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November 28, 2023
ITEM TITLE
HUD Entitlement Grants and Appropriation: Adopt a Second Amendment to the U.S. Department of Housing and Urban Development Fiscal Year 2023/24 Annual Action Plan, Amend Subrecipient Agreement with SBCS Corporation, and Appropriate Funds
Report Number: 23-0307
Location: 333 Oxford Street
Department: Housing and Homeless Services
Environmental Notice : The Project qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15301 Class 1 (Existing Facilities), Section 15302 Class 2 (Replacement or Reconstru ction), and Section 15303 Class 3 (New Construction or Conversion of Small Structures). Under the National Environmental Policy Act (NEPA), the activity is exempt pursuant to Title 24, Part 58.35 (a)(3)(iii) of the Code of Federal Regulations.
Recommended Action
Adopt a resolution approving the Second Amendment to the U.S. Department of Housing and Urban Development Annual Action Plan to (1) allocate Community Development Block Grant (CDBG) funds for the renovation of facilities at Lauderbach Park, (2) authorize the City Manager or her designee to negotiate and execute documents consistent with the proposed activities, (3) amend the existing subrecipient agreement with SBCS Corporation, and (4) appropriate funds for that purpose (4/5 Vote Required).
SUMMARY
The City of Chula Vista’s Annual Action Plan is a document required annually by the U.S. Department of Housing and Urban Development to describe the funding strategy for use of various entitlement funds. Any significant funding changes to the approved Action Plan constitute a Substantial Amendment and must be approved by City Council.
This Resolution would amend the 2023 -24 Annual Action Plan to allocate Community Development Block Grant funds for a second phase of improvements at Lauderbach Park, located at 333 Oxford Street.
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ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the proposed Action Plan Amendment qualifies for a Categorical Exemption pursuant to State CEQA Guidelines Section 15301 Class 1 (Existing Facilities), Section 15302 Class 2 (Replacement or Reconstruction), and Section 15303 Class 3 (New Construction or Conversion of Small Structures) because the proposed actions would not result in a significant effect on the environment, create a cumulative impact, damage a scenic highway, or cause a substantial adverse change in the significance of a historical resource. Thus, no further environmental review is required. Under NEPA, the activity is exempt pursuant to Title 24, Part 58.35 (a)(3)(iii) of the Code of Federal Regulations.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable
DISCUSSION
As a U.S. Department of Housing and Urban Development (“HUD”) entitlement community, the City receives annual funds through three block grant programs: HOME Investment Partnerships Program (“HOME”), Community Development Block Grant (“CDBG”), and Emergency Solutions Grant (“ESG”). In connection with the programs, the City must adopt and follow a five -year Consolidated Plan and an Annual Action Plan for the activities and disbursement of funds. The 2023-24 Action Plan was adopted by Council on May 9, 2023, pursuant to City Council Resolution No. 2023-045, and submitted to HUD shortly thereafter. It was approved by HUD on September 14, 2023. A first amendment to the 2023-24 Annual Action Plan was approved by Council on October 17, 2023 by Resolution No. 2023-166.
The City owns Lauderbach Park, located at 333 Oxford Street, which contains a community center with a kitchen. Lauderbach Park recently underwent outdoor renovations with funding from local sales taxes (Measure P) and a state grant. Separately, the community center within Lauderbach Park is being renovated with $440,000 in CDBG funds through subrecipient SBCS Corporation (“SBCS”). The improvements include upgrades to the plumbing and electrical systems as well as replacement of the fire system, flooring, and hood.
The kitchen is being upgraded to commercial standards to support nutrition education and life skills programming for low-income community members.
The initial $440,000 for the kitchen improvements was approved in the 2022 -2023 Annual Action Pla n on July 19, 2022 via Resolution No. 2022-161 for $392,000 and a subsequent amendment on February 14, 2023 via Resolution No. 2023-012 for $48,000. Since those approvals, due to increases in construction costs and additional needed improvements to the fac ility, the total construction costs related to the kitchen and surrounding improvements has increased to a n up to amount of $6 30,000, requiring an amendment to the SBCS Subrecipient Contract No. 2022 -105, per Attachment 1 , to increase the not to exceed amo unt by $190,000 and extend the completion date to June 30, 2024.
Funding Source Amount
CDBG - Resolution No. 2022-161 $392,000
CDBG - Resolution No. 2023-012 $ 48,000
CDBG – current request $190,000
Total $630,000
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Tonight’s action would serve as a Second Amendment to the 2023-24 Action Plan to appropriate $190,000 in funding for a second phase of Lauderback Park Improvements.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action at 333 Oxford Street.
Consequently, this item does not present a disqualifying real property -related financial conflict of i nterest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.).
CURRENT-YEAR FISCAL IMPACT
This action will allocate $190,000 in available awarded CDBG funds to the renovation and infrastructure improvements for the Lauderbach Park Community Center kitchen.
City Activity/Program Agency Funding
Lauderbach Park Community Center
Training Kitchen Improvements SBCS Corporation $190,000
The project budget has been updated to reflect the changes below:
Budget Line Item Amount ($)
Design 13,325.26
Demolition 8,922.00
Structural Concrete 10,859.00
Wood Framing 10,100.00
Finish Carpentry 17,708.00
Thermal Insulation 4,459.00
Built Up Bituminous Roofing 5,200.00
Plaster and Gypsum Board Assemblies 14,200.00
Fluid-Applied Flooring 14,895.00
Painting 4,675.00
Food Cooking Equipment 96,793.00
Residential Plumbing Fixtures 112,671.00
HVAC 46,900.00
Common Work Results for Electrical 45,150.00
Planting Irrigation 2,000.00
Subcontractor Costs 389,332.00
General Conditions 161,666.00
General Liability Insurance 8,343.00
Contractor’s Fee 45,163.00
Bond Cost 0
9/23 Change Order – Reduction in Appliances (41,117.35) 9/23 Change Order – Miscellaneous Increases 4882.458,999.80 Total $627,911.71$622,711.71
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ONGOING FISCAL IMPACT
There is no ongoing fiscal impact to the City’s General Fund as a result of this action, as all costs are associated with the administration of the CDBG program and are covered by CDBG funding.
ATTACHMENTS
1. First Amendment to SBCS Corporation Subrecipient Agreement No. 2022-105
2. Second Amendment to the 2023/24 Annual Action Plan
Staff Contact: Stacey Kurz, Director of Housing and Homeless Services Mark Barnard, Management Analyst