City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: FEBRUARY 21, 2023 FROM: OFFICE OF THE CITY MANAGER WARDS: ALL
SUBJECT: ANNUAL REPORT FOR CALENDAR YEAR 2022 CITYWIDE GRANT ACTIVITIES ISSUE:
Receive and file the Annual Report for Calendar Year 2022 Citywide Grant Activities.
RECOMMENDATION:
That the City Council receive and file the Annual Report for Calendar Year 2022 Citywide Grant Activities.
BACKGROUND:
The City Council has declared that it is a priority for the City of Riverside to maximize external revenue generation to address increasing costs for City services and to leverage existing city funding. Envision Riverside 2025 Strategic Plan includes High Performing Government strategic priority Goal 5.4 - Achieve and maintain financial health by addressing gaps between revenues and expenditures and aligning resources with strategic priorities to yield the greatest impact.
The City is a robust grant writing operation, and submits specialized grants across departments from small sums to multimillion dollar applications. However, as the City’s grant efforts have not been comprehensively shared, and are often shared one-at-a-time, it is difficult to get a sense of this large and varied operation. The goal of the City’s grant program is to secure funding for services and projects for which the City otherwise would be required to utilize local tax dollars and to secure funding for services/projects which the City otherwise might not be able to afford. Grants provide funding for many initiatives that simply would not have been possible utilizing general revenue sources. The City is also positioning itself to take advantage of a wave of funding at the federal and State level that will provide monetary assistance for city projects and programs over the next five years.
DISCUSSION:
In calendar year (CY) 2022, the City implemented major grants-related process improvements and received approximately $225,411,583 in new grant funds from various funding types including competitive, entitlements, COVID, and appropriations/earmarks. These individual process improvements and grants are described in more detail.
In December 2021, the City Manager’s Office began taking steps to strengthen grant operations by making more efficient use of City resources and securing additional grant awards. The citywide grants management function was consolidated under a Grants Administrator, who monitors and supports grant activity Citywide. Since that time, the City Manager’s Office has improved several key processes related to grant activities, strategic plan alignment, internal review, training, tracking, and reporting.
Process Improvements
The City Manager’s Office works closely with all grant-active departments to ensure that submitted grant applications are properly vetted and approved by the City Manager’s Office. To date, the following process enhancements have been implemented:
Updated the City’s Grants Administration Policy;
Established a panel of outside on-call grant writers;
Streamlined communication with stakeholders on State, federal and private funding opportunities; Automated the approval system for all grant applications submitted by the City; Established points of contact among department staff for technical assistance and engagement with regional agencies and elected representatives to obtain support for City applications; Improved comprehensive reporting processes on all citywide grant applications and awards; Formed an interdepartmental working group comprised of grant-active City department staff; Taken the lead on several key grants:
CaliforniansForAll Youth Fellow Grant – Employing youth fellows in the areas of sustainability, food insecurity, and COVID recovery.
Regional Climate Collaboratives Grant – a sustainability-oriented community planning grant centered in the Arlanza neighborhood.
Contacted all departments to determine grant leads and introduced the new grant function in the City Manager’s Office. 2022 Grants Overview
As illustrated in the Annual Report, both the number of citywide grant applications and awards, as well as the amounts applied for and awarded, have increased in the post-COVID environment. During calendar year 2022, the City of Riverside submitted 134 competitive grant applications with a combined value of $192,830,083. The City received 106 competitive grant awards with a combined value of $114,719,122. The City’s grant completion rate (applications versus awards) was 60%.
Note that COVID-19 pandemic-related grants and Citywide Entitlement Grants are excluded from this data and are discussed in a separate section of this report. Not all awards discussed in this report were applied for in CY22, and multi-year grants awarded in previous fiscal years are distributed to the City annually until the end of their grant terms. Grants that are in a closeout status in 2022 were also excluded from this analysis. Individual applications and awards are included in Attachments 1 and 2.
Table 1: Competitive Grants Summary
CY22 Grant Activity
Competitive Apps
Total
Value
Applications
134
$192,830,083
Awards
106
$114,719,122
In 2022, City staff managed over $225 million in grant funding. Funding received through annual grants impacted youth, affordable housing, transportation, climate change, planning, agriculture, library services, and public safety. Some of the outcomes are highlighted below. One-time grant-funded competitive project highlights (incomplete list) include:
Food Waste Prevention Grant $209,736 (Sustainability) Statewide Park Program (Patterson Park) $7,150,000 (Municipal Resources) Homeless Housing Assistance and Prevention $8,433,288 (Human Services) CaliforniansForAll Workforce Fellows $4,401,597 (Sustainability) CalRecycle Organics Grant $3,000,000 (Sustainability) The funding received by the City is comprised of 44% from State sources, 44% from federal agencies, and 12% from the County and private organizations. Also, the City received an approximately 60/40 split of non-competitive, or formula-based, allocations and competitive grant awards.
In terms of comparisons to the City’s General Fund, if the estimated General Fund (FY 2021/22) budget is approximately $312.6 million, then competitive grant work alone would be 37% of the General Fund, and all grant work (competitive, COVID, earmark, and entitlement) would be 72% of the General Fund total. Grant writing makes a substantial additional impact to the funded operations of municipal programs and projects, allowing the City to expand existing services and programs as well as onboard new initiatives that may have otherwise been financially out of reach.
Grant funded programs have real impacts for city residents. Highlights are included in the chart below.
Table 2: Grant Highlights
Public Works and Transportation
Public Safety
Began implementing a Clean Air Car Share program with 16 hydrogen fuel cell vehicles with free service for qualifying low-income residents.
Developed a Local Roadway Safety Plan using California Department of Transportation Grant funds.
Received 396 units of Naloxone to assist with response to the Fentanyl crisis. 564 overtime hours worked by officers, conducting education, prevention, and enforcement of laws related to driving under the influence of alcohol and other drugs. 20 members of the community attended educational presentations regarding costs and dangers of driving under the influence.
Housing and Homelessness
Parks and Youth
Housed 84 formally homeless individuals coupled with case management.
Placed 408 affordable units under construction and put another 281 affordable housing units into the pipeline for development.
Assisted 195 low-income renters with emergency assistance.
Completed the rehabilitation of a 23-bed non-congregate shelter facility.
Assisted 946 homeless individuals with shelter and case management.
Engaged 812 homeless individuals through Street Outreach.
Over 14,000 residents offered swim lessons or swim passes Over 12,000 hot meals served to seniors and teens
Arts, sports, and senior programs served over 1,000 local residents Also noteworthy are the many agencies, non-profits and businesses that secure competitive grants throughout the city. For example, the California School for the Deaf in Riverside received a $43 million State appropriation in 2022 for new athletic fields. UC Riverside received approximately $200 million from State support for campus expansions and student success. The total competitive grant dollars awarded within the city, but not directly awarded to the City, is not currently known and is something the City is looking to track for future reporting.
COVID-19 Recovery Assistance and State
Due to the unprecedented challenges of the COVID-19 pandemic that continued throughout FY2021/22, City departments successfully secured numerous competitive and formula-based emergency pandemic-related grants from State and federal sources in support of essential City functions. Most notably, the City received the second and final direct allocation of $36,767,594 in “Tranche II” American Rescue Plan Act (ARPA).
Table 3: COVID Relief Funding
Projects
COVID Relief
Grantor
Value
ARPA American Rescue Plan Act
Federal
$36,767,594
Shuttered Venue Operator Grant
Federal
$3,479,911
CARES Act CDBG Assistance to Small Business
Federal
$1,496,717
CARES Act Transportation
Federal
$6,608,589
TOTAL:
$48,352,811
It is also worth noting that other entities in the City have received State and/or federal COVID relief funding including, but not limited to, the County, Alvord Unified School District, Riverside Unified School District, UC Riverside, Riverside Community College District, and many small businesses and non-profits. This extent of limited term COVID relief funding within the city, but not to the City directly, is something the City is looking to track.
Appropriations/Earmarks from the State and Federal Budget The City also received (in partnership with other agencies) $51 million in State appropriations that benefit local infrastructure projects. Other supplemental funding that the City received through direct governmental appropriation is included in the following Table 4.
Table 4: State and Federal Appropriations
Projects
Budget Appropriations
Grantor
Value
Cesar Chavez Center Renovations
State
$25,000,000
Citrus State Historic Park Renovations
State
$25,000,000
Northside Ag Innovation Center
Federal
$1,000,000
TOTAL:
$51,000,000
Other entities in the City receive State and/or federal appropriations that are spent entirely or partially within the City. For example, UC Riverside received a federal appropriation of $2 million for the Opportunity to Advance Sustainability Innovation and Social Inclusion (OASIS) business incubator. The City wrote a letter of support for UCR’s OASIS. Similarly, the Third Street Grade Separation Project (RCTC) received a $3 million federal appropriation, and the Sunrise at Bogart Permanent Supportive Housing Development (NPHS) received a federal appropriation of $3 million. The extent of State and federal appropriations that fall within the Riverside city limits but that are not City-led initiatives is something the City is looking to track over the long term.
Entitlement Grants
Entitlement Grants provide annual grants on a formula basis to entitled cities and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons. Entitlement communities develop their own programs and funding priorities. However, grantees must give maximum feasible priority to activities which benefit certain defined populations, such as low- and moderate-income persons.
The City of Riverside is an “Entitlement Grantee” for the U.S. Department of Housing and Urban Development (HUD) allocations. “Entitlement cities” for HUD grants are central cities of Metropolitan Statistical Areas (MSAs), other metropolitan cities with populations of at least 50,000, and qualified urban counties with populations of at least 200,000 that are “entitled” to receive annual grants through a formula calculation. HUD determines the amount of each entitlement grant by a statutory dual formula which uses several objective measures of community needs, including the extent of poverty, population, housing overcrowding, age of housing, and population growth lag in relationship to other metropolitan areas.
Strategic investment of HOME Investment Partnerships Program (HOME), Emergency Shelter Grant (ESG), and Housing Opportunity for Persons with AIDS (HOPWA) funds have greatly improved the quality of life for many of the City of Riverside’s extremely low to low-income residents.
Specific accomplishments (2021-2022 Program Year) include:
Community Development Block Grant (CDBG) Program: A Low and Moderate Income (LMI) family of four persons would have a combined household income of approximately $70,400 (and below) in 2022. A total of 15,183 LMI persons were directly served through Public Facilities, Public Infrastructure, Fair Housing Services, Public Services, and Public Services (Housing) projects/activities completed. Local Non-profits assisted with CDBG funding (FY 22-23) include:
Arlington Temporary Assistance: $35,000
Assistance League of Riverside: $16,000
Big Brothers/Big Sisters of the Inland Empire: $11,000 Fair Housing Council of Riverside: $89,500
Girls on the Run Riverside County: $9,000
Inspire Life Skills Training: $17,000
Janet Goeske Foundation: $15,000
Junior League of Riverside: $15,000
Mercy House Living Center: $10,000
Operation Safe House (2 grants): $31,000
Rebirth Homes: $10,000
Riverside Area Rape Crisis Center: $18,000
Transgender Health and Wellness Center: $20,000
Voices for Children: $11,000
City of Riverside Office of Homeless Solutions (2 grants): $23,388 City of Riverside Parks, Recreation, and Community Services (7 grants): $105,000 HOME Investment Partnerships Act (HOME) Program: The City placed or continued to assist 81 formerly homeless individuals that obtained housing through the Tenant-Based Rental Assistance Program. One household was assisted through the housing rehabilitation program.
Emergency Shelter Grant (ESG): A total of 895 persons received overnight shelter during the year. 812 homeless individuals were engaged by outreach to assist with stabilization services; and 29 individuals received rental assistance and case management through the Rapid-Rehousing Program.
Housing Opportunities for Persons with AIDS (HOPWA) Program: A total of 453 eligible households received Housing Assistance, 437 eligible households received Supportive Services, and 88 households received Housing Information Services.
California Senate Bill 2, SB 2 established a Permanent Local Housing Allocation (PLHA) Program Fund and authorizes the California Department of Housing and Community Development (HCD) to allocate 70% of moneys collected and deposited in the PLHA Program Fund, beginning in calendar year 2019, to local governments for eligible housing and homelessness activities. The intent of the bill is to provide a permanent, on-going source of funding to local governments for housing-related projects and programs that assist in addressing the unmet housing needs of their local communities. The City received its 2020 award in 2021 totaling $1,622,125. The City will receive its 2021 and 2022 grants in 2023.
The Vista de La Sierra, an 80-unit affordable housing development partially funded under the PLHA Program, is under construction in 2022. The Aspire, a 32-unit multifamily affordable housing project for termed-out foster youth and homeless youth, funded under the PLHA Program, is also under construction.
Table 5: Entitlement Grants
Entitlement Grants
Annual Budget Appropriations
Grantor
Value
Community Development Block Grant (CDBG)
Federal
$3,198,814
HOME Investment Partnerships Act (HOME)
Federal
$1,488,133
Emergency Solutions Grant (ESG)
Federal
$271,229
Housing Opportunities for Persons with AIDS (HOPWA)
Federal
$3,606,878
Permanent Local Housing Allocation (PLHA)
State
$2,774,596
TOTAL:
$11,339,650
The City Manager’s Office, in partnership with City departments, will continue to look for ways to streamline the funding application process and encourage departments to maximize external funding activity, subject to staffing and grant eligibility.
The Chief Financial Officer concurs with this report.
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority 5 - High Performing Government and Goal 5.4 to maintain fiscal health by addressing gaps between revenues and expenditures.
This report also aligns with the five Cross-Cutting Threads:
Community Trust – Building grant capacity will serve the public interest by potentially expanding programs and completing projects with external funding; benefiting the City’s diverse populations, and resulting in greater public good.
Equity – Outside funding can be used to allow more City departments to be creative and competitive for grants, resulting in a more equitable distribution of funding opportunity that can reach populations citywide. In addition to grants supporting Citywide operations, City staff also seek grant funding to directly benefit disadvantaged communities and residents in need of aid.
Fiscal Responsibility – The City ensures to maximize outcomes in usage of grant funds as a way to lessen pressure on the General fund and other limited resources.
Innovation – This funding provides the City with the ability to create an innovative program for building capacity with the result in receiving greater external funding.
Sustainability & Resiliency – Riverside builds capacity to allow more departments to apply for grants, and compete for funding that allows the City to adaptively address resident needs.
FISCAL IMPACT:
There is no fiscal impact associated with this report. Specific grant applications and/or projects that require funding appropriations will be brought to the City Council separately for consideration.
Prepared by: Jeff McLaughlin, Grants Administrator
Certified as to
availability of funds: Edward Enriquez, Interim Assistant City Manager/Chief Financial Officer/City Treasurer
Approved by: Rafael Guzman, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Attachments:
Competitive Awards
COVID Awards
Presentation
2022 Annual Grant Performance Report ● Page 8