AGENDA CAPTION:
Title
Receive staff presentation on the status of current projects and potential reallocation of remaining Community Development Block Grant - Coronavirus Response (CDBG-CV) funding to new programs and provide staff direction.
Body
Meeting date: December 6, 2022
Department: Planning and Development Department
Amount & Source of Funding
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Fiscal Note:
Prior Council Action: On June 18, 2019, City Council approved by Resolution 2019-121R the Program Year 2019-2020 Community Development Block Grant Entitlement Action Plan (“the 2019 CDBG Action Plan”). The following amendments have been made to the 2019 CDBG Action Plan:
Amendment One - March 3, 2020, Resolution 2020-54R to reallocate $67,142.00 from the Unsafe Structures Program to the Southside Community Center Rehab Program.
Amendment Two - June 16, 2020, Resolution 2020-131R to add the Community Development Block Grant-Coronavirus (CDBG-CV) allocation of $425,261 and to approve the following programs for the use of $319,731 of those funds: ReviveSMTX Small Business Recovery $200,000, Court Appointed Special Advocates (CASA) $55,600, and Administration $64,131.
Amendment Three - August 4, 2020, Resolution 2020-162R to reallocate $125,000 from the Paul Pena Park project to a new program for Substandard Home Demolition.
Amendment Four - August 4, 2020, Resolution 2020-163R to award $105,530 to Hays County to increase or improve COVID-19 testing in the City of San Marcos.
Amendment Five - January 29, 2021, Resolution 2021-19R to award $567,825 in additional CDBG-CV funding for the design and administration of a rent, mortgage, and utility relief program to Community Action Inc and BR3T.
City Council Strategic Initiative: [Please select from the dropdown menu below]
COVID Response
Workforce Housing
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
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☒ Neighborhoods & Housing - Diversified housing options to serve citizens with varying needs and interests
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☒ Core Services
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Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
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Background Information:
The programs funded by CDBG-CV have ended, and money remains that can be reallocated to new CDBG-CV programs.
The Revive SMTX small business recovery program has successfully completed. It had a $200,000 allocation. Applications slowed dramatically over the months prior to closing the program, and it was decided to end the program as of September 30, 2022. This program assisted 40 businesses with reimbursements of COVID-19 related expenses up to $5,000 each. This program has $52,000 available for reallocation to a new program.
The $105,530 funding allocated to Hays County to increase or improve COVID-19 testing was not needed and is available for reallocation to a new program. Of federal dollars, CDBG must be “last in”, and other federal funding has covered the cost of testing. City and County staff conferred on alternatives for spending the funding and in the end concurred that a County program could not be identified that met the criteria. Interim City Manager Reyes notified the County on August 17, 2022, that the City intends to reallocate this funding.
Court Appointed Special Advocates (CASA) was funded $55,600 and had expended all funding by June 30, 2022. The original expectation was that 30 children from San Marcos would be served; the final number was 22. All funding was expended as CASA staff met needs for hearings and trained volunteers to be advocates.
The rent, mortgage, and utilities relief program designed and run by Community Action and BR3T received an additional $174,399 in General Fund (formerly Coronavirus Relief Fund) dollars to add to the $567,825 in CDBG-CV funding. The total amount of $742,224 was expended. Of that, $643,368 (87%) assisted 221 households, and the remaining $98,856 (13%) was spent on program design and administration.
In addition to the above programs, $64,131 (15%) of the first tranche of funds was allocated to City staff administration of the CDBG-CV funds. Staff track their hours spent on this program, and so far $26,596.51 has been spent, with an expected $6,650.00 additional to be reserved for administration. This leaves $30,884.49 to be reallocated.
Total CDBG-CV funding is $993,086. The City is required to have expended 80% by August 24, 2023, and so far the City has expended $792,993.15 (80%).
In summary, the following CDBG-CV funding is available to be reallocated to new programs:
Approved Program Amount Available for Reallocation
Revive SMTX: $52,028.36
COVID-19 Testing: $105,530.00
CASA: $0.00
Rent/Mortgage/Utilities $0.00
Administration $30,884.49
TOTAL $188,442.85
With the passage of time, it has become increasingly difficult to prove a tie to the pandemic by collecting data from individuals - for example, a rent relief program would need to show that each family was individually impacted by the pandemic in some way in order to provide funding to that family. Therefore, for remaining CDBG-CV funding, cities are looking to parks and open space programs that serve families below the CDBG income threshold. Parks and open space programs help prevent disease by encouraging a healthy lifestyle and by providing outdoor recreation instead of crowding indoors. The program itself provides the tie to the pandemic, and the families just have to meet the income criteria. Staff believed the most efficient way to ensure that a program would meet all the criteria was to find existing programs that will meet needs of San Marcos families and individuals, and therefore conducted a search for programs.
After a search, staff contacted Candlelight Ranch after finding Project HEAL on their website. Project HEAL is a family program designed to alleviate fear, anxiety, and stress associated with COVID-19. Customized day visits for special needs families, military/veteran families, foster families, immigrant families and low-income families are possible. Families have the opportunity to spend the day immersed at the ranch where they engage in safe and accessible activities. Candlelight Ranch is excited about the possibility of a scholarship program for San Marcos families, who otherwise could not afford it, to experience Project HEAL. Their proposal is attached, and totals approximately $76,000.
Staff also reached out to the City’s Parks Department to inquire about CIP projects in need of funding that could use the remaining funds. Attached is a proposal for improvements to Kenneth M Copeland Park (formerly El Camino Real Park), that total approximately $158,000. Funding from local partners totals approximately $12,000, leaving $146,000 unfunded, of which $112,443 is available from CDBG-CV if the Candlelight Ranch proposal is approved. The proposal includes picnic tables, shade structures, a pavilion, and a skate feature that has the same design as the one at Dunbar Park. This provides features for families to gather outside instead of crowding indoors, which assists with preventing the spread of disease. This park serves two existing neighborhoods and will also serve a new, senior, multifamily development and a new single-family development currently process.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
The next step for allocating these CDBG-CV funds is to create an amendment to the Program Year 2019-2020 Community Development Block Grant Action Plan. Staff is seeking direction from City Council to bring forward an amendment that proposes the allocation of $76,000 to Candlelight Ranch and the remainder, $112,442.85, to the City of San Marcos Parks and Recreation Department. If so directed, a public hearing will be held at the January 3, 2023, City Council meeting, followed by a thirty-day comment period. Council approval would be requested February 7, 2023.