Agenda - 02-05-2002 - 9b - Laserfiche WebLink

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Staff estimates that the majority of residents in the mmmunRy, (about eighty percent) will meet the eligibility requirements for grant funding (outlined in the proposed Assistance Policy). In other words, estimates are that about 76 residents would be eligible for ground. Staff recommends that the Board approve funding for the project in two phases: • Phase l would bethe implementation of the grant program. An appromimon of the Countys fund balance (in the curtentfscal year) would finance this initial phase. Phase ll would provide for the loan program and would be Incorporated In the County's 2002 -03 fiscal year budget. Phase I — Grant common Based on the revised cost projection of $195.000 and the assumption that eighty - percent of the residents will meat eligibility requirements, staff estimates the cast of Phase I to be approximately $155 000. Since the installation cost of the la teral lines is based on individual property characteristics, this cost projection may fluctuate slightly over the course of the project. Should that be the case, and should it result In a higher cost, staff will report to the Boat and request additional funds to complete Phase 1. The County's Housingand Community Development Once would administer the grant program. Phase II — Loan Pronoun The potential up -fmnt water service cost of the loan program would be approximately $39,000. The water service wet calculation is mused on the assumption that twenty percent of the residents (16 residents) will meet eligibility requirements for fine loan pogrom and that all eligible participants apply for loans at the same time The County's EC»nomio Development Department would administer the loan program. Staff has prepared an estimate of the one -time and ongoing annual costs they belleve might be associated on a per loan basis that relates directly to the staff time needed to administer any loan program. The total loan program administrative costs are not now known. They will Include the cost to incorporate the loan program into the Orange County Small Business Loan Program Company or tc establish or identify another entity to make the loans. It is likely that some qualifying Indivitluals will apply for loans if funding for Phase II is available. Over the net few months, staff will gather information and provide the BOCC with a funding plan for Phase II be be included in the 2002 -03 fiscal year budget, if the Boat indicates a desire to do so. RECOMMENDATION(3): The Manager recommends that the Boar: 1) review, discuss, and modify as necessary the proposed Assistance Policy; 2) approve for immediate implementation by staff the policy as it pertains to grants, 3) and suspend formal approval and staff implementation of the portions of the policy insofar as they pertain to the proposed loan program, pending further staff assessment and report to the Board in May 2002 regarding the need for County backed low interest loans and the practicality and cost of implementing a loan program.