CC 2020-12-08_09a Preliminary Approval CDBG Projects 2021_PPCONSIDERATION OF PRELIMINARY APPROVAL OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECTS FOR YEAR 2021
12/15/2020
Good evening Mayor Ray-Russom and Members of the Council. I’m Whitney McDonald and I am your City Manager. I am happy to be here this evening to discuss the preliminary allocations of
CDBG funding for Year 2021. CDBG is a federal program administered by the Department of Housing and Urban Development that provides local governments with financial resources to address
a wide range of community development needs, such as affordable housing, social services, job creation, and public facility improvements. The County of San Luis Obispo administers the
program for our area, and allocations are made on a formula basis. All of the cities in the County, with the exception of Grover Beach, participate in the CDBG Entitlement Program and
receive funds annually. Grover Beach competes for funds separately through the State CDBG Program, which is highly competitive and has strict eligibility requirements.
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Background
CDBG is a federal program that distributes funds to participating cities and counties
Allocation of CDBG funds can be made for a variety of projects as long as one (1) of the following National Objectives are met:
Benefit low- and moderate-income persons;
Aid in the prevention or elimination of slums or blight; or
Address urgent community development needs that pose a serious or immediate threat to public health or welfare
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The main objective of the CDBG program is to develop viable urban communities by providing decent housing, a suitable living environment, and economic opportunity. CDBG Funds must be
used for activities that meet one of the National Objectives listed here.
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CDBG Requirements
No less than 70% of each year’s allotment be used for projects or programs that benefit low income persons
30% cap for projects that “eliminate blight”
Limits on types of projects or programs that may be undertaken
15% cap for “public services” projects
Restrictions against funds paying for projects/programs already initiated
CDBG-funded projects must be completed in a timely manner
Comply with federal environmental laws (NEPA), labor laws (prevailing wages), and procurement regulations
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2021 Grant
The County has estimated that $89,976 in CDBG funds will be available to the City in the fall of 2021 (little more than 3% increase from 2020)
County will help City administer the program
Funds divided into 6 categories
Public Services
Public Facilities
Economic Development
Area Benefit
Housing Rehabilitation; and
Administration
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This next program year, it is estimated that $89,976 will be available to the City starting in the fall of 2021, which reflects roughly a 3% increase from last year. However, recent
funding remains considerably less that what the City received between Years 2001 and 2011, which averaged to $112,000. Similar to last year, the County will help the City administer
the program. CDBG funds are divided into 6 categories, which include:
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Public Services Category
Capped at 15%, or $13,496 for Year 2021
City created the Community Service Grant Program in 2014 due to cumbersome CDBG process for small social service non-profit agencies
The City received two (2) CDBG public service applications; the Court Appointed Special Advocates (CASA) and 5Cities Homeless Coalition (5CHC).
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The allocation of funds for Public Services is caped at 15%, or $13,496 for Year 2021. In previous years, the request for public service funds greatly exceeded what was available. However,
due to stricter CDBG regulations and the unique funding opportunity offered through the Community Service Grant Program, the City has not received many applications in recent years
for CDBG funds under this category.
This year, the City received two (2) CDBG public service applications from CASA and 5CHC.
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Public Services Category
Court Appointed Special Advocates (CASA) application - $2,500 for a program that fosters child intervention to avert homelessness. The requested funds would be used to recruit, train,
and supervise lay people from the community who volunteer to advocate for an abused child, one on one, until the child is reunified with parents or otherwise finds a permanent placement.
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CASA requested $2,500 for a program that fosters child intervention to avert homelessness. The requested funds would be used to recruit, train, and supervise lay people from the community
who volunteer to advocate for an abused child, one on one, until the child is reunified with parents or otherwise finds a permanent placement..
CASA also requested $2,500 in funds from the City of Atascadero, the City of Paso Robles, and the City of San Luis Obispo, as well as $5,000 from the County. Staff ensured that CASA
was also made aware of the Community Service Grant application opportunity, and received an application for $3,500 from CASA for the 2021 Grant Year.
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Public Services Category
5Cities Homeless Coalition (5CHC) application - $13,455 for a program that provides emergency subsistence and deposit payments with case management services for people who are homeless
or at risk of becoming homeless.
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5CHC requested $2,000 for a program that provides emergency subsistence and deposit payments with case management services for people who are homeless or at risk of becoming homeless.
5CHC also requested $2,200 in funds from the City of Atascadero, $900 from the City of Morro Bay, $3,500 from the City of Paso Robles, $5,445 from the City of Pismo Beach, $3,500 from
the City of San Luis Obispo, and $60,000 from the County. Staff ensured that 5CHC was also made aware of the Community Service Grant application opportunity, and received an application
for $20,000 from 5CHC for the 2021 Grant Year.
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Public Services Category
Based on prior direction from Council that funding for public services should come from the Arroyo Grande CSGP and that CDBG funds should be dedicated to ADA projects, it is not recommended
to fund Public Service requests through CDBG for 2021.
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Public Facilities Category
No funding cap for Public Facilities
City priority has been to address ADA accessibility deficiencies
Recommendation:
$31,981 towards finishing the barrier removal project at Ikeda Field, and
$40,000 for barrier removal at the front entrance of City Hall.
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In 2014, when the City created the Community Service Grant Program, it was decided that CDBG funds would be allocated specifically to City projects that remove architectural barriers
to improve disabled accessibility. Previously approved projects include curb ramp installations at mid-block crosswalks, Woman’s Club ADA improvements, and improving Accessibility at
the Soto Sports Complex.
Last year, the City Council approved $69,634 to be used for barrier removal projects under the Public Facilities category, and $6,093 for Administration, for a total of $75,727. Both
2019 and 2020 funds were allocated to Phase IV of the Soto Sports Complex Barrier Removal Project at Ikeda Field.
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Public Facilities Category
Phase IV Soto Sports Complex Barrier Removal Project – Ikeda Field
On track for construction in Spring 2021 (though COVID-19 may cause some delays)
Funds so far have been used for design and survey
Working to bring final plans to Council for approval and authorization to solicit construction bids early 2021.
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Public Facilities Category
City Hall Front Entrance Barrier Removal Project
Staff is proposing $40,000 of the 2021 CDBG funds be allocated to a barrier removal project at City Hall.
The proposed project would install an accessible entrance to the Arroyo Grande City Hall building, including installing exterior doors with automatic door openers that can be easily
operated by citizens with mobility limitations.
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Planning & Capacity Building
Like Administration, Planning and Capacity Building is capped at 20%, or $17,995 for Year 2021
County Administrative costs = $11,697 (per City/County Cooperation Agreement)
City Planning and Capacity Building = $6,298
Preparation of an ADA Transition Plan
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Staff recommends allocating $11,697 to the County for its administrative costs per the City and County Cooperation Agreement. The City is allowed to use up to $6,298 from 2021 CDBG funds
for its administrative and/or planning and capacity building costs. This year staff recommends using available funds towards preparation of an ADA Transition Plan.
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Planning & Capacity Building
Under Title II of the ADA, the City is required to have a current Self-Evaluation and Transition Plan.
Need a comprehensive inspection, evaluation, of all City owned property to complete a final plan
Total estimated cost to the City is $88,225. The funds from CDBG would decrease that total cost to $81,927.
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In order to complete this plan, the City will need a comprehensive inspection and evaluation identifying potential barriers in all City owned facilities (including buildings, parks,
parking lots, public rights-of-way, and bike paths). Once the inspections and evaluation are completed, a final report will be prepared identifying priority projects.
Staff has coordinated with CJPIA and their sub-consultants, Disability Access Consultants (DAC), to obtain a project proposal, scope of work, and estimated budget. Staff has also identified
a financing program for ADA projects through CJPIA that may be of assistance in this project
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12/15/2020
Here we have the proposed recommended allocations for Year 2021. The total proposed allocation for 2021 reflects only estimated funds.
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Recommendation
It is recommended the City Council provide preliminary approval of proposed projects to be funded with the City’s allocation of Community Development Block Grant (CDBG) funds for the
Year 2021. Final City approval of the CDBG allocation will tentatively occur in March 2021.
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Other Funding Categories
Housing
The Salvation Army applied for $300,000 from the County’s CDBG funds for permanent supportive housing.
Subject properties have not been identified for this project, and the City did not receive a formal application for CDBG funds.
If interested in allocating funding to the Salvation Army, they would like to find a unit in Arroyo Grande.
Funding recommendations for this project, if any, are at Council’s discretion and are not currently included in staff’s recommended projects.
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The Salvation Army applied for $300,000 from the County’s CDBG funds for permanent supportive housing. Though the City did not receive a formal application from the Salvation Army, staff
was informed by the County that if the City is interested in allocating funding to the Salvation Army, they would like to find a unit in the City’s jurisdiction. Funding recommendations
for this project, if any, are at Council’s discretion and are not currently included in staff’s recommended projects.
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Other Funding Categories
Economic Development – No Cap – No applications
Area Benefit – 30% Cap ($26,993) – No applications
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The final two categories of funding, Economic Development and Area Benefit, did not receive funding applications so not allocations are recommended.
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