City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council approve the allocation of the Community
Development Block Grant Recovery (CDBG-R) funds for fiscal year (”FY”) 2008-09
and adopt the resolution authorizing the filing of the 2008-09 application for funding
from the CDBG-R program.
BACKGROUND:
On February 17, 2009, President Barack Obama signed into law the American
Recovery and Reinvestment Act (ARRA or “the Recovery Act”). This $787 billion
economic stimulus package includes $355 billion in funding for transportation,
infrastructure, construction, healthcare programs, education, housing assistance, and
energy efficiency projects, $144 billion in State and Local Fiscal Relief and $288
billion in tax credits. ARRA funds will be issued through grants and loans for specific
funding categories administered by existing granting agencies.
Additional CDBG Funds Made Available through ARRA
The Los Angeles Urban County will receive $7.9 million in Community Development
Block Grant-Recovery (CDBG-R) funding from the United States Department of
Housing and Urban Development (HUD) through the ARRA. These funds will be
allocated to participating cities and Supervisorial Districts (for activities in their
unincorporated areas of the County). As a participating city, the City of Culver City is
eligible to receive $92,016.
Meeting Date: 05/26/09 Item Number: C-7
AGENDA ITEM: Allocation of 2008-09 Community Development Block Grant
Recovery (CDBG-R) Funds and Adoption of a Resolution authorizing the Filing of
the 2008-09 Application for Funding from the CDBG-R Program.
Contact Person/Dept.: Kriss Casanova /
CDBG Administrator - CDD
Phone Number: (310) 253-5769
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: [X]
Public Notification: Master Notification List and CDBG Advisory Committee Members
and Alternates on 5/20/08. Legal Notice was published in the Culver City News on
05/14/09 and 05/21/09 and posted at various City locations.
Department Approval:
Sol Blumenfeld (05/19/09)
City Attorney Approval:
Carol Schwab (by H. Baker) (05/19/09)
Chief Financial Officer Approval:
Jeff Muir (M. Noller) (05/20/09)
City Manager Approval:
Jerry B. Fulwood (05/20/09) City of Culver City, California
City Council Agenda Item Report
The CDBG program enables local governments to undertake a wide range of
activities intended to create suitable living environments, provide decent affordable
housing and create economic opportunities, primarily for persons of low and
moderate income. Culver City received $303,516 in CDBG funds for fiscal year 2009
(July 1, 2008 – June 30, 2009) and will receive $301,933 for fiscal year 2010. The
newly available CDBG-R funding is separate from the regular, annual CDBG funds
that Culver City receives every year.
The full range of CDBG-eligible activities and projects may be considered for CDBG-
R funds. However ARRA provides priority to projects that can award contracts based
on bids within 120 days from the date the funds are made available and be focused
on activities that create/retain jobs and promote economic recovery. CDBG-R is a
one-time funding source that must be expended by September 30, 2012.
Short Application Period
As with a number of ARRA sourced funds (to provide for a quick infusion of ARRA
funds into the economy), CDBG-R funds are available under a significantly shortened
time schedule. Because of this, HUD was unable to provide grantees, such as
LACDC, with adequate time to produce and submit the standard, detailed amended
action plan. HUD released information about CDBG-R on the evening of May 5,
2009. The due date for submission to HUD by LACDC is June 5, 2009. In order to
meet HUD’s deadline, LACDC will submit an amended 2008-2009 Action Plan that is
very generic in nature and identifies projects at a very basic level for the total Urban
County. LACDC will seek approval of this amended Action Plan from the Board of
Supervisors on June 2, 2009 and will go back to the Board at a later date to approve
another amended plan that includes specific projects. In order to be included in this
amended action plan, Culver City must submit its proposed project(s) to LACDC by
May 26, 2009, with Council approval of a resolution following shortly after. So as to
not miss this funding opportunity, staff needed to submit the City’s application by
close of business on May 26, 2009.
HUD is urging grantees and sub-grantees to fund hard development costs associated
with infrastructure activities that provide basic services to residents or activities that
will provide long-term economic benefits. While grantees may fund the full range of
CDBG eligible activities, Congress clearly intends that the CDBG-R funds should
primarily be invested in economic development, housing, infrastructure and other
public facilities that will quickly spur further economic investment, increase energy
efficiency, and job creation/retention.
Good Faith Public Comment Period Notices
City of Culver City, California
City Council Agenda Item Report
Staff acted quickly, in a good faith effort to provide the community with an opportunity
to comment and to comply with the public comment provisions of CDBG. As part of
that effort, a newspaper advertisement was published in the Culver City News on
Thursday, May 14, 2009 and May 21, 2009 inviting the public to review and comment
on the proposed allocation of funds. Additionally, information was made available at
City Hall, the Culver City Senior Center and at the Culver City Branch Library. Staff
received two phone calls from the general public inquiring about where funds could
be allocated and suggesting a possible ADA project.
Staff also sent a memorandum to the CDBGAC explaining the inability to propose
and review new projects due to severe time constraints. The memo asked for their
comments regarding staff’s proposed recommendation for CDBG-R funds.
Comments from the Committee ultimately agreed with staff’s recommendation,
although there was interest in utilizing the funding to create a more visible result in
the City.
DISCUSSION:
In order to meet the project submission deadline, City staff reviewed the slate of
projects that were approved and prioritized for the 2009-2010 cycle by the
Community Development Block Grant Advisory Committee (CDBGAC or the
“Committee”) and the City Council, but were not ultimately selected due to insufficient
funding. These additional CDBG-R funds allowed consideration of these previously
reviewed projects while meeting the tight deadline mandated by HUD.
Approved Projects for 2009-10
Projects listed below were proposed by staff, and the following recommendations
were made by the CDBGAC for the allocation of FY 2009-10 CDBG funding and
approved by Council on January 12, 2009.
• Priority 1: Senior Center Section 108 Loan Repayment ($180,849): A Section
108 loan in the amount of $2,020,000 was used to partially fund construction of the
City’s Senior Center. The amount allotted for repayment of the loan in FY 2009-10 is
$180,850. The payment is taken directly from the City’s allocation of CDBG funding.
The obligation to repay this loan will conclude with the final payment in August 2014.
• Priority 2: CDBG General Administration Authority ($30,193): This project is a
priority of the Community Development Department, whose staff, along with
Accounting Division staff, has primary responsibility for the administration and
management of the City’s annual CDBG funding allocation. CDBG guidelines allow City of Culver City, California
City Council Agenda Item Report
the City to apply up to 10% of the entitlement funds for administration, which includes
administrative, accounting and public participation costs. The CDBGAC
recommended that $30,193, the full amount allowable under CDBG regulations, be
used for the reimbursement of all eligible costs associated with the administration of
the City’s CDBG program.
• Priority 3: Disability Services Specialist ($45,289): The funding for this project is a
priority of the Parks, Recreation and Community Services Department and the
Disability Advisory Committee. This position has been funded with CDBG money for
the past 24 years. The Disability Services Specialist assists in the identification of
available community services, and implements, conducts and facilitates services and
programs for Culver City residents with disabilities. CDBGAC recommended funding
of $45,289, the full amount allowable under CDBG regulations. Historically, the
General Fund has financed the remaining amount, approximately $40,000, to make
up the difference.
• Priority 4: Renovation of the Playground at Veterans’ Memorial Park ($65,607) -
This project proposes to renovate the playground at Veterans’ Memorial Park for
ADA accessibility. The CDBGAC recommended all additional CDBG funding allotted
to the City be contributed to this project. In accordance with HUD regulations, CDBG
funds may be used to pay for the removal of existing “material and architectural
barriers that restrict the mobility and accessibility of elderly or severely disabled
persons to public facilities and improvements.” Therefore, improving the park to
allow for ADA accessibility is an eligible cost but the improvement of playground
equipment is not.
Other Project Requests
Listed below, and ranked in priority by the CDBGAC, are other funding requests,
which exceeded the anticipated amount of the CDBG funds to be received in FY
2009-10. However, with the addition of CDBG-R funding, there is now the ability to
fund these other projects. The CDBGAC recommended the Boise and Atlantic
Avenue Street Tree Installation project as first priority and additional funding be
applied to the Countdown Pedestrian Signals and then to the Sidewalk Replacement
Project.
• Priority 5: Boise and Atlantic Avenue Street Tree Installation Project - Department
of Public Works staff proposed to plant six (6) new street trees along the eastside of
Boise Avenue and six (6) new street trees along Atlantic Avenue ($12,960).
• Priority 6: Countdown Pedestrian Signals - This project proposed from
Department of Public Works consists of having City staff install 176 countdown
pedestrian signals at 23 intersections. A regular 4-way intersection requires (8) City of Culver City, California
City Council Agenda Item Report
countdown pedestrian signals at a cost of approximately $250/each for a total project
cost of $48,400.
• Priority 7: The Sidewalk Replacement Project – This project consists of removing
and replacing uplifted or damaged sidewalks on portions of Colonial Avenue,
Wasatch Avenue, and Boise Avenue (all between Washington Place and Washington
Boulevard). The total CDBG funding request is $49,830 which is the entire cost of
the project.
• Priority 8: Purchase and Installation of Loop System - Proposed by the Disability
Advisory Committee, this project would purchase and install a Loop System at the
City Council Chambers and at Veterans Memorial Park Auditorium at a cost of
$12,000. The Loop System is an assisted listening device that allows individuals with
hearing aides to hear the signal coming from a centralized intersection microphone.
Staff has reviewed the slate of previously approved projects that did not receive
regular CDBG funding for fiscal year 2010 (Priorities 5 through 8 above). Based on
ARRA direction that grantees are to use these funds to maximize job creation and
economic benefit, staff recommends that CDBG-R funding be used for the Sidewalk
Replacement Project (Priority 7) and that the project be expanded to areas in need
within the eligible Census Tract 7028.03, Block Group(s) 1, 2, 4 (West Washington
area – see attached map). This area includes the Phase I and Phase II Area
Improvement Plans as approved by the Redevelopment Agency. These areas have
been targeted for pilot programs in which the Redevelopment Agency and the City
will work to revitalize the area through a multi-faceted approach including streetscape
median improvements, a Commercial Façade Rehabilitation Matching Grant
Program, Code Enforcement and Redevelopment activities. Sidewalk improvements
in these areas will further the goals of the Area Improvement Plans by enhancing
pedestrian movement through the area, increasing accessibility and mobility
opportunities, and assisting in current economic development efforts for the region.
Although the first priority, as designated by the CDBGAC, was the street tree
replacement program along Atlantic and Boise Avenues, staff is concerned about the
maintenance of the approved species for the area and is currently revisiting the
Street Tree Master Plan to determine an optimal selection. Variation for the species
from the existing plan however, requires Parks, Recreation, and Community Services
Commission and City Council review and approval and, as such, the project would
not be “shovel ready” as mandated in the funding guidelines. Additionally, staff does
not feel that the addition of Countdown Pedestrian Signals meets the goals and
objectives for stimulus funding as well as the Sidewalk Replacement Project since
City staff would be responsible for installing the signals.
City of Culver City, California
City Council Agenda Item Report
The maximum allotment for cities for administration costs is five percent. Staff is
proposing to utilize approximately $4,600 of the $92,016 for administration costs
associated with planning, reporting, and financial management. The local HUD office
is discouraging the use of funding for public service due to the increased amount of
reporting for this grant. Therefore, the remaining $87,416 would be used to replace
sidewalks at an average cost per square foot of $12. Staff anticipates CDBG-R
funds would be used to demolish and replace approximately 7,300 square feet of
sidewalk and create 5-8 new jobs during the project period.
FISCAL IMPACT
This funding is above and beyond the initial allocation that was included for
administrative expenses and capital projects in the proposed fiscal year 2009-10
budget. Due to the timing of receipt of these funds and the period in which they will
be expended, this funding will be appropriated to the proper accounts during the
upcoming budget process. The $4,600 of additional CDBG funding will be used to
fund an additional percentage of personnel (administrative) related costs, thus
reducing this amount from the General Fund. A new project number will be created
for the capital project, which is utilizing the $87,416 for sidewalk repair.
ATTACHMENTS:
1. Proposed Resolution authorizing the filing of the City’s 2008-09 CDBG-R
application; and
2. Map of Census Tract 7028.03, Block Group(s) 1, 2, 4.
MOTION(S):
That the City Council:
1. Approve the FY 2008-09 CDBG-R projects, including procedures for
accommodating changes in anticipated CDBG-R funding, as set forth in this staff
report (or as amended this evening); and,
2. Adopt the Resolution authorizing the filing of the FY 2008-09 application for
funding from the Community Development Block Grant Recovery Program,
including all certifications; and,
3. Designate the City Manager as the authorized City official to execute and file all
documents pertaining to the CDBG-R program, including making minor City of Culver City, California
City Council Agenda Item Report
adjustments to project funding to address the actual 2008-09 CDBG-R Allocation;
and
4. Authorize the City Attorney to review/prepare the necessary documents; and,
5. Authorize the City Manager to execute such documents on behalf of the City.
05.26.09
Allocation of 2008-09 Community Development Block Grant
Recovery (CDBG-R) Funds and Adoption of a Resolution
authorizing the Filing of the 2008-09 Application for Funding
from the CDBG-R Program.
MEETING DATE:
AGENDA ITEM:
ATTACHMENTS
1. Proposed Resolution Authorizing the Filing of the City's 2008-09
CDBG-R application; and
2. Map of Census Tract 7028.03, Block Group(s) 1, 2, 4.
Pages
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