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RESOLUTION (ID # 3533) DOC ID: 3533 B
CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION
Budget Amendment
From: Allen Parker M/CC Meeting Date: 11/03/2014
Prepared by: Brandon Mims,s, (909) 384-
5122
Dept: City Manager Ward(s): All
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Amending
the 2014-2015 Community Development Block Grant Budget (Fund 119) to Reflect the
Amounts Approved by the Mayor and Common Council on April 21, 2014 in the 2014-
2015 Action Plan. (#3533)
Current Business Registration Certificate: Not Applicable
Financial Impact:
Staff is submitting this budget amendment at the direction of the Finance Department. If
not approved, departments will not have the ability to spend funds from these accounts.
The account allocation break-down and narrative is included in the staff report under
"Financial Impact."
Motion: Adopt the Resolution.
Synopsis of Previous Council Action:
The Mayor and Common Council adopted the Housing and Urban Development (HUD)
Action Plan for Fiscal Year 2014-2015 on April 21, 2014.
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BACKGROUND
The overall goal of the community planning and development programs administered by
the Department of Housing and Urban Development (HUD) and carried out locally by
the City of San Bernardino (City) is to develop viable urban communities by providing
decent housing and a suitable living environment and expanding economic
opportunities principally for low and moderate-income persons.
❑ Decent housing includes: assisting homeless persons to obtain appropriate
housing and assisting persons at risk of becoming homeless; retention of the
affordable housing stock; and increasing the availability of permanent housing in
standard condition and affordable cost to low-income and moderate-income
families, particularly to members of disadvantaged minorities, without
discrimination on the basis of race, color, religion, sex, national origin, familial
status, or disability. In addition, decent housing also includes increasing the
supply of supportive housing, which combines structural features and services
needed to enable persons with special needs, including persons with HIV/AIDS
and their families, to live with dignity and independence; and providing housing
affordable to low-income persons accessible to job opportunities.
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❑ A suitable living environment includes: improving the safety and livability of
neighborhoods; increasing access to quality public and private facilities and
services; reducing the isolation of income groups within a community or
geographical area through the spatial de-concentration of housing opportunities
for persons of lower income and the revitalization of deteriorating or deteriorated
neighborhoods, restoring and preserving properties of special histnric
architectural, or aesthetic value; and conservation of energy resources.
❑ Expanded economic opportunities includes: job creation and retention;
establishment, stabilization and expansion of small businesses (including micro-
businesses); the provision of public services concerned with employment; the
provision of jobs involved in carrying out activities under programs covered by
this plan to low-income persons living in areas affected by those programs and
activities; availability of mortgage financing for low-income persons at reasonable
rates using nondiscriminatory lending practices; access to capital and credit for
development activities that promote the long-term economic and social viability of
the community; and empowerment and self-sufficiency opportunities for low-
income persons to reduce generational poverty in federally assisted and public
housing.
The primary means towards accomplishing the above objectives is to extend and
strengthen partnerships among all levels of government and the private sector,
including for-profit and non-profit organizations, in the furtherance of community
development goals. The 2014-2015 Community Development Block Grant (CDBG),
Home Investment Partnership (HOME), and Emergency Solutions Grant (ESG)
programs are opportunities for the City to continue its partnership with HUD. The City
has participated as an entitlement community in these programs since their creation.
Participating jurisdictions, like the City of San Bernardino, are required to prepare a
Five-Year Consolidated Plan for their formula grant programs (CDBG, HOME, and
ESG). The Consolidated Plan (CP) states in one document its plan to pursue the
aforementioned "community planning and development programs, as well as fair
housing programs." The City is currently operating under its 2010-2015 CP that was
adopted by the Mayor and Common Council on May 3, 2010. The Mayor and Common
Council adopted the Housing and Urban Development (HUD) Action Plan for Fiscal
Year 2014-2015 on April 21, 2014, which included funding through the Community
Development Block Grant (CDBG) program as follows:
2014-2015 ACTION PLAN SUMMARY
Budget 2014-2015
Community Development Block Grant (CDBG) $3,100,000
CDBG Prior Year Funding $1,176,326
Substantial Amendment#1* $650,000 (Commercial Rehabilitation
Program and Job Referral Program)
Substantial Amendment#2* $769,810 (Code Enforcement)
Total $5,696,136
Updated: 10/29/2014 by Georgeann "Gigi" Hanna B Packet Pg. 18
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*Substantial Amendments were not approved with the adoption of the Action Plan.
However, they were authorized after the adoption and are included to represent the
City's total CDBG allocation for 2014-2015, to-date.
The City plans to expend the above-mentioned 2014-2015 proposed HUD fends as
follows (a comparison to last year's funding is included for reference):
Expenditures
Community Development Block Grant (CDBG)
The FY 2014/2015 CDBG allocation is anticipated to be $3,100,000. Activities eligible
for funding under the CDBG program include acquisition of real properties, construction,
rehabilitation or improvements to public facilities, housing related services and activities,
economic development, public services, and program planning and administration.
Eligible activities are required to meet at least one of the three CDBG program National
Objectives, which are: 1) to assist low- and moderate-income persons, 2) aid in the
prevention or elimination of slum or blight, and 3) meet urgent community needs. The
City will expend its allocation of Program Year 2014/2015 CDBG funding for the
following CDBG eligible activities:
CDBG Project Budget Allocation
Administration (20% cap) $620,000
Public Service/Non-profits (15% cap) $462,000
Section 108 Payment $728,376
Mandated Fair Housing Compliance $54,000
Fire Truck Lease Payments $543,200
City Clerk - Business Retention Program $112,500
Community Development - Historic Preservation $26,250
Community Development - AB 2533 Enforcement $48,750
Community Development Long Range Planning $112,500
Community Development Streamline Development $45,000
Process
Parks and Recreation - Community Center Upgrades $461,250
Police Department - Camera Expansion Project $112,500
Public Works - Safety and Mobility Corridor $450,000
Mobile Home Grant Repair Program $100,000
Code Compliance and Blight Eradication Program $300,000
CDBG Program Totals (Including Prior Year $4,176,326
Funding)
Substantial Amendment#1 $650,000
Substantial Amendment#2 $769,810
Updated: 10129/2014 by Georgeann "Gigi" Hanna B Packet Pg. 19
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Revised total After Substantial Amendments $5,696,136
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STATEMENT OF THE ISSUE
In an effort to effectively manage the City's Community Development Block Grant
(CvuG) it is necessary to appropriate the funding into the Lv I<+_LU 10 r[scal Year
budget and allocate it into the following accounts as follows (staff is only requesting to
appropriate amounts that were not originally budgeted into the City Manager's 2014-
2015 Department budget):
Administration Costs (Approved in Action Plan)
ACCOUNT: PURPOSE: AMOUNT:
119-100-0014-5014 Salaries temp/part-time $50,000 (Four Program Interns)
119-100-0014-5028 Unemployment Insurance $0.00
119-100-0014-5029 Medicare $0.00
119-100-0014-5702 New Computers $10,000
Code Compliance and Blight Eradication Program (Approved in Action Plan)
ACCOUNT: PURPOSE: AMOUNT:
119-100-0014-5502 Beautification Loan/Grant $100,000
Program with Inland Housing
Development Corporation
119-100-0014-5502 Commercial Code Compliance$200,000
Assistance Program
Commercial Rehabilitation Program (Approved by Substantial Amendment)
ACCOUNT: PURPOSE: AMOUNT:
119-100-0014-5502 Project Manager $24,999
119-100-0014-5502 Architect $24,999
119-100-0014-5502 Construction Contract $200,000
119-100-0014-5181 Project Mgmt. Contingency $50,002
Job Referral Service (Approved by Substantial Amendment)
ACCOUNT: PURPOSE: AMOUNT:
119-100-0014-5181 Job Referral Service $350,000
FINANCIAL IMPACT
Staff is submitting this budget amendment at the direction of the Finance Department. If
not approved, the City Manager's Office will not have the ability to spend funds from
these accounts which could impact the City's ability to meet the Action Plan
performance requirements.
RECOMMENDATION
Staff recommends approval of the item.
City Attorney Review:
Updated: 10/29/2014 by Georgeann "Gigi" Hanna B Packet Pg. 20
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Supporting Documents:
CDBG Budget Fix Resolution (DOC)
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Updated: 10/29/2014 by Georgeann "Gigi" Hanna B Packet Pg. 21
5.C.a
1 RESOLUTION NO.
2
SOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA
3 3ERNARDINO AMENDING THE 2014-2015 COMMUNITY DEVELOPMENT BLOC
RANT BUDGET (FUND 119) TO REFLECT THE AMOUNTS APPROVED BY THE
4 qAYOR AND COMMON COUNCIL ON APRIL 21, 2014 IN THE 2014-2015 ACTION PLAN
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6 WHEREAS, the City of San Bernardino (the "City") is an entitlement City and eligible to
7 participate in the United States Department of Housing and Urban Development's ("HUD") and
8 receive an annual allocation of Community Development Block Grant ("CDBG") and HOME
9 Investment Partnership Act("HOME"); and
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10 WHEREAS, On May 3, 2010, the Mayor and Common Council of the City of San
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11 Bernardino ("Council") approved the City's Five-Year 2010-2015 Consolidated Plan and the 2010- m
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12 2011 Annual Action Plan that is required to guide and identify needs which the City will address
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13 incrementally for the 2010-2015 period; and M
14 WHEREAS, the 2014-2015 Action Plan was adopted on April 21, 2014 and subsequently o
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15 submitted to the Housing and Urban Development Department as the City of San Bernardino's N
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planned use of Community Development Block Grant, Home Investment Partnership, Emergency X
17 Solutions Grant and Neighborhood Stabilization Grant funds; and
18 WHEREAS, to appropriately track the revenue and expenditures related to the Community m
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19 Development Block Grant (119) program, the amount of revenue approved in the Annual Action 0
20 Plan should reflect the amount appropriated into the City's Annual Budget, recorded in the General
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21 Ledger and monitored for compliance by Program Staff situated in the City Manager's office; and
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22 WHEREAS, in compliance with the California Environmental Quality Act ("CEQA") and a
23 the National Environmental Protection Act ("NEPA") guidelines, the amendments to the City's
24 Five-Year 2010-2015 Consolidated Plan and the 2014-2015 Annual Action Plan and reprogramming
25 of CDBG and HOME federal funds is determine to be an exempt actions pursuant to Section 15332
26 of the CEQA Guidelines and 24 CFR 58. 34(a)(3) of NEPA Guidelines because the propose action is
27 required for federal programs administration and compliance.
NOW 28
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5.C.a
1 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
2 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
3 SECTION 1. That the total revenue for the 2014-2015 Community Development Block
4 Grant shall be increased to the 2014-2015 Action Plan, including Substantial Amendments #1 and
5 #2 amount of$5,696,136.
6 SECTION 2. That the aforementioned revenue amounts that were not included in the City
7 Manager's 2014-2015 Budget originally shall be appropriated and allocated into the City
8 Manager's 2014-2015 Department budgets as follows:
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9 Administration Costs (Approved in Action Plan)
ACCOUNT: PURPOSE: AMOUNT:
10 119-100-0014-5014 Salaries temp/part-time $50,000 (Four Program Interns) m'
119-100-0014-5028 Unemployment Insurance $0.00 c9
11 119-100-0014-5029 Medicare $0.00 0
12 119-100-0014-5702 New Computers $10,000 v
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13 Code Compliance and Blight Eradication Program (Approved in Action Plan)
ACCOUNT: PURPOSE: AMOUNT: c
14 119-100-0014-5502 Beautification Loan/Grant $100,000
15 Program with Inland Housing o
Development Corporation X
16 119-100-0014-5502 Commercial Code Compliance$200,000 x
UM
Assistance Program
17 .�
Commercial Rehabilitation Program(Approved by Substantial Amendment) m
18 ACCOUNT: PURPOSE: AMOUNT: c�
119-100-0014-5502 Project Manager $24,999 0
19 119-100-0014-5502 Architect $24,999 w
20 119-100-0014-5502 Construction Contract $200,000
119-100-0014-5181 Project Mgmt. Contingency $50,002
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Job Referral Service(Approved by Substantial Amendment) Q
22 ACCOUNT: PURPOSE: AMOUNT:
23 119-100-0014-5181 Job Referral Service $350,000
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25 SECTION 3. This Resolution shall take effect upon its adoption and execution in the
26 manner as required by the City Charter.
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1 SOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA
ERNARDINO AMENDING THE 2014-2015 COMMUNITY DEVELOPMENT BLOC
2 3RANT BUDGET (FUND 119) TO REFLECT THE AMOUNTS APPROVED BY THE
3 NIAYOR AND COMMON COUNCIL ON APRIL 21, 2014 IN THE 2014-2015 ACTION PLAN
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
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Common Council of the City of San Bernardino at a meeting thereof,
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held on the day of , 2014,by the following vote to wit:
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Council Members: Ayes Nays Abstain Absent
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MARQUEZ x
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BARRIOS rn
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10 VALDIVIA �
11 SHORETT o
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12 NICKEL M
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13 JOHNSON
14 MULVIHILL
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16 U_
Georgeann Hanna, City Clerk
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18 The foregoing resolution is hereby approved this day of , 2014. m
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19 cU�
20 R. Carey Davis, Mayor
City of San Bernardino
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Approved as to Form: a
22 Gary D. Saenz, City Attorney
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24 By: +
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