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CC 2013-08-27_09.a. Reallocation of CDBG Funds 2008-2012MEMORANDUM TO: CITY COUNCIL ~ FROM: TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR BY: ~At. KELLY HEFFERNON, ASSOCIATE PLANNER SUBJECT: CONSIDERATION OF REALLOCATION OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FROM CERTAIN PROJECTS APPROVED IN YEARS 2008 THROUGH 2012 TO FUND REMOVAL OF ARCHITECTURAL BARRIERS AT THE SOTO SPORTS COMPLEX (1275 ASH STREET) DATE: AUGUST 13, 2013 RECOMMENDATION: It is recommended the City Council hold a public hearing and adopt a Resolution approving the reallocation of CDBG funds for Program Years 2008 through 2012 for the purpose of funding the removal of architectural barriers at the Soto Sports Complex. FINANCIAL IMPACT: The preliminary cost estimate to· design and construct the Soto Sports Complex Accessibility Project at Volunteer Field (the "Project") is $131,442. There is currently $92,793 available in funds allocated for removal of architectural barriers. Staff recommends the remainder of funding for the Project come from the reallocation of previous unspent CDBG funds. This will bring the total to $145,504. A better estimate of the construction costs will be available once the design work is complete. It is expected that the Project will ultimately need the full amount of the reallocation. BACKGROUND: Every three (3) years, the City considers participation in the Housing and Urban Development (HUD) designated Urban County CDBG Program. The City has been participating in this program since the early 1990's. On May 24, 2011, the City Council approved a Cooperative Agreement with the County of San Luis Obispo for the joint participation in the CDBG Program for the years 2012 through 2014. The City, as a participant in this program, receives an annual formula-based allocation of CDBG funds, which are available for a variety of Community Development activities as long as the activities meet at least one of three national objectives. The objectives are: 1. Benefit low-and moderate-income persons; 2. Aid in the prevention or elimination of slums or blight; or 3. Address urgent community development needs that pose a serious or immediate threat to public health or welfare. Item 9.a. - Page 1 CITY COUNCIL CDBG REALLOCATION AUGUST 13, 2013 PAGE2 Currently, San Luis Obispo County and the participating cities (the "Urban County") are not in compliance with the regulatory expenditure rate (timeliness) requirement of the CDBG regulations. The U.S. Department of Housing and Urban Development (HUD) has placed the Urban County on a one-year probationary period. While on probation, the cities and the County must develop a workout_plan that could include reallocation of funds and submittal of quarterly progress reports to HUD. ANALYSIS OF ISSUES: The City's approved CDBG Action Plans for years 2008 through 2012 include funding for projects that have unspent balances and/or expired contracts. These funds must be reallocated as part of the workout plan to avoid potential loss of this funding. These projects are listed in the following table, divided between administrative and City Council reallocations. The administrative reallocations are considered minor amendments according to HUD and require City Manager approval. A letter from the City Manager was sent to San Luis Obispo County on July 10, 2013 listing these reallocations. The City Council reallocations are considered major amendments per HUD and therefore require Council approval by Resolution. Both the minor and major reallocations are included in the attached Resolution for consistency and clarity. The CDBG allocations that Council approved for Program Year 2013 on February 26, 2013 remain unchanged (see Attachment 1 for approved list of 2013 CDBG projects). P d CDBG R II f ropose ea oca ions . - PROJECT NAME PROGRAM YEAR CDBG FUNDING AMOUNT Existina Funds Allocated: Arch. Barrier Removal -Short 2010 $38,642.42 Street Public Restroom Arch. Barrier Removal 2011 $29,348.00 Arch. Barrier Removal 2012 $24,803.00 Subtotal: $92,793.42 Administrative Reallocations: RDA-Bloom 2008 $1,910.30 New Elevator at New City Hall 2009 $2,597.46 New Elevator at New City Hall 2010 $564.00 . Administration 2011 $9,051.47 Administration 2012 $4,365.91 Subtotal: $18,489.14 Item 9.a. - Page 2 CITY COUNCIL CDBG REALLOCATION AUGUST 13, 2013 PAGE3 PROJECT NAME PROGRAM YEAR CDBG FUNDING AMOUNT _Recommended Citv Council Reallocations: Code Enforcement 2010 $2,506.00 Technical Business Assistance -2010 $5,413.00 UC Merced Code Enforcement 2011 $8,340.00 Facade Improvements 2011 $8,882.27 Code Enforcement 2012 $9,081:00 Subtotal: $34,222.27 TOTAL: $145,504.83 Because the CDBG funds for the projects listed above have not been spent, staff proposes that they be reallocated to fund the removal of architectural barriers for low and moderate income people with severe disabilities by constructing ADA improvements within the Soto Sports Complex. The primary improvements will include disabled accessible routes from the parking lot on Ash Street to Volunteer Field. Specifically, the project will include three elements: 1. Disabled access from the Porter Field dugout to the existing concrete surface at Volunteer Field; 2. Disabled access path improvements adjacent to the existing concessions and restroom structure; and 3. Parking area modifications for disabled parking compliance. The City received 3 bids for the Project design on August 1, 2013, which staff is currently reviewing. Construction is expected to be complete in April 2014. The reallocation of CDBG funds for this Project provides access for people with disabilities to a heavily used facility within the community and meets the following CDBG criteria: 1. Consistency with federal regulations and laws; 2. Co-mmunity support (for example, approval of project by a City Council); 3. Seriousness of community development need proposed to be addressed by project; 4. Degree to which project benefits low-income and very low-income families or persons; 5. Feasibility of the project to be completed as budgeted and by June 30, 2014; 6. Cost effectiveness of funds requested and leveraging of other funds; and 7. Organization's experience or knowledge regarding CDBG or HOME requirements. Item 9.a. - Page 3 CITY COUNCIL CDBG REALLOCATION AUGUST 13, 2013 PAGE4 The cooperative agreement between the County and the City gives discretion regarding allocation of funds. Unless the City's recommendation to the County for funding is clearly in conflict with CDBG regulations, the County will approve the recommendation. Funds for the Project would be immediately available after the Board of Supervisors takes action to amend the 2008-2012 CDBG Action Plans. The majority of funds are remaining moneys from projects that have been completed or ADA funds that have been accumulated to fund a full project. Since code enforcement and administrative budgeted funds are not being fully spent on an ongoing basis, it is recommended they be reduced in the future. However, it should be noted that administrative costs increase proportionately with the number of public service grants approved and administered in a given year. Fac;ade grant funding has not been fully spent, but staff is in discussion with a number of businesses regarding replacement of non-conforming signs. ADVANTAGES: Reallocation of unspent CDBG funds closes out these previous program years, which aids in CDBG administration for both the City and County, and aides the Urban County in meeting its CDBG timeliness and probationary requirements. These funds would be utilized for a project that is consistent with CDBG program goals, and would be spent soon after the funds are made available. DISADVANTAGES: No disadvantages have been identified. ALTERNATIVES: The following alternatives are provided for the Council's consideration: -Accept staffs recommendation and adopt the resolution; Modify staffs recommendation and adopt the resolution; Provide direction to staff ENVIRONMENTAL REVIEW: The reallocation of CDBG funds is not considered a project under the California Environmental Quality Act (CEQA). The National Environmental Policy Act (NEPA) environmental analysis for the Project is complete. PUBLIC NOTIFICATION AND COMMENTS: A public hearing notice was published in the Tribune on Saturday, August 3, 2013 and posted at City Hall. The Agenda was posted in front of City Hall on Thursday, August 8, 2013 and posted on the City's website on Friday, August 9, 2013. No public comments were received. Attachment: 1. Approved list of 2013 CDBG projects Item 9.a. - Page 4 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING REALLOCATION OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FROM CERTAIN PROJECTS APPROVED IN YEARS 2008 THROUGH 2012 TO FUND THE REMOVAL OF ARCHITECTURAL BARRIERS AT ·THE SOTO SPORTS COMPLEX (1275 ASH STREET) WHEREAS, via a Cooperation Agreement with the County of San Luis Obispo (hereafter referred to as "County") executed on May 24, 2011, the City agreed to become a participant for a period of three years with the County and other cities therein as an "Urban County" under the Federal Department of Housing and Urban Development (hereafter referred to as "HUD") CDBG program; and WHEREAS, per the Cooperation Agreement, the City retains the authority to determine which projects are to be funded with its allotment of CDBG funds; and WHEREAS, the City allocated funds during the CDBG program years 2008 through 2012 to various projects; and WHEREAS, the City desires to reallocate unspent funds from aforementioned CDBG program years to fund the removal of architectural barriers at the Soto Sports Complex; and · WHEREAS, on August 13, 2013, the City Council held a duly noticed public hearing to consider reallocation of CDBG funds from certain projects approved in Program Years 2008 through 2012 as follows: PROJECT NAME PROGRAM YEAR CDBG FUNDING AMOUNT Existina Funds Allocated: Arch. Barrier Removal -Short 2010 $38,642.42 Street Public Restroom Arch. Barrier Removal 2011 $29,348.00 Arch. Barrier Removal 2012 $24,803.00 Subtotal: $92,793.42 Administrative Reallocations: RDA-Bloom 2008 $1,910.30 New Elevator at New City Hall 2009 $2,597.46 Item 9.a. - Page 5 RESOLUTION NO. PAGE2 PROJECT NAME New Elevator at New City Hall Administration Administration Subtotal: PROGRAM YEAR CDBG FUNDING AMOUNT 2010 $564.00 2011 $9,051.47 2012 $4,365.91 $18,489.14 Recommended Citv Council Reallocations: Code Enforcement 2010 $2,506.00 Technical Business Assistance -2010 $5,413.00 UC Merced Code Enforcement 2011 $8,340.00 Facade Improvements 2011 $8,882.27 Code Enforcement 2012 $9,081.00 Subtotal: $34,222.27 I TOT~L: II $145,504.83' I NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande, California, to recommend that the Board of Supervisors for the County of San Luis Obispo adopt the reallocation of the City's CDBG funds from the 2008 through 2012 Action Plans as listed above for the purpose of funding the removal of architectural barriers at the Soto Sports Complex. On motion of Council Member the following roll call vote, to wit: AYES: NOES: ABSENT: , seconded by Council Member the foregoing Resolution was passed and adopted this 13th day of August, 2013. , and on Item 9.a. - Page 6 RESOLUTION NO. PAGE3 TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: DAVID HIRSCH, ASSISTANT CITY ATTORNEY Item 9.a. - Page 7 ATTACHMENT 1 ALLOCATION OF PROGRAM YEAR 2013 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS 2012 2013 Proposed Project and Category Allocation Requested 2013- Allocation -$8,777 $5,000 $8,600 $8,600 $2,200 $8,100 $0 $1,340 $5,000 $0 Transitional Food and Shelter $0 $3,000 $0 $0 $5,000 $0 $0 $10,000 $0 Alliance for Pharmaceutical Access, Inc. $1,000 $0 $0 Subtotal $39,700 $8,600 Item 9.a. - Page 8