Fremont City Council Meeting: 09/12/23 07:00 PM
3300 Capitol Avenue Div/Dept: Information Technology Services Fremont, CA 94538 Category: Grants
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 4990) DOC ID: 4990
Updated: 8/31/2023 12:58 PM by Alberto Quintanilla Page 1
ACCEPTANCE OF THE FEDERAL FUNDING GRANT FOR THE SIX COMMERCIAL DISTRICTS WI-FI ACCESS EXPANSION PROJECT - Accept and Appropriate the U.S. Department of Housing and Urban Development funding grant in the amount of $1,500,000 for the Commercial District Wi-Fi Access Expansion Project Contact Persons:
Name: Jeremy Huynh Sanford Taylor
Title: Management Analyst II IT Director
Div/Dept: Information Technology Services Information Technology Services Phone: (510) 494-4847 510-494-4802
E-Mail: [email protected] [email protected]
Executive Summary: Staff seeks City Council approval to accept a grant awarded by the U.S. Department of Housing and Urban Development (HUD) to the City of Fremont in the amount of $1,500,000, to execute all necessary agreements and documents in connection with the grant award, and to appropriate and use the funds for the six Commercial Districts Wi-Fi Access Expansion Project.
BACKGROUND: On December 23, 2022, the U.S. Congress adopted the Consolidated Appropriations Act, 2023 (Public Law 117-328) (the FY2023 Act). The Federal Budget included “earmark” allocations to specific projects and programs identified by Federal legislators. With support from U.S. representative Rho Khanna (California's 17 th congressional district), budget allocation was provided to the six Commercial Districts Wi-Fi Access Expansion Project for the City of Fremont.
DISCUSSION/ANALYSIS: The City of Fremont Fiber Optic Master Plan was adopted by the City on July 19, 2022 and identifies areas where the City could strategically deploy community Wi-Fi zones in six commercial district plazas. These districts include Centerville, Irvington, Niles, Mission San Jose, Warm Springs and the Downtown City Center. The new citywide Wi-Fi zones will help address the digital divide issues in these areas by allowing for equitable access among residents and small businesses, who may otherwise not have access to high-speed Wi-Fi internet access. The landing pages for each of the zones will provide information regarding current events, transportation information, and directory of businesses local to that zone.
The City’s six neighborhood commercial districts are comprised of small-scale microenterprises with 67.5% of the City ‘s small businesses minority owned, 50% women owned, and 66% owned by persons born outside of the United States. Examples of this enriching diversity include several Afghan markets in Centerville, many antique stores in Niles, and the handful of South Asian boutique clothing stores in Irvington. These businesses are sustained by deep-rooted cultural and community relationships that make up the diverse resident base of Fremont. In many cases, these microenterprises are sustained with the help of lower operating costs because they occupy older and someti mes historically designated buildings, often co-locating with other small businesses to share in overhead expenses. However, the cost of broadband services encroaches directly into the income that these entrepreneurs would otherwise be able to generate and further invest. Because of the Council Staff Report (ID # 4990) Meeting of September 12, 2023 Updated: 8/31/2023 12:58 PM by Alberto Quintanilla Page 2 expense involved in private broadband services, many businesses opt to not pay for these expensive services instead of benefitting from this essential technology.
Furthermore, the neighborhoods within and immediately adjacent to our historic main street districts tend to be older, experiencing greater economic and social impacts than other parts of City of Fremont or Alameda County. For instance, the median per capita income in Irvington and Centerville is half and two-thirds the median per capita income for all of Fremont, respectively, and well-below the median per capita income for Alameda County as a whole. There are also unique age distributions in the neighborhoods immediately adjacent to Fremont's neighborhood commercial districts, such as Niles, with over 20% of the residents over the age of 65 and Centerville, with over 30% of its residents under 18. These demographic age groups both can benefit significantly from free and reliable community broadband and will be critical to support as Fremont looks to create an environment where people of all ages can come together and shop locally.
On March 2, 2023, the U.S. Department of Housing and Urban Development (HUD) notified the City of its intent to award grant funding for the amount of $1,500,000. Funds allocated by HUD shall be available for expenditure until August 31, 2031. Funding from HUD will enable the City to move forward with the installation of Wi-Fi Access in the Commercial Districts and help in reducing the digital divide issues in the City.
FISCAL IMPACT: Staff is recommending that the $1,500,000 for the Commercial District Wi-Fi Access Expansion Project from the U.S. Department of Housing and Urban Development be appropriated in the Federal Capital Grants Fund PWC9108-522.
ENVIRONMENTAL REVIEW: The recommended action related to accepting and appropriating the U.S. Department of Housing and Urban Development grant award is exempt from and not subject to review under the California Environmental Quality Act (CEQA) because, without limitation, it is not a “project” as defined in CEQA Guidelines Section 15378(b)(2) and/or 15378(b)(5) and as it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environmen t pursuant to CEQA Guidelines Section 15061(b)(3), each as a separate and independent basis for CEQA compliance.
Subsequent planning for the Commercial District Wi-Fi Access Expansion Project will include a community outreach process and preparation of an environmental clearance in accordance with CEQA guidelines.
ATTACHMENTS:
• Commercial District Wi-Fi Access Expansion - Grant Award Letter • Commercial District Wi-Fi Access Expansion - Grant Agreement • HUD Form 1044
RECOMMENDATIONS:
1. Accept the HUD grant funding in the amount of $1,500,000;
2. Appropriate $1,500,000, as well as any additional supplemental funding, to the Commercial District Wi-Fi Access Expansion Project – PWC9108-522; and Council Staff Report (ID # 4990) Meeting of September 12, 2023 Updated: 8/31/2023 12:58 PM by Alberto Quintanilla Page 3
3. Authorize the City Manager or designee to execute all necessary agreements and documents in connection with the grant award.