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February 8, 2022
ITEM TITLE
American Rescue Plan Act Spending Plan: Amend the American Rescue Plan Act Spending Plan to Include a Homeless Supportive Services Program
Report Number: 22-0057
Location: No specific geographic location
Department: Development Services
Environmental Notice : The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Notwithstanding the foregoing, the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines.
Recommended Action
Adopt a resolution amending the American Rescue Plan Act Spending Plan , allowing the City Manager to execute documents to implement the amendment, and reallocating funds for that purpose. (4/5 Vote Required)
SUMMARY
On May 10, 2021, the U.S. Department of the Treasury (the “Treasury”) announced the launch of the Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”), established by the American Rescue Plan Act of 2021 (“ARPA”), to provide $350 billion in emergency funding for eligible state, local, territorial, and Tribal governments. The SLFRF provides substantial flexibility for each jurisdiction to meet local needs—including support for households, small businesses, impacted industries, essential workers, and the communities hardest-hit by the crisis. On August 24, 2021, the City Council approved the appropriation of $28.76 million from the ARPA funds, including an appropriation of $14 million from the ARPA account into Governmental Funds and the addition of 10.0 positions to the General Fund.
This item seeks to amend the Spending Plan by reallocating $100,000 from Economic Development Funds to the Negative Economic Impacts, more specifically, to fund the Homeless Supportive Services Program.
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ENVIRONMENTAL REVIEW
The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity is not a “Project” as defined under Section 15378 of the state CEQA Guidelines; therefore, pursuant to Section 15060(c)3) of the State CEQA Guidelines, the activity is not subject to CEQA. Although environmental review is not required at this time, once the scope of potential project(s) has been defined, environmental review will be required for each pro ject and the appropriate environmental determination will be made. Notwithstanding the foregoing, it has also been determined that the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Thus, no environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
ARPA established the SLFRF to assist governments to bolster their response to the COVID-19 emergency and its economic impacts by setting the following goals:
Support urgent COVID -19 response efforts to continue to decrease spread of the virus and bring the pandemic under control.
Replace lost public sector revenue to strengthen support for vital public services and help retain jobs. Support immediate economic stabilization for households and businesses. Address systemic public health and economic challenges that have contributed to the inequal impact of the pandemic on certain populations.
With the launch of the SLFRF, t he Tre asury released further details on how these funds can be used to respond to acute pandemic response needs, fill revenue shortfalls among these governments, and support the communities and populations hardest-hit by the COVID-19 crisis. Eligible jurisdictions have been able to access this funding to address immediate pandemic response needs, such as: basic emergency needs, bring back jobs, and lay the groundwork for a strong and equitable recovery.
These funds present a significant opportunity for our community to meaningfully address the pandemic’s disproportionate toll on people of color, people with disabilities, immigrant communities, low -income households, and other historically marginalized groups, including the homeless population.
On August 21, 2021, City Council approved the formal Spending Plan in the amount of $28.7 million which represented the first round of ARPA funds received in May 2021. Subsequent to th e initial allocation, two Spending Plan Amendments have been approved as critical needs increase and are identified in response to the pandemic.
The Amendments include:
Amendment No. 1: Jacobs and Cushman San Diego Food Bank allocation of $100,000 to provide food distribution services.
Amendment No. 2: Alpha Project – Take Back the Streets allocation of $100,000 to provide job training and placement to previously homeless individuals.
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This proposed Amendment No. 3 would include the creation of a new program entitled Homeless Supportive Services in the amount of $100,000. This program will support the ongoing efforts by the City’s Homeless Outreach Team to provide a continuum of services for homeless, at risk and low -income households. The program is designed to work in tandem with the City’s housing programs by offering unique, individual assistance required by the homeless individual to reach stable housing and increas ing levels of self - sufficiency. This item would also authorize the City Manager to execute any necessary documents or agreements to implement said amendment.
The table below reflects the new proposed allocation of ARPA funds.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real p roperty-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.). Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
Category FY 2022 FY 2023 Total
Revenue Recovery 32,200,000$
Governmental Funds 14,000,000$ 18,200,000$
Public Health 19,935,250$
HVAC (GGV0261) 9,000,000$ 9,500,000$
COVID Testing/Vaccinations 667,625$ 567,625$
Negative Economic Impacts
Jacobs and Cushman San Diego Food Bank 100,000$ -$ Alpha Project - Take Back the Streets 100,000$
Homeless Supportive Services 100,000$ *
Premium Pay to Essential Workers 1,000,000$ 500,000$ 1,500,000$ Economic Development 2,900,000$
Small Business Grants 2,600,000$ -$
Choose Chula 100,000$ -$
Curb/Sidewalk Café Grant 200,000$ -$ ** Infrastructure 900,000$
Broadband Design (GGV0263) 900,000$ -$
TOTAL 28,767,625$ 28,767,625$ 57,535,250$
ARPA Funding Recommendation
* Negative Economic Impacts: New Program Allocation of $100,000 ** Economic Development: Reduction to Curb/Sidewalk Café Grant from $300,000 to $200,000 P a g e | 4
CURRENT-YEAR FISCAL IMPACT
There is no current year fiscal impact to the City's General Fund as all costs associated with the program are covered by available ARPA funds. Approval of the resolution reallocates $100,000 in ARPA funds that have been previously appropriated.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact to the City's General Fund as all costs associated with the program are covered by available ARPA funds.
ATTACHMENTS
None.
Staff Contact: Tiffany Allen, Director of Development Services Angélica Davis, Sr Management Analyst