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HomeMy WebLinkAbout08/17/1993, 2 - PROPOSED USE OF ENTITLEMENT CDBG FUNDS . . 1.11XnN AGENDA U DA� MX#.z August 17, 1993 San Luis Obispo City Council COUNCILCDD DIR P.O. Box 8100 1ITCA0 ❑ FIN DIR aACAO ❑ FIRE CHIEF San Luis Obispo, CA 93403-8100 O'ATTORNEY ❑ PW DIR 8'1CLERKIORId ❑ POLICE CHF Subject: Proposed Use of Entitlement CDBG Funds ❑ MGMT TEAM ❑ REC DIR ❑ C READ FILE ❑ UTIL DIR Honorable Mayor and City Council Members: 1'�f — ❑ PERS DIR Thank you for the opportunity to comment on the City's proposed use of Entitlement CDBG funds in the City of San Luis Obispo. We submit the following general comments for your consideration: 1) CDBG funds should be targeted to those persons or families most in need of assistance. Federal Regulations require that at least 70% of funds directly benefit low and moderate income households. Moderate income is defined under the HUD CDBG regulations as persons at or below 80% of the area median income. 2) The City should. direct as much of the CDBG funds back into to the community as possible, via direct project funding. Funding of administrative positions should be limited to the actual amount necessary for CDBG administration. Since the County is the lead agency responsible for CDBG administration under the HUD joint powers agreement, hopefully some economies can be realized. 3) Funding of the economic development coordinator position should be evaluated in consultation with the business community. The community benefit derived from the funding of this position should be compared to benefits of investing these same funds directly in economic development projects. 4) CDBG funds should be used to provide a range of housing opportunities, including homeownerhsip. For example the City could sponsor a downpayment assistance program for first-time homebuyers. This 'silent second' could be repaid to the City when the home was sold. CDBG funds should not be limited to rental housing acquisition or development. Thank you for considering these comments. We are hopeful that the City's CDBG Program will be a wonderful success. 2erely, S tt RECEIVED Director of Programs AUG 1 6 1993 '30 Peoples'Self-Help Housing Corp. 1411 Marsh Street Suite 103 CITY CLERK San Luis Obispo, California 93401 SAN LUIS OBISPO,CA TEL: (805) 544-5717 FAX: (805) 544-1901 METING AGENDA L..,E'ITEM # San Luis Obispo Chamber of Commerce Obis Street " San Luis horro 1039 o, California 93401.3278 0 C p (805) 781-2777 " FAX (805) 543-1255 David E. Garth, Executive Director NCIL ]FIRECHIEF R August 13, 1993 IEF10 RNEY CLERKIORIG CHF❑ MGMTTEAM❑ C FILE RHonorable Mayor and Members of City Council ! � F IR City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 V �.- L7 RE: PROPOSED CDBG FUNDING ALLOCATIONS AUG 1.3 1993 Dear Mayor and Council Members, SACITY ls oslsPo CA On behalf of the San Luis Obispo Chamber of Commerce, I would like to express concern over priorities and funding levels in the list of candidate projects for the CDBG funding for the 1994=95 program year. Specifically, the Chamber believes that Economic Development should be placed higher.on the list of priorities. There is no disagreement over the "need" for resources to assist in meeting community housing objectives. There is disagreement, however, over the best way to meet those needs. The affordable housing priority identified in the staff report appears to meet the needs of a selected few. There are alternative ways to use these funds that would derive greater impact than the acquisition of a building. The objective should be to provide affordable housing for a larger number of people. It is our understanding that CDBG funds are to be used for specific purposes that directly benefit the community. It is our belief that a $20,000 handicap access is outside the scope of CDBG funds. While this type of project is worthwhile, it might be more appropriately funded through other vehicles. Even if such a project qualifies for CDBG funding, it does not necessarily mean it is the 'best" project to fund. ACCREDITED CI BER OF COIBMM CHAMBER OF COMMERCE Of THE UNITED'.1A1L5 Another concern is the cost for grant administration. We believe that $160,000 to administer a $500,000 grant is excessive. Just because CDBG allows a 20% administrative charge does not mean it is the right thing to do. Preferably, the funds allocated for administrative cost closely resemble the actual costs, and that the balance be used to fund other community projects. Some programs such as EOC and the Housing Authority have their own established administrative systems, thereby reducing administrative cost to the City. Finally, the ranking of "economic development" as a fourth priority seems totally inappropriate. As the City appointed Economic Strategy Task Force recommends, an Economic Development Coordinator is important in planning for the economic vitality for the future of all San Luis Obispo citizens. Additional emphasis on economic development would provide more job opportunities and, in turn, the ability to afford housing. The benefits derived from economic development efforts will have a greater and longer lasting impact on the community than the other priorities listed. For these reasons, the Chamber of Commerce requests your close scrutiny of the projects, their funding levels, and most definitely the ranking of program priorities. Specifically, we request that "economic development" be considered a higher priority for CDBG funding for the 1994-95 program year. Sincey, Charlie Fruit Chamber of Commerce President TING AGENDA ; MEMORANDUM August 6, 1993 COUNCIL :E03 CDD DIR $� CAO FIN DIR ACRO FIRE CHIEF TO: John Dunn, City Administrative Officer X ATTORNEY PW Din CLERK�ORIOPOUCE CHF FROM: William C. Statler, Director of Finance ❑ frtGl6tT TEAMREC DIR ❑ C READ FILEUTIL DIR SUBJECT: CDBG INDIRECT COST,..RECOVERY . i F1C.E PERSDIR _ I notice that we have already received several written comments expressing concern with the proposed use of 20% of CDBG funds for indirect cost recovery. Since I won't be at the August 17 meeting when this will be discussed, I would like to offer the following comments regarding this, which in some context should be presented at the meeting: • Allocating CDBG funds to the maximum extent possible for indirect cost recovery(along with homeless shelter operations and economic stability) was a specific policy ...recommendation of the Strategic Budget Direction workshop approved by Council on Nfarch 13 (Attachments A.1 and A.2). • Including the use of$160,000 in CDBG funds for allowable indirect cost recovery was included in the Preliminary Financial Plan distributed to Council on May 27, and was specifically highlighted in the staff's presentation at the June 2 budget workshop. • Consistent with Council direction from the March 13 budget workshop and preliminary budget review, the adopted 1993-95 Financial Plan reflects using $160,000 in CDBG funds for indirect cost recovery in 1994-95 (along with $120,000 for homeless shelter operations and $100,000 for economic stability activities — Attachment B). Certainly the Council can reconsider this decision in light of community input annd further reflection on our housing and community development goals. However, eliminating indirect cost recovery will result in a $160,000 revenue shortfall in 1994-95 that will have to be made up from either new revenues or further General Fund staffing reductions (equivalent of 3 regular positions). In closing, I would like to point that indirect costs are real:consider how much time we have all put into this already, and we have yet to receive the grant; let alone spend a dime on accomplishing direct program activities. Do we really think adminstering the "program" — not only performing specific activities (and effectively monitoring and managing them to assure their success), but accounting and reporting for them in compliance with federal requirements — will get easier once we actually start to do something? So ends the Gospel of General Fund Fiscal Health and Responsibilty according to St. Bill. . cc Ken Hampian Arnold Jonas Linda Asprion (who — lucky her — will be the acting Director on August 17) Carolyn Dominguez cdbgmemo ,hi1J'llllilii�l�►► ;Il city of San t"'S OBISpo COUNCIL AGENDA RE i qehmeni �. . C. Approve developing new resources to assure our long-term fiscal health. rRest ollowiowever, theyare either cte in t etr use or specs tc capital purposes, cannot be implemented until late in 1994-95 at the earliest, are contingent upon further legal developments, or require significant.policy decisions that in some cases (such as paramedic fees) require actions by other government agencies. Because of this, they cannot be relied upon in balancing our budget for 1993-95. However, they will improve our long-term fiscal health, and as such, discretion to begin the steps necessary to fully study these options and prepare them for Council consideration at the earliest possible opportunity is recommended: 81mgejatme ty DeveWcarges. ck Grant revenues (which the City will an entihe first time in 1994-95) for indirect omic sties, and homeless shelter operations. 2. tc sery 3. Update park-in-lieu fees from 1984 levels. 4. Establish transportation and general facility development impact fees. 5. Improve cost recovery from special events. 6. Adopt local property transfer tax. OVERVIEW Purpose of this Budget Workshop The City is facing its toughest financial outlook in the post World War II era. To confront this challenge in a straight-forward and meaningful way, we have asked the Council and the staff to identify the steps necessary to ensure a balanced budget early in the Financial Plan preparation process. I Under=this approach, it is important to emphasize that the direction requested at this workshop is an early step - albeit a very important one - in the budget process: it is not budget adoption itself. This will not occur until June of 1993, after extensive Council consideration, community discussion, and public hearings. However, for the forthcoming process to be as meaningful and as productive as possible, it is important that we clearly set forth the fiscal problems facing us and what we can reasonably do about them at the earliest possible opportunity. This is the purpose of this workshop. city of san 1' `S oBtspo Attachment_ v COUNCIL AGENDA REPORT ■ Allocating community development block grant (CDBG) revenues to the maximum extent possible for indirect cost recovery, economic stability activities, and homeless shelter operations. CDBG revenues - which should be available in 1994-95 - are estimated at $300,000 annually. The uses indicated above would use about $400,000 of this allocation. ■ Implementing paramedic service charges. As the Council is aware, there are a number of difficulties associated with finalizing the institutional relationships necessary to implement these fees. There are a wide range of alternatives available in costing and billing for these services. However, we believe it is reasonable to assume that we could recover about $200,000 annually from paramedic fees. ■ Updating park-in-lieu fees. The maximum amount that can be assessed per dwelling unit was capped in 1954. We recommend eliminating any limits on the fair market value of property in calculating park-in-lieu fees. M Improving special event cost recovery. A task force has been formed to present recommendations to Council, which is scheduled for later this fiscal year. i .■ Establishing transportation and general facility development impact fees. Because t of the depressed construction environment, these fees are unlikely to generate significant revenues during 1993-94. However, under a 1% growth rate, they could i generate between $500,000 - $1,500,000 per year depending on the capital facilities included in the fees. Staff is close to finalizing a recommended transportation impact fee, and we anticipate bringing it to Council for approval in April. These fees will help to offset the 50010 decrease in the General Fund contribution to the capital improvement program. ■ Adopting local property transfer tax. As discussed in the Revenue Task Force report, this could generate between $500,000 - $900,000 annually. This has been identified I in the draft open space element as a key source of potential revenues to. fund an expanded open space/parkland acquisition program. Reducing Labor Costs - What Can We do? How Much Could We Save? One of the key budget strategies recommended to the Council is to begin negotiations with our employee associations on ways we can reduce labor costs in order to at least partially mitigate regular staffing cuts. Now that potential cuts have been identified, staff can begin to creatively work with employees in doing this. As evidenced by the suggestions of the . Employee Working Group - as well as a number of less formal employee discussions - there is a high level of employee interest in actively working on this aspect of our budget balancing plan. In beginning these discussions-in earnest, it is important to note that the City cannot take (nor should it) unilateral actions in this area. Ultimately - with the exception of direct/ / BUDGET MESSAGE Attachmen T As part of the Council's strategic budget direction from the March 13 workshop, negotiations were initiated with all six of the City's employee groups to determine their interest and willingness in making compensation adjustments in order to mitigate the impact of the staffing cuts. As a result of these negotiations, the General Unit has agreed to defer their scheduled salary increase (2.5010 in July) to January of 1994 in order to provide continued funding at a 50% level for three positions which were previously scheduled to be eliminated through the end of 1993-94: Accounting Assistant(Finance), Work Health Coordinator (Personnel), and Public Education Specialist (Fire). There is no net fiscal impact associated with this change: the cost of the salary deferral is equal i to the cost of extending these positions (approximately $56,000). Contract Starting i In addition to the regular staffing cuts proposed in this Financial Plan, contract positions are also affected by these reductions: funding for the Solid Waste Coordinator is recommended to be extended through the end of 1993-94 to complete planning efforts currently underway; no funding has been provided for the Bicycle Coordinator or Energy Coordinator beyond their existing contracts. It should also be noted that the contract Wastewater Reclamation Coordinator position in Utilities has also been eliminated, and those duties combined with the Water Projects Manager; and that staffing in the water conservation program has been returned to pre-drought levels. Grants and Community Promotion As directed by Council at the March 13, 1993 workshop, funding for social services and cultural activity grants has been maintained at 1992-93 levels. Additionally, as directed in conjunction with increasing the transient occupancy tax rate from 9510 to 109o', $50,000 has been added to the community promotion program for an enhanced marketing program. i, Homeless Shelter and Economic Stability Program FAspaft the March 13, 1993 workshop, the Council endorsed the concept of fundDhomeesserations and the economic stability program with CDBG funding effective ly, no General Fund support for these activities is shown in 1994-95. Forshelter operation is funded at 1992-93 levels and the economic stabilit100,000 consistent with the March 13 workshop. The 1994-95 budget also $160.000 in CDBG funds for indirect cost reimbursement Other Operating Reductions Reductions in regular staffing account for approximately $1.6 million of the $2.1 million in reductions reflected in the Financial Plan as a result of the direction received from the Council at the March 13 workshop. The remaining $500,000 in reductions .have come from a thorough scrutiny of other line item accounts, including temporary staffing, and these cuts are detailed in the Operating Programs section of this document. Cost Allocation Plan Update As directed by Council, staff has performed a comprehensive review and update of the cost allocation plan to ensure that the enterprise funds are appropriately reimbursing the General Fund A-5 MEETING AGENDA COUNCIL 21-93 ITEM #®=, CAO ❑ FIN DIR ACAO ❑ FIRE CHIEF San . Luis Obispo City Council ATTORNEY ❑ PWDIR gust 16, 1993 c/o City of San Luis Obispo CLERKK RIG ❑ POUCE CHF P. 0. Box 8100 ❑ MGMTTFJM ❑ REC DIR San Luis Obispo, CA 93403-81 P CAWFILE ❑ UTIL DIR TMe ❑ PERS DIR Dear Council Member: roil I have been asked by Mayor Peg Pinard to write .a proposal on how best to use Community. Development Block Grant (CDBG) Funds, pertaining to Priority #3 : Removal of architectural barriers for handicapped and elderly persons. This is from the Council Agenda Report dated August 3, 1993 , . Item #3 . As. an overall plan, I propose that of the CDBG Funds, $100,000 be available each year until the city of San Luis Obispo is fully accessible for both city owned buildings and downtown businesses. Taking into consideration all city owned buildings, namely: City Hall, Public Works, the parking structure on Marsh Street, and the - county historical museum. Other buildings currently owned by the city include: the parking structure on Palm Street, the Rec Center on Garden and Pacific Street, and the two brick buildings on Mission Plaza. In taking into consideration the overall plan it is important to note that 15%. of the funding can be put into economic development. I propose that 10-15% of all funds be allowed for new businesses to comply with the Americans with Disabilities Act. Based on a first come-first serve basis, and as funds allow, these city funds can help businesses - especially new businesses by matching their funding dollar for dollar. Existing businesses can receive the same, based on their economic growth. City Hall contains several items that need changing. I propose: (1) The two front doors leading up to City Hall by way of stairs be replaced by two standard aluminum doors. (2) The two outside doors on the side entrance be replaced by standard aluminum doors. This includes the removal of the inside side doors altogether. . (3) The outside back doors be replaced with automatic sliding glass doors. This includes the removal of the inner doors altogether. (4) Four automatic door openers be put on each of the following doors: the Personnel Department door, the Utility and Finance door, the Administration door, and the Council Meeting Boardroom door across from administration. (5) A lift to be installed to make it more accessible to go from 'Community Development . upstairs to City Hall and visa versa. Presently the accessibility meets ADA standards, but one has to go all the way around the building. The Public Works Building restructuring includes: (1) An automatic door to replace the front edge of the building. (2) . , Rearranging the entry way to make for easier- access to the front desk. For the Parking Structure on Marsh Street, I propose: (1) The fire door remain constantly open by automatic closures or some other means to be investigated by an .architect at a future time. Presently the fire doors leading to. the elevator from the parkway swing inward which clash with traffic either coming into the parking structure, or people exiting from the elevator. This problem occurs on each of the second, third and fourth floors. (2) Entry door widened. It currently meets the minimum standard for a wheelchair, but makes no allowance for fingers or knuckles. In terms of stages of implementation of my overall proposal, the following is a time frame of how I propose to complete the restructuring. City Hall: . By the first year, complete the front and side doors. By the first/second year, install the automatic door in the back. By the second/third year, install the lift to be put in between community development and city hall. Public Works: By the first year, install the automatic sliding glass door. Funds for this can come from the $80, 000 a year that is allotted for use of conversion to existing sidewalks. Parking Structure on Marsh Street: Take care of this within a five to ten year period. San Luis Obispo County Historical Museum: Complete construction which was started in 1986. The Jack House: Make accessible to first floor via ramp or lift. In conclusion, I hope that once you take into consideration these valid points, as they have been carefully thought out and worked out with building contractors, my proposal will meet your approval. Sherry Swenson High Risk Management Consultant Tom Bordonaro Jr. Bordonaro Bros. Construction Flicka Dukes Editor Merging Times Zoli Harway Accessibility Consultant Bryan Gingg SLO Commissioner of Appeals Board for Accessibility Contractor's Glass Co. - 60 Prado Road Telephone:(805)543-0871 San Luis Obispo,California 93401 FAX:(805)543-0236 Contractor's License 1389810 PROPOSAL SUBMITTED TO: DESCRIPTION OF JOB: JOB ADDRESS ADDRESS CITY CITY STATE vxoxE vxoxE 1.DATE e_t .(r}3 � QUANTITY DESCRIPTION UNIT PRICE EXTENDED — — ._............ _............__ ......_............................_................._.......................__... _ ................................_.._. . . __ ... Fmn�1L.. .1qsmx. 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Address: Signed: r' CRY&ZIP: Legal Description: Leader. TERK5e Address: CRY a Zip: c� ° us ¢ =LL Ze �¢wx �cLLge W LJ �z. moR ¢ a ❑ ❑ ❑ ❑ ❑ ❑ z pLL pG❑ f E3 C3 •N: V \ c No Oi �, - F lt;z) 7-9 J �1- ► 2. PROPOSED CDBG FUNDING ALLOCATIONS (JONAS/427 - 30 min.) Consideration of candidate projects for Community Development Block Grant (CDBG) funding under the First Year Plan of the Comprehensive Housing Affordability Strategy (CHAS). (Continued from 8/3/93.) ♦ RECOMMENDATION: Review the candidate projects and, by motion: 1) identify and prioritize projects to receive approximately $800,000 in CDBG funds in the 1994-95 program year; and 2) provide direction on appropriate funding levels. (Please use your agenda report from the 8/3/93 meeting.)