Title
Consider approving Resolution No. 2024-190 authorizing the reallocation of American Rescue Plan Act Grant Funds; and take appropriate action.
Body
REQUESTOR:
Finance, Fleet, and Facilities Department
BACKGROUND:
The American Rescue Plan Act (ARPA) of 2021 provided emergency grants to governments to support the response and recovery from the COVID-19 public health emergency. The City of Farmers Branch was awarded $11,956,459. The City Council approved ARPA budget allocations in September 2021 and reallocations in May 2024.
To date, the Farmers Branch has allocated the full $11,956,459 to eight projects under the categories of Negative Economic Impact, Administrative Costs, and Public Health (focused on supporting public safety and promoting healthier lifestyles to mitigate the spread of COVID-19). Two projects, the Justice Center Renovation and Joya Park, are not entirely complete as of September 2024.
DISCUSSION:
According to the U.S. Department of Treasury, ARPA funds must be contracted by December 31, 2024, with all obligations liquidated by December 31, 2026. Due to delays in getting architectural drawings and contractor bids for the detention area of the Justice Center Renovation, staff proposes reallocating the remaining funds from the Justice Center project to cover incurred costs, ensuring the full utilization of ARPA funds. Specifically, staff recommends reallocating funds to the eligible Branch Connection Phase Two Renovation, which has incurred costs currently being funded by the Parks Capital Improvement Program (CIP) instead of ARPA.
Following approval of the Fuel Tank purchase of $582,135.94 on tonight’s agenda (Agenda item N.1 Resolution No. 2024-191), approximately $150,000 will remain available for the Justice Center Renovation. To account for potential cost savings from architects and contractors, staff proposes reallocating an additional $250,000, bringing the total reallocation to $400,000 for the Branch Connection Renovation.
Additionally, as Signature Park Phase I (Joya) nears completion, $104,000 in available funds remain due to lower-than-expected costs. Staff recommends reallocating these funds to the Branch Connection project as well.
Currently, the Branch Connection Renovation project budget is $5,178,727 and is funded with $2,500,000 from ARPA, $2,000,000 from General Obligation Bonds, and $678,727 from the Parks Master Plan CIP fund. By reallocating $504,000 of ARPA funds ($400,000 from the Justice Center and $104,000 from Joya Park), ARPA funding for the Branch Connection project would increase to $3,004,000. This is just switching funding sources between Branch Connection and Justice Center. It doesn’t change the total project budgets. This ARPA reallocation would fully obligate the City’s ARPA award of $11,956,459, ensuring all funds are committed before the December 2024 deadline.
This proposed reallocation aligns with ARPA’s goals of enhancing public health, strengthening community connections, and preparing for future needs.
FISCAL IMPACT:
The $504,000 reallocation fully allocates all ARPA funds received.
DISTRICT:
Citywide
POSSIBLE COUNCIL ACTION:
1. I move to approve Resolution No. 2024-190 as presented.
2. I move to approve Resolution No. 2024-190 with modifications.
3. I move to table the issue for further study or take no action.
ATTACHMENT(S):
1. Resolution No. 2024-190
2. Presentation