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HomeMy WebLinkAboutD-1 Staff Report - CDBG Public HearingSCHEDULED ITEM D-1 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: KURT CHRISTIANSEN, DIRECTOR OF ECONOMIC AND COMMUNITY DEVELOPMENT VIA: TROY BUTZLAFF, CITY MANAGER DATE: FEBRUARY 1, 2016 SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FY 2016/17 – ADOPTION OF RESOLUTION APPROVING THE 42ND YEAR CDBG PROGRAM SUMMARY: The City has participated in the Community Development Block Grant (CDBG) Program since its inception in 1974, utilizing federal funds for various housing and community development projects within the City. Annually, a public hearing must be held to determine the allocation of these funds. This action holds a public hearing to receive public input on the 42nd Year CDBG Program. RECOMMENDATION: Staff recommends that the City Council take the following actions: 1)Open the Public Hearing, receive public testimony, close the Public Hearing; 2) Adopt the resolution approving the 42nd Year Community Development Block Grant (CDBG) Program. DISCUSSION: Los Angeles County cities with populations under 50,000 may receive their CDBG entitlement through participation with the Los Angeles Urban County CDBG Program. To maintain eligibility, the City entered into a Participation Agreement with the County of Los Angeles, and is currently a participating City through the Los Angeles County Community Development Commission (LACDC). The LACDC has advised agencies to budget CDBG programming slightly below FY 2015/16 levels. The City anticipates receiving new funding in the amount of $435,319 for FY 2016/17. Of this amount there is a 15% cap ($62,297) on Public Service Projects. There is an estimated $28,550 in carry-over funds that is available for Non-Public Service Projects. The carryover funds are primarily attributed to the repayment of a rehabilitation loan. 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. Three (3) non-public service projects were APPROVED COUNCIL MEETING 02/01/2016 Community Development Block Grant (CDBG) FY 2016/17 February 1, 2016 Page 2 2 assigned a combined $17,262 administrative allocation that will lower General Fund salary cost associated with program oversight. Staff received (3) Non-Public Service and (4) Public Service proposals from City Staff and nonprofit organizations. Public service funding requests totaled $62,297, meeting the cap on Public Service projects. Request for Non-Public Service projects totaled $373,022. Staff analyzed all of the submitted proposals. The criteria used to determine the importance was based on, 1) benefit to low/moderate income, 2) if the project is a City-staffed project, 3) number of Azusa residents assisted, 4) whether the project is a continuing program, and 5) if the project is a City-based project. All applicants are required to have administrative capacity to run and monitor a federally-funded program, and prior CDBG funding experience is preferred. Staff then analyzed the public service funding amounts requested. Since funding requests were higher than the overall amount available for public service projects, Staff has recommended revisions to the requested amounts. Staff also took into account that all non-profits must be annually monitored at their site by City-staff, incurring additional City Staff hours. The following is a list of all the 42nd Year project proposals and Staff recommendations: CAPITAL IMPROVEMENT PROJECTS: Sidewalk and ADA Improvements Sidewalks make neighborhoods more accessible and offer pedestrians safe access to their destinations. This 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). Currently, there are over five miles of sidewalks in need of repair and 700 curb ramps that do not meet ADA standards. The Public Works Department has requested $250,000 for cycle 2016/17. Staff recommends funding this project during the 2016/17 cycle for $92,314. HOUSING AND CODE ENFORCEMENT PROJECTS: 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 $9,000. 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 826 households with nearly $5.6M in improvements. Staff recommends fully funding this project in the amount of $194,400. This would fund a minimum of 18 minor home repair grants for $162,000, and project management costs at $32,400. 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 an additional 600 properties to be inspected annually, benefiting 2,000 households. This program will work in conjunction with the Single Community Development Block Grant (CDBG) FY 2016/17 February 1, 2016 Page 3 3 Family Housing Rehabilitation Program. Staff recommends fully funding this program at $86,308 and administration (20%) at $17,262. PUBLIC SERVICE PROJECTS: (Subject to the 15% Public Service Cap of $63,991) Funding requests typically exceed the allowed amount and funding for public service projects has been severely limited. It is always difficult to decide where to cut funding or delete a public service project. Additionally, Los Angeles County has imposed a $10,000 minimum for any project funded, which decreases the amount of projects that can be funded. Although all of the proposed projects in some way address Azusa’s community needs, Staff recommendations focus on those projects that most closely comply with the analysis guidelines listed above. After School Playground Program: This City-staffed program is in its 21st year of operation in conjunction with the School District. After school programs have been statistically proven to have positive impacts in preventing crime and 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 to elementary-aged youth in conjunction with the Recreation and Family Services Department and School District. Although $65,380 is requested, due to limited funding, Staff recommends funding this project at a reduced amount of $32,297 for FY 16/17. Homework House: This Azusa-based project was initially approved by the City Council in 2000/01, and will be in its 15th year. In FY 2015/16 this program assisted 183 youths from Kindergarten through 12th Grade; providing tutoring and academic enrichment programs at 3 locations. A trained volunteer tutoring staff provides individualized instruction. Homework House also offers ESL classes to the parents and a computer lab for the 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. Senior 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 2015/16, 347 senior clients were served 27,969 meals. The Sr. Community Development Block Grant (CDBG) FY 2016/17 February 1, 2016 Page 4 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. Although $16,620 was requested, due to funding constraints, Staff recommends funding this project at last year’s amount of $10,000. Senior Referral and Case Management: Community Development Block Grant (CDBG) FY 2016/17 February 1, 2016 Page 4 4 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 2015/16, 112 seniors were assisted. Santa Anita Family Services has requested funding of $17,342, and proposes to provide 748 hours of service in 2016/17. Staff recommends funding this project at last year’s amount of $10,000. Funding was requested for seven (7) projects, including four (4) public service projects. Staff is recommending funding those projects which are continuing projects, staffed by City employees which benefit low-to-moderate income Azusa residents. . This year, Staff recommends funding (6) of the (7) projects. A summary of all projects and funding amounts follows: Proposed Statement of Objectives and Projected Use of 42st Year CDBG Funds CDBG FY 2016/17 New Year Funds: $435,319 Carryover Funds: $28,550 Total Funds Available: $463,869 Project Requested Amount Recommended Amount Non-Public Service Projects ($391,172 Available) : Single Family Housing Rehabilitation $194,400 $194,400 Code Enforcement Program $86,308 $86,308 20% Administrative Cost* $17,262 Sidewalk and ADA Improvements 250,000 0 Subtotal: $530,708 $297,970 Public Service Projects (15% Cap Limit of $63,991) After School Program (After School Playgrounds) $65,380 $32,297 Homework House $10,000 $10,000 Sr. Nutrition Site Manager $16,620 $10,000 Sr. Referral & Case Management $17,815 $10,000 Subtotal: $109,815 $62,297 Overage of Cap Limit ($44,011) $0 Total Amount Programmed in FY 2015/16 $360,267 Unallocated Balance $93,202 Total $455,163 *The LACD 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. Community Development Block Grant (CDBG) FY 2016/17 February 1, 2016 Page 5 5 FISCAL IMPACT: Approved projects will be reflected in the 2016/17 Annual Budget. 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: Martin Quiroz Kurt Christiansen Neighborhood Improvement Coordinator 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 2) CDBG Public Service Funding Request Proposals 3) CDBG Non-Public Service Funding Request Proposals 4) Eligible Area Map ATTACHMENT 1 RESOLUTION NO. 2016-C13 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 2016-17 WHEREAS, the City of Azusa is participating under the County of Los Angeles Community Development Block Grant 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 2016-17 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 42nd Year CDBG Funds attached hereto as Exhibit A, and submit the approved projects to the Community Development Commission. SECTION 2. Approve inclusion of said projects in the City of Azusa Fiscal Year 2016-17 budget. SECTION 3. Authorize the Mayor or authorized designee to execute all necessary contracts and agreements with the Community Development Commission and with each approved recipient/subrecipient of the 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 1st day of February, 2016. ____________________________________ 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. 2016-C13 was duly adopted by the City Council of the City of Azusa, at a regular meeting of said City Council held on the 1st day of February, 2016, 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 41st Year CDBG Funds CDBG FY 2015/16 New Year Funds: $426,613 Carryover Funds: $28,550 Total Funds Available $455,163 Project Recommended Amount Non-Public Service Projects ($391,172 Available) : Single Family Housing Rehabilitation $194,400 Code Enforcement Program $86,308 20% Administrative Cost* $17,262 Sidewalk and ADA Improvements 0 Subtotal: $297,970 Public Service Projects (15% Cap Limit of $63,991) After School Program (After School Playgrounds) $32,297 Homework House $10,000 Sr. Nutrition Site Manager $10,000 Sr. Referral & Case Management $10,000 Subtotal: $62,297 Overage of Cap Limit Total Amount Programmed in FY 2015/16 $360,267 Unallocated Balance $93,202 Total $455,163 *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. ATTACHMENT 2 ATTACHMENT 3 ATTACHMENT 4