March 19, 2024
Finance Department
DATE: March 19, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Andrea Miller, Director of Finance
Mubeen Qader, Deputy Director of Finance
Subject:
American Rescue Plan Act (ARPA) Allocation Amendment
FINANCIAL IMPACT: There is no net impact to replace the project allocated to ARPA funds. Accounts 13623331-400708-AR240 and
40322931-400708-01U10
PREVIOUS COUNCIL
ACTION:
November 23, 2021
STATEMENT OF THE
ISSUE:
North Richmond Pump Station expenditures in the
amount of $731,847.85 incurred prior to March 3, 2021,
the allowed period of performance by the Department of
Treasury, were inadvertently allocated to ARPA funds.
Staff recommends transferring these expenditures from
ARPA funds to Wastewater and transferring Ferry Point
Dornan Pump Station expenses of the same amount
from Wastewater to ARPA funds.
RECOMMENDED ACTION:
APPROVE a transfer of expenses in the amount of
$731,847.85 between American Rescue Plan Act (ARPA)
funds and Wastewater funds to correct an inadvertent
allocation of ARPA funds for the North Richmond Pump
Station emergency repair project made prior to the
allowable ARPA project reimbursement date of March 3,
2021 – Finance (Andrea Miller 510-620-6790/Mubeen
Qader 510-412-2077).
AGENDA
REPORT
March 19, 2024
DISCUSSION:
The Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program, a part of the American Rescue Plan Act (ARPA), provided $350 billion to state, local, and tribal governments across the country to support their response to and recovery from the COVID-19 public health emergency. The City of Richmond received approximately $27.7 million in ARPA funds. At its November 23, 2021 meeting, the City Council approved Resolution 136-21 allocating $1.8 million from the City’s ARPA funding for repair of the North Richmond Pump Station (Attachment 1).
Section 35.5 of the Final Rule of the SLFRF issued by Department of the Treasury states the following regarding use of funds (https://www.govinfo.gov/content/pkg/FR- 2022-01-27/pdf/2022-00292.pdf),
"§ 35.5 Use of funds. (a) In general. A recipient may only use funds to cover costs incurred during the period beginning March 3, 2021, and ending December 31, 2024, for one or more of the purposes enumerated in sections 602(c)(1) and 603(c)(1) of the Social Security Act, as applicable, including those enumerated in § 35.6, subject to the restrictions set forth in sections 602(c)(2) and 603(c)(2) of the Social Security Act, as applicable.”
During the Single Audit process, the City’s auditors, Badawi and Associates, discovered that expenditures in the amount of $731,847.85 were incurred prior to March 3, 2021, for North Richmond Pump Station repairs and allocated to ARPA funding. To correct this issue, City staff, in consultation with Badawi and Associates, recommend City Council approve the transfer of prior year expenditures between ARPA and Wastewater Funds as follows:
Project Name From Account To Account Amount
North Richmond
Pump Station
13623331-400708-AR240 40322931-400708-AR240 $731,847.85 Ferry Point Dornan
Pump Station
40322931-400708-01U10 13623331-400708-01U10 $731,847.85
There is no net financial impact in transferring the expenditures for the two projects between the funding sources identified above.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution 136-21