REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department BY: PHIL SKEI, Assistant Director Planning and Development DANNY TOHME, Projects Administrator Housing Production Division SUBJECT ..Title Actions pertaining to the California Department of Toxic Substances Control's Office of Brownfields Equitable Community Revitalization Grant for the Remediation of the 1457 H Street Site Round 2 (Council District 3): 1. ***RESOLUTION - Approve the Acceptance of Equitable Community Revitalization Grant Round 2 Funding from the State of California Department of Toxic Substances Control in the amount of $3,122,648 and authorize the City Manager or Designee to enter into and execute a grant agreement and any and all subsequent documents during the two-year funding period. (Subject to Mayor's Veto) ..Body RECOMMENDATION Staff recommends that the City Council approve the acceptance of ECRG Round 2 Grant Funds in the amount of $3,122,648 from the State of California Department of Toxic Substances Control and authorize the City Manager or Designee to enter into and execute a grant agreement and sign all subsequent documents during the two-year funding period. EXECUTIVE SUMMARY The State of California Department of Toxic Substances Control (DTSC) issued an Equitable Community Revitalization Grant (ECRG) Round 2 Guidelines soliciting applications on August 14, 2023, to implement the Cleanup in Vulnerable Communities Initiative under Senate Bill 158 (Chapter 73, Statutes of 2021) allocating $500 million to DTSC for the cleanup and beneficial reuse of properties in historically vulnerable and disadvantaged communities, and approximately $85 million was made available for Round 2 of the ECRG application, which closed on October 9, 2023. On October 5, 2023, the Fresno City Council adopted Resolution No. 2023-268 authorizing and directing the submission of a grant application to the State of California DTSC ECRG Round 2, to facilitate the remediation of 1457 H Street, and authorizing the City Manager or Designee to sign all required applying documents. On March 18, 2024, the State of California Department of Toxic Substances Control announced the approval of the City of Fresno's Equitable Community Revitalization Grant Round 2 Grant Application, for the amount up to $3,122,648. BACKGROUND The California Department of Toxic Substances Control (DTSC) issued an Equitable Community Revitalization Grant (ECRG) Round 2 Guidelines soliciting applications on August 14, 2023, to implement the Cleanup in Vulnerable Communities Initiative under Senate Bill 158 (Chapter 73, Statutes of 2021) allocating $500 million to DTSC to expedite the cleanup and beneficial reuse of contaminated properties, with priority given to properties in historically vulnerable and disadvantaged communities. There is approximately $85 million available for funding through Round 2 of the ECRG application, which closed on October 9, 2023. The City of Fresno submitted the grant application on October 9, 2023. The Site is located within the Fulton Corridor and is bordered by Stanislaus Street to the northwest, H Street to the northeast, Tuolumne Street to the southeast, and railroad tracks to the southwest. The Site consists of approximately 2.98 acres of primarily vacant land with a communications transmission facility located on the northeast corner. Historically, the Site was part of the central rail corridor and was owned by the Southern Pacific Railroad. From about 1898 through 1987, the Site was occupied by railroad tracks and associated facilities, such as storage buildings, loading platforms, and freight structures. From at least 1918 until 1970, the Site contained 12 tracks/spurs and during this timeframe it was a common practice to treat the tracks/spurs with environmentally persistent metal-containing pesticides and herbicides to maintain track integrity. Additional adverse impacts may have resulted during this time due to the extended presence of diesel fuels and lubricants from spills and/or accumulated engine drip-related releases, diesel fuel exhaust, and contaminants derived from the presence of rail ties treated with creosote. Pending approval, Staff intends accept the award of funding in an amount up to $3,122,648 to be used for the remediation of 1457 H Street. The City Attorney has reviewed the resolution and agreement and approved both as to form. ENVIRONMENTAL FINDINGS This approval is not subject to environmental review under California Environmental Quality Act (CEQA). DTSC is the Oversight Agency for purposes of administering cleanup of the site and as such, is the Lead Agency pursuant to CEQA. Following a scoping meeting and preparation of a final cleanup plan, an agreement pertaining to the plan and an appropriate CEQA assessment will be brought to Council for consideration. LOCAL PREFERENCE Local Preference is not applicable because this item does not require bidding or an award of a contract. FISCAL IMPACT There is no impact on the City's General Fund as a result of this action. Attachments: Equitable Community Revitalization Grant Agreement Vicinity Map Resolution to Accept ECRG Grant Funds