REPORT TO THE CITY COUNCIL August 17, 2020 FROM: Council President Arias Councilmember Soria Councilmember Chavez ..Title Approve CARES Act expenditure and contracts for food distribution and grocery relief: 1. ***RESOLUTION - Adopting the 11th Amendment to the Annual Appropriation Resolution No. 2020-159 to appropriate $4,512,600 in CARES Act Funds for food distribution programs (Requires 5 affirmative votes)(Subject to Mayor's Veto) 2. Approve agreement with Neighborhood Industries 3. Approve agreement with The Fresno Center 4. Approve agreement with Every Neighborhood Partnership 5. Approve agreement with Reading & Beyond 6. Approve agreement with Education and Leadership Foundation 7. Approve agreement with Southeast Fresno Community Economic Development Association, Inc. 8. Approve agreement with Fresno Unified School District ..Body RECOMMENDATION It is recommended Council appropriate CARES Act funding and approve the agreements with community partners to provide food and grocery distribution relief to vulnerable residents affected by the COVID-19 public health crisis. EXECUTIVE SUMMARY The effects of COVID-19 have led to food insecurity for a variety of reasons, including elderly and immunocompromised residents sheltering in place, residents taking efforts to comply with public health orders, and economic hardship due to job loss or reduction in hours due to COVID-19. CARES funding is meant to be spent on immediate needs resulting from the health crisis. Discretion is with the legislative body to determine reasonable expenditure of funds. The food distribution and grocery relief programs outlined herein facilitates compliance with COVID-19-related public health measures and addresses a vital need for the most vulnerable residents including individuals and families experiencing food insecurity due to the impacts of COVID-19. BACKGROUND The CARES Act (42 U.S.C. Section 801(d)) requires eligible reimbursement expenditures (1) are necessary due to the COVID-19 public health crisis; (2) are not accounted for in the City's budget as of March 27, 2020; and (3) be expended between March 1 and December 30, 2020. The Department of the Treasury understands the term 'necessary' broadly to mean the expenditure is reasonably necessary for its intended use in the reasonable judgment of the government officials responsible for spending Fund payments. (US Dept. of Treasury, Coronavirus Relief Fund Guidance (April 30, 2020) p.1.) Expenditures must be used for actions taken to respond to the public health emergency. These may include expenditures incurred to allow the government to respond directly to the emergency, such as by addressing medical or public health needs, as well as expenditures incurred to respond to second-order effects of the emergency, such as by providing economic support to those suffering from employment or business interruptions due to COVID-19 related business closures. (US Dept. of Treasury, Coronavirus Relief Fund Guidance (April 30, 2020) p. 1.) The food distribution and grocery relief programs represented here are designed to aid the most vulnerable and at-risk individuals and families, including the elderly, immunocompromised, and those who cannot shop for themselves due to loss of employment and/or transportation. Many families are struggling with unemployment, wage loss, and other financial effects associated with the pandemic, which lead to food insecurity. The relief programs facilitate compliance with COVID-19-related public health measures; Fresno County is currently on the state's monitoring list as a hotspot for COVID-19. The participating community partners already have strong connections to the community they are serving through these programs. Additionally, many of the providers provide outreach and referral services to connect residents to other resources and services. While more detail for the programs can be found in the scope of work attached to each contract, the programs can be summarized as follows: * Neighborhood Industries: Provide meal boxes containing 8-10 family meals via doorstep delivery or at a distribution site. Serve 500 households per week, plus 750 boxes for bulk delivery to distribution sites. The goal is to distribute 40,000 boxes by December 30. Project cost: $1,217,138 * The Fresno Center: From August through October, drive-thru/walk-thru distribution once a week at 4879 E. Kings Canyon Road, with 600 boxes at each distribution, each feeding 6 people. Project cost: $500,000 * Every Neighborhood Partnership: From August through October, distribution once a month at five elementary school sites plus four impacted neighborhood sites, with 400 boxes at each distribution. Project cost: $50,000 * Reading and Beyond: Distribution at least once per week at Mosqueda Center, with 200 boxes per distribution. Distribution to include food, cleaning supplies, and PPE while supplies last. Will also conduct periodic delivery to high-risk individuals. August-December. Project cost: $250,000 * Education and Leadership Foundation: From August to October, distribution at least once per month at five elementary school sites and three trailer parks in Southeast Fresno, with 400 boxes per distribution. Project cost: $50,000 * Southeast Fresno Community Economic Development Association (SEFCEDA): Distribution at least once a month at Grace Methodist Church, and possibly other sites. August through December. Project cost: $121,090 * Fresno Unified School District: Distribution of two meals per day to unenrolled students and adults at 47 school sites citywide. Project cost: $4,880,900. ENVIRONMENTAL FINDINGS This is not a project for the purpose of CEQA. LOCAL PREFERENCE Not applicable. FISCAL IMPACT This item will not impact the General Fund. All programs will be funded with CARES Act funds. Attachments: AAR (1) Contracts (7)