REPORT TO THE CITY COUNCIL June 11, 2020 FROM: WILMA QUAN, City Manager Office of the Mayor & City Manager BY: H. SPEES, Director, Strategic Initiatives Office of the Mayor & City Manager SUBJECT ..Title ***Approve the 49th Amendment to Annual Appropriations Resolution No. 2019-133 To Appropriate $2,103,600 for the Purpose of Funding the Transfer of Federal COVID-19 Emergency Shelter Grant Monies to the County of Fresno (Subject to Mayor's veto) (Requires 5 votes) ..Body RECOMMENDATION Staff recommends that the Council approve the 49th Amendment to Annual Appropriations Resolution No. 2019-133. EXECUTIVE SUMMARY The City of Fresno (City) has been awarded $2,103,510 in COVID-19 Emergency Shelter Grant (ESG) funding from the Federal Housing and Urban Development Department (HUD). At its May 14, 2020 meeting, Council approved a Memorandum of Understanding (MOU) between the City, the County of Fresno (County), and the Fresno-Madera Continuum of Care (FMCC) so that the monies could be administered on a regional basis. Approval of the proposed amendment to the Annual Appropriations Resolution (AAR) will facilitate the transfer of funds between the City and the County that was envisioned in the MOU. BACKGROUND In response the COVID-19 pandemic and the need to minimize potential COVID-19 cases among the homeless population, Governor Newsom signed Senate Bill (SB) 89 on March 17, 2020. SB 89 authorized the distribution of monies to cities and counties for the purpose of obtaining emergency shelter to be used by the homeless population in those locales. The City received $1,012,869.44 on May 5, 2020. In addition to the SB 89 monies, the City received notice from HUD that it would be receiving $2,103,510 in supplemental COVID-19 ESG monies. These monies could be used for the same purpose as SB 89 funds. Recognizing that homelessness is a regional problem that needs a regional solution, the Administration proposed that the City partner with other entities to utilize these funds. Both the County and the FMCC had received a much smaller allocation of SB 89 funds from the State than the City had received. Thus, if the agencies partnered their monies, the impact of those dollars would be more significant than it would be were they not partnered. The terms of the partnership between the City and the County were memorialized in an MOU, which was approved by Council on April 16, 2020. Under the MOU, the City agreed to transfer its share of SB 89 monies to the County in order to fund the MOU's terms. That MOU was later expanded to include the FMCC and the City's COVID-19 ESG monies. The expanded MOU was approved by Council at its May 14, 2020 meeting. The proposed amendment to the AAR will provide the appropriation authority to transfer the City's COVID-19 ESG funds as required under the expanded MOU. ENVIRONMENTAL FINDINGS This item is not a project of the City of Fresno and as such, the California Environmental Quality Act requirements are not applicable. LOCAL PREFERENCE Local preference was not considered because this resolution does not include a bid or award of a construction or service contract. FISCAL IMPACT The proposed action will have no effect on the General Fund or the City's finances. Attachment: Resolution