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Home My Public Portal About10) 10B_ARPA Allocation-Staff ReportADMINISTRATIVE SERVICES DEPARTMENT MEMORANDUM DATE: October 5, 2021 TO: City Council FROM: Bryan Cook, City Manager By: Susan Paragas, Administrative Services Director SUBJECT: DISCUSSION REGARDING ALLOCATION OF AMERICAN RESCUE PLAN ACT (ARPA) OF 2021 FUND RECOMMENDATION: The City Council is requested to provide direction for the potential uses of the ARPA allocation allocated to the City of Temple City totaling $8,566,752. Attachment “A” identifies eligible ARPA allocation uses for Council consideration. BACKGROUND: 1.On March 11, 2021, President Biden signed into law the American Rescue Plan Act (ARPA), a $1.9 trillion stimulus package, to counteract the economic impacts of the pandemic. The bill contains a $350 billion allocation for state and local government aid known as the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF). 2.On May 10, 2021, the City’s allocation was updated to $8,566,752 based on a modified version of the Community Development Block Grant (CDBG) formula. 3.On July 13, 2021, the City received $4,283,376 which is 50% of its allocation. ANALYSIS: The overall intent of the ARPA is to provide support to individuals, businesses and local government to help offset the negative impacts of the Coronavirus Disease 2019 (COVID- 19) pandemic. The $350 billion CSLFRF, includes $65.1 to counties and $65.1 for cities, towns and villages of which $19.5 billion was set aside to cities with less than 50,000 residents and classified as Non-Entitlement Units (NEUs). The City is a NEU and its ARPA allocation of $8,566,752 is based on a modified version of the CDBG formula. AGENDA ITEM 10.B. City Council October 5, 2021 Page 2 of 5 All of California’s CSLFRF NEUs allocation were remitted to the State of California (State) and, thus, to be distributed by the State to the NEU cities. The City received 50% of its allocation on July 13, 2021 in the amount of $4,283,376. The remaining 50% is scheduled to be received 12 months later in July 2022. The City’s funds must be committed by December 31, 2024 with final expenditures to be made by December 31, 2026. Per the Federal Department of the Treasury Interim Final Rule (IFR), it identified four eligible uses for the funding as follows: (A) Responding to COVID-19 Public Health Emergencies and Negative Economic Impacts – Funding of COVID-19 mitigation efforts; – Assisting households, small businesses and nonprofits; and – Aiding impacted industries such as tourism, travel and hospitality. (B) Providing Premium Pay to Essential Workers – Offering additional support to workers who bear the greatest health risks because of their services in critical sectors. (C) Replacing Revenue Losses – Funding of City’s revenue reductions due to pandemic for the provision of government services that ensures continuity of government services. (D) Investing in water, sewer and broadband infrastructure – Making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and expand access to broadband internet. Additionally, there are two types of uses that are prohibited: 1) Funds cannot be deposited into any pension fund; and 2) Funds cannot be used directly or indirectly to offset tax reductions or a delay in a tax or tax increase. Per the IFR, government services, under Category C, can include, but are not limited to, maintenance of infrastructure or pay-go spending for building new infrastructure, including roads; modernization of cybersecurity, including hardware, software, and protection of critical infrastructure; and environmental remediation. However, paying interest or principal on outstanding debt, replenishing rainy day or other reserve funds, or paying settlements or judgments would not be considered provision of a government service, City Council October 5, 2021 Page 3 of 5 since these uses of the funds do not entail provision of services to the citizens of the community. To determine the extent of the City’s revenue losses under Category C, staff utilized the Public Revenue Loss Calculator spreadsheet developed by the League of California Cities and with the collaboration of the California Society of Municipal Finance Officers (CSMFO). After completing the required data, the calculation determined that the City is eligible to use all of its ARPA funding under Category C as described above. Attachment “A” contains the proposed projects that are eligible for use of the City’s ARPA funds. The projects are classified in three (3) categories: a. Maintenance and Improvements; b. Reimbursables; and c. Technology Below are the categorized proposed eligible projects with its estimated costs: Table A 1 ADA Improvements $200,000 2 Automated Doors-City Hall, Chamber, P&R $125,000 3 Banners and City Limits Signs Replacements $20,000 4 Basement Remodel $100,000 5 CD Conference Room Remodel $5,000 6 City Yard Improvements TBA 7 Comm Center Portable Stage-Replacement $15,000 8 Community Center Exterior Painting $100,000 9 Community Room Remodel $45,000 10 EV Charging Stations for City Vehicles $100,000 11 EV Charging Stations for Public $200,000 12 HVAC Systems, Roofing $500,000 13 Laser Level Baseball and Softball Fields-LOP $75,000 14 LOP and TC Park Playgrounds $500,000 15 LOP Basketball Court Backboard Replacements $15,000 16 Pavement Resurfacing TBA 17 Replacement of Drinking Fountains $80,000 18 Solar Panels $500,000 19 Traffic and Street Signs Replacements $100,000 Total Estimated Maintenance & Improvements $2,680,000 Maintenance & Improvements City Council October 5, 2021 Page 4 of 5 Table B The estimated total of $397,840 for Reimbursables (Table B) will go into the General Fund as reimbursements to the City’s expenditures used to help mitigate and contain the spread of COVID-19. Table C Table D The total estimated proposed project costs are 45.4% ($3,892,840) of the City’s total ARPA allocation of $8,566,752. The remaining 54.6% ($4,673,912) of the allocation will be budgeted for other potential projects. However, the funds must be committed by December 31, 2024 and expended by December 31, 2026. Attachment “C” contains the multi-year program plan that was developed with the FY 2019-2020 budget. It lists Council’s program priorities two years ago which also included unfunded projects. Please note that the costs in the report were only estimates where no actual quotes were requested. There are currently eight projects highlighted in Attachment C that are included in the proposed projects in Table A above. 20 Administrative Leave Payments $133,430 21 Containing/Mitigating COVID-19 $185,250 22 Time used for COVID-19 activities $40,655 23 Unemployment Costs $22,945 24 Vaccination Clinics $15,560 Total Estimated Reimbursables $397,840 Reimbursables 25 Counter Remodel $270,000 26 Fiber Connections-City Buildings $50,000 27 Financial System Upgrade $300,000 28 Online PBX System $10,000 29 PC/Printers Replacements-14 $25,000 30 Scanning-Digital Storage $100,000 31 WORM System $60,000 Total Estimated Technology $815,000 Technology $3,892,840 $4,673,912 Total Estimated Proposed Project Costs TOTAL BALANCE AVAILABLE ARPA FUNDS City Council October 5, 2021 Page 5 of 5 Council is requested to provide direction with moving forward on any of the proposed projects in Tables A, B and C (also listed in Attachment ‘A’) as well as additional projects Council wishes to include. A separate staff report will be submitted at a later date requesting for the actual funding of any of the items discussed today. CITY STRATEGIC GOALS: Actions contained in this report align with the City’s strategic goal of good governance. FISCAL IMPACT: There is no fiscal impact with this action as staff is requesting direction from Council. A separate staff report will be presented requesting Council approval for funding of identified projects. ATTACHMENTS: A.ARPA Allocation Proposed Eligible Uses B.Public Revenue Loss Calculation C.FY 2019-2020 Multi-Year Program Plan Description 1 ADA Improvements $200,000 2 Automated Doors-City Hall, Chamber, P&R $125,000 3 Banners and City Limits Signs Replacements $20,000 4 Basement Remodel $100,000 5 CD Conference Room Remodel $5,000 6 City Yard Improvements TBA 7 Comm Center Portable Stage-Replacement $15,000 8 Community Center Exterior Painting $100,000 9 Community Room Remodel $45,000 10 EV Charging Stations for City Vehicles $100,000 11 EV Charging Stations for Public $200,000 12 HVAC Systems, Roofing $500,000 13 Laser Level Baseball and Softball Fields-LOP $75,000 14 LOP and TC Park Playgrounds $500,000 15 LOP Basketball Court Backboard Replacements $15,000 16 Pavement Resurfacing TBA 17 Replacement of Drinking Fountains $80,000 18 Solar Panels $500,000 19 Traffic and Street Signs Replacements $100,000 Total Estimated Maintenance & Improvements $2,680,000 20 Administrative Leave Payments $133,430 21 Containing/Mitigating COVID-19 $185,250 22 Time used for COVID-19 activities $40,655 23 Unemployment Costs $22,945 24 Vaccination Clinics $15,560 Total Estimated Reimbursables $397,840 25 Counter Remodel $270,000 26 Fiber Connections-City Buildings $50,000 27 Financial System Upgrade $300,000 28 Online PBX System $10,000 29 PC/Printers Replacements-14 $25,000 30 Scanning-Digital Storage $100,000 31 WORM System $60,000 Total Estimated Technology $815,000 $3,892,840 $4,673,912 Reimbursables Technology Total Estimated Proposed Project Costs TOTAL BALANCE AVAILABLE ARPA FUNDS CITY OF TEMPLE CITY ARPA Allocation (Coronavirus State and Local Fiscal Recovery Funds) PROPOSED ELIGIBLE USES Estimated Costs Maintenance & Improvements ATTACHMENT A V3.0 Fund Basis (Modified Accural) Agency Name: Agency Contact Info: Date: $20,849,223 worksheet cell F10. 4.49% worksheet cell F12 or 4.1% whichever is greater. June 30, 2019 Reporting Period Months Elapsed Counterfactual Revenue Revenue Loss January 1, 2020 - December 31, 2020 18 $ 22,270,470 -$3,156,769 January 1, 2021 - December 31, 2021 30 $ 23,271,394 -$3,447,953 January 1, 2022 - December 31, 2022 42 $ 24,317,303 -$4,543,751 January 1, 2023 - December 31, 2023 54 $ 25,410,220 -$5,126,666 $19,773,552 $20,283,554 Revenue Loss Summary American Rescue Plan Coronavirus State and Local Fiscal Recovery Funds Public Revenue Loss Calculator - for California Cities City of Temple City $19,113,701 $19,823,441 Base Year Revenue: The amount of revenues collected in the most recent fiscal year prior to the public health emergency (i.e., the last fiscal year before January 27, 3030), called the base year value. Growth Adjustment: The average percent revenue growth in the three full fiscal years prior to the COVID-19 public health emergency -or- 4.1 percent, whichever is greater. Fiscal Year End Date: The date for the most recent full fiscal year prior to the declaration of public health emergency on January 27, 2020. Actual Revenue ATTACHMENT B from "ActualRevenues" worksheet cell F10. from "ActualRevenues" worksheet cell F12 or 4.1% whichever is greater. computed from "ActualRevenues" worksheet. Fund basis of accounting (modified accrual) ATTACHMENT B CATEGORY: FACILITIES SOURCE(S) FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 TOTAL CIP-1 City Hall: Sewer Lateral Replacement GF -$ -$-$ 45,000$ 45,000$ CIP-2 LOP Community Center: Phase I Improvements GF, MeA 180,000 - - - 180,000 CIP-3 LOP Community Center: Phase II Improvements MeA 75,000 - - - 75,000 CIP-4 LOP Community Center: Phase III Improvements MeA - 150,000 - - 150,000 CIP-5 LOP Community Center: Phase IV Improvements MeA - - 100,000 - 100,000 Subtotal: Funded 255,000$ 150,000$ 100,000$ 45,000$ 550,000$ CIP-6 City Hall & Civic Center: ADA, Title 24 & Haz. Mat. Rem. UNFUNDED 350,000 - - - 350,000 CIP-7 UNFUNDED - - - 950,000 950,000 CIP-8 City Hall & Civic Center: Seismic Retrofit UNFUNDED - 800,000 - - 800,000 CIP-9 UNFUNDED - - - 200,000 200,000 CIP-10 Downtown Parking Lots: Aesthetic Improvements UNFUNDED - 250,000 250,000 - 500,000 CIP-11 LOP Community Center: Expansion UNFUNDED - - - 13,000,000 13,000,000 Subtotal: Unfunded 350,000$ 1,050,000$ 250,000$ 14,150,000$ 15,800,000$ CATEGORY: PARKS SOURCE(S) FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 TOTAL CIP-12 LOP: Chain Link Fencing Replacement MeA -$ 150,000$ -$ -$ 150,000$ CIP-13 LOP: Courts Resurfacing MeA - - - 50,000 50,000 CIP-14 Primrose Park: Design & Construction GF, Pr68 2,171,200 - - 2,171,200 CIP-15 LOP: Phase II Facilities Master Plan Improvements - Design MeA 200,000 - - - 200,000 CIP-16 Temple City Park: Pavilion Re-Roofing Acq 20,000 - - - 20,000 CIP-17 MeA - - 200,000 - 200,000 CIP-18 Temple City Park: Replace Conduit & Wiring Acq 15,000 - - - 15,000 Subtotal: Funded 235,000$ 2,321,200$ 200,000$ 50,000$ 2,806,200$ CIP-19 LOP: Phase II Facilities Master Plan Improvements-Construction UNFUNDED 2,200,000 - - 2,200,000 CIP-20 UNFUNDED - - 1,000,000 - 1,000,000 Subtotal: Unfunded -$ 2,200,000$ 1,000,000$ -$3,200,000$ MULTI-YEAR PROGRAM PLAN SUMMARY City Hall & Civic Center: HVAC Units City Hall: New Roofing Temple City Park: Playground Replacement LOP: Playground Replacement Page 1 of 3 ATTACHMENT C MULTI-YEAR PROGRAM PLAN CATEGORY: SEWER & STORMWATER SOURCE(S) FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 TOTAL CIP-21 Safe Clean Water Program GF, MeW 116,000$ 150,000$ -$ -$ 266,000$ Subtotal: Funded 116,000 150,000 - - 266,000 CIP-22 Dry Well Installation UNFUNDED 150,000 150,000 150,000 150,000 600,000 CIP-23 Sewer System Improvements UNFUNDED 1,400,000 1,400,000 1,400,000 1,400,000 5,600,000 Subtotal: Unfunded 1,550,000$ 1,550,000$ 1,550,000$ 1,550,000$ 6,200,000$ CATEGORY: STREETS & SIDEWALKS SOURCE(S) FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 TOTAL CIP-24 Bridge Repair & Maintenance RMRA 125,000$ 125,000$ -$ -$ 250,000$ CIP-25 GF, MeM, MeR, RMRA 1,611,000 1,384,000 1,384,000 1,509,000 5,888,000 CIP-26 Repaving: Las Tunas Dr. GF, MeM, PrC, RMRA 2,188,000 - - - 2,188,000 CIP-27 Repaving: Rosemead Blvd. GF, RMRA 525,000 - - - 525,000 CIP-28 Sidewalks & Curb Ramps: ADA Improvements TDA 71,000 100,000 100,000 - 271,000 Subtotal: Funded 4,520,000$ 1,609,000$ 1,484,000$ 1,509,000$ 9,122,000$ CIP-29 UNFUNDED 250,000 250,000 250,000 250,000 1,000,000 Subtotal: Unfunded 250,000$ 250,000$ 250,000$ 250,000$ 1,000,000$ CATEGORY: STREETSCAPE SOURCE(S) FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 TOTAL CIP-30 Median Irrigation: Baldwin & Santa Anita Aves.LLD 75,000$ -$ -$ $ 75,000 CIP-31 GF 75,000 - - - 75,000 CIP-32 Streetlights: LED Conversions LLD - 160,000 - - 160,000 Subtotal: Funded 150,000$ 160,000$ -$ -$310,000$ CIP-33 Las Tunas Dr.: Streetscape Enhancements UNFUNDED 120,000 180,000 935,000 - 1,235,000 CIP-34 Rosemead Blvd.: Bridge Painting UNFUNDED 350,000 - - - 350,000 Subtotal: Unfunded 470,000$ 180,000$ 935,000$ -$ 1,585,000$ Pavement Management: Street Resurfacing Replacements: Traffic & Street Signage Replacements: Banners & City Limit Signs Page 2 of 3 ATTACHMENT C MULTI-YEAR PROGRAM PLAN CATEGORY: OTHER SOURCE(S) FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 TOTAL CIP-35 GF 40,000$ -$ -$ -$ 40,000$ Subtotal: Funded 40,000$ -$ -$-$40,000$ TOTAL PROGRAM ESTIMATES SOURCE(S) FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 TOTAL Funded 5,316,000$ 4,390,200$ 1,784,000$ 1,604,000$ 13,094,200$ Unfunded 2,620,000$ 5,230,000$ 3,985,000$ 15,950,000$ 27,785,000$ TOTAL 7,936,000$ 9,620,200$ 5,769,000$ 17,554,000$ 40,879,200$ EV Charging Stations: City Hall & Live Oak Park Page 3 of 3 ATTACHMENT C