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CC 2021-10-12_10a Allocations of Anticipated American Rescue Plan Act Funding_PP Presentation DISCUSS AND CONSIDER ALLOCATIONS OF ANTICIPATED AMERICAN RESCUE PLAN ACT FUNDING NOT PREVIOUSLY ALLOCATED BY COUNCIL 10/12/2021 City Council 1 Background City anticipated to receive $4,300,241 in funding from the American Rescue Plan Act (ARPA) One-half received on July 13, 2021; other half is expected 12 months later US Treasury Interim Final Rule Governs uses of ARPA funds, reporting requirements December 31, 2024 - deadline to commit ARPA funds by way of contract/PO December 31, 2026 - deadline to spend funds 10/12/2021 2 10/12/2021 Background On July 27, 2021, Council approved allocations of ARPA funding for the following projects: On July 27, 2021, Council approved allocations of ARPA funding for the following projects: 3 Background Ad hoc committee created to consider and provide recommendations to Council regarding allocation of remaining funds - $1,806,291 Mayor Ray Russom Mayor Pro Tem Paulding Staff City Manager Assistant City Manager/Public Works Director Administrative Services Director Community Development Director 10/12/2021 4 10/12/2021 Guiding principles: Known allowed uses Uses not otherwise funded through other grant sources Purpose of ARPA Consider requests for ARPA funding received to date Committee Recommendations 5 10/12/2021 Fund Additional Water, Sewer, Stormwater Projects Committee Recommendations 6 10/12/2021 Allocate Funding for City COVID-19 Expenses Total $1,254,275 recommended funding allocations Discuss remaining $552,016 with entire Council Focus on homeless shelter and services, nonprofit assistance, possible small business assistance Convey and consider requests received to date Committee Recommendations 7 10/12/2021 Homeless Shelter/Services ARPA funding category – nonprofit assistance; programs addressing housing insecurity, lack of affordable housing, or homelessness for populations disproportionately impacted by the public health emergency 5Cities Homeless Coalition Purchase of property for future shelter serving unhoused population in the Five Cities region Other potential needs, e.g. safe house lease/purchase Funding Requests 8 10/12/2021 Homeless Shelter/Services (cont.) Remaining questions: Feasibility of property purchase Shelter type, funding Timing Consider allocating funding with specific project proposal to return to Council within 12 months Funding Requests 9 10/12/2021 Childcare Assistance ARPA funding category – nonprofit assistance, direct assistance to households First 5, et al. Request for 5% of City’s total allocation 8 suggested categories of uses Funding Requests (1) financial support for the established SLO County Child Care Planning Council (the California Department of Education designated advisory body to the Superintendent of Schools and Board of Supervisors) to strengthen local child care system infrastructure; (2) funding improvements to Family Resource Center operations and facilities; (3) funding for additional childcare vouchers for low-income families; (4) grants to small businesses for childcare services; (5) support for workforce development for childcare workers; (6) investing in childcare facility space and capacity; (7) funding for mental and behavioral health support for children and families; and (8) funding for family housing stabilization programs, such as rent and/or or utility payments, rapid rehousing funds, and eviction protection programs. 10 10/12/2021 Childcare Assistance (cont.) Remaining questions: Which needs to address, focus for funding? E.g. direct assistance to families, new/expanded childcare businesses, education/training to childcare providers? Consider allocating total funding, identifying targeted need to address with ARPA funding, directing staff to develop proposal to meet identified need in coordination with First 5, et al., and return to Council within 3 months Funding Requests 11 10/12/2021 ADU Assistance ARPA funding category – programs addressing housing insecurity, lack of affordable housing, or homelessness for populations disproportionately impacted by the public health emergency Smart Share Housing Solutions - $37,887 Regional pilot program to support ADU production Includes education and outreach, technical assistance, project management services, affordability advocacy, lending and finance support, tenant screening and management assistance, and research, innovation, and community partnership support Funding Requests 12 10/12/2021 ADU Assistance (cont.) Other funding sources, programs SB 2 grant for ADU Ordinance updates REAP grant for the development of regional, pre-approved ADU plans – in coordination with other cities Remaining questions – how to: Ensure compliance with ARPA regulations Create new ADUs in the City Focus on assistance to those disproportionately impacted by COVID-19 Funding Requests 13 10/12/2021 Other City Projects ARPA Funding Category – lost revenues (~$95,000 total) Possible projects NeoGov software to assist modernization of human resources systems - $36,000 Elm Street Park Playground Equipment - $135,532 Unclear ARPA guidance on use of funding for park equipment replacement Prop 68 and AG Valley Kiwanis grants Additional Funding Options 14 10/12/2021 Funding Options Summary 15 10/12/2021 Recommendation (1) Appropriate $1,254,275 of ARPA Funds to additional Water, Sewer, and Stormwater Infrastructure projects and qualified anticipated City expenditures related to the COVID-19 pandemic as recommended by the ad hoc committee; and (2) Consider and provide direction regarding allocation of the remaining $552,016 of anticipated ARPA funds to other qualified uses consistent with US Treasury guidance. 16 10/12/2021 Back Up Slides 17 10/12/2021 Summary Recommendations Discuss and allocate remaining $552,016 to other uses Allocate $1,254,2785 as follows: 18 Responding to the public health emergency or its negative economic impacts COVID-19 response and prevention Public health and safety staff Hiring State and local government staff Assistance to unemployed workers Contributions to State unemployment insurance trust funds Small business assistance Nonprofit assistance 10/12/2021 ARPA Regulations – Allowed Uses 19 Responding to the public health emergency or its negative economic impacts (cont.) Assistance to households Aid to impacted industries (tourism, travel, hospitality) Expenses to improve efficacy of public health or economic relief programs Survivor’s benefits Disproportionately impacted populations and communities* 10/12/2021 ARPA Regulations – Allowed Uses 20 Providing premium pay to eligible workers Providing government services to the extent of a reduction in the city’s general revenue (e.g. revenue loss funds) Water, Sewer, Broadband infrastructure projects 10/12/2021 ARPA Regulations – Allowed Uses 21 *Disproportionately impacted populations and communities “A program, service, or other assistance that is provided in a qualified census tract, that is provided to households and populations living in a qualified census tract, that is provided by a Tribal government, or that is provided to other households, businesses, or populations disproportionately impacted by the COVID–19 public health emergency, such as:” Programs facilitating access to health and social services Programs addressing housing insecurity, lack of affordable housing, or homelessness Programs addressing impacts on education Programs addressing impacts on childhood health or welfare 10/12/2021 ARPA Regulations – Allowed Uses 22 *Disproportionately impacted populations and communities ARPA FAQs issued by the Treasury state: “Treasury will presume that certain types of services are eligible uses when provided in a Qualified Census Tract (QCT), to families living in QCTs, or when these services are provided by Tribal governments. Recipients may also provide these services to other populations, households, or geographic areas disproportionately impacted by the pandemic. In identifying these disproportionately-impacted communities, recipients should be able to support their determination for how the pandemic disproportionately impacted the populations, households, or geographic areas to be served.” 10/12/2021 ARPA Regulations – Allowed Uses 23 Generally forward looking. Funds may be used to cover costs incurred beginning on March 3, 2021. Funds must be obligated by December 31, 2024, and expended by December 31, 2026. Contracts and subawards (i.e. grants) over $50,000 require increased reporting and monitoring 10/12/2021 ARPA Regulations – Other Rules 24 10/12/2021 Replace playground in degrade with all access playground, including outdoor exercise equipment for teens/adults Treasury FAQs state: “many governments saw significantly increased use of parks during the pandemic that resulted in damage or increased maintenance needs. The Interim Final Rule recognizes that ‘decrease[s to] a state or local government’s ability to effectively administer services’ can constitute a negative economic impact of the pandemic.” Elm Street Playground 25 10/12/2021 4 National Demonstration Site Qualifications: 7 Principles of Inclusive Play Play On! Promoting Physical Activity Nature Grounds Outdoor Adult Fitness Parks *This playground will be the first site in the nation featuring all four National Demonstration Site categories! Elm Street Playground* 26