'21AUG09 PM 4:19 CITY CLERKAttachments

MAYOR'S MESSAGE 117

CITY COUNCILCITY AND COUNTY OF HONOLULUHONOLULU, HAWAIʻI

No.

RESOLUTIONAPPROVING THE RECEIPT AND EXPENDITURE OF $386,252,141 FROM THE
FISCAL RECOVERY FUND OF THE AMERICAN RESCUE PLAN ACT OF 2021.
WHEREAS, under the American Rescue Plan Act of 2021 (Pub. L. 117-2) signed
into Public Law on March 11, 2021 (ARPA), Congress appropriated approximately $6
billion in federal funding to Hawaiʻi, including direct allocations of $386,252,141 to theCity and County of Honolulu through the Coronavirus State and Local Fiscal Recovery
Fund (FRF), in two separate appropriations:$196,954,703 as a metropolitan city;$189,297,438 as a county; andWHEREAS, the FRF provides a key opportunity for the City to support economic
resilience within City communities, bolster City operations, and invest in sustainableinfrastructure; andWHEREAS the eligible uses of the FRF are to:

Respond to the COVID-19 emergency and address its economic effects,
including through aid to households, small businesses, nonprofits, andindustries such as tourism and hospitality;
Provide premium pay to essential employees or grants to their employers;
Provide government services affected by a revenue reduction resulting
from COVID-19; andMake investments in water, sewer and broadband infrastructure; andWHEREAS, the United States Department of Treasury in administering the FRF
promulgated Interim Rules and Compliance and Reporting Guidance, including thefollowing seven (7) categories of eligible expenses, herein referred to as “US Treasury
Eligible Expenses”:
1. Public Health;
2. Negative Economic Impacts;
3. Services to Disproportionality Impacted Communities;
4. Premium Pay;
5. Infrastructure;
6. Revenue Replacement; and7. Administrative; andWHEREAS, the City Council Select Committee on Economic Assistance andRevitalization’s community Stakeholder Advisory Group (SAG) in December 2020

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identified the following six (6) key areas to focus additional COVID-related federal
assistance:

Reform internal City systems to be results-oriented rather than processfocused to ensure timely service and support to the community;
Increase Oʻahu’s affordable housing rental inventory;
Re-imagine the travel and hospitality industry as more diverse in its visitor
portfolio, less reliant on mass market tourism, and more respectful of local
residents and culture;
Implement the Oʻahu Resilience Strategy (adopted in 2019) to the extent
possible;
Increase and upgrade Oʻahu’s broadband capacity; andPartner with the University of Hawaiʻi and other academic institutions toenhance the City’s economic and policy development capacity; andWHEREAS, on April 23, 2021, Budget Communication No. 14 (CC-190)
communicated aggregated projects and programs recommended by individualCouncilmembers for the use of FRF monies, which focused largely on Affordable
Housing and Homelessness, Economic Relief and Small Business Support, Core City
Services and Infrastructure, Transportation, Public Health and Safety, and Community
Outreach; andWHEREAS, on July 28, 2021, Communication 293 (CC-293) provided
recommended principles, strategies, and actions to advance the community-based
needs and recovery priorities as articulated by Councilmembers and community leaders
focused on Affordable Housing and Homelessness, Economic Relief and Small
Business Support, Core City Services and Infrastructure, Transportation, Public Healthand Safety, and Community Outreach; andWHEREAS, on July 28 and August 4, 2021, the City Council held joint public
hearings of the Committees on Executive Matters and Housing and the Economy,
receiving input from community and industry leaders regarding the needs of Citycommunities regarding Affordable Housing and Homelessness, Economic Relief andSmall Business Support, Core City Services and Infrastructure, Transportation, PublicHealth and Safety, and Community Outreach; andWHEREAS, the City’s FRF strategy acknowledges there are separate andadditional allocations of federal funding provided to the City to address government,
economic, and community needs including, but not limited to, $162 million for public
transportation, at least $114 million for rent relief, funding for mortgage relief, $11 million
for the HOME investment partnerships program, and formula funding allocated through4/20/2021 9:45 PM

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CITY COUNCIL
CITY AND COUNTY OF HONOLULUHONOLULU, HAWAIʻINo.

RESOLUTION
the 2020 Coronavirus Aid, Relief, and Economic Security Act (CARES Act) foremergency solutions grants and community development block grants for persons
experiencing homelessness and households facing housing insecurty; andWHEREAS, the City Council and the City Administration recognize the need toremain flexible as further guidance is provided on the allowable use and expenditure offunds, and the evolving needs of the City and its residents, while ensuring an ability torespond to emerging public health priorities associated with the pandemic andmaintaining accountability to the City Council and residents of Oʻahu; now therefore
BE IT RESOLVED by the City Council of the City and County of Honolulu that the$386,252,141 from the FRF be approved and allocated in accordance with thisResolution and its exhibit; andBE IT FURTHER RESOLVED that the City and County of Honolulu’s Recovery
Plan, attached hereto as Exhibit 1, be approved; andBE IT FURTHER RESOLVED that the City Council and City Administration agree
that the priorities for the expenditure of FRF monies are focused around four (4) main
themes:1. Provide community support and address economic impacts;
2. Support equitable economic recovery;
3. Modernize City Operations; and4. Invest in critical island infrastructure; andBE IT FURTHER RESOLVED that allocation of FRF monies shall be guided by
the following principles:Equity. Due to the disproportionate impact of COVID-19 on Honolulu’s
diverse and distinct socioeconomic groups, which are overrepresented in
frontline and other essential industries, investments of FRF monies by theCity should prioritize these groups to address disparities in services,
infrastructure and the adverse impacts of tourism. The City Administration
is urged to create and execute a plan to capture and track data related tothe equitable distribution of FRF monies in alignment with:o Resolution 21-050 declaring the Council’s support of a feministbased economic recovery plan;o Resolution 20-206 declaring the Council’s commitment to equity
and social justice and to the realization of equitable outcomes for

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CITY AND COUNTY OF HONOLULUHONOLULU, HAWAIʻINo.

RESOLUTION
frontline communities through COVID-19 pandemic economic
recovery programs; ando Resolution 21-100 declaring the Council’s commitment to thedisaggregation of demographic data;
Coordination. Where opportunities exist to maximize investment of FRFmonies through the leveraging of monies with other state, federal, nonprofit or community partners, the City shall do so;Flexibility. The City shall remain flexible and responsive in its approachas it learns of emerging needs and shall actively prioritize investment ofFRF monies as appropriate; andResilience. Investment of FRF monies shall be prioritized to ensure thecontinued and consistent delivery of critical services to communities mostvulnerable to continuing economic uncertainty and future impacts ofclimate change; andBE IT FURTHER RESOLVED that, based on the recommendations made in theSAG, CC-190 (2020), CC-288 (2020), CC-289 (2020) and the principles articulated inthis Resolution, investments of FRF monies shall be appropriated as described inExhibit 1, provided that priority is urged to be given to projects which have completed an
FRF Request and are U.S. Treasury Eligible Expenses; andBE IT FURTHER RESOLVED that the City Administration is urged to maintaincomprehensive financial and programmatic reporting regarding the use of FRF moniesto include, at a minimum:
A public facing digital dashboard, updated monthly to include funding
allocated, encumbered, and expended by federal expenditure category as
was previously done with the CARES Act dashboard atwww.oneoahu.org/dashboard;
Providing updates to the public through the City Council; andQuarterly financial and programmatic reports to Council detailing thestatus of all major FRF funded projects (over $50,000), fund balance anddetailed financial reports used to update the public dashboard, spending
per allocation line in Exhibits B and C, and complete encumbrance andexpenditure report in a data rich version (.xlsx or .csv); andBE IT FURTHER RESOLVED that the Mayor, or the Mayor’s designee, is hereby
authorized to carry out the provisions of this Resolution; and4/20/2021 9:45 PM4CITY COUNCILCITY AND COUNTY OF HONOLULUHONOLULU, HAWAIʻI

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RESOLUTION
BE IT FURTHER RESOLVED that the City Council shall approve by resolution all
subsequent annual Recovery Plans prior to submittal to the U.S. Department ofTreasury; andBE IT FINALLY RESOLVED by the Council of the City and County of Honolulu
that in service to the residents of the City and County of Honolulu, the City
Administration is urged to act to ensure strategic, transparent, and equitable use of FRF
monies in collaboration with Council.

INTRODUCED BY:DATE OF INTRODUCTION:

Honolulu, Hawaiʻi

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Councilmembers5