Loading...
HomeMy WebLinkAbout09 - Substantial Amendment to CDBG Action Plans_PA2010-071CITY OF NEWPORT BEACH City Council Staff Report Agenda Item No. 9 May 8, 2012 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community Development Department Kimberly Brandt, AICP, Director 949 - 644 -3226, kbrandt @newportbeachca.gov PREPARED BY: James Campbell, Principal Planner APPROVED: TITLE: Substantial Amendment to Community Development Block Grant Action Plans for Fiscal Years 2010 -2011 and 2011 -2012 ABSTRACT: The U.S. Department of Housing and Urban Development (HUD) requires the City of Newport Beach to provide a 30 -day public review and comment period prior to making substantial changes to its Community Development Block Grant (CDBG) Action Plan(s). To facilitate the efficient use of CDBG funds to benefit Newport Beach residents, the Community Development Department has prepared a Substantial Amendment to the 2010 -2011 and 2011 -2012 Action Plans previously submitted to HUD. The Substantial Amendment is necessary in order to cancel two (2) prior -year activities and to reprogram unspent CDBG funds into a new 2012 -2013 activity. RECOMMENDATION: 1. Hold a public hearing to receive comments on the proposed Substantial Amendment to the 2010 -2011 and 2011 -2012 CDBG Action Plans; and 2. Adopt Resolution No. 2012- 30 to approve the Substantial Amendment that: a. Cancels the 2010 -2011 Utility Assessment District Grant Program and the 2011 -2012 Sidewalk, Curb and Gutter Improvements activity; and b. Authorizes the City Manager to submit the Substantial Amendment to HUD. 1 2 Substantial Amendment to Community Development Block Grant Action Plans for Fiscal Years 2010 -2011 and 2011 -2012 May 08, 2012 Page 2 FUNDING REQUIREMENTS: There is no fiscal impact to the General Fund related to this item. This item allows the City to reallocate unspent prior year CDBG funds to a new activity as part of the 2012- 2013 Action Plan. DISCUSSION: According to HUD regulations, the City must provide the public with notice of a 30 -day public review and comment period prior to making substantial changes to its Community Development Block Grant (CDBG) Action Plan(s). A substantial change is defined in the City's Citizen Participation Plan for the CDBG program as carrying out an activity not previously described in the Action Plan, canceling an activity previously described in the Action Plan, increasing or decreasing the amount to be expended on a particular activity from the amount stated in the Action Plan by more than 20 percent, or substantially changing the purpose, scope, location or beneficiaries of an activity. The City proposes to cancel the 2010 -2011 Utility Assessment District Grant Program, which received $65,922 to assist low- income homeowners with maximum $5,000 grants to defray the costs associated with private connection to newly undergrounded utilities. From July 1, 2010 to present, no grants have been made and the entire $65,922 allocation remains unspent. The cancellation of this activity will allow these funds to be reprogrammed as part of the 2012 -2013 Action Plan for a new CDBG activity. Further, the City proposes to cancel the 2011 -2012 Sidewalk, Curb and Gutter Improvements activity, which received $8,802. The funding level for this activity was not sufficient to implement the activity. The cancellation of this activity will allow these funds to be reprogrammed as part of the 2012 -2013 Action Plan for a new CDBG activity. The Draft 2012 -2013 Action Plan that will be submitted to the City Council for approval subsequent to consideration of this item proposes to combine the $74,724 from these cancelled activities with $25,450 of new CDBG funds to implement the 2012 -2013 Sidewalk, Curb and Gutter Improvements activity that will provide improvements to repair concrete ADA access pathways and other ADA improvements throughout the city. On March 29, 2012, staff published a notice in the Daily Pilot informing the general public that the City of Newport Beach had prepared the Substantial Amendment to the 2010 -2011 and 2011 -2012 Action Plans and that such would be available for review and comment until May 8, 2012. The public was provided an opportunity to provide oral and /or written comments on the Action Plan and the proposed activities. To date, no 3 Substantial Amendment to Community Development Block Grant Action Plans for Fiscal Years 2010 -2011 and 2011 -2012 May 08, 2012 Page 3 public comments have been received. Additionally, the Citizen Participation Plan requires that a public hearing be held to receive testimony from interested residents or parties regarding the Substantial Amendment. Tonight's public hearing fulfills the requirements for the public hearing. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ( "CEQX) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: In accordance with HUD requirements for a 30 -day public review and comment period, notice of the public hearing was published in the Daily Pilot on March 29, 2012. Further, the agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). Submitted by: Kimberly Brandt, A CF, Directo Attachment: Draft Resolution RESOLUTION NO. 2012- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH APPROVING A SUBSTANTIAL AMENDMENT OF THE COMMUNITY DEVELOPMENT BLOCK GRANT 2010 -2011 AND 2011- 2012 ANNUAL ACTION PLANS WHEREAS, the City of Newport Beach participates in the Department of Housing and Urban Development's Community Development Block Grant (CDBG); and WHEREAS, on August 26, 2009, the City of Newport Beach conducted a Community Meeting with Newport Beach residents and community based organizations to evaluate the current level of services offered and to identify any new community needs; and WHEREAS, the Department of Housing and Urban Development (HUD) requires the City to prepare a 5 -year "Consolidated Plan" document for the CDBG program and the 2010 -2014 Consolidated Plan was adopted by the City Council on April 27, 2010; and WHEREAS, On April 27, 2010, the City Council approved the 2010 -2011 Annual Action Plan that included a grant program to assist low- income homeowners to defray the costs associated with private connection to newly undergrounded utilities. To date, no one has participated and the funding for this activity ($65,922) has remained unspent; and WHEREAS, On April 26, 2011, the City Council approved the 2011 -2012 Annual Action Plan that included funding for disability related improvements to curbs, gutters and sidewalks. The funding level for this activity ($8,802) was not sufficient to implement the activity; and WHEREAS, on March 29, 2012, the City published a public notice in the Daily Pilot newspaper indicating that the Substantial Amendment of the 2010 -2011 and 2011- 2012 Annual Action Plans would be available to the public for review and comment from March 29, 2012 to May 8, 2012; and WHEREAS, the City Council has considered the community needs, priorities, and strategies set forth in the Consolidated Plan and the Housing Element of the General Plan and concludes the cancellation of the 2010 -2011 Utility Assessment District Grant Program and the 2011 -2012 Sidewalk, Curb and Gutter Improvements is warranted and will allow reallocation of the funds to other eligible activities within the 2012 -2013 Annual Action Plan consistent with the Consolidated Plan and Housing Element; and WHEREAS, the City Council finds this action is not subject to the California Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will 1 0 not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOW, THEREFORE, the City Council of the City of Newport Beach DOES HEREBY RESOLVE as follows: SECTION 1. The 2010 -11 Annual Action Plan is amended by canceling the 2010 -2011 Utility Assessment District Grant program. Funds allocated to this activity shall be reallocated consistent with the City's housing and community development needs, priorities and strategies identified in the Consolidated Plan by the 2012 -2013 Annual Action Plan. SECTION 2. The 2011 -12 Annual Action Plan is amended by canceling the 2011 -2012 Sidewalk, Curb and Gutter Improvement program. Funds allocated to this activity shall be reallocated consistent with the City's housing and community development needs, priorities and strategies identified in the Consolidated Plan by the 2012 -2013 Annual Action Plan. SECTION 3. That the City Council authorizes the City Manager, or his /her designee, to submit the Substantial Amendment, attached as Exhibit "A" hereto, to the Department of Housing and Urban Development and to take any necessary steps to implement the Substantial Amendment. PASSED AND ADOPTED by the City Council of the City of Newport Beach at a regular meeting held on the 8th day of May 2012. attest: Leilani Brown, City Clerk Nancy Gardner, Mayor 2 0 Exhibit A Community Development Block Grant Program Substantial Amendment 2010 -2011 Action Plan 2011 -2012 Action Plan Substantial Amendment to the 2010 -2011 and 2011 -2012 Action Plans What is an Action Plan? The U.S. Department of Housing and Urban Development (HUD) requires the City of Newport Beach to complete an Action Plan document each year in order to receive Community Development Block Grant (CDBG) funds. An Action Plan is a component of the City's Five -Year Consolidated Plan. The current Consolidated Plan was adopted on April 27, 2010 and covers 2010 -2014. Each fiscal year's Action Plan document is: • The City's annual application for CDBG funds. • A budget document that provides for the allocation of CDBG funds to individual activities. • A technical document that describes each activity's eligibility and National Objective under the regulations as well as the number of people, households, housing units or public facilities that will be served. • A planning document that describes how each activity relates to the Strategic Plan objectives and performance goals contained within the Five -Year Consolidated Plan. What is a Substantial Amendment? As a condition of the grant, HUD requires the City to provide for Citizen Participation in the planning process. The City established its CDBG Citizen Participation Plan on April 27, 2010. The plan requires citizen participation when certain changes are proposed with respect to activities contained within an Action Plan that has been adopted and submitted to HUD. The changes requiring a "Substantial Amendment" include: • Carrying out an activity not previously described in the Action Plan; • Canceling an activity previously described in the Action Plan; • Increasing or decreasing the amount to be expended on a particular activity from the amount stated in the Action Plan by more than 20 percent; or • Substantially changing the purpose, scope, location or beneficiaries of an activity. How can residents participate? The published public notice specifies how residents can obtain a copy of the Substantial Amendment document. It provides details on the duration of the public review period and to whom comments may be submitted in writing. Substantial Amendments also require a public hearing before the City Council at which time members of the public may express their views on the proposed Substantial Amendment. The process is designed to ensure that residents have an opportunity to provide input into the planning process prior to the City Council's decision on the matter. Page 1 M Substantial Amendment to the 2010 -2011 and 2011 -2012 Action Plans Substantial Amendment to the 2010 -2011 Action Plan The City proposes to cancel the following activity: Title: Utility Assessment District Grant Program Budget: $65,922 Description: This activity will provide maximum $5,000 one -time grants to assist low- income owner - occupied households within the City's utility undergrounding assessment districts. Grants may be used for the actual costs associated with utility hook -ups, up to the program maximum of $5,000. The City expected to serve 7 households in the first year of the program. Reason for Cancellation: Eight (8) applications were received in FY 2010 -2011. The status and disposition of those applicants includes: • Four (4) were determined eligible and provided with information on how to solicit bids and to contract for the work in conformance with the Program Guidelines. None of those four (4) applicants provided the documentation necessary to actually provide grant assistance. • Two (2) were determined ineligible based on household income exceeding the 50% of AMI threshold. • Two applications were determined to be incomplete. Neither applicant provided the necessary documentation to complete their application. Future use of Funds: Subsequent to cancellation, the entire $65,922 budget is to be allocated to the new 2012 -2013 Sidewalk, Curb and Gutter Improvements activity. Substantial Amendment to the 2011 -2012 Action Plan The City proposes to cancel the following activity: Title: Sidewalk, Curb and Gutter Improvements Budget: $8,802 Description: This activity will repair concrete ADA access pathways and other ADA improvements throughout the city. Reason for Cancellation: The activity was not implemented during 2011 -2012 due to insufficient CDBG funds. Future use of Funds: Subsequent to cancellation, the entire $8,802 budget is to be allocated to the new 2012 -2013 Sidewalk, Curb and Gutter Improvements activity as part of the 2012 -2013 Action Plan. Page 2 0