Agenda Item
City Council
Item #: 3.35. 4/12/2022 File #: 22-0192
TO: Honorable Mayor and Members of the City Council
THRU: Rob Houston, City Manager
FROM: Susan Galvan, Interim Community Development Director
1. SUBJECT
Amendments to the 2019-2020 and 2021-2022 Community Development Block Grant Annual Action Plans, Citizen Participation Plan, and budget adjustments to the Community Development Block Grant Fund.
2. SUMMARY
Proposed Amendment to the 2019-2020 and 2021-2022 Community Development Block Grant Annual Action Plans, Citizen Participation Plan, and budget adjustments to the Community Development Block Grant Fund to bring internal records into alignment with Department of Housing and Urban Development records and best practice recommendations.
3. RECOMMENDED ACTION
1. Approve the following:
a. Third Amendment to the 2019-2020 Community Development Block Grant Annual Action Plan;
b. First Amendment of 2020-2021 Community Development Block Grant Annual Action Plan;
c. Draft Citizen Participation Plan
2. Authorize the following to 310.9645.51770.30200 CDBG Projects - 517 W. Struck Transition:
a. Transfer $230,000 from expenditure account 310.9645.55510.30147 Other Capital Outlay-CARES GrantsSBA;
b. Transfer $48,479.76 from expenditure account 310.9645.500002.30147 Regular Salaries - Misc CARES Act
c. Appropriate $468,405 from revenue account 310.0000.45120.30180 Federal HUD Grants-Homeless Outreach.
3. Authorize the following for the Beverly Street Rehabilitation Project:
a. Accept $16,892 in additional Community Development Block Grant funds to revenue account 310.0000.45120.00000 Federal HUD Grants;
b. Appropriate $16,892 to expenditure account 310.9645.56582.30164 Rehabilitation/Development Grant-Beverly;
4. Authorize the following to 310.9645.57130.11070 CDBG Contingency Account a. Transfer of $68,628.07 from expenditure account 310.9645.56582.30135 Rehab Grant- Hoover Neighborhood St Rehab;
b. Transfer of $27,670.09 from expenditure account 310.9645.56020.30136 CIP City of Orange Printed on 4/7/2022Page 1 of 5
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Item #: 3.35. 4/12/2022 File #: 22-0192
Improvements-Library Restrooms Access;
c. Adjustment to add $14,540.63 to align with HUD’srecords of available past entitlement funds.
5. Authorize the City Manager or his designee to execute Fiscal Year 2021-2022 Memoranda of Understanding with City departments and all related Departments of Housing and Urban Development (HUD) documents to reflect the above mentioned adjustments.
4. FISCAL IMPACT
Adjustments to accounts result in a net increase of $499,837.63 to the Community Development Block Grant (310) expenditure accounts.
CDBG (310)
From To Amount Net Increase to
Budget
Purpose
Small Business
Assistance
CARES CV-1
Transition of
517 W. Struck
$230,000 0 Additional resources to
fund transition plan.
Small Business
Assistance
Administration
CARES CV-1
Transition of
517 W. Struck
$48,479.76 0 Additional resources to
fund transition plan.
Homeless
Outreach
unallocated
funds CARES
CV-3
Transition of
517 W. Struck
$468,405 $468,405 Additional allocation of
CARES funds to fund
transition plan.
Additional
CDBG
entitlement
funds
Beverly Street
Rehabilitation
Project
$16,892 $16,892 Allocate additional
CDBG funds
Hoover Street
Rehabilitation
Project (2020-
2021)
Contingency $68,628.07 0 Project complete.
Make funds available
for other projects
Library
Restroom ADA
Access Project
(2020-2021)
Contingency $27,670.09 0 Project complete.
Make funds available
for other projects
Account
adjustment
increase
Contingency $14,540.63 $14,540.63 Align with HUD
records of available
past year entitlement
funds
Total $499,837.63
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Item #: 3.35. 4/12/2022 File #: 22-0192
5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community e: Develop and strengthen collaborative partnerships to enhance and promote quality of life programs, projects, and services.
6. DISCUSSION AND BACKGROUND
Amendment to 2019-2020 Action Plan (CARES Act)
On May 20, 2020, Council approved the First Amendment to the 2019-2020 Action Plan to accept and allocate $705,956 in the first round (CV-1) of Coronavirus Aid, Relief, and Economic Security Act (CARES) funds to prevent, prepare for, and respond to the coronavirus pandemic for the Small Business Assistance Program to help spur the local economy by preserving low and moderate income jobs. Assistance was provided to businesses that struggled with employee retention or experienced a significant reduction of business as a result of the shutdowns. With businesses recovering, the last request for business employee retention assistance was received in August of 2021, leaving $278,479.76 available for use.
On June 8, 2021, Council approved the Second Amendment to the 2019-2020 Action Plan to accept and allocate an additional $1,108,070 in CV funds (CV-3) to the Homeless Outreach Program. The intent of the program is to assist persons experiencing homelessness by connecting them to and providing resources related to services and shelter. Of the $1,108,070 amount, an estimated three year cost of $639,665 was allocated for two Homeless Outreach Specialists and the cost of their equipment, leaving $468,405 available for use.
Eligible uses for CV-1 and CV-3 funds include services and housing assistance to those experiencing or being at-risk of homelessness as a result of the coronavirus pandemic. As the pandemic exacerbated the homeless crisis and additional resources continue to be needed, staff recommends using the balance of unused CV-1 and uncommitted CV-3 funds for the transition plan at 517 W.
Struck Avenue, which includes services focused on the prevention, preparation, and response to coronavirus to those experiencing or at-risk of homelessness.
Amendment to 2021-2022 Action Plan (Public Facilities)
The Amendment to the 2021-2022 Action Plan increases funding to three Public Facilities Projects as detailed below:
1. ADA Wheelchair Access Ramp: Increases the amount funded from $68,430 to $138,430 as approved by City Council on November 9, 2021;
2. Library ADA Improvement - El Modena Library: Increases the amount funded from $65,000 to $180,000. Staff will be presenting proposal to increase allocation based on bids received at the April 12, 2022 City Council meeting;
3. Beverly Neighborhood Street Rehabilitation: Increases the amount funded from $611,830 to $628,722 to off-set city staff costs. HUD requires the additional entitlement funds to be allocated to a project. The project that staff identified for the additional funds is the Beverly Neighborhood Street Rehabilitation to meet this requirement.
Citizen Participation Plan
The Citizen Participation Plan is the document that outlines the strategy to ensure the participation of citizens and other interested parties in the development of the Five-Year Consolidated Plan (CP), City of Orange Printed on 4/7/2022Page 3 of 5
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Item #: 3.35. 4/12/2022 File #: 22-0192
citizens and other interested parties in the development of the Five-Year Consolidated Plan (CP), Annual Action Plan (AAP), and the Consolidated Annual Performance and Evaluation Report (CAPER).
The significant updates to the Citizen Participation Plan are as follows:
1. Changes the number of required public meetings from two to one for the development of the Annual Action Plan. Currently, two public meetings are required, one consisting of a workshop for new applicants and the second a meeting of the CDBG committee to deliberate on funding recommendations for applications received. In recent years, staff has continued to receive applications from the same applicants who are familiar with the program and do not need training to fill out the application. By changing the minimum to one public meeting requirement, staff has the option of providing a workshop only in the event there is a new applicant. The requirements for two public hearings from the CDBG Committee and City Council will remain. This change improves staff time efficiency on CDBG activities and still meets HUD requirements.
2. The Consolidated Plan (CP) is required to be updated every five years and is the document from which the annual Action Plans are based. A critical element of the CP is a needs assessment survey which helps in identifying the City’s overall housing and community development needs and market conditions, establishes funding priorities, outlines a strategy to address the priorities, and provides the framework for the use of CDBG, HOME and other federal entitlement grants. Currently the needs assessment survey is performed on an annual basis. Staff recommends aligning the needs assessment survey with the CP in the five year cycle. By aligning the needs assessment survey with the development of the CP, a cost savings is realized and aligns our practices to be more consistent with those of other cities, while still meeting HUD requirements
3. Changes the requirement of the Action Plan to be drafted and reviewed after the CDBG Committee’spublic meeting. Currently, the Citizen Participation Plan requires the draft Action Plan be published for public review before the public meeting where deliberations for funding recommendations are made. This results in staff’srecommendations incorporated into the Action Plan and published for public comment before the Committee has an opportunity to make modifications for a recommendation to Council. By publishing the Action Plan after the public meeting, the Committee has an opportunity to make the recommendations first and have those recommendations reflected in the document for public review, resulting in a more efficient process.
4. Authorizes the City Manager to approve change orders on CDBG-funded Public Facilities activities that require budget adjustments for changes involving $30,000 or less, in alignment with current City policy. Changes above $30,000 would continue to require City Council approval.
Adjustments to CDBG (Fund 310)
On September 14, 2021, staff retained the services of Michael Baker International (consultant) to assist with the administration and review of the CDBG and HOME programs for the City. As part of the review, staff and the consultant identified inconsistencies with the Department of Housing and Urban Development’s(HUD) records and those reflected in the City’sfinancial system (Eden). In an effort to bring the two systems into alignment, the following budget adjustments are recommended to the CDBG Fund (310):
1. Increase the CDBG 2021-2022 entitlement from $1,146,270 to $1,163,162, an increase of $16,892. On May 18, 2021, the City was notified by email that the entitlement had City of Orange Printed on 4/7/2022Page 4 of 5
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Item #: 3.35. 4/12/2022 File #: 22-0192
of $16,892. On May 18, 2021, the City was notified by email that the entitlement had increased, but the change was not reflected in the Eden accounting system.
2. Adjust contingency account by increasing it $14,540.63 to make it consistent with available past years’ entitlement funds reflected in HUD’s financial reporting system.
Inconsistencies were also discovered with internal City HOME (Fund 317) records and available funding reflected in HUD’s reporting system. Staff and the consultant are in the process of determining any discrepancies and will bring any recommended adjustments to the City Council at the next Council meeting on May 10, 2022.
By accepting the proposed adjustments, the City’sinternal system records will be in alignment with HUD’srecords resulting in more efficient management and use of the funds and follow best practice recommendations.
7. ATTACHMENTS
· Draft Third Amendment to FY2019-2020 Action Plan
· Draft First Amendment to FY2021-2022 Action Plan
· Draft Citizen Participation Plan
· FY2021-2022 Revised CDBG Amounts Notification
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