Acknowledgements

We wish to acknowledge the following departments and individuals for their contribution in the
development of this document:

Office of the Mayor
Rick Blangiardi, Mayor

Samuel Moku, Chief of Staff

Office of the Managing Director
Michael D. Formby, Managing Director

Danette Maruyama, Deputy Managing Director
Andrew Malahoff, Executive Assistant
Chamara Silva, Special Assistant

Kevan Wong, Special Assistant

Office of Economic Revitalization
Amy Asselbaye, Executive Director

Office of Climate Change, Sustainability and Resiliency
Matthew Gonser, Executive Director

Nicola Hedge, Deputy Director

Department of Budget and Fiscal Services
Andy Kawano, Director

Carrie Castle, Deputy Director

Connie Kaneshiro, Chief Fiscal / CIP Analyst

Department of Corporation Counsel
Jessica Wong, Deputy Corporation Counsel

20


Vi.

Vil.

Vill.

Community workforce agreements

The City utilizes a Community Workforce Agreement (CWA), which is a form of Project
Labor Agreement, for certain covered public works projects. Covered projects have contracts in
excess of $2,000,000 for new buildings, facilities, or infrastructure projects that do not involve
routine operation or maintenance. Covered projects may also include public works projects
where a delay in completing the project may lead to the interruption or delay of services or use
of facilities that are important to the essential operations or infrastructure of the City. The CWA
ensures that projects proceed expeditiously, with high quality construction performance and
strong labor standards.

Contractors on certain covered public works projects execute an agreement to be bound
by the CWA as a precondition for working on the project. The CWA includes the following
requirements:

Employees are hired through job referrals from unions.

Work stoppages and disruptions are not allowed.

Grievance resolution procedures are used for disputes.

Safe working conditions and drug and alcohol prevention programs are required.
Minimum standards are specified for apprentice training.

Union master agreement specifies wages, hours, and other terms and conditions of
employment.

e Discrimination pursuant to federal or state law or regulations is prohibited.

Use of Evidence
Although the City and County of Honolulu will collect and rely upon evidence-based data to

support program administration, no projects utilizing evidence-based interventions, as
described in U.S. Treasury guidance, are being proposed at this time.

Table of Expense by Expenditure Category

No monies from the State and Local Fiscal Relief Funds have been expended.

Project Inventory

No projects have yet been funded by the State and Local Fiscal Relief Funds directly
awarded to the City and County of Honolulu.

Performance Report

The Recovery Plan shall comprise a number of projects designed to address the needs of
residents and businesses through various grants, system upgrades, and assistance programs.
Currently, these projects fall under four major categories and several sub categories, each with
substantially similar goals and outcome measures:

14


maximize the value of these investments. The priorities outlined below are based on diverse
inputs that have brought community needs into focus, including: prior experience from CARES
funding; Mayor Blangiardi’s 2021 State of the City and Roadmap to Recovery; community needs
and perspectives shared in relevant City Council hearings; initial Council ARPA initiatives as
communicated in the FY21 budget process and ARPA Priorities memo; the O‘ahu Resilience
Strategy; and, community needs and recommendations identified through the 2020 Select
Committee on Economic Assistance and Revitalization Stakeholder Advisory Group (EAR-SAG)
report.

Distinct projects, supporting these fundamental goals and the respective sub-categories,
will be identified on an on-going basis through consultation with the Honolulu City Council and
the public to ensure that the needs of the community, as highlighted in this strategy, are served
and funds are deployed through a disciplined and deliberative process in a manner compliant
with US Treasury guidance.

Moreover, in recognizing that the pandemic continues to present known and unknown
health and economic threats to our residents, this initial Recovery Plan, along with the
allocations and programs and projects discussed herein, are designed to provide maximum
flexibility to ensure the needs of our communities can be met as quickly as possible while
maximizing the value of FRF investments.

The City’s Goals and the respective subcategories are aligned and comply with the
defined Federal Expenditure Categories (EC) (and their respective subcategories), which are:

Public Health (EC 1)

Negative Economic Impacts (EC 2)

Services to Disproportionately Impacted Communities (EC 3)
Premium Pay (EC 4)*

Water, sewer, and broadband infrastructure (EC 5)

Revenue Replacement (EC 6)°

Administrative (EC 7)

Noa Pons

This Recovery Plan presents the use of funds via the City’s four Goals and the specific
Federal EC for each project and/or program will be identified within the Goals’ sub-category line
items, as shown in Exhibit A. The following allocations express the City’s intentions for the use
of FRF across our Goals.

When considering individual projects and programs for the use of funds, in support of the
City’s goals, projects will go through initial program development. The implementing department
will ensure the proposed program or project aligns effectively with other projects and programs,
has quantifiable outcomes and objectives that can be articulated and measured, as required by
the “Compliance and Reporting Guidance for State and Local Fiscal Recovery Funds” from the
U.S. Department of the Treasury. Projects will be evaluated for their ability to comply with other
requirements, including but not limited to:

2 The City does not intend to provide premium pay at this time.

3 The City has determined an eligible revenue replacement of $255,071,402 through 12/31/20. The total
revenue replacement is possible to surpass the total ARP amount provided to the City and County, but the
City has yet to make complete determinations that all eligible expenditures for (EC 6) will be categorized
as such.


EXHIBIT A

Tameifunding, Cateaory Subtotal
Amount —of Target amounts.

Category Allocation

Category
Allocation less

Grouped Subtotal

$64,850,000)

'$110,000,000

$45,150,000

JS years of funding support for Council-recommended emergency
|response diversion programs to respond to severely mentally ill
[persons

* Providing interpreting services in various languages
|+ Culturally and linguistically-tailored COVID-19 education and

awareness efforts |

* Assisting individuals and their families in accessing state quarantine

‘and isolation facilites, training, testing and contact tracing

' Provides social service suppor in housing, health, food, supplies,

land other needs

= Provides PSA's in different languages about preventions, COVID- $500,000
related services |
+ Provides interpreting, phone application and benefit assistance

iprograms: unemployment, household hardship relief and other related

services

(GORE, (Gris Outreach Response & Engagement) Project Star-up
lcosts, Lease costs, Personnel costs, Current Vehicle prep, Vehicle |
acquisition

$3,000,000]

Funds for mini-grant program to at least 20 community-based $300,000]
lorganizations representing frontline communities working in key areas
(food, health, environment, housing, job security, green growth,
lculture, keiki and kupuna care, feminist recovery, ‘aina-aloha
leconomic recovery) to provide periodic review and input into
|Administrative recovery planning, relevant City Council recovery
planning hearings, gathering and sharing data regarding community
resilience and re

1
Public Health/COVID
1

Domestic Violonce Prevention and Suppor, cluding neveasing $400,000

shelter —:

Vaccine Incentive Program - Providing incentives for vaccines @ up-
‘to $100/completed vaccination cycle S19/000,000

‘Continuation and expansion of COVID testing, including acquisition of|
antigen/PCR test kits and staffing requirement for additional testing
locations and isolation facilities

{$25,000,000}

‘Aid to businesses/ nonprofits

‘Small business / non-profit aid: grants, technical assistance and |
resources for small businesses in need of support by subject matter
experts with various business needs to pivot during the pandemic
such as help with finances, legal support, online presence and
marketing. One-stop resource center for small businesses to build
capacity to support sustainable agriculture and locally made products

$20,000,000)

2
Aid to households

ai

‘Agriculture and Food Sustainability

Workforce Development and Retraining,

‘Affordable Housing

3

3

Family. Children and Elderly Supports

(Community Assistance and Support Hubs

Fiscal Support for HNL Recovery Accelerator to assist and strengthen gen000)

local eit

‘Kupuna Education and Outreach: Engagement to educate the
‘community on available services, programs and resources porta |
kupuna and their caregivers,

$300,000)

‘Aloha United Way 211: Fiscal support for AUW 211 referral system
{ior addressing resourcing needs to meet increased demand for social
land human services

$26,011,000
Initial program: Three-year local agriculture grants program to be |
lestablished at OER to support local farmers and food producers
recovering from the COVID-19 pandemic and food hubs to connect
small farms and food manufacturers to markets.

|Cahu Back to Work: Provide COVID-Impacted workers the
[opportunity to participate in short-term certification training programs
through the University of Hawaii's Community Colleges free of
Icharge. Training may include classes, industry certification exams,
lancioron te job experiences (e.g, paid internships).

Multi-sector collaboration to promote economic recovery via workforce

development, job-creation, placement and retnetion opportunities $6,000,000}

Property Assessment Programs: Programs to assess properties for ~

|suitabilty for acquisition, development and use for affordable housing

$900,000
ind / or temporary shelters
Landlord Engagement Program: link between landlords with vacant
units and households experiencing homelessness or at risk of
becoming homeless

$1,500,000)



‘Other Operations - Not Salary or Systems

Purchasing Division - personal service contracts to statf up for

6 procurement of ARPA and other projects $400,009
Funding for a postion to provide outreach and education with non
6 profit groups and the general public on programs and partnering $210,000)
‘opportunities with the Urban Forestry Division. (3 years)
3 Equipment acquisition for remote meeting options to increase publle $20,000!
anticipation at Neighborhood Board meetings. : _
6 |Funding to support Prosecuting Attorney's Weed and Seed program $750,000
in the Chinatown-Kaka'ako and other communities. (3 years) |
Provision of private security services for City-owned properties and
6 sidewalks that abut River Street, Pauahi Street, Maunakea Street, $250,000]
[Smith Street, Hotel Street, Nuuanu Avenue, and Nimitz Highway.
3 Funding for equipment for additional stafing (Le. hardware, software, $1,000,000] |
workstations)
[4 Invest in Critical Island Infrastructure $75,000,000, $60,000,000 | $28,000,000
5 ‘Broadband expansion assessment $1,500,000. -
_— 5 NPDES MS4 Retrofit Structural BMP Improvements Program $2,500,000)
5 NPDES MSé Structural BMPs for Trash Reduction $2,500,000)
5 NPDES MS4 TMDL Structural BMPs for Trash Reduction $2,000,000)
5 Rehabilitation/Reconstruction of Storm Drains and Catch Basins $4,250,000)
5 Rehabilitation/Reconstruction of Storm Drains and Gatch Basins $2,000,000]
Kakaako
5 Other Infrastructure projects that are shovel ready, meet ARPA FRF
requirements, and can encumber and expend funds by deadlines.
6 [Ala Wai Flood Control: Community Plan and Community Engagement $250,000
[— - GRAND TOTALS. $162,762,000 $162,762,000 $386,252,141| __$223,490,141
Total ARPA FRF $306,252101
Total Targeted Projects '$162,762,000)
Total less Targeted Projects $23,490,141



X. Required Performance Indicators and Programmatic Data

The Program Manager shall also include a number of mandatory performance indicators

and programmatic data, disaggregated by race, ethnicity, gender, and income, if possible, that

will be used by the US Treasury to conduct oversight, understand and aggregate program
outcomes. These mandatory performance indicators shall include:
e For Household Assistance and Housing Support Programs
o Number of people or household receiving eviction prevention services
o Number of affordable housing units preserved or developed
e For Negative Economic Impact Programs
o Number of workers enrolled in sectoral job training programs
o Number of workers completing sectoral job training programs
o Number of participants in summer youth employment programs
e For Education Assistance Programs
o Number of students participating in evidence based tutoring programs
e For Healthy Childhood Environment Programs
o Number of children served by childcare and early learning
o Number of families served by home visit

Program Report Checklist SAMPLE

Program Name:

& Output Goal
& Key Performance Indicators
& Output Measures
& Outcome Measures
O Logic Model (Optional)
CO Recipient Program Evaluation (Optional)
0 Outcome measures aligned with program evaluation

Select One.
O Household Assistance and Housing Support Program
CNumber of people or household receiving eviction prevention services
CNumber of affordable housing units preserved or developed
O Negative Economic Impact Program
CNumber of workers enrolled in sectoral job training programs
CNumber of workers completing sectoral job training programs
CNumber of people participating in summer youth employment programs
O Education Assistance Program
CNumber of students participating in evidence based tutoring programs
O Healthy Childhood Environment Program
ONumber of children served by childcare and early learning
ONumber of families served by home visiting
Other


Promoting Equitable Outcomes

Though our entire island community has been impacted by COVID-19, our frontline
communities, typically defined as communities disproportionately exposed and vulnerable to
health threats, climate-based and economic disruptions and dislocation, and with fewer
resources, capacity, safety nets, or political agency to respond to and withstand those risks,
have been disparately impacted. Those living in our frontline communities have been more likely
to get sick, lose jobs, go bankrupt, experience violence and/or mental illnesses, go hungry,
become homeless, forego necessary healthcare, and lack the resources to deal with shortages
of goods, rising costs, and the ill-effects of shuttered government services. In essence, frontline
communities are more likely to experience adverse health effects and economic decline
associated with COVID-19.

Even prior to the COVID-19 pandemic, Aloha United Way’s (AUW) ALICE‘ reports
documented that 42% of Hawai‘i households were Asset Limited, Income Constrained,
Employed (ALICE). That includes 9% of households below the federal poverty line and another
33% above but still struggling to make ends meet. According to AUW, by June 2020 that
number had jumped to 59% of Hawai'i households being ALICE, or another estimated 78,000
households to the already 190,390 households that were already considered vulnerable.

These ALICE communities and other frontline communities often include low-income
communities; immigrant and refugee communities including those with undocumented
immigrants; Native Hawaiians; Pacific Islander communities; Compact of Free Association
(more commonly referred to as “COFA”) communities; communities of color; people with
disabilities; people experiencing houselessness or housing insecurity; the LGBTQ+ community;
as well as women, keiki, kipuna; and, anyone at the intersection of these identities. These
communities often additionally contend with racism, intergenerational trauma, and poverty,
among other factors linked to their lived experiences that contribute to disparities and
inequitable outcomes across income, education, and health.

Efforts to rectify and redress systemic and historical racism, disparity, and disinvestment
in frontline communities are essential with demonstrated recognition at the local and national
levels. This includes Resolutions 20-206, Proclaiming the Honolulu City Council’s Commitment
to Equity and Social Justice and to the Realization of Equitable Outcomes for Frontline
Communities Through COVID-19 Pandemic Economic Recovery Programs, and 21-50,
Requesting the City Administration to Support a Feminist-Based City COVID-19 Economic
Recovery Plan. At the federal level, President Biden issued Executive Order 13985, Advancing
Racial Equity and Support for Underserved Communities through the Federal Government,
which directs the Domestic Policy Council to identify communities the Federal Government has
underserved and develop policies designed to advance equity for those communities in
consultation with those communities; and directs the Director of the Office of Management and
Budget to identify methods to assess equity across federal agencies and promote equitable
budget allocation to address historic failures of sufficient, just investments in underserved
communities. Additionally, Executive Order 13995, Ensuring an Equitable Pandemic Response
and Recovery, directs a government-wide effort to address health equity and take swift action to

4 Aloha United Way, “ALICE: A Study in Financial Hardship in Ha https://www.auw.org, Aloha
United Way, 2020, August 8, 2021, https://www.auw.org/alice-study-financial-hardship-hawaii



d. Aid to Households (EC 2)
Programs that provide direct support to households hardest hit by the pandemic,
including food assistance, economic recovery and wellness programs, and rent
and utility relief.

e. Community assistance and support hubs (EC 2)

Programs and people to support access and referral to recovery resources and
assistance based in communities disproportionately impacted by the pandemic.

2. Support equitable economic recovery ($156,252,141)

The economic impacts of COVID-19 have been most acute in lower-income
neighborhoods, including concentrated areas of high unemployment, limited economic
opportunity, and housing insecurity. For those who were employed, a disproportionate impact
fell on those working in the hospitality sector, where a combination of over-reliance on the
sector and lower pay resulted in disparate economic harm. The high cost of housing and
necessities have exacerbated these negative impacts. An economy over-reliant on a single
sector was identified long ago with devastating impacts during the pandemic. COVID-19 can
and should serve as a turning point for our island economy. With these American Rescue Plan
funds, we have an opportunity to address the shaky infrastructure upon which previous growth
was based.

Alleviating the immediate economic impacts of the COVID-19 pandemic on housing and
food insecurity, while addressing conditions that contribute to poor public health and economic
outcomes during the pandemic, services to address homelessness, increasing the supply of
affordable and high-quality living units, and additional housing vouchers to help residents
increase their economic opportunity are eligible and necessary expenditures of FRF monies.

Most importantly, targeting these efforts to help individuals from disproportionately
impacted communities overcome long-standing equity issues by finding alternative opportunities
in an increasingly diversified economy will lead to more equitable outcomes.

Honolulu’s high-cost of living and the systemic economic shocks of the global pandemic
have also worsened the threat of food insecurity to individuals and households not previously
exposed to such risk. Further, disruptions in global supply chains underscore the need to
support and expand the availability of locally-grown and produced food. Increasing the
availability of locally-generated sustenance, produced by a local workforce, will inherently
improve economic equity by providing increased market opportunities for consumers, as well as,
increased employment opportunities in the labor sector.

Providing equitable recovery and economic diversification support is organized into the
following strategies:

a. Agriculture and food sustainability (EC 2)
Programs that strengthen our agriculture sector and local food sustainability by

offering farmers agriculture business education, technical assistance and food
safety training; by increasing the opportunity for small farm processing,


e Encumbrance and expenditure deadlines

e Eligibility requirements for expenditure of funds under the applicable expenditure
categories defined by the U.S. Department of Treasury

e Administrative requirements (documentation, data, monitoring, and reporting)

e The Hawaii Procurement Code, unless one of the four exceptions stated in the
Compliance and Reporting Guidance applies

e Compliance with other applicable federal requirements, state law, and city ordinances

Projects that meet the above requirements will be further evaluated for priority of funding using
selection criteria developed jointly by the Administration and the City Council.

Exhibit A provides a listing of individual projects and programs, categorized by the four
Fundamental Goals of the City, that have been preliminarily evaluated for compliance and are
essential to supporting other projects and programs currently under development and
evaluation, as described in Exhibit B.

1. Provide community support and address economic impacts 110,000,000)

Supporting communities and addressing the acute and continuing systemic economic
impacts of the pandemic will be achieved through: providing services for at-risk individuals and
the homeless, ensuring adequate funding for public health services directly related to COVID-
19, providing direct and in-direct financial support to business and nonprofits, funding for keiki
and kipuna wellness programs and funding general community assistance and support hubs
within individual communities.

Distinct programs will include: assistance to households, businesses, and populations
facing negative economic impacts due to COVID-19, including food assistance; rent, mortgage,
and/or utility assistance; counseling and legal aid to prevent eviction or homelessness; cash
assistance; emergency assistance for burials, home repairs, weatherization, or other needs;
internet access or digital literacy assistance; job training to address negative economic or public
health impacts experienced due to a worker’s occupation or level of training; supporting small
businesses by helping them address financial challenges caused by the pandemic; and
investing in COVID-19 prevention and mitigation tactics.

a. Services for the at-risk and homeless (EC 1)
Projects which provide housing to homeless individuals as well as wrap-around
mental health and substance abuse services. Projects that address the
exacerbation of public health, economic and educational disparities by providing
services and outreach to underserved communities.

b. Public health and COVID-19 response (EC 1)

Programs which provide direct services in response to COVID-19 or address
health needs for vulnerable communities.

c. Aid to businesses and nonprofits (EC 1)
Projects that provide direct support to small businesses and nonprofits to

address relief and recovery from the pandemic, as well as support efforts to
create a more shock resilient economy.


Resources

Treasury:

Interim Final Rule

Fact Sheet

FAQs (updated 6/24/21, 7/19,21)
Quick Reference Guide

Compliance and Reporting Guidance

o Memorandum M-21-20 - Promoting Public Trust in the Federal Government
through Effective Implementation of the American Rescue Plan Act and
Stewardship of the Taxpayer Resources

Council Communications

e 3/11/21 — ARPA signed into law.

e 4/14/21 - Status Update Request Letter — CM Cordero for Resolution 20-206 CITY
SOCIAL JUSTICE AND EQUITY COMMISSION

o Response - 7/9/21

e 4/23/21 - BUDGET COMMUNICATION NO. #14 - COUNCIL ARPA PRIORITIES

e 5/19/21 - Federal Fund Presentation to Honolulu City Council Budget Committee - Jill
Tokuda, Special Advisor to the Hawaii Data Collaborative

e 6/9/21 - Budget Communication No. 17—ARPA Treasury Guidance to Determine
Revenue Replacement, Revised Response

e 6/2/21 - Resolution 21-88 - to request monthly line item reports of the City’s CARES and
ARPA expenditures and encumbrances.

e 6/22/21 - MD to Chair letter: CARES Dashboard Published

Council Chair Allocation Resolution Draft — Distributed 5/25/21

e ARPA Allocation Reso Deck - DRAFT

e ARPA Allocation Resolution - DRAFT
o Exhibit A & D — Allocation Overview
o Exhibit B - Allocations Table
o Exhibit C — Action Plan

CARES
CARES Act EAR Committee Proposal — May 13, 2020

Comparative Municipalities

Notes on Comparative Municipality Allocations


a. Operating budget and personnel (EC 2, 6)

Funding for staffing to restore services that were reduced due to COVID-19
related funding limitations. Increase funding for: public health and safety,
resilient infrastructure and actions on energy and climate change; planning and
permitting efficiency and enforcement, and the collection of research and data to
successfully pursue and implement competitive grants and partnerships.

b. Stormwater management program (EC 5, 6)

Programs to protect our island and people from the impacts of climate change
including increasing stream and storm drain maintenance to prevent flooding,
comply with federal and state requirements, and advance comprehensive
stormwater management and green infrastructure planning and operations.

c. City systems improvements (EC 6, 7)

Funding for systems that create a more shock resilient economy and City
government including upgrades to hardware, software improvements to
modernize city operations and address cyber security needs, and changes to
City processes to address systemic inequities and increase efficiency.

d. Miscellaneous City programs (EC 6)

Fiscal support to enhance the City’s impact towards a more equitable and
resilient economy and for sustained and consistent operations, service, and
growth of the City’s multi-modal public transportation systems, including shared
mobility options adversely impacted by the COVID-19 pandemic.

e. Other Operations — not Salary or Systems (EC 6)
Restore or increase funding to improve operations and address deferred
maintenance at City facilities; focus areas include improvements for public safety,
as well as to revenue enhancing venues such as the Zoo, auditoriums, golf
courses and parks.

4. Invest in critical island infrastructure ($50,000,000.00)

Funding to strengthen City infrastructure, including water capital projects (stormwater,
drinking water and wastewater), broadband access, roads, bridges and climate
solutions.

a. Water (EC 5, 6)
One Water: addressing essential and difficult changes across the drainage,
drinking, and wastewater systems including catalyzing conversions on cesspools
island-wide toward state law to convert all cesspools by 2050.

b. Broadband (EC 5, 6)
Increase wifi and connectivity access in public areas and within the community
backbone of the rail guideway.


City and County of Honolulu
Coronavirus State and Local
Fiscal Recovery Funds

2021 Initial Recovery Plan



IV.

Community Engagement

Is

At the onset of the COVID-19 pandemic, community coalitions and government
immediately fostered conversations and opportunities to listen island-wide regarding the
immediate needs of our communities confronting the pandemic-related health and economic
crisis. This organizing informed CARES programs, the creation of a new City office (Office of
Economic Revitalization--OER), and the building--and straining--of networks, relationships, and
partnerships, all in support of addressing the most immediate needs, much of which remains
today 18 months after the onset of the pandemic. Community organizing also surfaced and
pointed towards a different vision for our communities and the proposition for more secure
households, communities, economy, and City operations.

This Recovery Plan builds from those inputs and processes across government and
communities, such as:

Government

°
°

Mayor's 2021 State of the City and Roadmap to Recovery

2020 City Council Select Committee on Economic Assistance and Revitalization
Stakeholder Advisory Group (EAR-SAG) report and 2021 City Council hearings
CARES process assessments and conclusion

Sustainability and Resiliency

City O‘ahu Resilience Strategy and Climate Action Plan

One O‘ahu community call center and OER business and constituent community
educator outreach and Pacific Islander liaison

Community

000000

‘Aina Aloha Economic Futures

Hawai‘i Green Growth

Hawaii Community Foundation

CARES process assessments and conclusion
Uplift Hawai‘

Blue Planet Foundation Wayfinders

In particular, the community members serving on the EAR-SAG strongly supported
continuation and improvement of community economic support programs developed with
CARES funding, and additionally identified six key areas to focus any additional COVID-related
federal assistance, specifically developing recommendations, which include:

Reform internal City systems to be results-oriented rather than process-focused to
ensure timely service and support to the community in order to effectively and
expeditiously deploy funds

Increase O‘ahu’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 O‘ahu Resilience Strategy (adopted in 2019) to the extent possible

Increase and upgrade broadband capacity on O‘ahu

12


prevent and remedy differences in COVID-19 care and outcomes within communities of color
and others underserved.

Subsequent annual reporting, following expenditures and program development, will
consider and measure equity at the various stages of programs, including

a. Goals: Are there particular historically underserved, marginalized, or adversely
affected groups that you intend to serve?

b. Awareness: How equal and practical is the ability for residents or businesses to
become aware of the services funded by the FRF?

c. Access and Distribution: Are there differences in levels of access to benefits and
services across groups? Are there administrative requirements that result in
disparities in ability to complete applications or meet eligibility criteria?

d. Outcomes: Are intended outcomes focused on closing gaps, reaching universal
levels of service, or disaggregating progress by race, ethnicity, and other equity
dimensions where relevant for the policy objective?

Additional details and considerations are provided in Section IX. Performance Report. To
ensure overall equity through FRF specific services or programs developed and offered will
consider negative economic impacts (EC 2) and services to disproportionately impacted
communities (EC3).

Promoting equitable outcomes requires investing in programs with a strong evidence
base. Where information and/or data is lacking, we will build structures with the resources and
processes necessary to guide equitable FRF expenditures, including data disaggregation in line
with Resolution 21-100, CD1. Key principles to advance equity in initiatives are:

e Design for ‘hardest to reach’ and most in need;
e Design programs to ensure everyone will benefit — think about awareness, accessibility;
e Building short cycles of feedback to inform qualitative discussions.

In consideration of and targeted disbursement of FRF, the City will employ principles and
other socio-demographic and geographic-based data including City and County of Honolulu
Federal Housing and Urban Development (HUD) 2021 Qualified Census Tracts (QCT = 50
percent of households with incomes below 60 percent of the Area Median Gross Income (AMGI)
or have a poverty rate of 25 percent or more).

Meeting these goals will require an “all of government” approach to ensuring
investments from FRF are directed toward an equitable recovery, as well as key expenditures in
City equity-focused staff, data, and reporting.

The City acknowledges that equity is tantamount with responsible governance and
successful solutions prioritize the most marginalized among us.

"1


distribution, and value-add through cooperatives; by supporting incentives for the
purchase of locally grown products; and by direct-to-consumer markets for locally
produced food.

b. Workforce development and retraining (EC 2)

Programs that train workers in order to increase their opportunities to re-enter the
local workforce while also supporting the development of key sectors including
clean energy, green building and resilience, healthcare, technology and
dependent care.

c. Affordable housing (EC 3)

Programs that increase the amount of affordable housing for all and housing for
homeless people, both by direct investments to increase the amount of available
housing, and by providing incentives and support for the development of
innovative housing solutions such as transitional housing with on-site wrap
around services, Accessory Dwelling Units, mini homes, micro-units and
communal housing.

d. Family, children, and elder supports (EC 3)
Programs that provide enrichment programs for the elderly and those in
underserved communities that focus on STEM, digital literacy and technology.
Programs that help pay for child care and summer programs for working families
who are ineligible for state subsidies.

3. _Modernize City operations ($70,000,000.00)

Staffing shortfalls (including the 26% of City and County of Honolulu positions that are
either vacant or eligible for near-term retirement) undermine the City’s ability to deliver core
services effectively and add to the number of unemployed individuals in the City. The City also
experienced major revenue loss during the pandemic due to the economic downturn. The loss
of the Transient Accommodations Tax, two-thirds fewer public transit riders, the closure of City
revenue-generating venues, a reduction in demand for fee-generating services, and the loss of
other operational revenues all negatively impacted Honolulu’s economy.

Restoring department operating budgets, accelerating and expediting hiring, and
investing in new technologies and administrative capacity will minimize the impacts of COVID-
19 on City services while maximizing the City’s ability to deploy FRF funding effectively and
expeditiously into our communities. Additionally, the City faces a backlog of major Capital
Improvement Program (“CIP”) projects which were deferred in the early days of the pandemic
while procurement resources concentrated on the deployment of CARES monies. CIP projects
stimulate the local economy, employ hundreds of private sector employees, and enhance our
island’s resilience to climate change and the next economic shock. While CIP should be
deployed concurrently with FRF programs and projects, the reality learned in 2020 is that they
strain existing City procurement resources. Funds allocated by this Plan will allow the
Administration to establish new positions, prioritize aggressive recruiting and hiring of key
personnel, and improve City operations and CIP program capacity.


3 [Youth Development Services including Summer Fun subsidy (Parks) | $2,596,000

3 (Outdoor Recreation Space Restoration (Year 1) [ $2,075,000|
Moderi Operation:
Operating Budget - Personnel

2

$56,901,000) — ‘$70,000,000 $13,099,000

Funding for five positions for park rangers to enforce rules and

regulations in City parks. (3 years) 1,800,000] _ |

Funding for enforcement positions within DPP to actively investigate
6 and reduce illegal vacation rental operations in O'ahu neighborhoods $1,500,000)
island-wide. (3 years)

Funding for a 3-5 person Equily and Community Liaison Team and
\data contractor within MAY/MDO (OER, CCSA) and key City
|departments to increase equitable outcomes from ARPA-funded

6 leconomic recovery and resilience programs on O'ahu, increase $1,500,000)
‘community outreach and engagement in HUD 2021 Qualified Census
“Tracts and track data relevant to equitable recovery goals (alignment
with Resilience Action #44)

‘Additional administrative capacity to administer and execute federal
funding via a management division in the Office of Economic
Revitalization (OER) to administer, oversee, and ensure synergies for

8 Ihe remaining CARES, ARPA, and subsequent infrastructure and $836,000)

{ederal funding opportunities in alignment with state and non-profit

partners (as allowed by admin costs to administer the funding).

Funding for a position and software within COSA to administer a -
6 Better Buildings city energy benchmarking program to reduce energy $600,000

‘costs for local businesses, create clean energy jobs, and meet city
climate goals. (3 years)

Funding for two additional Federal Grant Team positions to be

6 located in OER to identify, pursue, secure, and manage competitive $900,000
{federal grant funding. (3 years) _
Funding for positions to support expanded Federal funding and ee00000
lcontract awards (BFS, COR) ‘

6 Road Maintenance Quick Build Crew (EC #.#): $200,000/yr for 3 ‘$600,000
years to support road maintenance crew to proactively address
deferred maintenance or new “quick build projects” around Complete
\Street and Vision Zero priorities in HUD Qualified Census Tracts

FEMA Community Rating System program administrator to reduce

6 {ood insurance premiums for local residents. (3 yeas) $200,000
6 General funding for near-term hiring to support City operations $2,000,000, -
6 Funding for 3 years for Community Garden Cooridnators $600,000 - —|
‘Stormwater Management Programs
Funding for City enhanced stream and storm drain maintenance to
5 keep up with the increasing frequency of heavy and prolonged rain $5,000,000)

events.

‘Storm Water Asset Management / Master Planning Study: New
Master Planning for Storm Water Quality Program to create an asset
5 \database, a Green Infrastructure implementation plan, a functional $9,000,000]
Iplan and a 30-year CIP program for asset addition and
renewal/replacement. -
‘Storm Water Management Plan Improvements at Beretania Complex
and Heeia Corporation Yard: Install improvements to eliminate
pollutant runoff from the Beretania Complex and Heeia Corporation
Yard.

$1,000,000|

City Systems Improvements

Development and migration to a cloud-based Enterprise Resource
‘System allowing for increased transparency and operational efficiency

$2,000,000

® across City platforms including building permitting, city budgeting,
{grant processing and management, and other City functions.
: Enterprise Grant Management System - GrantCare $200,000 and MS a -
6 'Azure $50,000 totaling $850,000. $150,000 for additional {$500,000
—_ _ __|[programming/software _ a _
'ARPA Compliance and Oversight Auditor to assist the City with
6 tracking funds and remaining in compliance with federal rules without $835,000
_ —_ additionally compromising BFS capacity. — _ - _| |
6 [Administrative support for ARPA funds and for proposed CBDD_ 170.000
S _ projects at 10% x total new projects. abil _ _|
Permitting process — Infrastructure improvements-systems upgrade $0,500,000]
a _|(OPPIDIT); cost over 3 years —_—_ 59,500,000] | _
Imaging - digitization of DPP plans, microfiche, fm based records
$81,000]
— thru automated scanning | _s _ __ — _
(City fleet telematics and efficiency: toward implementation of '$500,000

Resilience Strategy Action 27, Climate Action Plan Action 4.2, and
Ordinance 20-47, i.e., “clean fleet" conversion and efficiency _
6 ‘Telework-related technology: to support telework-related technology $800,000
land management systems to implement long-term telework policy and
retain/attract new City talent __ a
é Easy Commute Programs: toward transit, mioro-transit and incentive $7,000,009]
iprograms to employees about multi-modal transportation options to

promote access to City jobs, reduce congestion and rehire and retain

City alent —
Mise. Cty Programs a -
Fiscal support for sustained and consistent operations, service, and

\growth of the City's multi-modal public transportation systems,

g including shared mobility options adversely impacted by the COVID- $1,000,000
_ a 19 pandemic. __| _ - | _
6 Climate Solutions Fund: partner with fiscal partners to fund shovel- $10,000,000)
- | worthy projects that provide climate solutions. _ _ - _
|Rent and relocation costs for the Wahiawa Satel $50,000

Licensing Center.



pandemic. These community-based visions (detailed in Section IV. Community Engagement
below) directly inform this Recovery Plan and call for an intentional pivot to support quality of life
of residents, a focus on the basics of housing and meaningful jobs for our people, advancing
areas of the economy that promote self-sufficiency and climate resilience and action, and
improving City systems and investing in critical infrastructure.

In addition to rooting this Recovery Plan in community-based calls for action, the City
seeks to ensure public input on the initial strategy as well as emerging needs over the life of the
FRF. Early engagement included drawing on the policy resolutions adopted by the Honolulu City
Council, various presentations made to and reports of City Council committees and public
hearings specifically dedicated to the potential allocations of the FRF. The City, through its City
Council, will continue to engage the public with on-going public hearings to discuss and provide
updates to specific projects and programs developed consistent with the allocations in this initial
Recovery Plan.

An active pandemic, along with the existential threats of climate change and social
disharmony, provides us the perfect opportunity to face these challenges now, using this
recovery process to address core structural problems. For example, we have too many low
paying jobs that cause everyday families to spend all their time working, with little to no time for
family and healthy living. We have been slow to invest in the civic capacity and social capital
necessary for critical collective public and private efforts that improve the public welfare, and we
are unacceptably vulnerable to interruptions that affect our food supply, energy resources, and
other necessities for life. The fact that our collective response to the virus was among the best
in the nation and yet our economy was damaged among the worst of all states should tell us the
time to address our structural deficiencies is now.

The City and County of Honolulu’s Coronavirus State and Local Fiscal Recovery Funds
Recovery Plan plan heeds the American Rescue Plan’s call to action to “Build Back Better.”
Accordingly, we will not put our economy and government back to the way it looked pre-
pandemic. Instead we will look at every opportunity to invest in more resilient economic bases
that create sufficient jobs. At the same time we will deprioritize past priorities that left us at risk
and more vulnerable to shocks. We will be flexible, adaptable and proactive as we work to
reshape and refine major social constructs including, but not limited to, our approach to housing,
investments in children, support for the elderly, food systems, energy systems, transportation,
entrepreneurship, and educational programs. To support these efforts we will inject resources
into the creation of a more modern, effective and efficient city government.

Il. Use of Funds
The fundamental goals of the City’s strategy to deploy FRF are to:

Provide community support and address economic impacts
Support equitable economic recovery

Modernize City operations

Invest in critical island infrastructure

PONS

The City will allocate FRF in ways that leverage ongoing economic revitalization
Strategies initiated utilizing other ARPA and/or Coronavirus Aid, Relief, and Economic Security
(CARES) Act of 2020 funds, and align with existing plans and stated community goals to


Provide Community Support and Address Economic Impacts

o Services for At-Risk and Homeless

o Public Health/COVID

o Aid to Businesses/Nonprofits

o Food Security and Kupuna Wellness

o Community Assistance and Support Hubs
Support Equitable Economic Recovery

o Agriculture and Food Sustainability

o Workforce Development and Retraining

o Affordable Housing

o Family, Children, and Elder Supports
Modernize City Operations

o Operating budget

o Stormwater Management Programs

o City Systems Improvements

o Miscellaneous City programs

o Operations — Not Salary or Systems
Invest In Critical Island Infrastructure

o One Water

o Broadband

Once approved, each project will be assigned to an Implementing Department or Agency.
The Implementing Department or Agency shall assign a Program Manager, who will be
responsible for developing key performance indicators regarding the project, indicators based
on industry best practices. When applicable, these performance indicators should consider:

Accepted Practice and History of Use - The degree to which use of an indicator is
consistent with current and previous practices.

Applicability in Different Settings - The degree to which an indicator is relevant in diverse
settings.

Availability of Data - The degree to which data are accessible for use as part of the
study.

Burden of Data Collection — The degree to which data collection imposes burden on
participants.

Clarity of Focus and Meaning - The degree to which a single indicator is unambiguous
and reflects or represents the evaluation accurately.

Cultural Appropriateness and Relevance - The degree to which an indicator is culturally
appropriate in terms of content or focus and related data collection activities.

Data Quality - The degree to which information collected will be complete, reliable, and
valid.

Investment of Resources - The amount of resources (e.g., funds, personnel, time)
needed for data collection, analysis, and use of data or findings.

Non-directional Language - The indicator is written as neutral, not defined as positive or
negative in advance of data collection.

Opportunity to Detect Unexpected or Unintended Findings - The degree to which an
indicator (or set of indicators) allows for documentation of unexpected or unintended
aspects of the program.

Relevance to Evaluation Questions - The degree to which an indicator helps to address
predefined evaluation questions.

Strength of Evidence or Substantive Merit - The scope and quality of information
supporting the indicator as an appropriate descriptor or measure of the evaluation.

15


For example:

Services for At-Risk and Homeless

Outcome Goal: The 2020 Point in Time Count for unsheltered homeless on Oahu was 2,336. The City and County of
Honolulu will treat, shelter and house 20% of that population each year to 2025, 467 individuals per year. Our goal will
be achieved by investment in outreach services along with increased capacity for treatment, shelters, transitional housing

and housing.

Output Goal: Over the course of 4 years, provide $122,380,000 in funding to create new outreach services; to expand
and retrofit stabilization facilities; and to build additional transitional housing facilities that leverage our island heritage

and are equal and available to all.

40% of reported KPI’s projected to
meet or exceed annual target

Undetermined

Projected to be higher

Projected to meet or exceed

Output Goals/ Measures

Rating | KPI

FY 20
Baseline

FY 21
Actual

FY 22
Target

FY23
Actual

FY23
Target

@ House 20% of the annual
unsheltered PITC individuals

2,336

e Retention rate of households
placed in housing at 12 months

4%

Continue to support HONU

e initiative around the island of
Oahu, placing individuals into ES,

Treatment, PH, etc.

434

633 to
date

ie) Referrals to CORE program

Percentage of persons in ES, SH,
@ TH, PH-RRH and other PH

projects who exited to permanent
housing successfully

53%

Create or expand stabilization
facilities creating a transition for
e persons suffering from mental

illness or substance abuse, with at
least 1 location or expansion in
the District 5 area.

N/A

0 New
Bed
Space

50 New
Bed
Spaces

Create or expand private/public
partnership opportunities to build
® communities/villages to address
the needs of those experiencing
homelessness

*Data currently unavailable due to finalization of figures.


March 2020 to the highest rate in the nation just one month later in April 2020 at nearly 24%.
Small businesses experienced a similarly precarious decline, experiencing the third worst
decline of annual revenue in the nation among U.S. cities. However, by May of 2021 Honolulu’s
unemployment rate had fallen to 8.1%, compared to a national rate of 5.8%, illustrating the
inherent sensitivity of Honolulu’s job market and local businesses to external forces.

Over $600 million in total American Rescue Plan Act (ARPA) of 2021 funds will
ultimately be deployed by the City to address the impacts of the COVID pandemic. These
include emergency assistance programs already underway such as $180+ million in rental
assistance funds, $4.6 million in housing vouchers and supplements, and $75 million in nine
proposed programs in the arts, culture, and entertainment industry and small business support.
In addition to these emergency response funds being deployed into the community, the City will
receive a total of $386,252,141 in ARPA State and Local Fiscal Recovery Funds (FRF), which
were granted directly to local governments to recover their operations and economies in the
wake of COVID-19. While the City administration was vested with the authority to receive and
expend the first tranche of funding, a decision was made to engage with the Honolulu City
Council, through this and subsequent Recovery Plans, to ensure that planning and expenditure
of all monies is done collaboratively.

This initial ARPA Recovery Plan lays out a strategy to deploy these FRF for programs
and projects that not only address immediate needs in the community, but make investments in
the labor market, jobs, job training, employees and systems to ensure that Honolulu has a more
resilient economy in the future, addressing underlying economic stresses, so we are stronger in
the face of the next economic shock and downturn. Through 2020 community and government
vulnerabilities were laid bare, however, great lessons were gained and new systems were built
and strengthened--e.g., local food production and access, retraining, and new business
markets--which will be doubled-down on through FRF. This funding will also help enact the
community-built O‘ahu Resilience Strategy, finalized as a guiding policy document by the City
just months before the onset of the pandemic. It outlines 44 actions to help build a more
economically self-sufficient and safer island people as we continue to weather shocks from the
pandemic and other stresses such as climate change.

Similar to the 2008 economic recession, employment in the hospitality and other sectors
is unlikely to fully rebound despite surging tourism numbers. With FRF the City will not only
provide immediate aid, but also support the creation of workforce training opportunities to
accelerate re-employment and transition workers to living wage jobs in local industries that
survived and even thrived during the pandemic. City systems that did not fully take advantage of
technology buckled under the strain of pandemic pressures--and there is recognition that our
economic recovery will be hampered without modernizing city operations for efficiency with
technology-centered platforms that deliver City services with speed and transparency. Aged
systems and aging infrastructure on our island were already disproportionately impacting our
underserved communities and are at risk of failure from oncoming climate change impacts.
Investing FRF in household and business resilience actions and City green infrastructure and
services, such as stormwater management, energy efficiency, and local food production, in the
communities most at risk offer an opportunity to not only address equity issues, but also support
those most impacted by the pandemic with retraining and employment opportunities.

In short, investing FRF now in strategic areas will help reduce income inequality, support
economic opportunity and mobility, and build a more climate resilient island community for the
long-term. This approach is not only shared by the Administration and the Honolulu City
Council, but builds off of numerous community-driven efforts that emerged during the COVID


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

I. Executive Summary

The devastating impact of the COVID-19 pandemic to the people of Hawai'i, the United
States, and the world is both undeniable and ongoing. Jobs have been lost, businesses have
closed forever, savings have been drained, and dreams have been dashed. Countless more
have struggled with food shortages, mental and physical health challenges, social and political
conflict, and all other varieties of hardship. People have lost their lives--over 400 on O‘ahu as of
early August--carving a path of grief that runs deep in our families and communities.

The need for pandemic relief is obvious; as obvious as the need for relief after a
hurricane or fire. Thankfully, the people of the United States, through their governments, are
directing an unprecedented amount of resources to the cause of relief and recovery.
Fortunately, we already have deep community-resourced know-how guiding how we invest this
generational opportunity of funding to build a more resilient, just and prosperous O'ahu.
Knowing that we are still in uncertain and treacherous times, the City and County of Honolulu
(City) has developed a compassionate, adaptable, iterative and determined response based on
sound evidence and the desires of our island community. It must be acknowledged that these
resources need to be catalytic, laying the groundwork for doing things differently moving
forward. These are not forever or annual resources, but their usage can and will establish
capacities and support a different trajectory for our families, businesses, and government.

While a pandemic response can take countless forms with seemingly endless needs and
priorities, Honolulu is designing its effort around two painful but fundamental realities that
COVID-19 revealed in stark light--that long-standing structural inequalities in O‘ahu’s economy
were exacerbated by the pandemic and that Hawai‘i was economically and civically unprepared
for this pandemic. This plan strives at every opportunity to address inequities in society and
directly address them with relief, investment, leadership and empowerment. This includes
making sure everyone has the basics for living including food, shelter, healthcare, and critical
services. This will require strengthening needed programs, investing in community partners, and
establishing and restoring vital government services that were lost in the pandemic in ways that
harmed some members of society much more than others. Accordingly, we will not put our
economy and government back to the way it looked pre-pandemic. Instead we will look at every
Opportunity to invest in more resilient economic bases that create sufficient jobs, and inject
resources into the creation of a more modern, effective and efficient city workforce and
government.

The decline in economic well-being and soaring cost of housing during the pandemic
has resulted in Hawai‘i being ranked 49th in the nation’ due to the percentage of children
residing in households that spend more than 30% of their income on housing. A full 61% of
Hawai'i households with children reported losing employment income since the start of the
pandemic--in comparison the national average was 49%. The downturn hit individuals across
the board: 25% of residents reported being behind on bills as a result and 13% sought out food
from a food drive or food bank. Hawai‘i shot from the lowest unemployment rate in the nation in

1 Annie E. Casey Foundation, “2021 Kids Count Data Book,” http://www.aecf.org, The Annie E. Casey
Foundation, June 21, 2021, https://www.aecf.org/resources/2021-kids-count-data-book


V.

6. Partner with the University of Hawai‘i and other academic institutions to enhance the
City’s economic and policy development capacity

Recommendations have informed the intentions of this initial Recovery Plan reporting and/or
other concurrent community-government initiatives.

The dynamic and evolving nature of this pandemic requires this plan to be a living
document over the four-year expenditure cycle established by the US Treasury. While the
needs are great and diverse, they will evolve, as will the City’s response and investment of
funds over the course of the FRF expenditure period (through 2024). This initial Recovery Plan
Report cannot fully define all necessary and possible expenditures as community conditions
remain fluid and relief, or rescue, remains the most pressing community need. A recovery, or
rebuild better, mindset is a necessary next step and some initial expenditures will lay the
groundwork for further transformation, which our COVID impacts demand. The 2022 Recovery
Plan Performance Report will further define project and program expenditures to ensure
obligation of FRF consistent with community priorities and needs, the ARPA schedule, US
Treasury guidelines, and lessons learned from initial expenditures.

The City, in collaboration with the City Council, will continue to engage the public with
on-going public hearings, briefings, and meetings to discuss and provide updates to specific
projects and programs developed consistent with the allocations in this initial Recovery Plan.
The City will maintain an online programs and expenditure dashboard along with quarterly
expenditure reporting. Additionally, OER, and other City departments and agencies, including
the Departments of Community Services and Land Management, and the Offices of Climate
Change, Sustainability and Resiliency and Housing and Homelessness will continue ongoing
best practices through existing programs and networks to conduct both outreach and inreach,
bringing critical questions and community insights back to the Administration and Council
processes for Recovery Plan finalization and evaluation.

Labor Practices

The City utilizes strong labor practices in infrastructure projects, including wage and hour
requirements, local hiring requirements, and Community Workforce Agreements. These
practices ensure effective and efficient completion of infrastructure projects, while providing
employment for workers that will support the City’s economic recovery.

Wage and hour requirements

City construction contracts require contractors for public works projects to observe and
comply with the provisions of Hawaii state law, relating to wages and hours of employees on
public works projects. Contractors are required to pay all employees on any contract with the
City the minimum basic wage rate in conformance with applicable Federal and State laws.

Local hiring requirements
Pursuant to state law, contractors on city construction contracts are required to ensure

that Hawaii residents comprise not less than 80 percent of the workforce employed to perform
work on the project.

13


e Value within a Set of Indicators - The degree to which a single indicator adds meaning to
a set of indicators.

Program Managers must also compile the data for specific output and outcome goals and
measures for each project. These should be developed using logic models, depicting the
intended links between program investments and outcomes, specifically the relationships
among resources, activities, outputs, outcomes, and the impact of the program(s).

This information will be routed through GrantCare, our in-development enterprise grant
management system. This system will help ensure a balance between making timely, mission
focused decisions and mitigating waste, fraud, and abuse, all the while ensuring compliance
with US Treasury guidelines, transparency, and fiscal accountability.

This software will be used to help ensure compliance and performance for both internal and
external grant recipients, streamline the reporting process for display on both internal and public
dashboards, ensure transparency, and enhance managing ability to deploy funds.