HomeMy WebLinkAboutAgenda Statement 1988/04/26 Item 24COUNCIL AGENDA STATEMENT
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Item 24
Meeting Date 4/26/88
ITEM TITLE: Public Hearing: 1988-89 City Community Development Block Grant
Proposals and Statement of 0 'ectives
SUBMITTED BY: Community Developm~en),t Director
REVIEWED BY: City Manager~b-~j~-~' (4/5ths Vote: Yes No X )
The Community Development Block Grant Program (CDBG) formulation for
FY 1988-89 will be a two-part City Council process. The first part is
tonight's public hearing, which is intended to give the City Council exposure
to all the CDBG proposals for FY 1988-89 and to provide for public comment on
the proposals and the program Statement of Objectives. The attached document
gives the City Council information on all proposed uses of block grant funds
and conveys the social services recommendations of the Human Relations
Commission and the Commission on Aging. No budget recommendation is made by
staff at this time. The public hearing will afford the Council the
opportunity to hear from project proponents, to identify further information
the Council may desire on the projects, and to give any desired input to
staff. The Council is not expected to give specific direction on the overall
CDBG budget at this time.
The second part of the process i s scheduled for ~1ay 10, at which time staff
will present a specific budget recommendation and any requested additional
information to the City Council. That second part of the process will not be
a public hearing, and it is assumed that the Council would only wish public
input for the purpose of obtaining significant new information.
RECOMMENDATION: That Council conduct the public hearing and accept the
report on the 1988-89 City CDBG proposals and statement of objectives.
BOARDS/COMMISSIONS RECOMMENDATION: The Human Relations Commission and the
Commission on Aging both evaluated social service funding applications. The
hontgomery Planning Committee reviewed Montgomery capital projects proposed
for funding and approved a recommended priority ranking for those projects.
The recommendations of the three bodies are explained in the 1988-89 CDBG
Budget Booklet (Attachment A).
DISCUSSION:
The City anticipates receiving $1,157,000 in 1988-89 CDBG entitlement funds.
That figure is approximately $77,000 more than the total amount of 1987-88
CDBG funds granted directly to the City and to Montgomery through the County.
There will be no separate CDBG allocation for Montgomery for the upcoming
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• Meeting Date 4/26/88
program year or in the future. In addition to new entitlement funds, the City
anticipates having $17,160.35 in prior year surplus or unused CDBG funds
available for reallocation to new projects for 1988-89, making a total of
$1,174,160.35 available for budgeting.
A total of 42 projects and proposals have been submitted for CDBG funding and
are considered eligible. To be eligible, a project must meet one of the three
basic federal requirements of: a) benefiting at least 51% low and moderate
income Chula Vista residents, b) aiding in the removal of slums and blighted
conditions, or c) addressing an immediate emergency problem.
Out of the 42 funding requests, 16 are for social service operations, 4 are
for social service capital projects, 20 are for public capital improvement
projects and the remaining two are for CDBG program administration and the
City Fair Housing Program. The total amount requested is $3,174,308 plus the
to-be-determined amount requested for the Montgomery Library.
Social Service Operations
U. S. Department of Housing and Urban Development (HUD) regulations allow a
maximum of 15% of a total grant to be applied to social service operations.
Fifteen percent of the 1988-89 City grant is $173,550. Operations funding
requests from social service agencies total twice this amount.
• A wide range of social services have been proposed for funding. Of the 16
social service operations proposals, 4 are for programs that exclusively or
almost entirely serve senior citizens and 4 are for programs that exclusively
or almost entirely serve children and youth. This portion of the CDBG budget
will require some particularly difficult choices. However, a positive aspect
of this year's social services budget is that submitted proposals address all
of the highest priority social service needs identified in the Social Services
Plan. Attachment A includes a brief summary of the identified priorities of
the Social Services Plan (Section II.c) and, in the Proposal Benefit Table
(Section II.b), an indication of how each proposal relates to the findings and
recommendations of the Plan.
Social Service Housing/Capital Projects
Although proposals in this category would benefit social service
organizations, they are not included in the social services 15% cap because
they are housing or capital projects. A brief description of the four
proposals in this category follows.
The American Legion seeks funding to demolish its existing building and
construct a new one in its same location. The existing City-owned building is
located in Eucalyptus Park. The building has been determined to be
structurally unsafe in terms of earthquake protection. The Legion has
investigated rehabilitating the existing building and has determined that it
is more cost effective to build a new facility. The Legion proposes to allow
• other social service agencies to also use the new building.
Page 3, Item 24
Meeting Date 4/26/88
• The Ota Communit Clinic is a multi-service nei hborhood d
Y Y g base clinic located
in Otay Town. It charges clients on a sliding scale and provides a wide range
of medical services. Funding is requested for a building security system and
for new carpeting and furniture upholstery.
MAAC is requesting funding for installing a parking lot at the Otay Community
Center. The organization has already received state funding to renovate and
expand the community center building. However, the City is requiring that
off-street parking be provided in conjunction with the project and the project
cannot go forward until funding for the parking lot is obtained. Otay
Community Center operates a multi-service program with a primary focus on
senior citizens. The center building is owned by the County and the land it
sits on is owned by the Chula Vista City Elementary School District.
Episcopal Community Services is proposing to establish a homeless shelter at
the corner of Orange Avenue and Hilltop Drive. Federal funding has already
been obtained for staffing and administrative overhead costs. City funding is
requested for building improvements, rent, utilities, and insurance. The
Agency also proposes to establish a service center adjacent to the shelter to
provide employment counseling and other case management for shelter
residents. Episcopal Community Services is negotiating with several other
social service agencies to have them provide staffing and/or other resources
to expand the scope of the proposed service center in order to serve the
community at large.
• City Capital Projects
Twenty public capital improvement projects requesting a total of $2,333,400
have been submitted. They include six drainage projects, six street
improvement projects, three park projects, two parking facilities projects,
one alley, a citywide wheelchair ramp program, and one new library. They have
not yet been reviewed by the City Manager's office regarding other funding
sources for these same projects or the priority of the projects for Block
Grant fund.
Thirteen of the proposed projects are located in Montgomery and 3 of the
remaining 7 projects are located partially within and outside of Montgomery.
Most notable, in terms of amount of funding requested or anticipated to be
requested, are the following five projects.
Telegraph Canyon Flood Control - This
Construction bids came in higher than
requested to make up this shortfall.
project is already under construction.
original cost estimates and $400,000 is
Montgomery Park Development - The Montgomery Specific Plan calls for
development of a park adjacent to the SDG&E powerline easement at the
southeast corner of Orange Avenue and Hermosa Avenue. The City has begun
investigating the development of this park and an estimated $5.5 million is
estimated to be needed over a three year period for land acquisition and
• design and construction of the facilities. 1988-89 CDBG funds in the amount
of $575,000 are requested for the project for first phase acquisition.
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• Meeting Date 26 88
Montgomery Library - The City is investigating the development of a branch
library in Montgomery. The area is currently considered to be underserved by
the two small libraries currently operating in the area. CDBG funds are
requested for building improvements, shelving and furniture. The amount of
requested CDBG funds is being further evaluated and will depend in part on the
decision the City makes on various lease or purchase options for the new
facility.
Norman Park Center Improvements - The existing senior center is in need of
expansion and various improvements, notably a new roof. Widening of Del Mar
Avenue is being required as a result of the project. CDBG funding in the
amount of $295,000 is requested for Master Plan and construction costs of the
project.
Fifth Avenue Street Improvements - This project has been incrementally funded
from Naples Street to Orange Avenue over the past two years. It has been a
high priority of the Montgomery Planning Committee and the section from "L"
Street to Naples Street is now proposed for funding in the amount of $205,000.
FISCAL IMPACT: The City is expected to receive $1,157,000 in 1988-89 CDBG
funds. Prior year surplus funds in the amount of $17,160.35 are available for
reallocation to 1988-89 projects. All of the eligible funding requests
received (excluding the Montgomery Library) total $3,174,308.
• WPC 3549H
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by the Cit~/Council of
Chula Vista, California
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Gated