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HomeMy WebLinkAboutAgenda Report - October 7, 2009 I-01 PHAGENDA ITEM I'` I 4% CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Conduct Public Hearing to Consider the Reallocation of Available Urban County Community Development Block Grant and HOME Program Funding MEETING DATE: October 7,2009 PREPARED BY: Community Development Department RECOMMENDED ACTION: Conduct Public Hearing to considerthe reallocationof available Urban County Community Development Block Grant (CDBG) and HOME Program funding. BACKGROUND INFORMATION: The City of Lodi separated from the Urban County and now receives Federal CDBG Program funds directly from the U.S. Department of Housing and Urban Development (HUD). There is a balance of both CDBG and HOME Program funds through previous Urban County allocations that need to be spent. As those projects and activities funded through the Urban County are completed, the balance of unused and available funding need to be reallocated to projects that can use the funds by June 30,2010. In accordance with the direction given by the City Manager and in support of the policy established by the City Council to maintain a 60/40 split of funding between the City and community-based organizations (CBO's), reallocated funding from City projects/programs will only be directed to City projects. Likewise, funding from community-based organization's projects/services will only be directed to CBO projects. The one exception to that is in the reallocation of Elm Street Demolition project funds. Funding from two, completed CBO projects were reallocated to the City's Elm Street Demolition project to make up the supplemental allocation. Those funds are now being separated and made available back to a CBO project. The following funding balances have been identified as available for reallocation to eligible projects. CDBG Program Funding Proiect LOD 08-03 Elm Street Demolition Proiect $53,859.09 In 2008, $95,000 was allocated to this project. During subsequent meetings and review of the demolition project, Staff felt the proposed demolition would require additional funding. As other CDBG projects were completed and funding became available, we administratively reallocated funding from six completed projects for a supplemental reallocation total of $53,859.09. That provided a total of $148,859.09 for the demolition project. APPROVED: BlairlKfig<tity Manager CDBG Reallocation September 16,2009 Page 2 Now that the project has been bid, it is clear that supplemental funding is not necessary. Therefore, we recommend the reallocation of supplemental funding of $53,859.09. Once the demolition project is completed, the balance of the original allocation can later be reallocated to supplement one or more of the new projects approved at this meeting. Proiect LOD 08-11 Graffiti Abatement — Public Property $22,858.64 With all graffiti abatement activities completed and accounted for in the 2008/09 Program Year, these funds remain and are being made available for reallocation. Graffiti Abatement in the 2009/10 is funded through our Entitlement CDBG allocation from HUD. Proiect LOD 08-12 Graffiti Abatement — Private Property $52,500.00 For 2008, it was initially required that graffiti abatement be broken into two different allocations, as activities on private propertywere qualified differentlythan on public property. A change in the County's interpretation on how graffiti abatement on private property is qualified, however, left us unable to use the funding. Therefore, the funding is now being made available for reallocation to a City project. This issue has been addressed in our current year by qualifying all graffiti abatement as a public service, rather than as a rehab activity. Proiect LOD 08-19 Elm Street Handicap Ramps $23,524.00 During the allocation process for 2009 Entitlement funds, we also addressed the reallocationof available Urban County CDBG funding to new projects. One of them was the West Elm Street Handicap Ramp Replacement Project that will reconfigurethe handicap parking spaces on the 100 block of West Elm Street, adjacent to the downtown movie theater. During that same allocation process, we addressed the allocation of the CDBG-Reinvest (CDBG-R) funding that had been designated for Lodi. As the City Council authorized the majority of our CDBG-R allocation to the Lodi Community Center project, there was a remainder that the Council specifically wanted to go to a local infrastructure project that fit the CDBG-R requirements. Staff has identified this West Elm Street project as the best recipient of those CDBG-R funds. The combined CDBG and CDBG-R allocations provide a total $53,524.00 for the project, which has an Engineer's Estimate of $30,000. We thereby recommend that the balance of $23,524 be reallocated. New City Proiects From the aforementioned CDBG funding, we have $127,683.67 available to reallocate now to City projects. Staff believes that there could -be another $80,000 - $100,000 available to reprogram from other completed projects within the next three to four months. After meeting with both the Parks & Recreation and Public Works Directors, staff has identified the following eligible projects that can utilize the City's allocation of CDBG funds by June 2010. • Eastside Alley Drainage Improvement o Similar to the project that was approved for the 2009 Entitlement Program, funds would be used for the reconstruction of an Eastside alley to provide adequate storm water drainage and an overall improved alley surface. • Handicap Ramp Replacement o This would continue the long-standing practice of providing handicap ramps at crucial intersections in the Eastside Target Area and other select locations around public facilities. CDBG Reallocation September 16,2009 Page 3 New CBO Proiect From the aforementioned CDBG funding, we have $25,058.06 available to reallocate to a CBO project. Staff has identified the following eligible project that can utilize the CBO allocation of CDBG funds by June 2010. Salvation Army Hope Harbor Shelter Roof Replacement Project o The Salvation Army had requested funding for this project during the 2009 application process and while it was deemed a worthy project, there was not sufficient funding to go around. The Salvation Army has estimated that they will need at least $75,000 to complete this project. In addition to the funding that they are requesting from Lodi, they have secured commitmentsfor funding from both San Joaquin County ($18,000) and the City of Stockton ($16,500), as they have been able to demonstrate that a percentage of their clientele are from those jurisdictions. The Salvation Army has also secured a $1000 energy rebate from our Electric Utility Department for the proposed use of a foam roofing material. HOME Program Funding Housinq Rehab Loan Program $230,666.64 There is currently no demand for our Owner -Occupied Housing Rehabilitation Loan Program and therefore we need to reprogram those funds to where they can be used in a more timely manner. At the same time, we have identified the following opportunity with our Neighborhood Stabilization Program (NSP) developer for the development of affordable housing that will create two, new single- family dwellings on what is now a vacant parcel. New Affordable Housinq Proiect Service First of Northern California, the local non-profit affordable housing developer that was selected by San Joaquin County to implement our NSP funding, has identified a vacant parcel at the corner of South Garfield Street and East Oak Street as a potential site for development of two affordable housing units. The vacant corner parcel would be split into two lots and new single-family dwellings would be built on each. This mirrors an identical developmentthat Service First is doing on the adjacent property to the east, where they have acquired a vacant, foreclosed property using NSP funding. They intend to split that property into two parcels as well in order to constructtwo single-family dwellings. The HOME funds in this instance would be used for the acquisition of the corner parcel, as well as some pre -development costs once the property has been purchased. Funding Recommendations Staff recommends the reallocation of the available $127,683.67 in CDBG funding for City projects as follows: • Eastside Alley Drainage Improvement Project ($107,000.00) • Handicap Ramp Replacement ($20,683.67) CDBG Reallocation September 16,2009 Page 4 Staff recommends the reallocation of the available $25,058.06 in CDBG funding for CBO projects as follows: • Salvation Army Hope Harbor Shelter Roof Replacement Project ($25,058.06) Staff recommendsthe reallocation of the available $230,666.64 in HOME Program funding as follows: Service First of Northern California —Site acquisition and pre -development costs for the project site at 500 E. Oak Street, Lodi, CA. FISCAL IMPACT: Project delivery costs (design, printing, advertising, labor standards review, etc.) are incorporated into the project allocations. FUNDING AVAILABLE: Urban County CDBG Program Funding Konradt Bartlam Community Development Director KBfjw RESOLUTION NO. 2009-134 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE REALLOCATION OF AVAILABLE URBAN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME PROGRAM FUNDING WHEREAS, a total of $152,741.73 in Urban County Community Development Block Grant (CDBG) funds are available for reallocation from the following projects: LOD 08-03 Elm Street Demolition Project $53,859.09 LOD 08-11 Graffiti Abatement — Public Property $22,858.64 LOD 08-12 Graffiti Abatement — Private Property $52,500.00 LOD 08-19 Elm Street Handicap Ramps $23,524.00 ;and WHEREAS, a total of $230,666.64 in Urban County HOME Program funding is available from the Housing Rehabilitation Program account; and WHEREAS, the City of Lodi is attempting to reprogram all available Urban County CDBG and HOME Program funding to projects that can expend the funds by June 30, 2010, in order to close out the City's balance of funding with San Joaquin County. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the reallocation of Urban County CDBG and HOME Program funds from the aforementioned project accounts to the following projects: CDBG Program Funding • City of Lodi PublicWorks Alley Drainage Improvement Project $107,000.00 • City of Lodi PublicWorks Handicap Ramp Replacement Project $ 6,183.67 • Salvation Army -Lodi Hope Harbor Shelter Roof Replacement $ 39,558.06 HOME Program Funding • Service Firstof Site Acquisition/Pre-development Northern California, Inc. Affordable Housing - 500 E. Oak $230,666.64 Dated: October 7, 2009 I hereby certify that Resolution 2009-134 was passed and adopted by the Lodi City Council in a regular meeting held on October 7, 2009, by the following vote: AYES: COUNCIL MEMBERS — Katzakian, Mounce, and Mayor Hansen NOES: COUNCIL MEMBERS —Johnson ABSENT: COUNCIL MEMBERS — Hitchcock ABSTAIN: COUNCIL MEMBERS — None OHL City Clerk 2009-134 Reallocation of Urban County CDBG & HOME Program Funding Presented by Community Development Department October 2009 Urban County Reallocations ■ Goal of Expending Remaining Balance of Urban County CDBG Funds by June 2010. ■ Reallocation Process ❑ Follow Council Policy of Maintaining City Project Funding Separate From Community Project Funding ■ Correcting Previous Reallocation of CBO funds to City Project ❑ Maintaining Urban County Limit on Public Services. Urban County Reallocations ■ 4 Sources for Reallocated CDBG Funding ❑ 08-03 -Elm Street Demolition Project $53,859.09 ■ $25,058.06 of that supplemental allocation came from CBO projects. ❑ 08-11— Graffiti Abatement/ Public $22,858.64 ❑ 08-12 — Graffiti Abatement/ Private $52,500.00 ❑ 08-19 — Elm Street Handicap Ramps $23,524.00 Urban County Reallocations ■ Total CDBG Reallocation $152,741.73 ❑ $127,683.67 for City Projects ❑ $25,058.06 for CBO Projects ■ Next Round of Reallocations — 3-4 months ❑ $80,000 - $100,000 for City Projects. Urban County Reallocations ■ New CDBG Projects ❑ City Projects ■ Eastside Alley Drainage Improvements ■ Handicap Ramp Replacements ❑ CBO Projects ■ Salvation Army Roof Replacement Urban County Reallocations ■ HOME Program Funding ❑ Housing Rehabilitation Program ■ Program Dormant ■ No Increase in Activity Predicted ❑ Balance of $230,666.64 Available ■ New HOME Funded Projects ❑ Service First of Northern California ■ Neighborhood Stabilization Program (NSP) Developer Assigned to Lodi Urban County Reallocations ■ Service First Proposal ❑ Currently developing property at 502 E. Oak Street as part of NSP. ■ 2 new Single -Family Dwellings ❑ Adjacent vacant lot at Oak/Garfield potential for affordable housing development. ■ 2 additional new Single -Family Dwellings ❑ HOME Funds needed for property acquisition and predevelopment costs. Urban County Reallocations ■ City Manager's Funding Recommendations ■ CDBG ❑ Eastside Alley Drainage Improvements - $107,000.00 ❑ Handicap Ramp Replacements - $20,683.67 ❑ Salvation Army Roof Replacement - $25,058.06 ■ HOME ❑ Service First of Northern California - $230,666.64 Urban County Reallocations ■ Council Comments/Questions ■ Public Hearing A'j'n $ i 1 / F�' g of hfax �0',c g 33 14�0 SUBJECT PUBLISH DATE: CITY OF LODI P. O. BOX 3006 LODI, CALIFORNIA 95241-1910 ADVERTISING INSTRUCTIONS PUBLIC HEARING TO CONSIDER REALLOCATION OF AVAILABLE URBAN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME PROGRAM FUNDING SATURDAY, SEPTEMBER 19,2009 SATURDAY, SEPTEMBER 26,2009 TEAR SHEETS WANTED: One (1) please SEND AFFIDAVIT AND BILL TO: RANDI JOHL, CITY CLERK City of Lodi P.O. Box 3006 Lodi, CA 95241-1910 DATED: THURSDAY, SEPTEMBER 17,2009 ORDERED B Y RANDI JOHL CITY CLERK FIFER Oj ROBISON, CMC SSISTANT CITY CLERK MARIA BECERRA ADMINISTRATIVE CLERK Faxed to the Sentinel at 369-1084 at (time) on (date) (pages) LNS Phoned to confirm receiptof all pages at (time) JMR _CF MS (initials) fbmu\advins.doc 4jf DECLARATION OF POSTING PUBLIC HEARING TO CONSIDER REALLOCATION OF AVAILABLE URBAN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME PROGRAM FUNDING On Friday, September 18, 2009, in the City of Lodi, San Joaquin County, California, a Notice of Public Hearing to consider reallocation of available Urban County Community Development Block Grant and HOME Programfunding (attached and marked as Exhibit A) was posted at the following locations: Lodi Public Library Lodi City Clerk's Office Lodi City Hall Lobby Lodi Carnegie Forum declare under penaltyof perjurythat the foregoing is true and correct. Executed on September 18, 2009, at Lodi, California. F J NIFER ROBISON, CMC ASSISTANT CITY CLERK N:(Administration\CLERK\Forrns\DECPOSTCDD.DOC Is 1910:09111'ii RANDIJOHL CITY CLERK MARIA BECERRA ADMINISTRATIVE CLERK Admzhhk C� eC DECLARATION •-1• • MAILING !, Gp PUBLIC HEARING TO CONSIDER REALLOCATION OF AVAILABLE URBAN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME PROGRAM FUNDING On September 17, 2009, in the City of Lodi, San Joaquin County, California, I deposited in the United States mail, envelopes with first-class postage prepaid thereon, containing a Notice of Public Hearing to consider reallocation of available Urban County Community Development Block Grant and HOME Program funding, attached hereto Marked Exhibit A. The mailing list for said matter is attached hereto, marked Exhibit B. There is a regular daily communication by mail between the City of Lodi, California, and the places to which said envelopes were addressed. I declare under penalty of perjury that the foregoing is true and correct. Executed on September 17, 2009, at Lodi, California. J NIFER ROBISON, CMC ASSISTANT CITY CLERK Forms/decmai3.doc ORDERED BY: RANDIJOHL CITY CLERK, CITY OF LODI MARIA BECERRA ADMINISTRATIVE CLERK CITY OF LODI Carnegie Forum 305 West Pine Street, Lodi NOTICE CF PUBLIC HEARING Date: October 7,2009 Time: 7:00 p.m. For information re@ardina this noticeplease contact: Randi Johl EXHiBIT Citv Clerk j-� Telephone: (209) 333-6702 NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that on Wednesday, October 7, 2009, at the hour of 7:00 p.m., or as soon thereafter as the matter may be heard, the City Council will conduct a public hearing at the Carnegie Forum, 305 West Pine Street, Lodi, to consider the following item: a) Reallocation of available Urban County Community Development Block Grant and HOME Program funding. Information regarding this item may be obtained in the Community Development Department, 221 West Pine Street, Lodi, (209) 333-6711. All interested persons are invited to present their views and comments on this matter. Written statements may be filed with the City Clerk, City Hall, 221 West Pine Street, 2"d Floor, Lodi, 95240, at any time prior to the hearing scheduled herein, and oral statements may be made at said hearing. If you challenge the subject matter in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice or in written correspondence delivered to the City Clerk, 221 West Pine Street, at or prior to the close of the public hearing. er of the Lodi City Council: City Dated: September 16,2009 D. Stephen Schwabauer City Attorney CLERKIPUBHEARINOTICE&NOTCDD.DOC 9114109 Public Hearing — Stakeholders List Vernell Hill & Sharon Simas, Service First of Northern California EXHIBIT B 102 W. Bianchi Road Stockton, CA 95207 Tracy Williams, Executive Director/CEO, LOEL Foundation (Senior Center)' 105 S. Washington Street Lodi, CA 95240 Lt. Dan Williams Lodi Salvation Army PO Box 1388 Lodi, CA 95241