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
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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
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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:
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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
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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
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Fund Additional Water, Sewer, Stormwater Projects
Committee Recommendations
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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
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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
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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
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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.
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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
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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
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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
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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
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Funding Options
Summary
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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.
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Back Up Slides
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Summary Recommendations
Discuss and allocate remaining $552,016 to other uses
Allocate $1,254,2785 as follows:
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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
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ARPA Regulations – Allowed Uses
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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*
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ARPA Regulations – Allowed Uses
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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
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ARPA Regulations – Allowed Uses
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*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
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ARPA Regulations – Allowed Uses
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*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.”
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ARPA Regulations – Allowed Uses
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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
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ARPA Regulations – Other Rules
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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
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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*
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