City of Alexandria, Virginia
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MEMORANDUM
DATE: DECEMBER 7, 2021
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
American Rescue Plan Act (ARPA) Program and Projects Update.
BODY
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ISSUE: Initial progress in American Rescue Plan Act (ARPA) Project Implementation.
RECOMMENDATION: That City Council receive this report.
BACKGROUND: The purpose of this memorandum is to provide information on: (1) the implementation status of the American Rescue Plan Act (ARPA) project management and (2) federal reporting timeline changes. The City has fully allocated ARPA Tranche #1 across 28 individual projects and the General Covid Fund, and Food Insecurity and Rental Assistance Bridge Funds #1 and #2, for a total of $29.8 million.
The Bridge #1 and #2 funding which totaled $1.5 million to continue food insecurity programs was approved by Council prior to the release of the ARPA funds to the City so that these vital programs could continue to feed Alexandria households prior to the release of the federal funds. The federal funds had a retroactive spending eligibility date so this $1.5 million could be reimbursed to the City after the fact. The balance of the $29.8 million of Tranche #1 was allocated by City Council on July 9, 2021, to 32 specific programs (see Attachment 2 for individual program details). The funds were allocated to address public health issues, negative economic impacts caused by the pandemic, increased or improved services to disproportionately impacted communities, infrastructure investment and administrative costs. In addition, some $0.5 million was advanced out of the forthcoming ARPA Tranche #2 for expanded eviction prevention efforts.
On October 25th, 2021, Miguel Blancas joined the Department of Project Implementation (DPI) as a Project Manager to focus on the ARPA program management. The Project Manager reviewed the ARPA reporting guidelines and developed a process flow for fund disbursements in advance of distribution to recipients and subrecipients. To define the processes, the Project Manager worked closely with Office of Internal Audit and Cherry Bekaert LLP, an accounting firm, to ensure compliance with Federal regulations and reporting requirements. The Project Manager developed a structure for project management, compliance, and monitoring.
Update on Federal Reporting Timeline Changes: The Federal financial reporting will occur, as per ARPA guidance, on a quarterly basis starting April 2022. Going forward, DPI will prepare a quarterly report to Council to coincide with the Federal timelines. The report will include 3 components, as per Federal requirements:
Financial, Performance and Compliance.
DPI will continue managing the overall ARPA program, ensuring compliance with federal regulations, and overseeing the projects’ alignment with their established baselines. To provide additional insight into the status of the program and individual projects, attachments are included. Attachment 1 provides summary data, including programs broken-down by ARPA category, the amount of money allocated per category under tranche #1, and the overall project progress. Attachment 2 provides progress reports for each tranche #1 project, including current status, progress, and forecast.
FISCAL IMPACT: The allocation of the ARPA tranche #2 of $29.8 million will occur as part of the City’s FY 2023 budget process. It appears that a large portion of these funds will fall within the federal definition of “revenue replacement” funds which will provide a much wider range of possible uses and fewer restrictions than did ARPA Tranche #1.
ATTACHMENTS:
1. ARPA data and current information
2. ARPA Program and Projects Update #1
STAFF:
Emily A. Baker, Deputy City Manager
Terry Suehr, Director, Project Implementation
Lisa Robrahn, Division Chief, Project Implementation
Miguel Blancas, Project Manager, Project Implementation
Robert Snyder, Chief Internal Auditor
Dana Wedeles, Special Assistant to City Manager