Report to Mayor and City Council
Tuesday, March 01, 2022
Consent
SUBJECT:
Title
PROPOSED SPENDING PLAN FOR AMERICAN RESCUE PLAN ACT OF 2021 RELIEF FUNDS.
Body
I. SUMMARY
On March 11, President Joe Biden signed the American Rescue Plan Act 2021 (ARPA), which launched the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) to provide $350 billion in emergency funding for state and local governments. The emergency economic stimulus bill provides fiscal aid to address the ongoing COVID-19 public health crisis. The SLFRF provides funding to meet local needs, including COVID19 response, replacing public sector revenue loss, premium pay for essential workers, improving facilities to ensure health and safety, increase usage of outdoor spaces, as well as investing in public infrastructure and broadband. Of the $350 billion economic stimulus bill, the City will receive $17,776,763 in direct one-time funding.
The City Council’s strategic priorities are the blueprint for prioritizing policy decisions and the proposed spending plan. The proposed spending plan is in alignment with the City Council’s strategic priorities which includes:
1. Make quality of life improvements (infrastructure, maintenance, beautification)
2. Prioritize economic development
3. Adopt governance policies and procedures pertaining to districts
4. Promote housing development
5. Increase public safety
6. Make progress on development that provides community benefits in the long term
7. Maintain quality City programs and services
8. Advocate for funds from county, state, and federal government
9. Increase outreach and information to the community
This one-time funding will provide significant financial resources for health and safety of the City while also making investments that improve our resident’s quality of life.
II. RECOMMENDATION
Recommendation
APPROVE proposed recommendations on the use of the City’s American Rescue Plan Act funds.
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III. ALTERNATIVES
DO NOT APPROVE the proposed ARPA financial plan and PROVIDE additional direction to staff.
IV. BACKGROUND
The American Rescue Plan Act of 2021 (ARPA) is a $1.9 trillion economic stimulus bill. Within the ARPA, the Coronavirus Local Fiscal Recovery Fund (SLFRF) provides $350 billion for states, municipalities, counties, tribes, and territories. Of the $350 billion, the City will receive an estimated $17.8 million in one-time funding. These funds can be spent by local governments to provide for healthier and safer indoor and outdoor environments for residents, visitors, and employees; assist with investments in outdoor spaces and programs that promote responsible public gatherings; help pay for essential affordable housing, broadband and other critical public infrastructure; and compensate for relevant first responder expenses. The U.S. Treasury continues to update and finalize procedures, processes, and detailed reporting requirements on eligible uses. Funds cannot be used toward pensions or to offset revenue resulting from tax cuts. Funding will be received in two disbursements. The first $8.8 million was received and this revenue will be held in a separate fund subject to quarterly and annual audits, with the second disbursement anticipated within the next 6 months. City staff will be implementing a dedicated website page for specific communications, frequent mandated updates, including quarterly reporting on the use of the funds as part of the budget update. The ARPA spending must be completed by December 31, 2026.
The City Council’s Strategic Priorities are the blueprint for prioritizing policy decisions for the City’s future and the proposed $17.8 million ARPA spending plan. The proposal (Exhibit A) has been developed by staff based on the City’s priorities, and preliminary input from the Mayor. Staff’s proposal may be amended based on this input. The current proposal is detailed below.
A. HVAC, air filtration system upgrade and non-capitalized equipment needs $6.5 Million
The health and safety of our residents, employees and visitors are paramount to the City. Improvements include enhancements to the Community Center and park facilities to ensure proper air filtration. Facility upgrades to include HVAC, air filtration systems, and non-capitalized equipment needs (exhibit B) in the community center and park facilities to ensure the health and safety of our residents, employees, and visitors.
B. City’s Enterprise Resource Planning (ERP) Software upgrade for Business License, Online Payment, Permit Issuance and Public Safety online portals $2.2 Million
These funds will support one-time investment in the City’s Enterprise Resource Planning, Tyler Munis, as part of the City’s continued transition to web and cloud-based services to empower the City to better connect departments, processes and citizens for enhanced collaboration and communication. The ERP software investment will include the following components:
1. The community Development upgrade will allow the city to automate its operations in land use, planning, permitting, enforcement, inspection and more.
2. The Business Development application will expedite and automate the administration of licensing and regulatory review, approval, issuance, renewal, revenue collection and enforcement process.
3. The Tyler Payment will manage all aspects of the City’s online payment processing and it will be accessible from any device enabling residents and businesses to make payments for anywhere, any time.
C. Street Maintenance and Roadway Repairs $3.5 Million
Funding in this category is an investment to address the basic road maintenance rehabilitation, and critical safety needs for our local streets and roads. Public Works department intends to add these funds to the City’s capital Improvement Program for resurface and other roadway improvements or projects that were delayed because of the pandemic and reduction in infrastructure funds.
D. Investment in Broadband Improvement Solutions $1.5 Million
Funding is included to engage a consultant to conduct an assessment study of any connectivity gaps within the City and provide recommendations on options to address these gaps and related service needs. This study will identify coverage gaps, unreliable and/or slow services, potential internet service models, and lessons from municipalities where mistakes were made. Findings and recommendations will be presented to the City Council. Funding set-aside will implement relevant recommendations from the study, including additional analysis where needed, development of operational and/or financial plans, and immediate connection improvements to residents, such as providing free Wi-Fi coverage at City-owned facilities.
E. Emergency Operations Center (EOC) Upgrade $1 Million
The EOC is the focal point for coordination of the City’s emergency planning, training, response, and recovery efforts. The City’s current EOC has aging and deteriorating equipment and does not meet the most basic requirements of the Office of Emergency Services (OES). The $1 Million investment will help provide the City’s EOC with much needed and adequate equipment. Staff will engage a consultant to perform a study to determine the EOC adequate equipment and technological infrastructure needs.
F. Emergency Generators $1 Million
Acquisition and installation of emergency generators at critical city facilities including City Hall, Community centers and corporate yard. This investment in emergency generator will provide ample power resources r various critical functions throughout the City during power outages. Staff will request independent competitive bids to replace our current Emergency Generators with equipment that will meet all our requirements and specifications.
G. Wi-Fi in Parks $1 Million
Over the past year, the City has offered free public Wi-Fi at City Hall, Community Services and Parks facilities. The $1 Million funding will help increase fee Wi-Fi to include Parks across the City. The primary goal of the Wi-Fi expansion project is to support the City Council’s goals of digital equity and economic development. This project will assist with bringing the digital divide by providing wireless access that some of our residents may not have access to.
H. Small Business Loan Relief Program $765,000
The City Council is committed to supporting individuals, families, and local businesses that have been severely impacted by the pandemic and unable to access other federal, state, and local assistance funding. On April 13, 2020, the Disaster Council approved a contract with the California Community Economic Development Association (“CCEDA”), a California non-profit organization, to quickly create and implement a focused business assistance program for Carson commercial and retail businesses and non-profit organizations, with a special emphasis on the COVID-19 response. At the same meeting, the Disaster Council made a recommendation to Council to consider the establishment of General Fund small business loan program. To date, the City issued $530,000 in small business loans to 35 Carson based businesses. These loans are subject to interest rates and repayment terms. The City also spent $235,000 in the contract with CCEDA. The $950,000 is an investment to help relief the small businesses that received the loan from the obligation paying the City back.
I. Creating a City Brand and Community Engagement Strategic Plan $285,000
These funds will help City staff create a Community Engagement Strategy with a consistent theme and branding for public communications. The City brand will be reflected through social media marketing campaigns and other communications efforts across departments. Future campaigns will include business spotlights, city news, community events, public safety awareness, and other focused campaigns. The Public Information Team will work together to brand the City’s communications materials.
A. V. FISCAL IMPACT
Upon City Council’s approval of the $17.8 million ARPA spending plan, staff will return to the City Council for a formal action appropriating ARPA funding via budget resolution by line-item costs confirming budgeted amounts.
VI. EXHIBITS
1. Exhibit A - American Rescue Plan Act Spending Plan
2. Exhibit B - Non-Capitalized Equipment Needs
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Prepared by: Tarik Rahmani, Finance Director