| ITEM #: 1. DATE: 02/28/2022 AI #:651 |
 |
CITY COUNCIL ACTION REPORT
| SUBJECT: | FY2023 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) |
| STAFF PRESENTER(S): | Christina Panaitescu, Grants and Neighborhood Services Supervisor |
Summary
Staff is seeking Council direction to prioritize eligible activities for the investment of FY2023 CDBG entitlement funds. (Christina Panaitescu, Grants and Neighborhood Services Supervisor)
FISCAL IMPACT
The Annual Action Plan, to be submitted to the federal department of Housing and Urban Development (HUD) for acceptance, will define how Goodyear intends to invest its FY2023 CDBG entitlement funds.
BACKGROUND AND PREVIOUS ACTIONS
In May 2020 Council provided direction for staff to pursue CDBG entitlement status, meaning the city would receive a direct allocation of CDBG funds from the federal government, rather than competing for funds through the Maricopa Urban County. Last May, the City submitted a consolidated plan and first year action plan to HUD. As identified in the plan, the City is currently in the process of replacing existing streetlights with improved LED fixtures and adding bollard lighting along a neighborhood pathway to improve safety in North Subdivisions using FY2022 CDBG funds.
The consolidated plan provides a five-year framework for use of CDBG entitlement funding, and is implemented through activities identified in annual action plans.
Projects (called activities) must benefit low-to-moderate-income (LMI) Goodyear households or neighborhoods, or serve specific populations who are presumed to be LMI, and have to fit in one of the following eligible priority areas which were prioritized in the consolidated plan: program administration, community facilities and improvements, and public services. Activities identified as low priority, attainable and sustainable housing or eligible economic development projects, are also eligible if an exceptional opportunity were to present itself.
To prepare for this work session, staff has consulted with stakeholders including city department directors and members of the Faith & Community Roundtable, and hosted a public meeting, seeking suggestions for eligible projects. Eligible activity suggestions that were raised included both facilities and services.
The consolidated plan provides a five-year framework for use of CDBG entitlement funding, and is implemented through activities identified in annual action plans.
Projects (called activities) must benefit low-to-moderate-income (LMI) Goodyear households or neighborhoods, or serve specific populations who are presumed to be LMI, and have to fit in one of the following eligible priority areas which were prioritized in the consolidated plan: program administration, community facilities and improvements, and public services. Activities identified as low priority, attainable and sustainable housing or eligible economic development projects, are also eligible if an exceptional opportunity were to present itself.
To prepare for this work session, staff has consulted with stakeholders including city department directors and members of the Faith & Community Roundtable, and hosted a public meeting, seeking suggestions for eligible projects. Eligible activity suggestions that were raised included both facilities and services.
STAFF ANALYSIS
Although specific award amounts have not yet been communicated by HUD, best practice dictates using the previous year's award for planning purposes. Goodyear's FY2022 entitlement was $429,038. As the city's actual allocation could be greater or less than the FY2022 entitlement, any activity selected should be able to accommodate a shortfall or be adapted to a surplus.
CDBG is a complex grant program and requires administration and oversight. Examples of administrative expenses include: activities related to compliance with federal regulations, promoting the principles of fair housing, assessing neighborhood conditions and the need for human and public services to address the needs of vulnerable populations, and establishing application and monitoring systems. Staff recommends the city reserve the full 20% allowable for administration ($85,807) and intends to apply CDBG funds toward phase II of the Community & Neighborhood Services Master Plan, a neighborhood assessment to be conducted in FY2023.
That would leave a balance of $343,231 available for activities that meet the national objective and align with consolidated plan priorities. Given the anticipated award amount and the administrative burdens that accompany these funds, at this time, staff recommends retaining a focus on large, capital, community improvement-type projects, rather than public services, attainable and sustainable housing, or economic development initiatives.
Of the potential eligible actives raised, one community project and two city projects are feasible. Staff’s recommendation is to allocate the balance (80% of the entitlement) to fund one of the following three eligible projects:
Childcare Center Renovations at New Life Center - Total Project Costs: $524,246
This project would provide significant reconfiguration and remodeling in the Child Development Center to address the needs of children with trauma informed care. New Life Center would manage the project, submit for reimbursement from the city, and provide any required reporting to enable the city to fulfill its obligation to HUD. (This project is eligible because the population served is presumed LMI.)
Loma Linda Wading Pool Conversion - Total Project Costs: $832,200
Currently, this project is in the CIP for FY2025 but could be accelerated to begin in FY2023. The project scope includes the removal and backfill of the existing baby pool and the installation of a splash pad with a variety of surface play features in the same location. (This project is eligible because the service area is LMI.)
Ambulance for the fire station that serves Mobile (FS187)- Total Project Costs: $340,970
Planned to begin service in FY2027, this project could accelerate the purchase and outfitting of an ambulance to be in-service in Mobile by July 2023, enabling Goodyear Fire to transport 911 patients and subsequently bill healthcare insurances for services rendered. (This project is eligible because the service area is LMI.)
CDBG is a complex grant program and requires administration and oversight. Examples of administrative expenses include: activities related to compliance with federal regulations, promoting the principles of fair housing, assessing neighborhood conditions and the need for human and public services to address the needs of vulnerable populations, and establishing application and monitoring systems. Staff recommends the city reserve the full 20% allowable for administration ($85,807) and intends to apply CDBG funds toward phase II of the Community & Neighborhood Services Master Plan, a neighborhood assessment to be conducted in FY2023.
That would leave a balance of $343,231 available for activities that meet the national objective and align with consolidated plan priorities. Given the anticipated award amount and the administrative burdens that accompany these funds, at this time, staff recommends retaining a focus on large, capital, community improvement-type projects, rather than public services, attainable and sustainable housing, or economic development initiatives.
Of the potential eligible actives raised, one community project and two city projects are feasible. Staff’s recommendation is to allocate the balance (80% of the entitlement) to fund one of the following three eligible projects:
Childcare Center Renovations at New Life Center - Total Project Costs: $524,246
This project would provide significant reconfiguration and remodeling in the Child Development Center to address the needs of children with trauma informed care. New Life Center would manage the project, submit for reimbursement from the city, and provide any required reporting to enable the city to fulfill its obligation to HUD. (This project is eligible because the population served is presumed LMI.)
Loma Linda Wading Pool Conversion - Total Project Costs: $832,200
Currently, this project is in the CIP for FY2025 but could be accelerated to begin in FY2023. The project scope includes the removal and backfill of the existing baby pool and the installation of a splash pad with a variety of surface play features in the same location. (This project is eligible because the service area is LMI.)
Ambulance for the fire station that serves Mobile (FS187)- Total Project Costs: $340,970
Planned to begin service in FY2027, this project could accelerate the purchase and outfitting of an ambulance to be in-service in Mobile by July 2023, enabling Goodyear Fire to transport 911 patients and subsequently bill healthcare insurances for services rendered. (This project is eligible because the service area is LMI.)