HomeMy WebLinkAboutAgenda Report - May 5, 2021 C-22AGENDA ITEM C*22
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CITY OF LODI
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COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt a Resolution Approving the Allocation Plan for the Use of Federal American
Rescue Plan Act of 2021 Block Grant Funding, Setting the Parameters for a
Vaccine Incentive Program, Utility Bill Relief Program and Local Economic
Development Grants Program and Appropriating Funds (estimated $16,135,210)
and Appropriating Funds from American Rescue Plan Act of 2021 General Fund
Revenue Replacement Allocations (estimated $2,243,921)
MEETING DATE: May 5, 2021
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION Adopt a Resolution approving the allocation plan for the use of
federal American Rescue Plan Act of 2021 block grant funding,
setting the parameters for a vaccine incentive program, utility bill
relief program, and local economic development grants program
and appropriating funds (estimated $16,135,210) and appropriating
funds form American Rescue Plan Act of 2021 General Fund
revenue replacement allocations (estimated $2,243,921).
BACKGROUND INFORMATION: The American Rescue Plan Act of 2021 (ARPA) was signed into law
on March 11, 2021. It provides $65.1 billion to the approximately
19,000 units of state, local and tribal governments nationwide using
a block grant formula. The National League of Cities has provided
funding estimates that currently show Lodi receiving $16,135,210.
The funding is to be used for various relief programs due to the ongoing COVID-19 pandemic. Full
details on eligible expenditures and program requirements are expected soon from the Treasury
Department. City Staff is monitoring for release of guidance. Per the legislation, the City may use the
funds from this Act to:
• Respond to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-
19 or its negative economic impacts, including assistance to households, small businesses, and
nonprofits, or aid impacted industries such as tourism, travel, and hospitality;
• Respond to workers performing essential work during the COVID-19 public health emergency by
providing premium pay to eligible workers of the City that are performing such essential work, or
by providing grants to eligible employers that have eligible workers who perform essential work;
• For the provision of government services to the extent of the reduction in revenue of the City due
to the COVID-19 public health emergency relative to revenues collected in the most recent full
fiscal year for the City prior to the emergency;
• To make necessary investment in water, sewer, or broadband infrastructure.
APPROVED: 5;0,140 �-JA ,2. X,I: =iv,.
Stephen Schwabauer, City Manager
The City has until December 31, 2024 to spend funds, however due to the ongoing nature of the
pandemic and its negative impacts, it is imperative the City gets started implementing programs to spend
the funding. In addition to permissible activities, funding of unfunded pension liabilities is expressly
prohibited.
At a special meeting on March 23, 2021, City Council provided initial direction on potential projects
utilizing this funding stream. On April 7, 2021, City Council provided additional direction on the ARPA
allocation recommendations that had been revised based on the direction previously provided. The
allocation recommendations and program flexibility presented tonight are created based up on Council
input from the prior two meetings.
The Resolution attached will appropriate all $16,135,210 of the ARPA funding Lodi is expected to
receive. It also provides for flexibility to reallocate funds based on an established list of priorities should
the allocation be more or less than expected or if priorities require fewer resources than anticipated.
In addition to approving the first use allocations of ARPA funding, the attached resolution also approves
reallocation of the General Fund Revenue replacement dollars as follows:
Remaining General Fund Revenue
Replacement Available for Community
Priorities T t t 888,781
Of the $888,781 remaining after funding General Fund reserve accounts with the ARPA revenue
replacements, staff is recommending that $100,000 be allocated to sidewalk replacements on the east
side. This project must be funded from revenue replacement dollars as it is not eligible for direct
allocation from the ARPA funds.
The homeless cleanup project does not take additional council action beyond the appropriation and can
as soon as possible after the adoption of the resolution.
Staff will bring back quarterly reports on the progress of ARPA projects every second meeting in October,
January, April and July until all ARPA funds are expended.
Three projects, providing vaccine incentives, providing utility bill relief, and providing local economic
development grants require immediate Council action to have the greatest potential impact. The
resolution includes provisions to approve these two programs for immediate staff implementation.
VACCINE INCENTIVE PROGRAM
With vaccinations fully underway in Lodi and as of April 15 becoming available to any Californian over the
age of 16, it is imperative to have this program in place now for it to have its intended affect. Staff is
proposing an incentive program that provides a $25 bill credit to Lodi residents over the age of 16 who
receive a first vaccine shot on or after May 6, 2021, and provide evidence of a completed vaccination
regiment (currently two doses for Moderna and Pfizer or one dose for Johnson & Johnson). The bill
FY 2020/21
Requested
FY 2020/21
Original
Budget
Unfunded
Proposed
Funding
General Fund Capital Outlay Fund
435,000
-
435,000
435,000
Information Systems Replacement
65,000
-
65,000
65,000
Police Vehicle Replacement
788,000
210,000
578,000
578,000
Fire Vehicle Replacement
700,000
454,860
245,140
245,140
Fire Alerting Station Equip Replacement
14,000
7,000
7,000
7,000
Fire Backup Alerting System
8,000
-
8,000
8,000
Fire Compressor Replacements
14,000
-
14,000
14,000
Fire Exercise Equip Replacements
3,000
-
3,000
3,000
Total Unfunded FY 21 Capital Replacements
1,355,140.
1,355,140
Remaining General Fund Revenue
Replacement Available for Community
Priorities T t t 888,781
Of the $888,781 remaining after funding General Fund reserve accounts with the ARPA revenue
replacements, staff is recommending that $100,000 be allocated to sidewalk replacements on the east
side. This project must be funded from revenue replacement dollars as it is not eligible for direct
allocation from the ARPA funds.
The homeless cleanup project does not take additional council action beyond the appropriation and can
as soon as possible after the adoption of the resolution.
Staff will bring back quarterly reports on the progress of ARPA projects every second meeting in October,
January, April and July until all ARPA funds are expended.
Three projects, providing vaccine incentives, providing utility bill relief, and providing local economic
development grants require immediate Council action to have the greatest potential impact. The
resolution includes provisions to approve these two programs for immediate staff implementation.
VACCINE INCENTIVE PROGRAM
With vaccinations fully underway in Lodi and as of April 15 becoming available to any Californian over the
age of 16, it is imperative to have this program in place now for it to have its intended affect. Staff is
proposing an incentive program that provides a $25 bill credit to Lodi residents over the age of 16 who
receive a first vaccine shot on or after May 6, 2021, and provide evidence of a completed vaccination
regiment (currently two doses for Moderna and Pfizer or one dose for Johnson & Johnson). The bill
credit would be applied directly to the bill at the vaccine recipient's residence. More than one credit can
be received per household. At $25 per full vaccination, this has the potential to provide credit for up to
10,000 Lodi residents to get vaccinated. Only current Lodi residents are eligible for this program. Bill
credits will be applied pro rata to the electric, water and wastewater portion of the account.
UTILITY DEBT RELIEF
The utility bill debt relief program also requires immediate action. Staff is proposing a program that would
provide relief for delinquent utility account balances billed during the period of the City local emergency
(March 16, 2020) through adoption of this relief program tonight (May 5, 2021) as follows:
• 75% credit towards the delinquent account balance for residents documenting:
o A loss of income from 2019 to 2020 through tax forms other income
certification; and
o Documenting income at or below area moderate income thresholds (120% of
the area median income).
• Credits will be applied directly to the account on behalf of the customer upon
successful documentation of income loss.
• Credits will be based on 100% of the eligible delinquent account balances, but will be
applied pro rata to the electric, water and wastewater portions of the delinquency until
those delinquent amounts are satisfied. If there is remaining credit to be applied, it will
be applied towards the solid waste portion of the delinquent account.
• Collection efforts, including late fees and service suspension for nonpayment, will
resume 90 days following adoption of this program tonight on August 4, 2021.
LOCAL ECONOMIC DEVELOPMENT GRANTS
A COVID-19 Needs Assessment was conducted from October 12 to October 30, 2020, seeking feedback
from thirty community non -profits and government agencies and surveying the Lodi business community.
Based on this need assessment of the Lodi Business Community, staff determined that a Small Business
Assistance (SBA) program would greatly benefit Lodi's economy during the COVID-19 pandemic. Two
activities operated under this program, SBA for Urgent Needs and SBA for Low -/Moderate -Income (LMI)
Benefit.
The Community Development Department received an overwhelming response of 68 applications from
local small businesses of which 63 fully completed their applications and were deemed eligible. With the
available funding, the City was able to award grants to the 24 top scoring applications in the two activities
identified. Some applicants were not awarded their full request due to funding limitations and there are
currently 37 eligible applications that remain unfunded.
On April 7, 2021, staff received direction from the City Council that additional funding could be allocated to
the SBA program ($600,000). Staff is requesting that the six underfunded applications be made whole
($14,664), and the 37 remaining applications be funded at their requested amount ($344,864). Additionally,
as community based organizations (CBO) provide a significant benefit to the community, staff request
applications be re -opened for CBO's for new awards ($150,000), and the remainder funding ($90,472)
would go towards the administration of the program, including costs to date.
FISCAL IMPACT: There is no negative fiscal impact from this presentation. There is no
matching requirement to this funding opportunity. All projects
recommended by staff are fully funded from the proceeds of the American
Rescue Plan Act of 2021 and do not create ongoing spending obligations
for the City. Revenue replacements categorized under Priority 1 in the
resolution provide the City the ability to make certain long term reserve
accounts whole through the pandemic and to fund Parks projects and
programs that would otherwise be unfunded due to revenue loss. It is
anticipated that the Low Barrier/No Barrier Navigation Center and
Homeless Shelter would be both operated and have operations funded by a
third party.
FUNDING AVAILABLE: Funding for these projects comes exclusively from ARPA. An estimated
$16,135,210 will be appropriated in the ARPA fund. The requested
$2,243,921 (estimated) General Fund appropriation is funded from ARPA
through the revenue replacement component of ARPA. There is no impact
to general fund operations from this allocation.
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Andrew Keys, Deputy City Manager
RESOLUTION NO. 2021-129
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE
ALLOCATION PLAN FOR THE USE OF FEDERAL AMERICAN RESCUE PLAN
ACT OF 2021 BLOCK GRANT FUNDING; SETTING THE PARAMETERS FOR
A VACCINE INCENTIVE PROGRAM, UTILITY DEBT RELIEF PROGRAM, AND
LOCAL ECONOMIC DEVELOPMENT GRANTS PROGRAM AND
APPRROPRIATING AMERICAN RESCUE PLAN ACT FUNDS; AND
APPROPRIATING FUNDS FROM THE AMERICAN RESCUE PLAN ACT OF
2021 GENERAL FUND REVENUE REPLACEMENT ALLOCATIONS
WHEREAS, COVID-19 has greatly impacted the economies and personal lives of
people across the world, including in Lodi where the City Council approved a local emergency
due to the COVID-19 pandemic on March 16, 2020; and
WHEREAS, on March 11, 2021, the President signed the American Rescue Plan Act of
2021 (ARPA) that in part authorized $65 billion in block grants to all states, counties, local
governments, tribes, and territories in the United States, with an estimated $16,135,201
allocated to Lodi, as outlined collectively in Exhibits A, B, and C to this resolution; and
WHEREAS, the City Council desires to set Revenue Replacement (calculated as actual
revenue received in a Fiscal Year as compared to the Fiscal Year 2018/19) for the General
Fund; Parks, Recreation and Cultural Services; and the Library as the Priority 1 use for ARPA
funding in the estimated amounts listed in Exhibit A to this resolution; and
WHEREAS, after ARPA funding is used to replace revenue, it is no longer subject to
ARPA restrictions but is instead subject to local restrictions tied to the revenue source it was
intended to replace; and
WHEREAS, Exhibit D outlines the uses for the estimated $2,243,921 of General Fund
revenue replacement to be authorized by this resolution and appropriates the full amount of
General Fund revenue replacement, currently estimated to be $2,243,921, as outlined in
Exhibit A; and
WHEREAS, the City Council desires to set Expense Reimbursement for spending by
the City on pandemic response that has been deemed ineligible by the Federal Emergency
Management Agency ineligible items as the Priority 2 use for ARPA funding in the estimated
amounts listed in Exhibit B to this resolution, covering actual expenses to date and estimated
expenses through the end of Calendar Year 2021; and
WHEREAS, after funding Priorities 1 and 2, it is estimated that $10,247,500 will be
available for programming to various Community Priorities; and
WHEREAS, the City Council desires to set Community Priorities as the Priority 3 use for
ARPA funding in the estimated amounts listed in Exhibit C to this resolution; and
WHEREAS, the City Manager is authorized to make additional allocations to Priority 3 -
Community Priorities should more resources become available for these projects through
outside funding sources, project completion under budget, initial allocation from the federal
government or other means as follows:
1.) Fully fund Community Priority 8 — Refund the Electric Utility Greenhouse Gas
fund for bill credits provided in July 2020; then
2.) Fund Community Priority 10 — Additional Economic Development Programs up to
$500,000; then
3.) Fund Community Priority 11 providing additional revenue loss reserves for
PRCS, the Library, and the General Fund up to $500,000 for potential Fiscal
Year 2022 revenue losses as defined in ARPA; then
4.) Any additional reallocation would take Council action.
WHEREAS, the City Manager is authorized to negatively adjust allocations for Priority 3
— Community Priorities should less resources be available on a reverse priority order beginning
with Priority 9 — Vaccine Incentives; and
WHEREAS, the Vaccine Incentive program is time sensitive and immediate approval of
the program as outlined in Exhibit E of this resolution is needed for the program to have its
intended impact; and
WHERAS, the Utility Bill Debt Relief program is time sensitive and immediate approval
of the program as outlined in Exhibit F of this resolution, including the reinstatement of
collection efforts including late fees and service suspension for nonpayment, is needed for the
program to have its intended impact; and
WHEREAS, the Local Economic Development Grants Program is time sensitive and
immediate approval of the program as outlined in Exhibit G of this resolution is needed for the
program to have its intended impact; and
WHEREAS, the Capital Improvement Projects "Navigation Center" and "Broadband
Infrastructure Project" are hereby created and approved as shown in Exhibit H of this resolution;
and
WHEREAS, the City Manager is authorized to direct staff to initiate the City Wide
homeless cleanup program; and
WHEREAS, all other Priority 3 projects will take additional Council action to implement;
WHEREAS, the City Manager is authorized to make budget adjustments, including
making additional appropriations should allocations be higher than estimated, based on the
priorities outlined in this Resolution; and
WHEREAS, the City Manager shall bring a quarterly report every three months
beginning with the second meeting in October, and recurring the second meeting of January,
April, July, and October, until such time as all ARPA funds are expended.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve
the allocation plan for the use of federal American Rescue Plan Act of 2021 block grant
funding; set the parameters for a vaccine incentive program, utility bill relief program, and a
local economic development grants program and appropriate funds (estimated $16,135,210);
and appropriate funds from American Rescue Plan Act of 2021 General Fund revenue
replacement allocations (estimated $2,243,921), as outlined collectively in Exhibits A, B, C, D
and E.
Date: May 5, 2021
I hereby certify that Resolution No. 2021-129 was passed and adopted by the Lodi City
Council in a regular meeting held May 5, 2021, by the following vote:
AYES:
COUNCIL MEMBERS
— Chandler, Hothi, Khan, Kuehne, and
Mayor Nakanishi
NOES:
COUNCIL MEMBERS —
None
ABSENT:
COUNCIL MEMBERS —
None
ABSTAIN:
COUNCIL MEMBERS —
None
E NIFE USMIR
�. City Clerk
2021-129
EXHIBIT A
AMERICAN RESCUE PLAN ACT OF 2021
PRIORITY 1 USE — REVENUE REPLACEMENT
Fund
FY 2019-20
(ACTUAL)*
FY 2020-21
(EST)*
Total
General Fund
428,436
1,815,484
2,243,921
Library
785
28,893
29,678
PRCS
690,382
1,551,684
2,242,066
Total
1,119,603
3,396,061
4,S1S,664
* FY 2019-20 actuals compared to FY 2018-19 actuals. FY 2020-21 Mid
Year estimates compared to FY 2018-19 actuals. Actual amount of
revenue to be replaced is dependent on FY 2020-21 actuals.
EXHIBIT B
AMERICAN RESCUE PLAN ACT OF 2021
PRIORITY 2 USE —
COVID-19 RESPONSE EXPENDITURES DEEMED INELIGIBLE BY FEDERAL EMERGENCY MANAGEMENT
AGENCY
Priority 2 - Reimburse Various FEMA Ineligible
COVID Expenses
COVID-19 Leave for Employees
1,365,000
COVID - 19 Expenditures Likely
Ineligible through FEMA
860,617
Total Priority 2*
2,225,617
* Actual amount of expenses to be reimbursed will be based on
final decisions by FEMA on expense eligibility.
EXHIBIT C
AMERICAN RESCUE PLAN ACT OF 2021
PRIORITY 3 USE - COMMUNITY PRIORITIES
Ranking
Project
Staff Proposal
1
Nav Center and Low Bar Shelter
$ 5,500,000
2
City Wide Homeless Cleanup
$ 162,000
3
Utility Debt Relief
$ 1,500,000
4
Local Business Assistance Grants
$ 500,000
5
Broadband Infrastructure
$ 1,000,000
6
East Side Sidewalk Repairs
$ 100,000
7
Chamber of Commerce Farmer's
Market Grant
$ 60,000
8
Refund EU for COVID Relief Credit
$ 1,235,500
9
Vaccine Incentives
$ 230,000
10
Economic Development Programs
$ -
11
Set Aside for Additional Revenue
Losses for PRCS/Library or
Unforeseen Needs
$ -
Total
$ 10,287,500
EXHIBIT D
AMERICAN RESCUE PLAN ACT OF 2021
SECOND USE OF GENERAL FUND REVENUE REPLACEMENT FUNDING
Reallocation to Priority 3 -
Unfunded
Funding from
Community Priorities *
FY 2020/21
FY 2020/21
Amount in FY
ARPA Revenue
Requested
Original Budget
2020/21 Budget
Replacement
General Fund Capital Outlay
Fund
435,000
-
435,000
435,000
Information Systems
Replacement
65,000
-
65,000
65,000
Police Vehicle Replacement
788,000
210,000
578,000
578,000
Fire Vehicle Replacement
700,000
454,860
245,140
245,140
Fire Alerting Station Equip
Replacement
14,000
7,000
7,000
7,000
Fire Backup Alerting System
8,000
-
8,000
8,000
Fire Compressor
Replacements
14,000
-
14,000
14,000
Fire Exercise Equip
Replacements
3,000
-
3,000
3,000
Total Unfunded FY 21 Capital
Replacements
1,355,140
1,355,140
Reallocation to Priority 3 -
Community Priorities *
888,781
* Actual amount of alloction available for Priority 3 will be based upon the actual amount of FY 2020-21 General Fund revenue eligible
for replacement.
EXHIBIT E
AMERICAN RESCUE PLAN ACT OF 2021
VACCINE INCENTIVE PROGRAM
GOAL: To provide incentive to Lodi residents to receive a vaccination
protecting against COVID-19.
TOTAL PROGRAM FUNDING: $230,000
AMOUNT OF INCENTIVE: $25/fully vaccinated individual
INCENTIVES AVAILABLE: 9,200
DATES OF VACCINATION: First vaccination dates must be April 22, 2021, or later
REQUIRED DOCUMENTATION: The resident must provide a valid vaccination card showing full
vaccination, including the brand of vaccination and a full vaccination
record including the dates of the first and second vaccination (if
applicable). Currently Moderna and Pfizer vaccines require two doses
and Johnson & Johnson requires only one dose. If the resident is not
named on the utility account, the resident will need to provide
documentation sufficient to establish their current residence at the
address.
METHOD OF PAYMENT: Utility bill credit applied to the bill at the address of residence for the
Lodi resident receiving the incentive.
TIMING OF PAYMENT: Upon successful review of the required documentation, a credit will be
immediately applied pro rata to the electric, water and wastewater
portion of the residential utility account at which the vaccinated
individual resides. If the account has a zero balance due, the credit will
be applied towards the next billing cycle.
APPLICATION PROCESS: Contact Utility Billing Customer Service at 209-333-6717, or apply online
at www.lodi.gov.
METHOD OF ALLOCATION: First come (with completed application), first served.
EXHIBIT F
AMERICAN RESCUE PLAN ACT OF 2021
UTILITY DEBT RELIEF PROGRAM
GOAL: To provide utility debt relief to low income Lodi account holders who
have documented a loss of income from the COVID-19 pandemic.
TOTAL PROGRAM FUNDING: $1,500,000
DEBT ELIGIBLE FOR RELIEF: Delinquent utility bills with a bill date from and including the date the
City declared a local emergency (March 16, 2020) to and including the
date this program was established (May 5, 2021).
AMOUNT OF INCENTIVE: 75% of delinquent utility account balances eligible for relief
INCENTIVES AVAILABLE: Until such time as the total program funding is exhausted
OTHER ELIGIBILITY
REQUIREMENTS: Account holders seeking debt relief will be required to document gross
income loss from tax year 2019 to tax year 2020 as shown on official tax
documents for the years in question. Alternatively, account holders
may provide a Certification of Income and Expenses, including a
certification that their income declined from calendar year 2019 to 2020
due to COVID-19 and their income is below the required thresholds for
this program. Receiving other forms of utility debt or participation in
utility discount programs relief does not disqualify account holders from
receiving utility debt relief through this program. Account holders will
need to certify that they are not receiving utility debt relief from
another source for the same portion of the delinquent account funded
by this program. Account holders are not precluded from seeking or
receiving relief for the portion of utility debt not funded from this
program.
Residential account holders must have a 2020 income below the area
moderate household income for 2020 as established by the California
Department of Housing and Community Development State Income
Limits for 2020 for San Joaquin County. Income limits are shown below.
Household
Size
1
2
3
4
5
6
7
8
Moderate
$63,000
$72,000
$81,000
$90,000
$97,200
$104,400
$111,600
$118,800
Annual Income
Limit
Moderate
$5,250
$6,000
$6,750
$7,500
$8,100
$8,700
$9,300
$9,900
Monthly
Income Limit
REQUIRED DOCUMENTATION: Tax documents showing gross income for tax years 2019 and 2020 or
adequate Certification of Income and Expenses, and documents
showing ownership of the utility account in question. Application
certifying that the account holder is not receiving debt relief from any
other program for the same portion of the delinquent balance funded
by this program.
METHOD OF PAYMENT: Utility bill credit applied directly to the account in question. Credits will
be applied pro rata to the electric, water and wastewater delinquencies
until those delinquencies are fully satisfied. Should any credit by
available after satisfaction of electric, water and wastewater
delinquencies, the credit will be applied to curb side waste removal
service balances.
AUTOMATIC CARE
QUALIFICATION: Account holders qualifying for this utility debt relief will automatically
be qualified for the City's CARE electric utility debt relief if they also
meet the income qualifications for the CARE program. There will be no
need to reapply. The first CARE grant will be applied to the delinquent
balance prior to calculating
TIMING OF PAYMENT: Upon successful review of the required documentation, a credit will be
immediately applied to the residential utility account in question.
APPLICATION PROCESS: Contact Utility Billing Customer Service at 209-333-6717, or apply online
at www.lodi.gov.
METHOD OF ALLOCATION: First come (with completed application), first served.
OTHER ACTIONS: On August 4, 2021 (90 days after program adoption), the City will
resume utility debt collection efforts including imposing late fees and
suspending electric service for nonpayment.
EXHIBIT G
AMERICAN RESCUE PLAN ACT OF 2021
LOCAL ECONOMIC DEVELOPMENT GRANTS PROGRAM
Type of Grant
Funding
Allocation
Total Projects
Funded
Underfunded Small Business
Assistance Grants
$ 14,664
6
Unfunded Small Business Assistance
Grants
$ 344,864
37
**NEW** Competitive Community
Based Organization Grants
$ 150,000
Unknown
Administration Cost
$ 90,472
N/A
Total
$ 600,000
EXHIBIT H
AMERICAN RESCUE PLAN ACT OF 2021
Capital Improvement Program
FY 2021-2022
Maintenance Project Title: Navigation Center Munis Project Code:
OP List Proj #
Section I: Description District Nos: ALL Project Length Priority
High
The City of Lodi Community Development Department recognizes that effectively responding to the COVID-19 Pandemic requires a combination of strategies at the local level including housing our unsheltered population.
The Navigation Center concept would allow for the City to meet our current point in time count (139) and implement a no camping ordinance. This project would be implemented in phases after the community engagement
process was initiated.
Phase 1: Acquisition (due diligence, appraisal, environmental, etc.), Emergency Setup with commercial grade tent structures for sleeping, food distribution, and congregate areas. Mobile hygiene facilities
such as showers,
restrooms, and laundry would also be provided. Tent structures would be usable for any future emergency or disaster relief needs.
Phase 2 (Interior): Complete administrative offices, interview rooms, medical/veterinary rooms, congregate sleeping area, storage, dinning facility, kitchen, showers, restrooms, and laundry.
Phase 3 (Exterior): Tiny Cabins (Non -Congregate), walkways, green space, dog run, parking lot, outdoor restroom, and outdoor charging station.
Justification/factor driving project
On April 7, 2021 Council feedback was to support $5.5 million towards the development of a Navigation Center. A resolution approving this allocation is scheduled for April 21, 2021 Council Meeting. On April 7, 2021 City
Council accepted the award of Permanent Local Housing Allocation (PLHA) funding.
Additional Information
The American Rescue Plan Act of 2021 was signed into law on March 11, 2021. The Act provides $65.1 billion to the approximately 19,000 units of state, local and tribal governments nationwide using a block grant formula.
The National League of Cities has provided funding estimates that currently show Lodi receiving $16.14 million dollars.
Section II Estimated Project Costs
Expenditure Prior Years FY 20121 FY 21122 FY 22123 FY 23124 FY 24125 FY 25126 Future Yrs
Total
Estimate Budget
Miscellaneous $ $ 2,100,000 N/A
$ 2,100,000
Contracts $ $ 5,100,000 N/A
$ 5,100,000
$ N/A
$
$ N/A
$
Total Capital Costs $ $ 7,200,000 $ $ $ $ $ NIA
$ 7,200,000
Section III Funding Sources/Methods of Financing
Funding Source(s) Prior Years FY 20121 FY 21122 FY 22123
FY 23124 FY 24125 FY 25126 Future Yrs
Total
Estimate Budget
104 -American Rescue Plan $ $ 5,500,000
N/A
$ 5,500,000
355 - Permanent Local Housing Allocation $ $ 1,700,000
N/A
$ 1,700,000
$
N/A
$
$
N/A
$
Total Project Financing $ $ 7,200,000 $ $
$ $ $ NIA
$ 7,200,000
Section IV Operating Budget Impact
Operating Cost or (savings) Prior Years FY 20121 FY 21122 FY 22123 FY 23124 FY 24125 FY 25126 Future Yrs
Total
Estimate Budget
Personnel $
$
Other Operating Costs $
$
Total Operating Impact $ $ $ $ $ $ $ $
$
EXHIBIT H
AMERICAN RESCUE PLAN ACT OF 2021
Capital Improvement Program
FY 2021-2022
Project Title: Broadband Infrastructure Project I Munis Project Code: NEW NEW
Section I: Description District Nos: Citywide Project Length TBD Priority Normal
Phase I of the City of Lodi Broadband Infrastructure Project willl include upgrading the existing fiber backbone to support the City's growing needs across many departments and applications. This will include completing a
full engineering design of the fiber backbone rebuild to identify all requirements and constraints; developing and issuing a Request for Proposals to select a construction contractor for the rebuild; and construction and
project management activities associated with the rebuild. The new fiber backbone will be dimensioned with extra capacity that could be used to support potential future broadband services in Lodi.
Justification/factor driving project
The City of Lodi currently owns and maintains approximately 20 miles of fiber used to support communications for public safety, data collection for utility billing, utility operation software platforms, as well as citywide data
and communication efforts. The existing fiber backbone is reaching the end of its useful life and additional fiber will be needed over the next 10 years to support existing and build upon future City and utility connectivity
needs as well as enable a platform for possible opportunities benefitting Lodi residents and businesses.
Additional Information
On February 17, 2021, City Council accepted the City of Lodi Broadband Feasibility Study completed by Magellan Advisors, LLC. Staff committed to bring forward Phase I of the project as part of future funding and
planning efforts. This Phase I Project will be funded by the American Rescue Plan Act of 2021 for which broadband infrastructure improvements are identified as an eligible use of funds. These efforts would be managed
by a new full-time position being requested as part of the FY 22 budget process.
Section II: Estimated Project Costs
Expenditure Prior Years FY 20121 FY 21122 FY 22123 FY 23124 FY 24125 FY 25126 Future Yrs Total
Estimate Budget
Contracts $ $ 1,000,000 $ - $ 1,000,000
Total Capital Costs $ $ 1,000,000 $ $ $ $ $ $ $ 1,000,000
Section III: Funding Sources/Methods of Financing
Funding Source(s) Prior Years FY 20121 FY 21122 FY 22123 FY 23124 FY 24125 FY 25126 Future Yrs Total
Estimate Budget
104 - American Rescue Plan $ $ 1,000,000 $ - $ 1,000,000
Total Project Financing $ $ 1,000,000 $ $ $ $ $ $ $ 1,000,000
Section IV Operating Budget Impact
Operating Cost or (savings) Prior Years FY 20121
FY 21122
FY 22123 FY 23124
FY 24125 FY 25126 Future Yrs Total
Estimate
Budget
Personnel $
$
Other Operating Costs $
$
$
$ $ -
Total Operating Impact $ $
$ $ - $ - $
America Rescue Plan Act of 2021
May 5., 2021
CHANGES
• Fully funded the Chamber of Commerce's $40,000 request due to
the inability to hold Farmer's Markets in 2020.
• SBA program - $600,000
— Underfunded applications made whole ($14,664)
— 37 remaining applications funded ($344,864)
— New Community Based Organizations (CBO) round of competitive
funding ($150,000)
— Program administration, including costs to date ($90,472)
NOTES
• Utility Debt relief program includes reinstatement of late fees and
service suspension for non payment beginning August 4 (90 days)
• Vaccine incentive program is currently structured as $25 per
complete vaccination, with first doses May 6 and in the futur
— Incentive paid as a utility bill credit
• Staff recommends Council approve a resolution
appropriating the estimated $16,135,210 ARPA
allocation, appropriating an estimated $2,243,921 of
ARPA General Fund Revenue Replacement allocations
and setting the parameters for the Utility Debt Relief
and Vaccine incentive programs.
— Staff Priority 1 is revenue replacement for the General
Fund, PRCS and Library.
— Staff Priority 2 is reimbursement for various COVID-19
costs likely to be FEMA eligible.
Staff Priority 3 is various community priorities discussed.
• The American Rescue Plan Act (ARPA) of 2021 is a $1.9 trillion
economic stimulus bill signed into law March 11, 2021, that
included $65 billion for local governments nationwide.
— $16.14 is estimated to be Lodi's allocation.
• Restrictions include:
— Can be used to replace lost revenue.
Economic Development including aid to households, small businesses,
non profits and industries especially affected by COVID like hospitality
and tourism.
— Direct response to the COVID-19 public health emergency.
— Water, sewer or broadband infrastructure investments.
Full guidance is still expected from Treasury in the future.
Two Council discussions on March 23 and April 7 were held to
provide staff direction to craft the program recommended for
approval tonight.
• To facilitate efficient delivery of funds, staff proposes to set
the following priorities with flexibility to reallocate funds
based on the priority lists.
— Priority 1—Revenue Replacement for General Fund ($2.2 M),
Library ($30,000) and PRCS ($2.2 M) ($4.5 M total) (see slide 4)
• First use of General Fund revenues replaced is to fund reserve
accounts unfunded in FY 2020-21 due to the pandemic (see slide 5)
• Second use is to put remaining funds back into Priority 3 ARPA
projects (see slide 5)
— Priority 2 — Refund COVID-19 Response Expenditures Deemed
Ineligible by FEMA ($2.25 M) (see slide 6)
— Priority 3 — Community Priorities — various (see slide 8-10)
• Quarterly reporting to Council is required.
Fund
FY 2019-20
(ACTUAL)*
FY 2020-21
(EST)*
Total
General Fund
4281436
118151484
212431921
Library
785
281893
291678
PRCS
6901382
115511684
212421066
Total
11119,603
3,3916,061
4,5151664
* FY 2019-20 actuals compared to FY 2018-19 actuals. FY 2020-21 Mid
Year estimates compared to FY 2018-19 actuals. Actual amount of
revenue to be replaced is dependent on FY 2020-21 actuals.
Remaining General Fund Revenue
Requested
Budgeted
Unfunded
Proposed
Funding
General Fund Capital Outlay Fund
435,000
-
4351000
4351000
Information Systems Replacement
65,000
-
651000
65,000
Police Vehicle Replacement
788,000
210,000
578,000
578,000
Fire Vehicle Replacement
700,000
454,860
2451140
2451140
Fire Alerting Station Equip Replace
14,000
710000
71000
71000
Fire Backup Alerting System
8,000
-
8,000
8,000
Fire Compressor Replacements
14,000
-
14,000
14,000
Fire Exercise Equip Replacements
3,000
-
3,000
31000
Total Unfunded FY 21 Capital Replacements
1,355,140
1,355,140
Remaining General Fund Revenue
Replacement Available for Community
Priorities
888,781
NOTE: This is the proposed "second use" of the 2021 ARPA funds after the City
deposits the funds into the General fund as revenue replacement. FY 2021-22
Budget recommendations will include funding these reserves through current
Resources.
• The City incurred expenses responding to
COVID — 19 that are likely FEMA ineligible.
—Staff will continue to pursue FEMA reimbursement
and reallocate funds based on priorities outlined.
Priority 2 - Reimburse Various FEMA Ineligible
COVID Expenses
COVID-19 Leave for Employees
113651000
COVID - 19 Expenditures Likely
Ineligible through FEMA
9061617
Remainder for Community Priorities
21F265,617
Total City of Lodi Allocation
16,140,000
Priority 1 - Revenue Replacement
(41515,,664)
Priority 2 - FEMA Ineligible Expenses
(21265,.617)
Remainder for Community Priorities
9,358,719
General Fund Revenue Replacement
Available for Community Priorities
888,781
Total Available for
Priority 3 - Community Priorities
10,247,500
• Approximately $10.2 million remains for allocation.
• Best practice is to utilize one time revenues for one time purposes.
• Priorities are modified based on City Council feedback at March 23
special meeting and April 7 regular meeting.
• Project details are available for review upon Council request.
• Council action will be requested tonight to formally allocate funding
and approve the ARPA program in Lodi.
— Two projects — Utility Debt relief and the Vaccine Incentive program
need approval of the program details for immediate implementation.
— One project — Homeless cleanup can be executed as soon as possible
upon approval of the budget.
— All other projects will have one or more future Council action to
implement.
• Based on 3.23 shirt sleeve, these projects
were removed due to lack of discussion.
—The projects are likely ineligible, with the
exception of water, sewer or broadband
improvements for the Econ Dev site.
Ranking
Priority
Potential Cost
Staff Proposal
Notes
Economic Development Site
Prepare strategic site for possible
N/A
Preparation
$1 million +
$ -
development or annexation
Longer term project planned by Staff
N/A
Animal Shelter
$10-$15 million
$ -
to be financed in 2022
2nd Floor Improvements at 230 W
N/A
Elm St (above PRCS Office)
$1 million
$ -
Move staff out of basements
• Based on 4. 7 regular meeting, the $40, 00
request from the Chamber of Commerce
was recommended for funding.
Ranking
Project
Staff Proposal
1
Nav Center and Low Bar Shelter
$ 5,500,000
2
City Wide Homeless Cleanup
$ 621000
3
Utility Debt Relief
$ 1,500,000
4
Local Business Assistance Grants
$ 6001000
5
Broadband Infrastructure
$ 1,000,000
6
East Side Sidewalk Repairs
$ 1001000
7
Chamber of Commerce Farmer's
Market Grant
$ 401000
8
Refund EU for COVID Relief Credit
$ 112351500
9
Vaccine Incentives
$ 2501000
10
Economic Development Programs
$ -
11
Set Aside for Additional Revenue
Losses for PRCS/Library or
Unforeseen Needs
$ -
Total
$ 10,287,500
• Provide relief credit for delinquent residential utility account
balances billed during the period of the City local emergency
(March 16, 2020) through adoption of this relief program.
— 75% credit towards the delinquent account balance for residents
documenting a loss of income from 2019 to 2020 through tax forms or
other certification and documenting income at or below area
moderate income thresholds established by the California Department
of Housing and Community Development for 2020.
— Credits will be applied directly to the account on behalf of the
customer upon successful documentation or certification of income
loss.
• Staff proposes to reinstate late fees and service suspension for non
payment on August 4, 90 days following program adoption, if
approved tonight.
• Vaccination is critical to ending the pandemic.
• Many residents have turned down the vaccine despite eligibility.
• Financial incentive may motivate some to get a vaccine that
otherwise would not.
• Staff proposes to offer an incentive for documented full vaccination
in the form of a utility bill credit on a first come, first serve basis, in
the form of a utility bill credit.
— First shot must be on or after May 6, 2021.
— Full vaccination (currently one shot Johnson & Johnson, or two shot
Moderna or Pfizer) is necessary to receive the credit.
— A valid vaccine card must be presented to receive the credit.
• Staff is recommending a $25 credit to provide incentive to 10,000
residents.
— Credit to be applied pro rata to the electric,
portion of the bill only.
water and wa stewi
• Allows City to fund project applications received but not or only
partially funded under the City's CARES/CDBG COVID relief SBA
program.
• Provides up to $10,000 in grant resources to small businesses that
have been impacted by the COVID-19 Pandemic.
• Provides new and competitive funding for Community Based
Organizations.
• Provides program administration costs.
Type of Grant
Funding
Allocation
Total Projects
Funded
Underfunded Small Business
Assistance Grants
$ 14,664
6
Unfunded Small Business Assistance
Grants
$ 344,864
37
**NEW** Competitive Community
Based Organization Grants
$ 150,000
Unknown
Administration Cost
$ 90,472
N/A
Total
$ 6001000
PROJECT DETAILS
• The Lodi Chamber was unable to host the Farmer's
Market downtown in 2020 due to COVI D restrictions.
• Restrictions may continue to make downtown
infeasible in 2021.
• The City has explored alternative sites, such as
Hutchins Street Square and Lodi Lake.
— HSS will serve as a mass vaccination clinic during market
season and the two cannot coexist.
— Lodi Lake has severe parking limitations and the market
during the Lake's busy season is infeasible.
• This item is unfunded in staff's recommendation. •
• Emergency homeless shelter to shelter all of Lodi's homeless residents
based on the most recent point in time count in 2019 (139 unsheltered
individuals).
• Navigation Center facilitates linkage to needed resources to help
individuals and families exit the cycle of homelessness, and meet the
needs of our point in time count.
• Provides enough resources for a complete shelter and navigation setting
addressing substance abuse counseling, physical health clinic, mental
health services, jobs readiness programs, veterinary clinic, safe housing,
regular meals services, safe parking area (line -in car unsheltered), rapid
rehousing and linkage to other housing services, etc.
• Significant community outreach and engagement, including on site
selection is necessary.
• Allows the City to adopt and enforce a no camping ordinances to keep
unsheltered residents from living in public spaces and have the
opportunity to choose the emergency shelter verses enforcement
• This project is a good candidate for additional funding sources.
• Ongoing expenses to be funded by an operating partner.
• Provides funding estimated as sufficient to
provide a one time homeless encampment
cleanup City wide.
PW Cost Item
Daily Cost
PW Equipment
$
2,700
Dumping Fees
$
2,700
Labor (2 - 4 Man Street Crews)
$
2,800
Total Public Works Costs
$
8,200
PD Cost Item
Daily
Cost
PD Officers (4)
$
2,900
Community Liason Officer
$
550
Part Time Community Liason Officer
$
750
Total PD Costs
$
4,200
Daily Cleanup Cost
$
12,400
City Wide - 5 Day Cleanup
$62,000
• Existing fiber backbone is approaching end of life.
— $1 million rebuild of fiber backbone supports existing
and future City connectivity needs.
• Metering, communications, cyber security, network
redundancy, Smart City options.
— $1 million rebuild of fiber backbone enables platform
for future innovation
• 1St step in phased approach to potential broadband offering
for businesses and residences
• Future phases (including a potential revenue stream) will
require this $1 million investment to rebuild the existing
fiber ring due to age and condition.
• Sidewalk repairs are not an eligible use for the
Rescue Plan Act funds.
• Per Staff recommendation, $100,000 of revenue
replacement resources will be reallocated to
sidewalk repairs form the General Fund.
• Current sidewalk repair efforts rely on CDBG or
limited resources from LTF and streets funding
that can be used for road repair as well.
The need for sidewalk repair far outpaces the
$100,000 allocation.
• In July 2020, EU provided Lodi residents over $3
million in bill credits as COVID relief, split 50/50
from two sources.
• Refunding EU these resources allows EU to have
resources to offset future Energy Cost
Adjustments, thereby keeping rates lower in the
future than they otherwise would be.
— This would be consistent with the original purpose of
these resources pre-COVID.
ECA charges are still probable, however with these
resources they will be lower than without them.
• Potential programs include:
— $100,000 - 50% local match related to the establishment of
a Lodi -based Small Business Development Center.
• Staff would seek grants for the other 50%.
— $200,000 — Micro Loan Revolving Loan Program for Start -
UPS
— $300,000 — East Lodi and Downtown Fagade Grant and
Building Systems Program
• 10 to 50 percent match requirement; the higher the match, the
more points for an applicant
— Additional local business assistance
Numerous federal and state COVID relief programs
have provided additional assistance available to
Lodi businesses, including additional funding in
the Rescue Plan Act