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Home My WebLink About _ 4.10(c)--Consider modifications to American Rescue Plan Act (ARPA) Funding � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: June 4,2024 FROM: Greg Robinett, Director of ITElVI NO. 4.10(c) Finance/City Treasurer ***APPROVED BY*** � � � cs,z cr i t,S�' Fcrs , 'it�attei:L'ity"I"��rres 5`k�;?(i'� t�trE� , tiS �:Y .��`?�/?C}?, grobinett@cityofredding.org btippin@cityofredding.org SUBJECT: 4.10(c)--Consider modification to Ameriean Reseue Plan Act Funding usage Recommendation Approve the following actions: (1) Adopt Resolution approving and adopting the 43rd Amendment to City of Redding Budget Resolution No. 2023-060 re-appropriating available Ameriean Rescue Plan Act funding from various projects which are not expected to be expended or encumbered in the appropriate time frame and moved to fund a scoreboard at Tiger Field and various sidewalk repairs; and (2) Authorize City Manager to allocate funds and approve release of request for proposals for Microsoft Office 365 Implementation after completion of full fiscal analysis of impacts to the City's General Fund in an amount not to exceed $600,000 total with$200,000 coming from the City's General Fund utilizing American Rescue Plan Act funding. Fiscal Impact There is no impact to the General Fund as this action would move American Rescue Plan Act (ARPA) funding made available from redirecting previously allocated ARPA due to priorities of government operations. Alternative Action City Council could request addi�ianal details or provide al�ernative direc�ion for use of the ARPA funds. Backg�ound/AnaZysis The City of Redding (City) received two equal tranches of ARPA funds in May of 2021 and 2022 approximately $18.7 million. Council on multiple occasions has adopted and modified this funding over the years. Below is a table that captures the currently budgeted ARPA projects. Report to Redding City Council May 29,Z024 Re: 4.10(c)--Consider modifications to American Rescue Plan Act(ARPA)Funding Page 2 Project Budget Uti I ity Ass i sta n ce 1,026,720 Youth Programming 310,000 Street Maintenance 1,000,000 Police Park Rangers 3,263,290 Storm Drain Upgrades 2,000,000 COVID Expenses 195,000 Police 8th Beat 2,965,150 Sports Scholarships 100,000 MLK Center Upgrades 560,000 South City Park 92,270 Non Profit Assistance 700,000 Riverfront Specific Plan 1,250,000 Youth CLC/RTC 73,280 Block 7 Infrastructure 2,407,730 Police Vehicle 1,000,000 General Fund Facilities 750,000 Fire Alerting System 1,000,000 Total 18,693,440 Of the projects currently allocated many of the projects have been fully expended or expect to be fully encumbered and allocated to meet ARPA specifications. ARPA funds require encumbering the funds by December 31, 2024, and fully expend those funds within two years of that date by December 31, 2026. At the Council meeting on May 21, 2024, there was a discussion regarding the General Fund future revenue sources and potential cuts to future services. It is not feasible given current revenue projections to expect the City to maintain a strong financial position without modification to future expenditure plans. At this meeting, a tentative plan was presented to modify the future service and staffing levels of the City. Part of the changes presented were modifications to ARPA funds. The below table attempts to estimate future costs of each program to determine potential available funding. Staff is trying to maxilnize the available ARPA funding by encumbering and expending within the required timelines. Further discussion is outlined below on some specific items but staff expects Council to potentially move a variety of monies around in the coming months to maximize the use of the available ARPA funds. Below is the current projected budget to forecasted expenditure through the end of the program. Report to Redding City Council May 29,Z024 Re: 4.10(c)--Consider modifications to American Rescue Plan Act(ARPA)Funding Page 3 Project Budget Projected Variance UtilityAssistance 1,026,720 1,026,720 - Youth Programming 310,000 75,000 235,000 Street Maintenance 1,000,000 999,930 70 Police Park Rangers 3,263,290 2,831,190 432,100 Storm Drain Upgrades 2,000,000 2,000,000 - COVID Expenses 195,000 12,000 183,000 Police 8th Beat 2,965,150 2,546,280 418,870 Sports Scholarships 100,000 20,000 80,000 MLK Center Upgrades 560,000 125,000 435,000 South City Park 92,270 92,250 20 Non Profit Assistance 700,000 700,000 - Riverfront Specific Plan 1,250,000 1,250,000 - Youth CLC/RTC 73,280 73,280 - Block 7lnfrastructure 2,407,730 2,407,730 - Police Vehicle 1,000,000 1,000,000 - General Fund Facilities 750,000 750,000 - Fire Alerting System 1,000,000 1,000,000 - Total 18,693,440 16,909,380 1,'784,060 The above shows potentially upwards of$1.8 million available for re-appropriation. The largest part of this is the modification of ending the Park Rangers & Police 8th Beat positions at the end of Fiscal Year 2024-25 and projected expenses in the above chart reflect this. Originally, the adopted ARPA plan was to utilize ARPA funds through Fiscal Year 2026-27. With the changes to General Fund forecasted revenues and the clear need to cut services it is recommended to end this program earlier in order to allow for attrition and utilization of ARPA funds through Fiscal Year 2024-25. Another project that shows potential savings is the Dr. Martin Luther King Jr. (MLK) Center Upgrades. Staff is currently working to obtain additional grants to fund a larger set of improvements at the MLK Center. Depending on the timing of these grants and potential availability, staff expects to either utilize these funds or potentially free these funds up if additional grants cannot be secured in time. At the conclusion of analyzing potential grant opportunities and the scope of the project, staff will return to Council if necessary to modify the ARPA funding associated with this project. Additionally, other items on this list will come back to Council for modification if they are unable to be encumbered and/or spent on the required timelines. The attached budget resolution incorporates the changes to ARPA funding as discussed at the Council meeting on May 21, 2024. There are three items that the ARPA funding will be re- appropriated to: l. $500,000 wi11 be used to do sidewalk repairs on the most critical issues throughout the City. 2. $100,000 will be used to aide in the purchase of a new scoreboard at Tiger Field. The City had originally contributed $40,000 in January of 2023 towards the purchase of the scoreboard. Report to Redding City Council May 29,Z024 Re: 4.10(c)--Consider modifications to American Rescue Plan Act(ARPA)Funding Page 4 3. Microsoft Office 365 is expected to cost around $500,000-$600,000 for the implementation costs with approximately $500,000 per year depending upon the services selected by the City. The General Fund is responsible to 30-40 percent of the cost. The Information Technology Department is an internal service fund and as such the remaining costs will be allocated based on usage to the other City departments and funds. The Information Technology Department is working on finalizing the specifications for implementation costs and annual costs with offsetting savings from certain services which can be eliminated as a resu]t of utilizing the services provided by 1Vlicrosoft Office 365. Authorizing the City Manager to approve the budget modification request and release of the Request for Proposals (RFP) for the implementation services and annual licensing services will allow the City to finalize the analysis. This wi11 allow for an accurate budget allocation and enable the City to start towards budgeting and releasing the RFP for this important shift in the use of Microsoft Office products. In October 2025 the current versions of Microsoft Office utilized by the City will begin to be unsupported by Microsoft. This means that they wi11 not be supported by Microsoft and wi11 not receive security patches. Environmental Review This is not a project defined under the California Environmental Quality Act, and no further action is required. Council Priority/City ManageN Goals • Budget and Financial Management—"Achieve balanced and stable Ten-Year Financial Plans for all funds." • Communication and Transparency — "Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust." Attachments ^Resolution RESOLiJTION NO. 2024- A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 43RD AMENDMENT TO CTTI' BUDGET RESOLU�TION NO. 2023-060 RE- APPROPRIATING $600,000 OF AIVIERICAN RESCUE PLAN ACT (ARPA) FUNDING FOR TIGER FIELD SCOREBOARD AND VARIOUS SIDEWALK REPAIRS FOR FISCAL YEAR 2023-24 BE�T RESOL VE�BY THE CITY COUNCIL OF THE CITY OF RE�DING THAT Budget Resolution No. 2023-060 be and is hereby amended as follows: FUND DIVISION DESCRIPTION INCREASE DECREASE 1 Ol 1099 Non-Departmental $100,000 101 1631 Streets—Capital $500,000 101 1402 Police—Field Operations $417,000 383 3831 Risk—Worker's Compensation $183,000 THAT account titles and numbers requiring adjustments by this Resolution are as follows: USE SOURCE OF FUNDS OF FUNDS Increase (Decrease)Revenue 101-1402-3600402-00000 ARPA 8th Beat Revenue (417,000} 383-3831-3604902-00000 ARPA-COVID Revenue (183,000) 101-1099-3607101-00000 General Government Fed Capital 100,000 101-1402-3600402-00000 Streets Federal Capital 500,000 Increase (Decrease)Expenditures 101-1402-6000'728-00000 ARPA-Police 8th Beat $ (417,000) 383-3831-6000'726-00000 ARPA-COVID Expenses $ (183,000) 101-1099-6000'742-00000 ARPA-Tiger Field Scoreboard $ 100,000 101-1631-6000'744-00000 ARPA- SidewalkRepairs $ 500,000 TotaZ $ - $ - THAT the purpose is to re-appropriate $600,000 of American Rescue Plan Act (ARPA) funding for Tiger Field Scoreboard and various sidewalk repairs for fiscal year 2023-24. I BEREBY CERTIFY that the foregoing Resolution was introduced at a regular meeting of the City Council of the City of Redding on the 4th day of June, 2024, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEiYIBERS: ABSENT: COUNCIL MEIVIBERS: ABSTAIN: COUNCIL MEMBERS: TENESSA AUDETTE,Mayor ATTEST: FORIVI APPROVAL: SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney