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Item # 29
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
July 20, 2021
TOPIC: Revive Santa Ana Spending Plan
AGENDA TITLE:
Approve the $80,012,101 Revive Santa Ana Spending Plan and Appropriate Federal
American Rescue Plan Act (ARPA) Funding
RECOMMENDED ACTION
1. Approve the $80,012,101 Revive Santa Ana Spending Plan to protect and revive
our community as we emerge from the impacts of the COVID-19 pandemic.
2. Approve an appropriation adjustment of $64,180,000 to authorize spending from
the federal American Rescue Plan Act (ARPA) for various expenditures to recover
from COVID-19, including authorization for the City Manager to move appropriated
money between spending plan line items to reflect evolving federal guidelines and
individual program popularity.
DISCUSSION
The Revive Santa Ana Spending Plan was presented to the City Council for approval at
the July 6, 2021 meeting and the City Council voted to continue the item to the July 20,
2021 Council meeting. Following the July 6 meeting, staff met with members of the City
Council individually to review the plan in greater detail. The fiscal impact and Exhibit 1 of
the staff report have been updated to reflect further direction staff received from the City
Council.
In summary, the following changes were made:
Increased Mental Health Recovery from $750,000 to $1,000,000
Increased Early Childhood Support from $500,000 to $1,000,000
Increased After-School / Youth Sport Programs from $300,000 to $500,000
Expanded Project Scope of Parking Structure Improvements to Include Safety
Enhancements and increased project amount from $500,000 to $1,000,000
Reduced Reserve for Revenue Loss Allocation from $10,430,000 to $8,980,000
Changed the lead agency for the COVID-19 Memorial Project from CMO to CDA
Changed from a single lead agency for Youth Violence / Sexual Assault
Intervention to a collaboration between PRCSA and PD
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Staff recommends that the City Council approve the revised Revive Santa Ana Spending
Plan.
Background
The American Rescue Plan Act (ARPA) of 2021 is the latest COVID-19 stimulus package
approved by the U.S. Congress and signed into law by President Biden. ARPA is a $1.9
trillion economic stimulus bill. Within ARPA, the Coronavirus State and Local Fiscal
Recovery Fund provides $350 billion in direct funding for states, municipalities, counties,
tribes, and territories, including $130.2 billion for local governments split evenly between
municipalities and counties. Of this, the City of Santa Ana is expected to receive
$128,360,813. The City has received its first of two payments from the U.S. Department
of the Treasury, in the amount of $64,180,000.
Coronavirus State and Local Fiscal Recovery Fund
The Coronavirus State and Local Fiscal Recovery Fund provides a substantial infusion of
resources to help turn the tide on the COVID-19 pandemic, address its economic fallout,
and lay the foundation for a strong and equitable recovery. The purpose of the use of
these funds are as follows:
Support urgent COVID-19 response efforts to continue to decrease spread of the
virus and bring the pandemic under control.
Replace lost revenue for eligible state, local, territorial, and Tribal governments to
strengthen support for vital public services and help retain jobs.
Support immediate economic stabilization for households and businesses.
Address systemic public health and economic challenges that have contributed to
the unequal impact of the pandemic.
The Coronavirus State and Local Fiscal Recovery Fund provides substantial flexibility for
each local government to meet local needs—including support for households, small
businesses, impacted industries, essential workers, and the communities hardest hit by
the pandemic. These funds can be used to make necessary investments in water, sewer,
and broadband infrastructure, among other uses. As a recipient of these funds, the City
has been working diligently to find the best way to use the City’s allocation of the
Coronavirus State and Local Fiscal Recovery Fund. To that end, the City created Revive
Santa Ana, a community engagement initiative and spending plan to use the expected
$128,360,813 in federal funding.
Revive Santa Ana Spending Plan
City staff launched the Revive Santa Ana Spending Plan mid-March 2021, referring to the
City’s direct allocation as “Revive Santa Ana” funding. The spending plan includes five
expenditure categories:
Recovery from the Pandemic:
o Public Health Equity, expansion of critical communication methods,
sanitization, emergency response, mental health recovery, and a COVID-
19 memorial, support services for COVID-19 response
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Direct Assistance Programs:
o Rental assistance, housing vouchers, food supply/distribution, business
and non-profit assistance, early childhood support, daycare and head start,
after-school programs, youth violence, sexual assault intervention,
technology skill courses, direct resident assistance
Public Health and Safety:
o 5k Run, additional green/open space, healthy food access, property
compliance programs, rapid response homeless services, park restrooms,
increased security for parks and community centers, First Street safety
enhancements
Critical Infrastructure:
o Broadband access, community center renovations, transformation of
Central Library to support early childhood learning, expansion of library
accessibility, IT and process upgrades, streetlights, storm drain gates,
parking structure improvements
City Fiscal Health:
o Legal support services, contract management, unemployment fund / paid
leave reimbursement, accounting and compliance for federal funding,
reserve for revenue loss allocation
Community Engagement
The first engagement opportunity was a community budget meeting on March 25, 2021,
whereby community members were able to give input on the proposed spending plan.
Additionally, the City launched a community feedback survey, available in English,
Spanish, and Vietnamese, to gauge the community’s thoughts on how the City should
spend its Revive Santa Ana funding. The survey was available online and was distributed
on the City’s digital communications channels. Additionally, print surveys were available
and shared at the City’s main library and at City Hall. In total, 1,579 responses were
collected. The findings of the survey were shared with the City Council.
Separately, the City Council discussed Revive Santa Ana at several public meetings,
including on March 16, May 18, May 24, June 1, and June 3, 2021. Several iterations of
the Revive Santa Ana Spending Plan have been shared and discussed, whose changes
reflect discussions by the City Council, comments from community members, and
changing guidance from the U.S. Department of the Treasury relating to how the funds
could be expended.
Appropriation of Funds
Below are the final Revive Santa Ana Spending Plan allocations for each of the proposed
expenditure categories for the first allocation (for FY 2021-22):
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Expenditure Category Amount
Recovery from the Pandemic $5,400,000
Direct Assistance Programs $26,832,101
Public Health and Safety $16,350,000
Critical Infrastructure $21,250,000
City Fiscal Health $10,180,000
Total $80,012,101
Staff recommends that the City Council approve the $80,012,101 Revive Santa Ana
Spending Plan, and appropriate the City’s primary ARPA allocation of $64,180,000 (first
tranche only). The appropriation recommendation for the $14,026,593 Emergency Rental
Assistance Program was approved by the City Council at the July 6, 2020 meeting. The
remaining $1,805,508 of the $80,012,101 spending plan is for federal housing vouchers,
scheduled for City Council consideration is in a separate staff report on this same agenda.
Staff anticipates the spending plan will evolve, as the U.S. Department of Treasury is
continually updating the spending guidelines and program popularity and use will affect
spending priorities. Similar to the spending authorization for the Coronavirus Aid, Relief
and Economic Security (CARES) Act, staff requests the City Council grant authorization
to the City Manager to shift money between line items within the spending plan. The
City Manager will not have the authority to increase or decrease the overall
appropriation.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
Multiple departments will manage the various spending initiatives, and accounting units
have been set-up accordingly in the new ARPA special revenue fund 181 to account for
$64,180,000 of expenditures.
Department Account Number Amount
City Attorney’s Office 18108013-6XXXX $500,000
City Manager’s Office 18103013-6XXXX 4,200,000
Community Development 18118013-6XXXX 10,200,000
Finance 18110013-6XXXX 11,180,000
Information Technology 18120013-6XXXX 5,500,000
Library 18111013-6XXXX 9,000,000
Parks and Recreation 18113013-6XXXX 13,850,000
Planning and Building 18116013-6XXXX 1,000,000
Police 18114013-6XXXX 500,000
Public Works 18117013-6XXXX 8,250,000
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First Tranche of Primary Allocation $64,180,000
EXHIBIT
1. Revive Santa Ana Spending Plan
Submitted By: Kathryn Downs, Executive Director Finance and Management Services
Approved By: Kristine Ridge, City Manager
Project First Amount Primary (Lead) ‐ DeptDescriptionMental Health Recovery $ 1,000,000.00 CDA Community mental health supportive services, such as Be Well OC, and a free mental health hotline.Memorial to Lives Lost $ 200,000.00 CDA Under the purview of the Arts and Culture Commission.Local Vaccinations/Education Collaboration $ ‐ CMO Collaboration to support local vaccination sites and education regarding vaccination, funding through an HHS Grant.Feasibility of Public Health Department $ 200,000.00 CMO Resources to conduct a feasibility study of establishing a Santa Ana Public Health Department.Local Health Clinics $ ‐ CMO Supportive contributions to clinics serving neighborhoods hardest hit by the pandemic, funding through an HHS Grant.Expansion of Critical City Communications Methods $ 2,000,000.00 CMO Includes digital signs at neighborhood park sites, informational kiosks and translation subscription service.Sanitization & Prevention $ 500,000.00 PWA Precautionary measures to reduce the spread of COVID‐19 and variants.COVID Emergency Response $ 1,500,000.00 Finance EMT Response through OCFA. $ 5,400,000.00 Early Childhood Support & Head Start & Child/Day Care $ 1,000,000.00 PRCSA Partner with non‐profits to provide early childhood programs with an emphasis on arts.After‐School / Youth Sport Programs $ 500,000.00 PRCSA Partner with non‐profits to provide healthy youth activities and homework assistance.Emergency Rental Assistance Program* $ 14,026,593.00 CDA Additional rental assistance programs.Emergency Rental Assistance Program from STATE* ‐ CDA Additional rental assistance programs.HOME program for Homeless* ‐ CDA Additional rental assistance programs.Emergency Housing Vouchers* $ 1,805,508.00 CDA Additional rental assistance programs.Food Supply / Distribution $ 1,000,000.00 CMO Assistance to retain local food distribution programs and supplement food supplies.Business/Non‐Profit Assistance $ 3,000,000.00 CDAAssistance to small businesses struggling to open or stay open and for local nonprofits, artists and art organizations struggling to meet service needs.Youth Violence/Sexual Assault Intervention/Reentry $ 1,000,000.00 PRCSA/PD Resources to interrupt youth violence, sexual assault and reentry programs.Technology Skills / Digital Literacy Education $ 500,000.00 Library Educational library programming to increase digital literacy and promotion of available technology tools.Resident Direct Assistance $ 4,000,000.00 CDA Resourse for a two‐part resident assistance program consisting of grocery gift cards and a basic income program for the hardest hit census tracts.* Not ARPA Funded $ 26,832,101.00 ‐ Revive 5k Run $ 50,000.00 PRCSA/Library Funds to restore the 5k scheduled for October 23, 2021.First Street Pedestrian Safety Project $ 3,000,000.00 PWA Resources for safety improvements near grade seperation off First/Grand. Addition of Park/Open Space $ 7,800,000.00 PRCSAExpansion of green space and addition of other healthly activities such as a seasonal ice rink and/or skate rink.Reserved for Santa Ana Zoo Safety Renovations ‐ Address highest priority safety issues.Healthy Food Access $ 1,000,000.00 CMO A central Farmers Market for healthy food choices and resources for community garden start ups.Property Compliance/Assistance Program $ 1,000,000.00 PBAEnhanced collaborative enforcement along with façade improvement programs for shopping centers with vacant store fronts in qualified census tracts.Rapid Response Homeless Services $ 1,000,000.00 CDA Create program to redirect 911 calls to nonprofit provider to address homeless requests for services and add part‐time coordinator.Upgrade Park Restrooms $ 1,500,000.00 PRCSA Resources to replace outdated restrooms in public parks with facilities to minimize viral contagions.Enhanced security for usability of Parks/Community Centers $ 1,000,000.00 PRCSA Funds for security enhancement in public parks, community centers and trails. $ 16,350,000.00 Parking Structure Improvements & Safety Enhancements $ 1,000,000.00 CDA Refurbish City owned parking structures and provide additional security enhancements to spur economic activity.Broadband Access $ 3,500,000.00 IT Conduct initial study to determine broadband access deficiencies and deploy resources, if permitted, to mitigate the deficiencies.Community Center Renovations $ 1,500,000.00 PRCSAFunding for upgrading of Corbin Center, Logan Center, El Salvador Center, Sandpointe Center, Santa Anita Center and Delhi Center. Upgraded facilities will allow for expansion of programming and improve facility and community image.Transformation of Central Library to support early childhood learning $ 7,000,000.00 Library Resources to completely transform the Central Library including a focus on early childhood activities.New Library Branch/Expansion of Library Accessibility $ 1,500,000.00 LibraryFunding to improve library accessibility.Pedestrian & Mobility Improvements $ 3,000,000.00 PWA Resources for alleys, sidewalks, traffic calming, curb & gutter, and resurfacing for areas in greatest need.Information Technology & Process Upgrades $ 2,000,000.00 ITImprovement of City technology and processes to better serve the community.Neighborhood Safety Streetlights $ 1,000,000.00 PWA Provides for 250 lights.Storm Drain Gates & Channel Fencing $ 750,000.00 PWA $ 21,250,000.00 Legal Support Services & Contract Management Support $ 500,000.00 CAO Additional funding for increased legal services workload related to Revive Santa Ana agreements.Unemployment Fund/Paid Leave Reimbursement $ 500,000.00 Finance Includes unemployment costs and COVID‐19 related employee leave.Accounting & Compliance for Federal Funding $ 200,000.00 Finance Dedicated accounting staff for ARPA.Reserve for Revenue Loss Allocation $ 8,980,000.00 Finance Includes Hotel Visitors Tax and Business Tax losses. $ 10,180,000.00 1st TrancheUpdated Allocation $ 64,180,000.00 $ 15,832,101.00 $ 80,012,101.00 Revive Santa Ana Spending PlanCity Fiscal HealthCritical InfrastructurePublic Health & SafetyDirect Assistance ProgramsRecovery from the Pandemic
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