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HomeMy WebLinkAbout2020-69 - Approving a Substantial Amendment to the 2020-2021 Annual Action Plan for the Federal Community Development Block Grant ProgramRESOLUTION NO. 2020-69 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING A SUBSTANTIAL AMENDMENT TO THE 2020-2021 ANNUAL ACTION PLAN FOR THE FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM WHEREAS, the City of Newport Beach ("City") participates in the United States Department of Housing and Urban Development's ("HUD") Community Development Block Grant ("CDBG") Program; WHEREAS, HUD requires the City to prepare a Five -Year Consolidated Plan for the use of HUD grant programs outlining the use of the CDBG funds and the strategic vision for housing and community development in the City; WHEREAS, the City Council adopted Resolution No. 2020-51 on May 12, 2020 approving the 2020-2024 Consolidated Plan, the 2020-2021 Annual Action Plan, and the Citizen Participation Plan for the CDBG Program; WHEREAS, the 2020-2021 Annual Action Plan appropriates the CDBG annual grant and other available grant funds during the fiscal year; WHEREAS, as a result of COVID-19, the United States Congress passed the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") in March 2020, authorizing $2.2 trillion in stimulus measures to prevent, prepare for, and respond to the COVID-19 pandemic, including $2 billion for CDBG entitlement communities; WHEREAS, on March 4, 2020, California Governor Gavin Newsom issued a Proclamation of a State of Emergency followed by multiple executive orders including Executive Order N-33-20 ordering all residents to stay at home; WHEREAS, the City will receive an additional $219,324 from HUD under the CARES Act ("CDBG-CV"), which is separate and distinct from the City's regular allocation of CDBG funds; WHEREAS, a substantial amendment to the 2020-2021 Annual Action Plan is necessary because the CDBG-CV funds were not identified in the previously approved plans, therefore, the amendment is prepared to appropriate the CDBG-CV funds and create an economic development program to issue small business relief grants; Resolution No. 2020-69 Page 2 of 3 WHEREAS, the CDBG capital funds will be allocated to an economic development program to be determined and the CDBG-CV funds, must be appropriated to CDBG eligible activities consistent with the City's 2020-2024 Consolidated Plan; WHEREAS, in the event of a substantial amendment to an annual action plan, the Citizen Participation Plan normally requires a 30 -day public review period followed by a public hearing prior to adoption; however, in light of COVID-19, HUD reduced the notice period to 5 days and authorized the City to determine the form of notice pursuant to the Waivers of Community, Planning and Development ("CPD") Grant Program Requirements to Prevent the Spread of COVID-19 and Mitigate Economic Impacts caused by COVID-19; WHEREAS, on July 8, 2020, the City published notice on the City's website and sent an e-mail notification that the draft substantial amendment to the 2020-2021 Annual Action Plan would be available to the public for review and comment from July 8, 2020 to July 14, 2020; WHEREAS, a telephonic hearing was held by the City Council on July 14, 2020, due to the Declaration of a State of Emergency and Proclamation of Local Emergency related to COVID-19, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with the Ralph M. Brown Act and the Waivers of CPD Grant Program Requirements to Prevent the Spread of COVID-19 and Mitigate Economic Impacts approved by HUD. Evidence, both written and oral, was presented to, and considered by the City Council at this public hearing; and WHEREAS, the City Council desires to amend the 2020-2021 Annual Action Plan and approve the substantial amendment to the 2020-2021 Annual Action Plan. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council hereby approves the substantial amendment to the 2020- 2021 Annual Action Plan as provided in Exhibit A, attached hereto and incorporated herein by reference. Section 2: The City Council does hereby authorize: (a) the City Manager, or his/her designee, to: 1) submit the 2020-2021 Annual Action Plan as amended to HUD; 2) execute the CDBG-CV Grant Agreement and all related documents on behalf of the City; and 3) execute all subrecipient agreements with the organizations receiving allocations of CDBG and CDBG- CV funds in the 2020-2021 Annual Action Plan as amended; and (b) the Community Development Director, or his/her designee to be the official representative of the City to administer the program and submit required environmental documentation to HUD for CDBG projects. Resolution No. 2020-69 Page 3 of 3 Section 3: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 4: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 5: The City Council finds the approval of the substantial amendment to the 2020-2021 Annual Action Plan is exempt under 24 CFR Part 58, Section 58.34 of the National Environment Policy Act of 1969 ("NEPA"), as amended. Section 6: The City Council finds the adoption of this resolution and the approval of the substantial amendment to the 2020-2021 Annual Action Plan is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 14th day of July, 2020. Will O'Neill Mayor ATTES � �tiW P0,4� Leilani I. Brown City Clerk , rq�ifioa�'�P APPROVED AS TO FORM: CITY TTORNEY'S OFFICE .,— C Aaron C. Harp City Attorney Attachment: Exhibit A - Substantial Amendment to the 2020-2021 Annual Action Plan EXHIBIT A This page intentionally left blank. NEWPORT BEACH CITY COUNCIL Will O'Neill Mayor Brad Avery Mayor Pro Tem Joy Brenner Council Member Diane B. Dixon Council Member Duffy Duffield Council Member Jeff Herdman Council Member Kevin Muldoon Council Member This page intentionally left blank. TABLE OF CONTENTS ExecutiveSummary ....................................................................................1 Background..............................................................................................1 Sources....................................................................................................1 Uses of Community Development Block Grant (CDBG-CV).....................1 AP -15 Expected Resources........................................................................2 Matching Requirements........................................................................... 2 AP -20 Goals and Objectives....................................................................... 3 AP -35 Projects and activities ...................................................................4 AP -90 Program Specific Requirements.......................................................6 Appendices Appendix ACitizen Participation Appendix BSF-424, SF -424D, Certifications CARES Act Substantial Amendment to the 2020-2021 Action Plan EXECUTIVE SUMMARY Background Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the President signed it on March 27, 2020 authorizing $2.2 trillion in a variety of stimulus measures to prevent, prepare for, and respond to the COVID-19 pandemic. The law included $2 billion for Community Development Block Grant (CDBG) entitlement communities. The City of Newport Beach receives regular formula -based entitlement grants of CDBG funds through the United States Department of Housing and Urban Development (HUD) each year. Sources The City of Newport Beach will receive the following grant under the CARES Act: CDBG-CV $219,324 These funds are separate and distinct from the City's regular CDBG funds. As of June 15, 2020, HUD continues to release guidance for these programs containing modified program requirements. Subject to the CARES Act and emerging policy from HUD, the City Council is responsible for determining how CDBG-CV funds will be used to prevent, prepare and respond to the COVID-19 virus. This draft Action Plan Amendment describes the approved investment of CDBG-CV funds. Uses of Community Development Block Grant (CDBG-CV) Small Business Relief Grants $175,460 CDBG-CV Program Administration $43,864 Updated Uses of Regular Community Development Block Grant (CDBG) The original 2020-2021 Action Plan adopted on May 12, 2020 included a generalized activity for Economic Development Assistance using $250,371 of CDBG funds. Those funds will now be used for the Small Business Relief Grants project described in this Action Plan Amendment with specific numerical goals for the combined use of the regular CDBG resource and the CDBG-CV resource. CARES Act Substantial Amendment to the 2020-2021 Action Plan 1 AP -15 EXPECTED RESOURCES The CARES Act allocations from HUD include $219,324 of CDBG-CV funds. The period of performance for these grants under the law is from March 27, 2020 to September 30, 2022. Additionally, $250,371 of funding allocated to Economic Development Assistance in the original 2020-2021 Action Plan will be used in conjunction with CARES Act CDBG-CV funds. Table 1 — Expected Resources Program Uses of Funds Expected Amount Available Narrative Description Allocation: Program Prior Year Total: Income: Resources: Economic CARES Act Development allocation of CDBG-CV $219,324 $0 $0 $219,324 CDBG to Administration address COVID-19 Matching Requirements The Cares Act allocation of CDBG-CV funds does not require a local matching funds contribution. Note: Information on this page will also be used to update the 2020-2024 Consolidated Plan "SP -35 Anticipated Resources" section, adding the CDBG-CV allocation shown in Table 1. CARES Act Substantial Amendment to the 2020-2021 Action Plan 2 AP -20 GOALS AND OBJECTIVES Table 2 — Goals and Objectives Goal Name Time Period Category Needs Addressed Funding Goal Outcome Indicator CDBG-CV: Businesses Goal Economic Non -Housing Economic $175,460 Assisted: 20 Businesses Development 2020-2022 Community Development Development Regular Assistance CDBG: Jobs $250,371 Created/Retained: 16 Jobs Description: Provide technical assistance and additional support to small and micro businesses in the City of Newport Beach to provide job support and fulfill economic needs of low- and moderate -income residents. Provide one-time funding to small businesses located within the city that need financial assistance to aid in their recovery from the temporary loss of revenue due to the COVID-19 public health emergency. N/A Goal 3 CDBG-CV 2020- Program All CDBG-CV: Program 2022 Administration $43,864 Administration Subject to the CARES Act and emerging policy from HUD, including program regulations and waivers, CDBG-CV funds will be used to pay the City's costs to plan for the use of CDBG-CV funds, process all required grant administration documents, forms, agreements, and payments, and to monitor and report to HUD concerning implementation of activities in compliance with federal regulations. Note: Information from this page will also be used to update the 2020-2024 Consolidated Plan "SP -45 Strategic Plan Goals" section, adding CDBG-CV funds to the Economic Development Assistance and Program Administration goals. CARES Act Substantial Amendment to the 2020-2021 Action Plan 3 AP -35 PROJECTS AND ACTIVITIES To address the goals and objectives identified in Section AP -20, the City of Newport Beach will invest these funds for the project activities shown in the table below. Table 3 — CDBG-CV Project and Activities 1 Project Name Small Business Relief Grants Target Area Citywide Goals Supported Economic Development Assistance Needs Addressed Economic Development Funding CDBG-CV: $175,460 Regular CDBG: $250,371 Description Subject to the CARES Act and emerging policy from HUD, including program regulations and waivers, CDBG-CV funds will be used for the Small Business Relief Grant Program that provides one-time funding to small businesses located within the city that need financial assistance to aid in their recovery from the temporary loss of revenue due to the COVID-19 public health emergency. To be eligible to apply for the Small Business Relief Grant Program, a business must demonstrate the need for financial support due to the temporary loss of revenue resulting from the impact of the COVID-19 pandemic and the Stay at Home order in one of the following ways: • The business was deemed non-essential and was forced to shut down by the state or local government; Sales from the business are down more than 25 percent compared to the previous three months (Prior to February 15, 2020) or a comparable 3 -month period in 2019; • The business has had to lay off at least one of its employees (full- or part-time employee); or • One or more of the employees in the business have contracted COVID-19, while at work. For more information, please visit: https://www.newportbeachca.goy/government/departments/city- man aq er/small-busi ness-prog ram -q rant Target Date 9/30/2022 Accomplishments Approximately 20 businesses will be assisted, 16 Jobs Created/Retained Location Citywide Planned Activities Small Business Relief Grants (20 Businesses Assisted, 16 Jobs Created/Retained) CARES Act Substantial Amendment to the 2020-2021 Action Plan 4 2 Project Name CDBG-CV Program Administration Target Area Citywide Goals Supported Program Administration, Economic Development Assistance Needs Addressed Economic Development Funding CDBG-CV: $43,864 Description Subject to the CARES Act and emerging policy from HUD, including program regulations and waivers, CDBG-CV funds will be used to pay the City's costs to plan for the use of CDBG-CV funds, process all required grant administration documents, forms, agreements, and payments, and to monitor and report to HUD concerning implementation of activities in compliance with federal regulations. Target Date 9/30/2022 Estimate the N/A — Program Administration number and type of families that will benefit Location Citywide Planned Activities CDBG-CV Program Administration $43,864 CARES Act Substantial Amendment to the 2020-2021 Action Plan AP -90 PROGRAM SPECIFIC REQUIREMENTS In the implementation of program activities under the CDBG-CV Action Plan will follow all HUD regulations and some or all of the waivers made available by HUD concerning compliance matters such as program income, forms of investment, and overall low- and moderate -income benefit (if applicable). Community Development Block Grant -CV Program (CDBG-CV) The following tables address HUD regulatory requirements at 24 CFR 92.220(1)(1) concerning program income and CDBG-CV low- and moderate - income benefit. Table 4 — Proaram Income 1. The total amount of program income that will have been received polo before the start of the next program year and that has not yet been reprogrammed 0 2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0 3. The amount of surplus funds from urban renewal settlements 0 4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0 5. The amount of income from float -funded activities 0 Total Program Income: 0 Table 5 — Low- and Moderate -Income Benefit 1. The amount of urgent need activities* polo 2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low- and moderate -income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low- and moderate -income. Specify the years covered that include this Annual Action Plan. 100% a111VU11L 1U1 uiyeni ween activiiies may cnange depending on waivers issued by HUD subsequent to this Action Plan amendment. CARES Act Substantial Amendment to the 2020-2021 Action Plan 6 Summary of Public Comments To be inserted subsequent to the public review and comment period. P�Rj• n s STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; the foregoing resolution, being Resolution No. 2020-69, was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 14th day of July, 2020; and the same was so passed and adopted by the following vote, to wit: AYES: Mayor Will O'Neill, Mayor Pro Tem Brad Avery, Council Member Joy Brenner, Council Member Diane Dixon, Council Member Jeff Herdman RECUSED: Council Member Kevin Muldoon ABSENT: Council Member Duffy Duffield IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 151h day of July, 2020. dAz 4P70vl� Leilani I. Brown ' City Clerk Newport Beach, California