CITY OF SIMI VALLEY
MEMORANDUM
May 9, 2022
TO: City Council
FROM: Office of the City Manager
SUBJECT: CONSIDERATION OF PROPOSED PROJECTS TO BE FUNDED
THROUGH THE AMERICAN RESCUE PLAN (ARPA) ACT
STAFF RECOMMENDATION
It is recommended the City Council approve the revised allocation of ARPA projects and direct staff to initiate contracts with vendors and partner agencies to implement the spending plan.
BACKGROUND AND OVERVIEW
The American Rescue Plan Act (ARPA) allocated $15,325,294, to the City of Simi Valley, distributed over two years with the first half ($ 7,662,647) already received and the second half expected later this calendar year . The City Council must obligate the funds by December 31, 2024, and fully expend by December 31, 2026.
The ARPA has specific categories and uses for utilization of the funds, in addition to offsetting losses that may have been encountered by the City as a result of the COVID-19 pandemic.
On December 6, 2021, staff presented possible projects to allocate the ARPA funds.
After consideration of the project s, the City Council directed staff to solicit input from the public on the allocations and return to the City Council. Staff has received community input and is returning wi th a revised allocation based on that input.
Staff requests the City Council review the revised proposed list of project s and approve the proposed allocations.
FINDINGS AND ALTERNATIVES
ARPA was signed into law on March 11, 2021, providing emergency fun ding of $350 billion to eligible state, local, territorial and Tribal governments to aid with the impacts of COVID-19. Allocations are population based and the funds are one-time in nature. The intended uses are broken down into seven broad categories as outlined by the Treasury Final Rule and enumerated below:
• Public H ealth - Expenditures to fund COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff;
AGENDA ITEM NO.
8B
2 • Negative Economic I mpacts - Expenditures which address impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector; • Revenue Replacement - Using this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic; • Premium Pay - Offering additional support to those who have borne and will bear the greatest health risks because of their service in critical infrastructure sectors, emphasizing the need for recipients to prioritize premium pay for lower income workers;
• Services to Disproportionately Impacted Communities – Using funds to address educational assistance, healthy childhood environments and improvements, affordable housing and programs to address the unhoused, and to address social determinants of health;
• Administrative – To address the cost of managing the ARPA funds or transferring funds to other units of government; and
• Infrastructure – Making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure and to expand access to broadband internet.
The City has broad flexibility, within the categories of eligible uses, to decide how best to use this funding to meet the community’s needs. The Treasury Department’s guidance is not exhaustive and local jurisdiction s must make a nexus between the P rogram’s application or use and the intended purposes of the ARPA. With the exception to the use of ARPA funds to reim burse governments for their losses due to COV ID-19, all uses of funds must be used to address the impacts of COVID-19.
Because ARPA funds represent one-time funding, funded projects should not create an ongoing financial obligation of the City or the recipients . Further, guidance from the Treasury Department provides that the use of the ARPA funds is generally forward looking. However, the Final Rule permits use of funds to cover costs incurred beginning on March 3, 2021.
While there is broad latitude to support the community impacted by COVID-19, there are clear restrictions as well. Ineligible uses of the funds include:
• Offs
et tax cuts due to a change in law;
• Deposits into a Pension Fund or reducing unfunded liabilities; • Deposits to rainy day funds or financial reserves;
• Debt Service funding;
• Legal Settlements or judgments.
A
s noted above, the City solicited input from the public on the proposed allocation of ARPA funds. The City notified the public via social media, notific ation on the City’s website, a press release, and an article in the Simi Valley Acorn. After a three-week period, the City received 28 emails from 25 persons providing comments and suggestions on the proposed ARPA fund allocations.
3 With respect to comments pertaining to proposed allocations, the following were tallied:
Item # Proposed Project Number of
Supporting Emails
7 Sanitary Sewer Line Rehabilitation 2
12 Business Revolving Loan Fund 3
13 Cultural Arts Center – Non Profit Support 4
14 Household Home Repair and Assistance 6
15 Reinforcement to Food Pantries serving S.V. 6
16 Vulnerable Population Case Management 7
17 Vulnerable Population Housing 2
19 Behavioral Health Care 7
20 Reimbursement of City Costs 2
21 Acquisition of Air Filters 3
22 PPE Acquisition 3
23 Senior Center Food Storage Equipment 3
24 Streets and Roads 6
25 Rehabilitation of Pool and Pool House 2
26 Child Care Assistance 9
27 Domestic Violence Safe House 8
In addition to the above, staff has compiled a list of suggested funding projects that were included in the comments from the public; attached as Attachment A, page 6.
The Interim Rule for use of ARPA funds established by the Treasury Department provided a formula for cities to calculate their revenue losses due to COVID -19. Through this Interim Rule formula, staff determined the City’s minimum revenue loss was $5 million.
Therefore, the City could allocate $5 million to the City’s General Fund through the Revenue Replacement category. The Revenue Replacement category allows the City to deposit the ARPA funds into the General Fund and allocate the funding for government services, including, but not limited to, the following:
• Maintenance of infrastructure or pay -go spending for building new infrastructure, including roads;
• Modernization of cybersecurity, including hardware, software, and protection of critical infrastructure;
• Health services;
• Environmental remediation;
• School or educational services; and
• The provision of police, fire, and other public safety services.
As part of the City Council’s December 2021 review, staff recommended , and the City Council approved, the transfer of $5 million of ARPA funds to the General Fund for Streets and Roads projects through the Revenue Replacement category. Subsequently, the method for determining government losses changed.
4 While the Interim Rule required a calculation to determine government losses, the Treasury Department’s Final Rule now allows a city to claim a “standard deduction” for revenue loss of $10 million. As the standard deduction allows the City to transfer $10 million to the General Fund for the Revenue Replacement c ategory, and based on the input received from the public and the well-documented need to address streets and road conditions in Simi Valley, staff recommends the City Council set aside an additional $5 million for Streets and Roads projects.
Further, at the December 2021 review of ARPA proposed allocations, the City Council allocated $1 million to the Rehabilitation of the Pool and Pool House at Rancho Simi Community Park, Item #25 on the proposed projects list. This project is located in Qualified Census Tract (QCT) 78. The ARPA Rules provides that certain services are automatically eligible when provided w ithin a Qualified Census Tract or to families in a QCT. The QCTs are a common, readily accessible and geographic method to identify portions of communities with a large proportion of low -income residents. In Simi Valley, there is one QCT (QCT 78, see map, Attachment B, page 7), generally bounded by Royal Avenue on the south, First Street to the west, the railroad right -of-way to the north, and Erringer Road to the east.
After allocating $10 million for S treets and Roads and $1 million to the Pool/Pool House Rehabilitation project, a balance of $4,325,294 is available for allocation.
Each expenditure category identified by the Treasury Department for use of ARPA funds has sub-categories that further define the eligible uses. Based on the public input and assessing the needs in the City, staff has revised the list of proposed projects , attached as Attachment C on page 8. Also attached for the City Council’s reference is the December 6, 2021, staff report addressing the initial ARPA allocations (Attachment D, page 14).
The attached revised list of Projects meet the criteria of the ARPA and provide funding to categories that have been impacted by COVID-19 or provide relief due to the impacts of COVID. These funding designations will greatly assist Simi Valley residents and businesses with the impacts of COVID-19. Because the ARPA funds do not need to be obligated until December 2024, it is recommended that allocations be spread over a multi- year period in order to ensure continued and lasting assistance beyond the reach of the pandemic’s effect. It is anticipated that the use of ARPA funds will be reviewed annually by the City Council to re-evaluate the distribution of the funds and the needs at the time.
Staff requests the City Council review and approve the attached revised list of projects.
If approved, staff will initiate contacts with proposed vendor(s) and partner agencies to carry out each project and return to the City Council with contracts that require Council approval.
5 The following alternatives are available to the City Council:
1. Approve the revised allocation of ARPA projects and direct staff to initiate contracts with vendors and partner agencies to implement the spending plan;
2. Amend and approve the revised allocation of ARPA projects and direct staff to initiate contracts with vendors and partner agencies to implement the spending plan;
3. Provide further direction to staff.
Staff recommends Alternative No. 1.
SUGGESTED CITY COUNCIL MOTION
I move to approve the revised allocation of ARPA projects and direct staff to initiate contracts with vendors and partner agencies to implement the spending plan.
SUMMARY
The American Rescue Plan Act (ARPA) allocated $15,325,294, to the City of Simi Valley, distributed over two years with the first half ($7,662,647) already received and the second half expected later this year. The City Council must obligate the funds by December 31, 2024, and fully expend the funds by December 31, 2026. The ARPA has specific categories and uses that the funds can be used in addition to offsetting loses that may have been encountered by the City as a result of the COVID -19 pandemic. Staff presented a li st of Preliminary Projects in December 2021 that meet the criteria of the ARPA and provide funding to categories that have been impacted by COVID -19.
Subsequently, the City Council requested staff solicit public input on the proposed projects and report back to the City Council. Staff has received community input and is returning with a revised allocation based on that input. Staff requests the City Council review the revised proposed list of projects and approve the proposed allocations.
____________________________________
Brian P. Gabler
City Manager
INDEX Page
Attachment A – Suggested Funding Projects ................................... 6 Attachment B - Qualified Census Tract ............................................ 7 Attachment C - Revised Projects List ............................................... 8 Attachment D – December 6, 2021 Staff Report ............................ 14
ATTACHMENT A
ARPA FUNDING SUGGESTIONS
• Funding to families with family members who have dies due to COVID-19 • Benefit to those suffering learning loss i.e. individual tutoring • Funding medical treatment for longterm COVID-19 effects • Funding for telemedicine for COVID-19 treatment
• Support for behavioral health facilities and equipment • Community violence intervention programs
• Cash assistance to homeless population
• Drug and mental health assistance
• Invest in City equestrian center
• Funding for GiGi’s Playhouse (non-profit business venture to support community of Down Syndrome children and adults; alternative funding sources exist i.e. EDC business loans)
• Funding to rebuild schools
• Funding to asphalt the Arroyo Simi Bike Path
• Grants to property owners and landlords to upgrade properties • Recruit businesses to Simi Valley
• Establish a concession stand to be operated by Veterans at City parks • Create craft fair and establish annual festival at City parks • Invest in outdoor dining
• Create grotto area at trailheads in City
• Underground electrical lines in City
• Improve trails
• Community park improvements
• Funding for clean-up of Santa Susana Field Lab site
• Purchase and install wind generators for electricity
• Provide basic income to residents
• Install City wireless network
• Provide K-12 student transportation
6 SIMI VALLEY QUALIFIED CENSUS TRACT #78 (QCT)
ATTACHMENT B
7 REVISED ARPA PROJECT LIST ATTACHMENT C
Item # Proposed Project Project Description Original Project Allocation
Revised Project
Allocation
ARPA Primary
Category ARPA Sub-Category
Possible Vendors
& Partner
Agencies
1 Temporary Staffing
Management, temporary staffing, and oversight of
the City's far-reaching programs to be provided
with ARPA funding.
$400,000 $400,000 Administrative Administrative Expenses City 2 Storm Drain Repair - Easy Street
Funding for the repair of 36-inch stormwater
infrastructure under Easy Street east of Madera
Road. Storm drain flows into Arroyo Simi and is in
a state of failure and undermining the
embankment of the Arroyo Simi. Project being
done in cooperation with Ventura County
Watershed District.
$300,000 $0 Infrastructure Clean Water: Stormwater City 3 Water Delivery Resiliency
Acquistion and installation of emergency
generators at critical pump stations and water tank
sites to ensure water delivery during natural
disasters and emergencies.
$1,000,000 $0 Infrastructure Drinking Water:
Transmission & Distribution City
4 Water Delivery Resiliency Replacement of Pump Stations 2 to replace and update outdated and failing equipment. $850,000 $0 Infrastructure Drinking Water:
Transmission & Distribution City
5 Water Delivery Resiliency
Upgrade piping and make modifications to
mitigate seismic issues at Stearns Water Tank #1 to
ensure water delivery and prevent failure during a
seismic event.
$650,000 $0 Infrastructure Drinking Water:
Transmission & Distribution City
6 Cybersecurity for Waterworks
District #8 and Santation District
Facilities
Acquisition and installation of upgraded
cybersecurity for the City's water and sewer
systems to ensure continued firewalls and security
of computer controlled systems. Acquisition and
installation of security monitoring equipment at
water tank sites and other water/sewer
infrastructure.
$500,000 $400,000 Infrastructure
Drinking Water: Other
Water Infrastructure &
Clean Water: Other Sewer
Infrastructure (Fed Reg
26803)
City
8 REVISED ARPA PROJECT LIST
Item # Proposed Project Project Description Original Project Allocation
Revised Project
Allocation
ARPA Primary
Category ARPA Sub-Category
Possible Vendors
& Partner
Agencies
7 Sanitary Sewer Line
Rehabilitation
Funding for the relining or replacement of aging
and failing sewer lines to ensure containment and
delivery of effluent to the City's wastewater
treatment plant and for the protection of the
environment.
$2,000,000 $0 Infrastructure
Clean Water: Centralized
Wastewater Collection and
Conveyance
City
8 Dewatering Well Rehabilitiation
Rehabilitiation of the City's five dewatering wells
that operate 24/7 to remove excess subsurface
water. Failure of such wells will negatively affect
adjacent neighborhoods, public infrastructure, and
businesses.
$600,000 $0 Infrastructure Clean Water: Stormwater City 9 Storm Drain Repair - Los Angeles
Avenue
Repair of damaged storm drain at the intersection
of Sequoia Avenue and Los Angeles Avenue. $200,000 $0 Infrastructure Clean Water: Stormwater City 10 Storm Drain Repair - Mason
Court
Repair of damaged storm drain line at the
terminus of Mason Court. $150,000 $0 Infrastructure Clean Water: Stormwater City 11 Water Line Replacement - Roan
Street
Replacement of 740 feet of 8-inch water line
servicing Roan Street, located in Qualified Census
Tract 78.
$300,000 $300,000 Infrastructure Drinking Water:
Transmission & Distribution City
12 Business Revolving Loan Fund
Create a Business Revolving Loan program that
would fund loans to businesses for the acquisition
of equipment or inventory, or make modifications
to the business premises that will increase
business customer base and revenue.
$1,000,000 $1,000,000 Negative Economic
Impacts
Small Business Economic
Assistance
Small Businesses
in Simi Valley
(EDC Likely
Vendor)
9 REVISED ARPA PROJECT LIST
Item # Proposed Project Project Description Original Project Allocation
Revised Project
Allocation
ARPA Primary
Category ARPA Sub-Category
Possible Vendors
& Partner
Agencies
13 Cultural Arts Center - Non Profit
Support
Non-profit performing arts organizations were
negatively impacted by the pandemic due to the
inabilty to fund raise or have performances,
creating zero cash flow. As a result, such non-
profits have reduce revenue to finance
productions. Funding would provide grants to
subsidize non-profit performing arts organizations
to stage productions at the CAC.
$200,000 $200,000 Negative Economic
Impacts
Small Business Economic
Assistance & Aid to
NonProfit Organizations
Simi Valley
Cultural Arts
Center and Arts
Organizations
14 Household Home Repair and
Assistance
Provide funding for home repairs and home
weatherization projects. Eligible participants are
low and moderate income homeowners or
homeowners that experienced unemployment
(Citywide) or to any homeowner within the City's
Qualified Census Tract (Tract 78).
$500,000 $400,000 Negative Economic
Impacts
Household Assistance (Fed.
Reg. 26794)
Simi Valley Low
and Moderate
Income
Homeowners
(Vendor TBD)
15 Reinforcement to Food Pantries
serving Simi Valley
Funding to assist, expand, and supplement local
food pantries; funds for acquisition of food for the
City's vulnerable population and required
equipment for food storage.
$200,000 $300,000 Negative Economic
Impacts
Household Assistance: Food
Programs
Samaritan Center,
SEWA
International,
Free Clinic of Simi
Valley
16 Vulnerable Population Case
Management
Expansion of supportive and case management
services to the City's unhoused population
including housing search and placement.
$300,000 $400,000 Negative Economic
Impacts
Housing Support: Services
for Unhoused Persons
Unhoused Simi
Valley Population,
Samaritan Center,
TBD Vendors
10 REVISED ARPA PROJECT LIST
Item # Proposed Project Project Description Original Project Allocation
Revised Project
Allocation
ARPA Primary
Category ARPA Sub-Category
Possible Vendors
& Partner
Agencies
17 Vulnerable Population Housing
Creation of a fund to provide first/last rental
payments, security deposits to establish housing
and provision of emergency housing vouchers.
$300,000 $200,000
Negative Economic
Impacts & Services to
Disproportionately
Impacted Communities
Household Assistance:
Eviction Prevention &
Housing Support: Services
for Unhoused Persons
Unhoused and
Vulnerable Simi
Valley Population
(Vendor TBD)
18 Premium Pay for Essential
Workers
Provision of premium pay for eleigible City
essential workers in conformance with ARPA
guidelines.
$400,000 $0 Premium Pay Public Sector Employees City
19 Behavioral Health Care
Funds to support the Free Clinic of Simi Valley's
open-air counseling space for clients dealing with
behavioral issues, trauma and undue stress caused
by COVID-19 pandemic, and a long-term child play
therapy.
$100,000 $250,000 Public Health Medical Expenses & Mental Health Services
Free Clinic of Simi
Valley
20 Reimbursement of City Costs
Reimbursement of City expenses related to the
enforcement of State and County Health Orders,
ensuring the public is kept informed of the COVID-
19 virus, the services available to the public and
businesses, and acquistion of PPE for the City's
workforce.
$400,000 $0 Public Health Payroll Costs Responding to
COVID-19 City
21 Acquistion of Air Filters
Funding would provide for the acquistion of
specialized (MERC) filters for the City's HVAC
systems to prevent the spread of COVID-19. City
currently uses such filters; funding would provide
several years supply ($18,000 annually).
$90,000 $60,294 Public Health Physical Plant Changes to Public Facilities City
22 PPE Acquisition Acquisition of minimum one-year supply of PPE to re-stock the City's inventory. $150,000 $0 Public Health Personal Protective Equipment City
11 REVISED ARPA PROJECT LIST
Item # Proposed Project Project Description Original Project Allocation
Revised Project
Allocation
ARPA Primary
Category ARPA Sub-Category
Possible Vendors
& Partner
Agencies
23 Senior Center Food Storage
Equipment
Replacement of a large commercial refrigeration
equipment to ensure food prepared for this
vulnerable population is safe and replacement of
tables damaged due to increased use during the
food distribution and delivery program offerred
during the pandemic.
$15,000 $15,000 Public Health
Capital Investments that
Respond to the COVID-19
Public Health Emergency
Simi Valley Senior
Center
24 Streets and Roads ($5 million
already transferred)
Offsetting $5 million in revenue losses due to
COVID-19, allowing funding to be used for general
City purposes. Funds are proposed to be
programmed toward streets & roads projects on
City arterial streets.
$5,000,000 $10,000,000 Revenue Replacement Provision of Government Services City
25 Rehabilitation of Pool and Pool
House at Rancho Simi
Community Park (previously
approved)
Funding participation in a joint project among
RSRPD and SVUSD for the rehabilitation of the pool
and pool house located in Qualified Census Tract
78 and preserving an amentity for the community.
$1,000,000 $1,000,000
Services to
Disproportionately
Impacted Communities
Healthy Childhood
Environments: Other
Rancho Simi
Recreation & Park
District
26 Child Care Assistance Funding to subsidize child care for families of low- income and/or economically disadvantaged. $150,000 $250,000 Services to
Disproportionately
Impacted Communities
Healthy Childhood
Environments: Child Care
Boys & Girls Club;
YMCA, Rancho
Simi Rec & Park
District
27 Domestic Violence Safe House Funding to support the Interface Children & Family Services safe house in Simi Valley. $50,000 $150,000
Services to
Disproportionately
Impacted Communities
Social Determinants of
Health: Community
Violence Interventions
Interface Children
& Family Services
28 Lead Paint Testing and
Abatement
Funding for the testing and abatement of lead
paint in residential units in Simi Valley. $150,000 $0
Services to
Disproportionately
Impacted Communities
Social Determinants of
Health: Lead Remediation City (Vendor TBD)
12 REVISED ARPA PROJECT LIST
Item # Proposed Project Project Description Original Project Allocation
Revised Project
Allocation
ARPA Primary
Category ARPA Sub-Category
Possible Vendors
& Partner
Agencies
American Rescue Plan Act Funding $15,325,294 $15,325,294 Proposed Project Total $16,955,000 $15,325,294
Variance -$1,629,706 $0
13 CITY OF SIMI VALLEY
MEMORANDUM
Decem
ber 6, 2021
TO: City
Council
FRO
M: Office of the City Manager
SUBJE
CT: CONSIDERATION OF PRELIMINARY PROJECTS TO BE FUNDED
THROUGH AMERICAN RESCUE PLAN (ARPA) ACT AND APPROVE
THE TRANSFER OF $5 MILLION IN ARPA FUNDS TO THE STREETS
AND ROADS FUND FOR ARTERIAL STREET PROJECTS
STAFF RECOMMENDATION
It i
s recommended the City Council direct staff to return to the City Council with a refined list of ARPA projects based on the City Council’s input and approve the transfer of $5 million in ARPA funds to the Streets and Roads fund for arterial street projects.
BACKGROUND AND OVERVIEW
The
American Rescue Plan Act (ARPA) allocated $15,325,294, to the City of Simi Valley, distributed over two years with the first half ($ 7,662,647) already received and the second half expected in July 2022. The City Council must obligate the funds by December 31, 2024, and fully expend by December 31, 2026. The ARPA has specific categories and uses that the funds can be utilized, in addition to offsetting losses that may have been encountered by the City as a result of the COVID-19 pandemic. This report provide s an outline of the ARPA and a list of possible projects City staff have identified. Staff requests the City Council review the proposed list of projects and provide feedback. With feedback, staff will further refine the proposed list and return to the City Council for further consideration.
FINDINGS AND ALTERNATIVES
ARP
A was signed into law on March 11, 2021, providing emergency funding of $350 billion to eligible state, local, territorial and Tribal governments to aid with the impacts of COVID-19. Allocations are population based and the funds are one-time in nature. The intended uses are broken down into seven broad categories as outlined by the Treasury Interim Final Rule and enumerated below:
• Publi
c H ealth - Expenditures to fund COVID-19 mitigatio n efforts, medical expenses, behavioral healthcare, and certain public health and safety staff; AGENDA ITEM NO.
8D
ATTACHMENT D
14 • N
egative Economic I mpacts - Expenditures which address impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector; • Revenue Replacement - Using this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic; • Premium Pay - Offering additional support to those who have borne and will bear the greatest health risks because of their service in critical infrastructure sectors, emphasizing the need for recipients to prioritize premium pay for lower income workers;
• Services to Disproportionately Impacted Communities – Using funds to address educational assistance, healthy childhood environments and improvements, affordable housing and programs to address the unhoused, and to address social determinants of health;
• Administrative – To address the cost of managing the ARPA funds or transferring funds to other units of government; and
• Infrastructure – Making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure and to expand access to broadband internet.
The C
ity has broad flexibility, within the categories of eligible uses, to decide how best to use this funding to meet the community’s needs. The Treasury Department’s guidance is not exhaustive and local jurisdiction s must make a nexus between the P rogram’s application or use and the intended purposes of the ARPA. All uses of funds must be tied back to the impacts of COVID-19.
Because ARPA funds represent one- time funding, funded projects the City should consider must not create an ongoing financial obligation of the City or the recipients .
Further, guidance from the Treasury Department provides that the use of the ARPA funds is generally forward looking. However, the Interim Final Rule permits funds to be used to cover costs incurred beginning on March 3, 2021.
Whi
le there is broad latitude to support the community impacted by COVID-19, there are clear restrictions as well. Ineligible uses of the funds include:
• Off
set tax cuts due to a change in law
• Deposits into a Pension Fund or reducing unfunded liabilities • Deposits to rainy day funds or financial reserves
• Debt Service funding
• Legal Settlements or judgments
The
City has the most flexibility with the category of replacing lost public sector revenue (Revenue Replacement). The California Society of Municipal Finance Officers (CSMFO), League of California Cities, and Government Finance Officers Association (GFOA) have provided calculator tools to identify revenue loss. Using these tools and in communication with the City’s auditors, Vazquez & Company LLP , the City has identified an estimated $5 million in revenue loss. This is subject to change as the City awaits the Treasury’s 15 Final Rule for ultimate guidance. These Revenue Replacement funds can be applied to government services, excluding the ineligible uses noted above. Government services 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;
• Health services;
• Environmental remediation;
• School or educational services; and
• The provision of police, fire, and other public safety services.
I
n assessing the need s of the City, due to multiple changes in State law that reduced funding for street and roads project s, the City’s arterial streets are a high priority. Staff has developed a priority list of arterial street projects, totaling $12.9 million. Staff recommends the City Council approve the transfer of $5 million in ARPA funds to the General Fund and allocate the $5 million to address the City’s arterial streets. Staff would return at a later date to seek authorization to bid the streets projects.
R
educing the ARPA allocation of $15.3 million by the $5 million Revenue Replacement allocated to arterial streets nets an estimated remaining balance of $10.3 million for the City Council to consider.
E
ach expenditure category identified by the Treasury Department for use of ARPA funds has sub-categories that further define the eligible uses. Attachment A on page 8 is a list of eligible Expenditure C ategories and the sub- categories to be used to guide the distribution of the ARPA funds.
B
ecause the ARPA is a nationwide funding program, the sub- categories are broad and far reaching to address the needs of all cities. As such, some sub-categories do not apply to Simi Valley as the services and programs may be provided by other jurisdictions (i.e. education, health care) or private providers. Further, it is noted that the City has not included a project to address broadband infrastructure. In 2019, the City entered into a contract with SiFi Networks to provide a fiber optic connection to all properties in the City.
SiFi will be starting construction of the project in December 2021, providing broadband to all Simi Valley residents and businesses. Therefore, no project has been identified for this sub-category.
T
he attached list of Preliminary P rojects (Attachment C, page 11 ) was also developed taking into consideration the numerous opportunities the public and businesses have had to address the impacts of COVID-19. There have been and continue to be stimulus and support funding available from all levels of government to assist various sectors of the community and businesses including business grants and loans (Federal, State, County, and City), rent and mortgage assistance grants ( Federal, State, County and City), tax deferrals (Federal and State), student loan deferrals (Federal), utility bill assistance and 16 grants (State, County, City), direct-to-consumer stimulus funds (State and Federal), and business tax credits (Federal and State).
With respect to businesses, the Federal government’s two main programs provided significant infusion of funds to Simi Valley businesses. The Paycheck Protection Program (PPP), which provided small businesses with funds to pay costs related to payroll and benefits, mortgages, rent, and utilities, provided over $186 mil lion to over 1,900 Simi Valley businesses. Borrowers of PPP funds can apply with the Small Business Administration for forgiveness of their loans once the funds have been used any time up to the maturity date of the loan. Additionally , the Economic Injury Disaster Loan (EIDL) program provided small businesses with working capital loans of up to $2 million, allowing businesses to access up to $10,000 in an emergency advance within 3 days of applying for the EIDL funds. Although the Small Business Administration has extended the deferment period for EIDL loan repayment until 2022, the emergency advanced funds do not need to be repaid. The EIDL Program provided $122.8 million in loans to Simi Valley businesses, $11.1 million being advanced.
With respect to the County of Ventura’s Business Assistance Grants, at this time the County has completed distribution of over $71 million in grants to small businesses .
Through the first two R ounds, 1,027 Simi Valley businesses applied for and received $5,000 grants ($5,135,000 in total). During Round 3, City staff worked with the County to contact businesses that were eligible to apply but had not done so in order to maximize funding to the community. The County’s final Round, #4, received over 1,400 application and funds are currently being processed.
While there have been several opportunities for businesses to avail themselves of grants and loans through various level s of government, City staff is proposing to establish a business loan pr
ogram to assist in the recovery of businesses through expansion of their services. Established as a revolving loan fund, the program would provide loans for the acquisition of equipment or inventory, working capital, or make modifications to the business premises that will increase business customer base and revenue. Seeding the revolving loan program will result in a self -sustaining funded program that can continue beyond the initial funding through loan repayments and earned interest. The Economic Development Collaborative, based in Camarillo, has extensive experience with revolving loan funds and requires a very short runway to establish such a program. The City would contract with the EDC to manage the business revolving loan program.
Staff did not i nclude funding for a tenant or landlord rental assistance program as the State’s Housing Is Key program continues to provide this assistance. The Housing Is Key program provides up to 100% rental grant assistance to tenants who are income qualified.
Income qualifications are as follows:
Number of Persons in Household Income Limit
1 $62,800
2 $71,800
3 $80,750
17 4 $89,700
5 $96,900
6 $104,100
7 $111,250
8 $118,450
P
ersons applying for funding through Housing Is Key, if income qualified as noted above, would need to submit an application along with one of the following:
• D
eclaration of COVID-19 related financial hardship
• Letter of termination from employer
• Last-received pay stub with employer’s information
• Proof of application for unemployment benefits
• Proof that unemployment benefits have expired
• For self -employed: tax records, statement, or other documentation of loss of employment
Hous
ing Is Key also provides up to 100% of owed rent to landlords who have tenants that owe rent since April 2020. Further, the City has extended its rental relief program for income-eligible tenants through our CDBG -CV program. This program has over $700,000 in available funds; the City has previously issued rental assistance grants of $151,000 in CDBG-CV funds through the first round of applications. The City is currently finalizing our contract with the Economic Development Collaborative to manage the City’s rental assistance program. However, the City is referring inquires to the Housing Is Key program as a first contact for rental assistance.
T
he ARPA Interim Rule provides that certain services are automatically eligible when provided within a Qualified Census Tract (QCT) or to families in a QCT. The QCTs are a common, readily accessible and geographic method to identify portions of communities with a large proportion of low -income residents. In Simi Valley, there is one QCT (QCT 78, see map, Attachment B, page 10), generally bounded by Royal Avenue on the south, First Street to the west, the railroad right -of-way to the north, and Erringer Road to the east. Staff has identified three projects within the Simi Valley QCT ; rehabilitation of the pool and pool house at Rancho Simi Community Park (in partnership with the Park District and School District), a household repairs and assistance program, and a necessary water line replacement project. Projects may also take place to benefit other populations and households, or geographic areas outside the QCT however the City would need to ensure that the pandemic resulted in public health or economic outcomes to the assisted populations, household, or geographic areas being served.
T
he attached list of Preliminary Projects meet the criteria of the ARPA and provide funding to categories that have been impacted by COVID-19 or provide relief due to the impacts of COVID. Because the ARPA funds do not need to be obligated until December 2024, it is recommended that allocations be spread over a multi -year period in order to ensure continued and lasting assistance beyond the reach of the pandemic’s effect. Further, the City’s loss recovery timeframe is through December 31, 2023, which accounts for any 18 lagged effects of the pandemic on revenues. Therefore it is possible that additional losses will be identified in future years. It is anticipated that the use of ARPA funds will be reviewed annually by the City Council to re-evaluate the distribution of the funds and the needs at the time.
Staff requests the City Council review the attached list of Preliminary Projects and provide input regarding the identified projects or for staff to include other projects that may not be contained on the list. Subsequently, staff will refine the list, identify partner agencies to be involved in certain projects, propose an annual distribution schedule, and return to the City Council for further consideration.
Additionally, staff recommends the City Council approve the transfer of $5 million in ARPA funds, representing the revenue loss to the City due to the impacts of COVID, to the General Fund and then allocate the $5 million to address the City’s Streets and Roads fund for arterial street projects.
The following alternatives are available to the City Council:
1. P
rovide input regarding the potential list of ARPA projects and direct staff to return to the City Council for further consideration.
2. A
pprove the transfer of $5 million in ARPA funds to the Streets and Roads fund for arterial street projects.
3. P
rovide other direction.
S
taff recommends Alternative Nos. 1 & 2.
SUGGESTED CITY COUNCIL MOTION
I mov
e to direct staff to return to the City Council with a refined list of ARPA projects based on the Council’s input and approve the transfer of $5 million in ARPA funds to the Streets and Roads fund for arterial street projects.
SUMMARY
T
he American Rescue Plan Act (ARPA) allocated $15,325,294, to the City of Simi Valley, distributed over two years with the first half ($7,662,647) already received and the second half expected in July 2022. The City Council must obligate the funds by December 31, 2024, and fully expend the funds by December 31, 2026. The ARPA has specific categories and uses that the funds can be used in addition to offsetting loses that may have been encountered by the City as a result of the COVID -19 pandemic. Staff ha s developed a list o f Preliminary Projects that meet the criteria of the ARPA and provide funding to categories that have been impacted by COVID-19. 19 Staff requests the City Council review the Preliminary Projects list and provide input regarding the identified projects or for staff to include other projects that may not be contained on the list. Subsequently, staff will refine the list, identify partner agencies to be involved in certain projects, and return to the City Council for further consideration.
Additionally, staff recommends the City Council approve the transfer of $5 million in ARPA funds, representing the revenue loss to the City due to the impacts of COVID, to the General Fund and allocate the $5 million to address the City’s Streets and Roads fund for arterial street projects.
___
_________________________________
Brian P. Gabler
City Manager
INDEX Page
A
ttachment A - ARPA Expenditure Categories ................................ 8 Attachment B - Qualified Census Tract .......................................... 10 Attachment C - Preliminary Projects List ........................................ 11 20 Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
31 Appendix 1: Expenditure Categories
The Expenditure Categories (EC) listed below must be used to categorize each project as noted in Part 2 above. The term “Expenditure Category” refers to the detailed level (e.g., 1.1 COVID-10 Vaccination). When referred to as a category (e.g., EC 1) it includes all Expenditure Categories within that level.
1: Public Health
1.1 COVID-19 Vaccination ^
1.2 COVID-19 Testing ^
1.3 COVID-19 Contact Tracing
1.4 Prevention in Congregate Settings (Nursing Homes, Prisons/Jails, Dense Work Sites, Schools, etc.)*
1.5 Personal Protective Equipment
1.6 Medical Expenses (including Alternative Care Facilities)
1.7 Capital Investments or Physical Plant Changes to Public Facilities that respond to the COVID-19 public health emergency
1.8 Other COVID-19 Public Health Expenses (including Communications, Enforcement, Isolation/Quarantine)
1.9 Payroll Costs for Public Health, Safety, and Other Public Sector Staff Responding to COVID-19
1.10 Mental Health Services*
1.11 Substance Use Services*
1.12 Other Public Health Services
2: Negative Economic Impacts
2.1 Household Assistance: Food Programs* ^
2.2 Household Assistance: Rent, Mortgage, and Utility Aid* ^
2.3 Household Assistance: Cash Transfers* ^
2.4 Household Assistance: Internet Access Programs* ^
2.5 Household Assistance: Eviction Prevention* ^
2.6 Unemployment Benefits or Cash Assistance to Unemployed Workers*
2.7 Job Training Assistance (e.g., Sectoral job-training, Subsidized Employment, Employment Supports or Incentives)* ^
2.8 Contributions to UI Trust Funds
2.9 Small Business Economic Assistance (General)* ^
2.10 Aid to Nonprofit Organizations*
2.11 Aid to Tourism, Travel, or Hospitality
2.12 Aid to Other Impacted Industries
2.13 Other Economic Support* ^
2.14 Rehiring Public Sector Staff
3: Services to Disproportionately Impacted Communities
3.1 Education Assistance: Early Learning* ^
3.2 Education Assistance: Aid to High-Poverty Districts ^
3.3 Education Assistance: Academic Services* ^
3.4 Education Assistance: Social, Emotional, and Mental Health Services* ^
3.5 Education Assistance: Other* ^
3.6 Healthy Childhood Environments: Child Care* ^
3.7 Healthy Childhood Environments: Home Visiting* ^
3.8 Healthy Childhood Environments: Services to Foster Youth or Families Involved in Child Welfare System* ^
ATTACHMENT A
21 Coronavirus State and Local Fiscal Recovery Funds
Compliance and Reporting Guidance
32 3.9 Healthy Childhood Environments: Other* ^
3.10 Housing Support: Affordable Housing* ^
3.11 Housing Support: Services for Unhoused Persons* ^
3.12 Housing Support: Other Housing Assistance* ^
3.13 Social Determinants of Health: Other* ^
3.14 Social Determinants of Health: Community Health Workers or Benefits Navigators* ^
3.15 Social Determinants of Health: Lead Remediation ^
3.16 Social Determinants of Health: Community Violence Interventions* ^ 4: Premium Pay
4.1 Public Sector Employees
4.2 Private Sector: Grants to Other Employers
5: Infrastructure27
5.1 Clean Water: Centralized Wastewater Treatment
5.2 Clean Water: Centralized Wastewater Collection and Conveyance
5.3 Clean Water: Decentralized Wastewater
5.4 Clean Water: Combined Sewer Overflows
5.5 Clean Water: Other Sewer Infrastructure
5.6 Clean Water: Stormwater
5.7 Clean Water: Energy Conservation
5.8 Clean Water: Water Conservation
5.9 Clean Water: Nonpoint Source
5.10 Drinking water: Treatment
5.11 Drinking water: Transmission & Distribution
5.12 Drinking water: Transmission & Distribution: Lead Remediation
5.13 Drinking water: Source
5.14 Drinking water: Storage
5.15 Drinking water: Other water infrastructure
5.16 Broadband: “Last Mile” projects
5.17 Broadband: Other projects
6: Revenue Replacement
6.1 Provision of Government Services
7: Administrative
7.1 Administrative Expenses
7.2 Evaluation and Data Analysis
7.3 Transfers to Other Units of Government
7.4 Transfers to Non-entitlement Units (States and territories only) *Denotes areas where recipients must identify the amount of the total funds that are allocated to evidence-based interventions (see Use of Evidence section above for details) ^Denotes areas where recipients must report on whether projects are primarily serving disadvantaged communities (see Project Demographic Distribution section above for details) 27 Definitions for water and sewer Expenditure Categories can be found in the EPA’s handbooks. For “clean water” expenditure category definitions, please see:
https://www.epa.gov/sites/production/files/2018-03/documents/cwdefinitions.pdf. For “drinking water” expenditure category definitions, please see: https://www.epa.gov/dwsrf/drinking-water-state- revolving-fund-national-information-management-system-reports. 22 SIMI VALLEY QUALIFIED CENSUS TRACT #78 (QCT)
ATTACHMENT B
23 Item # Proposed Project Project Description Project Cost ARPA Primary Category ARPA Sub-Category Possible
Recipients
1 Temporary Staffing Management, temporary staffing, and oversight of the City's far- reaching programs to be provided with ARPA funding. $400,000 Administrative Administrative Expenses City 2 Storm Drain Repair - Easy Street
Funding for the repair of 36-inch stormwater infrastructure under Easy Street east of Madera Road. Storm drain flows into Arroyo Simi and is ina state of failure and undermining the embankment of the Arroyo Simi. Project being done in cooperation with Ventura County Watershed District.
$300,000 Infrastructure Clean Water: Stormwater City
3 Water Delivery Resiliency
Acquistion and installation of emergency generators at critical pump stations and water tank sites to ensure water delivery during natural disasters and emergencies.
$1,000,000 Infrastructure Drinking Water:
Transmission & Distribution City
4 Water Delivery Resiliency Replacement of Pump Stations 2 to replace and update outdated and failing equipment. $850,000 Infrastructure Drinking Water:
Transmission & Distribution City
5 Water Delivery Resiliency
Upgrade piping and make modifications to mitigate seismic issues at Stearns Water Tank #1 to ensure water delivery and prevent failure during a seismic event.
$650,000 Infrastructure Drinking Water:
Transmission & Distribution City
6 Cybersecurity for Waterworks
District #8 and Santation District
Facilities
Acquisition and installation of upgraded cybersecurity for the City's water and sewer systems to ensure continued firewalls and security of computer controlled systems. Acquisition and installation of security monitoring equipment at water tank sites and other water/sewer insfrstructure.
$500,000 Infrastructure
Drinking Water: Other
Water Infrastructure &
Clean Water: Other Sewer
Infrastructure (Fed Reg
26803)
City
7 Sanitary Sewer Line Rehabilitation
Funding for the relining or replacement of aging and failing sewer lines to ensure containment and delivery of effluent to the City's wastewater treatment plant and for the protection of the environment.
$2,000,000 Infrastructure
Clean Water: Centralized
Wastewater Collection and
Conveyance
City
8 Dewatering Well Rehabilitiation
Rehabilitiation of the City's five dewatering wells that operate 24/7 to remove excess subsurface water. Failure of such wells will negatively affect adjacent neighborhoods, public infrastructure, and businesses.
$600,000 Infrastructure Clean Water: Stormwater City
ATTACHMENT C
24 9 Storm Drain Repair - Los Angeles
Avenue
Repair of damaged storm drain at the intersection of Sequoia Avenue and Los Angeles Avenue $200,000 Infrastructure Clean Water: Stormwater City 10 Storm Drain Repair - Mason Court Repair of damaged storm drain line at the terminus of Mason Court $150,000 Infrastructure Clean Water: Stormwater City 11 Water Line Replacement - Roan
Street
Replacement of 740 feet of 8-inch water line servicing Roan Street, located in Qualified Census Tract 78. $300,000 Infrastructure Drinking Water:
Transmission & Distribution City
12 Business Revolving Loan Fund
Create a Business Revolving Loan program that would fund loans to businesses for the acquisition of equipment or inventory, or make modifications to the business premises that will increase business customer base and revenue.
$1,000,000 Negative Economic
Impacts
Small Business Economic
Assistance
Small Businesses
in Simi Valley (
EDC Likely
Vendor)
13 Cultural Arts Center - Non Profit
Support
Non-profit performing arts organizations were negatively impacted by the pandemic due to the inabilty to fund raise or have performances, creating zero cash flow. As a result, such non-profits have reduce revenue to finance productions. Funding would provide grants to subsidize non-profit performing arts organizations to stage productions at the CAC.
$200,000 Negative Economic
Impacts
Small Business Economic
Assistance & Aid to
NonProfit Organizations
Simi Valley
Cultural Arts
Center and Arts
Organizations
14 Household Home Repair and
Assistance
Provide funding for home repairs and home weatherization projects. Eligible participants are low and moderate income homeowners or homeowners that experienced unemployment
(Citywide) or to any homeowner within the City's Qualified Census Tract (Tract 78).
$500,000 Negative Economic
Impacts
Household Assistance (Fed.
Reg. 26794)
Simi Valley Low
and Moderate
Income
Homeowners
(Vendor TBD)
15 Reinforcement to Food Pantries
serving Simi Valley
Funding to assist, expand, and supplement local food pantries; funds for acquisition of food for the City's vulnerable population and required equipment for food storage.
$200,000 Negative Economic
Impacts
Household Assistance: Food
Programs
Samaritan Center,
SEWA
International,
Free Clinic of Simi
Valley
16 Vulnerable Population Case
Management
Expansion of supportive and case management services to the City's unhoused population including housing search and placement. $300,000 Negative Economic Impacts
Housing Support: Services
for Unhoused Persons
Unhoused Simi
Valley Population
(Vendor TBD)
25 17 Vulnerable Population Housing
Creation of a fund to provide first/last rental payments, security deposits to establish housing and provision of emergency housing vouchers.
$300,000
Negative Economic
Impacts & Services to
Disproportionately
Impacted Communities
Household Assistance:
Eviction Prevention &
Housing Support: Services
for Unhoused Persons
Unhoused and
Vulnerable Simi
Valley Population
(Vendor TBD)
18 Premium Pay for Essential Workers Provision of premium pay for eleigible City essential workers in conformance with ARPA guidelines. $400,000 Premium Pay Public Sector Employees City 19 Behavioral Health Care
Funds to support the Free Clinic of Simi Valley's open-air counseling space for clients dealing with trauma and undue stress caused by COVID-19 pandemic and long-term child play therapy.
$100,000 Public Health Medical Expenses & Mental
Health Services
Free Clinic of Simi
Valley
20 Reimbursement of City Costs
Reimbursement of City expenses related to the enforcement of State and County Health Orders, ensuring the public is kept iinformed of the COVID-19 virus, the services available to the public and businesses, and acquistion of PPE for the City's workforce. $400,000 Public Health Payroll Costs Responding to
COVID-19 City
21 Acquistion of Air Filters
Funding would provide for the acquistion of specialized (MERC) filters for the City's HVAC systems to prevent the spread of COVID-
19. City currently uses such filters; funding would provide several years supply ($18,000 annually).
$90,000 Public Health Physical Plant Changes to
Public Facilities City
22 PPE Acquisition Acquisition of minimum one-year supply of PPE to re-stock the City's inventory. $150,000 Public Health Personal Protective Equipment City
23 Senior Center Food Storage
Equipment
Replacement of a large commercial refrigeration equipment to ensure food prepared for this vulnerable population is safe and replacement of tables damaged due to increased use during the food distribution and delivery program offerred during the pandemic.
$15,000 Public Health
Capital Investments that
Respond to the COVID-19
Public Health Emergency
Simi Valley Senior
Center
24 Streets and Roads
Offsetting $5 million in revenue losses due to COVID-19, allowing funding to be used for general City purposes. Funds are proposed to be programmed toward streets & roads projects on City arterial streets.
$5,000,000 Revenue Replacement Provision of Government
Services City
26 25
Rehabilitation of Pool and Pool
House at Rancho Simi Community
Park
Funding participation in a joint project among RSRPD and SVUSD for the rehabilitation of the pool and pool house located in Qualified Census Tract 78 and preserving an amentity for the community. $1,000,000
Services to
Disproportionately
Impacted Communities
Healthy Childhood
Environments: Other
Rancho Simi
Recreation & Park
District
26 Child Care Assistance Funding to subsidize child care for families of low-income and/or economically disadvantaged $150,000
Services to
Disproportionately
Impacted Communities
Healthy Childhood
Environments: Child Care
Boys & Girls Club;
YMCA
27 Domestic Violence Safe House Funding to support the Interface Children & Family Services safe house in Simi Valley $50,000
Services to
Disproportionately
Impacted Communities
Social Determinants of
Health: Community
Violence Interventions
Interface Children
& Family Services
28 Lead Paint Testing and Abatement Funding for the testing and abatement of lead paint in residential units in Simi Valley. $150,000
Services to
Disproportionately
Impacted Communities
Social Determinants of
Health: Lead Remediation City (Vendor TBD)
American Rescue Plan Act Funding $15,325,294
Proposed Project Total $16,955,000
Variance -$1,629,706
27