CC 2014-02-11_09.a. CDBG Projects for 2014MEMORANDUM
TO: CITY COUNCIL
FROM: TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR-
BY: ~.t KELLY HEFFERNON, ASSOCIATE PLANNER
SUBJECT: CONSIDERATION OF COMMUNITY DEVELOPMENT BLOCK GRANT
(CDBG) PROJECTS FOR YEAR 2014
DATE: FEBRUARY 11, 2014
RECOMMENDATION:
It is recommended the City Council: 1) adopt a Resolution approving projects to be
funded with the City's allocation of CDBG funds for Year 2014 as shown in the table
below; and 2) approve recommendations to change the funding and process for public
service grants in 2015.
Recommended 2014 CDBG Allocation
Project and Category .
Public Services 15% Ca -$8, 657
CAPSLO -Maxine Lewis Memorial Shelter
CAPSLO -Adult Wellness and Prevention
Screenin Pro ram
Senior Nutrition Program of San Luis Obispo
Count
Subtotal
Public Facilities
City of Arroyo Grande -Removal of Architectural
Barriers
Lucia Mar Unified School District -Removal of
Architectural Barriers
Subtotal
2013 2014 Proposed
Allocation Requested 2014
Allocation ·
$8,600 $0 $0
$0 $10,000 $8,657
$27,702 $35,401 $35,401
$205,000 $0
$240,401 $35,401
-I
Item 9.a. - Page 1
CITY COUNCIL
CONSIDERATION OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROJECTS FOR YEAR 2014 -
FEBRUARY 11, 2014
PAGE2
Project and Category
Administration and Plannin
2013 2014 Proposed
Allocation Requested 2014
Allocation
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The County has estimated that $57,715 in CDBG funds will be available to the City in
the fall of 2014. This estimate is equal to the final adjusted figure for the 2013 fiscal
year ($64, 128) minus a 10% reduction due to anticipated Federal budget cutbacks to
the CDBG program. Similar to last year, the County will help administer the public
service grants for the City which will reduce City staff time involved. County staff will be
paid through the CDBG program funds allocated to the City.
BACKGROUND:
On Mai24, 2011, the City Council approved a Cooperative Agreement with the County
of San Luis Obispo for the joint participation in the CDBG Program for fiscal years 2012
through 2014. The City, as a participant in the Housing and Urban Development (HUD)
designated Urban County program, receives an annual formula-based allocation of
CDBG funds. These funds 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.
The County distributed a Request for Proposals (RFP) and notified the public that the
County and participating cities would accept applications for funding until October 15,
2013. In addition, City and County staff held two "Needs Assessment Workshops" on
October 2, 2013 and January 15, 5014 to gather input from the public regarding the
allocation of CDBG funds.
On December 10, 2013, the City Council considered preliminary recommendations and
received public input. Staff recommended placing a top priority on funding for removal
of architectural barriers in order to address Americans with Disabilities Act (ADA)
requirements, which the City Council concurred with. After discussing various funding
alternatives, Council directed staff to transfer $10,000 from the fac;ade grant allocation
to removal of architectural barriers. Mayor Pro Tern Guthrie also recommended Council
Item 9.a. - Page 2
CITY COUNCIL
CONSIDERATION OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROJECTS FOR YEAR 2014
FEBRUARY 11, 2014
PAGE3
consider using local sales tax funds to fund public service requests, in lieu of CDBG
funds, which staff has evaluated.
ANALYSIS OF ISSUES:
Staff has prepared its recommendations using the following criteria set forth by the
County in the RFP:
1. Consistency with Federal regulations and laws;
2. Community 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 December 31,
2014;
6. Cost effectiveness of funds requested and leveraging of other funds; and
7. Organization's experience or knowledge regarding CDBG or HOME
requirements.
The Cooperative Agreement between the County and the City gives the City 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. The final decision by the County for funding priority will occur later
this month.
Public Services
The competitiveness for public services funds, which is capped at 15 percent, has
historically been strong with requests far exceeding available funds. Council has
expressed frustration in recent years regarding the inability to award smaller public
service grants to multiple applicants. However, applications dropped off significantly this
year so this may no longer be an issue. Although there is a maximum amount of
funding that can be expended on public services, there is no requirement to expend any
of the funding in this category.
The City received a total of two (2) applications: one (1) from Community Action
Partnership of San Luis Obispo County, Inc. (CAPSLO) for their Adult Wellness and
Prevention Screening Program, and one (1) from the Senior Nutrition Program of San
Luis Obispo County.
Recommended funding $0 ($10,000 requested); Adult Wellness and Prevention
Screening (Community Action Partnership of San Luis Obispo County, Inc.)-This
program provides a mobile health clinic for low-income, uninsured, and underinsured
adults with free preventive and maintenance health screening, education, advocacy and
referral for adults within the County. 96% of the clients are seniors.
Item 9.a. - Page 3
CITY COUNCIL
CONSIDERATION OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROJECTS FOR YEAR 2014
FEBRUARY 11, 2014
PAGE4
Recommended funding $0 ($15,000 requested); Senior Nutrition Program of San
Luis Obispo County -This program provides hot nutritionally balanced meals for
seniors.
Due to the decrease in CDBG funding this year and the necessary increase in
monitoring efforts, staff is recommending that the Adult Wellness and Prevention
Screening Program through CAPSLO be partially funded and that no funding be
allocated to the Senior Nutrition Program of SLO County. Of the two public service
applications, staff believes the Adult Wellness and Prevention Screening Program best
satisfies the screening criteria. This health-related program has a widespread impact to
the community by keeping low-income and seniors healthy, and the requested amount
($10,000) is close to the estimated funds available ($8,657).
Below is information about the two public service applications received:
Public Facilities
One of the City's highest priorities is addressing Americans with Disabilities Act (ADA)
accessibility deficiencies. Despite dedicating a combination of Local Sales Tax and
CDBG funds to this need each year, a substantial number of improvements are still
necessary in order to ensure an adequate level of accessibility throughout the City's
streets, sidewalks and facilities. Staff is currently updating the City's ADA compliance
plan and prioritizing future projects. Staff recommends allocating $44,058 to assist with
ADA improvements by removing architectural barriers within the public right-of-way and
in City-owned public facilities. This may include ADA ramps, sidewalk improvements or
other ADA related improvements to public facilities. This would result in overall funding
of approximately $64,000 annually when combined with Local Sales Tax funds, which
could have a significant impact on this program. This combined funding strategy is
important to assist the City in achieving compliance with ADA requirements. Final
determination of ADA improvements will be coordinated with the City's Sidewalk
Improvement Plan and other Capital Improvement Programs.
The Lucia Mar Unified School District submitted an application for $205,000 to make
various ADA accessibility repairs to Arroyo Grande High School and Ocean View
Elementary School as follows:
Arroyo Grande High School:
• Repair and re-finish the asphalt surface which is the accessibility path of travel to
the sports field stadium and complex ($181,000).
• Sidewalk replacement at various locations ($10,000).
Ocean View Elementary School:
• Replacement of main entrance sidewalk ($6,000).
• Replace asphalt to the main playfield ($8,000).
Item 9.a. - Page 4
CITY COUNCIL
CONSIDERATION OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROJECTS FOR YEAR 2014
FEBRUARY 11, 2014
PAGES
This is the first CDBG application that the City has received from the School District.
Given the numerous ADA projects that the City is responsible for implementing, the
limited CDBG funds available for ADA improvements, and the large request from the
School District, staff does not recommend allocating funds to the School District.
Economic Development
The City did not receive any requests for economic development projects.
Elimination of Slums and Blight
Efforts related to the elimination of slums and blight is limited to a 30 percent area
benefit cap ($17,314). Because of the ongoing demand for participation in the fac;ade
grant program, staff recommends funding of $5,000.
Administration and Planning
Funds requested for the administration of the CDBG program have decreased in direct
proportion to the overall decrease in the City's CDBG funding, even though HUD
administrative requirements are increasing. Staff recommends allocating $8,657 for
program administration, which is 15% of total funds (the cap is 20% or $11,543).
Recommendations for 2015
The purpose of Mayor Pro Tern Guthrie's suggestion to utilize local sales tax revenues
to fund public service requests in lieu of CDBG funds was to eliminate restrictions on
the size of grants and to reduce the substantial HUD monitoring and administrative
costs. The intent was to use CDBG funds for ADA improvements that are currently
allocated for public service requests and then utilize local sales tax funds for public
service requests that are currently allocated for ADA improvements. The City Council
supported the concept of increasing flexibility of awarding public service grants, but
expressed concern over using local sales tax funds for any purposes other than the
original intent of the local sales tax ballot measure.
Staff determined no change would be possible this year because there is not time
available to solicit new public service funding requests. Instead, staff developed
recommendations for 2015 designed to address City Council's objectives. Therefore, it
is recommended the City Council direct staff to implement the following changes in next
year's CDBG process:
• Eliminate all CDBG funding for public services;
• Increase $10,000 in Local Sales Tax funding for the Five Cities Fire Authority;
• Reduce General Fund funding for the Five Cities Fire Authority by $10,000;
• Reduce Local Sales Tax funding for ADA ramps by $10,000;
• Increase CDBG funding for removal of architectural barriers by $10,000;
• Appropriate $10,000 in the General Fund for public services grants; and
• Establish a program for accepting applications for public services grants.
Item 9.a. - Page 5
CITY COUNCIL
CONSIDERATION OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROJECTS FOR YEAR 2014
FEBRUARY 11, 2014
PAGES
The recommended Community Service Grant Program for awarding public service
grants includes the following criteria and measures:
• Grants awarded will be in minimum amounts of not less than $250.
• To be eligible to apply for grant monies, an organization must satisfy the following
~standards:
1. Serve the greater Arroyo Grande community;
2. Operate as a not-for-profit organization; and
3. Directly provide a social service, educational or cultural program.
• Funds cannot be used for religious activities.
• Following the deadline for submittal of applications, a Community Service Grant
Committee will make recommendations to the City Council. The Committee is
recommended to consist of one appointee recommended by each City Council
Member.
ADVANTAGES:
The recommended allocations fund important City priorities, such as accessibility for the
disabled, which is a high priority and serious need. The advantage of the
recommended future changes is that it will provide more flexibility for award of public
service grants while maintaining funding for other objectives, and utilize appropriate
funding sources for each purpose.
DISADVANTAGES:
The recommendations result in unfunded and underfunded requests from two public
service organizations and the Lucia Mar Unified School District for ADA improvements.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
-Approve staffs recommended preliminary funding for CDBG programs for the
year 2014;
Modify staffs recommended funding for CDBG public service programs to
include other public service requests;
Eliminate funding for public service requests to increase funding for City ADA
projects.
Increase funding for fac;ade improvements and proportionately reduce funding for
ADA improvements; or
Provide direction to staff.
ENVIRONMENTAL REVIEW:
The allocation of CDBG funds is not considered a project under the California
Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA).
Specific projects that may have environmental impacts will be reviewed under CEQA
and NEPA prior to implementation.
Item 9.a. - Page 6
CITY COUNCIL .
CONSIDERATION OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROJECTS FOR YEAR 2014
FEBRUARY 11, 2014
PAGE7
PUBLIC NOTIFICATION AND COMMENTS:
A public hearing notice was published in The Tribune on Friday, January 31, 2014 and
mailed to all CDBG project applicants. The Agenda was posted in front of City Hall on
Thursday, February 6, 2014 and on the City's website on Friday, February 7, 2014. No
public comments have been received.
Item 9.a. - Page 7
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE APPROVING COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) PROJECTS
FOR YEAR 2014
WHEREAS, via a Cooperation Agreement with the County of San Luis Obispo
(hereafter referred to as "County") executed by the City of Arroyo Grande ("City") 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, under 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 expects to receive $57,715 in CDBG funds in 2014; and
WHEREAS, in 2013, the County published a "Request for Proposals" for projects to be
funded under the 2013 CDBG Programs, which provided that proposals were to be
submitted by October 15, 2013; and
WHEREAS, on October 2, 2013, the County conducted a public workshop with the City
of Arroyo Grande to ascertain the housing and community development needs to be
addressed in the document entitled the "One-Year Action Plan" for Program Year 2014;
and
WHEREAS, at its meeting of December 10, 2013 the City Council gave preliminary
approval to a proposed listing of 2014 CDBG projects; and
WHEREAS, on January 15, 2014, the County conducted a second public workshop for
the City of Arroyo Grande to receive comments on the proposed 2014 CDBG projects;
and
WHEREAS, on February 11, 2014 the City Council held a duly noticed public hearing to
further consider the City's Program Year 2014 CDBG projects.
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 2014 One-Year Action Plan, which shall include the programs
listed in Exhibit "A" attached hereto and incorporated herein by this reference, to be
funded with the City's allocation of CDBG funds.
Item 9.a. - Page 8
RESOLUTION NO.
PAGE2
On motion of Council Member
following roll call vote, to wit:
AYES:
NOES:
ABSENT:
, seconded by Council Member , and on the
the foregoing Resolution was passed and adopted this 11th day of February, 2014.
Item 9.a. - Page 9
RESOLUTION NO.
PAGE3
TONY FERRARA, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, CITY ATTORNEY
Item 9.a. - Page 10
RESOLUTION NO.
PAGE4
EXHIBIT "A"
2014 ONE YEAR ACTION PLAN
ALLOCATION OF PROGRAM YEAR 2014 COMMUNITY DEVELOPMENT BLOCK
GRANT CDBG FUNDS
Project and Category
Public Services 15% Ca -$8, 657
CAPSLO -Maxine Lewis Memorial Shelter
CAPSLO -Adult Wellness and Prevention Screening
Pro ram
City of Arroyo Grande -Removal of Architectural
Barriers
Lucia Mar Unified School District-Removal of
Architectural Barriers
2013 2014 Proposed
Allocation Requested 2014
Allocation
$27,702 $35,401 $35,401
Item 9.a. - Page 11
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