Loading...
HomeMy WebLinkAboutMinutes - February 23, 2016 SSLODI CITY COUNCIL SHIRTSLEEVE SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, FEBRUARY 23, 2016 A. Roll Call by City Clerk An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, February 23, 2016, commencing at 7:03 a.m. Present: Council Member Mounce, Council Member Nakanishi, Mayor Pro Tempore Kuehne, and Mayor Chandler Absent: Council Member Johnson Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Ferraiolo B. Topic(s) B-1 Presentation on 2016/17 Community Development Block Grant Program and the 2014- 2018 Consolidated Plan (CD) Neighborhood Services Manager Joseph Wood provided a PowerPoint presentation regarding the 2016/17 Community Development Block Grant (CDBG) Program and 2014-2018 Consolidated Plan. Specific topics of discussion included the 2015/17 Annual Action Plan, process, Community -Based Organization (CBO) applicants, public service cap, primary goals, review of Years 1 and 2, planning for Year 3, opportunities to make progress, and schedule. In response to Council Member Mounce, Mr. Wood confirmed that all funds for graffiti abatement were used in the target area, i.e. low-income neighborhoods. Council Member Mounce stated this program has been instrumental in battling graffiti on the east side and she does not want to see the program eliminated or reduced. Mr. Wood stated that Public Works has assured him that the loss of graffiti abatement funding, which instead went toward funding the full-time Gang Reduction, Intervention, and Prevention (GRIP) position, would not negatively impact the graffiti abatement program. In response to Council Member Mounce, Mr. Wood reviewed the primary goals of the CDBG Program, stating that it is a requirement that they be followed. Council Member Mounce stated there was a time, prior to the implementation of the 60 percent and 40 percent split for City projects and CBO projects respectively, that Council did not adhere to the goals, adding that the funds were used for different purposes, which negatively affected the east side of town. Council Member Mounce pointed out that Senator de Leon proposed an initiative that would designate funds from the 1 percent millionaire tax for homeless housing and mental health services, and she suggested Mr. Wood look into the legislation. She stated that the League of California Cities supports this bill as it meets one of its 2016 strategic goals relating to affordable housing. Mr. Wood added that it is likely the Tienda Drive senior housing project may be awarded Mental Health Services Act funding. In response to Council Member Mounce, Mr. Wood stated that the proposed Salvation Army transitional housing project will be located at 4 West Vine Street, on the corner of Vine and Sacramento Streets, and would accommodate roughly six residents. This project is in the initial stages, and he assured that the effort will include outreach to the neighborhood. Council Member Mounce requested that, if neighbors have concerns about the project, she be given an opportunity to speak to them as she has had a positive experience with transitional housing and apartment complexes in her neighborhood. In response to Council Member Nakanishi, Mr. Wood explained that transitional housing is short - 1 term shelter for those transitioning out of emergency shelters and ultimately into a permanent, stable housing environment on their own. City Manager Schwabauer added that State law pre- empted cities from regulating transitional housing out of residential areas. With regard to group homes, Mr. Schwabauer explained that the residents are typically those with mental disabilities or other issues who will never transition out of the home. For that reason, group homes have broader terms than transitional homes. Council Member Mounce pointed out that transitional housing must go through strict State licensing requirements and that any complaints would be handled by the State. Mayor Chandler questioned if the Salvation Army project would be supervised and administered by its staff, to which Mr. Wood stated that he was uncertain as the project is still in the early stages. Mr. Schwabauer stated he believed it would be similar to the Shelter with 24/7 on-site supervision. In response to Council Member Mounce, Mr. Wood stated that $325,000 in CDBG funding was set aside for Public Works infrastructure projects, but those efforts will not be underway for another year, which puts the funding in jeopardy as the State Department of Housing and Urban Development (HUD) views a remaining balance of more than 1.5 times the allocation as a timeliness issue. It was determined that the reasonable solution was to put those CDBG funds toward affordable housing activities and designate Public Works funds to handle infrastructure projects. Council Member Mounce stressed that those projects not be forgotten because the City must continue to invest in east side infrastructure. At the request of Mr. Schwabauer, Mr. Wood listed the upcoming Public Works infrastructure improvement projects: the north/south alley between School and Sacramento Streets, which runs behind Grace and Mercy Charitable Foundation; the remaining alleys on the east side; and Americans with Disabilities Act improvements at Hutchins Street Square, as well as along Cherokee Lane. In response to Myrna Wetzel, Mr. Wood explained that, to the best of his knowledge, a "HUD house" is likely a foreclosed property in which the note was held by HUD versus a bank. Mr. Schwabauer added that this is not a term used by the City and agreed that it likely relates to subsidized housing by HUD, in which it is attempting to re -sell the home to recover the affordable housing loan. He further explained that Fannie Mae and Freddy Mac loans are different because they are backed by the Federal government. In further response to Ms. Wetzel, Mr. Schwabauer reported back regarding her question from the last Shirtsleeve Session that the City does have a rebate program on rain barrels and he provided her with the necessary paperwork. Captain Martin Ross with the Lodi Salvation Army thanked Council for considering its request for CDBG funding for the third year of its tutoring and mentoring program, adding that the new Business Manager will represent the Army at the March 16, 2016 public hearing. With regard to the affordable housing project, Captain Ross stated that the Lodi Salvation Army Advisory Board approved the concept and that Headquarters is equally excited about the project. He anticipated that the project will be complete in late 2016 or early 2017. He invited Council to attend the Lodi Salvation Army annual dinner on March 21, 2016, at which he, along with Pat Patrick with the Chamber of Commerce and John Ledbetter with the Lodi Community Foundation, will make a presentation on workforce development. Captain Ross provided a general overview of the presentation, which will highlight the Job Corps, Association of Builders and Contractors, Pacific Coast Producers, and Lodi Memorial Hospital. He further stated that Bethel Church is sponsoring a duplex and a family has been placed in the living quarters, adding that businesses, government, industries, and churches are another source to consider for housing purposes. Captain Ross announced that the Love Lodi event will take place on April 9 and t -shirts are on sale for $5. In response to Council Member Mounce, Captain Ross stated that, through the homeless fairs, he discovered that participants in adult rehabilitation programs are age -exempt from many of the restrictions of the Job Corps because it is recognized that they are typically a more mature group of individuals who are eager to re -join the workforce. He explained there are obligations on those placed in transitional housing: some are required to pay a small fee, while the 2 Bethel Church program requires the resident save 30 percent of income. In response to Mayor Chandler, Captain Ross stated that multiple individuals will reside at the transitional housing project to self -monitor the site and residents will be required to complete a thorough program and meet set criteria before moving in. Additionally, drug testing will be conducted three times a week versus once or twice a week. Dale Gillespie, LOEL Foundation board member, expressed support for the LOEL's CDBG request for its Meals on Wheels Program. The kitchen remodel took a combined effort of the LOEL board, donations, San Joaquin County, and City to come to fruition. LOEL feeds 100 seniors daily, and the kitchen is utilized five to six days each week. The goal is to implement a Meals on Wheels Program for serving of hot meals three days a week that would collaborate with the County's program, which provides frozen meals to seniors. Mr. Gillespie anticipates that the program would begin no later than April 1, 2016. In response to Council Member Nakanishi, Mr. Wood stated that the alleys would be improved as part of Public Works infrastructure projects and that those that cannot be completed would be done with CDBG funding. The Lodi Improvement Committee identified the alley he mentioned previously, but there are four to five more that need improvements. In further response, Mr. Wood stated that few cities have alleys, but Lodi is doing well with infrastructure and capital improvements in the target area. C. Comments by Public on Non -Agenda Items None. D. Adjournment No action was taken by the City Council. The meeting was adjourned at 8:01 a.m. ATTEST: Jennifer M. Ferraiolo City Clerk 3 (F5T?::( TM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM AGENDA TITLE: Presentation on 2016/17 Community Development Block Grant Program and the 2014-2018 Consolidated Plan MEETING DATE: February 23, 2016 PREPARED BY: Community Development Director RECOMMENDED ACTION: Presentation on 2016/17 Community Development Block Grant (CDBG) Program and the 2014-2018 Consolidated Plan. BACKGROUND INFORMATION: A public hearing will be set for March 16, 2016, for the City Council to review and consider approving the City Manager's recommendations for funding for the 2016/17 Annual Action Plan and an amendment of the 2015/16 Annual Action Plan to accommodate the reallocation of CDBG funds. 2016/17 Application Process The City implemented a new, on-line CDBG application and grant management module beginning with this 2016/17 program year. This is intended to streamline the application submittal and review process, as well as the overall grant administration and reporting process for both staff and grant subrecipients alike. The application period began December 8, 2015 and concluded February 10, 2016. A total of 10 applications from community-based organizations and outside agency were received during that period. At this time we are still in the process of reviewing those applications and developing our recommendations for funding. 2016/17 CDBG Program Funding At this time, the U.S. Department of Housing and Urban Development (HUD) has not informed us as to what our CDBG allocation amount will be for 2016/17. However, based upon the 2015/16 allocation of $613,405, we would see the following distribution of funding: City projects/services CBO projects/services Administration TOTAL $294,434 $196,290 $122,681 (20% of the Annual allocation) $613,405 15% Service Cap $92,011.00 The City Council has a policy of allocating 40 percent of the annual CDBG award (net of administrative costs) to community-based organizations (CBOs), with the remainder going to City projects. There is a 15 percent Public Service Cap on the overall allocation. APPROVED: •arts, Stephen Schwab - , City Manager 2016/17 CDBG Program February 23, 2016 Page 2 of 3 Of the 10 applications received from community-based organizations (CBO's), a total of $199,582 was requested. A detail of those CBO funding requests is attached as Exhibit A. HUD regulations also place a 15 -percent cap on the amount of funding that can be allocated to Public Service activities, whether that is by the City or by a CBO. The CBO's have requested a total of $162,700 for Public Services. The City historically has allocated another $42,000 annually for a Public Service activity: Graffiti Abatement within the Low -Moderate Income (LMI) Target Area. 2014-2018 Consolidated Plan Each program year, the Annual Action Plan is the document that we use to identify how funds will be used to address the priority housing and community development needs that were identified in the 5 -year Consolidated Plan (Con Plan). The overall goal of these housing and community development programs is to serve low- and moderate -income persons by developing viable urban communities through the following actions: * Providing decent housing; * Providing a suitable living environment; and * Expanding economic opportunities. As we enter into our third year of the 5 -year Con Plan, it is important to review and evaluate what goals and priority needs have been addressed in Con Plan Years 1 and 2, and what goals and needs have not yet been adequately addressed. In the course of allocating funds in 2016/17, and in Years 4 and 5 of the current Con Plan, the City must make every effort to address any unmet needs. A detail of the projects and activities that have been funded in the past two program years and how each activity has addressed the goals and priority needs identified in the Con Plan is attached as Exhibit B. Our Con Plan also identifies the need for projects and services that provide specific benefit to aid residents of the neighborhoods identified as Racially/Ethnically Concentrated Areas of Poverty (RCAP/ECAP). See Exhibit C. We are currently in the process of developing a Neighborhood Revitalization Strategy Area (NRSA), a tool for neighborhood revitalization that will provide benefits for administering CDBG funding within the RCAP/ECAP Target Area, encourage public and private investment in the community, and build stronger relationships with neighborhood stakeholders including residents, businesses, nonprofit organizations, elected officials, law enforcement, and faith organizations. We expect to bring that back to the City Council for adoption in September 2016, along with specific goals and activities geared to reduce or eliminate poverty. Our funding recommendations for this 2016/17 Annual Action Plan may include a set-aside of funds that will be allocated to specific NRSA activities in September. Unmet Housing and Community Development Needs The Table in Exhibit B identifies the following housing and community development needs that have not been adequately addressed in the first two years of our Consolidated Plan period: • Securing Additional Funding • Produce New Affordable Housing • Rehabilitate Existing Housing • Expand Financial Opportunities • Build Capacity and Leadership 2016/17 CDBG Program February 23, 2016 Page 3of3 For 2016/17, we will have the opportunity to make progress on a number of these priority needs through the following activities that are already planned or may be proposed for the coming program year: Tienda Drive Senior Housing Project — Goal: Produce New Affordable Housing This 80 -unit senior housing project, located between Roget Park and the Target Shopping Center, is in the final stages of closing on their financing and we will finally see the groundbreaking this Spring. The City first provided CDBG and HOME Program funding to this project in 2008. Salvation Army Transitional Housing — Goal: Produce New Affordable Housing The Salvation Army is currently working on receiving a donated single-family dwelling that is vacant and in need of extensive rehabilitation before it can be utilized as a much-needed transitional housing site. CDBG funds could be used for the rehabilitation of that dwelling. Affordable Housing Set -Aside — Goal: Rehabilitate Existing Housing We have the opportunity to set aside funding in this 2016/17 Annual Action Plan to accommodate a few affordable housing activities in the coming year. In addition to the Salvation Army Transitional Housing project referenced above, we could also fund a modest Housing Rehab/Emergency Repair Program that would serve low-income homeowners. Affordable Housing Fund — Goals: Secure Additional Funding; Produce New Affordable Housing; Preserve Existing Fair and Affordable Housing; Rehabilitate Existing Housing; Expand Financial Opportunities. There is also an opportunity to secure a larger allocation of funding, between $1-3 million, through the Section 108 Loan Guarantee Program. This amount of funding would provide the City the opportunity to create an Affordable Housing Fund that, in addition to the two projects/activities referenced in the Affordable Housing Set -Aside, would also fund the following activities: • Habitat for Humanity — Acquisition and rehab of affordable housing opportunities as they become available on the market. • Comprehensive Housing Rehab Program — Assistance to homeowners for more substantial and sustainable rehabilitation and energy -conservation improvement projects. • Down -Payment Assistance Loan Program — Provide qualified first-time homebuyers with down -payment assistance throughout the community. The majority of the programs within the Affordable Housing Fund would be established to offer funding as low-interest loans, which would create a revolving loan fund that would allow additional affordable housing activities in the future as well as some revenue to assist with the repayment of the Section 108 Loan. FISCAL IMPACT: Not applicable. FUNDING AVAILABLE: Not applicable. Stephen Schwabe Community Development Director Attachments EXHIBIT A 2016/17 Detail of Funding Requests from Community—Based Organizations Public Service Capital Improvement Community Partnership for Families LodiGRIP - Youth Support Team Partnership $50,000 One -Eighty Youth and Family Services LodiGRIP — Why Try Counseling Program $23,200 Emergency Food Bank Mobile Farmer's Market $1,500 LOEL Center LOEL Serves Meals on Wheels Program $10,000 San Joaquin Fair Housing Fair Housing Counseling and Housing Discrimination Testing $18,000 Second Harvest Food Bank Food Assistance Programs $10,000 Salvation Army — Lodi\ Tutoring and Mentoring Program $30,000 Women's Center Domestic Violence and Sexual Assault Services $20,000 Grace & Mercy Foundation Second Phase of ADA Accessibility Improvements $10,000 Housing Authority of the County of San Joaquin Washington Street Rehab Project — Phase 4 $26,882 Sub -Totals $162,700 $36,882 Total Requested Community -Based Organizations $199,582 EXHIBIT B 2014-18 Consolidated Plan — Community Development and Housing Needs Year 1 — Year 2 City: City Project/Activity CBO: Community -Based Organization Project/Activity Access to Social Services Improve Accessibility Construct or Upgrade Public Facilities Address Blight & Nuisance Secure Additional Funding Produce New Affordable Housing Preserve Existing Fair & Affordable Housing Rehabilitate Existing Housing Expand Financial Opportunities Build Capacity & Leadership 2014/15 — Year 1 City - Program Admin • ■ City - Alley Drainage Improvements ■ CBO - San Joaquin Fair Housing City - HSS — North Entrance ADA Improvements ■ CBO - Salvation Army — Tutoring/Mentoring Program City - Graffiti Abatement • CBO - LOEL Center — Parking Lot Project ■ 2015/16 — Year 2 City - Blakely Park Restroom Demolition ■ City - ADA Improvements — Cherokee Lane • CBO - Housing Authority — Rehab 719 S. Washington ■ CBO - LodiGRIP — Supportive Services • ■ CBO - Small Business Development Center CBO - Grace & Mercy Foundation — ADA Improvements • CBO - Community Partnership for Families - FRC • ■ EXHIBIT C Racially/Ethnically Concentrated Areas of Poverty (RCAP/ECAP) Presentation on 2016/17 CDBG Program & 2014-2018 Consolidated Plan 40 Years Building Better Neighborhoods Presented by Community Development — Neighborhood Services Division February 2016 2016/17 Annual Action Plan q 40 Years 00 Building Better Neighborhoods Annual Action Plan Process Action Plan How we identify how funds will be used to address the priority needs identified in the 5 -year Consolidated Plan. Application Process Began December 2015 Applications Received Up to February 10, 2016 Application Review Underway 10 Applications from Community -Based Organizations Total Amount Requested: $199,582 2016/17 Annual Action Plan q 40 Years 00 Building Better Neighborhoods 2016/17 CDBG Allocation (estimated) $613,405 Program Administration ($122,681) Balance Available for Distribution $490,724 60% Set-aside for City Projects/Services $294,434 40% Set-aside for CBO Projects/Services $196,290 Public Services Cap $92,011 CBO Applicant Public Service Capital Improvement Community Partnership for Families LodiGRIP — Youth Support Team Partnership $50,000 One-Eighty Youth Programs LodiGRIP — Why Try Counseling Program $23,200 Emergency Food Bank Mobile Farmer's Market $1,500 LOEL Center LOEL Serves — Meals on Wheels Program $10,000 San Joaquin Fair Housing Fair Housing/Housing Discrimination Testing $18,000 Second Harvest Food Bank Food Assistance Programs $10,000 Salvation Army Tutoring & Mentoring Program $30,000 Women's Center Domestic Violence/Sexual Assault Services $20,000 Grace & Mercy Charitable Foundation 2nd Phase of ADA Accessibility Improvements $10,000 Housing Authority of San Joaquin 719 S. Washington St. Rehab Project — Phase 4 $26,882 2016/17 Annual Action Plan q Public Service Cap (City) Graffiti Abatement Community Partnership One -Eighty Youth/Family Emergency Food Bank LOEL Center San Joaquin Fair Housing Second Harvest Food Bank Salvation Army Woman's Center Total Requested Overage $92,011 $42, 000 $50,000 $23,200 $1,500 $10,000 $18,000 $10,000 $30,000 $20,000 $162,700 ($70,689) 40 Years 00 Building Better Neighborhoods 2014-18 Consolidated Plan 40 Years Q 00 Building Better Neighborhoods Primary Goals of CDBG Program Provide decent housing; Provide a suitable living environment; and Expand economic opportunities. Consolidated Plan Identifies more specific priority needs and strategies for achieving the Primary Goals Includes activities needed to provide specific benefit to aid residents of neighborhoods identified as Racially/Ethnically Concentrated Areas of Poverty (RCAP/ECAP). Important to Review and Evaluate Goals Evaluate effectiveness of activities; Identify any unmet goals and needs; and Make every effort to address unmet needs within the remaining time of the five-year Consolidated Plan. 2014-18 Consolidated Plan 40 Years Q 00 Building Better Neighborhoods Review of Years 1 and 2 Access to social services; Improved accessibility; Upgraded facilities; and Addressed public nuisance and blight. Planning for Year 3 - Unmet Housing and Community Development Needs Securing additional funding; Produce new affordable housing; Rehabilitate existing housing; Expand financial opportunities; and Build capacity and leadership. 2016/17 Annual Action Plan 40 Years 00 Building Better Neighborhoods Opportunity to make progress on a number of priority needs: Tienda Drive Senior Apartment project; Salvation Army transitional housing; Affordable housing set-aside; and Affordable Housing Fund. YEARS EDEN HOUSING 4 4e i 4,062 * *13 11111111 •§" as7 3 14 2016/17 Annual Action Plan q Public Hearing — March 16. Draft 2016/17 Annual Plan. Amendment to 2015/16 Annual Action Plan Draft Action Plan Document. 30 Day Public Review/Comment Period. April 4 — May 4 Final Document to Council on May 4th. Submittal to HUD by May 15th. Questions or Comments? 40 Years 00 Building Better Neighborhoods