Loading...
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 Item 10.a. - Page 12 Item 10.a. - Page 15 Item 10.a. - Page 16 Item 10.a. - Page 17 Item 10.a. - Page 18 Item 10.a. - Page 20 Item 10.a. - Page 21 Item 10.a. - Page 23 Item 10.a. - Page 24 Item 10.a. - Page 25 Item 10.a. - Page 27 Item 10.a. - Page 28 Item 10.a. - Page 29 Item 10.a. - Page 30 Item 10.a. - Page 31 Item 10.a. - Page 32 Item 10.a. - Page 33 Item 10.a. - Page 34 Item 10.a. - Page 35 Item 10.a. - Page 37 Item 10.a. - Page 38 Item 10.a. - Page 40 Item 10.a. - Page 41 Item 10.a. - Page 42 Item 10.a. - Page 43 Item 10.a. - Page 45 Item 10.a. - Page 46 Item 10.a. - Page 48 Item 10.a. - Page 49 Item 10.a. - Page 50 Item 10.a. - Page 52 Item 10.a. - Page 53 Item 10.a. - Page 54 Item 10.a. - Page 56 Item 10.a. - Page 57 Item 10.a. - Page 58 Item 10.a. - Page 59 Item 10.a. - Page 62 Item 10.a. - Page 63 Item 10.a. - Page 65 Item 10.a. - Page 66