HomeMy WebLinkAbout105-3-3-10 Staff Report.pdf
SARATOGA CITY COUNCIL
MEETING DATE: March 3, 2010 AGENDA ITEM:
DEPARTMENT: Community Development CITY MANAGER: Dave Anderson
PREPARED BY: Cynthia McCormick, Assistant Planner, AICP DIRECTOR: John Livingstone, AICP
SUBJECT: FY 2010/11 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
AND COMMUNITY GRANT FUNDING APPLICATIONS
RECOMMENDED ACTION:
1. Conduct the Public Hearing and accept public testimony presentations from applicants.
2. Review recommendations for streamlining the County CDBG program.
3. Continue the Public Hearing to March 17th to finalize grant allocations and approve a transfer of
$13,964 in previously allocated CDBG funds.
REPORT SUMMARY:
Each year the City allocates Community Development Block Grant (CDBG) and Community Grant
funding to community services and programs. Saratoga’s Community Grant funding helps programs that
benefit Saratoga residents whether or not they meet CDBG income requirements. CDBG proposals must
comply with federal and county requirements with priority given to projects that provide affordable
housing, rehabilitation of affordable housing, and public services which primarily serve lower income
clients. CDBG funding has also been available for public improvements to ensure compliance with the
Americans with Disabilities Act (ADA). The availability of 2010-2011 fiscal year CDBG funds was
publicized on the City Website and in the Saratoga News.
CDBG ADA and CDBG Administration
Staff received one application from the Public Works Department for $79,900 which is the total amount
available for ADA projects. As in past years, the CDBG program also includes $15,000 for City
administration of the CDBG program and $13,000 for County administration of the SHARP program.
CDBG Public Services and Community Services
Prior to the writing of this staff report, staff received six (6) applications for community services, three
of which are eligible for CDBG Public Service funding. The total amount of funding requested this year
for CDBG Public Services and Saratoga Community Services is $74,712. The City expects to receive
approximately $26,500 for CDBG public service projects. Council policy is to match CDBG public
service funds 1
1 NOTE: The final CDBG funding amount has not been confirmed but is expected to be announced prior to the beginning of
FY 10/11 (July 1, 2010). The public service fund cap is formula based and subject to change.
for Community Grants. Thus, the total amount available for public service and
community service programs would be approximately $53,000 and the total funding shortfall is $21,712.
DISCUSSION:
CDBG ADA Public Improvement Funding
This City expects to receive $79,900 for affordable housing and/or ADA projects. The Public Works
Department is requesting the full amount for Phase IV of the Accessible Signal Program. The Public
Works Department is also requesting that $13,964 in previously allocated funds be transferred to the
Historical Museum ADA ramp project. This includes $4,464 from the City Hall Public Bathroom ADA
project which cannot be completed due to the current building configuration. An additional $9,500
would be transferred from the Accessible Signal Program in order to complete the Historical Museum
ADA ramp project
SHARP Funding
At one time, the City managed CDBG funds for low-income housing rehabilitation projects. The
SHARP program is now administered by the Santa Clara County Housing and Community Development
Department (HCD). HCD charges $13,000 per year to administer the program. The cost covers
processing loan applications and paperwork, determining eligibility, and coordinating payments to the
contractors doing the repair work.
CDBG Administrative Funding
CDBG funds may be used to pay reasonable costs related to administration of the CDBG program.
Administrative activities include preparing related reports, contracts and correspondence; managing the
annual CDBG allocation disbursement process, monitoring the grantees, and acting as a liaison between
the City and the Urban County Program. The maximum amount that may be allocated for City
administration of the CDBG program is $15,000.
CDBG Public Services
Three applications are eligible for CDBG Public Service funding: Saratoga Area Senior Coordinating
Council (SASCC) requested $37,000; West Valley Community Services (WVCS) requested $20,000;
and Catholic Charities requested $5,000. All three agencies applied for and received full funding last
year. For simplicity, the Council typically funds one program with CDBG funds while funding the other
programs with Saratoga Community Grant funds. The total amount requested for these three
applications is $62,000. The total amount estimated for CDBG public service projects is $26,500. The
amount remaining to be carried over to the Community Grant funding program is $35,500.
Community Services
The three applications that are not CDBG eligible include requests for $5,000 from the Mustard Faire,
$4,212 from the Wildlife Center of Silicon Valley, and $3,500 from the Shady Shakespeare Theater
Company. The total amount requested from these three applications is $12,712. The total amount
including the $35,500 carried over from CDBG public services is $48,212. Council policy is to match
CDBG public service funds, which is estimated to be approximately $26,500. Thus, the total amount
available for community service programs is $53,000 and the total shortfall is $21,712.
SUMMARY OF APPLICATIONS
Summaries of each application are listed below. Applications are provided in Attachment 1. Additional
information (e.g., audit, financial statements) are available upon request.
2011 Mustard Faire
Representatives for the Mustard Faire submitted a proposal for its annual event that celebrates the
agricultural history of Saratoga with education on what can be done to preserve it. The 2,600 Saratoga
residents that attend the Mustard Faire represent an estimated 93% of the approximately 2,800
attendees. The total cost of the program is $6,800. The requested funding is $5,000 which is 73.5% of
the total cost of the program. This project is being considered under the Community Grant program. It is
not eligible for CDBG funding since it does not primarily serve low-income participants. The program
receives in-kind donations and volunteer work as leveraging.
Shady Shakespeare Theater Company
The Shady Shakespeare Theater Company (SSTC) submitted a proposal to help fund performances held
in Sanborn-Skyline County Park. SSTC’s 2009 productions of Richard III and As You Like It were
attended by approximately 4,000 people (3,500 unduplicated) including approximately 350 Saratoga
residents which represent an estimated 10% of the total guests. The total cost of the program is $85,000.
The requested funding is $3,500 which is 4.1% of the total cost of the program. This project is being
considered under the Community Grant program. It is not eligible for CDBG funding since it does not
primarily serve low-income participants. In addition to receiving $19,557 in grants, the program has
requested $20,500 from 6 organizations (including Saratoga).
Wildlife Center of Silicon Valley
The Wildlife Center of Silicon Valley (WCSV) submitted a proposal for wildlife rehabilitation and
release and wildlife education and outreach. Last year, Saratoga residents brought in approximately 100
animals for WCSV services. This represents 2.5% of the approximately 4,000 injured, sick and
orphaned local birds and mammals brought in annually. The total cost of the program is $279,216. The
requested funding is $4,212 which is 1.5% of the total cost of the program. This does not include the
cost associated with phone calls and emails from residents. WCSV historically responds to
approximately 175 to 200 telephone and e-mail inquiries from Saratoga residents each year. In addition,
WCSV held two education presentations in the City of Saratoga in 2009, which were attended by a total
of 65 residents (representing approximately 3.6% of the education/outreach program). This project is
being considered under the Community Grant program. It is not eligible for CDBG funding since it does
not primarily serve low-income participants. Leveraging for the program includes grants, donations, and
investments.
CDBG Public Service Eligible Projects
Catholic Charities – Long Term Ombudsman Program
Catholic Charities submitted a proposal for continued support of the Long Term Ombudsman Program
which provides advocacy for the rights of residents in long term care. The program serves 10,293
unduplicated clients annually including a minimum of 288 Saratoga residents which represent 2.8% of
the total clients served. The total cost of the program is $293,313. The requested funding is $5,000
which is 1.7% of the total budget to operate the program. Catholic Charities has successfully leveraged
funding through donations and funding at the federal and city level. Catholic Charities continues to
apply for CDBG funding from several other cities it serves. This program received grant funding from
Saratoga for the last 2 years. This program is eligible for both Community Grant and CDBG Public
Service funding.
SASCC - Adult Day Care Program
Saratoga Area Senior Coordinating Council (SASCC) submitted its annual proposal for continued
support of the SASCC Adult Day Care Center Program which provides respite care and social activities
for frail elders and their caregivers. The program serves 51 unduplicated clients annually including 21
Saratoga residents which represent 41% of the total clients served. The total cost of the program is
$275,931. The requested funding is $37,000 which is 13.4% of the total budget to operate the Adult
Care Center. SASCC has successfully leveraged funding through donations and annual fundraising
efforts in addition to sliding-scale fees. SASCC intends to apply for CDBG funding from the City of
Campbell and the City of San Jose. This program has received CDBG funding from Saratoga for the
past 9 years. This program is eligible for both Community Grant and CDBG Public Service funding.
West Valley Community Services – Food Pantry and Emergency Rental/Utility Assistance
West Valley Community Services (WVCS) submitted a proposal for continued support of its
Community Assistance Program which provides food pantry and emergency rental/utility services. The
program serves 611 unduplicated clients annually including approximately 67 Saratoga residents which
represent 11% of the total clients served. The total cost of the program is $237,577. The requested
funding is $20,000 which is 8.4% of the total budget to operate the program. WVCS has successfully
leveraged funding through donations and funding at the federal, county and city level. WVCS continues
to apply for CDBG funding from several other cities it serves. This program has received grant funding
from Saratoga for the past 3 years. This program is eligible for both Community Grant and CDBG
Public Service funding.
FUTURE CDBG ADMINISTRATION
Santa Clara County administration of the CDBG program has not been immune to the economic crisis
facing cities and counties. Given their budget deficit, Santa Clara County is looking at ways to
streamline administration of the Urban County 2 program. The agency estimates that the County General
Fund supplemented the HCD 3
budget in the amount of $633,000 this fiscal year. The County has several
recommendations, listed below, for FY 11/12 that are estimated to reduce overhead costs by $327,415.
These recommendations are discussed in more detail in Attachment 3.
1. Establish a minimum amount of $5,000 for Public Service Grants.
2. Limit the maximum number of Public Service Grants for each city to five and consider shifting
smaller city grants to non-CDBG funds.
3. Round all amounts to the nearest $100 at the time that agreements are finalized.
4. Shift all Public Service Contracts to a 2-year concurrent cycle.
5. Change payment requests from monthly to quarterly or semi-annually.
6. Share performance and fiscal monitoring responsibilities among Urban County jurisdictions.
7. Set city expenditure deadlines to two years to minimize roll-overs.
8. Reduce General Fund overhead charges to the HCD Program.
9. Seek proposals for a web-based data management system to unify and simplify administration of
CDBG Program.
10. Increase administrative revenue to the County by reducing or eliminating the $15,000 administrative
allowance allocated to each City.
11. Consider unifying all grants under County administration for CDBG Program Year 2012/13 if above
efficiencies can significantly reduce administrative costs.
12. Consider further increasing the minimum amount and reducing the number of Public Service Grants
for CDBG Program Year 2012/13.
The City of Saratoga is currently complying with recommendations #1, 2, 3, and 12 by allocating all of
its CDBG public service funds to one applicant and funding other applicants through the City’s general
fund. Recommendations #4, 5, and 7 could easily be implemented. The attached letter from the County’
Office of Affordable Housing are only recommendations. The recommendations will be forwarded to
the County Executive/City Managers Group for approval. Staff will continue to work with the County
and report back to the Council as to the outcome of the above recommendations.
2 Cities with populations fewer than 50,000 are not eligible to apply directly for CDBG funds. All such cities in Santa Clara
County have combined to form an “Urban County” in order to apply for funding.
3 Santa Clara County Housing and Community Development
FISCAL IMPACTS:
The CDBG funds for FY 2010/11 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 $26,500 this year.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION:
The City’s FY 2010/11 CDBG allocation will remain with the County.
ALTERNATIVE ACTION:
NA
FOLLOW UP ACTION:
1. Continue the Public Hearing to March 17th to finalize grant allocations and approve a transfer of
$13,964 in previously allocated CDBG funds.
2. Following the March 17th meeting, forward Council’s CDBG recommendations to the County of
Santa Clara and execute contracts with agencies receiving funding.
ADVERTISING, NOTICING AND PUBLIC CONTACT:
The availability of grant funds was publicized on the City Website and in the Saratoga News
in January 2010. Notice of the Public Hearing was properly posted and published in the Saratoga News
on February 16, 2010.
ATTACHMENTS:
Attachment 1 – Applications
Attachment 2 – Grant Request Worksheet
Attachment 3 - Recommendations for streamlining the Urban County CDBG program