STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of April 26, 2022
TO: Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Edwin Gato, Director of Finance
SUBJECT: Adoption of a resolution approving a First Amendment to an Agreement with Hinderliter de Llamas & Associates (HDL) in the amount of $115,000 to provide overall administrative oversight of Hercules’ American Rescue Plan Act (ARPA) program and to provide Economic Development staffing services for a total, not to exceed amount of $164,500.
RECOMMENDED ACTION
Staff recommends that the City Council:
Adopt a Resolution Approving a First Amendment to an Agreement with HdL in the amount of $115,000 to provide overall administrative oversight of Hercules’ ARPA programs and to provide Economic Development staffing services for a total, not to exceed amount of $164,500.
Adopt a Resolution Approving a Budget Amendment to increase the budget by $115,000 for this contract funded by ARPA fund loss of revenue component on the following services:
ARPA program administration - $50,000
Economic Development (ED) Staffing - $65,000
FISCAL IMPACT OF RECOMMENDATION
The proposed First Amendment increases the total contract amount under this agreement by $115,000, for the total not to exceed amount of $164,500. The cost of the contract can be recouped from the revenue loss component of the ARPA fund. There are sufficient funds available in the revenue loss component of the ARPA fund to absorb the cost.
BACKGROUND AND DISCUSSION
The American Rescue Plan Act (ARPA) provides relief to local governments and enables them to lay the foundation for a robust economic recovery. In addition to helping local governments address the revenue losses they have experienced because of the pandemic’ it will help cover the costs incurred from responding to the public health emergency and provide recovery support.
The one-time infusion of funds will help mitigate losses incurred in the community during the pandemic, which has extended for almost two years. The sooner a recovery plan is developed, the faster the City can stabilize operations, get the local economy back on track, and support those in the community most impacted by the pandemic.
Staff recommends the City Council approve the attached first amendment to HdL contract, increasing the compensation by $115,000, for a total not to exceed the amount of $164,500, for assistance with the following:
ARPA Program Administration
The local recovery program must be carefully and thoughtfully administered to ensure optimal use of the funds in alignment with the City Council’s vision, goals, and objectives and compliance with ARPA requirements. Given the complexities involved in administering these federal funds, as well as limited in-house resources to assign to this program, staff recommends the City Council amend the contract with HdL to assist in the overall administrative oversight of Hercules’ ARPA programs targeted at assisting Hercules businesses, including the following:
Business Assistance Grants
Business Rental Relief Assistance Grants
Marketing Assistance Program, including individualized business marketing support and Shop Local Program with the utilization of Digital Gift Card Program The Shop Local Program or E-Gift Card Program is on the agenda tonight to authorize staff to award a contract with Yiftee for an amount not to exceed $65,000. The E-Gift program was approved during FY 21-22 Midyear Budget on February 22, 2022.
Staff recommendations on the Business Assistance Grants and Rental Relief Grants will be presented to the City Council during the FY 22-23 budget process.
These services will add $50,000 in funding for HdL to administer the ARPA programs listed above.
Economic Development (ED) Staffing Services
Additionally, HdL will provide ED staffing services, including retail attraction and development services support – as needed and directed by the City. The ED staffing support services will add not to exceed $65,000.
On June 29, 2021, the former Interim City Manager engaged HdL to assist the City with developing a strategy for COVID-19 relief and the use of federal stimulus funding coming from the ARPA not to exceed the amount of $49,500. The initial agreement (Attachment 2) and first amendment (Attachment 3) are presented for City Council approval. Based on this first amendment, the total contract amount would exceed the City Manager’s contract authority of $100,000 on a reimbursable contract. Also, the staff recommends that the City Council approve a budget amendment to increase the General Fund budget by $115,000 ($50K for full administration of the APRA programs and $65K for the ED staffing services, as needed) for this contract amendment funded by the ARPA loss of revenue component.
ATTACHMENTS:
Resolution – HdL Contract Amendment
Resolution – Budget Amendment
Original Agreement
First Amendment and Additional Consulting Work
Financial Impact
Description: HdL Contract – 1st Amendment
Funding Source: ARPA Loss Revenue Component
Budget Recap:
Total Estimated cost: $115,000 New Revenue: $
Amount Budgeted: $ Lost Revenue: $
New funding required: $ New Personnel: $
Council Policy Change: Yes No
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