City of Gonzales
PUBLIC WORKS / CITY ENGINEER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: November 20, 2023
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: CDBG Agreement for Community Center
RECOMMENDATION
It is recommended that the City Council authorize the execution of a Subrecipient Agreement with the County of Monterey to receive $704,857 in Community Development Block Funding for Phase 1 of the Community Center Complex Project.
BACKGROUND
As the Council is aware, the Community Center Complex Project will be constructed in phases based on available funding. Phase 1 includes “Building A” which is comprised of the Teen Innovation Center, County Library, meeting rooms, restrooms, large courtyard including an amphitheater and site improvements (new driveway, wet/dry utilities, parking lot and landscaping). Phase 2 will construct “Building B” which will be comprised of the Community Center which has a Community Hall, Fitness Center, commercial kitchen, meeting rooms and restrooms.
Funding for Phase 1 includes Community Development Block (CDBG) monies from the County of Monterey. To receive the CDBG monies, the City must execute a Subrecipient Agreement with the County of Monterey.
The County of Monterey was designated an entitlement community eligible to receive a formula allocation of CDBG funds in 2013. The Cities of Del Rey Oaks, Gonzales, Greenfield, and Sand City partnered with the County to collectively, be designated an “Urban County”.
AGENDA
ITEM
15 The County is expected to receive $1,191,644 in CDBG Entitlement funding in FY 2023-2024. In addition, the County is expected to receive Program Income totaling $10,000 from loan repayments and $155,000 in recaptured prior year funds for total available funds of $1,356,644. Staff from the Cities and the County made recommendations to the CDBG Standing Committee about funding for public services and public facilities. On March 16, 2023, the CDBG Standing Committee reviewed the applications and made recommendations for funding that are included in the County’s Draft Annual CDBG Action Plan.
The Committee recommended funding the City of Gonzales’ Community Center Project and City of Greenfield’s improvements to Walnut Avenue.
REVIEW AND ANALYSIS
City staff had previously estimated available CDBG funding of $810,000 over two fiscal years for the Community Center Project. Earlier this year, County staff advised City staff that a prior project (the 2019 Reroofing of the Council Chambers) was deemed to be ineligible for CDBG funding and the City needed to return $122,912 to the County. County staff intends to return the $122,912 to the City for use on the Community Center Project through the following steps:
1. City and County execute Subrecipient Agreement in the amount of $704,857.
2. City returns $122,911 to the County of Monterey for the ineligible project.
3. County of Monterey amends the 2023-2024 CDBG Action Plan to have $122,912 allocated to the Gonzales Community Center Project.
4. County Budget Committee increases revenue and appropriations.
5. Board of Supervisors approve allocating the additional CDBG funds to City for the Community Center Project,
6. The County of Monterey amends the agreement with the City to increase the Subrecipient Agreement amount from $704,857 to $827,769.
Therefore, the City will receive $827,769 for Phase 1 of the Community Center Project. In conclusion, staff recommends that the City Council authorize the execution of the attached Subrecipient Agreement with the County of Monterey to receive $704,857 in CDBG funding for Phase 1 of the Community Center Complex Project.
How Recommendation Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain: Constructing a Community Center will provide residents with a multi-use facility for a wide variety of public and private functions, recreation programs and other activities, which will enhance the quality of life of Gonzales residents.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ____ No____ N/A
Explain: Please see explanation above for the Mission.
City services will be delivered in a cost-effective, respectful and friendly manner to ensure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. X Yes ____No ____ N/A Explain: See Vision explanation above.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes X No N/A
• Housing Yes X No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
ALTERNATIVES
The Council could decide to not execute the Subrecipient Agreement, but it’s not recommended as CDBG monies are part of the overall funding for Phase 1 of the Community Center Complex Project.
BUDGET IMPACT
The City expects to receive $827,769 in CDBG funding from the County of Monterey for Phase 1 of the Community Center Complex Project.
CONCLUSION
It is recommended that the City Council authorize the execution of a Subrecipient Agreement with the County of Monterey to receive the initial $704,857, and then will come back and amend the contract to receive the rest of the funds totaling $122,911 in Community Development Block Funding for Phase 1 of the Community Center Complex Project.
Attachments:
1. Subrecipient Agreement