REPORT TO THE CITY COUNCIL FROM: GEORGEANNE A. WHITE, City Manager Office of the Mayor & City Manager BY: SANTINO DANISI, City Controller/Finance Director Finance Department COURTNEY ESPINOZA, Business Manager Finance Department/Grants Management Unit SUBJECT ..Title ***RESOLUTION - Adopting the 33rd amendment to the annual appropriation resolution No. 2023-185 to appropriate $665,000 from the Department of Housing and Urban Development (HUD) for the Community Project Fund (CPF) grant (Requires 5 Affirmative Votes)(Subject to Mayor's Veto). ..Body RECOMMENDATION Staff recommends Council adopt the 33rd amendment to the AAR appropriating $665,000; and authorize the City Manager to execute all related documents for the administration, modification, monitoring, and closeout of the CPF grant. EXECUTIVE SUMMARY On April 27, 2023, Council accepted an award for the FY 2022 Economic Development Initiative, Community Project Funding the Housing and Urban Development (HUD), approved an agreement with Fresno Metro Ministry and appropriated $665,000 for FY 2023. As a result, an agreement was executed with Fresno Metro Ministry for the full amount of the grant and the program was initiated. Awarded through the Consolidated Appropriations Act, 2022 and allocated as congressional directed spending, funding was specifically identified for the Urban Heat Island Mitigation and Edible Food Rescue and Distribution Project led by Fresno Metro Ministry totaling $665,000. Due to timing issues, contract payments and corresponding reimbursements were not initiated until FY 2024. In order to complete the grant, receive reimbursement and disperse payment to Fresno Metro Ministry, appropriations will need to be recorded in the grant fund for FY 2024. All funding is passed directly to Fresno Metro Ministry. BACKGROUND In July 2022, City of Fresno staff received correspondence with HUD and CPF grant representatives that $665,000 had been identified and approved in the FY 2022 Economic Development Initiative, Community Project Funding/congressionally directed spending grant as funded by the Congress in the Consolidated Appropriations Act, 2022. City staff began working with Fresno Metro Ministry to submit a project narrative and budget as required by HUD. In November 2022, the City of Fresno was notified of the award and initiated the completion of all final grant related documents as required. As a Responsible Entity (RE) with respect to the Project, the City of Fresno will fund Fresno Metro Ministry on a reimbursement basis for the Urban Heat Island Mitigation and Edible Food Rescue and Distribution Project. The City of Fresno is responsible for all reporting and tracking of this grant program on behalf of Fresno Metro Ministry and will serve as the liaison with HUD. The following is a summary of the project. Funding from HUD will leverage additional matching funds of $5,735,000 to complete construction of the St. Rest + Food to Share Hub, a Transformative Climate Communities (TCC) project, with a current total estimated cost of $6.4 million. This debt-free and productive community asset is aligned with City plans and priorities, will be financially sustainable, and its related programs will perpetually meet critical community needs. The St. Rest + Food to Share Hub will directly address goals to alleviate extreme food insecurity, public health challenges, and negative economic impacts in these areas of Southwest Fresno, all conditions exacerbated by COVID 19, and key elements required to be mitigated for building a local foundation for a strong and equitable recovery. The Hub will make measurable progress on these goals by distributing millions of pounds of healthy food annually to individuals and families experiencing extreme food insecurity and related negative health outcomes, providing cooking skills and nutrition education classes to increase community members' confidence for improving their diets, disease prevention and resilience capabilities, while modelling a place-making urban infill and community-economic development implementation strategy. Due to timing issues, grant funding was not received nor expended in FY 2023 and will now need to be appropriated in FY 2024 to complete the grant close out process. All program requirements have been met including invoicing and reporting to HUD per the grant guidelines. Once funding is received from HUD, the City of Fresno will issue payment in full to Fresno Metro Ministry. ENVIRONMENTAL FINDINGS Pursuant to the National Environmental Policy Act (NEPA) guidelines, a Phase I Environmental Site Assessment was completed and summarized in a report dated March 22, 2022. The NEPA review concluded a Finding of No Significant Impact. The Housing and Community Development Division received authorization to use grant funds from the U.S. Department of Housing and Urban Development on April 10, 2023. LOCAL PREFERENCE Local preference was not considered based upon conditions of federal funding. FISCAL IMPACT There is no impact to the General Fund. Grant funding for this project will be received and then distributed directly to Fresno Metro Ministry. Attachments: 1. CPF Grant Award Agreement 2. Sub-Recipient Agreement with Fresno Metro Ministry for Urban Heat Island Mitigation and Edible Food Rescue and Distribution Project 3. Resolution - 33rd Amendment to the AAR No. 2023-185 appropriating $665,000