American Rescue Plan Act
Second Tranche
Sidney Wilson,
Administrative Analyst
Presentation Purpose
Give notice of proposed projects under the American
Rescue Plan’s second tranche funding allocation.
AGENDA
• Program Overview
– General ARPA Overview
– Funding Allocation
• Eligible Expenditures
– First Tranche Expenditures
• Research Process
– Council Direction
– Community Input
• Project Recommendations
– Receive Council Feedback
Program Overview
• The American Rescue Plan Act of 2021 (“ARPA”) wassigned into law by President Biden on March 11, 2021 (P .L. 117-2)
• The purpose of the American Rescue Plan Act (ARPA) is to provide relief in response to the coronavirus (COVID-19).
• This law provides $1.9 trillion for continued COVID-19 response and recovery
• Section 9901 establishes the Coronavirus State & Local Fiscal Recovery Funds (SLFRF). Under this fund, $350 billion was designed for state, local, and Tribal governments across the country to support their response to and recovery from the COVID-19 public health emergency
Funding Allocation
• The Act specifies that each metropolitan city shall receive “an amount determined for the metropolitan city consistent with the formula under section 106(b) of the Housing and Community Development Act of 1974” (42 U.S.C. 5306(b))
• Coronavirus Local Fiscal Recovery Fund grants are, in essence, formula grants and under the formula, every municipal government is entitled to receive a calculated share of the $65.1 billion designated to metropolitan cites under SLFRF.
• California has received over $43 billion in combined recovery funds from the American Rescue Plan Act of 2021 to cover costs incurred between March 3, 2021, and December 31, 2024, to mitigate the impacts of the COVID-19 Pandemic, including $27 billion in SLFRF.
– Solano County received a direct federal funding allocation of $86,949,405
Funding Allocation
(Continued)
Total funds allocated to Vallejo: $25,727,736.00
• Local Allocation distributed in two payments:
– 50% in September 2021 – $12.86 Million
– 50% in June 2022 - $12.86 Million
Eligible Expenditures
Approved First Tranche
Expenditures
First Tranche
Expenditure Update
Second Tranche
Research Process
Council Direction
• Cover Needs!
• Community Involvement
– Virtual Presentation: 9/21
– In-Person Presentation: 9/27 &10/4
• Economic Development
– Long-Lasting Projects
– Wide-Ranging Projects
– Money back to Businesses
– Youth Focus
• Implementation of Strategic Plan
• Grant Management
Community Feedback
Suggested Category Allocation
Youth Services
Proposed Projects Funding
Early Learning Center
These funds will be used to open a new early learning
center and childcare services in Vallejo.
$450,000
School Property Maintenance
The funds earmarked for this project will be used for the rehabilitation or the demolition of school property
under the City’s ownership.
$1,000,000
Preschool Vouchers for Working
Parents
This project will use ARPA money to provide vouchers to families with preschool-aged children in Vallejo to
attend local preschools.
$100,000
Youth Services
$1.55 M
Broadband
Proposed Project Funding
Broadband Buildout
The funds are to be used for building out
broadband infrastructure in the city. The goal is to
extend fiber to the schools, anchor businesses,
lateral buildouts for the businesses, fiber to new
developments coming to the city. Provide WIFI
access in public gathering places like Vallejo
waterfront, major city parks, and Vallejo
Downtown. Provide free WIFI/broadband access
to our disadvantaged communities. This funding
may also be used for Infrastructure Investment &
Jobs Act grant matches.
$500,000
Broadband
$500 K
Revenue Loss
Proposed Projects Funding
Sacramento Street Apartments
This funding allocation would supplement the cost
the City has to repay ($2.6M) back to HUD due to
delays of the project and administrative errors.
$2,154,058
Parking Fund
This expenditure would address the Parking Fund as
it has a negative balance available for the FY 22-23
budget.
$1,263,383
Revenue Loss
$3,417,442
Public Health Response
Proposed Projects Funding
Purchase of Type 1 Fire Engine
This purchase is for the most common type of fire
truck in use today. Densely populated areas depend
on a Type 1 fire apparatus to efficiently maneuver to
the call and deploy an array of ladders to reach fires
in elevated buildings.
$875,000
Purchase of Type VI Brush Truck
This funding would purchase a truck capable of
responding to wildfires. The truck has the ability to
drive in rough terrain to respond to a fire or rescue.
$250,000
Public Health Response
$1,125,000
General Economic Response
General Economic
Response
$1,979,380
Proposed Projects Funding
Mural Program & Downtown
Clean-Up
This project would fund an upgrade to the marina
bathrooms to make them ADA compliant. We would
also partner with non-profit(s) to fund a mural program and downtown cleanup.
$856,000
Waterfront & Downtown Update
This funding will allow staff to make updates to the
Waterfront and Downtown specific plans.
$500,000
Support to Non-Profits
This allocation would allow the City to support Vallejo’s nonprofits such as Vallejo Community Access Television
and Transformation Village which is in need of new
beds.
$148,000
General Economic Response Cont.
General Economic
Response
$1,979,380
Proposed Projects Funding
Art Walk/Art Grants
This funding would allow the City to address the
funding request from the Culture and Arts
Commission.
$125,000
Downtown Lighting
An expenditure under this project will fund much-
needed lighting for Vallejo’s downtown areas.
$100,000
Costar Software
This project will allow our Economic Development
division to conduct more thorough research on
properties.
$50,380
Vallejo Specific Gift Cards
Funding directed toward the gift cards will allow the
City to provide monetary matches to stakeholders
who spend money in Vallejo.
$200,000
Public Sector Economic Response
Proposed Project Funding
Staff & Grant Software
Funding directed here will allow for the continuation of two ARPA-related positions and grant software which was
approved under the first tranche.
$924,609
Retention Program
These funds will be used as incentives and bonuses to
essential workers who were vital to the City’s operations during the COVID-19 pandemic.
$1,500,000
COVID-19 Delta Variant Coordination
These funds will be used as a continuation from the first tranche for a limited term employee to coordinate COVID- 19 communications, compliance, monitoring and tracking
for City employees.
$367,437
Comm Ops Transfer
Funding here will be earmarked to move the dispatcher
division from 111 Amador St.
$1,500,000
Public Sector
Economic
Response
$4,292,046
CONTACT(S)
Terrance Davis, Assistant City Manager
[email protected]
(707) 648-4301
285 Mare Island Way
Lease
Gillian Hayes—Assistant City Manager
Veronica Nebb—City Attorney
Agenda
• Site Location
• Project Background
• Proposed Lease Agreement terms
• Next steps
• Recommendation
Site Location
• 285 Mare Island Way
Leased Area
Background
• 2019, Tribe purchased the existing lease at 285 Mare Island Way – Dentist Building
• January 14, 2020, the Yocha Dehe Wintun Nation tribe
made a presentation to City Council outlining a vision for this location.
• Waterfront History Park-For over 10 years prior to the proposed lease, the City has been working on park
development
– Participatory budgeting funds for concept
design/construction. estimated ~$10 Million.
– Tribe is interested in funding Park design and
development. Without the Tribe’s participation, there is no identifiable funding source
• November 16, 2021-Tribe and City Council approved a
Letter of Intent outlining future terms of the lease
Lease Terms
• All terms of LOI included in proposed lease
• 35 year lease with four 5 year extensions-55 yrs total • Conceptual Project: Design, development, construction and operation of a tasting room, cultural center,
restaurant and associated uses
• Tribe to maintain premises and surrounding area
(sidewalks,etc.) CAM
• Up to $10 million to design/develop Waterfront History Park-rent credit
• Park Naming Rights subject to City Council & Tribal
Council approval
• Tribal language signs/interpretative-Walk through
history-public process
• Park to reflect site through history-Native to today
• Parking-200 spaces reserved for special events in
Lease Terms
• Fair Market Value based on appraisal approx. $114K per year ($2.85 sq ft)
– $1.80/sq ft LOI, fair market if not paying for Park
• Rent offsets = amt. of investment in Park over lease term (yp to $10M)
• City owns all improvements at lease end
Next Steps
• Execute Maintenance Agreement within 60 days
• Project and Park design will continue
• Entitlements submitted within 1 year
• CEQA
• City Council & Public Input – Entitlements, Design, Etc. • Project approval, building permits, construction
Recommendation
• ADOPT A RESOLUTION AUTHORIZING THE CITY
MANAGER TO SIGN A LEASE WITH THE YOCHA
DEHE WINTUN NATION FOR 35 YEARS WITH FOUR
5-YEAR OPTIONAL EXTENSIONS FOR THE
PROPERTY LOCATED AT 285 MARE ISLAND WAY,
VALLEJO, CA 94590 (APNS 0055 170 040 AND 0055
170 410) AFTER FINDING THE ACTION EXEMPT
FROM THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT PURSUANT TO GUIDELINES SECTION 15301
CONTACT(S)
Gillian Hayes—Assistant City Manager
[email protected]
City of Vallejo, Ca
Public Works Cost of Service Study
December 13, 2022
Agenda
►Introduction
►Background/Project History
►Objectives
►Study Methodology
►Summary Results/Recommendations
Background/Project History
►The City of Vallejo (City) completed a citywide user fee study in 2018/19. MGT completed that study.
►The City hired MGT in 2021 to conduct a user fee study update for the Public Works department.
►The analysis included fee-for-service activities within the Public Works department. Non-user fee related services were not analyzed (example: impact fees).
►The study utilized Fiscal Year 2021 adopted budget figures Objectives
► Develop a catalog of fees for the Public Works department. ► Define what it costs the department to provide fee-related services. ► Assess levels of current cost recovery and evaluate opportunities for adjustments
► Provide estimated revenue projections based on proposed adjustments
► Provide recommendations
► Ensure compliance with state law governing user fee cost recovery Study Methodology
The analysis to determine the cost of providing fee-for-service activities is based on two basic elements:
► Hourly rates of staff providing the services
► Average time required to provide the services
The product of the hourly rate calculation and the time spent yields the cost of providing the services.
Study Methodology Continued….
►Cost Calculation:
►Identify staff members involved in each fee service and the amount of time they spend providing that service
►Calculate direct labor & materials costs
►Calculate indirect costs
►Apply fully burdened hourly rates to average time spent to provide the service
►Costs are then annualized by incorporating annual volume figures for each fee category
Cost and Revenue Analysis Summary
► Surcharges of 3% for permit streamlining and 4% for technology add an estimated $27,848 in additional revenue annually based on the annual volume in FY21. This totals annual estimated revenue of $425,673 for flat fees within the public works department.
► The estimated annual revenues do not include revenues from percentage-of-cost based fees or deposit/time-based fees. ► The proposed fee structures were changed significantly from their existing structure. Several categories were added, deleted, consolidated or broken-down into sub-categories. These changes were made primarily with the customer in mind to increase overall user-friendliness of the fee schedule. Due to the proposed comprehensive changes in fee structure, fiscal impacts are only estimates.
Cost and Revenue Analysis Summary
Continued…
► Column A: Costs, user fee services
─ $396,325 is related to services for which the City charges fees. It is this $396,325 that is the focus of this study and represents the total potential for user fee-related revenues for the City. MGT calculates this cost based on cost to provide each service multiplied by the annual volume for that service that’s provided by City staff.
► Column B: Current Revenues
► Based on the current fee amounts charged multiplied by the annual activity, the City receives fee-related cost recovery in an amount equal to $378,528 and is experiencing an overall 96% cost recovery level ► Column C: Current Subsidy
─ The current subsidy is the difference between the current cost minus current revenues. Current fee levels recover 96% of full cost, leaving 4% or $17,797 to be funded by other funding sources. This subsidy represents an opportunity for an updated and more focused cost recovery effort by the City for fee-related services.
Cost and Revenue Analysis Summary
Continued…
►Column D: Recommended Cost Recovery
─ It is estimated that adoption of the recommended fees would increase cost recovery to $397,825. This would bring the overall cost recovery level up to 100%
►Column E: Recommended Increased Revenue
─ Assuming activity levels remain relatively static, approximately $19,243 in in additional cost recovery could be received by the City.
MGT Contacts
Ruben Rivas
831-227-3911
[email protected]
Compensation of the
Mayor and Council
Natalie Peterson, Assistant to
the City Manager
Background
• California Government Code
36516 authorizes a city to provide
its city council with an initial
salary of between $300 and
$1,000 per month (based on
population)
• Cities over 75,000 up to and
including 150,000 in population is
set up to $600
• Directly elected mayor can be
provided with compensation in
addition to what is received as a
council member (§36516.1)
Council’s Salary
Background
• 2009 – Council received it’s last
increase
– Mayor: $3,066.67
– Council: $1,166.67
Salary Study
Mayor Salary Council Salary Population
Vallejo $ 3,066.67 $ 1,166.67 126,090
Benicia $ 525.09 $ 393.59 28,158
Suisun $ 654.86 $ 654.86 29,459
Richmond $ 3,875.00 $ 1,402.50 110,051
Dixon $ 630.00 $ 535.50 20,106
Napa $ 2,870.00 $ 1,435.00 78,294
Fairfield $ 1,500.00 $ 1,300.00 116,544
Berkley $ 5,108.71 $ 3,224.58 123,065
Antioch $ 1,600.04 $ 1,600.04 111,468
Vacaville $ 829.00 $ 829.00 99,958
American Canyon $ 315.00 $ 315.00 20,256 Hercules $ 792.00 $ 792.00 26,090
Pinole $ 562.50 $ 562.50 19,343
Monthly Salary
2020 Federal Census Population
Council Salary Increase
Background
• According to the 2020 Federal
Census Vallejo’s population is
126,060
• Council can receive an increase if
5% per year since the date of the
last increase (Section 36516.5)
• Vallejo is a charter city and
therefore can specify who is
eligible to receive an adjusted
salary and when it can become
effective
Increase Amount
• A 60% increase would make the
monthly compensation $1,866.67
• Annual fiscal impact $85,524
• Fiscal impact for the remaining 6
months of FY 22-23: 42,762
Next Steps
If approved tonight:
• 12/13/22 – First Reading of the
Ordinance
• 12/20/22 – Second Reading of the
Ordinance
• 12/20/22 – Resolution to amend
the Salary Plan
CONTACT(S)
Terrance Davis, Assistant City
Manager (707) 648-4301
[email protected]