For City Council Meeting March 11, 2025
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
AUTHOR: Cynthia Alvarado, Director of Parks, Recreation, and Community Services
Title
Request City Council to: (1) Conduct Public Hearing continued from February 25, 2025, to solicit public comments from interested citizens; (2) Adopt Resolution No. 8328 approving Substantial Amendment No. 7 to the Fiscal Year 2020-2021 Annual Action Plan; (3) Authorize the City Manager or designee to submit the Substantial Amendment of Annual Action Plan to the U.S. Department of Housing and Urban Development (HUD); (4) Authorize the City Manager or her designee to take all actions necessary to implement the programs identified in the AAP; and (5) Authorize the City Manager or designee, to make all conforming modifications and edits, and to execute all implementing documents required by HUD in a form approved by the City Attorney.
(ACTION)
Body
RECOMMENDATION
Staff recommends that the City Council:
1. Conduct Public Hearing continued from February 25, 2025, to solicit public comments from interested citizens;
2. Adopt Resolution approving Substantial Amendment No. 7 to the Fiscal Year 2020-2021 Annual Action Plan;
3. Authorize the City Manager or her designee to submit the Substantial Amendment of Annual Action Plan to the U.S. Department of Housing and Urban Development (HUD);
4. Authorize the City Manager or her designee to take all actions necessary to implement the programs identified in the AAP; and
5. Authorize the City Manager or her designee, to make all conforming modifications and edits, and to execute all implementing documents required by HUD in a form approved by the City Attorney.
BACKGROUND
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which appropriated nearly $2 trillion nationwide for COVID-19 pandemic relief funding. $5 billion of these CARES Act funds, referred to in the report as CDBG-CV funds, were appropriated to the Community Development Block Grant Program (CDBG) to assist state and local governments in their COVID-19 response.
CDBG CARES Funding
The CDBG program is a federally funded program of HUD that provides funding for housing, community facilities, and public services. On April 2, 2020, HUD announced the allocation of the first $2 billion in CARES Act funding for current CDBG grantees. The CARES Act builds on features of the existing CDBG program as well as precedent set by CDBG Disaster Response (CDBG-DR) supplemental appropriations. The act directs HUD to administer these funds, pursuant to Section 106 of the Housing and Community Development Act of 1974 (42 U.S.C. 5306). This provision calls for HUD to allocate the supplemental funds to CDBG grantees - including eligible local governments, states, and insular areas - proportional to their conventional Fiscal Year 2020 CDBG allocation, as published by HUD in April 2020.
CDBG-CV funding is intended to prevent, prepare for, and respond to coronavirus based on public health needs, risk of transmission of coronavirus, number of coronavirus cases compared to the national average, and economic and housing market disruptions. The remaining funds will be distributed to states and units of local government on a rolling basis, at the discretion of the Secretary of the U.S. Department of Housing and Urban Development, with formula factors to be defined by HUD.
The City received $1,339,584 in Supplemental Community Development Block Grant Coronavirus (CDBG-CV) funding to help prepare, prevent, and respond to the COVID-19 pandemic. The City amended their 2020-2021 Annual Action Plan to allocate funds to programs and activities throughout the City to help eligible residents in the community who were impacted by the pandemic. In June 2020, The City initiated and implemented the CDBG-CV programs as follows:
Over the course of two years, several substantial amendments were approved to meet the changing needs of the community. On May 9, 2023, the City Council approved Substantial Amendment No. 6 appropriating $1,339,584 of CDBG-CV funds to the programs below:
The City’s CDBG Ad-Hoc Committee held a public meeting on July 18, 2024. The Ad-Hoc Committee comprised of Mayor Robertson and Council Member Trujillo, were presented with a program status update. The Ad-Hoc Committee reviewed the programs and further discussed potential reprogramming of funds. The only active program funded by CDBG-CV is the Store Front Small Business Assistance program. The Ad-Hoc Committee recommended amending the Storefront Small Business Assistance Program guidelines to allow applicants to demonstrate a loss of income, thereby extending the review period for income loss through 2023. This amendment was approved during the City Council meeting on August 13, 2024.
Additionally, the Ad-Hoc Committee recommended implementing an application process for the remaining balance of funds whereby Community Based Organizations, like that of the CDBG Subrecipient process, could apply. The Ad-Hoc Committee’s recommendation was also approved by the City Council during the August 13th Council Meeting. Applications for CDBG-CV were solicited through a Notice of Funding Availability (NOFA) which was published on October 3, 2024. An application workshop was held on Wednesday, October 16, 2024, and applications were accepted until Friday, October 25, 2024. A total of 6 applications were received.
The City’s CDBG Ad-Hoc Committee held a public meeting on January 23, 2025. The Ad-Hoc Committee comprised of Mayor Baca and Council Member Perez, were presented with a status update of the current CDBG-CV programs and funds. The overview of the current CDBG-CV funding activity allocation included a summary of each program’s current allocation and what has been expensed to date as follows:
The only active program currently funded by CDBG-CV is the Store Front Small Business Assistance program. Although the program guidelines were amended, there are no applications under review, as all submitted applications have been evaluated by staff for completeness and eligibility.
The CDBG-CV application process produced a total of 6 applications as follows:
ANALYSIS/DISCUSSION
The City has until February 2027 to spend the remaining balance of CDBG-CV funds. To date, the City has expended a total of $899,136.60 of CDBG-CV funds. Thus, leaving a remaining balance of $440,447.40 in CDBG-CV funds available for reprogramming.
Ad-Hoc Committee Recommendations
The Ad-Hoc Committee discussed the following program and funding recommendations during the January 23rd Ad-Hoc Committee Meeting:
• Decrease the Rental/Mortgage/Utility Assistance activity by $26,497.29
• Decrease the Small Business Storefront Assistance activity by $106,000.00
• Cancel the PPE & Hot Meals for Seniors in the total of $25,260.00
• Decrease the Social Work Action Group (SWAG) activity by $82,690.11
• Cancel the Warming Centers Activity in the total of $200,000.00
• Addition and funding of the following Public Services Activities:
• Senior Support Services - $37,000
§ Senior Support Services Program will staff a nutritionist who will teach seniors impacted by the pandemic how to prepare healthy meals and provide groceries. Additionally, it will offer access to mental health services, COVID education, and testing.
• COVID Test Kits and PPE - $40,000
§ Monthly distribution and disposal of COVID test kits and PPE at the Johnson's Community Center.
• Mobile Food Distribution - $100,000
§ The Mobile Food program will improve access to nutritious foods for low-income residents impacted by the pandemic at the Rialto Peach Center. The Program also provides food delivery to seniors in low-income areas.
• Rialto Legal Services - $50,000
§ The Rialto Legal Services program will provide legal representation to Rialto residents. It includes preparing legal documents and providing support to help residents prevent homelessness, maintain family unity, and protect against abuse. This initiative aims to enhance the well-being and prosperity of Rialto’s community impacted by the pandemic.
• Landlord Tenant Services Coronavirus Project - $40,000
§ This landlord/tenant Coronavirus program will provide information, education, and mediation services to residents of Rialto who have been impacted by the Coronavirus.
• Reprogram remaining funds in the amount of $173,447.40 for outdoor park improvements throughout the City to help prevent and reduce exposure to COVID-19.
§ Facility and Infrastructure Improvements:
• Construction or renovation of outdoor fitness stations, trails, or walking paths.
• ADA improvements, such as accessible pathways and ramp installations to make the park inclusive.
§ Recreation and Community Engagement Spaces:
• Upgrades to playgrounds and play structures to include antimicrobial surfaces and touch-free features.
§ Security and Lighting Improvements:
• Installation of security cameras and improved lighting to promote safety and increase access to public spaces.
• Addition of fencing or barriers to control crowd flow and maintain public health guidelines.
Below are the parks that can be considered for CDBG-CV funding along with suggestions on projects that qualify for the use of the CV funding:
Anderson Park 726 S Lilac Ave, Rialto, CA 92376
ELIGIBLE
• Replacement of outdoor exercise equipment and installation a shade structure
• Installation of security cameras around the park, and parking lot
• Replacement of play structure and removal of wood chips installation of rubber surfacing
Rialto City Park 130 E. San Bernardino, Rialto CA 92376
ELIGIBLE
• Installation of shade structure over the outdoor courts
• Installation of security cameras around the park, and parking lot
• Replacement of play structure and removal of wood chips installation of rubber surfacing
Margarett Todd Park (Rialto Community Center) 201 N Willow Ave. Rialto, CA 92376
ELIGIBLE
• Installation of security cameras around the park, and parking lots
• Replacement of play structure
Bud Bender Park 235 N. Lilac Ave., Rialto, CA 92376
ELIGIBLE
• Installation of security cameras around the park, and parking lots
Joe Sampson Park 650 W Randall Ave, Rialto, CA 92376
ELIGIBLE
• Installation of security cameras around the park, and parking lots
• Shade structure installation over the playground
The following park has CDBG eligible areas (the entire park is not eligible):
Frisbie Park
1901 N Acacia Ave, Rialto, CA 92376
• Installation of security cameras around the park, and parking lots
• Installation of security cameras around the park, and parking lots
• Shade structure installation over bleachers, or playgrounds
Substantial Amendment
Reprogramming of CDBG-CV funds requires an amendment to the City’s 2020 Annual Action Plan. In accordance with the City’s Citizen Participation Plan, when a substantial change (i.e., adding an activity, canceling an activity, redirecting funds, or receiving additional funding) is proposed to an adopted city Annual Action Plan, HUD requires that the public be notified, and a public hearing be held to allow the public an opportunity to comment on the proposed substantial changes.
In compliance with the City’s approved Citizen Participation Plan and implementing regulation 24 CFR 92-105, a Public Notice was published to solicit public comments from interested citizens and to consider and approve the proposed Substantial Amendment No. 7 to the 2020-2021 Annual Action Plan. The public hearing was noticed on January 24, 2025. The 30-day public review and written comment period began on January 24, 2025, and ran through February 25, 2025. This item was presented to the Ad-Hoc Committee on January 23, 2025.
Proposed Annual Action Plan Amendment
Based on feedback staff received during the January 23rd Ad-Hoc Committee Meeting, the following recommendations are presented to the community and the City Council for consideration. City Council direction and approval is required to reprogram previously allocated CDBG-CV funds as part of Substantial Amendment No. 7.
ENVIRONMENTAL IMPACT
The request is not a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA).
GENERAL PLAN CONSISTENCY
Guiding principle: Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW
The City Attorney's Office has reviewed the staff report.
FINANCIAL IMPACT
Operating Budget Impact
There is no impact to the Operating Budget.
Capital Improvement Budget Impact
There is no impact to the Capital Improvement Budget.
Licensing
Approval of this action does not require a Business License application and payment of a Business License tax.