HomeMy WebLinkAbout21A - AMEND 16-17 CDBG FUNDSCITY COUNCIL MEETING DATE:
DECEMBER 6, 2016
TITLE:
SUBSTANTIAL AMENDMENT TO 2016-
2017 ANNUAL ACTION PLAN FOR
REALLOCATION OF COMMUNITY BLOCK
GRANT FUNDS
{STRATEGIC PLAN NO. 5, 11
CITY MANA • R
CLERK OF • 4'
❑ As Recommended
❑ As Amended
❑ Ordinance on 1s' Reading
❑ Ordinance on 2n' Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Approve a Substantial Amendment to the 2016-2017 Annual Action Plan for the reallocation of
Community Development Block Grant funds and authorize its submission to the U.S. Department
of Housing and Urban Development.
COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION
At its regular meeting on November 23, 2016, by a vote of 4:0 (Aguinaga, C. and Garcia, A.
absent), the Community Redevelopment and Housing Commission conducted a public hearing
and recommended that the City Council approve a Substantial Amendment to the 2016-2017
Annual Action Plan for the reallocation of Community Development Block Grant funds, and
authorize its submission to the U.S. Department of Housing and Urban Development.
DISCUSSION
In May 2016, the City submitted an Annual Action Plan for fiscal year 2016-2017 to the U.S.
Department of Housing and Urban Development (HUD). The Annual Action Plan is the document
whereby the City formally applies to HUD for the annual federal grant allocations and describes
how those grant funds will be utilized. This plan approved the allocation of Community
Development Block Grant (CDBG) funding to the Roosevelt/Walker Community Center and Park
Project in the amount of $689,261 to supplement a $5,000,000 grant from the State of California.
However, following a competitive bid process for the project, additional funding in the amount of
$1,420,000 is needed to undertake construction of the project.
On June 20, 2011 City Council adopted a resolution authorizing staff to apply for a Proposition 84
"Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection
Bond Act" grant. The City was awarded the grant in the amount of $5,000,000 to develop park
improvements at Roosevelt Elementary School. Improvements will include a 10,000 sq. ft.
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2016-2017 Annual Action Plan Substantial Amendment
December 6, 2016
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Community Center, play equipment area, lighted basketball court, lighted parking lot, security
lighting, running track, synthetic turf sports field, sports lighting, decomposed granite running
track, fencing, landscaping, and site improvements. The public will have access to the center,
play equipment area and basketball court during school hours and the running track and field
after school hours.
On March 4, 2013 City Council approved a reimbursement agreement with the Santa Ana Unified
School District (SAUSD) for the design and construction of the project due to their expertise with
State of California requirements concerning construction on school property. The SAUSD and
City staff reviewed plans and will monitor improvements to ensure the project is implemented per
City approval.
In spring 2016, the SAUSD solicited bids from qualified companies for construction of the project.
This process resulted in a construction cost that was more than the available funding at the time.
After discussions with SAUSD, the recommendation was to re -bid the contract in the fall with the
anticipation of a more competitive price, due to an expected decrease in construction projects.
Additionally, the project was value engineered to further lower the cost and CDBG funds were
allocated to increase funding for the project.
On November 1, 2016 the SAUSD opened bids and the lowest responsive bidder provided a
proposal for $6,300,000. This exceeds the Proposition 84 funds and CDBG funds available due to
the architectural, contingency, public works, and environmental costs associated with the project.
Staff has identified $1,420,000 of unexpended prior year resources, and in an effort to ensure that
the Roosevelt/Walker Community Center and Park is constructed, recommends increasing CDBG
funding by $1,420,000 of unexpended prior year resources for a total of $2,109,261 of CDBG
funds:
PROJECT COSTS/PROJECT RESOURCES
Santa Ana Unified School District Costs
$
7,517,509
Architectural/Soft Costs
$902,509
Construction
$ 6,300,000
Contingency -5%
$ 315,000
City of Santa Ana Costs
$
90,000
Public Works Costs
$ 70,000
Environmental Costs
$20,000
TOTAL PROJECT COST
$
7,607,509
Project Resources
City of Santa Ana Park Acquisition and Development Funds
$ 498,248
State of California Proposition 84 Funds
$ 5,000,000
Community Development Block Funds
$ 2,109,261
TOTAL PROJECT RESOURCES
$
7,607,509
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2016-2017 Annual Action Plan Substantial Amendment
December 6, 2016
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A Substantial Amendment to the 2016-2017 Annual Action Plan (Exhibit 1) is needed to
recognize prior year resources and reallocate the additional funding for the Roosevelt/Walker
Community Center and Park Project. Approval of this item will allow for agreements to be
executed with the SAUSD to cover construction costs and commence construction of the
Roosevelt/Walker Community Center by January 2017.
STRATEGIC PLAN ALIGNMENT
Approval of this item allows the City to meet Goal #5 - Community Health, Livability, Engagement
& Sustainability, Objective #1 (Establish a comprehensive community engagement initiative to
expand access to information and create opportunities for stakeholders to play an active role in
discussing public policy and setting priorities).
FISCAL IMPACT
There is no fiscal impact associated with this action.
Ro ert C. Corte
Deputy City Manager
City of Santa Ana
Exhibit: 1. 2016-2017 Annual Action Plan Substantial Amendment
http://www.santa-ana.org/eda/documents/DRAFT2016-2017SubstantialAmendment. pdf
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Exhibit 1
2016-2017 Annual Action Plan Substantial Amendment at:
http://www.ci.santa-ana.ca.us/cda/documents/DRAFT2016-2017SubstantialAmendment.pdf
EXHIBIT 1
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