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HomeMy WebLinkAboutItem No. 22 - ARPA Tourism Funding ProgramCity Council Agenda Report City of Lake Elsinore 130 South Main Street Lake Elsinore, CA 92530 www.lake-elsinore.org File Number: ID# 22-022 Agenda Date: 1/11/2022 Status: Approval FinalVersion: 2 File Type: Council Consent Calendar In Control: City Council / Successor Agency Agenda Number: 22) ARPA Tourism Funding Program Approve the City's ARPA Tourism Funding Program (ARPA Funding) and approve the purchase of capital infrastructure and equipment as outlined in Exhibit A. Page 1 City of Lake Elsinore Printed on 1/6/2022 REPORT TO CITY COUNCIL To: Honorable Mayor and Members of the City Council From: Jason Simpson, City Manager Prepared by: Jason Simpson, City Manager Date: January 11, 2022 Subject: ARPA Tourism Funding Program Recommendation Approve the City's American Rescue Plan Act Tourism Funding Program (ARPA Funding) and approve the purchase of capital infrastructure and equipment as outlined in Exhibit A. Background This item relates to the City of Lake Elsinore ARPA Recovery Plan allocations and expenditure plan. The ARPA provides that Coronavirus Local Fiscal Recovery (CLFR) funds can be used for COVID-19 related expenses incurred through December 31, 2024, as well as to recover prior revenue losses. Accordingly, the City of Lake Elsinore ARPA Recovery Plan includes $14.97 million and this request is for $4,350,000 to aid travel and tourism and support healthy childhood environments. Many of these programs were paused or adjusted due to federal, state and county mandated closures which led to membership refunds to families leaving the organizations with little to no funding to restart after COVID-19. With the City Council’s approval of the City of Lake Elsinore ARPA Recovery Plan on December 14, 2021, the City is focused on accelerating the recovery of community segments that rely on the travel and tourism by enhancing outdoor recreation along with providing health childhood environment to those disproportionately impacted sectors. Staff will closely evaluate the ARPA and CLFR guidance ultimately issued by the US Treasury and provide recommended modifications during the monthly updates to the City Council. Discussion As the COVID-19 public health and economic crisis continues throughout the nation, the federal government enacted the American Rescue Plan Act of 2021 on March 11, 2021. This plan is intended to combat the COVID-19 pandemic, including the public health and economic impacts. Included in the $1.9 trillion economic relief package, was $130.2 billion for CLFR funding split equally between counties and cities, with $65.1 billion allocated directly to cities. The ARPA also allocates billions of dollars for public health and vaccines, assistance for vulnerable ARPA Tourism Funding Program January 11, 2022 Page 2 populations, education and housing stabilization, transit and transportation funding, economic recovery assistance, and direct assistance for families and individuals. On May 10, 2021, the U.S. Treasury Department released final allocation amounts and interim guidance on the use of ARPA funding. The final allocated amount to the City of Lake Elsinore is $14,967,198. The first allocation of $7,483,599 was received on July 15, 2021, with the final allocation expected on July 15, 2022. The ARPA stipulates that CLFR funds must be obligated/spent by December 31, 2024. Additionally, the ARPA requires the City to provide periodic reports on the use of the funding, though the City is currently awaiting guidance from the US Treasury as to the specific duration and required information needed for the compliance and reporting requirements. The CLFR provides eligible local agencies with a substantial infusion of resources to meet pandemic response needs and rebuild a stronger, and more equitable economy as the country recovers. Eligible uses include responding to public health impacts, negative economic impacts of COVID-19 (include direct household assistance, small business economic assistance, and aid to tourism, tavel and hospitality), services to dispropotionately impacted communities (through education, healthy childhood environment programs, and housing support), and certain infrastructures (water, sewer and broadband projects). As a result of the mandated closure of most community sports programs, the City’s youth and adult league participants have not had the opportunity to participate in recreational activities. In addition, this has negatively impacted the City’s and region’s travel and tourism industries and businesses. Use of Funds The proposed program will ultimately allocate $3,000,000 - $5,000,000 to allow the City of Lake Elsinore to help upgrade and provide increased capacity park lighting to LED to support non- profit sports leagues and organizations that use the City’s sports fields and facilities to support recovery from the negative economic impacts caused by the public health emergency, including both new and ongoing services and expanded community events, concerts, and meeting venues. By assisting organizations that serve our Lake Elsinore communities in the third and fourth quartile of the California Healthy Places Index (HPI), these upgrades and new improvements would not only help families and individuals most impacted by the COVID-19 public health crisis but also promote the betterment of Lake Elsinore to a stronger and healthier community, but would also bolster and aid travel and tourism. As such, the projects include the following: 1. LED Park and Sports Field Lighting at six Community parks - $2,587,960 2. Synthetic Turf Installation at Diamond Stadium – $1,700,000 to replace grass and make the entire stadium venue accessible to concerts and events utilizing the whole facility for the entire 12 months out of the year, versus the 7 months currently accessible. The stadium field is closed for reseeding and repairs to the field after the end of the MiLB season from October to March each year. 3. Capital investment and equipment upgrades – $650,000 including staging, speakers, components, high-speed internet and wifi, and related items. These items were sole- ARPA Tourism Funding Program January 11, 2022 Page 3 sourced due to the global supply shortage of materials and components from vendors who can deliver the necessary components. Vendor Amount 3rd Party Stage Company 101,055.94$ Adoroma 4,898.64 Amazon 9,825.22 Apple 2,853.55 B&H 76,418.76 Best Buy 8,830.77 Chainhoist.com 25,178.34 DAS IDJ Now 128,717.92 DVS 60,189.00 Guitar Center 4,266.21 IDJNOW 35,982.57 Newtek 1,136.17 Planet DJ 4,110.52 Stage Depot 43,427.88 Sweetwater 109,468.40 Total 616,359.89$ Outdoor recreation projects that would result in upgrades and additional capacity for sports complex and facilities that would allow Lake Elsinore to serve as an overflow site for sports tournaments hosted for the region when the region needs additional fields and venues for gathering. These upgrades and improvements would activate these facilities and would also allow Lake Elsinore to be the primary host of tournaments as well as special events, such as summer concert series, summer movies, and others, which will generate new sales tax revenues and economic opportunities in Lake Elsinore. Additionally, studies have shown that food service, hotels/lodging, and retail were some of the hardest-hit industries during the COVID-19 pandemic. Based on advice from the CDC, people avoided large gatherings and many stayed home in quarantine. Millions of Americans were not eating out, or staying in hotels, or shopping in stores, opting to go online inste ad. As a result, all these establishments saw major declines in revenues and were forced to lay off workers. The Lake Elsinore Diamond Stadium and community parks proposed in these project upgrades stand to benefit a disproportionately impacted population and these hard-hit industries as well as serve as a hub for community health and wellness. The impacts in Lake Elsinore are consistent with the impacts throughout the United States. During the COVID-19 pandemic, the travel, tourism, and outdoor recreation sectors were hard hit by shutdowns and travel restrictions, resulting in significant revenue losses and mass layoffs/furloughs in these sectors nationwide. Between the second quarter of 2019 and the second quarter of 2020, California specifically experienced close to a 15% decline in tourism, travel, and outdoor recreation average earnings. ARPA Tourism Funding Program January 11, 2022 Page 4 Unlike the 2020 Coronavirus Relief Funds the County received through the State of California as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act of 2020, the City will receive CLFR funds directly from the federal government. This welcome news allows the City to address multiple fiscal strains brought on by the COVID-19 pandemic. However, as will be noted in more detail below, the allocation of ARPA funds is one cornerstone of a larger budgetary strategy to maximize community benefits while minimizing budgetary risks. Delta Variant and Omicron Concerns With the recent surge in local COVID-19 cases primarily driven by the Delta variant and the emergence of a Omicron variant, City staff now anticipates that the local health emergency to last at least through March 2022. Over the next several weeks, staff will be evaluating the financial needs of these programs and assess the potential to use funding for public health needs that could occur should there be a needs to extend certain programs into late fall or early winter. Fiscal Impact This item is for $4,937,960.00 for the ARPA Tourism Funding Program with $4,796,442.89 funded by ARPA and $141,517.11 funded by ROPS. Exhibits A – Tourism Capital Infrastructure and Equipment ATTACHMENT A As such, the projects include the following: 1. LED Park and Sports Field Lighting at six Community parks - $2,587,960 2. Synthetic Turf Installation at Diamond Stadium – $1,700,000 to replace grass and make the entire stadium venue accessible to concerts and events utilizing the whole facility for the entire 12 months out of the year, versus the 7 months currently accessible. The stadium field is closed for reseeding and repairs to the field after the end of the MiLB season from October to March each year. 3. Capital investment and equipment upgrades – $650,000 including staging, speakers, components, high-speed internet and wifi, and related items. These items were sole- sourced due to the global supply shortage of materials and components from vendors who can deliver the necessary components. The amount requested includes potential quantity and pricing adjustments by vendors. Vendor Amount 3rd Party Stage Company 101,055.94$ Adoroma 4,898.64 Amazon 9,825.22 Apple 2,853.55 B&H 76,418.76 Best Buy 8,830.77 Chainhoist.com 25,178.34 DAS IDJ Now 128,717.92 DVS 60,189.00 Guitar Center 4,266.21 IDJNOW 35,982.57 Newtek 1,136.17 Planet DJ 4,110.52 Stage Depot 43,427.88 Sweetwater 109,468.40 Total 616,359.89$