November 19, 2024
Finance Department
DATE: November 19, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Shasa Curl, City Manager
Nickie Mastay, Deputy City Manager – Internal Services
Andrea Miller, Director of Finance
Mubeen Qader, Deputy Director of Finance
Subject:
American Rescue Plan Act (ARPA) Interagency
Agreements
FINANCIAL IMPACT: Not approving the Interagency Agreements could financially impact the ability to obligate ARPA funds by the December 31, 2024, deadline.
PREVIOUS COUNCIL
ACTION:
October 15, 2024
April 16, 2024
March 19, 2024
December 5, 2023
November 28, 2023
May 23, 2023
STATEMENT OF THE
ISSUE:
As part of the American Rescue Plan Act (ARPA)
guidelines to obligate funding by December 31, 2024,
City staff recommend the City Council approve
Interagency Agreements (IAA’s) to obligate funds that are in the process of being obligated or spent.
RECOMMENDED ACTION:
APPROVE Interagency Agreements with departments to
obligate ARPA funding in an amount not to exceed
$16,782,074 - Finance Department (Andrea Miller 510-
620-6790/Mubeen Qader 510-412-2077)
AGENDA
REPORT
November 19, 2024
DISCUSSION:
The City of Richmond received $27.7 million as part of the $350 billion American Rescue Plan Act of 2021 (ARPA) relief package signed into law on March 11, 2021, for state and local governments. The City Council has allocated the entire $27.7 million to several programs and projects at the following City Council meetings: December 5, 2023 (agenda item P.1), March 19, 2024 (agenda item O.5.c), and April 16, 2024 (agenda item W.1). There is significant guidance on requirements and limitations on the usage of ARPA funds. One such requirement is that all ARPA funds must be obligated by December 31, 2024, and spent by December 31, 2026.
Interagency agreements (IAA’s) are a mechanism through which the Treasury has deemed eligible for State and Local, Fiscal Recovery Funds (SLFRF) recipients to obligate their funds. IAA’s have specific requirements that must be adhered to when developing, administering, and reporting (see Attachment 6).
The purpose of this staff report is to approve IAA’s with city departments and Finance to obligate ARPA funding, as a stop gap option to comply with ARPA guidelines, since these projects may not be encumbered through purchase orders by December 31, 2024. City staff recommends approving the following IAA’s:
Nystrom Village - $2,000,000
Tenant Protection - $2,984,233
Soccer Fields, Restrooms, and Parks - $7,703,008
Youthworks - $1,200,000
Paving - $2,144,833
Infrastructure: Stormwater - $750,000
DOCUMENTS ATTACHED:
Attachment 1 – Nystrom Village IAA
Attachment 2 – Tenant Protection Short-Term Rental Assistance IAA Attachment 3 – Soccer Fields, Restrooms, and Parks IAA
Attachment 4 – YouthWORKS IAA
Attachment 5 – Paving IAA
Attachment 6 – Stormwater Infrastructure IAA
Attachment 7 -- Interagency Agreement (IAA) Strategy Memo