Title
Resolution to Approve the Reallocation of American Rescue Plan Act (ARPA) Funds
Memorandum
This resolution seeks approval to reallocate $500,000.00 of American Rescue Plan funding.
In 2021, the City of Ann Arbor was informed that it would be awarded $24,182,630.00 in federal American Rescue Plan Act funds. Following the notice, City Council directed the City Administrator to prepare a plan for allocating the funds. On October 1, 2021 the City Administrator communicated to Council potential eligible projects and recommended a public engagement campaign to help prioritize funds.
On October 18, 2021, City Council adopted #R-21-396, which directed the public engagement campaign and directed the City Administrator to provide a final allocation plan by March 1, 2022. Staff engaged in a robust public engagement campaign in January and February of 2022, which resulted in more than 250 attendees at virtual town halls and more than 2,500 participants in an online survey.
On February 25, 2022, the City Administrator provided a report on the outcome of the public engagement campaign and the final recommendations for Council’s consideration. Subsequently, the City Council approved resolution #R-22-096, which directed final funding allocations/projects. A Community and Law Enforcement Data Platform was allocated $500,000.00 with this action.
Requirements of the award include obligation of the funds in total by December 31, 2026. As Safety Services moves toward a plan for dispatch services, including the use of partnerships, it has become apparent that we will be unable to efficiently and effectively spend the awarded funds on this project in time to meet the required obligation deadline.
Staff is therefore recommending a reallocation of the funds allocated toward this effort to the procurement of an ambulance to be operated by the Ann Arbor Fire Department with the remaining balance, approximately $200,000.00, to be allocated toward downtown service improvements.
Since June 6, 2022, the City of Ann Arbor Fire Department (AAFD) has been staffing a Huron Valley Ambulance (HVA) basic life support ambulance as part of a trial program. This has allowed AAFD to transport patients when HVA has no ambulances available. As of November 15, 2022, this unit has transported twenty-six (26) patients. This transport capability has not been overly burdensome nor detracted from response to fire incidents. In fact, being able to transport patients has allowed fire apparatus to clear incidents sooner and become available for additional calls for service. The trial with HVA allowed AAFD the ability to proof of concept transport capability. However, numerous factors during this trial have demonstrated that this HVA program is not sustainable indefinitely.
Based on this trial, it is recommended that the City of Ann Arbor become independently licensed as a basic life support transport agency and purchase its own fire department ambulance. This will require a capital investment for an ambulance and associated equipment. Due to the low anticipated volume of transports, low payer rate, and third-party vendor costs expenses, efforts to pursue cost recovery would exceed revenue. If transports increased to closer to one hundred (100) annually, a threshold would be reached where cost recovery is feasible. Life support transport would provide an additional level of service to the community and not a revenue source. This service would also free fire department resources to provide the expected level of service to the residents and visitors to the City of Ann Arbor.
Staff
Prepared by: Marti Praschan, Financial Services Area Administrator and CFO
Reviewed by: Marti Praschan, Financial Services Area Administrator and CFO
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, $500,000.00 of American Rescue Plan Funds were allocated toward a Community and Law Enforcement Data Platform;
Whereas, The award includes an obligation of the funds in total by December 31, 2026;
Whereas, Safety Services’ plan for dispatch services, which includes partnerships, will be unable to be completed by the obligation deadline;
Whereas, Basic Life Support Transport is a need that has been demonstrated in the community;
Whereas, The City of Ann Arbor Fire department (AAFD) has been staffing a Huron Valley Ambulance (HVA) as part of a trial program and has been successfully transporting since June 6, 2022;
Whereas, The HVA trial program is not a sustainable solution; and
Whereas, Numerous service improvements have been identified as needs in the downtown area of the City;
RESOLVED, That $300,000.00 of American Rescue Plan funds allocated toward a Community and Law Enforcement Data Platform be reallocated for the procurement of an ambulance, cot, loading system, and associated equipment to be used by the Ann Arbor Fire Department for basic life support transport;
RESOLVED, That $200,000.00 of American Rescue Plan funds allocated toward a Community and Law Enforcement Data Platform be reallocated for the purposes of yet to be determined service level improvements in the downtown area; and
RESOLVED, That the City Administrator be authorized to take necessary administrative actions to implement this resolution.