The city council last week voted to approve a resolution to allow the city to hire a contract grant administrator to comply with state rules on a Community Development Block Grant the city recently received.
Most of the nearly $2 million grant would go toward building a new Community Food Bank facility as well as funding for new equipment at that facility. It also includes money for Meals on Wheels and the Youth Empowerment program. The city was informed in September it had been awarded the grant and received the contract from the state for the grant in January.
“We are so grateful at the food bank for the CDBG grant,” said Mary Ann Hughes, the executive director of the bank.
Nearly $1.5 million of the grant would go towards the bank. At issue, however, was the fee for hiring an outside contractor to administer the grant – almost 20 percent withheld from the total amount the food bank would receive, or $250,000.
“What gets spent on oversight comes out of our construction project,” said Susan Thompson, a member of the board of directors of the food bank. She added that the figure “seems like a lot.”
Mayor Ignacio Velazquez agreed, calling the amount for compliance “insane.”
“This is going to come down to working together,” he said.
Members of the council were concerned that the process of compliance with state rules could eventually come back and eat into the city’s general fund, if the food bank was unable to raise more funds for the construction.
“I do have a problem though that if the food bank is unable to secure the necessary funding, they’re going to come back to the community,” said Councilman Victor Gomez. “I’m always tired of dipping back into the community for funds.”
Thompson said she does not foresee that because the food bank is actively raising money for the venture, including $650,000 received from other grants and private funders.
The city has not actually received the grant money yet, which means the city is on the hook for compliance for the time being, said interim City Manager Bill Avera.
“This is really just general fund money,” he said.
Mary Paxton, the agency program manager for the city’s development services agency, said the city would pay first and then bill the state.
Unlike previous years, the city had applied for the grant instead of applying through the county.
“The way the project was applied for, the county didn’t commit any funds to it,” she said.
But she said there is nothing in the law that precludes the city from requesting funds from the county, if the money fell through or the project has a cost more than the food bank thought it would.
“Seeing a huge cost overrun – I don’t see that happening,” said Avera.
The mayor agreed.
“I think the end result will be lower, but I do think we need to go through the process,” he said.
Thompson said she understands the city has to comply with state rules in order to receive the grant but voiced frustration for the delay in construction because of the compliance issues.
“We’re not blaming (city) staff,” she said. “I, for one, understand government nonsense.”
Paxton said the city should receive the grant money by the first part of March.
“We just want to make sure we’re getting it right,” she said.
