REPORT TO THE CITY COUNCIL June 4, 2015 FROM: JENNIFER K. CLARK, Director Development and Resource Management Department BY: JOSE TRUJILLO, Manager Housing and Community Development Division SUBJECT ..Title RESOLUTION - Approving the City of Fresno's Section 3 Plan for use on Housing and Community Development Division projects and activities funded with U.S. Department of Housing and Urban Development, Community Development Block Grant and HOME Investment Partnerships Program funds ..Body RECOMMENDATION Staff recommends the City Council adopt Resolution (Exhibit "A" - Resolution) approving the City of Fresno's (City) Section 3 Plan (Exhibit "B" - City of Fresno Section 3 Plan) for use on projects funded with U.S. Department of Housing and Urban Development (HUD), Community Development Block Grant (CDBG) Program and HOME Investment Partnerships (HOME) Program funds. EXECUTIVE SUMMARY In an effort to fully comply with the HUD Section 3 Act, the City prepared the attached Section 3 Plan for use on applicable City projects and activities funded with CDBG and HOME Program funds. BACKGROUND Section 3 of the Housing and Urban Development Act of 1968, as amended, requires CDBG and HOME Program jurisdictions to ensure employment and other economic and business opportunities generated by the HUD financial assistance, to the greatest extent feasible, are directed to public housing residents and other low-income persons, particularly recipients of government housing assistance and business concerns that provide economic opportunities to low- and very-low income persons. In an effort to comply with this HUD requirement, the City shall incorporate Section 3 in its existing procurement policy and adopt a Section 3 contracting policy and procedure to be included in all procurements generated for use with applicable CDBG and HOME funding. The attached Section 3 Plan contains requirements for awarding contracts to Section 3 Business Concerns. Upon adoption of the attached Resolution (Exhibit "A"), it will be City policy to require contractors working on applicable contracts partially or wholly funded with CDBG and HOME program funds to comply with the attached Section 3 (Exhibit "B") Plan requirements. The City's Housing and Community Development Division shall examine and consider a contractor's or vendor's potential for award of CDBG or HOME funds based on the level of participation in providing employment and business opportunities to eligible lower income residents. The City's Section 3 Plan establishes employment and training goals contractors and subcontractors should meet in order to comply with Section 3 requirements. Before submitting a bid or proposal to the City Housing and Community Development Division, all contractors or businesses seeking Section 3 preference must, complete certifications, as appropriate, acknowledging the required Section 3 contracting and employment provisions have been met. The Housing and Community Development Division is scheduled to review this item on May 13, 2015. ENVIRONMENTAL FINDINGS Preparation and development of the Section 3 Plan is exempt from the National Environmental Policy Act (NEPA) requirements. The City completed the attached environmental assessment for exempt activities on May 29, 2014 (Exhibit C - Environmental Assessment). LOCAL PREFERENCE Local preference is not applicable based on conditions of federal funding. FISCAL IMPACT There is no fiscal impact to the Development and Resource Management Department 2014 budget as result of the Resolution approving the Section 3 Plan. Attachments: Exhibit A - Resolution Exhibit B - City of Fresno Section 3 Plan Exhibit C - Environmental Assessment