American Rescue Plan Act Funding Update and Adoption of a Resolution Approving Disbursement of up to $100,000 of ARPA Funds to the Rocklin Chamber of Commerce

Receive an Update on ARPA Programs and:

1. Remove Façade Improvement Programs from the ARPA Program list and Reallocate $400,000 of ARPA Funding to Support Mental Health in Rocklin and $400,000 to be Included in Revenue Loss; and,

2. Adopt a Resolution of the City Council of the City of Rocklin Approving the Disbursement of up to $100,000 of ARPA funds to the Rocklin Chamber of Commerce.

The City of Rocklin is set to receive $7,039,025 in American Rescue Plan Act (ARPA) funding; approximately half ($3,519,513) has been received to date. At the September 28, 2021 City Council Meeting, staff proposed an ARPA project list that included spending for community support, internal support, and revenue loss. At the February 22, 2022 City Council meeting, the City Council received an update on the feasibility of ARPA programs and provided further direction to staff to move forward with phase one and phase two of ARPA spending:

Staff has since been developing these ARPA programs and working with community partners to ensure programs will meet US Treasury guidelines and respond to community need. Below is an update on staff efforts to date.

Business Support and Nonprofit Support – Request for Proposals

The City has released a Request for Proposals for third-party administration of the following ARPA programs:

·         Small business and hotel grants for lost revenue. Total program: $750,000

·         Nonprofit grants for lost revenue. Total program: $500,000

·         Restaurant support program for lost revenue or outdoor dining. Total program: $500,000

·         Capacity building programs for micro-businesses. Total program: $300,000

The RFP seeks firms that are interested in working with City staff to administer ARPA funding. Firms will be responsible for creating an application portal, working with staff to identify application criteria, responding to questions from applications, and tracking and monitoring expenditures. The RFP is intended to be flexible and responsive to the needs of the community. During the course of grant program administration, City staff will monitor enrollment rates and reallocate ARPA funding as needed. Responses to the RFP are due on May 25, 2022. Once firms are selected, contracts will be brought to City Council for review.

Internal Support

Two Internal Support items have been approved by the City Council to date: $95,000 for City Hall upgrades to increase social distancing and $93,294 for HVAC replacements to increase air circulation and filtration.

Job Training and Upskilling

Staff have been in conversations with the Sierra College Foundation and the Placer School for Adults to create a job training and upskilling program for Rocklin residents that helps individuals who were impacted by COVID-19. The Sierra College Foundation is proposing a program that offers mental health services to students and provides grants for wraparound services like transportation, food, and housing. These wraparound services are known factors that prevent students from completing degrees. Placer School for Adults is proposing a temporary Rocklin campus housed in a Rocklin high school. Upskilling and digital literacy classes will be offered at no-cost to Rocklin residents who were impacted by COVID. Both programs will comply with US Treasury requirements for individual support programs.

Façade Improvement Programs and Funding Reallocation to Mental and Behavioral Health Services

The City Council approved a conceptual Quarry District and city-wide façade improvement program at both the September 28 2021 and February 22 2022 City Council meetings. After further review of the Treasury Final Rule, guidance from the City Attorney’s office, and conversations with Community Development Department staff, staff do not believe the scope of this program will be allowable under ARPA guidelines for the City of Rocklin. Façade improvement programs are only allowable for small businesses categorized as “disproportionately impacted” which includes small businesses operating in a Qualified Census Tracts, operated by Tribal governments, or those operating in U.S. territories. Rocklin does not have any Qualified Census Tracts, so none of the small businesses in Rocklin would be eligible for this program.

As a result, staff recommends reallocating the $800,000 that was approved for these programs with $400,000 allocated to mental health services for Rocklin residents and $400,000 allocated to revenue loss. If approved, staff will release an RFP for mental health services. The intent is to provide funding to providers of mental health services who serve Rocklin residents. Under Final Rule guidelines, behavioral health care services are an allowable use under the category: Responding to the Public Health Emergency.

If a façade improvement program is a priority for City Council, staff can work to identify other sources of funding for this program. 

Rocklin Chamber of Commerce grant

At both the September 2021 and February 2022 City Council meetings, the City Council approved providing up to $100,000 in ARPA funds to the Rocklin Chamber of Commerce (Chamber). Due to the COVID-19 pandemic, the Chamber had to cancel fundraising events and lost members due to the pandemic's significant impacts on the business community, all the while continuing to provide support to local businesses. The Chamber can demonstrate a negative economic impact from COVID in the form of revenue loss and would therefore be eligible for a grant under the Assistance to Small Business category of ARPA allowable usage. Staff has attached a resolution that authorizes the disbursement of funds to the Chamber, and recommends the City Council adopt the resolution.  

ARPA Dashboard

Staff has created an ARPA dashboard on the City’s website that can be viewed here:  https://www.rocklin.ca.us/arpa-funding. As programs are launched and funded, the website will be updated accordingly.

There is no direct fiscal impact to the City's General Fund. ARPA funds received to date have been set aside in Fund 266 for disbursement as authorized by the City Council.