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HomeMy WebLinkAbout02142023 Finance Subcommittee Agenda MEETING NOTICE/AGENDA FINANCE SUBCOMMITTEE GREAT OAK CONFERENCE ROOM 41000 MAIN STREET TEMECULA, CALIFORNIA FEBRUARY 14, 2023 – 4:00 PM CALL TO ORDER: ROLL CALL: Mayor Pro Tem James Stewart and Council Member Brenden Kalfus PUBLIC COMMENTS A total of 15 minutes is provided for members of the public to address the Committee on items that are not listed on the agenda. Each speaker is limited to three minutes. If the speaker chooses to address the Committee on an item not listed on the agenda, a Request to Speak form may be filled out and filed with the staff liaison. Once the speaker is called to speak, please come forward. For all items on the agenda, a Request to Speak form may be filed with the staff liaison. On those items, each speaker is limited to five minutes. COMMITTEE BUSINESS 1. Funding Recommendations for 2023-2024 CDBG Applications ADJOURNMENT February 1, 2023 ___________________________________ Date Randi Johl, City Clerk NOTICE TO THE PUBLIC The full agenda packet (Including staff reports and any supplemental material available after the original posting of the agenda), will be available for public viewing in the main reception area of the Temecula Civic Center during normal business hours at least 72 hours prior to the meeting. The material will also be available on the City’s website at TemeculaCA.gov and available for review at the respective meeting. If you have questions regarding any item on the agenda, please contact the City Clerk’s Department at (951) 694-6444. LEP Compliance: Si necesita más información sobre este aviso o la traducción de documentos en español, comuníquese con Brandon Rabidou al (951) 506-5142 (TTY: 951 308-6344). Kung kailangan mo ng higit pang impormasyon tungkol sa abisong ito o sa salin ng mga dokumento sa Tagalog, tawagan si Brandon Rabidou sa 951-506-5142 (TTY: 951-308-6344) In compliance with the Americans Disabilities Act, if you need special assistance to participate in this meeting, please cont act the City Clerk’s Department at 951-694-6444. Notification 48 hours prior to a meeting will enable the City to make reasonable arrangements to ensure accessibility to that meeting [28 CFR 35.102.35.104 ADA Title II] Item No. 1 1 CITY OF TEMECULA MEMORANDUM TO: Mayor Pro Tem James Stewart, Finance Committee Member Councilmember Brenden Kalfus, Finance Committee Member FROM: Brandon Rabidou, Principal Management Analyst DATE: February 14, 2023 SUBJECT: 2023-2024 Community Development Block Grant (CDBG) Annual Action Plan Funding PREPARED BY: Frank Perez, CDBG Program Consultant RECOMMENDATION: That the Finance Subcommittee provides recommendations for the 2023-24 Community Development Block Grant (CDBG) Annual Action Plan. BACKGROUND: The Community Development Block Grant (CDBG) program was established through the Housing and Community Development Act in 1974. The primary purpose of CDBG funding is the development of viable urban communities by providing decent housing, a suitable living environment, and expanded economic opportunities, principally for persons of low and moderate income. From 1992 to 2012, the City participated in the Riverside County Economic Development Agency Entitlement Program to receive CDBG funding. On June 14, 2011, City Council adopted Resolution No. 11-42 to request that the U.S. Department of Housing and Urban Development (HUD) designate the City of Temecula as an Entitlement Community. On April 10, 2012, City Council adopted the first Five-Year Consolidated Plan (ConPlan), authorizing the City to become an Entitlement Community and direct recipient of CDBG funds from HUD. As an Entitlement Community, the City of Temecula is required to develop a ConPlan every five years. This is the cities second year’s annual action plan of the City’s current five-year ConPlan. For each year, the City is required to prepare a one-year Action Plan to notify citizens and HUD of the City’s intended actions to meet CDBG goals during a particular year. The Action Plan serves as an annual guide on how the City intends to utilize the allotted funds to address national objectives and priority needs identified in the ConPlan. The annual Action Plan is due to the HUD by May 15th of each year. Staff held two CDBG application workshops at the Temecula Community Center on December 1, 2022 (morning and evening) allowing for community and citizen participation regarding how CDBG funding should be implemented, and to provide technical assistance to potential applicants. 2023-24 Annual Action Plan Beginning in July 2023, the City of Temecula anticipates receiving $552,512 through the Community Development Block Grant program. A maximum of twenty percent may be allocated 2 for administration of the program, and a maximum of fifteen percent may be allocated for public services, with the remainder available for capital improvement projects. This leaves approximately $386,719.16 available for capital improvement projects. The breakdown of the estimated budget is demonstrated in the following chart. Public Services The City received eleven public service funding requests totaling $231,823. It should be noted that one of the eleven applications (WeeCare, Inc. – Boost Program) is not eligible as it currently does not meet a strategic plan goal identified in the City’s Consolidated Plan. A maximum of $82,876.60 (15%) may be allocated for public services. Staff completed an extensive review of the applications to determine the benefit to low and moderate-income persons, activity need, cost efficiency and effectiveness, activity management and implementation, and experience and past performance. A summary of the applications is outlined on the following page. All applicants for the 2023-24 funding period satisfy at least one of the required National Objectives outlined by HUD, with the exception of WeeCare, Inc. identified ineligible for funding recommendation as it currently does not meet a strategic plan goal identified in the City’s Consolidated Plan. All other applications identified in the summary considered eligible for funding. The Fair Housing Council conducts mandatory fair housing discrimination and landlord/tenant services, and thus, receives a portion of the annual allocation to provide those mandatory services to Temecula residents. Staff recommends that the City’s grant to the Fair Housing Council, remain similar to current funding levels ($19,875) in order to cover the extensive activities the Fair Housing Council conducts for Temecula residents. An analysis by Los Angeles County studied the overhead costs to administer a CDBG program, as well as those costs sub-recipients of grants under their program. The study found that the administrative burden of managing a grant may exceed the benefits of the grant itself when the grant is less than $10,000. While there are no specific HUD guidelines prohibiting grants less than $10,000, HUD recommends that grants are at least $10,000. As such, staff also recommends that grants to sub-recipients are no less than $10,000. 3 4 Capital Improvement Projects The City received one application for capital improvement funds. The City of Temecula Public Works Departments ADA transition Plan application emphasizes priority one and two accessibility projects in roadways, City parks and facilities, as identified in the draft Americans with Disabilities (ADA) Transition Plan. Financial allocations towards these projects satisfy access to public facilities and improvements for persons with disabilities. Next Steps Determine that if allocations come in lower or higher than anticipated, to move forward with prior finance subcommittee’s recommendations and have that increase or decrease be proportionately spread amongst each category. The Finance Committee recommendations for funding awards to the public service organizations, public improvements will be scheduled for City Council consideration in April 2023 after a 30-day public review period. FISCAL IMPACT: Upon the approval of the 2023-24 Annual Action Plan, the City of Temecula anticipates receiving approximately $552,512 through the Community Development Block Grant program for 2023-24. It should be noted that HUD allocations have been delayed in years past. If allocations come in lower or higher than anticipated, prior finance subcommittee’s have deemed it appropriate to spread that increase proportionately amongst each category. ATTACHMENTS: FY 2023-24 CDBG Public Service Applications Summary (Excel) FY 2023-24 CDBG Public Service Applications Summary Organization Program Name Subcommitee Recommendation Proportion % of anticipated amount Proportion amounts with HUD release allocation 1 Assistance League of Temecula Valley Operation School Bell 7,271.03$ 8.72%-$ 7,225.65$ 2 Boys & Girls Club of Southwest County Before & After School Program 7,271.03$ 8.72%-$ 7,225.65$ 3 Community Mission of Hope Housing Resource - Case Management Program 7,271.03$ 8.72%-$ 7,225.65$ 4 Fair Housing Council of Riverside County Comprehensive Fair Housing Program 20,000.03$ 23.98%-$ 19,875.21$ 5 Hospice of the Valleys Senior Assistance Program 7,271.03$ 8.72%-$ 7,225.65$ 6 Riverside Area Rape Crisis Center Crisis Intervention & Supportive Services for Trauma Survivors 7,271.03$ 8.72%-$ 7,225.65$ 7 SAFE Family Justice Center Temecula SAFE & Healthy Families Program 7,271.03$ 8.72%-$ 7,225.65$ 8 Voices for Children CASA Program 7,271.03$ 8.72%-$ 7,225.65$ 9 City of Temecula - Community Services Dept. Homeless Prevention & Diversion Program 12,500.06$ 14.99%-$ 12,422.04$ Public Service Program Funds Recommended - Subtotal 83,397.30$ 82,876.80$ 10 Habitat for Humanity Critical Home Repair & Maintenance Program 50,000.00$ 13.06%49,724.23$ 11 City of Temecula ADA Transition Plan Implementation 332,992.39$ 86.94%331,012.66$ Housing Activities and Public Improvement Recommended - Subtotal 382,992.39$ 380,736.89$ 12 City of Temecula CDBG Program Administration 111,196.40$ 100%110,502.40$ -$ CDBG Public Service Programs -$ CDBG Housing Activities and Public Improvement Projects -$ CDBG Administrative Costs