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09/07/2021 11. Discussion on the use of American Rescue Plan Act (ARPA) funds • 1v41 rr 111 .:Ei iO enc u nrry 1 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 11. For Meeting of: September 7, 2021 ITEM TITLE: Discussion on the use of American Rescue Plan Act(ARPA) funds SUBMITTED BY: Robert Harrison, City Manager SUMMARY EXPLANATION: See attached. ITEM BUDGETED: STRATEGIC PRIORITY: APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Approve report. ATTACHMENTS: Description Upload Date Type 0 ARPA funding memo 9/3/2021 Corer Memo ❑ Funk proposal 8/31/2021 Corer Memo 2 " . 1`'''`1 OFFICE OF THE CITY MANAGER s, 129 North Second Street • City Hall, Yakima, Washington 98901 s,C�`•. I,�s Phone (509) 575-6040 Date: September 3, 2021 To: The Honorable Mayor and Members of City Council From: Bob Harrison, City Manager Subject: American Rescue Plan Act (ARPA) Recommendations The City of Yakima shall receive$26.2 million from the federal government under the American Rescue Plan Act. These funds are provided in two installments of$13.1 million of which the first was received in May 2021 and the second is expected in May 2022. In developing these recommendations, the City Administration used the following guidelines: 1. ARPA rules and guidelines 2. Council Priorities a. Fiscal sustainability b. Investment in Infrastructure c. Public safety d. Housing e. Strengthening community partnerships 3. Existing City financial obligations; city assets; and planned investment 4. Economic Development 5. Leverage ARPA funds to spur additional private or public investment The ARPA funds have provided the City a unique opportunity to leap ahead in meeting basic financial obligations, meet several community needs, enhance the basic productivity of City operations, and assist in economic development. Lost Revenue Utilizing the calculators provided by U.S.Treasury and GFOA, the City determined it is eligible to claim up to $11.9 million in lost revenue from the ARPA Act. The lost revenue makes up for the estimated loss in revenue to the City during the defined time period in the ARPA Act. Once the revenue is booked by the City into the American Rescue Plan Act fund, the City is free to utilize those revenues on a variety of expenses.Thus far in 2021, the City has committed $8,200,000 of this lost revenue to: • $4.6 million for the acquisition of 57 police patrol vehicles • $1.6 million for the acquisition of 2 fire engines • $2 million for the acquisition of the former Bank of America building next to City Hall 3 The City Administration recommends the following uses for the balance of lost revenue: • $1.2 million for an additional fire truck and replacement of several fire department vehicles (2022) • $1 million on the investment in new technology and software for City operations (2021/2022) • $300,000 for an initial space study for the BOA building and other City operations. (2022) • The balance of the$1.2 million we are suggesting claiming when the second payment is received in 2022. ARPA Eligible projects In addition to lost revenue,ARPA designated several opportunities for specific eligible investments as outlined in the ARPA legislation. The City is proposing the following expenditures based on those guidelines for the remaining$14.3 million in ARPA funds. Project Amount Year Mill Site Water&Sewer $6,000,000 2022/23 Sewer Investments $1,000,000 2022 Mental Health/Homeless $1,500,000 2021/22/23 Women and Family Shelter $2,000,000 2022 DV Advocate—City $250,000 2022/23/24 Yakima Convention Center $800,000 2021/22 Community Partnerships $500,000 2022 Affordable Housing $1,000,000 2022 - 2024 Yakima Arts Center $1,250,000 2022 - 2024 The in-depth descriptions of the project can be found below. $6 million for Mill Site Water and sewer improvements (2022/23): This project funds the necessary water and sewer improvements needed for the project. The City is able to maximize the state LIFT program which will provide an additional $6 million in matching funds. The balance of the project costs will need to be funded through a bond issuance and the balance of the LIFT funds. $1 million for sewer investments (2022): There are fully developed residential areas in the City limits that still do not have sewer and are relying on septic systems. This allocation will provide funding for sewers in certain neighborhoods. $1.5 million for homeless/mental health related programs (2021/2022/2023): The City has been working with Comprehensive Healthcare to partner in reducing homelessness and the impact of behavioral health and addition on homelessness. We are finalizing the development of a pilot program in this area. The City is also exploring a partnership to provide a capital investment in a day shelter for homeless individuals. $2 million for YWCA woman's shelter(2022): The City has one of the worst domestic violence rates in the State of Washington. The City has revamped its approach with police and legal and partnering with the YWCA on its approach to domestic violence. This capital grant would be for the investment in woman and family shelter for transitional housing as families try to rebuild their lives. 4 $250,000 for funding for three years of an additional domestic violence advocate (2022): The City currently has one domestic violence advocate and the program has been very successful. The City administration plans to add a second advocate the salary and portion of benefits of which can be offset by ARPA costs for 22, 23, and 24. Based on the outcomes of the program, and existing financial needs at that time, the City will evaluate the position further in the 2025 budget as the full costs of the position will be borne by the City at that time. $800,000 for Yakima Convention Center support(2021/2022):The City has provided $500,000 in support to date for the Yakima Convention Center for lost earned revenue (revenue earned by the facility itself through rentals,etc.). Given the continuing pandemic impact, it is difficult to know when the tourism market will stabilize. Setting aside an additional$300,000 will provide some financial buffer if needed based on how the local tourism economy continues to rebound from the pandemic. If by the end of 2022 the extra set aside is not needed, it could be released for other projects. $500,000 for community partnerships(2022): The Administration is proposing setting aside$500,000 for 5 one-time community partnership grants of$100,000 apiece. We would anticipate issuing an RFP in 2022 that allows non-profit partners to put forth grant proposals that meet varying community needs and that are consistent with the ARPA requirements. $1 million for Affordable Housing(2022/2023): Similar to the community partnerships concept, the City could open an RFP for community partners that can complete an affordable housing project in Yakima within the next three years. $1.25 million for Yakima Community Arts Center (2022/2023): With the acquisition of the BOA building, the City will free up the second floor, and is currently not using the third or fourth floor of the current City Hall building. Remodeling and putting this additional facility space into productive use for educational opportunities for communities that were negatively impacted by COVID will also provide economic development benefits. The City is currently studying an Arts District and the Arts Center could be an anchor for that development. The facility will also provide opportunities throughout the day and evening to offer courses in painting, drawing,dance, and the visual and performing arts. Lastly, moving the Capitol Theater offices to the Yakima Arts Center will also save approximately$50,000 annually which is currently being used for lease costs. While this concept needs additional study, setting aside funds for the remodeling of the existing City Hall will also provide matching funds for potential additional grants that are available for these purposes. (Note: a portion of the space at City Hall will likely still be needed for City Hall internal service offices). 5 American Rescue Plan Project Proposal for Mental Health Challenges in Yakima Kay Funk, MD Updated Program discussion on Sept. 7th, 2021 Specific Problems • "Dumping" of a homeless man who already had trespass orders and outstanding warrants • Death of Tiffany Eubanks and other incidents with impaired and/or intoxicated individuals • Persistent Camping and problem behavior on Naches Parkway • The new requirement that individuals in possession of a controlled substance must be offered diversion to substance use disorder assessment and treatment services at least twice will require increased longitudinal record keeping Background Problems which often result in cross-over of criminal justice and mental health issues • ACEs, dysfunctional parenting, trauma, PTSD • Criminal behavior, eg domestic violence, theft, assault, driving while intoxicated • Possession, sale, and use of illegal intoxicants (stimulants cause more problems) • Addiction/Substance Use Disorder w/legal substances, eg alcohol, MJ, prescription drugs, computer games • Cognitive disability eg developmental delay, encephalopathy, brain injury • Mental health detention criteria (danger to self or others, grave disability) with inadequate resources for detention • Incompetence for self-care (eg dementia)which does not meet criteria for detention Program 1. Financially support a contract with Comprehensive Mental Health for additional Crisis Response Mental Health Professionals (CRPs) to provide needed 24/7 coverage and additional YPD patrol coverage. Currently, there is not enough trained staffing available, and there are frequent long wait times. 2. Inventory the availability of paraprofessional behavioral health workers for EMT calls. Work in partnership with affected agencies (eg: 911 Suncomm, Lower Valley dispatch, YPD, and YFD) to standardize credentialing, protocols, and risk-management. 3. Explore Yakima Fire Department purchase and staffing of 2 paramedic-led emergency response vehicles. This is an option which would work entirely within the Fire Department. 6 Funding Opportunities/References American Rescue Plan Provides More Relief to Local Governments. Eric Lowell. Municipal Research News. Spring 2021. https://mrsc.org/Home/Stay-Informed/M RSC-I nsight/March-2021/America n-Rescue-Plan-Provid es-Relief.aspx "ARPA funds can be used by local governments: • To respond to the public health emergency caused by COVID-19... The ARPA legislation is over six hundred pages long, and this article only covers areas most pertinent to local governments. Also included in ARPA are several other potential grant opportunities for local governments. Your agency may want to pursue funding available in these areas, such as: • Block grants for community mental health services(Section 2701) • Block grants for prevention and treatment of substance abuse(Section 2702) • Grants for local substance use disorder services (Section 2706) • Grants for local behavioral health needs(Section 2707) • Homelessness assistance and supportive services (Section 3205)" Legislature agrees on approach to address Blake https://wacities.org/advocacy!News/advocacy-news12021104/26/legislature-agrees-on-approach to-address-em-blake-em "The legislation requires law enforcement officers who encounter an individual in possession of a controlled substance to offer a diversion to seek substance use disorder assessment and treatment services. The first two interactions by law enforcement must result in such a diversion. Further contacts allow the officer to offer diversion but does not mandate that the officer do so. If an officer arrests and pursues a misdemeanor charge, the prosecutor is not required to prosecute. The prosecutor may offer diversion or move forward with a charge. The Washington State Health Care Authority(HCA)is charged with establishing a recovery services advisory committee to create a substance use recovery services plan. The purpose of the plan is to implement measures to assist those with a substance use disorder in accessing outreach, treatment, and recovery support services that are low-barrier, person-centered, informed by people with lived experience, and culturally and linguistically appropriate. Additionally, the committee must make recommendations regarding the appropriate criminal legal system response, if any, to possession of controlled substances. It must also make recommendations regarding the collection and reporting of data that identifies the number of people law enforcement officers and prosecutors engage with regarding drug possession, and the design of a mechanism for referring people with a substance use disorder, or who display problematic behaviors resulting from substance use, to supportive services. A final plan is due to the Legislature by December 1, 2022. The HCA will also establish several other plans and programs, including: 7 • A comprehensive statewide substance misuse prevention plan. As a part of this plan, the HCA must administer a competitive grant process for existing local community efforts to prevent substance misuse. The plan must be completed by January 1, 2024. • A grant program to provide Treatment for low-income individuals with substance use disorder who are not eligible for Medicaid. Grant distribution must begin by March 1, 2022. • A grant-based homeless outreach stabilization transition program. Grant distribution must begin by March 1, 2022. • Funding for behavioral health administration services organizations to establish recovery navigator programs. These programs will provide community-based outreach, intake, assessment, connection to services, and, as needed, long-term intensive case management and recovery coaching services to individuals with substance use disorders. • An expanded recovery support services program that increases regional access to recovery services for substance use disorder such as housing, employment training, recovery coaching, and legal support. By July 1, 2022, the Criminal Justice Training Commission must develop new training for law enforcement officers on how to manage interactions with people they encounter with substance use disorders, including referral to treatment and recovery services. The training will be incorporated into the curriculum at the Basic Law Enforcement Academy. In addition to the$83.5 million in the state's budget to help the state and counties manage the legal impacts of the Blake decision, SB 5476 includes another$88.4 million to help establish the new programs outlined above. Of that$88.4 million, $4.5 million will go to the Administrative Office of the Courts to help enhance municipal and district therapeutic courts. There are no direct appropriations to cities to offset the costs of diversion and prosecution."