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Home My WebLink About _ 4.6(d)--Adopt Resolution appropriating Park In-Lieu Funds for the Dr. MLK Center Remodel Project GI �" Y C� F � � �- ' � ° � � i � CITY OF REDDING �� REPORT TO THE CITY COUNCIL MEETING DATE: July 15, 2025 FROM: Travis Menne, Director of ITEM NO. 4.6(d} Community Services ***APPROVED BY*** e , -� -��H� � ,��..w� � �w�� ;+�°"'� � �.�� Trt�ves"[��i��e Lzrcc or�a#�t�tr7munity��rr=ice� �i/3{?r`2��5 tt;ve � �, SS P£ 7/�7/Zi�2,`+ �� . tmenne@cityofredding.org btippin@cityofredding.org SUBJECT: 4.6(d)--Adopt Resolution appropriating Park In-Lieu Funds for the Dr. Martin Luther King Jr. Center Remodel Pro�ect Recommendation Adopt Resolution approving and adopting the 1St Amendment to City Budget Resolution No. 2025-049 appropriating $50,000 of the City of Redding's (City) Park In-Lieu fund for the City's Dr. Martin Luther King Jr. Center Remodel Project. Fiscal Impact Community Services Department staff is reguesting to appropriate $50,000 in Park In-Lieu Southwest Quadrant fees for the Dr. Martin Luther King Jr. (MLK) Center Remodel Project (Project). Fee revenue is used to acquire necessary parkland, develop new parks, or increase the capacity of existing facilities. Preconstruction activities for the MLK Center project is an appropriate use of these funds. Alternative Action The City Council (Council) could decline to adopt the budget resolution for the remodel project, which would require the Community Services Department to find an alternate funding source to complete the remodel project, or provide staff with an alternate direction. Background/Analysis On March 15, 2022, Council approved an expenditure plan for the American Rescue Plan Act (ARPA), allocating $560,000 for upgrades and �nhancements to the MLK Center. These funds were designated for inodernizing the facility, with renovation plans aimed at updating both the interior and exterior to refleet th� vibrant activities that take place within the MLK Cent�r. The City contracted with RAD Studio Architect, Inc. (RAD Studio) of Redding to assist with the design. The original scope included interior upgrades such as new flooring, painting, and remode�ing of the MLK Center's library and of�ce spaces. For the exterior, enhancements Report to Redding City Council July 9, 2025 Re: 4.6(a')--Adopt Resolution appropriating Park In-Lieu Funds for the Dr. MLK Center Remodel Project Page 2 focused on creating a single-entry point for visitors, new HVAC, developing shaded outdoor program areas, and providing an overall aesthetic upgrade to welcome visitors. During the June 4, 2Q24 Council Meeting, a resolution was approved to redirect previously allocated ARPA funding to prioritize gavernment operations. The report presented detailed projections of budgets and anticipated expenditures throughout the ARPA program. Regarding the MLK Center, the report reflected an allocated budget of $560,000 and a projected expenditure of $125,000, leaving $435,000 to complete the remodel project. At the N�ovember 19, 2024, meeting, the Council adopted Resolution No. 2024-094 to reallocate unspent ARPA funds within the compliance period. Since the MLK Center remodel projeet was neither coinpleted nor fully encumbered, and no grants had been secured, there was a risk of the ARPA funding tiineline expiring, so the funds were reallocated. Staff could not complete the remodel project in time as the design process was extended to avoid expending funds on improvements that would require modification or raconstruction in the future as the rest of the MLK Center is improved. For example, a planned bathroom remodel would need to be undone in the future when modi�cations require American's with Disabilities Act- compliant iinprovements and an expansion. To avoid phasing issues, staff rescoped the agreement with RAD Studio to include the original scope as well as accessibility upgrades, ininor facility expansions, kitchen improvements and more. The revised remodel project scope represents a mastar plan that can ba accomplished in phases, ensuring funds ara spent wisely and in a sequential order. As a result, staff has been actively researching opportunities to secure additional grants to support this broader range of improv�ments at the MLK Cant�r. The original budget of$560,000, which was intended to fund the design and construction of the improvements, was ultimately red�uced by $394,160, leaving a remaining balance of$165,840 to be spent on the design. Because ARPA funding needed to be encumber�d by the end of 2024, staff was only able to fund the design contract with existing ARPA funds. Now, as the draft plans raquire multiple reviews and approvals to move toward construction, the remodel project requires a fundin�; source for the City's Public Works Engineering staff time required to review and complete the projact plans. Therefore, staff is requesting th� appropriation of $SO,Q00 to complete the development of the plan set. Environmental Review This action is not a project as defned under the California Environmental Quality Act (CEQA), and no further action is required. On December 6, 2022, Council found that the remodel project is categorically exempt from review under the CEQA G�uidelines, per Sections 15301(d) — Existing Facilities, 15302(c) — Replacement or Reconstruction, and 15303(d & e) - New Construction or Conversion of Existing Structures. Council Priority/City Manager Goals � Budget and Financial Management — "Achieve balanced and stable 10-year Financial Plans for all funds." � Government of the 21st Century — `Be relevant and proactive to the opportunities and challenges of today's residents and workforce. Anticipate the future to make better decisions today." Report to Redding City Council July 9, 2025 Re: 4.6(a')--Adopt Resolution appropriating Park In-Lieu Funds for the Dr. MLK Center Remodel Project Page 3 • Economic Development — "Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community." Attachments ^Budget Resolution Previous Staff Report - Mid Year Adjustment ARPA - March 10, 2022 Previous Staff Report- Modifications to ARPA - June 4, 2024 Previous Staff Report - Modifications to ARPA -November 19, 2024 RESOLUTION NO. 2025 - A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE lst AMENDMENT TO CITY BUDGET RESOLUTION NO. 2025-049 APPROPRIATING $50,000 IN CITY OF REDDING'S (CITY) PARK IN-LIEU FUNDS FOR THE CITY'S DR MARTIN LUTHER KING JR. CENTER REMODEL PROJECT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING THAT Budget Resolution No. 2025-049 be and is hereby amended as follows: FUND DNISION DESCRIPTION 1NCREASE DECREASE 151 1795 Parks In-Lieu �50,000 THAT account titles and numbers requiring adjustments by this Resolution are as follows: USE SOURCE OF FUNDS OF FiTNDS Increase(Decrease)Beginning Balance 151-0000-2910000-00000 Beginning Balance 50,000 Increase Expenditures 151-1795-7300004-SWEST Recreation Areas $ 50,000 Total $ 50,000 $ 50,000 THAT the purpose is to appropriate $50,000 of the City of Redding's (City) Park In-Lieu fund for the City's Dr. Martin Luther King Jr. Center Remodel Project. I HEREBY CERTIFY that the foregoing Resolution was introduced at a regular meeting of the City Council of the City of Redding on the 15th day of July, 2025 and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEIVIBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: JACK 1VIUNNS, Mayor ATTEST: FORIYI APPROVAL: SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney �, ,�� .��` CITY OF REDDING : � _ :�' REPORT TO THE CITY COUNCIL MEETING DATE: March 15, 2022 FROM: Greg Robinett, Finance ITEM NO. 9.10(b} Officer ***APPROVED BY*** �. �� n rt �.� zs.N,.�� „��„„�.�' .I�� 4 ��Q �Tl:d. � ��1C�]" , �%�/7d}�.� ,�.�...� �i N�a,Cii}�'�1��iat ��':�•ac�Glr $�a;. '�ReGrri4es t)alcck��° ?'1t1�7(�2. grobinett@cityofredding.org btippin@cityofredding.org SUBJECT: 9.10(b)--Consider Resolution approving mid-year budget adjustments including Budget Workshop amendments and Resolution approving American Rescue Plan Act (ARPA) ex enditure lan. Recommendation Authorize the following actions for the City of Redding: (1) Adopt Resolution approving and adopting the 31st Amendment to City Budget Resolution No. 2021-078 appropriating $2,272,250 for Fiscal Year 2021-22 and $2,601,690 for Fiscal Year 2022-23 for mid-year budget adjustments; and (2) Adopt Resolution approving and adopting the 32�'d Amendment to City Budget Resolution No. 2021-07$ appropriating $17,593,440 of ARPA funding for Fiscal Year 2021-22. Fiscal Impact The recommended changes will a11ow the General Fund to meet the City Council (Council) directive of maintaining a ten percent reserve. The other recommended changes will not reduce reserve levels below those required in the respective funds. Alternative Action The City Council could choose to reject the budget resolutions and request additional information or provide direction relative to recommended budget changes. Background/Analysis On February 17, 2022, the Council conducted a budget workshop (workshop), which included a presentation of the current state of the General Fund financial plans, and received staff recommendations regarding a short- and long-term expenditure plan regarding the newly identified available funding. The presentation included recommendations to changes in Sales Tax and Transient Occupancy Tax (TOT) that could fund new General Fund serviees. As part of this presentation, there was a separate discussion on ARPA funding. This staff report will identify some minor ehanges between funding mechanisms while maintaining the overall integrity of the enhancement to services proposed at the February 1'7, 2022, meeting. Report to Redding City Council March 10,2022 Re: 9.10(b)--Mid-Year BudgetAdjustments including ARPA &Budget workshop info Page 2 Revenues Sales Tax As discussed at the budget workshop, Sales Tax revenue through January 2022 has increased by $1,665,137 or 9.6 percent year over year and is $1,952,631 or 11.5 percent above budget projections. As a result of the performance of Sales Tax, staff is recommending a change of the projected Sa1es Tax revenue to $31,983,000 for Fiscal Year 2021-22 and $33,207,000 for Fiscal Year 2022-23. Staff projected these revenues by using the actual receipts through January and increasing the original budget projections by three percent for Sa1es Tax for a11 remaining periods. The City engages the services of MuniServices to help analyze and project Sales Tax. Staff recommendations are below the most recent projections provided from MuniServices for Sales Tax. Transient Occu�anc.�� Tax During the budget workshop, Transient Occupancy Tax (TOT) was also identified as a revenue performing above original budget projections. TOT through January 2022 has increased by $1,634,893 or 46.6 percent year over year and is $1,840,991 or 55.7 percent above budget projections. Due to the performance of TOT revenue, staff is recommending increasing original budget projections to $7,241,000 in Fiscal Year 2021-22 and $7,530,000 for Fiscal Year 2022- 23. Staff projected TOT revenue using actual receipts through January and increasing it by four percent for all remaining periods. Other Revenues Revenues in the Planning and Building Divisions continue to perform strongly and indicate a need for increased staffing. Staff is recommending increasing Building Division revenue projections in Fiscal Year 2022-23 by $68,700 to recognize the revenue performance and help the department align its staffing needs with the current workload demands. Staff is recommending increasing Planning Division revenue projections in Fiscal Year 2022-23 by $51,270 to recognize the performance of the revenues and help the department align staffing needs with the current workload demands. Additionally, General Fund is transferring $500,000 to the Airports Division to complete a concept and budget study for a potential new terminal at Redding Municipal Airport. Rollin Sg tock During the budget workshop, additional contributions to rolling stock were recommended for both the Police and Fire Departments. Rolling stock provides an account where funding can be placed in order to allow departments to meet future needs at the time in which they are identified. For the Police Departm�nt, staff recommends increasing the rolling stock contributions by $300,000 for Fiscal Year 2021-22 and $150,000 for Fiscal Year 2022-23. For the Fire Department, the increase is recommended for $500,000 in Fiscal Year 2022-23, which wi11 be utilized immediately to purchase a type 3 fire engine. This funding will help both departments better address short- and long-term needs in rolling stock. Report to Redding City Council March 10,2022 Re: 9.10(b)--Mid-Year BudgetAdjustments including ARPA &Budget workshop info Page 3 General Fund Expenditures There are two sets of recommendations, the first includes recommendations from the budget workshop on February 1'7, 2022, and the second includes changes that are similar to what is found in a typical mid-year budget request. The first chart includes budget changes from the budget workshop on February 17, 2022. Department Project 2021-22 2022-23 Non-De artmental Downtown Street Maintenance $ 100,000 Non-Departmental Economic Dewelopment - EDC Fundin 75,000 Non-Departmental Council Chambers Roof 300,000 Parks Gardener 86,980 Parks Nur Pon Fencing 60,000 Buildin & Code Enforcement Plans Examiner 88,460 Buildin & Code Enforcement 1/2 Time Clerk to Full Time 48,920 Planning Associate Planner 102,550 Fire - Pre�ntion Fire Prevention Specialist 84,360 Fire- Suppression PPE New Hire 110,000 Fire- Suppression Station 2 Generator Replacement 50,000 Fire- Su pression CAD to CAD Interface 200,000 Police -Administration PRA Tech Supervisor 100,350 Police - In�sti ations Executi�Assistant 80,940 Police- Field Operations Rifles & Suppressors 125,000 Total $ 185,000 $1,427,560 There are some areas that are slightly changed from the recommendations made during the budget workshop presentation. These changes are due either to projects that wi11 require future action by the Council or the fact that some recommendations are funded through ARPA. Due to restrictions within the ARPA guidelines and the associated timing concerns of the expendit�ures originally recommended within ARPA, staff made adjustments in order to comply with the desires of the Council. The ARPA section of this report will provide more explanation of the exact changes that are referenced. The following chart is a breakdown of the additional budget modifications request. Following the chart will be a brief discussion on these expenditures. Report to Redding City Council March 10,2022 Re: 9.10(b)--Mid-Year BudgetAdjustments including ARPA &Budget workshop info Page 4 Department Pro'ect 2021-22 2022-23 Non-Departmental League Of CA Cities Dues $ 800 $ 800 Non-De artmental Council Chamber U rades 250,520 Permit Center Computer Hardware<$5000 1,500 Building & Code Enforcement Operating Material/Supp 12,000 Buildin & Code Enforcement Books/Dues/Subscri tion 6,500 Buildin & Code Enforcement Trawel Expense 6,200 Building & Code Enforcement Employee Training 2,200 Buildin & Code Enforcement Vehicle 120,000 Police-Administration Specialized Services 4,000 Police- Field Operations Communication Expense 2,000 2,000 Police- Field Operations Officer E uip- Issued 5,000 Police- Field Operations Officer Equip- Replace 5,000 Police- Field O erations Employee Training 15,000 Police- Field Operations POST Pro ram 10,000 Police-Services Division Bureau of Identification 2,000 Animal Re ulation Animal Control Contract 4,500 Fire-Suppression Specialized Services 60,000 30,000 Fire-Suppression Special Equipment 9,500 Fire- Su ression S ecial E uipment 110,000 Fire-Suppression Special Equipment 6,000 Public Works - Engineering Computers 15,000 15,000 Public Works - En ineerin Misc E ui ment 48,000 Streets - General & Admin Truck 11,600 Streets - General & Admin Radios & Handhelds 90,330 Parks Mower 40,000 Recreation Operations & Materials 12,000 Total $849,650 $47,800 Non-Departmental is requesting additional funding in each fiscal year for dues for League of California City membership. The cost was slightly over the original budget projection and this adjustment covers the increased cost. Additionally, Non-Departmental is requesting an additional $250,520 for the Council Chambers audiovisual technology upgrades. The City Council Chambers space is roughly 20 years old with audiovisual eguipment that dates back to the opening of the facility. There have been minor upgrades as equipment failed over the last 10-15 years, but the City has not fully modernized the technology in the Chambers. As a result, the system is subject to unexpected failures and constant troubleshooting. In 2021, a consultant was hired by the City to conduct a study on the current system and provide staff with the design specifications for a new system that integrates all the needs of the various Boards and Commissions that utilize the space, as well as comply with the Americans with Disabilities Act. The upgrade of the audiovisual technology will cost roughly $450,000. The cost will ultimately be paid for with pass through fees the City receives as a result of proceeds calculated from the gross revenues of telecommunications payments from the local telecommunications provider. As the full cost has not yet been realized, the General Fund will need to front the cost of the upgrade, but will be repaid through the fees received quarterly from the telecommunications provider. Repayment is anticipated to occur within two years. The project is nearly ready to be released for bid, and is anticipated to be complete by the end of the year. Report to Redding City Council March 10,2022 Re: 9.10(b)--Mid-Year BudgetAdjustments including ARPA &Budget workshop info Page 5 The Development Services Department is requesting additional funding for Fiscal Year 2021-22 of $148,400. These requests include 3 vehicles that were originally approved as part of the biennial budget process,but an administrative error caused them to not be included in the budget. Additionally, the Development Services Department is requesting $8,400 for travel and training to ensure that staff is attending important training that was recently announced. Finally, the department is requesting $13,500 to purchase hardware for a customer self-service kiosk and to begin a migration of records to be permanently moved from an in-house software program to Laserfiche. The Police Department is requesting $43,000 in Fiscal Year 2021-22 and $2,000 in Fiscal Year 2022-23. This funding includes $18,000 in Fiscal Year 2021-22 and $2,000 in Fiscal Year 2022- 23 for additional costs associated with the new Police Officers that will be hired by the department including background checks, polygraph tests, communication expenses, equipment, and finger printing. Additionally, the department is requesting $25,000 to help complete the back log of employee training, including POST training, that occurred as a result of the impacts of COVID-19 on access and availability to training. The Fire Department is requesting $185,500 in Fiscal Year 2021-22 and $30,000 in Fiscal Year 2022-23. This funding includes $60,000 in Fiscal Year 2021-22 and $30,000 in Fiscal Year 2022-23 for a new Emergency Reporting System software. The company that supplies the software that is currently in use is being purchased by another entity; this precipitated the Fire Department staff to evaluate comparable options as the new company will be charging an increased fee. The increased fee in Fiscal Year 2021-22 includes implementation costs of the new software as well as the final annual cost of the previous software. Additionally, the Fire Department is requesting $125,500 of special equipment funding. This incl�udes costs of new foam that is required in California due to a ban of firefighting foam that contains per- and polyfluoroalkyl substances (PFAS) effective January l, 2022. This funding also includes purchasing automated external defibrillators (AEDs), new wildland personal protective eguipment (PPE), electric fans (E-fans),jaws of life, and EMS Bags. The Public Works Department is requesting $164,930 in Fiscal Year 2021-22 and $25,000 in Fiscal Year 2022-23. This funding includes $15,000 per year to replace computer hardware that is struggling to meet the demands of the department. Also included in the reguest is $48,000 to replace a Trimble SS — 3" Robotic Total Station which replaces an existing survey station and will increase efficiencies within the Engineering Division. The Streets Division has two reguests included within Fiscal Year 2021-22, the first for its component of a bucket truck that was purchased with the ET-USA Division to share costs proportional to the use of the asset, and finally $90,330 to purchase radio equipment that will be compatible with the new radio system the City is in the process of completing. The Community Services Department is requesting $52,000 in Fiscal Year 2021-22. The first request is for $40,000 in the Parks Division to replace a mower that recently had an engine failure. The second request is for the Recreation Division to assist in attracting applicants who will assist with required certification trainings such as CPR, First Aid, Basic Water Rescue, and lifeguarding. Report to Redding City Council March 10,2022 Re: 9.10(b)--Mid-Year BudgetAdjustments including ARPA &Budget workshop info Page 6 Other Fund Expenditures Other Fund Expenditures have two components of recominendations as well. The first contains the recommendations from the budget workshop on February 17, 2022. The second contains changes similar to a typical mid-year budget request. De pa rtme nt Proj e ct 2022-23 Airports New Terminal Concept Study $ 500,000 Fleet Maintenance Mechanic I 83,120 Building Maintenance & Construction Building Facilities Mechanic 95,700 Total $ 678,820 The above changes were approved in concept as part of the budget workshop on February 1'7, 2022. The Airport Division funding will come from a transfer from the General Fund to provide funding for the new terminal concept study. This is due to the increase in commercial flights at the Redding Municipal Airport which is causing capacity issues within the current terminal. As air service continues to expand and new opportunities arise, it will be important to begin to forecast the needs of the Redding Municipal Airport. This project will provide funding to begin to assess those needs and position the Redding Municipal Airport to find grant opportunities in the future to fund the future terminal needs that may be identified. The other two requests provide new staff positions to internal service funds to assist in meeting various needs in the F1eet and Building Maintenance Divisions. These changes and other previous changes approved by the Council require a change to the allocations of various internal service funds. The allocations of internal service funds provide funding to these identi�ed funds to perform services for the entire City. The allocation changes will be broken down after the other budget modification requests. Following is a chart of additional budget change requests. De pa rtm e nt P roj e ct 2021-22 Electric - Power Resource Group CT Misc Material/Suppl $ 150,000 Electric - Distribution System Group Admin & Gen Consultants 100,000 Electric - Distribution S stem Grou Admin & Gen Recruitin 100,000 Electric - Ener Services Transportation Electrification 184,100 Field Service Meter Reading Division Specialized Services/Technical 250,000 Solid Waste Transfer Station 60,000 Solid Waste Other Equipment 215,000 Information Technolo O�ice E ui ment/Re airs 5,000 Information Technolo Operatin materials/supplies 100,000 Information Technology Computer Hardware <$5000 3,500 Buildin Maintenance & Construction Vehicle 65,000 Communications Division Communication Expense 5,000 Total $ 1,237,600 Redding Electric Utility (REU) is requesting increases totaling $534,100 for a variety of projects including some unanticipated emergency backup power system repairs, a consultant for the Strategic Modernization Project, consulting services for recruitment of a number of vacant positions within REU, and providing additional funding for the transportation electrification. The Field Services Division is requesting an increase of $250,000 to cover on-call metering services due to vacancies occurring at the meter shop. Report to Redding City Council March 10,2022 Re: 9.10(b)--Mid-Year BudgetAdjustments including ARPA &Budget workshop info Page 7 The Solid Waste Division is requesting $275,000 which includes the purchase of handhelds that will be compatible with the City's new radio system and consultant costs to update the Facility Master Plan, which plans for solutions to space constraints and expansion needs at the Transfer Station. The Information Technology Department is requesting budget changes of $113,500 which includes hardware costs for new employees, additional propane costs for some cominunication equipment, and costs to cover an unanticipated cyber security event including costs for the unmediate response and enhancelnents as a result of the breach. The Building Maintenance Division is requesting $65,000 for a new F-350 truck which will replace an older asset which needs costly repairs. This wi11 also help ensure the division has the proper vehicles available with the addition of a new staff inember as mentioned above. The Fleet Maintenance Division allocation is being recommended to increase by $293,460 in Fiscal Year 2022-23 to provide funding for both the budget modifications that were approved by the Council and maintaining the necessary cash reserve. Of this increased allocation, $60,920 is attributable to the General Fund. The Building Maintenance Division allocation is being recommended to increase by $124,920 in Fiscal Year 2022-23 to provide funding for both the budget modifications approved by the Council and maintaining the necessary cash reserve. Of the increased allocation, $88,200 is attributable to the General Fund. ARPA Expenditure P1an At the budget workshop on February 17, 2022, staff made a number of recommendations to the Council regarding the ARPA funding. This section of the report will summarize the information presented at the workshop in the chart below, which includes a modification being recommended by staff. These modifications will be discussed below the chart. Cate o Descri tion Amount Res ondin to Public Health& Economic Im acts Non-Profit Assistance $ 700,000 Responding to Public Health& Economic Impacts South City Park Infrastructure 3,000,000 Respondin to Public Health& Economic Impacts MLK Center up rades &enhancements 560,000 Res ondin to Public Health& Economic Impacts Sports Scholarships for underprivile ed outh 100,000 Respondin to Public Health& Economic Impacts Fi�Police Officers to create an ei hth beat 1,965,150 Res ondin to Public Health& Economic Im acts COVID Tests and other andemic related ex enses 195,000 Water and Sewer Infrastructure Storm Drain U rades 2,000,000 Broadband Infrastructure Citywide Backbone Fiber Ring 4,000,000 Provision of Go�rnment Services Stiilwater Business Park Infrastructure 2,500,000 Provision of Go�rnment Ser�nces Four Police Officers Park Ran ers 1,263,290 Provision of Go�rnment Services Street Maintenance 1,000,000 Provision of Go�rnment Services Youth Pro rammin 310,000 Total $17,593,440 The only modification that is being recommended is to move the funding for the additional four Police Officers for Park Rang�rs to ARPA funding for the first two years, and reducing the funding associated with the five Police Officers on the City's eighth beat to two years. The funding with the eighth beat is being reduced to two years due to concerns over the Treasury Department's de�nition o�obligation. Due to the flexibility within ARPA, staff is recommending Report to Redding City Council March 10,2022 Re: 9.10(b)--Mid-Year BudgetAdjustments including ARPA &Budget workshop info Page S absorbing those final years of the eighth beat into the City of Redding General Fund Ten-Year Plan and utilizing ARPA funding that is currently available for the Provision of Government Services category in the first two years to fund the Park Rangers unit. General Fund 10-Year Plan The changes recommended throughout this report are included in the attached updated General Fund Ten-Year Plan. The General Fund Ten-Year Plan continues to meet the required ten percent reserve in a11 years as required by Council policy. As mentioned previously, there are some changes that were recommended at the budget workshop on February 17, 2022, that will require future action by the Council in order to adopt them, and the ten-year plan will be changed as those iteins are brought to the Council for approval. The biggest of these itelns is the future bond issuance for Fire Department fire station needs. The future bond is expected to increase expenditures by approximately $1 million dollars per year in order to budget the expected bond payments after the bond is issued. Council Priority/City Manage� Goals • Budget and Financial Management — "Achieve balanced and stable 10-year Financial Plans for all funds." • Public Safety — "Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding." • Communication and Transparency — "Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust." • Government of the 21st Century — `Be relevant and proactive to the opportunities and challenges of today's residents and workforce. Anticipate the future to make better decisions today." � Economic Development — "Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community." Attachments Ten Year Plan 21-22 & 22-23 Updated Mid Year& ARPA March 15, 2022 Resolution - Mid-year budget Resolution - American Rescue Plan Act (ARPA) GI �" Y C� F � � �- ' � ° � � i � CITY OF REDDING �� REPORT TO THE CITY COUNCIL MEETING DATE: June 4,2024 FROM: Greg Robinett, Director of ITEM NO. 4.10(c) Finance/City Treasurer ***APPROVED BY*** �� ` � i��* c3 a t,I3 � tt�e �^ins�nci,'Catyr`�'ri�sure,r 5,��8r'2�)2� t�S�B c1 �, 5S �F 5,�?�/�Q�v4 grobinett@cityofredding.org btippin@cityofredding.org SUBJECT: 4.10(c)--Consider modification to American Rescue Plan Act Funding usage Recommendation Approve the following actions: (1) Adopt Resolution approving and adopting the 43`d Amendment to City of Redding Budget Resolution No. 2023-060 re-appropriating available American 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) A�uthorize City Manager to allocate funds and approve release of request for proposals for Microsoft Office 365 Implementation after completion of fu11 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 P1an 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 additional details or provide alternative direetion for use of the ARPA funds. Background/Analysis 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 29,2024 Re: 4.10(c)--Consider modifications to American Rescue Plan Act(ARPA) Funding Page 2 Project Budget Uti 1 i ty Assi stance 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 C�C/RTC 73,280 Block 7lnfrastructure 2,407,730 Police Vehicle 1,000,000 Genera) 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 fmancial 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 maximize 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 expendit�ure through the end of the program. Report to Redding City Council May 29,2024 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 7 Infrastructure 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 1VIay 21, 2024. There are three items that the ARPA funding wi11 be re- appropriated to: 1. $500,000 will be used to do sidewalk repairs on the most critieal 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 ariginally contributed $40,000 in January of 2023 towards the purchase of the scoreboard. Report to Redding City Council May 29,2024 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 In�ormation 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 result of utilizing the services provided by Microsoft Office 365. Authorizing the City Manager to approve the budget modification request and release of the Request for Proposals (RFP) for the unplementation 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 will not be supported by Microsoft and will not receive security patches. EnviNonmental Review This is not a project defined under the California Environmental Quality Act, and no further action is required. Council Priority/City Manager 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 � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: November 19, 2024 FROM: Greg Robinett, Director of ITElVI NO. 4.10(a) Finance/City Treasurer ***APPROVED BY*** � �� ;t � �s� �r s t,�7' tc��, � tty�"��^��tzr�e ;; ' t� 1'�'',.ft?�d� �~�; tp�1t�,C`i ��i t� 1�,'�_�,''�{}� t robinett cit of�'��i or bti in ci ofreddin or g @ Y g• g PP @, �tY g• g SUBJECT: t��0(a)--Consider m��'�cation to American Rescue Plan Act Funding Allocations s„��` ,� t� , Recommendatiort f ` ' , , �� ,,� Adopti Resolution approving �� doptiing th� ��7t� Amendmenti to City of Redding Budge� Resolution No. 2023-060 re-a��'�ipriating ava��e American Rescue Plan Act funding from various projects which are not ��ected to be ��jended��r encumbered in the appropriate time frame and moved to fund City ��`��ddln��e De��;�t, Park Rangers through November 2026 for fiscal year 2024-25. �� ' f� � , Fiscal Impact r, t t There is no impact �o the General Funt� �� l�,;s��tion wo�� ove ��rican Rescue Plan Ac� (ARPA) funding made available frorn ��c�irecti�� ,��;��alloc�t '� ARPA funding due to priorities of government operations. "�"�� '' '� .�>> ' }, Alte�native Action �� , }� t City Council (Council) could request additional detal��;��ernative direction for use of the ARPA funds. s � :°. Backg�ound/AnaZysis The City of Redding (City) received two equal tranches of ARPA funds in May of 2021 and 2022 totaling approximately $18.7 million. Council, on multiple occasions, has adopted and modified this funding over the years. Many of the current projects have been fully expended or expect to be fu11y encumbered and allocated to meet ARPA specifications. ARPA funds require encumbering the funds by December 31, 2024, and to fully expend those funds within two years of that date by December 31, 2026. Report to Redding City Council November 13,2024 Re: 4.10(a)--Consider modifications to American Rescue Plan Act(ARPA)Funding Page 2 Below is a table showing the current budget with forecasted expenses, encumbrances through December 31, 2024, and the recommended adjustments. Projected Expense& Encumbered thru Project Budget 12/31/24 Adjustment UtilityAssistance 1,026,720 1,026,720 - Youth Programming 310,000 65,270 244,730 Street Maintenance 1,000,000 1,000,000 - Police Park Rangers 3,263,290 4,133,500 (870,210) Storm Drain Upgrades 2,000,000 2,000,000 - COVID Expenses 12,000 9,760 2,240 Police 8th Beat ' '' ��0 2,387,240 160,910 Sports Scholarshi�� 15,�� ,: 15,000 - MLK Center Up ��„�'� 560,OOt�} �, 165,840 394,160 South City Par� �;,;?�� 92,270 s= 92,270 - Non-Profit As��nce 700,OOC� ,,,' 700,000 - Riverfront Sp��c Plan 1,250,000 "'` 1,233,790 16,210 Youth CLC/RTC ,,;s��,, 73,280 21,320 51,960 „ Block 7lnfrastruc�� ,.., ��07,730 � �„,,, 2,407,730 - � Police Vehicles 3 � �,au�.;�00,� ��z?,1,000,000 - General Fund Facilities 75�„��'� � 750,000 - Fire Alerting System 1,OQ��00 `�;000,000 - Tiger Field Scoreboard 1��I00 ,,,;' «'� 100, �? - Sidewalk Repairs 50�� ' 5��, - Whistle Stop Park 85,O�j i; ��,�C�� "' _ �.,.., Total 18,693,440 ,; �,��'�93,440 s ';� - 4t S t 3 Staff has analyzed and determined the fo,��,�rojects sh��'be n��•fied in order to ensure that the available ARPA funding is ful��end�r��,ad e�,��red b��e December 31, 2024. ,; � , EnvironmentalReview � � �`� ,� �� .�.�� This is not a project defined under the California Environmer�'��ct, and no further action is required. � F y , s'�;� , °�" Council Prio�ity/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 RESOLUTION NO. 2024- A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 67��H AMENDMENT TO CTTI' BUDGET RESOLU�TION NO. 2023-060 RE- APPROPRIATING $8'70,240 OF AIVIERICAN RESCUE PLAN ACT (ARPA) FUNDING FOR POLICE PARK RANGERS FOR FISCAL YEAR 2024-25 BE IT RESOL VED B Y THE CITY COUNCIL OF THE CITY OF REDDING THAT Budget Resolution No. 2023-060 be and is hereby amended as follows: FUND DIVISIO� ' '��2IPTION� INCREASE DECREASE 101 1402 � Poli��eld Operations $8'70,210 101 109�:, � ' Non-D��,mental $312,900 101 14��, �� Police—��d Operations $160,910 101 1��`' Parks , ; $394,160 383 3�� Risk—��er's Compensation $2,240 y x;9 s� THAT account t�� ers re��ustments by this Resolution are as follows: ,��,... i��;` ' �� i USE OF SOURCE OF 1 " , �'s<' � ' ' FUNDS FUNDS � Increase(Decrease)Revenue 'f �� 101-1402-3600402-00000 ��,��'�„��;at Re��t�� $ (160,910} 383-3831-3604902-00000 ` ��;�;�'��OVID��ue '"; s (2,240) 101-1711-3608602-00000 ART'A ML��' �evenue (394,160) 101-1099-3600104-00000 ARPA R.� ��ificRevenue (16,210) 10l-1�099-3600102-00000 ARPA;"�'�t�;��evenue � (296,690) 101-1402-3600403-00000 AI��;��l'I��k Rangers��iue � � 870,210 , �_� �� {"' � � s Increase(Decrease)Expenditures �� ' 101-1099-6000714-00000 ARPA-Youth Programming ,� $ ��0) 383-3831-6000726-00000 ARPA-COVID Expenses � , ��;�40) 101-1402-6000728-00000 ARPA-8th Beat �,,�, " ��°' (1b0,910) 101-]7l 1-6000732-00000 ARPA-MLK Cente�,`��grad� ' v ='�"``'�� (394,160) 10l-]�099-6000712-00000 ARPA-Riverfront S'�"��',��{�"`� �� (16,210) 101-1099-60007]0-00000 ARPA-Youth CLC/RTC � (51,960) 101-1402-6000718-00000 ARPA-Police Park Rangers 870,210 Total $ - $ - THAT the purpose is to re-appropriate $$70,240 of American Reseue Plan Act (ARPA) funding for Police Park Rangers for fiscal year 2024 25. I HEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting of the City Council of the City of Redding on the 19th day of November, 2024, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEiYIBERS: ABSENT: COUNCIL MEIVIBERS: ABSTAIN: COUNCIL MEMBERS: s TENESSA AUDETTE,Mayor t � } ATTEST: „� FORM APPROVAL: , ", , 's , , SHARLEN�'��PTON, City Clerk '�� CHRISTIAN M. CURTIS, City Attorney �. ,,, , ;s � l�} t 1 S � ,,..}�W.. f�'�' V l; J j t t 1 / �.t l } 1 1 ' } '�',,ry � { l 1 Ula,�.,i.. t 4 l'.: � °1 ! j �. y �., �5`• t . ,t:. t �ll t u� l :) �, t f�s,-� a t � } t;� t��' � s 5 s'' s: ; �,