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Home My WebLink About29A - CDBG AMENDMENTSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 4, 2013 TITLE: COMMUNITY DEVELOPMENT BLOCK GRANT FISCAL YEAR 2013 -2014 ANNUAL ACTION PLAN SUBSTANTIAL AMENDMENTS FOR REALLOCATION OF FUNDS CITY MANAGER i 11 ki I i CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordnance on 2 o Reading ❑ Implementing Resolution ❑ Set Public Hearing For_ CONTINUED TO FILE NUMBER 1. Approve three projects up to a total of $750,000 of available prior year CDBG funds. 2. Approve a substantial amendment to the 2013 -2014 Annual Action Plan, approving the reallocation of Community Development Block Grant funds, and authorizing its submittal to the U.S. Department of Housing and Urban Development. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION At its regular meeting of October 1, 2013, by a vote of 6:0 (Aguinaga absent), the Community Redevelopment and Housing Commission conducted a public hearing and recommended that the City Council approve a substantial amendment to the 2013 -2014 Annual Action Plan approving the reallocation of Community Development Block Grant funds, and authorizing its submittal to the U.S. Department of Housing and Urban Development. FINANCE ECONOMIC DEVELOPMENT AND TECHNOLOGY COMMITTEE REVIEW The Finance, Economic Development and Technology Committee (Committee) reviewed this matter at its meeting on August 6, 2013 and recommended that the City Council proceed with said actions. The Committee also recommended three City projects be forwarded to the City Council for consideration along with up to two additional capital projects from specified outside entities. DISCUSSION In May 2013, the City Council approved and the City submitted to the U.S. Department of Housing and Urban Development (HUD) an Annual Action Plan (Plan). The Plan is the document whereby the City formally applies to HUD for the annual federal grant allocations (CDBG, HOME, ESG, and HOPWA) and describes how those grant funds will be utilized. 29A -1 CDBG FY 13 -14 Annual Action Plan Substantial Amendments November 4, 2013 Page 2 The City Council considered funding an additional project that was not on the proposed action plan, but did not want to delay the submittal of the action plan. Therefore, the City Council gave authority to the Finance, Economic Development and Technology Council Committee to research the matter further. In June, the Committee requested that staff review the amount of unencumbered prior year CDBG funds available. City staff reconciled the fund, reserved an amount for future contingencies, and determined that $750,000 could be used to fund additional CDBG - eligible programs /projects. Due to the funding caps placed on the Administration /Planning and Public Services categories, these funds must be used in other CDBG eligible categories. The Committee requested staff return to them with a list of City projects in need of funding. Based on the Committee direction, staff requested project proposals from City departments where a list of capital projects was compiled and prioritized for the most in need of funding. During this process, staff also communicated with the two non - profit organizations and requested a list of projects for consideration. The Delhi Center submitted five projects and also indicated that they were not currently collaborating with The Grain Project. After an eligibility and feasibility review, one project from the five submitted from Delhi Center was determined to meet CDBG requirements and have sufficient information to proceed. In August 2013, staff presented the one non -city and the three City projects to the Committee. Representatives from the Delhi Center were present and requested that they be considered for funding. Additionally, a representative from The Grain Project indicated that she had been in communication with the Delhi Center regarding project collaboration. The Committee directed staff to work with the two organizations to identify any potential projects they were planning. The three City projects and one non -city project are further described in the proposed Annual Action Plan Substantial Amendment (Exhibit 1) and are listed in the table below for your review. Project Estimated Cost El Salvador Park Improvement $457,500 Public Facilit Center tJ rades $60,000 Neighborhood Street Improvements $242,000 Delhi Center ADA Improvements $200,000 Total $959,500 Available $750,000 _Funding Surplus / (Deficit) _ _ j$209,500�__ The Committee was informed that funding all of the suggested projects resulted in a deficit of $209,500. Notwithstanding that fact, the Committee recommended that all four projects move forward for consideration by the full City Council, where it will decide to either reduce funding for 29A -2 CDBG FY 13 -14 Annual Action Plan Substantial Amendments November 4, 2013 Page 3 all projects or eliminate one or more projects in order to stay within the available budgeted allocation of $750,000. On September 9, 2013, the City began the citizen participation process and made the draft Substantial Amendment to the 2013 -2014 Action Plan Report available to the public for a 30 -day period. A public hearing was held on October 1, 2013 before the Community Redevelopment and Housing Commission, which is the governing body that has been identified as having the authority to hold public hearings on such matters. Prior to submission to HUD, the Plan's Substantial Amendment will need to be revised to include the modifications made by the City Council on November 4, 2013, in order to provide for the reallocation of $750,000 to CDBG - eligible capital improvement projects. Legal notice for this CDBG substantial amendment was published in the Orange County Register, La Opinion and Nguoi Viet News on September 9, 2013, FISCAL IMPACT Funds for the capital improvements will be available in the CDBG account (no. 13518783). APPROVED AS TO FUNDS AND ACCOUNTS: Nancy Fong, Fr ancisco Gutierrez Interim Exec ve Director Executive Director Community Development Agency Finance & Management Services Agency NFIFHIkg Exhibit: 1. 2013 -2014 Annual Action Plan Substantial Amendment — CDBG 29A -3 29A -4 Limlid 2010 /11. 2014 -15 CITY OF SANTA ANA CONSOLIDATED PLAN I SUBSTANTIAL Al 1N ACTION PLAN 2013 /14 ACTION PLAN Introduction .................. ............................... Amendments..... ...... ................... Citizen Participation ................... �. Exhibits Exhibit 1- Public Hea Exhibit 2- Proposed 10/23/2013 ary PAGE ........ —2 �l ...............3 1 29A -6 ...........4 ...........7 SUBSTANTIAL AMENDMENT TO THE 2013 -2014 ANNUAL ACTION PLAN SUBSTANTIAL AMENDMENT TO THE' 2010/11- 2014115 CITY OF SANTA ANA CONSOLIDATED PLAN 2013/14 ACTION PLAN YEAR 2013 -2014 ACTION PLAN INTRODUCTION This document is a Substantial Amendment to the City of Santa,Anafs Fiscal Year 2013 -14 Annual Action Plan, which was submitted to the U.S. Department of Housing and Urban Development (HUD) on May 15, 2013. Title 24 Section 91.505 of the Code of Federal Regulations stipulates that participating jurisdictions shall amend their approved plans whenever they make one of the following decisions: 1. To make a change in its allocation, priorities or a'change in the method of distribution of funds; 2. To carry out an activity, using funds from any program covered by the Consolidated Plan (including program income) not previously described in the ziction plan; or 3. To change the purpose; spope, location, orbenefJdar es of an activity. The Regulation further. requires that'furisdictions identify in their citizen participation plans the criteria they will use for, determining what constitutes a substantial amendment. 1. Consistent with these requirements, the Citizen Participation Plan adopted by the City of Santa Ana as a cOmpcineiitof its 2DiG/11- 2014/15 Consolidated Five Year Plan identifies three criteria that will require,a substantial amendment: 1. Changes in the use of GDBG funds from one eligible activity to another; 2. An activity is undertaken that was not previously included in the Consolidated Plan or subsequent action plans. 3. More thafr 3Q, percent of the most recent annual federal grant allocation is reallocated to other eligible program activities within the fiscal year. The proposed amendment meets one of these three criteria, and therefore requires a substantial amendment. SUBSTANTIAL AMENDMENT To THE 2013 -2014 ANNUALAcnoN PLAN 29A -7 10/23/2013 2010/11- 2014 -15 CITY OF SANTA ANA CONSOLIDATED PLAN SUBSTANTIAL AMENDMENTTO THE 2013/14 ACTION PLAN AMENDMENTS The City is amending the 2013 -2014 Action Plan to include the following projects: + Public Facilities and Improvements Project Name: El Salvador Park Improvement Project Description: Construct a community garden in the unused east parking lot. Improvements include fencing, decomposed granite surfacing, planter boxes, tool shed, compost bins, etc. Construct a picnic area In the undeveloped area north of the existing playground. Improvements include plcnictable /pads, barbecues, security lighting, irrigation, landscaping, etc. Estimated Cost: $457,500 Public facilities and improvements Project Name: Public Facility Center UP Project Description: This project will iq, and install new upgraded doors at two doors are structurally week and pose a Estimated Cost: $60,000 • Public Facilities and ImprouE Project Name: Neighborhoo Project Description: This prc neighborhood streets in the Estimated Cost - 52411000 + Public Faciiities and Project 414tne: Delhi Project Description: M will in morial its imprs will in two activities to remo% is facility centers of the of sections of improving sections of the facility to be The iyity:has identified approximately,$750,000 in Community Development Block Grant funds available to commit. The tg0,1 estimated cost of the proposed substantial amendment is $959,000. Therefore a decision will be made of projects to be funded at the City Council meeting wher..e,the City Council will take action on the Substantial Amendment to the 2013- 2014 Action Plana For purposes of providing information to the public all potential projects are being listed. CITIZEN PARTICIPATION In accordance with 24 CFR 91.105 {c } (3) for local governments, the substantial amendment Public Notice for the use of CDBG funds was released for citizen review and comments on September 9, 2013. During the 30 -day public comment period from September 10, 2013 through October 9, 2013 the Public Notice for the Draft Substantial Amendment was made available during regular business hours between 8:00 a.m, and 5 :00 p.m., Monday through 10/23/2013 29A -8 SUBSTANTIAL AMENDMENT TO THE 2013 -2014 ANNUAL ACTION PLAN SUBSTANTIAL AMENDMENT TO THE 1 2010/11- 2014/15 CITY OF SANTA ANA CONSOLIDATED PLAN 2013/14 ACTION PLAN Thursday in the offices of the Housing Department, 20 Civic Center Plaza, 3rd Floor, Community Development Agency, 20 Civic Center Plaza, 6th Floor, Office of the Clerk of the Council, 20 Civic Center Plaza, Room 809, between the hours 10:00 a,m. and 9:00 p.m., Monday through Thursday, 10:00 a.m. and 6:00 p.m., Friday at the Main Public Library, 26 Civic Center Plaza, Santa Ana, California and on the city's website. The Community Redevelopment and Housing Commission of the City of Santa Ana held a public hearing on October 1, 2013, at 6 :00 p.m„ at the City Council Chambers, 22 Civic Center Plaza, Santa Ana, California 92701. Following the 30- day public comment period and public hearing, the City Council of Santa Ana will hear and vote on the Substantial Amendment to the 2013 -14 Action Plan on November 4, 2013. A copy of the public hearing notice is presented in Exhibit 1. A summary of citizen comments received at the public hearing and responses to these citizen comments are, resented in Exhibit 1. SUBSTANTIAL AMENDMENT TO THE 2013 -2014 ANNUAL ACnoN PLAN 29A -9 19%2312013 2010/11 - 2014 -1S CITY OF SANTA ANA CONSOLIDATED PLAN SUBSTANTIAL AMENDMENT TO THE 2013/14 ACTION PLAN 10/23/2013 29A -10 SUBSTANTIAL AMENDMENT TO THE 2013 -2014 ANNUAL ACTION PLAN NOTICE OF PUBLIC HEARING TO BE HELD BY THE CITY OF SANTA ANA COMMUNITY REDEVELOPMENT & HOUSING COMMISSION ON THE PROPOSED SUBSTANTIAL AMENDMENT TO THE 2013 -2014 ACTION PLAN AND COMMENCEMENT OF THE 30 -DAY PUBLIC COMMENT PERIOD. NOTICE IS HEREBY GIVEN that the Community Redevelopment and Housing Commission of the City of Santa Ana will conduct a public hearing on October 1, 2013 at 6:00 p.m. at the City Council Chambers, 22 Civic Center Plaza, Santa Ana, CA 92701 on the proposed action approving the substantial amendment to the City's 2013 -2014 Consolidated Plan Annual Update. On November 4, 2013 on or about 6:00 p.m. at the City Council Chambers, the City Council will take action on requests to authorize submittal of the substantial amendment to the U.S. Department of Housing and Urban Development (HUD). The proposed amendments will reprogram Community Development Block Grant funds currently available to the City. The draft substantial amendment will be available for public review from September 10, 2013 to October 9, 2013 at the following locations Monday Through Friday during normal business hours: Housing Department, 20 Civic Center Plaza, 3rd Floor; Community Development Agency, 20 Civic Center Plaza, Wl' Floor; Office of the Clerk of the Council, 20 Civic Center Plaza, Room 809; and the Main Public Library, 26 Civic Center Plaza, Santa Ana, California. The draft will also be available on the City s website at: http:// www .santa- ana.org /eda /default.asp. Written comments on them must be submitted to the Community Development Agency on or before October 9, 2013. Publish: September 9, 2013 29A -11 SUBSTANTIAL AMENDMENT TO THE 1 2013/14 ACTION PLAN 2010/11- 2014/15 CITY OF SANTA ANA CONSOLIDATED PLAN SUMMARY OF PUBLIC COMMENTS SUMMARY OF PUBLIC COMMENTS RECEIVED DURING 30 -DAY COMMENT PERIOD AND STAFF RESPONSE No Comments 10/1/2013 REDEVELOPMENT & HOUSING COMN No Comments SUBSTANTIAL AMENDMENT TO THE 2013 -2014 ANNUAL ACTION PLAN 29A -12 10/23/2013 2010/11- 2014 -15 CITY OF SANTA ANA CONSOLIDATED PLAN ( SUBSTANTIAL AMENDMENT TO THE 2013/14 ACTION PLAN 10/23/2013 29A -13 SUBSTANTIAL AMENDMENT TO THE 2013 -2014 ANNUAL ACTION PLAN Revised 10/1/13 Grantee Name: Santa Ana. CA 05/08/12 Exhibit 3 Exhibit 1 29A -14 Revised 10/1/13 lira n7-co NI.I.. C--« . w.._ 'A 05/08/12 Exhibit 3 Exh gx-1 Revised 10/1/13 GrantPa NAma• Cant. A.. rn Revised 10/1/13 Grantee Name- Santa ana re 05/08/12 Exhibit 7 Exhibit 1 29 -17 ��. \ 0 r y />w� T a� «�� ANA \� }fit .% e\ a Rev ®eeJ