HomeMy WebLinkAboutStaff Report 5.B 04/01/2013 ,4ievidav Itevw#5.3
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DATE: April 1, 2013
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Bonne Gaebler, Housing and Block Grant Administrator
SUBJECT: Public Hearing to Receive Comments on the 2013-20 I4 Proposed Action Plan
and Adoption of°a Resolution Approving the-Community Development Block
Grant Action Plan and Authorizing the City Manager to Sign All Documents
Required by the Department of Housing and Urban.Development (HUD).
RECOMMENDATION r
It is recommended that the City Council hold aiPublic Hearing to Receive Comments on the
2013-2014 Proposed Action Plan and Adopt a Resolution Approving the Community
Development Block Grant Action Plan and Authorizing the City Manager to Sign All
Documents Required by theL Department of Housing And Urban.Development (HUD).
BACKGROUND
The primary objective of the Community Development Block Grant (CDBG) program is the
development of"viable urban communities, by providing decent housing and a suitable living
environment and expanding economic opportunities, principally for persons of low and moderate
income.'' The City of Petaluma has "entitlement" status under the CDBG program and, as such,
receives an annual allocatiomof+funding for eligible activities.
Requests for funding for piojectsand programs must address not only the national objective, but
also the Council's local priorities as.outlined in the 2010-2015:Consolidated Plan, the document
required by HUD to serve as a five-year planning tool and as our application for federal funding.
DISCUSSION
The City's CbBG:entitlement is determined by HUD utilizing a formula based onpopulation,
poverty, housing conditions, etc. Our allocation has been decreasing for several years because of
the effect of the recession on the federal budget This year, due to sequestration and assuming a'
"continuing resolution," HUD staff is advising each jurisdiction to assume another 5% decrease
fora FY 2013-2014,allocation of$266,092. In earlier-years,.staff was in a position to
recommend to the-Council that other Housing Funds be utilized,to accommodate such substantial
decreases in;CDBG. However,due;to'the still tepid residential development climate and the
dissolution of the redevelopment agency, the City now.has limited funding options. Each of the
other four.housing funds (Housing In Lieu, Commercial Linkage, HOME, and Low-Mod Set-
aside) is stagnant, decreased or totally gone. The communitys nonprofit housing and service
Agenda Revievy: .a, I
City Attorney /)M inance'I recto',_/ � . Manager
providers,have worked diligently to adaptto this changing,environment,by economizing,
downsizing, collaborating, and:reinventing their organizations.
Therefore, following discussions with thesusual CDBG applicants, this year's funding
recommendations are being presented to:Council to realize the best bang for the limited bucks:
(1) Staff will.charge Only a portion-of the 20% allowable.administration costs,to this program;
the remainder Will be utilized for direct.serviceito the eonfmunity; (2) fund programs which
provide the most basic life support services; (3) fund a minintal-,number of subrecipient
agreements in order to minimize.staff,oversight and monitoring responsibilities.
CDBG PROCESS
The Petaluma Block Grant.application processconsisted ofa.public notice, application packets
to community agencies<and other city departments, and a technical assistance workshop. At that
workshop, staff presented the current fiscal situation and recommended funding alternatives and
one-on-one application assistance to any group,which requests it "Three applications were
received from nonprofit service„providers and the City's Code,Enforcement division.
A synopsis of each application is included in Alttachment#2. (Complete applications are
availablefor viewing at the Housingand Block Grant Office; 27 Howard Street.)
There are two statutory restrictions on the funds: (1) there is a 20%u cap on expenditures for
program administration; and (2) a 15% capon expenditures for"public service” activities, i.e.
program or"soft" costs. Program administration expenses include.Block Grant staff and support
services, and a share of Petalunia,s commitment to the county-wide Continuum of Care program.
Public,serviees are defined,as those•which "improve the community's facilities, such as child
care,health services, drug abuse programs, services to seniors, etc."
2013-2014'Entitlement $266,092
Administration Cap 53,218
Public'Service Cap 39,914
Attachment#2 outlines, in table form; agency requests and staff recommendations. Each
applicant has been notified of the public hearing and representatives from each agency have been
invited to attend, present inforinationifthey wish and be available for'questions from Council.
In accordance with CDBG regulations;the City of Petaluma will publish its 2013-14 Action
Plan: Staff will respond to any community questions and comments. The Action Plan will be
submitted to"HUD by May 15, 2013; funds areaavailable as of July 1, 2013.
FINANCIAL IMPACTS
The Brook Grant,Program is fiscally self-sustaining. All administrative, project, and program
expenditures,are covered by thekentitlement revenues.
ATTACHMENTS_
Attachment#1 -Resolution
Attachment#2—CDBG,Proposals for FY 2011-2014
s/housing/cdbgproeram2013CDBG.agenda bill
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ATTACHMENT#1
Resolution Approving The"Community Development Block Grant Action Plan
And Updated Citizen Participation Plan And Authorizing The City Manager
To Sign All Documents Required By The Department Of Housing And Urban
Development (HUD):
WHEREAS,the City of Petaluma is an entitlement community under the jurisdiction of the
Department of Housing and Urban,Development (HUD) Community Development Block Grant
Program; and
WHEREAS, as part of the Consolidated Plan Strategy; HUD requires an annual Action Plan
which is comprised of the community's projected use of Block Grant funds to address
community needs; and
WHEREAS, all projects and programs which are proposed for funding address one or more of
the priorities of the City's 2010-2015 Consolidated Plan; and
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WHEREAS, a public hearing was noticed and conducted to hear comments from the community
on the proposed projects•and-programs and theltCity Council found the proposed funding plan to
be consistent with the Consolidated.Plan; and
THEREFORE BE IT RESOLVED by the Petaluma City-Council that the Action Plan as
attached is approved and adopted for FY 201342014; and
BE IT ALSO RESOLVED that, should there be changes in the 2013-2014 entitlement amount,
the City Manager is authorized,to increase/decrease each subre cipient's,allocation
proportionately; and
BE IT ALSO RESOLVED'that the City Manager, or his designee, is authorized to sign all
program documentstequired.by the Department of Housing and Urban Development.
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ATTACHMENT#2
2013-2014 CDBG PROPOSALS
Project Funds
Agency Description ', Requested Recommended
1. City Intergovernmental Transfer $33,150 $33,150
Code Enforcement Software
Audit
Continuum of Care
2. PPSC Senior.Meals 39,914 39,914
3. Rebuilding Together. Rehabilitation I $193,028 $193,028
Working in partnership with CDBG applicants, RTP will`continue to be the City's main
rehabilitation arm, coordinating suppliers and volunteers to respond to the community's
rehabilitation needs.
2013-2014 TOTALS $266,092 $266,092
SUMMARY OF REQUESTS AND RECOMMENDATIONS
1. The City of.Petalumacis allowed a.mazimum of$53,21 81(20%,of total grant) to
administer the CDBG program, under`the Administrative Car rule. The administrative funds can
utilized for salaries; supplies; Block Grant's share of intergovernmental transfers; various
consulting agreements, including Petaluma's sfiare of administering the County-wide Continuum
of Care Program. Additionally, the City's Code Enforcement staff has requested funding for the
ongoing operation and continuing education related to the City's code enforcement software
program. Staff is<recomrnending that the staff salary portion of the allowed administrative costs
be applied to the direct community benefit pool.
Total Petalumans served': N/A
Staff Recommendation: $33,150
2. Petaluma People Services Center (PPSC) has requested$39;914 to continue PPSC's
Home Delivered Meals Program. Through the Home Delivered Meals program, which operates
every day of the year,,homebound elders receive a daily hot:meal and security check, nutritional
assessments, and, when needed,;individualized counseling by a registered dietician. Meals are
cooked on weekdays at the PPSC newly renovated commercial kitchen,located-in the senior
Center at 211 Novak Drive. On weekends PPSC purchases meals prepared by Petaluma Valley
hospital. Meals are;delivered seven days a week by caring,PPSC volunteers.
Total Meals Delivered: 21,000
Staff Recommendation: $39,914
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6. Rebuilding Together Petaluma (RTP) requested $193,028 to serve as the City's
rehabilitation arm. RTP, previously funded from the PCDC Low-Mod housing set-aside, is in its
1,71x' year of providing.much needed, free of charge, home repair, home modifications (for
disabled persons), and water and energy efficient services,to low and very low income
homeowners and renters, as well as repairs and major maintenance on nonprofit facilities..
Because of budget cuts, the City no longer has'the staff capability to responsibly administer
many small contracts. This year. RTP will be Coordinating with other.nonprofit CDBG
applicants to address the rehabilitation requests from our low'ii come community. Because they
use volunteer workers and donated materials, RTP is able to greatly leverage CDBG's limited
funds.
Total number of persons served: 65 homeowners plus an estimated 200 clients served at
nonprofit facilities
Staff Recommendation: $193,028'
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