HomeMy WebLinkAbout2020.06.09 Agenda Packet - Special Meeting
City Council Agenda
Special Meeting
Tuesday, June 9, 2020
6:30 PM
PUBLIC ADVISORY:
Consistent with the Governor’s latest Executive Order to Stay at Home, avoid gatherings an d
maintain social distancing, this meeting will be conducted telephonically and Members of the
City Council and staff will be participating via Teleconference. There will be no physical meeting
location.
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five minutes per agenda item, unless the Mayor determines otherwise.
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you need special assistance to participate in the Council Meeting, please contact the City Clerk’s
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transcription will be available upon request the day following the Council Meeting.
The City of Diamond Bar thanks you in advance for taking all precautions to prevent
spreading the COVID-19 virus.
STEVE TYE
Mayor
NANCY A. LYONS
Mayor Pro Tem
ANDREW CHOU
Council Member
RUTH M. LOW
Council Member
JENNIFER "FRED" MAHLKE
Council Member
City Manager Dan Fox • City Attorney David DeBerry • City Clerk Kristina Santana
DIAMOND BAR CITY COUNCIL MEETING RULES
Welcome to the meeting of the Diamond Bar City Council. Meetings are open to the public and
are broadcast on Spectrum Cable Channel 3 and Frontier FiOS television Channel 47. You are
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have questions regarding an agenda item, please contact the City Clerk at (909) 839-7010
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PUBLIC INPUT
Members of the public may address the Council on any item of business on the agenda during
the time the item is taken up by the Council. In addition, members of the public may, during the
Public Comment period address the Council on any Consent Calendar item or any matter not on
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complexity of the matter, the length of the agenda, the hour and any other relevant
consideration. Speakers may address the Council only once on an agenda item, except during
public hearings, when the applicant/appellant may be afforded a rebuttal.
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conduct of the meeting may result in the speaker being removed from the meeting.
INFORMATION RELATING TO AGENDAS AND ACTIONS OF THE COUNCIL
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posted in the City’s regular posting locations, on DBTV Channel 3, Spectrum Cable Channel 3,
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City Council may take action on any item listed on the agenda.
HELPFUL PHONE NUMBERS
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available for public inspection immediately upon distribution in the City Clerk’s Office at 21810 Copley
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CITY OF DIAMOND BAR
CITY COUNCIL AGENDA
SPECIAL MEETING
June 09, 2020
CALL TO ORDER: 6:30 p.m.
PLEDGE OF ALLEGIANCE: Mayor
ROLL CALL: Chou, Low, Mahlke, Mayor Pro Tem
Lyons, Mayor Tye
APPROVAL OF AGENDA: Mayor
1. CITY MANAGER REPORTS AND RECOMMENDATIONS:
2. PUBLIC COMMENTS:
This public comment period is for items listed on the Special Meeting Agenda
ONLY. Although the City Council values your comments, pursuant to the Brown
Act, members of the City Council or Staff may briefly respond to public comments
if necessary, but no extended discussion and no action on such matters may
take place. There is a five-minute maximum time limit when addressing the City
Council. At this time, the teleconference moderator will ask callers one at a time
to give their name and they will then be called upon to speak during the Public
Hearing item.
JUNE 9, 2020 PAGE 2
3. PUBLIC HEARING:
3.1 AMENDMENTS TO THE FISCAL YEAR (FY) 2019/20 AND 2020/21
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAMS
PURSUANT TO THE CORONAVIRUS AID, RELIEF, AND ECONOMIC
SECURITY (CARES) ACT TO FACILITATE THE ESTABLISHMENT OF
THE BUSINESS RECOVERY PROGRAM AND FUNDING SOURCE
THERETO.
Recommended Action:
Receive presentation, open Public Hearing, receive testimony, close
Public Hearing, discuss, and:
1. Adopt Resolution No. (2020-16) approving Amendments to Fiscal Year
2019/2020 and 2020/2021 Community Development Block Grant
(CDBG) Program pursuant to the Coronavirus Aid, Relief, and
Economic Security (CARES) Act Allocating Community Development
Block Grant-Coronavirus (CDBG-CV) Program Funds; and
2. Approve the Business Recovery Program Policy.
Requested by: Community Development Department
4. COUNCIL SUB-COMMITTEE REPORTS AND MEETING ATTENDANCE
REPORTS/COUNCIL MEMBER COMMENTS:
5. ADJOURNMENT:
Agenda #: 3.1
Meeting Date: June 9, 2020
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: AMENDMENTS TO THE FISCAL YEAR (FY) 2019/20 AND 2020/21
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAMS
PURSUANT TO THE CORONAVIRUS AID, RELIEF, AND ECONOMIC
SECURITY (CARES) ACT TO FACILITATE THE ESTABLISHMENT OF
THE BUSINESS RECOVERY PROGRAM AND FUNDING SOURCE
THERETO.
STRATEGIC
GOAL:
Open, Engaged & Responsive Government
RECOMMENDATION:
Receive presentation, open Public Hearing, receive testimony, close P ublic Hearing,
discuss, and:
1. Adopt Resolution No. (2020-16) approving Amendments to Fiscal Year 2019/2020
and 2020/2021 Community Development Block Grant (CDBG) Program pursuant to
the Coronavirus Aid, Relief, and Economic Security (CARES) Act Allocati ng
Community Development Block Grant-Coronavirus (CDBG-CV) Program Funds; and
2. Approve the Business Recovery Program Policy.
FISCAL IMPACT:
As a participant in the Los Angeles Urban County’s CDBG program, the City will receive
an allocation of CDBG-CV funds of $137,962. The City also has $6,715 in unallocated
CDBG funds from a deferred loan repayment available, as well as $177,855 in FY
2020/21 CDBG funds to be repurposed from the Area 2 Curb Ramp Program, bringing
the total amount available for COVID-19 related projects to $322,532. The CDBG-CV
program does not impact the City’s General Fund.
BACKGROUND:
On March 27, 2020, the CARES Act was signed into law, providing an additional five
billion dollars in CDBG-CV funding to respond to the COVID-19 pandemic. Initially, two
3.1
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billion dollars is being allocated directly to state and local governments, with the
remaining three billion dollars to be distributed by the Department of Housing and Urban
Development at a later date under a new allocation formula. CDBG-CV projects must
meet all regular CDBG funding requirements and the goals of preventing, preparing for,
and responding to the COVID-19 pandemic. The City will be required to prepare and
submit additional reporting documents for the supplemental CDBG -CV funds.
DISCUSSION:
At the June 2, 2020 City Council meeting, the Council discussed and provided direction
to consider amendments to the CDBG program to provide funding resources to small
businesses in response to COVID-19. This includes consideration to amend the
previously approved CDBG Program for FY 2020/21 to delete the Area 2 Curb Ramp
Project in the amount of $177,885 and reallocate that funding to Business Relief efforts.
Deferral of the Area 2 Curb Ramp Project will not impact the overall sch edule to the
street rehabilitation in Area 2. Curb Ramp replacements typically are completed in
advance of any street repairs. At this time, Area 2 street rehabilitation is tentatively
scheduled for FY 2021/2022 budget permitting. The Curb Ramp project could be
reconsidered for the CDBG Program for FY 2021/22 without any impact to the schedule.
The proposed Business Recovery Program (Attachment 2) would provide eligible small
businesses $5,000 in grant assistance to be used to cover business costs, incl uding
rent, payroll, utilities, personal protective equipment (PPE), and the purchase and
installation of equipment to accommodate physical distancing. Program eligibility
requirements include:
• The business must employ a minimum of one low-moderate income employee(s),
rehire a low-moderate income employee(s) that was laid off, or hire a new low -
moderate income employee(s), and/or demonstrate that without the loan proceeds, a
low-moderate income job will be lost. Low-moderate income standards are
established by the Department of Housing and Urban Development on an annual
basis. For 2020 in Los Angeles County, low-moderate income is less than or equal
to 80% of the county’s median household income.
• The business must be independently owned and operated, and employs no more
than 25 full-time equivalent (FTE) employees.
• The business must have an established storefront in Diamond Bar and possess a
valid City of Diamond Bar Business License.
• The business must have been open for at least one year.
• Chains that are not locally franchised, home-based businesses, and any business
without a storefront in Diamond Bar will not be eligible.
As stated, $322,532 is available to fund the Business Recovery Program, which would
enable the City to award $5,000 grants to 64 businesses during this first round of
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CARES Act allocations. The remaining $2,532 may be added to future grant funding
and to cover minimal expenses associated with administering the program.
Applicants meeting initial eligibility review will be entered into a lottery. Lottery winners
will be asked to provide program documentation, and upon confirmation of full eligibility
will enter into a binding Grant Agreement. Full program rules and regulations are
included in the attached policy document. If more t han 64 grant applications are
received, those not initially selected will be placed in order of their lottery drawing, and
will be eligible to receive grants if any lottery winners ultimately do not qualify, or when
future grant funding is available.
NEXT STEPS:
Staff is in the process of completing the intake and application forms, and setting up a
dedicated page on the City Website for the Business Recovery Program, and
anticipates having the webpage ready to go live on Monday, June 15, 2020. Staff
recommends deployment of the program as follows:
JUNE 15–22 Advertise the program on the City website and social media, notify
email subscribers and business community partners, and announce
the program at the June 16 City Council meeting.
JUNE 22–24 Accept lottery intake forms during a 48-hour window commencing at 9
a.m. on Monday, June 22, and ending at 9 a.m. on Wednesday, June
24.
JUNE 25 Begin notifying lottery winners and commence the detailed application
process to verify eligibility.
A minimum of eight staff members will take part in the screening and vetting processes
to ensure that grants are disbursed as expeditiously as possible.
PREPARED BY:
REVIEWED BY:
3.1
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Attachments:
1. 3.1.a City Council Resolution No. 2020-16
2. 3.1.b Draft Business Recovery Program Grant Policy
3.1
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RESOLUTION NO. 2020-16
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND
BAR APPROVING AMENDMENTS TO THE FISCAL YEAR (FY) 2019/20
AND 2020/21 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROGRAMS PURSUANT TO THE CORONAVIRUS AID, RELIEF, AND
ECONOMIC SECURITY (CARES) ACT TO FACILITATE THE
ESTABLISHMENT OF THE BUSINESS RECOVERY PROGRAM AND
FUNDING SOURCE THERETO
WHEREAS, on March 27, 2020, the Coronavirus Aid, Relief, and Economic
Security Act (CARES Act) (Public Law 116-136) was signed into law, providing
supplemental Community Development Block Grant (CDBG) funding for grants to
prevent, prepare for, and respond to the COVID-19 pandemic; and
WHEREAS, funds have been awarded through the CARES Act to carry out the
Community Development Block Grant (CDBG) Program which was created under Title 1
of the Housing and Community Development Act of 1974 (Act); and
WHEREAS, the City of Diamond Bar has received notification of the availability of
$137,962 in Federal Community Development Block Grant-Coronavirus (CDBG-CV)
funds to further the attainment of these goals; and
WHEREAS, the City has $6,715 in unallocated CDBG funds accumulated from a
deferred loan repayment that may be used for COVID-19 related projects; and
WHEREAS, the City intends to repurpose $177,855 in previously-allocated fiscal
year 2020/21 CDBG funds for COVID-19 related projects; and
WHEREAS, the combined total of $322,532 is available to use for the CDBG-CV
projects; and
WHEREAS, the City of Diamond Bar’s Community Development Block Grant
Programs will be amended in order to receive CDBG-CV funding; and
WHEREAS, the City has posted the required Public Notice that provided
information on the CDBG-CV eligible activities and proposed project.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Diamond
Bar does hereby resolve as follows:
Section 1. The entire CDBG-CV Program balance of $322,532 shall be utilized to
fund grants issued through the Business Recovery Program.
Section 2. That the City Manager is authorized and directed to submit the City’s
CDBG-CV projects to the County of Los Angeles, reflecting the funding allocations set
3.1.a
Packet Pg. 9
Resolution No. 2020-16
2
forth herein. Should the City’s final CDBG-CV allocation increase or decrease by twenty-
five percent (25%) or less from the figures contained herein, the City Manager is
authorized to administratively adjust (i.e., increase or decrease) the revised funds to
eligible activities as necessary. Should the final allocation differ by more than 25%,
adjustments to fund allocations shall be subject to City Council review and approval.
Section 3. That the City Manager is authorized to execute the contractual and
related documents to be prepared by the County of Los Angeles that are required for the
implementation of the project/program set forth herein.
Section 4. This Resolution shall take effect from and after the date of its passage
and adoption.
PASSED, APPROVED, AND ADOPTED this 9th day of June, 2020.
Steve Tye, Mayor
ATTEST:
I, Kristina Santana, City Clerk of the City of Diamond Bar, do hereby certify that the
foregoing Resolution was duly passed, approved and adopted by the City Council of the
City of Diamond Bar at the special meeting held on the 9th day of June, 2020, by the
following Roll Call vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
Kristina Santana, City Clerk
3.1.a
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City Council Policy and Procedure
Number: Reviewed:
Effective Date: Revised Date(s):
City Council Policy Effective Date: , 2020 Page 1 of 5
Business Recovery Program
Purpose
1.1 In response to the COVID-19 pandemic, state and local authorities issued
emergency public health orders to limit the spread of infection, resulting in
unprecedented economic impacts across the country. The purpose of the
City of Diamond Bar Business Recovery Program (“Business Recovery
Program”) is to provide local small businesses with resources to weather
these impacts and maintain local jobs, retail center vibrancy, and the
City’s sales tax base that funds essential services such as public safety, road
maintenance, and parks and recreation facilities and programs.
Policy
1.2 The Business Recovery Program is established to provide a one-time
payment of $5,000 in grant funds to eligible small businesses pursuant to
program requirements.
1.3 The program will remain in effect until December 31, 2020 or until funds are
exhausted, whichever occurs first.
1.4 Under no circumstances will City officials or staff be a party to any lease for
which assistance is provided or have any interest, direct or indirect, in the
proceeds from a grant from this program.
1.5 The Business Recovery Program is primarily funded with resources provided
by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
(Public Law 116-136). Funding available under the CARES Act includes an
appropriation to carry out the Community Development Block Grant-
Coronavirus (CDBG-CV) Program. Projects must meet all regular CDBG
funding requirements in addition to the CDBG-CV goals of preventing,
preparing for, and responding to the COVID-19 pandemic.
1.6 The City reserves the right, at its sole discretion, to award all, a portion, or
none of the available CDBG-CV funding, and may reject any and all
proposals based on the quality and/or merits of the proposals, or when it is
determined to be in the public interest to do so. Furthermore, the City may
extend deadlines and timeframes, as needed. The City also reserves the
right to substantiate any applicant’s qualifications, financial information,
capability to perform, availability, past CDBG performance, etc.
3.1.b
Packet Pg. 11
City Council Policy (YEAR-NUMBER) Effective Date: Page 2 of 5
Eligibility
1.7 The business must currently employ at least one low-moderate income
employee, plan to rehire a laid-off low-moderate income employee, hire a
new low-moderate income employee, and/or demonstrate that without
the grant award, a low-moderate income job will be lost. “Low-moderate
income” is defined in federal Community Development Block Grant
(CDBG) standards for 2020 as less than or equal to 80% of the median
household income for Los Angeles County (See Reference/Exhibit 6.1).
Independent contractors do not qualify as employees.
1.8 The business must be an independently owned and operated business that
employs no more than 25 full-time equivalent (FTE) employees. FTE is
defined as a single full-time employee or multiple part-time employees that
work a total of 2,080 hours annually.
1.9 The business must possess a valid City of Diamond Bar Business License.
Business must have been in operation for a minimum of one year.
1.10 Grant shall be used for business-related expenses only, such as rent, payroll,
utilities, personal protective equipment (PPE), and the purchase and
installation of equipment to accommodate physical distancing.
1.11 Grant funds may not be used to finance personal debt, tax arrearages,
and/or government fines and/or penalties, purchase personal property, or
fund construction, personal income, political campaigns and/or lobbying.
1.12 The following business types are not eligible for Business Recovery Program
grants.
1.12.1 Chains that are not locally franchised. Local franchise owners may
not own additional franchises outside Diamond Bar.
1.12.2 Home-based businesses.
1.12.3 Any business without a commercial storefront in the City.
Application Process
1.13 Applicant must fully complete the grant application, which includes a
statement self-certifying that the loan proceeds are required to retain, hire,
and/or rehire a low-moderate employee.
1.14 Applications will be accepted for a defined period. At the close of the
application period, staff shall conduct an initial evaluation to determine
provisional approval. If an application is submitted and found be
incomplete, staff will contact the business owner to provide assistance. The
3.1.b
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City Council Policy (YEAR-NUMBER) Effective Date: Page 3 of 5
revised or completed application must be resubmitted by the specified
time to be re-entered into the review queue.
1.15 All applicants with provisional approval will be entered into a lottery held
on an established date. Applicants selected in the lottery will be contacted
by staff to provide supplemental documentation for verification before
entering into the Grant Agreement.
1.16 Required documentation may include, but is not limited to:
1.16.1 Microenterprise Certification Form
1.16.2 Special Economic Development Low-Moderate Job Creation
Certification Form
1.16.3 Payroll records/income certification.
1.16.4 Invoices.
1.16.5 Lease agreements, rent receipts and/or mortgage statements.
Award
1.17 Upon satisfactory review of the required documents, staff will issue a Notice
of Award to the applicant via email and provide the Grant Agreement for
signature.
1.18 The Grant Agreement contains binding terms and conditions and reporting
requirements and must be signed by the applicant and City Manager prior
to the disbursement of funds.
1.19 The term of the Grant Agreement shall be until all proceeds or spent but
may not exceed one year.
1.20 Failure to meet all terms and conditions of the Grant Agreement will result in
the full repayment of all grant funds within six months.
Monitoring & Reporting
1.21 Awardees will be required to submit supporting documents on a quarterly
basis until the funds have been fully expended. Required documentation
will vary based on the intended use of grant funds as stated in the
application.
1.22 The City will meet all reporting requirements of the CDBG-CV program.
Retention
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City Council Policy (YEAR-NUMBER) Effective Date: Page 4 of 5
1.23 All applicant information and supporting documentation will be recorded
accurately in an applicant file to demonstrate eligibility/ineligibility for this
program.
1.24 An approved applicant file shall contain all submitted information and
documentation necessary to meet all required eligibility criteria and
contain completed forms, documentation, and necessary information.
1.25 A denied applicant file shall contain all submitted information and
documentation, as well as the reason for denial.
1.26 The City shall maintain all applicant files, eligible and ineligible for no less
than a period of 5 years from the end of the program.
1.27 The City shall report, approved and assisted households, and their
corresponding assistance information, as directed by LACDA.
1.28 The City shall periodically report to-date households assisted in a numeric
and narrative format as directed by LACDA.
References/Exhibits
1.29 2020 Community Development Block Grant (CDBG) Low-Moderate Income
Guidelines
3.1.b
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City Council Policy (YEAR-NUMBER) Effective Date: Page 5 of 5
2020 Community Development Block Grant (CDBG) Low-Moderate Income
Guidelines for Los Angeles County
Number of Persons in
Household
Maximum Household
Income
1 $63,100
2 $72,100
3 $81,100
4 $90,100
5 $97,350
6 $104,550
7 $111,750
8 $118,950
3.1.b
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