2009 Community Development
Block Grant Program (CDBG)

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Background

The City Council will administer the distribution of approximately $308,083.00 in CDBG funds on March 5, 2009. The categories to which it will be distributed are spelled out in Federal and State law. This is currently an annual program of grants.

The CDBG program is a federally funded grant program administered on a number of levels through the State, County and City. It has very specific “rules” as to how the money can be spent and who is eligible to benefit from the grants. It is an annual program created in 1974 to be administered by the United States Department of Housing and Urban Development (HUD) for the benefit of low and moderate income groups. The original program was for “entitlement communities” in larger cities and urban counties. It was expanded to include the “State Administered CDBG” very quickly.

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The State administered CDBG program is also known as the “Small Cities CDBG Program” for cities of less than 50,000 people. That is the program which the City Council will make a determination on in March of 2009 since our population is officially listed at 29,514 as of 2008. Our county does not qualify for this money because the county population is over 200,000 (246,681 as of 2008).

However, THIS year the Federal Government passed an additional CDBG grant amount through the economic stimulus bill. That amount came to an additional $74,160 with similar rules applying. The additional money also had to be for shovel ready, stand alone projects which would increase employment, at least on a temporary basis.

The Council allocated those funds on May 19, 2009.

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Specific March 5, 2009 Results:

Sidewalks on Riverside Avenue and 24th Street$213,133
Public Services Activities (allocated as shown)$40,950

Economic Opportunity Commission (EOC):
Senior Health Screening Program$1,900
Teen Academic Parenting Program$2,300
Lifestyles Recovery Center$4,750
Transitional Food & Shelter$19,650
The Literacy Council$1,900
Senior Nutrition Program of SLO$1,900
Big Brothers & Big Sisters$1,900
El Camino Homeless Organization$4,750
People’s Self-Help Housing Corporation$1,900
City of Paso Robles (administration)$27,000
City of Paso Robles (capacity building)$27,000

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History

In 2008 the City had $299,152 in CDBG funds available. It allocated those funds as follows:
Sidewalks on Riverside Avenue and 24th Street$195,279
EOC Senior Health$2,000
EOC Teen Academic Parenting Program$2,500
Transitional Food & Shelter$21,373
Literacy Council$2,000
El Camino Homeless Organization$5,000
Big Brothers/Big Sisters$2,000
211 SLO Hotline$2,000
CASA$1,000
Assistance League$2,000
Lifestyles Recovery Center$5,000
Paso Robles City (capacity building)$29,500
Paso Robles City (administration)$29,500

May 19, 2009

We had $74,160 to work with. On my motion we allocated it as follows:
Handicapped access bus shelters on Spring Street$31,036
Modify existing handicap ramps to make them legal$30,000
EOC for a homeless case worker (part time)$11,124
Administration$2,000

Regarding the sidewalks on Riverside Avenue and 24th Street:

The Paso Robles Event Center is attracting more people than ever before on a year-round basis. It has suffered for decades from a lack of sidewalks, safe cross-walks and handicapped access facilities at its entrances. The City in implementing its Economic Strategy and in providing access for those who can least afford high tech mechanisms to achieve access has initiated this program in conjunction with the State of California’s 16th Agricultural District which owns and operates that facility.

The construction cost of the project is estimated at $440,000.

The City committed its Workforce Housing Reward Funds to this project for the design phase. That money came from the State for achieving low income housing targets. The design phase is done and some of the construction has already been accomplished with 2007 and 2008 CDBG funds. The 2009 funds should complete the project.

The breakdown of costs is as follows:
Construction Phase One Improvements$365,000
Contingencies and inflation (20%)$73,000
Soils Testing$1,000
Bid Costs (legal ads, printing, postage)$1,000
TOTAL$440,000

On May 19, 2009, we considered breaking out a portion of this project for the construction money but I opposed it since we had already provided money for it and had not allocated any other money for the projects we decided to fund.

The handicapped ramps refer to corner cuts in sidewalk curbs which have been previously installed. The ADA rules changed the design criteria for these ramps. This money will be used to upgrade existing ramps to make them ADA compliant.

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Commentary

In the past we used CDBG funds to rehabilitate and improve our Public Therapy Pool at 28th and Oak streets. I was pleased to see the results early this year.

The sidewalk project on Riverside Avenue and 24th Street is one that has been planned for many years and is finally underway. The project as budgeted is nearly $39,000 short of money for completion. That money could be “found” if contingencies and inflation come in under budget. Some of it could also be found if we receive another Workforce Housing Reward from the State. We could make up part of it with the additional $11,000+ found in re-checking the figures for distribution. Or, we could advance the difference out of the General Fund and recover it from the 2010 CDBG funds.

Personally, I favor a wait and see attitude on the contingencies and would like to hold the option open on money needed over the minimum, 65%, available. The balance could be “loaned” from General Fund Reserves until the 2010 CDBG allocations.

That formula would make a full 15% available for public service which I believe is going to be the area of greatest need in the current economy and projections over the next two years. I also want to make sure that we do not exceed the 20% for administration and capacity building.

I welcome commentary, suggestions or additional information at my web email address (see the home page).

I believe that life and home saving requests such as Transitional Food & Shelter, El Camino Homeless Organization and People’s Self Help Housing are the most critical areas of immediate need. I agree that all of the others have tremendous value to the community but I currently am inclined to rank the next needs as 211, Lifestyles Recovery, Senior Nutrition, EOC programs, Literacy Council and Big Brothers/Big Sisters in that order.

Both the family and the teens’ peers must step up to the challenges that we face as a city and nation in trying economic times. This is a time for serious, responsible thought and action by all segments of our community. I believe our young people are a tremendous resource which we have neglected and which can be tapped for the benefit of everyone especially youth itself. The same is true of our “younger” senior citizens—and that age is increasing almost daily as medical advances become known and implemented.

In the past we had requests from the teen pregnancy counseling program and I don’t see any application from that group this year. However, I don’t believe that problem is behind us. I trust the schools and the teens themselves will step up to the plate in that regard and encourage responsible behavior.

I do not favor government redistribution of wealth but I do encourage people to consider offering a helping hand to those in need on a voluntary basis. As a public official I will try to act responsibly regarding programs that are established and with funds that are given over to my judgment for proper use.

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