HomeMy WebLinkAboutStaff Report 4.A 4/7/2014Agenda Item #4.A
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DATE: April 7, 2014
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Sue Castellucci, Housing Coordinator
SUBJECT: Public Hearing to Receive Comments on the 2014-2015 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
It is recommended that the City Council hold a Public Hearing to Receive Comments on the
2014-2015 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 the Department of Housing And Urban Development (HUD).
lie 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
enviromnent and expanding economic opportunities, principally for persons of low and moderate
income." The City of Petaluma has "entitlement" status trader the CDBG program and, as such,
receives an annual allocation of finding for eligible activities.
Requests for funding for projects and 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.
The City's CDBG entitlement is determined by HUD utilizing a fornmla based on population,
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, Petaluma's allocation increased
approximately 2% for a FY 2014-2015 allocation of $328,342. Due to the dissolution of the
redevelopment agency, the City now has limited finding options to offer to the nonprofits. The
community's nonprofit housing and service providers have worked diligently to adapt to this
changing environment by economizing, downsizing, collaborating, and reinventing their
organizations.
Agenda Review:
City Attorney Finance Director City Manager v
Therefore, following discussions with the CDBG applicants, the fimding recommendations
presented to Council this year are those that realize the best use of fluids with the most potential.
Other conditions upon which staff recommendations are based are: (1) maximize the 20%
allowable administration costs to this program to fund staffing costs due to the overall shortages
in our other Housing Funds; (2) fluid programs which provide the most basic life support
services; (3) fund a minimal number of subreeipient agreements in order to minimize staff
oversight and monitoring responsibilities.
Attachment 42 outlines 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 information if they wish and be available for questions from Council.
CDBG PROCESS
The Petaluma Block Grant application process consisted of a 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 Attachment 92. (Complete applications are
available for viewing at the Housing and Block Grant Office, 27 Howard Street.)
There are two statutory restrictions on the fimds: (1) there is a 20% cap on expenditures for
program administration; and (2) a 15% cap on 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 Petaluma's commitment to the county -wide Continuum of Care program.
Public services are defined as those which "improve the community's facilities, such as child
care, health services, drug abuse programs, services to seniors, etc."
2014-2015 Entitlement
Administration Cap
Public Service Cap
$ 328,342
65,668
49,251
In accordance with CDBG regulations, the City of Petaluma will publish its 2014-2015 Action
Plan. Staff will respond to any community questions and comments. The Action Plan will be
submitted to HUD by May 15, 2014; funds are available as of July 1, 2014.
FINANCIAL IMPACTS
The Block Grant Program is fiscally self-sustaining. All administrative, project, and program
expenditures are covered by the entitlement revenues.
ATTACHMENTS
1. Resolution
2. CDBG Proposals for FY 2014-2015
ATTACHMENT
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).
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 aimual 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
WHEREAS, a public hearing was noticed and conducted to hear comments from the community
on the proposed projects and programs and the City 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 2014-2015; and
BE IT ALSO RESOLVED that, should there be changes in the 2014-2015 entitlement amount,
the City Manager is authorized to increase/decrease each subrecipient's allocation
proportionately; and
BE IT ALSO RESOLVED that the City Manager, or his designee, is authorized to sign all
program documents required by the Department of Housing and Urban Development.
ATTACHMENT 2
2014-2015 CDBG PROPOSALS
Project Funds
Aeency Description Requested Recommended
City Intergovernmental Transfer $59,650 $ 59,650
Code Enforcement Software
Audit
Continuum of Care
Staff Admin
2. PPSC Senior Meals 48,300 47,000
3. Rebuilding Together Rehabilitation 240,000 221,692
2014-2015 TOTALS $ 347,950 $328,342
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.
SUMMARY OF REQUESTS AND RECOMMENDATIONS
1. The City of Petaluma is allowed a maximum of $65,668 (20% of total grant) to
administer the CDBG program, under the Administrative Cap rule. The administrative funds can
utilized for salaries; supplies; Block Grant's share of intergovernmental transfers; various
consulting agreements, including Petaluma's share of administering the County -wide Continuum
of Care Program. Additionally, the City's Code Enforcement staff has requested finding for the
ongoing operation and continuing education related to the City's code enforcement software
program.
Total Petahunans served: N/A
Staff Recommendation: $59,650
2. Petaluma People Services Center (PPSC) has requested $48,300 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: 26,800
Staff Recommendation: $47,000
3. Rebuilding Together Petaluma (RTP) requested $240,000 to serve as the City's
rehabilitation arm. RTP, previously funded from the PCDC Low -Mod housing set-aside, is in its
18°i 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-income community. Because they
use volunteer workers and donated materials, RTP is able to greatly leverage CDBG's limited
funds.
Total number of persons served: 68 homeowners plus an estimated 400 clients
served at nonprofit facilities
Staff Recommendation: $221,692