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HomeMy WebLinkAboutReso 2021-172RESOLUTION NO. 2021-172 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE ACCEPTANCE OF CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS ESTABLISHED BY THE AMERICAN RESCUE PLAN ACT OF 2021 ALLOCATION OF $28,767,625 FROM THE UNITED STATES DEPARTMENT OF TREASURY AND APPROPRIATING FUNDS IN FISCAL YEAR 2021/22 WHEREAS, in May 10, 2021, as a result of the COVID-19 virus, the U.S. Department of the Treasury announced the launch of the Coronavirus State and Local Fiscal Recovery Funds, established by the American Rescue Plan Act of 2021 (ARPA); and WHEREAS, ARPA is designed to deliver $350 billion to state, local, territorial, and Tribal governments to bolster their response to the COVID-19 emergency and its economic impacts; and WHEREAS, the City of Chula Vista will receive $57,535,251 in two tranches with $28,767,625 provided in May 2021 and the remaining $28,767,625 to be received twelve months later; and WHEREAS, eligible categories of ARPA expenditures include:  Support public health expenditures, by funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff;  Address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector;  Replace lost public sector revenue, using this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic;  Provide premium pay for essential workers, offering additional support to those who have borne and will bear the greatest health risks because of their service in critical infrastructure sectors; and,  Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and to expand access to broadband internet. WHEREAS, ineligible categories of APRA expenditures are;  States and territories may not use this funding to directly or indirectly offset a reduction in net tax revenue due to a change in law from March 3, 2021 through the last day of the Fiscal Year in which the funds provided have been spent. The American Rescue Plan ensures that funds needed to provide vital services and support public employees, small businesses, and families struggling to make it through the pandemic are not used to fund reductions in net tax revenue. Treasury’s Final Rule implements this requirement. DocuSign Envelope ID: 8BFC9E5B-47C6-4069-BD4C-AC503A9E2463 Resolution No. 2021-172 Page No. 2  No recipient may use this funding to make a deposit to a pension fund. Treasury’s Final Rule defines a “deposit” as an extraordinary contribution to a pension fund for the purpose of reducing an accrued, unfunded liability. While pension deposits are prohibited, recipients may use funds for routine payroll contributions for employees whose wages and salaries are an eligible use of funds. WHEREAS, the City of Chula Vista’s total allocation is $57,535,251 and the City’s use of these funds must comply with ARPA grant requirements; and WHEREAS, prior to acceptance of these funds, the City had to submit a Financial Assistance Agreement in order to receive the funds. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it: (i) authorizes the acceptance of $28,767,625 in Coronavirus State and Local Fiscal Recovery Funds, established by the American Rescue Plan Act of 2021 (ARPA) from the United States Department of Treasury; (ii) authorizes the appropriations of such funds to an interest bearing fund labeled American Rescue Plan 2021 with expenditures to be made in accordance with ARPA allocation plans presented in the staff report for this item, subject to modifications by the City Manager that may be necessary or appropriate to assure expenditure of all available funds in a qualified and timely manner; (iii) hereby amend the Fiscal Year 2021/22 CIP Program Budget; (iv) hereby amend the Fiscal Year 2021/22 operating and CIP Budget; (v) and hereby approve the following appropriations and transfers: DocuSign Envelope ID: 8BFC9E5B-47C6-4069-BD4C-AC503A9E2463 Resolution No. 2021-172 Page No. 3 [SIGNATURES ON THE FOLLOWING PAGE] Summary of CIP Program Budget Amendments Project Project Description Amount GGV0258 Fiber Optic Comm to City Facilities along Main St 300,000$ DRN0208 Prelim Eng & Env Stds Telegraph Canyon 3,200,000.00 GGV0247 Loma Verde Aquatic and Recreation Center 4,000,000.00 GGV0262 50 N 4th Rehab (former YMCA)1,000,000.00 GGV0263 Broadband Design 900,000.00 GGV0261 Police Department HVAC Replacement 9,000,000.00 Total 18,400,000$ Summary of Non-CIP Program Budget Amendment Project Project Description Amount PWP0001 Public Works Project Management 1,000,000$ Total 1,000,000$ DocuSign Envelope ID: 8BFC9E5B-47C6-4069-BD4C-AC503A9E2463 Resolution No. 2021-172 Page No. 4 Presented by Approved as to form by Maria V. Kachadoorian Glen R. Googins City Manager City Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 24th day of August 2021 by the following vote: AYES: Councilmembers: Cardenas, Galvez, McCann, Padilla, and Casillas Salas NAYS: Councilmembers: None ABSENT: Councilmembers: None Mary Casillas Salas, Mayor ATTEST: Kerry K. Bigelow, MMC, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2021-172 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 24th day of August 2021. Executed this 24th day of August 2021. Kerry K. Bigelow, MMC, City Clerk DocuSign Envelope ID: 8BFC9E5B-47C6-4069-BD4C-AC503A9E2463