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Item No. 8.
| MEETING DATE: 05/02/2022 |
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| TO: | HONORABLE MAYOR AND COUNCILMEMBERS |
| FROM: | JIM SADRO, CITY MANAGER By: Miranda Cole-Corona, Housing and Economic Dev Manager |
| SUBJECT: | APPROVE AND AUTHORIZE THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH PRISCILA DAVILA & ASSOCIATES, INC. TO ADMINISTER A PROPOSED "DINE AND SHOP" LOCAL INCENTIVE PROGRAM, A BILL(S) ASSISTANCE PROGRAM, AND A BUSINESS ASSISTANCE PROGRAM WITH FUNDING FROM THE AMERICAN RESCUE PLAN ACT (ARPA)
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RECOMMENDATION:
That the City Council:
A. Approve and authorize the City Manager to enter into an agreement with Priscila Davila & Associates, Inc., to administer a proposed "Dine and Shop" Local Economic Incentive Program, a Bills(s) Assistance Program, and a Business Assistance Program utilizing available American Rescue Plan Act (ARPA) funds; and,
B. Approve a budget appropriation of $1,172,300 of ARPA funds for these proposed programs and their administration.
DISCUSSION:
At its January 18, 2022 meeting the City Council approved an appropriation of federal ARPA funding for a variety of programs and purposes, which included $500,000 for programs that would assist residents, and an additional $500,000 for programs that would assist businesses, as the community continues to rebound from the COVID-19 pandemic. In order to achieve these spending goals, staff recommends the approval and administration of the following proposed programs:
"Dine and Shop" Local Incentive Program ($200,000 in ARPA funds)
Under this program, the City would provide $100 gift cards to qualified households that can be used at participating local La Habra small businesses. The City will partner with a platform contractor (to be selected at a later date) to provide eGift Cards that would allow residents to shop or dine locally with gift cards specific to La Habra businesses. This program will not only benefit households by providing them with gift cards, but will also assist local businesses by bolstering their sales. Businesses will have the opportunity to opt into the program with the platform contractor and eGift Cards will only be valid at participating La Habra businesses. For example, if a coffee shop in La Habra also has locations in other cities, through the platform contractor, the eGift Card will only be good at the La Habra location. This will ensure gift card dollars are used by La Habra residents at La Habra businesses. The proposed total amount of ARPA funds for this program is $200,000, which will fund 2,000 gift cards at $100 per card.
Bill(s) Assistance Program ($500,000 in ARPA funds)
Under this proposed program, the City will provide payments to or on behalf of eligible households that can provide proof that they are behind on their bill(s) including rent, utilities, mortgage payments, property taxes, health insurance payments, childcare, vehicle payments, credit card payments, etc. The proposed payments would be a one-time payment of $2,500 per household once proof has been adequately provided and verified, and that household eligibility has been determined. The proposed total amount of ARPA funds for this program is $500,000, which can provide direct assistance to up to 200 La Habra households.
Business Assistance Program ($300,000 in ARPA funds)
Under this proposed program, the City will provide assistance to local small businesses that can provide proof they have a loss due to the COVID-19 pandemic. Businesses can get assistance with payroll and benefits costs, costs of retaining employees, operating costs including mortgage, rent, utilities and other operating costs. The proposed assistance amount per business is $10,000. The proposed total amount of ARPA funds for this program is $300,000, which can provide full funding assistance to 30 local businesses.
Administration of ARPA Programs
In an effort to administer these proposed programs, staff contacted two consultants that have worked with various jurisdictions in the administration of similar COVID-19 programs. Staff contacted MDG and Associates as well as Priscilia Davila & Associates, Inc. to solicit proposals for their services. Due to staffing constraints, MDG declined to submit a proposal; therefore, staff requests that the City Council approve an agreement with Priscila Davila & Associate, Inc., for the design, development, marketing and administration of the proposed ARPA assistance programs.
Priscila Davila has experience working for the City of La Habra and has assisted the City's Community and Economic Development Department staff since 2018. Ms. Davila currently provides CDBG technical assistance, prepares the Annual Action Plan and Consolidated Annual Performance and Evaluation Report, and provides labor compliance monitoring for CDBG funded Infrastructure/Facility projects. She has worked with several cities on their CDBG COVID-19 programs, including as Newport Beach, Rosemead and Monterey Park. Her experience will assist the City in the development of the proposed programs, including creating online application portals, preparing and assisting with marketing, and overseeing the daily administration of the ARPA-funded programs to ensure that the funds are properly accounted for and spent within approved program guidelines.
If Council approves an agreement with the consultant, staff and the consultant will work on developing the individual programs, to include establishing guidelines, eligibility criteria, applications, and marketing and outreach documentation. Staff and the consultant will also research and contact various e-Gift card platforms to determine which platform will work best for the City's proposed programs and determine any associated fees for use of the platforms. Staff will return to Council in the coming months with detailed program guidelines for review and approval, including the timeframe for releasing applications and the anticipated number of residents and businesses that can be assisted within each individual program.
"Dine and Shop" Local Incentive Program ($200,000 in ARPA funds)
Under this program, the City would provide $100 gift cards to qualified households that can be used at participating local La Habra small businesses. The City will partner with a platform contractor (to be selected at a later date) to provide eGift Cards that would allow residents to shop or dine locally with gift cards specific to La Habra businesses. This program will not only benefit households by providing them with gift cards, but will also assist local businesses by bolstering their sales. Businesses will have the opportunity to opt into the program with the platform contractor and eGift Cards will only be valid at participating La Habra businesses. For example, if a coffee shop in La Habra also has locations in other cities, through the platform contractor, the eGift Card will only be good at the La Habra location. This will ensure gift card dollars are used by La Habra residents at La Habra businesses. The proposed total amount of ARPA funds for this program is $200,000, which will fund 2,000 gift cards at $100 per card.
Bill(s) Assistance Program ($500,000 in ARPA funds)
Under this proposed program, the City will provide payments to or on behalf of eligible households that can provide proof that they are behind on their bill(s) including rent, utilities, mortgage payments, property taxes, health insurance payments, childcare, vehicle payments, credit card payments, etc. The proposed payments would be a one-time payment of $2,500 per household once proof has been adequately provided and verified, and that household eligibility has been determined. The proposed total amount of ARPA funds for this program is $500,000, which can provide direct assistance to up to 200 La Habra households.
Business Assistance Program ($300,000 in ARPA funds)
Under this proposed program, the City will provide assistance to local small businesses that can provide proof they have a loss due to the COVID-19 pandemic. Businesses can get assistance with payroll and benefits costs, costs of retaining employees, operating costs including mortgage, rent, utilities and other operating costs. The proposed assistance amount per business is $10,000. The proposed total amount of ARPA funds for this program is $300,000, which can provide full funding assistance to 30 local businesses.
Administration of ARPA Programs
In an effort to administer these proposed programs, staff contacted two consultants that have worked with various jurisdictions in the administration of similar COVID-19 programs. Staff contacted MDG and Associates as well as Priscilia Davila & Associates, Inc. to solicit proposals for their services. Due to staffing constraints, MDG declined to submit a proposal; therefore, staff requests that the City Council approve an agreement with Priscila Davila & Associate, Inc., for the design, development, marketing and administration of the proposed ARPA assistance programs.
Priscila Davila has experience working for the City of La Habra and has assisted the City's Community and Economic Development Department staff since 2018. Ms. Davila currently provides CDBG technical assistance, prepares the Annual Action Plan and Consolidated Annual Performance and Evaluation Report, and provides labor compliance monitoring for CDBG funded Infrastructure/Facility projects. She has worked with several cities on their CDBG COVID-19 programs, including as Newport Beach, Rosemead and Monterey Park. Her experience will assist the City in the development of the proposed programs, including creating online application portals, preparing and assisting with marketing, and overseeing the daily administration of the ARPA-funded programs to ensure that the funds are properly accounted for and spent within approved program guidelines.
If Council approves an agreement with the consultant, staff and the consultant will work on developing the individual programs, to include establishing guidelines, eligibility criteria, applications, and marketing and outreach documentation. Staff and the consultant will also research and contact various e-Gift card platforms to determine which platform will work best for the City's proposed programs and determine any associated fees for use of the platforms. Staff will return to Council in the coming months with detailed program guidelines for review and approval, including the timeframe for releasing applications and the anticipated number of residents and businesses that can be assisted within each individual program.
FISCAL IMPACT/SOURCE OF FUNDING:
A budget appropriation of $1,172,300 in ARPA funds is requested to implement and administer the proposed household and business assistance programs. The proposed request is broken down as follows:
Program Administration: $172,300
Dine and Shop Local Program: $200,000
Bill(s) Assistance Program: $500,000
Business Assistance Program: $300,000
Grand Total: $1,172,300
This proposed funding allocation exceeds the City Council's original $1 million budget allocation for these programs due to program administration expenses; however, staff recommends Council approve an additional appropriation of $172,300 from ARPA funds for administration expenses so that the full $1 million budget appropriation can be allocated to program benefits. If approved, staff will make recommended adjustments to other unrelated ARPA budgets at a later date to accommodate the additional funding request.
Program Administration: $172,300
Dine and Shop Local Program: $200,000
Bill(s) Assistance Program: $500,000
Business Assistance Program: $300,000
Grand Total: $1,172,300
This proposed funding allocation exceeds the City Council's original $1 million budget allocation for these programs due to program administration expenses; however, staff recommends Council approve an additional appropriation of $172,300 from ARPA funds for administration expenses so that the full $1 million budget appropriation can be allocated to program benefits. If approved, staff will make recommended adjustments to other unrelated ARPA budgets at a later date to accommodate the additional funding request.
GENERAL PLAN RELEVANCE:
LU2.4 Balancing Jobs and Housing