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2020-09-16 City Council Item No. 11.1 Community Development Block Grant (CDBG) Substanial Amendment to Program Year 19/20 Annual Action Plan for CDBG-CV Funds Presentaiton Regular MEETING - Additional Meeting MaterialsCommunity Development Block Grant (CDBG) Substantial Amendment to Program Year 19/20 Annual Action Plan for CDBG-CV Funds Citizen Participation Plan (CPP) Per the City’s Citizen Participation Plan,a Substantial Amendment to an Annual Action Plan is required when a “substantial”change is proposed, which includes: •The addition of a new activity or priority; •A change in the nature of an activity, its location, or its target population; or •A change of more than 50 percent in the amount of funds allocated to an activity. Community Development Block Grant-CV On June 17,2020,City Council accepted the allocation of $307,232 in CDBG-CV funds and recommended the use of the funds to the following activities: •Public Service Food Activities •Small Business Grants •Workforce Development Public Service Activities •Administration Costs Prior Actions from City Council On August 5,2020,City Council approved a professional service agreement with Social Work Action Group (SWAG). •Total contract $58,032 •$33,032 from PD General Funds On August 19,2020,City Council approved to replace the Small Business Grant Program from CDBG-CV funds to CARES Act funds due to mandatory restrictions requirements of the CDBG-CV program. Staff recommends re-programming the CDBG-CV funds originally allocated to the Small Business Grant Program to: Proposed Activities Activity Prior Budget Additional Budget Changes Small Business Grant Program (SBGP)$100,000 0 Program will use CARES Act Funds Public Services – Food Activity $100,000 $62,754 Funds from SBGP Social Work Action Group (SWAG)0 $33,032 Funds from SBGP Administration $30,232 $31,214 SBGP &Unallocated Funds Total $127,000 Projected Use of CDVG-CV Funds Activity Budget Public Services –Food Activity $162,754 Public Services –Computer Lab Program $50,000 Social Work Action Group (SWAG)$33,032 Administration $61,446 Total $307,232 Staff Recommendation 1.Conduct a Public Hearing; 2.Adopt a Resolution approving the Substantial Amendment to PY2019/2020 Annual Action Plan and; 3.Authorize staff to proceed with the submittal of the Substantial Amendment to HUD. Edna I. Lebrón, Sr. Management Analyst (951) 723-3713 or elebron@cityofmenifee.us