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HomeMy WebLinkAboutStaff Report 266-09TO: FROM: DATE: HONORABLE CITY COUNCIL CITY MANAGER JUNE 1,2009 DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT CMR: 266:09 REPORT TYPE: PUBLIC HEARING SUBJECT: Adoption of the 2008/09 Community Development Block Grant (CDBG) Annual Action Plan Amendment to the 2005-10"Consolidated Plan to Provide Funding Awards Under the American Recovery and Reinvestment Act of 2009 in the Amount of $183,477 (CDBG-R) and Adoption of a Resolution of the Council Approving the Use of CDBG-R Funds EXECUTIVE SUMMARY Council action is requested to amend the City's CDBG 2008/09 Annual Action Plan in order for the City to receive an additional $183,477 in CDBG funding that is available through the American Recovery and Reinvestment Act of2009 (Recovery Act). The grant progranl under this title is commonly referred to as the CDBG Recovery (CDBG-R) program. The purpose of CDBG- R activities should primarily be economic development, housing, infrastructure and other public facility activities that will quickly spur further economic investment, increased energy efficiency and job creation or retention. Per regulations specific to the CDBG-R program, the City must amend the 2008/09 Action Plan approved last year and provide citizens the opportunity to comment on any proposed changes. This Amendment to the 2008/09 Action Plan is intended to provide detailed information on the proposed changes relating to the Recovery Act award. The City may provide funding in three program activity areas: public service (a maximum of 15% of the grant), City grant administration (a maximum of 10%) and capital projects (remainder of grant allocation) and is proposing funding allocations of $27,500, $18,347 and $137,630 respectively. Funding for public service activities and administration is not required by ARRA or CDBG-R and any excess funds in either funding category may be allocated to capital projects. CMR: 266:09 10f6 The CDBG Citizens Advisory Committee (CAC) met on Wednesday, May 13,2009, to review applications submitted for CDBG-R funding. Staff and the CAC concur in reconunending funding for the following activities: Public Service Shelter Network -Haven Family House Administration City of Palo Alto, Plmming Division CapitallRehabilitation ' Palo Alto Housing Corp -Plum Tree Apts Palo Alto Housing Corp -California Park Apts A venidas -Senior Center Stevenson House -Senior Housing TOTAL RECOMMENDATION Staff and the CAC recommend that the City Council: $27,500 $18,347 $36,382 $ 6,601 $60,547 $34,100 $183,477 1. Allocate CDBG-R funding as described in the draft 2008/09 Action Plan Amendment and adopt the attached Resolution. 2. Authorize staff to submit the 2008/09 Action Plan Amendment to the Department of Housing and Urban Development (HUD) by the June 5, 2009 deadline. 3. Authorize the City Manager or designee, on behalf of the City, to execute the 2008/09 Action Plan Amendment for CDBG-R funds and any other necessary documents concerning the application, and to otherwise bind the City with respect to the application , and commitment of funds. BACKGROUND The City Council approved the 2008/09 CDBG Annual Action Plan of the 2005-2010 CDBG Consolidated Plan on May 5, 2008 and it was subsequently approved by HlTD. The 2008/09 Annual Action Plan described the activities to be funded with CDBG funds in Fiscal Year 2009 to address priority housing and non-housing community development needs and to affirmatively further fair housing. On February 17,2009, the Recovery Act was approved appropriating an additional $1 billion in CDBG-R funds for 2008/09. HUD announced shortly thereafter that Palo Alto would receive $183,477 in CDBG-R entitlement funds, and on May 6, 2009, HUD announced that entitlement grantees must submit a substantial amendment to the program year 2008 CDBG action plan to HUD by June 5, 2009. In order to expedite the process, HlTD shortened the normal30-day public review and comment period to seven days and waived the public hearing requirement. CMR: 266:09 20f6 DISCUSSION All 2009/1 0 CDBG applicants were contacted by phone and e-mail requesting submittal of CDBG- R applications by May 11,2009. The Citizens' Advisory Committee met on Wednesday, May 13, 2009, to review and consider six public service applications, one administration application and five capital/rehabilitation project applications. Applications were reviewed by the CAC and staff relative to CDBG national objectives and CDBG-R criteria. CDBG-R considerations included: • Maximization of job creation and economic benefit by investing in projects that will provide long-term benefits; • Expenditure of CDBG-R funds in a timely manner by giving priority to projects that can award contracts based on bids within 120 days from the date the funds are made available; • Utilization of CDBG-R funds for discrete, stand-alone activities whenever possible; • Promotion of energy conservation, smart growth, green building technologies or reduced pollution emissions; • Certification that the funds principally benefit low income families; and • Use of U.S. produced iron, steel and manufactured goods for construction. -Public comments on the draft Action Plan amendment were solicited from May 15 through May 31,2009, in an advertisement published in the Palo Alto Weekly, in a posting on the City's website and by placing copies for public review at the Downtown Library, the City's Development Center and in the Planning and Community Environment Department. No comments were received on the draft Action Plan amendment during the review period. The following table summarizes the funding requests and recommendations for the use of CDBG- R. 2008/09 CDBG-R FUNDING APPLICATION REQUESTIRECOMMENDATION TABLE JUNE 1,2009 Public Service Applications Name of Project Title CDBG-R 08/09 09/10 Recommendations Agency Funding Funded Funded Staff and CAC Request 1. Shelter Haven Family $27,500 Yes No $27,500 Network House 2. Catholic Long-Term Care -0- Charities Ombudsman $5,000 Yes Yes 3. Emergency -0- Housing Palo Alto $7,500 Yes No Consortium HOMES 4. Palo Alto SRO Resident $41,000 Yes Yes -0- CMR: 266:09 30f6 Housing Corp. Support Services 5. Support Domestic $2,500 No Yes -0-(Funding Network for Violence activity proposed is Battered Services ineligible) Women 6. Inn Vision the Opportunity $27,500 Yes Yes -0- Way Home Center TOTAL $111,000 $27,500 150/0 Cap $27,521 Planning and Administration Applications Name of Project Title CDBG-R 08/09 09/10 Recommendations Agency Funding Funded Funded Staff CAC Request 7. City of Palo CDBG-R Program $18,347 Yes Yes $18,347 Alto-Administration Planning Division TOTAL $18,347 $18,347 10% Cap $18,347 Capital Project Applications Name of Agency Project Title CDBG-R Recommendations Funding Staff and CAC Request 8. Palo Alto Housing Plum Tree Apartments -$36,382 $ 36,382 Corporation Window Replacement/Exterior Repaint 9. Palo Alto Housing CalifoTIlia Park -Concrete Corporation Sidewalk Repair & $12,149 $ 6,601 Replacement 10. Lytton Gardens Bathtub Cut-downs $33,555 -O- Il. Avenidas Kitchen Repairs & Energy $60,547 $ 60,547 Efficient Upgrades 12. Stevenson House Sewer Pipe System Repair $34,100 $ 34,100 TOTAL $176,733 $137,630 $137,609 CDBG-R funds TOTAL: $183,477 $183,477 CNIR: 266:09 40f6 Staff and the CAC utilized the HUD criteria outlined above for guidance in the selection process. The City received requests for $111,000 in public service activities but only $27,521 can be funded within the 15% cap. It was detemlined that Shelter Network's proposal met the HUb criteria better than the other activities proposed. With the incorporation of energy conservation workshops and mandatory free home energy audits for residents transitioning into permanent housing, the proposal best fit the environmental goal of energy conservation and utilization of green building technologies compared to all other public service activities. The City received five requests for $176,733 in capital projects. Three proposals were recommended to be funded in full. One proposal was recommended to be partially funded. Lytton Garden's project proposal was not recommended to be funded as the request could not be tied to promoting energy conservation nor was it a discrete stand alone project. RESOURCE IMPACT CDBG-R funds are a one-time only funding source from the Federal Recovery Act of2009. There is no impact on the City's General Fund. POLICY IMPLICATIONS The actions recommended in this report are consistent with the 2005-2010 Consolidated Plan which implement the City's adopted Land Use and Natural Environment Elements' policies supporting a sustainable environment. ENVIRONMENTAL REVIEW City Council approval of the 2008/09 Action Plan amendment and adoption of the associated Resolution for CDBG-R fund distribution are exempt for the California Environmental Quality Act (CEQA) and the National Environmental Policy Act (NEPA) because allocation of funding is not considered a project under CEQA guidelines Section 15061(b)(3) and NEPA 24 CFR 58.34(a)(4) and the proposed public service and administrative activities will not have a physical impact or result in any physical changes to the environment. The capital projects proposed are also categorically excluded activities under CEQA Section 15301, Existing Facilities and NEPA 24 CFR 58.35 that allows repairs and rehabilitation to facilities that do not increase the size, density or change of use of the structures. PREPARED BY: DEPARTMENT HEAD: CITY MANAGER APPROVAL: CMR: 266:09 KAT ARX CDBG Planner ~W'~~ CURTIS WILLIAMS, Interim Director ___ ~ __ ing and Community E ironment ~r! NE 50f6 ATTACHMENTS A. Resolution B. Draft Amended 2008/09 Annual Action Plan Cc: Citizens Advisory Committee CDBG-R Applicants CMR: 266:09 60f6 ATTACHMENT A NOT YET APPROVED Resolution No. --- Resolution of the Council of the City of Palo Alto Approving the Use of Community Development Block Grant American Recovery and Reinvestment Act of 2009 Funds for Fiscal Year 2008-2009 WHEREAS, on May 9, 2005, the Palo Alto City Council approved and adopted a document entitled "Consolidated Plan", which identified and established the Palo Alto housing and non-housing community development needs, objectives, and priorities for the period of July 1, 2005 to June 30, 2010; and WHEREAS, the 2008-09 Action Plan, the annual update to the Consolidated Plan, was subjected to public review and commentary during the period of March 25, 2008 through April 25, 2008; and WHEREAS, the American Recovery and Reinvestment Act of 2009, Public Law 111-005 was approved on February 17, 2009, appropriating $1 billion to carry out the Community Development Block Grant (CDBG-R) program under Title I of the Housing and Community Developn1ent Act of 1974; and WHEREAS, the potential uses of CDBB-R funds were evaluated in light of the needs and objectives identified in the Consolidated Plan and criteria required under Notice of Program Requirements for Community Development Block Grant Program Funding Under the American Recovery and Reinvestment Act of 2009 and are reflected in the recomn1endations and comments of the Citizens Advisory Committee and other interested citizens; and WHEREAS, the CDBG-R program requires the amendment of the 2008-09 annual Action Plan; and WHEREAS, the City Council has held a publicly noticed public hearing on June 1, 2009, on the proposed uses of the CDBG-R funds; and WHEREAS, CDBG-R funds allocated to the City amending the 2008-09 Annual Action Plan are proposed to implement the following programs; NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. The uses of CDBG-R funds for fiscal year 2008-09 are hereby approved and authorized for the following programs: 1 090520 syn 0120355 NOT YET APPROVED Name of Program Amount 1. Shelter Network. Haven Family House -$ 27,500 Public service activity providing transitional housing for homeless families with children. 2. City of Palo Alto. Department of Planning $ 18,347 and Community Environment -CDBG-R program administration for the City. 3. Stevenson House. Capital Improvement $ 34,100 Project -Sanitary sewer repairs serving low-income seniors. 4. Palo Alto Housing Corp. Plum Tree Apartments. $ 36,382 Energy efficient window and door replacement and exterior painting serving families in affordable housing. 5. Palo Alto Housing Corp. California Park Apartments. $ 6,601 Concrete sidewalk repairs serving families in affordable housing. 6. A venidas. Senior Center -Kitchen repairs and $ 60,547 energy efficient upgrades benefiting low-income senior citizens. TOTAL $183,477 SECTION 2. The total amount set forth under Section 1 of this resolution represents the proposed allocation of $183,477 in CDBG-R funds, from the United States Department of Housing and Urban Development (HUD) for fiscal year 2008-09. SECTION 3. The City staff is hereby authorized to submit the amendment to the 2008-09 annual Action Plan update and appropriate forms to HUD for the fiscal year 2008-09 CDBG-R funds, and such money shall be spent as set forth in this resolution. The Mayor, City Manager and any other designated City staff or officials are hereby authorized to execute such application forms and any other necessary documents to secure these funds. II II II 2 090520 syn 0120355 NOT YET APPROVED SECTION 4. The City Council hereby finds that the fiscal year 2008-09 CDBG-R program authorized under Section 1 of this resolution is not a project under the California Environmental Quality Act (CEQA). However, the Council further authorizes and directs City staff to conduct certificates that may be required, under CEQA and the National Environmental Policy Act (NEPA) for each project under the fiscal year 2008-09 CDBG-R program prior to the release of funds for any such proj ect. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: City Clerk APPROVED AS TO FORM: Assistant City Attorney APPROVED AS TO CONTENT: CDBG Coordinator 090520 syn 0120355 3 APPROVED: Mayor City Manager Director of Planning and Community Environment Director of Administrative Services ATTACHMENTB CITY OF PALO ALTO Housing and Community Development DRAFT 2008/09 ANNUAL ACTION PLAN AMENDMENT COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AMERICAN RECOVERY AND REINVESTMENT ACT 2009 (CDBG-R) FUNDS Public Review Period May 15, 2009 -May 21, 2009 Prepared by Department of Planning & Community Environment 250 Hamilton Avenue Palo Alto, California 94301 Curtis Williams, Interim Director For Information, please contact: Kathy Marx, CDBG Planner Planning Division, City of Palo Alto, (650) 329-2428 or kathy.marx@cityofpaloalto.org SI USTED REQUIERE ASISTENCIA EN ESPANOL SOBRE INFORMACION RELACIONADA AL PROGRAMA DE SUBSIDIOS GLOBALES PARA EL DESAROLLO COMMUNITARIO (CDBG) DEL ACTA DE RECUPERACION Y REINVERSION AMERICANA DEL 2009, POR FAVOR COMUNIQUESE CON GUISELLE PEREZ MARCANDO AL (650) 329-2339. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Executive Summary The City's Annual Action Plan for the program year 2008/09 was approved by the City Council on May 5, 2008 and subsequently approved by the U.S. Department of Housing and Urban Development (HUD). The Action Plan serves as the City's application for federal funds under HUD's formula grant programs. The approved 2008/09 Annual Action Plan described the eligible activities that the City intended to undertake to address the needs and implement the strategies identified in the City's Consolidated Plan for the period July 1,2005 to June 30, 2010. It described the activities to be funded with Community Development Block Grant (CDBG) funds in fiscal year 2008/09 to address priority housing and non-housing community development needs and to affirnlatively further fair housing choice. The 2008/09 Annual Action Plan was amended on March 2, 2009, to authorize a pre- award from HUD for $300,000 in funding from next fiscal year's (2009/10) CDBG grant allocation for the land acquisition of Palo Alto Housing Corporation's Tree House affordable housing project at 488 W. Charleston Rd. in Palo Alto; and to authorize the reallocation of $80,000 in excess program income or previously allocated, but unspent, CDBG funding to Inn Vision to fill an urgent financial gap in shelter and homeless services at the Opportunity Center in Palo Alto and the Clara-Mateo Alliance Shelter in Menlo Park during program year 2008/09. Both of those amended activities addressed the priority housing and community development needs identified in the Consolidated Plan, and met the required HUD national objective of benefitting low-and moderate-income persons. On February 17,2009, Title XII of Division A of the American Recovery and Reinvestment Act of 2009, Public Law 111-005, (Recovery Act) was approved appropriating $1 billion to carry out the CDBG program under Title I of the Housing and Community Development Act of 1974 on an expedited basis. The grant program under this title is commonly referred to as the CDBG Recovery (CDBG-R) program. In order to expedite the use of these funds for their requested purpose the Secretary has waived certain CDBG requirements and specified alternative requirements except for requirements related to fair housing, nondiscrimination, labor standards and the environment. Funding available under the Recovery Act has clear purposes to stimulate the economy through measures that modernize the nation's infrastructure, improve energy efficiency and expand educational opportunities and access to health care. In implementing the Recovery Act, Federal agencies are undertaking unprecedented measures to ensure transparency and accountability in the use of the funds. Relative to the CDBG-R program, HUD desires that CDBG-R grantees carefully evaluate proposed projects for consistency with these goals. The full range of CDBG activities is available to grantees but HUD strongly suggests that grantees incorporate consideration of the public perception of the intent of the Recovery Act in the identification and selection of projects 2 for CDBG-R funding including the identification of discrete projects and the perception ofCDBG-R funding as a long-term investment rather than short-term. The City received $183,477 in CDBG-R funding and is proposing to amend the 2008/09 Annual Action Plan in the following ways: Public Service Shelter Network -Haven Family House Administration City of Palo Alto, Dept. of Planning CapitallRehabilitation Palo Alto Housing Corp -Plum Tree Apts Palo Alto Housing Corp -California Park Apts A venidas -Senior Center Stevenson House -Senior Housing TOTAL $27,500 $18,347 $36,382 $ 6,601 $60,547 $34,100 $183,477 According to CDBG regulations specific to the CDBG-R program, the City must amend its' 2008/09 Action Plan providing citizens notice of, and the opportunity to comment on, any proposed changes. This Amendment to the 2008/09 Action Plan is intended to provide detailed information on the proposed changes relating to the Recovery Act award. The Draft Action Plan Amendment was available for review by the general public and other interested parties for a 7-day period beginning on May 15,2009 and ending on May 21, 2009. Interested parties were encouraged to submit comments on the proposed amendments to the 2008/09 Annual Action Plan during the public review period or to comment at the public hearing described below. Public Hearing The Palo Alto City Council held a public hearing on June 1, 2009 to review and adopt the 2008/2009 Annual Action Plan Amendment of the 2005-2010 Consolidated Plan for CDBG Recovery Act funds. The Public Hearing was held at 7 :00 p.m. in City Hall, Council Chambers, 250 Hamilton Avenue, Palo Alto. Amended Activities In accordance with CDBG-R requirements provided in Docket No.FR-5309-N-01 the City proposes the following activities and projects including: 3 i. A paper copy of the CDBG-R assisted activities HUD electronic spreadsheet is attached. 11. A description of how the distribution and uses of the CDBG-R funds for each of these proposed activities/projects is meeting the requirements of Title XII of Division A and Section 1602 of the Recovery Act of each activity is included. iii. A description of how the use ofCDBG-R funds for each activity or project will maximize job creation and economic benefit. IV. An estimation of the number of full-and part-time jobs created and retained by the activity or project. v. A description of how the activity or project will promote energy conservation, smart growth, green building technologies or reduced pollution emissions. Public Service Activities Haven Family House, 260 Van Buren Rd., Menlo Park, CA -$27,500 Shelter Network of San Mateo County, Michele Jackson, Executive Director, 650-685- 5880 x21 The Haven Family House is requesting CDBG-R funds to provide transitional housing for displaced and homeless families with children. Real estate foreclosures have affected the lower end of the rental market significantly in Palo Alto. When the property owner loses a residence to a bank foreclosure, if that property is rented out, even an employed tenant can easily become homeless as the rental deposit and last nl0nth's rent that is typically paid up front is often lost. Shelter Network proposes to provide mid-term transitional housing at Haven Family House and services (employment search assistance, health care referrals, financial planning and life skills workshops, as necessary) for homeless Palo Alto families meeting the obligation of low-income criteria. The City of Palo Alto CDBG Citizens' Advisory Committee (CAC) is also requesting the incorporation of an energy conservation workshop and a free home energy audit upon a resident's transition to permanent housing. CDBG-R funding for this activity proposes to retain one full-time case manager at Haven Family House. The transitional services provided promote economic growth by assisting persons with employment searches, mandatory savings and financial planning. A by- product of maintaining diversity within a community by encouraging and helping . community members to learn to maintain their own residences in an environmentally conscientious manner is smart-growth. It also assists the business community in providing a work force that does not have to come from outside of the general geographic area eliminating long-distance commuting. Administration Activity City of Palo Alto Department of Planning and Community Environment, 250 Hamilton Avenue, Palo Alto, CA -$18,347 Cathy Siegel, Advanced Planning Manager, 650-329-2108 Ten percent of the CDBG-R award may be utilized for planning and administration costs. In order to reimburse the City for such costs related to the administration of this federal program the City of Palo Alto Department of Planning and Community Environment is requesting $18,347. 4 There are multiple components of the CDBG-R process that will utilize City staff time and other non-salary expenses in order to facilitate the CDBG-R process and administer the grant award. Quarterly reporting requirements to HUD and stand alone contract administration for each activity and program to grant subawardees and subcontractors in order to maintain financial oversight and meet the Recovery Act goal of transparency and to ensure that the public funds are expended responsibly throughout the life of CDBG-R program are exanlples of additional planning and administration costs that will be incurred on behalf of the City. It is an economic benefit to utilize City staff to administer the program. They are familiar with local needs and existing programs and can facilitate the CDBG-R process in the most expeditious and cost-saving manner. Utilizing staff at the local level also has sustainable benefits that relate to future monitoring of activities within a discrete geographic area not requiring extended travel. The City maintains 1.2 full time employees to administer the regular CDBG program. These permanent positions will be retained. The costs associated with the administration of the regular program are never fully covered by the annual CDBq awards. Approximately 32% of the costs of administering the regular CDBG program are paid for through the City's General Fund. Therefore, the City is requesting CDBG-R funding to offset the costs of this additional work load. Capital/Rehabilitation Projects Plum Tree Apartments, 3020 -3038 Emerson Ave., Palo Alto, CA-$36,382 Palo Alto Housing Corporation (PAHC), Georgina Mascarenhas, Director of Property Management, 650-321-9709 The PAHC is requesting $19,294 for the replacement of existing single-paned with metal framed windows and sliding doors with new dual-paned thermal windows and sliding doors in five units of the multi-family residential affordable housing apartment property benefiting 30 residents of whom 100% are low or very-low income. Additionally PAHC is requesting $17,088 in order to repaint both 5-unit buildings within the complex due to prior repairs, the proposed window replacement and the deteriorating condition of the existing exterior paint benefiting a total of 60 residents of whom all are low or very-low income. Palo Alto's CDBG CAC requested that the paint utilized be a new environmentally sensitive product that focuses on green building. Both projects will have long-term economic investment and environmental benefits by maintaining an existing structure, reducing the CQst of heating and cooling individual units equating to a financial savings for tenants who are some of those most impacted by the recession and reducing the carbon footprint relative to the reduced natural gas consumption. Additionally there is an emphasis on utilizing products that comply with green building technologies presently available. It is estimated that 4 construction employees will be utilized during the time of the proposed rehabilitation. 5 California Park Apartments -2301 Park Blvd., Palo Alto, CA -$6,601 Palo Alto Housing Corporation, Georgina Mascarenhas, Director of Property Management, 650-321-9709 The P AHC requested $12,149 for concrete sidewalk repair and replacement. The City's CDBG CAC recommended funding this project at $6,601 in order to capture the remainder of the CDBG-R award to the n1aximun1 extent allowed (upon approval of other projects funded at the full request). It was determined that this capital/rehabilitation project could be scaled down to fit the funding available. California Park is an affordable housing property for low-income families. The project would benefit all 200 low income residents in the 45 affordable housing units on site. The project would have long term economic benefits relating to the sustainability of the property by continuing to maintain and enhancing the life of the complex. The CDBG CAC recommends that all new concrete utilized on the site be permeable, allowing the percolation of water through the product, thereby reducing surface water runoff and pollution of local waterways. It is estimated that 4 construction employees will be utilized at the time of rehabilitation. Senior Center -450 Bryant St., Palo Alto, CA-$60,547 A venidas, Lisa Hendrickson, President, 650-289-5440 A venidas is requesting CDBG-R funding for kitchen repairs and energy efficient upgrades at the senior center. The kitchen is utilized daily by La Comida de California that prepares and serves 150 lunches on site in addition to preparing meals for delivery to the Stevenson House, a 120 unit residential facility for low-income Palo Alto senior ) citizens. The kitchen improvements proposed include: 1) replacement of cooler/refrigerator compressor cooling equipment; 2) replacement of a range with a code compliant model; 3) elimination of a non-compliant garbage disposal and modify the existing sink; 4) replacement of a failing convection oven with an energy efficient model; and 5) replacement of a small energy inefficient under-counter refrigerator. The proposed project will establish a long-term investment in a public facility that provides services to a clientele of senior citizens of whom at least 70% are of low or moderate incomes. The economic benefit will be a cost reduction in utilities and the employment of an estimated total of 8 to 12 construction workers during the rehabilitation process. The environmental benefit will be the energy conservation and reduction of pollution emissions by the utilization of a new compressor and the elimination of garbage disposal system that contributes to solid waste in the sewer system. Stevenson House -455 E. Charleston Rd, Palo Alto, CA-$34,1 00 Palo Alto Senior Housing Project, Inc., dba Adlai E. Stevenson House, Thams Pamilla, Director, 650-494-1944xI2 The Stevenson House is requesting CDBG-R funding for emergency sewer repairs for deteriorated and clogged sewer pipes connected to bathrooms and kitchens within residential units. The requested funds will be utilized to correct the most impacted 6 portions of the sewer lines. The Stevenson House has 120 units housing 130 residents of whom a minimum of70% are low income. The proposed project is requested in order to provide immediate environmental health benefits to the senior residents of the complex and reduction of ground pollution from pipe erosion. It also serves a population that is highly impacted by the recession if they were to be displaced due to health, life and safety concerns at their apartment homes. The average age of the Stevenson House population is 81. The project will employ two plumbers (construction) until completion. All activities/projects proposed can award contracts based on bids within 120 days from the date the funds are nlade available from HUD and can be completed within the timeframe outlined in HlTD guidelines. Public Comment Citizens or other interested parties were encouraged to call the City of Palo Alto's CDBG program administrator, Kathy Marx, at 650-329-2428, email at kathy.marx@cityofpaloalto.org or write to Kathy Marx, City of Palo Alto, Department of Planning and Community Environment, PO Box 10250, Palo Alto, CA 94303 for additional information. Copies of the draft amendment were available for review at the Palo Alto City Hall (250 Hamilton Ave. Planning Dept. Fifth Floor.); Palo Alto Downtown Library (270 Forest Ave.); and Palo Alto Development Center (285 Hamilton Ave.). A copy of the Amendment was also posted on the City of Palo Alto website: cityofPaloalto.orgidepts.lplnlcdbgldefault.asp . SI USTED REQUIERE ASISTENCIA EN ESPANOL SOBRE INFORMACION RELACIONADA AL PROGRAMA DE SUBSIDIOS GLOBALES PARA EL DESAROLLO COMMUNITARIO (CDBG) DEL ACTA DE RECUPERACION Y REINVERSION AMERICANA DEL 2009, POR FAVOR COMUNIQUESE CON GUISELLE PEREZ MARCANDO AL (650) 329-2339. There were no public comments received during the May 15 through May 21, 2009, review period regarding the draft amendment to the 2008/09 Annual Action plan. 7 APPENDIX A Spreadsheet for Reporting Proposed CDBG-R Activities CDBG-R Activity Data Spreadsheet Jurisdiction/Grantee Name: City of Palo Alto, Calfiornia CD8G-R Fomula Grant Amount: $183,477 Family House City of Palo Alto -Planning and Administration Palo Alto Housing Corporation California Park Apartments Palo Alto Housing Corporation Plum Tree Apartments Avenidas -Senior Center Stevenson House Senior Housing OBGA Public Service Activity: Provide transitional housing and services for homeless palol5 (Public Services Alto families General) IClintele Administrative costs for CD8G-R program management and project delivery costs associated with bringing projects to completion 121A Capital Project: Window & sliding door replacement with energy efficient models in 5 units of an affordable family housing complex & exterior repaint of entire 10 unit comolex 1148 Capital Project: Concrete sidewalk repair and replacement at a 45 unit affordable family housing complex 1148 Capital Project: Kitchen repairs and energy efficient upgrades serving low income seniors 13A Capital Project: Sanitary sewer repair and replacement for selected units within a 120 unit affordable senior housing facility 1148 1 570.206 Low/Mod Housing Low/Mod Housing Low/Mod Limited Clientele Low/Mod Housing $36,382 6,601 $60,547 $34,100 5/21/20091:58 PM j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j APPENDIXB Certifications 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 CERTIFICATIONS (1) Affirmatively furthering fair housing. The jurisdiction will affirmatively further fair housing, which means that it will conduct an analysis to identify impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting the analysis and actions in this regard. (2) Anti-displacement and relocation plan. The jurisdiction will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 U.S.C. 4601), and implementing regulations at 49 CFR part 24; and it has in effect and is following a residential anti-displacement and relocation assistance plan required under section 104(d) of the housing and Community Development Act of 1974, as amended, in connection with any activity assisted with funding under CDBG-R. (3) Drug Free Workplace. The jurisdiction will or will continue to provide a drug-free workplace by: 1. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition; 2. Establishing an ongoing drug-free awareness program to inform employees about- (a) The dangers of drug abuse in the workplace; (b) The grantee's policy of maintaining a drug-free workplace; ( c) Any available drug counseling, rehabilitation, and employee assistance programs; and (d) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; 3. Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph 1; 4. Notifying the employee in the statement required by paragraph 1 that, as a condition of employment under the grant, the employee will - (a) Abide by the terms of the statement; and (b) Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; 5. Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph 4(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number( s) of each affected grant; 6. Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph 4(b), with respect to any employee who is so convicted: (a) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or 1 (b) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; 7. Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs 1,2,3,4, 5 and 6. (4) Anti-lobbying. To the best of the jurisdiction's knowledge and belief: 1. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any F ederalloan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; 2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and 3. It will require that the language of paragraph 1 and 2 of this anti-lobbying certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. (5) Authority of Jurisdiction. The jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations and other program requirements. (6) Consistency with Plan. The housing activities to be undertaken with CDBG-R funds are consistent with its consolidated plan. (7) Section 3. The jurisdiction will comply with section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u), and implementing regulations at 24 CFR part 135. (8) Community development plan. The jurisdiction certifies that the consolidated housing and community development plan identifies housing and community development needs and specifies both short-term and long-term community development objectives that have been developed in accordance with the primary objective of the statute authorizing the CDBG program. (9) Following a plan. The jurisdiction is following a current consolidated plan that has been approved byHUD. (10) Use offunds. The jurisdiction has developed activities so as to give the maximum feasible priority to activities that will benefit low-and moderate-income families or aid in the prevention of slums or blight. Additional activities may be included that are designed to meet other community development needs having particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs It has complied with the following criteria: 2 1. Maximum Feasible Priority. With respect to activities expected to be assisted with CDBG-R funds, it certifies that it has developed its Action Plan so as to give maximum feasible priority to activities which benefit low and moderate income families or aid in the prevention or elimination of slums or blight. The Action Plan may also include activities which the grantee certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community, and other financial resources are not available); 2. Special Assessments. The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG-R funds by assessing any amount against properties owned and occupied by persons of low-and moderate-income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if CDBG-R funds are used to pay the proportion of a fee or assessment attributable to the capital costs of public improvements (assisted in part with CDBG-R funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG-R funds. The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG-R funds, unless CDBG- R funds are used to pay the proportion of fee or assessment attributable to the capital costs of public improvements financed from other revenue sources. In this case, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG-R funds. In addition, with respect to properties owned and occupied by moderate-income (but not low-income) families, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG-R funds if the jurisdiction certifies that it lacks CDBG-R or CDBG funds to cover the assessment. (11) Excessive Force. The jurisdiction certifies that it has adopted and is enforcing: (1) a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and (2) a policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location that is the subject of such non-violent civil rights demonstrations within its jurisdiction. (12) Compliance with anti-discrimination laws. The CDBG-R grant will be conducted and administered in conformity with title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d), the Fair Housing Act (42 U.S.C. 3601-3619), and implementing regulations. (13) Compliance with lead-based paint procedures. The activities concerning lead-based paint will comply with the requirements of part 35, subparts A, B, J, K, and R of this title. (14) Compliance with laws. The jurisdiction will comply with applicable laws. (15) Compliance with ARRA. The jurisdiction will comply with Title XII of Division A of the American Recovery and Reinvestment Act of 2009. (16) Project selection. The jurisdiction will select projects to be funded, by giving priority to projects that can award contracts based on bids within 120 days from the date the funds are made available to the recipient, and that will ensure maximum job creation and economic benefit. (17) Timeliness of infrastructure investments. When the jurisdiction uses CDBG-R funds for infrastructure investments, the grantee will give preference to quick-start and finish activities, including a goal to use at least 50 percent of the funds for activities within 120 days of enactment of the Recovery Act. 3 (18) Buy American provision. The jurisdiction will ensure that all iron, steel and manufactured goods used in construction, alteration, repair, or maintenance of a public building or public work project assisted with CDBG-R funds under the Recovery Act must be produced in the United States unless the Secretary finds that: (1) the requirement is inconsistent with public interest; (2) those goods are not reasonably available or produced in sufficient quantity in the U.S.; (3) or the use of the goods will increase the project cost by more than 25 percent. (19) Appropriate use of funds for infrastructure investments. The Governor, mayor, or other chief executive, as appropriate certifies, that any infrastructure investments have received the full review and vetting required by law and that the chief executive accepts responsibility that the infrastructure investment is an appropriate use of taxpayer dollars. Alternatively, a grantee's chief elected official certifies that infrastructure investments will receive the full review and vetting required by law and that the chief executive accepts responsibility that the infrastructure investment is an appropriate use of taxpayer dollars. (20) 70% ofCDBG-R for LMI. The aggregate use ofCDBG-R funds shall principally benefit persons of low and moderate income in a manner that ensures that at least 70 percent of the grant is expended for activities that benefit such persons over the life of the CDBG-R grant. Signature/Authorized Official Date Title 4 APPENDIXC Standard Form SF -424 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Application for Federal Assistance SF-424 *1. Type of Submission: *2. Type of Application * If Revision, select appropriate letter(s) o Preapplication ~ New ~ Application Continuation *Other (Specify) 0 Changed/Corrected Application D Revision 3. Date Received: 4. Applicant Identi'fier: 5a. Federal Entity Identifier: *5b. Federal Award Identifier: B08MC060020 State Use Only: 6. Date Received by State: I 7. State Application Identifier: 8. APPLICANT INFORMATION: *a. Legal Name: City of Palo Alto *b. Employerrraxpayer Identification Number (EINrrIN): *c. Organizational DUNS: 94-6000389 959938929 d. Address: *Street 1: PO Box 10250 Street 2: *City: Palo Alto County: *State: CA Province: *Country: Santa Clara *Zip / Postal Code 94303 e. Organizational Unit: Department Name: Division Name: Planning and Community Environment Planning f. Name and contact information of person to be contacted on matters involving this application: Prefix: Ms. *First Name: Cathy Middle Name: *Last Name: Siegel Suffix: Title: Organizational Affiliation: *Telephone Number: 650-329-2108 Fax Number: 650-329-2154 *Email: cathy.siegel@cityofpaloalto.org OMB Number: 4040-0004 Expiration Date: 0113112009 Version 02 Application for Federal Assistance SF-424 *9. Type of Applicant 1: Select Applicant Type: C. City or Township Government Type of Applicant 2: Select Applicant Type: Type of Applicant 3: Select Applicant Type: *Other (Specify) *10 Name of Federal Agency: U.S. Department of Housing and Urban Development 11. Catalog of Federal Domestic Assistance Number: 14.253 CFDA Title: Community Development Block Grant -Recoverv Act (CDBG-R) *12 Funding Opportunity Number: Funding Under ARRA of 2009 *Title: 13. Competition Identification Number: Title: 14. Areas Affected by Project (Cities, Counties, States, etc.): City of Palo Alto, County of Santa Clara within the State of California *15. Descriptive Title of Applicant's Project: OMB Number: 4040-0004 Expiration Date: 0113112009 Version 02 The City of Palo Alto's Community Development Block Grant Program relative to the American Recovery and Reinvestment Act of 2009 (CDBG-R) Substantial Amendment of the 2008/09 annual Action Plan Application for Federal Assistance SF-424 16. Congressional Districts Of: OMB Number: 4040-0004 Expiration Date: 0113112009 Version 02 *a. Applicant: 14th Congressional District *b. Program/Project: 14th Congressional District 17. Proposed Project: *a. Start Date: 6/5/2009 *b. End Date: 9/30/2012 18. Estimated Funding ($): *a. Federal 183,477 *b. Applicant *c. State *d. Local *e. Other *f. Program Income *g. TOTAL 183,477 *19. Is Application Subject to Review By State Under Executive Order 12372 Process? D a. This application was made available to the State under the Executive Order 12372 Process for review on __ D b. Program is subject to E.O. 12372 but has not been selected by the State for review. ~ c. Program is not covered by E. O. 12372 *20. Is the Applicant Delinquent On Any Federal Debt? (If "Yes", provide explanation.) DYes ~ No 21. *8y signing this application, I certify (1) to the statements contained in the list of certifications** and (2) that the statements herein are true, complete and accurate to the best of my knowledge. I also provide the required assurances** and agree to comply with any resulting terms if I accept an award. I am aware that any false, fictitious, or fraudulent statements or claims may subject me to criminal, civil, or administrative penalties. (U. S. Code, Title 218, Section 1001) ~ ** I AGREE ** The list of certi'fications and assurances, or an internet site where you may obtain this list, is contained in the announcement or agency specific instructions Authorized Representative: Prefix: Mr. Middle Name: *Last Name: Keene Suffix: *Title: City Manager *Telephone Number: 650-329-2563 * Email: james.keene@cityofpaloalto.org *Signature of Authorized Representative: Authorized for Local Reproduction *First Name: James I Fax Number: 650-325-5025 I *Date Signed: Standard Form 424 (Revised 10/2005) Prescribed by OMB Circular A-I02 j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j APPENDIXD Checklist j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j CDBG-R Substantial Amendment Grantee Checklist For the purposes of expediting review, HUD asks that applicants submit the following checklist along with the CDBG-R Substantial Amendment, Spreadsheet for Reporting Proposed CDBG-R Activities, and SF-424. Contents of a CDBG-R Action Plan Substantial Amendment Jurisdiction(s): City of Palo Alto, California CDBG-R Contact Person: Cathy Lead Agency Siegel Jurisdiction Web Address: Address: 250 Hamilton Ave. Palo http://www.cityofopaloalt09.orgldeptslplnlcdbgldefault.aspAlto.CA 94301 Telephone: 650-329-2108 Fax: 650-329-2154 Email: cathy.siegel@cityofpaloalto.org The elements in the substantial amendment required for the CDBG recovery funds are: A. SPREADSHEET FOR REPORTING PROPOSED CDBG-RA CTIVITIES Does the submission contain a paper copy of the Spreadsheet for Reporting Proposed CDBG-R Activities? Yes[8J NoD Verification found on page ~ Does the submission include an electronic version of the Spreadsheet for Reporting Proposed CDBG-R Activities sent to the email box CDBG-R@hud.gov? Yes[8J NoD Date Spreadsheet was emailed: 6/2/09 Does the Spreadsheet for Reporting Proposed CDBG-R Activities include, for each activity: • amount of funds budgeted for each activity, including CDBG-R funds, any additional Recovery Funds used and total activity budget, Yes[8J NoD Verification found on page(s) 4-7 • the Eligibility citation (eligibility regulatory cite or HCDA cite), Yes[8J NoD Verification found on page(s) ~ • the CDBG national objective citation, Yes[8J NoD Verification found on page(s) ~ 5 B. CDBG-R INFORMATION BY ACTIVITY Does the submission contain information by activity describing how the grantee will use the funds, including: • a narrative for each activity describing how CDJ3G-R funds will be used in a manner that maximizes job creation and economic benefit, Yes[8J NoD Verification found on page(s) 4-7 • projected number of jobs created for each activity, Yes[8J No Verification found on page(s) 4-7 • whether an activity will promote energy efficiency and conservation, Yes[8J NoD Verification found on page( s) 4-7 • the name, location, and contact information for the entity that will carry out the activity, Yes[8J NoD Verification found on page( s) 4-7 • evidence that no more than 10% of the grant amount will be spent on administration and planning, Yes[8J ·NoD Verification found on page (s) J • evidence that no more than 15% of the grant amount will be spent on public services, Yes[8J NoD Verification found on page (s) J • evidence that at least 70% of the grant amount will benefit persons of low and moderate income, Yes[8J NoD Verification found on page (s) 1 C. PUBLIC COMMENT PERIOD Was the proposed action plan amendment published via the jurisdiction's usual methods and on the Internet for no less than 7 calendar days of public comment? Yes[8J NoD. Verification found on page(s) 1 Is there a summary of citizen comments included in the final amendment? Yes[8J NoD Verification found on page(s) 1 D. CERTIFICATIONS The following certifications are complete and accurate: (1) Affirmatively furthering fair housing (2) Anti-displacement and relocation plan (3) Drug-free Workplace (4), Anti-lobbying (5) Authority of jurisdiction (6) Consistency with plan Yes[J Yes[J Yes[J Yes[J Yes[J Yes[J NoD No NoD NoD NoD NoD 6 (7) Section 3 (8) Community development plan (9) Following a plan (10) Use of Funds (11) Excessive Force (12) Compliance with anti-discrimination laws (13) Lead-based paint procedures (14) Compliance with laws (15) Compliance with ARRA (16) Project selection (17)·Timeliness of infrastructure investments (18) Buy American provision (19) Appropriate use of funds for infrastructure investments (20) 70% of CDBG-R for LMI Optional Certification (21) Urgent Need D. STATE CERTIFICATIONS The following certifications are complete and accurate: (1) Affirmatively furthering fair housing (2) Anti-displacement and relocation plan (3) Drug-free Workplace (4) . Anti-lobbying (5) Authority of State (6) Consistency with plan (7) Section 3 (8) Community development plan (9) Consultation with Local Governments (10) Use of Funds (11) Excessive Force (12) Compliance with anti-discrinlination laws (13) Compliance with laws (14) Compliance with ARRA (15) Project selection (16) Timeliness of infrastructure investments (17) Buy American provision (18) Appropriate use of funds for infrastructure investments (19) 70% of CDBG-R for LMI Optional Certification (20) Urgent Need YeslZ] YeslZ] YeslZ] Yes YeslZ] YeslZ] YeslZ] YeslZ] YeslZ] YeslZ] Yesl2S] YeslZ] YeslZ1 YeslZ] YesD NoD NoD No NoD NoD NoD NoD No No NoD NoD NoD NoD NoD NolZ1 7 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1