DATE: October 25, 2022
TO: Mayor and City Council
FROM: Assistant City Manager
SUBJECT: Adopt Resolutions Authorizing the City Manager to Accept $1,500,000 in Federal Grant Funds and to Execute Grant Agreements for Federal and State Funds for the Stack Center
RECOMMENDATION
That Council adopts 1) a resolution authorizing the City Manager to accept and appropriate $1,500,000 in federal Community Project Funding for the Stack Center and execute associated grant agreements (Attachment II), and 2) a resolution authorizing the City Manager to execute all grant agreements for the Clean California Grant (Attachment III).
SUMMARY
The City has received four grants for construction of the Stack Center. Council accepted the first grant for $1,000,000 from the state General Fund in January of 2022 and accepted the second grant for $2,647,000 from CalTrans Clean California funds in May of 2022. This item is to officially accept the third grant of $1,500,000 in federal Community Project funds and to authorize the City Manager to execute all associated grant agreements. In addition, staff is returning with a resolution authorizing the City Manager to execute all grant agreements for the Clean California grant because Caltrans is requesting specific language that was not included in the May resolution. The City recently received a fourth grant from the State Library's Building Forward funds for $8,558,000. Staff will return in the coming months with a resolution to accept that grant.
BACKGROUND AND DISCUSSION
Community members and elected officials have long held the dream of building a new South Hayward Youth and Family Center at the corner of Tennyson and Ruus Roads, referred to as the Stack Center. For the past seven years, the City and its partners have worked to make this dream a reality.
Staff gave a full update to the Council on the Stack Center project on May 3, 2022. At that time, Council directed staff to move forward with a phased approach to construction. Staff has since hired a construction manager and is working with the architect to prepare the permits and bid package for Phase 1. The Phase 1 project will go to bid in early 2023.
The City has received four grants to pay for Stack Center construction:
State General Fund: $1,000,000
Federal Community Project Funding: $1,500,000
CalTrans Clean California funds: $2,647,000
State Library’s Building Forward funds: $8,558,000
At the May meeting, Council passed a resolution to accept a $2,647,000 grant from CalTrans through their Clean California grant program. Subsequently, staff received the grant paperwork from CalTrans, which included a resolution with specific language that was not included in the May resolution. Therefore, staff is returning with a second resolution (Attachment III) that authorizes the City Manager to execute all grant agreements with Caltrans.
In addition, staff is requesting Council adopt a resolution officially receiving the federal Community Project Funding grant for $1,500,000 (Attachment II). Staff received verbal notice that the City had received this grant in early 2022, but was waiting to receive the official offer, which came in August. The federal administration for this grant has been assigned to Department of Housing and Urban Development.
Once staff receives the paperwork from the State Library, staff will return to Council with a resolution to accept the $8,558,000 Building Forward grant and to authorize the City Manager to execute grant agreements.
FISCAL IMPACT
There is no match for the Community Project Funding grant and the adopted Capital Improvement Program budget includes sufficient matching funds for the Clean California grant, so accepting these grants will have no impact on the City’s funds. With these grants, the City currently has enough funds to complete the first phase of construction, which is estimated to cost $8.4 million. There is currently a funding gap of approximately $14 million for the second phase of construction, which is estimated to cost $36 Million.
STRATEGIC ROADMAP
This agenda item is part of the City’s Strategic Roadmap as Support Quality of Life project 1:
Oversee the rebuilding of the South Hayward Youth and Family Center (the Stack) Prepared by: Mary Thomas, Management Analyst
Recommended by: Jennifer Ott, Assistant City Manager
Approved by:
_________________________________
Kelly McAdoo, City Manager
May 3, 2022 Item: https://hayward.legistar.com/LegislationDetail.aspx?ID=5636901&GUID=CB6E2136-3BB8-489B-9095-4BC2CD862496&Options=&Search=