City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: APRIL 19, 2022 FROM: COMMUNITY & ECONOMIC DEVELOPMENT WARD: 5
DEPARTMENT
SUBJECT: PROPOSED AMENDMENT TO THE CITY OF RIVERSIDE 2019-2020 UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) ANNUAL ACTION PLAN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM TO REALLOCATE FUNDING FROM A CANCELLED WARD 5 STREET IMPROVEMENT PROJECT TO ANOTHER ELIGIBLE WARD 5 STREET IMPROVEMENT PROJECT – INTERFUND TRANSFER AND SUPPLEMENTAL APPROPRIATION ISSUE:
Approve an amendment to the 2019-2020 HUD Annual Action Plan to cancel the Ward 5 Street Improvements to Sequoia Street and Estrellita Street and its allocation of $142,314 and reallocate those funds plus an additional $51,936 of unprogrammed funds to a new Ward 5 Street Improvement Project to Shelby Drive, Crystal Avenue, Snowberry Street, and Monteel Place for a total of $194,250.
RECOMMENDATIONS:
That the City Council:
With at least five affirmative votes, authorize an amendment to the 2019-2020 HUD Annual Action Plan to cancel the Ward 5 Street Improvements for Sequoia Street from Garfield Street to the End of Sequoia Street and Estrellita Street from Azalea Street to Sequoia Street and its allocation of $142,314; Authorize a funds transfer in the amount of $142,314 from the CDBG Fund, Ward 5 Street Improvements for Sequoia Street from Garfield Street to the End of Sequoia Street and Estrellita Street from Azalea Street to Sequoia Street project account to the CDBG Fund, Unprogrammed Funds Account number 2835100-453001; Authorize an amendment to the 2019-2020 HUD Annual Action Plan to allocate $194,250 to a Ward 5 Street Improvements to Shelby Drive from California Avenue to the northerly terminus, Crystal Avenue from Shelby Drive to the easterly terminus, Snowberry Street, and Monteel Place project; Authorize a funds transfer in the amount of $194,250 from CDBG Fund, Unprogrammed account to the CDBG Fund, 2019-2020 Ward 5 Street Improvements to Shelby Drive, Crystal Avenue, Snowberry Street, and Monteel Place Project; Authorize the City Manager, or his designee, to execute a Memorandum of Understanding (MOU) with the Public Works Department for the 2019-2020 Ward 5 Street Improvements to Shelby Drive, Crystal Avenue, Snowberry Street, and Monteel Place Project, including making minor non-substantive changes, and to sign all documents and instruments necessary to implement this action; and With at least five affirmative votes, upon execution of the MOU, authorize the CFO or his designee, to record a supplemental appropriation of $194,250 in the Grants and Restricted Programs Fund, 2019-2020 Ward 5 Street Improvements to Shelby Drive, Crystal Avenue, Snowberry Street, and Monteel Place Project account, with an offset in the same amount for reimbursement of CDBG related expenditures.
BACKGROUND:
On July 2, 2019 the City Council adopted the 2019-2020 HUD Annual Action Plan. This plan included an allocation of $142,314 for the Ward 5 Street Improvements project for Sequoia Street from Garfield Street to the End of the Street and Estrellita Street from Azalea Street to Sequoia Street.
Multiple issues including property easements and the necessary removal of established trees which would change the character of the neighborhood have delayed this project and made it impractical to continue with the project as planned.
The Public Works Department has proposed a replacement project in Ward 5, Street Improvements to Shelby Drive from California Avenue to the northerly terminus, Crystal Avenue from Shelby Drive to the easterly terminus, Snowberry Street, and Monteel Place with a requested total budget of $194,250. This project is located within income eligible Census Tract 031502 Block Group No. 3.
DISCUSSION:
The proposed amendment to the HUD 2019-2020 Annual Action Plan will allocate $194,250 to the project. The project serves qualifying Low to Moderate-Income areas in Ward 5.
A public notice was issued announcing the proposed amendment to the HUD Annual Action Plan and a 30-day public comment period was provided in compliance with HUD regulations. The original notice was published in the Press Enterprise on Saturday, March 19, 2022, and included the date this action would be considered by the City Council.
The Public Works Director concurs with the recommendations in this report.
STRATEGIC PLAN ALIGNMENT:
This Amendment to the City of Riverside’s 2019-2020 United States Department of Housing and Urban Development (HUD) Annual Action Plan for the Community Development Block Grant (CDBG) Program aligns with Strategic Priority 6 – Infrastructure, Mobility & Connectivity and contributes to the achievement of the following goal:
Goal 6.2. Maintain, protect and improve assets and infrastructure within the City’s built environment to ensure and enhance reliability, resiliency, sustainability, and facilitate connectivity.
This Amendment to the City of Riverside’s 2019-2020 HUD Annual Action Plan for the CDBG Program algins with each of the Cross-Cutting Threads as follows:
Community Trust – The City of Riverside has identified eight priority development areas to meet the greatest needs of residents in the City. Priorities are based on responses to annual Community Surveys conducted by the City through Community Ward Meetings, Post Card Surveys, and online. The information was gathered in specific focus groups and interviews with various organizations and service providers in the housing and community development field.
Equity – Pursuant to the Housing Community Act of 1974, the U.S. Department of HUD provides critical priority for the funding to ensure all eligible persons receive equitable access to services and are served with dignity, respect, and compassion regardless of the circumstances, ability, or identity.
Fiscal Responsibility – There is no fiscal impact to the City General Fund associated with this item. This item allows the City to utilize unneeded and unused CDBG funds toward the construction of street improvements to residential streets, allowing for improved infrastructure and living environments for low- to moderate-income areas.
Innovation – This item will allow the City to capitalize on federal funding to meet ongoing and changing needs of low-to moderate income members of the community.
Sustainability & Resiliency – The HUD Annual Action Plan describes the specific actions that will be undertaken using HUD entitlement funds to promote sustainable community and economic development and projects to encourage community engagement and resiliency.
FISCAL IMPACT:
The total fiscal impact of the action is $194,250. Upon Council approval, a supplemental appropriation will be recorded in the Grants and Restricted Programs Fund, 2019-2020 Ward 5 Street Improvements to Shelby Drive, Crystal Avenue, Snowberry Street, and Monteel Place Project account number, along with an offset in the same amount for reimbursement of CDBG related expenditures, in an account to be determined by Finance. CDBG funds totaling $142,314 from the 19-20 CDBG Ward 5 Street Improvements to Sequoia Street and Estrellita Street Account number 9169500-440120 is being canceled and returned to the Unprogrammed Funds Account number 2835100-453001. A total of $194,250 is available in the Unprogrammed Funds Account to transfer to the new Ward 5 Street Improvements project account 9277500-440120.
Source
Account
Amount
Grants and Restricted Programs Fund, 19-20 Ward 5 Street Improvements Sequoia Street and Estrellita Street 9169500-440120
($142,314)
Grants and Restricted Programs Fund, 19-20 Ward 5 Street Improvements Sequoia Street and Estrellita Street 9169500-895220
$142,314
CDBG Fund, 19-20 Ward 5 Street Improvements Sequoia Street and Estrellita Street 9271900-440120
($142,314)
CDBG Unprogrammed Funds
2835100-453001
$142,314
CDBG Unprogrammed Funds
2835100-453001
($194,250)
CDBG Fund, 19-20 Ward 5 Street Improvements Shelby Dr, Crystal Ave, Snowberry St, and Monteel 977500-440120
$194,250
Supplemental Appropriation
Grans and Restricted Programs Fund
Public Works 19-20 Ward 5 Account
TBD-440120
$194,250
Grans and Restricted Programs Fund
Public Works 19-20 Ward 5 Account
TBD-895220
($194,250)
Prepared by: Chris Christopoulos, Acting Community & Economic Development Department Director
Certified as to
availability of funds: Edward Enriquez, Chief Financial Officer/Treasurer Approved by: Rafael Guzman, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Attachment: Presentation
2019-2020 HUD Action Plan Amendment Ward 5 Street Improvements ● Page 2