Receive a staff presentation regarding the current status of American Rescue Plan Act (ARPA) funding, and provide direction to the City Manager.
Item 01: Status of American Rescue Plan Act (ARPA) Funding
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JHughson
CoSM Members
Slide 8 - One-Time Grant Funds to Non-Profit Agencies
$640K allocated, $442K spent and $50K encumbered
So, where's the remaining $148,000?
How do we have $245,599.63 unspent in the Owner Occupied Housing Rehabilitation Program?
What will an ARPA Grant Consultant for $120,000.00 do for us in this limited time that remains? Is this to continue a contract? Why are additional funds needed? How little can we get by?
Can we do the funding for PALS out of one of these?
$640K allocated, $442K spent and $50K encumbered
So, where's the remaining $148,000?
How do we have $245,599.63 unspent in the Owner Occupied Housing Rehabilitation Program?
What will an ARPA Grant Consultant for $120,000.00 do for us in this limited time that remains? Is this to continue a contract? Why are additional funds needed? How little can we get by?
Can we do the funding for PALS out of one of these?
Response provided by Hayden Migl, Director of Administrative Services:
Slide 8 - One-Time Grant Funds to Non-Profit Agencies
$640K allocated, $442K spent and $50K encumbered
So, where's the remaining $148,000?
There were some programs originally planned to be implemented with the Coronavirus Relief Funds that did not use all of the funds originally allocated. One of these was in the One Time Grant Fund line item and was Direct Cash Assistance Program to Hill Country Community MHMR. The program was unable to spend the funds as they had a narrowly defined client base. $90,000 was available in this line item. Staff has been using some of the available funding to pay for the ARPA Grant Consultant once the original allocated funding for that purpose was exhausted.
How do we have $245,599.63 unspent in the Owner Occupied Housing Rehabilitation Program?
IN 2024
27 houses were completed in the 2024 round, with ARPA and CDBG funding. CDBG funding had to be spent first to make the timeliness requirement.
When staff had to stop reviewing applications and shift to supporting work underway (due to time constraints), 9 houses were on hold; therefore not all funding was spent. ARPA funds were left over.
The 9 houses have since been resolved as shown below. The 2025 Round is funded by CDBG.
IN 2025
Rehab contractors’ contracts expired in early 2025.
Staff planned to reconfigure the program as needed, then procure new contractors; however, this was not completed due to staffing issues.
In July, Council requested additional discussion prior to moving the remaining ARPA rehabilitation funding to Mission Able and Operation Triage.
IN 2026
After the CDBG Action Plan work is completed and HSAB applications have been distributed to board for review, the first priority for staff is to re-bid the housing contracts.
This will most likely be too late for the ARPA funding to be spent on housing rehab by the City by the August goal date or the late fall required completion date.
9 houses that were under review in 2024 were resolved as follows:
Moved to 2025 Round
Title Issues Resolved Too Late for 2024 – 3 houses
Agreement on Scope of Work too late for 2024 – 1 house
Houses that Cannot be Served:
Completed the work on their own – 1 house
Title issues unable to be resolved (assisted by St Mary’s) – 1 house
Will not accept a loan, which is required to complete eligible work – 1 house
House too far gone for repair – 1 house
Work on Hold:
1 house
Foundation work completed; Electrical work pending building and zoning code violations
What will an ARPA Grant Consultant for $120,000.00 do for us in this limited time that remains? Is this to continue a contract? Why are additional funds needed? How little can we get by?
The additional amount for the ARPA Grant Consultant is to extend the contract with Booth Management Consulting for the fourth and final year of the contract term. Our work with the ARPA Grant Consultant has shifted primarily into the documentation and close-out phase for this final year, ensuring that we have the records to show that the funds were expended in compliance with Federal guidelines. City Council allocated ARPA funding to 78 different projects and programs, and the amount of documentation needed to close out each of these is extensive. The consultants are completing risk and compliance reviews and gathering documents associated with each project that is then provided to the City for our records. In total, the amount that has been paid to the ARPA Grant Consultant represents approximately 2.5% of the total amount of $18 million provided to the City. Not renewing this contract would require City staff to assume the closing out and documentation process for the numerous projects and programs.
Can we do the funding for PALS out of one of these?
The City has a current contract in place with PALS that goes through the end of 2026. All ARPA funding must be expended by December 31, 2026, so no additional funding can be provided to extend the term. If direction is given to provide the additional funding to PALS, the amount will be found from a project or program with available funding.
Slide 8 - One-Time Grant Funds to Non-Profit Agencies
$640K allocated, $442K spent and $50K encumbered
So, where's the remaining $148,000?
There were some programs originally planned to be implemented with the Coronavirus Relief Funds that did not use all of the funds originally allocated. One of these was in the One Time Grant Fund line item and was Direct Cash Assistance Program to Hill Country Community MHMR. The program was unable to spend the funds as they had a narrowly defined client base. $90,000 was available in this line item. Staff has been using some of the available funding to pay for the ARPA Grant Consultant once the original allocated funding for that purpose was exhausted.
How do we have $245,599.63 unspent in the Owner Occupied Housing Rehabilitation Program?
IN 2024
27 houses were completed in the 2024 round, with ARPA and CDBG funding. CDBG funding had to be spent first to make the timeliness requirement.
When staff had to stop reviewing applications and shift to supporting work underway (due to time constraints), 9 houses were on hold; therefore not all funding was spent. ARPA funds were left over.
The 9 houses have since been resolved as shown below. The 2025 Round is funded by CDBG.
IN 2025
Rehab contractors’ contracts expired in early 2025.
Staff planned to reconfigure the program as needed, then procure new contractors; however, this was not completed due to staffing issues.
In July, Council requested additional discussion prior to moving the remaining ARPA rehabilitation funding to Mission Able and Operation Triage.
IN 2026
After the CDBG Action Plan work is completed and HSAB applications have been distributed to board for review, the first priority for staff is to re-bid the housing contracts.
This will most likely be too late for the ARPA funding to be spent on housing rehab by the City by the August goal date or the late fall required completion date.
9 houses that were under review in 2024 were resolved as follows:
Moved to 2025 Round
Title Issues Resolved Too Late for 2024 – 3 houses
Agreement on Scope of Work too late for 2024 – 1 house
Houses that Cannot be Served:
Completed the work on their own – 1 house
Title issues unable to be resolved (assisted by St Mary’s) – 1 house
Will not accept a loan, which is required to complete eligible work – 1 house
House too far gone for repair – 1 house
Work on Hold:
1 house
Foundation work completed; Electrical work pending building and zoning code violations
What will an ARPA Grant Consultant for $120,000.00 do for us in this limited time that remains? Is this to continue a contract? Why are additional funds needed? How little can we get by?
The additional amount for the ARPA Grant Consultant is to extend the contract with Booth Management Consulting for the fourth and final year of the contract term. Our work with the ARPA Grant Consultant has shifted primarily into the documentation and close-out phase for this final year, ensuring that we have the records to show that the funds were expended in compliance with Federal guidelines. City Council allocated ARPA funding to 78 different projects and programs, and the amount of documentation needed to close out each of these is extensive. The consultants are completing risk and compliance reviews and gathering documents associated with each project that is then provided to the City for our records. In total, the amount that has been paid to the ARPA Grant Consultant represents approximately 2.5% of the total amount of $18 million provided to the City. Not renewing this contract would require City staff to assume the closing out and documentation process for the numerous projects and programs.
Can we do the funding for PALS out of one of these?
The City has a current contract in place with PALS that goes through the end of 2026. All ARPA funding must be expended by December 31, 2026, so no additional funding can be provided to extend the term. If direction is given to provide the additional funding to PALS, the amount will be found from a project or program with available funding.
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