#2 Approve Substantial Plan Amendment to Consolidated Plan and Action Plan (File Res. #2009-611)
NEIGHBORHOOD SERVICES MEMORANDUM
May 29, 2009
TO: City Council
FROM: Jennifer Petruzzello, Neighborhood Services Director
SUBJECT: Action on a proposed resolution approving the substantial plan
amendment to the 2004-2009 consolidated plan and FY2008 Action Plan for the
Community Development Block Grant Program and Rock County HOME
Consortium Submission (File Resolution No. 2009-611).
Summary
The American Recovery and Reinvestment Act of 2009 allocated additional
funding for the Community Development Block Grant Program to be used to
stimulate the economy through measures that modernize the Nation’s
infrastructure, improve energy efficiency, and expand educational opportunities
and access to health care.
Based upon a formula allocation, the City of Janesville is eligible to receive
$145,035. The Community Development Authority held a public hearing, and is
recommending that the City Council approve an amendment, which would
allocate $10,000 to the Literacy Connection, $125,000 to HealthNet and $10,035
for administration.
Neighborhood Services Department has prepared a resolution for City Council
consideration, which would approve an amendment to the 2004-2009
Consolidated Plan and the 2008 Action Plan.
Department Recommendation
The Neighborhood Services Department recommends that the Council approve
File Resolution No. 2009-611, which approves the substantial plan amendment
to the 2004-2009 consolidated plan and FY2008 Action Plan for the Community
Development Block Grant Program and Rock County HOME Consortium.
City Manager Recommendation
The City Manager defers to the Community Development Authority and
Neighborhood Services Department.
Suggested Motion
I move to approve File Resolution No. 2009-611, approving the substantial plan
amendment to the 2004-2009 consolidated plan and FY2008 Action Plan for the
Community Development Block Grant Program and Rock County HOME
Consortium.
1
Background
The American Recovery and Reinvestment Act of 2009 allocated additional
funding for the Community Development Block Grant Program. This program is
referred to as the Community Development Block Grant Recovery Program
(CDBG-R). The funding allocation is: 27% of the City’s 2008 CDBG Allocation.
The City of Janesville is eligible to receive $145,035 under this program
upon the Housing and Urban Development’s approval of a substantial plan
amendment.
Funding eligibility under this program is not the same as the normal CDBG
Program. Funding must be used to stimulate the economy through measures that
modernize the Nation’s infrastructure, improve energy efficiency, and expand
educational opportunities and access to health care.
The addition of these funds constitutes a significant change in the 2008 plan, and
requires a substantial amendment. This amendment details the proposed
activities under CDBG – R and explains how those activities meet the federal
requirements. The substantial amendment has been submitted to HUD for their
review. The City Council must also approve this amendment.
A public hearing was held at the May 27, 2009 Community Development
Authority (CDA) Meeting to seek public input into the use and prioritization of
these funds. The Literacy Connection submitted a $10,000 proposal to expand
educational opportunities through employment of a Program Coordinator/Adult
Education Instructor, which would enable the literacy council to expand
programming and focus on job related skills. HealthNet submitted a proposal to
expand the HealthNet Clinic to ensure quality medical care to the uninsured and
low-income residents of Rock County. The expansion would double the number
of exam rooms, create a medication dispensing area, and build a new space for
the nursing staff and volunteers. HealthNet requested $145,035 in CDBG-R
funding, and indicated that they would be initiating a capital campaign to raise
additional funds for this project.
In evaluating these ideas/proposals, the CDA considered:
?
Their readiness (must be started within 120 days and finished within 3
years),
?
Staff capacity (time available to complete project, develop and administer
new program),
?
One time funding source,
?
Ability to satisfy the goals and objectives of the recovery act, including:
Preserving and creating jobs and promoting economic recovery,
o
Assisting those most impacted by the recession,
o
Providing investment needed to increase economic efficiency,
o
Investing in transportation, environmental protection that will
o
provide long-term economic benefits,
2
Minimizing or avoiding reductions in essential services, or
o
Fostering energy independence.
o
The CDA unanimously recommended that the City Council approve the
amendment, with the following allocation:
?
$10,000 in funding to the Janesville Literacy Council
?
$125,000 in funding to HealthNet
?
$10,035 in Administrative Expenses (grant application, financial
management, quarterly reporting, Davis Bacon wage compliance, contract
administration).
Analysis
Staff has evaluated the proposals and found them to be within the goals and
intent of the CDBG-R program. The substantial plan has been prepared to
demonstrate how the funding allocation will stimulate the economy through
measures that modernize the Nation’s infrastructure, improve energy efficiency,
and expand educational opportunities and access to health care, as well as
comply with other program criteria.
cc: Eric Levitt, City Manager
Jay Winzenz, Assistant City Manager/Director of Administration
3
RESOLUTION NO. 2009-611
RESOLUTION APPROVING THE SUBSTANTIAL PLAN AMENDMENT TO THE 2004-
2009 CONSOLIDATED PLAN AND FY2008 ACTION PLAN FOR THE COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
AND ROCK COUNTY HOME CONSORTIUM SUBMISSION
WHEREAS
, The American Recovery and Reinvestment Act of 2009 allocated additional
funding for the Community Development Block Grant Program (CDBG-R), which must be
used to stimulate the economy through measures that modernize the Nation’s
infrastructure, improve energy efficiency, and expand educational opportunities and
access to health care.
WHEREAS,
the City of Janesville is an entitlement community under the Community
Development Block Grant Program, which is administered by the U. S. Department of
Housing and Urban Development; and
WHEREAS
, $145,035 is expected to be allocated as the City of Janesville’s share of the
FY2008 CDBG-R funds; and
WHEREAS
, the Community Development Authority (CDA) has held a public hearing and
evaluated the citizen comments concerning potential activities for the City of Janesville's
FY2008 Community Development Block Grant Recovery Funds; and
WHEREAS
, The Literacy Connection, 205 N. Main Street, Janesville, submitted a proposal
to expand educational opportunities through employment of a Program Coordinator/Adult
Education Instructor, which would enable the literacy council to expand programming and
focus on job related skills. ($10,000)
WHEREAS
, HealthNet, 23 W. Milwaukee Street, Janesville, submitted a proposal to
expand the HealthNet Clinic to ensure quality medical care to the uninsured and low-
income residents of Rock County. The expansion would double the number of exam
rooms, create a medication dispensing area, and build a new space for the nursing staff
and volunteers. ($145,035)
WHEREAS,
the CDA evaluated these proposals for their ability to stimulate the economy
through measures that modernize the Nation’s infrastructure, improve energy efficiency,
and expand educational opportunities and access to health care, as well as their ability to
satisfy the goals and objectives of the recovery act, including:
Preserving and creating jobs and promoting economic recovery,
o
Assisting those most impacted by the recession,
o
Providing investment needed to increase economic efficiency,
o
Investing in transportation, environmental protection that will provide long-
o
term economic benefits,
Minimizing or avoiding reductions in essential services, or
o
Fostering energy independence.
o
Resolution No. 2009-611
Page
2
WHEREAS,
the Community Development Authority has recommended to the Common
Council that it approve the following allocation of CDBG-R funds:
PROPOSED ALLOCATION of FY2008 CDBG-R FUNDS
The Literacy Connection $10,000
HealthNet $125,000
Administration $10,035
Total $145,035
WHEREAS
, the CDA further recommends to the Common Council that it authorize and
direct the City Manager to execute the Substantial Plan Amendment, including the various
certifications for these funds; and
WHEREAS
, the Common Council finds that it is in the community's best interest to fulfill
the requirements to secure the FY2008 CDBG-R funds for the eligible activities in the City
of Janesville;
NOW, THEREFORE, BE IT RESOLVED,
by the Common Council of the City of Janesville,
that it authorized and directs the City Manager to submit the Substantial Plan Amendment
to the 2004-2009 Consolidated Plan and 2008 Action Plan, including assurances
contained therein and to provide any other information requested by HUD;
BE IT FURTHER RESOLVED,
that the City Manager, and his designees, are hereby
authorized to negotiate, draft, prepare, execute, file and modify such other documents,
papers and agreements ancillary and/or pertaining thereto and, from time to time, to take
and/or make whatever other minor actions and/or minor modifications to the above
described agreements as the City Manager and/or his designee may deem necessary
and/or desirable to effectuate the purposes of such agreements and the intent of this
resolution.
ADOPTED:
Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Brunner
McDonald
Eric J. Levitt, City Manager
Perrotto
Rashkin
ATTEST:
Steeber
Truman
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
Resolution No. 2009-611
Page
3
APPROVED AS TO FORM:
City Attorney
Proposed by: Community Development Authority
Prepared by: Neighborhood Services Director
TCDBG-RSA
HE UBSTANTIAL MENDMENT
M28,2009D
AY RAFT
Jurisdiction(s): City of Janesville CDBG-R Contact Person: Jennifer
Petruzzello
Address: 18 N. Jackson Street
Jurisdiction Web Address: Telephone: 608-755-3065
?
Fax: 608-755-3207
www.ci.janesville.wi.us
Email: petruzzelloj@ci.janesville.wi.us
ERSRAF&B
NSURING ESPONSIBLE PENDING OF ECOVERY CT UNDS ACKGROUND
The American Recovery and Reinvestment Act of 2009 (Recovery Act) appropriated $1 billion
in Community Development Block Grant (CDBG) funds to states and local governments to carry
out, on an expedited basis, eligible activities under the CDBG program. HUD is distributing
$980 million to grantees that received CDBG funding in fiscal year 2008. The formulas for
allocation of CDBG-R funds are the same as the formulas used for the annual allocation of
CDBG funds to the states, entitlement grantees (like Janesville), and insular areas.
The CDBG-R grant is a supplemental appropriation and requires a substantial amendment to its
current approved consolidated plan and PY 2008 annual action plan.
The City of Janesville recognizes that funding available under the Recovery Act has clear
purposes – to stimulate the economy through measures that modernize the Nation’s
infrastructure, improve energy efficiency, and expand educational opportunities and access to
health care. The City of Janesville has designated the use CDBG-R funds for activities geared to
meet the specified purposes.
A.SRPCDBG-RA
PREADSHEET FOR EPORTING ROPOSED CTIVITIES
Attached please find a spreadsheet, which provides information concerning CDBG-R assisted
activities in an electronic spreadsheet provided by HUD. The information provided includes
activity name, activity description, CDBG-R dollar amount budgeted, eligibility category,
national objective citation, additional Recovery Act funds for the activity received from other
programs, and total activity budget.
1
B.CDBG-RIA
NFORMATION BY CTIVITY
(1)Activity Name: Educational Activities (Literacy)
(2)Activity Narrative:
This activity is to expand educational opportunities through employment of a Program
Coordinator/Adult Education Instructor. This position will enable the literacy council to expand
programming and focus on job related skills.
Through this activity, the Literacy Connection will offer services designed to increase the literacy
and improve the employability of lower literacy individuals. Examples of the type of services to be
offered include: increasing the number of volunteer one-on-one tutors available for basic literacy
education, workplace literacy classes, bilingual basic skills computer classes, health literacy
workshop and study classes for the written Wisconsin driver’s test.
This activity will directly create .25 FTE in a newly created Program Coordinator/Adult Education
Instructor. The services offered by this individual are designed to assist those individuals impacted
by the recession to increase their employability. With the increase in unemployment, the available
jobs are going to more skilled individuals, making it considerably more difficult for individuals with
low literacy skills to become employed or to obtain education necessary to learn a new field to
increase their employability. With the change in the economy, the Literacy Connection has seen a
significant increase in demand for their services, which they have not been able to meet.
This is a public service activity, and the following objectives of ARRA will not be addressed by this
activity: Providing investment needed to increase economic efficiency; investing in transportation,
environmental protection, or other infrastructure that will provide long-term economic benefits;
minimizing or avoiding reductions in essential services; or fostering energy independence.
A minimum of seventy percent (70%) of this activity will benefit low to moderate income
individuals.
This is a public service activity and is subject to a 15% cap. This activity represents 6% of the total
allocation.
(3)Jobs Created:
0.25 FTE permanent positions will be created by this activity.
(4)Additional Activity Information: N/A
(5)Responsible Organization: The Literacy Connection
Cathy Jennings, Director
205 North Main Street, Suite 102
Janesville, WI 53545
608-756-3125
info@janesvilleliteracycouncil.org
2
C.CDBG-RIA(C)
NFORMATION BY CTIVITY
ONTINUED
(1)Activity Name: Healthcare
(2)Activity Narrative:
This activity will expand the HealthNet Clinic to ensure quality medical care to the uninsured and
low-income residents of Rock County. HealthNet provides medical, dental, and mental health care to
extremely low and low income individuals without health insurance. The expansion would double
the number of exam rooms, create a medication dispensing area, and build a new space for the
nursing staff and volunteers.
The activity will preserve and create jobs and promote economic recovery by hiring a construction
firm to design and complete the renovation.
This activity assists those most impacted by the recession by focusing on a target population of the
completely uninsured and low-income residents of Rock County. Ninety-five percent of HealthNet’s
patients are extremely low income. Many of their patients have recently lost their jobs and their
homes. Six percent of their patients are homeless.
This activity provides investment needed to increase economic efficiency by including an air handler
for better economic efficiency and quality care to keep their patients and staff healthy. In addition,
they will replace all lights with ballast lighting without mercury, which will keep our operating cost
down with 40% less energy consumption.
By redeveloping dated property in downtown Janesville, this proposal will provide long-term
economic benefits by investing in a long-term capital project. HealthNet will be updating their space
to meet code requirements regarding ADA compliance, lighting, and security for the medications.
HealthNet will need to decrease services if they do not have adequate space to provide quality
medical care. The activity will prevent further reduction in HealthNet services and will allow for
continued growth in the coming years.
Energy independence will be fostered through a decrease in energy consumption due to the
replacement of lighting with more energy efficient ballast lighting.
One hundred percent (100%) of this activity will benefit low to moderate income individuals.
(3)Jobs Created:
2.85 full-time jobs will be created or retained by the activity (1.3 FTE with CDBG-R
funds and 1.55 FTE with leveraged funds).
(4)Additional Activity Information:
Energy conservation will be fostered through a decrease in
energy consumption due to the replacement of lighting with more energy efficient ballast lighting.
(5)Responsible Organization: HealthNet Inc.
Traci R. Rogers, Director
23 W. Milwaukee Street
Janesville, WI 53548
(608)756-4638
www.healthnetofjanesville.org
3
D.CDBG-RIA(C)
NFORMATION BY CTIVITY
ONTINUED
(1)Activity Name: Administration
(2)Activity Narrative:
This activity will provide for the general administration and planning activities taken under the
CDBG-R program. Administrative activities will include the completion of the substantial
amendment, financial management, quarterly reporting, Davis Bacon wage compliance and
contract administration. Preserving and creating jobs and promoting economic recovery.
This is an administrative activity and is subject to a 10% cap. This activity represents 6% of the
total allocation.
(3)Jobs Created: Approximately 0.10 jobs will be retained by this activity.
(4)Additional Activity Information: N/A
(5)Responsible Organization: City of Janesville
Jennifer Petruzzello, Neighborhood Services Director
18 N. Jackson Street, PO Box 5005
Janesville, WI 53547-5005
608-755-3065
petruzzelloj@ci.janesville.wi.us
C.PC
UBLIC OMMENT
The Community Development Authority held a public hearing on the CDBG-R program on May
27, 2009. During that hearing representatives from the Literacy Connection and HealthNet
spoke.
Cathy Jennings, Director of The Literacy Connection, summarized the need for literacy services
and explained her proposal to utilize $10,000 in CDBG-R funding to hire a Program
Coordinator/Adult Education Instructor, who would then expand educational opportunities with
a focus on job related skills.
Traci Rogers, Director of HealthNet, spoke about the current conditions of their facilities, and
how their ability to provide medical, dental and mental health services has been impacted by the
growing need in the community. She explained HealthNet’s request for $145.035 in funding to
expand the HealthNet Clinic to ensure quality medical care for the uninsured and low-income
residents of Rock County. She further explained that Health Net would initiate a capital
campaign in hopes of having enough funding to support a $262,813 renovation of their facility.
THE PUBLIC COMMENT PERIOD IS OPEN UNTIL JUNE 5, 2009. ANY ADDITIONAL
COMMENTS WILL BE ADDED AT THAT TIME.
4
CDBG-R Substantial Amendment
Grantee Checklist
For the purposes of expediting review, HUD asks that applicants submit the following checklist
along with the CDBG-R Substantial Amendment, Spreadsheet for Reporting Proposed CDBG-R
Activities, and SF-424.
Contents of a CDBG-R Action Plan Substantial Amendment
Jurisdiction(s): _______________ CDBG-R Contact Person:
Lead Agency Address:
Jurisdiction Web Address: Telephone:
(URL where CDBG-R Substantial Fax:
Amendment materials are posted) Email:
The elements in the substantial amendment required for the CDBG recovery funds are:
A.SRPCDBG-RA
PREADSHEET FOR EPORTING ROPOSED CTIVITIES
Does the submission contain a paper copy of the Spreadsheet for Reporting Proposed CDBG-R
Activities?
Yes No Verification found on page
Does the submission include an electronic version of the Spreadsheet for Reporting Proposed
CDBG-R Activities sent to the email box CDBG-R@hud.gov?
Yes No Date Spreadsheet was emailed:
Does the Spreadsheet for Reporting Proposed CDBG-R Activities include, for each activity:
?
amount of funds budgeted for each activity, including CDBG-R funds, any additional Recovery
Funds used and total activity budget,
Yes No Verification found on page(s)
?
the Eligibility citation (eligibility regulatory cite or HCDA cite),
Yes No Verification found on page(s)
?
the CDBG national objective citation,
Yes No Verification found on page(s)
B.CDBG-RIA
NFORMATION BY CTIVITY
5
Does the submission contain information by activity describing how the grantee will use the funds,
including:
?
a narrative for each activity describing how CDBG-R funds will be used in a manner that
maximizes job creation and economic benefit,
Yes No Verification found on page(s)
?
projected number of jobs created for each activity,
Yes No Verification found on page(s)
?
whether an activity will promote energy efficiency and conservation,
Yes No Verification found on page(s)
?
the name, location, and contact information for the entity that will carry out the activity,
Yes No Verification found on page(s)
?
evidence that no more than 10% of the grant amount will be spent on administration and
planning,
Yes No Verification found on page (s)
?
evidence that no more than 15% of the grant amount will be spent on public services,
Yes No Verification found on page (s)
?
evidence that at least 70% of the grant amount will benefit persons of low and moderate income,
Yes No Verification found on page (s)
C.PCP
UBLIC OMMENT ERIOD
Was the proposed action plan amendment published via the jurisdiction’s usual methods and on
the Internet for no less than 7 calendar days of public comment?
Yes No. Verification found on page(s)
Is there a summary of citizen comments included in the final amendment?
Yes No Verification found on page(s)
D.C
ERTIFICATIONS
The following certifications are complete and accurate:
(1) Affirmatively furthering fair housing Yes No
(2) Anti-displacement and relocation plan Yes No
(3) Drug-free Workplace Yes No
(4) Anti-lobbying Yes No
(5) Authority of jurisdiction Yes No
(6) Consistency with plan Yes No
(7) Section 3 Yes No
(8) Community development plan Yes No
6
(9) Following a plan Yes No
(10) Use of Funds Yes No
(11) Excessive Force Yes No
(12) Compliance with anti-discrimination laws Yes No
(13) Lead-based paint procedures Yes No
(14) Compliance with laws Yes No
(15)Compliance with ARRA Yes No
(16) Project selection Yes No
(17) Timeliness of infrastructure investments Yes No
(18) Buy American provision Yes No
(19) Appropriate use of funds for infrastructure investments Yes No
(20) 70% of CDBG-R for LMI Yes No
Optional Certification
(21) Urgent Need Yes No
D.SC
TATE ERTIFICATIONS
The following certifications are complete and accurate:
(1) Affirmatively furthering fair housing Yes No
(2) Anti-displacement and relocation plan Yes No
(3) Drug-free Workplace Yes No
(4) Anti-lobbying Yes No
(5) Authority of State Yes No
(6) Consistency with plan Yes No
(7) Section 3 Yes No
(8) Community development plan Yes No
(9) Consultation with Local Governments Yes No
(10) Use of Funds Yes No
(11) Excessive Force Yes No
(12) Compliance with anti-discrimination laws Yes No
(13) Compliance with laws Yes No
(14)Compliance with ARRA Yes No
(15) Project selection Yes No
(16) Timeliness of infrastructure investments Yes No
(17) Buy American provision Yes No
(18) Appropriate use of funds for infrastructure investments Yes No
(19) 70% of CDBG-R for LMI Yes No
Optional Certification
(20) Urgent Need Yes No
7
CDBG-R
Activity Data Spreadsheet
Jurisdiction/Grantee Name: City of JanesvilleCDBG-R Fomula Grant Amount: Date: 5/28/09
Eligibility National CDBG-R Additional Other Total
(Regulatory or Objective Project Recovery Leveraged Activity
Activity NameActivity Description
HCDA Citation)CitationBudget ($)Funds ($)Funding ($)Budget
To expand educational opportunities through employment of a Program
Coordinator/Adult Education Instructor, which will enable the literacy council to
Education Activities L/M Income
(Literacy)expand programming and focus on job related skills.Limited Clientele
Public Services10,00010,000
To expand the HealthNet Clinic to ensure quality medical care to the uninsured and
low-income residents of Rock County. The expansion will double the number of
exam rooms, create a medicatin dispensing area, and build a new space for the
Special Economic L/M Income
nursing staff and volunteers.DevelopmentLimited Clientele
Healthcare$125,000$137,813262,813
Program
Administration
Presumed to meet
CostsNational Objective
AdministrationTo provide for the program administration of the CDBG-R program.$10,03510,035
0
0
0
0
0
0
0
0
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