REPORT TO THE CITY COUNCIL FROM: JENNIFER K. CLARK, Director Planning and Development Department BY: DALTON BENNETT, Projects Administrator Planning and Development Department SUBJECT ..Title Approve resolution establishing a Community Benefits Fund (CBF) and expenditure plan to fund mitigation improvements required in the settlement agreement with the South Fresno Community Alliance (SFCA) and Leadership Counsel for Justice and Accountability (LCJA). ..Body RECOMMENDATION Staff recommends the City Council approve the resolution to establish the Community Benefits Fund. EXECUTIVE SUMMARY On March 17, 2021, the City of Fresno entered into a settlement agreement with the South Fresno Community Alliance (SFCA) and Leadership Counsel for Justice and Accountability (LCJA). The mitigation improvements in the settlement agreement were established based on the impacts of development activities immediately adjacent to the South Central Specific Plan (SCSP) boundaries. The settlement agreement requires that the City of Fresno manage and administer a Community Benefits Fund. The Guidelines for the Community Benefits Fund have been completed and are available in both English and Spanish. With this Resolution, the City will begin administering the Fund. BACKGROUND On March 11, 2021, The City Council approved a settlement agreement outlining the immediate creation and implementation of a Community Benefits Fund (CBF) to mitigate impacts in the area. A committee was formed which consisted of representatives from the SFCA, LCJA and other sensitive receptors including Orange Center School to develop the CBF guidelines. Sixteen meetings were held from May 2021 through November 2022. The meetings included guided discussions regarding specific measures to mitigate the impacts outlined in the Settlement Agreement: air quality, light spill, noise, and traffic. The initial request from the committee was to model the program after the Airport Noise grant program. However, after review the committee felt the requirements for inspections and properties free from code violations was too onerous. Staff continued to provide options for the committee to consider. During this time six versions were presented to the committee for feedback. Some of the major concerns included city versus county inspections, whether renters or owners would qualify, what impact would code violations or prior illegal work in the home have on the property, and which measures would have the most benefits. Additionally, there was consideration for which properties should qualify based on their proximity to the project which initiated the fund and how much funding should be allocated to each eligible property. In the fall of 2021, the committee and staff held a public outreach event within the area to provide information on the CBF as well as other assistance programs from agencies such as the San Joaquin Valley Air Pollution District, Self Help and Habitat for Humanity. This provided essential feedback to the committee. Following the outreach the committee met to discuss the feedback and resolve some of the major concerns listed above. In August, 2022 a public review draft was published for a sixty day comment period. A second public outreach event was held in the area during the comment period. The committee reviewed the feedback from the community and made final edits to the guidelines which are attached for adoption. The city received its first development deposit from the property located at APN 33002182S and as recommended by the CBF Committee, will pilot the implementation framework set forth in the attached CBF guidelines. ENVIRONMENTAL FINDINGS This approval is not a project for the purposes of CEQA Guidelines Section 15378. LOCAL PREFERENCE Not applicable FISCAL IMPACT Funding source is solely from the developer deposit established in the settlement agreement and does not impact the General Fund. ATTACHMENTS: Exhibit A: Resolution