Item #06
Date: October 6, 2026
To: Mayor and City Council
From: Jeramy Chapdelaine, Public Works Director
Subject: CDBG Phase 1 and Phase 2 Street Improvement Grant Closeouts Recommendation:
Conduct a public hearing to receive staff report summarizing the expenditures and accomplishments under State CDBG Agreements 23-CDBG-10003 and 23A-CDBG-20005; solicit citizen input; and adopt Resolution No. 2026-XX approving grant closeout, authorizing the City Manager to execute the required closeout documents, and directing staff to submit them to the State Department of Housing and Community Development.
Background:
The U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) program authorizes the use of funds to assist low- and moderate-income families or aid in the prevention or elimination of slums or blight. There are two types of CDBG programs: “entitlement” and “non-entitlement”. Metropolitan cities and urban counties are entitled to receive annual grants under the “entitlement” program direct from HUD. Metropolitan cities are principal cities or Metropolitan Areas (MAs) or other cities within MAs that have populations of at least 50,000. Urban Counties are within MAs that have population of 200,000 or more excluding the population of metropolitan cities within their boundaries.
The “non-entitlement” program is administered by the State Department of Housing and Community Development (HCD). The City has applied for funding under the State’s competitive application process for many years and has been very successful obtaining monies for various projects/programs, including, but not limited to: Wildland Fire Truck, Street Improvements (Phase 1, 2 and 3); and senior voucher program and firehouse storage/decontamination facility with COVID-19 CDBG funds.
In 2024, the City received two grant agreements that funded construction activities for street improvements throughout the City. These projects are now complete and ready to be closed out with the State.
Discussion & Analysis:
Now that all funds have been expended and projects have been completed, HCD requires grantees to submit closeout documents for each contract that includes a public hearing requirement. Staff is now preparing those documents for the City Manager to review and execute, prior to submittal to HCD. Below is a brief summary of each grant contract.
Item #06
23-CDBG-10003 Phase I Street Improvements
HCD executed a standard agreement with the City in November of 2024. Construction for this project began in May 2025 and was completed by Lamon Construction Company in April of 2026. As Council is aware, this project included a scope change that allowed us to increase the area that saw the improvements. In total, $2,909,000 in CDBG grant funds were expended and reimbursed to the City. The work was conducted in Census Tract 402 / Block Group 5 with a total beneficiary count of 845 living within this area and 670 being listed as “low-moderate” income. 23A-CDBG-20005 Phase II Street Improvements
HCD executed a standard agreement with the City in September of 2024 for this funding. Construction for this project began in May 2025 and was completed by All American Construction, Inc. in May of 2026. In total, $3,300,000 in CDBG grant funds were expended and reimbursed to the City. The work was conducted in Census Tract 402 / Block Group 6 with a total beneficiary count of 1,300 living within this area and 810 being listed as “low-moderate” income.
Each standard agreement from CDBG comes with a 33-month expenditure term and a 36-month contract closeout. Staff is pleased to report that both of these contracts are being completed and will be closed out with the State approximately one year earlier than what the contract allows.
Environmental Review:
The action proposed in this item is administrative in nature and does not constitute a project under the California Environmental Quality Act (CEQA).
Legal Review:
The City Attorney has reviewed the legal documentation and approved as to form.
Fiscal Impact:
All CDBG funds utilized under these contracts were 100% grant funded. This action closes out the grant agreements.
Attachments:
1) Closeout Package 10003
2) Closeout Package 20005
3) Resolution 2026-XX