CC SR 20221220 K - CDBG-CV Program ModificationCITY COUNCIL MEETING DATE: 12/20/2022
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consideration and possible action to modify the City’s Coronavirus Community
Development Block Grant (CDBG-CV) program.
RECOMMENDED COUNCIL ACTION:
(1)Close the Agreement with the Los Angeles County Development Authority
(LACDA) for the Senior Activities CDBG-CV project, reducing its budget to $0 and
closing the project;
(2)Authorize the City Manager or his designee to execute a new Agreement with
LACDA to fund the installation of an Americans with Disabilities Act (ADA)-
compliant wheelchair lift to the City shuttle bus for the REACH Program and
associated REACH administrative costs as a new CDBG-CV project, in an amount
not to exceed $86,499, subject to a form deemed acceptable to the City Attorney;
and
(3)Reallocate $86,499 of available CDBG-CV funds from the Senior Activities project
to a new REACH program project.
FISCAL IMPACT: Funding for CDBG-CV project was not included in the Fiscal Year
(FY)2022-23 adopted budget. However, CDBG-CV funding will
reimburse the City for 100% of these grant-related project
administration and reporting costs. The fiscal impact of the new
proposed CDBG-CV REACH program project will be covered by
grant funds in Fund 3110 (CDBG-CV). Administration costs
associated with the Senior Activities project incurred to date will be
funded by identified savings in the General Fund.
Amount Budgeted: $100,000
Additional Appropriation: $86,499 (CDBG-CV – disability services)
Account Number(s): 101-400-2999-5101 ($100,000)
(General Fund – Non-department/Professional Services)
310-400-3110-5101 ($86,499)
(CDBG Fund – Professional Services)
ORIGINATED BY: McKenzie Bright, Administrative Analyst
REVIEWED BY: Karina Bañales, Deputy City Manager
APPROVED BY: Ara Mihranian, AICP, City Manager
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ATTACHMENTS:
A. January 19, 2021, staff report
B. October 6, 2020, staff report
C. Public Meeting Notice and Affidavit of Posting (page C-1)
BACKGROUND AND DISCUSSION:
After the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into
law, the City was notified by the LACDA on April 7, 2020, of its allocation of $86,499 in
CDBG-CV funds. These funds must be used to cover or reimburse costs to prevent,
prepare for, and respond to COVID-19, for the benefit of seniors (55 or older), persons
with disabilities, and income-eligible individuals. These funds must be substantially
committed and expended by June 30, 2023, at which point the City will be requested to
return unspent funds.
On January 19, 2021, after conducting a public hearing, the City Council directed Staff to
utilize the funds to provide reimbursements to Peninsula Seniors to partially offset
administration and programming costs and to provide Meals on Wheels services free of
charge to eligible residents, referred to collectively as the Senior Activities CDBG-CV
project (see Attachment A). The City subsequently entered into an agreement with
LACDA for the project.
After the program was adopted, Peninsula Seniors declined to participate in the program
due to the large amount of internal administration needed to comply with the requirements
of the grant.
Staff reached out to several local Meals on Wheels organizations to gauge their interest
in 2021 and a request for proposals (RFP) was issued in June 2022, which received no
bids. Following the RFP, a local Meals on Wheels provider reached out to Staff to express
that it did not submit a bid because the group was operating beyond its current capacity
and could not take on the substantial number of new clients anticipated through the grant
program. Additionally, the organization was experiencing financial difficulty as other cities’
CDBG-CV-funded programs expired but clients remained on its roster.
On October 6, 2020, the City Council expanded its CDBG-administration contract with
Michael Baker International (Michael Baker) to include administration of CDBG-CV grant
funds (see Attachment B). The only costs to date out of the CDBG-CV program have
been in payments to Michael Baker. Despite not incurring any programmatic costs over
this period, Michael Baker prepared the City’s grant application, ensured compliance with
all grant-related federal guidelines, including reporting, and assisted Staff in developing
potential alternative uses for the funds. The table on the following page illustrates the
City’s expenditures to date.
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Table 1: CDBG-CV Expenditures 1/19/21-12/10/22
FY20-21 FY21-22 FY22-23 FY22-23
Est. Total
Michael Baker International $3,007.50 $2,875.00 $1,000.00 $1,117.50 $8,000.00
Due to the lack of interest from Meals on Wheels providers and Peninsula Seniors
declining to participate in the program, Staff recommends the City Council close the
Senior Activities CDBG-CV project thereby reducing the project budget from $86,499 to
$0. Costs to date incurred in the administration of the project must be absorbed within the
General Fund because administration costs without programmatic action are ineligible for
reimbursement.
Reducing the Senior Activities CDBG-CV project budget to $0 and canceling the program
makes the City’s CDBG-CV allocation available for another project, described in more
detail in the next section. However, closing the project with LACDA to consider a a new
Agreement for a different project disqualifies administration costs to date, necessitating
they be covered by the General Fund. If the City Council declines to consider a new
project, the City would still be responsible for the administration costs of the Senior
Activities project, as administration costs without demonstrable programmatic results are
not eligible for reimbursement.
Alternative CDBG-CV Project
In order not to lose any of the City-allocated CDBG-CV funds, Staff has evaluated
alternative projects that may qualify for CDBG-CV funding.
Staff has assessed a need to install an ADA accessible wheelchair lift in the City shuttle
bus for use by REACH participants and believes this is an eligible CDBG-CV funded
project, as confirmed by the Michael Baker’s preliminary consultation with LACDA . This
is because REACH programs are designed to service the social and recreational needs
of youth and young adults with developmental disabilities. During the height of the
COVID-19 pandemic, REACH transitioned to a fully virtual capacity. In-person activities,
however, are a key component of social and recreational needs, which could not be safely
provided during the pandemic. As a result, there is a more urgent need to install a
wheelchair lift to provide access to new and ongoing programs for all REACH participants,
inclusive of physical ability, now that in-person programming has returned. It is estimated
that the wheelchair lift will cost between $20,000 and $25,000.
Further, the acquisition and installation of a wheelchair lift is not included as part of the
Fiscal Year 2022-23 budget but is a critical component for ensuring REACH programming
that includes City-provided transportation is accessible.
Funds would additionally be used to cover associated REACH programmatic and grant
administration costs. Administration costs include fees for Michael Baker services to
prepare the new agreement with LACDA, complete reports, and ensure compliance with
all federal guidelines which typically ranges between $250 and $1,000 per month. Aside
from the wheelchair lift and administration costs, approximately $40,000 would remain in
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the grant allocation, which could be used to cover related installation and/or program fees
associated with this program within the June 30, 2023 deadline.
After June 30, 2023, it is likely the City will be requested to return unspent grant funds.
Staff does not anticipate expending the full grant amount by the deadline, resulting in a
portion of the grant likely being returned at the end of the period in the amount of
approximately $40,000. Due to unknown specific costs of installing a wheelchair lift and
associated REACH and grant administration costs as of the writing of this report, the City
Council is being asked to approve the allocation of the entirety of the City’s CDBG -CV
award for the purposes of the City’s contract with LACDA so that all funds may be utilized,
if required. Expenditures will not exceed the grant amount of $86,499, but Staff
recommends authorizing the program budget for the CDBG-CV REACH project to be the
full allocation of $86,499, rather than attempting to return part of the grant at this time.
Due to the one-time nature of the CDBG-CV funds, failing to spend the City’s allocation
will not impact future grant/allocation opportunities.
Staff anticipates having complete cost estimates and an installation timeline by mid -
January. If Staff determines the wheelchair lift cannot be installed by June 30, 2023, Staff
will return with a recommended action to cancel the CDBG-CV REACH program and
return the entirety of the grant funds. To reiterate, grant administration costs incurred are
ineligible for reimbursement without programmatic advancement. If the City Council
adopts Staff’s recommended action tonight, it will ensure administration costs and
ongoing costs associated with implementing and administering the CDBG -CV REACH
program for the period between December 2022 and January 2023 are eligible for
reimbursement under the CDBG-CV program.
ADDITIONAL INFORMATION:
Public Noticing
Pursuant to federal regulatory requirements, a notice of this public meeting (Attachment
C) was posted at City Hall/Ken Dyda Civic Center on December 13, 2022 (at least five
days prior to the December 20, 2022, public meeting).
CONCLUSION:
Staff recommends the City Council cancel the Senior Activities Agreement with LACDA
and authorize the City Manager to execute a new Agreement with LACDA for the REACH
project thereby reallocating the $86,499 CDBG-CV funds as described in this report. The
administration costs of the CDBG-CV program to date in the amount of $8,000 will be
funded from identified savings in the General Fund.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative actions are available for
the City Council’s consideration:
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1. Direct Staff to cancel Senior Activities project, not to pursue another project, and
return the CDBG-CV grant funds.
2. Take other action, as deemed appropriate.
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