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HomeMy WebLinkAboutAgenda Report - July 20, 2022 C-20CITY OF 41 CALIFORNIA AGENDA ITEM CO20 COUNCIL COMMUNICATION AGENDA TITLE: Adopt Resolution Approving the Reallocation of the Final Allocation and Spending Plan for the City of Lodi's Use of Federal American Rescue Plan Act of 2021 Funding MEETING DATE: July 20, 2022 PREPARED BY: Deputy City Manager RECOMMENDED ACTION: Adopt resolution approving the reallocation of the final 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 Staff's 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. In February of 2022, City Council approved the final budget allocation and spending plan based on City Staff's interpretation of the final guidance and prior approved projects by Council. At this time, City Council reallocated all ARPA funding and recommended cancellation of the Utility Debt Relief program which had been superseded by multiple state level utility relief programs. Council directed staff to return with projects to utilize the ARAP allocations ($1,405,328.13) freed up by the cancelation of the Utility Debt Relief program. The Loel Senior Center has reached out to the City to see if there is available funding to help with a bathroom expansion/renovation project. The bathrooms at the facility are dilapidated and not senior friendly. The project would increase the number of bathrooms and make them accessible for seniors, including new handrails, slip free flooring, and more space. The Loel Senior Center currently has a design in place and will be overseeing the project. The Senior Center has previously received a CDBG allocation from the City to fund a portion of this project as well as a grant from San Joaquin County. The additional $1 million allocation from ARPA funds will allow for full project delivery. The City's Access Center project is not fully funded in large part due to continued construction cost increases. The remaining $405,328.13 will allow help to solve some of the funding gap as City staff seeks further resources to work towards final project delivery. APPROVED: Stephen Schwabauer, City Manager City Staff is recommending the reallocation of available budget from the Utility Debt Relief program to the Loel Senior Center to fund their bathroom expansion/renovation project ($1 million) and to the Access Center project ($405,328.13), The available funds under the Utility Debt Relief program is $1,405,328.13. FISCAL IMPACT: There is no negative fiscal impact from this presentation. There is no matching requirement to this funding opportunity. This recommendation ensures Council objectives are met within the framework of the Final Rule. FUNDING AVAILABLE: Funding for this project comes exclusively from ARPA. 10498600-72926 ($1,405,328.13) 10498800-72990 $ 1,000,000 10498800-77020 $405,328.13 Andrew Keys Deputy City Manager/Internal Services Director RESOLUTION NO. 2022-182 A RESOLUTION OF THE LODI CITY APPROVING THE REALLOCATION OF THE FINAL ALLOCATION AND SPENDING PLAN FOR THE CITY OF LODI'S USE OF FEDERAL AMERICAN RESCUE PLAN ACT OF 2021 FUNDING ------------------------------------------------------------------------ ------------------------------------------------------------------------ WHEREAS, the American Rescue Plan Act of 2021 (ARPA) was signed into law on March 11, 2021 and provides $65.1 billion to the approximately 19,000 units of state, local and tribal governments nationwide using a block grant formula; and WHEREAS, Lodi is receiving $15,764,793; and WHEREAS, in May 2021, City Council approved a spending plan for ARPA funding based on City staff's interpretation of the interim guidance from the Treasury Department; and WHEREAS, in January 2022, City Council approved the final budget allocation and spending plan based on City staff's interpretation of the final guidance and prior approved projects by Council. Council reallocated all ARPA funding and recommended cancellation of the Utility Debt Relief program, which had been superseded by multiple State -level relief programs. Council directed staff to return with projects to utilize the ARPA allocations ($1,405,328.13) in account 10498600.72926 freed up by the cancellation of the Utility Debt Relief Program; and WHEREAS, the Loel Senior Center has reached out to the City to see if there is available funding to help with a bathroom expansion/renovation project. The bathrooms at the facility are dilapidated and not senior friendly; and WHEREAS, the project would increase the number of bathrooms and make them accessible for seniors, including new handrails, slip free flooring, and more space. The Loel Senior Center has a design in place and will oversee the project; and WHEREAS, staff recommends the reallocation of available budget, $1,000,000, to account 10498800.72990 from the Utility Debt Relief Program to the Loel Senior Center to fund their bathroom expansion/renovation project; and WHEREAS, the City's Access Center project is not fully funded, largely due to rapidly rising construction costs; and WHEREAS, staff recommends the reallocation of available budget, $405,328.13, from the Utility Debt Relief Program to the Access Center construction project account 10498800.77020 (ARPA-22001. Contracts). NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve the reallocation of the final allocation and spending plan for the City of Lodi's use of Federal American Rescue Plan Act of 2021 with funding for the Loel Senior Center bathroom expansion/renovation project in the amount of $1,000,000 and the Access Center project in the amount of $405,328.13; and BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (Res. No. 2019-223), the City Attorney is hereby authorized to make minor revisions to the above -referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary. Dated: July 20, 2022 I hereby certify that Resolution No. 2022-182 was passed and adopted by the City Council of the City of Lodi in a regular meeting held July 20, 2022, by the following vote: AYES: COUNCIL MEMBERS — Khan, Kuehne, Nakanishi, and Mayor Chandler NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Hothi ABSTAIN: COUNCIL MEMBERS — None OLIVIA NASHED City Clerk 2022-182