American Rescue Plan Act (ARPA) Update and request for approval of recommendations
 

Staff recommends that the City Council provide approval on the final reallocation recommendations and receive and file the ARPA Economic Development Plan Programs update.

At the July 13, 2021, City Council meeting, staff and HdL Companies’ Principal, Barry Foster, gave an overview of the agenda staff report, introducing the American Rescue Plan Act (ARPA).  The report also described that local governments are encouraged to use payments from ARPA to respond to the direct and immediate needs of the pandemic and its negative economic impacts and the needs of households and businesses that are disproportionately and negatively impacted by the public health emergency.  Included in the report to the City Council were several economic development ideas for programs and projects for ARPA funding.  

In subsequent meetings, the Council adopted an ARPA Plan, which outlined various projects and programs for expenditures of the 1st Tranche of ARPA funds $15,260,827.  At the February 28, 2023, City Council meeting, staff and HDL Sr. Advisor Ken Duran, presented to the City Council a list of projects utilizing the 2nd tranche of American Rescue Plan Act (ARPA) funds $15,260,827. 
 
The ARPA Guidelines require that funds must be obligated to specific projects by December 31, 2024 and must be spent by December 31, 2026.  Staff evaluated the Programs approved under the adopted ARPA Plan for Tranches 1 and 2.  Given the time requirements for obligating and spending the funds, staff feels the need to reallocate some of the unspent funds to other existing and new projects.  
The following outlines the Programs approved by the Council and the reallocation request for use of American Rescue Plan Act (ARPA) funds. 

Designated General Fund Revenue Recovery Approved Uses – ARPA 1st Tranche

APPROVED USES
$11,445,620 Revenue Recovery
 

1.    Hero Pay for essential workers	$     883,000
2.    Vital Medical – Mental Health Clinician - Emgcy Calls for PD	$     100,000
3.    Bi Polar Ionization System for PD	$       29,540
4.    Air Filtration w/UV Sterilization module in Basement	$       75,000
5.    Personal Protective Equipment & Training	$           0
6.    Emergency Kits for City Hall and PD	$         7,145
7.    Sanitation	$     360,000
8.    Energov Virtual City Hall Project	$     737,510
9.    Revitalization of City Properties	$     599,430
10.  Communication Upgrades	$     150,000
11.  Virtual Electronic Document Migration	$     500,000
12.  Virtual Desktop Interface	$     700,000
13.  Fire Contract	$  3,900,000
14.  Police Salaries	$  2,815,610
15.  Public Works Salaries	$     200,000
16.  Community Service Salaries	$     300,000
17.   Homeless Coordination	$       88,384
Total Approved Projects Designated for General Fund	$11,445,620

                                                                                                 
                                                                                                   
ARPA 1st Tranche Recovery Program Approved Uses & Add’l Recommendations

APPROVED USES
$ 3,815,207 Designated for Recovery projects
 

1. Telehealth Van LLC Services		$1,261,630.00
2. Homelessness – Pallet Shelters		$1,664,180.10
3. Health and Wellness Events		$     15,000.00
4. Tablet Program		$     22,108.72
5. Business Recovery Assistance		$   428,846.51
- Business Res Consultant	$    1,846.51
- Yiftee Gift Cards	$    7,000.00
- Bus Asst Grants/Loans	$105,000.00
- Marketing Asst Prog	$  20,000.00
- Board Up Removal/Paint	$  20,000.00
- Administration	$275,000.00
Balance – Carry Over to 2nd Tranche projects		$   423,441.67
Total Approved Recovery Designated Projects		$3,815,207.00

RECOMMENDED REALLOCATION REQUEST

Tranche 1 - $ 3,815,207 Designated for Recovery projects Unused Funds

5. Business Recovery Assistance
- Board Up Removal/Paint	($       400.00)
Recommended Programs
5. Business Recovery Assistance
-  Administration		$            400.00
Total recommended reallocation		$            400.00
Total 1st Tranche Allocations		$15,260,827.00

                                                                                               
General Fund Revenue Recovery Approved Uses and Recommendations – ARPA
2nd Tranche

APPROVED USES

$7,363,358 Revenue Recovery      
 

1. Fire Contract	$5,000,000
2. Police Salaries	$2,363,358
Total Approved Projects Designated for General Fund	$7,363,358

  
                                                                                                                                                                                                            
Designated Recovery Program Approved Uses – ARPA 2nd Tranche

APPROVED USES
$7,897,469.00 Designated for Recovery projects

1. Water Tower Project	$1,172,500.00
2. Sewer System Project	$2,899,445.11
3. Air Conditioning & Generator Project	$2,580,000.00
4. Employment Opportunities and Assistance for the Unhoused	$       3,973.39
5. School District Programs	$         0
6. Urgent Care Facility	$       3,540.00
7. Landlord Rental Assistance Program	$         0
8. Revitalization Low Income Housing Units	$1,148,897.28
9. Cyber Security	$     94,000.00
10. EOC Upgrades	$   200,000.00
11. Civic Center Park	$   218,554.89
Total 2nd Tranche Approved Recovery Projects	$8,320,910.67
MINUS Carry Over from 1st Tranche	$   423,441.67
Total 2nd Tranche Approved Recovery Projects	$7,897,469.00

 RECOMMENDED REALLOCATION REQUEST

Tranche 2 - $7,897,469  Designated for Recovery projects Unused Funds

2. Homelessness – Pallet Shelters	($1,207,494.16)
Recommended Programs
8. Revitalization Low Income Housing Units		$1,207,494.16
Total recommended reallocation		$1,207,494.16
Total 2nd Tranche Allocations		$15,260,827

        









REALLOCATION RECOMMENDATION 

To date the City has expended $23,989,377.00 in funds for the approved projects.  Staff has identified $1,207,894.16 in unused funds that should be reallocated.  The recommendation for distribution of the reallocated funds is as follows:
 

Recovery Projects – 1st Tranche
5. Business Recovery Assistance
- Administration	$          400.00
Recovery Projects – 2nd Tranche
8. Revitalization Low Income Housing Units	$1,207,494.16
Total Reallocation Recommendation	$1,207,894.16

 

                                           

                                                               
 

Establish partnerships with entities that can work toward City goals and objectives.

None.

72 hours posted notice pursuant to the Ralph M. Brown Act