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HomeMy WebLinkAbout07.E- City Manager Staff Report a o City of San Bernardino Request for Council Action N are � Date: December 19, 2016 _ To: Honorable Mayor and City Council Members a a� w From: Mark Scott, City Manager v By: Edward Flores, Consultant N Diane Cotto, CDBG Coordinator o U rn Subject: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE N CITY OF SAN BERNARDINO APPROVING A SUBSTANTIAL AMENDMENT TO THE Ln HUD FISCAL YEARS 2015-2019 CONSOLIDATED PLAN AND FISCAL YEAR 2016- N L 2017 ANNUAL ACTION PLAN. N LL Recommendation Close the hearing and adopt the Resolution. r _ d Background E The purpose of this staff report is to: E 1. Reconfirm the adjustments that were made at the May 2, 2016, Mayor and City Council meeting to the FY 2016-2017 Annual Action Plan; and 2. Substantially amend: n a. The FY 2015-2019 Consolidated Plan to bring the City's goals and o objectives in line with what can be achieved with the approved resources; and o CL b. Allocate unspent/uncommitted CDBG funds from previous years to a variety of capital improvement activities that will improve the quality of City public facilities and infrastructure, improve neighborhood "a conditions, and promote economic development within the community. E a Discussion FY 2016-2017 Annual Action Plan U) On May 2, 2016, the Mayor and City Council approved the City's HUD Fiscal Year (FY) 2016-2017 Annual Action Plan. During this meeting some adjustments were made to E r r a Packet Pg.345 the activities that were to be funded with FY 2016-2017 federal funds. The "Summary of HUD Federal Funds Allocations for FY 2016-2017" (Attachment 1) acknowledges the a revisions to the FY 2016-2017 Annual Action Plan at the May 2 meeting and represents o the City's annual application for federal funds (e.g. CDBG and ESG) that was submitted to HUD by the May 15, 2016, deadline. N Substantial Amendment to the FY 2015-2019 Consolidated Plan The City recently submitted the 2015-2016 Consolidated Annual Performance and Evaluation Report (CAPER) to the Department of Housing and Urban Development (HUD). The CAPER identifies the City's progress in meeting its 5-year community 'a development and housing goals. Staff's assessment of the accomplishments for the first d year of the FY 2015-2019 Consolidated Plan (CP) demonstrated that we are not on track to meet several goals and objectives listed in the CP. y 0 To resolve this issue City staff proposes to revise numeric accomplishment goals stated in the CP. This amendment to the CP goals and objectives will position the City to N accomplish a successful Consolidated Plan cycle by revising these goals and objectives LO to make them realistic and attainable. These revisions can be found in "Proposed N Amendments to the FY 2015-2019 Consolidated Plan Goals and Objectives (Attachment 11). i Substantial Amendment to the FY 2016-2017 Annual Action Plan LL Communities that receive entitlement funds from the CDBG program are required to use these funds in a timely manner. Large backlogs of CDBG dollars can negatively impact c the entire program and result in the City not meeting HUD's CDBG expenditure standards. E To promote timely CDBG performance, City staff has identified the status of underperforming CDBG activities. Thus City staff wishes to reprogram approximately a $1,500,000 in CDBG funds to "shovel ready" projects. Staff also wishes to allocate $21,176 in uncommitted/unspent ESG funds to pay for unforeseen administrative costs o associated with the oversight of the City's ESG Program. Attachment III identifies activities that meet both Consolidated and General Plan goals and objectives. Because U) the City is restricted on the amount of federal dollars it can spend on public service co activities and administration in any given year, these funds are directed only to eligible capital improvement projects. 0 CL At the September 19 MCC meeting, staff was directed to meet with the CDBG Ad Hoc � Committee to discuss the proposed substantial amendment to the FY 2016-2017 Annual Action Plan prior to seeking MCC approval. In our efforts to meet this E requirement, City staff was informed that the CDBG Ad Hoc Committee would not be meeting until 2017. In order to meet the requirement to initiate the proposed projects E listed in Attachment III and meet the CDBG expenditure thresholds by or before April 2017, it is essential that the substantial amendment to the Annual Action Plan be approved as soon as possible. Therefore City staff is seeking City Council approval of this item. E s w a Packet Pg. 346 R c c a ti 0 Citizen Participation The City's Citizens Participation Plan requires that a Substantial Amendment to the N City's Consolidated or Annual Action Plan be made available to citizens for public >- comment and to be considered by the City Council at a public hearing. In accordance LL with the Citizen Participation Plan, a notice was published in the San Bernardino Sun on September 15, 2016 inviting the public to provide comments on the Draft Substantial Amendment to FY 2015-2019 Consolidated Plan and FY 2016-17 Annual Action Plan. a d Y The Draft Substantial Amendment to the City's 2015-2019 Consolidated and 2016-2017 a Annual Action Plan was made available for public review for a thirty (30) day period, at y the following locations: 0 1. City Clerk's Office, 300 North "D" Street, San Bernardino, CA, 92418 N 2. City Manager's Office, 300 North "D" Street, San Bernardino, CA, 92418 LO 3. Norman F. Feldheym Central Library, 555 W 6th St, San Bernardino, CA 92410 N L The public hearing was originally heard at the October 17 Mayor and City Council >- meeting. No comments were received by the public; however, staff was directed by the Mayor and City Council to meet with the CDBG Ad Hoc Committee to discuss the 2 proposed substantial amendment to the FY 2016-2017 Annual Action Plan prior to seeking MCC approval. After several attempts to schedule this meeting, City staff was c informed that the CDBG Ad Hoc Committee would not meet again this calendar year. Given the short timeframe to meet the CDBG expenditure thresholds by or before April 2017, City staff would like the Mayor and City Council to consider the approval of this item. When the CDBG Ad Hoc Committee meets in January, it will be timely to discuss the next year's funding plan. a Environmental Compliance In accordance with Section 15378 of the California Environmental Quality Act (CEQA) and 24 CFR 58.34(a) of the National Environmental Protection Act (NEPA), the development and/or revision to any planning documents like the Consolidated Plan or co Annual Action Plan is exempt and therefore, not subject to its provisions. Activities I- awarded grant funds through the substantial amendment process of the FY 2016-2017 Annual Action Plan are subject to both CEQA and NEPA requirements. The $ environmental review records documenting compliance will be prepared prior to the issuance of a Notice to Proceed for each activity. E Fiscal Impact New projects to be added to the Fiscal Year (FY) 2016-2017 Action Plan will be funded E with unspent/uncommitted CDBG and HESG funds provided by the U.S. Department of Housing and Urban Development. There will be no impact to the City's General Fund by approving this item. d E w a Packet Pg. 347 7.E.a Conclusion = _ The above-mentioned amendments to the FY 2015-2019 Consolidated and 2016-2017 a Annual Action Plan are meant to realign our federal-funded programs for success and to 0 create a transformative impact in our community, and staff recommends the adoption of this Resolution. o N Attachments Attachment 1 — CDBG 2016-2017 Allocation Breakdown Attachment 2 — Five-Year Strategic Plan for the Fiscal Year 2015-2019 Consolidated Plan. a Attachment 3 — Fiscal Year 2016-2017 Annual Action Plan Substantial Amendment o Ward: Citywide 0 U rn Synopsis of Previous Council Actions: N LO • September 19, 2016— Resolution of the Mayor and City Council of the City of N San Bernardino to approve the 2015-2016 Consolidated Annual Performance m and Evaluation Report (CAPER) and authorization to submit to the Department of Housing and Urban Development. y U. • May 2, 2016 - Request for Council Approval of the One-Year 2016-2017 Action Y Plan (#4423). ° C m • April 8, 2016- Public Hearing and Request for Council Approval of the One- -Ea Year 2016-2017 Action Plan (At Meeting of March 7, 2016, Item Continued to E March 21, 2016; Item Continued to April 4, 2016; Item Continued to April 8, a 2016) (#4268). _ r • April 6, 2015 - Resolution of the Mayor and City Council of the City of San Bernardino Approving the 2015-2019 Consolidated Plan and 2015-2016 Action Cnn Plan for Federal Community Development Block Grant (CDBG), Home 00 Investment Partnership (HOME) Interagency Agreement, Neighborhood Stabilization Program (NSP), Emergency Solutions Grant (HESG) Entitlement Grant Programs and Approving Substantial Amendment#5 to the 2014-2015 Action Plan. (#3732)lnsert information in list form if applicable. w m E (D E a .Q c m E R w r Q Packet Pg.348 R 3 1 RESOLUTION NO. a 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF N 3 SAN BERNARDINO APPROVING A SUBSTANTIAL AMENDMENT TO THE HUD FISCAL YEARS 2015-2019 CONSOLIDATED PLAN AND FISCAL YEAR 2016-2017 N 4 ANNUAL ACTION PLAN 5 WHEREAS, the City of San Bernardino participates in the United States Department f0 c 6 of Housing and Urban Development's (HUD) Community Development Block Grant a- (CDBG) and Emergency Solutions Grant(HESG) Programs; and 7 WHEREAS, on May 2, 2016, the Mayor and Common Council approved the Fiscal o 8 Year (FY) 2016-2017 Action Plan that describes the City's planned investments for the c 9 coming year, including projected actions for the proposed CDBG and ESG projects; and v a) 10 WHEREAS, Attachment I entitled "CDBG 2016-2017 Allocation Breakdown, N reiterates the monetary adjustments made to the FY 2016-2017 Action Plan by the Mayor and LO 11 Common Council at the May 2, 2016 the Mayor and Common Council meeting; and N 12 WHEREAS, these adjustments were included in the final version of the 2016-2017 13 Action Plan that was submitted to HUD by the May 15, 2016 deadline; and N 1' LL Q 14 WHEREAS, the Housing Division staff has evaluated the City's progress in meeting 15 the FY 2015-2019 Consolidated Plan goals and objectives and recommends adjustments be o made; and d 16 E WHEREAS, adjustments to the FY 2015-2019 Consolidated Plan goals and 17 objectives are listed in Attachment II entitled"Fiscal Year 2015-2019 Consolidated Plan- QE 18 Five-Year Strategic Plan Priority Needs;" and c 19 WHEREAS, these adjustment will amend the current FY 2015-2019 Consolidated y Plan goals and objectives so that they are consistent with what we can actually achieve with n 20 the financial resources we anticipate receiving from HUD; and 00 21 a' WHEREAS, the City of San Bernardino proposes to substantially amended its 2016- 22 2017 Action Plan to allocate $1,493,000 in uncommitted/unspent CDBG funds and direct N them to various "shovel ready" activities and $21,176 in uncommitted/unspent HESG funds 23 and direct them to an HESG Administration activity listed as Attachment III entitled 24 "Proposed CDBG Capital Expenditure and HESG Projects"; and E E c 25 WHEREAS, the substantially amendment to 2016-2017 Action Plan will allow the E City to use its CDBG funds in a timely manner and position the City to meet the HUD's 26 timeliness standard for the CDBG program; and N u 27 WHEREAS, proposed "shovel ready" projects are listed as Attachment III entitled E 28 "Proposed CDBG Capital Expenditure Project"; and 1 Packet Pg. 349 7.E.b WHEREAS, the City Council has considered the community needs, priorities and 1 strategies set forth in the FY 2015-2019 Consolidated Plan and concludes that the total a 2 allocation of approximately $1,493,000 in CDBG and $21,176 in HESG funds is consistent with the strategies established in the Consolidated Plan; and c°v, 3 0 4 WHEREAS, on September 15, 2016, a notice of a City Council public hearing was N published in the San Bernardino Sun announcing the availability of the Substantial U- 5 Amendment to the FY 2015-2019 Consolidated Plan and FY 2016—2017 Annual Action Plan r_ for public review and comment between September 15, 2016 and October 15, 2016 and the 6 October 17, 2016 public hearing; and a. Y 7 WHEREAS, the agenda item for this action for Mayor and Common Council 8 approval was tabled twice since October 17, 2016 and will be heard at the December 19, 2016 Z Mayor and Common Council meeting; and o 9 WHEREAS, the amendment to the FY 2015-2019 Consolidated Plan and FY 2016- c 10 2017 Action Plan are not subject to the provisions of the National Environmental Protection LO 11 Act(NEPA); and N L 12 WHEREAS, any and all new activities allocated federal funds through the approval of this substantial amendment are subject to the provisions of the National Environmental 13 Protection Act(NEPA) and shall comply. w U- 14 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 15 .� 16 SECTION 1. The City Council does hereby authorize the City Manager to be the E official representative of the City of San Bernardino to submit the substantial amendment to 17 the FY 2016-17 Action Plan to HUD. Q 18 c° SECTION 2. That the City Council does hereby authorize the City Manager, Finance 19 Director, or their designee, to amend the FY 2016-2017 budget to include the changes 20 pursuant to the revised FY 2016-2017 Action Plan" co co 21 SECTION 3. That the City Council does hereby authorize the City Manager, or his designee, to be the official representative of the City of San Bernardino to submit required 22 environmental documentation for the approved activities mentioned in the attached document v°, 23 entitled"Proposed CDBG Capital Expenditure Project" (Attachment III). d 24 SECTION 4. Proposed activities approved through the approval of this substantial E amendment shall undergo an environmental review prior to any release of funds consistent d 25 with the program regulations found in 24 CFR, Part 58.5. Any violation of its provisions may E a result in disapproval or modification of City funding. 26 Cn r 27 E 28 r a 2 Packet Pg. 350 7-E.b R RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF ' 1 SAN BERNARDINO APPROVING A SUBSTANTIAL AMENDMENT TO THE HUD a 2 FISCAL YEARS 2015-2019 CONSOLIDATED PLAN AND FISCAL YEAR 2016-2017 ANNUAL ACTION PLAN N 3 t° 0 N 4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor U- 5 and Common Council of the City of San Bernardino at a 6 meeting thereof, held on the 19th day of December, 2016,by the following vote, to wit: a. 7 8 Council Members: AYES NAYS ABSTAIN ABSENT -6 9 MARQUEZ v T 10 BARRIOS N r 11 VALDIVIA L 12 SHORETT 13 N 14 NICKEL d 15 RICHARD ° r c m 16 MULVIHILL E c 17 E a 18 Georgeann Hanna, CMC, City Clerk 19 N The foregoing Resolution is hereby approved this 19th day of December, 2016. 20 Go 21 22 R. Carey Davis, Mayor y City of San Bernardino 23 24 Approved as to form: E Gary D. 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