FOR THE COUNCIL MEETING OF APRIL 18, 2023
COUNCIL AGENDA REPORT
TO: City Council
FROM: City Manager
Prepared by: Director of Community Development
SUBJECT: FISCAL YEAR 2023-24 PUBLIC SERVICES ALLOCATION FOR
COMMUNITY DEVELOPMENT BLOCK GRANT
RECOMMENDATION:
That the City Council:
1. Allocate its $37,500 in Community Development Block Grant (CDBG) funding to Public Services programs initially not recommended for funding by the Block Grants Advisory Committee (BGAC); and
2. Receive information on American Rescue Plan Act (ARPA) funding for the possibility of using $40,000 for organizations that provide overnight shelter to the homeless.
BACKGROUND:
On April 4, 2023, the City Council approved the recommendations presented by the BGAC regarding the use of the City's CDBG Program. CDBG is the primary Federal program that provides state and local governments with grant funds for local programs and projects to address a variety of complex physical and social needs in the community.
During this meeting, the City Council had $37,500 of Public Services funds set aside to allocate directly to an agency of their choice ($7,500 for each Councilmember). With each Councilmember having $7,500, he/she can add to a Public Service agency that is recommended for funding or combine their allocation with another Councilmember to provide funding to an organization that the committee did not recommend funding to (thereby keeping the minimum allocation to at least $15,000). The maximum amount an agency can receive is $20,924 (10 percent of the overall Public Service funding).
Due to the demand and need for funding by a variety of agencies, the City Council asked staff to research whether ARPA funds could be used to assist with funding services to shelter the unhoused. By doing this, the City Council can approve additional programs originally not recommended for CDBG funding by the BGAC, as listed in Attachment A.
ARPA is funding from the Federal government to provide additional financial relief following the COVID-19 pandemic. It was signed into law in March 2021. These funds come with restrictions; however, assisting the unhoused has been deemed eligible by ARPA consultants.
1 DISCUSSION:
The City Council is asked to allocate its $37,500 in CDBG funds to two of the 15 agencies listed in Attachment A. The City Council's action would allow staff to meet its annual Federal deadline and prepare the CDBG recommendations for final approval at the May 2, 2023, City Council meeting.
For ARPA, the addition of a new project under this funding source would result in a significant increase in administrative duties. According to the City's ARPA consultants, at a minimum, the City would need to publish a Notice of Funding Availability (NOFA) which defines the amount of the funds available, the desired scope of work, the application process, and the fiscal and administrative requirements. Since ARPA funds are tied to the COVID-19 pandemic, the financial and/or administrative impact of the pandemic must also be shown by applicants to justify using these funds. ARPA funds cannot be provided by the City Council to a select agency or agencies without first allowing others to apply.
This public participation process may take at least 30 days to complete, maybe longer depending on staff and additional ARPA requirements. Since the addition of new ARPA activities into an existing spending plan would create additional layers of administrative duties for staff and the non-profit agencies that may apply, staff recommends that ARPA funds not be used for any agency and act only on the $37,500 in CDBG funds.
Alternative:
City Council can direct staff to proceed with the requirements imposed by ARPA and go through the NOFA process, with the understanding that the $37,500 in CDBG funds must be allocated at the current meeting in order to meet the U.S. Department of Housing and Urban Development's (HUD's) required deadline to submit the City's Annual Action Plan.
Should Council choose to use ARPA funds, staff advises that the use of ARPA funds be limited to a one-time use and to assisting the unhoused.
Environmental Determination:
The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Fiscal Impact:
The proposed action would provide Federal grant funds to non-profit agencies to address various needs.
//
//
2 Impact to the Community:
The proposed action will have a positive impact by providing services to the most vulnerable individuals in the community.
ROSIE ROJO
Community Programs Manager
GG�
CHUEN WU
Director of Community Development
ATTACHMENT
Attachment A — Public Service Applicants
3 FOR THE COUNCIL MEETING OF APRIL 18, 2023
COUNCIL AGENDA REPORT
TO: City Council
FROM: City Manager
Prepared by: Director of Community Development
SUBJECT: FISCAL YEAR 2023-24 PUBLIC SERVICES ALLOCATION FOR
COMMUNITY DEVELOPMENT BLOCK GRANT AND AMERICAN
RESCUE PLAN ACT
RECOMMENDATION:
That the City Council:
1. Allocate its $37,500 in Community Development Block Grant (CDBG) funding to Public Services programs; and
2. Receive information on American Rescue Plan Act (ARPA) funding and allocate up to $40,000 for organizations that provide services for the homeless.
BACKGROUND:
On April 4, 2023, the City Council approved the recommendations presented by the Block Grants Advisory Committee (BGAC) regarding the use of the City's CDBG Program.
CDBG is the primary Federal program that provides state and local govemments with grant funds for local programs and projects to address a variety of complex physical and social needs in the community.
During this meeting, the City Council had $37,500 of Public Services funds set aside to allocate directly to an agency of their choice ($7,500 for each Councilmember). With each Councilmember having $7,500, he/she can add to a Public Service agency that is recommended for funding or combine their allocation with another Councilmember to provide funding to an organization that the committee did not recommend funding to (thereby keeping the minimum allocation to at least $15,000). The maximum amount an agency can receive for public services is $20,924 (10 percent of the overall Public Service funding).
Due to the demand and need for funding by a variety of agencies, the City Council asked staff to research whether ARPA funds could be used to assist with funding services for the unhoused. By doing this, the City Council can approve additional agencies originally not recommended for CDBG funding by the BGAC, as listed in Attachment A.
ARPA is funding from the Federal government to provide additional financial relief following the COVID-19 pandemic. It was signed into law in March 2021. These funds come with restrictions, however, assisting the unhoused has been deemed eligible by ARPA consultants.
1 DISCUSSION:
The City Council has asked to allocate its $37,500 in CDBG and $40,000 in ARPA to some of the 15 agencies listed in Attachment A. The minimum allocation amount for any agency is $15,000 and the maximum is $20,924. The City Council's action on the $37,500 would allow staff to prepare the CDBG recommendations for final approval at the May 2, 2023, City Council meeting.
For ARPA, the addition of a new project under this funding source would result in additional administrative duties, including accounting and reporting. Staff also advises that the use of these ARPA funds would be one-time, and limited to assisting the unhoused, and as determined justified by the expenditure parameters.
Altemative:
Since the addition of new ARPA activities into an existing spending plan would create an additional layer of administrative duties for staff, the City Council can choose not to use ARPA for any agency and act only on the $37,500 in CDBG funds.
Fiscal Impact:
The proposed action would provide $77,500 in Federal grant funds to several non-profit agencies to address a variety of needs.
Fact to the Community:
The proposed action will have a positive impact by providing services to the most vulnerable individuals in the community.
Qt0-6
ROSIE ROJO
Community Programs Manager
G Lu�^4VN
CHUEN WU
Director of Community Development
ATTACHMENT
Attachment A — Public Service Applicants
2 FISCAL YEAR 2023-24 PUBLIC SERVICES APPLICANTS NOT RECOMMENDED FOR FUNDING BY BGAC Population To Be
Served
Public Services Applicant
2022-23
Allocation
2023-24 Requested
Amount
2023-24 Council
Recommendation
Critical Needs
Family Service Agency of SB County - SMV Family Resource Center
$ 15000
$ 22,000
$
Critical Needs
Mixteco/Indigena Community Organizing Project (MICOP) - Puente a la Comunidad
N/A
$ 20,000
$ -
Critical Needs
People's Self -Help Housing - Supportive Housing for Low -Income USDA Farmworker Households
N/A
$ 20,000
$ -
Critical Needs
Savie Health Corp. - Free Health Care of Uninsured SM Residents N/A
$ 20,000
$ -
Critical Needs
SLO Noor Foundation - SLO Noor Mobile Healthcare
N/A
$ 15,000
$ -
Elderly
SMOOTH, Inc. - Senior Dial A Ride
N/A
$ 22,000
$ -
Homeless
Good Samaritan Shelter - Freedom Warming Center
$ 18,553
$ 20,000
$ -
Homeless
Good Samaritan Shelter - Homeless Shelter Programs
$ 18,553
$ 20,000
$ -
Homeless
NBCC, dba New Beginnings - Safe Parking Shelter and Rapid Rehousing Program
WA
$ 20,000
$ -
Homeless
Partners in Housing Solutions - Santa Maria Program
N/A
$ 22,000
$ -
Special Needs
Independent Living Resource Center - Services and Outreach to Individuals with Disabilities
$ 15,000
$ 19,500
$ -
Youth
Boys & Girls Clubs of Mid Central Coast - Opportunity to Thrive N/A
$ 20,000
$ -
Youth
Child Abuse Listening Mediation (CALM) - Childhood Trauma Prevention and Treatment
$ 18,553
$ 20,000
$ -
Youth
City of Santa Maria Recreation and Parks Department - Tutoring Services at the AMCYC
N/A
$ 20,500
$ -
Youth
Council on Alcoholism and Drug Abuse - Santa Maria Mentor Program
N/A
$ 20,000
$ -
$
Council Set -Aside
$ 37,500
$ (37,500)
ATTACHMENT A
V 1N3WHOVlld
FISCAL YEAR 2023-24 PUBLIC SERVICES APPLICANTS NOT RECOMMENDED FOR FUNDING BY BGAC Population To Be
Served
Public Services Applicant
2022-23
Allocation
2023-24 Requested
Amount
2023-24 Council
Recommendation
Critical Needs
Family Service Agency of SB County - SMV Family Resource Center
$ 15,000
$ 22,000
$ -
Critical Needs
Mixteco/Indigena Community Organizing Project (MICOP) - Puente a la Comunidad
N/A
$ 20,000
$ -
Critical Needs
People's Self -Help Housing - Supportive Housing for Low -Income USDA Farmworker Households
N/A
$ 20,000
$
Critical Needs
Savie Health Corp. - Free Health Care of Uninsured SM Residents N/A
$ 20,000
$ -
Critical Needs
SLO Noor Foundation - SLO Noor Mobile Healthcare
N/A
$ 15,000
$ -
Elderly
SMOOTH, Inc. - Senior Dial A Ride
N/A
$ 22,000
$ -
Homeless
Good Samaritan Shelter - Freedom Warming Center
$ 18,553
$ 20,000
$ -
Homeless
Good Samaritan Shelter - Homeless Shelter Programs
$ 18,553
$ 20,000
$ -
Homeless
NBCC, dba New Beginnings - Safe Parking Shelter and Rapid Rehousing Program
N/A
$ 20,000
$ -
Homeless
Partners in Housing Solutions - Santa Maria Program
N/A
$ 22,000
$ -
Special Needs
Independent Living Resource Center - Services and Outreach to Individuals with Disabilities
$ 15,000
$ 19,500
$
Youth
Boys & Girls Clubs of Mid Central Coast - Opportunity to Thrive N/A
$ 20,000
$ -
Youth
Child Abuse Listening Mediation (CALM) - Childhood Trauma Prevention and Treatment
$ 18,553
$ 20,000
$
Youth
City of Santa Maria Recreation and Parks Department - Tutoring Services at the AMCYC
N/A
$ 20,500
$
Youth
Program n Alcoholism and Drug Abuse - Santa Maria Mentor N/A
$ 20,000
$ -
$
Council Set -Aside
$ 37,500
$ (37,500)