Coachella Council Pumps Brakes on $656,000 in Federal Grant Spending

Coachella has $656,000 in banked federal block grant money, a long list of possible uses and a council that won't sign off without seeing the math. At a Nov. 10, 2026 special meeting, the City Council sent the Community Development Block Grant plan back to staff, reshaped a $150,000 city name sign into a broader signage plan, and unanimously approved two items: an environmental clearance for chromium-6 water treatment and a three-year regional homelessness agreement.

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• $656,000 in CDBG funds held until staff returns with project costs and funding gaps
• $150,000 illuminated "Coachella" sign at Ninth Street Park reworked into a citywide signage plan
• Chromium-6 treatment clears environmental review 5-0, keeping a state grant application on track
• Three-year CVAG Housing First deal approved 5-0, at $64,500 from the general fund this year
• 21 sleep-aid-related deaths in two years reported, but council wants research before any ban

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No Blank Check for Block Grant Dollars

The basics: Community Development Block Grants are federal U.S. Department of Housing and Urban Development (HUD) funds for projects that benefit lower-income neighborhoods. Coachella's allocation runs through Riverside County.

Why it matters: The city has skipped spending two years of allocations. Staff warned that money must be spent within a year of any application and that the county may reallocate unspent funds.

Where things stand: Staff said the council banked its FY 2025-26 and FY 2026-27 allocations, which brings the balance to $656,000. Another $217,000 is estimated for FY 2027-28. The council can apply for the full amount, apply for part of it, or keep banking.

Staff listed several candidate uses:
- A home enhancement program, which previously spent about $500,000 on 24 homes
- The library annex or CRC
- Rancho Las Flores Park
- Targeted code enforcement, though the county discourages general staffing costs
- A storefront facade program limited to exterior work
- A dog park

Councilmember Juan M. Martinez backed facade grants that require businesses to put up their own money. "Maybe we can do a matching grant, example, 50/50," said Martinez.

The other side: Councilmember Denise Delgado opposed spreading the money across too many projects. She asked staff for a project-by-project breakdown of the city's contribution and other funding sources. "When you're dividing it up that way, you're just not getting as much for each project," said Delgado.

Mayor Frank Figueroa said he wanted to spend all of the money, but only after seeing the full picture. He did not want to simply tell staff, "here's a blank check for $656,000."

Decisions and stakeholder impacts: The council took no vote. Staff will return with a synthesis of project possibilities, including costs and funding gaps. One councilmember recused from the item. The delay protects against a scattershot spend. It also keeps homeowners waiting on repair grants, small businesses waiting on facade help and park advocates waiting on Rancho Las Flores improvements, while the federal spending clock keeps running.

What's next: Staff will bring back a gap analysis at a future meeting.

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A $150,000 Sign Becomes a Signage Plan

Why it matters: The Public Arts Development Impact Fee Fund holds $488,673. Staff said the money must be used or returned, so how the council spends it shapes downtown's look and the city's tourism pitch.

Where things stand: The Cultural and Arts Commission recommended up to $150,000 for a three-dimensional illuminated "Coachella" sign at Ninth Street Park. Staff cited safety, parking and synergy with the arts district. The commission ranked the park above three alternatives: the transit hub, the Cesar Chavez Street and Park Lane entry, and a future roundabout. Written comments from Rhonda Barata, Jenny Tom and Dewey Tan Nguyen all supported the sign.

"They selected the right spot for it," said Councilmember Juan M. Martinez. Mayor Frank Figueroa argued that a sign at the park would draw tourists downtown.

The other side: Another councilmember questioned whether a single location and design justify $150,000 and asked for signage at the city's entrances.

Decisions and stakeholder impacts: The council took no vote. Staff offered to come back with additional signage locations, options and designs, including city entry points. Arts advocates still have a live funding pool. Downtown businesses near Ninth Street Park may face competition from gateway sites for the same dollars.

What's next: Staff will return with a signage plan. Funding for restoring murals and for a Raices Cultura sculpture may come before the council in December.

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Chromium-6 Treatment Clears Environmental Hurdle

Why it matters: All seven Coachella Water Authority wells exceed California's 10 parts-per-billion limit on hexavalent chromium, which took effect Oct. 1, 2024. The city cannot complete its state funding application without this environmental document. The water authority plans to file that application by the end of 2026.

Where things stand: Staff said chromium-6 occurs naturally in Coachella Valley groundwater. The city's compliance plan, approved in November 2025, commits to treatment by August 2031. The city chose reduction coagulation filtration, the most cost-effective of three best available technologies. Upcoming milestones include:
- 90% design plans
- A full state application
- Financing through 2027
- Construction starting in 2028

John Christ of Terra Nova Planning and Research said a "CEQA Plus" initial study, which includes federal cross-cutting requirements, circulated for 30 days. Comments came from Fish and Wildlife, Sunline and two tribes, Agua Caliente and 29 Palms. Consultation under AB 52, the state tribal consultation law, added a measure requiring monitoring for tribal cultural resources. Christ said all impacts can be mitigated to less than significant. "We have no outstanding unresolved issues," said Christ.

Decisions and stakeholder impacts: Resolution No. 2026-68 passed (For: 5, Figueroa, Martinez, Virgen, Delgado, Perez; Against: 0; Absent: 0). No one spoke during public comment. Ratepayers stand to benefit most if state grant dollars, rather than local rates, cover treatment costs.

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CVAG Homelessness Deal Locked in for Three Years

Why it matters: The agreement formalizes Coachella's role in regional case management for chronically homeless residents. A councilmember said homelessness has increased in the city.

Where things stand: The Coachella Valley Association of Governments (CVAG) has run CV Housing First since 2017. It moved case management in-house in 2020 with a team of six. The program works from the CV200, a by-name list of chronically homeless people, and uses outreach plus crisis stabilization units for stays of up to 90 days. "CVAG is focused on the chronically homeless," said Erica Felci, CVAG Deputy Executive Director.

Council members asked why the contract runs three years. Staff cited continuity and said the council can withdraw with 60 days' notice before the end of any fiscal year. This year's $64,500 comes from the general fund, and later years will go through the budget. "It's a general fund expenditure," said City Manager Gustavo Romo. Officials discussed a possible inflation adjustment tied to the Consumer Price Index around May 2027.

Decisions and stakeholder impacts: The memorandum of understanding passed (For: 5, Figueroa, Martinez, Virgen, Delgado, Perez; Against: 0; Absent: 0). No one spoke during public comment. The exit clause gives the council leverage if results lag.

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Sleep-Aid Ban Idea Needs More Evidence

Captain Martinez of the Sheriff's Thermal Station presented local data. "In the last 2 years, or the 2-year period that we reviewed, there were 21 deaths related to sleep aids," he said. Twelve involved over-the-counter sleep aids, and four involved juveniles. Many of the cases also involved other drugs, and he said it is not yet clear which ingredient or product to target.

Mayor Pro Tem Yadira Perez asked, "why are juveniles allowed to buy over-the-counter sleep aids," noting that minors cannot buy cold medicines. She floated clerk training or an ordinance restricting sales to minors: "Maybe we can save one life." Mayor Frank Figueroa pushed for a regional approach through CVAG, asking "what other regional approach we can also take."

What's next: The council took no vote. Staff recommended further research with medical professionals, so no ordinance is imminent.

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• Voucher listing: $3,983,079.34 in expenditures approved on consent, 5-0.
• Care Solace contract: Up to $156,510.57 over three years, paid with opioid settlement funds, for behavioral health services; approved on consent.
• Ethics update: Resolution No. 2026-63 amends the city's Conflict of Interest Code; approved on consent with the October minutes and first-quarter reports.
• $17.057M grant: Staff said the city's Active Transportation Program application scored 93 and was recommended for funding. It still needs RCTC, SCAG and CTC consideration, with formal awards in June 2027.
• Online billing: Staff announced the launch of PayIt for online bill payment.

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Looking ahead: Mayor Frank Figueroa proposed naming Ninth Street Park for Dolores Huerta as a future agenda item. "I think we should dedicate it to Dolores Huerta," he said. He also asked staff to look into placing City Cruisers on the Shady Lane wall. Separately, two council members are invited to attend an event on the Coachella Business Corridor Transformation Plan for the Cesar Chavez corridor.