ARP Memo

City of City Manager's Office
10000 North El Mirage Rd., El Mirage 85335

EL MIRAGE 623-972-8116; TDD 623-933-3258

Arizona
www.elmirageaz.gov
GRAND HERITAGE, BRIGHT FUTURE!

MEMORANDUM
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: CITY MANAGER J. CRYSTAL DYCHES

SUBJECT: | CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS (CSLFRF)
DATE: AUGUST 25, 2021

BACKGROUND: The American Rescue Plan (ARP) Act passed in March 2021 provides $1.9 trillion in overall national
spending to support relief and economic recovery efforts. A total of $350 billion in assistance was allocated to local
governments to respond to replenish lost revenue, cover increased expenditures, and mitigate economic harm from the
COVID-19 pandemic.

The City of El Mirage will receive $11,940,792 in Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) from
the ARP Act. In June, the City received a payment of $5,970,395.91 and will receive an equal payment next year. The
City may spend the funds through December 31, 2024. The City of El Mirage received funding as a Non-entitlement unit
of local government (NEU), defined in section 603(g)(5) of the Social Security Act, as added by section 9901 of the
American Rescue Plan Act of 2021, are local governments typically serving populations of less than 50,000.

At the August 17 Worksession, staff sought policy guidance on how to strategically distribute the Coronavirus State and
Local Fiscal Recovery Funds. Based on City Council discussion, staff drafted Resolution R21-09-22 stating the intended
uses of the Coronavirus State and Local Fiscal Recovery Funds allotment.

ELIGIBLE USE: REPLENISHMENT OF LOST REVENUE

The CSLFRF allows Cities to replace lost revenue to strengthen support for vital services, such as the maintenance or
building of roads. Based on the revenue loss calculation, El Mirage’s lost revenue is $6,160,155. Staff recommends
applying the lost revenue funds to the following:

Northern Parkway Corridor

The Northern Parkway project extends 12.5 miles between Loop 303 and US 60 in northwestern Maricopa County.
When completed, Northern Parkway will be a high capacity, limited access roadway with overpasses at major
intersections. The project is a partnership between Maricopa County, the Cities of El Mirage, Glendale and Peoria, and
the Maricopa Association of Governments (MAG).

FY22 Allocation FY23 Allocation FY24 Allocation FY25 Allocation Total
$0 $500,000 $5,470,000 $5,970,000

Roadway Drainage Improvements (1st Avenue)

This project would include a drainage area study of the west downtown area of El Mirage to determine the amount of
runoff that is generated and how best to manage it. The project would also include the design and construction of a
stormwater management system at the cul-de-sac of Ist Avenue and the adjacent Gentry Park.

FY22 Allocation FY23 Allocation FY24 Allocation FY25 Allocation Total
$0 $130,000 SO $0 $130,000

Roadway Drainage Improvements (Peoria and Dysart)

This project would include an area drainage study to determine the tributary area and stormwater flows that reach the
intersection of Peoria Avenue and Dysart Road. The project would also include the design of the necessary
infrastructure in order to route and store the runoff appropriately.

FY22 Allocation FY23 Allocation FY24 Allocation FY25 Allocation Total
$0 $60,000 $0 $0 $60,000

ELIGIBLE USE: RESPONDING TO PUBLIC HEALTH & SAFETY NEEDS

The CSLFRF allows Cities to cover increased expenditures to address public health and safety. Recovery Funds can be
used to support a public health response; and to address public safety, in communities where an increase in violence or
increased difficulty in accessing or providing services to respond to or mitigate the effects of violence, is a result of the
pandemic they may use funds to address that harm. Staff recommends applying $3,673,292 of funding to the following:

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FY22 Allocation FY23 Allocation FY24 Allocation FY25 Allocation

Vehicles $300,000 $0 $0 $0 $300,000
Personnel $310,846 $414,462 $414,462 $207,230 $1,347,000
Total $1,647,000

FY22 Allocation FY23 Allocation FY24 Allocation FY25 Allocation Total
$321,230 $428,308 $428,308 $214,154 $1,392,000

Paramedic/Firefighter
These Firefighter/Paramedics will be able to administer vaccines and assist with the public health emergency due to the
pandemic. This includes two (2) Firefighter/Paramedics positions to work a 40-hour week.

FY22 Allocation FY23 Allocation FY24 Allocation FY25 Allocation Total
$108,140 $186,461 $186,461 $93,230 $574,292

Emergency Operations Center

This funding is for changing the audiovisual components in the Fire Station community room that also functions as the
City's Emergency Operations Center (EOC). This communication project will assist in responding to specific
pandemic-related public health needs.

FY22 Allocation FY23 Allocation FY24 Allocation FY25 Allocation Total
$50,000 $0 $0 $0 $50,000

ELIGIBLE USE: RESPONDING TO NEGATIVE ECONOMIC IMPACTS FROM THE PANDEMIC

The CSLFRF allows for a broad range of uses to address the disproportionate public health and economic impacts of the
crisis on the hardest-hit communities, populations, and households. This includes the immediate economic stabilization
for households and businesses. Staff recommends applying $2,057,500 of funding to the following:

Utility, Rent and Mortgage Assistance

The COVID-19 pandemic is intensifying an already existing housing crisis. This would allow funding of emergency
residential rental, mortgage and utility assistance, including electric and City utilities for those who do not qualify for
the Emergency Rental Assistance Program (ERAP). The Community Action Program (CAP) Office will first use
available CAP funding and then turn to CSLFRF funds. The City will use 80 to 100% Area Median Income (AMI) for
these funds based on qualifications that were used during the pandemic to meet the needs of the most people. This will
serve as homeless prevention and provide support to El Mirage residents as eviction and utility moratoriums come to an
end. The funding allocation will also include a half-time staff position with the City of Surprise to help administer the
funding that will work at the El Mirage CAP office.

FY22 Allocation FY23 Allocation FY24 Allocation FY25 Allocation Total
$450,000 $235,000 $0 $0 $685,000

Home Repair Assistance and Weatherization Program

The City will partner with a not-for-profit organization to provide emergency assistance to households, who
experienced economic harm as a result of the pandemic, for home repair and weatherization. This funding will support
healthy living environments. Some of the funds will be used for administrative costs.

FY22 Allocation FY23 Allocation FY24 Allocation FY25 Allocation Total
$0 $165,000 $165,000 $0 $330,000

Phoenix Rescue Mission

Funding will be used to address the housing or health needs of people experiencing homelessness. The City will seek
to contract with Phoenix Rescue Mission for homeless outreach, navigation and wrap around support services for the
City’s homeless population including veterans and those with PTSD. The program will be beneficial for the homeless
and will assist our Police Department and Community Services staff to meet the needs of those in our community
experiencing homelessness, which has increased due to the pandemic.

FY22 Allocation FY23 Allocation FY24 Allocation FY25 Allocation Total
$30,000 $30,000 $30,000 $15,000 $105,000

J-HELP

Interfaith Homeless Emergency Lodging Program (I-HELP). I-HELP provides a safe place to sleep and a hot meal for
adults experiencing homelessness every night of the week. I-HELP also offers case management services to connect
individuals to the vital resources needed to regain stability and break the vicious cycle of homelessness. In 2019, the
City Council passed RESOLUTION R19-04-08 supporting the I-HELP model for the far Northwest Valley with the
overall objective being that individuals experiencing homelessness can move into appropriate housing, leading to
increased prosperity and improved health outcomes through the I-HELP program. The need for this program has
increased throughout the pandemic.

FY22 Allocation FY23 Allocation FY24 Allocation FY25 Allocation Total
$5,000 $5,000 $5,000 $0 $15,000

Senior Meals

Funding will provide approximately twenty-five (25) meals each day to seniors in El Mirage. These meals will be
served at the El Mirage Senior Center. This meets the funding criteria of responding to the negative economic impacts
of the public health emergency by assisting with food.

FY22 Allocation FY23 Allocation FY24 Allocation FY25 Allocation Total
$35,000 $35,000 $35,000 $17,500 $122,500

Transit

The City has seen an increase in the use of paratransit and dial-a-ride as residents return from pandemic lifestyles and
had used provided additional services with these funds during the pandemic to ensure our disabled and elderly residents
were able to access to groceries, medical appointments, and work. As we transition, this has included ensuring access to
vaccine appointments. To maintain social distancing, staff recommends funding the purchase a new bus.

FY22 Allocation FY23 Allocation FY24 Allocation FY25 Allocation

Dial-A-Ride $90,000 $90,000 $80,000 $0 $260,000
Bus $75,000 $0 $0 $0 $75,000
Total $335,000

Library Expansion for Workforce Development

Funding will be used to add an addition (1,100 sq. ft.) to the El Mirage Library renovation. This addition will provide
broadband and computer access to residents, specifically focusing on those who lost jobs due to the pandemic. The
employment-focused computer and broadband community room will have stations that provide job site search engines,
resume builders, free email sites, and access to popular online interview and meeting sites such as Zoom, Skype, and
Microsoft Teams to increase access to these tools for community members. There will also be spaces available for quiet
interviews for those who need to do online interviews but lack a home computer or the privacy. To meet the
construction timeline, Council will need to authorize City Manager to engage with Architect for engineering
immediately.

FY22 Allocation FY23 Allocation FY24 Allocation FY25 Allocation Total

$475,000 $0 $0 $0 $475,000

Small Business Hazard Mitigation
Small Business Hazard Mitigation Program to mitigate public health hazards.

FY22 Allocation FY23 Allocation FY24 Allocation FY25 Allocation Total
$40,000 $0 $0 $0 $40,000

SUMMATION: The City has received one-time resources through the American Rescue Plan Act. The resources will
allow us to replenish lost revenue, cover increased expenditures, and respond to negative economic impacts from the
pandemic. While certain of the expenses listed above are clearly eligible under the Interim Final Rule guidelines, some
may need to be further reviewed. Staff is looking forward to having further City Council discussions regarding the
strategic deployment of the Coronavirus State and Local Fiscal Recovery Funds as agreements, contracts and programs
are brought forward for consideration.

RESOLUTION R21-09-22

A RESOLUTION OF THE MAYOR AND COUNCIL OF THE CITY OF
EL MIRAGE, MARICOPA COUNTY, ARIZONA, STATING THE INTENDED
USES OF THE CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY
FUNDS (CSLFRF) ALLOTMENT THROUGH THE AMERICAN RESCUE
PLAN ACT.

WHEREAS, on March 11, 2021, the United States Congress passed the American
Rescue Plan Act of 2021 (ARPA), which provides fiscal relief funds to State and Local
Governments, and other program areas aimed at mitigating the continuing effects of the
COVID-19 Pandemic; and,

WHEREAS, ARPA is intended to provide support to local governments in responding
to the impact of pandemic; and,

WHEREAS, ARPA includes Coronavirus State and Local Fiscal Recovery Funds to
support urgent COVID response efforts to decrease the spread of the virus; to replace lost
public sector revenue to strengthen support for vital public services; to support immediate
economic stabilization for households and businesses; and to address systemic public health
and economic challenges that have contributed to inequal impacts of the pandemic on certain
populations; and,

WHEREAS, the United States Department of Treasury has adopted the Interim Final
Rule as guidance regarding the use of ARPA Funds; and,

WHEREAS, the City of El Mirage received this first tranche of funds, which is five
million, nine hundred seventy thousand, three hundred ninety-five dollars, and ninety-one cents
($5,970,395.91) in June 2021; and

WHEREAS, the City of El Mirage as the recipient accepts the award of Coronavirus
State and Local Fiscal Recovery Funds up to the maximum allowed; and

WHEREAS, City staff presented background information about the proposed uses of
the funds to the City Council at a worksession on August 17, 2021; and

WHEREAS, this Resolution is intended as a statement of intent of the Council to
expend the City’s ARPA Funds in accordance with Federal Law and guidance, for the current
critical needs and priorities for which there is consensus as set forth below.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of El
Mirage:

1. Authorize the City Manager, subject to provision ten (10) of this Resolution, to spend
funds in compliance with the American Rescue Plan Act of 2021 and in accordance with

guidance from the U.S. Department of Treasury for the Coronavirus Local Fiscal
Recovery.

. Expenditure of Lost Revenue on Governmental Services. It is the intent of the Council
that funds from Coronavirus State and Local Fiscal Recovery Funds be prioritized and
expended for governmental services as follows:

a. Northern Parkway Corridor
b. Roadway Drainage Improvements at lst Avenue
c. Roadway Drainage Improvements at Peoria Avenue and Dysart Road

. Expenditure for Public Health and Safety Measures. It is the intent of the Council that
funds from Coronavirus State and Local Fiscal Recovery Funds be prioritized and
expended for public health and safety measures as follows:

a. Police Neighborhood Enforcement Team (NET)
b. Police Officer Attrition

c. Paramedic/Firefighter

d. Emergency Operations Center

. Expenditure for Responding to Negative Economic Impacts from the Pandemic. It is the
intent of the Council that funds from Coronavirus State and Local Fiscal Recovery
Funds be prioritized and expended for responding to the negative economic impacts
from the pandemic as follows:

Utility, Rent and Mortgage Assistance

Home Repair Assistance and Weatherization Program
Addressing Homelessness

Food Assistance

Public Transit Assistance

Workforce Development

Small Business Assistance

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. Take all necessary actions to apply for and receive funds for which the City is eligible
from state and federal sources.

. Receive, deposit and account for funds in an amount of $11,940,792 which will be
received in two tranches with 50% in 2021 and 50% in 2022.

. Establish appropriations in an amount equal to funds received.

. Transfer appropriations, expenses, and/or cash between funds established for the
Coronavirus recovery response.

. Execute any agreements necessary to receive Coronavirus State and Local Fiscal
Recovery Funds.

10. Nothing in this Resolution shall be construed as superseding any action otherwise
required by the City Council to authorize the City Manager to enter into requisite
contracts associated with expenditures outlined above.

11. That this Resolution shall be effective at the soonest date after its passage and approval,
according to law.

APPROVED AND ADOPTED by the City Council this 9" day of September 2021.

Alexis Hermosillo, Mayor

ATTEST: APPROVED AS TO FORM:

Sharon Antes, City Clerk Justin Pierce, City Attorney