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Resolution to Approve the Reallocation of American Rescue Plan Act (ARPA) Funds
Memorandum
Attached for your review and approval, please find a resolution to approve the reallocation of $3,395,082.00 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 <http://a2gov.legistar.com/LegislationDetail.aspx?ID=5534294&GUID=E5B3011D-DF6A-474F-A18E-AC754BA50E6E&Options=ID|Text|&Search=R-22-096>, which directed final funding allocations/projects. An Unarmed Response Program was allocated $3,500,000.00 with this action.
Requirements of the award include commitment of the funds in total by December 31, 2024 and expense of the funds in total by December 31, 2026. In June 2022 City Council approved a contract with Public Sector Consultants, Inc.,#R-22-188, in the amount of $104,918.00 to conduct Community Engagement resulting in community feedback to be utilized in the development of the program. The contract was executed and led to the issuances of two unsuccessful request for proposals. It has become apparent that we will be unable to efficiently and effectively spend the remaining awarded funds, $3,395,802.00, on this project in time to meet the required obligation deadlines.
In order to comply with the federal legislation obligation and spending stipulations, staff is recommending a reallocation of the unspent funds of $3,395,082.00, to the following projects:
Project Category Amount
• Barton Dam Embankment Project Infrastructure $2,000,000.00
• Emergency Operations Center (EOC) Public Health/Safety $ 500,000.00
• Second Ambulance Acquisition Public Health/Safety $ 395,082.00
• Bicentennial Park Improvements Negative Economic Impact $ 400,000.00
• Safe House - Domestic Violence Support Public Health/Safety $ 100,000.00
Staff
Prepared by: Marti Praschan, CFO
Reviewed by: Milton Dohoney Jr., City Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, $3,500,000.00 of American Rescue Plan Funds were allocated toward an Unarmed Response Program;
Whereas, The award includes an obligation of the funds by December 31, 2024 and expense of the funds by December 31, 2026;
Whereas, Establishing an Unarmed Response Program is a commitment of the City; however, additional time to establish an appropriate program will be necessary outside the deadline of the legislation; and
Whereas, American Rescue Plan legislation has stipulations on how the funding is spent;
RESOLVED, That $3,395,082.00 of American Rescue Plan funds allocated toward an Unarmed Response Program be reallocated for the following projects:
• Barton Dam Embankment Project Infrastructure $2,000,000.00
• Emergency Operations Center (EOC) Public Health/Safety $ 500,000.00
• Second Ambulance Acquisition Public Health/Safety $ 395,082.00
• Bicentennial Park Improvements Negative Economic Impact $ 400,000.00
• Safe House - Domestic Violence Support Public Health/Safety $ 100,000.00
RESOLVED, That the City Administrator be authorized to take necessary administrative actions to implement this resolution.
Sponsored by: Mayor Taylor