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Home My WebLink AboutSR - AGR-3218.P - 2015-16 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM*�"c* AGENDA ITEM April 14, 2015 TO: Honorable Mayor and Members of the City Council THRU: Rick Otto Interim City Manager FROM: Anna Pehoushek w Acting Assistant Community Development Director ReviewedNerified City Manager /U Finance Directo To Be Presented By: Mary Ellen Laster Cons Calendar City Mgr Rpts Council Reports Legal Affairs Boards /Cmtes X Public Hearings Admin Reports Plan/Environ 1. SUBJECT FY 2015 -16 Community Development Block Grant (CDBG) Program 2. SUMMARY The City receives annual CDBG allocations from the U.S. Department of Housing and Urban Development (HUD). Staff has conducted the FY 2015 -16 CDBG funding process in conjunction with the CDBG Program Committee. The total proposed CDBG budget is $1,142,296, which would include the City's FY 2015 -16 CDBG allocation in the amount of $1,139,709 and CDBG funds in the amount of $2,587 that would be rebudgeted for FY 2015 -16. The Committee's funding recommendations are provided on Attachment 1. 3. RECOMMENDATION 1. Approve the funding recommendations of the CDBG Program Committee for the City's FY 2015 -16 CDBG Program. 2. Authorize staff to request and receive its FY 2015 -16 CDBG entitlement in the amount of $1,139,709 from HUD, and rebudget $2,587 of unexpended FY 2014 -15 CDBG funds for FY 2015 -16. 3. Authorize the City Manager or his designee to execute FY 2015 -16 CDBG Program Memoranda of Understanding with City Departments, Subrecipient Agreements with nonprofit agencies, and all related CDBG Program documents. 4. FISCAL IMPACT Sufficient funds will be granted by HUD and appropriated to Fund 310 (CDBG Program) during the budget process. ITEM h-1 1 Printed on Recycled Paper 4/14/15 N:/CDD/HOUSING /CDBG /2015 -16 /SR 4 -14 -15 FY 2015 -16 CDBG Program Page 2 5. STRATEGIC PLAN GOAL(S) Goal 3: Enhance and promote the quality of life in the community. Strategy e: Develop and strengthen collaborative partnerships to enhance quality of life programs, projects, and services. 6. GENERAL PLAN IMPLEMENTATION Infrastructure Goal 3.0: Ensure adequate maintenance of public rights -of -way to enhance public safety and improve circulation. Policy 3.1: Continue to maintain and repair sidewalks and pavement surfaces on public rights - of -way. 7. DISCUSSION and BACKGROUND The City is entitled to receive annual CDBG allocations from HUD for activities that primarily benefit Low and Moderate Income residents. During the past several years, these funds have been allocated for a variety of projects and programs including street, sewer, and storm drain improvements; handicapped accessibility improvements; after - school and counseling programs; community policing; transitional housing; and supportive services. Staff began the FY 2015 -16 CDBG funding process in November 2014 by publicizing the availability of funds and notifying nonprofit agencies on the interest list. Outreach efforts included advertising in the Orange City News and placing a reader board notice on Time Warner Cable Channel 3. Attachment 2 provides a summary of the nonprofit agency funding process. In November and December 2014, meetings were held to provide technical guidance to interested applicants including City Departments and nonprofit agencies. City Department requests were reviewed to ensure that proposed projects and programs would be considered for funding on a priority basis. During January and February 2015, the CDBG Program Committee met to review all funding requests, hear presentations from applicants, and discuss the objectives of the CDBG Program. On March 4, 2015, the Committee held a public meeting to discuss proposed programs and projects, consider public comments, and make funding recommendations. The Committee considered requests from nonprofit agencies based upon the proposed benefit to Low and Moderate Income Orange residents, the agencies' demonstrated experience in carrying out the proposed activities, the financial feasibility of the proposed activities, and the amount of funding available. In addition, the Committee considered whether proposed programs and projects would address the priorities of the City's Five -Year Consolidated Plan. The Committee also used the Four -Year Funding Allocation History (Attachment 3) as a guide in the decision - making process. The City's proposed CDBG budget is $1,142,296, which would be comprised of the FY 2015 -16 CDBG allocation in the amount of $1,139,709 and unexpended FY 2014 -15 CDBG funds in the amount of $2,587 that would be rebudgeted for FY 2015 -16. ITEM 2 4/14/15 Q Printed on Recycled Paper NICDD/HOUSENG /CMG /2015 -16 /SR 4 -14 -15 FY 2015 -16 CDBG Program Page 3 The City's CDBG Program covers three categories: Administration including the Fair Housing Program, Public Facilities /Improvements/Rehabilitation, and Public Services. Attachment 1 lists the Committee's line item recommendations. Staff concurs with the recommendations, a summary of which follows. Administration The total allocation in the Administration category is $227,942, which is subject to a 20 percent budget cap. The Committee is recommending that $203,420 be allocated for the City's administration of the CDBG Program, and $24,522 be allocated to the Fair Housing Foundation for the City's Fair Housing Program. Public Facilities /Improvements/Rehabilitation The amount available in this category is $743,398. The Committee is recommending that all requests in this category be funded in full as follows: $731,163 to the Public Works Department for the ADA Wheelchair Access Ramps and Highland Neighborhood Streets and Alleys projects, and $12,235 to Helping Our Mentally Ill Experience Success, Inc. for the Riley House Rehabilitation project. Public Services The total allocation in the Public Services category $170,956, which is subject to a 15 percent budget cap. A total of $191,500 was requested under this category: $143,170 by two City departments and $48,330 by five nonprofit agencies. The amount requested exceeds the amount available by $20,544. Given the funding constraints and having considered all of the proposed the programs, the Committee is recommending that five programs be funded as follows: City Departments Allocation Nonprofit Agencies Allocation Community Services Dept. Assistance League After-School Programs $ 43,170 Operation School Bell $ 10,000 Friendly Center Police Dept. Emergency Food Basic Needs Assistance Public Bike Team 100,000 & Supplemental Food Programs 10,000 Services Mariposa Women & Family Center Total Community Counseling Program 7,786 Allocation City Department Total $ 143,170 Nonprofit Agency Total $ 27,786 $ 170,956 The Committee is recommending that FY 2015 -16 CDBG funding not be allocated to Birth Choice Health Clinics and the Dayle McIntosh Center. Council authorization is requested to enable the City to administer its FY 2015 -16 CDBG Program. This would include considering the Committee's funding recommendations for the City's FY 2015 -16 CDBG Program. If approved, a combined total of $40,021 would be allocated to four nonprofit agencies for Public Facilities /Improvements/Rehabilitation projects and Public Services programs. 8. ATTACHMENTS • Attachment 1 (FY 2015 -16 CDBG Program Committee Funding Recommendations) • Attachment 2 (FY 2015 -16 CDBG Program Nonprofit Agency Funding Process) • Attachment 3 (Four -Year CDBG Funding Allocation History) ITEM 3 4/14/15 (1?Printed on Recycled Paper N.i coo /H0US1NCicDaci2015- 16 /SR4 -14 -15