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Staff Report
City Council
Item No. 5.A
Meeting Date: December 13, 2023
From: John Corella, Director of Engineering/Public Works Title: Substantial Amendment to the City's CDBG FYs 2019, 2020, 2021, 2022 Annual Action Plans
City Council
RECOMMENDATION:
To approve a Substantial Amendment to the City’s Community Development Block Grant (CDBG) Fiscal Year (FY) 2019, FY 2020, FY 2021, and FY 2022 Annual Action Plans to reprogram unspent CDBG funds to the FY 2023 -2024 CDBG Annual Action Plan for the Public Improvement Project - Via De Anza Sidewalk Project Phase III.
BACKGROUND:
The Community Development Block Grant (CDBG) program, administered by the U.S.
Department of Housing and Urban Development (HUD), provides annual grants on a formula basis to states, cities, and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons.
As an entitlement City, Cathedral City receives annual CDBG entitlement funds to carry out a wide range of community development activities directed toward revitalizing neighborhoods, economic development, and improving community facilities and services, in HUD Qualified Census Tracts within the City limits.
Annual Action Plan Amendments
As part of the CDBG program, HUD requires the preparation of a 5 -Year Consolidated Plan (Con Plan) to address the priority needs of the community, set goals for attaining identified objectives. The City Council adopted the FY 2022 -2027 Consolidated Plan on June 6, 2022.
The implementation of the Con Plan is reflected in the Annual Action Plan (AAP) that is prepared every fiscal year. The AAP identifies specific projects to be funded that implement the strategies identified in the Con Plan. The City Council approved the FY 2023-2024 Annual Action Plan on May 24, 2023, which allocated funds for CDBG Administration, Via De Anza Project Phase III, and the Sidewalk Repair Assistance Program.
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When the City’s CDBG funding situation changes, amendments to the AAP may be required. There are two types of amendments:
1. Administrative Amendments: Changes to a previously adopted Con Plan and AAP that does not meet the thresholds to qualify as a Substantial Amendment.
These amendments are typically processed at a staff level with approval from the City Council.
2. Substantial Amendments:
1. A change in the use of CDBG funds from one eligible activity to another; or
2. The implementation of an activity not previously identified in sufficient detail to provide affected citizens an opportunity to submit comments; or
3. A change in an activity’s program budget which exceeds ten percent (10%) of the City’s latest annual entitlement grant; and
4. Council approval required for all substantial amendments.
DISCUSSION:
A substantial amendment has been prepared, allocating CDBG funds from prior year s activities that have been cancelled or completed with a remaining fund balance to a public facilities improvement project that meets the CDBG eligibility requirements.
In consultation with the consultant providing support to the City with CDBG administrative services (The Ramsay Group), City Staff identified Via De Anza Sidewalk Project Phase III as the public facilities improvement project to reprogram the CDBG funds from prior years.
A summary of the activities from the FY 2019, FY 2020, FY 2021, and FY 2022 that were cancelled or completed, their respective fund balances, and proposed allocation are provided below:
Year 2019-2020
1. The amount of $9,468.91 will be reprogrammed from the South Panorama Neighborhood Street Improvement Project – IDIS Activity #77, a completed project, to an existing project, the Via De Anza Sidewalk Project Phase III.
Year 2020-2021
1. The amount of $5,000.00 will be reprogrammed from Public Services: CVAG Homeless Bus Pass Program Project – IDIS Activity #81, a cancelled project, to an existing project, the Via De Anza Sidewalk Project Phase III.
2. The amount of $5,000.00 will be reprogrammed from the Public Services:
Stonewall Ministries Homeless Program Project – IDIS Activity #84, a cancelled project, to an existing project, the Via De Anza Sidewalk Project Phase III.
Year 2021-2022
1. The unallocated balance of $28,500.00 from Year 2021-2022 will be allocated to an existing project, Via De Anza Sidewalk Project Phase III.
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Year 2022-23
1. The unexpected fund balance amount of $15,000.00 from the Emergency Sidewalk Repair Program – IDIS Activity # 111, will be reprogrammed to an existing project, Via De Anza Sidewalk Project Phase III.
2. The amount of $4,152.09 will be reprogrammed from the Program Administration project – IDIS Activity # 113, a completed project, to an existing project, Via De Anza Sidewalk Project Phase III.
The Substantial Amendment will allow for adjustments to the Annual Action Plans so that the funds can be properly accounted for and expended on Via De Anza Sidewalk Project Phase III.
The approval of the Substantial Amendment to the FY 2019, FY 2020, FY 2021, and FY 2022 Annual Action Plans will allow the City to complete public street reconstruction and associated repairs to sidewalks, curbs, and gutters located in an income -eligible neighborhood of the City. The undertaking of this project meets one of HUD’s National Objectives: benefiting low-and-moderate income people and the respective area.
Via De Anza Sidewalk Project Phase III (Project)
The Project is comprised of residential roads located within a low -and-moderate income area identified within the limits of Census Tract 449.15 (Block Groups 1 & 2) which will serve approximately 6,740 people of which 75.52% are low-to-moderate income.
Phase III of the Project includes construction of curb, gutter, and sidewalk on the east side of Via De Anza from Ortega Road to Olancha Road, and north and south side of Arrowhead Road from Via De Anza to east end of cul-de-sac.
PUBLIC PARTICIPATION:
Under the City’s adopted Community Participation Plan, any programmatic or financial changes resulting in over ten percent (10%) of the City annual apportionment will need to be documented with a Substantial Amendment and will require a public hearing.
On November 12, 2023, a public notice was published in the local newspaper, The Desert Sun, advising of the proposed Substantial Amendment. This public notice was published again on December 1, 2023.
The Substantial Amendment was made available for thirty (30) days from November 12, 2023, to December 13, 2023, on the City’s website, City Hall, Cathedral City Senior Center, Cathedral City Library, and the Boy’s and Girl’s Club of Cathedral City.
A public hearing is scheduled for Wednesday, December 13 th during the City Council Meeting to allow any members of the community an opportunity to comment on the information in the proposed Substantial Amendment.
FISCAL IMPACT:
The approval of this Substantial Amendment will ensure the City’s records remain
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accurate and account for these programmatic changes. The reallocation of funds will also allow the City to maximize its reimbursement for costs related to the Via De Anza Sidewalk Project Phase III.
The table below provides a summary of the prior year funding to be reprogrammed:
Program
Year
Project Project
Funding
Project Project
Funding (from) (to)
FY
2019-
2020
South Panorama
Neighborhood Street
Improvements
$9,468.91
Via De Anza
Sidewalk Project
Phase III
$9,468.91
FY
2020-
2021
CVAG Homeless Bus
Pass Program
Stonewall Ministries
Homeless Program
$5,000.00 Via De Anza
Sidewalk Project
Phase III
$10,000.00
$5,000.00
FY
2021-
2022
Unallocated Balance $28,500.00
Via De Anza
Sidewalk Project
Phase III
$28,500.00
FY
2022-
2023
Emergency Sidewalk
Repairs $15,000.00
Via De Anza
Sidewalk Project
Phase III
$15,000.00
FY
2022-
2023
Program Administration $4,152.09
Via De Anza
Sidewalk Project
Phase III
$4,152.09
Total $67,121.00
FIVE-YEAR STRATEGIC PLAN:
GOAL B: COMMUNITY INVESTMENT
Objective: Cathedral City roads, gateways, public spaces, and other city infrastructure are well planned, designed, constructed, and maintained.
ATTACHMENTS:
CDBG FY 2023-2024 Substantial Amendment