Title
Adopt a Resolution to Appropriate Reallocations of Projects Formerly Funded by ARPA
Staffreport
COUNCIL PRIORITY
* Infrastructure
* COVID Recovery (ARPA Spending Plan)
* Fiscal Sustainability and Transparency
SUMMARY
In December 2024, American Rescue Plan Act (ARPA) funding was reallocated to similar but different projects to ensure the City met the December 31, 2024 Treasury obligation deadline. City staff reviewed the projects and funding sources unallocated with that action and propose new funding sources based on the reallocations.
RECOMMENDATIONS
Staff recommends that the City Council adopt a resolution to appropriate reallocations of projects formerly funded by the American Rescue Plan Act (ARPA).
BACKGROUND
On March 11, 2021, President Biden signed into law the American Rescue Plan Act (ARPA). This $1.9 trillion COVID-19 stimulus package provided 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 provided $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 received in full.
ARPA Funds must have been spent or obligated by December 31, 2024. If obligated, generally defined by the US Treasury as under contract, by December 31, 2024, agencies have until December 31, 2026, to incur the costs. Funds that were not obligated by December 31, 2024 and subsequently spent by December 31, 2026 need to be returned to the US Treasury.
To ensure the City did not need to return funds, Council approved a reallocation of several ARPA funded projects at the December 9, 2024 meeting. With that action, funding for two Public Works projects (Lake Chabot Road Stabilization and the Digital Divide project) were removed with intent to return to Council after completing the reallocations and ensuring proper allocati...
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