CC SR 20211005 H - ARPA
CITY COUNCIL MEETING DATE: 10/05/2021
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consideration and possible action to approve the spending plan for the City’s American
Rescue Plan Act (ARPA) funds.
RECOMMENDED COUNCIL ACTION:
(1) Approve the spending plan for the ARPA funds using Category C of the
Department of Treasury’s interim guidelines for eligible use of ARPA funding; and,
(2) Approve budget appropriations of $4,798,000 in Fiscal Year 2021-22.
FISCAL IMPACT: The total spending plan for ARPA is $9,935,000. For the approved
projects that are estimated to start in FY 2021-22, the budget appropriation request is
$4,798,000.
Amount Budgeted: $0
Additional Appropriation: $4,798,000
Account Number(s): 333-400-0000- Various accounts
(ARPA Federal Grant Fund – Expenditures)
ORIGINATED BY: Vina Ramos, Deputy Director of Finance
REVIEWED BY: Trang Nguyen, Director of Finance
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. September 21, 2021, Staff Report (page A-1)
BACKGROUND AND DISCUSSION:
On September 21, 2021, Staff presented the ARPA’s background and the preliminary
spending plan developed by City Management with input from the Finance Advisory
Committee (FAC) and Infrastructure Management Advisory Committee (IMAC). The
framework on the recommended proposed projects is based on ARPA’s eligibility,
required timeline, deferred citywide projects, and the City Council’s approved capital
projects (unfunded or partially funded projects). Based on information presented that
evening, the City Council, on a vote of 3-1 (Councilmember Dyda dissenting):
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CITYOF RANCHO PALOS VERDES
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• Received and filed a report explaining how $9.9 million was allocated to the City for
ARPA;
• Accepted $4,967,420, received in July 2021, as the first half of the City’s ARPA
allocation and increased the revenue appropriations in FY 2021-22;
• Approved the preliminary spending plan and proposed projects for the ARPA funds
using Category C of the Department of Treasury’s interim guidelines for eligible use
of ARPA funding;
• Developed the final spending plan for the City Council’s consideration at the October
5, 2021 meeting; and
• Directed Staff to prepare an annual status report of the approved projects.
Staff seeks City Council approval of the following budget appropriations for the
expenditures that are estimated to start in FY 2021-22 (Table 1). The first project
expenditure and project annual status report will be prepared for the City Council’s
review in September 2022.
Table 1: Budget Appropriations for ARPA Funding in FY 2021-22
Project Name ARPA Funding Fiscal Year
Ladera Linda Community
Center and Park Project $3,953,000 FY 2021-22
Hesse Park Technology
Upgrades $270,000 FY 2021-22
Information Technology
Infrastructure Upgrades $250,000 FY 2021-22
Replenishment of the City's
Emergency Supplies $100,000 FY 2021-22
Development of a
Peninsula-wide Evacuation
Plan
$100,000 FY 2021-22
Wildfire Monitoring
Cameras $125,000 FY 2021-22
TOTAL $4,798,000
Investment in Capital Infrastructure
Investment in Technology Infrastructure
Investment in Protection of Life and Property
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For the remaining approved projects, Staff will incorporate future funding listed in Table
2 during the annual budget process based on the estimated start year.
Table 2: Future Funding for ARPA Projects
In summary, Staff anticipates that the approval of the utilization of ARPA funds for the
proposed projects would relieve the General Fund for needed one -time costs and
deferred maintenance projects, and generate available funds in the Capital Improvement
Program (CIP) that can be used for future projects and initiatives.
The comprehensive Staff report for the ARPA’s spending plan presented at the
September 21 meeting is attached (Attachment A). Additionally, the staff reports and
presentations for the budget workshops are published on the City’s Meeting Video,
Agenda, and Minutes Portal at rpvca.gov/agendas.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative actions are available
for the City Council’s consideration:
1. Add, delete or modify the proposed projects to be funded by ARPA funds.
2. Take other action, as deemed appropriate.
Project Name
ARPA
Funding Other Funds Fiscal Year
Pavement Management Program -
Crenshaw Blvd.
$500,000 $800,000
(CIP)
FY 2023-24
Abalone Cove Sanitary Sewer Rehabilitation 1,567,000 1,568,000
(CIP)
FY 2022-23
Western Ave. Beautification 600,000 800,000
(Gas Tax)
FY 2023-24
Eastview Restroom and Remodel Additional
Office Space
350,000 -FY 2022-23
Restroom Improvements at Point Vicente
Interpretive Center
385,000 -FY 2022-23
Storm Water Drainage Improvement - PVDS at
Peppertree
1,035,000 -FY 2022-23
Park Monument Signage 350,000 -FY 2022-23
Park Playground Improvements 350,000 -FY 2022-23
TOTAL $5,137,000 $3,168,000
Investment in Capital Infrastructure
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CITY COUNCIL MEETING DATE: 09/21/2021
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA TITLE:
Consideration and possible action to review the American Rescue Plan Act (ARPA) and
the preliminary spending plan for the City’s ARPA funds.
RECOMMENDED COUNCIL ACTION:
(1) Receive and file a report explaining how $9.9 million was allocated to the City for
the American Rescue Plan Act (ARPA);
(2) Accept $4,967,420, received in July 2021, as the first half of the City’s ARPA
allocation and increase the revenue appropriations in FY 2021-22; and,
(3) Approve the preliminary spending plan for the ARPA funds using Category C of
the Department of Treasury’s interim guidelines for eligible use of ARPA funding
and direct Staff to proceed in developing the final spending plan for the City
Council’s consideration at the October 5, 2021 meeting.
FISCAL IMPACT: The City’s total allocation of ARPA is $9,934,859. The first half in the
amount of $4,967,420 was received in July 2021.
Amount Budgeted: $0
Additional Appropriation: $4,967,420
Account Number(s): 333-300-0000-3301 ($4,967,420)
(ARPA Federal Grant Fund – Revenue)
ORIGINATED BY: Vina Ramos, Deputy Director of Finance
REVIEWED BY: Trang Nguyen, Director of Finance
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Proposed Project Sheets (page A-1)
B. Proposed Project Status and Target Spent Date (page B-1)
C. August 24, 2021 Finance Advisory Committee Special Meeting Staff Report
(page C-1)
D. August 30, 2021 Infrastructure Management Advisory Committee Special
Meeting Staff Report (page D-1)
E. September 9, 2021 Finance Advisory Committee Special Meeting Staff
Report (page E-1)
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BACKGROUND AND DISCUSSION:
1. City’s $9.9 Million ARPA Allocation
On March 11, 2021, the ARPA was signed into law, amending Title VI of the Social Security
Act to add Section 602 which establishes the Coronavirus State Fiscal Recovery Fund
(CSFR) and Section 603 which establishes the Coronavirus Local Fiscal Recovery Fund
(CLFR). ARPA is a relief package that provides fiscal aid of $350 billion in emergency
funding for state, local, territorial, and tribal governments. The funding objectives defined
by the Department of Treasury (DOT) 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 inequal impact of the pandemic.
As defined in CLFR Section 603 (g)(5) of the Social Security Act, local governments that
are serving populations of less than 50,000 are categorized as “non-entitlement units
(NEUs)” of local government. For all NEUs, the DOT disburses the funds to the state
governments, then the state distributes the funds to cities based on the population of the
NEU. Local governments will receive funds in two batches, with 50% being distributed in
June 2021 and the balance to be distributed 12 months later.
The City of Rancho Palos services a population of less than 50,000, thus the City’s ARPA
allocation is being disbursed by the State of California. Initially, the information released in
February 2021 estimated the City’s allocation at approximately $7.8 million. Subsequently,
the City’s allocation has increased to $9.9 million based on the following formula calculated
by DOT:
Total NEU Population 5,092,613
City of Rancho Palos Verdes 41,530
% of RPV's Population to NEU 0.82%
California's NEU Allocation 1,218,261,277
RPV's Share of NEU Allocation $9,934,859
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Eligibility Information
I. Final Interim Rule (Draft) from DOT
The funding from ARPA is subject to the requirements adopted by the DOT. On May 10,
2021, the DOT issued the (draft) “Interim Final Rule” to provide guidelines on the ARPA.
Based on the current information, the DOT was scheduled to complete the final guidelines
by the end of August 2021. While the final rule has not been issued, the information that
Staff received from DOT and local government organizations indicates that local agencies
may start the planning process by referring to the guidelines included in the Interim Final
Rule. Staff anticipates that the potential changes are to clarify provisions in the interim
rule and possibly more flexibility of the ARPA program.
II. Eligibility and Timeline
Based on the Interim Final Rule, the summary of the eligibility information stated in
Section 602 and 603 fall into four main categories as noted below:
A. Containing/mitigating COVID-19 or negative economic impact.
B. Premium pay for essential workers
C. For government services to the extent of the loss of revenue. This category is the
most pertinent to local agencies and defined as follows:
o Directly provide services or aid to citizens
o Maintenance or pay-go funded building of infrastructure, including roads.
o Modernization of cybersecurity, including hardware, software, and
protection of critical infrastructure
o Health services
o Environmental remediation
o School or educational services
o The provision of police, fire, and other public safety services
o Other government services that are normally provided by the City
D. Investments in water, sewer, and broadband infrastructure.
The following uses were expressly indicated as ineligible:
• Pension payments
• Replenishing of reserves
• Payment on any debt instruments
• Offset to tax cuts caused by a change in local law
• Federal grant matching requirements
The Interim Final Rule also stipulated that the funds must be committed by December 31,
2024 and spent by December 31, 2026.
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III. Government Services to the Extent of the Loss of Revenue
Based on Staff’s research, of the four main categories, the Category C “Government
services to the extent of the loss of revenue” is the least restrictive and provides the most
flexibility to the City of Rancho Palos Verdes. As stated in the guidelines, this category
gives the recipients broad latitude to use funds for the provision of government services
to the extent of reduction in revenue.
Under this category, the City must calculate the reduction in revenues due to the negative
economic impact from the pandemic. To recognize that the City may experience lagged
effects of the pandemic on revenues, DOT’s Interim Final Rule permits the City to
calculate the extent of reduction in revenue for periods ending December in 2020, 2021,
2022 and 2023.
Staff has calculated the City’s revenue loss using the revenue loss calculator provided by
Cal Cities (formerly League of California Cities) in collaboration with the California Society
of Municipal Finance Officers (CSMFO). The calculator was designed based on DOT’s
guidelines and particularly for local agencies. Based on DOT’s guidelines, the following
are the major methods used to determine revenue loss:
• Use base year actual revenues as the most recent fiscal year prior to the public
health emergency (FY 2018-2019).
• Apply calculated growth adjustment using average percent revenue growth in 3 full
fiscal years. Based on this calculation, the City’s average growth included in the
calculation is 4.28%.
• Use modified accrual basis of accounting.
• Use General Revenues:
o Includes revenues regardless of the level of discretion over the use of the
funds, including fees, charges, special taxes, assessments, etc. for all
governmental funds
o Excludes Trust, Fiduciary, Internal Service Funds
o Excludes water, electric, gas, transit, federal grants, proceeds from debt or
financing
As illustrated in Table 1, based on the calculation of revenue loss requirements, a s of
December 31, 2020, the City’s estimated revenue loss is almost $9.9 million and a
projected revenue loss of $6.7 million by December 2021, $6.1 million in December 2022,
and $6.2 million in December 2023 for a total of almost $29 million for all funds.
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Table 1: Revenue Loss Calculation
Based on these amounts, Staff verified that the City is well above the estimated allocation
of $9.9 million, and therefore, the entire allocation amount is eligible for government
services.
2. Acceptance of the ARPA Funds
On June 10, the City submitted its request for ARPA’s allocations to the State of California
Department of Finance (DOF). Subsequently, on July 13, the City received the first
disbursement in the amount of $4.97 million, which is half of the City’s allocation. In
accordance with ARPA’s guidelines, Staff seeks the City Council’s approval to formally
accept the allocation of $4.97 million in revenues and to increase the revenue
appropriations for FY 2021-22 accordingly.
It should be noted that this approval is only for the revenue appropriation. The approval
of the appropriation for expenditures would be presented to at a future meeting, based on
the City Council’s direction on the spending plan as discussed in the next section.
3. Spending Plan for ARPA Funds
I. Framework
Based on the eligibility requirements from the DOT, Staff recommends the City Council
utilize Category C for the City’s ARPA allocation, based on revenue loss for government
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Amer i:an Rescue Pla n
Coron avir us St ate and Lo cal Fiscal Recovery Fund s
Pu blic Revenu e Loss Ca lcul ato r -for Ca liforni a Cit ies
V2.0 Fu nd Sa sis (Modified Am.R ll
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BaseYea.r Rev enue: The amounrof r:e\l.:'nues roffe cred i n di emosr reCEn r
f iscal }E'ar ,:rior rorhe putiic health emergen.cy (L e ., the Ia stfiscal ye.ar
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ssa,s60,768 I ~
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fis cal }E'ars pn·or-to th e COvlD-19pu fli c health em e rgen cy-or-4.1 perceni;,
whidle I.E'r i s gr:eare-.
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the dedarao·on of pu ~ic health e mergency on Jan ua.ry 27, 2020.
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.._ _____ __.~rom "AcrualRet.En ues " wock sheet c ell F12 or 4..196 w hidl el.E'r J5 qrearer..
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_______________ R_e_v_en_u_e_Lo_s_s_S_u_m_ma_ry _______________ .compu-redfrom "A cru a!ReLenues " waks:hee t
l\llonths Countertactual Actual Revenue
Report1 rg Period Elapsed Revenue Re""'1LE Loss
fund basis of acroun ring (mod:Jfied aro-ud)
Jaoo ary 1, 2020-December 31, 2020 lll S 41,06'!, 731 $31,183,370 -S9,B!ll,362
J aoo ary 1, 2021 • Dec ember 31, 2021 :D $ 42,823, 733 $36,006,989 -$6,736,744
J aoo ary 1, 2022 • December 31, 2022 <12 S 44,658,001 $38,605,270 -$6,062,812
J aoo a ry 1, 2023 -Dec ember 31, 2023 'A $ %,571,!DI $40, 26.5 ,296 -$ 6,305,707
Total -$28,9 76,624
services. City management has compiled a list of recommended proposed projects to
assist the City Council in developing a preliminary spending plan under this option. In this
process, Staff set the following framework based on the DOT’s guidelines and local
government agencies’ guiding principles in spending ARPA funds:
• Consider eligible projects that directly provide services or aid to citizens,
maintenance or pay-go funded building of infrastructure, modernization of
cybersecurity, including hardware, software, and protection of critical
infrastructure.
• Higher priority on projects with one-time costs and deferred maintenance that are
normally supported by the General Fund.
• Higher priority on capital projects. The City’s Capital Improvement Fund (CIP) is
the most affected fund from the economic downturn due to the reduced transfers
from the revenue loss in transient occupancy taxes (TOT). As such, it would be
prudent and consistent with eligibility requirements to allocate ARPA funding for
the City’s capital infrastructure. The framework for choosing capital projects are as
follows:
o Consider deferred citywide projects.
o Consider unfunded or partially funded projects in the adopted FY 2021-22 Five-
Year Capital Improvement Program. These projects have been approved by
the Infrastructure Management Advisory Committee and adopted during the
budget process by the City Council.
o Projects with a high degree of confidence that funds will be spent by December
31, 2026.
II. Recommended Proposed Projects
Based on the guiding principles and after a vigilant review of the proposed projects from
the Department Heads and final approval from the City Manager, Staff narrowed down
the list and developed three spending categories:
(1) Investment in Capital Infrastructure (Improvements and Repairs),
(2) Investment in Information Technology Infrastructure, and
(3) Investment in Protection of Life and Property.
Table 2: Summary of ARPA Funding Requests
City of Rancho Palos Verdes
Summary of ARPA Funding Requests
FY 2021-2022
Category ARPA Funding
Investment in Capital Infrastructure $9,090,000
Investment in Information Technology $520,000
Investment in Protection of Life and Property $325,000
TOTAL PROJECTS 9,935,000.00$
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A summary of the project status and the target spent dates are detailed in Attachment B.
The following is a brief overview of proposed projects for each spending category:
(1) Investment in Capital Infrastructure (Improvements and Repairs)
This category has the largest proposed allocation in the amount of $9,090,000 or
92% of the ARPA funds for nine projects. As mentioned previously, the economic
downturn resulted in less available funds in the CIP Fund and consequently ,
deferred the schedule for City Council’s approved capital projects and
maintenance. The utilization of ARPA funds in this category would help exp edite
the completion of the following unfunded or partially funded projects, as well as
meeting the ARPA’s eligibility requirements:
• Ladera Linda Park and Community Center Project
On April 6, 2021, the City Council upheld the Planning Commission’s approval of
the Ladera Linda Park and Community Center Project. On May 18, 2021, the City
Council approved the Finance Advisory Committee’s (FAC) recommendation for
financing options, in which up to 50% of the ARPA funds may be used for the
project. The remaining financing of the project includes any available funds from
Quimby Fund, and the remaining amount would be a 50/50 split between financing
with a bank and the CIP Fund.
This project is eligible as it is for a pay-go spending for building new infrastructure.
The total funding request for this project is almost $5 million, however, after
accounting for all the other proposed projects, the allocated amount in the
preliminary spending plan is $3,953,000 or 40% of the ARPA’s allocation. This is
a one-time partial funding cost allocated for the construction. Future financial
support on the project would be supported by the General Fund.
• Pavement Management Program – Crenshaw Boulevard
As part of the Arterial Roadways Rehabilitation Program, this proposed project
consists of rehabilitating the section of Crenshaw Boulevard from the city limit to
Seacrest Drive and consists of resurfacing the existing asphalt; replacing damaged
asphalt, curbs, gutters, and sidewalks; replacing pavement markings; and
improving drainage (if needed).
This project is eligible as it directly provides services to citizens and maintains the
City’s infrastructure. The total partial funding request for this project is $1.3 million,
with Staff recommending utilizing $500,000 or 5% of the ARPA allocation and the
remaining $800,000 from the CIP Fund. This is a one-time cost allocated for the
deferred maintenance.
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• Abalone Cove Sanitary Sewer Rehabilitation
The proposed project is intended to improve the Abalone Cove sanitary sewer
system and consists of replacing existing galvanized pipes; installing new pumps
at four lift stations; installing new railings; installing new linings; and installing a
SCADA (Supervisory Control And Data Acquisition) system .
This project is eligible as it directly provides services to citizens and maintains the
City’s infrastructure. The total partial funding request for this project is $3.1 million,
with Staff recommending utilizing almost $1.6 million or 16% of ARPA’s allocation
and the remaining $1.5 million from CIP Fund. This is a one-time cost allocated for
the deferred maintenance.
• Western Avenue Beautification
The proposed project is intended to enhance the aesthetics of the public right-of
way along the City’s Western Avenue corridor (from Peninsula Verde Drive to
Summerland Avenue), and consists of new entrance features, lighting
improvements, hardscape improvements, new street furniture and trash
receptacles; and crosswalk and landscape improvements.
This project is eligible as it directly provides services to citizens and maintains
City’s infrastructure. The total partial funding request for this project is $1.4 million,
with Staff recommending utilizing $600,000 or 6% of ARPA’s allocation and the
remaining $800,000 from Gas Tax Fund. This is a one-time cost allocated for the
deferred maintenance.
• Eastview Restroom and Remodel Additional Office Space
This proposed project is intended to improve deteriorating restrooms and create
plans for an additional office location to be completed at a later date. The project
will include remodeling two single-use restrooms and the addition of a staff office
and storage room. This project will be combined with the capital project to improve
the restrooms at the Point Vicente Interpretive Center for economic efficiency.
The project is eligible as it directly provides services to citizens and maintains
City’s infrastructure. The total funding request for this project is $350,000, with
Staff recommending utilizing $350,000 or 4% of ARPA’s allocation. This is a one-
time cost allocated for the deferred maintenance.
• Restroom Improvements at Point Vicente Interpretive Center
This proposed project is intended to improve the function and aesthetics of the
bathrooms (interior and exterior) at the Point Vicente Interpretive Center and
consists of replacing existing plumbing, plumbing fixtures, wall and ceiling
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surfaces, and flooring; installing new stall dividers, new lighting fixtures, mirrors,
and accessory equipment.
The project is eligible as it directly provides services to citizens and maintains the
City’s infrastructure. The total funding request for this project is $385,000, with
Staff recommending utilizing $385,000 or 4% of ARPA’s allocation. This is a one-
time cost allocated for the deferred maintenance.
• Storm Water Drainage Improvement – Palos Verdes Drive South at Peppertree
Drive
This proposed project is intended to repair storm drain systems and consists of
replacing and improving the existing underground storm drain system (lateral pipes
and main storm drain pipes) and installing new catch basins, drainage inlets and
manholes.
The project is eligible as it directly provides services to citizens and maintains
City’s infrastructure. The total funding request for this project is $1,035,000, with
Staff recommending utilizing $1,035,000 or 10% of ARPA’s allocation. This is a
one-time cost allocated for the deferred maintenance.
• Park Monument Signage
This proposed project is intended provide new signs to identify park sites. The
project would consist of redesigning the current look of the monument signs and
would independently specify the needs at each facility. The needs could include
location, lighting, landscaping. Locations to include the following park facilities are
Hesse, Ryan, Abalone Cove, Point Vicente Interpretive Center (Lower Point
Vicente), Civic Center (Upper Point Vicente), Del Cerro, Madeline Ryan Sunset
Park, Founders, Vanderlip, Ladera Linda, Eastview, Clovercliff, Grandview,
Martingale, Pelican Cove, and Vista Catalina.
The project is eligible as it directly provides services to citizens and maintains the
City’s infrastructure. The total funding request for this project is $350,000, with
Staff recommending utilizing $350,000 or 4% of ARPA’s allocation. This is a one-
time cost allocated for the deferred maintenance.
• Park Playground Improvements
This proposed project is intended to provide park playground repairs and
improvements to address areas of concern identified by a facility asset review
conducted by a Public Works consultant.
The project is eligible as it directly provides services to citizens and maintains
City’s infrastructure. The total funding request for this project is $350,000, with
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Staff recommending utilizing $350,000 or 4% of ARPA’s allocation. This is a one-
time cost allocated for the deferred maintenance.
(2) Investment in Information Technology (IT)
This category includes upgrades and enhancements to the audio/video and other
equipment to meet or exceed current and future requirements for virtual hybrid
meetings. Additionally, this category is for IT’s Infrastructure projects to replace
aging equipment (servers, storage, firewalls, switches, and wireless access
points) and improve security, reporting, alerting and scalability. This category’s
proposed allocation is $520,000 or 5% of the ARPA’s allocation as described
below:
• Hesse Park Technology Upgrades
While the current Hesse Park setup has worked reasonably well since the
introduction of hybrid City Council and Planning Commission meetings, to provide
a reliable and sustainable performance, more upgrades and changes would need
to be made to the equipment and configuration of the McTaggart Hall audio and
video system. The issues and risks identified in the 2018 assessment still exist and
more potential areas of improvement and potential points of failure have been
identified. The design plan should account for the ability to move as much of the
new equipment as possible when the new civic center is operational.
The project is eligible as it directly provides services to citizens, maintains, and
protects of critical infrastructure. The total funding request for this project is
$270,000, with Staff recommending utilizing $270,000 or 3% of ARPA’s allocation.
Staff estimates maintenance costs of approximately $10,000 annually.
• Information Technology Infrastructure Upgrades
The proposed project consists of the following technology upgrades:
o $25,000 firewall: Upgrade the existing tow Upgrade the existing two 6+ year
old Sonicwall firewalls at the City Hall with new generation Fortinet or Palo
Alto firewalls.
o $15,000 wireless: Upgrade wireless access points at the City Hall, Hesse
Park and PVIC.
o $160,000 server infrastructure: Replace and upgrade the entire back-end
server infrastructure (physical servers, storage devices and storage
network).
o $70,000 network upgrade and redesign: Upgrade core and campus network
switches to new generation devices.
This project is eligible as it directly provides services to citizens, maintains, and
protects of critical infrastructure. The total funding request for this project is
$270,000, with Staff recommending utilizing $270,000 or 3% of ARPA’s allocation.
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Staff estimates maintenance costs of approximately $7,000 annually and
equipment replacement cost of $48,000.
(3) Investment in Protection of Life and Property
This category includes emergency operations center mitigation investment such
as purchasing of various supplies and equipment for the City of Rancho Palos
Verdes’ Emergency Operations Center. The category’s proposed allocation is
$325,000 or 3% of the ARPA’s allocation, as described below:
• Replenishment of the City’s Emergency Supplies
This proposed project is to resupply the City’s strategically pre‐positioned critical
emergency supplies and equipment in cargo containers around the City to ensure
use by City disaster workers, first responders, and registered disaster workers
within the first 72 hours following a disaster.
This project is eligible as it directly provides services to citizens. The total funding
request for this project is $100,000, with Staff recommending utilizing $100,000 or
1% of ARPA’s allocation. Staff estimates the replacement cost of approximately
$3,000 annually.
• Development of a Peninsula-wide Evacuation Plan
This proposed project is to fund a third‐party consultant to create a Peninsula‐wide
evacuation plan that includes evacuation routes, safe refuge areas, and
evacuation zones similar to those in the City of Malibu, as well as a repopulation
plan and strategy/outline for community outreach and awareness.
The project is eligible as it directly provides services to citizens. The total funding
request for this project is $100,000, with Staff recommending utilizing $100,000 or
1% of ARPA’s allocation.
• Wildfire Monitoring Cameras
The proposed project is for purchasing five high-definition cameras and
implementing a Peninsula-wide program to monitor for wildfires in the City’s open
space.
On August 17, 2021, the City Council expressed interest in establishing a
permanent City program to monitor for wildfires in the City's canyons and open
space areas using these cameras and directed Staff to investigate the feasibility
of establishing a joint wildfire monitoring camera system with the three neighboring
peninsula cities and report back to the City Council at a subsequent meeting with
a scope of work, cost estimates, and final locations for consideration and adoption
by the City Council.
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This project is eligible as it directly provides services to citizens. The total funding
request for this project is $125,000, a decrease from the original estimate of
$425,000. Staff recommending utilizing $125,000 or 1% of ARPA’s allocation. Staff
estimates an annual cost of approximately $6,000 for maintenance (i.e. onsite
cleaning, etc.) and for the City to set aside $12,500 for future equipment
replacement cost. If the proposed project is approved, Staff would need to
research other maintenance costs including equipment’s service providers and
data storage.
Table 3 below summarizes the recommended proposed projects with estimated costs. To
see the details for each proposed projects, see Attachment A.
Table 3: Recommended Projects for ARPA
Project Name Category ARPA Fund
Ladera Linda Community Center and
Park Project (*partial funding)
Investment in Capital
Infrastructure $3,953,000
Pavement Management Program
Arterial Roadway Rehabilitation
(Crenshaw Blvd) (*partial funding)
Investment in Capital
Infrastructure $500,000
Abalone Cove Sanitary Sewer
Rehabilitation (*partial funding)
Investment in Capital
Infrastructure $1,567,000
Western Ave Beautification (*partial
funding)
Investment in Capital
Infrastructure $600,000
Eastview Restroom Remodel &
Additional Office Space
Investment in Capital
Infrastructure $350,000
Restroom Improvements at Point
Vicente Interpretive Center
Investment in Capital
Infrastructure $385,000
Stormwater Drainage Improvements –
Palos Verdes Drive South at
Peppertree Drive
Investment in Capital
Infrastructure $1,035,000
Park Monument Signage
Investment in Capital
Infrastructure $350,000
Park Playground Improvements
Investment in Capital
Infrastructure $350,000
Hesse Park Upgrades
Investment in Information
Technology $270,000
IT Infrastructure Upgrades
Investment in Information
Technology $250,000
Wildfire Monitoring Cameras
Investment in Protection
of Life and Property $125,000
Development of a Peninsula-wide
Evacuation Plan
Investment in Protection
of Life and Property $100,000
Replenish the City Emergency Supplies
Investment in Protection
of Life and Property $100,000
TOTAL RECOMMENDED PROJECTS $9,935,000
A-12
In summary, Staff seeks the City Council’s approval using Category C under DOT’s
interim guidelines for eligible use of ARPA funding, and requests the council review the
preliminary spending plan for the ARPA funds; and direct Staff to proceed in developing
the final spending plan for City Council’s consideration at the O ctober 5, 2021 meeting.
ADDITIONAL INFORMATION:
Projects Not Proposed for ARPA Funding
The list of projects requested from City departments totaled $16.7 million. Table 4 on the
next page is a list of projects that were requested from the departments but are not
proposed for ARPA funding. The funding for these projects would be the City Council’s
discretion to approve the projects from other funding sources at a future meeting. In this
process, the projects that were not proposed for any funding are due to the following:
• Readiness of the projects. These are projects that need time to complete that may
affect the ability to meet the required deadline (i.e., no approved design plans yet
or not included in the CIP Program)
• Projects ranked lower compared to the other deferred maintenance and other
critical infrastructure needs
• Projects may be supported by the operating budget and other special revenue
funds
[continued on next page]
A-13
Table 4: Projects Not Proposed for APRA Funding
Compliance/Terms and Conditions
Although allocations are distributed from the State of California DOF, the state is not
responsible for monitoring the City’s compliance with use of funds. Accordingly, the City
is required to meet terms and conditions defined in the Interim Final Rule and further
described in the Compliance and Reporting Guidance issued by the DOT. As permissible
in the Interim Final Rule, by the City opting to use the revenue loss category, the City can
have more flexibility on how to use the funds for government services. As such, b ased on
Staff’s research, the following are the major highlights of the compliance responsibilities
that are applicable to the City:
Project Name Category
Amount
Not Funded by
ARPA
Bubbles Marquee
Investment in Capital
Infrastructure $350,000
Citywide and Preserve Trail Improvements
Investment in Capital
Infrastructure $150,000
Picnic Reservation Areas
Investment in Capital
Infrastructure $500,000
Nursery School Site Restoration and
Remodel
Investment in Capital
Infrastructure $750,000
Restore Frozen Assistant Planner
Investment in Community
Services $100,000
Trails Risk Manager/Consultant
Investment in Community
Services $70,000
Part-time Planning Intern
Investment in Community
Services $40,000
Trail Counters
Investment in Community
Services $18,000
Enforcement Mobile Computer
Investment in Community
Services $15,000
Park Rangers - Temporary Stations
Investment in Community
Services $100,000
Park Range r- Radios
Investment in Community
Services $126,000
Restore Frozen Senior Engineer Position
Investment in Community
Services $175,000
PCI Compliance Implementation
Investment in Information
Technology $15,000
Business Continuity Plan
Investment in Information
Technology $5,000
Disaster Recovery Plan
Investment in Information
Technology $5,000
EOC Supplies & Equipment Upgrades
Investment in Protection
of Life and Property $35,000
(2) Fire fighting skids for the ranger trucks
Investment in Protection
of Life and Property $85,000
TOTAL PROJECT REQUESTS $2,539,000
A-14
• Use of funds for eligible uses.
• Timely use of funds. Commit funds by December 31, 2024 and spend by
December 31, 2026.
• Reporting. Project Expenditure Report due October 31 annually.
• Expenses are subject to the requirements set forth from the Office of
Management and Budget’s (OMB) Uniform Guidance; which is a government -
wide framework for grants management (e.g., must follow the federal
guidelines on required procurements).
• Subject to Single Audit Requirements for expenditures of more than $750,000.
Additionally, it is important to note that Staff will bring back the Project Expenditure Report
annually for the City Council to review the progress of the approved projects. The City
Council may re-assess the proposed projects and direct Staff to re-allocate the funds to
other eligible projects to avoid for any funds to lapse , if warranted.
Finance Advisory Committee (FAC)
On August 24, 2021 and September 9, 2021, Staff presented the FAC with the list of
projects that are proposed to use ARPA funds (Attachments C and E). The following is a
summary of the committee’s feedback:
• Add project status information and target schedules for all the proposed
projects.
• Emphasize the importance of meeting the December 31, 2026 deadline. All
amounts must be spent by this date to avoid losing any funds.
Infrastructure Management Advisory Committee (IMAC)
On August 30, 2021, Staff presented the IMAC with the list of projects that are proposed
to use ARPA funds (Attachment D). In summary, the committee preliminary supported
Staff’s proposal with the following three caveats:
• For City Staff to create a list of projects for which ARPA funding will be utilized
in the event that there is unencumbered or unspent ARPA funding available .
• IMAC to formally review the status projects bi-annually at its regularly
scheduled meetings in March and September.
• IMAC to formally review the information on new projects not previously included
on the infrastructure and non-infrastructure lists, at an IMAC meeting.
A-15
CONCLUSION:
The ARPA’s preliminary spending plan presented tonight to the City Council was
developed by City Management with input from the FAC and IMAC. The framework on
the recommended proposed projects is based on ARPA’s eligibility, required timeline,
deferred citywide projects, and the City Council’s approved capital projects, but they are
unfunded and partially funded. Staff anticipates that the utilization of ARPA funds for the
proposed projects would relieve the General Fund for needed one -time costs and
deferred maintenance projects and generate available funds in CIP that can be used for
future projects and initiatives.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative action is available for
the City Council’s consideration:
1. Take other action, as deemed appropriate.
2. Add, delete or modify proposed projects for the ARPA Spending Plan .
A-16
PROJECT NAME: Ladera Linda Park and Community Center
CATEGORY: Investment in Capital Infrastructure
ARPA PROJECT ELIGIBILITY CATEGORY
PROJECT FUNDING REQUEST AMOUNT
PROPOSED FUNDING OPTIONS: AMOUNT
ARPA $3,953,000
TBD TBD
Total $3,953,000
BRIEF DESCRIPTION
PROJECT JUSTIFICATION
Is the project ONE-TIME OR ONGOING? ONE-TIME
If project has ONGOING costs, what are the estimated operational costs? AMOUNT
Maintenance $0
Equipment Replacement Cost $0
Total $0
Project is eligible under ARPA's Replacement of Revenue Loss:
•Pay-go spending for building new infrastructure.
Improvements to the Ladera Linda Park and Community Center are needed to meet the existing and future needs of the
community. The facility has passed its useful life, and its uses are very limited in its current condition.
OTHER FISCAL IMPACT
ADDITIONAL INFORMATION
This project is intended to replace the existing buildings located at the site with a new community center, refurbish the
grounds and consists of Removing the existing buildings and infrastructure; Building a new community center and
associated infrastructure; Building a new parking lot; and Building a new park and associated equipment
FINAL TOTAL TBD
ARPA FUNDING REQUEST
On the 2013 Infrastructure Report Card, the existing Community Building, Discovery Room, Multi-
purpose Room, Classrooms and Restrooms all received a grade of “F”. This grading was based on
criteria such as structural/seismic conditions, finishes, functionality of building systems (plumbing,
electrical, HVAC and firefighting), safety issues and sustainability and energy saving.
A-17
CITY OF I ~CHO PALDS VERDES
PROJECT NAME: Pavement Mgmt. Program - Arterial Roadway Rehab (Crenshaw Blvd)
CATEGORY: Investment in Capital Infrastructure
ARPA PROJECT ELIGIBILITY CATEGORY
PROJECT FUNDING REQUEST AMOUNT 1,300,000$
PROPOSED FUNDING OPTIONS: AMOUNT
ARPA $500,000
CIP $800,000
Total $1,300,000
BRIEF DESCRIPTION
PROJECT JUSTIFICATION
Is the project ONE-TIME OR ONGOING?
If project has ONGOING costs, what are the estimated operational costs? AMOUNT
Maintenance $0
Equipment Replacement Cost $0
Total $0
Project is eligible under ARPA's Replacement of Revenue Loss:
•Directly provide services or aid to citizens
•Maintenance of infrastructure
Road conditions are assessed through a triennial inspection and assigned a calculated Pavement Condition Index (PCI) rating
of Very Poor (0-40), Poor (41-59), Fair (60-74), Good (75-85) or Very Good (86-100)
This section of road was inspected in 2019 and had segments with PCI ratings from 72 to 85 (all within the “Good”
classification).
OTHER FISCAL IMPACT
ADDITIONAL INFORMATION
As part of the Arterial Roadways Rehabilitation Program, this project consists of rehabilitating the section of Crenshaw
Boulevard, from the city limit to Seacrest Drive, and consist of resurfacing the existing asphalt; replacing damaged asphalt,
curbs, gutters and sidewalks; replacing pavement markings; and improving drainage (if needed)
ARPA FUNDING REQUEST
Good road conditions with smooth pavement are expected by the City’s residents and businesses.
Timely maintenance reduces the overall lifecycle costs of roadway infrastructure.
A-18
CITVC-1 ~CHOPALOS\/ERDES
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PROJECT NAME: Abalone Cove Sanitary Sewer System Rehabilitation Program
CATEGORY: Investment in Capital Infrastructure
ARPA PROJECT ELIGIBILITY CATEGORY
PROJECT FUNDING REQUEST AMOUNT 3,135,000$
PROPOSED FUNDING OPTIONS: AMOUNT
ARPA $1,567,000
CIP FUND $1,568,000
Total $3,135,000
BRIEF DESCRIPTION
PROJECT JUSTIFICATION
Is the project ONE-TIME OR ONGOING? ONE-TIME
If project has ONGOING costs, what are the estimated operational costs? AMOUNT
Maintenance $0
Equipment Replacement Cost $0
Total $0
Project is eligible under ARPA's Replacement of Revenue Loss:
•Directly provide services or aid to citizens
•Maintenance of infrastructure
The City is obligated to maintain and improve the existing sewer system to minimize the risk of overflows, as the State of
California has adopted a zero tolerance of such overflows. The project consists of two projects: replacing the galvanized pipes
and rehabilitating the lift stations. Additional maintenance costs and possible fines for overflows will be incurred if the
described improvements are not installed.
OTHER FISCAL IMPACT
ADDITIONAL INFORMATION
This project is intended to improve the Abalone Cove Sanitary Sewer system and consists of replacing existing galvanized
pipes; Installing new pumps at four lift stations; Installing new railings; Installing new linings; and Installing a SCADA
(Supervisory Control And Data Acquisition) system
ARPA FUNDING REQUEST
Pipes are prioritized over the replacement of the pumps and the lift stations, as the pipes are more
susceptible to failure.
A-19
CITY OF I ~CHO PALDS VERDES
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PROJECT NAME: Western Ave. Beautification
CATEGORY: Investment in Capital Infrastructure
ARPA PROJECT ELIGIBILITY CATEGORY
PROJECT FUNDING REQUEST AMOUNT 1,400,000$
PROPOSED FUNDING OPTIONS: AMOUNT
ARPA $600,000
GAS TAX (SB-1)$800,000
MEASURE R
Total $1,400,000
BRIEF DESCRIPTION
PROJECT JUSTIFICATION
Is the project ONE-TIME OR ONGOING?
If project has ONGOING costs, what are the estimated operational costs? AMOUNT
Maintenance $0
Equipment Replacement Cost $0
Total $0
Project is eligible under ARPA's Replacement of Revenue Loss:
•Directly provide services or aid to citizens
•Maintenance of infrastructure
Aesthetic improvements to the public right-of-way and adjacent areas would enhance the appeal of the surrounding area,
bolster commerce with local businesses, and reflect positively on the entire City.
OTHER FISCAL IMPACT
ADDITIONAL INFORMATION
This project is intended to enhance the aesthetics of the public right-of way along Western Avenue corridor (from Peninsula
Verde Drive to Summerland Avenue), and consists of: New entrance features; Lighting improvements; Hardscape
improvements; New Street furniture and trash receptacles; and Crosswalk and Landscape improvements
ARPA FUNDING REQUEST
For many years, there has been a general desire by the City to enhance the aesthetics along
the Western Avenue corridor.
Existing commercial and residential developments along Western Ave. would not be
considered desirable or acceptable in today's built environment. The vision for the Western
Avenue corridor is to create a safe and attractive street environment.
A-20
CITVC-1 ~CHOPALOS\/ERDES
PROJECT NAME: Eastview Restroom Remodel & Additional Office Space
CATEGORY: Investment in Capital Infrastructure
ARPA PROJECT ELIGIBILITY CATEGORY
PROJECT FUNDING REQUEST AMOUNT 350,000$
PROPOSED FUNDING OPTIONS: AMOUNT
ARPA $350,000
CIP FUND $0
Total $350,000
BRIEF DESCRIPTION
PROJECT JUSTIFICATION
Is the project ONE-TIME OR ONGOING? ONE-TIME
If project has ONGOING costs, what are the estimated operational costs? AMOUNT
Maintenance $0
Equipment Replacement Cost $0
Total $0
Project is eligible under ARPA's Replacement of Revenue Loss:
•Directly provide services or aid to citizens
•Maintenance of infrastructure
Eastview Park restrooms are old, outdated and in need of repair and redesign. The project will include remodeling the two
single use restrooms and design plans for a staff office room addition to be completed at a later date.
OTHER FISCAL IMPACT
Eastview Park Restroom design and remodel to include a future staff office addition.
ARPA FUNDING REQUEST
A-21
CITY OF I ~CHO PALDS VERDES
PROJECT NAME: Restroom Improvements at Point Vicente Interpretive Center
CATEGORY: Investment in Capital Infrastructure
ARPA PROJECT ELIGIBILITY CATEGORY
PROJECT FUNDING REQUEST AMOUNT 385,000$
PROPOSED FUNDING OPTIONS: AMOUNT
ARPA $385,000
CIP FUND $0
Total $385,000
BRIEF DESCRIPTION
PROJECT JUSTIFICATION
Is the project ONE-TIME OR ONGOING? ONE-TIME
If project has ONGOING costs, what are the estimated operational costs? AMOUNT
Maintenance $0
Equipment Replacement Cost $0
Total $0
Project is eligible under ARPA's Replacement of Revenue Loss:
•Directly provide services or aid to citizens
•Maintenance of infrastructure
The plumbing in the existing restrooms (both interior and exterior) often clogs, requiring the bathrooms to be placed out of
service and is a source of regular complaints from the public.
Even when in service, the restrooms often smell bad as a result of poor plumbing.
OTHER FISCAL IMPACT
ADDITIONAL INFORMATION
This project is intended to improve the function and aesthetics of the bathrooms (interior and exterior) at the Point Vicente
Interpretive Center and consists of: Replacing existing plumbing, plumbing fixtures, wall and ceiling surfaces, and flooring;
Installing new stall dividers, new lighting fixtures, mirrors and accessory equipment
ARPA FUNDING REQUEST
Bathroom improvements are needed at the PVIC to better represent the City of Rancho Palos
Verdes, and provide better facilities to the public and those who rent the facility for weddings and
special events.
A-22
CITY OF I ~CHO PALDS VERDES
PROJECT NAME: Stormwater Drainage Improvements - PVDS at Peppertree
CATEGORY: Investment in Capital Infrastructure
ARPA PROJECT ELIGIBILITY CATEGORY
PROJECT FUNDING REQUEST AMOUNT 1,035,000$
PROPOSED FUNDING OPTIONS: AMOUNT
ARPA $1,035,000
GAS TAX (HUTA)
MEASURE R
Total $1,035,000
BRIEF DESCRIPTION
PROJECT JUSTIFICATION
Is the project ONE-TIME OR ONGOING? ONE-TIME
If project has ONGOING costs, what are the estimated operational costs? AMOUNT
Maintenance $0
Equipment Replacement Cost $0
Total $0
Project is eligible under ARPA's Replacement of Revenue Loss:
•Directly provide services or aid to citizens
•Maintenance of infrastructure
This project controls erosion, manages the ground water and reduces the likelihood of flooding.
OTHER FISCAL IMPACT
ADDITIONAL INFORMATION
This project is intended to repair storm drain systems, and consists of Replacing and improving the existing underground
storm drain system (lateral pipes and main storm drain pipes) and Installing new catch basins, drainage inlets and
manholes
ARPA FUNDING REQUEST
The 2015 Master Plan of Drainage identified needed improvements throughout the City and
this location was included in a list of areas to be improved.
A-23
CITY OF I ~CHO PALDS VERDES
PROJECT NAME: Park Monument Signage
CATEGORY: Investment in Capital Infrastructure
ARPA PROJECT ELIGIBILITY CATEGORY
PROJECT FUNDING REQUEST AMOUNT 350,000$
PROPOSED FUNDING OPTIONS: AMOUNT
ARPA $350,000
Total $350,000
BRIEF DESCRIPTION
PROJECT JUSTIFICATION
Is the project ONE-TIME OR ONGOING?
If project has ONGOING costs, what are the estimated operational costs? AMOUNT
Maintenance $0
Equipment Replacement Cost $0
Total $0
Project is eligible under ARPA's Replacement of Revenue Loss:
•Directly provide services or aid to citizens
•Maintenance of infrastructure
Many existing monument signs that are out of date, old and/or in need of repair. The monument signage should have a fresh
new look to boldly identify RPV and the park(s).
OTHER FISCAL IMPACT
ADDITIONAL INFORMATION
Redesign and installation of new park monument entry signs at various park locations.
ARPA FUNDING REQUEST
Project would consist of redesigning the current look of the monument signs and independently specify the needs at each
facility. Needs could include location, lighting, landscaping, etc.
Locations to include the following park facilities:
Hesse, Ryan, Abalone Cove, Point Vicente Interpretive Center (Lower Point Vicente), Civic Center (Upper Point Vicente),
Del Cerro, Madeline Ryan Sunset Park, Founders, Vanderlip, Ladera Linda, Eastview, Clovercliff, Grandview, Martingale,
Pelican Cove, and Vista Catalina.
A-24
CITVC-1 ~CHOPALOS\/ERDES
PROJECT NAME: Park Playground Repairs/Improvements
CATEGORY: Investment in Capital Infrastructure
ARPA PROJECT ELIGIBILITY CATEGORY
PROJECT FUNDING REQUEST AMOUNT 350,000$
PROPOSED FUNDING OPTIONS: AMOUNT
ARPA $350,000
CIP FUND $0
Total $350,000
BRIEF DESCRIPTION
PROJECT JUSTIFICATION
Is the project ONE-TIME OR ONGOING?
If project has ONGOING costs, what are the estimated operational costs? AMOUNT
Maintenance $0
Equipment Replacement Cost $0
Total $0
Project is eligible under ARPA's Replacement of Revenue Loss:
•Directly provide services or aid to citizens
•Maintenance of infrastructure
The Department of Public Works is hiring a consultant to review and assess City owned facilities and parks. Based on the
outcome of this facility asset review which includes playgrounds and playground areas, the City will address areas of concern
and update the playground structures and surfacing.
OTHER FISCAL IMPACT
New park playground repairs and improvements to address areas of concern identified by a facility asset review conducted
by a Public Works consultant.
ARPA FUNDING REQUEST
A-25
CITY OF I ~CHO PALDS VERDES
PROJECT NAME: Hesse Park Audio Visual Equipment Upgrades
CATEGORY: Investment in Information Technology Infrastructure
ARPA PROJECT ELIGIBILITY CATEGORY
PROJECT FUNDING REQUEST AMOUNT 270,000$
PROPOSED FUNDING OPTIONS: AMOUNT
ARPA $270,000
CIP FUND $0
Total $270,000
BRIEF DESCRIPTION
PROJECT JUSTIFICATION
Is the project ONE-TIME OR ONGOING?
If project has ONGOING costs, what are the estimated operational costs? AMOUNT
Maintenance $10,000
Equipment Replacement Cost $0
Total $10,000
Project is eligible under ARPA's Replacement of Revenue Loss:
•Directly provide services or aid to citizens
•Maintenance of infrastructure
•Protection of critical infrastructure
While the current Hesse Park setup has worked reasonably well since the introduction of hybrid meetings, in order to provide
a reliable and sustainable performance more upgrades and changes will need to be made to the equipment and configuration
of the McTaggart Hall Audio and Video system. The issues and risks identified in the 2018 assessment still exist and more
potential areas of improvement and potential points of failure have been identified. The design plan should account for the
ability to move as much of the new equipment as possible when the new civic center is operational.
OTHER FISCAL IMPACT
ADDITIONAL INFORMATION
Upgrades and enhancements to the Audio/Video and other equipment to meet or exceed current and future expectations
and requirements for virtual hybrid meetings
ARPA FUNDING REQUEST
PROPOSED PLAN AND TIMELINE:
Phase 1 -Engage a partner like Integrated Media System, who has a vast knowledge and
experience in municipal Audio/Video and broadcast space to create a “needs, wants and
options” analysis. This document will include potential enhancements, City’s requirements
and upgrades required to ensure full compatibility with online meeting platforms and to help
the City meet all the future potential State mandates (AB 339).
Phase 2 –Based on the “needs, wants and options” document, issue an RFP to Design and
Build the system. The design proposal will evaluate the existing systems and facility and
design the solutions which will meet all current and future City requirements and address all
current and potential risks.
A-26
CITVO f ~CHO PALDS VERDES
PROJECT NAME: Information Technology Infrastructure Upgrades
CATEGORY: Investment in Information Technology Infrastructure
ARPA PROJECT ELIGIBILITY CATEGORY
PROJECT FUNDING REQUEST AMOUNT 250,000$
PROPOSED FUNDING OPTIONS: AMOUNT
ARPA $250,000
CIP FUND $0
Total $250,000
BRIEF DESCRIPTION
PROJECT JUSTIFICATION
Is the project ONE-TIME OR ONGOING? ONE-TIME
If project has ONGOING costs, what are the estimated operational costs? AMOUNT
Maintenance $7,000
Equipment Replacement Cost $48,000
Total $55,000
Project is eligible under ARPA's Replacement of Revenue Loss:
•Directly provide services or aid to citizens
•Maintenance of infrastructure
•Protection of critical infrastructure
Please see attached for more details for each proposed project.
OTHER FISCAL IMPACT
ADDITIONAL INFORMATION
IT Infrastructure projects to replace aging equipment (servers, storage, firewalls, switches and wireless access points) and
improve security, reporting, alerting and scalability.
ARPA FUNDING REQUEST
There are a total of 4 separate sub-projects,for more details please refer to the attached
documentation.
1. Firewall Upgrades -useful life of 6 years and replacement cost of $30,000
2. Wireless Upgrades -useful life of 5 years and replacement cost of $15,000. Annual
maintenance of $2,000.
3. Server Infrastructure Upgrades -implement Hyper-Converged Infrastructure (HCI) -
useful life of 5 years and replacement cost of $150,000
4. Network Upgrade and Redesign -useful life of 7 years and replacement cost of $70,000.
Annual maintenance cost of $5,000.
A-27
CITY OF I ~CHO PALDS VERDES
PROJECT NAME: Information Technology Infrastructure Upgrades
CATEGORY: Investment in Information Technology Infrastructure
ARPA PROJECT ELIGIBILITY CATEGORY
PROJECT FUNDING REQUEST AMOUNT 25,000$
PROPOSED FUNDING OPTIONS: AMOUNT
ARPA $25,000
CIP FUND $0
Total $25,000
BRIEF DESCRIPTION
PROJECT JUSTIFICATION
Is the project ONE-TIME OR ONGOING? ONE-TIME
If project has ONGOING costs, what are the estimated operational costs? AMOUNT
Maintenance $0
Equipment Replacement Cost $5,000
Total $5,000
Project is eligible under ARPA's Replacement of Revenue Loss:
•Directly provide services or aid to citizens
•Maintenance of infrastructure
•Protection of critical infrastructure
New generation firewalls provide cloud management, enhanced security, reporting, alerting and scalability. The existing
Sonicwall NSA 5600 have been purchased in early 2015 and are reaching the end of useful life and mainstream vendor
support and should be replaced with new generation firewalls with security advanced security features.
OTHER FISCAL IMPACT
ADDITIONAL INFORMATION
Upgrade the existing two 6+ year old Sonicwall firewalls at the City Hall with new generation Fortinet or Palo Alto firewalls.
ARPA FUNDING REQUEST
Palo Alto and Fortinet are consistently named as the "Leaders" in the Network Firewalls
Magic Quadrant annually published by Gartner. While not the cheapest from all the other
options, they are a proven, stable vendor with a stellar records and are successfully being
used by other agencies and municipalities in Southern California.
Expected Useful Life: 6 years
Estimated Replacement Cost: $30,000
A-28
CITY OF I ~CHO PALDS VERDES
PROJECT NAME: Information Technology Infrastructure Upgrades
CATEGORY: Investment in Information Technology Infrastructure
ARPA PROJECT ELIGIBILITY CATEGORY
PROJECT FUNDING REQUEST AMOUNT 15,000$
PROPOSED FUNDING OPTIONS: AMOUNT
ARPA $15,000
CIP FUND $0
Total $15,000
BRIEF DESCRIPTION
PROJECT JUSTIFICATION
Is the project ONE-TIME OR ONGOING? ONE-TIME
If project has ONGOING costs, what are the estimated operational costs? AMOUNT
Maintenance $2,000
Equipment Replacement Cost $0
Total $2,000
Project is eligible under ARPA's Replacement of Revenue Loss:
•Directly provide services or aid to citizens
•Maintenance of infrastructure
Upgrade all wireless access points throughout the City Hall and major parks with modern, secure access points. More robust
wireless network, on top of enhanced security, would provide more reliable connectivity for events taking place outside the
City Hall (4th of July etc.) and enable secure access to internal resources by the City staff.
OTHER FISCAL IMPACT
ADDITIONAL INFORMATION
Upgrade wireless access points at the City Hall, Hesse Park and PVIC.
ARPA FUNDING REQUEST
Expected Useful Life: 5 years
Estimated Replacement Cost: $15,000
A-29
CITY OF I ~CHO PALDS VERDES
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PROJECT NAME: Information Technology Infrastructure Upgrades
CATEGORY: Investment in Information Technology Infrastructure
ARPA PROJECT ELIGIBILITY CATEGORY
PROJECT FUNDING REQUEST AMOUNT 140,000$
PROPOSED FUNDING OPTIONS: AMOUNT
ARPA $140,000
CIP FUND $0
Total $140,000
BRIEF DESCRIPTION
PROJECT JUSTIFICATION
Is the project ONE-TIME OR ONGOING? ONE-TIME
If project has ONGOING costs, what are the estimated operational costs? AMOUNT
Maintenance $0
Equipment Replacement Cost $0
Total $0
Project is eligible under ARPA's Replacement of Revenue Loss:
•Directly provide services or aid to citizens
•Maintenance of infrastructure
•Protection of critical infrastructure
Currently the back-end server infrastructure comprises of 3 DELL servers purchased in May 2016 and a Nimble CS215
Array SAN which was purchased in 2014 and is longer be supported by the manufacturer. The iSCSI switches connecting the
SAN to DELL servers are already heavily dated (purchased in 2012) and should be upgraded with modern, more secure and
reliable devices. Overall it is highly recommended that the back-end infrastructure is upgraded to prevent outages and
potential risks due to the equipment age. Hyper-Converged Infrastructure combines the functionality of servers, SAN and
switches to provide a single management interface and great reliability, security and scalability.
OTHER FISCAL IMPACT
ADDITIONAL INFORMATION
Replace and upgrade the entire back-end server infrastructure (physical servers, storage devices and storage network).
ARPA FUNDING REQUEST
Currently the City of Rancho Palos Verdes has 6 physical and 35 virtual servers hosting
multiple applications, databases and files totaling close to 12 terabytes. Those machines
facilitate all the necessary access and resources to assist city employees with performing their
day to day duties. The proposed Hyper-Converged Infrastructure should combine the
functionality of most of the devices captured in the picture to the side in a small, power
efficient, scalable and more powerful modular chassis.
Expected Useful Life: 5 years
Estimated Replacement Cost: $150,000
A-30
CITVOF I ~CHOPALDS\!ERDES
PROJECT NAME: Information Technology Infrastructure Upgrades
CATEGORY: Investment in Information Technology Infrastructure
ARPA PROJECT ELIGIBILITY CATEGORY
PROJECT FUNDING REQUEST AMOUNT 70,000$
PROPOSED FUNDING OPTIONS: AMOUNT
ARPA $70,000
CIP FUND $0
Total $70,000
BRIEF DESCRIPTION
PROJECT JUSTIFICATION
Is the project ONE-TIME OR ONGOING? ONE-TIME
If project has ONGOING costs, what are the estimated operational costs? AMOUNT
Maintenance $5,000
Equipment Replacement Cost $0
Total $5,000
Project is eligible under ARPA's Replacement of Revenue Loss:
•Directly provide services or aid to citizens
•Maintenance of infrastructure
•Protection of critical infrastructure
The internal network infrastructure, while robust, is aging quickly and does not provide some of the modern layers of
protection and resilience. It is recommended that all networking devices are upgraded to cloud-managed, modern and more
secure devices. Patch cables should all be replaced, labeled and tidied up during this project.
OTHER FISCAL IMPACT
ADDITIONAL INFORMATION
Upgrade core and campus network switches to new generation devices.
ARPA FUNDING REQUEST
Pictured here is one of the wiring closets at the City Hall. Upgrading switches and cabling
would not only provide the additional security and administrating features, but also improve
the look and the ability to track down and troubleshoot connectivity problems.
Expected Useful Life: 7 years
Estimated Replacement Cost: $60,000
A-31
CITY OF I ~CHO PALDS VERDES
PROJECT NAME: Wildfire Monitoring Cameras
CATEGORY: Investment in the Protection of Life and Property
ARPA PROJECT ELIGIBILITY CATEGORY
PROJECT FUNDING REQUEST AMOUNT 125,000$
PROPOSED FUNDING OPTIONS: AMOUNT
ARPA $125,000
CIP FUND $0
Total $125,000
BRIEF DESCRIPTION
PROJECT JUSTIFICATION
Is the project ONE-TIME OR ONGOING? ONE-TIME
If project has ONGOING costs, what are the estimated operational costs? AMOUNT
Maintenance $6,000
Equipment Replacement Cost $12,500
Total $18,500
Project is eligible under ARPA's Replacement of Revenue Loss:
• Directly provide services or aid to citizens
PROTECTION OF LIFE, PROPERTY AND THE ENVIRONMENT:
Federal Emergency Management Agency (FEMA) Fact Sheet:
• "Mitigation is the effort to reduce the loss of life and property by lessening the impact of disasters.”
• "A recent study by the multihazard mitigation council shows that each dollar spent on mitigation saves an average of four dollars."
• Using the above‐mentioned formula, the city's mitigation investment of $125,000 results in a $500,000 savings in emergency losses.
The City of Rancho Palos Verdes’ holds the Dubious Honor of Being the most populated City in the State with 90 percent or more of
residents jiving in a Very High Fire Hazard Severity Zone (VHFHSZ)
City of Rancho Palos Verdes Multi‐Jurisdictional Hazard Mitigation Plan Outlined Action Item:
• “Participation in the alert wildfire camera program and fire detection network in partnership with neighboring jurisdictions and outside
research and/or utility companies.”
City of Rancho Palos Verdes City Council August 17, 2021, Agenda item number 4: Consideration and possible action to receive a report on
installing Wildfire Monitoring Cameras.
OTHER FISCAL IMPACT
ADDITIONAL INFORMATION
Purchase of five high‐definition cameras and implementation of a Peninsula wide program to monitor for wildfires in the city's open space.
ARPA FUNDING REQUEST
During the City Council meeting on August 17, city staff presented a report to the council on the
installation of wildfire monitoring cameras throughout the city's open space areas.
During this meeting the Council expressed interest in establishing a permanent city program to
monitor for wildfires in the City's canyons and open space areas using these cameras and directed
staff to investigate the feasibility of establishing a joint wildfire monitoring camera system with the
three neighboring peninsula cities and and report back to the City Council at a subsequent meeting
with a scope of work, cost estimates, and final locations for consideration and adoption by the City
Council.
A-32
C ITVO t ~D-IOPAIDS\JERDES
□--------------------
□, _________________________________________ _
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□---------------------------------------------
AXIS QbO-E PTZ Dome Network Comeias
o..:l:xt.-PttOJmes
PROJECT NAME: Development of a Peninsula-wide Evacuation Plan
CATEGORY: Investment in the Protection of Life and Property
ARPA PROJECT ELIGIBILITY CATEGORY
PROJECT FUNDING REQUEST AMOUNT 100,000$
PROPOSED FUNDING OPTIONS: AMOUNT
ARPA $100,000
CIP FUND $0
Total $100,000
BRIEF DESCRIPTION
PROJECT JUSTIFICATION
Is the project ONE-TIME OR ONGOING? ONE-TIME ONE-TIME
If project has ONGOING costs, what are the estimated operational costs? AMOUNT
Maintenance $0
Equipment Replacement Cost $0
Total $0
Project is eligible under ARPA's Replacement of Revenue Loss:
•Directly provide services or aid to citizens
PROTECTION OF LIFE, PROPERTY AND THE ENVIRONMENT:
Federal Emergency Management Agency (FEMA) Fact Sheet:
• "Mitigation is the effort to reduce the loss of life and property by lessening the impact of disasters.”
• "A recent study by the multihazard mitigation council shows that each dollar spent on mitigation saves an average of four dollars."
• Using the above‐mentioned formula, the city's mitigation investment of $100,000 results in a $400,000 savings in emergency losses.
Palos Verdes Peninsula Regional Coordination Tabletop Exercise After Action Review Improvement Plan Matrix:
• OBSERVATION: "During an emergency, law enforcement and fire agencies are responsible for organizing and implementing
evacuations.”
• RECOMMENDATION: "Further coordination is needed amongst the Palos Verdes Peninsula Cities and first responder agencies,
to develop contingent evacuation approaches and identification of safe refuge areas to optimize evacuation flow for different
fire conditions.”
Review of Woolsey Fire Response by Malibu City Management ‐ Evacuation and Repopulation Recommendations 47 ‐49
• Establish a tiered evacuation plan for Malibu working with public safety agencies (LA Sheriff’s Department, CHP, LA Fire, Caltrans),
with emphasis on certain steps to follow when calling for an evacuation.
• Working with first responders, Caltrans, and traffic engineers, develop contingent evacuation approaches by overlaying fire
progression models on traffic simulation programs and optimizing evacuation flow for different fire conditions.
• Develop a set of safe refuge areas with open space, parking and fire hardened structures based on the results of evacuation
modeling.
OTHER FISCAL IMPACT
Fund a third‐party consultant to create a Peninsula‐wide evacuation plan that includes evacuation routes, safe refuge areas, and evacuation zones
similar to those in the City of Malibu, as well as a repopulation plan and strategy/outline for community outreach and awareness.
ADDITIONAL INFORMATION
ARPA FUNDING REQUEST
During the August 12,2021,Peninsula Public Safety Committee's (PPSC)meeting,the City of
Rancho Palos Verdes Emergency Services Coordinator presented a strategy for developing
Peninsula-wide mass evacuation plans and requested that the Committee consider hiring an
experienced consultant to develop a comprehensive emergency operations evacuation
"playbook"for the Peninsula that incorporates the components of an effective evacuation plan
as outlined in the PPSC meeting's staff report.
Following the Committee's discussion,the PPSC motioned that the City of Rancho Palos Verdes
take the lead in developing and publishing a Request for Proposal for an independent third-party
consultant to develop a comprehensive plan for the entire Palos Verdes Peninsula.
A-33
CITVOI lt~a-tOPALDS\/ERDES
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□--------------------------------------
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Palo s Ve rdes P e 11i11 .Htla
Ingress & Egress Map
PROJECT NAME: Resupply of the City Emergency Supplies
CATEGORY: Investment in Protection of Life and Property
ARPA PROJECT ELIGIBILITY CATEGORY
PROJECT FUNDING REQUEST AMOUNT 100,000$
PROPOSED FUNDING OPTIONS: AMOUNT
ARPA $100,000
CIP FUND $0
Total $100,000
BRIEF DESCRIPTION
PROJECT JUSTIFICATION
Is the project ONE-TIME OR ONGOING? ONGOING (EVERY FIVE YEARS)
If project has ONGOING costs, what are the estimated operational costs? AMOUNT
Maintenance $0
Equipment Replacement Cost $3,000
Total $3,000
Project is eligible under ARPA's Replacement of Revenue Loss:
•Directly provide services or aid to citizens
PROTECTION OF LIFE, PROPERTY AND THE ENVIRONMENT:
Federal Emergency Management Agency (FEMA) Fact Sheet:
• "Mitigation is the effort to reduce the loss of life and property by lessening the impact of disasters.”
• "A recent study by the multihazard mitigation council shows that each dollar spent on mitigation saves an average of four dollars."
• Using the above‐mentioned formula, the city's mitigation investment of $100,000 results in a $400,000 savings in emergency losses.
Woolsey Fire After Action Report recommendation identified by the City of Rancho Palos Verdes Emergency Preparedness Committee
under the overarching theme of resources:
• “Identify and preposition emergency resources and supplies to be used as needed.”
OTHER FISCAL IMPACT
ADDITIONAL INFORMATION
Resupply the City’s strategically pre‐position critical emergency supplies and equipment in cargo containers around the City to ensure use by City
disaster workers, first responders, and registered disaster workers within the first 72 hours following a disaster.
ARPA FUNDING REQUEST
Below is a categorical list of emergency supplies and equipment that would be stored in one or more cargo
containers around the City:
• Portable Lights (i.e. flashlights)
• Emergency Power (generators, batteries)
• Communication Devices (megaphones, walkie-talkies, radios)
• Traffic Control and Safety Equipment (barricades, road closure signs, flares)
• Debris Clearance Tools (saws, shovels, pumps)
• Personal Protective Gear (gloves, raincoats)
• Start-Up Shelter for 50 Disaster Workers/50 Homeless Residents (sanitation kits, cots, water)
• Start-Up Medical Triage (first aid and mass casualty supplies)
A-34
CITY OF t ~Q-10 PAIDS VERDES
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City of Rancho Palos Verdes
ARPA Funds
Proposed Projects Status
Project Name ARPA Funding
Planning
Status (CIP)
Design Status
(CIP)
Target
Construction Date or
Purchase Date
Target Spent
Date Additional Fiscal Information
Ladera Linda Community Center and Park Project $3,953,000
100%
complete
50%
complete FY 2021-22 12/31/2023
If approved, may lower the financing amount needed for the project
by $3.9 million. Additionally, may generate available funds in CIP by
$150,000 which is included in the approved Five-Year CIP Program for
FY 21-22.
Pavement Management Program - Crenshaw Blvd.$500,000
100%
complete
75%
complete FY 2023-24 12/31/2024
Included in the Five-Year Capital Improvement Program with funding
of $1.3 million in FY 23-24. As such, funding this project under ARPA
would generate available funds in CIP that can be used for future
projects and initiatives.
Abalone Cove Sanitary Sewer Rehabilitation $1,567,000
100%
complete
50%
complete FY 2022-23 12/31/2023
Included in the Five-Year Capital Improvement Program with funding
of $2.4 million in FY 22-23 and $715,000 in FY 23-24. As such, funding
this project under ARPA would generate available funds in CIP that can
be used for future projects and initiatives.
Western Ave. Beautification $600,000 0% complete 0% complete FY 2023-24 12/31/2024
Included in the Five-Year Capital Improvement Program with funding
of $400,000 to be determined at a future year.
Eastview Restroom and Remodel Additional Office
Space $350,000 0% complete 0% complete FY 2022-23 12/31/2023
NEW project. Project is a deferred maintenance that is normally
supported by the General Fund or CIP Fund.
Restroom Improvements at Point Vicente
Interpretive Center $385,000 0% complete 0% complete FY 2022-23 12/31/2023
Included in the Five-Year Capital Improvement Program with funding
of $175,000 in FY 21-22 and $210,000 to be determined. As such,
funding this project under ARPA would generate available funds in CIP
that can be used for future projects and initiatives.
Storm Water Drainage Improvement - PVDS at
Peppertree $1,035,000
100%
complete
75%
complete FY 2022-23 12/31/2023
Included in the Five-Year Capital Improvement Program with funding
of $1 million in FY 23-24. As such, funding this project under ARPA
would generate available funds in CIP that can be used for future
projects and initiatives.
Park Monument Signage $350,000 0% complete 0% complete FY 2022-23 12/31/2023
NEW project. Project is a deferred maintenance that is normally
supported by the General Fund or CIP Fund.
Park Playground Improvements $350,000 0% complete 0% complete FY 2022-23 12/31/2023
NEW project. Project is a deferred maintenance that is normally
supported by the General Fund or CIP Fund.
Hesse Park Technology Upgrades $270,000 N/A N/A FY 201-22 12/31/2022
NEW Project. This is a combination of an upgrade in technology and
deferred maintenance that would be normally supported by the
General Fund.
Information Technology Infrastructure Upgrades $250,000 N/A N/A FY 201-22 12/31/2022
NEW Project. This is a combination of an upgrade in technology and
deferred maintenance that would be normally supported by the
General Fund.
Replenishment of the City's Emergency Supplies $100,000 N/A N/A
As soon as funds are approved
and purchasing requirements are
met.12/31/2022
NEW Project. This is part of the City’s operating supplies that would be
normally supported by the General Fund.
Development of a Peninsula-wide Evacuation Plan $100,000 N/A N/A
As soon as funds are approved
and contract service requirements
are met 12/31/2022
NEW Project. This is part of the City’s operating services that would be
normally supported by the General Fund.
Wildfire Monitoring Cameras $125,000 N/A N/A
As soon as funds are approved
and contract service requirements
are met.12/31/2022
NEW Project. This is part of the City’s operating services that would be
normally supported by the General Fund.
TOTAL $9,935,000
Investment in Capital Infrastructure (Improvements and Repairs)
Investment in Technology Infrastructure
Investment in Protection of Life and Property
A-35
FINANCE ADVISORY COMMITTEE MEETING DATE: 08/24/2021
AGENDA REPORT
AGENDA TITLE:
Consideration and possible action to receive and file an update report on the American
Rescue Plan Act.
RECOMMENDED FINANCE ADVISORY COMMITTEE ACTION:
1. Receive and file an update report on the American Rescue Plan Act (ARPA).
2. Discuss and provide comments on the preliminary ARPA’s proposed spending
plan.
FISCAL IMPACT: N/A
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Vina Ramos, Deputy Director of Finance
REVIEWED BY: Trang Nguyen, Director of Finance
APPROVED BY: Same as above
ATTACHED SUPPORTING DOCUMENTS:
A. None
BACKGROUND:
On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law, amending
Title VI of the Social Security Act to add Section 602 which establishes the Coronavirus
State Fiscal Recovery Fund (CSFR) and Section 603 which establishes the Coronavirus
Local Fiscal Recovery Fund (CLFR). ARPA is a relief package that provides state and
local fiscal aid of $350 billion in emergency funding for state, local, territorial, and Tribal
governments. The funding objectives defined by the Department of Treasury (DOT) 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 inequal impact of the pandemic.
A-36
V(L
As defined in CLFR Section 603 (g)(5) of the Social Security Act, local governments that
are serving populations of less than 50,000 are categorized as “non-entitlement units of
local government (NEUs). For all NEUs, the DOT disburses the funds to the state
governments, then distributes to the cities based on the population of the NEU. The local
governments will receive funds in two tranches, with 50% estimated to be distributed in
June 2021 and the balance to be distributed twelve months later.
As such, since the City of Rancho Palos is serving population of less than 50,000, the
allocation will be disbursed by the State of California. Initially, the information released in
February 2021 is that the City’s estimated allocation is $7.8 million. Since then, that
allocation has increased to $9.9 million based on the following formula calculated by DOT.
On June 10, the City submitted its request for ARPA’s allocations to the State of
California Department of Finance (DOF). Subsequently, on July 13, the City received
the first disbursement on July 13, in the amount of $4.97 million, which is half of the
City’s allocation.
DISCUSSION:
Eligible Uses
On May 10, 2021, the Department of Treasury issued the “Interim Final Rule” (or draft)
to provide guidelines on the ARPA. The summary of the eligibility information are as
follows:
Eligible Uses: Four Main Categories
A. Containing/mitigating COVID-19 or negative economic impact.
B. Premium pay for essential workers.
C. For government services to the extent of the loss of revenue. This category is the
most pertinent to local agencies and defined as follows:
• Directly provide services or aid to citizens.
• Maintenance or pay-go funded building of infrastructure, including roads.
• Modernization of cybersecurity, including hardware, software, and
protection of critical infrastructure.
• Health services.
Total NEU Population 5,092,613
City of Rancho Palos Verdes 41,530
% of RPV's Population to NEU 0.82%
California's NEU Allocation 1,218,261,277
RPV's Share of NEU Allocation $9,934,859
A-37
• Environmental remediation.
• School or educational services; and
• The provision of police, fire, and other public safety services.
D. Investments in water, sewer, and broadband infrastructure.
Ineligible Uses
A. Pension payments.
B. Replenishing of reserves.
C. Payment on any debt instruments.
D. Offset to tax cuts caused by a change in local law.
E. Federal grant matching requirements.
The Interim Final Rule also stipulated that the fund s must be committed by December
31, 2024 and spent by December 31, 2026.
Of the four main categories, the Category C “government services to the extent of the
loss of revenue” is the least restrictive and provides the most flexibility to local
government. Under this category, the City must calculate the reduction in revenues due
to the negative economic impact from the pandemic. To recognize that the City may
experience lagged effects of the pandemic on revenues, DOT’s Interim Final Rule
permits the City to calculate the extent of reduction in revenue as four points i n time for
period ending December in 2020,2021, and 2023.
Staff has calculated the City’s revenue loss using the revenue loss calculator provided
by the League of California Cities in collaboration with the California Society of
Municipal Finance Officers (CSMFO). The calculator was designed based on DOT’s
guidelines and particularly for local agencies. Based on DOT’s guidelines, the following
are the major methods used to determine revenue loss:
• Use base year actual revenues as the most recent fiscal year prior to the
public health emergency (FY 2018-2019).
• Apply calculated growth adjustment using average percent revenue
growth in 3 full fiscal years.
• Use modified accrual basis of accounting.
• Use General Revenues:
• Includes revenues regardless of the level of discretion over the use
of the funds, including fees, charges, special taxes, assessments,
etc. for all governmental funds.
• Excludes Trust, Fiduciary, or Internal Service Funds
• Excludes water, electric, gas, transit, federal grants, proceeds from
debt or financing.
As illustrated on Table 1, based on the calculation of revenue loss requirements, a s of
December 31, 2020, the City’s estimated revenue loss is almost $9.9 million and a
projected revenue loss of $6.7 million by December 2021, $6.1 million in December
2022, and $6.2 million in December 2023 for a total of almost $29 million for all funds.
A-38
Table 1: Revenue Loss Calculation
Preliminary Spending Plan
Since the announcement of the eligibility requirements for ARPA funds, Staff have
worked together to compile a list of projects to assist with developing a preliminary
spending plan. In this process, Staff have set the following framework based on the
DOT’s guidelines and local government agencies’ guiding principles in spending ARPA
funds:
• Consider eligible projects that directly provide services or aid to citizens,
maintenance or pay-go funded building of infrastructure, modernization of
cybersecurity, including hardware, software, and protection of critical
infrastructure.
• Higher priority on projects with one-time costs and deferred maintenance that
are normally supported by the General Fund.
• Higher priority on capital projects. The Capital Improvement Fund (CIP) is the
most affected fund from the economic downturn due to the reduced transfers
from the revenue loss in Transient Occupancy Taxes. Hence, it would be
prudent and consistent with eligibility requirements to allocate ARPA funding
for the City’s capital infrastructure projects. The framework for choosing
capital projects are as follows:
o Consider deferred citywide projects.
o Consider unfunded or partially funded projects in the adopted FY 2021-
22 Five-Year Capital Improvement Program. These projects have been
A-39
Ameri:an Rescue Plan
Coronavirus State and Loca l Fisca l Recovery Funds
Publ ic Revenue Loss Calcu lator -for Ca l iforn ia Cities
V2.0Furw:I Buis (Mod lied Am.nl)
A&ency Name: Cly of Rancho Pabs Ve-des
A&oncv O>rnct lnt,.. _______ Tr_a_ng.,._N_,guy"-'--e-,-',_Di_·r_ecto~_r_o~I_Fl_na_nc_e ______ --1
Dilll: Monda,-, Jl.<le 28, 2021
LEAGUE
OF CALJrOR IA
C l T l E 111111
Ba$eYea..-Reven.ie: The ornounrc( rewnue.s co aed in rhcmosr reamr
fisa,I yea: pric, rorlwl pullic lwlalth errwm;en cy (i.e , tlwl last fiscd yea,
befae .D1ua.ry ~ 30.lq;c.dled rhe base yeir valw.
$38,560,768 I
~------J~mm •AamR~Ml!'m•.s:'"worJahutcl'I f1Q
GroNth Adjun:mera-: TM aarage pie.rant r..wnw growrh i"n rlv rhr4!~fu l
Ji~' )Pa.s:pn·or ro m~ Ca.tJD-.19 pc;l2ic Ma h l'm l'rge-n.cy-or~ 4_1 ~r ant
whid!,tt.(lr i s-9.rearet.
Fi,c:>I v .. r Erw:I D>!!r The dao, for rlwl mosrrecentful fisa,lyear prior co
rlwl d,cta,ao'on cf pullic lwlalth emergencyon JC11>uary27, 20.2Q
428% I
~-----~~rom • Aauo/Re..,nues • worksheercd F12 or 4.H6whidle..,, is 9teorer.
.k..-.e 30, 2019
_______________ R_e_v_en_u_e_Lo_<_<_S_u_nvna __ rv _______________ conp.,~dfrom "Acrud~M!':nlli!.s" waJi.sMet.
fund 1,a,,·•of aa,ounring (modi~d acaud) Months CounterfilctU-il Actu.11 Revenue
Report,rc Perod Et~i:z.ed R@v4!f"l.li! Rewe-11 .. Loss
J...,a,yl, 2020-Decen-oer 31, 2020 lS S 41,064,731 S31, 183,370 -S9,881,362
J ..-.iory l, 2021-Dec-31, 2021 3) S 42,823, 733 S36,086,989 -$6,736,744
J ...,a,y 1, 2022-Dec-31, 2022 42 S44,6sa,C81 S38s60'5,270 -$6,0'Q,812
J ..-.iory l, 2023 • Decl!fflber 31, 2023 54 S 46,571,co; 540,265,296 -$6,.la;,707
Toral -S28,976,624
approved by the Infrastructure Management Advisory Committee and
adopted during the budget process by the City Council.
o Projects with high degree of confidence that funds will be spent by
December 31, 2026.
Based on these guiding principles and after a vigilant review of the proposed projects
from the Department Heads and final approval from the City Manager, Staff narrowed
down the list and developed the following four spending categories and Table 2 is a
summary of the projects with estimated costs:
• $8,670,000 Investment in Capital Infrastructure (Improvements and Repairs)
• $100,000 Investment in Community Services
• $540,000 Investment in Information Technology Infrastructure
• $625,000 Investment in Protection of Life and Property
A-40
Table 2: Recommended Projects for ARPA
As recommended by the Finance Advisory Committee and approved by City Council on
May 18, 2021, the proposed list includes a portion of the funding for the Ladera Linda
Community Center and Park Project. As part of the financing option approved, the City
may utilize up to 50% of the ARPA funds for the project. After developing the list and the
recommended projects, approximately $3.5 million or 35% of the ARPA funds would be
proposed to be allocated to the project.
Project Name Category ARPA Fund
Ladera Linda Community Center and
Park Project (*partial funding)
Investment in Capital
Infrastructure $3,533,000
Pavement Management Program
Arterial Roadway Rehabilitation
(Crenshaw Blvd) (*partial funding)
Investment in Capital
Infrastructure $500,000
Abalone Cove Sanitary Sewer
Rehabilitation (*partial funding)
Investment in Capital
Infrastructure $1,567,000
Western Ave Beautification (*partial
funding)
Investment in Capital
Infrastructure $600,000
Eastview Restroom Remodel &
Additional Office Space
Investment in Capital
Infrastructure $350,000
Restroom Improvements at Point
Vicente Interpretive Center
Investment in Capital
Infrastructure $385,000
Stormwater Drainage Improvements –
Palos Verdes Drive South at
Peppertree Drive
Investment in Capital
Infrastructure $1,035,000
Park Monument Signage
Investment in Capital
Infrastructure $350,000
Park Playground Improvements
Investment in Capital
Infrastructure $350,000
Ranger Station
Investment in Community
Services $100,000
Hesse Park Upgrades
Investment in Information
Technology $270,000
IT Infrastructure Upgrades
Investment in Information
Technology $270,000
Wildfire Monitoring Cameras
Investment in Protection
of Life and Property $425,000
Development of a Peninsula-wide
Evacuation Plan
Investment in Protection
of Life and Property $100,000
Replenish the City Emergency Supplies
Investment in Protection
of Life and Property $100,000
TOTAL RECOMMENDED PROJECTS $9,935,000
A-41
On the next page, Table 3 is a list of projects that were requested from the Departments
but were not advanced for ARPA funding and four of the projects in the list were
recommended for partial funding. As shown in Table 3, the following four projects would
be proposed for partial ARPA funding: Pavement Management Program (Crenshaw
Blvd.), Abalone Cove Sanitary Sewer Rehabilitation, and Western Beautification. For the
remaining projects, it would be the City Council’s discretion to approve the projects from
other funding sources.
A-42
Table 3: Partial ARPA Funding and Projects Not Advanced for ARPA Funding
Project Name Category
Amount
Not Funded by
ARPA
ARPA
Funding
Ladera Linda Community Center and
Park Projects
Investment in Capital
Infrastructure $1,434,000 $3,533,000
Pavement Management Program
Arterial Roadway Rehabilitation
(Crenshaw Blvd)
Investment in Capital
Infrastructure $800,000 $500,000
Abalone Cove Sanitary Sewer
Rehabilitation
Investment in Capital
Infrastructure $1,568,000 $1,567,000
Western Ave Beautification
Investment in Capital
Infrastructure $800,000 $600,000
Bubbles Marquee
Investment in Capital
Infrastructure $350,000
Citywide and Preserve Trail
Improvements
Investment in Capital
Infrastructure $150,000
Picnic Reservation Areas
Investment in Capital
Infrastructure $500,000
Nursery School Site Restoration and
Remodel
Investment in Capital
Infrastructure $750,000
Restore Frozen Assistant Planner
Investment in Community
Services $100,000
Trails Risk Manager/Consultant
Investment in Community
Services $70,000
Part-time Planning Intern
Investment in Community
Services $40,000
Trail Counters
Investment in Community
Services $18,000
Enforcement Mobile Computer
Investment in Community
Services $15,000
Park Ranger Radios
Investment in Community
Services $126,000
Restore Frozen Senior Engineer
Position
Investment in Community
Services $175,000
PCI Compliance Implementation
Investment in Information
Technology $15,000
Business Continuity Plan
Investment in Information
Technology $5,000
Disaster Recovery Plan
Investment in Information
Technology $5,000
EOC Supplies & Equipment Upgrades
Investment in Protection
of Life and Property $35,000
(2) Fire fighting skids for the ranger
trucks
Investment in Protection
of Life and Property $85,000
TOTAL PROJECT REQUESTS $7,041,000
A-43
OTHER INFORMATION:
The funding for ARPA is subject to the requirements specified in the Interim Final Rule
(draft) adopted by the DOT in May 2021. DOT is scheduled to complete the final
guidelines at the end of August. While the final guidelines have not been issued, the
information received from DOT and local government organizations states that local
agencies may start the planning process by referring to the Interim Final Rule. Staff
anticipates that the potential changes are to clarify provisions in the rule and possibly
more flexibility of the ARPA program. Staff will continue to monitor the requirements and
report any changes int the future.
CONCLUSION:
The preliminary spending plan presented tonight was developed by City management
based on ARPA’s eligibility, required timeline, deferred citywide projects, and City
Council’s approved capital projects but are unfunded and partially funded. Staff
anticipates that the utilization of ARPA funds for the proposed projects would relieve the
General Fund for needed one-time program costs and deferred maintenance projects and
generate available funds in CIP that can be used for future projects and initiatives.
The staff report for the proposed projects is tentatively scheduled for the City Council’s
review on September 21, 2021. At this meeting, Staff will present the projects and request
for City Council’s directions on how to allocate ARPA funds. In tonight’s meeting, Staff is
requesting for the Committee’s feedback and/or comments that will be included in the
September 21 staff report.
A-44
INFRASTRUCTURE MANAGEMENT ADVISORY COMMITTEE
SPECIAL MEETING
Pursuant to Section 3 of Executive Order N-29-20, issued by Governor Gavin Newsom on
March 17, 2020, the Special Meeting of the INFRASTRUCTURE MANAGEMENT
ADVISORY COMMITTEE for Monday, August 30, 2021 at 6 P.M. will be conducted via
teleconference using the Zoom platform. These measures are to protect the public and City
employees and to do our part to slow the spread of COVID-19. For public participation options
please see separate cover.
AGENDA
INFRASTRUCTURE MANAGEMENT ADVISORY COMMITTEE
MONDAY, AUGUST 30, 2021
VIRTUAL PLATFORM ONLY
6:00 P.M. SPECIAL MEETING
CALL TO ORDER: Chair Don Swanson
ROLL CALL: Committee Member Sean O’Connor
Committee Member Peter Shaw
Committee Member Bryant Tam
Committee Member Lowell Wedemeyer
Vice Chair John Spielman
Vice Chair Tina Vargas
Chair Don Swanson
PLEDGE OF ALLEGIANCE: To be announced
APPROVAL OF AGENDA
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CITY OF RANCHO PALOS VERDES
NEW BUSINESS:
Items listed under the New Business consists of new agenda items and will be voted on separately.
Those wishing to speak on any agenda item(s) will be limited to three (3) minutes to address the
Infrastructure Management Advisory Committee. Those wishing to address the Infrastructure
Management Advisory Committee should refer to the separate cover for public participation options or
visit www.rpvca.gov/participate
1. Proposed plan for utilization of American Rescue Plan Act (ARPA) funding (Awwad)
Recommendation: Review and provide feedback/recommendations on staff’s draft
proposal to utilize American Rescue Plan Act (ARPA) funding
Agenda Report
ADJOURNMENT:
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Advisory Board
Agendas and
Agenda Reports:
Agendas and agenda reports are available for public review within 72 hours of the meeting at City Hall,
30940 Hawthorne Boulevard during regular business hours, 7:30 A.M. to 5:30 P.M. Monday – Thursday
and 7:30 A.M. to 4:30 P.M. on Friday; Saturday and Sunday from 10:00 A.M. until dusk; and at the City’s
website www.rpvca.gov
Materials related to an item on an agenda submitted after distribution of the agenda packet are available
for public inspection at the front counter of the lobby of the City Hall Administration Building at 30940
Hawthorne Boulevard, Rancho Palos Verdes during normal business hours.
Public
Correspondence:
We highly encourage written materials regarding Advisory Board Agenda items be submitted no later than
4:00 P.M. the Monday prior to a Advisory Board meeting to allow the Advisory Board Members ample time
to review and consider the issues raised prior to making decisions at the Advisory Board meeting. Please
keep in mind that it is difficult for Advisory Board Members to carefully review materials submitted after
that deadline or at the meeting. Written materials, including emails, submitted to the City are public
records and may be posted on the City’s website. Accordingly, you may wish to omit personal information
from your written materials or oral presentation as it may become part of the public record regarding an
agendized item. In addition, City meetings may be recorded and may be accessed through the City's
website.
Public Participation: Participants must speak from the podium using the lectern microphone; comments are to be directed to
the Advisory Board Members and not to the staff or the public; repetition should be avoided; and reading a
submission that has been copied or contained in the agenda will be discouraged.
Public Comments: The Advisory Board may limit the public input on any item based on the number of people requesting to
speak, the length of the agenda, or the business of the Advisory Board.
Conduct at the
Advisory Board
Meeting:
The Chair shall order removed from the Meeting any person(s) who commit the following acts at a meeting
of the Advisory Board: Disorderly, contemptuous or insolent behavior toward the Advisory Board or any
member thereof, tending to interrupt the due and orderly course of said meeting; a breach of the peace,
boisterous conduct or violent disturbance, tending to interrupt the due and orderly course of said meeting;
disobedience of any lawful order of the Chair, which shall include an order to be seated or to refrain from
addressing the Advisory Board from the audience; any other unlawful interference with the due and
orderly course of the meeting.
Time Estimates: The time noted next to an agenda item is only an estimate of the amount of time that will be spent during
the meeting on that particular item. Accordingly, these estimates should not be relied on in determining
when a matter will be heard, especially since agenda items are often re-ordered during a meeting and
may be discussed at any time.
Continuation of
Meeting:
The Advisory Board will adjourn its meetings on or before 11:00 p.m. and will not consider new business
items after 10:15 p.m., unless the majority of the Advisory Board members who are present affirmatively
vote either to extend the meeting after 11:00 p.m. or to consider new business after 10:15 p.m. If the
meeting ends before all of the items listed on the agenda are completed, any unfinished business will be
continued to the next succeeding day that is not a holiday, at a location to be determined.
American with
Disabilities Act:
In compliance with the Americans with Disabilities Act, if you require a disability-related modification or
accommodation to attend or participate in this meeting, including auxiliary aids or services, please contact
the City Clerk’s Office at least 48 hours prior to the meeting at any of the following: cityclerk@rpvca.gov;
310-544-5217; 30940 Hawthorne Blvd., Rancho Palos Verdes, CA 90275.
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MEMORANDUM
TO: Infrastructure Management Advisory Committee Members
FROM: Ramzi Awwad, Director of Public Works
DATE: August 30, 2020
SUBJECT: Proposed use of anticipated American Rescue Plan Act (ARPA)
funding
RECOMMENDATION
1.Review and provide feedback/recommendations on the Staff’s draft proposed use of
anticipated federal funding allocated by the American Rescue Plan Act (ARPA)
BACKGROUND
As summarized by the attached staff report to the Finance Advisory Committee (attachment A),
the City’s estimated allocation of federal funding from the American Rescue Plan Act (ARPA) was
$7.8 million; however that allocation has increased to $9,934,859.
As more thoroughly explained in attachment A, funds must be committed by December 31, 2024
and spent by December 31, 2026, and there are four main categories of uses:
Containing/mitigating COVID-19 or negative economic impact
Premium pay for essential workers
For governmental services to the extent of the loss of revenue. This category is most
pertinent to local agencies and defined as follows:
-Directly provide services or aid to citizens
-Maintenance or pay-go funded building of infrastructure, including roads
-Modernization of cybersecurity, including hardware, software, and protection of
critical infrastructure
-Health services
-Environmental remediation
-School or educational services; and
-The provision of police, fire, and other public safety services
Investments in water, sewer, and broadband infrastructure
Process for Determining Projects to Propose to the City Council for Utilization of ARPA
Funds
In preparing a recommendation for the City Council to consider, the City Manager met with
department directors to help program the anticipated funding in a way that best serves the
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community while meeting funding criteria and guidelines. Initial requests were then vetted by the
Finance Department to ensure funding eligibility. Although the resulting proposal prioritizes one -
time infrastructure projects, it also includes other projects that serve the community directly and
indirectly.
Infrastructure Projects Proposed for Utilizing ARPA Funding
Infrastructure projects proposed for ARPA funding were chosen based on the following criteria:
Eligible for ARPA funding;
Very high likelihood of completing the project within the ARPA deadline based on current
project status;
Project size is large enough to absorb the administrative work associated with federal
requirements.
The resulting list of infrastructure projects proposed by staff to utilize ARPA funding is as follows:
Project
Code
Project Description
Proposed
ARPA funds
8202 Abalone Cove Sanitary Sewer Rehabilitation Program
Prioritizes important infrastructure
Original budget of $2,420,000 in CIP funding in FY22-23 and $715,000 in
CIP funding in FY 23-24
- “frees up” $1,567,000 in CIP funds in FY22-23
Proposed ARPA funds equate to approximately 50% of project costs
Construction start in FY22-23
$1,567,000
(supplemented
by other funding)
8405 Ladera Linda Park and Community Center
City Council Goal #10
Original budget of $150,000 in CIP funding in FY21-22 and TBD in other
FYs
- “frees up” $150,000 in CIP funds in FY21-22
Proposed ARPA funds amount equates to balance of awarded funds after
the budgets for other projects has been allocated
$3,533,000
(with remaining
expenses to be
financed)
8508 Restroom Improvements at the Point Vicente Interpretive Center
Original two phases to be combined for economic efficiency
Original budget of $175,000 in CIP funding in FY21-22 and $210,000 in
CIP funding in FY TBD
- “frees up” $175,000 in CIP funds in FY21-22
Construction start in FY22-23
$385,000
8715 Stormwater Drainage Improvements – Palos Verdes Drive South at
Peppertree Drive
Prioritizes important infrastructure
Reduces infiltration in the landslide area
Original budget of $1,035,000 in CIP funding in FY23-24
Construction start in FY22-23
$1,035,000
8808 Pavement Management Program – Arterial Roadway Rehabilitation
– Crenshaw Boulevard
Prioritizes a long-anticipated infrastructure project
Original budget of $1,300,000 in CIP funding in FY23-24
Construction start in FY22-23
$500,000
(supplemented
by other funding)
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8840 Western Avenue Beautification
Prioritizes a project that is important to many residents
Original budget of $400,000 in CIP funding in FY TBD
Construction in FY23-24
$600,000
(supplemented
by $800,000 in
Gas Tax funding)
New Park Monument Signs
Provides new signs to identify public park sites
Construction start in FY22-23
$350,000
New Eastview Restroom Improvements and Added Office Space
Improves deteriorating infrastructure and create plans for an additional
office location to be completed at a later date
Staff recommends combining this project with the Restroom Improvements
at PVIC for economic efficiency
Construction start in FY22-23
$350,000
New Park Playground Improvements
Repairs and Improvements identified that are identified in a future Facility
Assessment Report
Construction start in FY22-23
$350,000
Subtotal $8,670,000
The allocation of ARPA funds will “free up” $225,000 in CIP funding in Fiscal Year 2021-22 and
$1,567,000 in Fiscal Year 2022-23. Those “freed up” CIP funds are then available to be used as
supplemental funding to the ARPA funds as ARPA funded projects are expedited and “moved up”
to earlier fiscal years.
To help address the organizational capacity of the Public Works department in managing the
additional workload of these projects to ensure their timely completion, staff will be proposing that
the City Council authorize the “un-freezing” of the second Senior Engineer position. That
recommendation has an equivalent cost of $131,000 and represents nine months of that
permanent position, as the position would be filled on October 1, 2021 at the earliest. Staff will
be proposing that the position be funded by the General Fund, after revised revenue projections
were determined by the Finance Department to be capable of supporting that additional expense
for the nine months of Fiscal Year 2021-22 and for the foreseeable future.
Other (non-infrastructure) projects proposed for utilizing ARPA funding
In addition to the Infrastructure projects identified above, Staff expects to propose that the City
Council utilize ARPA funds for the following non-infrastructure project and initiatives in the amount
of $1,265,000:
1. Wildfire Monitoring Cameras ($425,000)
2. Ranger Station ($100,000)
3. Hesse Park Information Technology upgrades ($270,000)
4. Information Technology upgrades ($270,000)
5. Development of a Peninsula-wide Evacuation Plan ($100,000)
6. Replenish the City’s Emergency Supplies ($100,000)
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FINANCE ADVISORY COMMITTEE MEETING DATE: 08/24/2021
AGENDA REPORT
AGENDA TITLE:
Consideration and possible action to receive and file an update report on the American
Rescue Plan Act.
RECOMMENDED FINANCE ADVISORY COMMITTEE ACTION:
1. Receive and file an update report on the American Rescue Plan Act (ARPA).
2. Discuss and provide comments on the preliminary ARPA’s proposed spending
plan.
FISCAL IMPACT: N/A
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Vina Ramos, Deputy Director of Finance
REVIEWED BY: Trang Nguyen, Director of Finance
APPROVED BY: Same as above
ATTACHED SUPPORTING DOCUMENTS:
A. None
BACKGROUND:
On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law, amending
Title VI of the Social Security Act to add Section 602 which establishes the Coronavirus
State Fiscal Recovery Fund (CSFR) and Section 603 which establishes the Coronavirus
Local Fiscal Recovery Fund (CLFR). ARPA is a relief package that provides state and
local fiscal aid of $350 billion in emergency funding for state, local, territorial, and Tribal
governments. The funding objectives defined by the Department of Treasury (DOT) 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 inequal impact of the pandemic.
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V(L
As defined in CLFR Section 603 (g)(5) of the Social Security Act, local governments that
are serving populations of less than 50,000 are categorized as “non -entitlement units of
local government (NEUs). For all NEUs, the DOT disburses the funds to the state
governments, then distributes to the cities based on the population of the NEU. The local
governments will receive funds in two tranches, with 50% estimated to be distributed in
June 2021 and the balance to be distributed twelve months later.
As such, since the City of Rancho Palos is serving population of less than 50,000, the
allocation will be disbursed by the State of California. Initially, the information released in
February 2021 is that the City’s estimated allocation is $7.8 million. Since then, that
allocation has increased to $9.9 million based on the following formula calculated by DOT.
On June 10, the City submitted its request for ARPA’s allocations to the State of
California Department of Finance (DOF). Subsequently, on July 13, the City received
the first disbursement on July 13, in the amount of $4.97 million, which is half of the
City’s allocation.
DISCUSSION:
Eligible Uses
On May 10, 2021, the Department of Treasury issued the “Interim Final Rule” (or draft)
to provide guidelines on the ARPA. The summary of the eligibility information are as
follows:
Eligible Uses: Four Main Categories
A. Containing/mitigating COVID-19 or negative economic impact.
B. Premium pay for essential workers.
C. For government services to the extent of the loss of revenue. This category is the
most pertinent to local agencies and defined as follows:
Directly provide services or aid to citizens.
Maintenance or pay-go funded building of infrastructure, including roads.
Modernization of cybersecurity, including hardware, software, and
protection of critical infrastructure.
Health services.
Total NEU Population 5,092,613
City of Rancho Palos Verdes 41,530
% of RPV's Population to NEU 0.82%
California's NEU Allocation 1,218,261,277
RPV's Share of NEU Allocation $9,934,859
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Environmental remediation.
School or educational services; and
The provision of police, fire, and other public safety services.
D. Investments in water, sewer, and broadband infrastructure.
Ineligible Uses
A. Pension payments.
B. Replenishing of reserves.
C. Payment on any debt instruments.
D. Offset to tax cuts caused by a change in local law.
E. Federal grant matching requirements.
The Interim Final Rule also stipulated that the fund s must be committed by December
31, 2024 and spent by December 31, 2026.
Of the four main categories, the Category C “government services to the extent of the
loss of revenue” is the least restrictive and provides the most flexibility to local
government. Under this category, the City must calculate the reduction in revenues due
to the negative economic impact from the pandemic. To recognize that the City may
experience lagged effects of the pandemic on revenues, DOT’s Interim Final Rule
permits the City to calculate the extent of reduction in revenue as four points in time for
period ending December in 2020,2021, and 2023.
Staff has calculated the City’s revenue loss using the revenue loss calculator provided
by the League of California Cities in collaboration with the California Society of
Municipal Finance Officers (CSMFO). The calculator was designed based on DOT’s
guidelines and particularly for local agencies. Based on DOT’s guidelines, the following
are the major methods used to determine revenue loss:
Use base year actual revenues as the most recent fiscal year prior to the
public health emergency (FY 2018-2019).
Apply calculated growth adjustment using average percent revenue
growth in 3 full fiscal years.
Use modified accrual basis of accounting.
Use General Revenues:
• Includes revenues regardless of the level of discretion over the use
of the funds, including fees, charges, special taxes, assessments,
etc. for all governmental funds.
• Excludes Trust, Fiduciary, or Internal Service Funds
• Excludes water, electric, gas, transit, federal grants, proceeds from
debt or financing.
As illustrated on Table 1, based on the calculation of revenue loss requirements, as of
December 31, 2020, the City’s estimated revenue loss is almost $9.9 million and a
projected revenue loss of $6.7 million by December 2021, $6.1 million in December
2022, and $6.2 million in December 2023 for a total of almost $29 million for all funds.
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Table 1: Revenue Loss Calculation
Preliminary Spending Plan
Since the announcement of the eligibility requirements for ARPA funds, Staff have
worked together to compile a list of projects to assist with developing a preliminary
spending plan. In this process, Staff have set the following framework based on the
DOT’s guidelines and local government agencies’ guiding principles in spending ARPA
funds:
Consider eligible projects that directly provide services or aid to citizens,
maintenance or pay-go funded building of infrastructure, modernization of
cybersecurity, including hardware, software, and protection of critical
infrastructure.
Higher priority on projects with one-time costs and deferred maintenance that
are normally supported by the General Fund.
Higher priority on capital projects. The Capital Improvement Fund (CIP) is the
most affected fund from the economic downturn due to the reduced transfers
from the revenue loss in Transient Occupancy Taxes. Hence, it would be
prudent and consistent with eligibility requirements to allocate ARPA funding
for the City’s capital infrastructure projects. The framework for choosing
capital projects are as follows:
o Consider deferred citywide projects.
o Consider unfunded or partially funded projects in the adopted FY 2021 -
22 Five-Year Capital Improvement Program. These projects have been
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Ameri:an Rescue Plan
Coronavirus State and Loca l Fisca l Recovery Funds
Publ ic Revenue Loss Calcu lator -for Ca l iforn ia Cities
V2.0Furw:I Buis (Mod lied Am.nl)
A&ency Name: Cly of Rancho Pabs Ve-des
A&oncv O>rnct lnt,.. _______ Tr_a_ng.,._N_,guy"-'--e-,-',_Di_·r_ecto~_r_o~I_Fl_na_nc_e ______ --1
Dilll: Monda,-, Jl.<le 28, 2021
LEAGUE
OF CALJrOR IA
C l T l E 111111
Ba$eYea..-Reven.ie: The ornounrc( rewnue.s co aed in rhcmosr reamr
fisa,I yea: pric, rorlwl pullic lwlalth errwm;en cy (i.e , tlwl last fiscd yea,
befae .D1ua.ry ~ 30.lq;c.dled rhe base yeir valw.
$38,560,768 I
~------J~mm •AamR~Ml!'m•.s:'"worJahutcl'I f1Q
GroNth Adjun:mera-: TM aarage pie.rant r..wnw growrh i"n rlv rhr4!~fu l
Ji~' )Pa.s:pn·or ro m~ Ca.tJD-.19 pc;l2ic Ma h l'm l'rge-n.cy-or~ 4_1 ~r ant
whid!,tt.(lr i s-9.rearet.
Fi,c:>I v .. r Erw:I D>!!r The dao, for rlwl mosrrecentful fisa,lyear prior co
rlwl d,cta,ao'on cf pullic lwlalth emergencyon JC11>uary27, 20.2Q
428% I
~-----~~rom • Aauo/Re..,nues • worksheercd F12 or 4.H6whidle..,, is 9teorer.
.k..-.e 30, 2019
_______________ R_e_v_en_u_e_Lo_<_<_S_u_nvna __ rv _______________ conp.,~dfrom "Acrud~M!':nlli!.s" waJi.sMet.
fund 1,a,,·•of aa,ounring (modi~d acaud) Months CounterfilctU-il Actu.11 Revenue
Report,rc Perod Et~i:z.ed R@v4!f"l.li! Rewe-11 .. Loss
J...,a,yl, 2020-Decen-oer 31, 2020 lS S 41,064,731 S31, 183,370 -S9,881,362
J ..-.iory l, 2021-Dec-31, 2021 3) S 42,823, 733 S36,086,989 -$6,736,744
J ...,a,y 1, 2022-Dec-31, 2022 42 S44,6sa,C81 S38s60'5,270 -$6,0'Q,812
J ..-.iory l, 2023 • Decl!fflber 31, 2023 54 S 46,571,co; 540,265,296 -$6,.la;,707
Toral -S28,976,624
approved by the Infrastructure Management Advisory Committee and
adopted during the budget process by the City Council.
o Projects with high degree of confidence that funds will be spent by
December 31, 2026.
Based on these guiding principles and after a vigilant review of the proposed projects
from the Department Heads and final approval from the City Manager, Staff narrowed
down the list and developed the following four spending categories and Table 2 is a
summary of the projects with estimated costs:
$8,670,000 Investment in Capital Infrastructure (Improvements and Repairs)
$100,000 Investment in Community Services
$540,000 Investment in Information Technology Infrastructure
$625,000 Investment in Protection of Life and Property
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Table 2: Recommended Projects for ARPA
As recommended by the Finance Advisory Committee and approved by City Council on
May 18, 2021, the proposed list includes a portion of the funding for the Ladera Linda
Community Center and Park Project. As part of the financing option approved, the City
may utilize up to 50% of the ARPA funds for the project. After developing the list and the
recommended projects, approximately $3.5 million or 35% of the ARPA funds would be
proposed to be allocated to the project.
Project Name Category ARPA Fund
Ladera Linda Community Center and
Park Project (*partial funding)
Investment in Capital
Infrastructure $3,533,000
Pavement Management Program
Arterial Roadway Rehabilitation
(Crenshaw Blvd) (*partial funding)
Investment in Capital
Infrastructure $500,000
Abalone Cove Sanitary Sewer
Rehabilitation (*partial funding)
Investment in Capital
Infrastructure $1,567,000
Western Ave Beautification (*partial
funding)
Investment in Capital
Infrastructure $600,000
Eastview Restroom Remodel &
Additional Office Space
Investment in Capital
Infrastructure $350,000
Restroom Improvements at Point
Vicente Interpretive Center
Investment in Capital
Infrastructure $385,000
Stormwater Drainage Improvements –
Palos Verdes Drive South at
Peppertree Drive
Investment in Capital
Infrastructure $1,035,000
Park Monument Signage
Investment in Capital
Infrastructure $350,000
Park Playground Improvements
Investment in Capital
Infrastructure $350,000
Ranger Station
Investment in Community
Services $100,000
Hesse Park Upgrades
Investment in Information
Technology $270,000
IT Infrastructure Upgrades
Investment in Information
Technology $270,000
Wildfire Monitoring Cameras
Investment in Protection
of Life and Property $425,000
Development of a Peninsula-wide
Evacuation Plan
Investment in Protection
of Life and Property $100,000
Replenish the City Emergency Supplies
Investment in Protection
of Life and Property $100,000
TOTAL RECOMMENDED PROJECTS $9,935,000
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On the next page, Table 3 is a list of projects that were requested from the Departments
but were not advanced for ARPA funding and four of the projects in the list were
recommended for partial funding. As shown in Table 3, the following four projects would
be proposed for partial ARPA funding: Pavement Management Program (Crenshaw
Blvd.), Abalone Cove Sanitary Sewer Rehabilitation, and Western Beautification. For the
remaining projects, it would be the City Council’s discretion to approve the projects from
other funding sources.
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Table 3: Partial ARPA Funding and Projects Not Advanced for ARPA Funding
Project Name Category
Amount
Not Funded by
ARPA
ARPA
Funding
Ladera Linda Community Center and
Park Projects
Investment in Capital
Infrastructure $1,434,000 $3,533,000
Pavement Management Program
Arterial Roadway Rehabilitation
(Crenshaw Blvd)
Investment in Capital
Infrastructure $800,000 $500,000
Abalone Cove Sanitary Sewer
Rehabilitation
Investment in Capital
Infrastructure $1,568,000 $1,567,000
Western Ave Beautification
Investment in Capital
Infrastructure $800,000 $600,000
Bubbles Marquee
Investment in Capital
Infrastructure $350,000
Citywide and Preserve Trail
Improvements
Investment in Capital
Infrastructure $150,000
Picnic Reservation Areas
Investment in Capital
Infrastructure $500,000
Nursery School Site Restoration and
Remodel
Investment in Capital
Infrastructure $750,000
Restore Frozen Assistant Planner
Investment in Community
Services $100,000
Trails Risk Manager/Consultant
Investment in Community
Services $70,000
Part-time Planning Intern
Investment in Community
Services $40,000
Trail Counters
Investment in Community
Services $18,000
Enforcement Mobile Computer
Investment in Community
Services $15,000
Park Ranger Radios
Investment in Community
Services $126,000
Restore Frozen Senior Engineer
Position
Investment in Community
Services $175,000
PCI Compliance Implementation
Investment in Information
Technology $15,000
Business Continuity Plan
Investment in Information
Technology $5,000
Disaster Recovery Plan
Investment in Information
Technology $5,000
EOC Supplies & Equipment Upgrades
Investment in Protection
of Life and Property $35,000
(2) Fire fighting skids for the ranger
trucks
Investment in Protection
of Life and Property $85,000
TOTAL PROJECT REQUESTS $7,041,000
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OTHER INFORMATION:
The funding for ARPA is subject to the requirements specified in the Interim Final Rule
(draft) adopted by the DOT in May 2021. DOT is scheduled to complete the final
guidelines at the end of August. While the final guidelines have not been issued, the
information received from DOT and local government organizations states that local
agencies may start the planning process by referring to the Interim Final Rule. Staff
anticipates that the potential changes are to clarify provisions in the rule and possibly
more flexibility of the ARPA program. Staff will continue to monitor the requirements and
report any changes int the future.
CONCLUSION:
The preliminary spending plan presented tonight was developed by City management
based on ARPA’s eligibility, required timeline, deferred citywide projects, and City
Council’s approved capital projects but are unfunded and partially funded. Staff
anticipates that the utilization of ARPA funds for the proposed projects would relieve the
General Fund for needed one-time program costs and deferred maintenance projects and
generate available funds in CIP that can be used for future projec ts and initiatives.
The staff report for the proposed projects is tentatively scheduled for the City Council’s
review on September 21, 2021. At this meeting, Staff will present the projects and request
for City Council’s directions on how to allocate ARPA funds. In tonight’s meeting, Staff is
requesting for the Committee’s feedback and/or comments that will be included in the
September 21 staff report.
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FINANCE ADVISORY COMMITTEE MEETING DATE: 09/09/2021
AGENDA REPORT
AGENDA TITLE:
Consideration and possible action to receive and file an update report on the American
Rescue Plan Act.
RECOMMENDED FINANCE ADVISORY COMMITTEE ACTION:
1. Receive and file an update report on the American Rescue Plan Act (ARPA); and
2. Discuss and provide comments on the preliminary ARPA’s proposed spending
plan.
FISCAL IMPACT: N/A
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Vina Ramos, Deputy Director of Finance
REVIEWED BY: Trang Nguyen, Director of Finance
APPROVED BY: Same as above
ATTACHED SUPPORTING DOCUMENTS:
A. Finance Advisory Committee August 24, 2021 Report (A-1)
B. Infrastructure Management Advisory Committee Report (B-1)
BACKGROUND:
On August 24, 201, Staff presented to the Finance Advisory Committee (FAC) an
update on the City’s allocation of $9.9 million from the American Rescue Plan Act
(ARPA). In addition, Staff presented the preliminary spending plan consisting of the
proposed projects developed by City management. After reviewing the list, the FAC
asked Staff to bring back additional information on the estimated schedule for capital
projects since one of ARPA’s stipulation is that funds must be spent by December 31,
2026. The requested information is presented in Table 1 on the next page. The same
information was presented to the Infrastructure Management Advisory Committee
(IMAC) in a special meeting that was held on August 30. The items presented in Table 1
includes a summary of the scope and the timeline of the capital projects.
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V(L
Table 1: ARPA’s Proposed Projects with Target Schedule
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Proj ect Proposed
Code P ro ject Descripti on ARPA funds
8202 Abalone Cove San itary Sewer Rehabilitation Prog ram $1 ,567,000
■ Prioritizes important infrastructure (suppl eme nted
■ Origi nal budget of 2,420,000 i n GIP fund ing in FY22-23 and 715,000 in by other fu nding )
CIP funding in FY 23-24
-"frees up• $1 ,567 ,000 in CIP funds in FY22-23
■ Proposed ARPA funds equate to approximately 50% of project costs
■ Construction start in FY22-23
8405 Ladera Linda Park and Commun ity Cen te r $3 ,533,000
■ City Council Goal #10 (with rema ini ng
■ Origi nal budget of $150,000 in CIP fundi ng in FY21-22 and TBD i n other expenses to be
FYs fi nanced)
-"frees up• $150,000 in CIP funds in FY21 -22
■ Proposed ARPA funds amount equates o balance of awarded funds after
the budgets tor other projects has been allocated
8508 Restroom Improvements a t the Po int Vicente Interpretive Center $385 ,000
■ Origi nal two phases to be combined for economic efficiency
■ Origi nal budget of $175,000 in CIP funding in FY21 -22 and $210 ,000 in
GIP funding in FY TBD
-"frees up• $175.000 in GIP fu nds in FY21 -22
■ Construction start in FY22-23
8715 Stormwater Dra in age Improvements -Palos Verdes Drive South at $1 ,035 ,000
Peppertree Drive
■ Priori ti zes important infrastructure
■ Reduces i nfiltration i n the lan dsli de area
■ Ori gi nal budget of 1,035,000 in CIP fund ing in FY23-24
• Construction start in FY22-23
8808 Pavement Management Progra m -Arte rial Roadway Rehab ilitation $500 ,000
-Crenshaw Boulevard (supplemented
• Priori ti zes a long-antici pated infrastructure proj ect by other fund ing )
■ Ori gi na l budget or 1,300.000 in CIP fu ndi ng in FY23-24
• Construction start i n FY22-23
8840 Westem Aven ue Beautificati on $600 ,000
■ Prioritizes a proj ect that is important to many res ide nts (supplemented
■ Original budget of $400,000 in CIP fund ing in FY TBD by $800 ,000 in
■ Construction in FY23-24 Gas Tax fun di ng )
New Park Monument Signs $350 ,000
■ Provides new signs to identify public park s it es
■ Construction start ·n FY22-23
New Eastview Restroom Improvements and Added Office Space $350 ,000
■ Improves deteriorating i nfrastructure and create plans for an additional
office location to be competed at a later date
■ Staff recommends combini ng th i s project with the Restroom Improvements
at PVIC for economic efficiency
■ Construction start i n FY22-23
New Park Playground Improvements $350 ,000
■ Repairs and Improvements identified that are identi fied in a future Facility
Assessment Report
■ Construction start ·n FY22-23
In summary, IMAC preliminary supported Staff’s proposal with the following three
caveats:
1. For City staff to create a list of projects for which ARPA funding will be utilized in
the event that there is unencumbered or unspent ARPA funding available.
2. IMAC to formally review the status projects bi-annually at its regularly scheduled
meetings in March and September.
3. IMAC to formally review the information on new projects not previously included
on the infrastructure and non-infrastructure lists, at an IMAC Meeting.
For other non-infrastructure projects proposed for utilizing ARPA, the estimated
schedule are as follows:
• Wildfire Monitoring Cameras ($425,000)
o Six to eight months after budget appropriation
• Ranger Station ($100,000)
o Target completion date will be ready for the City Council report
• Hesse Park Information Technology upgrades ($270,000)
o Target completion date will be ready for the City Council report
• Information Technology upgrades ($270,000)
o Target completion date will be ready for the City Council report
• Development of a Peninsula-wide Evacuation Plan ($100,000)
o Target completion date will be ready for the City Council report
• Replenish the City’s Emergency Supplies ($100,000)
o Target completion date will be ready for the City Council report
CONCLUSION:
Based on FAC’s feedback from the August 24 meeting, the report submitted includes the
estimated capital project schedules for the ARPA’s proposed spending plan. Additional
Committee’s feedback and/or comments tonight along with IMAC’s recommendations will
be included in the September 21 City Council staff report. At this meeting, Staff will
present the proposed spending plan and projects and request for City Council’s directions
on how ARPA’s funds should be allocated.
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