SR-6-K (31)CARS:CNS:JR:~ifr94a
Council P~~eeting: April 13, i993
To: ?`Zayor and City Council
FRO.~i: City Staff
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Santa Monica, California
SUBJECT: Proposed F~seal Year 1993-94 Community ~ev~lopment
ProqraM Funda.ng Ratianale
INTRODUCTION
This report pr~sents a Funding Rationale for the City's fiscal
year 1993-94 Community Develapment (CD) Program. The proposed
Funding Rationale ;•,ill provide the bas~s for FY93--94 recommended
funding levels fo~ grantees of the CD Program. Given the cY~y's
current fiscal constraints, implementation of this Funding
Rationale may result in the reduction of the CD Program's funding
level and scope for FY1993-94.
BACKGROI:~PdD
Each year the City's Commun~ty Development (CD} P~-ogram allocates
local and federal funds for ap~rating grants and spec~al projects
ta non-profit human service arganizatians (Community Ser~ice
Pra~ects) and funds capital projects including low-income housing
(Cammunity and ~leighborhooe~ T~provement Fro~ects). Over the past
decade, the CD Prograr~ has gro~rr~ s~.gnificantly in funding level
ar~d scope, becor~ing a major source of support for ongoing
community proqrar~s for the C~ty of Santa Monica.
In the current fiscal year~ the CD Program funds ove~ 5o programs
operated by 30 agencies far a total of $6,248,282. The
$4,405,240 for Communlty Service Projects include legal
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assistance, emergency services, counseling, educational programs,
health care, drug and a~cohol prevention, assisted information
and referral, independent living skills develop~ent, chiZd care
and cammunity organizing support. Additionally, the Ci~y
currently funds six Cammunity and Neighborhood Improvement (CNI~
Projects for a~otal of $1,842,042 ~including $151,2~0 of prior
year ~unds) pramarily for housing dev~lopment and rehabilitation
efforts.
The City's CD Proqram currently aperates ~n a two-year qrant
cycle. In the fundinq pracess far the current fiscal year,
1992-93, projects ~unded in the prior year were eligible to
reapply £or funding through a simple renewal application. This
process ~,Tas designec~ to offer funding stability ta agencies
exh~biting cont~r~ued effectiveness in the deli.very of needed
prag~ams.
nzscusszorr
P?ost of the currently funded Comr'~unity Developr~ent (CD) Programs
have a long hzstory of City support and Each prov~de an important
campanent to the effective netcrork of City-funded agencies. In
order to ensure th~ best use of City funds, i~ is reeor.lmended
that the City ~nstitute targeted cuts to those pragrams that
least effectively impact thase 5anta Monica residents mast in
need. This approach caill allou: the City to continue to prov~de
the basic opera~.ing support for effective angoing cammunity-based
p~ograms in fiscal year 1933-9~, sustaining a compreh~nsive,
responsive and accessii~le nett:~ork of hur~an services in Santa
Monica.
_ ~ ~
Particular emphasis ;aill be placed an program performanc~, level
of service to Santa P~onica residents, level of service to low
income people, impact of city funds on ~he agency, ability to
generate fees or financing to supplant city funds, or delivery af
non-essential programs. City staff make these ass~ssments based
on revie:~ of quarterly pragram and fiscal reports, p~riadic site
visits to aqencies and ~ngoing t~7ork with agencies ~n community
coalitions and planning efforts. Recommendations about which
progra~s should be renet~ed and at what fundang level may result
in the e~i~~nation ar reduct~on flf somE progra~s and may spare
other aqencies a d~ep acrass-th~-board reduction.
Tn ordinary circu~stances, fiscal year 1993-94 would represent
th~ beginning of a ne.ti tEao-year funding cycle ~,tith agencies
competing far fund~nq in a new Request for Proposal (RFP)
pracess. In light af the current fiscal constrain~s affecting
both the City and nan-profit argani.zations, City staff recommend
extending ~he rene4lal process described in ~he previous section
to allov: currently funded non-profit organizations a streamZined
pracess far requ~sting funds in the next fiscal year, 1993--94.
Given that the City may need to reduce the eurren~ level af
funding to Communit~= Development Programs, organizations would
not be able to apply for n~~•~ program funding. Recommended
funding le~,=els tor current CD Program grantees wi].1 be included
in the praposed budg~t submitted to City Council ~or approval in
June, 1993.
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Propos~d FY1993-94 Funding Rationale
The broad goals establ~shed for the C~ Program to be carried on
to FY93-94 wauld ~nclud~:
(1) ~q provide suppart to a wide range of community and
human servaces in ar~er tv sustain or enhance the
qua~ity of life for ~esidents of the Santa Man~ca
community;
(2) To support ~mpartant capital projects that benefit
loTh=-lncome residents and neighborhoods, prioritizing
the maintenance of support to affordable hausing
programs;
(3) Ta remove any remaining obstac~es ~o service for
significant segments af the community that are
traditionally underserved--including ~aw-income and
minorlty residents and persons F~ith disabilxties;
(4) To pravide fund~~g stabi~ity to effective, proven
agencies that deliver these services; and
(~} To leverage City resources with funds from other
sources thus lendinq to a diversified funding base and
increased self suff~ciency for City funded service
praviders.
Fu~ding requests For f~scal year 1993-94 would be e~aluated
according to these goals along caith the minimum eligibility
require~ents and selection criteria (see Attachments I and I~)
approved ~ar the last t::a-year Com~unity Development Program
(FY1991-92 and FY1992-93) b}= City Councll in January, 1991. Use
of these criteria to guide funding recommendat~ons is eriticaZ as
City ~esources are being reduced. The provis~on of effective and
responsive s~rvic~s ta people most in need ~aill be a key
determinant of FY93-94 funding levels.
~n addltion, ~:hile there ~•aill be no nev~ City funds in the com~ng
f~.scal year, the City ~•~il~ contlnue to encourage and support
collaborative efforts far local non-profits to meet em~rging or
unr~et critical needs and to continu~ to plan for future
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improvements in thase areas ~~;her~ gaps in service still exist.
The ability of any City-tund~d progra~ or project to be
responszve ~o changing cvmmunity needs ~•rill be important in these
times of reduced resources.
Additianal reductions to the level of the City's General Fund
support m~Gy co~e froM an increase in next year's Community
Develop~ent Black ~rant (CDBG) entitlement award. The CDBG
entitle~ent a:•;ard is pro~~cted to increase by approximately
$i~a,oao ~ZOo increase) for a ~ota~ of $1,4ao,s5~.
BUDGETARY~FTSCAL IT~IFACT
The propos~d Funding Rationale outlined in this staff report does
nat have an immediate budgetazy ir~pact. The Funding Rationale
will provide a guide ~or funding recommendations within the CD
Prograr~. Specifac funding ~evels for ~he fiscal year 1993-9~ CD
Prograri :,~il~ be included .in the propased budget to be submitted
for Council act~on in June, 1993.
RECOMNiEN~JAI'I~N
City staft recom~nend ~.hat the City Caunc~l approve the propased
fiscal year 1993-94 Fund~ng Rationale and direct staff to prepare
recommendatians for targ~ted cuts as part of the pr4posed fiscal
year 1993-94 City budget.
Prepared By: Susan P~IcCar~hy, D~.rector
Julie Rusk~ Acting Manager
Corir.}unaty and Ne~ghborhood Services Division
Cultural and Recreation Services Depar~ment
Attachner~ts :
Attachment I- CD Prograr~, Co~~unity Service Pro~ec~.s,
:~7inir~um Eligibility and Selection Criteria
Attachment II - CD Pr~gram, CaMr~unity and Neighborhood
Ir~provement Projects, Minimum E~igibil~ty and
Selection Criteria
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ATTACHMENT I
COMMUNITY DEVELOPMENT PROGRAM
COMMUNITY SERVICE PR~JECTS
MINIMUM ELIGIBILITY AND SELECTION CRITERIA
In January 1991, the City Council approved the following minimum
eligibility requirements and selectian criteria ta guide funding
recommendations and decisions for Community Service Programs of
the Community Development grants pragram.
Minimum Eligibility Requirements
(a) The applicant has non-profit, tax-exempt status
under Section 501(c) (3) of the Internal Revenue
Service Code of Sectian 23701(d) of the California
State Franchise Tax Code at the time of
application.
(b) The applicant is in compliance with the Civil
Rights Act of i964 and the Rehabilitation Act of
1973, as amended, which bars discrimination in the
hiring af staff or pravision of services on the
basis of race, religion, sex, age, national origin,
disabilities~ AIDS, pol.itical affiliation ar
beliefs, or sexual preference; and provides
assurances that it will comply wYth a11 Federal and
lacal provisions regarding palitical and lobbying
activity.
(c) The applicant is a private, non-prof it organization
located in or serving Santa Monica or provides a
rationaZe for expanding services to Santa Monica.
A11 City funds and match to City funds, must be
u~ilized for services to people living in Santa
Monica.
(d) The applicant has formal approval of its Board of
Directors to submit a proposal far City support.
(e) The appliean~ must be currently funded by the City
of Santa Monica through the Community Development
Program, unless the applicant is submitting a
proposal for Child Care or AIDS funding.
selection criteria
Each eligible proj~ct will b~ assessed according to the
extent the organization:
(a) addresses a need that is clearly documented;
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dependent. A hea~thy environ~ent is crucial for the
long term prosper~ty o~ th~ City and its residents;
-- Al1 decisions have environmental implications. The City
will ensure that each of its polici~s and programs are
inter-connected through the common bond of
sustainability; and
-- Community awareness, responsibility and involv~ment are
the key elements of successful environmental programs.
One early praduct of the Santia P~onica Sustainable City Program
wi1Z be a checklist ta be ut~lized by all City departments to
make sure that the broad environmental inplications of each
decisian, as encQmpassed by sustainab~lity, are cansidered. The
program will also set farth ambitious and mostly quantifiable
ta~gets in each of four major policy areas ta be reached by the
year 2000. The goals stated in the proposed draft can be modified
as a result af input received during the impending public review
process. The faur majar policy areas (Resource Conservation,
Transportation, Pollution Prevention & Public Health Protection,
and 5ocio-Econamic) c~hieh ar~ included in the propos~d pragram
represent the focus of both current and future City programs
which adhere to the guiding principles and strive ~a attain the
specific goals ~ahich will be established within the document.
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ATTACHMENT II
COMMUNITY DEVELOPMENT PROGRAM
COMMUNITY AND NEIGHBORHOOD IMPROVEMENT PROJECTS
MINIMIIM ELIGIBILITY AND SELECTION CRITERIA
In ,7anuary 1991, the City Council approved the following minimum
eliqibility requir~ments and selection criteria ta guide funding
recommendations and decisions far the Community and Neighborhood
Improvement Projects of the Cammunity Develapment grants program.
Minimum Eligibility Requirements
o The applicant has non-prafit, tax-exempt status under
Section 501(c) (3) of the Internal Revenue Service Code
or Section 237~1{d) of the California State Franchise
Tax Code at the time af applicatian.
o The applican~ is in compliance with Title VI of the
Civil Rights Act af 1964 and Sectian 504 of the
Rehabil~tatian Act o€ 1973, as amended, which bars
discriminatzon in the hiring of staff, ar tha~ persons
be denied the benefits of, or be excluded from th~
participation in provision of services on the basis af
race, religion, sex, age~ national origin, disabilities,
AIDS, political affil~ation or beliefs, or sexual
preference; and provides assurances that it will camply
with all Federal and local provisions regarding
palitical and lobbying activity.
o The applicant is a private, non-profit organization
located in or serving Santa Monica.
o The applicant has farmal approval af its Board of
Directors to sub~nit a proposal for City support.
o If the project is to be implemented by an outside
agency, the agency meets the basic eligibility
rEquirements for grantees listed above.
o The project primarily benefits law and moderate income
persons by ensuring that at least 51% of the population
af the project area benefited by the project are low and
maderate in~ome persons.
a The project meets federal eligibility definitions for
CDBG-funded projects.
Selection criteria
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Each eligible pro~ect will be assessed according to the extent to
which:
o the project will result in long-term benefit to low and
moderate income residents;
o the project provides evidence that the proposed program
or project does not dupl~cate other programs ar projects
in the community;
o the proposed funding structure leverages City funds with
non-City funds;
o the praject shows long-term pot~ntial for a cash return
on the CDBG investment and does ~ot require ongoing CDBG
a~ government support for maintenance;
o if the project is to be implemented by an autside
organization, the proposa3 application inc~udes
documentation of current administrative capacity to
implement community development projects and ta sustain
the project op~rations throughout the life of the
project, as w~ll as experience with similar
government-assisted programs;
o the implementing agency presents a program that includes
both administrative procedures and a viable
implem~ntation plan for timely execution of the project;
o if a currently-funded project, the agency requesting
funding fully justifies additional support based on
timely expenditure of currently appropriated funds;
o the project clearly identifies its Santa Monica target
populatian and documents community need;
o the project will effectively outreach and serve
minority, low-income and residents wi~h disabil~ties and
ather groups most in need of services;
o the implementing agency is guided by an active,
broad-based Board af Dir~ctors with evidence of
providing appropriate leadership to the organizatio~;
o the implementing agency proposes a budget that reflects
cost-effective administra~ive and project activities.
In addition, due to the specific nature of the projects eligible
for funding, additianal criteria will be applied as follows:
Housing Rehabilitation Praqrams
o The proposed pr~gram conforms to HUD program performance
standards with an administrative cost cap of 150 of the
to~al funds reque~ted.
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One-time Housing Projects
o For one-time housing acquisition/rehabilitation or new
construction projects, the total project cost is
reasonable and the subsidy request does not exceed
$40,000 per unit.
o The project is located in the City of Santa Monica.
o The project benefits at least 70~ ~ow and maderate
income households.
o The praject involves na permanent involuntary tenant
displacement.
JR:iifra2
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assis~ancE, e~ergency services, counseling, ed~cational programs,
hea~th care, drug and alcohol prevention, assisted in~ormation
and referral, independ~nt Ziving skills development, child care
and cammunity organizing support. Addi~ionally, the City
currentZy funds six Community and Neigh~arhood I~provement (CNI}
Pro~ects ~or a total of $~,84~,042 (including $15~,210 of prior
year funds) pr~marily for housing develapment and rehabilitation
efforts .
The City's CD Fragram currently operates on a two--year grant
cycle. In ~he funding process for the current fisca~ year,
1992-93, pro~ects funded in the prior year r,aer~ eligible ta
reapply for fund3ng through a siMple r~newal application. This
process ~.~as designed ta offer funding stability to agencies
exhibitinq continued effectivEness in the delivery of needed
programs.
~ISC~sszorr
Most of the currently funded Cpr~munity Development (CD) Programs
have a long history of City su~port and ~ach pravide an important
component ta the effective netTa.~ork of City-funded agencies. In
order to ensure the best use of City funds, it is recammended
that the Ci~y institute targeted cuts to thase programs that a~
least effectively impact those Santa Manica residents most in
need. ~I'his approaeh uri11 allot. the City to continue to provide
the basac operating support for effective ongoing eommunity-based
programs in fiscal year 1993-94, sustaining a comprehenszve,
responsive and accessible network af human servicas in 5anta
Manica.
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