Title
American Rescue Plan Act Strategic Plan Update
Description
On June 8, 2021 City Council approved the proposed $196 million American Rescue Plan Act (ARPA) Strategic Plan. This report provides City Council with an update on the ARPA Strategic Plan and includes additional information about several programs that City Council wanted to discuss in more detail.
THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.
Report
Summary
As referenced above, City Council approved the ARPA Strategic Plan on June 8, 2021 but requested staff to return with additional information about several programs before commencing operations. One of those programs, the $10 million Utility and Rental Assistance Program, was discussed on Sept. 7, 2021 and City Council approved staff's recommendation to allocate $4 million to enhance the existing Emergency Rental Assistance Program, $5 million to initiate the Deferred Payment Arrangement Recovery Program, and $1 million for the Landlord Incentive Program.
The remaining programs that City Council requested additional information included the following:
- Workforce Wraparound Tuition/Apprentice Program
- Homelessness and Mental Health Program
- Financial Assistance for Phoenix Families Program
This report also includes a program proposal for the Airport Childcare Facility, an update about the COVID-19 community testing and vaccination health events as part of the Better Health Outcomes and Community Testing and Vaccines Program, and an update regarding the City Operations Investment projects.
After City Council approval of the ARPA Strategic Plan, departments began advancing their respective programs. As of Aug. 31, 2021, ARPA expenditures total $943,663. Programs with expenditures include administrative oversight, Phoenix Resilient Food System programs, Office of Arts and Culture programs, transit summer heat respite, community COVID-19 testing, and the Summer Heat Respite Program.
All ARPA programs are set to move forward by early next year. Several departments will be returning to City Council this fall for contract authority or additional spending authority. Staff will return to City Council before the end of the calendar year to provide an additional ARPA update.
ARPA Website and Recovery Plan Performance Report
To provide transparency to the public about the City's ARPA programs, staff created a website that will serve as the main source of ARPA data and updates. As spending continues this year, performance measures will be added to the website. Users can visit www.phoenix.gov during the week of Sept. 20 to view the website.
Website pages follow the City's ARPA Strategic Plan where users can easily navigate from one ARPA program to another. All program information, including summary details, budget and actuals, key performance indicator data, other program data, and additional corresponding website links will be available. Data will be updated monthly at a minimum.
Per US Treasury reporting guidelines, the Recovery Plan Performance Report must be updated and posted annually on the City's website. The first report was submitted on Aug. 31, 2021 and is available online on the City's ARPA website. This report is required for each jurisdiction larger than 250,000 residents and contains project performance data, including information on efforts to improve equity and engage communities. Staff also submitted the first and only Interim Report to the US Treasury in August that included program expenditures as of July 31, 2021.
ARPA Programs Requiring Additional Council Input
Workforce Wraparound Tuition/Apprentice Program Proposal
City Council required the $10 million Workforce Wraparound Tuition/Apprentice Program to be brought back with further discussion outlining the proposed program and its implementation. Staff recommends utilizing $8.5 million to offer free training and education to residents who have been impacted by the pandemic in the hardest-hit industries of hospitality, food service, retail, and families with young children. Referred to as the Two-Generation approach, the program targets low-income families and children from the same households and combines parent and child interventions that improve economic mobility. For families with young children and participants who are not enrolled at a Maricopa County Community College, staff recommends allocating $1.5 million of program funds to partner with a community-based organization to expand the existing suite of workforce services.
The program will leverage existing City workforce resources as identified in the City of Phoenix Local Workforce Development Area Plan by offering short-term and long-term training in industries and occupations. The current list includes bioscience and healthcare, financial services/customer contact centers, information technology/cybersecurity, manufacturing, and construction. Tuition assistance will be provided to participants enrolled at a Maricopa County Community College or other identified training providers. As well, the program will offer skill and career assessments, high school equivalency preparation, English language learning programs, and education and workforce navigation services, such as case management and work readiness training and referrals to specialized services and assistance.
Staff has identified additional industries and certifications/credentials for City Council consideration: early childhood education, community health services (peer support specialist), electric vehicle technician/technology, entrepreneurship, and small business, and hospitality and tourism. Staff recommends providing a monthly stipend of $1,000 for up to 26 weeks to eligible participants to assist with transportation and other personal expenses that will enable participants to complete the program. Families with young children will receive an additional $500 per month to cover childcare expenses. Once approved, staff will return to City Council to approve an intergovernmental agreement with the Maricopa County Community College District Workforce and Economic Development Office to provide navigation services to program participants enrolled at a Maricopa County Community College.
Homelessness and Mental Health Program Proposal
City Council required the $10.5 million Homelessness and Mental Health Program be brought back with further information outlining proposed implementation. The City received feedback at the previous budget hearings for the need of more mental health services in the community. Leveraging ARPA funds to increase access to mental health services is important as the number of people experiencing mental health challenges has grown significantly since the start of the pandemic.
Many jurisdictions plan to use ARPA funding to contract with local nonprofits to expand or offer new mental health services to residents. An example is Indianapolis, Indiana, which will use $30 million to fund mental health resources, including in-school services, support at the juvenile detention center, and training for behavioral health clinicians. Another example is San Antonio, Texas which plans to use ARPA funding to extend its Human Services Financial Empowerment Benefits Navigation program that connects residents to financial counseling, safety net, mental health, domestic violence, and job training resources.
Staff recommends allocating $9 million to contract with local healthcare providers for outreach teams that will connect residents throughout the city (based on heat maps) with mental health and substance abuse services, and physical health services. Contractors will screen individuals for Arizona Health Care Cost Containment System (AHCCSS) eligibility and assist in applying for public benefits.
Staff also recommends allocating the remaining $1.5 million to contract with local nonprofits to start a pilot outreach project to offer and provide services for those experiencing homelessness along the Salt River Project (SRP) canals and surrounding areas. Additionally, funds will be used to partner with an agency to create a pilot Phoenix Works program which will train and pay individuals experiencing homelessness to conduct beautification projects and landscaping duties. This pilot program will focus on cleanups on the SRP canals and surrounding areas.
Staff will return to City Council for contract approval for each program.
Financial Assistance for Phoenix Families Program Proposal
Across the country, the pandemic exacerbated structural inequities and disproportionately impacted low-income communities and people of color. Many cities are planning to use ARPA funding to provide a fixed monthly amount to qualified residents to provide a greater financial stability and improve quality of life in their communities.
A few examples of jurisdictions using ARPA funds include Los Angeles County and Chicago, IL. In Phase 1 of its ARPA plan, Los Angeles County has allocated $16.3 million to programs and in May approved a guaranteed income pilot program for a minimum of 1,000 residents up to $1,000 a month for three years. The County continues discussions of different programs to date. Chicago proposed a program for 5,000 residents to receive $500 for a year.
City Council approved $12 million in ARPA funds to initiate the Financial Assistance for Phoenix Families program as part of the City’s ARPA Strategic Plan. Based on extensive research, staff recommends the following:
- Provide 1,000 - 2,000 households a $500 - $1,000 stipend for 12 months, beginning January 2022, if not sooner.
- Households must be at or below 80 percent Area Median Income, which for a family of four is $63,200 (this is considered gross income, or also known as pretax income). Households that have applied to the Emergency Rental Assistance Program and/or residents of City-owned public housing properties, including residents with Section 8 vouchers, will be chosen via a lottery system.
- Participants will receive monthly funds via a debit card and will be able to purchase items with a few limitations, such as no alcohol, tobacco, or lottery ticket purchases. The card will be declined for such purchases.
- Participants must agree to allow general purchasing information to be shared with the City to track and report on the progress of the program, as encouraged by the US Treasury.
- The City is requesting a contract be executed with a firm that has experience administering similar programs. The City is currently exploring options with vendors as well as with Chase to use the City's Master Custodian Agreement and review whether it is possible for Chase to administer the program.
Based on the first year of results, staff would recommend to continue this program, along with any necessary program changes, with the second allocation of ARPA funds in calendar year 2023.
Other ARPA Program Information and Updates
Airport Childcare Facility Program
As part of the ARPA Strategic Plan, City Council approved the allocation of $5 million to fund childcare options for workers at Sky Harbor International Airport. The Aviation Department surveyed companies operating at the airport and at least 21 companies had more than 600 employees interested in affordable childcare. In response to this survey, staff conducted a review of peer airports and found that Los Angeles International Airport (LAX) has used contractors to provide on-premises childcare since 1998, and that additional peer airports had operated childcare services for employees through third-party providers in the past but had discontinued services due to the COVID-19 pandemic and related challenges.
Staff is working to identify a possible on-property location that could be used to pilot a childcare option. Currently, the Aviation Annex at 3420 E. Sky Harbor Boulevard in Terminal 3 is being reviewed to determine if it could be modified to meet state licensing requirements to function as a childcare facility. If it is determined that a building can be modified to meet necessary standards, staff is requesting to issue a procurement for childcare services to be provided at the facility by a third-party contractor.
Given the potential length of time for building approval and modifications and to conduct the procurement, staff recommends using a majority of allocated funds to provide vouchers to airport employees for use at childcare facilities. To expedite this process, staff is seeking to identify a nonprofit or governmental partner to administer the voucher program and conduct necessary income verification and coordination.
City Operations Investment - Stormwater Projects and 27th Avenue Materials Recovery Facility Replacement Project
The two sections below provide updates to the City Operations Investment section of the ARPA Strategic Plan. On June 8, City Council approved $23 million for infrastructure, technology, and capital needs, including stormwater projects and the rehabilitation of the 27th Avenue Materials Recovery Facility (MRF), a facility that separates and prepares the City’s recycling materials to be sold to end buyers.
Stormwater Projects
According to the Federal Emergency Management Agency (FEMA), floods occur in every region of the country and include inland flooding, flash floods and flooding from seasonal storms. Ninety percent of natural disasters in the US involve some type of flooding. At a local level, Salt River Project and Maricopa County joined the City of Phoenix to encourage State of Arizona lawmakers to enact legislation in 1959 to create flood control districts. In the past twenty years, the Flood Control District of Maricopa County and the City of Phoenix have collaborated to construct flood control improvements estimated at $300 million. Despite those investments, continued urbanization and insufficient capital investment funding has resulted in a projected $1.75 billion worth of additional flood control investment needs. This was most recently highlighted in 2014 when severe flooding caused significant local property damage.
ARPA provides an opportunity to invest federal funding and leverage additional money from the Flood Control District of Maricopa County to complete several priority projects. The City is coordinating with the Flood Control District of Maricopa County to develop an investment strategy focused on completing a projected $26 million dollars of stormwater flood protection projects in Phoenix. The strategy would utilize $13 million dollars in ARPA funds to leverage an additional $13 million in Flood Control District funds. Staff will return to City Council later this year for consideration of specific projects recommended for capital investment. If passed by Congress, the Infrastructure Investment and Jobs Act could provide additional funding to address more stormwater and flood mitigation projects. Staff will continue to monitor this bill and keep Council updated regularly.
27th Avenue Materials Recovery Facility Replacement Project
The 27th Avenue MRF has needed equipment and facility updates for several years. As a result of the pandemic, recycling tonnage increased up to 20 percent, causing City facilities to operate beyond maximum levels. The 27th Avenue MRF closed in January of this year due to equipment and facility needs and the North Gateway Transfer Station continues to operate at full capacity, furthering heightening the demand for the facility replacement.
Staff has spent the last year preparing this replacement project. A contractor has been selected to begin demolition on Oct. 4 of the outdated equipment. A second contractor has been selected to perform an assessment and design building improvements, such as fire-life safety, HVAC, and electrical updates. An RFP is currently open to select the MRF equipment vendor with bids due on Oct. 6. Finally, a professional MRF facility design and engineering services consultant has been secured to provide a technical analysis of the bid proposals. This report will be provided to the selection panel to assist with the final award recommendation. Staff estimates the total project will cost approximately $20 million and of that, $10 million will be paid with ARPA funding.
Better Health Outcomes and Community Testing and Vaccines Update
The ARPA Strategic Plan included $5 million to continue COVID-19 community testing and vaccine distribution. Since then, Phoenix Fire and Public Works staff, in collaboration with multiple City departments, have assisted community partners with organizing and promoting testing services at no cost to residents in underserved areas disproportionately impacted by COVID-19. Since last year, the City has expended $7.6 in CARES Act funding and approximately $105,000 in ARPA funding to advance community testing and vaccine efforts.
In May 2020, the Public Works Department led an effort to provide stationary site testing, known as Blitz Testing, events for residents. This included partnerships with certified health providers who set up testing clinics at City parks, neighborhood schools, or churches and coordinated all aspects of the testing services which included publicizing events, coordinating with City staff, collecting, and analyzing samples and notifying residents of results. To date, Public Works staff has coordinated 220 Blitz Testing events across the City, while partnering with eight health care providers to provide approximately 42,000 tests. Blitz Testing events expanded in August 2021 to include vaccination services.
The City led many citywide efforts to help stop the spread of the virus during the pandemic. Phoenix was the first Arizona municipal organization to provide COVID-19 mobile testing vans to underserved communities. The Public Works Department, in partnership with two local health care providers, launched two COVID-19 mobile testing vans that provide easy, accessible, rapid testing using an innovative solution to testing. The first mobile van was implemented in August 2020, and the second was deployed in February 2021. The vans operate up to five days a week at locations across the City including parks, community centers, schools, grocery stores, libraries, and churches. The mobile vans prioritize underserved communities and areas of high transmission.
Benchmarking reports provided by the Maricopa County Department of Public Health are essential to identify underserved communities with the greatest risk of COVID-19 transmission with percentage positivity rates. Mobile vans help address equity issues and eliminate barriers by providing a direct mobile solution to communities that may lack access to testing services and public transportation. To date, the Public Works Department has provided approximately 146,000 COVID-19 tests through the mobile testing vans at nearly 360 events throughout the Phoenix community. Testing events were expanded in August 2021 with both mobile vans to include vaccination services.
Phoenix Fire Department, with the help of community partners, assisted with nearly 200 clinics in under-served areas disproportionately impacted by COVID-19. Events included two-dose vaccinations and testing at city-owned housing communities, parks, and libraries. In January 2021, the Fire Department began using the existing Baby Shots Program to assist in providing COVID-19 testing and vaccine services. Established in 1994 to promote health to the public through information and vaccinations, the Baby Shots Program has provided tens of thousands of vaccines to the underserved (uninsured & underinsured) community. Since the addition of COVID- 19 vaccinations and testing, the Baby Shots program and pop-up vaccination clinics have administered over 200,000 COVID-19 vaccinations and provided nearly 50,000 COVID-19 tests.
As COVID-19 continues to surge on a local and national level, it remains clear that testing and vaccination services are needed to reduce the spread within the community. To enhance resident vaccine participation, staff recommends a pilot Vaccination Incentive Program. The Vaccination Incentive Program would offer incentives to residents to increase vaccination rates in underserved communities. The City would partner with current health care clinical partners to distribute up to 1,000 $100 gift cards and donated items such as food boxes or backpacks to support the Incentive Program. Residents who get fully vaccinated would have an opportunity to receive a gift card from a local grocery store, food chain, or gas station. If the program has a significant impact on vaccine distribution rates, staff will return to City Council to request continuing the program beyond the pilot program.
Recommendations
Staff seeks approval to implement the Workforce Wraparound Tuition/Apprentice, Homelessness and Mental Health, and Financial Assistance for Phoenix Families ARPA programs as described above. Staff also seeks approval to use ARPA funding to provide up to 1,000 $100 gift cards to residents who receive the COVID-19 vaccine.
Staff will present additional information for ARPA programs as necessary to City Council later this fall.
Concurrence/Previous Council Action
The City Council approved the ARPA Strategic Plan on June 8, 2021, by a vote of 7-2.
Department
Responsible Department
This item is submitted by Assistant City Manager Jeffrey Barton.