SR-300-002-01 (59)
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3~o'--oe; z..-.o/ JAN 2 7 198'
Santa Monica, California, January 23, 1981
,
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Approval of Final Application for 1981-82
Community Development Block Grant Funds
Introduction
This report transmits the City staff recommendations for the use of Community
Development Block Grant (CDBG) funds for the 1981-82 Program Year. Copies of
all written requests and proposals received by staff are attached. The list
of proposed projects and activities includes these as well as all other sugges-
tions made during the public hearings.
Background
The U.S. Department of Housing and Urban Development (HUD) estimates that Santa
Monica's CDBG entitlement for the 1981-82 program year will be approximately the
same as the current year's allocation, which is $1,539,000. Cities have not yet
been officially notified of actual entitlement amounts because there may be a
decrease in funding. Therefore, City staff is recommending a program budget
totalling $1,535,000, with a Contingency Fund of $150,000. In the event HUD de-
creases the City's entitlement, the Contingency Fund would be reduced accordingly.
Staff is also recommending that Council approve one or two contingency projects
which would be added to Santa Monica's proposed program for 1981-82 in the event
there is no reduction in the entitlement amount.
The CDBG applIcation filed in 1979 included a Three-Year Plan. Projects listed
for 1981-82 were:
Housing, Fire Station Relocation, Alley Storm Drains,
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Improvements, Street Improvements, Alley Construction and Wheelchair Ramps.
711
JAN 2 7 1981
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Mayor and City Council
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January 23~ 1981
Since that time, the City has received considerable input from citizens and
priorities have changed. An alley storm drain, several street Improvements
and construction of wheelchair ramps are included in the recommended budget
for next year's funding. The Fire Station Relocation project is In progress
and City funds are budgeted for this purpose. The Alley Construction and
Alley Improvement projects proposed in 1979 are not located in COaG target
areas and are therefore no longer eligible. Santa Monica's community develop-
ment activities funded by the COSG program are concentrated within the City's
three target areas: Target Area I, the Ocean Park area; Target Area I I, the
downtown area; and Target Area I I I, the Pico Neighborhood area.
A number of citizens have expressed the need in Santa Monica for a variety of
services. Generally speaking, public services are not eligible CDSG activities
unless they are part of concentrated community development activities in an
approved Neighborhood Strategy Area (NSA). The main thrust of the CDee program
is physical development activities benefitting low and moderate-income residents.
Santa Monica has not included any public service activities in its CDSG program
the last six years, but rather funded these activities with Revenue Sharing Funds.
(An exception is the Fair Housing Service which is specifically eligible for COBG
funding).
In order for an area to qualify as an NSA, over 50% of its residents must be low
and moderate-income. A written needs assessment must be prepared which identifies
all the needs of the area and includes a long-term strategy describing the activ-
ities to be carried out, the objectives to be accomplished, the anticipated timing,
and the block grant and other funds to be provided. The City must commit whatever
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Mayor and City Council
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January 23, 1981
funds are necessary to correct 75% of the problems of the NSA within a six-to-
nine year period. City funds may be used toward this goal also.
Public services which are proposed to meet some of the needs in an NSA must meet
certain criteria. The public service must be in an NSA where physical development
activities are being carried out in a concentrated manner. Such services must
primarily serve the NSA residents and may serve non-NSA residents only incidentally.
The public service must be either a new service or a quantifiable increase in the
level of an existing service. Federal assistance in providing the service must
have been applied for and denied. Finally, the public service must be determined
to be necessary or appropriate to support the physical development activities being
carried out within the NSA.
This will be the City's seventh year of participation in the COBG program During
the Planning process several public hearings were held during which citizens ex-
pressed community development needs and suggested projects and activities to meet
those needs. In addition, many written requests and proposals have been received.
In order to comply with clearinghouse requirements and submission requirements of
HUD, it is necessary for City Council to take action at this time on a final CDSG
application for the 1981-82 program year.
Discussion
Again this year, more housing for low and moderate-income persons is the top pri-
ority among those participating in the COBG planning process. City staff is re-
commending that $550,000 of the 1981-82 entitlement be added to the current year's
budget of $577,000 and set aside for the development and implementation of various
housing programs which would be specifically approved by Council at a later date.
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Mayor and City Council
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January 23, 1981
Possibilities include the development of additional new housing for low/moderate-
income seniors and famIlies, housing rehabilitation and code enforcement programs,
provision of transient housing, a pilot program for congregate living, and the
exploration of small units and congregate housing in commercial areas. Reserving
a specific amount of funds at this time for a broadly defined "Housing FundI! will
allm'J for adequate public and Council considerationof specific programs as they are
more completely developed. These considerations will include such issues as the
most effective use of neighborhood organizations. The addition this month, of a
Housing Coordinator to the Environmental Services staff, will be very beneficial
for the development and implementation of housing programs adopted by City Council.
In the development of the proposed budget for the 1981-82 CDBG program, an effort
has been made to include projects in each of the three target areas and to include
the improvements in those neighborhoods which are the most critical. The resulting
proposed budget is an attempt to meet as many community needs as possible within
the constraints of the CDBG program. Proposals not funded will be forwarded to
other City departments, for their consideration and possible inclusion in the City's
budget for 1981-82.
All of the suggested street improvements were analyzed and prioritized by appropriate
City departments. The projects recommended are a result of that analysis Each
of these is also consistent with the City's CDBG Comprehensive Strategy.
The City Council has gone on record endorsing energy conservation activities and
cities are being encouraged by HUD to pursue these efforts as well. Two programs
have been proposed by neighborhood organizations. The Ocean Park Community Orga-
nization (OPCO) has proposed an energy conservation program for the Ocean Park
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Mayor and City Council
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January 23, 1981
are which would be administered by their organization. The Pico Neighborhood
Association (PNA) has proposed a combined housing rehabilitation. code enforce-
ment and energy conservation program for the Pico Neighborhood area which would
be administered by their organization. City staff has suggested a Citywide
program (See #66) which would include the many low-income senior citizens re-
siding in Target Area II (the downtown area). The $60,000 recommended in the
budget is proposed to fund one or more of the alternative energy conservation
programs. Council may wish to allocate the funds and direct staff to explore
additional possibil ities.
The improvements to the Senior Community Roo~ in Santa Monica Place are needed
to provide greater flexibility in the use of the room. As it exists now, only
one activity at a time can be planned, and all equipment has to be transported
to and from the room for each meeting or event. The room is used primarily by
senior citizen groups, but is available to other community groups when not being
used by the senior organizations. It is recommended that before the improvements
are made. an agreement with Santa Monica Place Associates be executed which would
insure the continued use of the Community Room by the community groups.
The Security Installation program recommended IS very similar to a Residential
Security Program approved by Council in 1979. but disapproved by HUD at that
time. After checking with HUD. it is now determined that this type of activity
VJOUld be eligible as a crime prevention. "health & safety" measure in an area
with a high crime rate. Therefore. it is once again recommended by staff for
inclusion in the City's CDBG program.
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Mayor and City Council
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January 23. 1981
Staff is recommending continuation of the commitment made last year to increase
the participation of those segments of the population where participation his-
torically has been low. To accomplish this, it is recommended that funding be
continued for the citizen participation outreach efforts of the Pico Neighbor-
hood Association. It IS also recommended that financial assistance be provided
in support of the efforts of the Hispanic Resource Organization (HRO). The HRO
proposes to survey the Hispanic population of COBG Target Area I (Ocean Park);
and further, to provide information to those Hispanics regarding community de-
velopment programs and available services, and increase their participation in
community development activities. This would be a pilot program to be eventually
extended Citywide. Staff recommends that COBG funds not be released to the HRO
until they qualify for non-profit status and provide the City with a revised
itemized budget and work plan.
Santa Monica has used COBG funds to provide a fair housing service to the citizens
of Santa Monica for eighteen months. It is recommended that $50,000 be budgeted
to continue this commitment to promoting fair housing in Santa Monica. The current
contract for this service expires in June, 1981.
This year's recommended CDBG budget includes Sl50,OOO for payment of the Ocean
Park Redevelopment Project debt. as required by HUD. This is the minimum the
City can allocate. The program budget also includes $170,000 for planning and
administration which is a $lO,OOO increase from the current year1s budget. The
increase is basically to cover one-half of the salary for the Housing Coordinator
which had not been budgeted last year, and to allow for inflationary increases
in administrative costs.
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Mayor and City Council
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January 23,1981
One of the suggestions for use of COBG funds that is not included in the
recommended CDBG budget for 1981-82 is assistance to low-income homeowners
for street light or sidewalk repair fees for which they have been assessed
by the City. It is recommended that City Council establish a policy of using
CDBG Contingency funds to pay these fees when the applicant for assistance
has a verifiable low income. It is further recommended that this "fund" have
a limit of $5,000 total, and that funds be drawn froM the current CDBG Contingency
Fund as needed.
There has been a request that additional street lights be installed on Ozone
Street between Lincoln Boulevard, and Highland Avenue. This is part of a lighting
district where the installation of new street lights was CDBG-funded. To follow
through with the same funding source and completion of the project, it is reco-
mmended that Council allocate $6.000 from the current year's CDBG Contingency
Fund for the iBstallation of the additional lights.
Alternatives
1. The Council may elect to withhold an application for Community Development
Block Grant funds. Although the entitlement is "set aside't 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 and
contingency projects as listed in the attached Proposed Budget for the 1981-82
CDBG Program Year.
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. Council
may establish revised budgets for those actiVities proposed, or substitute
other eligible projects.
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Mayor and City Council
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January 23, 1981
Recommendation
City staff recommends the following:
1. City Council approve the projects and activities referred to in Alternative
2, subject to conditions contained in the staff report; and direct staff to
prepare the final CDBG application and forward it to HUO, subject to comment
from the A-95 clearinghouses.
2. City Council adopt the attached resolution approving submission of the appli-
cation to HUD
3. City Council establish a $5,000 fund, to be drawn from the current CDBG
Contingency Fund, to assist low-income homeowners with fees assessed by the
City for street lights and sidewalk repair.
4. City Council allocate $6,000 from the current year's COBG Contingency Fund
for additional street lights on Ozone Street between Lincoln Boulevard and
Highland Avenue.
Prepared by: John Hemer
Nancy McFarland
JH:NM'sh
Attachments
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RECOMMENDED PROJECTS AND ACTIVITIES FOR THE
1981-82 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
HOUSING ---------------------------------------- $550,000
TRAFFIC SIGNAL - VIRGINIA AVE. & CLOVERFIELD ----- 80,000
WHEELCHAIR RAMPS - PIca BOULEVARD (30) ----------- 12,000
STORM DRAIN - HILL PLACE NORTH & 7TH COURT
TO LINCOLN BOULEVARD ----------------------- 100,000
SIDEWALK CONSTRUCTION, MICHIGAN AVENUE AT
20th STREET --------------------------------- 10,000
STREET LIGHTS - 15th, 17th, 18th & 19th STREETS
BETWEEN BROADWAY AND COLORADO AVENUE -------- 80,000
SENIOR COMMUNITY ROOM IMPROVEMENTS --------------- 10,000
SECURITY INSTALLATION PROGRAM -------------------- 33,000
ENERGY CONSERVATION PROGRAM ---------------------- 60,000
FAIR HOUSING PROGRAM ----------------------------- 50,000
CITIZEN PARTICIPATION OUTREACH - PICa NEIGHBORHOOD
ASSOCIATION --------------------------------- 50,000
CITIZEN PARTICIPATION OUTREACH - HISPANIC RESOURCE
ORGANIZATION -------------------------------- 30,000
PAYMENT OF OCEAN PARK REDEVELOPMENT PROJECT DEBT 150,000
PLANNING AND ADMINISTRATION --------------------- 170,000
CONTINGENCY FUND -------------------------------- 150,000
$1,535,000
SUGGESTED CONTINGENCY PROJECTS:
1. TRAFFIC SIGNAL - PICO BOULEVARD &
EUCLID STREET -------------------------- $65,000
2. ADDITIONAL WHEELCHAIR RAMPS IN TARGET AREA
TARGET AREA III ------------------------ $18,000
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RESOLUTION NO.
6192
(C1ty Council Series)
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
AUTHORIZING THE FILING OF AN APPLICATION FOR 1981-82
CO~1UNITY DEVELOPMENT BLOCK GRANT FUNDS UNDER THE HOUSING
AND COMMUNITY DEVELOPMENT ACT.
WHEREAS, the City Council of the City of Santa Monica
held public hearings to receive comments on community development
performance, to determ1ne community development and housing needs,
and to review the draft appl1cationi and
WHEREAS, a survey of housing conditions was conducted
1n the City of Santa Monica; and
WHEREAS, a Citizen Participation Plan was developed
to provide citizens with adequate information concerning the
amount of funds available for proposed community development and
housing activities, the range of activities that may be under-
taken and other important requirements; and
WHEREAS, citizens were prov1ded an adequate opportunity
to participate in the development of the application and in the
development of any revis1ons, changes or amendments; and
WHEREAS, on January 27, 1981, the City Council
approved a final appl1cation for submission to State and local
clearinghouses in compliance with OMB Circular A-95 clearing-
house requirements and approval of certifications required with
the application.
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
SANTA MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1. That the C1ty Council of the City of
Santa Monica possesses legal authorlty to apply for the grant
and to execute the proposed program.
SECTION 2. That the City Councll authorizes the
filing of the application, lncluding all understandings and
assurances contalned therein.
SECTION 3. That the City council designates the City
Manager as the authorized representatlve of the City of Santa
Monica to act in connection with the applicatlon and to provide
such addltional information as may be required.
SECTION 4. The City Clerk shall certify to the
adoption of this resolution, and thenceforth and thereafter the
same shall he in full force and effect.
ADOPTED and APPROVED this
3rd
day of February, 1981.
APPROVED AS TO FORM:
s~1i~~~
Acting City Attorney
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ADOPTED MJD APPROVED TH IS
OF Fe~ruary . J 1981.
3rd
DAY
(). kJ~
~AYOR
I HEREBY CERTIFY THAT THE FOREGOHJG RESOLUTION"
[WI 6192 1 HAS DULY ADOPTED BY THE CITY COUflCIL OF THE
CITY OF SANTA rmu I CA AT A REGULAR ~'EET I rJG THEREOF HELJ ON
Februarv 3rd 1 1981 BY THE FOLLO\!ING COUNCIL VOTE:
AYES:
CDUNC I L!1Ei'mERS:
Yannatta Goldway, Jennings
Reed and Mavor Bambrick
"
flOES:
CDUNC I U1Er13ERS:
Rhoden and Scott
ABSENT: COUNCI~[81gERS: None
ABSTAIN: COUNCI U1E~mERS: None
ATTEST:
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CITY CLERK