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Sidewalk Installation Financial Assist Funding (2) ~ D~~~ ~ck~ MEMORANDUM July 26, 2005 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: New Sidewalk Installation: Financial Assistance Funding Opportunity City Engineer Gus Psihoyos is recommending City Council approval of a revision to the sidewalk program to provide financial assistance for new sidewalk installation costs for eligible low- and moderate-income, owner-occupied residential properties. The program would be similar to other City financial assistance programs offering financial assistance on a sliding scale based on income. The funding for this year would come from the balance in the line item for the City to install sidewalks abutting City-owned properties. It is recommended the program be retroactive to April 1, 2005. I concur with the recommendation and respectfully request Mayor and City Council approval. MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Gus Psi hoyos, City Engineer DU~~E ~ck~ MEMORANDUM July 27, 2005 TO: Michael C. Van Milligen, City Manager Gus Psihoyos, City Engineer ~O New Sidewalk Installation: Financial Assistance Funding Opportunity FROM: SUBJECT: INTRODUCTION The purpose of this memo is to recommend a program to provide financial assistance to fund new sidewalk installation costs for eligible low-and-moderate income, owner- occupied properties. The program would be implemented as part of the City Council's direction that City staff provide a mechanism to reduce special assessments or costs for abutting property owners for new sidewalk installation for projects such as the Pennsylvania-Radford Road and Asbury Road Sidewalk Installation Projects. The program would also include any new sidewalks that the City requires or approves. BACKGROUND Under the current City policy, a property owner who is required to replace an existinq sidewalk may be eligible for assistance through CDBG funding if program guidelines are met. Also, it should be mentioned that the Housing & Community Development Department has a rehabilitation loan program for qualified homeowners and rental property owners for new sidewalks if it is part of an overall rehabilitation program for their property. During Fiscal Year 2005 - 2006, concrete costs have risen approximately 12 percent. Based on the prevailing rate of $20 to $25 per lineal foot, property owners may face costs ranging from $1,000 to $4,000 for new sidewalk installations. DISCUSSION The sidewalk inspection program could be expanded to include financial assistance to eligible property owners for new sidewalk installations. The program would continue assistance on replacement of defective walks. The expanded program would be developed similar to existing assistance programs used for street and sewer assessments for owner-occupied residential properties. The program now in effect uses a formula based on a graduated income scale. (See attached summary of recommended income levels). Assistance would be available for 20 percent to 100 percent of the sidewalk installation costs, based upon the number of persons in the household and income level as verified by required documentation. It is recommended that the funding for this new extended assistance program come from the CIP 3501425 for City-Owned Sidewalk, with a balance of approximately $40,000. The funding source would be evaluated and reviewed at budget time for other available funding options. The effective date of the pFOgram could be the date of City Council approval of the recommended financial assistance program or April 1, 2005, the beginning of the 2005 construction season. ACTION TO BE TAKEN I recommend that the sidewalk program be revised to provide financial assistance for new sidewalk installation costs for eligible low-and-moderate income, owner-occupied residential properties. cc: Dawn Lang, Budget Director Jane Smith, Engineering Kelly Ambrosy, Engineering