CC 2017-03-14_10a CDBG and CSGP for Year 2017
CITY COUNCIL
CONSIDERATION OF: 1) COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROJECTS FOR YEAR 2017; AND 2) ARROYO GRANDE COMMUNITY SERVICE
GRANT PROGRAM ALLOCATIONS
MARCH 14, 2017
PAGE 2
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The County has estimated that $73,446 in CDBG funds will be available to the City in
the fall of 2017. This estimate is equal to the final adjusted figure for the 2016 fiscal
year minus a 2.8% decrease. Overall, the amount the City has received over the last
fifteen (15) years has consistently decreased due to Federal budget cutbacks to the
CDBG program. Similar to last year, the County will help administer the CDBG program
for the City which will reduce City staff time involved. County staff will be paid through
the CDBG program funds allocated to the City. Per the Cooperation Agreement
between the County and the City entered into on July 15, 2014, 65% of the total
administration funds, or $9,548 of the City’s allocation for CDBG funds will be deducted
by the County to meet its obligations under the terms of the agreement for
administrative costs. The City will receive $5,141 for its administrative costs.
BACKGROUND:
As mentioned above, the City Council approved a Cooperation Agreement with the
County in July 2014 for the joint participation in the CDBG Program for fiscal years 2015
through 2017. 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 21,
2016. In addition, County staff held a “Needs Assessment Workshop” on September 7,
2016 to gather input from the public regarding the allocation of CDBG funds.
On November 22, 2016, the City Council considered preliminary recommendations and
received public input. Council approved staff’s preliminary recommendation of
proposed projects to be funded with the City’s allocation of CDBG funds for the year
2017.
ANALYSIS OF ISSUES:
The following criteria set forth by the County in the RFP is used to make funding
recommendations:
1. Consistency with Federal regulations and laws;
Item 10.a. - Page 2
CITY COUNCIL
CONSIDERATION OF: 1) COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROJECTS FOR YEAR 2017; AND 2) ARROYO GRANDE COMMUNITY SERVICE
GRANT PROGRAM ALLOCATIONS
MARCH 14, 2017
PAGE 3
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,
2017;
6. Cost effectiveness of funds requested and leveraging of other funds; and
7. Organization's experience or knowledge regarding CDBG requirements.
The Cooperation 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. The County Board of Supervisors will make its final decision for
funding priority in the spring of 2017.
Public Services
The competitiveness for public service funds, which is capped at 15 percent, has
historically been strong with requests far exceeding available funds. As discussed in
recent years regarding CDBG allocations, HUD has significantly increased its
monitoring efforts of jurisdictions participating in the CDBG program, which means that
local jurisdictions must increase their monitoring efforts of recipients as well. According
to County staff, the cost to properly monitor a given CDBG activity is approximately
$8,000. Therefore, only activities that can either individually or cumulatively receive
more than $10,000 in CDBG funding will be considered. Because public service
organizations are more aware of the stricter CDBG regulations, as well as funding
opportunities through a separate City program (the City’s Community Service Grant
Program), the City did not receive any CDBG applications for public services.
Public Facilities
Staff recommends allocating $58,757 to assist with Americans with Disabilities Act
(ADA) improvements by removing architectural barriers at the Soto Sports Complex.
The “Soto Sports Complex Barrier Removal Project – Phase III” will improve
accessibility at Santos Field, which currently does not comply with ADA standards. The
project will include, at a minimum, a ramp from the Soto Sports Complex parking lot to
the Santos Field bleachers and dugout. This project was identified as a priority given the
large number of people that use the Sports Complex each year.
There are hundreds of locations throughout the City in need of ADA compliant curb
ramps. Given the City’s annual allocation of CDBG funds and local sales tax funds
appropriated to ADA improvements, and not adjusting for inflation, it will take several
decades for the City to complete all of these improvements. There are also other ADA
Item 10.a. - Page 3
CITY COUNCIL
CONSIDERATION OF: 1) COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROJECTS FOR YEAR 2017; AND 2) ARROYO GRANDE COMMUNITY SERVICE
GRANT PROGRAM ALLOCATIONS
MARCH 14, 2017
PAGE 4
improvements needed at various City-owned facilities and parks. Hence, allocating
available CDBG funds to the removal of architectural barriers, especially given the City’s
new Community Service Grant Program to help meet public service funding needs, is
appropriate.
Economic Development
The City did not receive any requests for economic development projects.
Area Benefit
Projects qualifying as meeting the Area Benefit national objective are limited to a 30
percent cap ($22,034). Area Benefit refers to activities that are available to benefit all
residents of an area that is primarily residential where at least 51 percent of the
residents are low or moderate income persons. In the past, the City considered efforts
to eliminate slums and blight, such as code enforcement activities to remove illegal
signs and providing funds for façade improvements, as valid activities. HUD determined
in 2013 that the City’s code enforcement and Façade Improvement programs are invalid
based on the lack of blight, and therefore these programs have been discontinued. The
City did not receive any funding requests for this category.
Administration and Planning
Funds requested for the administration of the CDBG program have decreased over the
last several years in direct proportion to the overall decrease in the City’s CDBG
funding, even though HUD administrative requirements are increasing. Staff
recommends allocating $14,689 for program administration, which is 20% of total funds.
As stated above, $9,548 of the City’s allocation for CDBG funds will be deducted by the
County for its administrative costs as per the Cooperation Agreement, and the City will
receive $5,141 for administration.
Arroyo Grande Community Service Grant Program
In response to CDBG funding limitations and restrictions, the City established the
Arroyo Grande Community Service Grant Program in 2014 separate and apart from the
CDBG program. This program provides $20,000 to eligible non-profit organizations that
provide specialized social service, educational, cultural, beautification and recreational
programs and projects benefitting Arroyo Grande citizens. This is not a CDBG program;
however, the rating system is similar to that established for reviewing CDBG
applications in prior years. Last year, the City received a total of eleven (11) applications
totaling $53,000.
This year, the City received a total of thirteen (13) applications totaling $36,100 (see
Attachment 1 for applications). A Community Service Grant Review Panel was
established consisting of one member from each of the City’s boards, commissions and
Item 10.a. - Page 4
CITY COUNCIL
CONSIDERATION OF: 1) COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROJECTS FOR YEAR 2017; AND 2) ARROYO GRANDE COMMUNITY SERVICE
GRANT PROGRAM ALLOCATIONS
MARCH 14, 2017
PAGE 7
1. Approve funding for CDBG programs for the year 2017 as proposed;
2. Modify funding for CDBG programs to eliminate the Soto Sports Complex Barrier
Removal Project – Phase III and instead include the installation of ADA compliant
curb ramps up to a cost of $58,757; or
3. Provide other 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.
PUBLIC NOTIFICATION AND COMMENTS:
A public hearing notice was published in The Tribune on Friday, March 3, 2017. The
Agenda was posted in front of City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Attachments:
1. Community Service Grant Applications (13), less financial statements
Item 10.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 2017
WHEREAS, via a Cooperative Agreement with the County of San Luis Obispo
(hereafter referred to as “County”) executed by the City of Arroyo Grande (“City”) on
July 15, 2014, 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”) Community
Development Block Grant (CDBG) program; and
WHEREAS, under the Cooperative 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 $73,446 in CDBG funds in 2017; and
WHEREAS, in 2016, the County published a “Request for Proposals” for projects to be
funded under the 2017 CDBG Programs, which provided that proposals were to be
submitted by October 21, 2016; and
WHEREAS, on September 7, 2016, the County conducted a public workshop to
ascertain the housing and community development needs to be addressed in the
document entitled the “One-Year Action Plan” for Program Year 2017; and
WHEREAS, at its meeting of November 22, 2016, the City Council gave preliminary
approval to a proposed listing of 2017 CDBG projects; and
WHEREAS, on March 14, 2017 the City Council held a duly noticed public hearing to
further consider the City’s Program Year 2017 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 2017 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.
On motion of Council Member , seconded by Council Member , and on the
following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 14th day of March, 2017.
Item 10.a. - Page 8
RESOLUTION NO.
PAGE 2
JIM HILL, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
_____________________________________
ROBERT McFALL, INTERIM CITY MANAGER
APPROVED AS TO FORM:
HEATHER WHITHAM, CITY ATTORNEY
Item 10.a. - Page 9
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE APPROVING COMMUNITY
SERVICE GRANT PROGRAM PROJECTS FOR YEAR
2017
WHEREAS, on September 23, 2014 the City Council approved the Community Service
Grant Program process and has allocated $20,000 annually for the program; and
WHEREAS, the City received a total of thirteen (13) applications for the Community
Service Grant Program; and
WHEREAS, the City Council established a Community Service Grant Review Panel
consisting of one member from each of the City’s boards, commissions and committees;
and
WHEREAS, this panel convened on February 23, 2017 to review the applications and
recommended funding allocations, as indicated in Exhibit “A”; and
WHEREAS, on March 14, 2017 the City Council held a duly noticed public hearing to
consider the City’s Community Service Grant Program projects.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo
Grande, California, hereby approves the 2017 Community Service Grant Program
projects as set forth in Exhibit “A” attached hereto and incorporated herein by this
reference.
On motion of Council Member , seconded by Council Member , and on the
following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 14th day of March, 2017.
Item 10.a. - Page 11
RESOLUTION NO.
PAGE 2
JIM HILL, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
_____________________________________
ROBERT McFALL, INTERIM CITY MANAGER
APPROVED AS TO FORM:
HEATHER WHITHAM, CITY ATTORNEY
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