REPORT TO THE CITY COUNCIL FROM: GEORGEANNE A. WHITE, City Manager Office of the Mayor & City Manager BY: SANTINO DANISI, MBA, City Controller/Finance Director Finance Department COURTNEY ESPINOZA, Business Manager Finance Department/Grants Management Unit SUBJECT ..Title Actions pertaining to the 2022 Community Project Funding (CPF) grant through the department of Housing and Urban Development (HUD): 1. Accept the CPF grant award from HUD totaling $665,000 for the Urban Heat Island Mitigation and Edible Food Rescue and Distribution project led by Fresno Metro Ministry 2. Approve Sub-Recipient Agreement with Fresno Metro Ministry totaling $665,000 3. ***RESOLUTION - A resolution of the council of the City of Fresno Adopting the 24th amendment to the annual appropriation resolution No. 2022-154 to appropriate $665,000 from the Department of Housing and Urban Development (HUD) for the Community Project Fund (CPF) grant (Requires five Affirmative Votes) (Subject to Mayor's Veto). ..Body RECOMMENDATION Staff recommends that Council accept the 2022 CPF grant award through HUD; approve the sub-recipient agreement with Fresno Metro Ministry awarding the entire grant of $665,000 for the project; adopt the 24th 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 and Sub-Recipient Agreement. EXECUTIVE SUMMARY In response to a funding gap for the St. Rest + Food to Share campus in Southwest Fresno, Fresno Metro Ministry contacted Congressman Costa's office for a federal earmark to be included Consolidated Appropriations Act. On November 29, 2022, the City of Fresno received an award letter on behalf of HUD for the FY 2022 Economic Development Initiative, Community Project Funding /congressionally directed spending grant as funded by Congress in the Consolidated Appropriations Act, 2022. This award specifically identified funding in the amount of $665,000 for the Urban Heat Island Mitigation and Edible Food Rescue and Distribution Project led by Fresno Metro Ministry. In January 2023, a grant agreement with HUD was executed for this project. The City of Fresno will act as a pass-through agency for Fresno Metro Ministry and liaison with HUD for all reporting requirements. Funding will not be used by the City to administer this grant. 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 $4,915,141 to complete construction of the St. Rest + Food to Share Hub, a Transformative Climate Communities (TCC) project as well, with a total estimated cost of $5,580,149 as of July 8, 2022. 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 measurably make 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. 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 distributed on a reimbursement basis. 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 - 24th Amendment to the AAR No. 2022-154 appropriating $665,000