HomeMy WebLinkAboutAgenda Report - March 2, 2022 H-02AGENDA ITEM H�2
nu CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE: Adopt Resolution Approving the Final Budget Allocation and Spending Plan for the
City of Lodi's Use of Federal American Rescue Plan Act of 2021 Funding
MEETING DATE: March 2, 2022
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: Adopt resolution approving the final budget allocation and spending
plan for the City of Lodi's use of federal American Rescue Plan Act
of 2021 funding.
BACKGROUND INFORMATION: The American Rescue Plan Act of 2021 (ARPA) was signed into law
on March 11, 2021. The Act provides $65.1 billion to the
approximately 19,000 units of state, local and triable governments
nationwide using a block grant formula. Lodi is receiving
$15,764,793.
In May of 2021, City Council approved a spending plan for ARPA funding based on City Staffs
interpretation of then interim guidance from the Treasury Department. In January 2022, the Treasury
Department issued their final rule on how the City may use the funds from this Act. From the original
Council approved spending plan, the following Community Projects are still eligible for direct APRA
funding after the Final Rule was released, for a total allocation of $8,810,000:
Navigation Center $ 5,500,000
Vaccine Incentive $ 250,000
Utility Debt Relief $ 1,500,000
Small Business Grants Plus Administration $ 500,000
Chamber of Commerce Farmer's Market Grant $ 60,000
Citywide Broadband Project $ 1,000,000
The Final Rule allows agencies to claim up to $10 million of Revenue Loss without calculation. This $10
million is similar to a standard deduction on personal incomes taxes in that no receipts or calculation of
actual loss is needed to document the loss. Funds become general purpose once claimed under this
provision. The City's initial method of calculating revenue loss was deemed ineligible under ARPA and
the City will be forced to move forward with the standard deduction claim method up to the amount
available of $6,954,793 after deducting the projects listed above from the City's total ARPA allocation.
Previously approved ARPA allocations now deemed ARPA ineligible include a Priority 1 Revenue Loss
and Priority 2 Prior COVID-19 expenditures deemed ineligible by FEMA.
ARPA Revenue Loss - Recommended Claim after Final Rule $ 6,954,793
Less: Priority 1 Revenue Loss $ 4,515,664
AP
(Feb 18, 2022 08:20 PST)
Stephen Schwabauer, City Manager
Transfer to General Fund
$
2,243,921
Transfer to Library
$
29,677
Transfer to PRCS
$
2,242,066
Remaining Unallocated ARPA Revenue Loss Available for General Purpose
Reallocation after Previously Approved Priority 1
$
2,439,129
Refund EU For 2020 Credits Granted to Residents - Deemed ARPA Ineligible**
$
1,235,000
Less: Priority 2 Prior COVID Expenditures Deemed Ineligible by FEMA
$
1,647,931
COVID Leave
$
$
$
1,365,000
282,931
791,198
Ineligible COVID Expenses *
Remainder Unallocated ARPA Revenue Loss Available for General Purpose
Reallocation after Previously Approved Priority 1 and 2
*City Staff had originally expected expenditures relating to COVID-19, in the amount of $860,617 were not going to be
reimbursed by FEMA. After working closely with FEMA to receive clarifying guidance and close out numerous projects, only
expenses of $282,931 are not going to be reimbursed by FEMA.
In addition to the $791,198 that is available for general purpose reallocation, there is an additional
$788,781 that is also available for reallocation left over from the General Fund Priority 1 transfers and the
Council approved sidewalk project. This is an allocation remaining from the Council's previous action in
May 2021.
With the approval of ARPA funding in May 2021, Council approved funding a vaccine incentive program
that was intended to incentivize full vaccination among residents to help reduce the spread of COVID-19
and severe disease within the community. The program provides a $25 bill credit to Lodi residents over
the age of 16 who receive a vaccination and provide evidence of a completed vaccination regiment after
the date of program adoption. Despite efforts to advertise the program, this incentive has only been
provided to 477 residents of Lodi at a total cost of $11,925. At this time, it appears unlikely that the
program will be capable of spending the full allotment. City Staff is recommending this program to be
cancelled and the remaining funds be reallocated to other projects that have been deemed ineligible by
the Final Rule, or other general purpose projects.
Remainder Unallocated ARPA Revenue Loss Available
Remainder for General Purpose Allocation
Vaccine Incentive Program*
$
$
$
791,198
788,781
238,225
Total Amounts for Reallocation
$
1,818,204
Homeless Cleanup Project - Deemed ARPA Ineligible**
$
162,000
Refund EU For 2020 Credits Granted to Residents - Deemed ARPA Ineligible**
$
1,235,000
General Purpose - Recommend for PRCS Capital Additional Transfer**
$
182,979
ARPA Restricted - Recommend for Additional Navigation Center Funding*
$
238,225
Total Amounts Reallocated
$
1,818,204
Vaccine Incentive Program allocations are still ABPA restricted.
** These projects are funded by revenue loss claims through ARPA that become General Purpose revenues of the City.
City Staff is recommending the reallocation of $1,818,204 resulting from the unallocated revenue loss,
the remainder for general purpose allocation and the cancellation of the vaccine incentive. The
reallocation of the general purpose funds will be allocated to projects that have a need within the City.
• Citywide Homeless Cleanup — one time citywide homeless encampment and
debris cleanup. Will not provide sheltering assistance. This project and funding
amount was previously approved for ARPA funding by City Council in May 2021.
Refund EU for COVID relief credit — Reimburse Electric Utility for the 2020 COVID
relief credit that was applied to utility bills. This project and funding amount was
previously approved for ARPA funding by City Council in May 2021.
PRCS Capital transfer — one time transfer to the PRCS capital account to fund
Parks projects
Navigation Center — additional funding to the Navigation Center. This project was
previously approved for ARPA funding by City Council. The additional amount can
assist with cost overruns, if any and/or initial operating costs of the shelter.
Finally, Staff is seeking direction on the continuance of the Utility Debt Relief program. Lodi's program
provides up to 75% relief of a residential accounts delinquency from the start of the pandemic through
May of 2021. As it stands, the program has been replaced by state programs that provided direct relief of
higher portions of an account delinquency without qualification or application to accountholders for the
same time period that Lodi's local program covered. Prior to approval of the state programs, only
$93,971.87 of the $1,500,000 allocation was utilized to provide relief to local residents. If Council would
like to continue offering debt relief for the period of time from September 2021 through the ARPA
spending period, Staff will bring back a program that can utilize the remaining allocation. If not, Staff will
bring back recommendation to reprogram this allocation for other ARPA purposes.
FISCAL IMPACT: There is no negative fiscal impact from this presentation. There is no
matching requirement to this funding opportunity. With the exception of the
recommendation of funding PRCS capital projects and an additional
transfer to the Navigation Center project, all projects and funding amounts
in this report are the same as was approved by City Council in May 2021.
The Final Rule requires the City to fund certain projects through revenue
loss claims as they were deemed ineligible after further review of the
project with the new information provided by the Final Rule. This
recommendation ensures Council objectives are met within the framework
of the Final Rule.
FUNDING AVAILABLE: Funding for these projects comes exclusively from ARPA and ARPA
Revenue Loss claims.
Requested Appropriations: Please see Exhibit A for direct allocations.
&�aolr —
Andrew Keys (Feb 15, 20 16:59 PST)
Andrew Keys, Deputy City Manager
Exhibit A
ARPA Adjustments
FY 2021-22
Account Number
Account Description
Adjustment
Recognize ARPA funds
Revenue Adjustment
10400000-55023
ARPA Funding
$
15,764,793
Total Revenue Adjustments
$
15,764,793
Transfer from ARPA for Revenue loss & project funding's
Revenue Adjustment
10095000-50001
Operating Transfer In
$
3,318,050
12000000-50001
Operating Transfer In
29,677
20000000-50001
Operating Transfer In
2,242,066
Total Revenue Adjustments
$
5,589,793
Expense Adjustment
10498500-72990
Special Payments
$
-
10498600-72926
Utility Relief Payments
10498700-72990
Special Payments
(238,075)
10498800-72450
Misc. Professional Services
10498800-72990
Special Payments
-
10498800-77020
Capital Projects
238,225
10498900-76220
Operating Transfer Out
5,589,643
Total Expense Adjustments
$
5,589,793
Transfers for reserve replacement
Revenue Adjustment
30000000-50001
Operating Transfer In
$
100,000
43100000-50001
Operating Transfer In
435,000
64200000-50001
Operating Transfer In
65,000
64300000-50001
Operating Transfer In
578,000
64400000-50001
Operating Transfer In
245,140
64102000-50001
Operating Transfer In
32,000
Total Revenue Adjustments
$
1,455,140
Expense Adjustment
10095000-76220
Operating Transfer Out
$
1,455,140
Total Expense Adjustments
$
1,455,140
To fund additional projects
Revenue Adjustment
30000000-50001
Operating Transfer In
$
162,000
50400000-50001
Operating Transfer In
1,235,000
20000000-50001
Operating Transfer In
182,979
Total Revenue Adjustments
$
1,579,979
Expense Adjustment
10095000-76220
Operating Transfer Out
$
1,579,979
Total Expense Adjustments
$
1,579,979
CIP appropriation
30099000-77020
Project # PWST-0026
$
100,000
10498800-77020
Project # ARPA-22001
238,225
Page 1 of 1
Capital Improvement Program - Maintenance
FY 2021-2022
Maintenance Project Title:
2020 Sidewalk Repair
Munis Project Code:
PWST-0026
#35
Section I:Description
District Nos:
Citywide Project Length
Priority
Normal
Annual contract for sidewalk and miscellaneous concrete repairs in the City.
Justification/factor driving project
Annual sidewalk maintenance work.
Additional Information
Additional item going to Council on 2/16 to increase 331 LTF-Pedestrian/Bike funds by $45,207
Section II
Estimated Project Costs
Expenditure
Contracts
Internal Staff
Prior Years
$ 103,825
$ -
$
$
FY 20121
Estimate
92,000
8,000
$
$
FY 21122
Budget
192,000
8,000
FY 22/23
$ 92,000
$ 8,000
FY 23124 FY 24125
$ 92,000 $ 92,000
$ 8,000 $ 8,000
FY 25126
Future Yrs
Total
$ 92,000
N/A
$
755,825
$ 8,000
N/A
$
48,000
Total Capital Costs
$ 103,825
$
100,000
$
200,000
$ 100,000
$ 100,000 $ 100,000
$
100,000
NIA
1 $
803,825
Section III
Funding Sources/Methods of Financing
Funding Source(s)
300 - Street Fund
303 - Measure K Fund
331 - LTF-Pedestrian/Bike
Total Project Financing
Prior Years
$ 1,632
$ 72,193
$ 30,000
FY 20121
Estimate
$
FY 21122
Budget
100,000
FY 22123
FY 23124
FY 24125
FY 25126
Future Yrs
Total
N/A
$
101,632
$ 70,000
$ 70,000
$ 70,000
$ 70,000
$ 70,000
$ 70,000
N/A
$
492,193
$ 30,000
$ 30,000
$ 30,000
$ 30,000
$ 30,000
$ 100,000
$ 30,000
$ 100,000
N/A
NIA
$
$
210,000
803,825
$ 103,825
$ 100,000
j $ 200,000
j $ 100,000
$ 100,000
Section IV
im
I Operating Budget Impact WEENK
Operating Cost or (savings)
Personnel
Other Operating Costs
Total Operating Impact
Prior Years
FY 20121
Estimate
FY 21122
Budget
FY 22/23
FY 23124 FY 24125
FY 25126
Future Yrs
Total
$ -
$
-
$ -
$
-
$ -
$ - $ - $ - $ - $ -
$ -
$ -
$
-
Capital Improvement Plan
FY 2021-2022
Project Title: Access Center I Munis Project Code: APRA-22001 172
Section I: Description District Nos: Citywide Project Length Priority High
The City of Lodi Community Development Department recognizes that effectively responding to the COVID-19 Pandemic requires a combination of strategies at the local level including
housing our unsheltered population. The Navigation Center concept now renamed the Lodi Access Center would allow for the City to meet our current point in time count (139). This project
would be implemented in phases after the community engagement process was initiated.
Phase 1: Acquisition (due diligence, appraisal, environmental, etc.), Emergency Setup with commercial grade tent structures for sleeping, food distribution, and congregate areas. Mobile
hygiene facilities such as showers, restrooms, and laundry would also be provided. Tent structures would be usable for any future emergency or disaster relief needs.
Phase 2 (Interior): Complete administrative offices, interview rooms, medical/veterinary rooms, congregate sleeping area, storage, dinning facility, kitchen, showers, restrooms, and laundry.
Phase 3 (Exterior): Tiny Cabins (Non -Congregate), walkways, green space, dog run, parking lot, outdoor restroom, and outdoor charging station.
Justification/factor driving project
On April 7, 2021 Council feedback was to support $5.5 million towards the development of a Navigation Center and a resolution was adopted at the April 21, 2021 Council Meeting. On April
7, 2021 City Council accepted the award of Permanent Local Housing Allocation (PLHA) funding. On July 13, 2021 $2.8 million was approved by the County Board of Supervisors from the
San Joaquin County capital -outlay fund in support of the Access Center.
Additional Information
The American Rescue Plan Act of 2021 was signed into law on March 11, 2021. The Act provides $65.1 billion to the approximately 19,000 units of state, local and tribal governments
nationwide using a block grant formula with Lodi receiving approx. $15.7 million.
Section II: Estimated Project Cos
Expenditure Prior Years FY 20121 FY 21/22 FY 22/23 FY 23124 FY 24/25
FY 25/26 Future Yrs Total
Estimate Budget
Miscellaneous $ - $ 2,100,000
$ 2,100,000
Contracts $ $ 6,438,225
$ 6,438,225
Total Capital Costs $ - $ $ 8,538,225 $ - $ - $ -
$ - $ $ 8,538,225
Section III: Funding Sources/Metl
Funding Source(s) Prior Years FY 20121 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 Future Yrs Total
Estimate Budget
104 - American Rescue Plan $ - $ 5,738,225 $ 5,738,225
355 - Community Grants $ - $ 2,800,000 $ 2,800,000
Total Project Financing $ - $ - $ 8,538,225 $ $ - $ - $ - $ $ 8,538,225
Section IV Operating Budget Impact
Operating Cost or (savings) Prior Years
FY 20/21 FY 21/22
FY 22/23 FY 23/24 FY 24/25
FY 25/26 Future Yrs Total
Estimate Budget
Personnel $
$
Other Operating Costs $
$ -
$ - $ -
Total Operating Impact $ -
$ - $ - $ -
$ - $ $
RESOLUTION NO. 2022-63
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE FINAL
BUDGET ALLOCATION AND SPENDING PLAN FOR THE CITY OF LODI'S
USE OF FEDERAL AMERICAN RESCUE PLAN ACT OF 2021 FUNDING
WHEREAS, COVID-19 has greatly impacted the economies and personal lives of
people across the world, including in Lodi where the City Council approved a local emergency
due to the COVID-19 pandemic on March 16, 2020; and
WHEREAS, on March 11, 2021, the President signed the American Rescue Plan Act of
2021 (ARPA) that in part authorized $65 billion in block grants to all states, counties, local
governments, tribes, and territories in the United States, with an award amount of $15,764,793
allocated to Lodi; and
WHEREAS, the City Council has appropriated partial allocation of ARPA funding
allocated to the City of Lodi, currently at $8,810,000 to community priority projects; and
WHEREAS, the City Council desires to set Revenue Replacement (calculated as actual
revenue received in a Fiscal Year as compared to the Fiscal Year 2018/19) for the General
Fund, Parks, Recreation and Cultural Services and the Library as the Priority 1 use for ARPA
funding in the estimated amounts listed in Exhibit A to this resolution; and
WHEREAS, after ARPA funding is used to replace revenue, it is no longer subject to
ARPA restrictions but is instead subject to local restrictions tied to the revenue source it was
intended to replace; and
WHEREAS, Exhibit A outlines the uses for the estimated $2,243,921 of General Fund
revenue replacement to be authorized by this resolution and appropriates the full amount of
General Fund revenue replacement, currently estimated to be $2,243,921 as outlined in
Exhibit A; and
WHEREAS, City staff recommend cancelling the vaccine incentive program and
reallocating the budget to other Community Priorities; and
WHEREAS, after funding Priorities 1 and 2, there is $1,818,204 available for
programming to various Community Priorities.
NOW, THEREFORE, BE IT RESOLVED that Lodi City Council does hereby approve the
allocation plan for the use of federal American Rescue Plan Act of 2021 block grant funding,
and appropriating funds from American Rescue Plan Act of 2021, as outlined collectively in
Exhibit A.
Date: March 2, 2022
I hereby certify that Resolution No. 2022-63 was passed and adopted by the Lodi City
Council in a regular meeting held March 2, 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN
COUNCIL MEMBERS — Hothi, Khan, Kuehne, Nakanishi, and
Mayor Chandler
COUNCIL MEMBERS — None
COUNCIL MEMBERS — None
COUNCIL MEMBERS — None
2022-63
PAMELA M. FARRIS
Assistant City Clerk
Exhibit A
ARPA Adjustments
FY 2021-22
Account Number
Account Description
Adjustment
Recognize ARPA funds
Revenue Adjustment
10400000-55023
ARPA Funding
$
15,764,793
Total Revenue Adjustments
$
15,764,793
Transfer from ARPA for Revenue loss & project funding's
Revenue Adjustment
10095000-50001
Operating Transfer In
$
3,318,050
12000000-50001
Operating Transfer In
29,677
20000000-50001
Operating Transfer In
2,242,066
Total Revenue Adjustments
$
5,589,793
Expense Adjustment
10498500-72990
Special Payments
$
-
10498600-72926
Utility Relief Payments
10498700-72990
Special Payments
(238,075)
10498800-72450
Misc. Professional Services
10498800-72990
Special Payments
-
10498800-77020
Capital Projects
238,225
10498900-76220
Operating Transfer Out
5,589,643
Total Expense Adjustments
$
5,589,793
Transfers for reserve replacement
Revenue Adjustment
30000000-50001
Operating Transfer In
$
100,000
43100000-50001
Operating Transfer In
435,000
64200000-50001
Operating Transfer In
65,000
64300000-50001
Operating Transfer In
578,000
64400000-50001
Operating Transfer In
245,140
64102000-50001
Operating Transfer In
32,000
Total Revenue Adjustments
$
1,455,140
Expense Adjustment
10095000-76220
Operating Transfer Out
$
1,455,140
Total Expense Adjustments
$
1,455,140
To fund additional projects
Revenue Adjustment
30000000-50001
Operating Transfer In
$
162,000
50400000-50001
Operating Transfer In
1,235,000
20000000-50001
Operating Transfer In
182,979
Total Revenue Adjustments
$
1,579,979
Expense Adjustment
10095000-76220
Operating Transfer Out
$
1,579,979
Total Expense Adjustments
$
1,579,979
CIP appropriation
30099000-77020
Project # PWST-0026
$
100,000
10498800-77020
Project # ARPA-22001
238,225
Page 1 of 1
4merica Rescue Plan Act of 2D
OF
;io
• On March 11, 2021 the American Rescue Plan
Act of 2021 was passed. The Act provides
$65.1 billion to approximately 19,000 units of
state, local and triable governments
nationwide.
• Lodi is receiving $15,764,793 of this
allocation.
• In May of 2021, Council approved spending on
the following projects, in accordance with
guidance issued at that time, which are still
allowed under the final rule.
TOTAL ARPA FUNDS ALLOCATED TO LODI
$15,764,793
Navigation Center
$
5,500,000
Vaccine Incentive
$
250,000
Utility Debt Relief
$
1,500,000
Small Business Grants Plus Administration
$
500,000
Chamber of Commerce Farmer's Market Grant
$
60,000
Citywide Broadband Project
$
1,000,000
Remainder after Current Eligible Allocations
$6,954,793
• In January 2022, the Treasury Department
issued their final rule on how the City may use
the funds from this Act.
• The Final Rule allows agencies to claim up to
$10 million of Revenue loss without a
calculation of actual loss needed. This allows
the funds to become usable for general
purpose under this provision.
• The City will be claiming $6,954,793 in
revenue loss.
—This allows funding to be used for City Council's
original intended uses now ineligible.
ARPA Revenue Loss — Recommended Claim after Final Rule
$
6,954,793
Less: Priority 1 Revenue Loss
$
4,515,664
Transfer to General Fund
$
2,243,921
Transfer to Library
$
29,677
Transfer to PRCS
$
2,242,066
Remaining Unallocated ARPA Revenue Loss Available for General Purpose
Reallocation after Previously Approved Priority 1
$
2,439,129
Less: Priority 2 Prior COVID Expenditures Deemed Ineligible by FEMA
$
1,647,931
COVID Leave
$
1,365,000
Ineligible COVID Expenses *
$
282,931
Remainder Unallocated ARPA Revenue Loss Available for General Purpose
Reallocation after Previously Approved Priority 1 and 2
$
791,198
• The Vaccine Incentive provided a $25 bill credit to
Lodi residents over the age of 16 who received a
vaccination and provided evidence of the
vaccination.
• Despite efforts to promote the program, the
incentive has only been provided to 477 residents
of Lodi.
• City Staff is recommending this program be
cancelled and the remaining funds be reallocated
to other projects.
• City Staff is recommending the reallocation of
$1,818,204 resulting from the unallocated
revenue loss, remainder for general purpose
allocation and the cancellation of the vaccine
incentive.
Remainder Unallocated ARPA Revenue Loss Available
$
791,198
Remainder for General Purpose Allocation
$
788,781
Vaccine Incentive Program*
$
238,225
Total Amounts for Reallocation
$
1,818,204
Homeless Cleanup Project - Deemed ARPA Ineligible**
$
162,000
Refund EU For 2020 Credits Granted to Residents - Deemed ARPA Ineligible**
$
1,235,000
General Purpose - Recommend for PRCS Capital Additional Transfer**
$
182,979
ARPA Restricted - Recommend for Additional Navigation Center Funding*
$
238,225
Total Amounts Reallocated
$
1,818,204
* Vaccine Incentive Program allocations are still ARPA restricted.
** These projects are funded by revenue loss claims through ARPA that become
General Purpose revenues of the City.
• Lodi's program provides up to 75% relief of a
residential account delinquency from the start
of the pandemic through May 2021.
• Only $93,972 of the $1,500,000 was utilized to
provide relief to local residents.
• Lodi's program for utility relief has been replaced
by the State's program. The program provided
direct relief of higher portions of an account
delinquency without qualification or applications
to accountholders during the same time period.
• If Council desires to continue offering pandemic
debt relief, Staff will bring back a program that
fits within ARPA and can utilize the remaining
allocation.
— If not, staff will bring back a recommendation on the
reallocation for other ARPA purposes.
• Staff is seeking direction on the utility debt
relief program.
• Appropriations for the final allocation of the
approved projects.
—This does not change the final use of funds, it
simply aligns the projects and the categories with
Treasury's now issued Final Rule guidance for use
of ARPA funds.