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PUBLIC HEARING: ADOPT A RESOLUTION TO APPROVE AMENDMENTS TO THE 2020-2025 CONSOLIDATED PLAN, 2020-2021 ANNUAL ACTION PLAN, AND CITIZEN PARTICIPATION PLAN; ACCEPT AND APPROPRIATE CARES ACT COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS AND EMERGENCY SOLUTIONS GRANT- (ESG) FUNDS
recommended action
RECOMMENDATION
It is recommended that at the conclusion of the public hearing the City Council adopt a resolution to:
1. Amend the 2020-2025 Consolidated Plan, 2020-2021 Annual Action Plan, and the City's Citizen Participation Plan (attached as Exhibits 1, 2 and 3 to the Resolution) with any modifications deemed appropriate.
2. Approve and accept the CARES Act Community Development Block Grant funding allocation of $2,016,786 and the ESG-CV1 and ESG-CV2 for a combined allocation of $7,050,104, and authorize the execution of the Cares Act Agreement with the Department of Housing and Urban Development to accept grant funding.
3. Authorize the City Manager, or designee to execute all required documents and forward them to the U.S. Department of Housing and Urban Development.
4. Authorize the City Manager to reallocate funds among approved activities and partners as needed to maximize impact and benefit to the Stockton community.
5. Authorize the City Manager, or designee, to appropriate grant funds and associated expenditures, execute contracts above the current $75,000 spending cap for funds accepted under this Resolution, and to take necessary and appropriate actions to carry out the purpose and intent of this Resolution.
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Summary
The $2.2 trillion CARES Act stimulus package allocated $5 billion in Community Development Block Grant (CDBG) supplemental funding and $4 billion in Emergency Solutions Grant (ESG) supplemental funding to states, counties, and local jurisdictions. The City of Stockton is an entitlement jurisdiction that receives an annual allocation of CDBG and ESG funding. The City received notification that it has been allocated $2,016,786 of CDBG CARES Act funding and $7,050,104 of ESG CARES Act funding to assist Stockton's low-income residents, homeless population, and small businesses during this pandemic period.
Staff recommends that the Council approve a resolution authorizing the acceptance, appropriation, and execution of the CARES Act supplemental funding Agreement and to amend the City’s Consolidated Plan, Action Plan and Citizens Participation Plan as required by Housing and Urban Development (HUD). It is further request that the City Manager be given the authority to execute contracts above the current $75,000 spending cap in order to get the CARES Act funds into the hands of local business owners and service providers as quickly as possible.
DISCUSSION
Background
On January 31, 2020, COVID-19 was declared a Public Health emergency by the United States. On March 4, 2020, California Governor Gavin Newsom, like other states, declared a State of Emergency to begin making resources available to the state to combat COVID-19.
On March 12, 2020, San Joaquin County declared a Public Health Emergency in response to COVID-19, and the City Manager Harry Black signed a Proclamation of the Existence of a Local Emergency to respond to the COVID-19 public health emergency.
On March 27, 2020, in response to the pandemic outbreak of the coronavirus disease COVID-19 the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), A $2.2 trillion stimulus aid package was signed into law by the President of the United States to provide relief to individuals suffering from the economic impacts of COVID-19 and to provide funds to states, local governments, businesses and other entities to help.
The City of Stockton was allocated a combined $9,066,890 of supplemental CDBG-CV1 and ESG-CV1 & CV2 CARES Act funding to assist low-income households, homeless persons, and small businesses during this COVID-19 period.
Additionally, the CARES Act allowed the Department of Housing and Urban Development to waive the following requirements:
CDBG-CV
• Removal of the CDBG 15% Public Service Cap
• The thirty (30) Day Public Comment Period for Consolidated Plan and Action Plan Substantial Amendments is reduced to five (5) days
ESG-CV1 and CV2
• Removal of the ESG 60% emergency shelter and outreach activity funding cap
• Administrative fee Increased to 10% from 7.5%
• Supportive Services are not required for assistance
Present Situation
Upon Council approval, and per the CARES Act guidelines, the City agrees that CDBG and ESG grant funds of $9,066,890 will support the following COVID-19 activities:
CDBG-CV Activities
• $1.32 Million Small Business Relief Grant Program
Will fund approximately 440 additional grants to Stockton small businesses; currently 168 local businesses have received $3,000 grants.
• $100,000 Healthy Stockton Initiative
Partner with Visit Stockton to support small businesses by developing safety protocols, educational materials, and marketing for businesses to operate safely and serve patrons.
• $100,000 Venue Preparedness
Prepare for the opening of the Stockton Arena, Bob Hope Theater, Oak Park Ice Rink and Ballpark to support the accommodation of social distancing measures, as well as COVID-19 mitigation and containment measures.
• $93,429 Business Development Assistance
Provide local chambers and business districts the ability to assess business needs, create educational materials, provide consulting services and financial support to small businesses.
ESG-CV1 & CV2 Activities
• $500,094 Supplies, Equipment & Transportation
Funding will be provided for the purchase of hygiene/personal protection products and other related safety products for the City, nonprofits, and Stockton’s affordable housing developments that house low-income tenants.
• $1 Million Homeless Encampment/Street Outreach
Establishment of a mobile medical clinic staffed with medical personnel (such as Community Medical Center), case managers, and funding to continue the Hot Teams with the Police and Fire Departments (coordinated efforts with mobile clinic).
• $1.5 Million Shelter Health and Safety Expanded Services and Staffing
Establishment of an onsite clinic at the Stockton Shelter, along with staffing and supplies for two (2) years (medical assistant, case manager, outreach case managers) to ensure adequate medical screenings to stop the spread of COVID19, and to provide funding for supplies to Gospel Rescue Center’s onsite clinic.
• $3.345 Million Issue Notice of Funding Availability (NOFA)
City will seek proposals from agencies that provide supportive services and homelessness prevention assistance, such as rapid rehousing or rental assistance, meal preparation, coordinated medical care, and support to smaller shelters to contain and prevent the spread of COVID 19.
A requirement to accessing the CARES funding, the City must substantially amend its FY 2020-2025 Consolidated Plan (Con Plan), its FY 2020-2021 Annual Action Plan (Action Plan) and its Citizen Participation Plan. The Consolidated Plan Amendment includes the addition of disaster support language in the event of a future local, state, or national disaster or emergency, such as the COVID‐19 pandemic; and reducing the thirty (30) Day Public Comment Period for the Consolidated Plan and Action Plan Substantial Amendments to five (5) days. Additionally, the Annual Action Plan Amendment documents the proposed CDBG-CV1 and ESG-CV1 and CV2 activities that will be funded through the allocation of the $9,066,890 in CARES Act funding. Additionally, the Citizen Participation Amendment allows for a five (5) day public comment period from the HUD required 30-day comment period and the ability to hold virtual hearings per the waiver of the federal regulations.
A Notice of Funding Availability (NOFA) will be issued in late July for the ESG-CV funds.
Staff recommends that the Council approve a resolution authorizing the acceptance, appropriation, and execution of the CARES Act supplemental funding in the amount of $9,066,890 and to amend the City’s Con Plan, Action Plan and Citizens Participation Plan as required by HUD.
It is further requested that the City Manager be given the authority to execute contracts above the current $75,000 spending cap for funds accepted under this Resolution in order to get the CARES Act funds into the hands of local business owners and homeless service providers as quickly as possible.
Notification
In conformance with HUD's notification requirements, a notice of the public hearing was published in The Record on July 4, 2020, to allow for the ten-day comment period.
FINANCIAL SUMMARY
There is no financial impact to the City's General Fund or any other unrestricted fund as a result of this action. The grant does not require any matching funds from the City. Additionally, the CARES Act CDBG-CV funding allows for a 20% Administrative Fee of the total allocation amount. and a 10% ESG Administrative Fee of the total allocation amount for implementation and grant management activities. Both the CDBG-CV1 grant funds totaling $2,016,786 and the ESG-CV1 and CV2 funds totaling $7,050,104 will be appropriated as a revenue in the General Government Grant fund accounts (053-8429 and 057-8429). Corresponding expenditures will also be appropriated to this special division.