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TO: Honorable Mayor and Members of the City Council
FROM: Jeffrey L. Stewart, City Manager
SUBJECT: Consideration and possible action to adopt Resolution No. 22-35 – A Resolution authorizing budget amendments for the American Rescue Plan Act funding in the amount of $4,296,913 for fiscal year 2022-23 and the City Manager to implement the approved programs.
DATE: July 11, 2022
EXECUTIVE SUMMARY
Under the American Rescue Plan Act (“ARPA”), the City of Bellflower received a total of $21,457,498 in Coronavirus State and Local Recovery Funds (“SLFRF”). On December 9, 2021, the City Council authorized programming of $17,160,585 in ARPA SLFRF funds or with budget savings realized through ARPA SLFRF funding. Staff recommends budget amendments for the remaining balance of $4,296,913 in fiscal year 2022-23 as detailed in this staff report. ARPA SLFRF funds must be obligated by December 31, 2024, and expended by December 31, 2026.
RECOMMENDATION TO CITY COUNCIL
1) Adopt Resolution No. 22-35 to budget American Rescue Plan Act funding in the amount of $4,296,913; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
If approved, $4,296,913 will be budgeted for the following purposes:
Premium Pay related to COVID-19 $ 321,000
Transfer of Code Enforcement to Public Safety 130,000
Public Works Office Refurbishment (additional funding) 1,000,000 Public Safety Center Project 2,845,913
Total $ 4,296,913
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Staff Report – Resolution No. 22-35, Budget Amendments for $4,296,913 in ARPA Funding
July 11, 2022
BACKGROUND
The City of Bellflower received a total of $21,457,498 in ARPA SLFRF funds. The United States Treasury published Interim and Final Rules (“Treasury Rules”) detailing eligible uses and deadlines for expending the ARPA SLFRF funds. On December 9, 2021, the City Council authorized programming of $17,160,585 in ARPA SLFRF funds or with budget savings realized through ARPA SLFRF funding. Staff recommends budgeting the remaining balance of $4,296,913 for the following purposes:
Premium Pay related to COVID-19 (A) $ 321,000
Transfer of Code Enforcement to Public Safety (B) 130,000 Public Works Office Refurbishment (additional funding) (C) 1,000,000 Public Safety Center Project (D) 2,845,913
Total $ 4,296,913
(A) Each full-time employee active as of July 11, 2022 and who worked fully during the period of on or about March 1, 2020 to March 25, 2022 will receive a premium pay related to COVID-19 in the amount of $3,000. Each part-time employee active as of July 11, 2022, or each active full-time employee who was hired or became full-time any time during the specified period, will receive a prorated premium pay based on the total hours worked including paid leave hours. The City Manager is authorized to issue rules and procedures to implement this program.
(B) The transfer of Code Enforcement from the Planning and Building Services Department to the Public Safety Department requires a budget amendment and a separate action for personnel adjustments after meeting and conferring with the affected union. The currently proposed budget amendment is for the estimated costs for 10 months in fiscal year 2022-23. A separate staff report and resolution to implement the proposed personnel adjustments will be presented for Council approval in or about August 2022 after reaching an agreement with the union.
(C) The existing budget for the Public Works Office Refurbishment Project is $1,530,000. With the additional allocation of $1,000,000, the total project budget is $2,530,000.
(D) Proposed relocation of the Public Safety Center.
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Staff Report – Resolution No. 22-35, Budget Amendments for $4,296,913 in ARPA Funding
July 11, 2022
BACKGROUND – Continued
The currently proposed and previously-approved appropriations are as follows ($21,457,498 total):
Previously
Approved
Currently
Proposed
12/9/2021 7/11/2022
Direct Use of ARPA SLFRF Funds:
Water Infrastructure Projects $ 5,000,000
In-Home Wireless Broadband Access Points 1,000,000 General Fund COVID Expenditures 324,636
With Budget Savings from ARPA SLFRF Funding:
Youth and Senior Center/Simms Park 9,769,449
3-Day Holiday Shutdown (2021) 115,000
Online Permitting and Plan Submittal Software 213,500 Business Development Programs 738,000
Premium Pay related to COVID-19 (1) $ 321,000
Transfer of Code Enforcement to Public Safety (2) 130,000
Public Works Office Refurbishment (additional
funding)
1,000,000
Public Safety Center 2,845,913
Total $ 17,160,585 $ 4,296,913
(1) A portion of this expenditure also qualifies as direct use of ARPA SLFRF funds. (2) Also qualifies as direct use under the ARPA SLFRF revenue loss provision.
ARPA SLFRF funds must be expended for the following four statutory categories:
1. Responding to the COVID-19 public health emergency or its negative economic impacts.
2. Provision of premium pay to essential workers.
3. Provision of government services, to the extent of the reduction in revenue due to the COVID-19 public health emergency.
4. Making necessary investments in water, sewer, or broadband infrastructure.
ARPA SLFRF funds must be obligated by December 31, 2024, and expended by December 31, 2026.
ATTACHMENT
Resolution No. 22-35...................................................................................................... 4 - 3 -
CITY OF BELLFLOWER
RESOLUTION NO. 22-35
A RESOLUTION AUTHORIZING BUDGET AMENDMENTS
FOR THE AMERICAN RESCUE PLAN ACT FUNDING IN
THE AMOUNT OF $4,296,913 FOR FISCAL YEAR 2022-23
AND THE CITY MANAGER TO IMPLEMENT THE
APPROVED PROGRAMS
THE CITY COUNCIL RESOLVES AS FOLLOWS:
SECTION 1. The City Council finds and declares as follows:
A. On March 11, 2021, the President of the United States signed into law House Bill 1315, the American Rescue Plan Act of 2021 (“ARPA”), to provide continued fiscal relief from the impact of the COVID-19 pandemic; and
B. The City of Bellflower has been negatively impacted by the COVID-19 pandemic and was awarded $21,457,498 in ARPA funding (specifically Coronavirus State and Local Fiscal Recovery Funds, or “SLFRF”) for expenditures incurred in responding to the COVID-19 pandemic, revenue losses, and investment in water, sewer, and broadband infrastructure pursuant to the Interim and Final Rules (“Treasury Rules”) published by the United States Department of Treasury; and
C. The Treasury Rules permit the use the ARPA SLFRF funds on eligible costs incurred from March 3, 2021, obligated by December 31, 2024, and expended by December 31, 2026, with certain limited costs authorized retroactively from the start of the pandemic in 2020; and
D. On December 9, 2021, the City Council authorized programming of $17,160,585 in ARPA SLFRF funds or with budget savings realized through ARPA SLFRF funding and now desires to program the remaining balance of $4,296,913.
SECTION 2. The City Council approves $4,296,913 in appropriations for fiscal year 2022-23 as follows:
Premium Pay related to COVID-19 (A) $ 321,000
Transfer of Code Enforcement to Public Safety (B) 130,000 Public Works Office Project (additional funding) (C) 1,000,000 Public Safety Center Project (D) 2,845,913
Total $ 4,296,913
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City of Bellflower
Resolution No. 22-35
(A) Each full-time employee active as of July 11, 2022 and who worked fully during the period of on or about March 1, 2020 to March 25, 2022 will receive a premium pay related to COVID-19 in the amount of $3,000. Each part-time employee active as of July 11, 2022, or each active full-time employee who was hired or became full-time any time during the specified period, will receive a prorated premium pay based on the total hours worked including paid leave hours. The City Manager is authorized to issue rules and procedures to implement this program.
(B) The transfer of Code Enforcement from the Planning and Building Services Department to the Public Safety Department requires a budget amendment and a separate action for personnel adjustments. The currently proposed budget amendment is for the estimated costs for 10 months in fiscal year 2022-23. A separate staff report and resolution to implement the proposed personnel adjustments will be presented for Council approval in or about August 2022.
(C) The existing budget for the Public Works Office Refurbishment Project is $1,530,000. With the additional allocation of $1,000,000, the total project budget is $2,530,000.
(D) Proposed relocation of the Public Safety Center.
The current and previously-approved appropriations are as follows ($21,457,498 total):
Previously
Approved Current
12/9/2021 7/11/2022
Direct Use of ARPA SLFRF Funds:
Water Infrastructure Projects $ 5,000,000
In-Home Wireless Broadband Access Points 1,000,000 General Fund COVID Expenditures 324,636
With Budget Savings from ARPA SLFRF Funding:
Youth and Senior Center/Simms Park 9,769,449
3-Day Holiday Shutdown (2021) 115,000
Online Permitting and Plan Submittal Software 213,500 Business Development Programs 738,000
Premium Pay related to COVID-19 (1) $ 321,000
Transfer of Code Enforcement to Public Safety (2) 130,000
Public Works Office Refurbishment (additional
funding)
1,000,000
Public Safety Center 2,845,913
Total $ 17,160,585 $ 4,296,913
(1) A portion of this expenditure also qualifies as direct use of ARPA SLFRF funds. (2) Also qualifies as direct use under the ARPA SLFRF revenue loss provision. - 5 -
City of Bellflower
Resolution No. 22-35
SECTION 3. The City Manager is authorized to implement this Resolution. As part of that implementation, the City Manager, or designee, is authorized to incorporate necessary amendments (revenues, appropriations, and transfers) in the 2022-23 Operating Budget for the programming of the $4,296,913 in ARPA SLFRF funding and expenditures.
SECTION 4. PLANNING AGENCY. Pursuant to Bellflower Municipal Code (“BMC”) § 2.32.050(F), the City Council will act as the Bellflower Planning Agency for purposes of this Resolution. In accordance with Government Code § 65401, the Bellflower Public Works Department prepared and submitted a capital improvement plan (“CIP”) to the Planning Agency. Government Code § 65103(c) requires the Planning Agency to annually review the City’s CIP to determine whether the CIP is consistent with the Bellflower General Plan. The City Council finds that the CIP is consistent with the Bellflower General Plan.
SECTION 5. REAPPROPRIATION. The City Manager, or designee, is authorized to reappropriate any unused appropriations for capital projects, special projects, grant programs, and contractual obligations at the close of a fiscal year to a subsequent fiscal year for the Budget and CIP.
SECTION 6. BUDGET ADJUSTMENTS. The Budget may be subsequently adjusted as follows:
A. By majority vote of the City Council; or
B. By the City Manager, or designee, pursuant to this Resolution, or other authorizing Resolutions or Policies.
SECTION 7. CONTRACTING AUTHORITY.
A. The City Manager, or designee, is authorized to bid and/or award contracts for the equipment, supplies, and services approved in the Budget in accordance with the BMC.
B. In accordance with the BMC, the City Manager, or designee, is authorized to execute all contracts awarded for equipment, supplies, and services approved in the Budget.
C. For all other services, equipment, and supplies, the City Manager, or designee, is authorized to execute contracts in accordance with the BMC.
SECTION 8. This Resolution does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Resolution’s effective date. Any such amended part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution.
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City of Bellflower
Resolution No. 22-35
SECTION 9. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable.
SECTION 10. Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.
SECTION 11. The Mayor, or presiding officer, is hereby authorized to affix his signature to this Resolution signifying its adoption by the City Council of the City of Bellflower, and the City Clerk, or her duly appointed deputy, is directed to attest thereto.
SECTION 12. This Resolution will become effective immediately upon adoption.
PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER THIS 11TH DAY OF JULY 2022.
________________________________
Ray Dunton, Mayor
ATTEST:
________________________________
Mayra Ochiqui, City Clerk
APPROVED AS TO FORM:
________________________________
Karl H. Berger, City Attorney
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