CC - Item 5B - Discussion on Use of American Rescue Plan Act State and Local Fiscal Recovery Funds (SLFRF)ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: BEN KIM, ACTING CITY MANAGER
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DATE: APRIL 26, 2022
SUBJECT: DISCUSSION ON USE OF AMERICAN RESCUE PLAN ACT STATE AND
LOCAL FISCAL RECOVERY FUNDS (SLFRF)
SUMMARY
The City of Rosemead was awarded $17.878.653 in American Rescue Plan Act State and Local
Fiscal Recovery Funds (SLFRF). The funds must be obligated by December 2024 and fully
expended by December 2026. On February 22, 2022, the City Council authorized the partial use
of these funds for the addition of a City Engineer and the conversion of the 3/4 Accountant position
to full time. On March 8, 2022, the City Council authorized the acceptance of the standard
allowance of $10 million in revenue loss due to the pandemic. This report is intended to continue
the discussion, provide additional information regarding possible uses of the remaining SLFRF
funds, and gain City Council direction.
BACKGROUND
The use of SLFRF funds has been divided into four categories: - 1) Public Sector Revenues to
replace lost revenue; 2) Public Health & Economic Response to respond to the public health and
economic impacts of COVID-19; 3) Premium Pay for Essential Workers; and 4) Water, Sewer and
Broadband Infrastructure.
Public Health & Economic Response
This category includes `Responding to the Public Health Emergency', `Responding to
Negative Economic Impacts', and `Public Sector Capacity'. Allowable uses in this category
include expenses for COVID-19 mitigation and prevention, medical expenses, behavioral
health care, and preventing and responding to violence. Also included is assistance to
households, small businesses, nonprofits, and impacted industries, and public sector capacity
including investment in neighborhoods to promote improved health outcomes and effective
service delivery.
Premium Pay_ for Essential Workers
The SLFRF Final Rule includes a section regarding premium pay for essential workers and
expanded the expanded the definition of an essential worker to include all local government
AGENDA ITEM 5.11
City Council Meeting — American Rescue Plan Act Funds
April 26, 2022
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employees who either have in-person interaction with the public or coworkers or handle items
used by others. The premium may be provided to private and public sector employees
providing essential services up to a rate of $13/hour but cannot exceed $25,000 per employee.
Beyond Enumerated Uses
Throughout the Final Rule, summaries, and overviews, Treasury identifies specific uses of
funds that are eligible, called "enumerated eligible uses" which are provided as guidance for
proper spending of the SLFRF. However, the uses listed are non -exhaustive and may be
expanded based on additional analysis of the use, application to the purpose and guidelines of
SURF, justification of the use, and additional documentation and reporting.
DISCUSSION
Based on allowable use of the SLFRF under the Final Rule and operational (shown in green),
staffing (peach), and capital needs (blue) of the City, Staff is proposing the following items for
City Council consideration is use of the funds. The list is followed by more details identified by
the reference number (Ref #). Although the list of items exceeds the amount available, it is
anticipated that final numbers will fall within the available funding. Just as with the City's budget,
the SURF spending plan is designed to be fluid and will be modified as costs are refined, programs
implemented, and/or priorities change. The funds are subject to City Council appropriation and
must be spent in adherence to the City Purchasing Code and Policies and Procedures.
Ref .
Description
Amount
SLFRF Allocation for Rosemead
17,878,700
Standard Revenue Loss Allocation Approved
10,000,000
City Engineer (through 12/31/2026) Approved
630,000
Accountant 1/4 time (through 12/31/2026) Approved
160,000
Remaining Allocation
7,088,700
1
COVID Sick Time Mandate
100,000
2
Testing / Supplies / Related Exp
300,000
3
Permit System (Planning, Building and Safety)
500,000
4
Record Database Management Plan (GIS) - Public Works
300,000
5
Public Safety Flock System
128,500
6
Additional Position - Administration - HR Analyst
485,000
7
Additional Position - City Clerk's Office - Admin Asst
395,000
8
One -Time Premium Pay Awards for Employees
150,000
9
Council Chambers / Conference Room Upgrades
50,000
10
Rosemead Walking Trail
500,000
11
Zapopan Park Walking Trail
420,000
12
Splash Park Improvements
200,000
13
Public Safety Substation - Technology & EOC
300,000
14
Wireless Broadband / Parks & City Facilities
250,000
15
Storm Drain Pump Station Replacement
3,000,000
16
Financial Tracking/Reporting - Staff Time thru 2027
100,000
Total Uses for Consideration 7,178,500
Remaining Balance (89,800)
City Council Meeting — American Rescue Plan Act Funds
April 26, 2022
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Details of Recommended Capital Projects Above
Operational Uses
The City is required to provide additional sick leave
1
Covid Sick Leave
to both full and part-time employees when the leave
$ 100 000
Mandate
is in relation to COVID-19. The City's cost may be
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reimbursed with SLFRF funds.
The City has experiences significant expenses due
to the pandemic for the purchase of goods related to
safety, testing, and other supplies. A portion, but
2
Testing / Supplies /
not all, of these costs were paid utilizing CDBG-
$ 300 000
Related Exp
COVID funding. This amount is to cover the costs
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covered by other sources and will be adjusted based
on reimbursement from FEMA which has been
applied for but not received.
Permit System
Replacement for
Replacement of the current system to improve
3
Planning, Building &
efficiency of operations.
$ 500,000
Safe Services
Estimated amount — Requires formal bid.
Utility, Infrastructure and
City wide survey and inventory of all
4
Facilities Mapping and
infrastructure/facility assets, develop GIS
$ 300,000
Record Database (GIS)
maps/database, and file management system. —
Management Plan
Estimated amount — Requires formal bid.
Continued expansion of the Flock camera system
5
Public Safety Flock
within the City. This provides for operational
$ 128 500
System
expenses of 10 additional cameras through
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December 2026.
Staffing Uses
The additional of this position will increase staffing
from 2 full-time and 1 part-time positions within the
Human Resources division to 3 full-time and 1 part-
time positions. Duties for the position include
6
New Position — Human
coordinating Citywide trainings, creating the City's
$ 485 000
Resources Analyst
organizational succession plans and employee
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development, developing and implementing a
mentorship /internship program, assist in updating
and creating policies and procedures, job
descriptions, and HR processes.
The addition of this position will increase full-time
New Position —
staffing from 2 to 3 positions within the City
7
Administrative Asst —
Clerk's Office. Duties for the new position include
$ 395,000
City Clerk
general clerical and administrative support,
customer service, data entry and retrieval, public
records request processing, maintaining required
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April 26, 2022
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On March 8, 2022, the City Council elected to accept the $10 million standard allowance for
revenue loss provided through SLFRF. The $10 million has been transferred to a new fund to
insurance files, assistance in records management,
and other related duties.
Would provide to current employees who worked
during calendar 2021 a $2,000 one-time payment to
full-time employees and $500 or $1,000 to part -
8
Premium Pay
time employees depending on number of hours
$ 150,000
worked in the last year (1 — 499 hours = $500; 500+
= $1,000). The Executive Team has elected to
forego the premium payment and Council Members
are not eligible.
Capital Improvement Uses
9
Council Chambers /
Conference Room
Technology and logistical improvements for
$ 50,000
Updates
Council Chambers and Conference Room
10
Rosemead Walking Trail
Replacement of current walking trail based upon
$ 500,000
committee recommendation.
11
Zapopan Park Walking
Replace deteriorated walking trail.
$ 420,000
Trail
12
Garvey Park Splash Zone
TBD — Cost is estimated placeholder only
$ 200,000
Improvements
Public Safety Substation
Remodel of the Public Safety Center including
13
(partial funding)
enhancement of technology and expansion of
$ 300,000
Emergency Operations Center (EOC) uses.
Replace aging SD pump station at Walnut Grove
Storm Drain Pump
Ave. and I-10 Fwy grade separation. The City
14
Station Replacement
contracts with LA County to perform annual repairs
$ 3,000,000
Walnut Grove Ave
and maintenance on this pump station. LA County
has reported that the pump station is near end of
service life and in need of replacement.
Implement wireless broadband internet service at
Wireless Internet at City
all City parks and facilities for public use. The 2020
15
Facilities and Parks
US Census indicates that 92.3% of households in
$ 250,000
Rosemead have computers and 84.5% of
households have broadband internet subscriptions.
Financial Tracking /
This cost represents the estimated staff time
16
Reporting
required for tracking, reporting, and auditing
$ 100,000
SLFRF activities through FY 2026.
$ 7,178,500
TOTAL
On March 8, 2022, the City Council elected to accept the $10 million standard allowance for
revenue loss provided through SLFRF. The $10 million has been transferred to a new fund to
City Council Meeting — American Rescue Plan Act Funds
April 26, 2022
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track the use of these funds. Staff anticipates the possible use of up to $4.5 million for General
Fund budget deficits through FY 2025-26. Although recent budgets were adopted anticipating
deficit positions for the fiscal year, year-end actuals provided better conditions and therefore, the
$4.5 million could be less than shown herein. Recommendations for consideration for use of the
remaining funds is as follows:
Pi-o-lect Title
Desci-II)tioll
Total Cost Est
This is a placeholder for anticipated budget operational
1
Anticipated Budget Deficits
deficits within the General Fund. The amount will be
$ 4,500,000
evaluated and adjusted each year as budgets are adopted
and ear -end numbers are finalized.
Construction Costs associated with remodel of the Public
Safety Center and addition of secured parking lot. Design
2
Public Safety Substation
and preparation of construction documents are approved
$ 1,700,000
under the FY 21-22 CIP budget and will be finalized by
end of FY 22-23.
Renovate outdated basement office area that house
3
City Hall Interior Renovation
Public Works, Finance, Human Resources, Code
$ 450,000
Enforcement, and Information Technology staff.
Renovate City Hall elevator to serve as a passenger and
4
City Hall Elevator and ADA
ADA compliant elevator and renovate basement
$ 400 000
Improvements
restrooms to comply with ADA requirements. (May also
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qualify for CDBG funding)
5
City Facilities Master Key
Replace master key locks with card reader access.
$ 175,000
Lock Replacement
Parks and Facilities Master
Analysis of City parks and facilities to determine
6
Plan
condition, deficiencies, community needs and
$ 250,000
development of projects and associated costs.
7
Garvey Park Parking Lot
Reconstruct deteriorated pavement and replace striping.
$ 360,000
Resurfacing
8
Rosemead Park Parking Lot
Cold Mill and AC overlay of deteriorated pavement
$ 275 000
Resurfacing
resurfacing of two parking lots serving Rosemead Park.
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Assess city wide irrigation system, explore recycled
9
Irrigation System Master
water opportunities, identify deficiencies, implement
$ 460,000
Plan
water efficient fixtures. 6 Parks, 2 Community Centers,
City Hall
City Council Meeting — American Rescue Plan Act Funds
April 26, 2022
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STAFF RECOMMENDATION
It is recommended City Council provide direction on the use of the remaining American Rescue
Plan Act State and Local Fiscal Recovery Funds.
FISCAL IMPACT
The fiscal impact of each item is contained within the body of this report. Final fiscal impact will
depend on items approved by the City Council. Items regarding new positions and capital projects
will be included in the FY 2022-23 Proposed Budget for final funding consideration.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
Paula Chamberlain, Interim Finance Director