Title
Adopt a Resolution to Reallocate $1,078,857 in the American Rescue Plan Act (ARPA) Budget for Technology Infrastructure, a Recreational Vehicle (RV) Outreach and Housing Navigation Pilot Program, and the Alternative Response Unit, and Authorization for the City Manager to Approve Carryovers/Unspent ARPA Funds to Future Fiscal Years’ Budgets
Staffreport
COUNCIL PRIORITY
• Public Safety
• Housing and Homelessness
• Infrastructure
• COVID Recovery
• Fiscal Sustainability and Transparency
SUMMARY
The City received $18.6 million in funding from American Rescue Plan Act (ARPA), which was appropriated by City Council for various projects. Routine review of ARPA funded projects necessitates reallocation of funds that have been unspent.
RECOMMENDATION
Staff recommends that City Council approve the reallocation of $1,078,857 in the American Rescue Plan Act (ARPA) Budget for technology infrastructure, a recreational vehicle (RV) outreach and housing navigation pilot program, and the alternative response unit, and authorization for the City Manager to approve carryovers/unspent ARPA funds to future fiscal years’ budgets if needed.
Some projects and programs are expected to be implemented over multiple years. Authorizing the City Manager to carry over unspent ARPA funds to future fiscal years will ensure timely and successful implementation of projects and programs.
BACKGROUND
On March 11, 2021, President Biden signed into law the American Rescue Plan Act (ARPA). This $1.9 trillion COVID-19 stimulus package provides significant resources to state, local, territorial, and tribal governments to support urgent COVID-19 response efforts. Within ARPA, the Coronavirus State and Local Fiscal Recovery Fund provides $130.2 billion for local governments split evenly between municipalities and counties.
The funding allocation to the City of San Leandro is $18.6 million, which the City has received in full. Funds can be used for the expenditure categories described below.
Eligible Uses
1) COVID-19 Response or Negative Economic Impact: To respond to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19) or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality.
2) Premium Pay for Essential Workers: To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers of the state, territory, or tribal/local government that are performing such essential work, or by providing grants to eligible employers that have eligible workers who perform essential work.
3) Revenue Recovery: For the provision of government services to the extent of the reduction in revenue of such state, territory, or tribal/local government due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year of the state, territory, or tribal government prior to the emergency.
4) Infrastructure Investments: To make necessary investments in water, sewer, or broadband infrastructure.
ARPA Funds must be spent by December 31, 2024. If obligated by December 31, 2024, agencies have until December 31, 2026, to incur the costs.
Since Fiscal Year 2021-2022, the City Council has allocated ARPA funds to invest in important programs such as streets and roads, parks and recreation facilities, human services, library services, and infrastructure. As the City continues to implement the various projects and programs, adjustments are periodically needed to conform to program needs.
Reallocation
Based on recent review of current ARPA allocations, staff recommends reallocation of $1,778,857 currently allocated for various projects that have been or will be completed underbudget.
RV Outreach and Housing Navigation
While continuing to explore implementing a congregate Safe Parking program, the proposed allocation will provide targeted RV outreach and a housing navigation program. Staff will work with nonprofit partners to identify 10 RVs to target outreach and housing navigation services to with a goal of permanently housing those residing in their RVs. The total needed for this program is $450,000, of which $153,857 will be funded by ARPA Funds. Staff has identified available General Funds and seek an appropriation to fully fund this program.
Technology Infrastructure
The proposed $200,000 reappropriation will supplement an existing $700,000 ARPA Fund appropriation to upgrade the City’s aging technology infrastructure to support citywide programs and projects. The City’s switches, routers, and firewalls serve as essential technology infrastructure, connecting employee computers to data and business applications in City data centers and on the internet. To ensure the effective and efficient running of the City's operations, it is critical that aging network equipment is regularly and promptly replaced. Existing hardware and supporting software has reached its end of life will be replaced, which will allow employees throughout the City to continue accessing programs and data while sharing resources and documents to operate and administer programs and services.
Alternative Response Unit
Pursuant to Council direction, staff have been exploring options to implement an Alternative Response Unit for mental health crises. The goal is to provide effective and compassionate crisis intervention to beneficiaries, families, and the community who exhibit mental health symptoms and may be at risk. The proposed $725,000 allocation would supplement an existing General Fund appropriation of $625,000 to provide a total funding amount of $1,350,000 for these services.
Committee Review and Actions
On February 28, 2024, the City Council Finance Committee reviewed this item and unanimously recommended the item be moved to the City Council for approval.
Financial Impacts
There are no new fiscal impacts. The ARPA Budget totals $18.6 million and remains unchanged with the recommended reallocation of $1,078,857.
ATTACHMENTS
Attachment A: Resolution to Reallocate $1,078,857 in the American Rescue Plan Act (ARPA) Budget
Attachment B: ARPA Expenditure Budget Adjustment Detail
PREPARED BY
T. Michael Yuen, Finance Director