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HomeMy WebLinkAboutD-1 FY 17_18 CDBG Staff Report_12.15Community Development Block Grant (CDBG) FY 2017/18 January 3, 2017 Page 1 SCHEDULED ITEM/PUBLIC HEARING D-1 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER FROM: KURT E. CHRISTIANSEN, FAICP, DIRECTOR OF ECONOMIC AND COMMUNITY DEVLOPMENT DATE: JANUARY 3, 2017 SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FY 2017/18 – ADOPTION OF RESOLUTION NO. 2017-C1 APPROVING THE 43RD YEAR CDBG PROGRAM SUMMARY: Since 1974, the City of Azusa has participated under the County of Los Angeles Community Development Block Grant (CDBG) Program. For the upcoming CDBG Program Year beginning July 1, 2017 through June 30, 2018, the City estimates receiving approximately $422,720 in new CDBG funds. Additionally, prior year unspent CDBG funds totaling $227,194 will also be available to reprogram into eligible 2017-2018 CDBG projects, for a grand total of $649,914. Four (4) public service projects totaling $63,408 and five (5) capital improvement and housing-improvement related projects totaling $586,506 are recommend for CDBG funding in 2017-2018. This action conducts a public hearing to receive public testimony on the proposed CDBG expenditure plan and approves a Resolution adopting the 43rd Year CDBG Program. RECOMMENDATION: Staff recommends that the City Council take the following action: 1) Open the Public Hearing, receive public testimony, close the Public Hearing; 2) Adopt Resolution No. 2017-C1 approving the 43rd Year Community Development Block Grant (CDBG) Program. BACKGROUND: The City has participated in the Community Development Block Grant (CDBG) Program since its inception in 1974, utilizing these federal funds for various housing and community development projects. Annually, a public hearing must be held to program the City’s allocated CDBG funds. The Los Angeles County Community Development Commission (LACDC) has advised agencies to budget CDBG programming slightly below the FY 2016/17 levels. The City anticipates receiving new APPROVED COUNCIL MEETING 1/3/2017 Community Development Block Grant (CDBG) FY 2017/18 January 3, 2017 Page 2 funding in the amount of $422,720 for FY 2017/18. Of this amount there is a 15% cap ($63,408) on Public Service Projects. An estimated $227,194 in carry-over funds will be available for Non-Public Service Projects. These carry-over funds are due to unspent funds from previously closed out CDBG projects and repayment of housing rehabilitation loans. The carry-over funds from previous CDBG funding cycles will be used to support two new projects entitled, “Azusa Public Library American with Disabilities Act (ADA) – Compliant Restroom Retrofit and Improvements ($195,000)”, and “Azusa Senior Center Improvement Project ($32,194)”. Historically, the LACDC has allowed a 10% administrative allocation for general program oversight. Due to reduced funding, the LACDC no longer allows a ‘general’ administrative allocation, but does allow each recipient to charge up to 20% in administrative costs on a per project basis. The Code Enforcement Project is assigned a $23,312 administrative allocation that will lower the General Fund salary cost associated with program oversight. DISCUSSION: Staff received (3) Non-Public Service and (4) Public Service proposals from City staff and nonprofit organizations. Public service funding requests exceeded the maximum total allocation of $63,408 by $46,681. Requests for Non-Public Service projects also exceed the budgeted amount by $10,256. Staff analyzed all of the submitted proposals. Analysis was based on, in order of importance, 1) benefit to low/moderate income persons, 2) if the project is a City-staffed project, 3) number of Azusa residents assisted, and 4) whether the project is a continuing program. All applicants are required to have administrative capacity to run and monitor a federally-funded program. Prior CDBG funding experience is preferred. Non-Public Service Projects ($359,312 Available) This year, requests for non-public service projects exceeded the amount of available funds by $10,256. Staff recommends that the City Council approve the following three (3) non-public service projects: Sidewalk and ADA Improvements: Sidewalks make neighborhoods more accessible and offer pedestrians safe access to their destinations. This continuing project would improve pedestrian safety by repairing existing sidewalks that may inhibit pedestrian access or cause injuries, minimizing the risks of trip and fall incidents. In addition, this project will upgrade existing curb ramps to comply with the Americans with Disabilities Act (ADA). During the 2014/2015 and 2015/2016 CDBG Funding Years, approximately 7,068 linear feet of deteriorated sidewalk was replaced and sixty-two (62) ADA- compliant curbs with truncated domes were installed. According to the Public Works Department, over 5 miles of sidewalks remain in need of repair and more than 600 curb ramps do not meet ADA standards. For CDBG Funding Year 2016/2017, funds totaling $68,675 were allocated. Staff recommends continuing funding for FY 2017/2018 in an amount of $61,000 for a total project amount of $129,675. This will allow the City to combine dollars from both funding cycles to create a more substantial project, improve more sidewalk, install additional ADA-compliant ramps, and benefit from economies of scale. Single Family Housing Rehabilitation Program: This owner-occupied single family housing rehabilitation grant program is ongoing. The maximum grant amount allowed for a single family residence is $12,000. Grants are used to correct code and safety violations in conjunction with the Code Enforcement/Community Improvement Program, and make visible exterior improvements. Funds are provided based on income eligibility of each applicant, i.e., those households earning 80% or less of median income. Since 1991, this program has assisted over 840 households with nearly $5.6M in improvements. Staff recommends a slight reduction in funding this project for FY 2017-2018. This recommendation is based upon a reduction in the average of the program’s expenditures over the past three years of approximately 15%. Thus, staff recommends funding this project in an amount of $185,000; a 4% reduction from the FY 2016-2017 funding level of $194,400. For FY 2017-2018, approximately 12-13 minor home repair grants for $155,000 will be completed; project management costs of $30,000 are included in the total budget. Code Enforcement Program/CDBG: This project would continue to fund salaries and benefits of one full-time community improvement inspector, and would provide additional code enforcement activities concentrated in the eligible low-to-moderate income areas of the City. The continued funding of this code enforcement position would allow for 500 properties to be inspected annually, benefiting 1,500 households. This program will work in conjunction with the Single Family Housing Rehabilitation Program. Staff recommends funding this program at $90,000 with an overall administrative cost of $23,312. Public Service Projects (Subject to the 15% Public Service Cap of $63,408) This year, funding requests for public service projects exceeded the available public service cap by $46,681. After reviewing the four (4) public service funding requests received, Staff recommends that that they be funded at the same levels in 2017/2018 as funded in 2016/2017. The recommended public service projects include: After School Playground Program: This City-staffed program is in its 22nd year of operation in conjunction with the School District. After school programs have been statistically proven to have positive impacts in crime prevention and acts of vandalism. After school recreational and tutoring activities are currently provided at six school sites; Murray, Powell, Dalton, Mountain View, Lee, and Gladstone Street Schools. These programs serve elementary-aged youth in conjunction with the Recreation and Family Services Department and School District. Staff recommends funding this project at $33,408 for FY 2017/18. The program currently receive $34,702 in CDBG funding for FY 2016/17. The slight reduction proposed for FY 2017/2018 is due to fluctuations in the City’s annual CDBG allocation anticipated for FY 2017/18. Homework House: This Azusa-based project was initially approved by the City Council in 2000/01, and will be in its 17th year. In FY 2016/17 this program is expected to assist 190 youth from Kindergarten through 12th grade providing tutoring and academic enrichment programs at three (3) locations. A trained volunteer tutoring staff provides individualized instruction. Homework House also offers English as a Second Language (ESL) classes to parents, and a computer lab for children. This program has been successful in empowering a large number of at-risk Azusa children at a reasonable cost and is leveraged with funding from several sources besides the City. The requested funding is only a small fraction of the program’s cost but very critical as expenditures have exceed revenues in recent years. Staff recommends fully funding this program in the amount of $10,000; the program has been historically funded at $10,000 per year. Sr. Nutrition Site Manager: This City-staffed project funds salaries and benefits of the part-time Sr. Nutrition Site Manager for the City’s Senior Nutrition Program. The Sr. Nutrition Site Manager works an average of 25 hours per week, supervising the Congregate and Home Delivered Meals Programs at the Azusa Senior Center. In 2016/17, 360 senior clients are anticipated to be served approximately 33,802 hot meals. The Sr. Nutrition Site Manager coordinates both programs, trains the volunteer food service workers, and coordinates special events geared toward educating the elderly on proper nutrition. This program is funded with State grants, client donations, and subsidies from the City’s General Fund. Staff recommends funding this project at the same amount in 2016/2017 of $10,000. Sr. Referral and Case Management: This continuing program complements existing programs offered to seniors by the Azusa Senior Center. City-based referral and case management services are offered by social workers from the Santa Anita Family Service, a nonprofit organization, directly to Azusa seniors out of the Azusa Senior Center. Housing, nutrition, social security, disability and other concerns of the 55+ population of Azusa residents are addressed. In 2016/17, 90 seniors are expected to receive services. Staff recommends funding this project at 2016/17 amount of $10,000. CONCLUSION: Funding was requested for seven (7) projects, including four (4) public service projects. Staff is recommending funding all seven continuing projects, staffed by City employees, and City-based, all which benefit low-to-moderate income Azusa residents. Although Staff may recommend project funding levels, final selection lies entirely with the City Council. Furthermore, an estimated $227,194 in carry-over funds will be available for Non-Public Service Projects. The carryover funds are primarily attributed to unspent funds from previously closed out CDBG projects and repayment of housing rehabilitation loans. The carry-over funds from previous CDBG funding cycles will be used to support two, new projects entitled, “Azusa Public Library American with Disabilities Act (ADA)–Compliant Restroom Retrofit and Improvements ($195,000)”, and “Azusa Senior Center Improvement Project ($32,194)”. A summary of all projects and recommended funding amounts are listed below: Proposed Statement of Objectives and Projected Use of 43rd Year CDBG Funds CDBG FY 2017/18 New Year Funds: $422,720 Carryover Funds: $227,194 Total Funds Available: $649,914 Project Requested Amount Recommended Amount Non-Public Service Projects ($359,312 Available) : Single Family Housing Rehabilitation $194,400 $185,000 Code Enforcement Program $89,856 $90,000 20% Administrative Cost* $23,312 $23,312 Sidewalk and ADA Improvements 62,000 61,000 Subtotal: $369,568 $359,312 Public Service Projects (15% Cap Limit of $63,408) After School Program (After School Playgrounds) $65,381 $33,408 Homework House $10,000 $10,000 Sr. Nutrition Site Manager $16,623 $10,000 Sr. Referral & Case Management $18,085 $10,000 Subtotal: $110,089 $63,408 Overage of 15% Cap Limit $46,681 $0 Total Amount Requested $479,657 $422,720 Total Amount Programmed in FY 2017/18 $422,720 Unallocated Balance $227,194 Azusa Public Library American with Disabilities Act (ADA) Compliant Restroom Retrofit and Improvements $195,000 Azusa Senior Center Improvement Project $32,194 Total $649,914 *The LACDC no longer allows a 10% administrative allocation for general oversight associated with the CDBG program. In an effort to recoup cost associated with program oversight, LACDC now allows up to a 20% administrative reimbursement on a per project specific basis. FISCAL IMPACT: Approved CDBG projects will be included in the FY2017-18 Proposed Annual Budget for Council’s review and approval around June of 2016. The recommended amount is based on preliminary planning figures. Staff will make any minor adjustments to reflect actual grant allocation to the City. CDBG programs not only allow the City to respond to community needs with little impact to the General Fund, but decreases general fund subsidies on many programs. Prepared by: Reviewed and Approved: Tina Gall Kurt Christensen, FAICP CDBG Consultant Director of Economic and Community Development Reviewed and Approved: Reviewed and Approved: Louie F. Lacasella Troy L. Butzlaff, ICMA-CM Management Analyst City Manager Attachments: 1) Resolution No. 2017-C1 2) Eligible Service Area Map ATTACHMENT 1 RESOLUTION NO. 2017-C1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ADOPTING THE STATEMENT OF COMMUNITY DEVELOPMENT OBJECTIVES AND SELECTING PROJECTS FOR FUNDING FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FOR FISCAL YEAR 2017-18 WHEREAS, the City of Azusa is participating under the County of Los Angeles Community Development Block Grant (CDBG) Program; and WHEREAS, City staff has considered and evaluated projects and programs fulfilling important community needs; and WHEREAS, the City Council has provided the opportunity for public input regarding the City's Community Development Block Grant Program for the 2017-2018 program year. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Azusa does hereby take the following actions: SECTION 1. Select and approve the Proposed Statement of Objectives and Projected Use of 43rd Year CDBG Funds attached hereto as Exhibit A, and submit the approved projects to the Los Angeles County Community Development Commission. SECTION 2. Approve inclusion of said projects in the City of Azusa Fiscal Year 2017-2018 budget. SECTION 3. Authorize the Mayor or authorized designee to execute all necessary contracts and agreements with the Los Angeles County Community Development Commission and with each approved recipient/subrecipient of the CDBG program, together with any changes therein which may be approved by the City Manager and, as necessary, the City Attorney. SECTION 4. Authorize staff to adjust the program budget as necessary to take into account the final CDBG allocation from the U.S. Department of Housing and Urban Development and any amounts remaining unspent at the close of the preceding fiscal year. SECTION 5. The City Clerk shall certify the adoption of this resolution. PASSED, APPROVED AND ADOPTED this 3rd day of January, 2017. ____________________________________ Joseph Romero Rocha Mayor ATTEST: ____________________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Resolution No. 2017-C1 was duly adopted by the City Council of the City of Azusa, at a regular meeting of said City Council held on the 3rd day of January 2017, by the following vote of the Council: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ___________________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk APPROVED AS TO FORM: ___________________________________ Best Best & Krieger, LLP City Attorney Exhibit A Proposed Statement of Objectives and Projected Use of 43rd Year Community Development Block Grant (CDBG) Funds FY 2017/18 New Year Funds: $422,720 Carryover Funds: $227,194 Total Funds Available $649,914 Project Recommended Amount Non-Public Service Projects ($391,172 Available) : Single Family Housing Rehabilitation $185,000 Code Enforcement Program $90,000 20% Administrative Cost* $23,312 Sidewalk and ADA Improvements 61,000 Subtotal: $359,312 Public Service Projects (15% Cap Limit of $63,408) After School Program (After School Playgrounds) $33,408 Homework House $10,000 Sr. Nutrition Site Manager $10,000 Sr. Referral & Case Management $10,000 Subtotal: $63,408 Overage of Cap Limit 0 Total Amount Programmed in FY 2017/18 $422,720 Unallocated Balance $227,194 Azusa Public Library American with Disabilities Act (ADA) Compliant Restroom Retrofit and Improvements $195,000 Azusa Senior Center Improvement Project $32,194 Total $649,914 *The LACDC no longer allows a 10% administrative allocation for general oversight associated with the CDBG program. In an effort to recoup cost associated with program oversight, LACDC now allows up to 20% administrative reimbursement on a per project specific basis. Sources: Esri, HERE, DeLorme, Intermap, increment P Corp., GEBCO, USGS, FAO, NPS, NRCAN,GeoBase, IGN, Kadaster NL, Ordnance Survey, Esri Japan, METI, Esri China (Hong Kong), swisstopo,MapmyIndia, © OpenStreetMap contributors, and the GIS U ser Community CC o m m u n i t y o m m u n i t y DD e v e l o p m e n t e v e l o p m e n t BB l o c k l o c k GG r a n trant Path: C:\ArcGIS_Misc Projects_4_10.1\Andy C\Azusa CDBG.mxd Thursday, December 15, 2016 J. Prado City of A zusa Lege nd CDBG