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HomeMy WebLinkAbout101-Staff Report.pdf SARATOGA CITY COUNCIL MEETING DATE: March 16, 2011 AGENDA ITEM: DEPARTMENT: Community Development CITY MANAGER: Dave Anderson PREPARED BY: Cynthia McCormick, AICP DIRECTOR: Chris Riordan, AICP SUBJECT: FY 2011/12 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND COMMUNITY GRANT FUNDING APPLICATIONS RECOMMENDED ACTION: 1. Make a decision regarding CDBG recommendations and Community Grant allocations. 2. Approve a transfer of the entire remaining SHARP funds and outstanding loans to the Santa Clara County Housing Rehabilitation Program. DISCUSSION: On March 2, 2011 the Council heard testimony from public supporters and agency representatives seeking Community Development Block Grant (CDBG) and Community Grant funds. A copy of all of the applications is provided in Attachment 4. Additional information (e.g., audit, financial statements) is available upon request. ADA Projects: The total amount available for affordable housing and/or ADA projects is expected to be $85,697. The City received two requests for the entire amount. Saratoga Historical Foundation requested $6,200 and the City of Saratoga Facilities Department requested $79,497. Community Service Programs: The City received 7 applications for community service funding for a total request of $73,677.85. The Saratoga Area Senior Coordinating Council requested $34,000; West Valley Community Services (WVCS) requested $15,164; Santa Clara Family Health Foundation requested $9,288; Shady Shakespeare Theater Company requested $5,000; Catholic Charities requested $5,000; KSAR requested $3,100; and the Wildlife Center of Silicon Valley requested $2,125.85. The City expects to receive approximately $31,900 for CDBG public service projects1. Council policy for Community Grant funding is to match CDBG Public Service funding. Thus, the total amount available for community service programs is expected to be $63,800.00 and the total shortfall is ($9,877.85). Contingency Plan: CDBG funding is subject to change and the Council should therefore recommend a contingency plan. Last year, the funds increased and the Council gave the additional public service funds to SASCC and the additional capital improvements funds to the Accessible Signals program. 1 In past years, the Council has distributed the entire amount of CDBG Community Service funding to one program while funding the other Community Service applicants with Community Grant funds. This approach eliminates the cumbersome CDBG reporting requirements for the other applicants and decreases the amount of administration required by City staff to distribute CDBG funds. CDBG Administrative Funding: In past years, the City of Saratoga received $15,000 to administer the CDBG program; however, the City will no longer receive this money. Saratoga Housing Rehabilitation Program (SHARP): In the past few years the City has not received any SHARP applications despite outreach. HUD allows communities to retain 150% of its annual CDBG allocation but the City currently maintains 232%. Staff recommends the City Council approve a transfer of all remaining SHARP funds and outstanding loans in order to meet the timeliness ratio and avoid losing future funding. FISCAL IMPACTS: The CDBG funds for FY 2011/12 are federal Housing and Urban Development funds administered by Santa Clara County and allocated to participating cities. Under the Community Grants program, Council policy is to match CDBG public service funds, which is estimated to be $31,900 this year. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City’s FY 2011/12 CDBG allocation will remain with the County. ALTERNATIVE ACTION: NA FOLLOW UP ACTION: 1. Forward Council’s CDBG recommendations to the County of Santa Clara and execute contracts with agencies receiving funding. 2. Approve a transfer of $118,172.77 in unused SHARP funds and $26,000 in unused SHARP administration funds to the Unincorporated Housing Rehabilitation Program. ADVERTISING, NOTICING AND PUBLIC CONTACT: Staff sent a copy of the application to past applicants and interested individuals in December 2010. The availability of grant funds was publicized on the City Website and in the Saratoga News in January 2011. Notice of the Public Hearing was properly posted and published in the Saratoga News on February 15, 2011. This item was also posted as a City Council agenda item and was included in the packet made available on the City’s web site in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting and residents may subscribe to the agenda on-line by opting in at www.saratoga.ca.us. ATTACHMENTS: Attachment 1 – Resolutions Attachment 2 – Allocation Worksheet Attachment 3 – March 3, 2010 Staff Report Attachment 4 – Correspondence from Katherine & Michael Metz