'21OCT19 AM 9:04 CITY CLERK

American Rescue Plan Act 2021(ARPA)
State and Local Fiscal Relief Funds (FRF)

October 19, 2021

MAYOR'S MESSAGE 156
EM/HEconOctober 19, 2021 | Joint Committee on Executive Management and Housing and the Economy
Submitted by Managing Director's Office and the Office of Economic Revitalization

City and County of Honolulu's direct allocation: $386,252,141• First tranche: $193, 126,070,50, received on June 7, 2021
• Second tranche: $193,126,070.50 expected in June 2022
• The expense must be incurred or obligated by December 31, 2024,and expended by December 31, 2026

Approach to ARPA
• Collaborate with City Council for equitable, efficient distribution• Public forum for community engagement, regular program updates andreceipt of input from Council• Maintain flexibility in serving O'ahu communities over the 4-year + 2
implementation period• Maximize program transparency and objectivity• Fair, sustainable process• Regular Council updates/public engagement• Federal reports• Public-facing ARPA dashboard

What are the federal rules for spending?
• Treasury has adopted published Interim Final Rule (IFR)• Additional revisions and a "Final" rule are anticipated• In general, FRF monies can be used to:• Support public health• Address negative economic impacts• Provide service to disproportionately impacted communities• Replace lost revenue• Provide premium pay for essential workers• Invest in water, sewer, and broadband infrastructure• Cover allowable administrative costs

Evaluation of Funding Requests• Compliance with IFR regulating the applicable expenditure categories• Compliance with Federal and State procurement requirements• With limited exceptions, expenditure of FRF monies must follow BOTH Federaland State procurement laws
• "Revenue Replacement" expenditures are not subject to Federal procurement• Administrative requirements (documentation, data, monitoring and reporting)• Compliance with other applicable federal requirements, state law and city ordinances• Alignment with the current Recovery Plan, as approved and amended• Ability to timely expend awarded funds• Ability to address inequities, public health and economic needs of our communities

Funds cannot be used for:• Deposits to a pension fund
• Funding debt service• Payment of legal settlements or judgments• Deposits into a rainy day fund or financial reserves• Costs incurred before March 3, 2021, or after December 31, 2024
(Funds may not be expended after Dec 2024 unless obligated to projects prior toDec 31, 2024. Obligated but unexpended funds are not subject to recapture or
return until December 31, 2026.)

Fundamental Goals for ARPA Funds• Provide community support and address economic impacts: $110M• Support equitable economic recovery: $156M• Modernize City operations: $70M
• Invest in critical island infrastructure: $50M

(Recovery Plan filed August 31, 2021, subject to amendment)

Provide Community Support and Address
Economic Impacts: $110M• Services for the at-risk and homeless• Public health and COVID-19 response• Aid to businesses and nonprofits• Aid to households• Community assistance and support hubsSupport Equitable Economic Recovery: $156M• Agriculture and food sustainability• Workforce development and retraining• Affordable housing• Family, children, and elder supportModernize City Operations: $70M
• Operating budget and personnel• Stormwater management program• City systems improvements• Miscellaneous City programs• Other Operations (not Salary or Systems)

Invest in Critical Island Infrastructure: $50M
• Water and sewer (wastewater) infrastructure, including projects toaddress Climate Change• Broadband

Efforts underway on the ARPA Program• Two categories of processes (strategic and sustainable plans for allocating federal funds)• Internal• Departmental programs (stabilizing operations)• Infrastructure• Revenue replacement - broad latitude (fiscal year June 30, 2019)• E-forms, Justification/Write-up, Review, Approval• External• Community programs assisting underserved constituencies• Immediacy (people and businesses most hurt and in need of assistance)• Inclusivity (equitable access to capital and technical assistance)• Investment in future prosperity (growth and capacity)• Competitive procurement/sole source, Evaluation, Selection, Award,Funding, Monitoring/Compliance Evaluation, Metrics, Closing• Develop the resources necessary to allocate resources equitably andefficiently• Build OER infrastructure (specialized staff)• Capture, analyze and visualize data as part of our ARPA plan
• Build on lessons learned• Build capacity in the non-profit sector• Prioritize and layer other dedicated grants and programs first wheneverpossible to save ARPA funds• Optimize technology (GrantCare)

Specifics• Matt Gonser - Equity considerations• Dana Viola - Legal requirements/training• Andy Kawano - Fiscal management/GrantCare• Paula Youngling - Purchasing/procurement/training• Amy Asselbaye - OER, program development, community engagement,
data compilation, monitoring and closure• Questions?

MahaloPromoting Equitable Outcomes
Federal Leadership

City Leadership• Principle and process Resolutions:• Relief Programs and Community
Investments: CARES and SLFRF• 21-100, data disaggregation(i.e., ARPA).
• 21-050, feminist-based economic• Executive Order 13985, Advancing
recovery
Racial Equity and Support for• 20-206, equity and social justice
Underserved Communities
and equitable outcomes for• Executive Order 13995, Ensuring
frontline communities
Equitable Pandemic Response and• DHR and NACo (National Association
Recoveryof Counties) Economic Recovery• US HUD Qualified Census Tracts
Cohort.
and targeted disbursement of FRF• Systems development andimprovements, data and information
development, and community
partners tracking and reports

US HUD 2022 Qualified Census Tracts
QCT = 50% hhlds with income < 60% AMGI or have a poverty rate > 25%
https://www.huduser.gov/portal/sadda/sadda qct.html

Mokuleigg.04'-et Reserve

NanAulani, A Disne
Resort & Spa
analo

Coronavirus Relief Fund v. Fiscal Recovery FundFiscal Recovery Fund (ARPA)
Coronavirus Relief Fund• Except to replace eligible lost• Necessary expenditure incurred
government revenue, and for water,
due to the COVID-19 Emergency.
sewer and broadband infrastructure,• Not budgeted as of March 27,
the expense must proportionately
2020, or cannot replace revenues
respond to the COVID-19 Emergency.
• Incurred between March 1, 2020 • The expense must be incurred on orand December 31, 2021.
after March 3, 2021.
• The expense must be incurred orobligated by December 31, 2024, andexpended by December 31, 2026.

One Key Difference - Procurement
Coronavirus Relief FundARPA• There was no requirement that
the Recipient follow federal,state or local laws regarding
procurement.

• All procurement transactions forgoods or services must be
conducted in a manner providing
for full and open competition.

Procurement Requirements for ARPA
According to Treasury Guidance, recipients must adhere tofederal, state and local laws on procurement, if ARPA monies
are being used to secure goods or services.
In other words, the agencies must generally follow theprocesses set forth in 2 CFR §200, Subpart D of the Uniform
Guidance and Hawaii Revised Statutes Chapter 103D, andthe procurement policies established by the BFS.

Federal Methods of Procurement➢➢➢➢➢

Micro purchases
Small purchases
Competitive sealed bids
Competitive proposals
Procurement by non-competitive means (sole source)

ARPA's Four Exceptions toCompetitive Procurement
Consistent with 2 CFR §200.320, Treasury allows noncompetitive procurement only if one of the following
conditions exists:➢ the item is less than the micro-purchase threshold($10,000);➢ the item is only available from a single source;➢ the public exigency or emergency will not permit a delay
from publicizing a competitive solicitation; or➢ after solicitation of a number of sources, competition isdetermined inadequate.

Some of the Federal Procurement Requirements
Certain requirements, such as an independent cost estimate andsubrecipient risk assessments, apply regardless of whether the methodof procurement is competitive or noncompetitive.
Preference for contracting with small and minority businesses, women'sbusiness enterprises
Preference for purchase or use of goods, products and materials
produced in the U.S.
Procuring only items designated in guidelines of the EPA that containhighest percentage of recovered materials
Contracts must include specific federal contract clauses in 2 CFR §200.327
Compliance with all requirements of the Clean Air Act and Clean Water
Act for contracts above $150,000When applicable, specific requirements for waste disposal as dictated byfederal law

Training
COR has provided overview of ARPA to all Departments
COR providing individualized training on ARPA requirements to allDepartments:
to assist with processing of ARPA requests andto ensure compliance with federal requirements and Treasuryguidance.
BFS developing and will train all Departments on ARPA specificprocurement:
To establish an efficient process for ARPATo expedite the delivery of relief to the community
To enable use of perfected process for future programs

GrantCare• GrantCare is an Enterprise-wide grant management solution for theCity & County of Honolulu (CCOH)• System of record and administration for grant programs• SLFRF (ARPA) programs will be the initial focus
o Configurable to manage multiple types of grants• Cloud based, scalable and secure system platform• Cost effective solution• Key system benefits:o Automated workflows and business rules, integrated with the ERP where
beneficial
o Ability to provision users and roles within the systemo Ability to e-sign to digitize cross-referenced/archived documentationo Ability to maintain and evolve the system configuration related to text,workflows, business rules, and reportingo Improved reporting capabilities (to Council, the public and U.S. Treasury)o Reduced reliance on manual processes, and more efficiency■ Submit reports, documentation and requests for payment through system■ CCOH reviews, asks for more information and makes payment■ Timeline and tracking of grant administration activities between CCOH andsubcontractors.

DIVISION OF PURCHASING'S PLAN FOR EXPEDITED PROCUREMENTTIGER TEAMo GOAL: Ensure Expedited and Compliant Procurement/Ensure
Reimbursement•Dedicated team working one-on-one with Departments/Offices to execute CCH
recovery plan projects through the procurement life-cycle (acquisition planning,market research, solicitation-award, contract management, close-out). Teamconsists of:•Division of Purchasing
1. Dedicated Staff
a. —8 Staff dedicated to ARPA procurements
2. On-Demand Staff
a. Purchasing Administrator
b. Assistant Purchasing Administrator
c. Procurement Officer
d. Section Managers•Departments/Agencies/Offices
1. Dedicated Staff
a. Project Manager for each Project and/or Contract
b. Dedicated ARPA/ERA specialist for each Dept/Office
2. MDOa. Point of Contact — priority of each recovery plan project/contract•

Identify # of contracts related to each recovery plan project•

Identify opportunities to procure sub-recipient agreements•

Pre-evaluation of procurement method•

Schedule for each project contract(s)• ARPA and Procurement Training

Procurement
Planning

MarketResearch

Solicitation& AwardContract
Management

Completion& Closeout• Explore Expanding Delegation of Procurement Authority toDepartment/Office Directors• Research development/procurement of e-procurement system• Pre-evaluation of Procurement Method — Procurement/Acquisition
PlanningOffice of Economic Revitalization

Administrative
Specialist

Communications
Manager

Community
Development
VISTA

OneOahuCall Centerand Web
ManagerBusinessandOahu Film
Commissioner

Data and Community
Specialist

SocialMediaDeveloper
FilmandEntertainmentSpecialist
Web
Development
Specialist

Grants•dmenistrator

Grants and Data
Administrator

Call Center
Specialist II

Call Center
Specialists I(fix)ProgramDirector(Rental &Utility Relief)

ProgramManager(Small Business& Finance)

Economic Recovery
Data Analyst VISTA
MAP
Assistant

Small
Business& Economic 3
Recovery
VISTA

ProgramManager(Innovation &Technology)

Food Security
Sustainability
ProgramManagerFood Sustainabi lily
VISTA

Pacific IslanderliaisonProgram
ManagerProgram
Manager(RegenerativeTourism)(WorkforceDevelopment)

American Rescue Plan Act
OER ARP developments:• Agriculture grants.
• Climate Solutions grants.
• Oahu Back to Work.
• Business Relief.
o Expand upon SBA's Community
Navigator grant to also support
non-profits and farmers.
o Partner with DBEDT on EDA's Build
Back Better grant.

City and County of Honolulu
Coronavirus State and Local
Fiscal Recovery Funds
2021 Initial Recovery Plan

Critical Relief for Event & Wedding (CREW)
Industry Grant• Supports about 4500 event and wedding businesses
o Emergency Order 2021-10 limiting the size of large
gatherings led to business closures.
• First grant program to execute ARPA funds at City andCounty of Honolulu.
• Currently working closely with COR, Purchasing and BFS
to execute RFP.