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HomeMy WebLinkAboutItem 26 - Revive Santa Ana Resident Stimulus Program Community Development Agency www.santa-ana.org/cd Item # 26 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 16, 2021 TOPIC: Revive Santa Ana Resident Stimulus Program AGENDA TITLE: Approve Appropriation Adjustment of $2,600,000 and Award a Purchase Order to PrePaid USA in the Amount of $6,000,000 for the Revive Santa Ana Resident Stimulus Program (Revive Santa Ana Program) RECOMMENDED ACTION 1. Approve an appropriation adjustment to reallocate $2,600,000 from the ARPA-FMSA Reserve Appropriations account (no. 18110013-69001) to the ARPA-CDA expenditure account (nos. 18118013-various) for the Revive Santa Ana Resident Stimulus Program. (Requires five affirmative votes) 2. Award a Purchase Order to PrePaid USA in the amount of $6,000,000 for the purchase of 20,000 $300 pre-paid visa cards. DISCUSSION On July 20, 2021, the City Council authorized the Revive Santa Ana Spending Plan made possible by the American Rescue Plan Act (ARPA) through U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Funds (SLFRF). The spending plan is intended to protect and revive the Santa Ana community as it emerges from the impacts of the COVID-19 pandemic, and includes $4,000,000 for a resident direct assistance program for residents most affected by the pandemic. This program will provide direct resident assistance via $300 pre-paid visa cards (card) as an economic support to mitigate negative economic impacts of the pandemic. These cards will be accepted by Santa Ana businesses that accept Visa as a form of payment. Additional details regarding the program are located in the Revive Santa Ana Resident Stimulus Program Guidelines (Exhibit 1). Staff conducted a data-driven analysis of the areas of greatest need for economic support to establish the target areas for the Revive Santa Ana Resident Stimulus Program. The primary eligible areas for all Revive Santa Ana programs are the Housing and Urban Development Qualified Census Tracts (HUD QCTs). HUD QCTs are based on an Revive Santa Ana Resident Stimulus Program November 16, 2021 Page 2 2 2 4 3 algorithm that considers the following factors based on 2010 Census Data: household size, adjusted income, and poverty rates. A detailed breakdown of the algorithm used to designate the 2022 QCTs is available at https://www.huduser.gov/portal/qct/QCT_Algorithm.html. An additional data-driven tool to establish eligible focus areas is the Orange County Equity Map (OC Equity Map). The OC Equity Map is a data platform that spotlights social and health disparities in Orange County neighborhoods across multiple dimensions with a specific focus on the impact from COVID-19. The interactive map visualizes census tracts in the county and displays the scores from the Social Progress Index (SPI), CDC Health Indicators, and population demographic data as well as overlays additional information that can be customized for a variety of different use cases. The OC Equity Map is comprised of various COVID-19 vulnerability composite indicators including various health and comorbidity risk factors as well as social progress index factors such as housing overcrowding, poverty rates, and internet access. Staff conducted an analysis of the various vulnerability composite indicators utilizing the OC Equity Map and determined that poverty rates would be the most appropriate factor to base the focus of this economic support program. The City is composed of 62 individual census tracts, 14 of which are considered HUD QCTs. These 14 tracts have poverty rates that range from 47.1% to 81.6%; poverty rates for the city as a whole range from 20.6% to 81.6% with a median of 42%. The program targets households in economically disadvantaged areas as determined by HUD’s Qualified Census Tracts and the highest rates of poverty (above 42%) as identified by the OC Equity Map in the Revive Santa Ana Resident Stimulus Program Eligible Areas Map (Exhibit 2). The City recognizes the disproportionate impact of the pandemic in low- income, high poverty, dense and overcrowded living conditions, and as such will distribute the economic support to rental units in the target areas. There are approximately 20,000 rental units within the target area. To ensure that all of target households receive this economic support, an additional $2,600,000 of funding is needed to cover the cost of these efforts. Approval of the appropriation adjustment will make those needed funds available for the program. The costs include funding for direct support for residents and 10% for the administration of the program, inclusive of salaries, overtime, material and supplies to support the distribution efforts. Upon City Council approval and receipt of cards from the vendor, the cards will be distributed door-to-door by City staff starting in December. The plan for distribution has been coordinated with input from multiple departments to maximize safety and efficiency. Revive Santa Ana Resident Stimulus Program November 16, 2021 Page 3 2 2 4 3 An Invitation for Bid (IFB) for prepaid gift/debit cards was advertised on October 22, 2021 on the City’s online bid and management publication system. A summary of the IFB and bids received is as follows: 55 Vendors notified 2 Santa Ana vendors notified 8 Vendors downloaded the bid packet 3 Bids received 0 Bids received from Santa Ana vendors In addition to the official bid notification through the City’s PlanetBid system, staff conducted proactive outreach to four local credit unions and three financial institutions to encourage them to bid. The bids were received and opened on November 3, 2021, and evaluated (Exhibit 3). The bid submitted by PrePaid USA located in Corona, California was determined to be responsive and met the City’s requirements. ARPA Eligibility Analysis The program responds to negative economic impacts caused by the public health emergency by providing direct assistance to households classified as Expenditure Category (EC) 2.3 Household Assistance: Cash Transfers. The City will provide cash assistance via a card to a population that is low- or moderate-income meeting the presumed benefit criteria based on HUD’s Qualified Census Tracts and Census Tracts and with poverty rates of over 42%. FISCAL IMPACT Funds in the amount of $4,000,000 are currently available and in the ARPA-CDA program accounting unit. Approval of the appropriation adjustment will reallocate $2,600,000 from the ARPA-FMSA Reserve Appropriations account (no. 18110013-69001) to the ARPA- CDA expenditure account (nos. 18118013-various), for expenditure as follows: Fiscal Year Accounting Unit- Account # Fund Description Accounting Unit, Account Description Amount FY 21-22 (Dec.-June) 18118013- Various American Rescue Plan Act (ARPA) ARPA-CDA, Various $6,600,000 Total $6,600,000 EXHIBIT(S) 1. Revive Santa Ana Resident Stimulus Program Guidelines 2. Revive Santa Ana Resident Stimulus Program Eligible Areas Map 3. Bid Abstract: IFB No. 21-126A: Prepaid Gift-Debit Cards Revive Santa Ana Resident Stimulus Program November 16, 2021 Page 4 2 2 4 3 Submitted By: Steven Mendoza, Assistant City Manager Approved By: Kristine Ridge, City Manager City of Santa Ana Page 1 of 3 Revive Santa Ana Resident Stimulus Program - NOV 2021 Program Guidelines The Revive Santa Ana Resident Stimulus program provides $300 pre-paid visa cards as an economic support to mitigate negative economic impacts of the pandemic. The support is targeted to rental households in economically disadvantaged areas as determined by HUD’s Qualified Census Tracts and Census Tracts and to areas with poverty rates of over 42%. Funding for this program is made possible by the American Rescue Plan Act (ARPA) through U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Funds (SLFRF) allocated to the City of Santa Ana. I.Program Eligibility Coronavirus Local Fiscal Recovery Fund Section 603(c)(1)(a) provides that funds may be used to respond to the public health emergency or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality. The program responds to negative economic impacts caused by the public health emergency by providing direct assistance to households classified as Expenditure Category (EC) 2.3 Household Assistance: Cash Transfers. Per the interim final rule, in assessing whether a household or population experienced economic harm as a result of the pandemic, a recipient may presume that a household or population that experienced unemployment or increased food or housing insecurity or is low- or moderate-income experienced negative economic impacts resulting from the pandemic. The City will provide cash assistance via a pre-paid visa cards to a population that is low- or moderate-income meeting the presumed benefit criteria. The support will be disbursed to rental households in economically disadvantaged areas as determined by HUD’s Qualified Census Tracts and Census tracts and Census Tracts in areas with poverty rates of over 42%. (See Revive Santa Ana Resident Stimulus Program Eligible Areas Map) The City recognizes the disproportionate impact of the pandemic in low-income, high poverty, dense and overcrowded living conditions, and as such is targeting the distribution of the cash assistance to rental units in the target areas. II.Size of the cash assistance: The Revive Santa Ana Business Program will provide $300 in the form of a pre-paid visa card. EXHIBIT 1 City of Santa Ana Page 2 of 3 Revive Santa Ana Resident Stimulus Program - NOV 2021 III.Eligible households/housing units: Eligible households for this assistance include rental units registered with the City of Santa Ana’s Proactive Rental Enforcement Program (PREP) located in the Revive Santa Ana Resident Stimulus Program Eligible Areas Map. The PREP promotes public health, safety, and welfare through a systematic proactive code enforcement effort towards residential rental property throughout the City of Santa Ana. Property owners who enter into the residential property rental business are imposed a rental surcharge to pay the enforcement costs of the PREP program including inspection and administration. PREP promotes an environment in which unhealthy conditions and life safety hazards are reduced for occupants of residential rental property by identifying and correcting code violations. Santa Ana Residents that are renting a housing unit in Santa Ana that is not registered with the City as a PREP unit, but is within the eligible areas as determined by the Revive Santa Ana Resident Stimulus Program Eligible Areas Map, may be eligible for the assistance payment subject to funding availability. Residents may contact the City’s Economic Development Division for additional information. IV.Disbursement of cash assistance: The distribution will be conducted to rental units in Census Tracts with at least 40% poverty rate per the Revive Santa Ana Resident Stimulus Program Eligible Areas Map. Distribution will commence in the census tracts with the areas indicating the highest rates of poverty. City staff will visit each rental unit to provide the cash assistance. Staff will knock on the door and request to speak with a responsible party to the household to provide program information and the cash assistance via the $300 pre-paid visa cards. If a responsible party is not home, the City will mail program information to the household, inclusive of card pick-up options. V.Household eligibility requirements to receive cash assistance: To receive the cash assistance a recipient will need to do the following: •Present identification •Provide a phone number •Sign a certification/attestation log to document the following: o Recipient is a responsible party living in the household o Receipt of the cash assistance (gift/debit card) VI.Limit on number of pre-paid visa cards per household: There is a limit of one gift card per household. City of Santa Ana Page 3 of 3 Revive Santa Ana Resident Stimulus Program - NOV 2021 VII.Program contact information: City of Santa Ana Community Development Agency Economic Development Division Text/Call: (Pending) Email: (Pending) ____@santa-ana.org ?ìE ?ìE !"^$ ?sE %&l( ?uE EUCLID STBRISTOL STSANTA ANA BLVD EDINGER AV BRISTOL STSUNFLOWER AV WARNER AV RED HILL AVLA VETA AV HARBOR BLVDHARBOR BLVDRAITT STRAITT STWASHINGTON AV NEWHOPE STW A R N E R A V 1ST ST 1ST ST 1ST ST TUSTIN AVSEGERSTROM AV 17TH ST 17TH ST FAIRVIEWSTFAIRVIEW STFAIRVIEW STBRISTOL STMAIN STMAIN STMAIN STFLOWER STCIVIC CENTER DR SANTA CLARA AV SANTA CLARA AV FAIRHAVEN AV A L T O N A V GARDEN GROVE BLVD GRAND AVGLASSELL STEDINGER AV EDINGER AV D Y E R R D WESTMINSTER AV MC FADDEN AV MC FADDEN AV GRAND AVDYER RDFLOWER STFLOWER STWARNER AV MACARTHUR BLVD M A C A R T H U R B L V DBROADWAYBROADWAYBROADWAYSanta AnaRiverSanta Ana RiverSanta AnaRiver740.05 Units: 568 741.06 Units: 827 741.02 Units: 268 740.03 Units: 848 740.06 Units: 1039 741.03 Units: 83 740.04 Units: 960 742 Units: 386 741.10 Units: 86 744.03 Units: 804 741.11 Units: 205 741.07 Units: 1579 741.09 Units: 178741.08 Units: 168 743 Units: 114 745.02 Units: 313 746.02 Units: 662 746.01 Units: 627 744.07 Units: 483 747.01 Units: 426 745.01 Units: 629 744.06 Units: 413 744.05 Units: 978 748.02 Units: 236 749.02 Units: 696 748.01 Units: 268 748.05 Units: 740 748.03 Units: 178 749.01 Units: 995 747.02 Units: 320 748.06 Units: 389 753.01 Units: 743 750.02 Units: 1549 751 Units: 1064 752.01 Units: 290 750.04 Units: 1103 750.03 Units: 1455 753.02 Units: 361 752.02 Units: 319 754.01 Units: 87 755.16 Units: 335 754.03 Units: 707 754.04 Units: 1047 754.05 Units: 362 755.04 Units: 263 753.03 Units: 252 759.02 Units: 236 890.04 Units: 586 890.01 Units: 311 760.02 Units: 183 758.06 Units: 6 891.02 Units: 71 757.01 Units: 740 889.03 Units: 85 992.03 Units: 91 891.05 Units: 591 992.47 Units: 248 992.48 Units: 626 891.07 Units: 78 992.49 Units: 346 891.04 Units: 185 992.02 Units: 513 I 0 ½ 1¼ Miles Qualified Census Tracts (2022) Poverty Rate by 2020 Census Tract Below 42%- NOT ELIGIBLE 42% - 49% 50% - 59% 60% - 69% 70% -79% 80%+ Resident Stimulus Program Eligible Areas Map Units: Lists No. of PREP Units by Census Tract | EXHIBIT 2 Vendor Location Respondee Respondee Title Vendor Type PrePaid USA Corona, CA Marisol Arenas Sales Executive SOCB Perfect Gift LLC Pittsburgh, PA Jenny Schutt Account Executive Blackhawk Network Inc Pleasanton, CA Michael Penza Inside Sales Representative Vendor Card Type Total Card Load Value Total Processing Fee Activation Fee Available Discounts Applied CRA Credits Payment Terms Standard Shipping Fee Ground Delivery Standard Shipping Fee Overnight Delivery Total Amount with Standard Shipping Total Amount with Overnight Shipping PrePaid USA Visa 6,000,000.00 ($300 per card) 0 None 1.99 per card (waived processing fee)NA Vendor is willing to accept 50% of payment upfront, and 50% of payment upon receivng the cards. Perferred Payment Type: ACH/Wire Transfer Waived Waived 6,000,000 6,000,000 Perfect Gift LLC MasterCard and Visa 6,000,000.00 ($300 per card) 0 None 3.50 per card (waived processing fee)No Prepayment in full is required to receive all cards. Preferred Payment Type: ACH/Wire Waived 3,200 6,000,000 6,003,200 Blackhawk Network Visa 6,000,000.00 ($300 per card) .99 cents per card (19,800) None 3.00 per card (reduced processing Fee) No Prepayment in full is required to receive all cards. Preferred Payment Type: ACH/Wire Waived Waived 6,019,800 6,019,800 CITY OF SANTA ANA Issued On: 11/4/2021 Vendor Information Bid Information Bid Abstract: IFB No. 21-126A: Prepaid Gift-Debit Cards EXHIBIT 3 Revive Santa Ana Resident Stimulus Program Community Development Agency November 16, 2021 Slide 1 Revive Santa Ana Resident Stimulus Program Item # 26 Revive Santa Ana Resident Stimulus Program Community Development Agency November 16, 2021 Slide 2 Resident Stimulus Program •Provides direct economic support to residents •$300 pre-paid Visa cards to be distributed to 20K households ($6M total) •Federally Funded by American Rescue Plan Act (ARPA) Revive Santa Ana Resident Stimulus Program Community Development Agency November 16, 2021 Slide 3 Eligibility •Data driven approach focusing on the disproportionate impact of the pandemic in low-income, high poverty, dense and overcrowded living conditions •Targets renters in units located in HUD Qualified Census Tracts and areas above the median poverty rate (42%) per the OC Equity Map Revive Santa Ana Resident Stimulus Program Community Development Agency November 16, 2021 Slide 4 Eligible Areas Map Revive Santa Ana Resident Stimulus Program Community Development Agency November 16, 2021 Slide 5 Revive Santa Ana Resident Stimulus Program Community Development Agency November 16, 2021 Slide 6 Distribution •To commence December 4th in census tracts with highest rates of poverty •Door-to-door distribution by City staff to heads of household (18+) •Arrangements will be made for households unavailable during distribution Revive Santa Ana Resident Stimulus Program Community Development Agency November 16, 2021 Slide 7 Estimated Program Costs •$6,000,000 –Direct assistance / pre-paid Visa cards •$600,000 (10% estimated) –Distribution efforts –Program administration –Material and supplies Revive Santa Ana Resident Stimulus Program Community Development Agency November 16, 2021 Slide 8 Thank you.