CITY OF LEMON GROVE
CITY COUNCIL
STAFF REPORT
Item No. 3.
Meeting Date: October 20, 2026
Submitted to: Honorable Mayor and Members of the City Council Department: Public Works Department
Staff Contact: Izzy Murguia, Public Works Director; [email protected] Item Title: Authorize the Fiscal Year 2027-2028 Community Development Block Grant (CDBG) Program Application
Recommended Action: Hold a public hearing, receive public comment, and adopt a Resolution (Attachment A) authorizing the submittal of an application for the Fiscal Year 2027-28 Community Development Block Grant (CDBG) Program Application.
Summary: The purpose of this agenda item is to hold a public hearing and receive City Council authorization to submit an application for the proposed Fiscal Year (FY) 2027-28 Community Development Block Grant (CDBG) Program to fund an infrastructure project.
If successful, funds will be used to rehabilitate Lemon Avenue. This agenda item provides information regarding the CDBG program and application process as well as staff’s recommendation for the allocation of CDBG funds.
Discussion: The CDBG Program was created in 1974 and is administered by the U.S.
Department of Housing and Urban Development (HUD). The purpose of the program is to provide funds annually to all entitlement jurisdictions to develop a viable urban community through community development projects and affordable housing activities that benefit low to moderate income households and persons with special needs.
The County of San Diego, Housing and Community Development Services (HCDS) department currently serves as a grantee for the San Diego Urban County, a federally designated area, that includes the unincorporated areas of San Diego County and all nonentitlement cities within the County that choose to participate in the CDBG Program. As a non-entitlement jurisdiction, the City of Lemon Grove must partner with the County of San Diego to receive CDBG funds. According to the County of San Diego, CDBG-funded projects must satisfy one of three national program objectives:
• Provide a benefit to low and moderate income persons
• Prevent or eliminate slums and blight, or
• Meet needs having a particular urgency
FY 2027-28 CDBG Application
October 20, 2026
Eligible activities broadly include:
• Real property acquisition
• Public facilities and improvements
• Public services
• Economic development (job creation), and Housing development and rehabilitation
For over 20 years, the City has participated in the CDBG Program, predominately relying on CDBG funds for street rehabilitation projects in eligible neighborhoods. Last year the City Council authorized the submittal of an application for CDBG funds for improvements to Acacia Street between Golden Ave and end of cul-de-sac (FY 2026-27), which is scheduled to be completed in the summer of 2027.
On September 25, 2026, County staff informed the City that Lemon Grove was eligible to receive $115,921 in CDBG funding for FY 2027-28. The County used the same CDBG allocation formula to calculate the City’s allocation that considers population, overcrowding, and poverty. To receive this funding, the City must submit a CDBG Program application detailing the proposed use of these funds to HCDS staff for consideration and approval. As part of the application process, the City Council must adopt a resolution authorizing the submittal of the CDBG Program application.
To determine the recommended street rehabilitation project, staff reviewed streets located in eligible census tract and block group areas provided by the County. Staff then compared eligible street segments against the current Pavement Management Program and selected streets with a Pavement Condition Index (PCI) under 25. This preliminary assessment resulted in 68 street segments as potential candidates for the FY 2027-28 CDBG program. Next, staff further narrowed the 68 street segments based on additional criteria to finalize its recommendation. Those criteria include: budget (project is not or minimally subsidized by the General Fund or Gas Tax), connectivity (fixing whole blocks), maximizing number of residences served, maximizing streets/square footage, proximity to parks/facilities and schools, and location to commercial corridors.
Based on the criteria set forth above, staff narrowed the number of candidates to seven (7) potential streets. Of these streets, staff recommends the rehabilitation of Lemon Ave for the FY 2027-28 CDBG program application. The Pavement Condition Index (PCI) for this street is ≤25. Figure 1 below and the photos included in Attachment B show the street segment that is recommended for improvement.
The project will consist of milling (grinding) down old asphalt three (3) inches and replacing it with hot mix asphalt and performing dig outs where needed. The estimated budget for this project is $112,108, and includes the overlay, striping, and installing two (2) pedestrian curb ramps. The project estimate also includes indirect costs such engineering, soils testing, inspection and contingencies.
FY 2027-28 CDBG Application
October 20, 2026
Figure 1: FY 2027-28 Proposed CDBG Street Project
Historically, the City has used CDBG funding to rehabilitate streets with a PCI below 25, as an opportunity to use one-time monies to address streets in disrepair. Poor rated roads are more expensive to repair because road quality declines over time, and the cost of repairs increases exponentially as roads worsen. The estimated cost for a mill and overlay is approximately $4.00 per square foot, compared to $0.75 for slurry seal treatments. As costs have risen, it is difficult to complete a street improvement project with only the budget allocated by the CDBG program, without requiring contributions from other funding sources (i.e., General Fund, Gas Tax, TransNet).
If the City Council adopts the resolution, staff will submit an application to HCDS for consideration and approval by Friday, October 30, 2026. Assuming the County approves the application (Attachment C), staff will then work with the City’s Contract City Engineer to prepare construction documents, advertise the construction project bid documents (spring 2028) and after completing the bid process, return to the City Council with a recommendation to award a construction contract.
Environmental Review:
Not subject to review Negative Declaration
Categorical Exemption, Section Mitigated Negative Declaration 2026/27 City Council Work Plan/Strategic Focus Area(s):
☒ Public Streets, Storm Drains & Sidewalks ☐ Public Safety & Homelessness ☐ Revenue, Economic Development &
Budget
☐ Community Life
FY 2027-28 CDBG Application
October 20, 2026
Brief Description: This project improves the City’s road network by addressing streets in the “poorest” condition.
Fiscal Impact: The estimated project cost of $112,108 is fully funded by the City's $115,921 CDBG allocation; no General Fund contribution is required.
Public Notification: As required by the CDBG Program, a legal notice of this public hearing was published in the East County Californian on October 9 and 16, 2026.
Staff Recommendation: Hold a public hearing, receive public comment, and adopt a Resolution (Attachment A) authorizing the submittal of an application for the Fiscal Year 2027-28 Community Development Block Grant Program Application.
City Council Options:
1. Approve Staff’s recommendation.
2. Deny Staff’s recommendation and select an alternative street as provided in Attachment D.
3. Deny Staff’s recommendation and provide direction to utilize funds towards pedestrian ramp and sidewalk improvements.
4. Deny Staff’s recommendation and provide direction not to submit an application for FY 2027-28.
Attachments:
Attachment A – Resolution
Attachment B – Project Map
Attachment C – CDBG FY 2027-28 Application
Attachment D – Alternative Street Considerations
Attachment E – Qualifying Census Tracts
FY 2027-28 CDBG Application
October 20, 2026
ATTACHMENT A
RESOLUTION NO. 2026 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LEMON GROVE,
CALIFORNIA, AUTHORIZING THE SUBMITTAL OF AN APPLICATION FOR THE FISCAL YEAR 2027-28 COMMUNITY DEVELOPMENT BLOCK GRANT
PROGRAM
WHEREAS, the United States Department of Housing and Urban Development (HUD) administers the Community Development Block Grant (CDBG) Program, which provides Federal funds to assist community development activities in urban areas; and WHEREAS, the County of San Diego (County), as an eligible Urban County, applies and receives CDBG funds that are administered within the County’s unincorporated areas and local governments that participate in the San Diego Urban County CDBG Program; and
WHEREAS, the City of Lemon Grove is a non-entitlement jurisdiction and must partner with the County of San Diego to receive CDBG funds; and WHEREAS, the City of Lemon Grove published a notice of public hearing in a newspaper of general circulation on October 9 and 16, 2026; and WHEREAS, the City will submit an application to the County for approval to receive Federal CDBG funds to rehabilitate Lemon Ave from Buena Vista Ave to Olive Street; and
WHEREAS, the City understands and agrees that should the CDBG Program be discontinued, the City would be required to reimburse the County’s Housing Development Fund for any affected funds.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lemon Grove, California, hereby:
1. Directs the City Manager, or her designee, to allocate CDBG funding for street rehabilitation purposes; and
2. Authorizes the City Manager, or her designee, to submit an application for the CDBG Program for Fiscal Year 2027-28; and
3. Authorizes the City Manager, or her designee, to manage all program-related documentation.
FY 2027-28 CDBG Application
October 20, 2026
PASSED AND ADOPTED on October 20, 2026, the City Council of the City of Lemon Grove, California, adopted Resolution No. _______, passed by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________
Alysson Snow, Mayor
Attest:
______________________________________________
_ Shanta Wilson, Acting City Clerk
Approved as to Form:
_________________________
Kristen Steinke, City Attorney
PROPOSED PROJECT MAP
1) Lemon Avenue (from Buena Vista Avenue to the Olive Street)
PROPOSED PROJECT PICTURES
2) Picture 1: Lemon Avenue from Buena Vista Avenue to Olive Street (entry-street view) Picture 2: Lemon Avenue from Buena Vista Avenue to Olive Street (mid-street view) Picture 3: Lemon Avenue from Buena Vista Avenue to Olive Street (end-street view)
ATTACHMENT
ALTERNATIVE STREET CONSIDERATIONS
Alternative Streets Total
Sq. Ft
Est. Cost PCI Connectivity #
Residences
Proximity
to Public
Facilities
Proximity to
Commercial
Corridor
Lemon Ave (Olive to Buena
Vista)
20,229 $112,108 ≤ 10 No 0 No Yes
Pacific Ave (Olive to Main
St.)
9,636 $114,998 17 Yes ~10 Yes Yes
Lester Ave (Grove to Lemon
Grove Ave)
26,520 $157,388 ≤ 10 No ~66 No Yes
North Ave (Harris St. to
Buena Vista)
17,072 $120,216 16 Yes ~10 No Yes
Glebe (San Miguel to Fisher
Ln.)
25,398 $134,851 ≤ 10 No ~17 No No
Harris Street (North to
Broadway)
24,472 $148,376 19 No ~6 No Yes
West Street (North to
Broadway)
21,556 $135,546 ≤ 10 No ~6 No Yes
MT VERNON
STREET
NORTH AVENUE
MADISON
AVENUE
BURNELL
IDA AVENUE
STREET
ALTON
DRIVE
LINCOLN
STREET
JEFFERSON
STREET
ALTON
DRIVE
MTVE
STR
DAIN
URT
C
O
DAYTONA
STREET
LESTER
STREET
CARLISLE DRIVE
RNON
EET
ALS
GROVE
STREE
T
MULDER STREET
69T
MERCURY
DRIVE
WEST STREET
OLIVE
OLIVE
STREET STREET GLENCOE
DRIVE
GLENCOE
DRIVE
ROY
STREET
SANFORD
DRIVE
FEDE
BOULE
O
R
MADERA STREET
AL
ARD
V
O
O
H
MAIN
STREET
LEM
ON LANE
H GLENCOE
DRIVE
MEADOW LANE
A
BROADWAY
LINCOLN
PLACE
ACACIA
STREET
SKYLINE
CRESTLINE DRIVE
WASHINGTON
STREET PARK
DEBCO DRIVE
TREET
MASSACHUSETTS AVENUE
HARRIS STREET
FISHER LANE
CYPRESS AVENUE
SKYLINE
DRIVE
N
EDDING DRIVE
NIC
STREET
UE
LA
D
N
C
R TA
H
S TREE
DRIVE
T
E
ENUE
BROADWAY
LEMON
AVENUE
BERRYLA
COURT
D
S
GLEBE ROAD
SWEET
WAY
W
A
TER
GR
LEMO
OVE
N
WAY
BLOSSO M
BROA
LANE
D WAY
LEMON
GROVE
AVENUE
D
D
N
O
A
BROADWAY
YT
H
IBISCUS
RIVE
R
RIVE
LEM
ON VE AVENUE G
RO
ILDICA
STREET
MAIN
STREET
N
WATW
ROA
AVE
OD
D
T
L
V
SAN MIGU
La Mesa
La
Presa
Encanto
Skyline
Lomita
Document Path: C:\Users\TPunnackal\Documents\_02 Projects and Proposals\_09 CA-City-Lemon-Grove\GIS 2026 Update\AGP\Lemon Grove 2026 PMP - TP.aprx Pavement Condition Index (PCI)
FIGURE
3 APPROVED
SOURCE -
High PriorityStreet(PCl<25)
Other Streets
City Boundary
JOB NUMBER
605.053.001
DRAWN
TP
DATE
1 in. = 2,685 ft.
0 1,300 2,600
ft.
REVISED
ESRIWorld Imagery with Metadata 09/16/2026 -
Legend
CITY OF LEMON GROVE | 2026 STREETSAVER UPDATE
HIGH PRIORITY NEEDS ¯