Loading...
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 THIS PAGE INTENTIONALLY LEFT BLANK Item 9.a. - Page 12