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Home My WebLink About2017-03-13 e-packet@11:30amMonday, March 13, 2017 11:30 AM City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA City Hall, City Manager's Conference Room 400 Grand Avenue, South San Francisco, CA Community Development Block Grant Standing Committee of the City Council Special Meeting Agenda March 13, 2017Community Development Block Grant Standing Committee of the City Council Special Meeting Agenda NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, the Community Development Block Grant (“CDBG”) Standing Committee of the City of South San Francisco will hold a Special Meeting on Monday, March 13, 2017 at 11:30 p.m., at City Hall, City Manager's Conference Room, 400 Grand Avenue, South San Francisco, California. Purpose of the meeting: Call To Order. Roll Call. Public Comments. MATTERS FOR CONSIDERATION Motion to approve the Minutes from the meeting of January 30, 2017.1. Study session regarding the Community Development Block Grant fiscal year 2017-2018 budget allocation. (Julie Barnard, ED Coordinator) 2. Adjournment. Page 2 City of South San Francisco Printed on 3/16/2017 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:17-285 Agenda Date:3/13/2017 Version:1 Item #:1. Motion to approve the Minutes from the meeting of January 30, 2017. City of South San Francisco Printed on 3/9/2017Page 1 of 1 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:17-231 Agenda Date:3/13/2017 Version:1 Item #:2. Study session regarding the Community Development Block Grant fiscal year 2017-2018 budget allocation. (Julie Barnard, ED Coordinator) DISCUSSION The purpose of this study session is to determine a preliminary Fiscal Year (FY)17-18 budget for the Community Development Block Grant (CDBG)expenditures.The CDBG Subcommittee (Subcommittee)will make preliminary recommendations for City Council’s consideration at the March 22, 2017 meeting. At this early stage,staff anticipates a possible budget of $1,060,000 for CDBG for FY 17-18.Due to several years of roll-over funding and less activity in the minor home repair loan program in this fiscal year,the City has a much larger budget than in years prior.Attachment 1 provides information about the CDBG funds available, spending limits and proposed budget as described below. Public Services (See Attachment 1 lines 15 - 24) Fiscal Year 17-18 marks the second of a two-year funding cycle for the public service activities.This means that this fiscal year,the City will not be able to provide funding to any new service providers.The Department of Housing and Urban Development (HUD)regulations restrict budgets on public services to 15 percent of the current year’s entitlement and 15 percent of the previous year’s Program Income (PI).As the Subcommittee may remember,several large loan repayments in FY 15-16 meant that the City had a significant amount of PI and the budget for public services for FY 16-17 was larger than usual at $83,000.This fiscal year,the City has not received much PI and combined with a possible reduction in our entitlement,the City will have much less funding available for the public service grantees. For FY 17-18,staff recommends applying the same percentage of the total budget for the FY 16-17,to the possible budget. These calculations are provided in line items 15-24 in Attachment 1. Administrative Budget (See Attachment 1 line 26) The City is restricted to the HUD budget regulations which permit a maximum of 20 percent of the entitlement and 20 percent of PI. Minor Home Repair Programs (See Attachment 1 lines 27 - 31) Staff does not recommend any changes to the four grantees that receive funding for the Minor Home Repair Programs. City Sponsored Activities (See Attachment 1 lines 32 - 36) As mentioned before,the City will have a larger amount of roll-over funding.After the Public Services,Minor Home Repair Programs and Administrative budget expenditures have been removed,the City will have a possible $847,510 for City Sponsored Activities. In the past, the City has funded the following programs: 1.Housing Rehabilitation Loan Program 2.Debris Box Vouchers 3.Emergency Home Repair Grants City of South San Francisco Printed on 3/9/2017Page 1 of 2 powered by Legistar™ File #:17-231 Agenda Date:3/13/2017 Version:1 Item #:2. 4.Downtown Façade Improvement Programs 5.Public Right-of-Way Improvements The Housing Rehabilitation Program assists low and moderate-income homeowners with housing loans and/or grants to rehabilitate their homes.This program demonstrates the City’s commitment to maintaining affordable housing and anti-blight and anti-displacement efforts.Staff is currently updating the guidelines for the Housing Rehab Loan Program.Changes will include lowering the interest rate one to three percent from four percent,30 -year loan terms with amortized payment,deferred payment and interest only payment plans available to help broaden the range of eligible households and increasing the budget per loan up to $65,000, up from $35,000. Debris Box Vouchers are issued to clear code violations and for emergencies.Debris box vouchers are targeted for the cleanup of conditions that affect the health, safety, or appearance of properties. Emergency Home Repair Vouchers are provided as grants of up to $5,500 for qualifying homeowners.These vouchers apply to emergency minor home repairs and minor code violations,such as broken sewer lines,water heater replacement,roof repairs,broken windows,etc.These grants have no fees or charges except any required permit fees. The homeowner is responsible for any costs beyond the grant amount. The Downtown Façade Improvement Program provides grants to Downtown businesses for improvement to their exteriors.The Downtown Façade Improvement Program has successfully served 11 businesses in FY 14- 15 and FY 15-16.Currently,downtown South San Francisco is on the brink of receiving significant private sector investment.Therefore,the City’s fiscal intervention in the commercial sector is less critical than in the past. Due to staffing shortages no façade improvement projects were carried out in FY 16-17. For the Public Right-of-Way Improvements,this fiscal year,$240,000 of CDBG funding was used for the Americans with Disabilities Act (ADA)upgrades to ramps at intersections.An additional $43,000 was used for the rubberized surfacing at the Brentwood Park playlot.These projects are an ideal use of CDBG funding. Economic Development and Housing (EDH)staff have worked with the Parks and Facilities and the Engineering Divisions to identify potential projects for FY 17-18.Attachment 2 outlines the budget needs of these two divisions for the Subcommittee’s consideration. FUNDING This is a study session. There is no impact to the budget. CONCLUSION At the March 22,2017 meeting,Council will hear public comment from the public service grantees regarding the community’s needs.In addition,staff will present the CDBG preliminary budget recommendations for Council’s review and input.Based on this feedback,staff will make public the draft FY 17-18 Annual Action Plan for public comment on March 27,2017.The final plan will appear before Council on April 26,2017 for adoption. Attachments: 1.CDBG Budget Expenditures and Projections 2.FY 17-18 Potential Public Improvements Projects City of South San Francisco Printed on 3/9/2017Page 2 of 2 powered by Legistar™ ` CDBG FY 17-18 (Estimate) FY 16-17 (Actual) 1 Entitlement Amount 415,000 427,323 2 Prior Years Uncommitted Funds (Est. Rollover)615,768 292,121 3 Prior Years Uncommitted Funds (Pre 2015-16)284,547 4 Program Income Estimate (Current Year)30,000 31,935 5 Program Income Prior Year Rollover 125,305 6 Total 1,060,768 1,161,231 HOME 7 HOME Administrative Funds 11,437 11,437 8 ESTIMATED TOTAL FUNDS (ALL SOURCES)1,072,205 1,172,668 PUBLIC SERVICES Estimate Actual 9 15 % of FY 16-17 Entitlement 62,250 64,098 10 15% of Prior Year Program Income 5,000 18,900 11 Total Public Service Limit 67,250 82,998 CDBG ADMINISTRATION 12 20% of FY 16-17 Entitlement 83,000 85,465 13 20% of Estimated Current Year Program Income 6,000 6,000 14 Total Administration Limit 89,000 91,465 Attachment 1 Community Development Block Grant Program FUNDS AVAILABLE SPENDING LIMITS FOR CDBG FUNDS PUBLIC SERVICES FY 17-18 Estimate FY 16-17 Projected Expenditues Actual 15 CORA (12% of total budget)8,104 10,000 10,000 16 Health Mobile (10% of total budget)6,481 7,998 7,998 17 HIP Housing (12% of total budget)8,104 10,000 10,000 18 John's Closet (6% of total budget)4,052 5,000 5,000 19 Legal Aid Society (12% of total budget)8,104 10,000 10,000 20 Ombudsman Services of San Mateo County (11% of total budget)7,698 9,500 9,500 21 Rape Trauma Services Center (12% of total budget)8,104 10,000 10,000 22 Samaritan House (17% of total budget)11,345 14,000 14,000 23 Star Vista (8% of total budget)5,267 6,500 6,500 24 Subtotal 67,258 82,998 82,998 25 ADMINISTRATION 26 CDBG Administration 89,000 91,465 91,465 MINOR HOME REPAIR PROGRAMS 27 CID - Housing Accessibility Modification Prog 10,000 10,000 10,000 28 El Concilio - Peninsula Minor Home Repair 10,000 10,000 10,000 29 Rebuilding Together - National Rebuilding Day 12,000 12,000 12,000 30 Rebuilding Together - Safe at Home 25,000 25,000 25,000 31 Subtotal 57,000 57,000 57,000 CITY SPONSORED ACTIVITIES 32 City Sponsored Housing Rehabilitation Program 120,000 - 33 Debris Box Vouchers 10,000 10,000 10,000 34 Emergency Home Repairs 50,000 20,000 20,000 35 Downtown Façade Improvement Program 60,000 - 36 Public Improvements 284,000 284,000 37 Subtotal 60,000 494,000 314,000 38 TOTAL CDBG BUDGET 273,258 725,463 545,463 HOME FUNDS/FAIR HOUSING 39 Project Sentinel 11,437 11,437 11,437 40 TOTAL BUDGET 284,695 736,900 556,900 PROJECTED ROLLOVER 2016-17 41 Unbudgeted 2016/2017 435,768 42 Budgeted by Unexpended 2016/2017 180,000 43 Estimated 2016/2017 PROGRAM ROLLOVER 615,768 BUDGET Priority Project Cost Estimate 1 Alta Loma Park Rubber Surfacing $86,000 - $100,000 2 Avalon Park Rubber Surfacing $35,000 3 Clay Park Rubber Surfacing (5-12yr area)$80,000 Total $215,000 Priority Project Cost Estimate 1 ADA Curb Ramp Installation $250,000 2 Sidewalk Gab Closures $400,000 Total $650,000 Potential Public Improvements Projects Parks and Recreation Engineering FY 17-18 Attachment 2