Title
Resolution to Approve the Reallocation of American Rescue Plan Act (ARPA) Funds and to Appropriate $1,706,046.00 of Major Grant Funds to the Barton Embankment Project (8 Votes Required)
Memorandum
Attached for your review and approval, please find a resolution to approve the reallocation of $1,706,046.00 of American Rescue Plan funding.
The City of Ann Arbor was awarded $24,182,630.00 in federal American Rescue Plan Act (ARPA) funds. City Council directed the City Administrator to prepare a compliant plan for allocating the funding. This plan was approved by City Council via #R-22-096, which presented a compliant project plan for the funding. This plan was modified on several occasions to meet requirements of the funding, which included “obligation” of funding by December 31, 2024, and expense of the funds by December 31, 2026.
An obligation is defined as “an order placed for property and services and entering into contracts, subawards, and similar transactions that require payments.” Due to various complications, the full obligation requirements were unable to be met on three projects prior to the established deadline. This resolution will reallocate the unobligated funding of these three projects to an existing executed contract/agreement on an ARPA eligible project, the Barton Dam Embankment Project.
Budget/Fiscal Impact: The ARPA funding allocation on the Barton Dam Embankment project will be increased by $1,706,046 for a total of $3,706,046. A corresponding reduction in the original General Fund allocation ($4,000,000.00) for the Barton Dam project will be reallocated to the following three projects to complete them as originally planned: Miller Avenue Rehabilitation project (Vision Zero Implementation); the Universal Basic Income project and the Emergency Operations Center project.
Staff
Prepared by: Marti Praschan, Interim Deputy City Administrator
Kimberly Buselmeier, Interim Chief Financial Officer
Reviewed by Michelle Landis, Senior Assistant City Attorney
Approved by Milton Dohoney Jr., City Administrator
Body
Whereas; $2,000,000.00 of American Rescue Plan Funds were allocated toward Vision Zero Implementation, which was intended to fund the cycle track portion of the Miller Avenue Rehabilitation project;
Whereas; $500,000.00 of American Rescue Plan Funds were allocated toward an Emergency Operations Center (EOC);
Whereas, $1,600,000.00 of American Rescue Plan Funds were allocated toward the Universal Basic Income project;
Whereas; The ARPA award includes a requirement to obligate all of the funds by December 31, 2024 and to expense the funds by December 31, 2026;
Whereas; The Vision Zero/Miller Avenue Rehabilitation project, a successful Universal Basic Income (UBI) project, and an Emergency Operations Center (EOC) are commitments of the City; however, these projects were unable to meet the ARPA obligation requirements and, therefore, now require alternate funding;
Whereas; American Rescue Plan legislation has regulations restricting how ARPA funds may be spent; and
Whereas, the City may reallocate the unobligated ARPA funding intended for the Miller Ave, EOC, and UBI projects to the existing executed contract on an ARPA eligible project, namely the Barton Dam Embankment Project;
RESOLVED; That $1,362,310.00 of American Rescue Plan funds allocated to Vision Zero Implementation (Miller Ave Rehabilitation), $8,253.00 allocated to the Universal Basic Income Project and $335,483.00 allocated to an Emergency Operations Center be appropriated to the Barton Dam Embankment Project ($1,706,046.00 Total);
RESOLVED; That $1,706,046 of the FY25 Water Treatment General Fund budget be reallocated and appropriated to the following:
• $1,362,310 to the FY25 Engineering General Fund budget for the purpose of Vision Zero Implementation/Miller Avenue Rehabilitation Project;
• $8,253 to the FY25 City Administrator General Fund budget for the purpose of the Universal Basic Income Project;
• $335,483 to the FY25 Fire Department General Fund budget for the purpose of the Emergency Center Operations Center Project.
RESOLVED; That $1,362,310.00 of General Capital Funds be appropriated from the Barton Dam Embankment Project to the Miller Avenue Rehabilitation Project, thereby increasing the project expenditures and revenue;
RESOLVED, That all amounts herein are without regard to fiscal year;
RESOLVED, That City Council authorizes revisions to the contract for the Vision Zero Implementation/Miller Avenue Rehabilitation Project to eliminate ARPA funding requirements, and except as specifically amended by this resolution, the resolution approving it (R-24-423) remains valid and in effect; and
RESOLVED, That the City Administrator be authorized to take necessary administrative actions to implement this resolution.