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HomeMy WebLinkAbout19 - CDBG Public Service ApplicationsCITY OF NEWPORT BEACH SUPPLEMENTAL CITY COUNCIL STAFF REPORT Agenda Item No. 19 March 14, 2006 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community & Economic Development, Planning Department Daniel R. Trimble, Program Manager 949/644 -3230. Email: dtrimbleD city. newport- beach. ca. us SUBJECT: FY 2006 -2007 Community Development Block Grant (CDBG) Public Service Applications. (Supplemental) ISSUE: The amount of CDBG grant funding has been reduced by 28% since FY2001-2002. Additionally, another 20% reduction has been projected for FY2007 -2008. These reductions create challenges for the City's funding of Public Service Agencies. DISCUSSION: The amount of the CDBG grant awarded to the City of Newport Beach has steadily declined over the past few years from $518,000 in FY2001 -2002 to $373,292 for FY2006 -2007. As a result the 15% portion allocated to Public Service Agencies has also declined, going from $77,700 in FY2001 -2002 to $55,994 for FY2006 -2007. At the same time that our funding has been reduced the amount of funds requested and the number of agencies seeking funding has grown. In FY2001 -2002 five Public Service Agencies submitted applications for CDBG grants, requesting a total of $115,000. This year nine Agencies have requested $98,000 for a considerably smaller pool. The increasing demand for smaller allocations requires more critical decisions and staff wants to make the City Council aware of this issue before the decisions need to be made in April. Proportionally reducing grants to all of the agencies is one possible direction. However, some of the agencies are already receiving relatively small grants, and the amount of administration for the Agency and the City will remain the same. This could reduce the effectiveness of the individual grants, and even the City's overall public service program. Another option is to selectively reduce grants to some Agencies. Staff has employed this option with past reductions. The Agencies that received small grants were basically kept at the same level, while the larger grantees absorbed most of the funding CDBG Public Services Applications March 14, 2006 Page 2 reductions. However, with a large reduction this year and possibly next year, the cuts will be more significant. Reducing the number of funded Agencies is also an option. While fewer Agencies would get funded, it would mean smaller funding cuts for those Agencies that are funded. It also should reduce some of the administration required for monitoring, quarterly reporting, and other Agency related requirements. Submitted by: SHARON WOOD Assistant City Manager Prepared by: DANIEL TRIMBLE C & ED Program Manager CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 19 March 14, 2006 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community & Economic Development, Planning Department Daniel R. Trimble, Program Manager 9491644 -3230. Email: dtrimble (cDcitv.newi)ort- beach.ca.us SUBJECT: FY 2006 -2007 Community Development Block Grant (CDBG) Public Service Applications. ISSUE: Each year, the City of Newport Beach receives Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). The grant allows for up to 15% of the funds to be used for public services. To ensure that these funds are used to meet the greatest existing need within the community, the City undertakes an annual application process for all public service agencies. The applications that are received are submitted to the City Council for their review and consideration for funding during the annual One -Year Action Plan process. This report provides a summary of each of the applications received for funding consideration during Fiscal Year 2006 -2007 (FY 2006), which starts July 1, 2006 and ends June 30, 2007. In addition, the report provides a summary of prior year and current year accomplishment for each public service agency receiving funds during the 2004 -2005 and 2005 -2006 Program Years. RECOMMENDATION: Receive and file: DISCUSSION: During the 2005 -2006 One -Year Action Plan public hearing process, the City Council requested that a review committee, including two Council members, be established to review all future public service CDBG applications and to provide Council with funding recommendations for the use of CDBG funds. At the October 25, 2005 City Council meeting, Council elected not to establish the review committee and instead instructed staff to provide Council with a summary of the applications submitted prior to the public hearing on the recommended grant allocations. This report is being submitted in accordance with these instructions. The amount of funds that are available for public service agencies for the 2006 -2007 program year is less than in prior years. This is due to the reduction in the amount of CDBG funds that the City will receive this year. In prior years, the City of Newport Beach has received slightly more than $400,000 in Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). For the 2006 -2007 Program Year, HUD has informed the City that it will receive $373,292 in CDBG funds. This represents a decrease of slightly less than 9.5 %. The total amount available for public service agencies in the 2006 -2007 program year is $55,994. As required under the Public Participation Plan adopted by the City Council as part of the Consolidated Plan, a Notice of Funding Availability (NOFA) was published on December 16, 2005, in the Daily Pilot (Attachment "A) informing interested residents and public service agencies that the City of Newport Beach was accepting applications for eligible public service programs for the 2006 -2007 CDBG Program Year. The NOFA requested that all applications be submitted by no later than January 26, 2006. Staff received a total of 11 requests for an application. The application was also available on the City's web page. A total of 9 public service applications were received by the deadline date. Attachment "B" provides a list of the 9 applications received along with a summary of the proposed program, the funding amount the agency received from the City in program year 2005 -2006, and the funding amount requested in their application for program year 2006 -2007. In addition, we are providing a performance summary report (Attachment "C) listing the public service agencies that were funded during program year 2004 -2005 and the current program year 2005 -2006. The report provides a measurement of how well the agencies performed as it relates to the timeliness and accuracy of the quarterly reports, their performance for established goals, their expenditure rate, and any comments regarding the agency. Submitted by: SHARON WOOD Assistant City Manager Prepared by: DANIEL TRIMBLE C & ED Program Manager Attachments: A — Notice of Funding Availability (NOFA) B — Public Service Application Summary Table C — Public Service Agency Performance Summary March 14, 2006 Page 2 Attachment "A" City of Newport Beach Notice of Funding Availability (NOFA) Inviting Applications for the Community Development Block Grant (CDBG) Program for Fiscal Year 2006/07 APPLICATIONS WILL BE AVAILABLE DECEMBER 16T ", 2005 THROUGH JANUARY 26T ", 2006 The Federal Housing and Community Development Act of 1974, as amended, provides Federal Community Development Block Grant (CDBG) funds to the City of Newport Beach for projects that promote the development of viable urban communities by providing decent housing, suitable living environments, and expanded economic opportunities, particularly for low- and moderate - income persons. The City of Newport Beach anticipates receiving $412,000 in CDBG funds for fiscal year 2006 -2007. NOTICE IS HEREBY GIVEN that the City of Newport Beach is currently accepting applications for eligible public services. The application may be used by non - profit organizations to request funding or by Newport Beach residents to suggest that the City or other organization undertake a new program. A general description of eligible public services is summarized below. ELIGIBLE PUBLIC SERVICES: Above all, applications must demonstrate that the service will principally benefit persons of low- and moderate - income (households earning less than 80% of Orange County's median income). Types of eligible services include but are not limited to homeless assistance, employment services, substance abuse recovery, senior services, at -risk youth programs, crime prevention, legal services, and services for the disabled. DEADLINE: All interested service providers must complete an application package, available at the City of Newport Beach, Economic Development Division, 3300 Newport Blvd., Newport Beach. Completed applications will be accepted until 12:00 p.m. on Thursday, January 26, 2006 at the City of Newport Beach, Economic Development Division. Questions regarding this NOFA should be directed to Dan Trimble with the City of Newport Beach at (949) 644 -3230. March 14, 2006 Page 3 'J C d s v r+ Q J Q N 0 a N0 N a CD m 0 v Q W 69 69 69 69 69 O O O O o O O O O O in N 69 Ntf) 69 Cn G�9 69 69 609 O O M O Ch � M 69 69 69 2'O c 0 ac) N 5-0 OE y y° a) n L. y C N N Ow ° ... c a E f L O a L O E d N ° y N O Y O N U 3 L U E O a L C N= L n 0 N U ° o r a"i 0 c 3 o o a t c c c U O O OM a) O n N a) N_ y L a) —_ O a) n a) E y y y U c C O's N N j a a nin - E a) a) L L a) p O a) N Ln O_ p C U O 3 __ O y N N O a) U ME c E a) L O O n Vi U O CA 0= a) N m N L .L... 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