Approve the return of $17,934.20 of unspent grant funds to the Ministries.

Pros:
Good will is gained by the return of unspent funds.

Funding was the Ministries grant given to the City specifically for the work that was completed.

City Crews performed work under budget, allowing the return of the funds.

Cons:
Funds could be used for other maintenance.

2. Do not approve the return of remaining grant funds to the Ministries.

Pros:
Use funds for other maintenance activities.

Cons:

Good will to the community may be lost.

ATTACHMENTS/REFERENCES

None