AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: ALISON DOBAY
PARKS, RECREATION, AND LIBRARY SERVICES MANAGER
SUBJECT:
title
PUBLIC HEARING - RESOLUTION APPROVING THE PROPOSED USE OF FISCAL YEAR (FY) 2025-26 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS
summary
Summary:
The City Council will conduct a public hearing and consider proposed uses for the City’s FY 2025-26 Community Development Block Grant (CDBG) funding allocation. The Los Angeles County Development Authority (LACDA) estimates the City will receive approximately $70,146 to use on CDBG projects and programs.
Staff is proposing to allocate the funding for the continuation of the City’s Food Distribution programs and the construction of Americans with Disabilities Act (ADA) ramps and sidewalk improvements. If approved, the City Council is required to adopt a resolution affirming the use of CDBG funds for the projects.
Form of Notice: Notice was published in the Signal Tribune newspaper per Government Code Section 65091(a)(4) and posted in accordance with the Signal Hill Municipal Code Section 1.08.010 on Friday, November 22, 2024.
Strategic Plan Goal(s):
Goal No. 4 Infrastructure: Maintain and improve the City’s physical infrastructure, water system, and recreational spaces.
Goal No. 5 High-Functioning Government: Strengthen internal communication, recruitment, retention, systems, and processes to increase the effectiveness and efficiency of City services.
recommendation
Recommendations:
1. Adopt the following resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, APPROVING THE CITY'S PROPOSED COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAMS FOR FISCAL YEAR 2025-26
2. Approve the CDBG estimated allocation for FY 2025-26 in the amount of $70,146 and the proposed expenditures of these allocations.
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Fiscal Impact:
The Los Angeles County Development Authority (LACDA) estimates the available funding for CDBG projects and programs for FY 2025-26 is $70,146. Subject to City Council approval, the CDBG estimated allocation for the Public Service and Non-Public Service Projects would reflect the FY 2025-26 annual budget (Parks, Recreation, and Library Services Community Development Block Grant, Fund 201). Staff proposes the FY 2025-26 CDBG funding allocation as follows:
Background:
The California Department of Housing and Urban Development (HUD) regulations allow CDBG Funding for a variety of activities that meet documented National Objectives. The primary objective of the Federal CDBG Program is the development of viable urban communities, including providing decent housing, promoting a suitable living environment, and expanding economic opportunity, principally for persons of low-to moderate-incomes. Local CDBG programs must provide maximum priority to benefit low-to moderate-income households, special needs groups such as senior citizens, or the differently abled, preventing or eliminating slum or blight conditions, and making public facilities accessible for people with disabilities in compliance with ADA. Each year, the City Council conducts a public hearing to allocate the funds received for the following fiscal year. Below are some highlights of prior fiscal year CDBG allocations:
• In FY 2020-21, LACDA allowed the City to use all CDBG funding toward public service projects. On July 14, 2020, in response to community needs related to the COVID-19 pandemic, the City Council re-allocated the City’s CDBG funding to the supplemental Coronavirus Aid, Relief, and Economic (CARE) Act Funds (CDBG-CV). The City used the funding to provide weekly supplemental groceries to a total of 44 low-income senior households and 38 low-income families.
• In FY 2021-22, the City provided supplemental groceries to low-income seniors every other week. The City also completed the Signal Hill Park Open Space project, which involved demolishing two single family homes on East 21st Street to expand the green space at Signal Hill Park.
• In FY 2022-23, the City provided supplemental groceries to 35 low-income seniors and completed the ADA Rubberized Playground Surfacing at Discovery Well Park.
• In FY 2023-24, the City continued to provide supplemental groceries to 31 low- income seniors. The proposed ADA Ramp Improvements Project cost estimate came in higher than expected; after reviewing options with the CDBG Consultant, the project was extended to June 30, 2025. The extension would allow the City to utilize the FY 2024-25 allocation with the FY 2023-24 project.
• In FY 2024-25, the City continued to provide supplemental groceries to 32 low- income seniors. The remaining funding was combined with the previous fiscal year’s allocation to complete the ADA Ramp Improvements and Sidewalk Improvements. This adjustment utilized the funding from both fiscal years and completed seven new ADA Ramps and sidewalk improvements throughout the City.
Analysis:
LACDA notified the City the FY 2025-26 CDBG allocation will be approximately $70,146, a decrease of $13,414 from FY 2024-25. In November 2024, LACDA informed the City the FY 2025-26 maximum percentage of funds allocated toward a public service project would be 15%. The remaining funds (85%) may be used for non-public service projects, typically capital improvement projects.
The project from FY 23-24 that was extended to include the FY 24-25 funding allocation was recently completed and set for the December 10, 2024 City Council Meeting for a Notice of Completion.
Public Service Project: Food Distribution Program
Based on the HUD guidelines, only low-income and extremely low-income households are approved for the Food Distribution Program. The program participants are required to reapply for the Food Distribution Program through a process of self-certification of household size and income each fiscal year. Historically, the City has used CDBG funding to cover the cost of the Food Distribution Program:
• In FY 2020-21, the Food Distribution Program served 44 low-income senior households on a weekly basis, an increase of 19 households from those served in FY 2019-20. A total of 38 families were also served in FY 2020-21, due to COVID-19 and the City’s ability to expand the program.
• In FY 2021-22, the program returned to serving low-income senior citizens every other week and served 38 low-income seniors.
• In FY 2022-23, the program served 35 senior households, and in FY 2023-24 the program served 31 low-income senior households.
• The FY 2024-25 program currently serves 32 households. The Family Food Distribution Program was funded by the CDBG-CV Funding and is now incorporated in the Parks, Recreation & Library Services operating budget.
As of November 30, 2024, a total of 32 senior households have participated in the Food Distribution Program. The FY 2024-25 allocation is being used to cover the program costs. However, due to an increased cost of groceries, staff estimate that the current CDBG funds for FY 2024-25 will only provide supplemental groceries to the existing 32 participants through February 2025. In anticipation of this shortfall, staff has secured grant funding from the Signal Hill Community Foundation to supplement the CDBG allocation for March through June 2025.
The allowed funding for the Food Distribution Program in FY 2025-26 is 15%, or $10,521. This is $2,013 less than FY 2024-25 of $12,534. In anticipation of this reduced funding, staff estimate that the FY 2025-26 funding will only provide supplemental groceries to a maximum of 35 senior households through December 2025. In anticipation of this shortfall, staff has contacted multiple organizations to secure grant funding to supplement the CDBG allocation for January through June 2026. Staff will continue this effort until the funds needed are secured. If needed, City Council may elect to approve a budget adjustment during the mid-year budget review.
Non-Public Service Projects: ADA Streets and Sidewalk Improvements
The Parks, Recreation, and Library Services and the Public Works staff collaborated to identify possible projects for FY 2025-26. After consulting with CDBG compliance experts, and following careful evaluation of other potential projects, staff determined that the ADA Streets and Sidewalk Improvements were an appropriate and timely use of CDBG funds.
Public Works staff identified three locations in residential neighborhoods, currently listed on the Department’s Streets and Sidewalk Inventory that are missing ADA ramps. The proposed ADA Streets and Sidewalk Improvements project would construct ADA ramps at three proposed locations in the residential neighborhoods east of Cherry, on 19th Street. If approved by the City Council, the CDBG allocation for non-public services projects would fund $59,625 of street and sidewalk improvements.
Recommendation:
Staff recommends the City Council approve the allocation of the non-public service funding to the ADA Streets and Sidewalk Improvements at three locations throughout the city for FY 2025-26 and adopt a resolution approving the CDBG estimated allocation for FY 2025-26 in the amount of $70,146 and the proposed expenditures of these allocations (Attachment A). The remaining locations in the City’s inventory list would be completed within the Public Works streets and sidewalk maintenance schedule.
Staff anticipates issuing a Request for Bids for the FY 2025-26 ADA Streets and Sidewalk Improvements in the near future and will present a staff report to the City Council to recommend an award of contract.
Reviewed for Fiscal Impact:
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Sharon del Rosario
Attachment:
A. Resolution