FOR THE COUNCIL MEETING OF JUNE 7, 2022
COUNCIL AGENDA REPORT
TO:
FROM:
SUBJECT:
City Council
City Manager
Prepared by: Director of Community Development
FINAL APPROVAL OF THE COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) PROGRAM'S ANNUAL ACTION PLAN FOR FISCAL
YEAR 2022-23
RECOMMENDATION
That the City Council adopt Resolutions:
1. Approving the Public Services activities and allocations under the Community Development Block Grant (CDBG) Program incorporated in the Annual Action Plan for Fiscal Year 2022-23; and
2. Approving the Capital Development activities and allocations under the CDBG Program incorporated in the Annual Action Plan for Fiscal Year 2022-23; and
3. Approving the General Administrative activities and allocations under the CDBG Program incorporated in the Annual Action Plan for Fiscal Year 2022-23.
BACKGROUND:
To qualify for funding under the CDBG Program, the U.S. Department of Housing and Urban Development (HUD) requires the City to follow a public participation process and develop an Action Plan. The Annual Action Plan is part of an overall Five -Year Consolidated Plan which includes details as to how the City will use CDBG funding for the upcoming fiscal year. The City Council -appointed Block Grants Advisory Committee (BGAC) oversees the process that includes an assessment of the needs in the community, development of funding priorities, review of applications, participation of site visits, and recommendation of allocations which are presented to the City Council as a drafted Action Plan.
DISCUSSION:
The drafted Action Plan for FY 2022-23 was introduced to the City Council at its April 5, 2022, meeting. During that meeting, the City did not know how much CDBG funding it would receive for the coming fiscal year. For that reason, the City Council adopted proposed contingencies to assist in the allocation process and avoid delaying the City's ability to submit an approved Action Plan to HUD once the final allocations were announced. Until early May, the City of Santa Maria anticipated receiving the same allocation as the current fiscal year, which was $1,631,180. However, on Friday, May 13, 2022, HUD released its final allocation numbers, with the City receiving $1,489,515 - a
nearly nine percent decrease in overall anticipated CDBG funding ($141,665 Tess than last year). As a result, there must be a $21,248 reduction to Public Services, $92,086 reduction to Capital, and $28,331 reduction to General Administrative expenses. These reductions are meant to comply with the funding limits imposed by HUD as they relate to Public Services and General Administration costs. See Attachment A — Final Available CDBG Funding.
Public Services
Since the City is receiving less funding than expected, the adopted contingency states that funding will be cut from those allocated more than the BGAC's team recommendation, until funds are exhausted. The funding decrease per the contingency only totals $9,675 and affects 3 of the 13 agencies recommended for funding, but an additional $11,573 must be reduced in order to comply with HUD's funding limits. As a result, staff recommends that the decrease be evenly distributed to the eight agencies receiving more than $15,000. That is an approximate $1,447 reduction for each of the eight agencies. Currently, $15,000 is the minimum amount that any one agency should be allocated, therefore, reducing the other five agencies getting the minimum amount is not advised. For a full look at the updated Public Services allocations, see Attachment B.
CDBG Capital
The adopted contingency under Capital states that funding will be reduced from Good Samaritan Shelter, followed by CommUnify (in that order), until the BGAC's team recommendation is met. Capital must be reduced by $92,086, which under the reduction only affects Good Samaritan Shelter's project. For a full look at the updated Capital allocations, see Attachment C.
Alternative:
Should the City Council decide not to approve the proposed drafted Action Plan, staff will bring this item back to the City Council at a later date per the CDBG Citizen Participation Plan guidelines. This may delay the submittal of the plan to HUD and may also result in a delay in funding.
Fiscal Impact:
The proposed action will provide nearly $1.5 million in federal funds for social services, shelter for those experiencing homelessness, minor home repair for low- to- moderate income residents, and improved infrastructure throughout Santa Maria. //
2 Impact to the Community:
The proposed action will address major issues facing the community by providing emergency assistance to homeless and special needs populations, expanding services for at -risk youth, providing opportunities for sustainable affordable housing, revitalizing neighborhoods, and improving the community's public facilities and infrastructure. To review the drafted FY 2022-23 Action Plan, go to the City's website at www.cityofsantamaria.oro/caper .
go&-tAk
ROSIE ROJO
Community Programs Manager
CHUEN NG
Director of Community Development
ATTACHMENTS
Attachment A — Final Available CDBG Funding
Attachment B — Public Service Allocations
Attachment C — Capital Project Allocations
3 FINAL AVAILABLE CDBG FUNDING
FISCAL YEAR 2022-2023 (HUD released allocations on 5/13/2022) Updated 5/16/2022 by RR
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
Final Entitlement Amount
2022-23 Final Entitlement Amount
Anticipated Program Income (PI) (2021-2022)'
Reprogrammed CDBG funding 2
Total CDBG Resources
$ 1,489,515
$ 25,000
$ 37,822
$ 1,552,337
Total CDBG Allocations
Allocation for Public Services (15 percent cap) $ 223,427 Allocation for Capital Projects (65 percent + reprogrammed funding) 3 $ 1,006,007 Allocation for General Administration (20 percent, plus PI)' $ 287,903 Fair Housing $ 10,000
' Program income (PI) that may be generated from existing revolving loan fund programs, such as Residential Rehabilitation Loan Program. It may fluctuate and for that reason it is not included in "Total CDBG Allocations."
2 This amount is added to the overall Capital project allocation 3 This includes $15,000 for TBRA administration, leaving $991,007 for subrecipients. 420 percent is $297,903; however, $10,000 is for mandated Fair Housing testing as required by HUD.
ATTACHMENT A
FINAL Fiscal Year 2022-23 Public Services Allocations
BGAC
Survey
Ranking
Public Services Applicant
Requested
Amount
BGAC Team
Recommendation
Committee / City
Council
Recommendation
on April 5, 2022
Final Allocation
to be approved
on June 7, 2022
Priority
Being Met
1 Foodbank - Warehouse Distribution Program
$ 20,000
$
20,000
$
20,000
$ 18,556
Critical Needs
2 Alliance for Pharmaceutical Access - Patient Advocacy for Affordable or No Cost Medications
$ 20,000
$
20,000
$
20,000
$ 18,553
Critical Needs
3 Meals on Wheels Santa Maria Valley
$ 20,000
$
20,000
$
20,000
$ 18,553
Elderly
4 Domestic Violence Solutions - Emergency Shelter
$ 15,000
$
15,000
$
15,000
$ 15,000
Critical Needs
5 Good Samaritan Shelter - Homeless Shelter Programs
$ 20,000
$
20,000
$
20,000
$ 18,553
Homeless
6 The Salvation Army - Hot Lunch Program
$ 20,000
$
15,000
$
10,176
$ 15,000
Critical Needs
7 Child Abuse Listening Mediation (CALM) - Child Trauma Prevention and Treatment
$ 20,000
$
20,000
$
20,000
$ 18,553
Youth
8 Family Service Agency / SMV Youth & Family Center - Family Resource Center
$ 20,000
$
15,000
$
15,000
$ 15,000
Critical Needs
9 North County Rape Crisis & Child Protection Center
$ 18,000
$
15,000
$
18,000
$ 15,000
Youth
10 Catholic Charities - Santa Maria Community Services
$ 20,000
$
20,000
$
20,000
$ 18,553
Critical Needs
11 Good Samaritan Shelter - Freedom Warming Center (previously administered by Unitarian Society)
$ 20,000
$
20,000
$
20,000
$ 18,553
Homeless
12 Independent Living Resource Center- Services and Outreach to Individuals with Disabilities
$ 18,500
$
18,500
$
15,000
$ 15,000
Special Needs
14 Fighting Back Santa Maria Valley - Homeless Transitional Youth Services
$ 20,000
$
20,000
$
22,500
$ 18,553
Youth
TOTALS
$ 251,500
$
238,500
$
244,675
$ 223,427
2022-23 Funding Amount
$ 244,675
$
244,675
$
223,427
$ 223,427
BALANCE REMAINING / SHORT
$ (6,825)
$
6,175
$
(21,248)
$ (0)
Public Services is reduced by $21,248. As a result, the approved contingency is implemented. The contingency states that the reductions will be taken from the agencies that are recommended to receive more than what the team recommended. This affects Fighting Back, North County Rape Crisis, and The Salvation Army. Because these reductions only add up to $9,675 and an additional $11,573 must be reduced, Staff recommends that the agencies recommended to receive $20,000 or more get equally reduced by $1,447 (with the exception of the Foodbank would be reduced by $1,444 for rounding purposes). No agency can receive less than $15,000, this is why the agencies getting $15,000 cannot be reduced further.
Updated 5/25/22 by RR
ATTACHMENT B
FINAL Fiscal Year 2022-23 Capital Project Allocations
Breakdown of Final
Allocation
City
Council
Priority
Capital Development Project Applicant
Requested
Amount
BGAC Team
Recommendation
Committee / City
Council
Recommendation
on April 5, 2022
Final Allocation
to be approved
on June 7, 2022
Target
Population To Be
Served
Amount
to Agency
Staff
Project
Delivery
Cost
High
City of Santa Maria / Public Works Department -
Santa Maria ADA and Pedestrian Safety and
Accessibility Improvement Project
$ 500,000
$ 500,000
$ 500,000
$ 500,000
Revitalize
Neighborhoods /
Area Benefit
S 475.000
$ 25,000
Medium
CommUnify (formerly Community Action Commission
or CAC) - Safe at Home (Minor Home Repair)
$ 75,000
$ 35,000
$ 75,000
$ 75,000
Elderly, Disabled
Low Income
Homeowners /
Renters
$ 71,250
$ 3,750
Medium
Community Action Partnership of San Luis Obispo
County, Inc. (CAPLSO) - Minor Home Repair
Program
$ 125,000
$ 125,000
$ 125,000
$ 125,000
Elderly, Disabled
Low Income
Homeowners /
Renters
$ 118,750
$ 6,250
Medium
Good Samaritan Shelter - Kitchen Equipment
Upgrade'
$ 258,000
$ 258,000
$ 383,093
$ 291,007
Homeless
$ 276,457
$ 14,550
N/A
TBRAAdministration
$ 15,000
N/A
$ 15,000
$ 15,000
Elderly, Disabled
Low lncome
Homeowners /
Renters
$ 15,000
$
Low
City of Santa Maria / Recreation and Parks
Department -Rosalind Perlman Park
$ 675,932
$ 225,000
$ -
$ -
Revitalize
Neighborhoods /
Area Benefit
$ -
$
TOTALS
$ 1,648,932
$ 1,143,000
$ 1,098,093
$ 1,006,007
2022-23 Funding Amount & Reprogramming from
Previously Closed Out Projects
$ 1,098,093
$ 1,098,093
$ 1,098,093
$ 1,006,007
BALANCE REMAINING / SHORT
$ (550,839)
$ (44,907)
$ -
$ -
1 This agency is getting a $92,086 reduction per the adopted contingency. The amounts in the spreadsheet reflect the final numbers.
Updated 5/16/22 by RR
ATTACHMENT C
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MARIA, CALIFORNIA, APPROVING THE PUBLIC SERVICES
ACTIVITIES AND ALLOCATIONS UNDER THE COMMUNITY
DEVELOPMENT BLOCK GRANT PROGRAM INCORPORATED IN
THE ANNUAL ACTION PLAN FOR FISCAL YEAR 2022-23
WHEREAS, the City of Santa Maria is eligible for Federal funding in the amount of $1,489,515 during Fiscal Year 2022-23 for the 48th consecutive year under the Community Development Block Grant (CDBG) Program, and is reprogramming unexpended funds in the amount of $37,822 from prior fiscal years, as well as program income; and
WHEREAS, $223,427 or 15 percent of the City's Fiscal Year 2022-23 CDBG Entitlement may be used for public services activities; and WHEREAS, public input has been solicited and received in accordance with the City's adopted Citizen Participation Plan and Federal regulations; and WHEREAS, Federal regulations require that at least two meetings be held for the purpose of obtaining residents' views and responses to proposals and questions; and WHEREAS, two public hearings were held, one on August 17, 2021, and one on April 5, 2022, at which time comments and proposals were heard from the public; and WHEREAS, staff analyzed the eligibility of all proposed activities for the use of CDBG Program funds; and
WHEREAS, the Block Grants Advisory Committee and Special Projects Division staff presented a recommendation to the City Council for the allocation of funds for specific activities under the CDBG Program for Fiscal Year 2022-23; and WHEREAS, notices of all public hearings were made at the time and in the manner required by law.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:
1) The following allocations are approved, and incorporated in the Annual Action Plan for the use of Fiscal Year 2022-23 Federal funds under the CDBG program:
Alliance for Pharmaceutical Access
$ 18,553
Catholic Charities
$ 18,553
Child Abuse Listening Mediation (CALM)
$ 18,553
Domestic Violence Solutions
$ 15,000
Family Service Agency / SMVYFC
$ 15,000
Fighting Back Santa Maria Valley
$ 18,553
Foodbank of Santa Barbara County
$ 18,556
Good Samaritan Shelter (GSS) / Emergency Shelter
$ 18,553
Good Samaritan Shelter (GSS) / Warming Center
$ 18,553
Independent Living Resource Center
$ 15,000
Meals on Wheels Santa Maria Valley
$ 18,553
North County Rape Crisis & Child Protection Center
$ 15,000
The Salvation Army / Hot Lunch Program
$ 15,000
GRAND TOTAL 2022-23 CDBG PUBLIC SERVICES ALLOCATION
$ 223,427
2) The City Manager, or designee, is hereby authorized to execute the necessary documents on behalf of the City of Santa Maria for application of the funds; and
3) The City Manager, or designee, is hereby authorized to make minor changes to the Annual Action Plan to expedite the use of funding so long as the changes follow the City's CDBG Citizen Participation Plan; and 4) The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 7th day of June 2022.
Mayor
ATTEST:
Chief Deputy City Clerk
APPROVED AS TO FORM:
BY:
City Attorney
APPROVED AS TO CONTENT:
BY:
BY:
2 RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MARIA, CALIFORNIA, APPROVING THE CAPITAL DEVELOPMENT
ACTIVITIES AND ALLOCATIONS UNDER THE COMMUNITY
DEVELOPMENT BLOCK GRANT PROGRAM INCORPORATED IN
THE ANNUAL ACTION PLAN FOR FISCAL YEAR 2022-23
WHEREAS, the City of Santa Maria is eligible for Federal funding in the amount of $1,489,515 during Fiscal Year 2022-23 for the 48th consecutive year under the Community Development Block Grant (CDBG) Program, and is reprogramming unexpended funds in the amount of $37,822 from prior fiscal years, as well as program income; and
WHEREAS, $968,185 or approximately 65 percent of the City's Fiscal Year 2022- 23 CDBG Entitlement, plus $37,822 from prior fiscal years reprogrammed funds and program income for a total of $1,006,007, may be used for Capital activities; and WHEREAS, public input has been solicited and received in accordance with the City's adopted Citizen Participation Plan and Federal regulations; and WHEREAS, Federal regulations require that at least two meetings be held for the purpose of obtaining residents` views and responses to proposals and questions; and WHEREAS, two public hearings were held, one on August 17, 2021, and one on April 5, 2022, at which time comments and proposals were heard from the public; and WHEREAS, staff analyzed the eligibility of all proposed activities for the use of CDBG Program funds; and
WHEREAS, the Block Grants Advisory Committee (BGAC) and Special Projects Division staff presented a recommendation to the City Council for the allocation of funds for specific activities under the CDBG Program for Fiscal Year 2022-23; and WHEREAS, notices of all public hearings were made at the time and in the manner required by law.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:
1) The following allocations are approved, and incorporated in the Annual Action Plan for the use of Fiscal Year 2022-23 Federal funds under the CDBG program:
///
///
PUBLIC FACILITIES AND IMPROVEMENTS (Inc'I 5 percent Project Delivery Cost) City of SM / Public Works / ADA and Pedestrian Safety and Accessibility Improvement Project
$ 500,000
NON-PROFIT FACILITIES PROGRAM (Inc'I 5 percent Project Delivery Cost) Good Samaritan Shelter/ Kitchen Equipment Upgrade -Installation $ 291,007
HOUSING - RESIDENTIAL REHABILITATION (Inc'I 5 percent Project Delivery Cost) Community Action Partnership of SLO County, Inc. / Minor Home Repair
$ 125,000
CommUnify / Safe at Home Minor Home Repair
$ 75,000
TBRA ADMINISTRATION
$ 15,000
GRAND TOTAL 2022-23 CDBG CAPITAL ALLOCATION
$ 1,006,007
2) The City Manager, or designee, is hereby authorized to execute the necessary documents on behalf of the City of Santa Maria for application of the funds; and
3) The City Manager, or designee, is hereby authorized to make minor changes to the Annual Action Plan to expedite the use of funding so long as the changes follow the City's CDBG Citizen Participation Plan; and 4) The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.
2 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 7th day of June 2022.
Mayor
ATTEST:
APPROVED AS TO FORM:
Chief Deputy City Clerk
City Attorney
APPROVED AS TO CONTENT:
G*
Departmenypirector
City
3 RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MARIA, CALIFORNIA, APPROVING THE GENERAL ADMINISTRATION
ACTIVITIES AND ALLOCATIONS UNDER THE COMMUNITY
DEVELOPMENT BLOCK GRANT PROGRAM INCORPORATED IN THE
ANNUAL ACTION PLAN FOR FISCAL YEAR 2022-23
WHEREAS, the City of Santa Maria is eligible for Federal funding in the amount of $1,489,515 during Fiscal Year 2022-23 for the 48th consecutive year under the Community Development Block Grant (CDBG) Program, and is reprogramming unexpended funds in the amount of $37,822 from prior fiscal years, as well as program income; and
WHEREAS, $297,903 or 20 percent of the City's Fiscal Year 2022-23 CDBG Entitlement may be used for general administration activities; and WHEREAS, $10,000 of that $297,903 will be used for Fair Housing activities as required by the U.S. Department of Housing and Urban Development (HUD); and WHEREAS, $287,903 will be left for general administration activities and will be used to cover the staff's expenses in managing the CDBG funding; and WHEREAS, public input has been solicited and received in accordance with the City's adopted Citizen Participation Plan and Federal regulations; and WHEREAS, Federal regulations require that at least two meetings be held for the purpose of obtaining residents' views and responses to proposals and questions; and WHEREAS, two public hearings were held, one on August 17, 2021, and one on April 5, 2022, at which time comments and proposals were heard from the public; and WHEREAS, staff analyzed the eligibility of all proposed activities for the use of CDBG Program funds; and
WHEREAS, the Block Grants Advisory Committee (BGAC) and Special Projects Division staff presented a recommendation to the City Council for the allocation of funds for specific activities under the CDBG Program for Fiscal Year 2022-23; and WHEREAS, notices of all public hearings were made at the time and in the manner required by law.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:
1) The following allocations are approved, and incorporated in the Annual Action Plan for the use of Fiscal Year 2022-23 Federal funds under the CDBG program:
/11
General Administration
$ 287,903
Fair Housing
$ 10,000
GRAND TOTAL 2022-23 CDBG GENERAL ADMIN/FAIR HOUSING
$ 297,903
2) The City Manager, or designee, is hereby authorized to execute the necessary documents on behalf of the City of Santa Maria for application of the funds; and
3) The City Manager, or designee, is hereby authorized to make minor changes to the Annual Action Plan to expedite the use of funding so long as the changes follow the City's CDBG Citizen Participation Plan; and 4) The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 7th day of June 2022.
Mayor
ATTEST:
APPROVED AS TO FORM:
Chief Deputy City Clerk
2 City Attomey
APPROVED AS TO CONTENT:
DepartmentJjirector
ity Ma
ager