Salinas committee backs $595,000 CDBG reallocation to Sherwood Recreation Center

The City of Salinas Housing and Land Use Committee on Aug. 19 voted to support submitting a first substantial amendment to the FY 2023–24 Annual Action Plan to the U.S. Department of Housing and Urban Development that would reallocate $595,000 in Community Development Block Grant funds to the Sherwood Recreation Center building improvement project.

The reallocation would move $550,000 from a stalled Republic Cafe project and $45,000 from a housing referrals and tenant–landlord services line to cover a construction and construction-management shortfall identified after bid openings, Planning Manager Vincent Montgomery told the committee. Montgomery described the center as a conversion of the former municipal swimming pool at 920 North Main St. into a youth-focused recreation center; the current work, described by staff as phase 4, includes exterior upgrades, accessibility, parking and landscaping.

“The purpose of today’s meeting is to recommend support for a city council resolution that authorizes the submission of a first substantial amendment to the fiscal year 2023–24 annual action plan to HUD,” Montgomery said. He told the committee that bids revealed a $595,000 funding gap, primarily in construction and construction-management costs.

Committee members pressed staff for details about the timing and service impacts of moving the funds. Francisco Ambilla, management analyst, said the projects from which the funds are being moved would remain eligible for funding in the FY 2025–26 allocation and that the city intends to replace the reallocated dollars once those projects move into construction. “We will still fund them, using the 25–26 allocation,” Ambilla said.

Members also questioned the large increase in the construction-management line item, which rose from about $297,000 to about $587,000. Staff said the variance reflects added contingency to cover potential change orders and other unanticipated costs; staff explained they grouped contingency in the construction-management line for budgeting simplicity.

Staff said the city published a 30-day public notice in English and Spanish on July 27, 2025, and distributed it through the Monterey Herald, the city website, city hall and libraries; the public-comment period runs through Aug. 26, 2025. Montgomery said moving the funds would help the city meet HUD expenditure-ratio requirements and reduce the city’s CDBG line-of-credit balance.

The committee recorded a motion to support staff’s recommendation; the roll call vote as read by the clerk recorded Councilmember Salazar, Councilmember Sandoval and Chair Barajas voting yes and the chair declared the motion carried.

The item will move to the full City Council as a resolution authorizing submission of the substantial amendment to HUD and the reallocation of $595,000 in CDBG funds.