CC 2016-06-14_10a Reallocation of CDBG Funds
MEMORANDUM
TO: CITY COUNCIL
FROM: TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR
BY: KELLY HEFFERNON, ASSOCIATE PLANNER
SUBJECT: CONSIDERATION OF REALLOCATION OF COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FROM THE GRID
ALTERNATIVES SOLAR AFFORDABLE HOUSING PROJECT
APPROVED IN YEAR 2011 TO FUND THE CITY'S MID-BLOCK
CROSSWALK ARCHITECTURAL BARRIER REMOVAL PROJECT
DATE: JUNE 14, 2016
RECOMMENDATION:
It is recommended the City Council adopt a resolution approving the reallocation of
$4,169 in Program Year 2011 CDBG funds from the GRID Alternatives Solar Affordable
Housing Project to the City’s Mid-Block Crosswalk Architectural Barrier Removal
Project.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The proposed $4,169 reallocation from 2011 CDBG funds to the City’s CDBG Mid-Block
Crosswalk Architectural Barrier Removal Project will further the City’s goal of providing
safe paths of travel within the public right of way, and will have a minimal impact on staff
time. The City retains $5,180 for Year 2015 CDBG funds for Administration.
BACKGROUND:
Every three (3) years, the City considers participation in the Housing and Urban
Development (HUD) designated Urban County CDBG Program. The City has been
participating in this program since the early 1990’s. 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 this
program, receives an annual formula-based allocation of CDBG funds, which 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.
In 2011, the City approved an allocation of $4,169 from CDBG funds for GRID
Alternatives to install solar panels on affordable single family housing units within the
Item 10.a. - Page 1
CITY COUNCIL
CONSIDERATION OF REALLOCATION OF CDBG FUNDS FROM THE GRID
ALTERNATIVES SOLAR AFFORDABLE HOUSING PROJECT APPROVED IN YEAR
2011 TO FUND THE CITY'S MID-BLOCK CROSSWALK ARCHITECTURAL BARRIER
REMOVAL PROJECT
JUNE 14, 2016
PAGE 2
City. GRID Alternatives has had difficulty finding deed restricted affordable housing
units within the City that qualify for this program since no new deed restricted units have
been approved in recent years. The City is in jeopardy of losing the $4,169 if this
funding is not spent or reallocated by the end of 2016. GRID Alternatives is in support
of the proposed reallocation.
In 2015, the City awarded $59,194 of CDBG funds to the Mid-Block Crosswalk
Architectural Barrier Removal Project to improve American with Disabilities Act (ADA)
accessibility at key locations in the City. If the City Council approves the proposed
reallocation, the total funding for this Project will be $63,363.
ANALYSIS OF ISSUES:
The City’s Mid-Block Crosswalk Architectural Barrier Removal Project will involve the
installation of accessible curb ramps in compliance with the ADA. The new curb ramps
will be located at various locations in the commercial and residentially zoned areas as
well as areas around schools, parks, and public facilities. Specific locations include:
East Grand Avenue at Alder Street
Ash Street at Spruce Street
Huasna Road at Rosewood Lane (Strother Park)
Valley Road at Tiger Tail Drive
The reallocation of CDBG funds for this Project meets the following CDBG criteria:
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. Cost effectiveness of funds requested and leveraging of other funds; and
6. Organization's experience or knowledge regarding CDBG or HOME requirements.
The City’s approved CDBG Cooperation Agreement for years 2015 through 2019
include funding for projects that have unspent balances. These funds must be
reallocated to avoid a potential loss of this funding. These projects are listed below,
divided between administrative and City Council reallocations.
The administrative reallocations are considered minor amendments according to HUD
and require City Manager approval. A letter from the City Manager was sent to San
Luis Obispo County on March 23, 2016 listing these reallocations to the Soto Field
Phase II Project. City Council reallocations are considered major amendments per
Item 10.a. - Page 2
CITY COUNCIL
CONSIDERATION OF REALLOCATION OF CDBG FUNDS FROM THE GRID
ALTERNATIVES SOLAR AFFORDABLE HOUSING PROJECT APPROVED IN YEAR
2011 TO FUND THE CITY'S MID-BLOCK CROSSWALK ARCHITECTURAL BARRIER
REMOVAL PROJECT
JUNE 14, 2016
PAGE 3
HUD and therefore require Council approval by Resolution. Both the minor and major
reallocations are included in the attached Resolution for consistency and clarity. The
CDBG allocations that Council approved on March 8, 2016 remain unchanged (see
Attachment 1 for approved list of 2016 CDBG projects).
CDBG Administrative Reallocations
Program
Year
Project Name Beginning
Balance
Reallocation Ending
Balance
Comments
2010 Hoosegow ADA 15,55615,556 $0
Eliminate project
and reallocate funds
Subtotal: Soto
Field Phase II
$0 $15,556 $15,556 Reallocate funds to
project
2011 Hoosegow ADA $7,887$7,887 $0
Eliminate project
and reallocate funds
Women’s Business
Ctr.
$1,370$1,370$0 Eliminate project
and reallocate funds
Subtotal: Soto
Field Phase II
$0 $9,257 $9,257 Reallocate funds to
project
2012 Hoosegow ADA $5,000$5,000 $0
Eliminate project
and reallocate funds
Subtotal: Soto
Field, Phase II
$0 $5,000 $5,000 Reallocate funds to
project
2013 Administration $2,318.20$2,318.20 $0 Reallocate funds
Hoosegow ADA $10,000$10,000 $0
Eliminate project
and reallocate funds
Subtotal: Soto
Field Phase II
$0 $12,318.20 $12,318.20 Reallocate funds to
project
2014 Administration $6,392$6,392 $0
Reallocate funds
Hoosegow ADA $5,000$5,000 $0
Eliminate project
and reallocate funds
Subtotal: Soto
Field Phase II
$0 $11,392 $11,392 Reallocate funds to
project
Soto Field Phase II $40,269 $0 $40,269 Project exists - no
change
Total
Reallocation to
Soto Field
Phase II
$53,523.20
Item 10.a. - Page 3
CITY COUNCIL
CONSIDERATION OF REALLOCATION OF CDBG FUNDS FROM THE GRID
ALTERNATIVES SOLAR AFFORDABLE HOUSING PROJECT APPROVED IN YEAR
2011 TO FUND THE CITY'S MID-BLOCK CROSSWALK ARCHITECTURAL BARRIER
REMOVAL PROJECT
JUNE 14, 2016
PAGE 4
Program
Year
Project Name Beginning
Balance
Reallocation Ending
Balance
Comments
Total
Allocation to Soto
Field
Phase II
$93,792.20
Recommended City Council Reallocation
Program
Year
Project Name Beginning
Balance
Reallocation Ending
Balance
Comments
2011 GRID Alternatives
Solar Affordable
Housing Project
$4,169$4,169$0
Eliminate project
and reallocate funds
Subtotal: Mid-
Block Crosswalk
Architectural Barrier
Removal Project
$0 $4,169 $4,169 Reallocate funds to
project
2015 Mid-Block
Crosswalk
Architectural Barrier
Removal Project
$59,194$0 $59,194 Project exists – no
change
Total
Reallocation to
Mid-Block
Crosswalk
Architectural
Barrier Removal
Project
$4,169
Total
Allocation to Mid-
Block Crosswalk
Architectural
Barrier Removal
Project
$63,363
The cooperative 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.
Funds for the Project would be immediately available after the Board of Supervisors
amends the County’s 2015-2019 Consolidated Plan on July 12, 2016.
Item 10.a. - Page 4
CITY COUNCIL
CONSIDERATION OF REALLOCATION OF CDBG FUNDS FROM THE GRID
ALTERNATIVES SOLAR AFFORDABLE HOUSING PROJECT APPROVED IN YEAR
2011 TO FUND THE CITY'S MID-BLOCK CROSSWALK ARCHITECTURAL BARRIER
REMOVAL PROJECT
JUNE 14, 2016
PAGE 5
ADVANTAGES:
Reallocation of unspent CDBG funds closes out previous program years, which aids in
CDBG administration for both the City and County, and aides the Urban County in
meeting its CDBG timeliness requirements. These minor and major funding
reallocations would be utilized for two separate projects that are consistent with CDBG
program goals, and would be spent soon after the funds are made available.
DISADVANTAGES:
No disadvantages have been identified.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
- Accept staff’s recommendation and adopt the resolution;
- Modify staff’s recommendation and adopt the resolution;
- Provide direction to staff
ENVIRONMENTAL REVIEW:
The reallocation of CDBG funds is not considered a project under the California
Environmental Quality Act (CEQA) or the National Environmental Policy Act (NEPA).
PUBLIC NOTIFICATION AND COMMENTS:
A public hearing notice was published in the Tribune on Friday, June 3, 2016 and
posted at City Hall. The Agenda was posted in front of City Hall on Thursday, June 9,
2016 and posted on the City’s website on Friday, June 10, 2016. No public comments
were received.
Attachment:
1. Approved list of 2016 CDBG projects
Item 10.a. - Page 5
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE APPROVING REALLOCATION OF COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FROM THE GRID
ALTERNATIVES SOLAR AFFORDABLE HOUSING PROJECT
APPROVED IN YEAR 2011 TO FUND THE CITY'S MID-BLOCK
CROSSWALK ARCHITECTURAL BARRIER REMOVAL PROJECT
WHEREAS, via a Cooperation Agreement with the County of San Luis Obispo
(hereafter referred to as “County”) executed in July 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”) CDBG program; and
WHEREAS, per 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 allocated funds during the 2010 through 2014 CDBG program
years to various projects; and
WHEREAS, the City desires to reallocate unspent funds from aforementioned CDBG
program years to fund the removal of architectural barriers for two (2) previously
approved projects, including the Soto Field Phase II Project and the Mid-Block
Crosswalk Architectural Barrier Removal Project; and
WHEREAS, on March 23, 2016 the City Manager approved administrative reallocations
to fund the Soto Field Phase II Project as shown in Exhibit A; and
WHEREAS, on June 14, 2016, the City Council held a duly noticed public hearing to
consider reallocation of CDBG funds from the GRID Alternatives Solar Affordable
Housing Project approved in Program Year 2011 to the Mid-Block Crosswalk
Architectural Barrier Removal Project as shown in Exhibit B.
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 reallocation of the City’s CDBG funds from the 2010 through
2014 Action Plans as provided in Exhibits A and B for the purpose of funding the Soto
Field Phase II Project and the Mid-Block Crosswalk Architectural Barrier Removal
Project.
Item 10.a. - Page 6
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 14th day of June, 2016.
Item 10.a. - Page 7
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 8
RESOLUTION NO.
PAGE 4
EXHIBIT A
CDBG Administrative Reallocations
Program
Year
Project Name Beginning
Balance
Reallocation Ending
Balance
Comments
2010 Hoosegow ADA 15,55615,556 $0
Eliminate project
and reallocate funds
Subtotal: Soto
Field Phase II
$0 $15,556 $15,556 Reallocate funds to
project
2011 Hoosegow ADA $7,887$7,887 $0
Eliminate project
and reallocate funds
Women’s Business
Ctr.
$1,370$1,370$0 Eliminate project
and reallocate funds
Subtotal: Soto
Field Phase II
$0 $9,257 $9,257 Reallocate funds to
project
2012 Hoosegow ADA $5,000$5,000 $0
Eliminate project
and reallocate funds
Subtotal: Soto
Field, Phase II
$0 $5,000 $5,000 Reallocate funds to
project
2013 Administration $2,318.20$2,318.20 $0 Reallocate funds
Hoosegow ADA $10,000$10,000 $0
Eliminate project
and reallocate funds
Subtotal: Soto
Field Phase II
$0 $12,318.20 $12,318.20 Reallocate funds to
project
2014 Administration $6,392$6,392 $0
Reallocate funds
Hoosegow ADA $5,000$5,000 $0
Eliminate project
and reallocate funds
Subtotal: Soto
Field Phase II
$0 $11,392 $11,392 Reallocate funds to
project
Soto Field Phase II $40,269 $0 $40,269 Project exists - no
change
Total
Reallocation to
Soto Field
Phase II
$53,523.20
Total
Allocation to Soto
Field
Phase II
$93,792.20
Item 10.a. - Page 9
RESOLUTION NO.
PAGE 5
EXHIBIT B
City Council Reallocation
Program
Year
Project Name Beginning
Balance
Reallocation Ending
Balance
Comments
2011 GRID Alternatives
Solar Affordable
Housing Project
$4,169$4,169$0
Eliminate project
and reallocate funds
Subtotal: Mid-
Block Crosswalk
Architectural Barrier
Removal Project
$0 $4,169 $4,169 Reallocate funds to
project
2015 Mid-Block
Crosswalk
Architectural Barrier
Removal Project
$59,194$0 $59,194 Project exists – no
change
Total
Reallocation to
Mid-Block
Crosswalk
Architectural
Barrier Removal
Project
$4,169
Total
Allocation to Mid-
Block Crosswalk
Architectural
Barrier Removal
Project
$63,363
Item 10.a. - Page 10
RESOLUTION NO. 4712
PAGE 4 .
ATTACHMENT 1
EXHIBIT "A"
2016 ONE YEAR ACTION PLAN
ALLOCATION OF PROGRAM YEAR 2016 COMMUNITY DEVELOPMENT BLOCK
GRANT(CDBG)FUNDS
Administration and Planning 20% Cap -
$15,312
Cit Administration
County Administration
Subtotal
. 2015.: · .~2Q16 ··. :i;>ro,posect
.· . AlloJ;ation Requested.· · 2():16 .; . -« ·
'. · '' :·· ~ t?~iloca.tjorf~·
Item 10.a. - Page 11
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Item 10.a. - Page 12