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File #: 21-588 MEETING DATE: 9f712021
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Oliver Chi, City Manager
Subject:
American Rescue Plan Act (ARPA) Spending Plan Review and Allocation
Statement of Issue:
In March 2021 , the American Rescue Plan Act (ARPA) of 2021 was signed into law. That particular
piece of Federal legislation included state and local coronavirus recovery dollars, which will provide
Huntington Beach with $29.6 million in stimulus funding to offset fiscal impacts experienced from the
COVID-19 pandemic.
Based on ARPA funding guidelines, the City will have broad latitude in determining how to expend
these Federal funds, and to help determine how to prioritize those expenditures, the City Council
established an ARPA Fund Ad-hoc Subcommittee on June 1, 2021. That committee, consisting of
Mayor Carr, Mayor Pro Tern Delgleize, and Council Member Moser, has met on several occasions to
review and discuss possible uses of ARPA dollars, in an effort to establish a recommended
preliminary prioritization of how recovery dollars could be expended.
Of note, ARPA requires that the City develop this general, nonbinding prioritization of expenditures to
be incurred with Federal stimulus dollars. Further, pursuant to the ARPA guidelines, the $29.6 million
in funding must be used on eligible costs and encumbered no later than December 31, 2024.
Financial Impact:
There is no financial impact associated with approving a preliminary prioritization of possible
expenditures utilizing ARPA funds. The City Council's ultimate decision regarding the use of the
$29.6 million must be made by December 31 , 2024, and will be appropriated as various projects are
brought forward for formal consideration. If approved, the proposed ARPA funding recommendations
are nonbinding, and can be adjusted and modified to meet evolving community needs by the City
Council.
Recommended Action:
Approve the proposed ARPA funds spending plan for Huntington Beach, and direct staff to prepare
the necessary budget appropriate documents to facilitate the adopted program.
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File #: 21-588 MEETING DATE: 9/7/2021
Alternative Action(s):
N/A
Analysis:
ARPA Background
On March 11, 2021, President Biden signed the American Rescue Plan Act (ARPA) of 2021 into law,
which allocated $1 .9 trillion in economic recovery funding for families, businesses, schools, and
governments impacted by the COVID-19 public health crisis. Of that total amount allocated, $350
billion was reserved for state, local, territorial and tribal governments, in an effort to support pandemic
response efforts, bring back jobs, and lay the groundwork for a strong and equitable recovery.
Pursuant to that legislation, the City is scheduled to receive $29.6 million ($29,606,925) in funding,
50% of which was received on May 16, 2021 as the first installment. The second and final
installment is expected to be received by the City in 2022. These funds must be used on eligible
costs no later than December 31, 2024.
Eligible Use of Funding
While the City has broad flexibility to decide how best to use the funding to meet community needs,
the ARPA legislation specifically identified the following as ineligible uses:
• To offset a reduction in tax revenues resulting from a change in law, regulation, or
administrative interpretation
• Deposits into a pension fund for the purpose of reducing UAL (unfunded accrued liabilities)
• Funding debt service
• Funding legal settlements, judgements, or consent decree
• Deposits into a rainy-day fund or financial reserves
Given these ineligible use restrictions, preliminary ideas to place a portion of our ARPA money into a
savings account cannot be instituted. However, pursuant to the program guidelines, the City may
use these funds to do the following:
• Replace lost public sector revenues, using this funding to provide government services to the
extent of the reduction in revenue experienced during the pandemic
• Support public health expenditures, by funding COVID-19 mitigation efforts, medical
expenses, behavioral healthcare, and certain public health and safety staff
• Address negative economic impacts caused by the public health emergency, including
economic harms to workers, households, small businesses, impacted industries, and the
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public sector
• Provide premium pay for essential workers, offering additional support to those who have
borne and will bear the greatest health risks during this public health crisis
• Invest in water, sewer, and broadband infrastructure, making necessary investments to
improve access to clean drinking water, support vital wastewater and stormwater
infrastructure, and to expand access to broadband internet
Utilizing a "Public Revenue Loss Calculator' developed by the League of California Cities and
California Society of Municipal Finance Officers (CSMFO), the City has identified a $42.5 million loss
in revenues when compared with our pre-COVID-19 fiscal condition. This means that the City can
use the entire $29.6 million that we are set to receive in ARPA funding through the "Replace Lost
Revenues" category and that the City has wide latitude regarding how to deploy the funds based on
City Council direction.
Process & Discussion
To develop a proposed ARPA spending plan, the City Council established a three-person City Council
Ad-hoc Subcommittee in June 2021. The ARPA subcommittee subsequently met on July 26 and
August 5, 2021, to develop and review a list of potential projects that either addressed immediate,
current needs of the City, or constituted a transformative, "Plan for the Future" project with long-term
positive community impacts. Staff also engaged different departments to gather information and
input on potential projects / programs for further funding consideration.
In developing the proposed Allocation Plan, Staff and the Ad-hoc Subcommittee worked to prioritize
that projects aligned with the City's strategic plan and policy priority areas, which are 1) Community
Engagement, 2) Homelessness Response, 3) Economic Development & Housing, 4) Infrastructure &
Parks, and 5) COVID-19 Response. Additionally, the Committee ensured that proposed projects
reflected the community's needs and interests, were feasible within the ARPA funding guidelines /
timeframes, and advanced the City's overall goals. Projects / programs that would incur significant
ongoing financial commitments were also avoided, given the one-time nature of the funds available.
Utilizing that assessment framework, the Subcommittee identified the a series of initiatives for
recommended funding that either address current needs, or advanced initiatives that help plan for
significant future community improvements. A list of the potential projects associated with the
proposed ARPA funding allocation plan is outlined in the table below.
Of note, the projects and costs highlighted below represent rough estimates, and once the priority
projects are finalized by the Council, staff will develop and present more concreate budget allocation
plans as each initiative is matured. Further, the proposed funding recommendations are nonbinding,
and can be adjusted and modified to meet evolving community needs by the City Council.
ddressing Current Needs IProject Type Estimated Cost
Downtown Revitalization Improvements Planning S 1,750,000
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Police Technology Infrastructure Improvement Capital $ 3,000,000
Parks Upgrade - Carr Park Planning $ 326,925
Oak View Rising Program Implementation Planning + Capital $ 2,000,000
Public Safety Equipment (USAR Truck, Rescue Boat) Capital S 2,000,000
Senior On-To-Go Transportation Improvement Capital $ 280,000
Talbert Channel Multi-Use Recreation Trail Project IPlanning $ 300,000
CURRENT NEEDS FUNDING ALLOCATION $ 9,656,92
Planning For The Future Project Type Estimated Cost
Comprehensive Homeless Response Plan Planning + Capital S 2,500,000
Implementation
DBFOM Major City Facility Upgrade Project Planning Planning S 3,200,000
Permanent Supportive Housing Capital S 2,500,000
Grown HB Fund - NDC 3:1 Match Capital S 2,000,000
HB Community Impact Loan Fund Capital $ 1,000,000
Economic Development Fund Capital $ 2,000,000
Broadband Infrastructure Improvements Capital $ 1,000,000
World Skate Skatepark Development Planning Capital S 750,000
Mobility & Sustainability Capital Improvements Planning + Capital $ 2,000,000
Joint Youth Training Center for Police/ Fire Capital $ 2,000,000
Arterial Beautification ICapital S 1,000,000
PLANNING FOR THE FUTURE FUNDING ALLOCATION $ 19,950,000
GRAND TOTAL $ 29,606,925
Additional preliminary details related to each of the proposed initiatives recommended for ARPA
funding are outlined below.
Policy Direction #1: Address Present Needs
1. Downtown Revitalization Improvements - $1,750,000
To develop final plans for reconfiguring the broader downtown resort district, including
enhancements to Main Street, while investing in improvements to enhance connectivity and
revitalize businesses and activities.
2. Police Technology Infrastructure Improvement - $3,000,000
To upgrade HBPD's Computer Aided Dispatch (CAD) & Records Management Systems (RMS)
technology infrastructure for police department response.
3. Carr Park Upgrades - $326,925
Fund development of final plans for Carr Park improvements, to include addressing
accessibility issues throughout the park, improved access around the fishing pond, and new
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themed play equipment.
4. Oak View Rising Program Implementation - 52,0007000
As part of the City's "Oak View Rising" efforts, to fund implementation efforts associated with
livability / landscape improvements, parking impact mitigation, community center facility
planning, and youth programming efforts.
5. Public Safety Equipment - S2,000,000
To purchase an Urban Search and Rescue (USAR) truck, one (1) Lifeguard Rescue Vessel,
and one (1) new Dive Team vehicle for the HBFD.
6. Senior On-To-Go Transportation Improvement - $280,000
To replace four (4) old Voyager Commercial Side-Entry vans for the Seniors-on-the-Go
Transportation Program, which provides free, accessible door-to-door rides to HB residents
60+ years to essential and life enriching services.
7. Talbert Channel Multi-use Recreation Trail Project - $300,000
The Talbert Channel, managed by the OC Flood Control District, accepts runoff from HB and
nearby cities before draining into the ocean. The Channel presents a possible recreational
opportunity, bypassing and connecting schools and public areas before reaching the HB
Wetlands and State Beach off PCH. This funding will facilitate planning efforts to develop a
possible recreational path on the existing levy systems maintenance roads, in conjunction with
the OC Flood Control District.
Policy Direction #2: Plan for the Future
1. Comprehensive Homeless Response Plan Implementation - $2,500,000
To utilize the City's existing navigation center site to develop a first of its kind healing center
campus facility that embeds medical, behavioral health, recuperative care, and respite
housing, options that integrate into broader Be Well continuum of mental health / substance
abuse care.
2. DBFOM Major City Facility Upgrade Project - $3,200:000
With the Police Department, Lake Fire Station, and Civic Center all in need of major facility
repairs, this effort will fund the preliminary planning work associated with our proposed
DBFOM major City facility upgrade project. Through this initial effort, the City will be able to
fund site assessment work, facility master planning, and conceptual design efforts.
3. Permanent Supporting Housing Project - $2,500,000
In order to make a significant difference in homelessness, the City needs additional
Permanent Supportive Housing (PSH) units. This funding will facilitate the production of
additional PSH units in the City.
4. Grown HB Fund - $2.000.000
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To create a City loan program to be administered through the National Development Council
(NDC). NDC will provide a 1:3 match based on the City's initial investment, and funding can
be used to support existing mid-sized qualified businesses as they look to expand within the
City.
5. HB Community Impact Loan Fund - 51,000,000
Through the NDC, this effort would create a HB Community Impact Loan Fund, which would
provide loan funding for start-ups and smaller, less established businesses where borrowers
are making 80% of the Area Median Income (AMI) or less.
6. Economic Development Fund - S2,000,000
With the elimination of redevelopment agencies, establishing this fund would help support
local business expansion efforts, with a particular focus on environmental mitigation, and
addressing possible Measure C related issues.
7. Broadband Infrastructure Improvements - S1,000,000
The City is currently conducting an overall Citywide broadband infrastructure planning effort.
This funding would be set-aside for use towards infrastructure implementation to improve
broadband access in City locations impacted by the digital divide.
8. World Skate Skatepark Development Planning - 5750,000
To facilitate City skatepark planning efforts, including the possibility of bringing Olympics LA
2028 action sports to HB (for skateboarding, surfing, and BMX), this funding would be set-
aside to ascertain the feasibility of developing local Olympic-quality recreational facilities.
9. Mobility & Sustainability Capital Improvements - $2,000,000
To fund the development of mobility capital improvement programs to enhance pedestrian,
bicycle and school safety Citywide.
10.Joint Youth Training Center for Police & Fire - 52,000,000
This funding would be allocated to build a new Joint Youth Training Center on the CNET
training ground with new Fire and Police equipment to develop a two-track program that
provides vocational and educational pathways for local students and underserved youth.
11.Arterial Beautification - S1.000,000
This project would set-aside funding to implement enhanced medians and landscaping along
arterial street corridors in the City.
Click or tap here to enter text.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Organizational Fiscal Stability
COVID-19 Response
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Attachment(§):
1 . PowerPoint Presentation
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City of Huntington Beach
American Rescue Plan Act (ARPA)
Spending Plan Review & Allocation
City Council Meeting
September 7, 2021
Today's Discussion
• ARPA Program Overview
• HB ARPA Funding Overview
• Proposed Projects & ARPA Funding Allocation Plan
L
September 2021 City Council Meeting 2
42�
NUNIIN41pN Q�[N
ARPA Program Overview
Background — Federal Response to COVID -19
• Massive Federal stimulus measures have been enacted to combat
COVID-19 impacts
• March 27, 2020 - CARES Act authorized $2 trillion in Federal support
• December 27, 2020 - CRRSA authorized $907 billion in pandemic relief assistance
• American Rescue Plan Act of 2021 (ARPA) — enacted March 11 , 2021
• $1 .9 trillion pandemic relief bill
• Authorized $350 billion in state and local government fiscal assistance
• Through the ARPA bill, Huntington Beach is slated to receive $29.6
million in funding
September 2021 City Council Meeting 4
i.
INMIIMLIUM NKII
Business / Household ARPA Assistance Also Available
Administered by Federal Agencies
Small Business Assistance Aid to Households
• Restaurant Revitalization Fund Grants $25B Child Tax Credit Expansion
• Shuttered Venue Grants $16. 125B Earned Income Tax Credit (EITC) Expansion
• Paycheck Protection Program $7.25B Child Care & Dependent Tax Credit Expansion
• Economic Injury Disaster Loan $15B Increased Affordable Care Act (ACA) Subsidies
• Airport Concessions $800M Nutrition Assistance
• Emergency Broadband Benefit Program
• FEMA Funeral Assistance
September 2021 City Council Meeting 5
�.
HB ARPA Funding Overview
40
ARPA State and Local Fiscal Recovery Fund
Direct Aid Allocation to HB
• Local Fiscal Assistance : $29,606,925 in two "tranches77
• Tranche 1 : 50% received on May 16, 2021
• Tranche 2: 50% delivered in May 2022
• Period of Performance: 3/3/2021 - 12/31 /2024 (must be fully
expended by 12/31/2026)
• Required to provide "periodic reports" that include a detailed
accounting of the use of funds
tA September 2021 City Council Meeting 7
NLIUN NMN
ARPA Funding : Ineligible Uses
• To offset a reduction in tax revenues resulting from a change in law,
regulation , or administrative interpretation
• Deposits into a pension fund for the purpose of reducing UAL
• Funding debt service
• Funding legal settlements, judgements or consent decree
• Deposits into a rainy-day fund or financial reserves
September
IRON IINOIIn 4NN
ARPA Funding : Eligible Uses
1 . Respond to COVID-19 or its Economic Impacts
2. Provide Premium Pay to Eligible Essential Workers
3. Invest in Water, Sewer, Stormwater and Broadband Infrastructure
• Additional funding may be available from the State/Federal Governments
4. Replace Revenue lost due to COVID-19
• Revenue shortfalls across general revenue streams as defined by the US Dept of
Treasury for provision of Government Services
• Projected Lost Revenue Amount for HB = $42.5 million (from January 2020
through December 2023)
The City has wide latitude regarding how to deploy the funds
based on the City Council direction.
September1
Considerations n CO im
• Align with the City's strategic plan and policy priority areas
• Reflect the community's needs and interests, are feasible within the ARPA funding
guidelines / timeframes, and advance the City's overall goals
• Avoid using funds for projects that incur ongoing financial commitments
• Consider what may already be funded through other resources
• Prioritizing Projects that
(1 ) address immediate, current needs of the City and /or
(2) constitute a transformative, "Plan for the Future" project with long-term, positive
community impacts.
FSeptember121 City Council Meeting 10
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437
I.
NUN11NGlON �E ACM
Use of ARPA Funds
Policy Direction for ARPA Funding Spending Plan
• Downtown Revitalization Improvements
' • • �' Police Technology Improvement (CAD & RMS)
Public Safety Equipment
Prerl? • Senior on the Go Transportation — Replace four (4) vans
• Park Upgrades (Carr Park)
• Oak View Community Center Rehabilitation
• Talbert Channel Multi-use Recreation Trail Project
Comprehensive Homelessness Response
• DBFOM Major City Facility Upgrade Project Planning
• Permanent Supportive Housing
• Grow HB Fund — NDC 3:1 Match
Plan for • HB Community Impact Loan Fund
• Economic Development Fund
Future • Broadband Infrastructure Improvement
• World Skate Skatepark Development Planning
• Mobility & Sustainability Capital Improvements
• Joint Youth Training Facility for Police/Fire
• Arterial Beautification
I' September 1Council
IAINIIN41(1M •1•l 11
Proposed Projects : Addressing Present Needs
Potential Projects Project Description
1 Downtown Revitalization Planning $1 ,750,000 To develop final plans for reconfiguring the broader
Improvements downtown resort district, including enhancements to
Main Street, while investing in improvements to
enhance connectivity and revitalize businesses and
activities
2 Police Technology Capital $3,000,000 To upgrade HBPD's Computer Aided Dispatch (CAD)
Infrastructure Improvement & Records Management Systems (RMS) technology
infrastructure for police department response.
3 Carr Park Upgrades Planning $326,925 Fund development of final plans for Carr Park
improvements, to include addressing accessibility
issues throughout the park, improved access around
the fishing pond, and new themed play equipment.
4 Oak View Rising Program Planning + $2,000,000 As part of the City's "Oak View Rising" efforts, to
Implementation Capital fund implementation efforts associated with livability
/ landscape improvements, parking impact
mitigation, community center facility planning, and
youth programming efforts.
440
Proposed Projects : Addressing Present Needs
Potential.5 Public Safety Equipment Capital $2,000,000 To purchase an Urban Search and Rescue (USAR)
truck. one (1 ) Lifeguard Rescue Vessel, and one (1 )
new Dive Team vehicle for the HBFD.
6 Senior On-To-Go Capital $280,000 To replace four (4) old Voyager Commercial Side-
Transportation Improvement Entry vans for the Seniors-on-the-Go Transportation
Program, which provides free, accessible door-to-door
rides to HB residents 60+ years to essential and life
enriching services.
7 Talbert Channel Multi-use Planning $300,000 The Talbert Channel, managed by the OC Flood
Recreation Trail Project Control District, accepts runoff from HB and nearby
cities before draining into the ocean. The Channel
presents a possible recreational opportunity,
bypassing and connecting schools and public areas
before reaching the HB Wetlands and State Beach off
PCH. This funding will facilitate planning efforts to
develop a possible recreational path on the existing
levy systems maintenance roads.
CURRENT NEEDS FUNDING ALLOCATION TOTAL $9,656,925
4s
Proposed Projects : Planning for the Future
Potential Projects Description
1 Comprehensive Homeless Planning + $2.500,000 To utilize the City's existing navigation center site to develop
Response Plan Capital a first of its kind healing center campus facility that embeds
Implementation medical, behavioral health, recuperative care, and respite
housing, options that integrate into broader Be Well
continuum of mental health / substance abuse care.
2 DBFOM Major City Facility Planning $3,200,000 With the Police Department, Lake Fire Station, and Civic
Upgrade Project Center all in need of major facility repairs, this effort will fund
the preliminary planning work associated with our proposed
DBFOM (Design-Build-Finance-Operate-Maintain) major City
facility upgrade project. The City will be able to fund site
assessment work, facility master planning, and conceptual
design efforts.
3 Permanent Supportive Capital $2,500,000 In order to make a significant difference in homelessness,
Housing the City needs additional Permanent Supportive Housing
(PSH) units. This funding will facilitate the production of
additional PSH units in the City.
44_
Proposed Projects : Planning for the Future
0 Potential Projects Description
4 Grown HB Fund — NDC 3:1 Capital $2,000,000 To create a City loan program to be administered through the
Match National Development Council (NDC). NDC will provide a
1 :3 match based on the City's initial investment, and funding
can be used to support existing mid-sized qualified
businesses as they look to expand within the City
5 HB Community Impact Loan Capital $1 .000,000 Through the NDC, this effort would create a HB Community
Fund Impact Loan Fund, which would provide loan funding for
start-ups and smaller, less established businesses where
borrowers are making 80% of the Area Median Income (AMI)
or less.
6 Economic Development Capital $2,000,000 With the elimination of redevelopment agencies, establishing
Fund this fund would help support local business expansion
efforts, with a particular focus on environmental mitigation,
and addressing possible Measure C related issues.
aa,
Proposed Projects : Planning for the Future
Potential Projects Description
7 Broadband Infrastructure Capital $1,000,000 The City is currently conducting an overall Citywide
Improvements broadband infrastructure planning effort. This funding
would be set-aside for use towards infrastructure
implementation to improve broadband access in City
locations impacted by the digital divide.
8 World Skate Skatepark Capital $750,000 To facilitate City skatepark planning efforts, including
Development Planning the possibility of bringing Olympics LA 2028 action
sports to HB (for skateboarding, surfing, and BMX),
this funding would be set-aside to ascertain the
feasibility of developing local Olympic-quality
recreational facilities.
9 Mobility & Sustainability Planning $2,000,000 To fund the development of mobility capital
Capital Improvements + Capital improvement programs to enhance pedestrian, bicycle
and school safety Citywide.
444
Proposed Projects : Planning for the Future
ProjectsPotential . .
to Joint Youth Training Center Capital $2,000,000 This funding would be allocated to build a new Joint
for Fire and Police Youth Training Center on the CNET training ground
with new Fire and Police equipment to develop a
two-track program that provides vocational and
educational pathways for local students and
underserved youth.
11 Arterial Beautification Capital $1 ,000,000 This project would set-aside funding to implement
enhanced medians and landscaping along arterial
street corridors in the City.
PLANNING FOR THE FUTURE $19 950,000
FUNDING ALLOCATION TOTAL
GRAND TOTAL $29,606,925
Proposed 18 Projects by Community Needs
Business Investment & Community • •
Public Safety
Economic DevelopmentCapital
Address • Downtown Revitalization • Oak View Rising Program • Police Technology
Present Improvements Implementation Infrastructure Improvement
Needs • Senior on-the-Go transportation (CAD and RMS)
improvement • Public Safety Equipment (USAR
• Carr Park Upgrades truck, Lifeguard Rescue Vessel,
• Grown HB Fund (NDC 3:1 Match) • Talbert Channel Recreational Trail and Dive Team vehicle)
Plan for • HB Community Impact Loan
the Fund
Future • Economic Development Fund • Comprehensive Homeless • DBFOM Major City Facility
• World Skate Skatepark Response Plan Implementation Upgrade Project
Development Planning for LA • Permanent Supportive Housing • Joint Youth Training Center for
2028 Olympics & Beyond • Broadband Infrastructure Fire & Police
Improvements • Mobility & Sustainability
• Arterial Beautification Capital Improvements
44,,
RECOMMENDATIONS
• Approve the proposed ARPA funds spending plan for
Huntington Beach , and
• Direct staff to prepare the necessary budget appropriation
documents to facilitate the adopted program .
September 2021 City Council Meeting 20
Ll
9/7/2021
FIN
City of Huntington Beach
American Rescue Plan Act (ARPA)
Spending Plan Review & Allocation
City Council Meeting
September 7, 2021
Today's Discussion
• ARPA Program Overview
• HB ARPA Funding Overview
• Proposed Projects & ARPA Funding Allocation Plan
SUPPLEMENTAL
COMMUNICATION
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1
Ago% Mal N04 39 (a I SSFs
7 2021
i.
ARPA Program Overview
Background — Federal Response to COVID-19
• Massive Federal stimulus measures have been enacted to combat
COVID-19 impacts
• March 27, 2020-CARES Act authorized$2 trillion in Federal support
• December 27. 2020- CRRSA authorized S907 billion in pandemic relief assistance
American Rescue Plan Act of 2021 (ARPA) — enacted March 11, 2021
S 1 9 trillion pandemic relief bill
• Authorized S350 billion in state and local government fiscal assistance
Through the ARPA bill, Huntington Beach is slated to receive $29.6
million in funding
i l
2
Business / Household ARPA Assistance Also Available
Administered by Federal Agencies
Small Business Assistance Aid to Households
• Restaurant Revitalization Fund Grants$25B • Child Tax Credit Expansion
Shuttered Venue Grants $16 125B • Earned Income Tax Credit (EITC) Expansion
Paycheck Protection Program $7 25B • Child Care & Dependent Tax Credit Expansion
Economic Injury Disaster Loan $15B • Increased Affordable Care Act (ACA) Subsidies
Airport Concessions $800M • Nutrition Assistance
• Emergency Broadband Benefit Program
• FEMA Funeral Assistance
�eptember 2021 City Council Meeting
=-J
i
HB ARPA Funding Overview
5
9/7/2021
ARPA State and Local Fiscal Recovery Fund
Direct Aid Allocation to HB
• Local Fiscal Assistance $29,606,925 in two tranches
• Tranche 1: 50% received on May 16, 2021
• Tranche Z 50% delivered in May 2022
• Period of Performance: 3/3/2021- 12/31/2024 (must be fully
expended by 12/31/2026)
• Required to provide "periodic reports" that include a detailed
accounting of the use of funds
September 2021 City Council Meeting
ARPA Funding: Ineligible Uses
• To offset a reduction in tax revenues resulting from a change in law,
regulation. or administrative interpretation
• Deposits into a pension fund for the purpose of reducing UAL
• Funding debt service
• Funding legal settlements. judgements or consent decree
• Deposits into a rainy-day fund or financial reserves
4
9/7/2021
ARPA Funding: Eligible Uses
1. Respond to COVID-19 or its Economic Impacts
2. Provide Premium Pay to Eligible Essential Workers
3. Invest in Water, Sewer, Stormwater and Broadband Infrastructure
• Additional funding may be available from the State/Federal Governments
4. Replace Revenue lost due to COVID-19
Revenue shortfalls across general revenue streams as defined by the US Dept of
Treasury for provision of Government Services
Projected Lost Revenue Amount for HB = $42 5 million (from January 2020
through December 2023)
y The City has wide latitude regarding how to deploy the funds
based on the City Council direction.
ff:. ,
21 City Council meeting 9
Considerations n - CO d�
• Align with the City s strategic plan and policy priority areas
• Reflect the community's needs and interests. are feasible within the ARPA funding
guidelines /timeframes. and advance the City's overall goals
• Avoid using funds for projects that incur ongoing financial commitments
• Consider what may already be funded through other resources
• Prioritizing Projects that
(1) address immediate. current needs of the City and/or
(2) constitute a transformative. "Plan for the Future" project with long-term, positive
community impacts
3
9/7/2021
I.
Use of ARPA Funds
Policy Direction for ARPA Funding Spending Plan
• Downtown Revitalization Improvements
Respond
• • • to Police Technology Improvement(CAD & RMS)
Public Safety Equipment
Present
• Senior on the Go Transportation-Replace four(4)vans
Nee• Park Upgrades(Carr Park)
• Oak View Community Center Rehabilitation
• Talbert Channel Mutti-use Recreation Trail Project
• Comprehensive Homelessness Response
• DBFOM Major City Facility Upgrade Project Planning
• Permanent Supportive Housing
• Grow HB Fund-NDC 3.1 Match
Plan for AB Community Impact Loan Fund
• Economic Development Fund
Future • Broadband Infrastructure Improvement
• World Skate Skatepark Development Planning
• Mobility&Sustainability,Capital Improvements
• Joint Youth Training Facility for Police/Fire
• Arterial Beautification
6
9/7/2021
Proposed Projects: Addressing Present Needs
Potential Projects Project Estimated Project Description
T,re Cost
f Downtown Revitalization Planning $1.750 000 To develop final plans for reconfiguring the broader
Improvements downtown resort district.including enhancements to
Main Street while investing in improvements to
enhance connectivity and revitalize businesses and
activities
2 Police Technology Capital 53 000 000 To upgrade HBPD's Computer Aided Dispatch(CAD)
Infrastructure Improvement 8 Records Management Systems 1RMSI technology
infrastructure for police department response
3 Carr Park Upgrades Planning $326 925 Fund development of final plans for Carr Park
improvements to include addressing accessibility
issues throughout the park improved access around
the fishing pond. and new themed play equipment.
4 Oak View Rising Program Planning . $2.000.000 As part of the City s-Oak View Rising-efforts.to
Implementation Capital fund implementation efforts associated with livability
r landscape improvements.parking impact
mitigation community center faality planning and
youth programming efforts
Proposed Projects: Addressing Present Needs
Potential Projects Project Eslimater! Project Description
Type Cost
5 Public Safety Equipment Capital $2.000.000 To purchase an Urban Search and Rescue(USAR)
truck.one(I I Lifeguard Rescue Vessel,and one 11)
new Dive Team vehicle for the HBFD
6 Senior On-To-Go Capital $280,000 To replace four(4)old Voyager Commercial Side-
Transportation Improvement Entry vans for the Seniors-on-the-Go Transportation
Program which provides free accessible door-to-door
rides to HB residents 60+years to essential and Ice
enriching services
7 Talbert Channel Multi-use Planning S300.000 The Talbert Channel.managed by the OC Flood
Recreation Trail Project Control Distnc accepts runoff from HB and nearby
cites before draining into the ocean The Channel
presents a possible recreational opportunity.
bypassing and connecting schools and public areas
before reaching the HB Wetlands and Slate Beach off
PCH This funding will facilitate planning efforts to
develop a possible recreational path on the existing
levy systems maintenance roads
CURRENT NEEDS FUNDING ALLOCATION TOTAL $9.656.925
7
9/7/2021
Proposed Projects: Planning for the Future
Potential Projects Project Esl Description
Type COSI
1 Comprehensive Homeless Planning. $2.500.DD0 To wfill the City s existing navigation center site to develop
Response Plan Capital a first of RS kind healing center campus facility that embeds
Implementation medical behavioral health. recuperative care and respite
hol.options that integrate into broader Be Well
continuum of mental health/substance abuse care
2 DBFOM Major City Facility Planning S3 200 000 With the Police Department. Lake Fire Station. and Civic
Upgrade Project Center all in need of major facility repairs this effort will fund
the preliminary planning work associated with our proposed
DBFOM(Design-Budd-Finance-Operate-Maintain)major City
facility upgrade project The City will be able to fund site
assessment work facility master planning and conceptual
design efforts
3 Permanent Supportive Capital $2.500.000 In order to make a significant difference in homelessness
Housing the City needs additional Permanent Supportive Housing
(PSH)units This funding will facilitate the production of
additional PSH units in the City
Proposed Projects: Planning for the Future
Potential Projects P'Olecl Est,,11ated Description
a Grown HB Fund— NDC 3:1 Capital S2.D00.D00 To create a City loan program to be administered through the
Match National Development Council(NDC) NDC will provide a
1.3 match based on the City s initial investment and funding
can be used to support existing mid-sized qualified
businesses as they look to expand within the City
5 HB Community Impact Loan Capital $1.000.000 Through the NDC.this effort would create a HB Community
Fund Impact Loan Fund.which would provide loan funding for
start-ups and smaller less established businesses where
borrowers are making 80%of the Area Median Income(All
or less
6 Economic Development Capital 52.000.D00 With the elimination of redevelopment agencies.establishing
Fund this fund would help support local business expansion
efforts,with a particular focus on environmental mitigation
and addressing possible Measure C related issues
8
9/7/2021
Proposed Projects: Planning for the Future
■ Description
Broadband Infrastructure Capital 51.000.000 The City is currently conducting an overall Citywide
Improvements broadband Infrastructure planning effort This funding
would be set-aside for use towards infrastructure
Implementation to Improve broadband access in City
locations Impacted by the digital divide.
9 World Skate Skatepark Capital 5750 000 To facilitate City skatepark planning efforts including
Development Planning the possibility of bringing Olympics LA 2028 action
sports to HB (for skateboarding surfing, and BMX),
this funding would be set-aside to ascertain the
feasibility of developing local Olympic-quality
recreational facilities
9 Mobility& Sustainability Planning $2 000,000 To fund the development of mobility capital
Capital Improvements +Capital improvement programs to enhance pedestrian, bicycle
and school safety Citywide.
Proposed Projects: Planning for the Future
Potential Projects poo'eo Elfill).fled Description
Type Cost
10 Joint Youth Training Center Capital 52.000.000 This funding would be allocated to build a new Joint
for Fire and Police Youth Training Center on the CNET training ground
with new Fire and Police equipment to develop a
two-track program that provides vocational and
educational pathways for local students and
underserved youth.
it Arterial Beautification Capital S1 D00.000 This project would set-aside funding to implement
enhanced medians and landscaping along arterial
street corridors in the City.
PLANNING FOR THE FUTURE 519.950,000
FUNDING ALLOCATION TOTAL
GRAND TOTAL $29,606,925
9
9/7/2021
Proposed 18 Projects by Community Needs
Business Investment & Community Improvements Public Safety
Economic Development Capital Enhancements
• Downtown Revitalization • Oak View Rising Program • Police Technology
Improvements Implementation Infrastructure Improvement
• Senior on-the-Go transportation (CAD and RMS)
improvement • Public Safety Equipment(USAR
• Carr Park Upgrades truck,Lifeguard Rescue Vessel,
•Grown HB Fund(NDC 3:1 Match) .Talbert Channel Recreational Trail and Dive Team vehicle)
• HB Community Impact Loan
Fund
• Economic Development Fund •Comprehensive Homeless • DBFOM Major City Facility
• World Skate Skatepark Response Plan Implementation Upgrade Project
Development Planning for LA • Permanent Supportive Housing •Joint Youth Training Center for
2028 Olympics&Beyond • Broadband Infrastructure Fire&Police
Improvements • Mobility&Sustainability
•Arterial Beautification Capital Improvements
RECOMMENDATIONS
• Approve the proposed ARPA funds spending plan for
Huntington Beach, and
• Direct staff to prepare the necessary budget appropriation
documents to facilitate the adopted program.
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