HomeMy WebLinkAboutAgenda Report - March 3, 1993 (67)r
CIN OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: Set Public Hearing for April 7, 1993 to Consider 1993-94
Community Development Block Grant (CDBG) Allocation
MEETING DATE: March 3, 1993
PREPARED BY: Community Development Director
RECOMMENDED ACTION: That the City Council set a public hearing to solicit
public comments and project ideas and to consider
multi -jurisdictional proposals.
BACKGROUND INFORMATION: The City will receive approximately $500,000 from the
Federal government under the Community Development Block
Grant Program (CDBG) for the 1993-94 Program Year. This
program has been ongoing since 1986 when the City received its first allocation. To
be eligible for funding, projects must meet one of three national objectives:
To address the needs of low and moderate income persons
To eliminate a slum or blighted condition
To resolve an urgent need
FUNDING: Originally budgeted : 1993-94
Fund: CDBG
Allocation: $499,455
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Js B. Schroed r
ommunity Development Director
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Attachments
Prepared by Eric Yeerkamp, CDBG Coordinator
APPROVED:
THOMAS A. PETERSON��
City Manager
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CCCD93.4/TXTD.OIC
1
Interoffice Memo
To: City Council Members
From: Eric W_ VeerkamVzt/
Date: February 17, 1993
Subject: 1993-94 Community Development Block Grant Allocation
The city is due to receive approximately S500,000 under the Community Development
Block Grant (CDBG) Program for the 1994-94 year. Such funds would generally be
available on July 1st. Several chosen projects will be funded along with the ongoing
funding of administration activities, fair housing activities', dial -a -ride, code
enforcement', and housing rehabilitation.
The city has been participating in Federal program since 1986 as an agreement city with
San Joaquin County. The reason for designating ourselves an agreement city along with
the other "small" cities in the county, as opposed to a "stand alone" entitlement city, is that
we are eligible for a larger funding amount.
A public hearing is required by HUD to allow citizens the opportunity to express their
concerns about where the money is spent. If no one in the community requests funding
for a project or projects, the city will have to decide on a use for the money that meets
HUD's minimum requirements.
In order to be eligible for funding, a project/program must meet one of HUD's three
national objectives:
1. To address the needs of low and moderate income persons.
2. To eliminate a slum or blighted condition.
3. To resolve an urgent need.
Under these three general headings, there are a host of eligible types of projects (see
attached for a complete listing), some of which are:
1. Public improvements and services.
3. Housing rehabilitation.
5. Social services activities.
2. Renewal and rehabilitation projects.
4. Economic development.
In the past, the city has emphasized construction or reconstruction projects. A partial list
of the projects the city has completed or will complete using CDBG funds are as follows:
1. Complete renovation and reconstruction of Hale Park.
2. Construction of walled patio with planters at Hutchins Street Square.
3. Rehabilitation of structure on Sacramento St. into homeless shelter.
4. Rehabilitation of some 20 single-family homes primarily in the east side.
1993-94 Comm mity De►titopntent Block Grant Allocation 02/17/93Page 2
5. Handicap retrofit of restroom at Blakely Park.
6. Handicap retrofit of Lodi Lake Beach restroom_
7. Replacement of water well l OR.
8. Renovation and construction of Blakely Park pool.
9. Handicap retrofit of restroom at Armory Park.
I am available to answer any questions you may have regarding the CDBG Program at ext.
644.
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INTRODUCTION
PURPOSE
This Guide is designed to help public officials and citizens understand what activities are
eligible to be assisted under the Community Development Block Grant (CDBG) Entitle-
ment Program. While regulations provide the authoritative version of program require-
ments, this Guide:
Organizes eligibility requirements in a more accessible format: and.
Provides additional explanatory materials, including examples.
OVERVIEW OF CONTENTS
Chapter i (Eligible Activities) describes each type of activity which may be carried out
with CDBG funds. The requirement that each activity must address at least one of the na-
tional objectives of the CDBG program is emphasized and examples are provided. Addi-
tional considerations related to undertaking each type of activity are also described.
Chapter 11 (National Objectives) describes the criteria that trust be met and the records
which must be maintained to qualify an activity as either.
Benefiting low and moderate (UM) income persons
Addressing slums or blight; or,
Meeting a particularly urgent community development need.
Chapter III (Overall Benefit to UM Income Persons) describes the methodology each
grantee must follow in determining if it is in compliance with the requirement that at
least 60%, of all CDBG funds be expended for activities which benefit L IM income per-
sons over one, two. or three consecutive program years, as specified by the grantee. This
is distinct from the requirement that individual activities which are considered to meet
the UM income national objective must benefit persons at least 51%ifwhom are LIM in-
come.
The Guide also includes four appendices:
(1) The first provides an overview of the program which the reader should find useful in
describing the program to others.
(Z) The second contains guidance in conducting "necessary or appropriate" reviews when
Financial assistance is provided to private for-profit businesses for economic development.
(3) The third appendix describes policies relating to special assessments under the CDBG
program which are also referenced in the Guide.
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(1).The last appendix lists the local HUD offices to be contacted for further information
and guidance. -
ADDITIONAL (XIDANCE
Considering the broad rant of activities which ntay be carried out with CDBG funds and
the need for interpretation of the applicability of requirements to many differing factual
situations. this Guide will not provide answers to all questions about activity eligibility. i-
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CHAPTER I -- ELIGIBLE ACTIVITIES
PURPOSE:
This chapter describes in detail the many types of activities which may be assisted using
CDBG funds. The purpose of the chapter is to help ensure that grantees will use CDBG
funds oetly for eligible activities and will properly classify activities by type. The impor-
tance of using CDBG funds only for eligible activities is self-evident. The proper classifica-
tion of activities is also important because the applicable statutes and regulations place
specific requirements on certain activities and not on others. For example, there is a
statutory and regulatory limitation on the amount of CDBG funds which may be used for
public services. There is a similar limitation on the amount of CDBG funds which may be
used for planning and administrative costs.
The statute and regulations also place special requirements on such activities as code enfor-
cement and assistance to for-profit businesses for economic development projects. An im-
properly classified activity may. be unnecessarily subject to an inapplicable requirement or,
conversely, it may be carried out in a manner contrary to the intent of the law.
SCOPE OF AN ELIGIBILITY DETERMINATION
_ Six steps are involved in the process of determining if CDBG funds may be used to assist a
proposed activity.
The first step is to determine if the activity is included within the listing of eligible ac-
tivities in the CDBG regulations, as modified by statutory amendments. This chapter
describes all activities which are currently eligible.
The second step is to determine if the proposed activity falls within a category of explicitly
ineligible activities, despite its apparent inclusion within the listing of eligible activities.
For example, while many public facilities are eligible for assistance, there is an explicit
statutory and regulatory bar to providing assistance to "buildings for the general conduct
of government: The explicitly ineligible activities are identified in this chapter.
The third and probably most important step is to determine if the proposed activity
meets one of the national objectives of the program:
NATIONAL OBJECTIVES I
o Benefiting low and moderate (LM) income persons
Addressing slums or blight, and.
Meeting a-particularlyurgent community development need.
1-1
The fourth step is to ensure that carrying out the activity with CDBG funds will not result
in the grantee violating its certification that at least 60% of CDBG funds will benefit LIN
income persona over one- two. or three consecutive program years, as specified by the
grantee. The procedure for calculating overall program benefit to UM income persons is
described in Chapter 3.
The fifth step is to review proposed costs of the activity to determine if they appear to be
necessary and reasonable and will otherwise conform with the requirements of OMB Cir-
culars A-87."'Cost Principles applicable to Grants and Contracts with State anJ Local
Governments." A -(_: ,'Cost Principles for Von -Profit Organizations," or A-'_1, "Cost
Principles for Educational Institutions," as applicable.
The sixth step is to complete the environmental review and clearance procedures for the
project of which the activity is a part. Those procedures are set forth in 24 CFR Pan 58.
HUD is prohibited by law from releasing funds for a CDBG activity until the grantee cer-
tifies that it has met is responsibilities with respect to environmental protection.
ELIGIBLF A(71"IV ' CATEGORIES
The remainder of this chapter describes separately each type of eligible activiry in the fol-
lowine order.
ELIGIBLE CATEGORIES PAGE
Acquisition of Real Property
1-3
Disposition
1-9
Public Facilities and Improvements
1-15
Privately -Owned Utilities
1-23
Clearance
1-25
Public Services
1-29
Interim Assistance
1-37
Relocation
1-41
Loss of Rental Income
1-43
Removal of Architectural Barriers
1-45
Housing Rehabilitation ' •
1-47
New Housing Construction
1-53
Code Enforcement
1-59
Historic Preser-ation
1-63
Commercial or industrial Rehabilitation
1-0
Special Economic Development
2-67
Special Activities by Subrecipients
1-73
Planning and Capacity Building
1-75
Program Administration Costs
1-77
Other Activities
4-81
1-2
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CITY. OF L0DI
221 :JEST PINS STREET
LODI, CALIFORNIA 95240
ADVERTISING INSTRUCTIONS
SUBJECT: NOTICE OF PUBLIC HEARING - 1993/94 COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) ALLOCATION
PUBLISH DATES: SATURDAY, MARCH 6, 1993
TZAR SHEETS WANTED: THREE
AFFIDAVIT AND BILL TO:
DATED: MARCH 3, 1993
ADVINS/TXTA.02J
JENNIFER M. PERRIN, CITY CLERK
ODRRBD BY:
PEGGY NICOLINI
DEPUTY CITY CLERK
1
ECCITY
0r LODI OTICE OF PUBLIC NEARING
Date: �ril 7, 1993
CARNEGIE FORUM
305 West Pine Street. I.udi Time: 7:30 P.M.
For information regarding this Public Hearing
Please Contact:
Jennifer M. Perrin
City Clerk
Telephone: 333-6702
NOTICE OF PUBLIC HEARING
April 7, 1993
NOTICE IS HEREBY GIVEN that on Wednesday, at the hour of 7:30 p.m., or as
soon thereafter as the matter may be heard, the City Council will conduct a
public hearing to consider the following matter:
a) 1993/94 Community Development Block Grant (CDBG) Allocation
All interested persons are invited to present their views and comments on this
matter. Written statements may be filed with the City Clerk 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 Public Hearing.
By Order Of the Lodi City Council:
l
Jbnnife1JM- Pei rin
City Clerk
Dated: March 3, 1993
Approved as to form: f
Bobby W. McNatt
City Attorney
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MEMORANDUM, City of Lodi, Public Works Department
To: City Council
City Manager
From: Public Works Director
Date: March 17, 1993
Subject: Status of Hale Park Improvements Project
The purpose of this memo is to report on the status of the Hale Park project as
requested at the City Council Meeting of March 3, 1993.
The following dates highlight the critical points of this project:
3/11/92 Contract bids for project received and opened.
3118/92 City Council awarded contract to BRCO Constructors, Inc.,
of Sacramento.
4/21/92 First working day for project.
5/92 BRCO and its subcontractors were clearing and grubbing
the site, doing off-site concrete work and on-site grading.
6/92-8/92 Work done on the recreation building, the park lighting
system, and on-site walkways.
9192 Basketball court paved and fencing installed around the
sport areas.
10192 Recreation building completed and work started on
playground equipment and irrigation system.
11/92 Minimal work done on the project.
At the end of October, BRCO Constructors submitted a request to substitute the
playground chips called for in the specifications with chips supplied by another
manufacturer, Artesia Sawdust. During this time, there were discussions on
what benefits the City would receive with the proposed substitution. The
specifications specified Fibar wood chips as the playground surfacing material.
The installation of a Fibar system included additional benefits to the City, such
as warranties for performance and biological degradation and a certificate of
insurance in the amount of $10,000,000 for product liability.
In reviewing BRCO's substitution, we wanted to be sure that the Artesia Sawdust
product provided the same coverage as the Fibar system. A meeting was held
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Status of Hale Park Improvements Project
March 17, 1993
Page 2
on January 21, 1993, with representatives from BRCO, A-1 Fence and
Playground Equipment, and members of the City staff. From this meeting, it was
decided that the City would accept the Artesia Sawdust product with a one-year
performance warranty, a three-year biological degradation warranty, and a
certificate of insurance in the amount of $2,000,000 for product liability. The
insurance coverage was not as great as the coverage provided by Fiber, but it
did name the City of Lodi as an additional insured, something Fibar's certificate
of insurance did not do. City Attorney McNatt advised the City accept the
$2,000,000 certificate of insurance with the City of Lodi named as an additional
insured in lieu of accepting the larger certificate of insurance without the City's
name. BRCO Constructors was then given permission to order the Artesia
Sawdust playground chips and have it installed. This installation started Friday,
January 29, 1993, and was completed February 10, 1993.
A question was also raised at the January 6,1993, Council Meeting regarding
working days and how they are established. it is standard practice to start
counting working days 15 days after the Mayor signs the contract. Working days
are not assessed for weekends, holidays, and inclement weather. If the
contractor does additional work not included in the original scope of work, he is
issued a change order and given added time for the new work. BRCO's working
day statement originally showed a completion date of October 15, 1992. This
date took into account all weekends and holidays between the first working day
and the 120 working days allowed in the contract. Because of time added from
change orders and non -working days caused by weather, the completion date
for the park was extended to February 1, 1993.
Recent Work Done in Hale Park:
1129/93 Wood chips delivered to Park. Geotextile fabric placed in
the playground and par course areas.
2/1-2/10/93 Wood chips spread.
2/3-2/5/93 BRCO's subcontractor, Restroom Facilities, addressed
punch list items in the recreation building.
2/11/93 Park sign and mowstrip installed at the corner of Elm
Street and Stockton Street.
STAT? OCC
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Status of Hale Park improvements Project
March 17, 1993
Page 3
On Monday, March 8,1993, BRCO and the City met in the Park to discuss
change order items and the project schedule for the remainder of the
construction. The status of the fencing was also discussed to see whether it
could be removed or relocated to allow the use of the playground equipment.
BRCO didn't want to relocate the fence if their landscaper would have his work
completed within a couple of weeks.
BRCO's schedule at the time of the March 8 meeting was to have the Park
weeds sprayed on Thursday. March 11, and the landscaper starting work on
Monday, March 15. The herbicide applicator was not able to spray the weeds
until Saturday, March 13, and the landscaper is now waiting for the chemicals to
take effect before he starts his work. This normally takes five to seven days.
The landscaper now feels that the fence should be in place for at least three
weeks after seeding to allow the seeds to germinate. BRCO has indicated that
one fence panel could be removed to allow the public use of the playground. A
sign would also be posted to notify the public that the playground equipment is
available for use but that the Park would be closed again if pedestrian traffic on
the turf areas causes a problem for the landscaper.
The contractor's schedule for the completion of the project is as follows:
3/13/93 Spraying of weeds completed.
3/22-3/26/93 Prepare soil and seed.
4/16/93 Remove fence.
5/5/93 Council accepts project. (At the time of acceptance, the
City will stili retain 10% of the contract amount which
includes money for landscape maintenance.)
7/16/93 End of 90 -day maintenance period.
�'Ql ,
ck . Ronsko
P ' Works Director
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Attachment
cc: Parks and Recreation Director
Community Development Block Grant Coordinator
Virginia Lahr
Tony Canton
BRCO Constructors, Inc.
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