Agenda Item No. 7
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: August 26, 2024 FROM: Matthew Bronson, City Manager
PREPARED BY: Megan Martin, Community Development Director Janet Reese, Associate Planner
SUBJECT: 2024 California Department of Housing and Community Development Community Development Block Grant Application
RECOMMENDATION
Adopt a Resolution authorizing staff to prepare and submit an application for a Community Development Block Grant for Phase 3 of the Ramona Garden Park Rehabilitation Project, Microenterprise Assistance Program, and Non-Congregate Shelter Navigation Center Program.
BACKGROUND
Local governments, either directly or through State governments, are eligible to receive Community Development Block Grant (CDBG) funds on an annual basis from the U.S.
Department of Housing and Urban Development (HUD). These funds can be used for a variety of purposes including infrastructure needs, low-moderate income housing needs, and other eligible activities. The category of “other eligible activities” includes providing capital to business through grants or loans. The State Department of Housing and Community Development (HCD) administers the CDBG programs and publishes a Notice of Funding Availability (NOFA) for each program for eligible activities.
The 2024 CDBG NOFA is anticipated to be released by HCD on August 30 for approximately $34 million statewide for eligible activities, limiting a maximum of three eligible activities as either “over-the-counter” (OTC) or “Competitive” applications with total funding not to exceed $3.6 million per applicant. Prior to applying for funds within a program year, the City is required to conduct public outreach and hold a public hearing to discuss potential applications and eligible activities.
On June 24, 2024, the Council received a presentation and held a public hearing related to potential programs/projects for inclusion in a 2024 CDBG application. The Council subsequently directed staff to pursue applications for three qualifying activities:
• OTC Project: Ramona Garden Park Rehabilitation Project, City of Grover Beach ($2,354,000)
o Phase 3 of the Ramona Garden Park Rehabilitation Project (CIP 1259), which includes the park entry, the main plaza, and the Veteran’s memorial plaza • OTC Program: Microenterprise Assistance, City of Grover Beach ($946,0001 )
1 Staff originally anticipated $1.1 million for this program based on the original cost estimates for Phase 3 of the Ramona Park Rehabilitation Project. Given a cost increase for Phase 3 and a CDBG award cap for OTC of $3.3 million, the Microenterprise Assistance Program was reduced to account for the difference.
Staff Report: 2024 Community Development Block Grant Application Page 2 August 26, 2024
o Loans to income-eligible business owners to construct needed building improvements such as plumbing and sewer lines, energy code improvements, accessibility requirements, or fire suppression systems. • Competitive Program: Non-Congregate Shelter Navigation Center Program, 5Cities Homeless Coalition ($300,000)
o Would support ongoing operating costs for the navigation centers within the city (“Cabins for Change” and “Balay Ko on Barca”).
To document and formalize the Council’s direction, a Resolution prepared by HCD is required to be adopted and submitted as part of the application. Therefore, staff recommends the Council adopt the Resolution shown in Attachment 1.
FISCAL IMPACT
Adams Ashby Group, the City’s CDBG general administration consultant, estimates the cost to prepare the application(s) and related materials to be approximately $8,500. The cost associated with the preparation of applications is an eligible expenditure of existing CDBG general administration funds included in the Community Development Department’s operating budget. If awarded, the funds would support the currently unfunded project and programs.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Adopt a Resolution authorizing staff to prepare and submit an application for a CDBG grant for Phase 3 of the Ramona Garden Park Rehabilitation Project, Microenterprise Assistance Program, and Non-Congregate Shelter Navigation Center Program; or
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
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 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 $3,600,000 for the following CDBG activities, pursuant to the and 2024 CDBG NOFA:
List activities and amounts
Activity (e.g. Public Services,
Infrastructure, etc.)
Dollar Amount Being Requested for the
Activity
Public Facility: Ramona Garden Park
Improvements Phase 3
$ 2,354,000
Economic Development: Microenterprise
Assistance
$ 946,000
Public Services: Non-Congregate Shelter
Navigation Center Program
$ 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 Mayor or designee*, is authorized to enter into, execute and deliver the grant agreement (i.e., Standard Agreement), any recordable or nonrecordable contract documents, 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 8/26/2024 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
Karen Bright, Mayor
City Council
STATE OF CALIFORNIA
City of Grover Beach
I, Wendi 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 26 day of August, 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 Sims, City Clerk of the City of Grover Beach, State of California
______________________________________
By: Wendi Sims, City Clerk