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HomeMy WebLinkAbout01 COMMUNITY DEVELOPMENT BLOCK GRANT 2015-2020 CONSOLIDATED PLAN AND SUBRECIPIENTS PERFORMANCE EVALUATION. Agenda Item Reviewed: AGENDA REPORT City Manager Finance Director MEETING DATE: FEBRUARY 17, 2015 TO: JEFFREY C. PARKER, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT 2015 -2020 CONSOLIDATED PLAN AND SUBRECIPIENTS PERFORMANCE EVALUATION SUMMARY: The Housing and Community Development Act of 1974, as amended, established the Community Development Block Grant (CDBG) program to return federal funds to local communities for the purpose of developing viable urban communities by providing decent housing, suitable living environments, and by expanding economic opportunities, specifically for low and moderate income persons. To participate in the CDBG program, the City is required to prepare a Consolidated Plan that identifies priority needs for affordable and supportive housing, community development, public services, and economic opportunities. The Consolidated Plan is required every five (5) years. Annually, the City is required to prepare a one -year Action Plan that implements the goals and objectives contained in the Consolidated Plan. The City is also required to review the performance of the Public Services Activities who have received CDBG funding. RECOMMENDATION: That the City Council: 1. hold the first required public hearing to receive public input and testimony; 2. consider and approve the 2015 -2020 Consolidated Plan Priority Needs as recommended or modified; 3. consider public service performance evaluations and approve continued funding; and, 4. set a second required public hearing on April 7, 2015, to finalize the 2015 -2020 Consolidated Plan update, Program Year 2015 -16 funding allocation and the Program Year 2015 -16 Action Plan. City Council February 17, 2015 Page 2 FISCAL IMPACT: The proposed programs and expenditures will be implemented with CDBG funds. No impacts to the General Fund are anticipated. CORRELATION TO THE STRATEGIC PLAN: Administration of the CDBG program falls under Goal A of the City of Tustin's Strategic Plan pertaining to Economic and Neighborhood Development. Goal A of the Strategic Plan strives to enable business opportunities and job development and to enhance the vibrancy and quality of life in all neighborhoods and areas of the community. Neighborhood revitalization and promoting economic development are both primary components within management of the CDBG program. BACKGROUND: The Federal 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, and the provision of improved community facilities and services. To receive CDBG program funds, the U.S. Department of Housing and Urban Development (HUD) requires jurisdictions to prepare a "Consolidated Plan," a five -year planning document intended to identify a community's overall need for affordable and supportive housing, community development programs, social services, and economic opportunities for low- and moderate - income persons. The Consolidated Plan also outlines a five -year strategy to meet those needs and identifies resources and programs that would address them. The current Consolidated Plan covers 2010 -2015. The Consolidated Plan update would cover 2015 -2020 and contain updated information regarding priority needs, income levels, affordable housing, and service levels to special needs populations. The Federal government requires that local jurisdictions prepare a five -year Consolidated Plan document and state within its plan, the jurisdiction's goal and priorities. The City is also required to submit an Annual Action Plan for each of the five years covered in the Consolidated Plan. The City of Tustin has not been notified by the U.S. Department of Housing and Urban - Development (HUD) of the City of Tustin's grant award for the 2015 -16 funding year. Therefore, for planning purposes HUD had indicated that cities could use the previous year funding amount of $688,674. City Council February 17, 2015 Page 3 The Consolidated Plan serves the following functions: 1. A planning document for the City of Tustin; 2. An application for federal funds under HUD's formula grant programs; 3. An action plan that provides a strategy for carrying out goals and priorities (also serve as the City's annual application); and, 4. A basis for assessing performance. CDBG Program Requirements Communities are permitted to develop their own programs and funding priorities, as long as each activity meets one of the three CDBG National Objectives. These objectives are as follows: 1. Benefit low- and moderate - income persons; 2. Aid in the prevention or elimination of slums or blight; or 3. Meet community development needs having a particular urgency (conditions that pose serious or immediate threats to the health or welfare of the community where other sources of funding are not available). The CDBG program as administered by HUD requires that at least 70 percent of the total CDBG annual expenditures must be used for activities that benefit low- and moderate - income persons over a one -, two -, or three -year period, and individual activities designed to benefit low- and moderate - income persons must assist at least 51 percent of low- and moderate - income persons. To assure that activities will meet the National Objectives, HUD established guidelines for Eligible and Ineligible activities. Eligible activities include: • Housing - related type of activities • Removal of Architectural Barriers to Public Facilities • Rehabilitation and Preservation Activities • Public Facilities and Improvements • Public Services Activities • Economic Development Activities • Planning and Program Administration, etc. The CDBG program limits the amount of allocation for Public Services activities and Program Administration. A maximum of 15 percent (15% x $688,674 = $103,301) of the total grant award may be allocated to Public Service types of activities. A maximum of 20 percent (20% x $688,674 = $137,734) of the total grant award may be expended on administrative and planning activities. City Council February 17, 2015 Page 4 Citizen Participation Process Federal laws relating to CDBG funds require cities to provide citizens with specific information about the amount of monies expected for the program and the range of activities that may be undertaken with those funds. Federal regulations also require a jurisdiction to hold at least two public hearings to obtain the views of citizens on such issues as housing, other community development needs, and the use of the CDBG monies. This is the first public hearing and another public hearing is tentatively scheduled in April to consider the draft 2015 -2020 Consolidated Plan and 2015 -2016 Action Plan (a component of the Five -year Consolidated Plan and an annual application for a CDBG grant) and to authorize staff to submit the Consolidated Plan and Action Plan to HUD. After City Council approval, staff will submit the 2015 -2020 Consolidated Plan and 2015 -2016 Action Plan to HUD detailing the City's specific use of the funds for Program Year 2015 -16. The Consolidated Plan and Action Plan are due to HUD on May 16, 2015. After receiving final approval of proposed projects, each public service /non - profit organization receiving continued funding will be asked to enter into agreements with the City requiring compliance with all Federal CDBG regulations relating to program management, reporting, auditing, etc. No disbursement of monies can be made to any agency or organization until expenses are incurred and documented to benefit the intended program. DISCUSSION: In preparation of the Consolidated Plan, the City is required to identify priority needs for the next five (5) years. In addition, staff is requesting that the City Council review the Public Services performance and continue funding for the approved Public Services activities for Program Year 2015 -16. Consolidated Plan Priority Needs The Consolidated Plan includes a Strategic Plan section that identifies and ranks Priority Needs in the community. The section establishes general priorities for assisting extremely -low, low, moderate and middle income residents based on the analysis of the City's needs and market and inventory conditions. The Strategic Plan section also sets forth the strategy to be followed and the actions to be taken to address imbalances between the City's needs for housing assistance and the affordable and supportive housing services inventory. The Council is being asked to take public input regarding the five -year priorities, consider staff recommendations, and approve the recommendations into the Consolidated Plan that will be forwarded to Council in April. The draft Priority Needs table (Attachment A) includes detail on the updated ranking and anticipated funding needs based on existing and future needs throughout the community. The updated rankings and anticipated funding considered both high and low priority needs. The following highlight high priority needs: City Council February 17, 2015 Page 5 • Public Facility Needs • Tustin Sports Park Ball Diamond Renovation • Centennial Park Playground Renovation • Old Town Parklets • Stevens Square Parking Structure Expansion • Infrastructure o Armstrong Avenue Street Improvements (Warner to Barranca) o Warner Avenue Street Improvements (Red Hill to Armstrong) o Main St. Street Improvements o Sidewalks Citywide o Peter's Canyon Channel Flood Drain Improvements o Barranca Channel Flood Drain Improvements o Barranca Retention Basin Improvements • Public Service Needs o Graffiti Abatement • Youth Programs • Youth Centers / Child Care Centers • Youth Services • Senior Programs o Senior Services • Economic Development • Shop Locally campaign • Economic Business Incentive • Old Town Vacant and Underutilized Land Development • Coordinate City events to promote local restaurants, wineries, and microbreweries, and recruit other businesses to the area • Code Enforcement o Code Enforcement Activities Public Service Activities Multiyear Funding On April 17, 2007, the City Council amended the City's Citizen Participation Plan by designating the Tustin Community Foundation as the Citizen Participation Committee for Public Service Activities and that funding for public services are to be allocated through a three (3) multiyear funding cycle. Accordingly, on February 12, 2014, the Tustin Community Foundation acting as the City's Citizen Participation Committee held a public hearing, considered funding requests for public service programs, and recommended allocation based on a multi -year funding cycle. On May 6, 2014, the City Council accepted the recommendation and City Council February 17, 2015 Page 6 approved the funding allocation for public services programs for a three (3) year period. Following the Year One (1) allocation for Program Year 2014 -15, the approved public service programs shall continue to receive Year Two (2) for Program Year 2015 -16 and Year Three (3) for Program Year 2016 -17 funding if they meet the following criteria: a. Activities must continue to meet the priority and objective for which the activities are funded in Year One (1); b. Activities must continue to leverage funds with other sources; C. Activities must be in compliance with contractual obligations; d. Activities must report accomplishments correctly in the Quarterly and Annual Performance Reports and /or other documentation as described in current year contract; and, e. Activities must receive a successful assessment of project performance and progress from City staff. A list of public service programs and their accomplishments is attached as Attachment B. The City Council is asked to consider: the subrecipients progresses; accomplishments to date; and, whether they are to receive continued funding for Year Two (2) - Program Year 2015 -16. Staff has provided a recommendation for the City Council's consideration. Using the first two quarters' accomplishments data, public service projects have accomplished, on average, approximately 50 percent or more of the stated objectives. The Public Service projects still have the remaining two quarters of the fiscal year to accomplish their stated objective. Using reporting data and interviews with subrecipients, generally, the non - profit agencies have been able to continue providing their services and meeting their goals. Proposed Public Service Funding Allocation for Program Year 2015 -16 The following are recommendations for public service funding allocation: Public Services Activities (max. $103,301) Boys and Girls Club $ 12,500 (continue) Community SeniorSery (Senior Meals) $ 15,000 (continue) Graffiti Removal - CDBG target areas $ 30,768 (continue) Mercy House $ 5,000 (continue) Olive Crest $ 5,000 (continue) Tustin Parks and Recreation Department (Youth Center Staff) $ 20,033 (continue) Tustin Parks and Recreation Department (Kids Corner) $ 15,000 (continue) Public Services Subtotal $103,301 Note: To assist the Council in making a decision, staff has included Attachment B, which is a table listing all public services activities and their performances. City Council February 17, 2015 Page 7 It should be noted that the subrecipient, Laurel House, is now funded by the Orange County Rescue Mission. As such, the organization withdrew their acceptance of CDBG funding for the three -year funding cycle of 2014 -17. Their funding has been reallocated to graffiti removal within the CDBG target area. Adria evva- Johnson Sr. Management Assistant Elizabeth A. Binsack Director of Community Development Attachments: Attachment A: Draft 2015 -2020 Consolidated Plan Priority Needs Attachment B: Public Services Performance Evaluation ATTACHMENT A DRAFT 2015 -2020 CONSOLIDATED PLAN PRIORITY NEEDS ATTACHMENT A TABLE III -D (HUD Table 26) COMMUNITY DEVELOPMENT NEEDS PRIORITY COMMUNITY Priority Need Level Estimated Estimated DEVELOPMENT NEEDS High, Low, Priority Dollars to No Such Need Units Address PUBLIC FACILITY NEEDS Neighborhood Facilities: 1. Tustin Family and Youth Center L $900,0002 Addition Acquisition Parks and /or Recreation Facilities 1. Tustin Sports Park Ball Diamond Renovations H $200,0003 2. Tustin Sports Park Multipurpose Fields L $2,500,0003 3. Centennial Park Playground Renovation H $76,0003 4. Southwest Park Site Acquisition L $700,0003 5. Columbus Tustin Sports Fields L $245,0003 Renovation 6. Columbus Tustin Park Picnic L $74,0003 Shelter Replacement 7. Old Town Parklets H $15,000 Health Facilities N 1 Parking Facilities: Stevens Square Expansion- two /three more levels, 300 additional spaces, elevator and resurfacing the upper parking level (81 H $5,500,000 publicly owned spaces) to address ADA accessibility Solid Waste Disposal Improvements N Asbestos Removal L $1,000,000 Non - Residential Historic Preservation H PRIORITY COMMUNITY Priority Need Level Estimated Estimated DEVELOPMENT NEEDS High, Low, Priority Dollars to No Such Need Units Address Other Public Facility Needs H 1 INFRASTRUCTURE Water /Sewer Improvements: various well rehab projects at Beneta Way and L $4,500,0003, 4 Columbus- Tustin Street Improvements 1. Armstrong Ave (Warner to H $8,000,000 Barranca) 2. Warner Avenue (Red Hill to H $14,000,000 Armstrong) 3. Newport Avenue (Phase II) L $45,500,000 4. Main Street H 1 Sidewalks H $500,0003.6 Sewer Improvements L 1 Flood Drain Improvements 1. Peters Canyon Channel H $22,000,000 2. Barranca Channel Improvements H $7,000,000 3. Barranca Detention Basin H $1,000,000 Other Infrastructure Needs L $1,000,0005 PUBLIC SERVICE NEEDS Handicapped Services L 1 Transportation Services L Substance Abuse Services L $40,000 Employment Training L 1 Health Services N Graffiti Abatement H $1,000,000 Other Public Service Needs N PRIORITY COMMUNITY Priority Need Level Estimated Estimated DEVELOPMENT NEEDS High, Low, Priority Dollars to No Such Need Units Address ANTI -CRIME PROGRAMS Crime Awareness H $125,000 Other Anti -Crime Programs H 1 YOUTH PROGRAMS Youth Centers H $800,0002 Child Care Centers H 1,2 Youth Services H $550,000 Other Youth Programs H 1 SENIOR PROGRAMS Senior Centers L 1 Senior Services H $150,000 Senior Transportation: L $172,000 Other Senior Programs L 1 ECONOMIC DEVELOPMENT Rehab; Publicly- or Privately - Owned Commercial /Industrial L ' Cl Infrastructure Development H 1.7 Other Commercial /Industrial Improvements L Micro - Enterprise Assistance L Other Economic Development: Target defined business areas, assist with a H "Shop Locally" campaign Job Creation & Business Incentive Program (CDBG) H $50,000 Old Town vacant and underutilized land development H Coordinate City events to promote local restaurants, wineries, and microbreweries, and to recruit H $10,000 restaurants /microbreweries to Tustin. PRIORITY COMMUNITY Priority Need Level Estimated Estimated DEVELOPMENT NEEDS High, Low, No Such Need Priority Units Dollars to Address Utilize social media to promote Tustin L $5,000 businesses. Partner with the Chamber to host workshops for local businesses. H ' Partner with the Chamber to create a Tustin Visitors Bureau. H Enhance the marketing and branding efforts for Tustin Legacy through temporary and permanent sign H programs. Marketing Cornerstone 1 & 2 with CBRE. H Land Use and transportation planning at Tustin Legacy to create a destination. H ' Study the viability of the Tustin hangar as a focal point for destination H development in Tustin Legacy. Establish a Parking Business Improvement District with Tustin Auto Center to expand parking to meet their L inventory needs which facilitates additional sales. Provide resources (i.e., Commercial Property Search and Tools for Business) L $10,000 to businesses through the City's website, www.tustinca.org. Mayor's Business Recognition H $5,000 Luncheon CODE ENFORCEMENT H $337,000 PLANNING Planning H $380,000 PRIORITY COMMUNITY Priority Need Level Estimated Estimated DEVELOPMENT NEEDS High, Low, Priority Dollars to No Such Need Units Address Downtown Commercial Core Plan H $100,000 TOTAL ESTIMATED DOLLARS $118,444,000 NEEDED: Unknown. 2 Conveyance of one child-care centers at Tustin Legacy expected. 3 Financing sources for all Infrastructures are included in the Seven -Year Capital Improvement Projects (CIP). 4 To be improved by Irvine Ranch Water District (IRW D) or Orange County Sanitation District (OCSD). 5 Potential hazardous materials abatement associated with underground piping in the Community Park Site- Tustin Legacy. 6 Ramps and sidewalk ADA improvements within the CDBG target area. 7 See Infrastructure Improvement needs. 8 Energy efficient improvements is a component of the Commercial - Industrial Rehabilitation program. ATTACHMENT B PUBLIC SERVICES PERFORMANCE EVALUATION PERFORMANCE OUTCOME FOR CDBG PUBLIC SERVICE SUB - RECIPIENTS 1ST AND 2ND QUARTER OF 2014 -15 JULY 2014 TO DECEMBER 2014 Anticipated Number of Tustin Percentage of Tustin Agency /Program Program Description Annual Number of Residents Served Residents Served in Quarters 1 and 2 Out Accomplishments Recommendation Tustin Residents in First Two of Anticipated Served Quarters Annual Number Graffiti Removal 32,993 persons in Approximately 1,700 graffiti cases in Program Graffiti removal and abatement . census tract 32,993 100% the CDBG project area were Continue to Fund abated. Served 174 Tustin residents Senior Service congregate lunch meals 5 days a Congregate Meal/ Home week. Delivered Meal Program. Community SeniorSery Delivered 3 meals per day, 5 days To provide elderly persons home 330 210 64% per week to 36 Tustin residents Continue to Fund delivered meals and a lunch program at a congregate meal Other Programs offered, Social site (the Tustin Area Senior activities, in- home services, Center), nutritional education, personal case managers to meet individual needs. Notable academic improvements were achieved through in -house computerized tutoring service. Participants on average have Youth Service yielded academic gains in Math Upward Bound Academic Concepts, Reading Workshop, and Achievement Program the SuccessMaker Program based Boys and Girls Club 100 62 62% on their time spent with each Continue to Fund (Youth Service) Provides Academic Tutoring and program . The program has helped Life Skills Programs to "At -Risk' Tustin students, who were behind Youths for their grade level, gain academic skills to help them catch up in their grade level. 100% of youths are of low /moderate income or below. Agency /Program Program Description Anticipated Annual Number of Tustin Residents Served Number of Tustin Residents Served in First Two Quarters Percentage of Tustin Residents Served in Quarters 1 and 2 Out of Anticipated Annual Number Accomplishments Recommendation Mercy House has provided services to 19 Tustin residents out of a total Homeless Service 1,051+ persons served by the Armory Emergency Shelter program. Mercy House receives Program the majority of it's participants during the winter months from Mercy House To provide temporary cold 20 19 95% January - March and is on schedule Continue to Fund weather shelter, meals, and for anticipated service. referal services for homeless individuals. 100% of participants including Tustin residents served by the program are of very low income levels. Tustin residents, in the foster care system, participated in a transitional housing program in which they learn Youth Service life skills in preparation for living Olive Crest The Transitional Housing 24 17 71% independently after emancipating Continue to Fund Placement Program out of the foster care system. Comrehensive program to serve 100% of participants are Tustin foster care youth ages 16 -18. residents of very low income levels. Agency /Program Program Description Anticipated Annual Number of Tustin Residents Served Number of Tustin Residents Served in First Two Quarters Percentage of Tustin Residents Served in Quarters 1 and 2 Out of Anticipated Annual Number Accomplishments Recommendation nrougn its various programs, even s an services, the Tustin Family Youth Center sewed 556 unduplicated Tustin residents. The Center provides a full range of family and youth oriented social, educational, and recreational activities including after school and summer youth programs, teen nights, special events, food distributions, a holiday basket program, and various self - Youth Service improvement classes. It also serves as a Tustin Family Youth Center resource and referral center for families in need, at -risk youth and individuals seeking City of Tustin Parks 21000 556 28% self- improvement and vocational Continue to Fund and Recreation Provides family /youth social, opportunities. educational, and recreational programs. It shook! be noted that historically for this program, the fourth quarter has the highest attendance due to new unduplicated enrollment for the annual summer program and the annual Cinco de Mayo event. It is expected that program attendance goals for the current year will be met. 100% of participants are of very-low to This recreational preschool served 31 unduplicated Tustin residents in addition to presenting a curriculum Youth Service that equips the participants with the Kids Comer Recreation necessary knowledge and City of Tustin Parks Preschool behaviors to succeed in and Recreation 50 31 62% Kindergarten. The Kids Comer Continue to Fund Provide learning experiences to program also focuses on children for strong self- strengthening participant self -image development and feelings of competence. 100% of participants are of very-low to moderate income levels.