HomeMy WebLinkAboutStaff Report 4.A 04/06/2009CITY OF PET�A�-LUUMA, CALIFORNIA
AGENDA BILL
April 6, 2009
Agenda Title:
Public Hearing To Receive Comments On The 2009-2010 Proposed Action Meeting Date:
Plan And Adoption Of A Resolution Approving The Community April 6, 2009
Development Block Grant Action Plan And Authorizing The City Manager
To Sign All Documents Required By The Department of Housing and Urban Meeting Time: ❑ 3:00 PM
Development (HUD). ® 7:00 PM
Category: ❑ Presentation ❑ Consent Calendar ® Public Hearing ❑ Unfinished Business ❑ New Business
Denartment: Director: Contact Person: Phone Number:
Community Mike Moo Bonne Gaebler 778-4484 (direct)
Development Block \�
Grant (CDBG)
Cost of PrtmosaC Account Number:
$343,000 2110
Amount Budgeted: Name of Fund:
$343,000 (estimate; awaiting final decision from HUD) CDBG
Attachments to Agenda Packet Item:
Exhibit #1. FY 2009-2010 CDBG Requests and Recommendations: Table Format
Exhibit #2. Requests and Recommendations: Narrative Summary
Exhibit #3. Resolution Approving Action Plan and Budget
Summary Statement:
The City of Petaluma is an "entitlement jurisdiction" under the Conmumity Development Block Grant Program.
Under that designation, the City is entitled to an annual allocation of funds from HUD. The funds must be
utilized on activities which benefit low and moderate -income persons. Within that broad definition, HUD defines
eligible activities and the City Council allocates funds to community-based organizations that implement projects
and programs which fit the Council priorities. Those priorities are outlined in the 2005-2010 Consolidated Plan,
the document required by HUD to serve as our five-year strategic plan and application for federal finding.
Recommended Citv Council Action/Suggested Motion:
Conduct a public hearing to receive continents on the 2009-2010 proposed Action Plan and adopt a resolution
approving the Community Development Block Grant projects and authorizing the City Manager to sign all
documents required by HUD.
Reviewed by Admin. Svcs. Dir: Reviewed by City Attornev: Auoroved by City Manager:
13ate:1�L � S �/0 -j Date:
Rev. # p r q Date Last Revised_
Date:
File:s: housing\cdbgprogram\cdbgdocuments\cdbgstaffre
port2008
CITY OF PETALUMA, CALIFORNIA
APRIL 6, 2009
AGENDA REPORT
FOR
PUBLIC HEARING TO RECEIVE COMMENTS ON THE 2009-2010 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).
1. RECOMMENDATION: Conduct a public hearing to receive comments on the 2009-2010
proposed Action Plan and adopt a resolution approving the Community Development
Block Grant projects and authorizing the City Manager to sign all documents required by
HUD.
2. BACKGROUND: The primary objective of the Cormnunity 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."
Requests for fimding for projects and programs must address not only the national
objective, but also the Council's local priorities as outlined in the 2005-2010
Consolidated Plan, the document required by HUD to serve as a five-year plamling tool
and as our application for federal funding. Those priorities are:
1. Serve Petaluma's senior population.
2. Serve Petal una's youth.
3. Serve persons with special needs
4. Provide rental units with support services for low/mod income households.
5. Improve accessibility in public facilities.
6. Promote housing choices and opportunities.
7. Provide homeownership units with specific preferences.
S. Provision of projects and programs which encourage principles of sustainability.
9. Provision of projects and programs which enhance childcare capacity.
Having a designation as an entitlement community allows the City to not only receive
direct funding from HUD for the Block Grant Program, but also to apply directly for
statewide and other federal housing fiords. Since we gained entitlement status in 1994,
the City has received approximately $5,000,000 in Block Grant funds, $10,000,000 via
six HOME program grants, a $250,000 BEGIN grant for first-time homebuyers, six HUD
grants for seniors and persons with a disability and annual Continuum of Care homeless
projects. The City also receives invaluable information and training opportunities
because of our entitlement status.
3. DISCUSSION: The Petaluma Block Grant application process consists of a public
notice, application packets to community agencies and other city departments, a tecluiical
assistance workshop, and one-on-one application assistance to any group which requests
it. Six applications amounting to $319,020 were received from nonprofit service
providers. In order to acconunodate each nonprofit request, only a portion of the
allowable 20% for program administration will be taken from CDBG funding and the
balance will be made up from other housing funds.
A synopsis of each application is included in Exhibit #2. (If you wish to see one or more
complete applications, please feel free to call Bonne Gaebler at 778-4484.)
The City's entitlement is based on a complex formula calculated by HUD and the Office
of Management and Budget. The formula includes data on population, poverty statistics,
employment information, housing conditions, and the like. There are two statutory
restrictions on the funds: (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
Petaluma's share of 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." This federally imposed cap
precludes funding of many applicants; the nonprofit applicants are familiar with this
limitation.
2009-2010 Entitlement (Est.) $343,000
Administration Cap 68,600
Public Service Cap 51,450
Exhibit 41 outlines, in table form agency requests, staff recommendations and totals.
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.
Some of the applicants who cannot be funded due to the limitations of Block Grant funds
will apply for funding from the Housing Program which includes the Petaluma
Cormnunity Development Commission Low -Mod Housing Fund and proceeds from the
In -Lieu Housing Fund. The Housing Program and Budget will be presented during May
budget workshops.
4. FINANCIAL IMPACTS: The Block Grant Program is fiscally self-sustaining. All
administrative, project, and program expenditures are covered by the entitlement
revenues. In accordance with CDBG regulations, the City of Petaluma will publish its
2008-2009 Action Plan. Staff will respond to any community questions and continents.
The Action Plan will be submitted to HUD by May 15, 2009; finds are available as of
July 1, 2009.
EXHIBIT #1
2009-2010 CDBG PROPOSALS
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Project
Funds
Agenev
Descrintion
Requested
1. City
Program Admin.
23,980
2. Disability Legal
Rehab of Housing for
40,000
Services Center
Persons with a Disability
(formerly CRI)
3. COTS
Maintenance
31,570
@Mary Isaak Center
4. PEP
Fire safety and
Energy Update
24,000
Senior Housing
5. PPSC
Senior Meals
51,450
6. PPSC
Rehab/Senior Cafe
150,000
4. Northbay Childrens
Rehab of Childrens
20,000
Center
Center Kitchen
2008-2009 TOTALS
$343,000
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EXHIBIT #2
SUMMARY OF REQUESTS AND RECOMMENDATIONS
(Correspond in Numbering to Table in Exhibit #1)
1. The City of Petaluma is allowed a total of $68,600 to administer the CDBG program, under
the Administrative Cap rule. The administrative funds are utilized for salaries, supplies, Block
Grant's share of intragovernmental transfers, etc. Funds are utilized for various consulting
agreements, including Petaluma's share of administering the County -wide Continuum of Care
Program. Because of the decrease in the City's entitlement for this fiscal year, staff is
recommending reducing administration costs from this source.
Total Petalumans served: N/A
Staff recommendation: $23,980
2. Disability Services Legal Center (Formerly Community Resources for Independence)
has requested $40,000 for its program of "housing accessibility modifications" which helps
eliminate barriers in homes of persons with disabilities. It has been estimated that keeping
individuals safely in their own homes and out of convalescent hospitals saves taxpayers
thousands of dollars per month and greatly enhances the disabled person's quality of life.
Because of the City's decreased entitlement, staff is recommending a partial request at this time.
Total served: 20 persons with a disability
Staff recommendation: $40,000
3. The Committee On The Shelterless (COTS) has requested $33,570 to be utilized for
maintenance of the interior and exterior at the Mary Isaak Center. Tasks include replacement of
baseboards in the first floor lobby, wall repair, interior door replacement, stucco repairs on the
exterior of the building, and other maintenance needs.
Total served: 500 individuals annually
Staff recommendation: $33,570
4. PEP Housing has requested $12,000 to remove and replace 11 water heaters and 10 exterior
water heater doors, to be replaced with Energy Star water heaters. PEP will also replace
outdated and dysfunctional fire panels at their Lindberg Lane community.
Total Served: 27 residents
Staff recommendation: $24,000
5. Petaluma People Services Center (PPSC) has requested $51, 450 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 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: 15,000
Staff recommendation: $51,450
6. PPSC has also requested $150,000 to complete the remodel and expansion of the Senior Cafe
located at 211 Novak Drive. The existing cafe is 18 years old and the senior clientele has
expanded greatly while the building has not. Especially critical is the lack of adequate ldtchen,
food storage, bathroom, and office space. This project is typical of the "mix and match" funding
strategy needed to complete our projects. This request seeks CDBG funding for a part of the cost
to add approximately 500 square feet to the existing site; in mid -fiscal -year budget hearings, the
Council awarded $75,000 to PPSC for the purchase of new, energy saving appliances; and PPSC
will apply for the balance of the needed project funds at FY 08-09 budget hearings from other
Housing Funds.
Total Served: 275 seniors
Staff recommendation: $150,000
7. North Bay Childrens Center is a new applicant to the Petaluma CDBG program but is not
new to service to our children. The organization was founded in 1986, dedicated to providing
quality child development programs addressing child care needs of the community. NBCC is
requesting funding for the renovation of their existing kitchen facility at their McDowell Child
Development Campus. The kitchen was originally designed to handle only snacks and they now
serve over 100 meals per day.
Total served: 100 meals/day
Staff recommendation: $20,000
EXHIBIT #3
APPROVING THE FY 2009-2010 ACTION PLAN OF THE PETALUMA
CONSOLIDATED PLAN STRATEGY AND PROPOSED USE OF COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDS
WHEREAS, the City of Petaluma is an entitlement community under the jurisdiction of the
Department of Housing and Urban Development (I -IUD) Community Development Block Grant
Program; and
WHEREAS, as part of the Consolidated Plan Strategy, IIUD 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 2005-2010 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;
THEREFORE BE IT RESOLVED by the Petaluma City Council that the Action Plan as
shown below is approved and adopted for FY 2009-2010.
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AGENCY PROJECT ALLOCATION
City Administration $23,980
Disability Legal Services
Center(CRI) Access for Disabled/
Housing $40,000
COTS Maintenance@
Mary Isaak Center $33,570
PEP Housing Fire Safety and
Energy Updates $24,000
Petaluma People Seniors/Home Meals $51,450
Service Center
Petaluma People Rehab/Senior Cafe $150,000
Service Center
North Bay Childrens
Center Rehab of Campus Kitchen $20,000
TOTAL $343,000
BE IT FURTHER RESOLVED that the City Manager is hereby authorized and directed to
execute the required Standard Form 424 and to submit that and all other required forms and
certifications to FIUD; and that in the event of budget changes due to a reduced or enhanced
grant allocation or project/program changes, the City Manager is hereby authorized, under the
provisions of the City Charter, to transfer appropriations between the programs listed in the
Action Plan.
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