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Home My WebLink About2009/06/02 Item 6 CITY COUNCIL AGENDA STATEMENT ,r, "1IJ. . 1[.' , JUNE 2, 2009, Item (0 ITEM TITLE: Pli13LIC HEARING TO CONSIDER A1VIENDING THE FISCAL YEAR 2008/2009 BUD ANNUAL ACTION PLAN RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CBULA VISTA APPROVING I) AN A.MENDMENT TO THE FISCAL YEAR 2008/2009 BUD A.NNUAL ACTION PLAN TO ALLOCATE $536,132 OF COMJv[UNITY DEVELOPMENT BLOCK GRAt"lT RECOVERY PROGRAM FUNDS AND REPROGRAM $508,744 OF PRIOR YEAR COMMliNITY DEVELOPMENT BLOCK GRA.NT ENTITLEMENT FUNDS FOR ELIGIBLE PROJECTS; 2) AUTHORIZING A.N il',iTER-PROJECT TRANSFER ($160,000) FROM CDBG ENTITLEMENT PROJECT STM- 354 TO DR-133; AND 3) AUTHORIZING THE CITY MANAGER TO EXECUTE ANY DOCUMENTS NECESSARY TO OBTAIN THE BUD GRANT FUNDS SUBMITTED BY: DEPUTY C!.1;Y MANAGER 1 DEVELOPMENT SERVICES DIRECTO~ CITY MANAGERr 4/5THS VOTE: YES D NO 0 REVIEWED BY: SUMMARY The purpose of the public hearing is to solicit public input on the proposed amendment to the 2008/2009 Annual Action Plan to allocate $536,132 of new Community Development Block Grant Recovery Program (CDBG-R) funds established by the American Recovery and Reinvestment Act (Recovery Act) and reprogram $508,744 of prior year Community Development Block Grant (CDBG) funds for eligible projects. 6-1 6/02/09, Item ~ Page 2 ENVIROI'iMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed action( s) for compliance with the National Environmental Policy Act (NEPA) due to the use of federal Community Development Block Grant (CDBG) funds and has determined that pursuant to Section 58.30 (b), Subpart D, Title 24 of the Code of Federal Regulations, further review and environmental determination as appropriate, will be required for each project identified in this staff report following preparation of a more precise scope of work. Thus, no further ]\.TEP A environmental review or documentation is necessary at this time. RECOMMENDA nON Council conduct the public hearing and adopt the resolution. BOARDS/COMMISSION RECOMMENDA nON Not Applicable DISCUSSION On March 6, 2009, HUD notified the City of Chula Vista that the City is eligible to receive up to $536,132 of CDBG-R funds, one-time stimulus funds authorized under the American Recovery and Reinvestment Act. The intent ofCDBG-R is to promote economic recovery. In order to receive the grant funds, the City must submit an amendment to the existing Annual Action Plan to HUD by June 5, 2009 identifying how funds will be allocated. In addition to the CDBG-R funds, staff also monitors prior year CDBG entitlement funds to ensure that these funds are invested into the community in a timely manner. Funds that are leftover from completed projects or stalled projects are reprogrammed to other eligible activities. Staff has determined that there are $508,744 of funds available to be reprogrammed for this amendment. Substantial Amendment The goals of the Recovery Act are focused on stimulating job creation and long-term economic benefit. After review of the eligible uses, identification of projects, and public input, staff is proposing allocation of CDBG-R funds for two additional projects that most directly address the intent of the Recovery Act and reallocating CDBG entitlement funds to two projects. A summary of the proposed use of these funds is included as Attachment 1. The amendment for CDBG-R projects includes a general information section, a description of the City's citizen outreach efforts and public comments received, a brief description of the distribution of funds, and an estimated budget. The draft CDBG-R forms are included as Attachment 2. The following is a breakdown of the source and use of funds; 6-2 6/02/09, Item -'- Page 3 Section 108 Loan Repayment Third A venue Street Improvement Project Delay in Project (Orancre to Main) '=~-~-"~""~~~~e~~- -,-~, !S..u.l5!<itji.Ji2i.G~.!?GJ'~y1ii.@!!I.~:i,cf!rjlW*~.!J'@"r;C"~I"i,; ,':'~i$.t;91l.;Z4f!'i $298,744 ~~)l~:i: mi'o-eet .' Affordable Housing Acquisiti onlRehabilitation Project (Project Recommendation to City Council at a later date) Emerson Street Drainage- DRl33 Su lemental Fundincr) iISJ!~~.;rGlrif~~~om:~4.! Green Careers Capacity Building Program (New) Third A venue Streets cape Project-STL362 (Supplemental $ 500,000 Funding) i~Jfbt~lli1!(5I!XfQ[g~iiQA4]~ ~~!ilN~~ ~E!~~~~~~.;'~~Q1~Wim $ 348,744 $ 160,000 $ 36,132 CDBG - Recovery Grant New Grant ;>, ..:....."'!.,<...''''''~;:.t.,...'''''_.''"~..''''.--',.w,.."".:.i''............t....)''''''~~'''~f.''l''';>;\IlIl''t-Y'''r!f,~,.<>t~''''''1\,'.''''''"~''\~ :. '"', d~~'" '~'.> .0 . _, '.k >.=..l"h_~ .0 "''''IV::\)[J''::~'''''i!o;ej'~'T);~>''''-'- "..,." . :~_u,l:itQt~!":c;G.p.Bg7E:Ava!!;Ible.,,,,."l~ji;,", le.:: ""'.: '1ili,$ 5,'!!;J32,: .~~_dJ."ntW~q~t",,~li!J;"1,-''d:~~'1''_~~'>~/,t?'~'''~~~~~ 1tT~\!!:t~fG.!l!?gJ!!l;<!~ill!~9l~i~:-:i!ili!p.!.~~~"f-j ~$}W11in2~ . Staff will submit the Action Plan Amendment by June 5, 2009. HUD expects grantees to implement projects shortly after HUD approval of the substantial amendment Citizen Participation Process City Staff has been working since the authorization of ARRA to encourage input on the potential projects in Chula Vista. The City of Chula Vista held two workshops to educate residents of potential American Recovery and Reinvestment Act funds coming to the City, and to receive feedback and project suggestions. As required, a 15-day comment period to allow for the public to review the proposed amendment and make comments or suggestions began May 15th and will end on May 30th, 2009. As of the date of this report, there were no comments received. Comments received during the remainder of the comment period and at this public hearing will be incorporated into the amendment. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found a conflict exists, in that Councilmember Steve Castaneda has property holdings within 500 feet of the boundaries of one of the properties which is the subject of this action, Third Avenue Streetscape Project (STL362). 6-3 6/02/09, Item JL Page 4 CURRENT YEAR FISCAL IMP ACT A grand total of $1,044,876 Federal grant funds will be appropriated in the corresponding fiscal year City Budget, as described below: Emerson Street Drainage (DR133) Inter-Proj ect Transfer - already $160,000 budgeted in the FY09 Budget CDBG Affordable Housing Appropriations at a later date, $348,744 AcquisitionlRehabilitation Project when a proposed project lS recommended CDBG Appropriations at a later date, $36,132 Green Careers Capacity Building Program when a contractual arrangement is CDBG-R recommended Supplemental funding included in $500,000 Third Avenue Streetscape Project (STL362) the FY10 Capital Improvement Budget CDBG-R Total Funds $1,044,876 ONGOING FISCAL IMPACT There is no ongoing fiscal impact. The City receives annual entitlements of CDBG, and CDBG-R funds are one-time grant funds. City staff time reimbursement to administer these grants is covered through administrative funding received under the CDBG annual grant. Maintenance expenses are not eligible costs under any of the grant programs. Therefore, ongoing maintenance expenses related to the Third A venue Streetscape Project and the Emerson Street Drainage Project will be the sole responsibility of the City. ATTACHMENT 1. CDBG & CDBG-R Proposed Activities 2. 2008/2009 Draft CDBG-R Annual Action Plan Amendment Prepared by: Jose Dorado, Project Coordinator II, Development Services Department 6-4 ATTACHMENT! CDBG & CDBG-R PROPOSED ACTIVITIES Affordable Housin!l thou!lh Acquisition/Rehabilitation is a placeholder for future affordable housing construction, acquisition, rehabilitation, housing site improvements, and other activities, to stimulate housing and community development of lower income persons. Emerson Street Draina!le is an existing eIP (DR-l33) for the construction of a drainage facility from Elm Avenue north of Emerson Street to Naples Street, between Fifth A venue and Weisser Way in the City of ChuJa Vista. The project will install approximately 3,040 linear feet of new storm drain infrastructure. Green Careers Capacity Buildin!l Program is a proposed job training project in conjunction with Southwestern College and the City's Home lJpgrade/Carbon Downgrade program. A new training program will be implemented at Southwestern College for future jobs in "Green Building Technologies". With future emphasis placed on sustainable development there will be a large demand for workers trained in areas such as green building design, solar panel installation, and home energy ratings. Once the curriculum is established, CDBG-R funds will be available for low income Chula Vista residents to pursue the program at no cost with this scholarship. The City's Conservation & Environmental Services Department will encourage apprenticeship/employment opportunities through their Energy Efficiency & Conservation Block Grant-funded projects and programs. Third Avenue Streetscape Proiect is an eXIstmg CIP (ST1362) that. will significantly improve street design and accessibility along Third Avenue. The project was recently recommended for Smart Growth Incentive Program funding through SANDAG. With the SAl'\iDAG funds ($2M) and a commitment of $800,000 of Redevelopment funding the project can be fully designed from H St. to E St., but can only be constructed from H St. to Park Way. These additional funds will allow an additional phase to be constructed. 6-5 A IT ACHMENT 2 City of Chula Vista Community Development Block Grant Recovery Act Program (CDBG-R) Third Substantial Amendment to the 2008/2009 Annual Action Plan Prepared by: CITY OF CHULA VISTA .6i Redevelopment<! & Housing Contact Person: Jose Dorado, Project Coordinator 276 Fourth Avenue, Chula Vista, CA 91910 Telephone: (619) 476-5375 Facsimile: (619) 585-5698 www.ci.chula-vista.ca.us - DRAFT -CDBG-R SUBSTANTIAL AMENDMENT Jurisdiction(s): Citv of Chula Vista . www.chulavistaca.f!ov/cvrh CDBG-R Contact Person: Jose A. Dorado Address: 276 Fourth Avenue Telephone: 619-476-5375 Fax: 619-585-5698 Email: idoradorWci.chula-vista.ca.us Jurisdiction Web Address: ENSURING RESPONSIBLE SPENDING OF RECOVERY ACT FUNDS Funding available under the Recovery Act has clear purposes - to stimulate the economy through measures that modernize the Nation's infrastructure, improve energy efficiency, and expand educational opportunities and access to health care. HUD strongly urges grantees to use CDBG- R funds for hard development costs associated with infrastructure activities that provide basic services to residents or activities that promote energy efficiency and conservation through rehabilitation or retrofitting of existing buildings. While the full range of CDBG activities is available to grantees, the Department strongly suggests that grantees incorporate consideration of the public perception of the intent of the Recovery Act in identifying and selecting projects for CDBG-R funding. A. SPREADSHEET FOR REpORTiJVG PROPOSED CDBG-R ACTIVITIES Grantees must provide information concerning CDBG-R assisted activities in an electronic spreadsheet provided by HUD. .The information that must be reported in the spreadsheet includes activity name, activity description, CDBG-R dollar amount budgeted, eligibility category, national objective citation, additional Recovery Act funds for the activiry received from other programs, and total activity budget. An electronic copy of the spreadsheet and the format is available on HUD's recovery website at http://www.hud.2:ov/recoverv. PLEASE REFER TO ATTACHMENT 1 OF THIS SUBSTANTIAL AMENDMENT 6-7 B. CDBG-R INFORM4TlON BY ACTIVITY (COMPLETE FOR EACH ACTIVITY) (1) Activity Name: (Grantees should follow the same order that activities are listed in the Spreadsheet for Reporting Proposed CDBG-R Activities - this will allow HUD to easily match activity narratives with the information provided in the spreadsheet.) . Third A venue Streetscape Project Green Careers Capacity Building Program (2) Activity Narrative: In addition to the Spreadsheet for Reporting Proposed CDBG-R Activities, grantees must provide a narrative for each activity describing how the use of the grantee's CDBG-R funds will meet the requirements of Title XII of Division A and Section 1602 of ARRA. The grantee's narrative must also state how CDBG-R funds will be used in a manner that maximizes job creation and economic benefit in relation to the CDBG-R funds obligated, and will address the Recovery Act, by: . Preserving and creating jobs and promoting economic recovery; . Assisting those most impacted by the recession; . Providing investment needed to increase economic efficiency; . Investing in transportation, environmental protection, or other infrastructure that will provide long-term economic benefits; . Minimizing or avoiding reductions in essential services; or . Fostering energy independence. Response: Projects approved by the City maximize job creation/retention and economic benefit through investment in infrastructure improvements and public services that will provide a long-term benefit. These projects will spur economic growth by putting people back to work as the unemployment rate in Chula Vista has grown substantially over the last year. The highest number of jobs that have been cut during this time period have been those related to the construction industry due to the slowdown in new home construction and number of building permits issued. The City's CDBG-R projects will address the employment issues, and will make a 'significant impact to the City in providing employment opportunities. Please refer to number 4 below and Attachment 1 for a more detailed description of each activity. (3) Jobs Created: (Report the number of full- and part-time jobs estimated to be created and retained by the activity (including permanent, construction, and temporary jobs)). Response: Activity- Jobs estimated created or retained per project (to the greatest extentfeasible) are listed below: Third A venue Streetscape Project: Green Careers Capacity Building Program: 10 retained 6 jobs created 2 6-8 (4) Additional Activity Information: (A description of how the activity will promote energy conservation, smart growth, green building technologies, or reduced pollution emissions, if applicable.) The Third A venue Streetscape will improve and increase the walkability and pedestrian safety of this neighborhood with new lighting, sidewalks and access ramps. Through the public outreach process, residents have stated that the poor infrastructure in this area has limited their ability to walk, bicycle ride, access transportation hubs, and/or shop at the local neighborhood businesses. These improvements will eliminate some of the architectural barriers; poor infrastructure, that will, in turn allow people to leave their cars and reduce air pollution by promoting bicycle riding and walkability. All infrastructure improvement projects are required to comply with the City's Mandatorv Recvcling: and Construction Demolition Debris CYMC 8.25.095. . At least a minimum of 90% of inert materials (rock, dirt, concrete, etc.) and 50% of the remaining construction and demolition waste generated must be recycled. . Divert 90% of inert materials and 50% of all other debris from landfill disposal. The Green Careers Capacity Building Program jobs will provide students with the skills necessary to be employed in fields that promote sustainability such as green building design, solar panel installation, energy efficiency audits, and installation of home energy star rated appliances and windows. (5) Responsible Org:anization: (Contact information for the organization that will implement the CDBG-R activity, including its name, location, and administrator contact information) Third Avenue Streetscape Project- Contact: Jose A. Dorado, Project Coordinator City of Chula Vista Redevelopment and Housing 276 4th Avenue Chula Vista, CA 91910 T: 619-476-5375 F: 619-585-5698 Green Careers Capacity Building Program Contact: Angelica Davis, Project Coordinator City of Chula Vista Redevelopment and Housing & City of Chula Vista 276 4th Avenue Chula Vista, CA 91910 T: 619-691-5063 F: 619-585-5698 3 6-9 Provide a summary of public comments received to the proposed CDBG-R Substantial Amendment. Note: A Proposed CDBG-R Substantial Amendment must be published via-the usual methods and posted on the jurisdiction's website for no less than 7 calendar days for public comment. Response: Consistent with our Citizen Participation Plan, City of Chula is undertaking several activities to provide reasonable notice of and an opportunity to comment on this proposed substantial amendment to the 2008/2009 Action Plan. A Public Notice for comments on the substantial amendment and the opportunity for public comment is being published in summary form in the Star News, the newspaper of general circulation for Chula Vista, on May 15,2009. The notice includes a description of the contents and purpose of the substantial amendment. Copies of the proposed amendment are being made available at the City of Chula's Redevelopment and Housing website and office. The public comment period is open for a IS-day period through May 30, 2009. Any public comments received will be taken into consideration prior to the submittal of this amendment. The public will have a fInal opportunity to comment on the proposed amendment on June 2, 2009 when the City Council considers adoption of the amendment at a public meeting. This section is scheduled to be completed after the close of the public comment period. C A UTHORIZEIJ SIGIV.4 TURE By signing this application, 1 certifY (1) to the statements contained in the list of certifications and (2) that the statements herein are true, complete, and accurate to the best of my knowledge. 1 also provide the required assurances and agree to comply with any resulting terms if 1 accept an award. 1 am aware that any false, fictitious, or fraudulent statements or claims may subject me to criminal, civil, or administrative penalties. (U.S. Code, Title 218, Section 1001) Signature/Authorized Official Date Title 4 6-10 CDBG-R Activity Data Spreadsheet Jurisdiction/Grantee Name: City of Chula Vista CDBG-R Fomula Grant Amount: $536,132 m I ~ ~ Third Avenue Street Scape Street design and accessibility improvements along Third Avenue. Leveraging with SANDAG funds ($2m) and a commitment of $800,000 of City Redevelopment funding the project can be fully designed Ii'om H St. to ESt., but can only be constructed li'om H St. to Park Way. CDBG-R funds funds will allow an additional phase to be completed, perhaps to F St. 570.201 (C) Public Improvements 570.208 (a)(1) Activities Benefiting Low- and Moderate Income Persons-Area benefit $500,000 $ 2,800,000 $ 3,300,000 Green Career Capacity Building Program A proposed job training projcct in conjunction witll Southwestern College and the City's Home Upgrade/Carbon Downgrade program. A new training program will be implemented at Southwestcrn College for future jobs in "Green Building Technologies". The 570.208 (a)(1) City's Conservation & Environmental Activities Services Department will encourage Benefiting Low- and Moderate apprenticeship/employment opportunities Income through their Energy Efliciency & Persons- Conservation Block Grant-funded projects 570.201 (E) Limited and programs. Public Services Clientele $ 36,125 $10,000 $0 $ 46,125 Attachmenll RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING I) AL'\i AMENDMENT TO THE FISCAL YEAR 2008/2009 HUD ANNUAL ACTION PLAL'\i TO ALLOCATE $536,132 OF COMMUNITY DEVELOPMENT BLOCK GRANT RECOVERY PROGRAM FUNDS AND REPROGRAM $508,744 OF PRIOR YEAR COMMUNITY DEVELOPMENT BLOCK GRANT ENTITLEMENT FUNDS FOR ELIGIBLE PROJECTS; 2) AUTHORIZING A.N INTER-PROJECT TRAL'\iSFER ($160,000) FROM CDBG ENTITLEMENT PROJECT STM-354 TO DR-133; AL'\iD 3) AUTHORIZING THE CITY MANAGER TO EXECUTE AL'\iY DOCUMENTS NECESSARY TO OBTAIN THE HUD GRANT FUNDS WHEREAS, on March 6, 2009; the U.S. Department of Housing and Urban Development (HUD) notified the City of Chula Vista that it is eligible to receive $536,132 of Community Development Block Grant funds under the American Recovery Reinvestment Act ("ARRA"); and WHEREAS, in order to receive the grant funds, the City must submit to HUD an amendment to the existing Annual Action Plan by June 5, 2009, identifying how the funds will be allocated; and WHEREAS, $508,744 of un-programmed CDBG Entitlement Funds are available for reallocation to eligible activities; WHEREAS, staff has identified four eligible activities for use of CDBG-R and CDBG- Entitlement Funds; WHEREAS, the City has followed its Citizen Participation Plan and held a public hearing on June 2, 2009 and released the 2008/2009 Amended Annual Action Plan for a public review period from May 14, 2009 through May 30, 2009 at which time public testimony was received and considered by the City Council with respect to the 2008/2009 Amended Annual Action Plan; and WHEREAS, in addition to submitting the amended Annual Action Plan to HUD, the City is required to execute an agreement with HUD for use of CDBG-R funds; and WHEREAS, the City desires to obtain the CDBG-R grant funds from HUD so it may later, through the budget process, appropriate the funds received from the grant to fund and expend in a manner consistent with the Community Development Block Grant Recovery Act Program. 6-12 Resolution No. 2009- Page 2 WHEREAS, staff is recommending transferring the remaining balance of $160,000 from completed CDBG entitlement project STM-354 to DR-133; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista hereby approves the amendment to the fiscal year 2008/2009 HUD Annual Action Plan to allocate $536,132 of Community Development Block Grant Recovery Program Funds and reprogram $508,744 of prior year Community Development Block Grant Entitlement funds for eligible projects, authorizes an inter-project transfer ($160,000) from CDBG entitlement project STM-354 to DR-133, and authorizes the City Manager to execute any documents necessary to obtain the HUD grant funds. Presented by: Gary Halbert Deputy City Manager/ Development Services Director C.\Documents and Settings\cherylplLocal Settings\Tcmporuy Internet FilCS\OLK7E\CDB~11i3 final6.2.2009.doe