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A. ACCEPTANCE OF THE 2013/2014 CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT (CAPER) OF THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG), HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME), AND EMERGENCY SOLUTIONS GRANT (ESG) AND REPROGRAMMING OF AVAILABLE FUNDS
B. RESOLUTION NO. 2015-018 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FISCAL YEAR 2014/2015 AMENDMENT TO THE HUD ANNUAL ACTION PLAN TO REPROGRAM $450,000 OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS TO THREE ELIGIBLE PROJECTS; AND APPROPRIATING COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS IN THE AMOUNT OF $450,000 TO THREE ELIGIBLE PROJECTS; AND AUTHORIZING THE CITY OF CHULA VISTA DEVELOPMENT SERVICES DEPARTMENT TO ENTER INTO A MEMORANDUM OF UNDERSTANDING WITH THE FIRE DEPARTMENT FOR THE IMPLEMENTATION OF TWO CDBG FUNDED ACTIVITIES (4/5 VOTE REQUIRED)
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RECOMMENDED ACTION
Recommended Action
Council accept the report and adopt the resolution.
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SUMMARY
The City of Chula Vista is required to prepare a Consolidated Annual Performance and Evaluation Report (CAPER) for the City's U.S. Department of Housing and Urban Development (HUD) grant programs, which include Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME) and Emergency Solutions Grant (ESG). This report provides a summary of activities undertaken this past fiscal year (July 1, 2013 through June 30, 2014) to meet the goals of the 2010-2015 Consolidated Plan. In reviewing past performance, unexpended CDBG funds are available for reallocation to a project/program ready for implementation upon amendment of the 2014/2015 Action Plan.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activities for compliance with the California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA). The proposed activities are not considered "Projects" as defined under Section 15378(b)(5) of the State CEQA Guidelines because the proposals consist of a reporting action, is an administrative function, and is not site specific project(s) and will not result in a direct or indirect physical change in the environment. Therefore, pursuant to Section 15060 (c)(3) of the State CEQA Guidelines, these activities are not subject to CEQA. Under NEPA, the Fire Station equipment activity qualifies for a Categorical Exclusion pursuant to Title 24, Part 58.34(a)(2)&(3) of the Code of Federal Regulations and pursuant to the U.S. Department of Housing & Urban Development Environmental Guidelines. Further review and environmental determination as appropriate will be required for each Community Housing Improvement project as it is identified. Thus, no further NEPA environmental review is necessary at this time.
BOARD/COMMISSION RECOMMENDATION
Not Applicable.
DISCUSSION
The City of Chula Vista receives, on an annual basis, Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME) Program, and Emergency Solutions Grant (ESG) Program funds from the U.S. Department of Housing and Urban Development (HUD) to contribute towards a number of diverse programs and services to enhance the quality of life for Chula Vista's low to moderate income residents. On an annual basis, the City prepares a Consolidated Annual Performance and Evaluation Report (CAPER) describing the use of HUD funds on housing and community development activities that primarily benefit low and moderate income persons and households. The CAPER also provides a progress report towards meeting the goals identified in the 2010-2015 Consolidated Plan, a five year strategic plan to address the prioritized housing and community development needs of the City.
In addition, at the end of the reporting period, staff reconciles balances and evaluates projects for the previous and current program year to ensure they are on track to meeting HUD's strict expenditure requirements. If there are funds that remain unencumbered or unexpended, staff may recommend re-allocation of the funds to a project or program that is ready for implementation. Staff is proposing re-allocating $450,000 in CDBG funds and has prepared an amendment to the 2014/2015 Annual Action Plan.
Performance Evaluation (CAPER):
HUD requires that the City report its performance with regard to CDBG, HOME, and ESG grants using the HUD Consolidated Annual Performance and Evaluation Report (CAPER). The CAPER was provided, as required, to HUD within 45 days after the conclusion of the 2013/2014 fiscal year. The CAPER includes specific financial and performance information for the CDBG, HOME, and ESG grants. The CAPER also describes how the City carried out its housing and community development strategies, projects, and activities during the fiscal year. A copy of the CAPER is included as Attachment No. 1.
A review of the CAPER by HUD shows that the City:
· Expended fund grants in a timely manner;
· Funded only HUD eligible projects;
· Provided detailed accomplishment data for all grant-funded projects; and,
· Maintained its administration and public service expenditures within the mandated spending limits.
2014-2015 Annual Action Plan Amendment
City staff is recommending an amendment to the 2014/2015 Annual Action Plan to reallocate (see Table I below) $450,000 of CDBG funding to ready to implement projects as described below and as Attachment 2: Project Descriptions and Applications.
Table I Reallocation
Community Housing Improvement Program (CHIP)
CHIP provides deferred and low-interest loan funds to income qualified households for home improvements, with a priority for those owner occupied homes in older sections of western Chula Vista. The total maximum loan amount is $24,999 for a single family residence and $8,500 for mobilehomes. Applicants must meet the eligibility requirements set forth in the CHIP guidelines.
At this point in time, all available CHIP funds have been allocated. While CHIP is a revolving loan program, whereby funds could be made available for new applicants as repayments on previous loans are made, most loans issued are deferred or forgiven. Therefore, loan repayments do not provide an adequate revenue stream for the Program. In order to maintain an active home repair and improvement program, additional funding of $231,500 is recommended.
In recent years, staff has seen an increase in CHIP applications for health and safety related repairs for single family homes. In addition, as a result of Title 25 mobile home inspections and other Code Enforcement efforts, the City has received an increase in CHIP deferred loan applications within the last six months. Currently, ten new applications are under review and awaiting funding for the program.
This activity was listed as a priority in the 2010-2015 Consolidated Plan. The goal was to assist 50 households. From July 1, 2010-June 30, 2014, only 26 households have been assisted with the available funding. Additional funding will assist the City to come closer to achieving the goal in this last year of the Consolidated Plan.
Fire Equipment Fire Station 1&5
Fire Station 1 and Fire Station 5 deliver fire and emergency medical services to Western Chula Vista residents each day. The service area stretches from the Northern Chula Vista border with National City to the City's southern border. From east to west, the service area stretches from the Bayfront to the I-805 (Attachment 3: Fire Station 1 & 5 Service Area). A review of the service area determined that Fire Station 1 and 5 primarily service low and moderate income census tracts where at least 51% of the residents are low and moderate income. These fire stations serve as the backbone of the Chula Vista Fire Department and continue to be the two busiest Fire Stations in the City.
The Fire Department is requesting $68,500 of CDBG funds to purchase 28 sets of PPE (Turnouts) for firefighters permanently assigned to Fire Station 1 and 5 and regularly respond to calls for service in the area. The Turnouts are in need of immediate replacement to meet with compliance standards. Additionally, the Fire Department requested $150,000 to outfit a new Fire Engine with the necessary equipment and supplies. The Department purchased a new Pierce Fire Engine to replace a Fire Engine that had reached its serviceable life per the NFPA as a frontline Fire Engine. The Fire Engine will need to be outfitted with its equipment and supplies before it can be placed into service. This engine will be placed in Fire Station #1.
In general, equipment and other non-real property are not eligible for CDBG funding. However, HUD's regulations make an exemption for fire equipment. Fire Equipment is listed as a priority in the 2010-2015 Consolidated Plan and has not received any funding from July 1, 2010-June 30, 2014. Upon HUD's approval of the amendment of the Action Plan, the Development Services Department will enter into a Memorandum of Understanding (Attachment 4) with the Fire Department for the CDBG funding.
DECISION-MAKER CONFLICT
The Community Housing Improvement Program is generally not site specific and does not trigger the 500-foot rule found in California Code of Regulations section 18704.2(a)(1). The proposed public facility project for Fire Equipment at Fire Station 1 located at 447 F Street and Fire Station 5 located at 391 Oxford is subject to review. As such, Staff reviewed the property holdings within 500 feet of the boundaries of 447 F Street and 391 Oxford considered in this action. In addition, staff reviewed the service areas for Fire Station 1 and 5. Coucilmembers Bensoussan and Salas own property within the service area.
Staff has reviewed the decision contemplated by this action and has determined that is solely concerns the replacement of equipment, as such, the financial effect, if any, of the decision on real property is not reasonable foreseeable, within the meaning of California Code of Regulations Title 2, section18706. Consequently, this item does not present a conflict under the Political Reform Act (Cal. Gov't Code §87100, et seq.) Staff is not independently aware, and has not been informed by any City Councilmember, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. With 62 percent of Chula Vista homes aged 30 years or older, housing rehabilitation programs are necessary to maintain the health and safety of the home's living environment and the neighborhood. The reallocation of funding to CHIP addresses the City's Connected Community goals as it provides necessary resources to improve housing to meet residents' needs and priorities. The reallocation of funding to equip and outfit the Fire Engine housed at Fire Station 1 meets the City's Strong and Secure Neighborhood goal by providing the necessary equipment for public safety providers to respond to emergency calls for service with adequately equipped personnel to carry out their duties.
CURRENT YEAR FISCAL IMPACT
This action releases $450,000 of grant funds from the SBCS Landis Studios project and appropriates $450,000 of 2014/2015 Federal CDBG grant funds to the programs listed below. There is no fiscal impact to the City's General Fund as project and staff costs are covered by the grants.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact as a result of the appropriation to the CHIP program - this program is self-sustaining.
The Fire equipment and turnout gear will need to be replaced in the future as part of the normal replacement process. At that time, the Fire Department will request funding during the budget process for the replacement of the equipment.
ATTACHMENTS
Attachment 1: CAPER Narrative
Attachment 2: Project Descriptions and Applications
Attachment 3: Fire Station 1 & 5 Service Area Map
Attachment 4: MOU
Staff Contact: Jose Dorado, Development Services Project Coordinator