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SR-300-002-01 (54) . ~- ~'r~_.~.. ......-- ... ~ ~ < , . ; - - ...' . : - - - <-0:'. 3?J?:J- ,002-.0/ Santa Monica, California, January l4, 1980 TO: Mayor and City Council 71J FROM. City Staff J A N 2 2 1980 SUBJECT Approval of Final Application for Community Development Block Grant Funds Introduction This report transmits the Cityls Sixth Year proposal for the use of Community Development Block Grant (CDBG) funds and recommends that the City Council approve submittal of the application to the clearinghouses and the U.S. Department of Housing and Urban Development (HUD). Copies of all requests and proposals re- ceived by staff are attached. Background On January 8, 1980 the City Council conducted a Public Hearing on Community Needs to determine citizens/views on the use of CDBG funds. In addition, the City has received many written requests and proposals. In an effort to comply with clearinghouse requirements and submission requirements of HUD, it is necessary for the City Council to take action on a final application for the City's formula entitlement of Sl.479 mill ion for Fiscal Year 1980-81. Discussion When the final CDBG application was filed last year it included a Three-Year Plan. Along with the application for Fiscal Year 1979-80, projects and activities were tentatively approved for Fiscal Years 1980-81 and 1981-82. The projects included in the second year of the Three-Year Plan were: Housing, $600,000, Mall Access from Parking Structures, $460,000; Alley Storm Drains (two locations), $120,000; Water Main on Marine Street, Lincoln Boulevard to Main Street, $100,000, Street Lighting in Ocean Park, $20,000, Wheelchair Ramps, $8,000; and Kitchen Modification 74 JAN 2. 2 ,980 . . Mayor and Council -2- January l4, 1980 at Memorial Park, $15,000. The Housing and Street lighting projects are included in the recOMmended budget for next year's funding. An approved Mall project linked to the parking structures was disallowed by HUD last year, and it is likely that HUD would disapprove the Mall Access project. Priorities have changed on the publ ic works projects, and staff is recommending only the street lighting and will consider local funds for the others. Wheelchair ramps will continue to be constructed citywide with local funds according to City policy. The Memorial Park Kitchen Modification has been withdrawn by staff because the feasibility of the project needs further study. HUD will be informed of changes in the Three- Year Plan submitted last year. Again this year, the greatest need expressed by citizens is more Illow-cost" housing. HUD also has recommended that Santa Monica increase its efforts to provide additional hOUSing for low/moderate-income persons. The City just purchased two parcels of land with CDBG funds, to be developed with housing for lower-Income families and elderly. The staff recommends an additional $750,000 be earmarked for housing acquisition. An additional sum of $320,000 is recommended for the Multiservice Center to sup- plement the $280,000 allocated for this purpose during the current fiscal year. The project is proposed to be constructed on the existing site of Family Service of Santa Monica. It is further recommended that approval of the $320,000 be conditioned upon review and approval by the City Council of the preliminary architectural and site plans as well as a proposed operational agreement by June 1, 1980. . . Mayor and Council -3- January 14, 1980 Three target areas have been designated in Santa Monica for CDBG activity. A target area must contain at least 5l% low and moderate-income residents and receive concentrated CDBG efforts. Target Area is the Ocean Park area west of Lincoln Boulevard and south of Pico Boulevard. It includes Census Tracts 7020 and 7021. Target Area r r, Census Tract 7019, is the "downtown" area incl uding the Central Business District and is bounded by Wilshire, Lincoln and Pico Boulevards. Target Area III includes Census Tracts 7017.02, 7018.01 and 7018.02 and is generally known as the IIPico Corridor." In conformance with HUD guidelines, staff is re- commending community development activities in each of these areas as a continuation of the commitment made with earl ier projects. Add i t i ona 1 1 i ght i ng on the Ma II is proposed as a secur i ty and cr i me prevent ion measure. This would be in keeping with the City's continuing efforts to improve and upgrade the downtown area, Target Area I I. This project is endorsed by mer- chants, employees and other Mall users, along with the Mall Improvement Committee lI'/ho generated the Mall Improvement Study completed in 1979. Security lighting in Joslyn Park and street lighting at various locations in Target Area I are also crime prevention and security measures. These improvements were requested by citizens of the area through the Ocean Park Community Organization (opca). Property owners will be assessed one half of the cost of the street lights. Staff recommends that these activities be funded as a continuation of previous community development efforts in the area. The Pico Neighborhood Association is a newly established citizens organization in Target Area I I I. The Association has requested funds for citizen participation outreach efforts in their community. This is an eligible use of CDBG funds, and e . Mayor and Council -4- January 14, 1980 in fact, is encouraged by HUD. City staff is recommending that $30,000 be set aside for the Pico Neighborhood Association. It is further recommended that the funds not be released to the group until the Association qualifies for non-profit status and provides the City with a revised itemized budget and a work plan which incorporates a mechanism for monitoring. Staff is also recommending for inclusion a street lighting project requested by citizens in Target Area I I I. This yearls proposed CDBG budget also includes $150,000 for payment of the Ocean Park Redevelopment Project debt, as required by HUD. This amount is the minimum that the City can allocate. The amount of $160,000 is proposed for Planning and Administration, and includes amounts for audit fees, indirect costs and the up- dating of the City's Indirect Cost Allocation Plan. These items were not pre- viously provided for. It is also recommended that S5,500 be reserved for con- tingencies. Alternatives 1. The Council may elect to withhold an application for Community Development Block Grant funds. Although the formula entitlement of $1,479,000 is "set aside" specifically for Santa Monica, the funds do not flow automatically. A formal application is necessary for receipt of funds. If the City fails to submit an application, the allocation would then be placed in a discretionary fund for use by other cities. 2. City Council may elect to approve the staff recommendation of activities for the Sixth Year Community Development Block Grant as follows: . . Mayor and Council -5- Jan ua ry 14, 1980 Housing/Site Acquisition $750,000 Payment of Ocean Park Redevelopment Project Debt 150,000 Multiservice Center for Social Services 320tOOO Street Lighting - Euclid Street at Michigan Avenue 6,000 Lighting in Joslyn Park 20,500 Street Lighting - Ocean Park Area 50,000 Lighting on Santa Monica Mall 50,000 Citizen Participation & Planning - Pica Neighborhood Association 30,000 Planning and Administration 160,000 Contingency Fund 5,500 $1 , 5~2 ,000 HUD Sixth Year Allocation Reprogrammed Funds $1 ,479 t 000 63,000 Sl,542,000 3. City Council may elect to reduce or increase any of the projects proposed by staff, with the exception of the payment of the Ocean Park debt. The Council may extablish revised budgets for those activities proposed, or substitute other eligible projects. Recommendation City staff recommends the City Council approve the projects and activities included in Alternative 2, subject to conditions contained in the staff report; and that the final application be forwarded to the U.S. Department of Housing and Urban Develop- ment, subject to comment from the State and regional clearinghouses. It is further recommended that Council adopt the attached resolution approving submission to HUD. Prepared by: John Herner Nancy McFarland Attachments e e Q) Q) <fl C I I lI.l 0 e 0 +-I 0 l.... ...c +-I 0 ..... III I......c 0 +-I Vl oJ) e ::J 0.04- ::;. In "'0 C E '-I- 0) ro I- 0) I... 0 "'0 ...c E 0 > E c:L :z "'0 oJ).- "'0 e ~ Vl III La.l e CL +-I e <0 oJ) l.... L Q) 0 III IV e e Q. C) m L l= l.... N .j..O ro III 0 0 0 E 0..'- <fl oJ) ~ ...c 0 I... U 0 e "'0 OJo..u <fl 0) 0. "'0 U -0 U Q) III C -0 Q) Q) Q) Q) Q) > 01::1 ::I":>:' E 01 Q) ~ I/l "'0 "'0 "'0 l.... 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