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Use of CDBG Funds for Park Projects August 15, 2017 Page 2 at the close of escrow, once building permits for the development were approved. These funds must be used for projects that meet federal CDBG eligibility requirements. Staff reviewed priority projects and recommends programing the funds to the CDBG eligible projects listed in Exhibit 1. With limited funding and resources available, the Parks Recreation and Community Services Agency has criteria to identify and prioritize projects. The criteria, in order of priority, incudes: 1) safety, 2) deferred maintenance, and 3) opportunities to add park recreational open space. Park projects are usually funded by grants and CDBG funds. These funds are leveraged by park acquisition and development funds, and cell tower revenue. An earlier list of CDBG eligible projects also included a skate park. Due to the cost and need for security cameras, it was not possible to fund the full list of possible projects. In following the established criteria referenced above, staff recommends the cameras be approved. Staff will continue to seek funding for a skate park to be added as resources become available. The use of CDBG funds for the projects requires a Substantial Amendment to the City of Santa Ana Annual Action Plan, a 30 -day public comment period, a public hearing, and City Council approval. The following is a tentative timeline of the approval process for the projects: TIME FRAME ACTION August 28, 2017 Commencement of Annual Action Plan Substantial Amendment 30 -day Public Comment Period September 27, 2017 Public Hearing for Substantial Amendment at Community Redevelopment and Housing Commission (CRHC) October 17, 2017 Substantial Amendment to City Council for Consideration and Approval Approval of a Substantial Amendment will be the final step needed to initiate the projects. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal # 5 Community Health, Livability, Engagement Sustainability, Objective # 4 (Support neighborhood vitality and livability), Strategy A (Support the design and construction of parks to provide increased open space and opportunities for recreation throughout the City, construct the Roosevelt Walker Park and Community Center, and develop concepts and proposals for the Library Park in the Civic Center and Centennial Santa Ana River Eco -Park). FISCAL IMPACT On October 20, 2015, the City Council approved an appropriation adjustment recognizing $2,000,000 in Community Development Block Grant program income for FY 2015-16 from sale of City owned property located at 1232 and 1244 South Bristol Street. Funds were carried forward to 65A-2