Agenda Item No. 8
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: May 8, 2023
FROM: Matthew Bronson, City Manager
PREPARED BY: Megan Martin, Community Development Director Janet Reese, Associate Planner
SUBJECT: Public Hearing and Resolution Regarding the Closeout of State Community Development Block Grant (CDBG) Contracts
RECOMMENDATION
Receive a report summarizing the accomplishments performed under the State Community Development Block Grant (CDBG) Agreements 17-CDBG-12027, 20-CDBG-12061, 20-CDBGCV1-00020, 20-CDBG-CV1-00022; conduct a public hearing to solicit citizen input regarding expenditures and accomplishments of the funding received under these contracts; adopt a resolution to formally accept the Senior Center Feasibility Study; and direct staff to proceed with submitting required documents for closeout to the State.
BACKGROUND
The U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) program authorizes the use of funds to assist low- and moderate-income families or aid in the prevention or elimination of slums or blight. There are two types of CDBG programs:
“entitlement” and “non-entitlement”. Metropolitan cities and urban counties are entitled to receive annual grants under the “entitlement” program direct from HUD. Metropolitan cities are principal cities or Metropolitan Areas (MAs) or other cities within MAs that have populations of at least 50,000. Urban Counties are within MAs that have population of 200,000 or more excluding the population of metropolitan cities within their boundaries.
In 2011, the City opted to leave “entitlement” program administered by the County of San Luis Obispo’s Department of Planning and Building and participate in the “non-entitlement” program.
The “non-entitlement” program is administered by the State Department of Housing and Community Development (HCD). The City has applied for funding under a competitive application process. The City has previously received a total of $5.8 million of CDBG funding in 2013, 2017, and 2020 for water line improvements and $1.2 million in funding for Eviction Prevention and Security Deposit programs through successful applications for the non-entitlement program. An additional $417,000 in CDBG-CV (CDBG-Coronavirus) funds was also received in 2021 for Warming Shelter Operations, a Childcare Training Program, and a Homeless Services Program.
In order to officially close out a contract, the City is required to first conduct a public hearing to solicit input regarding expenditures and accomplishments of the funding received under the contract and then submit required documents to HCD. Four of the City’s contracts with HCD are ready to close out as specified on the following page:
Staff Report: CDBG Contract Closeouts Page 2
May 8, 2023
17-CDBG-12027
In September 2018, the City received 2017 CDBG funding (17-CDBG-12027) in the amount of $2,558,021. The funded activities and summary of their accomplishments are as follows:
• Waterline Improvements - $994,425 of the $1,821,415 awarded was expended to replace approximately 2,100 linear feet of water lines, valves, fire hydrants and laterals in low/moderate income areas of the City to benefit approximately 2,160 people (according to census data). This work was completed by Brough Construction and a Notice of Completion was accepted by the Council on June 5, 2017
(https://www.groverbeach.org/DocumentCenter/View/6688/item5). $826,990 in awarded funding was not needed as the project costs were below budget and this funding will be disencumbered and returned to HCD.
• Subsistence Payment Program - $261,895 of the $328,795 awarded was expended for rental assistance to low-income families who suffered a financial hardship and were not able to pay rent for no more than 90 days. 5Cities Homeless Coalition (5CHC) assisted 52 households with these funds. $66,900 was not utilized and this funding will be disencumbered and returned to HCD.
• Security Deposit Program - $136,321 was awarded and expended for security deposits to secure permanent housing for low-income households. 5CHC assisted 50 households with these funds. All of the awarded funding was used.
• Senior Center Feasibility Study - $93,023 was awarded and expended on a study to determine the feasibility of constructing a senior center. The Council accepted the study on August 24, 2020 (https://www.groverbeach.org/DocumentCenter/View/10383/Item11- SeniorCenterFeasibilityStudy_08-24-2020). However, HCD now requires the adoption of a resolution to document the acceptance of the study. Therefore, a resolution is attached for adoption by the Council. All of the awarded funding was used. • General Administration - $172,643 of the $178,467 awarded was expended for general administration activities. $5,824 was not utilized and this funding will be disencumbered and returned to HCD.
20-CDBG-12061
In May 2021, the City received Over The Counter (OTC) CDBG funding (20-CDBG-12061) in the amount of $2,586,467 for the following:
• Waterline Improvements - $2,084,949.01 was expended to replace approximately 6,300 linear feet of water lines, valves, fire hydrants and lateral in low/moderate income areas of the City to benefit approximately 7,175 people (according to census data). This work was completed by JJ Fisher and a Notice of Completion was filed with the San Luis Obispo County Clerk-Recorder on August 24, 2022. $501,517.99 in awarded funding was not needed as the project costs were below budget and this funding will be disencumbered and returned to HCD.
In March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in response to the impacts of the COVID-19 pandemic. HCD published a Notice of Funding Availability (NOFA) for Community Development Block Grant Coronavirus Aid, Relief, and Economic Security (CDBG-CV) funds. The City was eligible to receive $101,532 based on a formula provided by HCD for round 1 of CV funds and received the following awards:
• 20-CDBG-CV1-00020 - $50,327.61 of the $50,330 awarded was expended for the operations of the Winter Warming Shelter operated by 5CHC. The Shelter provides access and overnight stays to 50 unduplicated persons during the winter months. $2.39 was not utilized and this funding will be disencumbered and returned to HCD.
Staff Report: CDBG Contract Closeouts Page 3
May 8, 2023
• 20-CDBG-CV1-00022 - $51,186.20 of the $51,202 awarded was expended for a childcare training program that aimed to assist individuals who were interested in starting and opening their own daycare within the community. The program provided training and licensing to 5 persons. $15.80 was not utilized and this funding will be disencumbered and returned to HCD.
All programs and projects listed above have now been completed or reached their 36-month grant term with the State. Staff has submitted final funds requests for all eligible expenses and will be packaging the required closeout documents to initiate the closeout process.
FISCAL IMPACT
There is no fiscal impact from this report as the CDBG funds have been expended aside from the amounts to be disencumbered. Those funds are not eligible to be utilized for alternate activities.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Conduct a public hearing, receive public comment and review the accomplishments performed under the State CDBG agreements; adopt the resolution accepting the Senior Center Feasibility Study; and provide direction for staff to send the HCD required closeout forms and documents; or
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The public hearing notice was published in the New Times on Thursday, April 27, 2023. The agenda was posted in accordance with the Brown Act. 5 Cities Homeless Coalition was notified of the meeting.
Attachments
1. Resolution
RESOLUTION NO. 23-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,
CALIFORNIA, TO ACCEPT THE SENIOR CENTER FEASIBLITY STUDY AND
ACKNOWLEDGE ACCOMPLISHMENTS OF THE COMMUNITY DEVELOPMENT
BLOCK GRANT PROGRAM
WHEREAS, the City received Community Development Block Grant (CDBG) Funds under contract 17-CDBG-12027 to conduct a Senior Center Study; WHEREAS, the City Council received a presentation on the Draft Senior Center Feasibility Study and provided feedback for the final version on July 20, 2020; WHEREAS, the City Council received and accepted the final version of the Senior Center Feasibility Study on August 24, 2020; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach, California, does hereby formally accept the Senior Center Feasibility Study funded by the State CDBG Program, and acknowledge the accomplishments of the report.
On motion by Council Member _____, seconded by Council Member ____, and on the following roll-call vote, to wit:
AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN: Council Members –
RECUSED: Council Members –
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of the City of Grover Beach, California this 8th day of May 2023.
KAREN BRIGHT, MAYOR
Attest:
WENDI B. SIMS, CITY CLERK
Attachment 1
**DRAFT**