HomeMy WebLinkAboutCommittee of the Whole Packet for 10/02/2017
AGENDA
Committee of the Whole Meeting
6:30 PM - Monday, October 2, 2017
7th Floor, Council Chambers, 7th Floor, City Hall – 1055 S. Grady Way
1. 2018 CDBG FUNDING ALLOCATIONS
a) AB - 1985 Community & Economic Development Department recommends setting a
Public Hearing on October 2, 2017 to receive public comment and to consider the City's
proposed allocation of 2018 Community Development Block Grant (CDBG) funds for
human services and economic development activities.
b) Presentation
AB - 1985
City Council Regular Meeting - 11 Sep 2017
SUBJECT/TITLE: 2018 Community Development Block Grant (CDBG) Funds
RECOMMENDED ACTION: Refer to Committee of the Whole
DEPARTMENT: Community & Economic Development
STAFF CONTACT: Cliff Long, Economic Development Director
EXT.: 6591
FISCAL IMPACT SUMMARY:
The City will receive an estimated $626,537 in CDBG funds to support human services and public improvement
activities.
SUMMARY OF ACTION:
CDBG funds can provide a source of funding to provide public facilities and improvements in the City’s priority
revitalization areas (Downtown/South Renton and Sunset) in 2018. The Program’s selected projects will
improve accessibility and safety for pedestrians in areas where improvements are made, as well as bring
sidewalks and associated infrastructure up to current City standards, while also serving as an economic
development catalyst within the designated areas. Furthermore, the improvements will benefit the area’s
residents, including low- and moderate-income persons. Allocation of other CDBG funds to satisfy contractual
set-asides per the Joint Agreement will ensure that important human service programs provided by King
County to Renton residents will continue. The switching of projects and progr ams approved by Council for the
City’s 2016 and 2017 CDBG funding cycles will ensure timely commitment and expenditure of those important
funds per HUD regulations.
By scheduling a public hearing for October 2, 2017, the Council will provide an opportunit y for public comment
on the allocation of the City’s 2018 CDBG funding for human services and public improvement/facilities, and
modification to the 2017 contingency plan which includes unallocated 2016 funds.
EXHIBITS:
A. Issue Paper and maps
STAFF RECOMMENDATION:
Authorize a public hearing date on October 2, 2017, for public comment on the City's proposed allocation and
use of 2018 CDBG funds for human services and economic development activities.
AGENDA ITEM #1. a)
DEPARTMENT OF COMMUNITY
& ECONOMIC DEVELOPMENT
M E M O R A N D U M
DATE: September 1, 2017
TO: Armondo Pavone, Council President
Members of Renton City Council
VIA: Denis Law, Mayor
FROM: Chip Vincent, Community & Economic Development Administrator
STAFF CONTACT: Cliff Long, Economic Development Director
John W. Collum, Community Development Project Manager
SUBJECT: 2018 Community Development Block Grant (CDBG) Funds
ISSUE:
Should the City of Renton hold a public hearing to provide an opportunity for public comment
on its use of 2018 CDBG funds for human services and public improvement/facilities, and
modification to the 2017 CDBG contingency plan which includes unallocated 2016 CDBG funds?
RECOMMENDATION:
Authorize a public hearing date on October 2, 2017 for public comment on the City's proposed
allocation and use of 2018 CDBG funds for human services and public improvement/facilities,
and modification to the 2017 CDBG contingency plan which includes unallocated 2016 CDBG
funds.
BACKGROUND SUMMARY:
2018 Funding
The City of Renton is required to hold a public hearing to provide an opportunity for public
comment on its proposed allocation and use of 2018 CDBG funds. Staff recommends that
Council set October 2, 2017 as the public hearing date. Upon approval of the date, the City
Clerk will publish a public notice announcing the hearing date. Representatives of the
Community & Economic Development (CED) and Community Services departments will brief
Council’s Committee of the Whole on the proposed allocation and use of the 2018 funds on
October 2 (prior to the public hearing).
Over the past several years, Council has approved using these valuable federal dollars for City-
managed human services and economic development activities, along with King County-
operated human services activities that are typically funded through this source. In 2018, the
AGENDA ITEM #1. a)
Armondo Pavone, Council President
Page 2 of 5
September 1, 2017
City is estimated to receive $626,537 in CDBG funds. From that amount, the City must first
provide contractual set-asides per the City’s joint agreement for CDBG funding with King
County (“Joint Agreement”), some of which fund important human service programs that
provide valuable assistance to Renton residents. The set-asides and corresponding amounts
consist of:
County Administration: $62,654
County Capital Administration: $12,531
Housing Stability Program: $31,327
(provides rent and mortgage assistance to
prevent individuals or families from eviction)
King County Housing Repair Program: $125,307
(provides interest-free loans and emergency grant services to
low- and moderate-income homeowners to repair their homes)
The net amount available for the City's use after set-asides is estimated to be $394,718.
Of the remaining $394,718, the City proposes to allocate $62,654 for Planning and
Administration (or the maximum amount allowed), leaving a discretionary balance of $332,064.
For this discretionary balance of 2018 CDBG funding, CED has created the Public Facilities and
Improvements Program for the Downtown/South Renton and Sunset areas (the “Public
Improvements Program”). The Public Improvements Program will improve accessibility and
safety for pedestrians in areas where improvements are made, as well as bring sidewalks and
associated infrastructure up to current City standards. Public Improvements Program activities
will replace deteriorated or substandard sidewalks, widen sidewalks, and/or fill in missing
sidewalk gaps or sections in selected areas of the combined Downtown and South Renton
subareas of the City Center community and the Sunset area (see attached maps).
Each specific project to be funded through CDBG must be an eligible activity under the U. S.
Department of Housing and Urban Development regulations (“HUD regulations”), meet a
national objective in accordance with HUD regulations, and comply with the Joint Agreem ent.
In this case, the Public Improvements Program has been designed to target the HUD CDBG
national objective of “Low- and Moderate-Income Area Benefit”. The area benefit objective
requires that at least 51% of the residents residing in a primarily residential area are low - and
moderate-income persons. Utilizing census data per HUD regulations, staff has determined
that the Downtown/South Renton and Sunset areas meet this requirement.
CDBG funds may be used for the acquisition, construction, reconstruction, rehabilitation, or
installation of public improvements or facilities, including sidewalks, streets and parks amongst
others. In addition to the direct benefits improved public areas will provide residents of the
Public Improvements Program areas, CED believes that providing these improvements and
AGENDA ITEM #1. a)
Armondo Pavone, Council President
Page 3 of 5
September 1, 2017
facilities will serve as an economic development catalyst to continue existing and encourage
additional private development projects within the City’s two revitalization areas.
A range of projects and opportunity locations have been identified that may benefit from the
2018 funding, such as:
o Augment improvements already planned by the City through Downtown’s one-
way conversion projects at Wells, Williams and Main avenues. Intersection
improvements and sidewalk replacement are planned along S. 3rd Street
between Burnett and Main; Wells Avenue S between S. 2nd and 5th streets;
Williams Avenue S between S. 3rd and 5th streets; and Main Avenue S between S.
2nd and 3rd streets. The Public Improvements Program can assist with
improvements that will bring the public realm of the blocks in between the
intersections up to current standards that include level and accessible sidewalk
surfaces, better pedestrian-level lighting, additional trees and landscaping, and
essential street furniture.
o Connect the two blocks between the Burnett Linear Park South (and playground)
and Piazza Park with an off-street, landscaped linear walking path/park providing
safe access between the two public parks (Burnett between S. 3 rd and 5th
streets). The east side of the Burnett block between S. 3rd and 4th streets is
currently missing a sidewalk. The improvements will expand parkland and open
space, while creating a safe, accessible walking route for residents from South
Renton to the Downtown Civic Core.
o Improve pedestrian amenities and safety by providing sidewalk and associated
infrastructure improvements in the Sunset area. The improvements will create
safe, accessible walking routes to schools, the public library, parks, and
community facilities in support of the Sunset Area Community Planned Action
adopted by Council in 2011.
The 2018 CDBG funding is not sufficient to fund all of the opportunities listed above. The Public
Improvements Program intends to select a project or projects based upon a combination of the
following criteria (no particular order):
1. Will the CDBG funding adequately fund the project, either as stand-alone funding or in
combination with other funding that has been readily identified and secured?
2. If the project is funded, will it be implemented and completed in sufficient time to meet
required HUD regulations?
AGENDA ITEM #1. a)
Armondo Pavone, Council President
Page 4 of 5
September 1, 2017
3. Will CDBG provide funding that would allow the project to move forward faster than
awaiting other potential funding sources, based upon the viability of those other
sources?
2018 Contingency Plan
As funding numbers are estimates only at this time, HUD requires a contingency plan be
adopted. Should the City’s 2018 CDBG allocation increase, after funding planning and
administration to the maximum allowable amount, the increased amount from the actual
allocation or any recaptured funds will go to the Public Improvements Program. Any decreases
in the allocation will decrease the amount provided to the Public Improvements Program. In
the event the Public Improvements Program has funds that are not under contract by
December 31, 2018, and/or the City has program income for 2018, staff recommends those
funds be used for the City’s Healthy Housing Program. For approximately every $15,000 in
funding, Healthy Housing proposes to replace the roof and add/improve ventilation to minimize
moisture/mold issues for one household. Healthy Housing clients will be selected from current
Housing Repair clients. Funds will first be targeted to the Housing Repair clients residing in the
Sunset area. If there are not enough households identified for Healthy Housing services in that
area after appropriate outreach is completed, then Housing Repair clients citywide will be
eligible for Healthy Housing services.
2016 and 2017 Funding
For the City’s discretionary 2016 CDBG funding, Council approved using approximately
$318,000 for the Downtown Commercial Rehabilitation and Façade Improvement
Loan Program (“Façade Program”). The Façade Program, originally created in 2014, has thus far
provided loans for three downtown properties. Along with a small balance from 2015 and the
approved 2016 CDBG funds, CED has been promoting the Façade Program to downtown
property and business owners. While several have expressed interest, only one new property
owner is presently interested in the program’s funding. An application for the property (700 S.
3rd Street) is expected in the next 30 days. CED is also discussing amendments to agreements
with two existing loan recipients representing the Cortona and Vigor Life buildings for
additional funds to cover cost overruns and certain façade improvements not covered in the
original funding. However, the new project and amendments to existing agreements will take
several more weeks to finalize and bring forward for approval. CED would also like to amend
the Façade Program as well as the King County Action Plan to make the Sunset low-moderate
income area (as discussed above) eligible for funding should the approved funds not be
committed to downtown properties within HUD-required timeframes.
In order to ensure timely expenditure of 2016 funds in accordance with HUD regulations, the
following projects approved by Council for CDBG funding in 2017 will be funded by 2016 CDBG
funds.
AGENDA ITEM #1. a)
Armondo Pavone, Council President
Page 5 of 5
September 1, 2017
Microbusiness Enterprise Training $ 25,000
Healthy Housing Repair Program $ 75,000
Renton Senior Activity Center ADA $230,109
Using 2016 funds to fund these projects that are ready to move forward now ensures Renton’s
compliance with HUD regulations and allows the 2017 CDBG funds to be used to fund the
Façade Program originally approved for 2016 CDBG funds. 2017 funds are expected to be
available starting late October 2017, which will fit the timing necessary for the anticipated
Façade Program projects noted above. Essentially, by swapping the fund years, projects ready
to move forward have the funding to do so, and the Façade Program will have the funds
available when they are ready to move forward later this year.
2017 Contingency Plan Changes
For 2017, the approved contingency plan called for any increases in funding to be directed to
the Senior Activity Center project. The project is presently starting construction, and it appears
a total amount of the $26,752 is not necessary for the project. Staff proposes to amend the
2017 contingency plan to allocate $2,000 of the funds for the Senior Activity Center project
contingency, $9,057 to the Façade Program, and $15,695 for the Microbusiness Enterprise
Training 2018 program.
CONCLUSION:
CDBG funds can provide a source of funding to provide public facilities and improvements in the
City’s priority revitalization areas (Downtown/South Renton and Sunset) in 2018. The
Program’s selected projects will improve accessibility and safety for pedestrians in areas where
improvements are made, as well as bring sidewalks and associated infrastructure up to current
City standards, while also serving as an economic development catalyst within the designated
areas. Furthermore, the improvements will benefit the area’s residents, including low- and
moderate-income persons. Allocation of other CDBG funds to satisfy contractual set-asides per
the Joint Agreement will ensure that important human service programs provided by King
County to Renton residents will continue. The switching of projects and programs approved by
Council for the City’s 2016 and 2017 CDBG funding cycles will ensure timely commitment and
expenditure of those important funds per HUD regulations.
By scheduling a public hearing for October 2, 2017, the Council will provide an opportunity for
public comment on the allocation of the City’s 2018 CDBG funding for human services and
public improvement/facilities, and modification to the 2017 contingency plan which includes
unallocated 2016 funds.
AGENDA ITEM #1. a)
W i l l i a m s A v e S
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AGENDA ITEM #1. a)
AGENDA ITEM #1. a)
2018
Community Development Block Grant Funds
Allocation & Use and Related Actions
Briefing and Public Hearing
Presented to Committee of the Whole and
Renton City Council
October 2, 2017
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Community Development Block Grant
(CDBG) Funds Allocation & Use Summary
•For 2018, utilize $626,537 in new CDBG funds for King County
contractual set-asides, City planning and administration, and City
public facility and improvement activities.
•Modify 2017 CDBG Contingency Plan to allocate an increase in
funds of $26,752 from unallocated 2016 funds not needed for the
Renton Senior Activity Center ADA Improvements.
•Modify 2016 Action Plan to include Sunset low-moderate income
area as eligible to participate in the Downtown Commercial
Rehabilitation and Façade Improvement Loan Program.
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CDBG Background
•City of Renton receives an annual allotment of CDBG funds
via an agreement with King County.
–CDBG is a flexible program that provides communities with
resources to address a wide range of unique community
development needs.
–Program utilizes federal funding that is administered through the
U. S. Department of Housing and Urban Development (HUD).
•Beginning in 2015, City allocated discretionary CDBG funds to
be used for economic development and related activities.
•2018 allotment is estimated to be $626,537.
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CDBG 2018 Funding Plan
YEAR ACTIVITY NATIONAL OBJECTIVE AMOUNT
2018 King County Contractual Set-asides
-General Administration
-Capital Administration
-Housing Stability Program
-Housing Repair Program
Subtotal
Not Applicable
$ 62,654
$ 12,531
$ 31,327
$ 125,307
$ 231,819
City Planning and Administration Not Applicable $ 62,654
Public Facilities and Improvements
Program (“Public Improvements
Program”)
Low-and Moderate-Income
Area Benefit $ 332,064
2018 TOTAL $ 626,537
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Public Facilities and Improvements
Program
•Purpose
–Improve accessibility and safety for pedestrians in areas where
improvements are made;
–Bring sidewalks and associated infrastructure up to current City
standards;
–Replace deteriorated or substandard sidewalks, widen sidewalks,
and/or fill in missing sidewalk gaps or sections in selected areas
of the combined Downtown and South Renton subareas of the
City Center community and the Sunset area; and
–Serve as an economic development catalyst to continue existing
and encourage additional private development projects within
the City’s two revitalization areas.
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Public Facilities and Improvements
Program
•Potential Projects and Opportunity Locations:
–Augment improvements already planned in Downtown’s one way
conversion projects along Wells, Williams and Main avenues
–Connect the two blocks between Burnett Linear Park South and Piazza
Park with an off-street, landscaped linear walking path/park providing safe
access between the two public parks (Burnett Avenue S. between S. 3rd
and 5th streets)
–Improve pedestrian amenities and safety by providing sidewalk and
associated infrastructure improvements in the Sunset area.
•2018 CDBG funding is not sufficient to fund all of the opportunities listed
above.
•Program intends to select a project or projects based upon a combination of
criteria.
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2018 Funding Contingency Plan
King County requires a Funding Contingency Plan if HUD’s allocation
is greater or less than the 2018 estimated amounts:
•Any increases in entitlement or recaptured funds will go to the
Public Improvements Program
•Any decrease in entitlement will decrease the amount to the
Public Improvements Program
•Any 2018 Public Improvements Program funds not under
contract by December 31, 2018 will be recaptured and
reallocated to the Healthy Housing program
•Any program income will be allocated to the Healthy Housing
Program, focusing on Sunset area homes.
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b
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2017 Contingency Plan Amendment
•Modify the 2017 Contingency Plan to allocate an
increase in funds of $26,752 from unallocated 2016
funds not needed for the Renton Senior Activity Center
ADA/Barrier Removal Project to provide:
–$2,000 for C16454/Senior Activity Center project contingency
–$9,057 for C16753/Façade Improvement Loan Program
–$15,695 for C17152/Microbusiness Enterprise Training for the
2018 program.
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2016 Action Plan Amendment
•Modify the 2016 Action Plan to include the Sunset low-
moderate income area as eligible to participate in the
Downtown Commercial Rehabilitation and Façade
Improvement Loan Program.
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Recommendation
•On October 2, 2017, staff briefed the Committee of the
Whole (COW) on the recommended allocation and use
of the City’s 2018 CDBG funds and Contingency Plan,
amendment to the 2017 Contingency Plan, and
amendment to the 2016 Action Plan, as provided in the
staff presentation and issue paper.
•Council holds Public Hearing on October 2, 2017 (per
public notice) to provide opportunity for public
comment on the recommended allocation and use plan
and amendments.
•Following public hearing and consideration of public
comment, Council is requested to approve a COW
Committee Report recommending concurrence with
staff recommendation and proposed changes (if any)
based upon any Council discussion.
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