American Rescue Plan Act (ARPA) update and request for approval of recommendation.
 

Staff recommends that the City Council provide approval of reallocation recommendation 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 required that funds must be obligated to specific projects by December 31, 2024, and must be spent by December 31, 2026.  Under the SLFRF Frequently Asked Questions 17.16 section, however, if a contract entered into by December 31, 2024, expressly provides for change orders or contract contingencies, the recipient may use SLFRF funds to cover increased costs attributable to such change orders or contract contingencies. Such increased costs are not considered new obligations but are instead attributable to a preexisting obligation to accommodate the change or contingency.  Staff has evaluated the programs approved under the adopted ARPA Plan for Tranches 1 and 2; and are requesting reallocation of funds to the existing Hawthorne Housing Revitalization program, the Air Conditioning & Generator Project and the Energov Virtual City Hall Project.  The Interagency Agreement with the Housing, Public Works and Information Technology Divisions allows for increased cost contingencies.

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


RECOMMENDED REALLOCATION REQUEST

Tranche 1 - $11,445,620 Revenue Recovery Projects Unused Funds
4.    Air Filtration w/UV Sterilization                     ($68,088.00)

Recommended Programs 
8.    Energov Virtual City Hall Project                                                                            $   68,088.00

Total recommended reallocation                                                                              $   68,088.00

Total 1st Tranche Allocations Revenue Recovery                                                 $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                                                                         $   511,961.70
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                                 $  19,600.00
- Urgent Care Facility                                          $      0
- Administration                                                   $275,400.00

Balance – Carry Over to 2nd Tranche projects                                                 $1,682,911.01

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
-Administration                                                    ($107,250.94)

Recommended Programs 
3. Air Conditioning & Generator Project                                                                  $      2,521.03
8. Revitalization Low Income Housing Units                                                          $  104,729.91

Total recommended reallocation                                                                        $  107,250.94

Total 1st Tranche Allocations                                                                              $ 15,260,827



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                                                                    $1,682,911.01

Total 2nd Tranche Approved Recovery Projects                                              $7,897,469.00             


RECOMMENDED REALLOCATION REQUEST

Tranche 1 - $ 7,897,469 Designated for Recovery projects Unused Funds
1. Water Tower Project                                       ($1,172,500)
           
Recommended Programs 
8. Revitalization Low Income Housing Units                                                          $ 1,172,500

Total recommended reallocation                                                                        $ 1,172,500

Total 2nd Tranche Allocations                                                                            $15,260,827



REALLOCATION RECOMMENDATION 

To date, the City has expended $27,163,065.80 in funds for the approved projects.  Staff has identified $1,347,383.94 in unused funds that should be reallocated.  The recommendation for distribution of the reallocated funds is as follows:

Revenue Recovery Projects - 1st Tranch 
8. Energov Virtual City Hall Project                                                                      $     68,088.00

Recovery Projects – 2nd Tranche
8. Revitalization Low Income Housing Units                                                       $1,277,229.91 
3. Air Conditioning & Generator Project                                                               $       2,521.03

Total Reallocation Recommendation                                                              $1,347,838.94 

 

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