HomeMy WebLinkAbout60A - AA - CARES SPENDINGREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
AUGUST 4, 2020
TITLE
APPROPRIATE $28.6 MILLION OF
FEDERAL CARES ACT MONEY
ALLOCATED FROM THE STATE AND
APPROVE THE PROPOSED CARES
SPENDING PLAN
/s/ Kiistine RidE<
CITY MANAGER
CLERK OF COUNCIL USE ONLY:
❑ As Recommended
❑ As Amended
❑ Ordinance on 1 s' Reading
❑ Ordinance on 2ntl Reading
❑ Implementing Resolution
❑ Set Public Hearing For_
CONTINUED TO
RECOMMENDED ACTION
1. Approve an appropriation adjustment to allocate the full $28,580,208 of state -allocated
funding from the federal Coronavirus Aid, Relief, & Economic Security (CARES) Act for
various expenditures to respond to COVID-19.
2. Approve the proposed CARES spending plan.
3. Authorize the City Manager to move the appropriation between departments, within the
CARES special revenue fund, to adjust as needed for residents' actual use of each program.
DISCUSSION
On March 27, 2020, the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act was
signed into law, and included funding for state and local government. The City of Santa Ana did
not receive a direct federal allocation; however, the State of California adopted its Fiscal Year (FY)
20-21 budget to include a $28.6 million pass -through to the City. The City just recently received
the first funding installment from the state in the amount of $4,763,368. Future allocations are
anticipated over the next five months.
This $28.6 million allocation is separate from the $2,936,476 of federal CARES money passed -
through to the City by the County of Orange. The City Council appropriated the county pass -
through on July 7, 2020 and allocated it to FYI 9-20 expenditures in response to COVID-19.
Per federal guidelines, CARES money is restricted to COVID-19 response expenses incurred
beginning March 1, 2020 through December 30, 2020; and cannot be used to backfill local revenue
losses. The state has placed a further restriction to submit an expenditure report by September 1,
2020, and substantially spend the money by October 30, 2020. The City must return any unspent
CARES money to the state.
Federal restrictions for CARES funding have evolved several times since March, with the latest
guidance issued July 8. There are current discussions at the federal level with the potential to relax
restrictions further, even allowing local governments to use up to 25% of CARES funding for
60A-1
CARES SPENDING PLAN & APPROPRIATION ADJUSTMENT
August 4, 2020
Page 2
revenue backfill. The proposed spending plan includes a 25% allocation of $7,145,052 for potential
revenue recovery. If there is no federal action to allow the revenue backfill, the various assistance
programs will receive larger allocations.
Regardless of further federal action, CARES funding is restricted money and the City must account
for it in a special revenue fund. Accounting staff has established Fund 176 for this purpose. Staff
recommends appropriating the full amount of the CARES allocation, due to the short timeline for
spending.
Proposed CARES Spending Plan — "Santa Ana CARES'
Based on directions received from City Council Members and professional staff recommendations,
the proposed spending plan includes the following major programs:
$5,950,000 - Deployment of mobile COVID-19 relief workers to the most impacted zip
codes, planned resources include:
o High -risk resident education
o COVID-19 testing
o Distribution of CARES kits
o Access to all Santa Ana CARES Assistance Programs
$300,000 - Providing a Trilingual 24/7 COVID-19 Nursing Hotline for Santa Ana residents to
access free of charge
$8,000,000 - Direct monetary assistance:
o Utility Bill Assistance for households having difficulty paying utility bills
o Significant expansion of Rental Assistance program
o Childcare Assistance to Working Parents
o Small Business Grants
o Arts Relief Program
$300,000 - Temporary Housing / Hotel Vouchers for family members living with a COVID-
19 positive household member
$800,000 - Education and Outreach
o
City COVID-19 Hotline
o
Resource Guide
o
Flyers
o
Door Hangers
o
Digital Signs
o
Social Media
o
Mask Contest
o
COVID Ambassadors
60A-2
CARES SPENDING PLAN & APPROPRIATION ADJUSTMENT
August 4, 2020
Page 3
$1,000,000 - Sanitization of public facilities such as bus shelters and crosswalk buttons
$3,000,000 - Funding for expansion of local community clinics and data modeling
$2,085,156 - City costs for COVID-related sanitization supplies, personnel, personal
protective equipment, teleworking, unemployment, and workers compensation
$7,145,052 - Reserved for revenue replacement / Contingency
To allocate funding to each program, staff made assumptions about the level of resident utilization.
However, one or more programs may prove to be more popular with residents than other programs.
For this reason, staff recommends the City Council grant authorization to the City Manager to move
the appropriation between accounting units within the new fund, as needed to adjust for actual
utilization. See Exhibit 1 for funding allocation details.
FISCAL IMPACT
Multiple departments will manage the various spending initiatives, and accounting units have been
set-up accordingly in the new special revenue fund to account for $28.6 million of expenditures. If
City Council approves the recommendation, the City Manager will have authorization to move the
appropriation between accounting units within fund 176, to adjust for the fluid spending plan.
City Manager's Office
17603010
$8,650,000
Community Development
17618810
$6,300,000
Finance
17610100
$2,000,000
Information Technology
17620140
$675,000
Planning & Building
17616500
$1,150,000
Public Works
17617600
$1,250,000
Non -Departmental
17605015
$7,145,052
Other
Various
$1,410,156
Total Revenue
17602002
$28,580,208
Fiscal Impact Verified By: Kathryn Downs, CPA, Executive Director — Finance and Management
Services Agency
Submitted By: Kristine Ridge, City Manager's Office
City Manager
Exhibit: 1. Funding Allocation Details
60A-3
Santa Ana CARES Proposed Spending Plan
$28.6 million of CARES Act money from the State
Sanitization of High Risk Areas
Public Outreach Digital Signs
Community Based Outreach / COVID Relief Workers / PPE distributed to community
Rental and Childcare Assistance (in addition to $0.8 million of CDBG)
Small Business Grants
Utilities Assistance (Grants to households having difficulty paying utility bills)
High -risk resident testing
UCl/Community Clinics Covid-19 Health Services and Modeling
Isolation & Housing Assistance for COVIDI9 Positive Individuals
Education & Outreach (flyers & phone calls)
Trilingual Nursing Hotline
Special Design Masks (Community Contest)
Other direct City expenses (staff time, PPE, unemployment, third party vendor)
Assist Telework Capabilities
Contingency / Revenue Recovery (25%)
Amount
$
1,000,000
$
250,000
$
1,150,000
$
3,000,000
$
3,000,000
$
2,000,000
$
4,800,000
$
3,000,000
$
300,000
$
500,000
$
300,000
$
50,000
$
1,410,156
$
675,000
$
7,145,052
Total $ 28,580,208
Public Works
Public Works
Planning & Building
Community Development
Community Development
Finance
City Manager's Office
City Manager's Office
Community Development
City Manager's Office
City Manager's Office
City Manager's Office
Various
Information Technology
Non-Deptartmental
60A-4