RESOLUTION NO. _______
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING THE FISCAL YEAR 202 3-24
BUDGET, AMENDING THE FISCAL YEAR 2023 -24 CIP
PROGRAM BUDGET BY ESTABLISHING A NEW CIP
PROJECT, GGV0270 “PALOMAR MOTEL”; AND AMENDING
THE AMERICAN RESCUE PLAN ACT SPENDING PLAN ;
AND APPROPRIATING $13 MILLION FOR ACQUISITION
AND RENOVATION OF PALOMAR MOTEL (GGV0270) (4/5
VOTE REQUIRED)
WHEREAS, on May 10, 2021, the U.S. Department of the Treasury announced the launch of the Coronavirus State and Local Fiscal Recovery Funds, established by the American Rescue Plan Act of 2021, to provide $350 billion in emergency funding for eligible state, local, territorial, and Tribal governments; and
WHEREAS, the Treasury also adopted and released the final rule as guidance 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; and
WHERAS, ARPA includes State and Local Fiscal Recovery Funds (SLFRF) to support urgent COVID response efforts to decrease the spread of the virus, replace lost public sector revenue to strengthen support for vital public services, support immediate economic stabilization for households and businesses, and address systemic public health and economic challenges that have contributed to inequal impacts of the pandemic on certain populations; and
WHEREAS, the Coronavirus State and Local Fiscal Recovery Funds provide substantial flexibility for each jurisdiction to meet local needs —including support for households, small businesses, impacted industries, essential workers, housing, and the communities hardest -hit by the crisis; and
WHEREAS, t hese funds also deliver resources that r ecipients can invest in building, maintaining, or upgrading their water, sewer, and broadband infrastructure; and
WHEREAS, the City of Chula Vista received $57,535,250 in two tranches with $28,767,625 provided in May 2021 and the remaining $28,767,625 received twelve months later; and
WHEREAS, these f unds must be obligated (when referencing a recipient’s or subrecipient’s use of funds under a Federal award, “obligated” means orders placed for property and services, contracts and subawards made, and simila r transactions that require payment) by December 31, 2024 and expended by December 31, 2026; and
WHEREAS, ARPA fund recipients calculate and report revenue loss annually according to the formula outlined in the final rule guidance, supporting those entities that experience a lagged impact of the crisis on revenues; and
WHEREAS, staff recommends that the City acquire and renovate the Palomar Motel to create permanent supportive housing as a significant step forward in the City’s effort to address homelessness and provide another long-term solution to the City’s homelessness transition efforts; and
WHEREAS, staff has calculated and submitted to Treasury updated revenue loss amounts annually using audited financial data and reported the following revenue loss: Calendar Year 2020 $31.9 million; Calendar Year 2021 $30.2 million; and, most recently for Calendar Year 2022 $57.7 million; and
WHEREAS, once a shortfall in revenue is identified, recipients have broad latitude to use this funding to support government services, up to this amount of lost revenue; and
WHEREAS, as of the April 2023 reporting period, the City’s revenue loss amount has surpassed the total awarded amount and therefore the City is allowed to use the entirety of ARPA funds awarded under the revenue category eligible use category; and
WHEREAS, City staff recommends that the Fiscal Year 2023 -24 Operating and CIP Program Budget and the American Rescue Plan Act Spending Plan be amended as follows:
Reallocate $851,868 to ARPA General Go vernmental Services under Revenue Recovery (EC-6) and close out the COVID Testing and Vaccination projects under Public Health (EC-1)
Reallocate $3.5 million to the CIP budget of Eucalyptus Park project PRK0340 from the Negative Economic Impacts Category (EC-2) to the Revenue Re covery Category (EC-6)
Reallocate $51,951 of previously appropriated ARPA funds for curb and sidewalk cafes to the ARPA General Governmental Services under Revenue Recovery (EC- 6) and close out the project under Economic Development (EC-2) Reallocate $1,096,000 previously appropriated ARPA funds to the ARPA General Governmental Services under Revenue R ecovery (EC-6) and close out the Premium Pay to Essential Workers category (EC-3)
Reallocate $7.9 million and reducing CIP budget of HVAC CIP project GGV0261 under Public Health (EC-1) to the Palomar Motel project (GGV0270) in Revenue Recovery Category (EC-6)
Reallocate $5.1 million in Revenue Category (EC-6) to Palomar Motel project (GGV0270) in the Revenue Recovery Category (EC-6)
Reallocate $10.0 million CIP budget of HVAC CIP project GGV0261 from the Public Health Category (EC-1) to the Revenue Category (EC-6) Amend the CIP budget and appropriate to newly created CIP project GGV0270 Palomar Motel Project in Revenue Category (EC-6)
Resolution No.
Reallocate $1.1 million of ARPA funds previously appropriated for ADA Self - Evaluation and Transition Plan Update, within the Revenue Category (EC-6) Reallocate $128,196 of ARPA funds previously appropriated for the Public Engagement Platform, within the Revenue Category (EC-6) Reallocate the remaining balance from the Loma Verde Community Center Project (GGV0261) and amend and reduce the CIP budget by $1,765,000. Reallocate the remaining balance of $247,750 from the C OVID premium pay project to newly proposed projects.
Reallocate the remaining balance for the University Innovation Center and Recruitment Project to newly proposed projects.
Proposed Reallocations within the Revenue Recovery Category (EC-6) Projects Being Closed Amount
Public Health: COVID-19 Testing/Vaccinations $ (851,868) Public Health: HVAC (Project GGV0261) $ (7,900,000)
Loma Verde Community Center (Project GGV0247) $ (1,765,000) Curb and Sidewalk Café Grants $ (51,951)
Premium Pay to Essential Workers $ (1,096,000)
COVID Premium Pay $ (247,750)
University Innovation Center and Recruitment $ (2,410,000) Reallocations from Total $(14,322,569)
New Projects Amount
Palomar Motel (Project GGV0270) $ 13,000,000
ADA Self-Evaluation and Transition Plan Update $ 1,100,000 Public Engagement Platform $ 128,196
General Governmental Services $ 94,373
Reallocations to Total $ 14,322,569
Total Revenue Recovery Proposed Adjustments $ -
WHEREAS, the recommended Fiscal Year 2023-24 Operating and CIP Program budget amendments are all eligible items as part of the American Rescue Plan Act of 2021 (ARPA).
WHEREAS, approval of this Resolution will create a new CIP project, GGV0270, “Palomar Motel”, and will transfer $13,000,000 in previously appropriated ARPA funds to the capital project expense category.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it hereby amends the Fiscal Year 2023 -24 Operating and CIP Program Budget and amends the American Rescue Plan Act Spending Plan and authorizes the following amendments:
Fiscal Year 2023-24 Proposed Spending Plan Amendments
Expenditure Category (EC) & Project Name Amount
EC 1 - Public Health: HVAC (Project GGV0261) $ (7,900,000) EC 6 - Revenue Recovery: General Governmental Services $ (5,100,000) EC 6 - Revenue Recovery: Palomar Motel (GGV0270) $ 13,000,000
BE IT FURTHER RESOLVED that the City Council authorizes the close out of ARPA projects that have been completed and reallocate budget balances; as well as projects that have not started, to the Revenue Recovery: General Governmental Services expenditure category , and it hereby amends the American Rescue Plan Act Spending Plan as follows:
City of Chula Vista - ARPA Spending Plan
FY 2022 FY 2023 FY 2024 FY 2024 Total Budget
with Proposed
Adjustments Category Final Budget Final Budget
Adopted
Budget
Proposed
Adjustments
EC 1 - Public Health 9,867,625 9,867,625 - (18,751,868) 983,382 HVAC (Project GGV0261) 9,000,000 8,900,000 (17,900,000) - COVID Testing/Vaccinations 667,625 367,625 - (851,868) 183,382 EC 1 - Public Health 9,867,625 9,867,625 - (18,751,868) 983,382 SBCS Domestic Violence 200,000 200,000 - - 400,000 Casa Nueva Vida DV Shelter - 400,000 - - 400,000
EC 2 - Negative Economic Impacts 300,000 3,822,558 - (3,522,558)
600,000
Jacobs and Cushman San Diego Food Bank 100,000 100,000 - - 200,000 Alpha Project - Take Back the Streets 100,000 100,000 - - 200,000 Homeless Supportive Services 100,000 100,000 - - 200,000 Eucalyptus Park - 3,522,558 - (3,522,558) - EC 2 - Economic Development 2,900,000 - - (51,951) 2,848,049 Small Business Grants 2,600,000 - - - 2,600,000 Choose Chula 100,000 - - - 100,000
Curb/Sidewalk Café Grant 200,000 - - (51,951) 148,049 EC 3 - Premium Pay to Essential
Workers 916,000 1,541,000 1,096,000 (1,096,000) 2,457,000 EC 5 - Infrastructure 900,000 - - (900,000) - EC 6 - Revenue Recovery 11,592,750 15,827,692 (1,096,000) 24,322,377 50,646,819 Governmental Funds 11,592,750 15,827,692 (1,096,000) 24,322,377 50,646,819 EC 7 - Administrative Expenses - - - - - TOTAL $ 26,476,375 $ 31,058,875 $ - $ - $ 57,535,250
Resolution No.
Revenue Recovery Detail
Governmental Fund Revenue Recovery Recommendation
FY 2022 FY 2023 FY 2024 FY24 Total Budget
with Proposed
Adjustments Category Final Budget Final Budget Adopted Budget Proposed
Adjustments
Operational Support 4,042,750 9,267,692 (1,096,000) (114,181) 12,100,261 Development Services Fund - 1,000,000 - - 1,000,000 COVID Premium pay 692,750 1,661,250 247,750 (247,750) 2,354,000 Funding new positions 350,000 350,000 298,814 - 998,814 PW Proj Mgmt-Non CIP Proj
(PWP0001) 1,000,000 500,000 - - 1,500,000 SD Foundation Fees - 180,000 - - 180,000 General Governmental
Services 2,000,000 5,576,442 (1,642,564) 94,373 6,028,251 Infrastructure 6,500,000 4,400,000 - 25,657,558 36,557,558 *Broadband Design
(GGV0263) - - - 900,000 900,000 Main Street Fiber (GGV0258) 300,000 - - - 300,000 Telegraph Canyon Culvert
Repair (DRN0208) 3,200,000 2,950,000 - - 6,150,000 Loma Verde Community
Center (GGV0247) 2,000,000 - - (1,765,000) 235,000 Casa Casillas (GGV0262) 1,000,000 1,450,000 - 2,450,000 **HVAC (Project GGV0261) - - - 10,000,000 10,000,000 ***Eucalyptus Park
Renovation (PRK0340) - - - 3,522,558 3,522,558 > Palomar Motel (GGV0270) - - - 13,000,000 13,000,000 Economic Development 1,050,000 2,160,000 - (1,221,000) 1,989,000 Public Art Grants (Library) 400,000 - - - 400,000 Starlight Nights 200,000 - - - 200,000 Equity and Inclusion 100,000 100,000 - - 200,000 Governmental Fund Revenue Recovery Recommendation
FY 2022 FY 2023 FY 2024 FY24 Total Budget
with Proposed
Adjustments Category Final Budget Final Budget Adopted Budget Proposed
Adjustments
> ADA Compliance - - - 1,100,000 1,100,000 > Public Engagement
Platform - - - 128,196 128,196 University Innovation
Center/Recruitment 350,000 2,060,000 - (2,410,000) - TOTAL 11,592,750 15,827,692 (1,096,000) 24,322,377 50,646,819
Presented by Approved as to form by
Sarah Schoen Jill D.S. Maland Director of Finance/Treasurer Lounsbery Ferguson Altona & Peak Acting City Attorney