CC 2015-12-08_10a Preliminary CDBG Projects for Year 2016
MEMORANDUM
TO: CITY COUNCIL
FROM: TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR
BY: KELLY HEFFERNON, ASSOCIATE PLANNER
SUBJECT: CONSIDERATION OF PRELIMINARY APPROVAL OF COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) PROJECTS FOR YEAR 2016
DATE: DECEMBER 8, 2015
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 2016 as shown in the table below. Final City approval of the CDBG
allocation will likely occur in March 2016.
Recommended 2016 CDBG Allocation
Project and Category
2015
Allocation
2016
Requested
Proposed
2016
Allocation
Public Services 15% Cap - $11,327
Subtotal $0 $0 $0
Public Facilities
City of Arroyo Grande - Removal of
Architectural Barriers $51,116 $60,410 $60,410
Subtotal $51,116 $60,410 $60,410
Economic Development
Subtotal $0 $0
Area Benefit 30% Cap - $22,653
Subtotal $0 $0 $0
Administration and Planning 20% Cap -
$15,102
City Administration $4,473 $5,286 $5,286
County Administration $8,306 $9,816 $9,816
Subtotal $12,779 $15,102 $15,102
Total $75,512
Item 10.a. - Page 1
CITY COUNCIL
CONSIDERATION OF PRELIMINARY APPROVAL OF COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG) PROJECTS FOR YEAR 2016
DECEMBER 8, 2015
PAGE 2
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The County has estimated that $75,512 in CDBG funds will be available to the City in
the fall of 2016. This estimate is equal to the final adjusted figure for the 2015 fiscal
year plus a 2% increase. 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, 13%, or $9,816 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 $5,286 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 23,
2015. In addition, County staff held a “Needs Assessment Workshop” on September 15,
2015 to gather input from the public regarding the allocation of CDBG funds. The
second CDBG public workshop will be scheduled sometime within the next two months
in South County.
ANALYSIS OF ISSUES:
Staff uses the following criteria set forth by the County in the RFP to make funding
recommendations:
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;
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CITY COUNCIL
CONSIDERATION OF PRELIMINARY APPROVAL OF COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG) PROJECTS FOR YEAR 2016
DECEMBER 8, 2015
PAGE 3
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,
2016;
6. Cost effectiveness of funds requested and leveraging of other funds; and
7. Organization's experience or knowledge regarding CDBG or HOME
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 2016.
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 $60,410 to assist in Americans with Disabilities Act (ADA)
improvements by removing architectural barriers associated with the Woman’s Club
Center. The “Arroyo Grande Woman’s Club Building Barrier Removal Project” will
remove existing architectural barriers that prevent facility users who use wheelchairs
from accessing the exterior patio area and will provide mandatory secondary
emergency access and exiting for the building. Specifically, the project will include:
Leveling the patio area;
Replacing three (3) doors to allow for wheelchair access;
Constructing ADA compliant van-accessible parking spaces in the facility’s
parking lot; and
Providing ADA compliant pathways, including railing, signs and other necessary
improvements.
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CITY COUNCIL
CONSIDERATION OF PRELIMINARY APPROVAL OF COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG) PROJECTS FOR YEAR 2016
DECEMBER 8, 2015
PAGE 4
This project was identified as a priority given the large number of facility users and the
kitchen remodel effort currently underway. It is anticipated that all improvements will be
done at the same time to limit inconvenience to the public.
Note that there are also 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 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 ($22,653). 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 $15,102 for program administration, which is 20% of total funds.
As stated above, $9,816 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 $5,286 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 per the purposes of reviewing
Item 10.a. - Page 4
CITY COUNCIL
CONSIDERATION OF PRELIMINARY APPROVAL OF COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG) PROJECTS FOR YEAR 2016
DECEMBER 8, 2015
PAGE 5
CDBG applications in prior years. Last year, the City received a total of twelve (12)
applications totaling $60,948.48. The deadline this year to submit a completed
application is Friday, December 11, 2015.
A Community Service Grant Review Panel has been established consisting of one
member from each of the City’s boards, commissions and committees. This panel will
convene early next year to review the applications, and it is expected that a
recommendation for funding will be brought to Council at the same time as the final
CDBG allocation is considered, which will likely be in March 2016.
ADVANTAGES:
The recommended allocations fund important City priorities. The Community Service
Grant Program will assist with funding local public service programs.
DISADVANTAGES:
Providing CDBG funding for the Arroyo Grande Woman’s Club Building Barrier Removal
Project takes CDBG funding away from other architectural barrier removal projects,
such as installing ADA compliant curb ramps.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
- Approve staff’s recommended preliminary funding for CDBG programs for the
year 2016;
- Modify staff’s recommended preliminary funding for CDBG programs to eliminate
the Arroyo Grande Woman’s Club Building Barrier Removal Project and instead
include the installation of ADA compliant curb ramps up to a cost of $60,410; or
- 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, November 27, 2015.
The Agenda was posted in front of City Hall on Thursday, December 3, 2015 and the
Agenda and staff report were posted on the City’s website on Friday, December 4,
2015. No public comments have been received.
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