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CC - Item 4A - Public Hearing on Fourth Substancial Amendment to the FY 19-20 Annual Action Plan for CDBG-CV Funding AllocationROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: BEN KIM, CITY MANAGER °)"'' DATE: SEPTEMBER 13, 2022 SUBJECT: PUBLIC HEARING TO CONSIDER FOURTH SUBSTANTIAL AMENDMENT TO THE FY 2019-2020 ANNUAL ACTION PLAN FOR COMMUNITY DEVELOPMENT BLOCK GRANT — CORONA VIRUS (CDBG-CV) FUNDING ALLOCATION SUMMARY At the May 31, 2022, City Council meeting, Council requested Staff to review if a local non-profit, Wealth By Health, would qualify for funding from HUD's Community Development Block Grant — Corona Virus (CDBG-CV). Wealth by Health currently assists Rosemead residents with routine healthcare services related to the prevention and/or response to the COVID-19 pandemic. After several discussions, Wealth By Health was determined to qualify for the CDBG-CV funds and has agreed to all HUD requirements. Therefore, a Substantial Amendment to the FY 2019-2020 Action Plan is required to resource their activities in the community. It is recommended that the City Council conduct a Public Hearing to receive public input regarding the proposed Substantial Amendment and adopt the Fourth Substantial Amendment (Attachment A) to the FY 2019-2020 Annual Action Plan. BACKGROUND The U.S. Department of Housing and Urban Development (HUD) provides funding to states, counties, and cities in the form of a Community Development Block Grant (CDBG) to develop viable communities by providing resources for housing, suitable living environments, and expanded economic opportunities for low- and moderate -income persons. As an Entitlement City, the City of Rosemead is required to prepare and submit an Annual Action Plan to HUD which serves to update and delineate efforts in meeting the priorities established in the five-year Consolidated Plan. Through the Annual Action Plan, the City is able to identify specific needs and priorities, as well as identify programs and resources that will best meet the City's affordable housing and community development goals. On May 14, 2019, the City Council approved the FY 2019-2020 Action Plan. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act of 2020 (the "CARES Act") was signed AGENDA ITEM 4.A City Council Meeting September 13, 2022 Pape 2 of 4 into law to address healthcare inequalities in disadvantaged communities because of the COVID- 19 pandemic. The City has received two rounds of CDBG-CV funding totaling $972,328, to be used for activities that prevent, prepare for, or respond to the impacts of the pandemic. Founded in 2016 on the basis that attaining quality health care should be accessible to all people, Wealth by Health first established a mobile clinic to provide free health services for low-income, uninsured, and underinsured families. Through the generous support of donations, Wealth by Health provides accessible and vital health services for low-income individuals who lack access to affordable quality health care through our free health clinic program. Since the beginning of the COVID-19 pandemic, Wealth by Health quickly adapted to the changing needs of the global public health emergency and became a COVID-19 vaccine provider organization —administering COVID-19 vaccines in the effort to increase vaccinations and ensure vaccine equity, increasing COVID-19 testing, and dispensing lifesaving COVID-19 therapeutics consistent with FDA authorization and in accordance with the U.S. Department of Health and Human Services In accordance with the HUD 24 CFR Part 91.505, and the Citizen Participation Plan of Rosemead, a Substantial Amendment to the FY 2019-20 Action Plan is required for the City to reallocate CDBG-CV funds to Wealth by Health in support of their ongoing COVID-19 prevention and treatment services. The purpose of this Public Hearing is to provide the community with an opportunity to comment on the Substantial Amendment to the City's FY 2019-2020 Annual Action Plan. The City's Citizen Participation Plan states that the City shall amend the approved Annual Action Plan if a "substantial change" is proposed by City staff or the City Council. The Action Plan defines a "substantial change" as: • Carrying out an activity not previously described in the Action Plan; • Canceling an activity previously described in the Action Plan; • Increasing or decreasing the amount to be expended on a particular activity from the amount stated in the Action Plan by more than 50 percent; or • Substantially changing the purpose, scope, location, or beneficiaries of an activity. The proposed funding for Wealth by Health satisfies these criteria and therefore requires a Substantial Amendment. The following table exhibits the proposed Substantial Amendments to the CDBG-CV program activities and allocation: City Council Meeting September 13, 2022 Page 3 of 4 FY 2019-2020 Proposed Annual Action Plan Substantial Amendment (Fourth Substantial Amendment) CDBG-CV Activity Original Funding Proposed Fundis Change Food Banks $200,000 $140,000 Reduce funding under Food Bank activities because not all the funds can be used. Wealth by Health $0 $60,000 Add activity and fund with approximately $60,000 from Food Bank activity. During the Notice of Funding Availability (NOFA) period for CDBG-CV funds, the City received only one application requesting funding to provide a food bank. Staff does not anticipate that all the funding will be utilized this year for that activity. Therefore, the remaining uncommitted funds will be reallocated to Wealth By Health. Wealth By Health will be utilizing CDBG-CV funds towards medical equipment and supplies required to increase clinical capabilities; technology and protective equipment needed to implement proper safety protocols and thoughtful adjustments; program operational costs including clinic insurance, equipment transportation, utilities, and clinic promotion to underserved areas in need. STAFF RECOMMENDATION It is recommended that the City Council: 1. Conduct a Public Hearing and receive public testimony on the Substantial Amendment; and 2. Approve the Fourth Substantial Amendment to the FY 2019-2020 Action Plan. FISCAL IMPACT There is no impact on the General Fund. The proposed Substantial Amendment is to the CDBG- CV funds received in FY 2019-20 from HUD. STRATEGIC PLAN IMPACT The Substantial Amendment to the FY 2019-2020 Annual Action Plans implements the "Key Organizational Goals" of ensuring the City's continued financial viability by actively pursuing quality economic development; enhancing public safety and quality of life; and beautifying residential neighborhoods and commercial corridors. City Council Meeting September 13, 2022 Page 4 of 4 PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process, which includes a public hearing notice published in the Rosemead Reader on August 30, 2022, Attachment B. Copies of the proposed Substantial Amendment to FY 2019-2020 were available during the 15 -day public review and comment period from August 29, 2022, through September 12, 2022. Prepared by: l� Charlotte Cabeza Management Analyst Submitted by: Mike Bruckner Assistant City Manager Attachment A: Fourth Substantial Amendment to FY 2019-2020 Annual Action Plan Attachment B: Rosemead Reader Public Notice — Substantial Amendment and CAPER Attachment A Substantial Amendment to FY 2019-2020 Annual Action Plan CITY OF ROSEMEAD SUBSTANTIAL AMENDMENT TO FY 2019-2020 ANNUAL ACTION PLAN CITY OF ROSEMEAD PROPOSED SUBSTANTIAL AMENDMENT TO FY 20019 - 2020 ANNUAL ACTION PLAN Introduction On an annual basis, the City receives Community Development Block Grant (CDBG) and HOME Investment Partnership Program funds. In order to receive these grant funds, the City must adopt a Consolidated Plan. The Consolidated Plan serves as the City's 5 -year planning document for the use of the funds. The Consolidated Plan is carried out each fiscal year (July 1 — June 30) through an Annual Action Plan. The Annual Action Plan provides a concise summary of the actions, activities, and the specific resources that will be used each year to address the priority needs and specific goals identified by the Consolidated Plan. The City's current ConsolidatedPlan was adopted by the City Council in May 2020 and its current fiscal year (2022-2023) Annual Year Annual Action Plan was submitted to the U. S. Department of Housing and Urban Development'.WD) in May 2022. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act.. of 2020 (the "CARES Act") was signed into law by the Federal Government. The City of Rosemead recaved CDBG-CV funds to be used for activities that prevent, prepare for, or respond to the impacts of the Coronavirus. The City's Citizen Participation Plan states dtatthe City shall amend the approved Annual Action Plan if a "substantial change" is proposed by Citjr staff or the City Council. For the purpose of the Action Plan, a "substantial change" is defined as: • Carrying out an • Canceling an Action Plan; Plan; • Increasing or decreasing alta stent t4, be expended on a particular activity from the amount stated iA the Aetion Plan by more than 50 $ercent or • Substantially changing the purpose, scope, location, or beneficiaries of an activity. The proposed change meets one of these four criteria, and so requires a substantial amendment to FY 2019-2020 Annual Action Plan. The following table exhibits, the proposed Substantial Amendment to the CDBG-CV program activities and allocation: FY 2019-2020 Proposed Annual Action Plan Substantial Amendment (Fourth Substantial Amendment) Food Banks $200,000 $140,000 Reduce funding under Food Bank activities because not all the funds can be used. Wealth by Health I $0 1 $60,000 1 Add activity and fund with approximately Wealth by Health Steps Founded in 2016 on the basis that attaining quality health care should be accessible to all people, Wealth by Health first established a mobile clinic to provide free health services for low-income, uninsured, and underinsured families. Wealth by Health providers include dentists, dental hygienists, specialized physicians, pharmacists, registered nurses, acupuncturists, and optometrists. All members of the organization- including staff & healthcare providers — serve as volunteers. Since inception, no funds have gone towards personnel as all funds have gone directly towards program operations and administrative expenses. Since the beginning of the coronavirus outbreak, the team at Wealth by Health has been working endlessly to do their part in fighting this global pandemic. As COVID-19 spreads, it is more evident than ever that the pandemic has exasperated existing inequalities. The Wealth by Health Foundation remains committed in doing its part to care for the underserved populations, whose lives have been impacted most by this crisis. Wealth by Health has built a partnership with the City of Rosemead to bring free health services to Rosemead residents at the Rosemead Community Center. CITIZEN PARTICIPATION Review and Comment Period Copies of the proposed substantial amendment to FY 2019-2020 Annual Action Plan is available during the public review and comment period from August 29 through September 12, 2022. Copies of the proposed amendment will be available for public review on the City's website at www.citvofrosemead.org/. Those people wishing to comment on the proposed amendment or have any questions should submit written comments no later than 5:00 p.m. on Monday, September 12, 2022 to Charlotte Cabeza, Management Analyst, at 8838 E. Valley Blvd., Rosemead CA 91770, by email to ccabezat@citvofrosemead.ora, or by telephone at 626-569-2153. Public Hearing This item has been noticed through the regular agenda notification process, which includes a public hearing notice published in the Rosemead Reader on August 29, 2022. Copies of the proposed Substantial Amendment to FY 2019-2020 Annual Action Plan is available during the public review and comment period from August 29, 2022, through September 12, 2022. The City Council will hold a public hearing during the council meeting on Tuesday, September 13, 2022, at 7:00 pm. At that time, citizens and other interested parties are invited to provide comments on the proposed amendment to FY 2019-2020 Annual Action Plan. Public Comments Please insert any comments received during the public review/comment period. Attachment B Rosemead Reader Public Notice — Substantial Amendment and CAPER MAYOR: SEAN DANG MAYOR PRO TEM: JOHN TANG COUNCIL MEMBERS: SANDRA ARMENTA MARGARET CLARK POLLY Low 8838 E. VALLEY BOULEVARD ROSEMEAD, CALIFORNIA 91770 TELEPHONE (626) 569-2100 FAX (626)307-9218 CITY OF ROSEMEAD COMBINED NOTICE OF REVIEW/COMMENT PERIOD AND PUBLIC HEARING FOR PROPOSED SUBSTANTIAL AMENDMENT TO FY 2019-2020 ANNUAL ACTION PLAN AND FOR THE 2021-2022 CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT (CAPER) NOTICE IS HEREBY GIVEN that the City of Rosemead is proposing an amendment to FY 2019-2020 Action Plan. On an annual basis, the City receives Community Development Block Grant (CDBG) and HOME Investment Partnership Program funds. On March 27, 2020, the Corona- Virus Aid, Relief, and Economic Security Act of 2020 (the "CARES Act") was signed into law by the Federal Government. The City of Rosemead received two rounds of CDBG-CV 1 and CDBG-CV3 funds to be used for activities that prevent, prepare for, or respond to the impacts of the Coronavirus. In order to receive these grants, the City must adopt a Consolidated Plan. The Consolidated Plan serves as the City's 5 -year planning document for the use of the funds. The Consolidated Plan is carried out each fiscal year (July 1 — June 30) through an Annual Action Plan. The Annual Action Plan provides a concise summary of the actions, activities, and specific resources that will be used each year to address the priority needs and specific goals identified by the Consolidated Plan. The City's Citizen Participation Plan states that the City shall amend the approved Annual Action Plan if a 'substantial change' is proposed by City staff or the City Council. For the purpose of the Action Plan, a 'substantial change' is defined as: • Carrying out an activity not previously described in the Action Plan; • Canceling an activity previously described in the Action Plan; • Increasing or decreasing the amount to be expended on a particular activity from the amount stated in the Action Plan by more than 50 percent; or • Substantially changing the purpose, scope, location, or beneficiaries of an activity. A summary of the proposed substantial amendment to the CDBG-CV program allocations is shown below: FY 2019-2020 Annual Action Plan (Substantial Amendment #4) CDBG-CV Wealth By Health In addition to the Substantial Amendment, the City of Rosemead has a draft copy of the Consolidated Annual Performance and Evaluation Report (CAPER) for Program Year (PY) 2021-2022, as required by the United States Department of Housing and Urban Development (HUD). The CAPER assesses the City's progress in carrying out the first year (July 1, 2021 — June 30, 2022) of the Strategic Plan which is described in the 5 -Year (2020-2024) Consolidated Plan, regarding federal entitlement funding from the Community Development Block Grant (CDBG) Program, and the Home Investment Partnerships (HOME) Program. Review and Comment Period NOTICE IS HEREBY FURTHER GIVEN that the publication of this notice commences a minimum 15 -day public review period as required under Federal Regulation 24 CFR 91.105(b)(2) and the City's Citizen Participation Plan. Copies of the proposed substantial amendment to FY 2019-2020 Annual Action Plan will be available on the city's website www.cityofrosemead.ore/govemment/city departments/community development/housing. Physical copies will be available at City Hall, 8838 E. Valley Blvd., Rosemead, CA 91770 during the public review and comment period from August 291, 2022, and run through September 12, 2022. The public is invited to submit written comments on the draft document to Housing Division at 8838 E. Valley Blvd., Rosemead CA 91770, by email to HousingDivision(a),cityofrosemead.org. For any questions concerning this notice please telephone Ms. Charlotte Cabeza, Management Analyst, at (626) 569-2153. Public Hearing NOTICE IS HEREBY FURTHER GIVEN that the City Council will hold a public hearing during the Council Meeting on Tuesday, September 13, 2022, at 7:00 pm. At that time, citizens and other interested parties will be invited to provide comments on the 2021-2022 CAPER and Substantial Amendment to the 2019-2020 Annual Action Plan. Ericka Hernandez City Clerk City of Rosemead Publish: August 29, 2022