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City hears CDBG scoping options — water meters, Grove rehab and Little Lake planning — council continues hearing to Feb. 26
Summary
Staff presented options for 2025 CDBG funding including a $200,000 planning proposal for Little Lake, a proposed $2.9 million CDBG allocation for Grove multifamily rehabilitation (request ~ $3.4M), and a water meter replacement project estimated at $7–8 million in total cost; council continued the scoping hearing to Feb. 26 to allow full council consideration.
City staff opened a scoping hearing on Feb. 18 to gather public and council direction on which activities Arcata should apply for under the 2025 Community Development Block Grant (CDBG) NOFA. Staff said the NOFA includes $27,000,000 statewide and established per-activity limits that affect Arcata applications.
Deputy staff explained basic eligibility and past local uses of CDBG funds (business loan programs, planning efforts, neighborhood assessment, affordable-housing rehabilitation, wastewater upgrades). Staff outlined application limits: up to $300,000 for public services or planning activities, up to $1,500,000 for programs, up to $3,300,000 for projects, and a jurisdictional cap of $3,600,000 across up to three activities.
Community Development Director David Loya and staff recommended packaging one project, one program and one planning activity. Recommended options included a $200,000 planning proposal for the Little Lake site, the Grove multifamily rehabilitation (the applicant Darlene Spohr estimated $3.4 million in needed improvements; staff suggested a $2.9 million CDBG ask and to thin other rehab lists accordingly), and a water meter replacement public-improvement project. Staff said the water-meter project could offset local borrowing or water-enterprise funds and help correct meter undercounts that reduce billed revenue.
Assistant City Manager and Finance Director Tabitha Miller explained meter issues and the revenue rationale: aging meters can slow or stop recording usage, contributing to an estimated system loss above 30 percent; knowing accurate consumption helps equitably apportion costs among ratepayers. Miller said the city has started replacing meters and expects a total water-meter replacement project cost in the $7–8 million range; CDBG could partially offset those costs. Staff also cited a specific example of a $202,100 difference in meter reads as an illustrative data point raised during scoping.
Public commenters largely favored water-meter replacement as the primary project, citing climate resilience and long-term conservation benefits. Council members discussed competitiveness, cost, staging (phased meter replacement or targeting worst meters first) and the trade-offs of dedicating limited CDBG capacity to housing rehabilitation versus infrastructure that may improve revenue balance for the utility.
Because some council members preferred to decide with a full five-member body present, the council moved to continue the CDBG scoping hearing and the public hearing to a special meeting at 5:00 p.m. on Feb. 26, 2026. The motion to continue carried by voice vote.
Staff said they will prepare a formal recommendation and notice for the next meeting; the CDBG application deadline is April 3, 2026. No final applications were authorized at the Feb. 18 meeting; council action is expected after the Feb. 26 continuation.
