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HomeMy WebLinkAbout1991/05/07 Item 17 ITEM TITLE: RESOLUTION: SUBMITTED BY: REVIEWED BY: COUNCIL AGENDA STATEMENT Item 11 Meeting Date 05/07/91 Public Hearing: Housing and Conununity Development needs for the 1991-92 Conununity Development Block Grant (CDBG) Program, including consideration of funding requests for public services, community development, and capital improvements Approving the reallocation of $119,940 from the Norman Park Senior Center Renovation Project to the Fourth and Orange Park Development project Conununity Development Director ~ City Manager i~ (4/5ths Vote: Yes X No ) () The City of Chula Vista will receive $1,297,000 in 1991-92 CDBG entitlement funds and anticipates receiving CDBG program income of about $90,000 from the Housing Rehabilitation revolving fund. Two public hearings on housing and conununity development needs are held to provide for citizen participation and public conunent on proposed projects, the program budget and the Conununity Development Plan. The first public hearing was held on April 17th before the Montgomery Planning Committee and the second is this public hearing before the City Council. No staffrecommendations are being made at this time and the City Council is not exPected to take anv action on the orooosed budget other than to give desired direction. After thorough consideration of the public conunent, staff will present funding reconunendations for Council action at the meeting on May 21st. The accompanying resolution reallocates $119,940 from the Norman Park Senior Center Renovation project to the Orange and Fourth Park Development project. This action is requested now in order to expedite the purchase of the final parcel of Park property. It is proposed that the Norman Park funding be replaced with a new allocation from 1991-92 CDBG funds. The 1991-92 CDBG Notebook contains the Program Summary, Funding Recommendations, and Project Descriptions. Page references are to pages in the Notebook. 11-1 P!!ge 2 Item .11 Meeting Date 05/07/91 RECOMMENDATION: That the City Council: 1. Conduct a public hearing on housing and community development needs and accept the staff report on the proposed 1991-92 CDBG program. 2. Adopt the resolution approving the reallocation of $119,940 of CDBG funds from the Norman Park Senior Center Renovation project to the Fourth and Orange Park Development project. BOARDS/COMMISSIONS RECOMMENDATION: The Montgomery Planning Committee has reviewed and recommended Community Development and Capital Improvement projects in the Montgomery area (see page 15). The Commission on Aging, Human Relations Commission, and Youth Commission have reviewed the social service funding requests and have made their recommendations (see recommendations page 16 and minutes page 19). The Childcare Commission has reviewed just the requests from childcare providers (see minutes on page 19). The Housing Advisory Committee is reviewing housing-related proposals and will make recommendations on May 15. DISCUSSION: PROPOSED BUDGET For 1991-92, the City of Chula Vista has $ 1,387,000 of CDBG funding, which includes entitlement and program income. Forty-three eligible requests for funding were submitted to the City (or presented by the City) as follows: Proe:ram Area Requests Amount Social Services 27 $ 528,979 Community Development 5 208,995 Capital Improvements 7 1,085,829 Planning and Housing 5 88,320 Administration 150.000 TOTAL $2,062,123 11..2.. Page 3 Item ~ Meeting Date 05/07/91 The total amount of funding requests exceeds the total amount of CDBG revenue by $675,123. Due to the cap on social service spending, the social service budget will need to be reduced by at least $315,179. The proposed CDBG budget is on pages 1 and 2. In order to be eligible for funding, a project or service must address at least one of the CDBG national objectives: 1) Benefit primarily low and moderate-income families, 2) Aid in the prevention or elimination of slums or blight, or 3) Meet other community needs having a particular urgency. The City has previously adopted the 1989-92 Community Development Plan (see pages 5 and 6). This Plan is now proposed for revision as the 1990-91 to 1992-93 Community Development Plan (see pages 3 and 4). This Plan outlines the City's specific community development goals and objectives for the CDBG program and provides a guide for funding recommendations. (In order to be consistent with our 3-year certification period, the proposed Plan is designed to be retroactive to the current fiscal year). In order to fund three of the Community Development proposals (Building and Housing Community Appearance, SBCS Graffiti Eradication, and SBCS Community Development Corp.) the City will need to make a finding that these activities are necessary and appropriate in order to meet the goals and objectives of the City's Community Development Plan. SOCIAL SERVICE FUNDING REOUESTS The CDBG regulation on social services spending has been changed this year to allow the City to allocate 15% of the CDBG entitlement and program income. The City may decide whether it wants to include program income in the calculation or not. This year the City has $528,979 in public service funding requests. At the 15% level, the total social services funding available will be $213,800 if program income is included in the calculation, or $194,550 if it is not. All of the public service funding requests are CDBG-eligible as they meet the objective to primarily benefit low and moderate-income families. The Commission on Aging, Human Relations Commission, and Youth Commission have reviewed the social service funding requests and have made their recommendations (see pages 16-18). All three Commissions favored the $213,800 social services budget and made their recommendations based on this level. Staff has prepared a Proposal Comparison Table for the Commissions and Council to use in evaluating the proposals (see pages 28A-30B). This Table can be used in conjunction with the Social Service Funding Policy and Proposal Evaluation Matrix (see pages 32-33B) and Social Service Plan Recommendations (see page 31). 11-3 Page 4 Item ~ Meeting Date 05/07/91 As we see the requests for CDBG funding increase from one year to the next, the funding decisions become more difficult. Social service programs with previous allocations of CDBG funding keep coming back for more and the number of new programs seeking funding steadily grows. As a general policy, the City has sought to discourage dependence on CDBG funding and to encourage seed funding for new programs. Unless otherwise directed by Council, staff will use this guideline in making staff recommendations and will seek to recommend a minimum of 25% ($53,450) of social service funds be allocated to new programs. Two City Departments have requested a total of $108,653 of CDBG social service funding. Parks and Recreation has requested $49,000 for the Chula Vista Human Services Center and $12,212 for the Summer Day Camp. The Library has requested $41,441 for the Chula Vista Literacy Team. If these programs are not funded with CDBG monies, then the City will have to look to other funding sources to continue these programs. COMMUNITY DEVELOPMENT FUNDING REOUESTS This year the City received proposals from neighborhood-based non-profit organizations and local development corporations. These proposals are not strictly social service nor capital improvement, but they all are CDBG-eligible activities. The proposals are grouped under a new category called "Community Development" and include the following types of activities: 1) neighborhood revitalization, 2) affordable housing development, 3) capital improvement projects for non-profit agencies. A total of $208,995 in requests were received for these activities, as follows: Neighborhood Revitalization Neighborhood Improvement Program-Spot Blight $ 55,000 In cooperation with local neighborhood and civic groups, the Building and Housing Dept. proposes to expand the Neighborhood Improvement Program with a series of neighborhood-based code enforcement campaigns to remove spot blight in deteriorating neighborhoods. The funding requested will pay for dumpsters and equipment. Graffiti Eradication $ 43,245 South Bay Community Services (SBCS), in partnership with the Chula Vista Police Department, is proposing to expand graffiti eradication efforts. SBCS is requesting funds for the Program Coordinator position. Equipment and supplies will be provided through the Police Department budget. The program will serve private businesses and residences. 11,c1 Pag,e 5 Item .17 Meeting Date 05/07/91 Affordable Housinl! Development Chula VISta Community Development Corporation $ 48,000 South Bay Community Services (SBCS) is requesting funding for the start-up of a local Community Development Corporation (CDC). The primary goal of the new CDC will be to develop affordable housing and to initiate community improvement projects. The CDC can play a vital role in local housing efforts, drawing on financial resources (private and public) for which they have been granted preference. Projected activities include preservation of "at-risk" affordable housing, rehabilitation of deteriorated apartments, construction of new units, and even economic development projects. SBCS is a well-established local non-profit with an excellent track record of developing new programs. They have already received $9,000 in funding from the Community Foundation and have plans to raise an additional $40,000 from the local business and development community for first year operating expenses. Funds will be used to hire a program coordinator and pay rent. Capital Improvement Projects for Non-profits MAAC Project Office Building Purchase $ 50,000 Funding is requested to assist with the purchase of a 10,000 sq. ft. office building at 45 Third Avenue. MAAC Project currently operates alcohol/tobacco education programs from this location and plans to move its administrative offices there. Approximate cost of the building is $750,000. Boys and Girls Qub-Public Address System $ 12,750 Funding is requested to install a public address system to link 24 program areas and offices in their 26,000 sq. ft. building. The system will provide better communication which will increase control and safety of the children. CAPITAL IMPROVEMENT PROJECTS This year, the City's CDBG budget and the CIP budget are coming before you at about the same time. (In previous years, the CDBG budget was approved prior to the CIP budget). The Council will therefore be able to consider the CIP proiects presented here in the CDBG budl!et within the context of the overall CIP prol!ram. The proposed budget for seven capital improvement projects is $1,085,829. The projects are as follows: 11-- 5 Page 6 Item --...11.- Meeting Date 05/07/91 Neighborhood Revitalization Program $ 344,279 This proposal is for design and construction of missing public improvements in Otay in the vicinity of Montgomery Elementary schoo1. This is the first phase of improvements, which includes sidewalks, curbs, gutters, and street lights. The Otay Committee recommends this proposal as the top priority for their neighborhood. One alternative source of funding for this proposal may be the Redevelopment Agency's Low and Moderate-Income Housing Fund. Staff is investigating the possibility of using these funds instead of CDBG funds. The issue being explored is whether such a use of the low/moderate funds would satisfy the State law eligibility test. Storm Drain-Sierra Way, Broadway to Colorado $ 275,000 Funding is requested to construct 2000 lineal feet of culvert in Sierra Way. The design has been completed. CDBG funds previously allocated to this project were transferred to the Norman Park Senior Center Renovation project. Park Improvements-Memorial Park Center $ 255,310 Funding is requested to replace the existing standing seam metal roof and apply stucco plaster finish to all exterior walls. Norman Park Senior Center Renovation $ 119,940 Due to the final cost of the Orange and Fourth Park parcels, funds which were previously approved to be transferred to the Norman Park project are needed to complete the purchase of the Park property. Therefore, these additional funds are needed for construction of the Norman Park Senior Center, currently underway. Drainage Improvements-Oxford Street, 2nd to Del Mar $ 55,300 Due to an increase in the cost estimate, additional funding is requested to construct these improvements. The design has been completed. Restroom Renovation-Otay Park $ 36,000 Funding is requested to sandblast interior and exterior walls and re-coat with anti-graffiti paint; install lockable gates; re-roof to improve ventilation; and install new fixtures and lighting. 11-(P Page 7 Item -----1L Meeting Date 05/07/91 Low-Income Housing Rehab for Water Conservation $ ? This idea was proposed by a member of the community as a response to the drought. As proposed, the program would provide low-interest loans or grants to owners of low-income housing to retrofit units with water-saving fixtures. Staff understands that the County Water Authority is designing a program to financially assist homeowners with retrofitting for such fixtures. Also, Chula Vista's policy for requiring no net effect by new subdivisions should further address this issue. The results of these efforts will likely obviate the need for a City loan or grant program. PLANNING. HOUSING and ADMINISTRATION The proposed budget for 1991-92 includes $150,000 for program administration and staff costs. These administrative costs represent 11 % of the total budget and include staff costs for coordination, accounting, monitoring sub-recipients, environmental review, and reporting requirements. Staff is requesting that $50,000 be allocated to economic development planning studies. During the past year and a half, the City has twice made a mid-year reallocation of CDBG monies to fund economic development planning activities. First, $50,000 was used for legal, appraisal, and consulting fees for the East H St. Auto Center project; second, $40,000 is being used for similar purposes on the Nelson-Sloan project. The proposed allocation will not be designated for any specific study but will be available as needed by the City for pre-development studies and consultant services. CDBG regulations require the City to undertake proactive Fair Housing activities. The Community Development Department is requesting $15,000 to fund a part-time Fair Housing officer and to undertake a Fair Housing assessment. In addition, San Diego Resident Relations Foundation has requested $9,900 to provide tenant/ landlord counseling and mediation services. In 1987, the City of Chula Vista developed a Social Services Plan to identify health and human service needs in the City. The Chula Vista Human Services Council is requesting $8,420 to update the Social Service Plan. Funding will be used to hire a graduate student intern to do needs assessment and demographic research. The Otay Committee has requested $ 5,000 in funding to continue volunteer community revitalization and beautification efforts, in conjunction with the Neighborhood Revitalization Program (NRP). Their activities include a Community Fair, quarterly newsletter, and neighborhood clean-up campaign. .11-1 Page 8 Item --1!l.- Meeting Date 05/07/91 NORMAN PARK SENIOR CENTER On December 18, the Council passed Resolutions 15977 and 15996 which requested the Board of Supervisors to transfer $119,940 in Urban County CDBG funds from the Fifth Avenue Street Improvement Projects to the Fourth and Orange Park Development Project, and to transfer the same amount of City CDBG funds from the Fourth and Orange account to the Norman Park Senior Center account. This pass-through was designed to avert the need for County environmental review on the Norman Park Senior Center Project. The transfer of funds from Fifth Avenue was unnecessarily delayed by County staff. In the meantime, City staff attempted to encumber the Urban County funds in order to purchase the final parcel at Fourth and Orange. As these funds are needed now in order to close escrow on the final parcel, and the Norman Park Senior Center Renovation funds will not be needed until after July 1, 1991, staff recommends that the Council reallocate $119,940 back to the Orange and Fourth Park project by the attached resolution and subsequently allocate an equal amount of 1991-92 CDBG funds to Norman Park in the final CDBG budget action. FISCAL IMPACT: The City will receive $1,297,000 in CDBG entitlement funds and about $90,000 in program income for 1991-92. The 15% cap on social services funding will limit the social services allocation to $213,800 (calculated with program income) or $194,550 (calculated with the entitlement only). This means that the $528,979 in social service funding requests will have to be reduced by $315,179 or $334,429. If the Council allocates $213,800 to social services and $238,320 to Planning and Administration, then $934,880 would remain to fund $1,294,824 in Community Development and Capital Improvement projects. In order to balance the CDBG budget, $359,944 of requested funds would need to be cut out. (This cut would be increased if the Water Conservation project is funded as no amount has yet been budgeted for this project). This is just one funding scenario; the Council may balance the CDBG budget by reducing or eliminating funding for any project in any category. Approval of the Resolution will transfer CDBG funds from Norman Park to the Orange and Fourth Park. 1991-92 CDBG funds in the amount of $119,940 will be needed to replace the transferred funds. [C:\WP51 1A-113S\CDBG-2. WPD) jJ,rI11...'o REVISED PUBLIC HEARING . Notice of PUBLIC HEARING for the COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM Chula vista residents are invited to a public hearing before the City Council of Chula vista for the purpose of hearing testimony on HOUSING AND COMMUNllY DEVELOPMENT NEEDS: TuesddY, May 7, 199tdt 4:00 P.M. City Council Chambers, Public Services Building 276 Fourth Avenue, Chula Vista Any person desiring to be heard may appear. The City of Chula vista will receive a CDBG entitlement of $1,297,000 and program income of about $90,000 for 1991-92. The City proposes to use these funds for public facilities and improvements, social services, fair housing, and other community development needs. These activities will primarily benefit low and moderate income families, aid in the prevention or elimination of slums or blight, or meet other community development needs having a particUlar urgency. Between 70 and 90% of the funds will be targeted to benefit low-income households. . The following COMMUNITY DEVELOPMENT OBJECTIVES are proposed by the City of Chula vista to meet the needs of low- and moderate-income persons: Assist SENIOR CITIZENS Provide COUNSELING and CAREER GUIDANCE Promote FAIR HOUSING Construct PUBLIC IMPROVEMENTS Assist FAMILIES IN NEED Create JOB OPPORTUNITIES Rehabilitate EX-OFFENDERS Treat FAMILY ABUSE cases Expand RECREATIONAL facilities Expand HOUSING OPPORTUNITIES The complete CDBG Budget, Community Development Plan, and related documents are available for examination at the Community Development Dept., 276 Fourth Ave and the city of Chula vista Library, 365 F st. For more information, please call David Harris at 691-5016. Any petitions to be submitted to the City Clerk must be received in the Clerk's office no later than noon of the hearing date. 1.. 7-9 . . If you wish to challenge the City's action on this matter in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Clerk at or prior to the public hearing. DATED: April 10, 1991 Beverly A. Authelet city Clerk t1~~ RESOLUTION NO. ~ RESOLUTIoN OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING REALLOCATION OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FROM NORMAN PARK SENIoR CENTER RENOVATIoN PROJECT To THE ORANGE AND FOURTH PARK DEVELOPMENT PROJECT The City Council of the City of Chula vista does hereby resolve as follows: WHEREAS, the City of Chula Vista wishes to complete the purchase of the property at Fourth and orange Avenues for the Park Development Project but requires additional funding. NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Chula vista approves the reallocation of $119,940 of CDBG funds from the Norman Park Senior Center Renovation Project to the orange and Fourth Park Development Project. 'O:r) Presented by Chris Salomone Community Development Director Bruce M. Booga City Attorney 11~J1