Agenda Item D.2 DISCUSSION/ACTION ITEM Meeting Date: January 20, 2015

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1 Agenda Item D.2 DISCUSSION/ACTION ITEM Meeting Date: January 20, 2015 TO: FROM: Mayor and Councilmembers Vyto Adomaitis, Neighborhood Services & Public Safety Director CONTACT: Claudia Dato, Senior Management Analyst SUBJECT: Initiation of Combined Community Development Block Grant (CDBG) and Goleta City Grant Programs RECOMMENDATION: A. Review the new Combined Grant Application Form for the Community Development Block Grant (CDBG) and Goleta City Grant Programs and authorize staff to initiate a combined application cycle covering both grant programs; and B. Allocate funding from the General Fund in the amount of $73,000 and from the CDBG Fund in the amount of $27,000 for a total of $100,000 to the combined grant program for Fiscal Year , subject to adoption of the two-year budget. BACKGROUND: For the past several years the City Council has allocated funding from the General Fund to award grants to applicants sponsoring projects of benefit to Goleta residents and the community. At the Council meeting on April 15, 2014, the City Council renamed the former Community Project Grants program to the Goleta City Grant Program, and increased the maximum grant amount from $2,500 to $3,500. These grants have historically been awarded to organizations involved in educational and cultural activities, such as music, art, dance, and recreation as well as Goleta-oriented special events and regional projects that enhance and support the quality of life in Goleta, whereas Community Development Block Grant (CDBG) funds typically support non-profits engaged in providing services to low-income residents. Up until this current fiscal year (FY), the budget for the City grants was approximately $20,000. For FY , the City Council increased the amount of grant funding collectively to $100,000 inclusive of the annual CDBG funding received by the U.S. Department of Housing and Urban Development (HUD) (which has averaged about $30,000 for public services). As a result, Council awarded $71,000 from the General Fund in Goleta City Grants to outside agencies, in addition to the CDBG grants. 1

2 Meeting Date: January 20, 2015 The other change that occurred in spring 2014 was the transfer of the Goleta City Grant Program from the City Manager s Office into the Neighborhood Services and Public Safety Department where the CDBG program has resided for several years. The transfer was intended to improve coordination and consistency between the two programs. As part of this transfer, Council discussed the possibility of combining the application cycles for the two grant programs and even creating a new single application for grant funding that could be used to cover both programs. Up until now, the two grant programs frequently had application cycles that overlapped but had different deadlines, and used two significantly different application forms, causing at times confusion among potential applicants. The CDBG application was considerably more lengthy and onerous than the Goleta City Grant application form due to the additional federal requirements that accompany the CDBG program. Seeing the potential benefits and efficiencies, at their April 15, 2014 meeting, Council directed staff to return with a combined grant application form that could be used to conduct a single application cycle covering both grant programs. DISCUSSION: Staff has been working on a combined application form that can be used by organizations to apply for grant funds from the City, whether they be CDBG or Goleta City Grant funds (Attachment 1). In the course of putting together the application, staff contacted several other jurisdictions and found that most also offer both CDBG and some kind of other City/County funded grants. Most of these jurisdictions maintain two separate applications due to the additional requirements imposed by HUD for CDBG funding, and the fact that not all applicants meet the criteria for federal funding or are equipped to deal with the burdensome reporting requirements of the CDBG program. The City of Santa Barbara and the City of Lompoc do utilize a single application for both types of grants and operate a single grant cycle covering both. They have similar systems whereby one grant cycle is conducted annually; applicants seeking funding complete a single application; and applications are then reviewed by a grants review committee that makes recommendations regarding which applicants should receive a grant and for what dollar amount. In addition, prior to consideration of applications by their respective grant review committees, staff identifies the applicants most qualified and most adept at meeting the federal requirements for the CDBG program. Should Council wish to proceed with a single application for CDBG and Goleta City Grant funds, staff recommends that this process be duplicated. Staff s identification of applicants eligible to receive CDBG funds will aid the Grants Review Committee in determining grant amounts since the Goleta City Grant has a $3,500 maximum and there is currently no maximum amount for a CDBG grant (other than it could not exceed 15% of the City s annual allocation). Only applicants eligible to receive a CDBG award could receive an amount in excess of $3,500. However, it should be noted that this $3,500 cap was established by Council and it is Council s prerogative to establish a new maximum or eliminate it altogether if so desired. Page 2 of 3 2

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4 ATTACHMENT 1 Combined Application Form for CDBG and Goleta City Grant Program 4

5 Received (Date/Time): For City of Goleta Staff Use Only 2015 COMBINED GRANT APPLICATION FORM FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) and GOLETA CITY GRANT PROGRAMS Submit Application to: City of Goleta Claudia Dato, Senior Management Analyst Dept. of Neighborhood Services & Public Safety 130 Cremona Drive, Ste. B Goleta, CA (805) Applications Due by 5:00 p.m. Thursday, February 19, 2015 Please contact Claudia Dato at cdato@cityofgoleta.org or for more information. Para información en español, por favor llame al (805) y pregunte por Vyto Adomaitis. 11 5

6 GRANT APPLICATION CHECKLIST APPLICANT NAME: The following documents must be submitted with the application: 1. One (1) original signed application and five (5) copies (paper clipped - not stapled) 2. Board of Directors Minutes or statement signed by the CEO, President, Vice-President, Board Chair, or Executive Director indicating approval of this application. 3. Financial Audit Report from the most recently completed Fiscal Year, including management letter (FY ending June 30, 2014). If audit has not been completed, submit unaudited Financial Statements 4. Federal 990 Tax Return for the applicant s most recently completed Fiscal Year. 5. Attachment A Program Revenue and Expenses 6. IRS Federal Tax Exempt status letter. 7. State of California Franchise Tax Board letter attesting to state tax exempt status. 8. Articles of Incorporation (if applicable), stamped by the Secretary of State. 9. main application form/narrative in Microsoft Word to cdato@cityofgoleta.org I have included all of the items on this list. Signature of Executive Director or Board Chair Date Please Submit Original Application with Copies to: City of Goleta Neighborhood Services Dept. Attn: Claudia Dato 130 Cremona Drive, Suite B Goleta, CA APPLICATIONS MUST BE RECEIVED AT THE ABOVE ADDRESS NO LATER THAN 5:00 PM ON THURSDAY, FEBRUARY 19, THE NARRATIVE PORTION OF THIS APPLICATION MUST ALSO BE ED IN MICROSOFT WORD TO cdato@cityofgoleta.org 2 6

7 PROGRAM OR EVENT TITLE AGENCY/ORGANIZATION MAILING ADDRESS CONTACT PERSON, TITLE TELEPHONE # ADDRESS PROGRAM/EVENT ADDRESS (if different from above) ESTIMATED NUMBER OF UNDUPLICATED GOLETA RESIDENTS TO BE SERVED TARGET POPULATION REQUESTED GRANT AMOUNT* (see below advisory) CITY OF GOLETA APPLICATION FOR GRANT FUNDS FISCAL YEAR PROGRAM SUMMARY BRIEFLY DESCRIBE PROGRAM OR EVENT This application for funds has been reviewed and approved by the organization s Board of Directors as evidenced by the signature on this page and copy of the meeting minutes from the Board of Directors, attached. If your organization does not have a Board of Directors, please indicate NA on that signature line and have the Organization s Director sign. Under penalty of law, in signing this application I declare that to the best of my knowledge all statements and figures contained herein are true, accurate and complete. SIGNATURE President or VP of the Board SIGNATURE Agency/Program Director NAME NAME DATE DATE *ADVISORY: Goleta City Grants have a maximum award amount of $3500. CBDG awards, subject to strict federal qualifications and reporting requirements, may exceed this amount. City Staff will make a determination as to whether your application meets the requirements of the CDBG program which is directed at providing public services to low-income residents. 3 7

8 Agency/Program name: 4 Section A AGENCY INFORMATION 1. Provide the Organization s Mission Statement: 2. How does the program or event for which you are seeking funding fit the mission of the organization? 3. Is your organization currently: Incorporated? Yes In Progress Non-profit? Yes In Progress Tax-exempt? Yes In Progress Federal Employee ID # (EIN) Dun & Bradstreet # (DUNS) Does your organization have current registration with the Central Contract Registry (CCR)? (Required of applicants seeking federal CDBG funds) 4. Attach the organization s/agency's organizational chart. Circle the proposed program, if applicable, to show how it relates to the whole agency. 5. Does your facility, program or event have any barriers that would prevent a person with a disability (verbal, visual, physical, cognitive, etc.) from gaining employment, attending meetings or obtaining services? Yes No If so, what measures do you take to provide persons with disabilities alternative access to your facility, program or event? 6. Please check the boxes that most accurately reflect the program, event or activity for which you are seeking funding: One-time or annual community event (concert, creek cleanups, festival, etc.) Youth Programs (sports, educational, performing arts, etc.) Senior Programs (food/nutrition, educational programs, day activities, etc.) Other miscellaneous community programs (Ex: animals welfare, parental classes) Public services for low-income residents Services for the homeless Other (please describe) 4 8

9 Agency/Program name: 5 AGENCY/ORGANIZATION INFORMATION 7. BOARD OF DIRECTORS (If not applicable, indicate NA here) NAME CITY/ZIP CODE GENDER RACE/ ETHNICITY YEARS ON BOARD OCCUPATION/OTHER AFFILIATIONS MAKE A COPY OF THIS SHEET IF MORE SPACE IS NEEDED (attach as page 4a) Term of office Regular meeting date List actual dates of previous 3 meetings How many Board Members are authorized by your organization s by-laws? Are any Board Members paid by the agency? If so, please specify 5 9

10 Agency/Program name: 6 PROGRAM INFORMATION 8. Describe the proposed program or event, how it will operate (days, hours, eligibility, etc.), how it will be monitored and the people you intend to serve (target population). 9. How do you measure the impact or define the success of this program/event? 10. Please list the following: 1) Number of Goleta residents your agency typically assists per year: 2) Approximate number of Goleta residents your project or event(s) will assist or serve in the following year if funded: 11. The U.S. Department of Housing and Urban Development (HUD) requires that CDBG funding support programs/activities that serve low-income people. Organizations receiving CDBG funds are required to obtain intake data from each client or family served. In order to determine whether your organization is eligible to receive CDBG funds, please answer the following: Does the program you are seeking grant funds for serve low-income people? If yes, does your agency obtain documentation from clients on their income (e.g. tax returns, pay stubs)? Does your intake sheet or process obtain the following: 1. Name Yes No 2. Address or City last resided in Yes No 3. Number of family members Yes No 4. Total family (household) income Yes No 5. Race and Ethnicity Yes No If your organization does not obtain proof of income, will the program for which you are seeking funding serve any of the following: (check all that apply) Abused Children Battered Spouses/Victims of Domestic Violence Elderly Persons (age 62 and up) Severely Disabled Persons (Proof of Age Required) Migrant Farm Workers Homeless Persons Persons with HIV/AIDS 10

11 Agency/Program name: 7 PROGRAM INFORMATION If your agency or organization serves any of the above populations listed under Question 11, please complete the following: Report the actual unduplicated number of clients your agency/organization served from July 1, 2013 through June 30, 2014 (or for calendar year 2014). One person can only be counted one time, even though the client may have been served many times during the reporting period. Calculate the totals and percentage for each category. Income Level* Eligible Income Limit # Served by Agency in the Income Range # of Goleta Residents served by Agency in the Income Range Extremely Low 0-30% MFI Very Low 31-50% MFI Low Lower- Upper Moderate 51-80% MFI 80%-120% MFI Total Households Served Percentage of CDBG Income Eligible Persons Served (0%-120% MFI) * Refer to current Federal Income Guidelines. HUD 2014 INCOME Guidelines (Effective March 4, 2014) 11

12 Agency/Program name: 8 FINANCIAL INFORMATION 15. When was your organization/agency last audited? (attached copy) Were there any findings or concerns? If yes, please explain below: 16. How often does your Agency s Board of Directors review and approve financial statements? 17. Is there a fee charged or donation suggested for your services/event? If yes, attach a copy of the fee schedule. 18. Specifically state how the requested funds be used (i.e. salaries, supplies)? If the funds will be used to pay staff salaries, would you be able to keep accurate time and activity records that can track the number of hours and work activity being charged to the grant? 19. Statement of Financial Position (from the most recent fiscal year's audit). ASSETS, LIABILITIES AND NET ASSETS Total Assets $ Total Liabilities $ Total Net Assets $ Total Liabilities and Net Assets $ 20. Does your organization have any past due obligations with any funding source (e.g. disallowed costs or unearned grants from a previous contract)? If yes, explain: 21. In the last 3 years, has your organization had an IRS or State levee? If yes, are you on a repayment schedule? How was the matter resolved? Explain below: 12

13 Agency/Program name: 9 ATTACHMENT A PROGRAM REVENUE/EXPENSES List total revenue and expenses for the Program/Event to be funded according to the sources and time periods listed below. REVENUE SOURCES City of Goleta CDBG Funds Goleta City Grant Funds County Funds School District Funds State Funds Federal Funds Foundations/Trusts Donations United Way Special Fundraising Events Client Fees (Incl. 3rd Party) Other Current Year 7/1/14-6/30/15 Proposed 7/1/15-6/30/16 TOTAL PROGRAM REVENUE $ $ EXPENSES Current Year 7/1/14-6/30/15 Proposed Year 7/1/15-6/30/16 Proposed Use of City Grant Funds Salaries, Benefit, Payroll Taxes Consultants and Contracts Facility, Utilities, Maintenance Telephone, Fax Supplies Postage & Shipping Marketing (Printing, Advertising) Travel, Mileage, Training Equipment Rental/Maint. Insurance Other* TOTAL PROGRAM EXPENSES $ $ $ NET EXCESS/DEFICIT $ $ 13