City Council Agenda Report
October 20, 2026
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Alexander Hamilton, Deputy City Manager
Jana Stuard, Director of Finance/City Treasurer
Michael Johnson, IT Manager
Jennifer Hernandez, Administrative Services Supervisor
SUBJECT: RESOLUTION NO. 26-59 - BUDGET AMENDMENT FOR AMERICAN RESCUE
PLAN ACT FUNDED PROJECTS
Background:
The City of Norwalk received $28,046,746 in ARPA funding and obligated the full allocation by December 31, 2024, with a required expenditure deadline of December 31, 2026, in accordance with federal requirements.
Staff have continued implementing the ARPA-funded projects and monitoring expenditures to ensure compliance with applicable requirements. Of the City's 24 ARPA projects, 15 have been completed and nine remain active. To date, $26.4 million has been expended, representing 94% of its total ARPA allocation. The remaining active projects are anticipated to be completed by December 31, 2026.
Two projects were completed under budget with a combined remaining balance of $489,634.
These funds are available for consideration for re-obligation to other eligible active ARPA projects, subject to applicable federal requirements and City Council approval. The two projects are listed below:
• Project No. 2.361219 - Aid to Impacted Industries Signage: $149,634 remaining due to ongoing construction affecting the planned signage improvements around the Norwalk Entertainment Center.
• Project No. 7.1T1219 - Scan & Digitize Plans: $340,000 in anticipated savings from the digitization of City records.
City Council October 6, 2026
Resolution No. 26-59 ARPA Budget Amendment Page No. 2
Proposed Re-Obligation:
Unspent funds from completed ARPA projects may be reallocated to other active ARPA projects, subject to applicable federal requirements and City Council approval. Of the nine active projects, five are nearly completed utilizing the full project budget with no need of additional funding.
The reallocation of available ARPA funding among active projects is at the discretion of the City Council. In an effort to leverage available ARPA funding, staff recommend reallocating the available $489,634 to the following projects to support eligible project costs and facilitate the timely expenditure of ARPA funds ahead of the federal deadline:
• Project No. 1.7C8219 – Security & Safety Improvement Project • Project No. 7.1T5219 – Software Upgrades
• Project No. 7.1T6219 – Technology Hardware Upgrades
Project 1.7C8219 - Security & Safety Improvement:
Project No. 1.7C8219 – Security & Safety Improvement Project was timely obligated by the December 31, 2024 obligation deadline through an Inter-Agency MOU with the Public Safety Department approved by the City Council in December 2024 and subsequently amended in June 2026. The project was established to provide security upgrades at City Hall.
Staff is proposing to re-obligate $175,859 to Project No. 1.7C8219, consisting of $149,634 from Project No. 2.361219 - Aid to Impacted Industry Signage and $26,225 from Project No. 7.1T1219 Scan & Digitize Plans. The additional funding will support completion of the planned security and safety improvements and facilitate the timely expenditure of ARPA funds.
If approved, an amendment to the Inter-Agency MOU with the Public Safety Department will be required to reflect the revised ARPA project budget.
From To
Project Amount Project Amount
2.361219 - Aid to Impacted
Industries/Signage 149,634 149,634
7.1T1219 - Scan & Digitize
Plans 26,255
1.7C8219 - Security &
Safety Improvements 26,225
TOTAL 175,859 TOTAL 175,859
7.1T5219 - Software Upgrades:
Project No. 7.1T5219 Software Upgrades was timely obligated by the December 31, 2024 obligation deadline through an agreement with IBE Digital. The project was established to support software upgrades and related services for Citywide technology systems, including procurement and the implementation of Microsoft 365 and accompanying annual Microsoft licensing costs.
City Council October 6, 2026
Resolution No. 26-59 ARPA Budget Amendment Page No. 3
Staff is proposing to re-obligate $234,274 in remaining ARPA funding from Project No. 7.1T1219 Scan & Digitize Plans. The additional funding will support ongoing software renewal costs, upgrades and related services associated with the City's Citywide technology systems to ensure timely renewal of expiring software.
From To
Project Amount Project Amount
7.1T1219 - Scan &
Digitize Plans 234,274 7.1T5219 - Software Upgrade 234,274 TOTAL 234,274 TOTAL 234,274
7.1T6219 - Technology Hardware Upgrades:
Project No. 7.1T6219 Technology Hardware Upgrades was timely obligated by the December 31, 2024 obligation deadline through an agreement with IBE Digital. The project was established to support Citywide technology hardware upgrades and related services.
Staff is proposing to re-obligate $79,501 in remaining ARPA funding from Project No. 7.1T1219 Scan & Digitize Plans. The additional funding will support hardware purchases to support ongoing hardware upgrade needs.
From To
Project Amount Project Amount
7.1T1219 - Scan &
Digitize Plans 79,501 7.1T6219 – Technology Hardware Upgrade 79,501 TOTAL 79,501 TOTAL 79,501
Projects No. 7.1T5219 - Software Upgrades and No. 7.1T6219 - Technology Hardware Upgrades are separate ARPA projects included under the City's existing agreement with IBE Digital, which was approved by City Council in July 2023.
Project No. 7.1T6219 currently has $80,919 in ARPA funding that has not yet been incorporated into the IBE Digital agreement. If approved, Amendment No. 1 to the agreement will increase the agreement by $394,694, consisting of $234,274 in re-obligated funding for Project No. 7.1T5219, $79,501 in re-obligated funding for Project No. 7.1T6219, and $80,919 in existing Project No.
7.1T6219 funding. The proposed amendment of $394,694 would support the purchase of software and hardware upgrades as summarized on Table 3. Detailed items included in the proposed amendment are included in Attachment 2 and Attachment 3.
City Council October 6, 2026
Resolution No. 26-59 ARPA Budget Amendment Page No. 4
Table 3: Breakdown of Proposed Software/Hardware Upgrade Costs Item Cost
Software Upgrades
Microsoft Windows Licensing $193,814
Microsoft Server Software Licensing $26,940
Professional Services $13,520
Software Subtotal: $234,274
Technology Hardware Upgrades
Hardware Purchases $128,706
Tax on Hardware (10.5%) $13,514
Professional Services $18,200
Technology Hardware Subtotal: $160,420
TOTAL SOFTWARE/HARDWARE COST $394,694
The proposed re-obligation and contract amendment with IBE Digital will allow the City to leverage available ARPA funding to support eligible citywide software and technology hardware costs.
Utilizing ARPA funds for these costs will facilitate the full expenditure of the City’s ARPA allocation while minimizing the impact to the General Fund for ongoing software renewals, upgrades and technology hardware needs.
Fiscal Impact:
Approval of the proposed re-obligations will facilitate the timely expenditure of available funding with the ARPA expenditure deadline and have no fiscal impact on the City’s General Fund.
Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
The recommended action will further the City’s Strategic Plan Goal 3: Partner with our stakeholders to create and sustain a resilient and economically prosperous City with opportunity for everyone.
Recommended Action:
Staff recommend City Council:
a. adopt Resolution No. 26-59, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORWALK AUTHORIZING AN AMENDMENT TO THE FISCAL YEAR 2026/27 ADOPTED
BUDGET TO TRANSFER FUNDS FOR AMERICAN RESCUE PLAN ACT FUNDED PROJECTS, in the amount of $489,634; and
b. authorize the City Manager to execute Amendment No. 1 to the Inter-agency Memorandum of Understanding between the City and the Community Development Department, on behalf of the City, in a form approved by the City Attorney; and City Council October 6, 2026
Resolution No. 26-59 ARPA Budget Amendment Page No. 5
c. authorize the City Manager to execute Amendment No. 1 to the agreement with Viatron Systems Inc. decreasing the agreement by $340,000; and
d. authorize the City Manager to execute Amendment No. 2 to the Inter-agency Memorandum of Understanding between the City and the Public Safety Department, on behalf of the City, in a form approved by the City Attorney; and
e. authorize the City Manager to execute Amendment No. 1 to the agreement with IBE Digital increasing the agreement by $394,693, and additional amendments, provided there is funding in the budget and it is within the City Manager’s signing authority, on behalf of the City, in a form approved by the City Attorney.
Attachments:
1. Resolution No. 26-59
2. IBE – Software Upgrades Proposal
3. IBE – Technology Hardware Upgrades Proposal