City of Alexandria, Virginia
________________
MEMORANDUM
DATE: MAY 3, 2022
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: TERRY SUEHR, DIRECTOR, PROJECT IMPLEMENTATION
DOCKET TITLE:
TITLE
American Rescue Plan Act (ARPA) Program and Projects Update.
BODY
_________________________________________________________________
ISSUE: Provide quarterly report information on the implementation status of the American Rescue Plan Act (ARPA) funding as of March 31, 2022.
RECOMMENDATION: That City Council receive this quarterly report.
BACKGROUND: Last year, the City received $29.8 million of Tranche #1 American Rescue Plan Act (ARPA) funding. On July 9, 2021, City Council approved the funds to be allocated across 28 individual projects, the General COVID Fund, and Food Insecurity and Rental Assistance Bridge Funds #1 and #2. The ARPA 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.
DISCUSSION: The Department of Project Implementation (DPI) manages the overall ARPA program to ensure compliance with federal regulations and oversees project alignment with established baselines. The purpose of this memorandum is to provide information on the implementation status of the ARPA funding as of March 31, 2022. Highlights of progress made on APRA funded projects and the ARPA program management over the past quarter include:
• Department of Community and Human Services disbursed $5 million for subrecipient allocations and internal expenses.
• The Alexandria Library managed projects progressed to 70% work effort complete and have spent nearly 50% of their allocation.
• The Request for Information (RFI) process has proven a vital tool for ensuring those managing ARPA projects are able to comply with the relevant federal regulations. ARPA project managers submit their RFIs, and responses or guidance are provided by our expert team comprised by Finance, Internal Audit, City Attorney’s Office, Project Implementation, and external federal compliance consultant.
• Three Fraud Prevention training sessions were delivered to subrecipients, and a tracking system to monitor compliance with IT security training was developed.
• A process was implemented to ensure no disbursements were made to subrecipients or beneficiaries who appeared on the debarment list.
• An agreement was executed with Computer CORE for the Digital Equity project and the first half of the funds were distributed ($30,000).
As of March 31, 2022, the City spent $3.1 million and has $4.6 million in encumbrances, totaling $7.7 million. A breakdown of this can be found on Attachment #1, ARPA Financial Report Summary. The rate of spending is expected to increase moving forward, since most agreements with subrecipients have been executed and beneficiary disbursement processes are in place. Attachment #2, Program and Projects Update #3, provides details on each project’s progress.
We are also conducting a review of each project that has had minimal progress to determine their necessity and whether the funds should be reallocated to other priorities related to the recovery.
The following table shows expenditures and encumbrances to date by ARPA category.
FISCAL IMPACT: Since all ARPA approved projects have allocated budgets, the quarterly progress report does not have a fiscal impact. Project spending is monitored monthly to ensure progress is made toward individual project objectives.
ATTACHMENTS:
Attachment 1: Financial Reports Summary
Attachment 2: Program and Projects Update #3
Attachment 3: Presentation
STAFF:
Emily A. Baker, Deputy City Manager
Terry Suehr, Director, Project Implementation
Robert Snyder, Chief Internal Auditor
Lisa Robrahn, Division Chief, Project Implementation
Miguel Blancas, Project Manager, Project Implementation