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CC 20161206 I FY 16-17 CDBG Project and BudgetRANCHO PALOS VERDES CITY COUNCIL AGENDA REPORT AGENDA DESCRIPTION: MEETING DATE: 12/06/2016 AGENDA HEADING: Consent Calendar Consideration and possible action to approve the proposed FY 17-18 Community Development Block Grant (CDBG) project and budget. RECOMMENDED COUNCIL ACTION: (1) Approve the proposed FY 17-18 Community Development Block Grant (CDBG) project and budget; and (2) Authorize the Director of Public Works to execute an agreement for the FY 17-18 CDBG project with the Community Development Commission of the County of Los Angeles (LACDC), subject to approval as to form by the City Attorney; and (3) Authorize the Director of Public Works to adjust the project budget, as necessary, to take into account the final CDBG allocations and any amounts unexpended at the close of FY 16-17. FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number: N/A ORIGINATED BY: Mike Gibson, Senior Administrative Analyst QJ -- REVIEWED BY: Michael Throne, PE, Director of Public Works w, APPROVED BY: Doug Willmore, City Manager), A -- ATTACHED SUPPORTING DOCUMENTS: A. Site Map/Concept Plan for Proposed FY 17-18 CDBG Project (page A-1) B. Public Meeting Notice (page B-1) C. Affidavit of Posting (page C-1) D. Eligible Activities (page D-1) E. Ineligible Activities (page E-1) BACKGROUND AND DISCUSSION: A public meeting is conducted each year by the City Council to approve CDBG-funded projects for the upcoming fiscal year. In order to continue its participation in the upcoming CDBG program year, from July 1, 2017, through June 30, 2018, the City must prepare 1 and submit a summary of its proposed CDBG project(s), including descriptions and budgets, to the Community Development Commission of the County of Los Angeles (LACDC) for review and approval by February 1, 2017. Staff has identified a viable ADA access project for FY 17-18 (described in more detail below and included as Attachment A) that would utilize the City's FY 17-18 allocation of CDBG funds while providing additional public access opportunities for elderly and disabled members of the community. The City of Rancho Palos Verdes has participated in the Los Angeles Urban County's Community Development Block Grant (CDBG) Program since 1986. The U.S. Department of Housing and Urban Development (HUD) established this program to fund local community development projects which principally benefit persons of low and moderate income levels and/or aid in the prevention or elimination of blighted conditions. The goal of these projects is to meet the HUD program objectives to provide housing, economic, and community development opportunities. The City's demographics and the relatively small allocation it receives from CDBG funds precludes the application of these funds towards larger scale community development projects or projects that eliminate blighted conditions. Therefore, the most prudent use of these funds by the City is for ADA access improvement projects. Description of Proposed CDBG Project For FY 17-18, it is recommended that the CDBG allocation fund the removal of 12 sidewalk curb barriers at 12 crosswalk locations throughout the City and replacement of them with Americans with Disabilities Act (ADA) accessible curb ramps. This project will remove architectural and material barriers that impede access for the mobility impaired. A site map/concept plan of the proposed locations is included as Attachment A. Proposed FY 17-18 CDBG Budget The LACDC recently informed the City of Rancho Palos Verdes that its preliminary FY 17-18 CDBG funding allocation is $139,247. Of this $139,247, $111,398 (or 80%) is available for direct project costs, and $27,849 (or 20%) is available for direct administrative costs. Upon approval of this CDBG project by the LACDC, the City's FY 17-18 CDBG allocation ($139,247) will be programmed into the City's FY 17-18 proposed budget. The $139,247 in revenue from CDBG funds will equal the amount of federal funds expended on this project (including administrative costs), with a $-0- net impact on the City's General Fund. It is recommended that the City Council approve the proposed project for the FY 17-18 program year. In the event that actual CDBG funding levels vary from the $139,247 total estimated amount, the proposed project and budget may be adjusted accordingly by the Director of Public Works. 2 *Not to exceed amount. In order to take advantage of federal CDBG funding, which is available to the City of Rancho Palos Verdes to address some of the City's elderly and disabled access deficiencies, it is recommended that the City Council approve the proposed CDBG project for the FY 17-18 program year and an accompanying budget of $139,247 in CDBG funds. Currently Funded (FY 16-17) CDBG Projects in the City (1) ADA Access Improvements at the Crenshaw Boulevard/Burma Road entrance to the Palos Verdes Nature Preserve at Del Cerro Park — The design of this project has been completed, with construction anticipated to be completed by the end of January 2017. (2) ADA Access Improvements at the Bus Stop Adjacent to City Hall (including construction of a bus stop shelter) — The design for this project will go out to bid in January 2017, with construction anticipated to be completed by September 2017. Public Noticing Pursuant to federal regulatory requirements, a notice of this public meeting was posted at City Hall/Civic Center, Hesse Park, and the Ladera Linda Community Center on November 21, 2016 (at least two [2] weeks prior to the December 6, 2016 public meeting). A copy of the public notice is attached to this staff report as Attachments B and C. Federal requirements also mandate that, as part of the public meeting, the City Council and the public be informed of the range of eligible and ineligible housing and community development activities that may be funded under the CDBG program. Lists of these eligible and ineligible activities are attached to this report as Attachments D and E, respectively. In addition, interested persons may review a copy of the federal eligibility guidelines, Monday through Thursday, from 7:30 AM to 5:30 PM, and Friday, from 7:30 AM to 4:30 PM, at the City of Rancho Palos Verdes' Public Works Department Office, at 30940 Hawthorne Boulevard, Rancho Palos Verdes, CA 90275. The City's grant allocation from Los Angeles County is determined by a HUD formula which takes into account the extent of poverty, population, housing overcrowding, age of housing stock, and population growth. Participating cities receive funding based upon the total number of cities participating in the Countywide program and a city's 9 DIRECT TOTAL PROJECT DIRECT ADMIN PROJECT PROJECT COSTS COSTS BUDGET ADA Access Improvements at 12 Crosswalk Locations throughout the City. $111,398 $27,849* $139,247 *Not to exceed amount. In order to take advantage of federal CDBG funding, which is available to the City of Rancho Palos Verdes to address some of the City's elderly and disabled access deficiencies, it is recommended that the City Council approve the proposed CDBG project for the FY 17-18 program year and an accompanying budget of $139,247 in CDBG funds. Currently Funded (FY 16-17) CDBG Projects in the City (1) ADA Access Improvements at the Crenshaw Boulevard/Burma Road entrance to the Palos Verdes Nature Preserve at Del Cerro Park — The design of this project has been completed, with construction anticipated to be completed by the end of January 2017. (2) ADA Access Improvements at the Bus Stop Adjacent to City Hall (including construction of a bus stop shelter) — The design for this project will go out to bid in January 2017, with construction anticipated to be completed by September 2017. Public Noticing Pursuant to federal regulatory requirements, a notice of this public meeting was posted at City Hall/Civic Center, Hesse Park, and the Ladera Linda Community Center on November 21, 2016 (at least two [2] weeks prior to the December 6, 2016 public meeting). A copy of the public notice is attached to this staff report as Attachments B and C. Federal requirements also mandate that, as part of the public meeting, the City Council and the public be informed of the range of eligible and ineligible housing and community development activities that may be funded under the CDBG program. Lists of these eligible and ineligible activities are attached to this report as Attachments D and E, respectively. In addition, interested persons may review a copy of the federal eligibility guidelines, Monday through Thursday, from 7:30 AM to 5:30 PM, and Friday, from 7:30 AM to 4:30 PM, at the City of Rancho Palos Verdes' Public Works Department Office, at 30940 Hawthorne Boulevard, Rancho Palos Verdes, CA 90275. The City's grant allocation from Los Angeles County is determined by a HUD formula which takes into account the extent of poverty, population, housing overcrowding, age of housing stock, and population growth. Participating cities receive funding based upon the total number of cities participating in the Countywide program and a city's 9 commitment to provide housing, economic, and community development opportunities, which principally benefit persons of low and moderate income levels and/or aid in the prevention or elimination of blighted conditions. The City's demographics and the relatively small allocation it receives from CDBG funds precludes the application of these funds towards larger scale community development projects or projects that eliminate blighted conditions. Therefore, the most prudent use of these funds by the City is for ADA access improvement projects. ALTERNATIVES: In addition to the Staff recommendations, the following alternative is available for the City Council's consideration: 1. Choose not to approve the recommended FY 17-18 CDBG project and budget. However, in so doing, it would forego the use of $139,247 in available federal funds for FY 17-18 for an ADA accessible project and would relinquish these funds for use by other cities throughout Los Angeles County. 11 M FY 2017 / 2018 CDBG ADA Improvement Project Concept Plan Project Goal: • To improve ADA access at intersections in area 1 of Rancho Palos Verdes. • This project will remove architectural and material barriers that impede access for the mobility impaired. Project Improvements: • Remove 11 sidewalk curb barriers at crosswalks and replace with ADA curb ramps. These locations are illustrated with red dots on the map to the left. • At Ironwood St. and Basswood Ave., relocate barriers to make an ADA compliant curb ramp. See below. A-1 CITY OF RANCHO PALOS VERDES PUBLIC NOTICE FOR A PUBLIC MEETING TO BE HELD ON DECEMBER 6, 2016 TO CONSIDER THE FY 2017-18 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECT NOTICE IS HEREBY GIVEN that the City Council of the City of Rancho Palos Verdes will conduct a public meeting to receive input from the public on a project to be submitted to the U.S. Department of Housing and Urban Development (HUD) for funding through the Community Development Block Grant (CDBG) Program. The project, which will be considered by the City Council at its December 6, 2016 meeting, has been determined to be eligible under the federal guidelines and, if approved by the City Council, will be considered by the Los Angeles County Community Development Commission (LACDC) for inclusion in the City's FY 2017-18 CDBG Program, as part of the LACDC's Annual Activity Planning process. All interested parties are encouraged to attend. Persons attending the meeting shall be furnished with the following information: (1) The amount of CDBG funds expected to be available to the City for the upcoming fiscal year; (2) The range of housing and community development activities that may be undertaken with CDBG funds; and (3) The specific activities that are currently funded under the CDBG Program. Said public meeting will be held on December 6, 2016 at 7:00 PM, in the John C. McTaggart Memorial Hall and City Council Chambers, at Hesse Park Community Center, 29301 Hawthorne Boulevard, Rancho Palos Verdes, California 90275. The public is invited to attend and provide testimony at the public meeting. CDBG Project Title: Americans with Disabilities Act (ADA) Access Improvements at 12 Crosswalk Locations Throughout the City. CDBG Project Description: The project will consist of the removal or relocation of 12 sidewalk curb barriers at 12 crosswalk locations throughout the City and replacement of them with ADA access curb ramps. CDBG funds will provide for the design, construction, construction management, and administrative costs associated with the removal of physical barriers for the elderly and persons with disabilities at these locations. CDBG Proiect Budget: $139,247 Interested parties wishing to comment on this project are invited to submit any written comments and/or questions by 4:30 PM, on Friday, December 2, 2016 to Mike Gibson, Senior Administrative Analyst, Public Works Department, City of Rancho Palos Verdes, 30940 Hawthorne Blvd., Rancho Palos Verdes, CA 90275, or at (310) 544-5247, or at mikeg@rpvca.gov, or interested parties may also visit the public counter in the Public Works Department, Monday through Thursday, 7:30 AM to 5:30 PM, and Fridays, 7:30 AM to 4:30 PM. Posted on November 21, 2016 CITY OF RANCHO PALOS VERDES) The undersigned, being first duly sworn, deposes, and says: That at all times herein mentioned, she was and now is the appointed Acting City Clerk of the City of Rancho Palos Verdes; That on November 21, 2016 she caused to be posted the following document entitled: City of Rancho Palos Verdes, Public Notice, for Public Meeting to be Held on December 6, 2016 Regarding the FY 2017-18 Community Development Block Grant (CDBG) Project, a copy of which is attached hereto, at the following locations: City of Rancho Palos Verdes City Hall/Civic Center 30940 Hawthorne Blvd. Rancho Palos Verdes, CA 90275 Hesse Park Community Center 29301 Hawthorne Blvd. Rancho Palos Verdes, CA 90275 Ladera Linda Community Center 32201 Forrestal Drive Rancho Palos Verdes, CA 90275 I certify under penalty of perjury that the foregoing is a true and correct affidavit of posting. G_.,ding City Clerk C-1 ELIGIBLE ACTIVITIES Community Development Block Grant (CDBG) funds may only be used for projects and activities that meet one of the following national objectives of the program: • Benefiting low and moderate income persons; or • Preventing or eliminating slums or blights; or • Meeting a particularly urgent community development need. IF ANY OF THE ABOVE CONDITIONS ARE MET, under current guidelines, the City of Rancho Palos Verdes may use CDBG funds for a variety of activities including: 1. Acquisition of Real Property Example: Acquisition of land, air rights, easements, water rights, rights -of -ways, building and other real property improvements. 2. Disposition of Real Property Example: Disposition of real property acquired with CDBG funds through sale, lease or donation including fees and costs associated with the transfer of ownership of real property. 3. Public Facilities and Improvements Example: Parking, streets, curbs, gutters and sidewalks, parks and playgrounds, shelters for the homeless, water and sewer facilities, flood and drainage improvements, community, senior and health centers. 4. Acquisition, Reconstruction, Rehabilitation or Installation of Privately -Owned Utilities Example: Pay the costs of placing underground new or existing power lines owned by private utilities. 5. Clearance, Demolition, Removal or Building and Improvements, or Movement of Structure to Other Sites Example: Demolition of vacant structure and removal of the debris to make a neighborhood park and playground available to residents in a low/moderate income neighborhood. 6. Public Services Example: Child care, health care, job training, recreation programs, education programs, public safety services, fair housing activities, services for senior citizens, services for homeless persons, drug abuse counseling and treatment, and energy conservation counseling and testing. 7. Interim Assistance Example: Improvements to a deteriorating area as a prelude to permanent improvements or alleviation of harmful conditions where immediate public action is necessary. 8. Relocation Payments and Assistance Example: Relocation and payments to displaced individuals, families, businesses, or nonprofit organizations that result from the acquisition of property for CDBG-assisted purposes. 9. Loss of Rental Income Example: Loss of rental income incurred in holding housing units used for the relocation of individuals and families displaced by CDBG-assisted activities. D-1 10. Removal of Architectural Barriers Example: Installation of ramps, curb cuts, wider doors, elevators, and physical modification to buildings, facilities and improvements to make them accessible. 11. Housing Rehabilitation Example: Financial assistance such as grants and deferred loans for the rehabilitation of any publicly or privately -owned residential property. 12. New Housing Construction Example: Funding for housing construction project that has received funding through a Housing Development Grant (HODAG), or housing to be constructed by a local development corporation, small business investment company, or neighborhood -based nonprofit organization. 13. Code Enforcement Example: Inspections in a low/moderate income neighborhood targeted for rehabilitation assistance, a neighborhood facility and street reconstruction. 14. Historic Preservation Example: Rehabilitation, preservation and restoration of historic properties. 15. Commercial or Industrial Rehabilitation Example: Improvements to the exterior of the building and the correction of code violations. 16. Special Economic Development Example: Loans to pay for the expansion of a commercial business which will create jobs for low/moderate income persons, or technical assistance to a business facing bankruptcy. 17. Special Activities by Neighborhood -Based Nonprofit Organizations, Small Business Investment Companies, or Local Development Corporations Example: Provide grants or loans to carry out a neighborhood revitalization, community economic development or energy conservation program. 18. Planning and Capacity Building Example: Comprehensive plans, individual project plans, community development plans, studies, analysis and data gathering. 19. Program Administration Costs Example: Payment of costs for overall program management. D-2 INELIGIBLE ACTIVITIES Activities and projects that are ineligible for CDBG funding include: Buildings or portions thereof, used for the general conduct of government. 2. General government expenses. 3. Political activities. 4. Purchase of equipment, unless otherwise required for program. 5. Operating and maintenance expenses. 6. New housing construction, except housing of last resort for persons displaced due to a CDBG project, housing to be funded through a Housing Development Grant (HODAG), or housing to be constructed by a local development corporation, small business investment company, or neighborhood -based nonprofit organization. 7. Income payments to an individual or family for items such as food, clothing, housing or utilities. E-1