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Home My WebLink About07.29.2024@230 SP CC CDBG (Cancelled)Monday, July 29, 2024 2:30 PM City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA Community Development Block Grant Standing Committee of the City Council JAMES COLEMAN, Mayor BUENAFLOR NICOLAS, Councilmember Special Meeting Agenda MEETING CANCELLED 1 July 29, 2024Community Development Block Grant Standing Committee of the City Council Special Meeting Agenda American Disability Act: The City Clerk will provide materials in appropriate alternative formats to comply with the Americans with Disabilities Act. Please send a written request to City Clerk Rosa Govea Acosta at 400 Grand Avenue, South San Francisco, CA 94080, or email at [email protected]. Include your name, address, phone number, a brief description of the requested materials, and preferred alternative format service at least 24-hours before the meeting. Accommodations: Individuals who require special assistance of a disability -related modification or accommodation to participate in the meeting, including Interpretation Services, should contact the Office of the City Clerk by email at [email protected], 24-hours before the meeting. Notification in advance of the meeting will enable the City of South San Francisco to make reasonable arrangements to ensure accessibility to the meeting. How to submit written Public Comment before the City Council Meeting: Members of the public are encouraged to submit public comments in writing in advance of the meeting via the eComment tab by 4:00 p.m. on the meeting date. Use the eComment portal by clicking on the following link: https://ci-ssf-ca.granicusideas.com/meetings or by visiting the City Council meeting's agenda page. eComments are also directly sent to the iLegislate application used by City Council and staff. Page 2 City of South San Francisco Printed on 7/30/2024 2 July 29, 2024Community Development Block Grant Standing Committee of the City Council Special Meeting Agenda CALL TO ORDER ROLL CALL AGENDA REVIEW PUBLIC COMMENTS Comments are limited to items on the Special Meeting Agenda. If there appears to be a large number of speakers, the Mayor may reduce speaking time to limit the total amount of time for public comments (Gov. Code sec. 54954.3(b)(1).). Speakers that are not in compliance with the City Council's rules of decorum will be muted. MATTERS FOR CONSIDERATION Motion to approve the Minutes for the meeting of April 2, 2024.1. Study session regarding amending the Community Development Block Grant Fiscal Year 2024-2025 Annual Action Plan. (Alvina Condon, Management Analyst II) 2. ADJOURNMENT Page 3 City of South San Francisco Printed on 7/30/2024 3 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:24-767 Agenda Date:7/29/2024 Version:1 Item #:1. Motion to approve the Minutes for the meeting of April 2, 2024. City of South San Francisco Printed on 7/26/2024Page 1 of 1 powered by Legistar™4 CALL TO ORDER: 10:00 a.m. ROLL CALL: Mayor Coleman, present Councilmember Nicolas, present AGENDA REVIEW No changes. PUBLIC COMMENTS None. MATTERS FOR CONSIDERATION 1. Motion to approve the Minutes for the meeting of February 21, 2024. Motion – Mayor Coleman/ Second Councilmember Nicolas: to approve the minutes. The motion carried unanimously. 2. Study session regarding the Community Development Block Grant Fiscal Year 2024-2025 Annual Action Plan and Budget Allocation. (Danielle Thoe, Housing Manager and Nell Selander, Economic and Community Development Director) Housing Manager Thoe presented the report and indicated that the funding allocated to the CDBG program would remain the same. The following recommendations were presented to the subcommittee. Public Service Grants and grant recommendations: • CORA - $ 20,000 • Friends for Youth - $ 12,200 • HIP Housing - $ 10,000 • Legal Aid - $ 12,300 • Life Moves - $ 26,000 • Magic Tooth Bus - $ 15,000 • Ombudsman Services - $ 15,000 MINUTES SPECIAL MEETING COMMUNITY DEVELOPMENT BLOCK GRANT STANDING COMMITTEE OF THE CITY OF SOUTH SAN FRANCISCO TUESDAY, APRIL 2, 2024 10:00 a.m. City Hall, City Manager’s Conference Room 400 Grand Avenue South San Francisco, CA 94080 5 CDBG STANDING COMMITTEE MEETING APRIL 2, 2024 MINUTES PAGE 2 • Rape Trauma Services Center - $ 14,500 • Samaritan House - $ 19,800 • StarVista - $ 12,000 • YMCA Community Resource Center – No recommendation Mayor Coleman inquired about Magic Tooth Bus funding. Housing Manager Thoe indicated that YMCA and Magic Toothbrush were two new applicants and provided an overview of the services offered by Magic Tooth Bus. Councilmember Nicolas noted that all organizations provide valuable services to the community and suggested the following changes, which Mayor Coleman supported. • CORA - $ 20,000 • Friends for Youth - $ 12,500 • HIP Housing - $ 10,000 • Legal Aid - $ 12,300 • Life Moves - $ 26,250 • Magic Tooth Bus - $ 14.200 • Ombudsman Services - $ 15,000 • Rape Trauma Services Center - $ 15,000 • Samaritan House - $ 19,800 • StarVista - $ 12,100 • YMCA Community Resource Center – No recommendation At Mayor Coleman's request, Housing Manager Thoe provided an overview of the YMCA's funding requests. The YMCA was the only organization not recommended for funding due to non-eligible CDBG programs. City Manager Ranals provided an overview of CDBG expenditure limitations which includes staff costs and noted that the City's Housing Fund cannot provide funding. In addition, City Manager Ranals provided an overview of the support currently offered to the YMCA and Second Harvest Food Bank. Housing Manager Thoe will route an updated funding allocation spreadsheet to the subcommittee. Minor Home Repair Program Housing Manager Thoe presented the proposed organizations for funding and provided an overview of the funding allocation and expenses. No changes were made to the recommendations. ADJOURNMENT Being no further business, Mayor Coleman adjourned the meeting at 10:54 a.m. Submitted by: Approved by: Rosa Govea Acosta, City Clerk James Coleman, Mayor City of South San Francisco City of South San Francisco Approved by the CDBG Standing Committee: / / 6 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:24-445 Agenda Date:7/29/2024 Version:1 Item #:2. Study session regarding amending the Community Development Block Grant Fiscal Year 2024-2025 Annual Action Plan.(Alvina Condon, Management Analyst II) RECOMMENDATION Staff recommends that the Community Development Block Grant Subcommittee of the City Council (CDBG Subcommittee)provide feedback regarding a proposed amendment to the City’s Community Development Block Grant (CDBG) Program Fiscal Year 2024-25 (FY24-25) Annual Action Plan (AAP). BACKGROUND The purpose of this session is to seek guidance from the CDBG Subcommittee on how spend down remaining funds in order to meet the U.S.Department of Housing and Urban Development (HUD)timely expenditure requirements for the City’s CDBG Program.On June 8,2024,the City received a letter from HUD stating the City is not carrying out its CDBG program in a timely manner and that continued noncompliance may result in sanctions, including the loss of funds and other corrective actions. A grantee is considered to be in compliance with timely expenditure rules if,60 days prior to the end of its program year,the balance in the grantee’s line of credit,plus the balance of program income on hand,is not more than 1.5 times the most recent entitlement grant.When this 60-day test was conducted by HUD on May 2, 2024,it was calculated that South San Francisco had an adjusted line of credit balance of 2.25 times its annual entitlement grant.This was not a surprise to staff -it was anticipated that the City would fail to meet timely expenditure requirements due to the failure to complete a public improvement project in FY 23-24,the withdrawal of one of the City’s minor home repair grantees from the Program,and delays in getting public service grantee contracts executed and funds flowing early in the fiscal year. Currently,the City is holding $466,345 in Public Facility Improvement funds,$275,000 for minor home repairs,and $76,579.21 in repaid loans,for a total of $817,924.21.These funds need to be spent down by May 2, 2025 to comply with timely expenditure requirements. DISCUSSION Housing Division staff has been in conversation with Engineering,Public Works,Capital Projects,and Parks & Recreation over the past several weeks on potential projects to spend down these funds quickly and efficiently. Currently,the proposed project includes two components:1)curb ramps throughout the City to provide improved access and 2) an accessible pathway at the Cypress & Pine park in Old Town. Staff considered two other projects.The first was a storm sewer upgrade project that staff determined could not be completed within the time set forth by the timeliness rules.The second was revitalizing Cypress &Pine Park by overhauling the park and providing new playground equipment,but staff determined that project would take too long to deliver,as it would require community engagement and substantial design work.However, providing an accessible pathway at Cypress &Pine with these CDBG funds will set the park up for future funding sources that require the park be accessible - this is included in the proposed project. If the proposed project is acceptable to the CDBG Subcommittee,staff will prepare an AAP AmendmentCity of South San Francisco Printed on 7/26/2024Page 1 of 2 powered by Legistar™7 File #:24-445 Agenda Date:7/29/2024 Version:1 Item #:2. If the proposed project is acceptable to the CDBG Subcommittee,staff will prepare an AAP Amendment shifting all of the available funds to Public Improvements,provide public notice of the amendment,and bring it forward to City Council for consideration in September. FISCAL IMPACT The existing General Fund-funded budgets of the Engineering Division and Housing Division will absorb some design expenses associated with the proposed project,but there is no new impact to the General Fund associated with the proposed project. Currently,the City’s CDBG funds are not at risk due to the City’s noncompliance with timely expenditure requirements.If the City is noncompliant in 2025,the City will be required to meet with HUD headquarters staff in Washington,DC (via zoom).If meaningful progress has not been made toward meeting the timeliness requirements, the City is at risk of HUD withholding future entitlement grants. It is staff’s understanding that HUD is considering changing timeliness rules to be less stringent.The reasoning behind this is that as entitlements decrease over time,it is hard to invest in meaningful community projects if the funds have to be spent within one year.Because of this,and the recent experience of nearby cities not meeting timeliness,staff is not concerned that HUD will be punitive,such as withholding FY 25-26 entitlement funds,if timeliness is not met in 2025.Despite this,staff has recommended a project that has the best chance of meeting timeliness. CONCLUSION Staff recommends that the CDBG Subcommittee provide feedback on the proposed project to meet HUD’s timely expenditure rules. City of South San Francisco Printed on 7/26/2024Page 2 of 2 powered by Legistar™8