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Home My WebLink About04/01/1997, 5 - A. FINAL REVIEW OF THE 1997 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (CDBG) AND DRAFT 1997 CONSOLIDATED PLAN ONE-YEAR ACTION PLAN; AND B. CONSIDERATION OF AMENDMENTS TO THE 1994, 1995 AND 1996 CDBG PROGRAM YEARS. C. CONSIDERATION OF RECOM council j ac en as nepout CITY OF SAN LU IS O B I S P O FROM: Arnold Jonas, Community Deve opment Director PREPARED BY: Jeff Hook, Associate Planne SUBJECTS: A. Final Review of the 1997 Community Development Block Grant Program (CDBG) and Draft 1997 Consolidated Plan One-Year Action Plan; and B. Consideration of amendments to the 1994, 1995 and 1996 CDBG Program years. C. Consideration of recommended HOME and Special Urban Projects and funding levels for the San Luis Obispo Urban County. CAO RECONEM ENDATION: By motion, 1) approve the 1997 CDBG Program activities and funding as shown in Table 1, and the Draft 1997 Consolidated Plan One-Year Action Plan; 2) approve the amendments to the 1994, 1995 and 1996 CDBG Program Years, as shown in Table 2; 3) recommended HOME and Special Urban Projects funding, as shown in Tables 3 and 4; and forward the Council's actions and funding recommendations to the Board of Supervisors for final action. DISCUSSION Update. This report focuses on Council's direction and comments from the March 4'b CDBG hearing, and includes additional information requested by councilmembers. For a general overview of CDBG funding priorities and procedures, councilmembers may wish to bring the March 4te staff report to this meeting since these topics are not repeated in this staff report. Last month, Council reviewed the proposed 1997 CDBG and HOME activities, amendments to previous years' CDBG programs, and the application for the Section 108 Federal Guaranteed Loan. Council approved the loan application and continued consideration of the CDBG/HOME funding requests to the April ? hearing to allow the required 30-day public review of the draft Consolidated Plan. The required public review period has closed, and the City Council may now take final action on the CDBG program activities and funding levels. On March 25th, the Board of Supervisors approved the City's Section 108 loan application and forwarded it to HUD. Council members asked for additional information on several aspects of the proposed CDBG program and exhibits A, B, and C include this information: • accounting basis for the proposed 20% administrative cost recovery; • details of Peoples' Self-Help Housing rental rehabilitation project on Brizzolara Street; • expanded background on EVC's request for Revolving Loan Funds for economic development. 5-/ Council Agenda Report- CDBG Funding Page 2 Administrative Cost Recovery Exhibit A summarizes the estimated amount of time staff is spending in CDBG program administration. These costs include time spent on design and inspection of CDBG capital improvement projects, preparing budgets, completing required performance reports, preparing environmental documents, and monitoring the performance of contractors receiving CDBG funds. All of these activities are necessary and required activities under HUD and Urban County rules. Total support costs are estimated at $204,600. HUD rules allow cities and counties to use up to 20 percent of the jurisdictions' annual entitlement to recover administrative expenses. Staff recommends that the City allocate $187,044, or 20 percent of its 1997 CDBG entitlement, to recover administrative costs of the CDBG program. By doing so, General Funds will be available to improve the effectiveness of the Seismic Retrofit Grant Program, which the Council will consider on April 15'". Rples' Self-Help Housing Corporation Project on Brizzolara Street Exhibit B describes Peoples' Self-Help Housing Corporation's (PSHHC) proposal to use $200,000 in HOME funds to purchase and renovate five apartments on Brizzolara Street in San Luis Obispo. The property consists of four 2-bedroom apartments and one 3-bedroom apartment, a unit mix that will allow PSHHC to serve families, a group identified in the Housing Element as having special housing needs. The units are in sound condition; however PSHHC plans to upgrade the electrical and heating systems, repair roofing, paint the units and complete other routine improvements to ensure that the project is a "good neighbor." HOME funding would account for about 47 percent of the project's total funding, with the balance coming from private bank financing and State funding. Through an affordability agreement with the City, PSHHC will guarantee long-term affordability for the units for at least 30 years. Economic Vitality Commission's Revolving Loan Fund Exhibit C discusses three aspects of the RLF which Council questioned at last month's meeting: rate of job creation, loan limits, and loan fund costs. Also included is a letter from the Private Industry Council confirming its role in implementing the economic development program. EVC notes that the RLF will be designed and operated so that it exceeds federal standards for job creation for low and very low income persons. For uniformity throughout the County, the EVC recommends that as a minimum standard, at least one job be created per $35,000 in loans, and that all jobs go to low/moderate income persons ("moderate" under federal standards means 51-80% of County median income). EVC staff believe that the actual job creation rate will be higher than the 1 job/$35,000 ratio. Staff concurs, and recommends that a higher job creation standard be set countywide. Staff recommends that for every $20,000 in loan funds, one job be created for a low/moderate income person (or very-low income person). Revised Funding and Program Recommendations. Table 1 has been revised to Council Agenda Report - CDBG Funding Page 3 reflect additional carry-forward funds available. An additional $137,143 in unused Section 108 Loan repayment funds and Seismic Grant funds was found to be available after completing quarterly reports for the three block grant years, 1994-1996. Staff recommends that $16,955 of these additional funds be allocated to the Women's Shelter Storage Building, and $120,188 be added to the $170,584 previously recommended for the installation of access improvements for disabled persons. Staff had previously recommended that Special Urban Projects funding be used for the Women's Shelter Storage Building; however, County staff is not recommending Special Urban Projects funding for this activity. Staff supports the project as a necessary and appropriate use of CDBG funds. The Women's Shelter has indicated that the storage building would, in essence, complete the Women's Shelter for the foreseeable future and that after this request, no additional funding requests are anticipated. Because HUD wants grantees to undertake projects as soon after grant approval as possible, staff recommends using the remaining $120,188 in carry-forward funds to improve access to public facilities for disabled persons. With the assistance of the Human Relations Commission and community interest groups, the City already has a list of needed access improvements which could move forward quickly if funding were available. TABLE l: Recommended CDBG ActYvitfes turd fun&ng levels for the 1997 Program Year con ing CDBG Pro in italics ^'3 ppppvr`r'' scrr udim .: n......... MtFf:Sj:`:::i::i:is ect:Nalm�:: ••:>; RLA v(�W� .......... .... ..:.x f.n..n.......... ......................::::::I.::::. :::': ,.y�x(�»,��.y�y�{::::::::::::::::..:!.iii ::::::::::i:'•i'::.}:!.:!:!:iii:':;!nii:.i ............... Public Services At-risk Youth Program City of SLO Recreation Services for 46,450 low-income families Homeless Shelter EOC Operating funds for SLO 120,000 Operations Homeless Shelter Homeless Day Center City of SLO Operating funds for 40,000 Operations Homeless Day Center SUBTQTAl ( a9�...............................cnBG funds a,r te> 2a6,a3o' Public Facilities Homeless Shelter SLO Housing Repair and lmprove 20,000= Improvements Authority Homeless Shelter Historical Museum City of SLO Section 108 Loan interest 28,800 improvements payment Disabled Access City of SLO Curb access ramps for 290,772' Improvements public streets,curbs and public facilities Women's Shelter Storage Women's Shelter of Provide food storage for 16,955 Building SLO shelter facility 5 Council Agenda Report - CDBG Funding Page 4 Street Drainage City of SLO Replace undersized storm 130,000 Improvements drains ............ ......... ................... ...LlB InTAL(34°!a Of total funds available}................ ... ........... .... ............. . ............................. 486 521 .:. .......... .................................. Economic Revolving Loan Fund Economic Vitality Expand jobs for low/mod 150,000 Development Corp.of SLO Income groups ..................... 5l 1O f1L(11a Oft6t8i .1im'ds . 150,000 .. .... ..... Housing Affordable Housing City Of SLO Section 108 Loan 44,200 Program repayment Home Repair Program EOC Provide home repairs for 50,000 low-income seniors Margarita Area Site SLO Housing Acquire land for public 300,000 Acquisition Authority housing :.��................................................ . ............ . ...... ............. ..... ... Auds R) .................... 394,260................ .. . ................... Program CDBG Program City of SLO Administrative services 187,044 Administration Administration I .............................. .............................. 990MK" TOTAL FUNDS ALLOCATED $1,424,221 TOTAL FUNDS AVAILABLE,includes:-1997 CDBG Funds(estimate): $935,220, plus $1,424,221 -Carry forward funds from 1994, 1995,and 1996(see Table 2):$489,001 NOTES: 1. Due to the 15%Countywide cap on public services, $206,450 is the maximum CDBG expenditure on public services in the City of SLO during the 1997 Program Year. Thus, none of the three recommended public service activities can be increased without decreasing one of the other two. 2. 1/2of the funding requested for the Homeless Shelter Improvements is recommended to come from the County of SLO. 3. Public Works Department's original request was for $73,451 for handicapped access improvements. Staff recommends that funding for this activity be increased to $290,772 by reallocating unused 1996 CDBG Seismic Grant and Section 108 Loan repayment funds to increase the number of handicapped access ramps or other accessibility improvements at City facilities which can be installed in 1997-98. 1994, 1995 and 1996 Program Amendments. HUD rules allow jurisdictions to amend previous CDBG program allocations. Staff recommends several amendments to the 1994, 1995 and 1996 Program Years, to be approved at the same time the Council acts on the 1997 CDBG Program. These amendments are shown in Table 2. They are intended to do two A5- Council Agenda Report - CDBG Funding Page 5 things: to reimburse the General Fund for the City's expenses in administering the block grant program during prior years; and to reallocate unused seismic grant and Section 108 loan repayment funds. Council originally set an administrative cost target of 10 percent, below the 20 percent administrative funding cap set by HUD. Now that the City has had several years of experience with the CDBG program, a survey of estimated staff CDBG hours indicates that administrative costs are $204,600 annually, or about 22 percent of our 1997 CDBG allocation. While this exceeds the 10 percent target, it is significantly less than the City's 34.2 percent overall indirect cost rate established in the 1995-97 Cost Allocation Plan. The City's cost allocation methodology which set this recovery rate was reviewed by the City's auditors and approved by the Federal Government in 1995 in connection with transportation grant funding. The summary of administrative CDBG costs is shown in Exhibit C. In essence, the General Fund has subsidized the CDBG program's administrative costs. By increasing the allocation to 20 percent for 1994 through 1997, an additional $224,296 would be available to the General Fund and the City would have greater flexibility to meet other needs appropriate for General Fund support. For example, in April staff will recommend a new, administratively streamlined seismic grant program using General Funds. By reimbursing actual administrative costs and amending previous years' CDBG activities, this new program's cost could be entirely offset. The amendments reallocate unused seismic grant funds to meet HUD objectives for timely use of funds. In the three years that the City has offered the seismic grants, only two grants totaling $20,125 were made, possibly due to federal "strings" which increase seismic retrofit construction costs. The seismic grant funds should be reallocated to ensure that grant funds are used in a timely manner. TABLE 2: 19949 1995 and 1996 CDBG Pro gram Year Amendmentsxs ($) <; r.....< ».: ::: . ii;:.:>ii:>:::.><:.i. »::>::;:;:>:;:;.::>::::" �ttce::.>:>:>,:::::: :<::>"�a... .>>-.faia :;.<::;;:.1'� . i'.;i::<:.i.:<.:::.isiA.moun� ��es1..::.:: :...:::.i��l.::::::.:.::i:.i:;.i:::::.:: ::::....:; .:. :.::: ::. ::.:::i:.i:. `.... ..... .::::::::::,.......::::.::.:.............:,::::.:::::::::::' ::::.:.............:.................... . ..f .:::.:.:.IN 1994 PROGRAM YEAR Seismic Retrofit 120,000 20,125 99,875 99.875 Grard Program General Program 171,500 135,750 35,750 135,7501' Administration SUBTITAL i 61;125 1995 PROGRAM YEAR Seismic Retrofit 79,000 0 79,000 79,000 Grarrt Prograin r ��S Council Agenda Report - CDBG Funding Page 6 General Program 190,744 95,720 95,024 [95,0241' Administration .......................... EiBTOTAL ....... ..................... . .. ................... .................. 1996 PROGRAM YEAR Seismic Retrofit 100,000 0 100,000 100,000 Grans Program S Repayment 340,900 340,900 Section 108 Loan 340,900 0 ..................................... .......................... . . ......... 7 ............... .0............... ...... .............:...440 9. TOTAL BALANCE CARRIED FORWARD TO 1997 PROGRAM YEAR 489,001 'Reimbursed administrative funds deducted from unused CDBG funding. Special Urban Projects and HOME Funding. Staff proposes that Special Urban Projects funds in the amounts of $21,000 be allocated to upgrade electrical services at the AIDS Support Network Housing, as shown in Table 3. This facility serves critical low- income needs of residents throughout San Luis Obispo County, and County staff support this request. TABLE 3: Recommended Special Urban Project For The 1997 CDBG Program ........ ............ ........... "M ::%j:::::::. e AIDS Housing Electrical Service Upgrade AIDS Support Network 21-1000 The Urban County expects to receive HOME funds totaling $941,000 in 1997. Peoples' Self- Help Housing Corporation (PSHHC) requested $200,000 in either CDBG or HOME funds to purchase and operate low-income rental housing on Brizzolara Street. Staff recommends that the Council endorse PSHHC's request for the use of $200,000 in HOME funds in 1997, as shown in Table 4. County staff support this use of HOME funds. 'TABLE 4: Recommended HOME Project For The 1997 Pro ram Year 14=2: .......................... ......... .......... ....... ....::::.,,anal.; Acquisition and Rehabilitation of Affordable Rental Peoples' Self-Help Housing 200,000 Housing Corporation Council Agenda Report - CDBG Funding Page 7 FISCAL IMPACT CDBG funding will have an overall beneficial fiscal effect. To the extent that qualified, on- going City programs are funded through the CDBG program, more General Fund monies are available for other important capital projects and programs. Based on the City's Cost Allocation procedures and timekeeping, actual program administration costs have exceeded the 10 percent allocation previously set by Council. By setting a cap on General Administration funding below actual costs, the City is subsidizing costs to run the CDBG program, thereby reducing General Fund monies available for operating programs or capital improvement plan projects. It is true that by using less administrative funding than allowed the City makes more CDBG funds available for specific activities; however, these funds come with federal "strings" such as public service limits or prevailing wage requirements which often limit spending flexibility. TABLE 5. Recommended Funding Allocation by HUD Eligibility Category and Percent of Total CDBG Funds Available ncludes Reallocated 1994 and 1996 CDBG Funds .. MM ;�I[`��Y%�pS:iI.'T}I{�Y•VI�j``.? i.�.�`�� {(rPubhServices ;sk` • ' ..J,_�($�"vk':iv�:-0:.\.:M..�{{4. ::'h...n.:.(•}ii:J:4i...nl �if........ :.i; 206 450 14% 486 527 34% Development 150 000 11% Housin 394 200 28% Program Administration 187,044 13% Total 1 424 221 100% *Includes the 1997 CDBG allocation, plus$489,001 in carryover funds from 1994, 1995, and 1996 program years. These figures tend to downplay the City's actual financial commitment to housing, because they do not include the $1 million Section 108 loan for the development of affordable housing and homeless shelter funding is not counted under HUD's category of "housing." When the Section 108 loan, homeless shelter and day center funding, and shelter improvements are included, the City's support for housing and related services in 1997 exceeds $1.43 million. ALTERNATIVE 1. Revise candidate CDBG and HOME projects and funding levels. Council members may change the list of City projects to receive CDBG funding, and/or change the funding levels from those recommended; and to suggest other possible amendments to previous CDBG years. Council Agenda Report CDBG Funding Page 8 A_ ttachmentss Exhibit A Administrative Cost Survey =Exhibit BeLetter from Peoples' Self.Help Housing Corporation -Exhibit C Letter from Economic Vitality Corporation of San Luis Obispo NOTE; 1997 CDBG Project Applications are-available in Council Office.. M47DBG97a:rpt 5 City of San Luis Obispo Community Development Block Grant (CDBG) Support Costs Overview The attached worksheet summarizes the estimated amount of time City staff is spending in supporting the CDBG program. These costs range from design and inspection of CDBG capital improvement projects to preparing budgets, completing management reports, and complying with program requirements. As reflected in the worksheet, total support costs are estimated at $204,600. Of this amount, $53,000 is for budget preparation and review(26%); $94,700 is for program management (46 %); and $56,900 (28 %) is for capital project design and inspection. This summary does not include those employees whose staffing costs are being charged directly to program operations, such as recreation staff in the at-risk youth program. Cost Categories The worksheet organizes program support costs into the following three categories: • Budget development and quarterly review. Includes time preparing and monitoring program budgets, and quarterly budget review and reporting in accordance with CDBG regulations. • Program management. Time for reviewing program operations including oversight of pass-through entities who operate CDBG eligible programs for the City is included in this category. Also included is time for recordkeeping, accounting, and preparing payment requests for the County. • Project design and inspection. Public works and engineering hours on actual capital project design and inspection. Stating Costs To arrive at an estimated cost for total program support, the hourly billing rates approved by Council in February 1996 were applied to staff hours for each position. As outlined in the Revenue Management Manual (Section 520), the billing rates are calculated based on five key factors: • Annual salary • Employee benefits(retirement, workers' compensation, medicare, unemployment and group insurance) • Productive hours (annual hours less vacation, sick leave, holiday and break hours) s Citywide indirect costs and departmental and program administration costs(as set forth in the Cost Allocation Plan). Summary The 1995-97 Cost Allocation Plan has identified an overall indirect cost rate of 34.2°/x. The costs to administer the CDBG program, based on the attached worksheet, are approximately 22% of the annual allocation, significantly less than the City's overall indirect rate. HUD allows for reimbursement up to 20% of the annual allocation. 5� City of San Luis Obispo CDBG Estimated Support Costs : 1996-97 Budget Project Development/ Program Design/ Total Quarterly Review Management Inspection Hours Administration CAO 10 12 22 Assistant CAO 20 22 42 Assistant to the CAO 25 16 41 Finance Director of Finance 50 22 72 Revenue Manager 25 6 31 Accounting Manager 50 36 86 Accounting Supervisor 3 12 15 Accounting Assistant 5 12 17 Community Development Director of Comm.Dev. 40 34 74 Development Review Mgr. 20 32 52 Associate Planner 200 420 620 Admin Sec/Fiscal Officer 10 29 39 Long-Range Planning Mgr 100 210 310 Public Works Director of Public Works 40 17 20 77 Administrative Analyst 75 56 40 171 City Engineer 40 17 40 97 Engineering staff 10 12 850 872 Parks&Recreation Director of Parks&Rec. 52 68 120 Recreation Manager 48 110 158 Clerical staff 10 36 46 Recreation Coord. H 40 244 284 Recreation Coord. I 12 160 172 TOTAL HOURS 885 1583 950 3,418 TOTAL COSTS $53,000 $94,700 1 $56,900 1 $204,600 5-�D o� March 14, 1997 1 4R > 71991 Mr. Jeff Hook cF%L'UIS Community Development Department ,,, City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Dear Jeff: It has been a pleasure working with you on this year's CDBG/HOME Program. This letter is a follow up to the City Council meeting March 4' which discussed allocation of CDBG and HOME funds. City staff recommended the allocation of $200,000 HOME funds to PSIiHC. This funding would leverage an additional $225,000 in conventional and State financing, and enable PSHHC to acquire and renovate apartments located on Brizzolara Street, San Luis Obispo. The property consists of 4 two bedroom apartments, and 1 three bedroom house. Many area apartments tend to be one bedroom units, so we were excited to locate this property. The two and three bedroom mix allows us to serve families, which is a high priority in the City. PSHHC was fortunate to negotiate a competitive price of$350,000 ($70,000 per unit) for this property. A March survey of similar San Luis Obispo rental properties indicates six properties for sale in the City, with a price range from $75,000 per unit up to $142,500 per unit. PSHHC plans to make moderate renovations to the property. We have budgeted $50,000 for renovation. Although the property is in sound condition, it is our practice to re-invest in properties we acquire in order to improve their appearance in the neighborhood, cure deferred maintenance, and upgrade outdated systems such as electrical, heating and roofing. Our renovation plans at Brizzolara call for interior and exterior re-painting, re-roofing, electrical repairs, parking lot re-paving, and other items per the attached list. HOME financing represents less than 50% of total project financing. HOME funds will leverage $225,000 in both private conventional financing and State financing through the Department of Developmental Services. The State funds will enable us to serve disabled or handicapped individuals in several of the apartments. As you know there is a great need for housing for this clientele as well. A breakdown of the total financing committed is as follows: Peoples'Self-Help Housing Corporation Son Lis pleoObis Street San Luis Obispo,California 93401 TEL: (805)781.3088 FAX: (805) 5dd-1901 A United Way Agency Jeff Hook Letter City of San Luis Obispo March 14, 1997 pg. 2 134,000 Acquisition; 50,000 $ 200,000 47% HOME Renovation; 16,000 Project Implementation $ 105,000 25% Bank of Montecito Acquisition $ 120,000 28% State Loan Acquisition $ 425,000 100% ITOTAL `Acquisition includes related costs such as title and escrow; phase 1 environmental assessment; loan fees and points, etc. This acquisition and rehab activity provides permanent, affordable housing in a highly efficient, cost effective manner. Peoples' Self-Help Housing Corporation will own and manage the property, including compliance with all federal and state regulations, at no additional cost to the City. Long-term affordability is assured through a Regulatory Agreement entered into between PSHHC and the City. We look forward to completing this development in the City. Our experience thus far with both City staff and Council members has been very positive and professional. Please call me at 781-3088, extension 453, if I can be of further assistance. rely, ` Ca Sc err nth Director of Programs Peoples' Self-Help Housing Corporation S�a- BR!ZZOLARA REHABILITATION 1997 HOME Funds PROJECTED COSTS COST EXTERIOR IMPROVEMENTS $ 10,000 Remove and replace composition roof shingles $ 4,000 Base and Pave parking lot $ 1,200 Cyclone fence at rear of property $ 100 Secure handrail at rear of property $ 2,000 Sandblast and repaint stucco $ 1,500 Repaint all wood trim Replace all exterior doors with insulated steel doors, new weatherstrip and entry $ 2,100 handles/deadbolts (includes laundry) $ 700 Replace garage door $ 200 Repair exterior crawl space doors $ 350 Replace all window screens $ 22,150 Sub-Total for exterior INTERIOR IMPROVEMENTS $ 30 Complete water heater venting @laundry room Add house electrical panel to separate end unit from electrical box used by all $ 800 tenants $ 300 Repair laundry room walls and repaint $ 475 New vinyl in laundry room $ 6,500 New appliances- stove, refrigerator, hoods (all units) $ 1,100 New plumbing faucets and valves (all units) $ 3,000 Repaint all interiors $ 9,045 Replace all floor coverings $ 2,000 Install GFI breakers (all kitchens and baths) $ 500 Clean and service all furnaces $ 2,000 Install smoke detectors (all hallways and bedrooms) $ 400 Install (2) exterior fire extinguishers Tile counter top repairs and repairs in $ 700 bathroom after valve replacement $ 1,000 Framing repairs and shoring in attic due to sagging rafters $ 27,850 Sub-Total for Interiors $ 50,000 TOTAL 3/14/97 MEMORANDUM TO: Honorable Mayor and City Council FROM: Gregg Goodwin DATE: March 17, 1997 RE: CDBG Funds CC: Susan Cotler, Chair, EVC Board of Directors This correspondence is for the express purpose of addressing some of the issues that arose at the Community Development Block Grant public workshop held with the San Luis Obispo City Council on Tuesday evening, March 4, 1997. In order to better facilitate communication, I have derided this correspondence into the following parts: Targeting of Low Income Individuals for Job Creation The Federal guidelines require that 51% of all jobs created as a result of CDBG lending activities go to low/moderate income individuals who reside within the political jurisdiction of the respective unit of local government. However, the County of San Luis Obispo requires the EVC to increase low/moderate job creation to 100%of all jobs created. Therefore, the Federal threshold is increased by 49%. In addition, the Economic Vitality Corporation has a contract for service with the Private Industry Council,whereas the Private Industry Council will certify the income and residency for all low/moderate income individuals who are hired as a result of the program. It is recommended that program guidelines are uniform throughout the County so as not to confuse potential borrowers with differing guidelines per political jurisdiction. Therefore, its strongly recommended that the City of San Luis Obispo follow the guidelines set forth by the County requiring that one job be created for every $35,000 increment loan and all jobs go to a low/moderate income resident. (See letter) Please be aware that as a result of the utilization of the Private Industry Council that a significant number of the positions that will be made available will go to very law income individuals who qualify under the Federal Department of Labor guidelines as well as the Federal Housing and Urban Development guidelines. All of the recipient's for the Department of Labor, Private Industry Council Program are the very Io+v income individuals in San Luis Obispo County, of which a large percentage are current AFDC welfare recipient's. Loan Guarantee Ceiling Limits The RLF set a maximum loan cap of$150,000. This complies with Federal guidelines which mandate that the CDBG Revolving Loan Fund Program loan limit not exceed $150,000. It is strongly recommended,again,that we stay with the$150,000 cap guidelines so that they are uniform throughout the County. By setting mcDdmum loan levels too low, the City would restrict its ability to loan money out at the levels needed by the business community. It is not anticipated that one single loan of the full$150,000 amount will be made. However, if the instance does arise, (for example a larger�manufacturer) the maximum March 5, 1997 number of jobs would be created based on the project total, not just the loan amount Therefore, it is in the best interest of the City to allow this type of ban flexibility. It will also provide continuity with the other political jurisdictions. Another issue brought forward was the use of funds for real estate purchase. This is a very important element of lending allowance as entrepreneurs need to finance the purchase of businesses and thereby be able to purchase owner/occupied manufacturing facilities and retaii/office facilities. Under no circumstances would real estate purchase involve residential property or"investment"property. It must be related to a direct business delivery need. Most loans are short term, typically amortized at 5-7 year terms with shorter time frames to repay the loan. Loan Fund Requirements Over the Next Three Years As stated in the public hearing, the Revolving Loan Fund program will not be self-sustaining. It is highly recommended that the City of San Luis Obispo create no less than a half million dollar Revolving Loan Fund for the City to utilize on an ongoing basis. In order to do this, it was originally requested that the Qty consider an allocation of$200,000 per year, both this year and next with an additional $100,000 in Fiscal year 1999. With the allocation of$150,000 this year and$150,000 next year, the City will be more than half way towards the goal of attaining a half million dollar fund. The EVC does not plan to loan funds directly, but will guarantee loans made by banks. The loan guarantees will allow the banking community to do start up loans and loans to individuals with less credit history/collateral. The EVC will encumber any guaranteed loan amounts and the funds will remain in the bank in certificates of deposits(CD's)drawing interest. The Revolving Loan Fund has administrative costs that are estimated to be in the 10% annual range. Administrative costs include loan analysis, loan monitoring and following up of low income job creation and use of funds. EVC staff costs are an effective use of funds as the organization has office equipment, loan analysis software and staff in place. Utilization of the EVC meets the Qty goals of creating effective "Community Partnerships"with CDIG funds. Earnings generated by the CD's will be in the 5%annual range, therefore, necessitating a differential of 5%. If the City wishes to maintain a $150,000 fund, for example, in its red fiscal year, it will be required to increase its allocation from the previous year by approximately 2%or$3,000 hence the request for an allocation in fiscal 1998 approximately of$153,000. The$3,000 is making up for the estimated cost of the loan fund toss for the prior year. In essence, the City's cost for managing the$150,000 fund per year is$3,000 or 2%. PLEASE SEE EXAMPLE ON FOLLOWING PAGE EXAMPLE: S-� March 5, 1997 150,000 RLF Based on a$150,000 allocation each Year City Must Add -15.000 Administrative Costs @10% Appro)amately$3,000 To NeM Years Allocation To Keep 135,000 Total RLF Remaining Fund Balance @ Previous Years Level. +12.150 3%(Annual Interest Spread Over 3 Years) 147,150 Total Amount Repaid plus Interest Over 3 CDBG 1997: 150,000 Years CDBG 1998: 153,000 CDBG 1999: 153,000 CDBG 2000: 51.000 507,000 RLF" "Annual Maintenance Is An Estimated$3,000 Per Year Thereafter. S�� ' COUNCI P.2 y ;.�.. ...v MAR 13 97 09�SSAM PRIVATE ItVDU5TR1' , P March 12, 1997 Mr. Gregg Goodwin President & CEO Economic Vitality Corporation of San Luis Obispo County, Inc. 412 Higuera Street, Suite "B" San Luis Obispo, California 93401 Dear Gregg: This letter is provided for the benefit of your organization and ours, to verify the fact that the following activities are in place for our mutual benefit: 1) There is a formal agreement in place, between the EVC and the PIC, that provides for the PIC to provide certification and referral services on behalf of eligible, local, low income individuals for placement into jobs created by the EVC and eligible local businesses. This arrangement allows the EVC to provide an economic incentive to businesses and it allows the PIC to secure full-time employment for their income-eligible clientele, in cooperation with the EVC. 2) The PIC client base includes youth (aged 14-21) and adults (aged 22 and older) who are untrained, unskilled, unemployed, underemployed, laid off, or otherwise economically disadvantaged and unable to obtain (or retain) local employment. During the 1995-1996 fiscal year, the PIC trained and placed 225 local adults into local, full-time paid employment positions. Of that number, 30% were recipients of public assistance. If you should need further information of this nature, please do not hesitate to contact our office. Thank you. Sincerely, Lee Ferrero President & Chief Executive Officer c: Meg Baker Michelle Robles Carroll Black 3568 Sout6lfiguee Shat ■ 5ui■100 ■ San I�d�OhisFe ■ raGt■ae ■ 13401 ■ 0051781-2280 s Fu(0)5414117 57-177 Mtr-TING AGENDA DATE _ITEM #.= San Luis Obispo Chamber of Commerce RECEIVED '+1 1039 Chorro Street • San Luis Obispo, California 93401.3278 FEAR (805) 781-2777 • FAX (805) 543-1255 e-mail: slo-chamber@slonet.org MYCCi191UJ. March 26, 1997 David E. Garth, President/CEO jCOUNCIL �D UIR 6r Mayor and Members of the Ci Council ICAO 0 FIN DIR Y City p�ACAO ❑ FIRE CHIEF City of San Luis Obispo u(ATroRNEY ❑ PW DIR 990 Palm Street MrCLERKIORIG ❑ POUCE CHF San Luis Obispo, CA 93401 ❑ MGMT TEAM ❑ REC DIR ❑ FILE ❑ UTIL DIR ❑ PERS DIR Re: CDBG Fund Allocations a Dear Mayor Settle and Council Members: As you will recall, when San Luis Obispo began the block grant program in 1994; one of its top priorities was the future funding of the seismic retrofitting of unreinforced masonry (URM)buildings. This was because of its extreme importance to both the public and economic safety of San Luis Obispo's historic downtown district. For the past five years, the San Luis Obispo Chamber of Commerce's Seismic Task Force and City staff have worked closely together to develop a reasonable approach to the State of California's mandatory seismic retrofit program. The end result of this collaborative effort is the URM Building Mitigation Program; the proposed ordinance for which will be before you at your April 15th Council meeting. The Program relies upon various incentives to encourage property owners to complete the required seismic retrofit of their URM buildings. One of the most crucial incentives to the URM Building Mitigation Program is its grant funds in the amount of$250,000.00. These grant funds will be made available on a first-come, first-served basis as a means to partially offset property owner's seismic retrofit costs. Property owners will be limited to 25 percent of the cost, up to $5,000.00, of a Level A strengthening or 25 percent of the cost, up to $25,000.00, for a Level B strengthening of their URM buildings. Presently, there are 113 URM buildings in San Luis Obispo,with more than 50 percent of them located in the historic downtown district. These grant funds offer those property owners, to whom TEN YEARS demolition and replacement of their historic URM structures is more attractive, the incentive to retrofit instead. ACCREDITED a. ...� no n..es As you are aware, the source of the URM Building Mitigation Program grant funds is indirectly CDBG funds. For the past three (3) years San Luis Obispo has offered seismic grant funds directly from CDBG allocations. However, only two grants, totaling$20,125.00 have been made. Property owners have shied away from the present seismic grant program because of the "strings" attached to the funds under the Davis-Bacon Act. San Luis Obispo City staff has come up with a means of maximizing the flexibility of the CDBG program and at the same time removing some of the strings attached to the present seismic grant funds. Staff has proposed that you amend the 1994, 1995 and 1996 CDBG program years and for the 1997 CDBG program allocate twenty percent(20%) to the administrative costs of the CDBG program. Thereby allowing General Funds to be used for the new, streamlined seismic grant program. Your approval of staff's recommendations regarding CDBG funds will provide a true incentive for URM property owners to seismically retrofit their buildings. This in turn will improve the public and economic safety in San Luis Obispo's historic downtown district. We look forward to your reasoned decision on April 1st. Very Truly Yours, � 4 g. _toi4L Robert L. Griffin VrCarroll Chairman of the Board Chairman of the Seismic Task Force San Luis Obispo Chamber of Commerce sAgovem%wp\seismic%cdbg.ltr MtETING AGENDA I NGIL YODD DAR' DATE e-117 ITEM # dFIN DIR O ❑ FIRECHIEFRNEY ❑ PwDIR FUEM Federation, Inc. WORIG ❑ POUCE CHF P.O. Box 14629 TTEAM ❑ REC DIR 9D FIA ❑ Un DIR San Luis Obispo, CA 93406 ❑ PERS DIR March 27, 1997 Mayor Allen Settle RECEIVED City of San Luis Obispo 990 Palm Street NAR17J- San Luis Obispo, CA 93401 „^RcITM-counCn, SUBJECT: City of San Luis Obispo/San Luis Obispo County Community Development Block Grant (CDBG)Program Honorable Mayor Settle: On behalf of the members and board of directors of FUERZA Federation, I would like to thank you for taking the time to meet with me on March 24, 1997. I would like to follow up in writing to express our concerns about the proposed uses of San Luis Obispo County's Community Development Block Grant and HOME funds during the 1997 program cycle. As I stated in our meeting,the federal funds in the CDBG/HOME programs are intended to benefit lower-income persons by providing decent, safe, sanitary and affordable housing,by providing a suitable living environment; and,by expanding economic opportunities. We are concerned that the County's CDBG funds are not directly benefiting the county's low-income community. From 1994 to 1996,the Economic Vitality Corporation(EVC) has been allocated approximately $3502000.00. In 1997,the EVC again requested CDBG funds. The city and county staffs have recommended that the EVC again be funded this year in the amount of$550,000.00. To date,the EVC has not created any jobs as required by the federal regulations governing the CDBG program. We respectfully request that the 1997 allocation to the EVC be placed on hold until they demonstrate compliance with the intent of the CDBG program. The EVC should be creating jobs that the have the opportunity for upward mobility, instead of simply creating more minimum wage jobs. We are also concerned about projects that have questionable, indirect benefit to lower-income persons; specifically,we refer to capital improvements such as the installation of sidewalks, curbs and gutters in census tracts that are purportedly low-income. We feel that sidewalks do not improve low-income communities by providing a suitable living environment. Such projects are regular capital improvements that should be paid for out of the general fund. How does a low- income person benefit by having a sidewalk? Mayor Allen Settle March 27, 1997 Page 2 The federal regulations require a detailed citizen participation component. The purpose of the citizen participation plan is to solicit and consider public input when the county's Consolidated Plan is being prepared, amended or reported on; citizen input is especially sought from the targeted income groups. In the past three years, concerns have been raised consistently about decisions being made behind closed doors before the public has even had the chance to comment. It is discouraging that an agency such as the EVC is able to garner approximately 20% of the entire consortium's annual allocation without citizen input and without having created the jobs promised. If this is allowed to happen,the importance of the citizen participation component is significantly diluted. We thank you for listening to our concerns. We respectfully request that any reallocation of funds be directed to activities that genuinely provide direct benefits to the targeted populations, such as affordable housing. Sincerely, T6' Mejia ERATION, INC. mus Project Director MEETING. AGENDA DATE '1'97 ITEM # LCCA B'CDD DIR ~� f'J�FIN DIR Economic Vitality Corporation ❑ FIRE CHIEF of San Luis Obispo County ❑ Pw DIR ❑ POUCE CHF ❑ REC DIR E ❑ U nL DIR MEMORANDUM ❑ PERS DIR XAW -. TO: Honorable Mayor and City Council FROM: Susan Cotler, Chair, EVC Board of Directors i T I C� DATE: March 20, 1997 MAN 2 5 m, RE: CDBG Funds CC: Gregg Goodwin CITY CLERK ZSAN LUISA This correspondence is for the express purpose of addressing some of the issues that arose at the Community Development Block Grant public workshop held with the San Luis Obispo City Council on Tuesday evening, March 4, 1997. In order to better facilitate communication, I have divided this correspondence into the following parts: Targeting of Low Income Individuals for Job Creation The Federal guidelines require that 51% of all jobs created as a result of CDBG lending activities go to low/moderate income individuals who reside within the political jurisdiction of the respective unit of local government. However,the County of San Luis Obispo requires the EVC to increase low/moderate job creation to 100%of all jobs created. Therefore,the Federal threshold is increased by 49%. In addition, the Economic Vitality Corporation has a contract for service with the Private Industry Council, whereas the Private Industry Council will certify the income and residency for all low/moderate income individuals who are hired as a result of the program. It is recommended that program guidelines are uniform throughout the County so as not to confuse potential borrowers with differing guidelines per political jurisdiction. Therefore, it's strongly recommended that the City of San Luis Obispo follow the guidelines set forth by the County requiring that one job be created for every$35,000 increment loan and all jobs go to a low/moderate income resident. (See letter) Please be aware that as a result of the utilization of the Private Industry Council that a significant number of the positions that will be made available will go to vv( low income individuals who qualify under the Federal Department of tabor guidelines as well as the Federal Housing and Urban Development guidelines. All of the recipient's for the Department of Labor, Private Industry Council Program are the very low income individuals in San Luis Obispo County, of which a large percentage are current AFDC welfare recipient's. Loan Guarantee Ceiling Limits The RLF set a maximum loan cap of$150,000. This complies with Federal guidelines which mandate that the CDBG Revolving Loan Fund Program loan limit not exceed $150,000. It is strongly recommended, again, that we stay with the $150,000 cap guidelines so that they are uniform throughout the County. By setting maximum loan levels too low,the City would restrict its ability to loan money out at the levels needed by the business community. It is not anticipated that one single loan of the full $150,000 amount will be made. However, if the instance does arise, (for example a larger manufacturer) the P.O. Box 5257•San Luis Obispo•California 93403 • Phone: 805-782-915 6• Fax: 805-781-6193 maximum number of jobs would be created based on the project total, not just the loan amount. Therefore, it is in the best interest of the City to allow this type of loan flexibility. It will also provide continuity with the other political jurisdictions. Another issue brought forward was the use of funds for real estate purchase. This is a very important element of lending allowance as entrepreneurs need to finance the purchase of businesses and thereby be able to purchase owner/occupied manufacturing facilities and retail/office facilities. Under no circumstances would real estate purchase involve residential property or"investment" property. It must be related to a direct business delivery need. Most loans are short term,typically amortized at 5-7 year terns with shorter time frames to repay the loan. Loan Fund Requirements Over the Next Three Years As stated in the public hearing,the Revolving Loan Fund program will not be self-sustaining. It is highly recommended that the City of San Luis Obispo create no less than a half million dollar Revolving Loan Fund for the City to utilize on an on-going basis. In order to do this, it was originally requested that the City consider an allocation of$200,000 per year, both this year and next with an additional$100,000 in Fiscal year 1999. With the allocation of$150,000 this year and $150,000 next year, the City will be more than half way towards the goal of attaining a half million dollar fund. The EVC does not plan to loan funds directly, but will guarantee loans made by banks. The loan guarantees will allow the banking community to do start up loans and loans to inidividuals with less credit history/collateral. The EVC will encumber any guaranteed loan amounts and the funds will remain in the bank in certificates of deposits(CD's)drawing interest. The Revolving Loan Fund has administrative costs that are estimated to be in the 10% annual range. Administrative costs include loan analysis, loan monitoring and following up of low income job creation and use of funds. EVC staff costs are an effective use of funds as the organization has office equipment, loan analysis software and staff in place. Utilization of the EVC meets the City goals of creating effective"Community Partnerships"with CDBG funds. Earnings generated by the CD's will be in the 5% annual range, therefore, necessitating a differential of 5%. If the City wishes to maintain a $150,000 fund,for example, in it's next fiscal year, it will be required to increase its allocation from the previous year by approximately 2% or $3,000 hence the request for an allocation in fiscal 1998 approximately of$153,000. The$3,000 is making up for the estimated cost of the loan fund loss for the prior year. In essence,the City's cost for managing the$150,000 fund per year is$3,000 or 2%. PLEASE SEE EXAMPLE ON FOLLOWING PAGE EXAMPLE: 150,000 RLF Based on a $150,000 allocation each Year City Must - 15,000 Administrative Costs @10% Add Approximately $3,000 To Next Years Allocation To 135,000 Total RLF Remaining Keep Fund Balance @ Previous Years Level. +12,150 3%(Annual Interest Spread Over 3 Years) 147,150 Total Amount Repaid plus Interest Over 3 CDBG 1997: 150,000 Years CDBG 1998: 153,000 CDBG 1999: 153,000 CDBG 2000: 51,000 507,000 RLF" "Annual Maintenance Is An Estimated$3,000 Per Year Thereafter. MAR 24 '97 64:41PM PRIVATE INDUSTRY COUNCI ' '' P•1 1 S March 12, 1997 Mr. Gregg Goodwin President&CEO Economic Vitality Corporation of San Luis Obispo County, Inc. 412 Higuere Street, Suite`W San Luis Obispo, California 9W1 Dear Gregg: This letter is provided for the benefit of your organization and ours, to verify the fact that the following activities are in place for our mutual benefit 1) There is a formai agreement in place, between the EVC and the PIC, that provides for the PIC to provide certification and referral services on behalf of eligible, local, low income individuals for placement into jobs created by the EVC and eligible local businesses. This arrangement allows the EVC to provide an economic incentive to businesses and it allows the PIC to secure fun-time employment for their Income-eligible clientele, in cooperation with the EVC. 2) The PIC client base includes youth (aged 1421) and adults(aged 22 and older) who are untrained, unskilled, unemployed, underemployed, laid off, or otherwise economically disadvantaged and unable to obtain (or retain) local employment. During the 1995-1996 fiscal year, the PIC trained and placed 225 local adults into local, full-time paid employment positions. Of that number, 30%were recipients of public assistance. If you should need further information of this nature, please do not hesitate to contact our office. Thank you. Su�oerely, Lee Ferrero President& Chief Executive Officer c: Meg Baiter Michelle Rabies Carroll Black 4�II■��t4oeet s Srm 100 ■ 3■WsOh'sp a i�drn¢ ■ 94401 ■ ��7B1-7A0 ■ rm�54;11117 i�.JING AGENDA DATE _-;V/-97 ITEM #.,= SANTA LUCIA NATIONAL BANK March 27, 1997 ZCOUNCIi�L R CDDUIR ICAO eFlN DIR m'ACAO ❑ FIRE CHIEF ZATTORNEY ❑ PW DIR San Luis Obispo City Council O'CLERKIORIG ❑ POUCECHF City of San Luis Obispo ❑ MGMfTEAM ❑ REC DIR 990 Palm Street ❑ C 9W FILE ❑ UTILDIR San Luis Obispo, CA 93401 _ ❑ PERSDIR Dear Council Members: B I am writing in support of the allocation of Community Development Block Grant funds for the City of San Luis Obispo for the purpose of creating a Revolving Loan Fund. The number one need identified by residents during the Community Futures Design project was the need for economic development and jobs in the community. It's estimated that 80% of all jobs created will be created by small businesses and the number one need for those small businesses is access to expansion capital. The Economic Vitality Corporation (EVC) will provide this needed debt financing capability. It is in the long-term interest of your community and the eventual expansion of its tax base to support Revolving Loan Fund activities. Not only does this help businesses, it also creates jobs for low/moderate income people who live within the City's political boundaries. I strongly urge you to support this endeavor. The EVC and local banks are working together to assist viable local businesses, who might not normally qualify for loans, to get the financing they need. I am a member of the Economic Vitality Corporation Board of Directors. Sincerely, SANTA LIJIA NATIONAL BANK Stanley R. Cher "ObE, y ED President MARS a SRC:cf CITY COUNCIL ATASCADERO: (805)466-7087 ♦ FAX:(805)466-0402 ♦ P.0.BOX 6047 ♦ 7480 EL CAMINO REAL ♦ ATASCADERO,CA 93423 PASO ROBLES: (805)239-1140 ♦ FAX(805)239-5632 ♦ P.0.BOX 1947 ♦ 1240 SPRING STREET ♦ PASO ROBLES,CA 93447 ARROYO GRANDE: (805)473-1988 ♦ FAX(805)473-0613 ♦ P.0.BOX 1096 4 1230 GRAND AVENUE ♦ ARROYO GRANDE,CA 93421 WOMEN'S RUM IDQOGMM, INC. of Ban W8 obispo county MEETINGAGENDA Post Office Box 125 DATE ITEM #__ San Luis Obispo,California 93406 Tel: (805) 781-6401 Fax: (805) 781-6410 MARIANNE KENNEDY/Executive Director 28 March 1997 Mayor and City Council Members City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 RE: 1997 CDBG Funding for Women's Shelter Storage Building Dear Mayor and City Council Members, The Women's Shelter Program, Inc., asks your support in the revised request to our proposal to the City of San Luis Obispo's 1997 Community Development Block Grant (CDBG) allocation concerning our proposed storage building at the Shelter site. The amount we requested of 1997 CDBG funding was $16,955. We ask your support to amend the request to$23,852 to construct the insulated storage building(labor, materials,city permit and plan check fees)to the size needed (36'X 14'). This will allow us to build the storage facility to the size needed now rather than having to add on more space later. Attached to this letter is a copy of the 1996 Women's Shelter CDBG application which was our original proposal and reflects our true needs for the insulated storage building. On behalf of our Shelter clients and staff, I ask that you support our revised 1997 CDBG funding request for$23,852 at the April 1 st City Council Meeting. We thank you for your time and consideration. Sincerely, � 9,,,,/rCOUNCIL n" gr c0Ll UIiI I[7 CAO eFIN DIR eACAO ❑ FIRE CHIEF .I Tina Metzger k(ATTORNEY ❑ PW DIR Development Coordinator VCLERIQORIG ❑ POLICE CHF ❑ MGMTTEAM ❑ RED DIR ❑ C READ FILE ❑ UTIL DIR attachment: Jeff Hook, Associate Planner l7 PERS DIR attachment:Women's Shelter 1996 CDBG application —�-��- ! 647 RECEIVED MAR 5 1 1`111 CITY COUNCIL •AN ^- nn,4Pn. CA COUNTY OF SAN LUIS OBISPO COMMUNITY DEVELOPMENT BLOCS GRANT (CDBG) PROGRAM APPLICATION FOR FUNDING DURING 1996 PROGRAM YEAR (Attach additional sheets if necessary) NOTE: Please review the CDBG regulations before completing this proposal. A copy of a HUD-prepared CDBG eligiblity guidebook is available upon request from county staff. Also, please call county and/or city CDBG staff with any questions about how to complete the form or about the rating criteria and process. 1. Name and mailing address of applicant organization, with contact person and phone number: Women's Shelter Program, Inc. of San Luis Obispo County P.O. Box 125 San Luis Obispo, CA 93406 Contact Person: Tina Metzger 541-7653 2. Title/name of proposed project or activity: Women's Shelter Storage Building 3. Does the proposed project or activity meet one of the three national objectives of tl CDBG program? Please check one of the objectives below that applies to the proposal, and explain on the following page how the project or activity meets the that national objective. a• X Benefits low and moderate-income persons as defined by the U.S. Department of Housing and Urban Development (HUD). NOTE: To meet this national objective, the proposed activity must benefit a specific clientele or residents in a particular area of the county or participating city, at least 51 percent of whom are low and moderate-income persons. See attached current income limit schedule. b. Aids in the prevention or elimination of slums or blight. NOTE: To meet this national objective, the proposed activity must be provided within a designated slum or blighted area, and must be designed to address one or more conditions that contributed to the deterioration of the area. C. . Meets community development needs having a particular urgency where existing conditions pose a serious and immediate threat to the health or welfare r thee community, and no other funding sources are available. NOTE: To meet this national objective, the proposed activity must be provided to deal with major catastrophes or emergencies such as floods or earthquakes. 3a. The proposed project meets the national objective by imple- menting the construction of a necessary improvement (storage building) which will allow the Shelter to continue to be used for an activity, the benefits of which are limited to a specific group of people (battered spouses), at least 51% of whom are UM income persons. -1 a- 1996 CDBG Application pr anizatin B n: Women's Shelter Pr 4. Check any of the following eligible activity categories that apply to the propo. Project or activity; (Refer to CDBG regulations and Guide to Elietble CDBG Actiy^ti W Acquisition of real property Disposition of real property X Public facilities and improvements (may include acquisition, construction, reconstruction, rehabilitation or installation) Privately-owned utilities Clearance, demolition, removal.of buildings and improvements, and/or movement Of structures to other sites Interim assistance Relocation of individuals, families, businesses, non-profit organizations, and/or farms Removal of architectural barriers Housing rehabilitation New housing construction (under limited circumstances) Code enforcement Historic preservation Commercial or industrial rehabilitation Special economic development Special activities by subrecipients Public services Planning studies 1996 CDBG Application Organization: Women's Shelter Prot 5. Location of proposed project or activity: (Check one or more the following areas) City of Atascadero City of Grover Beach City of Paso Robles City of Pismo Beach x City of San Luis Obispo County-wide Unincorporated community of 6. What is the total amount of CDBG funds requested? $ 23,852.00 7. Proposed CDBG budget: (List proposed expenditures by item or cost category) Please see attached "Preliminary Construction Cost Estimate." 8. Identify source and amount of any non-CDBG funding committed to the project: Staff time for administrative, planning and supervisory duties associated with this project will be absorbed by funds raised through fundraising efforts or United Way funding for housing. The exact amount of those costs is not known at this time. 1996 CDBG Application Organization: Women's Shelter Prograrr 9. Describe, and if possible, document severity of community development need/s t- result in the a need for the proposed_ project or activity, including posse.._.: consequences of not funding the project now. . The severity of community development needs that require h proposed groj ar The existing old uninsulated metal storage sheds at the Women's Shelter site 1) are disintegrating, and leak rainwater, 2) are greatly inadequate in storage space, forcing the Shelter to turn away donations of food and other critical items, 3) are not pest and rodent proof, 4) cause massive food spoilage because of temperatures exceeding 1400 F in summer, 5) cause the Women's Shelter continually higher and unnecessary operating costs because of more frequent trips to the market to purchase food, and 6) the possibility of employee and client injuries because existing sheds lack proper and reasonable access for transporting food and other donations from a vehicle. The consequences of not fundingthe project now are: 1) the sheds will continue to disintegrate and leak to the point of uselessness, resulting in complete lack of storage space at the Shelter site, 2) continue to force the Women's Shelter to turn away bulk food and other critical items donated by local churches, businesses, individuals, the Food Bank, Harvest Bag, Kiwanis, etc., 3) rodents and pests will continue to eat and destroy food stored in the sheds, 4) food will continue to spoil and have very limited shelf- life because of high temperatures in summer, 5) precious funds will continue to be drained away to cover staff time, and 6) potential injuries from transporting by hand bulk food and other donated materials because of lack of vehicle or wheelbarrow access to storage sheds. 1996 CDBG Appik=,., Organization: Women's Shelter Program 10. Description of proposed project or activity, including schedule of milestones and description of how project will benefit the target population: Description of the proposed prrojert: The proposed project includes a 36' x 14storage building located at the Women's Shelter site (confidential location). The storage building will be slab on grade, fully insulated to maintain proper food storage temperature, with electrical power for three freezers and two refrigerators, and open shelves for the storage of dried and canned food and other items necessary for the operation of a ten- bed emergency safe house. The proposed project will be accessible from the Shelter driveway and will have both a (single) garage door and pedestrian door (see attached plan drawing) with ramps to both entryways. The proposed project will have not only storage space, with shelving along the interior walls, but will also have space to accommodate the storage of household and other large items, saved for clients in the center area of the storage building (see attached plan). Schedule of Milestones: The accomplishment of this project is estimated to involve the following main tasks and time frames: A. Environmental Review; and Formalize Contract Between County of San Luis Obispo and the Women's Shelter— 3 months B. Preparation of Design and Construction Documents — 1 month C. Process/Approval of Construction Documents — 1 month D. Contract Advertising, Bidding, and Award — 2 months E. Construction of Storage Building — 1 month F. Final Inspection Approval — 1 month (#10 continued) The Women's Shelter storage building will directly benefit the target population in a multitude of ways. The new storage building will be fully insulated, have electricity for freezers and refrigerators, and have the proper amount of storage space and shelving required for the operation of a ten-bed emergency safe house that contains no interior storage areas. Also, the new'storage building will be rodent/pest-proof and will have the required safe and proper access for transporting food and other critical items from a vehicle to the storage building. What this means in terms of direct benefit to the target population is that there will be savings in operation and food costs because of the ability to safely accommodate and store larger donations of bulk and perishable food without fear of spoilage. Also, there are three freezers in use that are currently taking up space in Shelter bedrooms that need to be moved into the proposed storage building. Shelter funding and staff time will not be wasted on frequent grocery shopping trips. Because the Shelter will be able to take advantage of very low-cost USDA surplus food, Shelter staff will be able to instruct (meal planning) the target population on the preparation of that USDA food for their own families when they leave the Shelter to set up their own households. With the ability to safely store dried, frozen, and perishable food, the Shelter will no longer be forced to turn away desperately needed donations of food from various local sources. This, in and of itself, will result in target population benefits of funds saved, to be used for other important needs of Shelter clients and their children. Very often, victims of domestic violence and their children arrive at the Shelter with only the clothes on their backs. The proposed storage building is designed to also accommodate the storage of"essential materials" such as bedding, clothing, toiletries, etc. for the use of the Shelter clients. Some situations are so desperate for our clients that when they are psychologically ready to leave the Shelter and get on with their lives, they have absolutely nothing with which to set up a household. This, in particular, can be overwhelming to a mother. The proposed storage building is designed to accommodate the storage of furniture and large and small appliances that Shelter staff currently must turn away when donated by caring individuals in the community for the purpose of helping clients and their children set up house. -5a- 1996 CDBG Application Orgmizauon: Women's Shelter Progr 11. Persons the proposed activity is targeted to serve: (If the project serves persons in an geographic area, instead of on a limited-clientele basis please attach a map•of the area of benefit and list the census block groups) a. Total number of families (or persons) to benefit: 150 persons or 70 households per year b. How many of them are low-income: 150 persons or 70 households per ye C. How many of them are very low-income? 128 persons or 60 households p 12. Description of group/s proposed to implement project or activity: (Single or multiple groups, with roles; public, non-profit or for-profit; experience; etc.., The groups proposed to implement the proposed project are: A. the Women's Shelter Program, Inc. of San Luis Obispo County (non- profit), and B. the authorized contractor (for-profit), who will be chosen after the contract advertising and bidding process. I certify that the information in this application is true and accurate to the best of my ability am knowledge. �J/l/il�lir� � //3��9•� Signature Date mr;anne Kennedy acecutive Director Printed or typed name Title -6- Attachment 01 , �4 1 r u GcHEZAL SUILDING CONTRACTOR 580 LINW)OD LANE, SANTA MARIA, CA 73455-2713 sHOP (805) 722-6312" OFFICE & FAY (R05) 937-8419 LIC. X419539 JANUARY 24, 1996 yirOi4EN'3 SiiEL T ER PROGRAM, iNC OF SPIN Luis 051 SPO COLIN i r F. u. Box i 25 150A-fi Lit i 5 OB i JPO. CA 93406 RE. San Luis Obisoo Women's Shelter Site Storage Building ?rel irninarr Project Construction Estimate Dated January 24, 1996 to cor:;truct a 14 ft x 36 ft storage building $23,8.r2.00 ^; ct lnc:odes: Pians, F:-zc::ecl; fazes, permits 2? Co^.Crete slab with 21 in. x 12 in. footings; reinforcing steel to code 3) Eramira !Umber; pre-manufactured trusses dt . Rough and finish Carpenter labor S) Electrical: Run underground electric tine from the house to the storage buiiding: suboanei with flour circuits for lighting, freezers, & refrigerators; five r lourescent fixtures & three outside security lights. 6%1 Roofing to be 25 year shingles which match existing house shingles; five attic darmer vents. s? inswsiatian: Walls to be R-13 baits; ceiling R-30 batts (to maintain building s*_ a mn4prate temperature). Hi Ir�Tarl[)F ►ivS!IS 112 inch drywall: ceiling 5/8 inch drywall. Walls & ceiling to be taxed a rexturea. No paintina) 91 Exterior walls to be 5/8 in. Dura-temp exterior plywood siding with groove 12 incnes on center. Exterior wails and overhang to be painted (2 coats). 14) Doors: One 3 ft. x 1 314 in. metal clad door; entry lock and deadboit. . i a i u c. :c 7 i'i. metal sectional garage door with opener and keypad. 4%,,6* foundation vents to be located adjacent to freezers & i g-ratars. ?? Si e!ving: 72 linea! feet (2 ft. wide and six shelves high) constructed of 3/• indestri.2!-grade particle board supported on 2x4 ledgers and uprights. IA+! Rain gutters! 78 lineal feet with four downspouts. I5� Site worx to include: concrete ramp into building; 4 foot wide sidewalk frc ramp around to side door; 4 foot wide sidewalk from side door to existing sidewalk (to allow the use of a hand truck for transporting supplies) 18; PartabIte toilet rental 7; C:osn-sp and remov construciian debris Project includes NO plumbing nor windows. COST B--ZAimov;lq ITal CWCKLTi. .5LhB CONCRE.TE PUMP LZ- _LONQ TE r[ITTTNn LCA.ii:Ii�G II 7 ChAP&ITRY Uia——————— ttC;UL- A& LLECT.edcA.L A00-9 00 HEATING &- SHELT rETAL ELECTRICAL FIXTURES rIASONHY FIREPLACES ROOFING INSULATION k. 400 STUCCO DRY WALL /zm FINISH LUMBER DOORS s-Z x /* CABINETS Mp Z) Jog FINISH CARPENTER LABOR OD CEWMIC TILE FOMICA COUNTERS MARBLE TOPS PAINTING G44*AE -D,6,&* d 640 HARDWARE - FINISH ORNARX-MAL IRON FLOOd-COV"RINGS SH%jErt - TUB ENCT s XIit'Or?5 & MEDICINE% CAR APPLIANCES A 1411t) zzn CLE Al%'-UP CONCnETE DJUVEWAYS & SIDEWALK —TOETUTAL & CONMeACToils Fry-s P' `achment #2 Q�Yse e a• c1 i l ' � I I Z• • i � 1i a I V � I i � f Oat-