Westminster City Council
SUBJECT
Title
Consideration of American Rescue Plan Act of 2021 (ARPA) Memorandum of Understanding Agreements (MOUs) for Approved Expenditures.
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From: Christine Cordon, City Manager
Requested by: Administration
Prepared by: Shaunna Hunter, MPA, Senior Management Analyst
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RECOMMENDED ACTION
Recommendation
Consider authorizing the Mayor, on behalf of the City of Westminster, to enter into Memorandum of Understanding (MOU) Agreements for authorized ARPA Funding Requests with the following city departments:
A. Two Million Six Hundred Seventy Thousand Dollar ($2,670,000) MOU with General Government Services to implement and administer ARPA funds, to administer Small Business Technology grants, to implement critical technology upgrades, and fund HVAC upgrades to data center; and
B. Two Hundred Fifty Thousand Dollar ($250,000) MOU with Community Services Department to provide food resources to lower income households in Westminster which have an identified need for greater food resiliency; and
C. Nine Hundred Twenty-Five Thousand Dollar ($925,000) MOU with Westminster Police Department to hire an additional police dispatcher to address the increased calls of service volume; and to develop and implement a Park Ranger program which would provide additional service and outreach at city parks both on foot and in vehicle patrols.
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BACKGROUND
On March 11, 2021, President Joe Biden signed the American Rescue Plan Act of 2021 (ARPA) into law which provided $130.2 billion to be divided among cities and counties based on population. From this source, the City of Westminster received $23.7 million to address the economic impact of the COVID-19 Pandemic. ARPA program rules require the city to obligate funds by December 31, 2024, and expend the funds by December 31, 2026. The attached MOUs will fulfill the city’s requirement to obligate the funds; however, the funds will still need to be expended by the December 31, 2026 deadline.
On September 28, 2022, the Mayor and City Council approved item 5.02 “American Rescue Plan Act of 2021 (ARPA) Funding Proposal” (Attachment 4). City Council reviewed a list of eligible programs and provided input to staff for revisions of prior approved funding proposals. The Funding Proposal represented a well-balanced approach to assist in the recovery of Westminster from the economic impacts of COVID-19.
On October 26, 2022, the Mayor and City Council approved item 5.03 “American Rescue Plan Act of 2021 (ARPA) Revised Funding Proposal (Attachment 5). Staff presented a revised funding proposal of eligible programs and services based on council recommendations from the September 28, 2022 council meeting.
On March 27, 2024, the Mayor and City Council approved item 5.04 “American Rescue Plan Act of 2021 (ARPA) Update and Revised Project Opportunities” (Attachment 6). Council approved the reallocation of $3,615,888 ARPA funds to eligible projects. The Revised Project Opportunities added the Park Ranger Program, Axion Public Safety Equipment provider, and Flock Camera purchase among other items.
At this time, staff is presenting for council consideration MOUs with General Government Services, Community Services, and the Westminster Police Department. The attached MOUs are recommended by the US Treasury to obligate the ARPA funds by the December 31, 2024 program deadline.
The Treasury considers that an MOU, constitutes a “transaction requiring payment” similar to a contract or subaward and therefore an obligation for purposes of the SLFRF rule, if the agreement satisfies one of the following conditions:
1. The agreement imposes conditions on the use of funds by the agency, department, or part of government receiving funds to carry out the program;
2. The agreement governs the provision of funds from one agency, department, or part of government to another to carry out an eligible use of SLFRF funds; or
3. The agreement governs the procurement of goods or services by one agency, department, or part of government from another; and
The MOU also satisfies each of the following conditions:
1. The agreement sets forth specific requirements, such as a scope of work and project deliverables;
2. The agreement is signed by the parties to the agreement, or otherwise evidences that each party has assented to the agreement; and
3. The agreement does not disclaim any binding effect or state that it does not create rights or obligations.
The MOUs attached to the staff report fulfill these requirements by the treasury. All projects contained in the agreements have been previously approved by the city council and are in various phases of implementation at this time. The ARPA funds must be fully expended by December 31, 2026, and entering into the MOUs obligates the funds to the approved uses as outlined below.
ARPA MOUs
Ø General Government Services: Administered by the City Manager through the departments of Finance and HR, and the divisions of IT and Economic Development within City Manager’s Office (Attachment 1).
A. ARPA Fund Management: Administer ARPA funds through contracts to ensure compliance with legal and regulatory requirements. Costs may include salaries, benefits, and contractual expenditures for effective oversight.
B. Business Technology Grants: Develop a mini-grant program for Westminster businesses to enhance digital capabilities, helping them recover from the COVID-19 pandemic by upgrading technology and improving online operations.
C. Technology Infrastructure Upgrades: Administer contracts for upgrading technology systems, including hardware, software, and networking to improve performance, scalability, and resource management, while ensuring compliance with technical standards.
D. HVAC Infrastructure Upgrades: Manage contracts for upgrading HVAC systems to enhance cooling performance and stability, supporting the functionality of the city’s data center and ensuring compliance with operational standards.
Ø Community Services Department: Administered by Community Services Department Director (Attachment 2)
Food Resiliency Programs to lower income seniors and households which will augment existing resources and programs including, but not limited to Senior Meals and Food Trolley.
Ø Westminster Police Department: Administered by the Chief of Police (Attachment 3)
A. Police Dispatcher: Hire additional police dispatcher to assist with the increased volume of calls for service during the COVID-19 Pandemic.
B. Park Ranger Program: Develop and implement a Park Ranger program which would provide additional service and outreach at city parks both on foot patrols and in vehicle patrols.
FISCAL IMPACT
No additional budget appropriation is required for the approval of the subrecipient agreements. Funds are budgeted in American Rescue Plan Act program 21500.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
The City received $24.7 million from the United States Treasury in accordance with ARPA guidelines and approved Funding Proposals by departments for ARPA funds. The ARPA funds will need to be obligated by December 31, 2024, and expended by December 31, 2026; the MOUs in this report obligate the funds to previously approved Funding Proposals. Minor non-substantive corrections may be made after approval if deemed necessary to remain in compliance with Treasury standards. The ARPA funds obligated by these MOUs are as follows: General Government Services has been allocated $2.67 million to administer ARPA funds along with Small Business Grants, and Critical IT infrastructure; Community Services Food Resiliency Programs have been allocated $250,000, and Westminster Police Department has been allocated $925,000 for a Dispatcher and Park Ranger program development.
ATTACHMENTS
1. Memorandum of Understanding with General Government Services
2. Memorandum of Understanding with Community Services Department
3. Memorandum of Understanding with Westminster Police Department
4. September 28, 2022, Staff Report Item 5.02, American Rescue Plan Act (ARPA) Funding Proposal
5. October 26,2022. Staff Report Item 5.03, American Rescue Plan Act (ARPA) Revised Funding Proposal
6. March 27, 2024, Staff Report Item 5.04, American Rescue Plan Act (ARPA) Update and Revised Project Opportunities.
REVIEWED BY
Erin Backs, Finance Director
Christian Bettenhausen, City Attorney
Christine Cordon, City Manager