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HomeMy WebLinkAbout03-02-2016 CDBG MinutesCDBG Minutes March 2, 2016 Page 1 of 7 CITY OF ORANGE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM COMMITTEE (CDBG) MINUTES WEDNESDAY,MARCH 2, 2016 6:30 P.M. Weimer Room, Orange City Hall MEMBERS PRESENT MEMBERS ABSENT STAFF PRESENT Mary Ellen Manning Mary Ellen Laster Megan Penn Fernando Rico Janice Mickelson-Weilmuenster David Gillanders (Alternate) Eva Perez (Present for five minutes for approval of the March 4, 2015 Minutes.) I.CALL TO ORDER The meeting was called to order at 6:55 P.M. II.APPROVAL OF MINUTES –MARCH 4, 2015 and FEBRUARY 17, 2016 Committee Member Perez briefly attended this meeting in order to vote on the approval of the March 4, 2015, CDBG Minutes. She expressed her apologies for not being able to attend the 2016 CDBG meetings due to an illness, but added that she is feeling much better now. Committee Member Rico moved, seconded by Committee Member Perez, to approve the March 4, 2015,Minutes as presented.(Committee Members Gillanders, Penn, and Mickelson-Weilmuenster abstained). Motion carried,3-0. Ms. Perez departed the meeting following the vote on the March 4, 2015 Minutes. CDBG Minutes March 2, 2016 Page 2 of 7 Alternate Committee Member Gillanders moved, seconded by Committee Chair Manning, to approve the February 17, 2016, Minutes as presented. Motion carried, 5-0. Ms.Laster briefly highlighted the replacement pages that were distributed to the Committee Members this evening from the Assistance League of Orange and the Fair Housing Foundation, noting a few corrections had been made. III.DISCUSSION OF FY 2016-17 ANNUAL ACTION PLAN PRIORITIES Ms. Laster stated that the City of Orange FY 2016-17 Action Plan Goals sheet summarizes the goals the City is proposing to meet with CDBG funds and also with the HOME Investment Partnerships Act Program (HOMES)funds.She stated that 1)the Community Development goal is to maintain and improve the quality of life in the community and to address the needs of Low and Moderate Income households;2)that the Homeless goal is to assist nonprofit agencies in providing necessary shelter and services to reduce the number of homeless and those at risk of becoming homeless; and 3)the goal to provide decent, safe, affordable, and accessible housing. She added that these are the three goals the City set forth in the City’s Five-Year Consolidated Plan and also in the City’s Annual Action Plan, adding that they want to make sure the projects funded with these monies meet one of these goals; and she advised that the projects/programs before this Committee this year do meet this criteria. Ms. Laster highlighted the Objectives of the CDBG Program list and the National Objectives; and advised that the City’s CDBG Program primarily benefits Low to Moderate Income residents.She added that Orange primarily uses this money for either area benefit ,where the majority of the residents are Low Income,or direct benefit,where the nonprofits or City departments obtain verification from the beneficiaries to make sure they are Low Income. She explained that in order to qualify for CDBG funds, at least 70 percent of the City’s funding must benefit Low to Moderate Income beneficiaries; and advised that with the exception of funding the administration costs, Orange spends 100 percent of its funding on Low to Moderate Income beneficiaries. She also covered examples of eligible and ineligible activities for the program. Ms. Laster highlighted the City’s CDBG Four-Year Funding Allocation History list that was distributed to the Committee, noting the Committee can see how the CDBG funding has been distributed for the past four years. CDBG Minutes March 2, 2016 Page 3 of 7 Ms. Laster highlighted the City’s FY 2015-16 CDBG program, noting it has not changed too much over the last few years because as long as these agencies have been performing in a satisfactory manner, the Committee has not found it necessary to discontinue their funding. She added that there have been agencies which have faltered and have not been able to receive funding assistance in subsequent years. She mentioned that the three agencies that have received funding from Orange for several years are Assistance League of Orange --Operation School Bell;the Friendly Center --Emergency Food Program;and the Mariposa Women and Family Center --Counseling Program. Ms. Laster highlighted the City’s FY 2015-2016 CDBG Subrecipient Status Report;and she explained that this lists how much each agency has been allocated for the current fiscal year and the amount each agency has expended as of 12-31-2015, noting they submit quarterly requests for their funding.She mentioned that as of today,Fair Housing has expended 50 percent of its funds;that HOMES has not expended any of its funding at this point, explaining that this agency typically conducts its construction projects in the third and fourth quarter of the year;that the Assistance League of Orange has spent 15 percent thus far;that Mariposa has spent 50 percent of its grant; and that the Friendly Center has spent 15 percent of their funds thus far. She highlighted each agency’s goals, which are listed on the Subrecipient Status Report. Ms. Laster advised that HUD wants Assistance League of Orange to only report the number of children who are clothed with the use of CDBG funding, not the total number of children being clothed by this agency; but she added that this distinction will be made but that they will also report to HUD the total number of children clothed by this agency so HUD sees how these funds are being leveraged with other funds to serve this Low Income population, noting that all the children they dress come from Low Income families. She advised that Assistance League of Orange, Friendly Center and Mariposa have all submitted their quarterly reports. IV.CONSIDERATION OF FY 2016-17 CDBG FUNDING REQUESTS Ms. Laster highlighted the two-page recommendation sheets for this fiscal year; advised that only 20 percent of the budget can fund Administration; only 15 percent can fund Public Services; and the balance will fund Public Facilities, Improvements, and Rehabilitation. She stated that the total grant is $1,181,714;and advised that Orange funds the Fair Housing Foundation out of the City’s Administration so they do not have to compete with nonprofit agencies under the Public Services category. She explained that there is an additional $11,585 of unbudgeted funds CDBG Minutes March 2, 2016 Page 4 of 7 that can only be used for Public Facilities projects;and added that after speaking with the engineering staff, they believe this extra money should be added to the Senior Center Ceiling Project to cover any cost overruns that may occur with that project. Ms. Laster stated that if the Committee funds both the After School Community Programs and the Police Bike Team at the requested level, the balance available to nonprofits would be $34,087; and she added that the total requested for the Public Services Nonprofit Agencies is $95,000, which creates a shortfall of $60,913 ; and she reiterated that the additional contingency amount of $11,585 cannot be used to offset this shortfall. V.FUNDING RECOMMENDATIONS FOR FISCAL YEAR 2016-2017 CDBG PROGRAM AND HOME PROGRAM MOTION:Committee Member Rico moved, seconded by Committee Member Penn, to allocate $211,820 to Administration,City Departments -- Community Development,Program Administration. Motion carried, 5-0. Ms. Laster advised that any funds remaining at the end of the year from this category would be available for Public Works projects. MOTION:Alternate Committee Member Gillanders moved, seconded by Committee Member Rico, to allocate $24,522 for Nonprofit Agencies,Fair Housing Foundation --Orange Fair Housing Program. Motion carried, 5-0. MOTION:Committee Member Mickelson-Weilmuenster moved, seconded by Alternate Committee Member Gillanders, to allocate $250,000 to the Public Facilities/Improvements/Rehabilitation, City Departments, Public Works --ADA Wheelchair Access Ramps at various locations. Motion carried, 5-0. Alternate Committee Member Gillanders asked for input regarding the ADA project timeline. Ms. Laster explained that these projects tend to run a year behind their project funding year. CDBG Minutes March 2, 2016 Page 5 of 7 Alternate Committee Member Gillanders suggested that pictures be provided for next year so the Committee can see the work that has been done with these funds. MOTION:Committee Member Rico moved, seconded by Committee Member Mickelson-Weilmuenster, to allocate $461,063 to the Public Facilities/Improvements/Rehabilitation, City Departments, Public Works --Fern Neighborhood Street Overlay and Sewer Replacement, from Palm Avenue to Walnut Avenue between Milford Road and the Santiago Creek. Motion carried, 5-0. MOTION:Committee Member Mickelson-Weilmuenster moved, seconded by Committee Member Rico, to allocate $46,085 to the Public Facilities/Improvements/Rehabilitation, City Departments, Public Works --Orange Senior Center, Ceiling and T-Bar Replacement. Motion carried, 4-0 (Committee Chair Manning abstained due to a possible conflict of interest). (The recommended total allocation of $46,085 for this project includes previously unbudgeted funds in the amount of $11,585.) MOTION:Committee Member Mickelson-Weilmuenster moved, seconded by Alternate Committee Member Gillanders, to allocate $10,967 to the Public Facilities/Improvements and Rehabilitation, Nonprofit Agencies,Helping Our Mentally Ill Experience Success (HOMES), Inc.--Riley House Bathroom Remodel. Motion carried, 5-0. MOTION:Committee Member Penn moved, seconded by Committee Chair Manning, to allocate $43,170 to the Public Services, City Departments,Community Services --After-School Community Programs at El Camino Real, Prospect/Grijalva, and Killefer Park. Motion carried, 5-0. CDBG Minutes March 2, 2016 Page 6 of 7 MOTION:Committee Chair Manning moved, seconded by Committee Member Mickelson-Weilmuenster, to allocate $100,000 for Public Services, City Departments --Police, Bike Team Program, Community-Oriented Policing. Motion carried,5-0. The Committee agreed not to fund the Council on Aging Orange County -- Ombudsman Program,and the Orange Elderly Services, Inc.--Orange Homebound Health Services Program, believing the execution of each program needs to be further developed;that there are management issues that needed to be further refined; and that each agency requested a large amount of money even after it was imparted to them at the initial application meeting that a limited amount of money would be available for the nonprofit agencies. Committee Member Rico added that the Orange Senior Center will be receiving CDBG funds for the ceiling rehabilitation project, stating this limited funding should be spread out to other agencies as much as possible; and noted that Orange Elderly Services is currently receiving funding for its Meals on Wheels program. MOTION:Alternate Committee Member Gillanders moved, seconded by Committee Member Rico, to not fund the Council on Aging Orange County --Ombudsman Program for $25,000 and the Orange Elderly Services, Inc.--Orange Homebound Health Services Program for $35,000. Motion carried, 5-0. MOTION:Committee Member Penn moved, seconded by Committee Member Rico, to allocate $15,000 to Assistance League of Orange --Operation School Bell. Motion carried,5-0. MOTION:Committee Member Penn moved, seconded by Alternate Committee Member Gillanders, to allocate $10,000 to the Friendly Center –Emergency Food & Basic Needs Assistance & Supplemental Food Programs. Motion carried,5-0. CDBG Minutes March 2, 2016 Page 7 of 7 MOTION:Committee Member Penn moved, seconded by Committee Chair Manning, to allocate $9,087 to Mariposa Women and Family Center –Community Counseling Program. Motion carried,5-0. Ms. Laster noted that the FY 2016-17 HOME Investment Partnerships Act (HOME)Program, Funding Distribution by Category, is considered each year by the Committee, noting this grant was also increased from last year; and explained that the Committee is being asked to recommend that staff apply for these funds from HUD and to allocate this funding under the three categories listed on this sheet. She advised that there is a 10 percent cap for Administration; a 15 percent cap for Community Housing and Development Organizations (CHDO); and that the remaining balance is allocated to Capital Developer Allocation, noting these funds are used for affordable housing. She mentioned that CHDO’s are nonprofit agencies that are qualified under federal regulations for the CHDO category,mentioning that the City’s local CHDO is Orange Housing Development Corporation. She added that HUD has tightened the regulations for the HOME Program and that it is very difficult to spend this money. MOTION:Alternate Committee Member Gillanders moved, seconded by Committee Member Penn, to authorize staff to apply for this funding and to allocate the FY 2016-17 funds for the HOME Program as follows: $243,376.50 to Capital Developer Allocation; $48,675.30 to Community Housing and Development Organizations (CHDO); and $32,450.20 to Administration, for a total of $324,502.00. Motion carried,5-0. VI.PUBLIC COMMENT None. VII.ADJOURNMENT At 7:55 P.M. the meeting was formally adjourned.