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HomeMy WebLinkAboutR8- Economic Development Agency ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
FROM: RONALD E.WINKLER SUBJECT: SECOND YEAR ACTION-
Development Director CONSOLIDATED PLAN
DATE: May 2, 1996
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Synopsis of Previous Commission/Council/Committee Action(s):
On December 4, 1995,the Mayor and Common Council held the first Public Hearing regarding the Second Year Action
Plan component of the 1995-1999 Consolidated Plan. The Public Hearing was the formal initiation of the process to
identify federally funded project activities for the 1996/1997 Program Year by the Community Development Citizens
Advisory Committee(CDCAC). The CDCAC held the last meeting in the process on March 28, 1996 in which the
consideration of project activities was complete.
S ny_opsis of Previous Commission/Council/Committee Action(s)Continued on Next
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Recommended Motion(s):
OPEN PUBLIC HEARING
CLOSE PUBLIC HEARING
(Mayor and Common Council)
MOTION A: That the Mayor and Common Council approve and adopt the Community Development Citizens
Advisory Committee's(CDCAC)recommendations for fiscal year 1996 Community Development
Block Grant(CDBG),HOME Investment Partnership Act(HOME)and Emergency Shelter Grant
(ESG)funded projects that meet the environmental review requirements,except as provided under
Motions C and D.
'/� Recommended Motion(s)Continued on Next Page.....
`1_5
Administrator RONALD E.WINKLER
Development Director
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Contact Person(s): Ronald E.Winkler/Norma Owens Phone: 5081
Project Area(s): City wide Ward(s): One 1)-Seven(7)
Supporting Data Attached: Staff Report-,Draft Second Year Action Plan,Resolutions
FUNDING REQUIREMENTS: Amount: N/A Source: FY 96-97 CDBG,HOME,ESG
Budget Authority: HUD CDBG,HOME,ESG
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Commission/Council Notes:
REW:NJ0:conp1an04.30.01cdc(adw) COMMISSION MEETING AGENDA
MEETING DATE: 05/06/1996
r7 F Agenda Item No.
6-
Economic Development Agency-Request for Commission/Council Action
Second Year Action Plan-Consolidated Plan
May 1, 1996
Page-2-
Synopsis of Previous Commission/Council/Committee Action(s)Continued:
On April 10, 1996,the Mayor and Common Council set the Public Hearing for final review and comments regarding the
draft Second Year Action Plan for May 6, 1996 at 3:00 p.m.
Recommend Motion(s)Continued:
(Mayor and Common Council)
MOTION B: That the Mayor and Common Council approve and adopt CDCAC recommended projects for
CDBG funds that do not meet the environmental review requirements,at this time,and instruct staff
to bring the agreements for funding for these projects back to this body for approval after the
projects have been environmentally cleared.
MOTION C: That the Mayor and Common Council revise the CDCAC's recommendation for funding for the
New Casa Ramona Project from$300,000 to$20,000 to allow the completion of necessary
environmental studies that will determine the most environmentally acceptable approach to
rehabilitating or reconstructuring the facility and allocate the funds to certain rehabilitation project.
MOTION D: That the Mayor and Common Council increase CDCAC's recommendation for CDBG funding for
the Single-Family Rehabilitation Program($284,353-$714,063)and the Neighborhood
Revitalization Program($221,925-$560,500).
MOTION E: That the Mayor and Common Council authorize the mayor to submit these projects as part of the
Second Year Action Plan component of the 1995/1999 Consolidated Plan,to the U.S.Department
of Housing and Urban Development(HUD).
MOTION F: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING A CERTAIN SECOND YEAR ACTION PLAN OF THE
CONSOLIDATED PLAN IN CONNECTION WITH IMPLEMENTING VARIOUS FEDERAL
GRANT FUNDED PROGRAMS.
MOTION G: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING THE MAYOR TO EXECUTE SUCH DOCUMENTS AND
TAKE SUCH ACTIONS AS MAY BE DEEMED NECESSARY TO IMPLEMENT THE
CITY'S SECOND YEAR ACTION PLAN OF THE CONSOLIDATED PLAN.
REW:NJO:conplan04.30.Olcdc(adw) COMMISSION MEETING AGENDA
MEETING DATE: 05/06/1996
Agenda Item No.
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
-----------------------------------------------------------------------------------------------------------------
SECOND YEAR ACTION-CONSOLIDATED PLAN
Background
Beginning with the 1995/1996 Program Year,the U. S.Department of Housing and Urban Development(HUD)
requires that all entitlement jurisdictions prepare and submit an annual action plan for each year of the 1995-1999 HUD
Consolidated Plan. The Consolidated Plan is a comprehensive five(5)year strategy that addresses the use of Federal
grant/entitlement funds including Community Development Block Grant,HOME Investment Partnership Act and
Emergency Shelter Grant Programs to meet the goals of providing decent housing,a suitable living environment and
expanded economic opportunities,principally for low-and very-low income persons. The annual action plan,in this
case the Second Year Action Plan,combines the application and reporting requirements for the three grant programs
available to the City and acts as a one year expenditure plan by indicating the intended use of the resources and the
number of individuals and families to be assisted and describes activities to be undertaken.
An additional HUD requirement introduced in July 1995,is that all activities intended for inclusion in the annual action
plan must have an environmental review and clearance before the plan can be approved and adopted by an entitlement
jurisdiction. Meeting this requirement is particularly critical for a jurisdiction like San Bernardino,which has an
expedited implementation process where the Common Council's adoption of the annual plan allows the execution of
agreements with subrecipents,local agencies,after the City receives funding approval from HUD.
Citizen Participation
the requirement of the HUD Consolidated Plan the City of San Bernardino implemented the community
In response to q ty P
outreach process for the Second Year Action Plan to obtain input from the community on the housing and non-housing
needs of the City. On December 4, 1995,the Common Council held a public hearing in order to solicit public
comments regarding housing and community development needs,and to update the issues and problems which were
addressed in the needs assessment portion of the Consolidated Plan. The Community Development Citizens Advisory
Committee(CDCAC), with members appointed by the Mayor and Common Council,have met extensively since the
public hearing and reviewed all project and activity applications.
Project and Activity Review Process
An unforeseen complication for this year's Action Plan development process,was the failure of the President and
Congress to approve a final federal budget in time for the completion of the Second Year Action Plan. On March 8,
1996,the City received notification that all federal funding for the 1996/1997 Program year would be only a portion of
the 1995/1996 funding allocation. The impact of this directive is that only about 45 percent of next year's funding can
be allocated to programs and activities until the final federal budget is approved and the actual amount of funding that
will be available to the City can be specified. The CDCAC,in its effort to develop recommendations to the Mayor and
Council,approved a two tier funding recommendation which assumes federal funding as low as 38 to 46 percent,
depending on the program or as high as 105 percent,of the 1995/1996 allocation. This approach allows for the
REW:NJ0:eonp1an04.30.01cdc(adw) COMMISSION MEETING AGENDA
MEETING DATE: 05/06/1996
Agenda Item No. �'
Economic Development Agency Staff Report
Second Year Action-Consolidated Plan
May 1, 1996
Page-2-
provision of some level of funding for all eligible projects and activities selected by the CDCAC for recommendation
while recognizing that the final funding authorization from the federal level will probably be closer to the 1995/1996
funding levels. This approach has been reinforced by the fact that on April 25, 1996,the final federal budget was
approved. However,the actual amount of funding that will be available under each of the three programs was still not
known at the time this agenda item was prepared.
Following the review process used over the past several years,the CDCAC conducted the review process by evaluating
126 CDBG applications,conducting interviews and formulating final recommendations using the two-tier,or range of
funding,recommendations previously described. All proposals received were considered by CDCAC and the
recommendations were based on the merit of each individual proposal. Whenever applicable,the CDCAC took into
consideration the needs assessment,the strategic plan,the past performance of applicants and the list of ranked City
priority projects provided by the City Administrator's office. Staff also reviewed the basic eligibility of all programs,
projects and activities recommended by the CDCAC. However,final eligibility will be determined by HUD.
The final summary listing of the projects identified in the Action Plan along with the funding recommendations of the
CDCAC,at the level authorized by HUD in March,are listed in the attached draft Second Year Action Plan. The Action
Plan was drafted and released for public comment on April 5, 1996. A summary of the funding recommendatins is noted
on Tables I,II and IIl.
Staff Recommendation
One assumption made at the time the Plan was released was that the environmental reviews would be completed for
each of the CDCAC recommended projects by the time the Mayor and Common Council would take action in the last
public hearing. The complexity of a number of project proposals,including such issues as the need for historic property
reviews by the State of California,has caused a number of reviews to be delayed and to create the need to modify the
established approach for Mayor and Council approval of projects.
Table IV contains the list of projects not environmentally cleared to date. The first seven projects can be cleared without
substantial difficulty within the next 30 to 60 days and staff recommends that these projects be approved for funding at
the CDCAC recommeded levels with the condition that the agreements for the projects,when prepared,be returned to
the Mayor and Council for final approval.
The New Casa Ramona Project will require additional studies to determine,environmentally,the most acceptable
approach to rehabilitating or reconstructing the facility. The current CDCAC funding recommendation is for$300,000
for archecture and engineering drawings sufficient to allow building permints to be issued for either demolistion or
substantial rehabilitation. Since an environmental determination must be made as to the most acceptable approach for
restoring the facility,funding for pre-construction drawings is premature at this time. Staff recommends that$20,000 in
CDBG funds,the estimated amount needed to complete the environmental studies,be approved and the project
reconsidered for funding for the necesssary and appropriate working drawings, from either the balance of 1996/1997
CDBG funds expected from HUD,or the reallocation of CDBG funds that will occur later this calender year. Staff
REW:NJ0:conp1an04.30.01cdc(adw) COMMISSION MEETING AGENDA
MEETING DATE: 05/06/1996
Agenda Item No. 1
Economic Development Agency Staff Report
Second Year Action-Consolidated Plan
May 1, 1996
Page-3-
further recommends that the funds remaining from the CDCAC funding recommendation for the New Casa Ramona
Project be divided between the Neighbordhood Revitalization Program and the Single-Famility Rehabilitation Program,
both of which enhance the City's very high pripority of improving the existing stock of single-family housing. The
revised recommendations are contained in Table V.
Recommendation
Staff recommends adoption of form Motions A,B,C,D,E,F,and G.
RONALD V WINKLER,Development Director
Development Department
t
REW:NJO:conplan04.30.Olcdc(adw) COMMISSION MEETING AGENDA
MEETING DATE: 05/06/1996
Agenda Item No.
TABLE IA
CDBG
CAPITAL IMPROVEMENT/REHABILITATION/PLANNING PROJECTS
AVAILABLE
REC FUNDING
PROJECT BY CDCAC AS OF 3/96
NO. AGENCY PROJECT (On 3/8/96) (Per HUD Ltr)
1 96-200-Association for Retarded Citizens ARC-School of Hope Rehabilitation $ 25,000 $10,163
2 96-201-Baseline Area Business Association Baseline Area Corridor Improvements $179,448 $72,951
3 96-203-Campfire Boys and Girls San Andreas Council Facility Renovation $ 67,260 $27,343
4 96-204-City of San Bernardino-Facilities ADA Council Chambers Retrofit $ 45,000 $18,294
5 96-205-City of San Bernardino-Facilities Fire Station#9,Reroof $ 30,000 $12,196
6 96-206-City of San Bernardino-Facilities Fire Station#11,Reroof $ 30,000 $12,196
7 96-207-City of San Bernardino-Facilities ADA Restroom Retrofit-3rd Floor City Hall $ 20,000 $ 8,131
8 96-208-City of San Bernardino-Parks Nunez Plunge Plumbing Renovations $200,000 $ 81,306
9 96-209-City of San Bernardino-Planning Neighborhood Revitilization Program $420,500 $170,946
10 96-210-City of San Bernardino-Public Services Sidewalk Replacement Program $180,000 $ 73,175
11 96-211-EDA-Development California Theater Rehabilitation $461,000 $187,410
12 96-212-EDA-Housing Single-Family Rehabilitation Program $574,063 $233,373
13 96-213-EDA-Mobilehome Board Mobilehome Handiworker Program $ 50,000 $ 20,326
14 96-214-EDA-Mobilehome Board Mobilehome Inspection Program $ 50,000 $ 20,326
15 96-215-EDA-Office of Business Development Employment Linkage Program $125,000 $ 50,816
16 96-216- County-Community Services Department Transition Housing Rehabilitation $ 40,000 $ 16,261
17 96-217-Frazee Community Center Mill Stsreet Rehabilitation $ 57,500 $ 23,375
18 96-218-Highland Senior Center Bathroom Rehabilitation $ 18,500 $ 7,521
19 96-219-The Salvation Army Facility Renovation $ 7,625 $ 3,100
20 96-220-YMCA of San Bernardino Valley Uptown Branch Roof Repair $ 35,500 $ 14,432
21 96-221-Casa Ramona,Inc. New Casa Ramona-Design&Engineering $300,000 $ 121,959
TOTALS $2,916,396 $1,185,600
i
TABLE I B
CDBG
PUBLIC SERVICE PROJECTS
Funding
Project Recommended Available
No. AGENCY PROJECT By CDCAC As of 3/96
1 96-100-Arrowhead United Way Information and Referral Services $20,000 $11,176
2 96-101- Authority for the Handicapped-CID Project LEO $10,000 $ 5,588
3 96-102-Boys and Girls Club of San Bernardino Utility Payments $20,000 $11,176
4 96-103- Campfire Boys and Girls San Andreas Kids Klub $20,000 $11,176
5 96-104- Casa Ramona,Inc Project Cotdinator $20,000 $11,176
6 96-105- Children's Fund Referral Activity Program $20,000 $11,176
7 96-106-Children's Network Child Care Payment Assistance $20,000 $11,176
8 96-107-City of San Bemardino-Library Poverty Prevention/Winning Jobs in Tough Times $20,000 $11,176
9 96-108-City of San Bernardino-Parks Westside Steppers Drill Team and Dum Squad $20,000 $11,176
10 96-109-County-Community Services Department Transitional Housing Program-Operations $20,000 $11,176
11 96-110-Family Service Agency of San Bernardino Suicide Prevention $20,000 $11,176
12 96-111-Frazee Community Center Comprehensive Emergency Services-Mill Stsreet $20,000 $11,176
13 96-112-Highland Senior Center Program Administration $20,000 $11,176
14 96-113-House of Ruth Battered Women's Services $20,000 $11,176
15 96-114-Inland Empire Deaf Community Services Deaf Services $20,000 $11,176
16 96-115-Liberia Del Pueblo Inc. Immigration Services $20,000 $11,176
17 96-116-Los Padrinos of Southern California Outreach Counseling $20,000 $11,176
18 96-117-Mary's Mercy Table Utility Payments $19,600 $10,953
County Community Services Department
19 96-118-Option House,Inc Domestic Violence Services $20,000 $11,176
20 96-119-San Bernardino Child Advocacy Program Court Advocates Manager $20,000 $11,176
21 96-120-San Bernardino Communities Prevention/Intervention $20,000 $11,176
Against Drugs
22 96-121-San Bernardino Sexual Assault Services T.E.A.C.H.Non-English/English $20,000 $11,176
23 96-122-S.E.L.F.Law Enforcement Family SELF Rites of Passage-Youth Services $20,000 $11,176
And Youth Center
24 96-123-The Salvation Army Helping Hand Program $20,000 $11,176
25 96-124-YMCA of San Bernardino Valley Youth/Teen Leadership $20,000 $11,176
TOTALS $489,600 $273,600
t
TABLE H
HOME PROGRAM
APPROVED RECOMMENDED
BY CDCAC BY CDCAC
47% of 1995 1996-1997
AVAILABLE PROJECTED
AS OF 3/96 ALLOCATION
Program Administration(10%) $ 68,300 $ 153,300
Mobilehome Park Purchase $478,100 $1,073,100
CHDO Activity(15%) $102,450 $ 229,950
CHDO Administration(5%) $ 34,150 $ 76,650
TOTALS $683,000 $1,533.,.000
TABLE III
EMERGENCY SHELTER GRANT PROGRAM
APPROVED RECOMMENDED
BY CDCAC BY CDCAC
38% OF 1995 1996-1997
AVAILABLE PROJECTED
AS OF 3/96 ALLOCATION
Rehabilitation $ 3,350 $ 9,303
Essential Services $ 2,250 $ 6,248
Operations $32,650 $ 90,657
Homeless Prevention $ 4,500 $ 12,495
Administration $ 2,250 $ 6,248
TOTAL $45,000 L___5124.950
Requested for approval by CDCAC to allow consistency with projected CDBG allocation. Projected
funding is expected as of July 1, 1996.
TABLE IV
1 96-201 Baseline Area Business Association Baseline Area Corridor Improvements
2 96-203 Campfire Boys and Girls San Andreas Council Facility Renovation
3 96-208 City of San Bemaridno-Parks Nunez Plunge Plumbing Renovations
4 96-210 City of San Bernardino-Public Services Sidewalk Replacement Program
5 96-211 EDA-Development California Theater Rehabilitation
6 96-215 EDA-Office of Business Development Employment Linkage Program
7 96-216 County-Community Services Department Transition Housing Rehabilation
8 96-221 Casa Ramona,Inc. New Casa Ramona-Design&Engineering
TABLE V
STAFF RECOMMENDATIONS
CDBG
CAPITAL IMPROVEMENT/REHABILITATION/PLANNING
Recommended Funding
Project Revisions Available
No. Agency Project 4/30/96 as of 3/96
1 96-200 -Association for Retarded Citizens ARC-School of Hope Rehabilitation $ 25,000 $ 10,163
2 96-201 -Baseline Area Business Association Baseline Area Corridor Improvements $179,448 $ 72,951
3 96-203-Campfire Boys and Girls San Andreas Council Facility Renovation $ 67,260 $ 27,343
4 96-204-City of San Bemardino-Facilities ADA Council Chambers Retrofit $ 45,000 $ 18,294
5 96-205-City of San Bernardino-Facilities Fire Station#9,Reroof $ 30,000 $ 12,196
6 96-206-City of San Bernardino-Facilities Fire Station#11,Reroof $ 30,000 $ 12,196
7 96-207- City of San Bernardino-Facilities ADA Restroom Retrofit-3rd Floor City Hall $ 20,000 $ 8,131
8 96-208-City of San Bernardino-Parks Nunez Plunge Plumbing Renovations $200,000 $ 81,306
9 96-209-City of San Bernardino-Planning Neighborhood Revitilization Program $560,500 $221,925
10 96-210-City of San Bernardino-Public Services Sidewalk Replacement Program $180,000 $ 73,175
11 96-211-EDA-Development California Theater Rehabilitation $461,000 $187,410
12 96-212-EDA-Housing Single-Family Rehabilitation Program $714,063 $284,353
13 96-213-EDA-Mobilehome Board Mobilehome Handiworker Program $ 50,000 $ 20,326
14 96-214-EDA-Mobilehome Board Mobilehome Inspection Program $ 50,000 $ 20,326
15 96-215-EDA-Office of Business Development Employment Linkage Program $125,000 $ 50,816
16 96-216-County-Community Services Department Transition Housing Rehabilitation $ 40,000 $ 16,261
17 96-217-Frazee Community Center Mill Stsreet Rehabilitation $ 57,500 $ 23,375
18 96-218-Highland Senior Center Bathroom Rehabilitation $ 18,500 $ 7,521
19 96-219-The Salvation Army Facility Renovation $ 7,625 $ 3,100
20 96-220-YMCA of San Bernardino Valley Uptown Branch Roof Repair $ 35,500 $ 14,432
21 96-221-Casa Ramona,Inc. New Casa Ramona-Design&Engineering $ 20,000 $ 20,000
TOTALS $2,916,396 $1,185,600
THE CITY OF SAN BERNARDINO
SECOND YEAR ACTION PLAN COMPONENT
1996-97 fiscal year
of the
CONSOLIDATED PLAN
for fiscal years
1995-99
Prepared by
CITY OF SAN BERNARDINO
Economic Development Agency
Development Department
��FTtNARD��
City of San Bernardino
Timothy C.Steinhaus
ECONOMIC DEVELOPMENT AGENCY Agency Administrator
•Development Department
Redevelopment
Community Development
Housing
Aril 5, 1996 •San Bernardino Downtown
April Street,Inc.
•Convention and Visitors
Bureau
TO WHOM IT MAY CONCERN:
Office to Business
W
Development
The Federal government makes certain funds available to local governments for expenditure on
community services and housing needs. Under the Community Development Block Grant (CDBG);
HOME Investment Partnership Act (HOME); and, the Emergency Shelter Grant (ESG), the City
receives between $4 and $6 million each year, based on population, level of poverty and funding
availability. The Common Council has appointed a Community Development Citizens Advisory
Committee (CDCAC) to review applications for and proposed uses of these program funds. The
attached report represents the City of San Bernardino's proposed projects at the funding levels
available as of March 1996, for Fiscal Year 1996-1997, for the three programs.
As most of you are aware, because of the failure of the President and Congress to reach agreement
on the final Federal budget for this year and next,the Federal government continues to operate under
what is referred to as a "Continuing Resolution". The impact of not having a final Federal budget
is that the full funding levels for the CDBG, HOME and ESG Programs is currently unknown. The
CDCAC has, as a result, made funding recommendations based on available information as of
March of this year, and the City can expect to receive only 45 percent of this year's allocation, or
approximately $2.5 million . This report, therefore, reflects the current funding situation.
Based on the funding awards from the Federal level in the past several years, the City does expect
to receive additional monies up to, if not more than, this year's level of funding. In anticipation of
the additional funding, the Advisory Committee has prepared a second set of funding
recommendations which will increase the award to each project noted in this report. The Common
Council will review this report, with the current funding recommendations and the Committees's
recommendations for additional funding, should it become available, at the Public Hearing to be held
on May 6, 1996 at 11:00 in Council Chambers.
Should you have any questions regarding this report or the funding situation, please contact me at
(909) 384-5081.
Sincerely,
J
NORMA J. OWENS, Housing Development Specialist III
Economic Development Agency
NJ0Fxnym:2ymv.1tr
201 North E Street, Third Floor•San Bernardino, California 92401-1507•(909)384-5081•(800)232-1267•FAX(909)888-9413
THE CITY OF SAN BERNARDINO
INVITES YOU TO:
A Public Hearing to consider the
Housing and Community Services
to be addressed by Federal Funds
received by
the City of San Bernardino
for the 1996-1997 Program Year
When/Where
Date: May 6, 1996
Place: Council Chambers
Address: 300 North"D" Street, First Floor
San Bernardino, California
Time: 11:00 a.m.
The Housing and Community Service activities are included in the Second Year Action Plan of
the Consolidated Plan to be submitted to the U. S. Department of Housing and Urban
Development on May 17, 1996.
Also,the Action Plan will be available after April 5, 1996, for review and public comment at the
following locations in San Bernardino:
1. Feldheym Library: 555 West Sixth Street
2. Ingram Branch: 1505 West Highland Avenue
3. Rowe Branch: 108 East Marshall Boulevard
4. Villasenor Branch: 525 North Mt. Vernon Avenue
5. County Law Library: 401 North Arrowhead Avenue
6. Cal State San Bernardino Library: 5500 University Parkway
7. San Bernardino Valley College: 701 South Mt. Vernon Avenue
8. Economic Development Agency 201 North"E" Street, Suite 301
Comments will be accepted in writing at the EDA offices (Attn: Action Plan Coordinator)until
May 5, 1996.
If you have questions or need
further information, please contact
the Action Plan Coordinator at
the Economic Development Agency
(909) 384-5081
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SENT BY'-Sen, Ruoen S• Ayala 9164450128- 909 889 0011 ,# 1
COMMITTEE&
RULES
� � � '� IPV AGRIWLTURE AND WATER RE80uRCEi
MMCE•CHAIRI
_OCAL GOVERNMENT IVICE•CKAI.R)
1x0.@ A VII ERANS AFFAIRS IVIC:,C`+AIR)
A 8J111149SS ANO POC"SSION6
C1 ti arn� i> t`,�itttur� LH01&L%ORTA'ON
TRANbPORYATON
hQA
SUBCOMMITTEES:
LEGISLATIVE ADDRESS ATFILETICS 1SUS;NESS AND PROPESSIONSI
RU BEN S. AYALA CREATION OF EXPANSION OF
STATE CAPITOL—ROOM 9108 SCOPE OF PRACTICE
SACRAMENTO.CA 88814 SENATOR SELECT COMMITTEES:
f @1¢)661}•¢8¢@ THIRTY-SEOGND D18TRICT CEFENSE BABE CLOSURES;CHAIR)
MOSILLHOMBS
DISTRICT OFFICE AD�RESa MEMBER STATE PROCUREMENT ANDEX�ENDITJRE
RULES CdMMITTEE FRACTCSS
1 RA20 CENTER AVE,.SUIT•100 JOINT COMMITTEES:
NCrO CUCAMONOA GA 41730 RULES
;8081 480.8882 LEOISLATiVE AUDIT
PrAIRS ALLOCATION AND C.A681FICATION
SAN 9E19NARDINO AREA P-MSON CONYTRUCTON AND 010ERA'ION6
TOLL FREE
I@Ow S¢••9022 SPECIAL COMMITTEES:
SCUD AND HAIARD04S WASTE
May 6, 1996
Esther Estrada, Director
Casa Ramona
1524 West 7th Street
San Bernardino, California 92411
Dear Esther:
I spoke on Friday to Hans Kurtzberg, Director of the
Offics of Historical Preservation, concerning the Casa Ramona
historic preservation review. He promised to have a status
report on my desk this week.
I hope this information is useful to you.
Sincerely,
R BE S. AYALA
Senator, 32nd District
RSA:gd:rb
Entered into Record at
CnuncillCmVDeVCms M1
re Nun.-
City ClerkICDC Secy
City of San Bernardino
C I T Y OF S A N B E R N A D
INTEROFFICE MEMORAND nteredntMb Record at
CITY ADMINISTRATOR'S OFF blict�r�OevCmsMtg: _.r....�
-------
TO: Mayor and Common Council by
FROM: Shauna Clark, City Administrator
re Agenda Item � �� �
DATE: May 6, 1996
SUBJECT: Use of CDBG Funds City ClerkICDC Secy
City of San Bernardino
COPIES: Tim Steinhaus
-------------------------------------------------------------------
Community Development Block Grant (CDBG) funds have become a
critical funding source for a variety of city programs. Because of
this importance, I believe it is crucial that we rethink the manner
in which these funds are currently used.
The city receives these funds through the CDBG entitlement program,
under which local governments of over 50, 000 in population receive
grants on an entitlement basis. Local governments may either use
these funds directly in accordance with CDBG requirements, or they
may subgrant these funds to local public and private non-profit
entities. '
All CDBG projects must meet one of three goals of the program:
1) Benefit low- and moderate-income people;
2) Eliminate or prevent slums and blight; or
3) When no other financial resources are available, meet other
community development needs which are particularly urgent
because existing conditions pose a serious and immediate
threat to the health and welfare of the community.
Overall, at least 70% of the expenditures (after administrative
costs) must be used to fund projects that benefit low- and
moderate-income individuals.
Of the City's total allocation, up to 15% may be used to establish
or expand "public services" . These include services that may be
related to employment, child care, drug abuse, crime prevention,
and other areas. There is no requirement that any of the
jurisdiction's funds be used for public services; there is simply
a cap if the local government agency chooses to use CDBG funds for
these purposes.
In accordance with this requirement, less than 15% of 1996-97
funding is being recommended for public services. Organizations
such as the YMCA, Casa Ramona, Campfire, and other local groups are
all receiving funding under the public service category.
However, the total portion of CDBG dollars going to outside
agencies is approximately $425, 000 of the total $2 . 5 million. The
difference lies in the fact that outside agencies have also been
granted funds for capital improvements, which are not included in
the 15% public services cap.
The organizations benefitting from these funds are important part
of this community. However, considering the needs for code
enforcement and police in San Bernardino, I am recommending that
these funds be phased out and instead be used to pay for those
services.
One possible use of these funds would be to use the funds currently
going to public services as matching funds for federal law
enforcement grants. CDBG recipients may use these funds as a local
match for any other federal grant program, as long as the the
program is CDBG-eligible. A case may be made that law enforcement
is a public service activity, making it CDBG-eligible and thereby
possible to use the public service funding to match other grants.
I have attached some information that is related to this use.
Another option would be to use these funds to pay for additional
code enforcement officers. Most code enforcement activity is
concentrated in low- to moderate-income areas, and would be CDBG
eligible.
I realize that reducing the funding of our non-profit organizations
would be a difficult choice to make. However, at this time no
other funding sources have been identified to provide the increased
police and code enforcement that the community needs.
MAY-06-1996 17:21 SIMON AND COMPANY 202 659 5234 P.02
SIMON AND COMPANY
INCORPORATED
Intergovernmental Relations and Federal Affairs
1001 Connecticut Avenue, N.W. • Suite 435 • Washington, D.C. 20036
(202) 659.2229 • Fax (202) 659-5234
MEMORANDUM
TO: Shauna Clark
FROM: Len Simon
Graham Bouchoux
SUBJECT: CDBG Allocation as a Match for COPS Programs
DATE: May 6, 1996
Following up on your trip to Washington last week and our conversation with Laurie
Sassoon of your staff today, we have obtained documentation that describes in detail the statutory
authority for communities to use a percentage of their annual allocation of funding under the
Community Development Block Grant as matching funds for other federal programs. As the
attached describes, communities may use up to 15% for the programs that fall under the category
of"public services." This category of eligible activities specifically includes "crime prevention."
(See 24 Code of Federal Regulations part 570 for more on the "public services" category.)
We hope this information is useful as the City takes the first steps today towards directing
a portion of its FY97 CDBG funds to the COPS Office Universal Hiring Program. We look
forward to working with the City to integrate the CDBG program and the Universal Hiring
program, or other as-yet-unannounced COPS programs. Please let us know if you have questions
or if we may be of further assistance.
We look forward to talking with you soon.
cc: Mayor Minor
MA`r'-06-1995 17:22 5I NON AND COMPANY 202 659 5234 P.03
U.S_ Department of.Justice
Office of Community Oriented Policing Services
Oft$of aw ckneal Counw WdAiVwx,D.C. 10530
March 10, 1995
MEMORANDUM To INTERESTED P TIES
FROM: TONY SUTI
SUBJECT: Use t to m Funds as
C22S Match
For your information, please find attached a March 3, 1995
legal opinion from the Office of General Counsel, Department of
Housing and Urban Development on the specific parameters-of the
use of Community Development Block Grant funds as matching funds
for COPS grants.
The opinion is al very favorable one, with the only
significant qualification being the 15V statutory restriction on
the use of CDBG funds f6r_ "public sex-vices. " As the opinion
states, " [w]hile this restriction is not a barrier to using CDBG
funds as the non-Federal match for a COPS grant, some recipients
may be unable to devote their limited public services funds to
this activity without exceeding the 15 percent cap. ',
There is a slight factual error in second paragraph of the
opinion describing the COPS grants, but I do not believe that it
affects the analysis . I will confirm this point with HUD.
Please let me know if you have any questions.
MAY-06-19136 17 23 SIMON AND COMPANY 202 559 5234 P.04
*.. U.S.Department of Housing and Urban Development
washingM D.C.20410-OSM RECEIVED OFFICE OF
COMMUNITY 3 1995
ORIENTED
MAR MAR `POLICING SERVICES
-
OINQE OF fXNiNAL C011NSFI
95 MAR -9 P11 10 5 3
Mr. Tony Sutin
General Counsel
Office of Community Oriented
Policing Services
1100 Vermont Avenue, N.W.
Washington, DC 20530
Dear Mr. Sutin:
This responds to your February 17, 1995, request for advice
regarding the use of Community Development Block Grant (CDBG)
funds to meet the 25 percent non-Federal match required of
recipients of Community Oriented Policing (COPS) grants by
section 1701(1) of the Omnibus Crime Control and Safe Streets Act
of 1968 (as amended by Title I of the Public Safety Partnership
and Community Policing Act of 1994) .
It is our understanding that at least 85 percent of funds
provided by COPS grants must be used to hire and train or rehire
law enforcement officers, in order to increase the number of
officers deployed in community-oriented policing. The remaining
15 percent of grant funda"-qay be used for equipment, technology,
support systems, and overtime pay, again provided that the funded
activity will increase the number of officers deployed in
community policing
As you know, section 105(a) (9) of Title I of the Housing and
Community Development Act of 1974 authorises the use of CDBG
funds for payment of the non-Federal share required in connection
with a Federal grant-in-aid program, `there that program is
undertaken as an activity or activities assisted under Title I.
Section 105(a) (8) of Title I authorizes the use of block grant
funds for the provision of public services, including those
concerned with crime prevention. Consequently, the block grant
statute permits the use of CDBG funds for the local share of COPS
activities which are undertaken as CDBG-assisted public services.
This subjects such activities to all CDBG program requirements,
including those set forth below.
First, all Title I funds must meet one of the following
broad national objectives: (1) Benefit low and moderate income
persons; (2) Aid in the prevention or alimination of slums or
blight; OR (3) Meet comuunity development needs having a
particular urgency. This requirement is implemented by section
570.208 of the CDBG regulations, 24 'CFR part 570. It would
appear that COPS-funded activities would most typically qualify
as activities which benefit low and moderate income persons.
MAY-06-1996 17024 SIMON AND COMPANY 202 659 5234 P.05
2
This generally would mean that the areas served by COps activi-
ties are primarily residential in character and have at least 51
percent low and moderate income residents.
In addition to the national objectives, which apply to all
Title I funds, many CDBG eligibility categories carry specific
requirements . These requirements also apply to funds Which are
eligible under the non-federal share category. consequently, in
order to pay the non-Federal share of a Cops grant with CDBG
funds, the funded activity must meet all requirements applicable
to activities eligible for full CDBG funding as public services.
In this regard, in order for any activity to qualify for
CDBG funding as a public service, the activity must either be a
new service, or a quantifiable increase in the level of an
existing service above that which has been provided by or on
behalf of the unit of general local government in the previous
twelve months . The Cops program appears to ensure that funded
activities will meet this requirement by imposing a
nonsupplanting requirement on Cops funds, in section 1704(a) of
the governing statute'.
In addition, no CDBG recipient may use more than 15 percent
Of its total CDBG gran on activities that qualify for funding as
public services. Funds used by a grantee for the non-Federal
share required by another Federal grant-in-aid program are
included in this calculal�ign. While this restriction -is not a
barrier to using CDBG funds as the non-Federal match for a Cops
grant, some recipients may be unable to devote their limited
public services funds to this activity without exceeding the 15
percent cap.
Finally, even if payment of the non-Federal share required
by the COPS program would most all CDBG eligibility requirements,
grantees may decide not to spend their CDBG funds on this
activity. Recipients have discretion to Allocate CDBG funds
among eligible activities according to their community's percep-
tion of its local needs and priorities. If a recipient govern-
ment did wish. to use its CDBG funds to match COPS funds, the
funded activities would have to be included in the grantee's
final statement of community development objectives and projected
use of funds, which would be submitted to HUD before CDBG funds
were released to the grantee.
• h1A`r'—G_i6-1'?'�6 17 25 SIMON AND COMPANY 202 659 5234 P.06
s
3
Y have enclosed copies of applicable statutes and regula-
tions for your information. I hope this response will assist you
in advising jrour applicants and grantees regarding the avail-
ability of CDBG funds to match COPS funding. Please let me know
if my office can be of further assistance.
Sin ere"
4A47t4. k-
William R. Barth
. Resistant General Counsel
Community Development Division
1
s