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HomeMy WebLinkAbout2022-59, Adopting Amendment #1 to the 2017 CDBG Annual Action PlanCity of East Wenatchee Resolution No. 2022-59 with Exhibit A, B, and C Retain Resolution until no longer needed for City-business, then transfer to Washington State Archives (GS50-05A- 16 Rev. 1). Page 1 of 3 City of East Wenatchee, Washington Resolution No. 2022-59 A Resolution of the City of East Wenatchee, Washington, adopting Amendment #1 to the 2017 Annual Action Plan, Amendment #1 of the 2018 Annual Action Plan and Amendment #3 to the 2019 Annual Action Plan in accordance with the requirements of the U.S. Department of Housing and Urban Development regulations at 24 CFR Part 91, amending Resolutions 2017-07, 2018-13, 2019-17, 2020-16, and 2021-03 and establishing an effective date. 1.Alternate format. 1.1. Para leer este documento en otro formato (español, Braille, leer en voz alta, etc.), póngase en contacto con el vendedor de la ciudad al alternateformat@east-wenatchee.com, al (509) 884-9515 o al 711 (TTY). 1.2. To read this document in an alternate format (Spanish, Braille, read aloud, etc.), please contact the City Clerk at alternateformat@east-wenatchee.com, at (509) 884-9515, or at 711 (TTY). 2.Authority. 2.1. The City of East Wenatchee is a non-charter code City duly incorporated and operating under the laws of the State of Washington. 2.2. RCW 35A.74 authorizes the City to administer programs to assist low income individuals. 2.3. The U.S. Department of Housing and Urban Development regulations at 24 CFR Part 91 require entitlement communities to adopt a five-year consolidated plan, an annual action plan, and a consolidated annual performance and evaluation report (“CAPER”). 3.Recitals. 3.1. In 2009, the City of East Wenatchee (“City”) was notified by the U.S. Department of Housing and Urban Development (HUD) that it qualified as a federally designated “principal city” within the Wenatchee Metropolitan Statistical Area and was eligible for entitlement status to receive annual grants from the Community Development Block Grant Program (CDBG). 3.2. On August 25, 2009, the City Council of East Wenatchee (“City Council”) accepted entitlement status to become a direct recipient of CDBG funds. 3.3. On July 25, 2017, the City Council adopted the 2017 Annual Action Plan with passage of Resolution 2017-07. 3.4. On August 14, 2018, the City Council adopted the 2018 Annual Action Plan with passage of Resolution 2018-13. City of East Wenatchee Resolution No. 2022-59 with Exhibit A, B, and C Retain Resolution until no longer needed for City-business, then transfer to Washington State Archives (GS50-05A- 16 Rev. 1). Page 2 of 3 3.5. On August 8, 2019, the City Council adopted the 2019 Annual Action Plan with passage of Resolution 2019-17. 3.6. On May 19, 2020, the City Council adopted the Amendment #1 to the 2019 Annual Action Plan with passage of Resolution 2020-16. Amendment #1 allocated the Community Development Block Grant Coronavirus Aid, Relief and Economic Security Act “CDBG-CV” funds. 3.7. On February 2, 2021, the City Council adopted the Amendment #2 to the 2019 Annual Action Plan with passage of Resolution 2021-03. Amendment #2 allocated the Community Development Block Grant Coronavirus Aid, Relief and Economic Security Act “CDBG-CV3” funds. 3.8. On June 21, 2022, the City Council discussed allocation of CDBG funds. The City Council directed staff to prepare Annual Action Plan amendments for the 2017, 2018 and 2019 program years to reallocate the left over funds from those program years to the Hamilton Street Improvement project. 3.9. In compliance with the Citizen Participation Plan and the Limited English Proficiency Plan, the city published a notice of availability and notice of public hearing for substantial amendments to the 2017 Annual Action Plan, 2018 Annual Action Plan and the 2019 Annual Action Plan in The Wenatchee World on November 5, 2022 initiating a 30-day comment period ending on December 5, 2022. The notice was published in English and in Spanish. 3.10. The Draft Substantial Amendments and notice of availability and notice of public hearing was posted on the City’s webpage. 3.11. The City Council held a public hearing on December 6, 2022 to receive comments and consider adoption of the draft substantial amendments to the 2017 Annual Action Plan, 2018 Annual Action Plan and the 2019 Annual Action Plan. THE CITY COUNCIL OF THE CITY OF EAST WENATCHEE DO RESOLVE AS FOLLOWS: Section 1: Action. The City Council hereby APPROVES Amendment #1 of the City of East Wenatchee 2017 Annual Action Plan, which is attached to this Resolution as Exhibit “A”. Section 2: Action. The City Council hereby APPROVES Amendment #1 of the City of East Wenatchee 2018 Annual Action Plan, which is attached to this Resolution as Exhibit “B”. Section 3: Action. The City Council hereby APPROVES Amendment #3 of the City of East Wenatchee 2019 Annual Action Plan, which is attached to this Resolution as Exhibit “C”. Amendment #1 – 2017 Annual Action Plan Page | 1 City of East Wenatchee Community Development Block Grant Program Substantial Amendment to the 2017 Annual Action Plan Amendment #1: Reallocation of Funds December 6, 2022 Resolution 2022-59 Community Development Department 271 9th Street NE East Wenatchee, WA 98802 Phone (509) 884-5396 Fax (509) 886-6113 E-mail: clillquist@eastwenatcheewa.gov Exhibit A Amendment #1 – 2017 Annual Action Plan Page | 2 Background: The City of East Wenatchee became an entitlement community under Title 1 of the Housing and Community Development Act of 1974 in 2009. As such, the City receives federal funds annually from the U.S. Department of Housing and Urban Development (HUD) under the Community Development Block Grant (CDBG) Program. East Wenatchee’s CDBG program fiscal year is from October 1 through September 30. The 2020 – 2024 Community Development & Housing Consolidated Plan is the overall strategic plan for the use of CDBG funds. The annual action plans describe the City’s projects for a given year based upon the general goals and objectives in the Consolidated Plan. Minor amendments may be made to the Consolidated Plan or Annual Action Plan when the need arises. A substantial” amendment requires a public comment period and a public hearing. A “substantial” amendment to the Consolidated Plan or Annual Action Plan is defined as:  Projects with budgets of $25,000 or more – An increase or decrease of more than 25% of the budgeted amount (unless the decrease is caused by a budget under-run).  Projects with budgets of less than $25,000 – An increase or decrease of more than 50% of the budgeted amount (unless the decrease is caused by a budget under-run).  A change in purpose, scope, general location, or intended beneficiaries or the addition of a new project.  A change in the use of funds from one activity to a new project. The proposal amendment is considered a “substantial” amendment to the 2017 Annual Action Plan. Substantial Amendment #1 FY 2017 Annual Action Plan Amendment: Description: In the 2017 Annual Action Plan, $14,552 was obligated for administration and planning for CDBG Program. Only $3,469.76 was actually spent on administrative activities in 2017, leaving $11,082.24 unspent. The City is in jeopardy of losing additional CDBG Funds due to delays in spending the obligated funds. Reallocation of the funds described above to a project that can be completed in 2022 is essential. The following project was selected for the reallocated funds.  The 2022 Annual Action Plan obligated $121,887 to the Hamilton Street improvement project for installation of curb, gutter, sidewalk, parking (east-side only), stormwater facilities, water and sewer infrastructure upgrades, pavement restoration, and illumination in a residential neighborhood. An existing walking Exhibit A Amendment #1 – 2017 Annual Action Plan Page | 3 path will be improved linking the Hamilton St. to 9th St. NE. Standerfer St. will be improved with new curb, gutter, and sidewalk (north side only) between Hamilton St. and French Ave. This is a multi-year project with CDBG funds programed from 2020 and 2021. Additional funding for the Hamilton Street project comes from Douglas County Sales and Use Taxes, Douglas County Sewer District, East Wenatchee Water District, and City of East Wenatchee. The estimated cost of the project is $1,202,614. This substantial amendment will reprogram funds that are in jeopardy due to not being spent within HUD guidelines and propose the following changes in obligation of 2017 program year funds: 1. Administrative and planning funds for CDBG program – De-obligate $11,082.24. Total administrative funding will be $3,469.76. 2. Street improvements to Hamilton Avenue. Obligate $11,082.24. Total project funding will be $498,978.24 from 2017, 2018, 2019, 2020, 2021 and 2022 CDBG funds. Citizen Participation: A public notice of the proposed amendment and notice of public hearing was published in the Wenatchee World on Saturday, November 5, 2022 providing 30 days for the public to comment on the amendment. The notice was provided in English and Spanish notify the public to submit comments to be mailed to Curtis Lillquist, East Wenatchee Community Development Department, 271 9th Street NE, East Wenatchee, WA 98802. Faxed or e-mailed comments were also allowed: Fax 509.886.6113, E-mail clillquist@eastwenatcheewa.gov. The comment period ends on December 5, 2022. A copy of Amendment #1 to the 2017 Annual Plan was also posted on the City web site at www.eastwenatcheewa.gov. Exhibit A Amendment #1 – 2018 Annual Action Plan Page | 1 City of East Wenatchee Community Development Block Grant Program Substantial Amendment to the 2018 Annual Action Plan Amendment #1: Reallocation of Funds December 6, 2022 Resolution 2022-59 Community Development Department 271 9th Street NE East Wenatchee, WA 98802 Phone (509) 884-5396 Fax (509) 886-6113 E-mail: clillquist@eastwenatcheewa.gov Exhibit B Amendment #1 – 2018 Annual Action Plan Page | 2 Background: The City of East Wenatchee became an entitlement community under Title 1 of the Housing and Community Development Act of 1974 in 2009. As such, the City receives federal funds annually from the U.S. Department of Housing and Urban Development (HUD) under the Community Development Block Grant (CDBG) Program. East Wenatchee’s CDBG program fiscal year is from October 1 through September 30. The 2020 – 2024 Community Development & Housing Consolidated Plan is the overall strategic plan for the use of CDBG funds. The annual action plans describe the City’s projects for a given year based upon the general goals and objectives in the Consolidated Plan. Minor amendments may be made to the Consolidated Plan or Annual Action Plan when the need arises. A substantial” amendment requires a public comment period and a public hearing. A “substantial” amendment to the Consolidated Plan or Annual Action Plan is defined as:  Projects with budgets of $25,000 or more – An increase or decrease of more than 25% of the budgeted amount (unless the decrease is caused by a budget under-run).  Projects with budgets of less than $25,000 – An increase or decrease of more than 50% of the budgeted amount (unless the decrease is caused by a budget under-run).  A change in purpose, scope, general location, or intended beneficiaries or the addition of a new project.  A change in the use of funds from one activity to a new project. The proposal amendment is considered a “substantial” amendment to the 2017 Annual Action Plan. Substantial Amendment #1 FY 2018 Annual Action Plan Amendment: Description of Proposed 2018 Annual Action Plan Amendments: 1. Administrative and planning functions. In the 2018 Annual Action Plan, $10,000 was obligated for administration and planning for CDBG Program. Only $5,323 was actually spent on administrative activities in 2018, leaving $4,677 unspent. 2. Housing Authority of Chelan County and the City of East Wenatchee Seasonal Housing Conversion Project. This project involves the conversion of 18 seasonal housing apartments at their Heritage Glen project located at 665 3rd St. NE, East Wenatchee, to year-round units. The project will result in 16 one-bedroom apartments and 2 two-bedroom apartments for year-round use for eligible farmworkers. The project includes unit rehabilitation including new bathroom cabinets, replacement of flooring and countertops, new closets and other improvements to prepare them for year-round use. The cost estimate for the project Exhibit B Amendment #1 – 2018 Annual Action Plan Page | 3 was $69,300. The Housing Authority used $59,927 to complete the project, leaving $9,373 unspent. 3. Columbia Valley Housing Association Down Payment Assistance Program. This program involves assisting at least 3 low-income households with down payment assistance, closing costs and mortgage reduction to acquire existing single-family homes within the city limits of East Wenatchee. $53,469 was allocated from the 2018 award for this program. Only $35,000 was spent for the project due to the lack of homes within the city limits that are affordable to low-income buyers. There is still $18,469 from this program that remains unspent. The City is in jeopardy of losing additional CDBG Funds due to delays in spending the obligated funds. Reallocation of the funds described above to a project that can be completed in 2022 is essential. The following project was selected for the reallocated funds. Hamilton Street Reconstruction Project. The 2022 Annual Action Plan obligated $121,887 to the Hamilton Street street improvement project for installation of curb, gutter, sidewalk, parking (east-side only), stormwater facilities, water and sewer infrastructure upgrades, pavement restoration, and illumination in a residential neighborhood. An existing walking path will be improved linking the Hamilton St. to 9th St. NE. Standerfer St. will be improved with new curb, gutter, and sidewalk (north side only) between Hamilton St. and French Ave. This is a multi-year project with CDBG funds programed from 2020 and 2021. Additional funding for the Hamilton Street project comes from Douglas County Sales and Use Taxes, Douglas County Sewer District, East Wenatchee Water District, and City of East Wenatchee. The estimated cost of the project is $1,202,614. This substantial amendment will reprogram funds that are in jeopardy due to not being spent within HUD guidelines and propose the following changes in obligation of 2018 program year funds: 1. Administrative and planning funds for CDBG program – De-obligate $4,677. Total administrative funding will be $5,323. 2. Housing Authority of Chelan County and the City of East Wenatchee Seasonal Housing Conversion Project – De-obligate $9,373. Total project funding will be $59,927. 3. Columbia Valley Housing Association Down Payment Assistance Program – De- obligate $18,469. Total program funding will be $35,000. 4. Street improvements to Hamilton Avenue. Obligate $32,519. Total project funding will be $498,978.24 from 2017, 2018, 2019, 2020, 2021 and 2022 CDBG funds. Citizen Participation: A public notice of the proposed amendment and notice of public hearing was published in the Wenatchee World on Saturday, November 5, 2022 providing 30 days for the public to comment on the amendment. The notice was provided in English and Spanish Exhibit B Amendment #1 – 2018 Annual Action Plan Page | 4 notify the public to submit comments to be mailed to Curtis Lillquist, East Wenatchee Community Development Department, 271 9th Street NE, East Wenatchee, WA 98802. Faxed or e-mailed comments were also allowed: Fax 509.886.6113, E-mail clillquist@eastwenatcheewa.gov. The comment period ends on December 5, 2022. A copy of Amendment #1 to the 2018 Annual Plan was also posted on the City web site at www.eastwenatcheewa.gov. Exhibit B Amendment #3 – 2019 Annual Action Plan Page | 1 City of East Wenatchee Community Development Block Grant Program Substantial Amendment to the 2019 Annual Action Plan Amendment #3: Reallocation of Funds December 6, 2022 Resolution 2022-59 Community Development Department 271 9th Street NE East Wenatchee, WA 98802 Phone (509) 884-5396 Fax (509) 886-6113 E-mail: clillquist@eastwenatcheewa.gov Exhibit C Amendment #3 – 2019 Annual Action Plan Page | 2 Background: The City of East Wenatchee became an entitlement community under Title 1 of the Housing and Community Development Act of 1974 in 2009. As such, the City receives federal funds annually from the U.S. Department of Housing and Urban Development (HUD) under the Community Development Block Grant (CDBG) Program. East Wenatchee’s CDBG program fiscal year is from October 1 through September 30. The 2020 – 2024 Community Development & Housing Consolidated Plan is the overall strategic plan for the use of CDBG funds. The annual action plans describe the City’s projects for a given year based upon the general goals and objectives in the Consolidated Plan. Minor amendments may be made to the Consolidated Plan or Annual Action Plan when the need arises. A substantial” amendment requires a public comment period and a public hearing. A “substantial” amendment to the Consolidated Plan or Annual Action Plan is defined as:  Projects with budgets of $25,000 or more – An increase or decrease of more than 25% of the budgeted amount (unless the decrease is caused by a budget under-run).  Projects with budgets of less than $25,000 – An increase or decrease of more than 50% of the budgeted amount (unless the decrease is caused by a budget under-run).  A change in purpose, scope, general location, or intended beneficiaries or the addition of a new project.  A change in the use of funds from one activity to a new project. The proposal amendment is considered a “substantial” amendment to the 2017 Annual Action Plan. Substantial Amendment #3 FY 2019 Annual Action Plan Amendment: Description of Proposed 2019 Annual Action Plan Amendments: 1. Administrative and planning functions. In the 2019 Annual Action Plan, $27,000 was obligated for administration and planning for CDBG Program. $26,979 was actually spent on administrative activities in 2019, leaving $21 unspent. 2. Columbia Valley Housing Association Down Payment Assistance Program. This program involves assisting at least 3 low-income households with down payment assistance, closing costs and mortgage reduction to acquire existing single-family homes within the city limits of East Wenatchee. $58,695 was allocated from the 2019 award for this program. None of the funds allocated for this program was spent due to the lack of homes within the city limits that are affordable to low- income buyers. There is still $58,695 from this program that remains unspent. 3. Microenterprise Business Grants Program. This program was added to the 2019 Annual Action Plan with Amendment #1 which was approved by Resolution 2020-16. Exhibit C Amendment #3 – 2019 Annual Action Plan Page | 3 This program would assist up to 8 businesses with $5,000 grants. $35,000 was spent from this program leaving $5,000 unused. The City is in jeopardy of losing additional CDBG Funds due to delays in spending the obligated funds. Reallocation of the funds described above to a project that can be completed in 2022 is essential. The following project was selected for the reallocated funds. Hamilton Street Reconstruction Project. The 2022 Annual Action Plan obligated $121,887 to the Hamilton Street improvement project for installation of curb, gutter, sidewalk, parking (east-side only), stormwater facilities, water and sewer infrastructure upgrades, pavement restoration, and illumination in a residential neighborhood. An existing walking path will be improved linking the Hamilton St. to 9th St. NE. Standerfer St. will be improved with new curb, gutter, and sidewalk (north side only) between Hamilton St. and French Ave. This is a multi-year project with CDBG funds programed from 2020 and 2021. Additional funding for the Hamilton Street project comes from Douglas County Sales and Use Taxes, Douglas County Sewer District, East Wenatchee Water District, and City of East Wenatchee. The estimated cost of the project is $1,202,614. This substantial amendment will reprogram funds that are in jeopardy due to not being spent within HUD guidelines and propose the following changes in obligation of 2019 program year funds: 1. Administrative and planning funds for CDBG program – De-obligate $21. Total administrative funding will be $5,323. 2. Columbia Valley Housing Association Down Payment Assistance Program – De- obligate $58,695. Total program funding will be $0. 3. Microenterprise Business Grants Program – De-obligate $5,000. Total program funding will be 35,000. 4. Street improvements to Hamilton Avenue. Obligate $63,716. Total project funding will be $498,978.24 from 2017, 2018, 2019, 2020, 2021 and 2022 CDBG funds. Citizen Participation: A public notice of the proposed amendment and notice of public hearing was published in the Wenatchee World on Saturday, November 5, 2022, providing 30 days for the public to comment on the amendment. The notice was provided in English and Spanish notify the public to submit comments to be mailed to Curtis Lillquist, East Wenatchee Community Development Department, 271 9th Street NE, East Wenatchee, WA 98802. Faxed or e-mailed comments were also allowed: Fax 509.886.6113, E-mail clillquist@eastwenatcheewa.gov. The comment period ends on December 5, 2022. A copy of Amendment #3 to the 2019 Annual Plan was also posted on the city web site at www.eastwenatcheewa.gov. Exhibit C