REPORT TO THE CITY COUNCIL FROM: SANTINO DANISI, MBA, City Controller/Finance Director BY: COURTNEY ESPINOZA, Business Manager Finance Department, Grants Management Unit SUBJECT ..Title Actions pertaining to American Rescue Plan Act (ARPA) funding to Community Based Organizations (CBOs) 1. Adopt a finding of Categorical Exemption pursuant to CEQA Guidelines Section 15301/Class 1 for to proposed project pursuant to the California Environmental Quality Act (CEQA) 2. Approve an agreement with Helping Others Pursue Excellence (HOPE) allocating $500,000 in ARPA funding for small business assistance and to construct a commercial kitchen at an existing space on the Vision View campus. ..Body RECOMMENDATION Staff recommends Council approve an agreement with HOPE allocating $500,000 in ARPA funding to construct a commercial kitchen for small businesses to use at an existing space on the Vision View campus and provide small business assistance for those impacted by the COVID-19 pandemic. EXECUTIVE SUMMARY Staff recommends Council approve an agreement with HOPE allocating $500,000 in ARPA funding to provide small business assistance and the construction of a commercial kitchen on the Vision View campus. This allocation of ARPA funding was approved in part by Council on June 23, 2022, however the adoption of a categorical exemption for construction now is required. In 2021, the City of Fresno was awarded American Rescue Plan Act funding in the amount of $170,808,029. Of this funding approximately $10,000,000 was identified as a resource to provide grant funding to local Community Based Organizations (CBOs) for projects that aid in the recovery of the COVID-19 pandemic. Through a formal request for proposals (RFP) process and subsequent Council approval, HOPE was allocated $500,000 in ARPA funding for the construction of a commercial kitchen and small business assistance. Due to CEQA requirements, this project requires the adoption of categorical exemption at the time of award. BACKGROUND In 2021, the City of Fresno was awarded American Rescue Plan Act funding in the amount of $170,808,029. Of this funding approximately $10,000,000 was identified as a resource to provide grant funding to local Community Based Organizations (CBOs) for projects that aid in the recovery of the COVID-19 pandemic. Through a formal request for proposals, 46 proposals were submitted totaling $77,779,315 through the City's Planet Bids portal. All proposals were vetted for eligibility based on each agency's self-identified APRA category determination and the U.S Treasury's ARPA requirements and guidelines. Of eligible ARPA categories, priorities were identified by City Council via an anonymous survey. A review committee determined which projects were recommended for funding. On June 23, 2022, Council approved 15 CBOs to receive ARPA funding for a variety of different projects including; small business assistance, CBO recovery, food distribution, workforce development, youth programing and services, victim assistance, child care vouchers, and resident and business financial assistance. Due to the scope of work, HOPE is required to complete CEQA for the construction portion of the project at the time of contract. ENVIRONMENTAL FINDING This project is exempt under Section 15301/Class 1 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines. LOCAL PREFERENCE This organization has been previously approved by Council. FISCAL IMPACT Proposals will be funded through American Rescue Plan Act funding and will not impact the general fund. Attachments: ARPA CBO Agreement with Helping Others Pursue Excellence Helping Others Pursue Excellence Cat Exempt - CEQA