DATE: May 2, 2023
DEPARTMENT: ADMINISTRATION
FROM: STEVEN S. CARRIGAN, CITY MANAGER
BY: DEPARTMENT DIRECTORS
JIM PIA, ASSISTANT CITY MANAGER
TITLE: SALINAS’ AMERICAN RESCUE PLAN UPDATE
RECOMMENDED MOTION:
This item provides an administrative update on the City’s various Council-adopted projects included in the Salinas recovery under the American Rescue Plan Act (ARPA) of 2021. No action is required.
DISCUSSION:
On March 11, 2021, President Biden signed the American Rescue Plan Act, which provided the City with $51,567,313 in relief funds. The City has now received all of this funding. As a reminder, the project areas were adopted by the City Council in September of 2021. As of mid-April 2024, $5,512,276 has been spent, with another $8,920,217 encumbered on projects, for a total of approximately 28 percent.
BACKGROUND:
COUNCIL ADOPTED ARPA CATEGORY SPENDING
Public Facilities: ($11.5 million) According to Treasury guidelines, Capital investments in public facilities to meet pandemic operational needs are eligible, including public building adaptations to implement COVID-19 mitigation. Staff has identified this expenditure area with $11.5 million in spending, including:
Adaptations to Salinas City Hall, $5,002,313
Hebbron Family Center, $1.5 million (for contingencies, unexpected costs, furniture, and fixtures) Fire Stations, and other Recreational Facilities, $3 million Playground Structures, Park Benches, Grills, $2 million (Majority to be spent in 93905 & 93906 due to having the higher number of COVID-19 cases) Public Infrastructure: ($12 million) Staff wanted to identify all vital City expenditure areas, even those that may not technically be addressed through ARPA allowable expenses. The Treasury Department gives recipients broad latitude to use funds for the provision of government services to the extent of the reduction in revenue. As a result, staff has identified this expenditure area at $12 million, as follows:
(Finance Committee has been involved in reviewing these projects) Sidewalk repairs, $6 million (Majority to be spent in 93905 & 93906 due to having the higher number of COVID-19 cases) Street repair / Traffic safety, $6 million ($3 million from City Hall improvements + $1 million from other public facilities above) (majority to spent in 93905 & 93906 due to having the higher number of COVID-19 cases) Investments in Water and Sewer: ($15.465 million) ARPA fund recipients may use Coronavirus State and Local Fiscal Recovery Funds to make necessary investments in water and sewer. Staff has identified this expenditure area at $15.465 million, as follows:
Sewer System Work, $4,620,000
Gabilan Creek Silt removal, $ 500,000
Natividad Creek Silt Removal, $1,545,000
Storm Water Master Plan, $ 800,000
Park Irrigation Upgrades $5 million
Stormwater Green Infrastructure $3 million
Homelessness/Housing: ($12.6 million)
Chinatown Navigation Center Operations, $1 million
SHARE Center Operations, $1 million Downtown Streets Team $ 600,000 Salinas Homeless Motel Program $3 million Affordable Housing Production Fund, $7 million (to facilitate affordable housing production, funds can be used for predevelopment, acquisition, construction, plans and studies)
ARPA SPECIFIC PROJECTS IDENTIFIED
UPDATED HIGHLIGHTS by ADOPTED CATEGORY SPENDING
The highlights below capture some of the upcoming activity by category. The attached ARPA Project status list addresses the entirety of information on the projects noted above.
PUBLIC FACILITY CATEGORY:
On the Fire Station Renovations/Repairs, the Salinas Fire Department expects to award a contract in May/June 2023 that will identify a project renovation schedule for $2.9 million that will span over 1.5 years, and all six fire stations.
On the Adaptations to City Hall project, staff remains focused on the new roof, (approved by Council on April 4), as well as abating environmental hazards and providing for modern HVAC (Heating, ventilating, and air-conditioning), and important building security enhancements. These projects will be worked on during the summer months with significant progress on expenditures (more than $2 million) in the coming fiscal year.
In the expansion of the Firehouse Recreation Center, staff is exploring modular units that can serve to appropriately expand the site, as well as necessary restroom renovations, with proposals due in mid-May 2023.
A demolition contract for the Hebbron Family Center was awarded on April 4, 2023, with the anticipated completion in June on that important project.
PUBLIC INFRASTRUCTURE CATEGORY:
It is anticipated that sidewalk repairs totaling $3.5 million will be completed by August 2023, with a second large sidewalk repair project going out for bid in the fall of 2023.
INVESTMENTS IN WATER AND SEWER CATEGORY:
Three million dollars was allocated to the Stormwater Green Infrastructure projects, including Green City Master Plan, Street sweeping community engagement and route reconfiguring, Cesar Chavez Park Basin engineering and drainage repair, all with work identified in the remainder of 2023 and throughout 2024.
The next steps on the Citywide Park Irrigation upgrades ($5 million allocation) will come with staff recommendations in the upcoming summer months.
HOMELESSNESS/HOUSING CATEGORY:
ARPA funds for the Chinatown Navigation Center operation have been nearly half used with a new funding agreement to be executed in the new fiscal year. Funding continues to be used for the SHARE Center operations as well.
In terms of Affordable Housing production, the City has completed steps toward: 1) acquiring affordable housing at 403 E. Romie Lane; 2) support for Eden Housing at 855 E. Laurel Drive; 3) acquiring Soledad Street properties; 4) predevelopment efforts on Division Street parcel; 5) acquisition of parcel from St. George Church for CHISPA development of 31-unit Senior housing project. Additionally, funded work by the Downtown Streets Team continues and ongoing efforts also continue in the Salinas Homeless Motel Program.
It is anticipated that All ARPA money, as required by the legislation, will be encumbered by the end of 2024 and work completed by the end of 2026.
Attachments
ARPA Project Status List
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CITY OF SALINASCOUNCIL STAFF REPORT
CITY OF SALINAS
COUNCIL STAFF REPORT