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Home My WebLink About10 AMENDMENT TO THE 2015-16 & 2016-17 ACTION PLANS FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM• Agenda Item 10 O AGENDA REPORT Reviewed: City Manager Finance Direct r N/A MEETING DATE: OCTOBER 3, 2017 TO: JEFFREY C. PARKER, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: AMENDMENT TO THE 2015-16 AND 2016-17 ACTION PLANS FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM RECOMMENDATION: That the City Council adopt Resolution No. 17-48 amending the Action Plans for Program Years 2015-16 and 2016-17 to transfer funds to Community Development Block Grant (CDBG) projects that can be immediately implemented during the current 2017-18 Program Year. FISCAL IMPACT: The proposal involves the reallocation or redistribution of CDBG funds from previously approved projects. 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 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. CDBG Action Plan Amendments October 3, 2017 Page 2 For participation in the CDBG program, the federal government requires that local jurisdictions prepare a 5 -year Consolidated Plan document and state within its plan, the jurisdiction's goals and priorities. The City's current Consolidated Plan, adopted on April 21, 2015, covers Program Years 2015-2020. The City is also required to submit an Annual Action Plan for each of the five years covered in the Consolidated Plan. The Action Plan details how the City will spend its annual allocation of funds to meet community needs identified in the Consolidated Plan. PROPOSED AMENDMENTS / FUNDING REALLOCATIONS: The Community Development Department is proposing to amend the 2015-16 and 2016-17 Action Plans which described the activities the City was to undertake during the respective program years to address the priority needs of housing and Community Development. The proposed amendment would reallocate funds from slower moving activities, to activities that can be immediately active. Federal Law related to CDBG programs indicates that HUD will consider an entitlement recipient (City) to be failing to carry out its CDBG activities in a timely manner if, sixty days prior to the end of the current program year, the amount of entitlement grant funds available is more than 1.5 times the entitlement grant amount for the current program year. In order to meet the timeliness threshold required by HUD, the City would need to spend its allocation expeditiously. The proposed amendment would reallocate funds from the Old Town Improvements activity, to the Senior Center Alternate Power Source Improvements activity. On September 19, 2017, the City Council approved the plans and specifications and authorized the advertisement for bids for the Senior Center Alternate Power Source Improvements activity. This activity involves the installation of a generator at the Tustin Area Senior Center, which is a public facilities and improvements activity, and is eligible to receive CDBG funding under HUD Matrix Code 03A — Senior Centers. The project timeline for this activity, indicates that construction will be complete by March 1, 2018, which would meet the timeliness requirement for CDBG funding expenditures. The proposed amendments to the 2015-16 and 2016-17 Action Plans are as follows: Program 2015-16 Old Town Improvements Senior Center Alternate $187,320 Power Source Improvements 2016-17 Old Town Improvements Senior Center Alternate $356,527 Power Source Improvements In accordance with Federal Law, the City has published a notice in the local newspaper with regard to the proposed amendments. The public was invited to comment on the proposed amendments during the 30 -day review period, from August 31, 2017, through September 29, 2017. As of the date of the publication of this staff report, there were no public comments received regarding the proposed amendments. CDBG Action Plan Amendments October 3, 2017 Page 3 Staff recommends that the City Council adopt Resolution 17-48 approving the amendments to the 2015-16 and 2016-17 Action Plans, to transfer unused funds to the Senior Center Alternate Power Source Improvements activity, which can be immediately implemented during the 2017-18 Program Year. =� dt (S AL- ` Adrianne DiLeva-Johnson Management Analyst Attachments: A. Resolution No. 17-48 C Elizabeth A. Binsack Director of Community Development ATTACHMENT A RESOLUTION NO. 17-48 RESOLUTION NO. 17-48 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING AMENDMENTS TO THE CITY'S 2015-16 AND 2016-17 ACTION PLANS FOR COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM BY REALLOCATING FUNDS TO THE SENIOR CENTER ALTERNATE POWER SOURCE IMPROVEMENTS PROJECT AND AUTHORIZING SUBMISSION OF THE AMENDMENTS TO THE FEDERAL 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; and WHEREAS, previously funded programs and projects have not been initiated and remain inactive and funds remain unexpended; and WHEREAS, it is important that the City of Tustin expend CDBG funds expeditiously to meet the timeliness requirement; and WHEREAS, funds must be reallocated to other eligible activities prior to expenditure; and WHEREAS, citizens were notified of the proposed changes in use of CDBG funds through a legal notice published in the local newspaper; and WHEREAS, the City Council considered the amendments at the meeting on October 3, 2017. NOW THEREFORE BE IT RESOLVED, the City Council of the City of Tustin resolves as follows: Section 1: The amendments to the City of Tustin's Action Plans shall be as follows: City Council Resolution No. 17-48 Page 2 Plan Year Activity Transferred From Activity Transferred To Amount 2015-16 Old Town Improvements Senior Center Alternate Power $187,320 Source Improvements 2016-17 Old Town Improvements Senior Center Alternate Power $356,527 Source Improvements Section 2: Staff is hereby directed to prepare and submit the amended Action Plans for FY 2015-16 and 2016-17 to the Federal Department of Housing and Urban Development reflecting Council's direction for the City's funding allocations to eligible program activities. Section 3: The City Manager of the City of Tustin or his designated representative, such as the Director of Community Development, is authorized to execute documents, certifications, contracts, or other instruments as may be required to carry out the City's Community Development Block Grant (CDBG) Program. Section 4: 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 at a regular meeting of the Tustin City Council, held on the 3rd day of October, 2017. DR. ALAN BERNSTEIN MAYOR ATTEST: ERICA N. RABE CITY CLERK City Council Resolution No. 17-48 Page 3 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) CERTIFICATION FOR RESOLUTION NO. 17-48 I, ERICA N. RABE, 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. 17-48 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 31d day of October, 2017, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. RABE CITY CLERK