SR - AGR-3218.Q - 2016-17 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING APPROVAL AGREEMENTAGENDA ITEM
April 12, 2016
TO: Honorable Mayor and
Members of the City Council
THRU: Rick Otto
City Manager
FROM: William R. Crouch
Community Development Director
ReviewedNerified By:
City Manager
Finance Direc or 7
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 2016 -17 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 2016 -17 CDBG funding process in
conjunction with the CDBG Program Committee. The City's FY 2016 -17 CDBG entitlement
amount is $1,181,714. 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 2016 -17 CDBG Program.
2. Authorize staff to request and receive the City's FY 2016 -17 CDBG entitlement amount of
$1,181,714 from HUD.
3. Authorize the City Manager or his designee to execute FY 2016 -17 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.
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.
ITEM �1 �,�p�� 1 4/12/16
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FY 2016 -17 CDBG Program
Page 2
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 eligible 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 2016 -17 CDBG funding process in November 2015 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 2015, 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 2016, the CDBG Program Committee met to review all funding
requests, hear presentations from applicants, and discuss the objectives of the CDBG Program.
On March 2, 2016, the Committee held a public hearing to discuss proposed programs and
projects, hear 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 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 funding recommendations for the $1,181,714 CDBG allocation. Staff
concurs with the recommendations, a summary of which follows.
ITEM 2 4/12/16
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FY 2016 -17 CDBG Program
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Administration
The total allocation in the Administration category is $236,342, which is subject to a 20 percent budget
cap. The Committee is recommending that $211,820 be allocated for CDBG Program Administration,
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 $768,115. The Committee is recommending that all
requests in this category be funded in full as follows:
City Departments
Allocation
Nonprofit Agencies
Allocation
Public Works Dept.
Assistance League
ADA ffliedchairAccessRtmp
$ 250,000
O eration School Bell
$ 15,000
Public Works Dept.
Fern Neighborhood Street
Community Services Dept.
Overlay & Sewer Replacement
461,063
Public
After-School Programs
Public
Public Works Dept.
10,000
Helping Our Mentally Ill Experience
Police Dept.
Facilities
Senior Center Ceiling & T -Bar
Success, Inc.
Bike Team
Total
Replacement
46,085
Riley House Bathroom Remodeling
$ 10,967
Allocation
City Department Total
$ 757,148
Nonprofit Agency Total
$ 10,967
$ 768,115
Public Services
The total allocation in the Public Services category is $177,257, which is subject to a 15 percent
budget cap. A total of $238,170 was requested under this category: $143,170 by two City
departments and $95,000 by five nonprofit agencies. The amount requested exceeds the amount
available by $60,913. Given the funding constraints and having considered all of the proposed
programs, the Committee is recommending that Council on Aging Orange County's Ombudsman
Program and Orange Elderly Services, Inc.'s Orange Homebound Health Services Program not
be funded and that the remaining five Public Services programs be funded as follows:
City Departments
Allocation
Nonprofit Agencies
Allocation
Assistance League
O eration School Bell
$ 15,000
Friendly Center
Community Services Dept.
Emergency Food Basic Needs Assistance
Public
After-School Programs
$ 43,170
& Supplemental Food Programs
10,000
Services
Police Dept.
Mariposa Women & Family Center
Total
Bike Team
100,000
Community Counseling Program
9,087
Allocation
City Department Total
1 $ 143,170
1 Nonprofit Agency Total
$ 34,087 1
$ 177,257
If approved, a combined total of $45,054 would be allocated to four nonprofit agencies under the two
categories of Public Facilities /Improvements/Rehabilitation and Public Services. Council authorization
is requested to enable the City to administer its FY 2016 -17 CDBG Program. This would include
considering the Committee's funding recommendations.
8. ATTACHMENTS
• Attachment 1 (FY 2016 -17 CDBG Program Committee Funding Recommendations)
• Attachment 2 (FY 2016 -17 CDBG Program Nonprofit Agency Funding Process)
• Attachment 3 (Four -Year CDBG Funding Allocation History)
ITEM 3 4/12/16
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