FOR THE COUNCIL MEETING OF MAY 2, 2023
COUNCIL AGENDA REPORT
TO: City Council
FROM: City Manager
Prepared by: Director of Public Works
SUBJECT: APPROPRIATION OF TRANSIT'S AMERICAN RESCUE PLAN ACT (ARPA) FUNDS
RECOMMENDATION:
That the City Council adopt a Resolution approving appropriation of the formula allocated American Rescue Plan Act (ARPA) in the amount of $1,266,629 for the Transit program's operating budget.
BACKGROUND:
Signed into law on March 11, 2021, the American Rescue Plan Act of 2021 (ARPA) provides $30.5 billion in supplemental appropriations allocated to support the transit industry during the COVID-19 Public Health Emergency. These transit specific ARPA fundings are disbursed through Federal Transit Authority apportionments to Urbanized Area, Rural Formula, Tribal Transit, and Enhanced Mobility of Older Adults and Individuals with Disabilities programs. The City of Santa Maria's Transit program has a formula allocation of $1,266,629.
Important to note is that these funds are specific to the transit program and are separate and distinct from prior allocations of $37.2 million ARPA funds that have been provided to the City's General Fund.
DISCUSSION
ARPA funds are authorized to a transit agency with pre -award authority. Funds can be used by a transit agency to reimburse themselves for costs already incurred, as opposed to seeking federal approval on a project before applying and expending funds.
ARPA funds provide 100 percent of the Federal share of the project cost with no local matching funds required.
ARPA is specifically available for payroll and operations unless the recipient certifies that it has not furloughed any employees. This includes payroll expenditures to private providers of public transportation, such as in the case in Santa Maria who contracts with RATPDev for transit service delivery. Other eligible costs include administrative leave for operations or contractor personnel due to reductions in service and general 1 operating costs. All funds must be obligated by September 30, 2024, and disbursed by September 30, 2029.
Given the eligible and qualifying expenditures, it is recommended that the Transit ARPA funds be used towards the general operating costs of the transit program which will account for payroll costs of its contractor. This is particularly important in view of the increased labor costs that the City's contractor now incurs, stemming from the most recent labor negotiations with the local Teamsters Union.
Alternatives
City Council may elect not to accept the allocation of Transit ARPA funds. However, this course is not recommended as it would forgo a significant one-time windfall for the transit program to supplement its ongoing and increasing operating costs.
Environmental Review
The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Fiscal Considerations
There is no impact on the City's General Fund. The Transit Program is an Enterprise Fund sustained solely on its own sources of Federal and State funding and locally generated revenues (i.e., fares). Appropriation of the $1,266,629 would be made available to the City's transit program to be used for its federally defined eligible uses.
Impact on the Community
There are no anticipated impacts to the community nor the transit program's riders by appropriating these funds to the transit program to supplement its ongoing operating costs.
GAMALIEL ANGUYANO
Transit Services Manager
BRETT FULGONI
Director Public Works
Attachments A Grant Information Form
B ARPA of 2021 Fact Sheet
2 RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MARIA,
CALIFORNIA, APPROVING THE APPROPRIATION OF THE FORMULA
ALLOCATED AMERICAN RESCUE PLAN ACT (ARPA) IN THE AMOUNT OF $1,266,629 FOR THE TRANSIT PROGRAM'S OPERATING BUDGET
WHEREAS, the federal government signed into law on March 11, 2021, the American Rescue Plan Act (ARPA) which provides $30.5 billion in supplemental appropriations allocated to support the transit industry during the COVID-19 Public Health Emergency; and
WHEREAS, these transit specific ARPA funds are disbursed through Federal Transit Administration apportionments to Urbanized Areas; and WHEREAS, the City of Santa Maria transit program is an eligible recipient and has a formula allocation of $1,266,629; and
WHEREAS, ARPA is specifically available for payroll and operational costs, including payroll expenditures to private providers of public transportation.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Maria, California that the fund recipient agrees to comply with all conditions and requirements set forth in the Certification and Assurances, applicable statutes, regulations, and guidelines for all ARPA funded transit projects.
NOW THEREFORE, BE IT FURTHER RESOLVED that the City Manager or his designee be authorized to execute all required documents of the ARPA program and any Amendments thereto with the Federal Transit Administration.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Santa Maria, California, as follows:
1. Authorizes the submittal of the following project nomination and allocation of ARPA funds for the amount of $1,266,629 for the Transit Program's operating costs.
2. The Director of Finance or designee is hereby authorized to amend and appropriate ARPA funds and identify revenue and expenditure accounts within the current budget.
3. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult
with the City Manager and City Attorney concerning any changes deemed necessary.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 2nd of May 2023.
ATTEST:
Chief Deputy City Clerk
Mayor
APPRO . ::7 0 FORM.
APPROVED AS TO CONTENT
City Attorney
Departtme t Director
City Manager
ATTACHMENT A
City of Santa Maria
Finance Department
GRANT INFORMATION FORM
Complete this form for each approved grant. Attach a copy of the grant award letter to the form and the approved Council resolution (if grans it $50,000 or more); forward both to the Finance Department.
Fiscal Year of Grant: fy 22/23
Funding Agency: FTA
Date City Council Approved: TBD
Grant Award #: 1,266,629 00
Department Contact and Ext:GAMALIEL ANGUTAI
Pass -through Agency: N/A
Department: PW- TRANSIT
Pass -through No. N/A
Name of Grant:
ARPA
Funding Period:
9-30-2021 - 9-30-2029
Amended Through:
Reporting Requirements (Example: Report, quarterly, to pass through agency):
Quarterly FFR, MPR, NTD & Triennial Audit
Type of Grant:
Federal — CFDA # ARPA
Method of Funding: Reimbursement
State:
Frequency of Funding: Draw downs
County:
Other:
Grant Agency Amount:
City Matching Funds:
100%
0%
City Expenditure Account Number:
City Revenue Account Number:
TBD
TBD
Grant Billing Information (where AR invoice is sent)
Grantor Name: Office of Program Management - Federal Transit Administration Billing Address: 1200 New Jersey Avenue, S.E.
City, state Zip: Washington, DC 20590
City Program and/or Purpose of Grant:
Transit Operating Expenses
Revised 6/2019
ATTACHMENT B
American Rescue Plan Act of 2021
Signed into Law, March 1 1. 2021
Section 7006. Federal Transit Administration Grants
S30.46 billion for Public Transportation to remain
available until September 30, 2024
•
• 111E
AMERICAN
RESCUE
a1�n
American
Rescue Plan
4ct of 2021
All funds:
• Available at 100% federal share
• Available for payroll and operations, unless the recipient certifies that it has not furloughed any employees
• Available for:
o Payroll for public transit providers, including private providers of public transportation o Operating costs of public transit during the public health emergency, including the purchase of personal protective equipment
o Administrative leave for operations or contractor personnel due to reductions in service • Must be obligated by September 30, 2024, and disbursed by September 30, 2029 $26.1 billion— Urbanized Area Formula (§ 5307)
• Apportioned to provide urbanized areas amounts necessary to receive 132% of 2018 operating expenses when combined with CARES Act and CRRSAA funds previously received. Urbanized area already exceeding the 132% cap receive an additional 25 percent of the urbanized area's 2018 operating costs.
• $1,467,770 for FTA oversight expenses.
S317.2 million - Rural Formula Program (§ 531 1)
• Includes $30 million for Tribal Formula Program
• Incudes $5 million for Tribal Competitive Program
• $6.35 million is available for the Rural Transit Assistance Program • Funds are apportioned based on amounts received under CARES Act and CRRSAA with states that received 150% of their 2018 rural operating expenses receiving an additional 5%; states between 140-150% receiving an additional 10%, and states at less than 140% receiving an additional 20%.
$100 million - Intercity Bus (§ 5311(f))
• Funds are apportioned to states and territories using FY 2020 Rural Formula proportions. • States/territories would provide grants to bus operators that partner with recipients and subrecipients of rural intercity bus services eligible for funding under § 5311(0 $50 million - Enhanced Mobility of Seniors and Individuals with Disabilities Formula (§ 5310) • Funds apportioned using the § 5310 formula in the same ratio as allocated for FY20
51.675 billion - Capital Investment Grants (§ 5309)
• $1.425 billion for New Starts and Core Capacity
o $1.25 billion to projects with existing Full funding Grant Agreements (FFGAs) that received allocations of FY19 or FY20 funds.
• Recipients with projects open for revenue service are not eligible
o $175 million to projects with existing FFGAs, not yet open for service, that received an allocation only prior to fiscal year 2019 Federal funds provided notwithstanding any calculated limits of federal assistance
• $250 million for Small Starts (§ 5309(h))
o Eligible recipients are any recipient with an allocation under § 5309(h) or with a project in the Small Starts project development phase
o Federal funds provided notwithstanding any calculated limits of federal assistance $2.2 billion — Competitive funding for § 5307 and § 5311 recipients and subrecipients that need additional assistance because of COVID
• FTA will publish a Notice of Funding Opportunity
• Project selections will be announced on FTA's website • Funds under this program will be available only for operating expenses • Recipients will be selected based on financial need. Eligible recipients will have expended at least 90% of their CARES Act funding.
• Amounts unobligated on September 30, 2023 will be available for obligation for any purpose eligible under §§ 5307/5311 until September 30, 2024 $25 million — Competitive Planning grants under § 5307
• FTA will publish a Notice of Funding Opportunity
• Funds will be made available for planning of public transportation associated with the restoration of services as the coronavirus public health emergency concludes.