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CC - (1) Receipt and Filing of Fifth Report on Current Emergency Response Expenditures; (2) Adoption of a Resolution Accepting the Coronavirus Local Fiscal Recovery Fund Established Under the American Rescue Plan Act (ARPA); and (3) Receipt and Filing of Approved Additional Emergency Response Agreements.
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Meeting Date: December 13, 2021
Contact Person/Dept: Onyx Jones/Finance Department
Phone Number: (310) 253-5865
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No [X]
Public Hearing: [] Action Item:[] Attachments: [X]
Commission Action Required: Yes [] No [X] Date:
Public Notification: (E-Mail) Meetings and Agendas - City Council (12/09/2021)
Department Approval: Onyx Jones, Assistant City Manager (12/08/2021)
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RECOMMENDATION
Staff recommends the City Council (1) receive and file a report on current emergency response expenditures for COVID-19 and Civil Unrest related purchases; (2) adopt a resolution to accept the Coronavirus Local Recovery Fund established under the American Rescue Plan (ARPA); and receive and file a report on approved additional emergency response agreements.
BACKGROUND/DISCUSSION
On March 18, May 11, 2020 and August 17, the City Council authorized budget appropriations in the amounts of $250,000, $350,000, and $900,000 respectively, under the authority of Culver City Municipal Code (CCMC) sections 3.07.060.B and 3.09.040 to meet the City’s emergency service and supply response needs. Additionally, the City Council authorized $382,033 for Temporary Street Closures on June 22, 2020 to support economic recovery related to the COVID19 pandemic. In total, $1,882,033 has been authorized in emergency response appropriations.
This is the Fifth Report on Emergency Response Expenditures, with COVID-19 expenditures to date primarily purposed for staff personal protective equipment (PPE), sanitization needs to meet public safety and service continuation, equipment rentals, Emergency Operation Center (EOC) costs for technology requirements, and emergency professional services for needs ranging from FEMA consultation to biohazard cleaning. Posted actual expenses through June 30, 2021 for COVID-19 expenses have totaled $1,403,783 with another $238,957 encumbered for pending orders/service requests, for a total of $1,642,740. An additional $31,680 was expended for Civil Unrest (EOC02) and $55,328 for Election Civil Unrest (EOC03) emergency response supplies respectively. A report by cost category is included as Attachment 1. A balance of $152,285 is remaining in total emergency appropriations for Fiscal Year 2021/2022.
Staff has worked diligently to seek reimbursements from various regional, state, and federal resources for eligible expenses for both posted and anticipated future expenditures over the course of the emergency period. It is anticipated that additional federal legislation is forthcoming that will provide expanded funding assistance for the COVID-19 expenses. Staff will continue to monitor and evaluate the City’s spending strategies to maximize reimbursement opportunities. To date, $6.3M has been requested from various federal, state, and regional resources for COVID-19 with $5.3M received in total to-date. An additional $6.6 million was granted to Culver CityBus in 2020 CARES Act Supplemental Public Transportation Allocations and another $6.0M through the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA). A report by request category is detailed in Attachment 1.
American Rescue Plan Act Funding
On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law by the President. Section 9901 of ARPA amended Title VI of the Social Security Act to add section 602, which established the Coronavirus State Fiscal Recovery Fund, and section 603, which established the Coronavirus Local Fiscal Recovery Funds. The Coronavirus Local Fiscal Recovery Funds were established to provide support to local governments to respond to the impacts of COVID-19 on communities, residents, and businesses.
The City of Culver City has been notified by the U.S. Department of the Treasury of the estimated ARPA funding in the amount of $9,373,884, and has applied for and already received the first tranche of said funds in the amount of $4,686,942.
The United States Department of Treasury has adopted guidance regarding the use of ARPA funds. Section 602(c)(1) and 603(c)(2) provides that funds may be used:
A. To respond to the public health emergency or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or provide aid to impacted industries such as tourism, travel, and hospitality;
B. To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers;
C. For the provision of government services to the extent there has been a reduction in revenue due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year prior to the emergency;
D. To make necessary investment in water, sewer, or broadband infrastructure.
Culver City revenues have faced economic impacts due to the pandemic and based on the City’s preliminary estimates, the City has lost potential General Fund Revenues of $19.6M in calendar year 2020 and an estimated $12M in 2021. The City, in response to the pandemic, has had expenditures for general services including public works (maintenance of buildings, infrastructure, roads, etc.) public safety services, and non-reimbursed COVID-19 supplies/expenses and any future expenditures consistent with the Department of Treasury’s ARPA guidance.
Administrative Emergency Contracts/Purchases
City Council authorized the City Manager to approve purchases and/or agreements up to the Emergency Response appropriation at the August 17, 2020 Council Meeting, with provision that all agreements approved under this authority would be identified in ongoing Emergency Response Expenditures. The following agreements have been noted under this authorization:
• Life Assist - The City Manager provided authorization to extend the agreement in an amount not-to-exceed $65,000 extended through June 30, 2021 for vital medical/first aid supplies. Life Assist is one of the nations’ largest distributors of emergency medical supplies and equipment for First Responder, Paramedic, EMT and EMS providers. The Fire Department relied upon this vendor throughout the emergency event for undisrupted supply chain needs for medical equipment.
FISCAL ANALYSIS
Refer to attached Emergency Response Expense Report for a detailed list of expenditures related to COVID-19 and the civil unrest for a combined total of $1,729,428. The report also includes a list of total grant and revenue resources to fund all emergency expenses, including receipt of the first tranche of said funds in the amount of $4,686,942.
ATTACHMENTS
1. 2021-12-13_ATT-1_Emergency Response Expense Report - V
2. 2021-12-13_ATT-2_Resolution to Accept the Coronavirus Local Fiscal Recovery Fund Established Under the American Rescue Plan Act (ARPA)
MOTION
That the City Council:
1. Receive and file a report on current emergency response expenditures; and
2. Adopt a Resolution accepting the Coronavirus Local Recovery Fund established under the American Rescue Plan (ARPA); and
3. Receive and file a report on current emergency response purchases/agreements.