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HomeMy WebLinkAboutD-1 - Staff Report - CDBG Program Year 2020-2021 SCHEDULED ITEM D-1 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: MATT MARQUEZ, DIRECTOR OF ECONOMIC AND COMMUNITY DEVELOPMENT DATE: DECEMBER 16, 2019 SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM YEAR 2020/2021 – ADOPTION OF RESOLUTION APPROVING THE CDBG PROGRAM YEAR 2020/2021 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, 2020 through June 30, 2021, the City estimates receiving approximately $398,252 in new CDBG funds. Additionally, $19,567 in previously unspent, unallocated CDBG funds are available for reprogramming into FY 2020-2021 CDBG projects for a total FY 2020-2021 CDBG Program budget of $417,819. Three (3) public service projects totaling $79,650 and three (3) capital improvement and housing- improvement related projects totaling $338,169 are recommended for funding in the upcoming CDBG Program Year 2020-2021. RECOMMENDATIONS: It is recommended that the City Council take the following actions: 1) Open the public hearing, receive testimony and presentation of the proposed projects, and adopt Resolution No. 2019-C63 approving the Program Year 2020-2021 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 Development Authority (LACDA). CDBG Program Resolution FY 2020/21 December 16, 2019 Page 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 2020-2021 funding in the amount of $398,252. Of that amount, there is a 20% maximum cap (approximately $79,650) for allocation to public service projects. Additionally, $19,567 in previously unspent, unallocated CDBG funds are available for reprogramming into FY 2020-2021 non-public service CDBG projects for a total FY 2020-2021 CDBG Program budget of $417,819. 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 Development Authority (LACDA) will release final appropriations in spring 2020. The City's final CDBG allocation is generally within five percent (5%) of the estimate provided. DISCUSSION: The Azusa Department of Economic and Community Development recommends FY 2020-2021 CDBG funding for three (3) public service projects, two (2) housing related projects, and one infrastructure improvement project. All proposed CDBG activities benefit low and moderate income Azusa residents. The following is the proposed list of 2020/2021 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 15,000 linear feet of deteriorated sidewalk and constructed 136 ADA-compliant curbs with truncated domes. According to the Public Works Department, over four miles of sidewalks remain in need of repair and more than 450 curb ramps do not meet ADA standards. This project is a continuing CDBG-funded FY 2019-2020 project. FY 2020-2021 CDBG funds in an amount of $23,602 plus unallocated CDBG funds in an amount of $19,567 will be added to FY 2019-2020 CDBG funds of $158,460 for a total project budget estimated at $201,629. 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 870 households with nearly $6.0 million in improvements. Staff CDBG Program Resolution FY 2020/21 December 16, 2019 Page 3 recommends continuing this project for FY 2020/2021 at its current FY 2019/2020 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 $35,000 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 $110,000. Public Service Projects (Subject to the 20% Public Service Cap of approximately $79,650) Three public service projects are recommended for FY 2020-2021 CDBG funding. The total amount requested by all three public service projects combined does not exceed the maximum funding cap of 20% or approximately $79,650. Los Angeles County Development Authority (LACDA) imposed a $10,000 minimum for any CDBG public service project funded. Staff recommends funding the following public service projects for FY 2020-2021: Azusa Family Services ($24,650): This City-staffed program will continue to meet the needs of Azusa youth, with greater emphasis 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 partially support the salary and benefits of a Recreation and Family Services Program Specialist, who is 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 $24,650. Neighborhood Homework House ($15,000): This Azusa-based project was initially approved by the City Council in 2000/2001, and will be in its 20th 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. This vitally important community service is being recommended for a funding increase from $10,000 in past years to $15,000 this year. This increase remains a small fraction of the program’s cost but very critical to its operation as expenditures have exceed revenues in recent years. Staff recommends funding this project at $15,000. CDBG Program Resolution FY 2020/21 December 16, 2019 Page 4 Senior Case Management ($40,000): The YWCA of San Gabriel Valley (YWCA) will begin its second year of offering Azusa senior adults comprehensive information, referral and case management services. The YWCA maintains a qualified level of staffing, service and capacity. Additionally, the YWCA provides an expanded level of services to Azusa senior adults that include bio-psychosocial assessments and comprehensive case management. The YWCA provides Case Managers at the Azusa Senior Center for a minimum of sixteen (16) hours weekly. Additionally, this year, due to high demand, home case management and assessment visits offered to Azusa homebound senior adults will increase from 8 hours weekly last year to an average of 12 hours weekly this year. This will result in approximately 50 additional Azusa homebound frail and/or disabled elderly to receive critical services. The YWCA sends trained Case Managers to visit Azusa home-bound senior adults. Housing, nutrition, social security, disability and health concerns of the 55+ population of Azusa residents are addressed. A total of 160 seniors are expected to receive services. Given the dedicated level of services including case management, assessment information and referral services to senior adults, staff recommends funding this project at $40,000. CONCLUSION: The recommended FY 2020-2021 CDBG projects and funding levels are identified below: FY 2020/2021 New Year CDBG Funds: $398,252 plus unallocated CDBG funds of $19,567, plus FY 2019-2020 CDBG funds of $158,460 for a total of $576,279 Project Recommended Amount FY 2020/2021 Infrastructure, Housing and Neighborhood Improvement Projects Single Family Housing Rehabilitation $185,000 Code Enforcement Program $110,000 Sidewalk and ADA Improvements* $23,602 FY 2019-2020 CDBG Funds $158,460 Carry-Over CDBG Funds $19,567 Subtotal: $496,629 FY 2020/2021 Public Service Projects (20% Maximum of FY 2020-2021 CDBG Allocation or approximately $79,650) YWCA of San Gabriel Valley $40,000 Azusa Family Services $24,650 Neighborhood Homework House $15,000 Subtotal: $79,650 Total CDBG Amount Available in FY 2020/2021 $576,279 *Please Note: A twenty percent (20%) CDBG Program cost may be charged for administrative and labor compliance services. CDBG Program Resolution FY 2020/21 December 16, 2019 Page 5 FISCAL IMPACT: There is no fiscal impact associated with the proposed recommendations. The preliminary FY2020/2021 CDBG approved projects and estimates will be used to develop the Proposed FY2020/2021 City of Azusa’s CDBG budget. 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. CDBG programs not only allow the City to respond to community needs with little impact to the General Fund, but decreases general fund subsidies of many programs. Prepared by: Reviewed By: Tina Gall Matt Marquez CDBG Consultant Director of Economic and Community Development Fiscal Impact Review: Reviewed and Approved: Talika M. Johnson Sergio Gonzalez Director of Administrative Services City Manager Attachment: 1) Resolution No. 2109-C63 ATTACHMENT 1 RESOLUTION NO. 2019-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ADOPTING THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FOR YEAR 2020-2021 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 2020-2021 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 Projected Use of CDBG Funds for Program Year 2020- 2021, attached hereto as Exhibit A, and submit the approved projects to the Los Angeles County Development Authority. SECTION 2. Approve inclusion of said projects in the City of Azusa Fiscal Year 2020-2021 budget. SECTION 3. Authorize the Mayor or authorized designee to execute all necessary contracts, agreements, and amendments with the Los Angeles County Development Authority 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 FY 2020-2021 CDBG Program and budget, as necessary, to take into account the final CDBG allocation from the U.S. Department of Housing and Urban Development, any amounts remaining unspent at the close of the preceding fiscal year, and programmatic changes necessary to fulfill the requirements of the CDBG Program. SECTION 5. The City Clerk shall certify the adoption of this resolution. PASSED, APPROVED AND ADOPTED this 16th day of December, 2019. ____________________________________ 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. 2019-XXX was duly adopted by the City Council of the City of Azusa, at a regular meeting of said City Council held on the 16th day of December 2019, 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 Use of Community Development Block Grant (CDBG) Funds Fiscal Year (FY) 2020/2021 New Year CDBG Funds: $398,252 plus unallocated CDBG funds of $19,567, plus FY 2019-2020 CDBG funds of $158,460, for a total of $576,279 Project Recommended Amount FY 2020-2021 Infrastructure, Housing and Neighborhood Improvement Projects: Single Family Housing Rehabilitation $185,000 Code Enforcement Program $110,000 Sidewalk and ADA Improvements* $23,602 FY 2019-2020 CDBG Funds $158,460 Carry-Over CDBG Funds $19,567 Subtotal: $496,629 FY 2020-2021 Public Service Projects (20% Maximum of FY 2020-2021 CDBG Allocation or approximately $79,650) YWCA of San Gabriel Valley $40,000 Azusa Family Services $24,650 Neighborhood Homework House $15,000 Subtotal: $79,650 Total Amount to be Programmed in FY 2020/2021 $576,279 *Please Note: A twenty percent (20%) CDBG Program cost may be charged for administrative and labor compliance services.