Loading...
HomeMy WebLinkAboutD-1 - Staff Report - CDBG Program Year 2019-20SCHEDULED ITEM D-1 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: KURT E. CHRISTIANSEN, FAICP, DIRECTOR OF ECONOMIC AND COMMUNITY DEVLOPMENT DATE: DECEMBER 17, 2018 SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM YEAR 2019/2020 – ADOPTION OF RESOLUTION APPROVING THE 45TH YEAR CDBG PROGRAM SUMMARY: Since 1974, the City of Azusa has participated under the County of Los Angeles Community Development Block Grant (CDBG) Program. Effective with the start of the new CDBG Program Year, July 1, 2019 through June 30, 2020, the City estimates receiving approximately $463,685 in new CDBG funds. Additionally, $65,168 in previously unspent, unallocated CDBG funds are available for reprogramming into FY 2019-2020 CDBG projects for a total FY 2019-2020 CDBG Program budget of $528,853. Three (3) public service projects totaling $69,552 and three (3) capital improvement and housing- improvement related projects totaling $459,301 are recommended for funding in the upcoming CDBG Program Year 2019-2020. RECOMMENDATION: It is recommended that the City Council take the following action: 1)Open the public hearing, receive testimony and presentation of the proposed projects, and adopt Resolution No. 2018-C70 approving the 45th Year Community Development Block Grant (CDBG) Program; and 2)Authorize the City Manager to execute all contracts and Agreements, in a form approved by the City Attorney, with the Los Angeles County Community Development Commission (CDC). APPROVED CITY COUNCIL 12/17/2018 CDBG Program Year 2019/20 December 17, 2018 Page 2 2 BACKGROUND: The City of Azusa 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 within the City. Annually, a public hearing is conducted to allow public comment on the City’s proposed use of CDBG funds. The City of Azusa anticipates receiving new FY 2019-2020 funding in the amount of $463,685. Of that amount, there is a 15% maximum cap ($69,552) for allocation to public service projects. Additionally, $65,168 in previously unspent, unallocated CDBG funds are available for reprogramming into FY 2019- 2020 non-public service CDBG projects for a total FY 2019-2020 CDBG Program budget of $528,853. This City’s estimated CDBG allocation is based on current CDBG funding levels and is consistent with the amount of funding the City has received in the past. The proposed CDBG allocation is a planning estimate only; the Los Angeles County Community Development Commission (CDC) will release final appropriations in spring 2019. The City's final CDBG allocation is generally within five to ten percent (5%-10%) of the estimate provided. ANALYSIS: The Azusa Department of Economic and Community Development released a Notice of Funding Availability (NOFA) on November 1, 2018 inviting applications for FY 2019-2020 CDBG funding. Three (3) housing improvement-related and capital improvement project applications were received, and three (3) public service applications were received. Four applications were received from City Departments and two applications were received from nonprofit organizations. Public service funding requests were consistent within the maximum cap allowed of $69,552. Requests for housing-related and construction projects also remained consistent within the available CDBG funding allocation. Staff analyzed all of the submitted proposals. Analysis was based on benefit to low/moderate income Azusa residents, organizational experience, budget, and community need. All applicants were required to demonstrate administrative capacity to run and monitor a federally-funded program. Prior CDBG funding experience was preferred. The following is the proposed list of 2019/2020 CDBG Program activities and funding recommendations: Capital Improvement Projects Sidewalk and Americans-with-Disabilities Act Compliant (ADA) Improvements: Sidewalks make neighborhoods more accessible and offer all persons, especially elderly and severely disabled persons safe and clear paths of travel. This continuing project will improve pedestrian safety by repairing existing sidewalks that pose risk or prohibit safe pedestrian paths of travel. In addition, this project will upgrade existing curb ramps to comply with the Americans with Disabilities Act (ADA). Since 2014, CDBG funds have repaired and replaced more than 12,000 linear feet of deteriorated sidewalk and constructed 118 ADA-compliant curbs with truncated domes. According to the Public Works Department, over 4 miles of sidewalks remain in need of repair and more than 450 curb ramps do not meet ADA standards. Staff recommends funding this project for FY 2019/2020 in an amount of $166,301. CDBG Program Year 2019/20 December 17, 2018 Page 3 3 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 $12,000. Grants are used to correct code, health, and safety violations in conjunction with the Code Enforcement/Community Improvement Program. 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 860 households with nearly $5.9 million improvements. Staff recommends continuing this project for FY 2019/2020 at its current FY 2018/2019 funding level of $185,000. This recommendation is based upon the fact that this program will successfully meet its goal of completing approximately twelve or thirteen housing rehabilitation grants and will allow CDBG funds to be distributed to other housing-related and capital improvement projects. Housing Rehabilitation Program administration costs of $31,000 are included in the total Housing Rehabilitation budget of $185,000. Code Enforcement Program/CDBG: This project will continue to fund the salary and benefits of one full-time community improvement inspector, to provide additional code enforcement activities concentrated in the eligible low-to-moderate income areas of the City. The continued funding of the Code Enforcement staff position will allow for approximately 500 properties to be inspected annually, benefiting 1,500 households. This program works in conjunction with the Single Family Housing Rehabilitation Program. Staff recommends funding this program at $108,000. Public Service Projects (Subject to the 15% Public Service Cap of $69,552) Three public service project applications were received for FY 2019-2020 CDBG funding. The total amount requested by all three public service projects combined does not exceed the maximum funding cap of 15% or $69,552. Los Angeles County Community Development Commission imposed a $10,000 minimum for any CDBG public service project funded. Staff recommends funding the following public service projects for FY 2019-2020: Azusa Family Services ($29,552): Formerly the Azusa After School Program, this re-designed City- staffed program will continue to meet the needs of Azusa youth, however, greater emphasis will be placed on providing a comprehensive range of supportive services to youth and families. In addition to afterschool educational activities for Azusa youth, this proposed project will expand these services to offer Azusa youth and their families a more broad and integrative array of supportive services. These supportive services include providing information, referral and outreach for mental health, substance abuse, domestic violence, counseling, disabled services, homeless resources, and access to health and social services. Outreach will be conducted through the after school program and through other city programs and events to engage interested residents. CDBG funds would partially support the salary and benefits of a new Recreation and Family Services Program Specialist. This employee will be trained in public health and/or social work in order to best meet the needs of Azusa youth and their families. Staff recommends funding this project at $29,552. CDBG Program Year 2019/20 December 17, 2018 Page 4 4 Neighborhood Homework House ($10,000): This Azusa-based project was initially approved by the City Council in 2000/2001, and will be in its 19th year. Annually, this program assists approximately 200 youth from Kindergarten through 12th grade providing tutoring and academic enrichment programs. A trained volunteer tutoring staff provides individualized instruction. Neighborhood Homework House also offers English as a Second Language (ESL) classes for parents and a computer lab for children. This program has been successful in serving 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 funding this project at $10,000. Senior Case Management ($30,000): With the recent closing of Santa Anita Family Service, the City solicited a proposal from the YWCA San Gabriel Valley to offer Azusa senior adults comprehensive information, referral and case management services. The YWCA San Gabriel Valley’s proposal demonstrated qualified levels of staffing, service and capacity. Additionally, the YWCA will offer an expanded level of services to Azusa senior adults that include bio-psychosocial assessments and comprehensive case management. The YWCA San Gabriel Valley will provide Case Managers at the Azusa Senior Center for a minimum of sixteen (16) hours weekly. Additionally, home case management and assessment visits will now be offered to Azusa homebound senior adults. The YWCA will send trained Case Managers, on average of 8 hours per week, to visit Azusa home-bound senior adults. Housing, nutrition, social security, disability and health concerns of the 55+ population of Azusa residents are addressed. 120 seniors are expected to receive services. Given the proposed expansion of case management, assessment information and referral services to senior adults, staff recommends funding this project at $30,000. CONCLUSION: The recommended FY 2019-2020 CDBG projects and funding levels are identified below: Proposed Statement of Objectives and Projected Use of 45th Year CDBG Funds FY 2019/2020 New Year CDBG Funds: $463,685 plus carry-over funds of $65,168 for a total of $528,853 Project Requested Amount Recommended Amount Infrastructure, Housing and Neighborhood Improvement Projects ($459,301 Available): Single Family Housing Rehabilitation $185,000 $185,000 Code Enforcement Program $90,000 $90,000 20% Administrative Cost* $18,000 $18,000 Sidewalk and ADA Improvements $166,301 $166,301 Subtotal: $459,301 $459,301 Public Service Projects (15% Cap Limit of $69,552) Azusa Family Services $27,000 $29,552 CDBG Program Year 2019/20 December 17, 2018 Page 5 5 Neighborhood Homework House $10,000 $10,000 Senior Case Management $30,000 $30,000 Subtotal: $67,000 $69,552 Overage of 15% Cap Limit $0 $0 Total Amount to be Programmed in FY 2019/2020 $528,853 *Please Note: A twenty percent (20%) CDBG Program administrative allowance may be charged on a per project specific basis. FISCAL IMPACT: The Council approved program year 2019/20 CDBG projects and previously unspent and unallocated CDBG funds will be requested through the fiscal year 2019/20 annual city budget approval process. The recommended amount is based on preliminary planning figures. Staff will make any minor adjustments to reflect the actual final grant allocation awarded to the City. Staff will prepare a budget amendment to ensure the CDBG budget is consistent with the final grant allocation award amount. 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 Fiscal Impact Review: Sergio Gonzalez Talika M. Johnson City Manager Director of Finance Attachments: 1) Resolution No. 2018-C70 ATTACHMENT 1 RESOLUTION NO. 2018-C70 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 YEAR 2019-2020 WHEREAS, the City of Azusa participates under the County of Los Angeles Community Development Block Grant (CDBG) Program; and WHEREAS, City staff considered and evaluated projects and programs fulfilling important community needs; and WHEREAS, the City Council provided the opportunity for public input regarding the City's Community Development Block Grant Program for the 2019-2020 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 45th 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 2019-2020 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 17th day of December, 2018. ____________________________________ 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. 2018-XXX was duly adopted by the City Council of the City of Azusa, at a regular meeting of said City Council held on the 17th day of December 2018, 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 45th Year Community Development Block Grant (CDBG) Funds FY 2019/2020 New Year Funds: $463,685 Carryover Funds: $65,168 Total Amount Available $528,853 Project Recommended Amount Infrastructure, Housing and Neighborhood Improvement Projects ($459,301 Available): Single Family Housing Rehabilitation $185,000 Code Enforcement Program $90,000 20% Administrative Cost* $18,000 Sidewalk and ADA Improvements $166,301 Subtotal: $459,301 Public Service Projects (15% Cap Limit of $69,552) Azusa Family Services $29,552 Neighborhood Homework House $10,000 Senior Case Management $30,000 Subtotal: $69,552 Overage of Cap Limit 0 Total Amount Programmed in FY 2019/2020 $528,853 Total $528,853 *Please Note: A twenty percent (20%) CDBG Program administrative allowance may be charged on a per project specific basis.