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CC 2020-12-08_09a Preliminary Approval CDBG Projects 2021_PPCONSIDERATION OF PRELIMINARY APPROVAL OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECTS FOR YEAR 2021 12/15/2020 Good evening Mayor Ray-Russom and Members of the Council. I’m Whitney McDonald and I am your City Manager. I am happy to be here this evening to discuss the preliminary allocations of CDBG funding for Year 2021. CDBG is a federal program administered by the Department of Housing and Urban Development that provides local governments with financial resources to address a wide range of community development needs, such as affordable housing, social services, job creation, and public facility improvements. The County of San Luis Obispo administers the program for our area, and allocations are made on a formula basis. All of the cities in the County, with the exception of Grover Beach, participate in the CDBG Entitlement Program and receive funds annually. Grover Beach competes for funds separately through the State CDBG Program, which is highly competitive and has strict eligibility requirements. 1 Background CDBG is a federal program that distributes funds to participating cities and counties Allocation of CDBG funds can be made for a variety of projects as long as one (1) of the following National Objectives are met: Benefit low- and moderate-income persons; Aid in the prevention or elimination of slums or blight; or Address urgent community development needs that pose a serious or immediate threat to public health or welfare 12/15/2020 The main objective of the CDBG program is to develop viable urban communities by providing decent housing, a suitable living environment, and economic opportunity. CDBG Funds must be used for activities that meet one of the National Objectives listed here. 2 CDBG Requirements No less than 70% of each year’s allotment be used for projects or programs that benefit low income persons 30% cap for projects that “eliminate blight” Limits on types of projects or programs that may be undertaken 15% cap for “public services” projects Restrictions against funds paying for projects/programs already initiated CDBG-funded projects must be completed in a timely manner Comply with federal environmental laws (NEPA), labor laws (prevailing wages), and procurement regulations 12/15/2020 3 2021 Grant The County has estimated that $89,976 in CDBG funds will be available to the City in the fall of 2021 (little more than 3% increase from 2020) County will help City administer the program Funds divided into 6 categories Public Services Public Facilities Economic Development Area Benefit Housing Rehabilitation; and Administration 12/15/2020 This next program year, it is estimated that $89,976 will be available to the City starting in the fall of 2021, which reflects roughly a 3% increase from last year. However, recent funding remains considerably less that what the City received between Years 2001 and 2011, which averaged to $112,000. Similar to last year, the County will help the City administer the program. CDBG funds are divided into 6 categories, which include: 4 Public Services Category Capped at 15%, or $13,496 for Year 2021 City created the Community Service Grant Program in 2014 due to cumbersome CDBG process for small social service non-profit agencies The City received two (2) CDBG public service applications; the Court Appointed Special Advocates (CASA) and 5Cities Homeless Coalition (5CHC). 12/15/2020 The allocation of funds for Public Services is caped at 15%, or $13,496 for Year 2021. In previous years, the request for public service funds greatly exceeded what was available. However, due to stricter CDBG regulations and the unique funding opportunity offered through the Community Service Grant Program, the City has not received many applications in recent years for CDBG funds under this category. This year, the City received two (2) CDBG public service applications from CASA and 5CHC. 5 Public Services Category Court Appointed Special Advocates (CASA) application - $2,500 for a program that fosters child intervention to avert homelessness. The requested funds would be used to recruit, train, and supervise lay people from the community who volunteer to advocate for an abused child, one on one, until the child is reunified with parents or otherwise finds a permanent placement. 12/15/2020 CASA requested $2,500 for a program that fosters child intervention to avert homelessness. The requested funds would be used to recruit, train, and supervise lay people from the community who volunteer to advocate for an abused child, one on one, until the child is reunified with parents or otherwise finds a permanent placement.. CASA also requested $2,500 in funds from the City of Atascadero, the City of Paso Robles, and the City of San Luis Obispo, as well as $5,000 from the County. Staff ensured that CASA was also made aware of the Community Service Grant application opportunity, and received an application for $3,500 from CASA for the 2021 Grant Year. 6 Public Services Category 5Cities Homeless Coalition (5CHC) application - $13,455 for a program that provides emergency subsistence and deposit payments with case management services for people who are homeless or at risk of becoming homeless. 12/15/2020 5CHC requested $2,000 for a program that provides emergency subsistence and deposit payments with case management services for people who are homeless or at risk of becoming homeless. 5CHC also requested $2,200 in funds from the City of Atascadero, $900 from the City of Morro Bay, $3,500 from the City of Paso Robles, $5,445 from the City of Pismo Beach, $3,500 from the City of San Luis Obispo, and $60,000 from the County. Staff ensured that 5CHC was also made aware of the Community Service Grant application opportunity, and received an application for $20,000 from 5CHC for the 2021 Grant Year. 7 Public Services Category Based on prior direction from Council that funding for public services should come from the Arroyo Grande CSGP and that CDBG funds should be dedicated to ADA projects, it is not recommended to fund Public Service requests through CDBG for 2021. 12/15/2020 8 Public Facilities Category No funding cap for Public Facilities City priority has been to address ADA accessibility deficiencies Recommendation: $31,981 towards finishing the barrier removal project at Ikeda Field, and $40,000 for barrier removal at the front entrance of City Hall. 12/15/2020 In 2014, when the City created the Community Service Grant Program, it was decided that CDBG funds would be allocated specifically to City projects that remove architectural barriers to improve disabled accessibility. Previously approved projects include curb ramp installations at mid-block crosswalks, Woman’s Club ADA improvements, and improving Accessibility at the Soto Sports Complex. Last year, the City Council approved $69,634 to be used for barrier removal projects under the Public Facilities category, and $6,093 for Administration, for a total of $75,727. Both 2019 and 2020 funds were allocated to Phase IV of the Soto Sports Complex Barrier Removal Project at Ikeda Field. 9 Public Facilities Category Phase IV Soto Sports Complex Barrier Removal Project – Ikeda Field On track for construction in Spring 2021 (though COVID-19 may cause some delays) Funds so far have been used for design and survey Working to bring final plans to Council for approval and authorization to solicit construction bids early 2021. 12/15/2020 10 Public Facilities Category City Hall Front Entrance Barrier Removal Project Staff is proposing $40,000 of the 2021 CDBG funds be allocated to a barrier removal project at City Hall. The proposed project would install an accessible entrance to the Arroyo Grande City Hall building, including installing exterior doors with automatic door openers that can be easily operated by citizens with mobility limitations. 12/15/2020 11 Planning & Capacity Building Like Administration, Planning and Capacity Building is capped at 20%, or $17,995 for Year 2021 County Administrative costs = $11,697 (per City/County Cooperation Agreement) City Planning and Capacity Building = $6,298 Preparation of an ADA Transition Plan 12/15/2020 Staff recommends allocating $11,697 to the County for its administrative costs per the City and County Cooperation Agreement. The City is allowed to use up to $6,298 from 2021 CDBG funds for its administrative and/or planning and capacity building costs. This year staff recommends using available funds towards preparation of an ADA Transition Plan. 12 Planning & Capacity Building Under Title II of the ADA, the City is required to have a current Self-Evaluation and Transition Plan. Need a comprehensive inspection, evaluation, of all City owned property to complete a final plan Total estimated cost to the City is $88,225. The funds from CDBG would decrease that total cost to $81,927. 12/15/2020 In order to complete this plan, the City will need a comprehensive inspection and evaluation identifying potential barriers in all City owned facilities (including buildings, parks, parking lots, public rights-of-way, and bike paths). Once the inspections and evaluation are completed, a final report will be prepared identifying priority projects. Staff has coordinated with CJPIA and their sub-consultants, Disability Access Consultants (DAC), to obtain a project proposal, scope of work, and estimated budget. Staff has also identified a financing program for ADA projects through CJPIA that may be of assistance in this project 13 12/15/2020 Here we have the proposed recommended allocations for Year 2021. The total proposed allocation for 2021 reflects only estimated funds. 14 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 2021. Final City approval of the CDBG allocation will tentatively occur in March 2021. 12/15/2020 15 Other Funding Categories Housing The Salvation Army applied for $300,000 from the County’s CDBG funds for permanent supportive housing. Subject properties have not been identified for this project, and the City did not receive a formal application for CDBG funds. If interested in allocating funding to the Salvation Army, they would like to find a unit in Arroyo Grande. Funding recommendations for this project, if any, are at Council’s discretion and are not currently included in staff’s recommended projects. 12/15/2020 The Salvation Army applied for $300,000 from the County’s CDBG funds for permanent supportive housing. Though the City did not receive a formal application from the Salvation Army, staff was informed by the County that if the City is interested in allocating funding to the Salvation Army, they would like to find a unit in the City’s jurisdiction. Funding recommendations for this project, if any, are at Council’s discretion and are not currently included in staff’s recommended projects. 16 Other Funding Categories Economic Development – No Cap – No applications Area Benefit – 30% Cap ($26,993) – No applications 12/15/2020 The final two categories of funding, Economic Development and Area Benefit, did not receive funding applications so not allocations are recommended. 17