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DATE: April 2, 2012
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Bonne Gaebler, Housing and Block Grant Administrator
SUBJECT: Public 1-Tearing to Receive Comments on the 2012-2013 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
2012-2013 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).
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 allocation of funding 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 live-year planning tool and as our application for federal funding.
DISCUSSION:
The City's CDBG entitlement has been decreasing for several years; this year saw an 11%
decrease for a FY 2012-2013 allocation of$280,097. In the past, in order to provide funding for
the worthy applications the City received, staff has recommended to the Council that other
Housing Funds be utilized —"mixing and matching" to address the council's goals to serve those
Agenda Review:
City Attorney l ! Jl Finance Director City Manager-��
most in need in the community. This year and in the foreseeable future, due to a sluggish
residential development climate and the dissolution of the redevelopment agency, the City
will no longer have those funding options. Each of the other four housing funds (I-lousing In
Lieu,Commercial Linkage, HOME, and Low-Mod Set-aside) is stagnant, decreased or totally
gone. The effect on the nonprofit housing and service providers and their clients has been
dramatic. A staff goal has been to cushion their fall by providing them with a temporary
"parachute," giving them time to, hopefully, find other funding sources.
Therefore, this year's CDBG funding recommendations are being presented to Council as part of
that larger scenario. Staff has coordinated and collaborated with the agency directors to share
responsibilities and resources and tighten their agency belts even more than usual. In response to
this fiscal reality, staff is recommending several changes from previous years: (1) for the
first time, the City needs to charge city staff costs to this program; (2) fund programs which
provide the-most basic life support services; and (3) fund the minimal number of subrecipient
agreements due to loss of staff time for project administration by facilitating coordination and
partnerships among subrecipients.
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. Six applications were received
from nonprofit service providers and City Departments (Code Enforcement).
A synopsis of each applicationis included in Attachment #3. (Complete applications are
available for viewing at the Housing and Block Grant Office, 27 Howard Street.)
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 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." This federally imposed cap
precludes funding of many applicants; the nonprofit applicants are familiar with this limitation.
2012-2013 Entitlement $280,097
Administration Cap 56,045
Public Service Cap 42,014
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Attachment 112 outlines, in table form, agency requests and staff recommendations. This table
depicts the staff recommended strategy for addressing the needs of the community and the
nonprofit requests by combining energy and expertise to leverage our limited funding.
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.
In accordance with CDBG regulations, the City of Petaluma will publish its 2012-13 Action
Plan. Staff will respond to any community questions and comments. Following a 30-day citizen
review and comment period, the Action Plan will be submitted to HUD by May 15, 2012; funds
are available as of July 1, 2012.
FINANCIAL IMPACTS:
The Block Grant Program is fiscally self-sustaining. All administrative, project, and program
expenditures are covered by the entitlement revenues.
ATTACHMENTS
Attachment #I - Resolution
Attachment#2—CDBG Proposals for FY 2012-2013
Attachment #3 — Summary of CDBG Requests and Recommendations
Attachment#4— Powerpoint Presentation
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s/hous ing/cdbgprogram/2012-13cdbgactionplanagendareponF I NA I.
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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 I-lousing and Urban Development(1-IUD) 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
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 Action Plan to
be consistent with the Consolidated Plan.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma, that
the Action Plan, identified as the "2012-2013 CDBG Proposals," as attached, is approved and
adopted for FY 2012-2013.
BE IT FURTHER RESOLVED that, should there be changes in the 2012-2013 entitlement
amount, the City Manager is authorized to increase/decrease each subrecipient's allocation
proportionately.
BE IT FURTHER RESOLVED that the City Manager, or his designee, is authorized-to sign
all program documents required by the Department of Housing and Urban Development.
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ATTACHMENT 42
2012-2013 CD13G PROPOSALS
Project Funds
Agency Description Requested Recommended
City CDI3G Staff Time. $55,933 $55,933
Code Enforcement Software
Audit
Continuum of Care
2. COTS Maintenance at the 25,120 0
Mary Isaak Center
Rebuilding Together will work with COTS to secure
donations for the necessary materials and coordinate
with potential volunteers to complete COTS' rehab needs.
3. Disability Legal Rehab of I-lousing for 20,000 0
Services Center Persons with a Disability
Rebuilding Together will coordinate with DSLC to
provide volunteers to conduct rehab activities in
homes of disabled persons.
4. Northbay Childrens Kitchen Update 34,500 0
Center
This project would increase the Center's ability to
better utilize space for both NBCC's staff and children;
important but not a "life support" project.
5. PPSC Senior Meals 42,014 42,014
6. Rebuilding Together Rehabilitation $182,150 $182,150
Working in partnership with CDIiC applicants, RTP
will continue to be the City's main rehabilitation
agency, coordinating suppliers and volunteers to•respond
to the community's rehabilitation needs.
2012-2013 TOTALS $359,717 $280,097
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ATTACHMENT #3
SUMMARY OF REQUESTS AND RECOMMENDATIONS
(Correspond in Numbering to Table in Attachment #2)
1. The City of Petaluma is allowed a maximum of$56,019 (20% of total grant) 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; various
consulting agreements, including Petalumans share 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.
Total Petalumans served: N/A
Staff Recommendation: $55,933
2. The Committee On The Shelterless (COTS)has_requested $25,120 to be utilized for
repair and maintenance projects at the Mary Isaak Center.
Total Served: 500 individuals annually
Staff Recommendation: $0
3. Disability Services Legal Center has requested $20,000 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.
Total Served: 5-10 households
Staff Recommendation: $0
4. North Bay Children's Center is requesting $34,500 to improve the organization's
capacity for serving very-low income children by adding square footage to their facility for Staff
use; thereby freeing up space for use by the children.
Total Saved: 109 children (plus teachers and staff)
Staff Recommendation: $0
5. Petaluma People Services Center (PPSC) has requested $42,014 to continue PPSC's
Home Delivered Meals Program. Through the Home Delivered Meals program, which operates
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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 21 1 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: $42.014
6. Rebuilding Together Petaluma (RTP) requested $182,150 to serve as the City's
rehabilitation arm. RIP, previously funded from the PCDC Low-Mod housing set-aside, is in its
16th 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, RIP IS able to greatly leverage CDBG's limited -
funds.
Total Rehabilitation Jobs to be Completed: 30-35
Staff Recommendation: $182.150
1826304.1
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