March 21, 2023
Library and Community Services
DATE: March 21, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Nickie Mastay, Deputy City Manager, Internal Services
LaShonda White, Deputy City Manager, Community
Services
SUBJECT:
Contract with Witt O’Brien’s, LLC for Consulting Services Related to American Rescue Plan Act (ARPA) Funds
FINANCIAL IMPACT: The City’s ARPA funds will cover the cost of the contract.
PREVIOUS COUNCIL
ACTION:
June 28, 2022; June 15, 2021; June 1, 2021
STATEMENT OF THE
ISSUE:
Contract with Witt O’Brien’s LLC for consulting services for oversight and compliance related to American Rescue Plan Act funds.
RECOMMENDED ACTION:
APPROVE a contract with Witt O’Brien’s, LLC to provide
consulting services for oversight and compliance related to American Rescue Plan Act (ARPA) funds, in the
amount not to exceed $300,000, for a term commencing
March 22, 2023 through June 30, 2027, and
APPROPRIATE the use of $300,000 in City ARPA funds
for this contract – Community Services/Finance
Department (LaShonda White/Nickie Mastay 510-620-
6512).
AGENDA
REPORT
March 21, 2023
DISCUSSION:
The City of Richmond is currently situated to receive $27.7 million in American Rescue Plan Act (ARPA) funds. As part of the Fiscal Year (FY) 2021-22 annual budget process, the Richmond City Council approved an allocation of $8.55 million in ARPA funds to various projects, including funding to conduct a Community Needs Assessment (CNA) for informing City Council’s decision for how to allocate the remaining ARPA relief funding of $19.15 million. All funds must be obligated by December 31, 2024, and spent by December 31, 2026.
There are significant requirements, guidance, and limitations on the uses of ARPA funds. The City of Richmond has discretion to use the award funds in ways that best suit the needs of the community, as long as each use fits into one of the following statutory categories:
To respond to the COVID-19 public health emergency or its negative economic impacts;
To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to such eligible workers of the recipient, or by providing grants to eligible employers that have eligible workers who performed essential work;
For the provision of government services, to the extent of the reduction in revenue of such recipient due to the COVID-19 public health emergency, relative to revenues collected in the most recent full fiscal yar of the recipient prior to the emergency; and
To make necessary investments in water, sewer, or broadband infrastructure.
On September 19, 2022, a Request for Proposal (RFP) was issued for consulting services for oversight and compliance related to American Rescue Plan Act funds. The RFP sought firms to provide:
Program Design – Lead in the construction of programmatic spending plans that align with the City’s goals, comply with all published ARPA compliance guidance, and efficiently further the economic interests of economic interests of Richmond businesses.
Program Management – Lead in the management of the established programs to facilitate the efficient distribution of ARPA funds. Provide direct customer service, assistance, and support to local businesses and organizations that apply for and/or receive funding through one or more of the City’s programmatic spending opportunities. Establish an application system or process, collect applications, review applications, verify record authenticity, ensure compliance, and manage executed grant agreements.
Program Monitoring – Provide direct compliance related to all programmatic spending opportunities, grants, or other programs created to distribute ARPA funds to local businesses and other organizations. Ensure ongoing compliance with ARPA’s Interim Final Rule (IFR), Compliance and Reporting Guidance, and
March 21, 2023
all other published compliance guidance, including but not limited to the Final Rule published by the Department of Treasure on ARPA – State and Local Coronavirus Relief funds.
The City received responses to the RFP from the following firms:
Dynamic Contracts Consultant
Nan Mckay & Associates
PFM Group Consulting, LLC
Witt O’Brien’s, LLC
After the review and scoring of the proposals, the City decided to enter into a contract with Witt O’Brien. Witt O’Brien is a national firm and has worked with Sacramento County, Santa Clara County, the City of San Jose, Culver City, and Long Beach. They have also worked with CalTech, the California State University System, and San Jose Evergreen CC District. Witt O’Brien has a seasoned project team that includes Norberto Dimas a former San Jose City Manager. Witt O’Brien will work with the City to develop and deliver a Subrecipient Management Plan that implements a subrecipient management toolkit that includes compliance guidance and tools and templates for conducting monitoring activities. The toolkit is customizable to the City and the recipient, as well as each of the subrecipient/fiscal leads and any downstream sub awards. They have developed subrecipient training that cover a wide variety of topics including roles and responsibilities, federal Uniform Guidance (2CFR 200), risk assessment, monitoring, and record collection/retention.
In order to provide program design, management, and compliance in reporting, Witt O’Brien’s, LLC was chosen to partner with the City to provide consulting services for oversight and compliance for the American Rescue Plan Act funds.
DOCUMENTS ATTACHED:
Attachment 1 – Witt O’Brien’s, LLC Contract
Attachment 2 – Request for Proposal: Consulting Services for Oversight and Compliance Related to American Rescue Plan Act Funds
Attachment 3 – Bid Results