Report to Mayor and City Council
Tuesday, September 19, 2023
Discussion
SUBJECT:
Title
CONSIDER QUARTERLY FINANCIAL STATUS REPORT ON THE CITY OF CARSON PROJECTS BEING FUNDED BY THE AMERICAN RESCUE PLAN ACT (CITY COUNCIL)
Body
I. SUMMARY
This is a quarterly financial report to the City Council to provide a status update on how ARPA American Rescue Plan Act (ARPA) is being used and provide an overview on projects timeline, budget and estimated date of completion.
II. RECOMMENDATION
Recommendation
RECEIVE and FILE.
Body
III. ALTERNATIVES
TAKE any other action the City Council deems appropriate.
IV. BACKGROUND
The American Rescue Plan act is a federal stimulus plan to provide funding to State and Local Governments to assist communities in recovering from the COVID-19 pandemic. The City of Carson received $17.8 million and on March 15, 2022, the City Council issued specific earmarks for the use of ARPA funds (Budget Resolution 22-039). Per United States Treasury guidelines for ARPA, funds must be obligated by December 31, 2024, and fully expensed by December 31, 2026. City of Carson spent $11.9 million at the end of Fiscal Year 2022-2023 4th Quarter. There is $5.8 million left and the status updates for each project financed by ARPA are below:
$3.4 Million Citywide Slurry Seal Project
On September 6th, 2022, Council approved contract to be awarded to Petrochem Materials Innovation, LLC. A month later the contract was fully executed, and Purchase Order was issued. The total cost of this project is estimated at $3.1 million. According to Staff Report 2022-730 presented to Council on September 6th 2022, the project will seal approximately 35 miles of streets throughout the City of Carson in an equitable manner for each district. The rubberized slurry seal provided better protection to pavement deterioration. The seal is cost effective approach to extending life of pavement and preserving structural capacity.
$1.3 million was spent on the Citywide Rubberized Slurry Seal Project at the end of FY 22-23 4th Quarter. $1.9 million in ARPA funding is remaining, and staff projects to spend down the remaining funds and complete project by June 30th, 2024.
$2.1 Million Tyler Munis/EnerGov Upgrade
On July 19th, 2022, Council approved awarding contract to Integrated Technology Partners to upgrade Tyler Munis software, migrate data offsite to the Cloud, implement EnerGov, and add Tyler Payment Systems. The upgrade will be a “5” version improvement from the current version 11.3 to 2021.5. The migration will move Tyler Munis from “on premises” to be stored in the “Cloud” which will improve Disaster Recovery capabilities. The upgrade will also enhance features which will improve Human Capital Management, Budgeting/Accounting, Procurement/Contract Management, and Financial Reporting. The Tyler Munis upgrade and migration was completed in February 2023. Energov which is software streamlining the City Licensing and Permitting processes is projected to be completed next year in July 2024. At the end of FY 2022-2023 4th Quarter, total ARPA funds spent is $503,000, with $1.6 million left to spend on the project.
$1.5 Million Small Business Grants
On June 21st, 2022, Council approved apportionment of $1 million dollars in ARPA funds for Small Business Grants. On January 17th 2023, Council approved to increase apportionment by $500,000. The premise of the program is to assist businesses affected by the Covid-19 mandated shutdown during the peak of the pandemic. Staff provided to Council eligibility criteria, goals, and objectives, and a minimum and maximum range for the grants. Small Business was defined as businesses that employ 1 to 50 employees. The grant amounts range from $5,000 to $25,000. A scoring system determines eligibility and grant amount awarded. Staff initiated review of grant application back in November 2022 and has worked closely with applicants to assemble necessary documentation. At the end of July 26th, 2023 total of 127 Small Business Grant applications were received by the City, of which 48 applications were approved. A total of 46 small businesses in Carson received grant checks which totaled in $875,000. Remaining ARPA funds for the grant program is $616,000.
$758,000 Non-Capitalized Items
During Fiscal Year 21-22 Budget workshop, Council requested staff to provide a list of non-capitalized equipment needs for parks and programs. $90,459 have been spent as of the end of FY 2022-2023 4th Quarter. Staff have planned additional purchases to spend down the remaining $666,000.
$250,000 Broadband RFP
On May 2, 2023, the City Council made a significant decision by awarding a contract to Magellan Advisors, LLC., entrusting them with the responsibility of conducting a comprehensive Citywide Broadband Assessment Study. Subsequently, on July 13, 2023, a Purchase Order was issued, followed by a successful kick-off meeting on July 17, 2023.
With a projected timeline approximately 8 months, from the present to February 2024, the study will thoroughly examine the broadband infrastructure and services within the City of Carson with the goal to pave the way for next-generation, world-class connectivity, catering to the growing needs of the community.
To ensure transparency and accessibility, a dedicated webpage was established on the City’s official website. Through this platform, stakeholders can review the plan’s ongoing progress and track the results as they unfold.
As part of our commitment to engaging with the community, project information has been shared in the Fall edition of the Carson Report. Additionally, the publication will contain a link to a survey, designed to gather essential feedback. Notably, the survey will incorporate a built-in speed test to gauge home and business connectivity speeds. The survey will remain open through the end of September 2023.
$350,000 Wi-Fi at the Park
Project supports Council vision to provide free access to the Internet (Via WIFI) for Carson residents at the City’s major parks, Community Center, and City Hall. On September 20th, 2022, Council approved contract with Datagear, Inc to provide complete installation and configuration of the network, and contractor will support and maintain infrastructure for period of 3 years. Total cost of the project is $420,272.94, which exceeded $350K in ARPA funds awarded. The remaining $70,000 was paid by the General Fund. Two parks currently have Wi-Fi activated (Mills Park and Carson Park). Estimated completion of installation is December 2023.
$330,000 Emergency Operations Center Upgrade
Emergency Services staff coordinated with an approved Engineering consultant that the City of Carson has an existing contract with to perform conceptual planning design. A conceptual plan has been developed which includes office spaces for Information Technology, Public Safety, and Emergency Services. Staff is now working with the architect to finalize the electrical and mechanical plans needed for the Construction Bid Package. Meanwhile, staff continues to finalize the furniture plan and interior design of the space. The past month has consisted of various demos/meetings with audio-visual vendors to compare costs and capabilities.
V. FISCAL IMPACT
No Fiscal Impact, all unspent ARPA Funds from FY 22-23 will be included in Continue Appropriation request to Council on September 19, 2023.
VI. EXHIBITS
1. ARPA Fiscal Year 2022-2023 Fourth Quarter Report Power Point (pgs.5-17)
Prepared by: Ralston Turner, Sr. Budget Analyst