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HomeMy WebLinkAbout02 COMMUNITY DEVELOPMENT BLOCK GRANTAgenda Item 2 n R Reviewed: AGENDA REPO0 RT T City Manager Finance Director N/A MEETING DATE: FEBRUARY 4, 2014 TO: JEFFREY C. PARKER, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AMENDMENTS TO THE PROGRAM YEAR 2012 -2014 ACTION PLANS IMA The Housing and Community Act of 1974, as amended, created the Community Development Block Grant (CDBG) program to return federal funds to local communities for the purpose of developing viable urban communities by providing adequate housing and a suitable living environment and by expanding economic opportunities, specifically for low- and moderate - income persons. Grants are awarded to communities to carry out a wide range of community development activities directed toward neighborhood revitalization, economic development, public services activities, and the provision of improved community facilities and services. Under the CDBG program regulations, communities are required to expend CDBG monies expeditiously. City staff proposes to amend prior year Action Plans in order to reallocate CDBG funds to meet timeliness requirements of the CDBG program. Excess funds are available from projects which have not been implemented, are delayed, or no longer require further funding. A substantial amendment to an Action Plan is required when there is an increase or decrease in funds of fifty (50) percent or more allocated to a specific project or program; or a new activity not previously described in the Action Plan is to be added. RECOMMENDATION: That the City Council adopt Resolution No. 14 -16 approving substantial amendments to the Program Year 2012 -14 Action Plans to reallocate CDBG funds. FISCAL IMPACT: The proposed programs and expenditures will be implemented with CDBG funds. No impacts to the General Fund are anticipated; however, should the requested reallocation of CDBG funding to the Bocce Ball Courts not be approved, then the requested funding would come from Park Development Funds. The Old Town Study (Downtown Commercial Core Plan) has a current allocation of $199,602.71 and the proposed reallocation would add an additional $107,936.32. City Council February 4, 2014 CDBG Reallocation CORRELATION TO THE STRATEGIC PLAN: CDBG funded activities in general include: Public service, public improvement, and economic development projects which promote the vision of Tustin. These activities are directly correlated to Goal A of the City's Strategic Plan. Goal A: Economic and Neighborhood Development • Create a vision and business plan for Old Town through a collaborative, inclusive process with stakeholders from the entire community. CDBG funding will be utilized for the Old Town Study to create a vision which encourages economic growth and coordinated development for Old Town Tustin. Informational and way finding signage in Old Town Tustin will also be funded through CDBG. • Establish planning and zoning overlays in Neighborhoods of Tustin Town Center to facilitate private development. The Old Town Study (Downtown Commercial Core Plan) encompasses the Tustin Town Center area; therefore, development of planning and zoning overlays within the Neighborhoods of Tustin Town Center may be produced through the use of CDBG funding. • Strengthen and facilitate business relationships for economic development purposes. Economic incentive programs to attract businesses to the City and encourage growth of existing City businesses are being developed utilizing CDBG funding. • Assess and explore opportunities for expanding recreational activities. Improvements to the City's Park facilities are routinely funded through CDBG. Current CDBG Park projects include the Bocce Ball Courts at Peppertree Park. BACKGROUND: Under the provisions of 24 CFR 570.902 of the CDBG regulations, a grantee is considered to be timely if 60 days prior to the end of the grantee's program year, the balance in its line -of- credit does not exceed 1.5 times the annual grant (approximately $1 million). In the past, HUD has made clear its high priority to reduce the number of entitlement grantees that exceed the regulatory standard for carrying out their program in a timely manner. In an effort to do so, HUD has set a policy in which HUD will partially reduce the next grant allocation to grantees that fail to reach the timeliness standard. 0 City Council February 4, 2014 CDBG Reallocation In an effort to comply with the HUD timeliness requirements pertaining to the CDBG program, the Community Development Department (CDD) is proposing to reallocate funding from projects which are delayed, not currently active, or have excess funding to those projects which are shovel ready and moving forward. DISCUSSION: The proposed substantial amendments to the Program Year 2012 -14 Action Plans are as follows: Proposed Project Funding Reallocations From (Reallocation Proiect) Program Year To (New Protect) Funding Planning and Administration 2012 -13 Design and construction of two bocce $20,000.00 ball courts including hard -scape and seating at Peppertree Park. Economic Business Incentive Planning and Administration Planning and Administration 2012 -13 Provide informational and way finding $25,000.00 signage within Old Town Tustin. 2012 -13 Development of a Master Plan to provide $58,352.32 2013 -14 a comprehensive planned vision to $49,584.00 encourage economic development and coordinated development in Old Town. Total $152,936.32 The public was notified of the proposed amendments to the Program Year 2012 -14 Action Plans through the local newspaper, City website, and postings. The public was given an opportunity to make comments on the proposed amendments during the public comment period between January 2, 2014, and January 31, 2014. No comments have been received as of the printing of this staff report. Ryan Swiontek Senior Planner Attachment: City Council Resolution No. 14 -16 ':' V L. - e� /,- Elizabeth A. Binsack Director of Community Development RESOLUTION NO. 14-16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING SUBSTANTIAL AMENDMENTS TO THE PROGRAM YEAR 2012-2014 ACTION PLANS FOR SUBMISSION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. WHEREAS, under the Housing and Community Development Act of 1974, as amended, federal assistance may be provided for the support of community development activities which are directed toward certain specific objectives as set forth in the Act as the Community Development Block Grant (CDBG) Program; WHEREAS, the substantial amendments to the Program Year 2012-2014 Action Plans were noticed in a newspaper of local circulation, on the City website, posted at City Hall, and available for public review and comment for thirty (30) days beginning January 2, 2014, and ending January 31, 2014; and WHEREAS, on February 4, 2014, a public hearing was held by the Tustin City Council to receive public input and testimony regarding substantial amendments to the Program Year 2012-2014 Action Plans. NOW THEREFORE BE IT RESOLVED, the City Council of the City of Tustin resolves as follows: Section 1: The City of Tustin’s Program Year 2012-2014 Action Plans are hereby amended by reallocating funds of previously approved projects as follows: Proposed Project Funding Reallocations From (Reallocation Project) Program Year To (New Project) Funding Bocce Ball Court Planning and Administration 2012-13 $20,000.00 Design and construction of two bocce ball courts including hard-scape and seating at Peppertree Park. Old Town Signage Economic Business Incentive 2012-13 $25,000.00 Provide informational and wayfinding signage within Old Town Tustin. Old Town Study (Downtown Commercial Core Plan) Planning and Administration 2012-13 $58,352.32 Development of a Master Plan to provide Planning and Administration 2013-14 $49,584.00 a comprehensive planned vision to encourage economic development and coordinated development in Old Town. $152,936.32 Total Resolution No. 14-16 Page 2 Section 2: The City Clerk shall certify to the adoption of this Resolution and shall file a copy of said application with the minutes of this City Council meeting. PASSED AND ADOPTED by the City Council of the City of Tustin at a regular meeting on th the 4 day of February, 2014. _________________________________ ELWYN A. MURRAY MAYOR ATTEST: ______________________________ JEFFREY C. PARKER CITY CLERK STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) CERTIFICATION FOR RESOLUTION NO. 14-16 JEFFREY C. PARKER, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 14-16 was duly passed and th adopted at a regular meeting of the Tustin City Council, held on the 4 day of February, 2014, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ____________________________________ JEFFREY C. PARKER CITY CLERK