TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Brian Ambrose, Community Services Director
PREPARED BY: Brian Crawford, Senior Program Manager - Parks & Recreation
SUBJECT:
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Reallocation of American Rescue Protection Act Funds to CIP 10041
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RECOMMENDATION
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Approve reallocating $8,000 of American Rescue Protection Act (ARPA) funds from CIP No. 50116, the Los Alamos Hills Water Distribution Project, and $134,932, from CIP No. 22042, Citywide Pickleball Court Project, to CIP No. 10041, Town Square Park Amphitheater Parking Lot and Entryway Monument Project; and
Approve reallocating $134,932 of Measure T funds from CIP No. 10041, Town Square Park Amphitheater and Entryway Monument Project to CIP No. 22042, Citywide Pickleball Court Project.
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PRIOR ACTION/VOTE
On May 16, 2023, the City Council adopted Resolution No. 23-4665, Amending the City of Murrieta Fiscal Year 2022/23 Operating Budget to Reallocate the Remaining $88,210 from the American Rescue Protection Act (ARPA) Fund to Provide Additional Funding to the Interagency Financial Contribution Agreement with Eastern Municipal Water District for Water Infrastructure in the Los Alamos Region of the City of Murrieta (Vote: 4-0).
On June 4, 2024, the City Council adopted Joint Resolution No. 24-4745, approving the Capital Improvement Plan budget for Fiscal Years 2024/25 and the Capital Improvement Plan for Fiscal Years 2024-25 to 2028/29 (Vote: 5-0).
On October 15, 2024, the City Council awarded the construction contract for the Town Square Park Amphitheater Parking Lot and Entryway Monument Project, Capital Improvement Project 10041, to the lowest responsible bidder, DeArk E&C, Inc., in the amount of $2,345,755.00, plus a 15% contingency (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
In May 2021, the United States Department of Treasury (U.S. Treasury) announced the availability of funds from the American Rescue Plan Act of 2021 (ARPA) related to COVID-19 pandemic recovery efforts. In accordance with the U.S. Treasury guidelines for the State and Local Fiscal Recovery Funds (SLFRF), the City must obligate the funds by December 31, 2024.
In May 2023, the City Council approved the reallocation of unspent ARPA funds to Project 50116, the Los Alamos Hills Water Distribution Project, anticipating the need for additional funding for an Interagency Financial Contribution Agreement with Eastern Municipal Water District. That project has been completed, and the remaining balance of $8,000, must be allocated to another project.
Additionally, to mitigate the risk of not fully obligating all of the ARPA funds that were allocated to the Citywide Pickleball Courts Project (Pickleball Project), CIP 22042, staff recommends reallocating those funds, $134,932, to a project that is already in construction and can be encumbered again to an existing Purchase Order (PO). The Town Square Park Amphitheater Parking Lot & Entryway Monument Project (Town Square Project) is currently underway, and the contractor awarded the project has been issued a PO in the amount of $2,345,755, which is already encumbered with $2,000,000, in ARPA funds. The PO will be adjusted to allocate the additional ARPA funds and release other unrestricted funds that do not have an expenditure deadline.
Measure T Funds, totaling $134,932, can be reallocated from the Town Square Project to the Pickleball Project to replace the ARPA funding.
FISCAL IMPACT
Budget reallocation of ARPA and Measure T funds as follows:
$8,000 ARPA funds from CIP No. 50116, the Los Alamos Hills Water Distribution Project, and $134,932 from CIP No. 22042, Citywide Pickleball Court Project, to CIP No. 10041, Town Square Park Amphitheater Parking Lot and Entryway Monument Project; and
$134,932 of Measure T Funds from CIP No. 10041, Town Square Park Amphitheater, and Entryway Monument Project to CIP No. 22042, Citywide Pickleball Court.
ATTACHMENTS
None.