CC 2016-03-08_10a Final CDBG_Community Service Grant Projects
MEMORANDUM
TO: CITY COUNCIL
FROM: TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR
BY: KELLY HEFFERNON, ASSOCIATE PLANNER
SUBJECT: CONSIDERATION OF COMMUNITY DEVELOPMENT BLOCK GRANT
(CDBG) PROJECTS FOR YEAR 2016 AND ARROYO GRANDE
COMMUNITY SERVICE GRANT PROGRAM ALLOCATIONS
DATE: MARCH 8, 2016
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 the Year 2016 as shown in the table
below; and 2) adopt a Resolution approving projects to be funded with the City's
Community Service Grant Program funds.
Recommended 2016 CDBG Allocation
Project and Category
2015
Allocation
2016
Requested
Proposed
2016
Allocation
Public Services 15% Cap - $11,484
Subtotal $0 $0 $0
Public Facilities
City of Arroyo Grande - Removal of
Architectural Barriers $51,116 $61,251 $61,251
Subtotal $51,116 $61,251 $61,251
Economic Development
Subtotal $0 $0
Area Benefit 30% Cap - $22,969
Subtotal $0 $0 $0
Administration and Planning 20% Cap -
$15,312
City Administration $4,473 $5,359 $5,359
County Administration $8,306 $9,953 $9,953
Subtotal $12,779 $15,312 $15,312
Total $76,563
Item 10.a. - Page 1
CITY COUNCIL
CONSIDERATION OF: 1) COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROJECTS FOR YEAR 2016; AND 2) ARROYO GRANDE COMMUNITY SERVICE
GRANT PROGRAM ALLOCATIONS
MARCH 8, 2016
PAGE 2
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The Federal Department of Housing and Urban Development (HUD) has estimated that
$76,563 in CDBG funds will be available to the City in the fall of 2016. This estimate is
slightly more than what was anticipated last December during Council’s preliminary
review of these funds ($1,051 difference). 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 $9,953 of the City’s allocation for CDBG funds will be deducted by the County
to meet its obligations under the terms of the Cooperation Agreement for administrative
costs. The City will receive $5,359 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 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 “Needs Assessment Workshops” on September 15,
2015 and February 10, 2016 to gather input from the public in South County regarding
the allocation of CDBG funds.
On December 8, 2015, 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
2016.
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);
Item 10.a. - Page 2
CITY COUNCIL
CONSIDERATION OF: 1) COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROJECTS FOR YEAR 2016; AND 2) ARROYO GRANDE COMMUNITY SERVICE
GRANT PROGRAM ALLOCATIONS
MARCH 8, 2016
PAGE 3
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 by April 30, 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 on April 12, 2016.
Public Services
The competitiveness for public service grants, which is capped at 15 percent of total
CDBG funding, 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 the City’s Community Service Grant Program, the City did
not receive any CDBG applications for public services.
Public Facilities
Staff recommends allocating $61,251 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.
Item 10.a. - Page 3
CITY COUNCIL
CONSIDERATION OF: 1) COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROJECTS FOR YEAR 2016; AND 2) ARROYO GRANDE COMMUNITY SERVICE
GRANT PROGRAM ALLOCATIONS
MARCH 8, 2016
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 ($22,969). 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 $15,312 for program administration, which is 20% of total funds.
As stated above, $9,953 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 $5,359 for administration.
Arroyo Grande Community Service Grant Program
In response to CDBG funding limitations and restrictions, in 2014 the City established
the Arroyo Grande Community Service Grant Program 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;
Item 10.a. - Page 4
CITY COUNCIL
CONSIDERATION OF: 1) COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROJECTS FOR YEAR 2016; AND 2) ARROYO GRANDE COMMUNITY SERVICE
GRANT PROGRAM ALLOCATIONS
MARCH 8, 2016
PAGE 5
however, the rating system is similar to that established per the purposes of reviewing
CDBG applications in prior years. Last year, the City received a total of twelve (12)
applications totaling $60,948.48.
This year, the City received a total of eleven (11) applications totaling $53,000 (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
committees. This panel convened on February 11, 2016 to review the applications and
recommended the funding allocations listed below.
NAME OF
NON-
PROFIT
PROJECT
SUMMARY
AREA
SERVED
GRANT
AMOUNT
RECEIVED
IN 2015
GRANT
AMOUNT
REQUESTED
2016
AMOUNT
RECOMMENDED
BY THE
COMMITTEE
Big
Brothers
Big Sisters
of SLO
County
Staff time for
training,
screening,
enrolling and
matching families
and volunteers
within the City of
AG.
SLO
County
(emphasis
on City of
AG)
$1,700 $5,000 $2,000
Camp Fire
Central
Coast of
California
Camp Fire Out-
of-School-Time
program.
Five
Cities
$1,500 $2,500 $1,500
CASA
(Court
Appointed
Special
Advocates
for
Children)
Recruitment,
screening,
training and
supervising
community
volunteers to
advocate for
abused and
neglected
children who are
under the
jurisdiction of the
Juvenile
Dependency
Court.
City of AG n/a $2,500 $1,500
Family
Care
Network,
Inc.
Landscaping at
their Elm Street
property.
City of AG $1,350 $20,000 $500
Item 10.a. - Page 5
CITY COUNCIL
CONSIDERATION OF: 1) COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROJECTS FOR YEAR 2016; AND 2) ARROYO GRANDE COMMUNITY SERVICE
GRANT PROGRAM ALLOCATIONS
MARCH 8, 2016
PAGE 6
NAME OF
NON-
PROFIT
PROJECT
SUMMARY
AREA
SERVED
GRANT
AMOUNT
RECEIVED
IN 2015
GRANT
AMOUNT
REQUESTED
2016
AMOUNT
RECOMMENDED
BY THE
COMMITTEE
5CHC
(Five Cities
Homeless
Coalition)
Housing and
other transitional
assistance for the
homeless.
Five
Cities
Area
$1,500 $1,500 $2,000
Meals on
Wheels
Meals delivered
to homebound
clients.
City of AG n/a $6,000 $4,000
Peoples’
Self Help
Housing
(PSHH)
Educator’s salary
at Courtland
Street
Apartments -
after school
education
program.
City of AG $4,000 $5,000 $2,500
SCORE San
Luis
Obispo
Entrepreneur
education.
SLO
County
$450 $500 $500
Senior
Nutrition
Program of
SLO
County
Meals for 5
seniors in AG.
City of AG $3,000 $5,000 $4,000
SLO Noor
Foundation
Healthcare for
uninsured
individuals.
City of AG n/a $3,500 $1,000
Transitions
– Mental
Health
Association
Funding for a
new Computer
Skills Workshop
in the Safe
Haven Wellness
Center.
City of AG
and SLO
County
n/a $1,500 $500
TOTAL: $13,500
(of the
$20,000
total)
$53,000 $20,000
TOTAL BUDGET: $20,000
Non-profits that did not apply again this year include South County Historical Society,
Arroyo Grande in Bloom, CAPSLO, Central Coast Salmon Enhancement, and
Transitional Food and Shelter.
Item 10.a. - Page 6
CITY COUNCIL
CONSIDERATION OF: 1) COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROJECTS FOR YEAR 2016; AND 2) ARROYO GRANDE COMMUNITY SERVICE
GRANT PROGRAM ALLOCATIONS
MARCH 8, 2016
PAGE 7
The amounts recommended above were based on multi-faceted criteria, which is
included as Attachment 2.
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 projects identified eliminates the use of these funds for
other projects.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
- Approve staff’s recommended funding for CDBG programs and for the City’s
Community Services Program for the year 2016;
- Modify staff’s recommended funding for both programs; or
- Provide direction to staff.
ENVIRONMENTAL REVIEW:
The allocation of CDBG funds and the City’s Community Services Program 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, February 26, 2016 and
emailed to all Community Service Grant applicants. The Agenda was posted in front of
City Hall on Thursday, March 3rd and the agenda and staff report were posted on the
City’s website on Friday, March 4th. No public comments have been received.
Attachments:
1. Community Service Grant Applications (11), less financial statements
2. Review Criteria for Community Service Grant Applications
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 2016
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 $76,563 in CDBG funds in 2016; and
WHEREAS, in 2015, the County published a “Request for Proposals” for projects to be
funded under the 2016 CDBG Programs, which provided that proposals were to be
submitted by October 23, 2015; and
WHEREAS, on September 15, 2015, 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
2016; and
WHEREAS, at its meeting of December 8, 2015 the City Council gave preliminary
approval to a proposed listing of 2016 CDBG projects; and
WHEREAS, on February 10, 2016, the County conducted a second public workshop for
the City of Arroyo Grande to receive comments on the proposed 2016 CDBG projects;
and
WHEREAS, on March 8, 2016 the City Council held a duly noticed public hearing to
further consider the City’s Program Year 2016 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 2016 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 10.a. - Page 8
RESOLUTION NO.
PAGE 2
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 8th day of March, 2016.
Item 10.a. - Page 9
RESOLUTION NO.
PAGE 3
JIM HILL, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
_____________________________________
DIANNE THOMPSON, CITY MANAGER
APPROVED AS TO FORM:
HEATHER WHITHAM, CITY ATTORNEY
Item 10.a. - Page 10
RESOLUTION NO.
PAGE 4
EXHIBIT “A”
2016 ONE YEAR ACTION PLAN
ALLOCATION OF PROGRAM YEAR 2016 COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) FUNDS
Project and Category
2015
Allocation
2016
Requested
Proposed
2016
Allocation
Public Services 15% Cap - $11,484
Subtotal $0 $0 $0
Public Facilities
City of Arroyo Grande - Removal of
Architectural Barriers $51,116 $61,251 $61,251
Subtotal $51,116 $61,251 $61,251
Economic Development
Subtotal $0 $0
Area Benefit 30% Cap - $22,969
Subtotal $0 $0 $0
Administration and Planning 20% Cap -
$15,312
City Administration $4,473 $5,359 $5,359
County Administration $8,306 $9,953 $9,953
Subtotal $12,779 $15,312 $15,312
Total $76,563
Item 10.a. - Page 11
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE APPROVING COMMUNITY
SERVICE GRANT PROGRAM PROJECTS FOR FISCAL
YEAR 2015-16
WHEREAS, on September 23, 2014 the City Council approved the Community Service
Grant Program process; and
WHEREAS the City Council allocated $20,000 in the FY 2015-16 Annual Budget to
implement the program; and
WHEREAS, the City received a total of eleven (11) 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 11, 2016 to review the applications and
recommended funding allocations, as indicated in Exhibit A; and
WHEREAS, on March 8, 2016 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 2016 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 8th day of March, 2016.
Item 10.a. - Page 12
RESOLUTION NO.
PAGE 2
JIM HILL, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
_____________________________________
DIANNE THOMPSON, CITY MANAGER
APPROVED AS TO FORM:
HEATHER WHITHAM, CITY ATTORNEY
Item 10.a. - Page 13
RESOLUTION NO.
PAGE 3
EXHIBIT “A”
Arroyo Grande 2016 Community Service Grant Program
Summary of Applications (11 Total)
NAME OF
NON-
PROFIT
PROJECT
SUMMARY
AREA
SERVED
GRANT
AMOUNT
RECEIVED
IN 2015
GRANT
AMOUNT
REQUESTED
2016
AMOUNT
RECOMMENDED
BY THE
COMMITTEE
Big
Brothers
Big Sisters
of SLO
County
Staff time for
training,
screening,
enrolling and
matching families
and volunteers
within the City of
AG.
SLO
County
(emphasis
on City of
AG)
$1,700 $5,000 $2,000
Camp Fire
Central
Coast of
California
Camp Fire Out-
of-School-Time
program.
Five
Cities
$1,500 $2,500 $1,500
CASA
(Court
Appointed
Special
Advocates
for
Children)
Recruitment,
screening,
training and
supervising
community
volunteers to
advocate for
abused and
neglected
children who are
under the
jurisdiction of the
Juvenile
Dependency
Court.
City of AG n/a $2,500 $1,500
Family
Care
Network,
Inc.
Landscaping at
their Elm Street
property.
City of AG $1,350 $20,000 $500
5CHC
(Five Cities
Homeless
Coalition)
Housing and
other transitional
assistance for the
homeless.
Five
Cities
Area
$1,500 $1,500 $2,000
Meals on
Wheels
Meals delivered
to homebound
clients.
City of AG n/a $6,000 $4,000
Item 10.a. - Page 14
RESOLUTION NO.
PAGE 4
NAME OF
NON-
PROFIT
PROJECT
SUMMARY
AREA
SERVED
GRANT
AMOUNT
RECEIVED
IN 2015
GRANT
AMOUNT
REQUESTED
2016
AMOUNT
RECOMMENDED
BY THE
COMMITTEE
Peoples’
Self Help
Housing
(PSHH)
Educator’s salary
at Courtland
Street
Apartments -
after school
education
program.
City of AG $4,000 $5,000 $2,500
SCORE San
Luis
Obispo
Entrepreneur
education.
SLO
County
$450 $500 $500
Senior
Nutrition
Program of
SLO
County
Meals for 5
seniors in AG.
City of AG $3,000 $5,000 $4,000
SLO Noor
Foundation
Healthcare for
uninsured
individuals.
City of AG n/a $3,500 $1,000
Transitions
– Mental
Health
Association
Funding for a
new Computer
Skills Workshop
in the Safe
Haven Wellness
Center.
City of AG
and SLO
County
n/a $1,500 $500
TOTAL: *$13,500
(of the
$20,000
total)
$53,000 $20,000
TOTAL BUDGET: $20,000
*Applicants that did not re-apply this grant year are not listed and therefore the amount
indicated is less than $20,000.
Item 10.a. - Page 15
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