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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE JOINT MEETING: GLENDALE CITY COUNCIL AND
GLENDALE HOUSING AUTHORITY
AGENDA ITEM
Report: Reprogramming of Community Development Block Grant (CDBG) City Capital Improvement Project (CIP) funds from program years 2018 and 2021
1. City Council Motion to reprogram CDBG City CIP funding in the amount of $370,000 from the 2018 Pacific Natural Grass Project to the 2021 Pacific Park Splash Pad Project.
2. City Council Motion to approve a substantial amendment to CDBG, ESG, and HOME Annual Action Plans for program years 2018-2019 and 2021-2022; authorize submission of the substantial amendments to the Annual Action Plans to the U.S. Department of Housing and Urban Development (HUD), and authorize the City Manager, or a designee, to redirect excess, cancelled, or unused program funds under $50,000 from one project to another with CDBG Advisory Committee approval.
3. Housing Authority Motion to approve a substantial amendment to CDBG, ESG, and HOME Annual Action Plans for program years 2018-2019 and 2021-2022; authorize submission of the substantial amendments to the Annual Action Plans to the U.S. Department of Housing and Urban Development (HUD), and authorize the City Manager, or a designee, to redirect excess, cancelled, or unused program funds under $50,000 from one project to another with CDBG Advisory Committee approval.
4.Resolution of Appropriation to reprogram CDBG City CIP funds in the amount of $370,000 from the 2018 Pacific Natural Grass Project to the 2021 Pacific Park Splash Pad Project.
COUNCIL ACTION
Item Type: Action Item
Approved for November 14, 2023 calendar
EXECUTIVE SUMMARY
Staff is recommending reprogramming $370,000 from current CDBG City CIP 2018 Pacific Natural Grass Project to 2021 Pacific Splash Pad Project. This is in response to HUD requesting the City to prepare and submit a CDBG Workout Plan to demonstrate 2{{section.number}}1
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timeliness in spending down funding by the April 30, 2024 deadline. HUD’s determination of timeliness is based on whether a City CDBG entitlement community has more than 1.5 times the current entitlement remaining in the Line of Credit (LOC) balance.
HUD has a longstanding policy of reducing future year grant allocations from cities that continue to be untimely, which may impact capital projects, public social services, and program administration. As of October 1, 2023, the City of Glendale is considered untimely with 3.55 times the amount in the LOC. The CDBG Workout Plan sets forth an expenditure plan to demonstrate how the City will expend its entitlement funds in the next year to ensure it will meet the timeliness requirement. As part of that plan, staff is proposing to shift funds from a City CIP project which is just starting design to a project that is starting construction to ensure the funds are expended faster.
The 2021 Pacific Park Splash Pad will start construction this month and able to draw down funds before April 30, 2024, while the 2018 Pacific Natural Grass Project is currently in design phase and will not be ready for construction until FY 2024-25. Therefore, moving $370,000 to the faster moving Pacific Park Splash Pad Project will reduce the LOC balance.
The CDBG Advisory Committee approved the recommendation to shift the $370,000 from the 2018 Pacific Natural Grass Project to the 2021 Pacific Splash Pad Project at their October 23, 2023, meeting, and also recommended backfilling the $370,000 for Pacific Natural Grass by pre-designating $370,000 for the project in the proposed FY 2024-25 Funding Allocation Plan.
RECOMMENDATION
That City Council approve the following:
1. A Motion to reprogram CDBG City CIP funding in the amount of $370,000 from 2018 Pacific Natural Grass Project and reprogram to 2021 Pacific Park Splash Pad Project.
2. A Motion to approve a substantial amendment to CDBG, ESG, and HOME Annual Action Plans for program years 2018-19 and 2021-22; authorize submission of the substantial amendments to the Annual Action Plans to HUD, and authorize the City Manager, or a designee, to redirect excess, cancelled, or unused program funds under $50,000 from one project to another with CDBG Advisory Committee approval.
3. A Resolution of Appropriation to reprogram CDBG City CIP funds in the amount of $370,000 from 2018 Pacific Natural Grass Project to 2021 Pacific Park Splash Pad Project.
That Housing Authority approve the following:
1. A Motion to approve a substantial amendment to CDBG, ESG, and HOME Annual Action Plans for program years 2018-19 and 2021-22; authorize submission of the substantial amendments to the Annual Action Plans to HUD, and authorize the City Manager to redirect excess, cancelled, or unused program funds under $50,000 3{{section.number}}1
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from one project to another with CDBG Advisory Committee approval.
ANALYSIS
On September 13, 2023, the City received a letter from HUD requesting a CDBG Workout Plan to address the City’s untimeliness in spending down funds in the CDBG Line of Credit (LOC) balance.
For two consecutive years, the City has not been able to meet the timeliness requirement set forth by HUD. This is measured by the rate of expenditure of funds from the City’s LOC. The City must have a balance no greater than 1.5 times its annual grant remaining in the LOC, 60 days prior to the end of the program year. The next deadline where timeliness will be measured is April 30, 2024.
Untimely expenditure delays have been partially outside the City’s control. Pandemic delays, closure of facilities, staffing changes/retirements, LA County permit delays, design/redesign efforts, increases in bid estimates, bid rejections and other factors have caused a backlog of projects on both the City and community agency side.
HUD requires that the City submit a CDBG Workout Plan which describes a plan of action and a timeline to demonstrate how the City plans to meet the timeliness requirement by next year’s deadline. Aside from the current CIP projects which are now in construction and expected to expend funds, staff is working diligently to also drawdown public social services and program administration funds.
As part of this plan, staff evaluated funds that are currently appropriated to City CIP projects that may not expend as quickly and hence is recommending shifting funds to a project that is starting construction to help expedite the expenditure. Thus, as part of the CDBG Workout Plan, staff proposes to shift $370,000 from 2018 Pacific Natural Grass Project to the 2021 Pacific Park Splash Pad Project to help reduce the City’s LOC balance at a faster rate.
The 2021 Pacific Park Splash Pad Project is starting construction in November 2023 and able to draw down funds before the HUD deadline of April 30, 2024. The 2018 Pacific Natural Grass Project is still in design phase and won’t be able to expend the funds by the deadline.
The CDBG Advisory Committee approved the recommendation to shift the funds at their October 23, 2023, meeting as well as to backfill the $370,000 for the Pacific Natural Grass Project by proposing to allocate $370,000 to the project in the proposed FY 2024-2025 CDBG Funding Allocation Plan
2018 Pacific Natural Grass Project
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The Pacific Natural Grass Project is currently in its design phase with an estimated project cost of $1.5 million with a scope of work which includes excavating the existing grass and 8 inches of soil, installing a new drainage system, adding new catch basins for water percolation, importing new balanced soil, installing a new irrigation system, complete laser grading, sod installation, installation of new bases, and completion of ballfield layout.
The Pacific Natural Grass Project is currently funded with $1,387,042 in CDBG dollars in various program years:
2021 Pacific Park Splash Pad Project:
The Pacific Park Splash Pad is part of the greater Pacific Park Playground and Pool Shade Structure Project which is going into construction in November 2023.
Due to its prime location and numerous amenities, the park is very popular and experiences heavy and constant use by the community, especially the swimming pool, playground, and water play feature areas during the summer months.
The existing Pacific Park splashpad feature has been a welcome and fun reprieve from the heat for many children for nearly 20-years and needs replacement. Due to its extensive use and age, the feature has significant calcium buildup, corrosion, and requires valve replacements annually to repair leaks. The project will replace the existing splashpad water play feature and expand it towards the playground area southwest of the current location. The new design will not only increase the capacity, functionality and sustainability of the water play feature, but will also include a recycling system required by regulations. The existing restrooms will also be renovated to comply with current Americans with Disabilities Act (ADA) standards and to meet the demand at the park.
The Pacific Park Playground & Pool Shade Structure Project has a total project cost of $2,665,692 funded by Parks Mitigation Fee Fund balance, Capital Improvement Fund, Measure S, and $1,074,199 in CDBG dollars.
Project funding for Pacific Park Playground & Pool Shade Structure Project is outlined below:
Program Year Funding
Amount
Project Title
2018-2019 ($370,000) Pacific Natural Grass Project (Pending Approval) 2019-2020 $350,000 Pacific Natural Grass Project
2023-2024 $667,042 Pacific Natural Grass Project
2024-2025 $370,000 Pacific Natural Grass Project (Pending Approval) Amount Program Year/Project Title Funding
Source
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Since an additional $370,000 is being appropriated to the Pacific Splash Pad Project, staff is recommending reducing $370,000 in Development Impact Fee Funds and returning the funds back to the fund balance to be programmed towards another south Glendale project in the future.
Community Services & Parks and Public Works are working together to prioritize expending all CDBG funds first as part of the Pacific Park Splash Pad Project, and Pacific Park Playground and Pool Shade Structure project.
Staff is requesting City Council/Housing Authority to approve the proposed substantial amendment for CDBG, ESG, and HOME Annual Action Plans for program years 2018- 19 and 2021-2022, which include reprogramming funds as proposed above and recommended by the CDBG Advisory Committee, for submission to HUD for final approval. These efforts are being made to ensure that the City meets its timeliness requirement so HUD does not reduce future CDBG entitlement amounts in future years.
STAKEHOLDERS/OUTREACH
A Public Notice will be published in the newspaper informing the public of the Substantial Amendment to the CDBG, ESG, and HOME Action Plans for program years 2018-19 and $45,067 2017 Pacific Park Playground & Pool Shade Structure CDBG $370,000 2017 Pacific Park Splash Pad CDBG
$13,320 2018 Pacific Park Playground & Pool Shade Structure CDBG $60,638 2019 Pacific Park Splash Pad CDBG
$435,299 2021 Pacific Park Splash Pad CDBG
$149,875 2022 Pacific Park Splash Pad CDBG
$370,000 2021 Pacific Park Splash Pad CDBG (pending
approval)
($370,000) Pacific Park Playground & Pool Shade Structure Parks Mitigation Fee Fund
$1,101,322 Pacific Park Playground & Pool Shade Structure Parks Mitigation Fee Fund
$202 Pacific Park Playground & Pool Shade Structure Capital Improvement
Fund
$189,967 Pacific Park Playground & Pool Shade Structure Capital Improvement
Fund
$300,000 Pacific Park Playground & Pool Shade Structure Measure S Fund 6{{section.number}}1
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2021-22 for a 30-day comment period before submitting the final approved Substantial Amendment Action Plans to HUD.
FISCAL IMPACT
The proposed Substantial Amendments to the CDBG, ESG, HOME Annual Action Plans for program years 2018-19 and 2021-22 were not included as a part of the FY 2023-24 budget. Therefore, staff is proposing to reprogram CDBG City CIP funds by shifting of appropriation between projects.
The appropriation request is outlined below:
Requesting Appropriation
Amount From (Account
String)
To (Account String) Funding Source
$370,000 52100-2010-CSP-
0020-P0000-
CSP00950AG
52100-2010-CSP-
0020-P0000-
CSP00709AG
CDBG Fund
To offset the request of $370,000 in CDBG Funds for the Pacific Park Playground & Pool Shade Structure project, staff will reduce the existing project appropriation in the Parks Mitigation Fee Fund by the same amount of $370,000.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
This project is Categorically Exempt under the provisions of the California Environmental Quality Act (CEQA) as a Class 2 exemption pursuant state CEQA Guidelines, Section 15302.
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES TO STAFF RECOMMENDATION
City Council:
Alternative 1: Do not approve the motion to reprogram $370,000 from 2018 Pacific Natural Grass Project to 2021 Pacific Park Splash Pad Project or the substantial amendment for program years 2018-2019 and 2021- 2022, which will not allow the City to meet its timeliness requirement by April 30, 2024 and may impact the City’s ability to get future HUD funding.
Alternative 2: Consider any other alternative not proposed by staff. 7{{section.number}}1
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Housing Authority:
Alternative 1: Do not approve the motion to reprogram $370,000 from 2018 Pacific Natural Grass Project to 2021 Pacific Park Splash Pad Project or the substantial amendment for program years 2018-2019 and 2021- 2022, which will not allow the City to meet its timeliness requirement by April 30, 2024 and may impact the City’s ability to get future HUD funding.
Alternative 2: Consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Onnig Bulanikian, Director of Community Services & Parks Prepared by:
Maggie Kavarian, Community Services Manager
Tereza Aleksanian, Deputy Director of Community Services & Parks Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
Exhibit 1 – CDBG Workout Plan