HomeMy WebLinkAboutItem 1c: Public Hearing: Statement of Objectives and Projects for Community Development Block Grant (CDBG) FundsDATE: December 15, 2009
TO: Mayor and City Council
FROM: Jason Kruckeberg, Development Services Director S-K-
By: Jim Kasama, Community Development Administrator'/
Prepared by: Amber Abeyta, Administrative Assistant �`—
SUMMARY
DISCUSSION
STAFF REPORT
Development Services Department
SUBJECT: 2010 -11 Statement of Objectives and Projects for Use of Community
Development Block Grant (CDBG) Funds
Recommendation: Approve
The Los Angeles County Community Development Commission (CDC) has advised the
that the City of Arcadia will receive approximately $396,455 (same amount as for
current FY 09 -10) in Community Development Block Grant (CDBG) funds for fiscal year
2010 -11. Costs and project summaries must be submitted to the County by February 1,
2010. Staff recommends that the City Council approve the projects as set forth in this
report for fiscal year 2010 -11. The primary objective of the CDBG program is to provide
assistance to low and moderate - income families by enabling them to participate in
various community activities, and improve their property and environs. CDBG aims to
also improve accessibility for the disabled and eliminate blight or substandard
conditions within the City.
The City has been a participant in the Community Development Block Grant (CDBG)
program for approximately 36 years. CDBG funds come from the U.S. Department of
Housing and Urban Development (HUD) and are administered by the Los Angeles
County Community Development Commission (CDC) for many cities in the County,
including Arcadia. Criteria for participation in the program have changed over the years.
Use of the funds has become more restrictive in order to meet the objective of assisting
low and moderate - income families. For instance, federal regulations allow a maximum
of 15% of a grantee's aggregate funds ($59,470) to be used for Public Service
programs. In previous years, the public service program maximum was 25 %. Other
requirements are that a minimum of 70% ($297,348) of the total funds must be used for
projects that support and benefit low and moderate - income families, that no project be
funded at Tess than $10,000, and program administration expenses cannot exceed 10%
($39,646) of the annual allocation. Given that the City will receive approximately the
same amount of funding for fiscal year 2010 -11 as received in the current fiscal year
2009 -10, no changes are proposed for fiscal year 2010 -11.
Due to the general economic health of this community, Arcadia does not have any
neighborhoods that meet the low and moderate - income standard to qualify for many
CDBG funded projects, such as street improvements. Disabled access improvements,
however; are eligible, such as the current sidewalk and curb ramp improvements
project. For fiscal year 2010 -11, staff is recommending the same allocation of $90,000
(22.7 %) to continue the disabled- access sidewalk and curb ramp improvements.
The following table is a summary of the funding for the current projects (FY 2009 -10)
and for the projects recommended for next year (FY 2010 -11):
Housing Rehabilitation
Handicap Ramp /Sidewalk Imps.
Public Service Projects (15 %):
Congregate Meals
Sr. Citizen Social Services
Youth Program
Administration (10 %)
Totals
Current Projects Recommendations
FY 2009 -10 for FY 2010 -11
$ 207,349 (52.3 %) $ 207,349 (52.3 %)
$ 90,000 (22.7 %) $ 90,000 (22.7 %)
$ 23,214 (5.9 %)
$ 23,474 (5.9 %)
$ 12,776 (3.2 %)
$ 39,642 (10.0 %)
$ 396,455 (100 %)
$ 23,214
$ 23,474
$ 12,776
$ 39,642
$ 396,455
(5.9 %)
(5.9 %)
(3.2 %)
(10.0 %)
(100 %)
The following are descriptions of the projects:
Housing Rehabilitation
The current funding (FY 2009 -10) is $207,349 (52.3 %) and the recommended funding
for fiscal year 2010 -11 is the same. Of these funds, 20% ($41,470) is allowed to be
used for administration of this project and covers a portion of staff's time and the annual
consulting contract of $34,000. The current consultant's contract is approximately 25%
less than the prior consultant's contract.
The Housing Rehabilitation program is the largest of the City's CDBG programs, and
has been an ongoing project for many years. The program provides a maximum grant
of $12,000 to benefit low /moderate- income homeowners by providing needed home
improvements and repairs such as painting, roofing, electrical upgrades, handicap
accessibility, removal of overgrown landscaping, energy- efficiency improvements, and
correction of code deficiencies.
It is anticipated that the City will assist a total of 14 homeowners with the current fiscal
year (2009 -10) funds, and the same number can be assisted with the recommended
funding of $207,349 (52.3 %) for fiscal year 2010 -11.
2010 -11 CDBG Projects
December 15, 2009
Page 2
Handicap Ramp /Sidewalk Improvements
The current fiscal year 2009 -10 funding for this project is $90,000 (22.7 %) and the same
amount of $90,000 (22.7 %) is recommended for fiscal year 2010 -11.
This is the third year this project has been funded. Given the success of this project,
staff recommends continuation of the project for the upcoming fiscal year 2010 -11. The
project proposed for fiscal year 2010 -11 includes the completion of missing sections of
sidewalk and new handicap ramps along Alice and Lucile Avenues between Santa Anita
and Second Avenues.
Congregate Meals for Senior Citizens — (Public Service Project)
The current fiscal year funding is $23,214 (5.9 %) and the recommended funding for
fiscal year 2010 -11 is the same; $23,214 (5.9 %).
This program is one of three (3) public service projects funded for the current fiscal year
(2009 -10) which cumulatively cannot exceed a total of 15% ($59,464). It is an ongoing
program that provides senior citizens with a nutrition program that features hot noon-
time meals, Monday through Friday at the Community Center. For the current fiscal
year, it is anticipated that almost 13,000 meals will be provided, and the goal is to
maintain this level of service for the next fiscal year.
Senior Citizen Social Services Information and Referrals — (Public Service Project)
The current funding (FY 2009 -10) is $23,474 (5.9 %) and the recommended funding for
fiscal year 2010 -11 is unchanged at $23,474 (5.9 %).
This program provides senior citizens with information that is essential for them to
maintain independent and healthy lifestyles. Services include assistance with
government benefits (e.g., Medicare /Medi -Cal, Social Security & income tax credits)
housing assistance, transportation, legal assistance, in -home services, health services,
and educational opportunities. For the current fiscal year, 510 senior citizens have
been assisted as of the end of November 2009, and the goal is to maintain a similar
level of service for the next fiscal year.
Youth Services Program — (Public Service Project)
The current fiscal year 2009 -10 funding is $12,776 (3.2 %) and the same amount of
funding is recommended for fiscal year 2010 -11 at $12,776 (3.2 %).
This is an ongoing program directed at benefiting youths up to 18 years old who come
from low- income households. This program pays to send these youths to day camp,
music club, educational field trips, summer camp, and may subsidize band equipment
and uniforms. For the current fiscal year 2009 -10, a total of 60 children participated in
the following activities; summer day camp, Soak City trip, swim lessons, Knott's Berry
Farm trip, gymnastics classes, guitar lessons, tennis lessons, and voice lessons. The
goal for the next fiscal year is to maintain this level of service.
2010 -11 CDBG Projects
December 15, 2009
Page 3
Program Administration (maximum 10 %)
Up to 10% ($39,642) of the total annual allocation is allowed to be used to offset the
costs of general management of the entire CDBG program. Similar to the current fiscal
year (2009 -10) this 10% allowance is proposed to be allocated for general
administration, and as in past years, if actual administration costs are less than the 10%
allowance, the balance is reallocated to the Housing Rehabilitation Program.
RECOMMENDED PROJECTS FOR FISCAL YEAR 2010 -11
Staff is recommending the following projects and funding allocations, and the Los
Angeles County Community Development Commission (CDC) recommends that the
City Council approve a program of projects subject to a provision that authorizes the
City Manager to approve amendments as necessary:
Projects
Housing Rehabilitation
Handicap Ramp /Sidewalk Imps.
Public Service Projects (15 %):
Congregate Meals
Sr. Citizen Social Services
Youth Program
Administration (10 %)
Total
Funding Allocations
$ 207,349 (52.3 %)
$ 90,000 (22.7 %)
$ 23,214 (5.9 %)
$ 23,474 (5.9 %)
$ 12,776 (3.2 %)
$ 39,642 (10.0 %)
$ 396,455 (100 %)
FISCAL IMPACT
There is not a fiscal impact to the City's general fund to implement CDBG projects
because all funding, including a 10% administrative allowance comes from the federal
grant. However, CDBG project appropriations are included in the operating budget and
are required to obtain City Council approval prior to the expenditure of the funds.
RECOMMENDATION
1. Approve the projects and fund allocations as outlined above, or as modified
by the City Council; and
2. Authorize the City Manager to:
a. Modify the project allocations should amendments become necessary; and
b. Execute a Memorandum of Understanding with the Los Angeles County
Community Development Commission, which is to be submitted to the
County at a later date.
Approved: _D m y / 1
Donald Penman, City Manager
2010 -11 CDBG Projects
December 15, 2009
Page 4