Agenda Item No. 5
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: February 13, 2024 FROM: Matthew Bronson, City Manager
PREPARED BY: Megan Martin, Community Development Director Janet Reese, Associate Planner
SUBJECT: Potential Programs/Projects for Inclusion in the 2023 State Community Development Block Grant (CDBG) Application
RECOMMENDATION
Adopt a Resolution to authorize staff to prepare and submit an application for a Community Development Block Grant to fund Phases 1 and 2 of the Ramona Garden Park Rehabilitation Project (CIP 1259).
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.
The City falls within the “non-entitlement” program which is administered by the State Department of Housing and Community Development (HCD) and where the City can apply for funding under a competitive application process. Since 2013, when the City started to apply under the nonentitlement program, the City has received grant awards for the following uses:
Waterline Improvement Project (2013, 2017, 2020) $5.9 million Subsistence Payments/Eviction Prevention Program (2013, 2017, 2020) $840,000 Security Deposits/Rapid Rehousing Program (2013, 2017, 2020) $303,000 Childcare Training Program (2020 Coronavirus) $51,000
Warming Center Operation Program (2020 Coronavirus) $163,000 Homeless Services Program (2020 Coronavirus) $256,000
Homeless Shelter Operation Program (2022) $500,000
Planning/Technical Studies (2013, 2017)* $200,000
Total $8.2 million
* Includes Housing Element Update, Economic Development Study, Senior Center Feasibility Study The City is required to conduct public outreach regarding potential CDBG-eligible projects that could be considered for an application, including holding a public hearing to discuss potential application(s) and allow for public input. On August 7, 2023, in anticipation of the NOFA release, Staff Report: 2023 Community Development Block Grant Application Page 2 February 13, 2024
staff held a public meeting to seek public input. This input included funding a childcare-related economic development program and a homeless shelter operations public service program. Staff also identified a potential public infrastructure park improvement project at Ramona Garden Park that could be eligible.
However, HCD did not release the NOFA as originally planned. Instead, only jurisdictions whose projects were applied for in 2020, but not yet funded due to insufficient funding, were eligible to apply for 2023 funding in October 2023. On January 31, 2024, HCD released an amendment that allows a jurisdiction to apply for up to one project that has been designed and is ready to construct to apply for funding, up to a maximum of $3.3 million. Jurisdictions are not eligible to request funds for programs. Therefore, the two potential programs previously suggested through public input are not eligible to be considered at this time.
Staff requests that the Council open a public hearing to seek public input, review potential eligible projects, and authorize staff to prepare and submit an application for the selected project.
Project Selection
In order to be considered eligible, a suggested project/activity must meet one or more of the three National Objectives listed in CDBG Federal Statutes:
• Benefit to low- and moderate-income persons;
• Prevention or elimination of slums and blight; or
• Meeting an urgent community need which pose an immediate threat to the health and welfare of the community (State designates when the “urgent need” objective is allowed for a NOFA).
The benefit to low- and moderate-income persons is the most predominately used National Objective. In order to benefit low- or moderate-income persons, the project must either benefit an area that is comprised of at least 51% low- or moderate-income households, or benefits individually qualified households (i.e., each household is income certified). 54% of the City’s households qualify as low- or moderate-income households, based on the 2015 American Community Survey.
In addition to meeting one of the three National Objectives, the project must also fall under one of the categories listed below.
• Public Improvements. Project must be located in and serve a predominantly residential area within the city. Examples include water and sewer facilities, flood and drainage facilities, accessibility related street improvements (i.e., curb ramps), and utilities. • Public Facility. Examples include acquisition, rehabilitation or new construction of buildings used for public purposes such as training, health services, education, senior and recreation centers, nutrition, shelter, day care, temporary housing and fire protection. • Housing Project:
• Multi-Family (five or more units at a specific site) Housing Rental Rehabilitation Project (with or without acquisition): loan for repairs and improvements of renteroccupied units for sites where the majority of the tenants qualify as low- or moderate-income households.
Staff Report: 2023 Community Development Block Grant Application Page 3 February 13, 2024
• Acquisition of Real Property for Multi-Family (five or more units at a specific site) Projects: acquisition of a site where the majority of the tenants qualify as low- or moderate-income households.
• Public Improvement Project in Support of New Housing: Examples include water and sewer facilities necessary to serve new housing developments designated for low- and moderate income households.
Potential CDBG Projects
In order to provide Council with a list of potential projects, staff reviewed Council-adopted policies, the City’s Capital Improvement Program, and the Water and Sewer Master Plans to propose the following potential project. The Council may want to discuss additional projects, including those that may be received during the public hearing.
Public Facility
• Ramona Garden Park Rehabilitation Project (CIP 1259): In late 2019, the Council entered in a consulting services agreement with RRM Design Group for development of the Ramona Garden Park Master Plan, which was subsequently adopted on November 16, 2020. The Council awarded the production of construction documents to the Wallace Group in May 2022.
In November 2022, the Council reviewed the Master Plan and construction document details for Phases 1 and 2. Phase 1 includes a playground, relocation of the restroom, and general grading and utility work at the north side of the park. Phase 2 includes the construction of the amphitheater and the bandshell for concerts and other special events. Design for Phases 1 and 2 is complete and the estimated cost of the project is approximately $3,000,000.
FISCAL IMPACT
Adams Ashby Group, the City’s CDBG general administration consultant, estimates the cost to prepare the public facility application to be approximately $7,500. The costs associated with the preparation of applications is an eligible expenditure of existing CDBG funds. If awarded, design expenses will be eligible to be reimbursed and phases 1 and 2 of the Ramona Garden Park Rehabilitation Project will be funded.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Adopt a Resolution to authorize staff to prepare and submit an application for Phases 1 and 2 of the Ramona Garden Park Rehabilitation Project (CIP 1259); or
2. Provide direction to staff.
PUBLIC NOTIFICATION
The public hearing notice was published in the Tribune and New Times, and posted on the City Hall Bulletin Board, City’s website, and City’s social media accounts consistent with HCD’s CDBG public noticing requirements on February 1, 2024. The agenda was posted in accordance with the Brown Act.
Attachments
1. Resolution
Resolution of the Governing Body
RESOLUTION NO. Insert Number
A RESOLUTION APPROVING AN APPLICATION FOR FUNDING AND THE
EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS
THERETO FROM THE 2023 AND/OR 2024 FUNDING YEAR OF THE STATE
CDBG PROGRAM
BE IT RESOLVED by the City Council of the City of Grover Beach as follows:
SECTION 1:
The City Council has reviewed and hereby approves the submission to the State of California of one or more application(s) in the aggregate amount, not to exceed, of $3,300,000 for the following CDBG activities, pursuant to the 2023 and 2024 CDBG NOFAs:
List activities and amounts
Activity (e.g. Public Services,
Infrastructure, etc.)
Dollar Amount Being Requested for
the Activity
Public Facilities – Ramona Garden Park $3,300,000
$
$
$
SECTION 2:
The City Council hereby approves the use of Program Income in an amount not to exceed $0 for the CDBG activities described in Section 1.
SECTION 3:
The City Council acknowledges compliance with all state and federal public participation requirements in the development of its application(s).
SECTION 4:
The City Council hereby authorizes and directs the City Manager or designee*, to execute and deliver all applications and act on the City’s behalf in all matters pertaining to all such applications.
Attachment 1
SECTION 5:
If an application is approved, the City Manager or designee*, is authorized to enter into, execute and deliver the grant agreement (i.e., Standard Agreement) and any and all subsequent amendments thereto with the State of California for the purposes of the grant.
SECTION 6:
If an application is approved, the City Manager or designee*, is authorized to sign and submit Funds Requests and all required reporting forms and other documentation as may be required by the State of California from time to time in connection with the grant.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Grover Beach held on 2/13/2024 by the following vote:
AYES: Enter # of votes or names
NOES: Enter # of votes or names
ABSENT: Enter # absentees or names
ABSTAIN: Enter # of abstains or names
Enter Name and Title.
City Council
STATE OF CALIFORNIA
City of Grover Beach
I, Wendi B. Sims, City Clerk of the City of Grover Beach, State of California, hereby certify the above and foregoing to be a full, true and correct copy of a resolution adopted by said City Council on this 13th day of February, 2024 and that said resolution has not been amended, modified, repealed, or rescinded since its date of adoption and is in full force and effect as of the date hereof.
Wendi B. Sims, City Clerk of the City of Grover Beach, State of California
By: Enter Name of City/County Clerk, Title.