HomeMy WebLinkAboutItem 6a. American Rescue Plan Act and State and Local Fiscal Recovery Funds Item 6a
Department: Finance
Cost Center: 2001
For Agenda of: 3/1/2022
Placement: Study Session
Estimated Time: 60 minutes
FROM: Derek Johnson, City Manager
Prepared By: Brigitte Elke, Finance Director
SUBJECT: AMERICAN RESCUE PLAN ACT AND STATE AND LOCAL FISCAL
RECOVERY FUNDS
RECOMMENDATION
1. Direct Staff to return at the 2022-2023 Supplemental Budget to appropriate $3.5
million towards affordable housing that targets extremely low and very low income
and/or homeless persons most impacted by COVID-19; $1 million to the infrastructure
investment fund; and $100,000 to augment the Human Relations Commission annual
Grants in Aid (GIA) cycle one time to further support health and human services
programs or projects; or
2. Provide other strategic budget direction to staff on the use of the unappropriated
portion of American Rescue Plan Act (ARPA) funds (in the amount of $4.6 million) for
consideration with the 2022-2023 Supplemental Budget.
REPORT-IN-BRIEF
The purpose of this agenda item is to provide strategic budget direction to staff to return
with the Supplemental Budget for the 2022-2023 fiscal year that aligns eligible expenses
with the Final Rule as promulgated by the U.S. Treasury Department on January 22,
2022. Clarifying details of the Final Rule and other important relevant information are
included in various footnotes on each page of this report.
The Supplemental Budget is the second year of the City’s two-year financial plan and has
historically constituted minor amendments to planned expenditures. This year is different
as the amount of the American Rescue Plan Act funding increased from the projected
$8.9 million to $13.5 million and $4.6 million is available for appropriation with the
Supplemental Budget.
Other minor adjustments other than ARPA funding will be recommended for the
Supplemental Budget and yet, this historic one -time funding in amounts that exceed
original forecasts are out of cycle with the financial planning process and provide the
opportunity for the Council to afford direction in advance of the scheduled Supplemental
Budget hearing on June 7, 2022.
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Early clarity and specificity will help align funding in the Supplemental Budget with other
Major City Goal work plan efforts and position the city to support any unique opportunities
that could benefit from one time funding. Because of the size and restrictions of the
funding, early direction and planning will help position the City to efficiently direct funding
to eligible needs and uses and make any adjustments needed to work plans
On February 15, 2022, the City Council received a recommendation during mid-year
budget report from the City Manager based on Council comments about the possible use
of unappropriated ARPA funding in the amount of $4.6 million. The City Council provided
direction to return with recommendations to prioritize $3.5 million of ARPA funding
towards housing and homelessness and $100,0001 for additional assistance to local non-
profits, leaving $1 million which is recommended to go toward the Infrastructure
Investment Fund.
The staff recommendation for funding appropriation amounts are based on an analysis of
the Final Rule and alignment with the City’s Four Major City Goals. Other options are
available in the three eligible categories if the City Council wants to split the amount
between uses. More details about these categories are discussed below.
DISCUSSION
In March 2021, Congress approved the American Rescue Plan Act (ARPA) which
provided funding to state, county, and local jurisdictions through the Coronavirus State
and Local Fiscal Recovery Funds program (SLFRF). The program was designed to
provide vital resources to state, county, and local governments to respond to the
pandemic and its economic effects and to replace revenue loss due to the public health
emergency, preventing reductions to government services.
To provide further guidance as to the use of the funding, the U.S. Department of the
Treasury issued an interim final rule in May 2021 which was followed by the Final Rule
on January 22, 2022. Though the Final Rule did not establish an y additional funding
options, it streamlined the use of funding and reduced the administrative burden for
jurisdictions and set forth four different eligible use categories. Staff’s recommendation
for specific appropriation amounts aligns Final Rule permissible uses and with Major City
Goal priorities. If Council pursues different appropriations, Staff recommends that the
City Council still evaluate and align funding with Major City Goal priorities.
1 The $100,000 was predicated on a recommendation by Human Relations Commission staff that justifiable
funding requests exceed the budgeted Grants in Aid (GIA) general fund budget of $150,000 for the 2022-
2023 fiscal year.
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Specifically, the ARPA provides that SLFRF funds may be used to:
a) To respond to the public health emergency or its negative economic impacts,
including assistance to households, housing, homelessness, small businesses,
and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality
(1. Economic Recovery and Public Health).
b) To respond to workers performing essential work during the COVID -19 public
health emergency by providing premium pay to eligible workers (2. Premium Pay)
c) For the provision of government services to the extent of the reduction in revenue
due to the COVID-19 public health emergency relative to revenues collected in the
most recent full fiscal year prior to the emergency (3. Revenue Loss); and
d) To make necessary investments in water, sewer, or broadband infrastructure (4.
Utilities Infrastructure).
More details about the four categories are provided below and this report will outline
options under the Final Rule as well as the City’s funding appropriations included in the
2021-23 Financial Plan (Table A) which already considers $8.9 million under revenue
loss, leaving $1.1 million under this most flexible spending category (REVENUE LOSS)
and $3.5 million that needs to be directly tied to the Final Rule’s other three funding
categories for a total of $4.6 million.
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Table A
# CATEGORIES 2021-2023
FINANCIAL
PLAN
2022-23
SUPPLEMENTAL
BUDGET
(RECOMMENDED)
MAJOR CITY
GOAL
PRIORITY
1 Economic And Public
Health Impacts
$3,564,4672 Housing And
Homelessness3
2 Premium Pay for
Eligible Workers
3 Revenue Loss $8.9 million $10 million4 Economic
Recovery,
Resiliency and
Fiscal
Sustainability5
4 Utilities Infrastructure
5 Available For
Appropriation
$0 $0
6 TOTAL: $8.9 million $13,564,467
2 $3.4 available for appropriation under three categories (Economic and Public Health, Premium Pay for
Eligible Workers and Utilities Infrastructure. Staff is recommending $3.3 million for housing and/or
homelessness and $100,000 for the HRC based on previous Council discussions and the fact that this
eligible use aligns with the City’s Major City Goal and otherwise provides services or support traditionally
offered by the City of San Luis Obispo.
3In order to expand housing opt ions for all, continue to facilitate the production of housing, including the
necessary supporting infrastructure, with an emphasis on affordable and workforce housing. Collaborate
with local non-profit partners, and the county, the state and federal government to discover and implement
comprehensive and effective strategies to reduce chronic homelessness.
4$1.1 (Revenue Loss) is recommended to be allocated in the infrastructure investment fund for critical
infrastructure (MCG) and the Final Rule allowances for “Road building & maintenance and other
infrastructure”. Specific projects would be recommended in the 2022-2023 Supplemental Budget.
5In collaboration with local partners, continue to support economic recovery for all from the COVID
pandemic and support a thriving local economy by supporting local businesses, arts and culture, downtown
vitality, practicing fiscal responsibility, paying down unfunded pension liabilities, and investing in critical
infrastructure.
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1. Economic and Public Health Impacts
The SLFRF program provides resources for governments to meet the public health
and economic needs of those impacted by the pandemic in their communities, as well
as address longstanding health and economic disparities resulting in more severe
impacts from the pandemic. The eligible use category to respond to public health and
negative economic impacts is organized around the types of assistance and includes
several sub-categories:
Public Health Assistance to households 6
Assistance to small businesses Assistance to nonprofit organizations 7
Aid to impacted industries (tourism,
hospitality)
Public sector capacity
In general, to identify eligible uses of funds in this category, recipients should (1)
identify a COVID-19 public health or economic impact on an individual or class
(i.e., a group) and (2) design a program that responds to that impact. Responses
should be related and reasonably proportional to the harm identified and reasonably
designed to benefit those impacted.
Table B
Step Identify COVID-19 public health
or economic impact
Design a response that
addresses or responds to the
impact
Analysis Can identify impact to a
specific household, business,
or nonprofit or to a class of
households, businesses, or
nonprofits.
Can also identify
disproportionate impacts, or
more severe impacts, to a
specific beneficiary or to a
class
Types of responses can
include a program, service,
or capital expenditure
Response should be related
& reasonably proportional to
the harm
Response should also be
reasonably designed to
benefit impacted individual
or class.
Simplifying
Presumptions
Final Rule presumes certain
populations & classes are
impacted & disproportionately
impact.
Final Rule provides non-
exhaustive list of
enumerated eligible uses
that respond to pandemic
6 Includes housing and homelessness
7 The County of SLO Community Foundation has offered to administer any grants should the Council be
inclined to delegate grant making authority.
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and disproportionate
impacts.
Enumerated eligible uses for a municipality such as San Luis Obispo:
Table C
Responding to the public health emergency
Public Communication Efforts PPE/protective supplies
Support for prevention, mitigation, or
other services in childcare facilities
Support for prevention and mitigation
strategies in small businesses,
nonprofits, and impacted industries
Emergency operations centers &
emergency response equipment (e.g.,
emergency response radio systems.
Paid family & medical leave for public
employees to enable compliance with
COVID-19 public health precautions
Behavioral Health Care
Crisis care, diversion programs,
outreach to individuals not yet
engaged in treatment, harm reduction
& long-term recovery support
Behavioral health facilities &
equipment.
Referrals to trauma recovery services
for victims of crime
Law enforcement officers focused on
advancing community policing
Negative Economic Impacts
Assistance to low- or moderate-
income households *
Households that experienced
unemployment
Households that experienced
increased food or housing insecurity
When providing affordable housing
programs: households that qualify for
the National Housing Trust Fund and
Home Investment Partnerships
Program.8
8 Should council support the Staff recommendation or provide direction for this category, it is recommended
that the City allocate funding to affordable housing projects that meet the criteria established by the City
Council in Resolution #9263 (2001 Series) (Attachment A) in addition to all applicable rules and
requirements under the SLFRF Final Rule. The criteria under the Resolution include Eligibility, Need,
Suitability, Timing, Financial Effectiveness and Readiness. These criteria are already by the City Council
and provide Staff with the guidance needed to recommend approval of requests for funding of qualified
affordable housing projects. City Council approval of each award would continue to be required to make
the appropriate findings under ARPA’s SLFRF Final Rule requirements.
The City’s Affordable Housing Fund currently has an uncommitted balance of $200,724 which is not
sufficient to meet short-term needs and City Staff has had several conversations with Affordable Housing
Providers about the immediate and near- term need for additional funding to complete projects. and thus
smaller funding request may be brought forward to the City Council prior to the formal NOFA process.
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Programs or services to support long-
term housing security, including
development of affordable housing &
permanent supportive housing.9
Improvements to vacant and
abandoned properties, including
rehabilitation or maintenance,
renovation, removal and remediation
of environmental contaminants,
demolition or deconstruction,
greening/vacant lot cleanup &
conversion to affordable housing.
Assistance to Nonprofits (501(c)(3) or 501(c)(19) tax-exempt organizations)
Loans or grants to mitigate financial
hardship
Technical or in-kind assistance and
services that mitigate negative
economic impacts directly tied to the
pandemic
Restore and Bolster Public Sector Capacity
Police officers Firefighters
Emergency medical responders Dispatchers and supervisor personnel
directly supporting public safety staff.
Employees involved in providing
medical and other physical or mental
health services to patients
Child, elder, or family care employees
Restoring pre-pandemic employment
for the same positions that existed on
January 27, 2020, but were unfilled or
eliminated as of March 3, 2021.
Supporting & Retaining Public Sector Workers
Provide additional funding for
employees who experienced pay
reductions or were furloughed
Provide worker retention incentives,
incl. reasonable increases in
compensation.
Covering administrative cost
associated with administering the
hiring, support, & retention programs.
Effective Service Delivery
Community outreach & engagement
activities
Capacity building resources to support
using data and evidence, incl. hiring
staff, consultants, or technical
assistance support
Technology infrastructure to improve
access to and the user experience of
government IT systems, as well as
technology improvements to increase
9 This allowable subcategory aligns with the City’s Housing and Homelessness Major City Goals.
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public access and delivery of
government programs and services
*Note: low- or moderate-income households are those with 1) income at or below 300% of the Federal
Poverty Guidelines 2) income at or below 65% of the area median income for the county.
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2. PREMIUM PAY FOR ELIGIBLE WORKERS
The second permissible category is premium pay for eligible workers. General details
are provided below.
Table D
Premium Pay for Eligible workers (Eligible workers include workers “needed to
maintain continuity of operations of essential critical infrastructure sectors.)
Emergency Response Sanitation, disinfection & cleaning
Maintenance Grocery stores, restaurants,
Behavioral Health Family & Childcare
Local workforce Solid waste & hazardous materials
clean-up
Hotel & commercial lodging
facilities that are used for COVID-
19 mitigation & containment
Note: Essential Work cannot be performed while teleworking from a residence and
involves a) regular, in-person interactions with the public or coworkers, b) regular
physical handling of items that were handled by the public or coworkers.
3. Replacing Lost Public Sector Revenue
The City of San Luis Obispo can use SLFRF funds on government services up to the
revenue loss amount, whether that be the standard allowance amount of $10 million,
or the amount calculated using the above approach. Government services generally
include any service traditionally provided by a government unless Treasury has
stated otherwise. Here are some common examples, although this list is not
exhaustive:
Road building & maintenance and
other infrastructure.
Environmental remediation.
General government
administration, staff, and
administrative facilities.
Provision of police, fire, and other
public safety services (incl.
purchase of fire trucks & policy
vehicle.
Public Sector Revenue Loss is the most flexible eligible use category under the
SLFRF program, and funds are subject to streamlined reporting an d compliance
requirements. The City needs to be mindful that certain restrictions, which are detailed
further in the Restrictions on Use section and apply to all uses of funds, apply to
government services as well.
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With the 2021-23 Financial Plan, the City has already appropriated $8.9 million to its
Infrastructure Investment Fund to replenish capital funding lost to operating cost in
response to the community’s needs and to assist with economic recovery. The funding
was appropriated for the Prado Bridge replacement which has already obtained all CEQA
related permits and is a fully federalized project and a critical piece of the Prado Road
corridor. Given the scope of the City’s pending CIP program, Staff recommends that an
additional $1 million be added to the infrastructure investment fund given the price
volatility in the construction sector over the next 16 months.
Framework for Eligible Uses Beyond Those Enumerated
The City of San Luis Obispo has broad flexibility to identify and respond to other pandemic
impacts and serve other populations that experienced pandemic impacts, beyond the
enumerated uses and presumed eligible populations. However, the City should undergo
the following steps to decide whether the project is eligible:
Table E
Step Identify COVID-19 public health or
economic impact
Design a response that addresses
or responds to the impact
Analysis Can identify impact to a specific
household, business, or nonprofit or to
a class of households, businesses, or
nonprofits.
Can also identify disproportionate
impacts, or more severe impacts, to a
specific beneficiary or to a class
Types of responses can include a
program, service, or capital
expenditure
Response should be related &
reasonably proportional to the harm
Response should also be
reasonably designed to benefit
impacted individual or class.
1. Identify a COVID-19 public health or negative economic impact on an individual or
a class. Recipients should identify an individual or class that is “impacted” or
“disproportionately impacted” by the COVID-19 public health emergency or its
negative economic impacts as well as the specific impact itself.
“Impacted” entities are those impacted by the disease itself or the harmful
consequences of the economic disruptions resulting from or exacerbated by
the COVID-19 public health emergency. For example, an individual who lost
their job or a small business that saw lower revenue during a period of closure
would both have experienced impacts of the pandemic.
“Disproportionately impacted” entities are those that experienced
disproportionate public health or economic outcomes from the pandemic;
Treasury recognizes that pre-existing disparities, in many cases, amplified the
impacts of the pandemic, causing more severe impacts in underserved
communities. For example, a household living in a neighborhood with limit ed
access to medical care and healthy foods may have faced health disparities
before the pandemic, like a higher rate of chronic health conditions, that
contributed to more severe health outcomes during the COVID-19 pandemic.
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2. The city may designate classes that experienced disproportionate impact, by
assessing the impacts of the pandemic and finding that some populations
experienced meaningfully more severe impacts than the general public. To
determine these disproportionate impacts, the city:
May designate classes based on academic or government research
publications (such as the citations provided in the supplementary information
in the final rule), through analysis of their own data, or through analysis of other
existing data sources.
May also consider qualitative research and sources to augment their analysis,
or when quantitative data is not readily available. Such sources might include
resident interviews or feedback from relevant state and local agencies, such as
public health departments or social services departments.
Should consider the quality of the research, data, and applicability of analysis
to their determination in all cases.
This report does not address assistance to Small Businesses since the City has invested
substantial funding during 2020 and 2021 to assist small businesses including:
50 parklets for restaurants &
barber shops
Tenant improvement program
Small Business assistance grants Shop Local Campaign
Downtown Activation
Water, Sewer & Broadband Infrastructure The final rule significantly broadens eligible
broadband infrastructure investments to address challenges with broadband access,
affordability, and reliability, and adds additional eligible water and sewer infrastructure
investments, including a broader range of lead remediation and stormwater management
projects. The following are broad details of eligible projects under this category.
Table F
Infrastructure – Eligible projects
Culvert repair, resizing, and
removal.
Stormwater infrastructure
Cybersecurity Investments
Restrictions on Use
While recipients such as the City of San Luis Obispo have considerable flexibility to use
the SLFRF program to address the diverse needs of its community, some restrictions on
use of funds apply.
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Offset a reduction in net tax
revenue resulting from a change in
law, regulations or administrative
interpretation.
Deposits into Pension Funds to
reduce accrued, unfunded liability.
No debt service or replenishing of
financial reserves
No satisfaction of settlements and
judgments
Any use or projects that conflict with
or contravenes the purpose of
ARPA.
Next steps
With direction from the City Council, staff will return in June 2022 at the Budget
Supplement and provide specific recommendations for the use of $4.6 million in
compliance with the U.S. Treasury’s Final Rule that best serves the need of the
community and the Council’s Major City Goals. A budgetary resolution would be brought
forth to the City Council to document the full $13.5 million in appropriations for future
clarity on reporting and for transparency.
Previous Council or Advisory Body Action
The Council acted on $8.9 million of SLFRF with the adoption of the 2021 -23 Financial
Plan.
Policy Context
The use of SLFRF have to follow the U.S. Treasury’s Final Rule and should be aligned
with community needs as well as the City’s adopted Major City Goals.
Public Engagement
Public Comment on the item can be provided to the City Council through written
correspondence prior to the meetin g and through public testimony at the meeting. Final
appropriation as part of the supplemental budget will be done at a public hearing on June
1, 2022, or thereafter if continued.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not ap ply to the recommended action in
this report because the action does not constitute a “Project” under CEQA Guidelines
Sec. 15378.
FISCAL IMPACT
Budgeted: No Budget Year: 2022-23
Funding Identified: Yes
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Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $
State
Federal $13,564,467
Fees
Total $ $ $ $
The city, like many other state, county, and local jurisdictions, has experienced a
tremendous revenue loss in several major tax and fee categories during 2020 into 2021.
It has also used its resources to support the community and assist with its economic
recovery. The funding received through SLFRF under ARPA will backfill $10 million in
revenue loss and provide an additional $3.5 million for investments in accordance with
the U.S. Treasury’s Final Rule as outlined in this report and $1.1 million that can generall y
be appropriated. Since the second installment of the funding will be received in July 2022,
the Financial Plan Supplement will establish the use and appropriation of the funding
through Council deliberation and direction and public input.
ALTERNATIVES
Council could pursue the other following alternatives:
1. Continue the item and provide no action and defer further direction to the June
7, 2022, Supplemental Budget Hearing. This is not recommended as funds must
be appropriated by 2024 and spent by 2026 and any appropriations are likely going to
take a few years to be fully spent and there is a strong likelihood that desirable projects
consistent with the Housing and Homeless MCG and Final Rule will need a pledge of
funding prior to June 2022.
2. Form an ad-hoc committee of City Council members to provide a
recommendation to the City Council on June 7, 2022.
3. Request additional information and schedule an additional study session prior
to June 7, 2022, Supplemental Budget Hearing.
ATTACHMENT
A – Resolution No. 9263 (2001 Series)
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RESOLUTION NO. 9263 (2001 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
ESTABLISHING AWARD CRITERIA AND A REVIEW PROCESS FOR
ALLOCATING AFFORDABLE HOUSING FUNDS.
WHEREAS, the City Council adopted Ordinance 1348 (1999 Series) establishing
an Affordable Housing Fund for the collection and distribution of in -lieu housing fees to
promote affordable housing in San Luis Obispo; and
WHEREAS, as a result of the in -lieu fee payments to the City under the
Inclusionary Housing Ordinance, the City has a balance of approximately $400,000 in the
Affordable Housing Fund, and this fund is available to support affordable housing in San
Luis Obispo at the sole discretion of the City Council; and
WHEREAS, the City received requests by Judson Terrace Lodge and Sojourn
Services, Inc. for the use of $215,000 and $25,000, respectively, of Affordable Housing
Funds; and to evaluate these and future funding requests in a fair and timely manner,
Council wishes to establish award criteria and a review process for the Affordable Housing
Fund; and
WHEREAS, the City Council held a meeting on December 4, 2001 to consider
possible award criteria that balance the need to provide a fair, open and timely funding
award process with the desire to maintain funding flexibility to address local housing needs
and opportunities;
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo that based on its deliberations, public comments, the staff report, and on State law,
the following:
SECTION 1. Affordable Housing Fund Award Criteria. The City Council
establishes the following criteria for evaluating requests for use of the Affordable Housing
Fund:
1. Eligibility. Use of the Affordable Housing Fund (AHF) for the requested
purpose will increase or improve the City's affordable housing inventory and
promote General Plan policies regarding housing.
2. Need. There exists a substantial or overarching need for the type of housing to be
assisted.
3. Suitability. The project to be assisted is appropriate for its location, both in
terms of land use and design.
4. Timing. The project would be better serve the City's needs if it were built
immediately as opposed to later.
R 9263
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I OI_
l
Resolution No. 9263 (2001 Series)
Page 2
5. Financial Effectiveness. But for the requested assistance, the project would not
be economically feasible; or AHF funding "leverages" significant additional funding
from other sources.
6. Readiness. The project has all necessary City approvals and is ready to proceed.
SECTION 2. Use of Award Criteria. The Council will apply the above criteria
when evaluating funding requests. Requests that most closely meet the criteria will be given
the most favorable consideration in allocating Affordable Housing Funds. Under no
circumstances is Council obligated to award Affordable Housing Funds. The decision
whether to allocate funds and how much is at the sole discretion of the City Council whose
decision is final.
SECTION 3. Review Process. The Community Development Director shall be
responsible for processing requests for use of Affordable Housing Funds. Such requests
shall usually be considered concurrent with review of the City's Community Development
Block Grant Program. The Director is authorized to bring urgent funding requests to the
Council at any time, irrespective of the above review cycle.
SECTION 4. Funding Agreements. Recipients of Affordable Housing Funds
shall be required to execute an agreement with the City describing the purpose and terms of
funding. The project or program to be funded shall meet the City's Affordable Housing
Standards, including the requirement for an affordability term of at least thirty (30) years,
and City equity participation in the project where feasible and appropriate. The City
Administrative Officer is authorized to execute such agreements for the City.
Upon motion of Council Member Schwartz; seconded by Vice Mayor Marx, and on the
following roll call vote:
AYES: Council Members Ewan, Mulholland,,Schwartz, Vice Mayor Marx,
and Mayor Settle
NOES: None
ABSENT: None
The foregoing resolution was adopted this
4h
day of December 2001
ATTE T:
r
Lee Price, City Clerk.
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1.
Resolution No. 9263 (2001 Series)
Page 3
APPROVED AS TO FORM:
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City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: March 1, 2022
TO: Mayor and Council
FROM: Michael Codron, Director of Community Development
VIA: Derek Johnson, City Manager
SUBJECT: Item #6.a – American Rescue Plan Act and State and Local Fiscal Recovery
Funds
During the course of preparing the Council Agenda Report for this item, an incorrect and
out of date Affordable Housing Fund balance was published in the report.
The correct Affordable Housing Fund balance is: $1,645,413.03
The fund balance previously reported did not account for recent changes to the fund and
assumed that an award of $1.3 Million in support of People’s Self -Help Housing
Corporation’s Broad Street Place project was not paid, when in fact it was paid. The error
was administrative on the part of staff in Community Development. The Finance
Department maintains the true and accurate account balance for this fund. The additional
balance that is available in the Affordable Housing Fund provides the City Council with
more flexibility regarding the projects that it wants to fund and support going forward. The
City’s Affordable Housing Fund is suited to smaller awards for more projects, whereas
the ARPA funding, which has additional criteria and reporting requirements, would be
better to award in one or two grants.
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American Rescue Plan Act & State and Local Fiscal Recovery FundsMarch 1, 2022
1.Direct Staff to return at the 2022-2023 Supplemental Budget to appropriate $3.5 million towards affordable housing that targets extremely low and very low income and/or homeless persons most impacted by COVID-19; $1 million to the infrastructure investment fund; and $100,000 to augment the Human Relations Commission annual Grants in Aid (GIA) cycle one time to further support health and human services programs or projects; or 2.Provide other strategic budget direction to staff on the use of the unappropriated portion of American Rescue Plan Act (ARPA) funds (in the amount of $4.6 million) for consideration with the 2022-2023 Supplemental BudgeRecommendations
American Rescue Plan Act ARPAAmerican Rescue Plan ActCongressional ActAlso knows as the Covid-19 stimulus package - $1.9 trillion in economic stimulus funding.3/11/21 retroactive availability12/31/24 all funds committed12/31/26 all funds spent
Housing $ 42 billionOther $173 billionAgriculture $16 billionVeteran Affairs $27 billionRestaurants $25 billionTransportation & Infrastructure $71 billionExpanded Tax Credits $143 billionSmall Business -$84 billionSmall Biz Support $59 billionStimulus Checks - $410 billionHealth - $105 billionState & Local Fiscal Recovery Funds -$350 billionEducation $173 billionCovid-19 Related Policy $123 billionExtended Unemployment Benefits $246 billion
Economic Recovery & Public HealthTo respond to the public health emergency or its negative economic impacts, incl. assistance to households, housing, homelessness, small businesses, & nonprofits, or aid to impacted industries e.g. tourism, travel, & hospitality Premium PayTo respond; to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers.Revenue LossFor the provision of government services to the extent of the reduction in revenue relative to revenues collected in the most recent full fiscal year prior to the emergency. InfrastructureTo make necessary investments in water, sewer, and/or broadband infrastructure.Funding Options for Local Jurisdictions
Revenue LossFor the provision of government services to the extent of the reduction in revenue relative to revenues collected in the most recent full fiscal year prior to the emergency. Revenue LossFinal Rule - $10 million or calculation of lossMost flexible allocation – General Government Services2021-23 Financial Plan allocated $8.9 million into Infrastructure Investment FundRemaining $1.1 millionRecommendation:• $100,000 to Grants-in-Aid through HRC• $1 million to infrastructure
2021-23 Major City GoalHousing & Homelessness. To expand housing options for all, continue to facilitate the production of housing, incl. the necessary supporting infrastructure, with an emphasis on affordable & workforce housing. Collaborate with local non-profit partners and the county, the state, & federal government to discover & implement comprehensive & effective strategies to reduce chronic homelessness.
Economic Recovery & Public HealthEconomic Recovery & Public HealthTo respond to the public health emergency or its negative economic impacts, incl. assistance to households, housing, homelessness, small businesses, & nonprofits, or aid to impacted industries e.g. tourism, travel, & hospitality Funding tied to Final Rule $3,564,467Recommendation: Direct Staff to return at the 2022-2023 Supplemental Budget to appropriate $3.5 million towards affordable housing that targets extremely low and very low income and/or homeless persons most impacted by COVID-19Responding to Public Health EmergencyBehavioral HealthNegative Economic ImpactsAssistance to Nonprofits (501(c)(3) or (19)Restore & Bolster Public Sector CapacityAssistance to households- Food insecurity- Unemployment- Affordable housing programSupporting & Retaining Public Sector WorkersEffective Service Delivery
Affordable Housing ProjectsOn the Horizon…HASLOAnderson Hotel Purchase and RehabilitationMaxine Lewis Site RedevelopmentUpper Monterey Senior and Family HousingTMHA Palm Street Studios – No Place Like Home GrantHousing for Homeless or At RiskARPA Grant Request - $300,000
County of SLO ARPA ActionToday the Board of Supervisors allocated ARPA funding to the following projects:Project NameOrganization Award AmountDescription LocationAnderson Hotel PreservationHousing Authority of San Luis Obispo$2,000,000 Preserves 68 units of very low-income housingSan Luis ObispoArroyo Grande Affordable HousingHousing Authority of San Luis Obispo$1,946,000 Adds 63 new units to serve up to 124 low to very-low-income individualsArroyo GrandeNon-Congregate Shelter5Cities Homeless Coalition$400,000 New temporary non-congregate emergency shelter providing 80 very low-income individuals with non-congregate shelterGrover BeachJD0
Slide 10JD0 [@Poschman, Hans], please add information from tomorrow's BOS action. [@Elke, Brigitte]Johnson, Derek, 2022-02-28T16:44:52.263PH0 0 [@Johnson, Derek] [@Elke, Brigitte] Updated to reflect the the BOS vote. Of note Supervisor Peschong and Gibson indicated some disappointment that the City had not allocated funding to the Anderson project. Wade did let them know that he has been talking with the City about some projects. Poschman, Hans, 2022-03-01T19:16:50.354EB0 1 [@Poschman, Hans] Thank you, Hans. [@Johnson, Derek] - do you want me to mention the BOS comments regarding the Anderson?Elke, Brigitte, 2022-03-01T19:23:55.352
1.Direct Staff to return at the 2022-2023 Supplemental Budget to appropriate $3.5 million towards affordable housing that targets extremely low and very low income and/or homeless persons most impacted by COVID-19; $1 million to the infrastructure investment fund; and $100,000 to augment the Human Relations Commission annual Grants in Aid (GIA) cycle one time to further support health and human services programs or projects; or 2.Provide other strategic budget direction to staff on the use of the unappropriated portion of American Rescue Plan Act (ARPA) funds (in the amount of $4.6 million) for consideration with the 2022-2023 Supplemental BudgeRecommendations