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May 21, 2024
ITEM TITLE
ARPA Spending Plan and Agreement: Approve the American Rescue Plan Act (ARPA) Spending Plan Amendment and Second Amendment to the Agreement with Alpha Project, and Reallocate Funds
Report Number: 24-0165
Location: No specific geographic location
Department: Housing and Homeless Services
G.C. § 84308: Yes
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. Under NEPA, the activity is exempt pursuant to Title 24, Part
58.34(a)(2)&(3) of the Code of Federal Regulations and pursuant to the U.S. Department of Housing & Urban Development Environmental Guidelines.
Recommended Action
Adopt a resolution (1) amending the American Rescue Plan Act Spending Plan, (2 ) approving a Second Amendment to 2-party agreement No. 2023-136 with Alpha Project , and (3) reallocating funds for that purpose. (4/5 Vote Required)
SUMMARY
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 (“ARPA”), to provide $350 billion in emergency funding for eligible state, local, territorial, and Tribal governments. 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, and essential workers, in communities hardest hit by the crisis.
The City received a total of $57.5 million, which was appropriated by the City Council with the initial plan presented on August 24, 2021 and the Fiscal Year 2023-24 adopted budget. This action proposes to provide P a g e | 2
an additional amendment to the Spending Plan by reallocating $100,000 from an existing project under the Negative Economic Impact s Category, more specifically, delivering assistance to workers and families through the Alpha Project’s “Take Back the Streets Program”.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with CEQA and NEPA. The activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because the proposal consists of a reporting action, is not for a site -specific project and will not result in a direct or indirect physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Under NEPA, the activity is exempt pursuant to Title 24, Part
58.34(a)(2)&(3) of the Code of Federal Regulations and pursuant to the U.S. Department of Housing & Urban Development Environmental Guidelines. Thus, no further environmental review is necessary at this time.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
To support the immediate COVID-19 pandemic response, provide for basic emergency needs, bring back jobs, and lay the groundwork for a strong and equitable recovery, ARPA established the Coronavirus State and Local Fiscal Recovery Funds designed to assist state, local, territorial, and Tribal governments to bolster their response to the COVID-19 emergency and its economic impacts. Treasury launched much-needed relief to:
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; and Address systemic public health and economic challenges that have contributed to the inequal impact of the pandemic on certain populations.
The Coronavirus State and Local Fiscal Recovery Funds provide substantial flexibility for each jurisdiction to meet local needs. Despite improvements in the economy and the lifting of California’s pandemic restrictions, many individuals in our community continue to struggle. The City’s Homeless Outreach Team conducted an independent Chula Vista count in September of 2023 which revealed that the number of homeless has continued to grow . In March 2020 , the City received a direct allocation of Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) funds through the Community Development Block Grant (“CDBG”) program. Along with the allocation, the Department of Housing and Urban Development iss ued programmatic waivers that eliminated the standard fifteen percent (15%) cap on Public Services CDBG expenditures. The City seized this opportunity to fund a City initiative, Operation Pride. This multidisciplinary approach spans various City department s and agencies to assist with job training and reentry while supporting the City’s clean-up efforts. As partners, the City selected McAlister Institute (Work for Hope Program) and Alpha Project (Take Back the Streets) . This program not only provides job opportunities to formerly homeless individuals but assisted City staff in maintaining clean and safe public spaces, including parks and streets since September 2020.
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Since its initial funding, the program demonstrated that it serves as a catalyst for homele ss people who are able to work, providing them with immediate transitional employment and training . The significant rise in trash resulted in staff’s determination that an increase of services from Alpha Project to continue and maintain clean-up efforts would be a substantial benefit to the program and the City. For this reason, staff executed a First Amendment (Number 2023-136) to original Agreement (Number 2021-125) to continue the program. This item seeks to execute a Second Amendment No. 2024-104 to allocate the activity under the negative economic impacts category of the ARPA Spending Plan in the amount of $ 100,000 to ensure the “Take Back the Street Program” continuation through June 2025.
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 property -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.
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 avail able American Rescue Plan Act funds. Approval of the resolution reallocates $100,000 in ARPA funds that have been previously appropriated.
FY 2022 FY 2023 FY 2024 FY 2024
Category Final Budget Final Budget Revised Budget
Proposed
Adjustments
EC 1 - Public Health 9,867,625$ 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 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 (CRF0020) 100,000 100,000 - 100,000 300,000 Homeless Supportive Services (CRF0022) 100,000 100,000 - (100,000) 100,000 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 4 - Premium Pay to Essential Workers 916,000$ 1,541,000$ -$ -$ 2,457,000$ EC 5 - Infrastructure 900,000$ -$ (900,000)$ -$ -$ EC 6 - Revenue Recovery 11,592,750$ 15,827,692$ 23,226,377$ -$ 50,646,819$ Governmental Funds 11,592,750 15,827,692 23,226,377 - 50,646,819 EC 7 - Administrative Expenses -$ -$ -$ -$ -$ TOTAL 26,476,375$ 31,058,875$ -$ -$ 57,535,250$ * As of December 12, 2023
City of Chula Vista - ARPA Spending Plan
Total Budget with
Proposed
Adjustments
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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 American Rescue Plan Act funds.
ATTACHMENTS
1. Second Amendment to Agreement (Number 2024-104)
Staff Contact: Angelica Davis, Homeless Solutions Manager Stacey Kurz, Housing and Homeless Services Director