Westminster City Council
SUBJECT
Title
American Rescue Plan Act of 2021 (ARPA) Update and Revised Project Opportunities.
End
publichearing
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From: Adolfo Ozaeta, Assistant City Manager
Requested by: Administration
Prepared by: Ryan Salz, Senior Management Analyst
____________________________________________________________
RECOMMENDED ACTION
Recommendation
Consider the revised project opportunities to be funded by the American Rescue Plan Act of 2021 (ARPA) and provide direction on allocations.
end
BACKGROUND
On March 11, 2021, President Joe Biden signed the American Rescue Plan Act of 2021 (ARPA) into law. ARPA funds were provided to local governments to help turn the tide on the pandemic, address its economic fallout, and lay the foundation for a strong and equitable recovery. The allocation to the City of Westminster was $24.7 million, and funds can only be used for specific eligible purposes as outlined by federal guidelines. The ARPA program rules require the City to obligate the funds by December 31, 2024, and expend them by December 31, 2026.
On October 26, 2022, the Mayor and City Council approved the “American Rescue Plan Act of 2021 (ARPA) Revised Funding Proposal.” Items included in the Funding Proposal were refined to reflect input received from the city council during a study session. Since the approval of the Funding Proposal, the City has expended $6,459,141 and obligated $1,847,324 of the total $24,720,019 distributed to the City. Based on current projections from each department of the approved expenditures, it is expected that an additional $11,767,666 will be obligated before the December 31, 2024 deadline.
Since the approval of the list in 2022, and as projects have moved along their processes or have completed, staff is now presenting an updated list of expenditures, obligations, and reallocation requests for each project in the approved Funding Proposal (Attachment 1). Some projects completed required less funding than originally anticipated while some are no longer feasible, and this update reflects these changes.
The most substantial change in an existing project, as shown in Attachment 1, is the increase of $1.03 million for “Park Improvements”; the original allocation request of $4.3 million for “Park Improvements” has been increased to $5.33 million. This request is attributable to rising material and labor costs for the pickleball courts and playground developments since the Funding Proposal was approved on October 26, 2022. In addition, the proposed playground projects will now incorporate more innovative and challenging playground concepts based on recent community feedback. This results in a remaining $3,615,888 that must be reallocated to other project opportunities to ensure the entire balance is obligated by the December 31, 2024 deadline.
In reevaluating priorities based on current operational needs and feedback from the community and City Council, this is an opportune time to discuss how the remaining $3.6 million should be allocated and in advance of the fiscal year budget adoption. The previously approved programs from the Funding Proposal that will be removed, decreased, or increased are shown in the list below:
|
Project |
Original Allocation |
Reallocation Amount |
|
Online Portal for Safety Training Status: Completed |
$150,000 |
$62,500 |
|
Essential Worker Pay Status: Completed |
$525,000 |
$31,000 |
|
CAD/RMS System Status: Project Eliminated |
$1,151,500 |
$1,151,500 |
|
Marketing & Branding Program for Little Saigon Status: Project Eliminated |
$100,000 |
$100,000 |
|
2 Full-Time Caseworkers for Homeless and Mental Health Outreach Status: Allocation Exceeded Actual Cost |
$800,000 |
$300,000 |
|
Affordable Housing Development Project Status: Project Eliminated |
$2,985,339 |
$2,985,339 |
|
Improvements to Council Chambers Status: Completed |
$20,000 |
$6,873 |
|
Grocery Assistance Program Status: Completed |
$350,000 |
$8,676 |
|
Park Improvements Status: Actual Costs Exceed Allocation |
$4,300,000 |
($1,030,000) |
|
Total |
$10,381,839 |
$3,615,888 |
Once the need to reallocate funding was identified, staff developed new project opportunities to promptly redirect the funding. The options were formulated by assessing the City’s most pressing needs that directly align with the eligibility criteria of the ARPA Program. Staff recommends that the City Council provide direction based on the list of eligible projects presented. The recommended options add up to $4,132,500, which is more than the total funding eligible for reallocation. Attachment 2 describes each of the options in further detail and is organized in order from highest to lowest funding requests. The list below displays the title and cost associated with each project opportunity:
1. Soccer Field Conversion at Sigler Park: $1,700,000
2. Axon Contract: $1,451,500
3. Introduction of Park Ranger Program: $800,000
4. Code Enforcement and Community Preservation Unit (CPU) Training and Equipment: $61,000
5. Flock Cameras: $60,000
6. EnerGov - Digital Plan Intake and Online Application Process Launch: $60,000
As part of the reallocation request, the Westminster Police Department (WPD) has indicated that some of their previously approved funding could be better utilized toward a different project. Staff recommends that the entire amount dedicated to the CAD/RMS System ($1,151,500) and a portion of the amount dedicated to Two Full-Time Caseworkers for Homeless and Mental Health Outreach ($300,000) be reallocated to the Axon contract. Axon is a public safety equipment and technology provider that supplies the WPD with body worn camera equipment, data storage technology. The updated contract will include tasers and dash cameras for all police vehicles.
Based on the City Council selection of the reallocation options presented, there will inevitably be remaining funding available to be allocated. The amount of the remaining balance will be dependent upon the combination of project opportunities that are selected. A Strategic Planning Workshop to update the Westminster Strategic Plan’s goals and objectives is scheduled for April 10, 2024. The Workshop will provide a timely opportunity to consider and discuss additional ideas for eligible ARPA projects.
The City Council may also opt to discuss additional allocation opportunities not provided on this list. However, projects funded by ARPA funds must meet the strict federal guidelines in order to be eligible for allocation.
The October 26, 2022 staff report and its associated attachments are provided for reference as Attachment 3.
FISCAL IMPACT
There will be no fiscal impact associated with approval of the reallocation requests presented.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
The City received an allocation of $24.7 million from the United States Treasury in accordance with ARPA. The City Council approved a Funding Proposal on October 26, 2022 that allocated the funding to specific projects. The December 31, 2024 deadline to obligate all funding is approaching and there is a need to reallocate a portion of the funds ($3,615,888) to meet this milestone. Staff has presented a collection of project opportunities for the City Council to consider for reallocation of the remaining funds.
ATTACHMENTS
1. ARPA Funding Proposal Summary and Reallocation Availability
2. ARPA Revised Project Opportunities
3. Staff Report and Attachments for Item 5.3 American Rescue Plan Act of 2021 (ARPA) Revised Funding Proposal
REVIEWED BY
Erin Backs, Finance Director
Christian Bettenhausen, City Attorney
Christine Cordon, City Manager