HomeMy WebLinkAboutD-1 Staff Report - CARES ACT_SBGP ROUND 31
D-1
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: MATT MARQUEZ, DIRECTOR OF ECONOMIC AND COMMUNITY
DEVELOPMENT
DATE: FEBRUARY 7, 2022
SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG-CV) CARES ACT FUNDS
- A PUBLIC HEARING TO CONSIDER ADOPTING A RESOLUTION APPROVING
THE USE OF THE REMAINING $45,693 IN CDBG-CV FUNDS FOR THE EXPRESS
PURPOSE OF CONTINUING TO RESPOND TO, ADDRESS, AND MITIGATE THE
IMPACTS OF THE COVID-19 PANDEMIC BY PARTICIPATING IN ROUND 3 OF
THE LOS ANGELES COUNTY DEVELOPMENT AUTHORITY (LACDA) SMALL
BUSINESS GRANT PROGRAM
SUMMARY:
As authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on
March 27, 2020, the CARES Act provided $5 billion in additional Fiscal Year (FY) 2019-2020
Community Development Block Grant (CDBG) funding to prevent, prepare for, and respond to the
COVID-19 pandemic. The U.S. Department of Housing and Urban Development (HUD) was named as
the responsible federal agency to administer and distribute the CARES Act funds to state and local
governments that receive a CDBG allocation.
As a participating city in the Los Angeles Urban County CDBG Program, the City of Azusa received
approximately $241,825 in one-time only, supplemental FY 2019-2020 CDBG CARES Act funds
(CDBG-CV) for the express purpose of responding to, addressing, and mitigating the impacts of the
COVID-19 pandemic. Of the $241,825 CDBG-CV funds received, $45,693 remain unspent and it is
recommended that the unspent funds be used to participate in Round 3 of LACDA’s Small Business Grant
Program (SBGP).
PUBLIC HEARING/SCHEDULED ITEM
APPROVED
CITY COUNCIL
2/7/2022
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RECOMMENDATION:
It is recommended that the City Council take the following action:
1) Open the public hearing, receive testimony and presentation of the proposed eligible CDBG
CARES Act project,
2) Approval of a Resolution No. 2022-C08 approving the City’s participation in Round 3 of
LACDA’s CDBG-CV Small Business Grant Program; and,
3) Authorize the City Manager, or his designee, to execute all contracts, Agreements, and
Amendments, in a form approved by the City Attorney, with the Los Angeles County
Development Authority (LACDA) and if applicable, with each approved recipient/subrecipient
of the CDBG-CV Small Business Grant Program.
BACKGROUND:
Since 1974, the City of Azusa has participated under the Los Angeles Urban County Community
Development Block Grant (CDBG) Program. The Los Angeles County Development Authority
(LACDA) acts as the administrative pass-through agency for participating cities to receive CDBG funds
from the U.S. Department of Housing and Urban Development (HUD). Annually, the City receives
approximately $400,000 in federal CDBG funds. Azusa utilizes its annual CDBG funding for various
housing, public service and community development projects, such as Code Enforcement, Housing
Rehabilitation, youth tutoring and educational enrichment, senior and youth services, and, capital
improvement and public infrastructure projects, specifically construction of American with Disabilities
Act (ADA) compliant improvements.
On April 7, 2020, the Los Angeles County Development Authority (LACDA) notified all participating
cities in the Los Angeles Urban County CDBG Program that following congressional action on March 27,
2020 to pass the Coronavirus Aid, Relief, and Economic Security Act (CARES ACT), participating cities
would be eligible to receive a special, one-time only allocation of CDBG funds for the express purpose of
responding to, addressing, and mitigating the impacts of the COVID-19 pandemic. Azusa’s CDBG
CARES Act allocation was $241,825.
On May 18, 2020, the Azusa City Council authorized the City’s CDBG-CV allocation of $241,825
CDBG-CV to support two projects: one, an Emergency Utility Assistance Program ($60,825) and two, a
Small Business Grant Program ($181,000). An additional allocation of unspent CDBG funds in the
amount of $50,323 was added to the Small Business Grant Program, for a total of $231,323. Thus, the
total combined amount of CDBG and CDBG-CV funds available for both projects was $292,148. Since
the conclusion of these two projects, $45,693 of the City’s total CDBG-CV allocation of $241,825 remains
unspent.
DISCUSSION:
Emergency Utility Assistance Program
A total of 36 Azusa income-eligible residents participated in the Emergency Utility Assistance Program.
$21,109 in utility assistance payments were made directly to three separate utility companies on behalf of
the Azusa participants. Four participants received the maximum assistance allowed of $900. The average
amount of assistance provided per recipient was approximately $700. CDBG-CV funds also supported
administrative costs to implement the program.
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Small Business Grant Program
In addition to the Emergency Utility Assistance Program, the City successfully partnered with LACDA to
implement a small business grant program (SBGP/Round 1). One-time only business grants up to a
maximum amount of $10,000 were awarded to eligible local business owners to respond to the negative
impacts of COVID-19. The grants were used for a variety of business expenses including payroll, rent,
and utilities. Twenty-three (23) Azusa small business grants totaling approximately $216,000 were
awarded. Not all grants awarded were for the maximum amount of $10,000. The grants resulted in the
creation of 11 new jobs and the retention of 27 existing jobs, primarily jobs of low- and moderate-income
workers. Grants awarded to small businesses were administered in partnership with LACDA, who assisted
with screening, lottery selection, eligibility and payment of awards. CDBG-CV funds also supported
administrative costs to implement the program.
In October 2021, LACDA notified CDBG participating cities that an opportunity to partner with LACDA
and join Round 3 of a SBGP was under consideration. Interested cities that had unspent CDBG-CV funds,
were invited to join LACDA. The City currently has $45,693 in unspent CDBG-CV funds to allocate to
Round 3 SBGP. These funds will support approximately four new $10,000 small business grants.
The SBGP Round 3 will follow the same process and procedures of the prior round. Eligible businesses
will be selected through a lottery system, then screened and processed by LACDA through the award of
grant funds. The City is responsible for marketing the program, preparing and providing the SBGP
application materials to eligible businesses, and administrative support and coordination with LACDA.
CDBG SBGP ROUND 3 TIMELINE
Once the City Council hears and takes action on this matter, a CDBG CARES Act SBGP Round 3 funding
application(s) will be submitted to LACDA for review and approval. The City’s CDBG-CV SBGP
guidelines, eligibility determinations, and client applications will be updated and revised, if necessary. A
City portal system for receiving electronic client applications and performing evaluations will be
reinstituted. Once these tasks are complete, estimates place the start of SBGP Round 3 at or near March
1, 2022.
FISCAL IMPACT:
Allocate unspent CDBG-CV funds in the amount $45,693 to Round 3 of the Small Business Grant
Program. A small portion of program administration costs will be covered by the CDBG-CV remaining
allocation of $45,693. This CDBG-CV project was not anticipated when the City’s FY 2021-2022 budget
was adopted. Approved projects will be reflected as supplemental FY 2021-2022 funds in the City Budget.
This CDBG-CV project will allow the City to continue to prevent, respond to, and mitigate against
COVID-19 community needs with little impact to the General Fund.
Prepared by: Reviewed By:
Tina Gall Matt Marquez
CDBG Consultant Director of Economic and
Community Development
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Fiscal Impact Review: Reviewed and Approved:
Talika M. Johnson Sergio Gonzalez
Director of Administrative Services City Manager
Attachments: Resolution No. 2022-C08
ATTACHMENT 1
RESOLUTION NO. 2022-C08
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA
AUTHORIZING THE USE OF THE REMAINING $45,693 IN COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG-CV) FUNDING FROM THE
CORONAVIRUS AID RELIEF AND ECONOMIC SECURITY (“CARES”) ACT
WHEREAS, on March 27, 2020, the Coronavirus Aid Relief and Economic Security Act of
2020 (“CARES”) (H.R. No. 748) was signed into law, allocating additional funding to the Community
Development Block Grant (CDBG) program to respond, prevent, and mitigate against the effects of the
novel coronavirus (COVID-19); and
WHEREAS, the City of Azusa participates under the County of Los Angeles Community
Development Block Grant (CDBG) Program; and
WHEREAS, the Los Angeles County Development Authority is the County entity responsible
for the disbursement of CDBG CARES Act Grant Funds through the Small Cities Program to the City
of Azusa; and
WHEREAS, the City of Azusa received approximately $241,825 in FY 2019-2020
supplemental CDBG CARES Act funds; and
WHEREAS, approximately $45,693 remain in unspent CDBG CARES Act funds to allocate to
a new CDBG CARES Act project; and
WHEREAS, the City Council provided the opportunity for public input regarding the City's
CARES Act funds.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Azusa does
hereby take the following actions:
SECTION 1. Consider and approve the use of remaining CDBG CARES Act (CDBG-CV)
funds in the amount of $45,693 and submit the approved project and funding application to the Los
Angeles County Development Authority.
SECTION 2. Approve inclusion of said remaining CDBG CARES Act allocation of $45,693 in
the City of Azusa annual budget.
SECTION 3. Authorize the City Manager to execute all necessary contracts, agreements, and
amendments with the Los Angeles County Development Authority and, if applicable, with approved
recipients/subrecipients of the CDBG CARES Act program, together with any changes therein which
may be approved by the City Manager and, as necessary, the City Attorney.
SECTION 4. Authorize staff to adjust the FY 2021-2022 CDBG Program and budget, as
necessary, to take into account the remaining CDBG CARES Act allocation available and make any
programmatic changes necessary to fulfill the requirements of the CDBG CARES Act Program.
SECTION 5. The City Clerk shall certify the adoption of this resolution.
PASSED, APPROVED AND ADOPTED this 7th day of February, 2022.
____________________________________
Robert Gonzales
Mayor
ATTEST:
____________________________________
Jeffrey Lawrence Cornejo, Jr.
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution No. 2022-C08 was duly adopted by the
City Council of the City of Azusa, at a regular meeting of said City Council held on the 7th day of
February 2022, by the following vote of the Council:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
___________________________________
Jeffrey Lawrence Cornejo, Jr.
City Clerk
APPROVED AS TO FORM:
___________________________________
Best Best & Krieger, LLP
City Attorney