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2022-035 ARPA State and Local Fiscal Recovery Funds (SLFRF)Date: June 3, 2022 Report No. 2022-035 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: American Rescue Plan Act (ARP) State and Local Fiscal Recovery Funds (SLFRF) EXECUTIVE SUMMARY: The City of Denton was allocated $23.29 million in federal aid across two years. The first payment of $11.65 million was received June 2021. The City is expected the second and final payment of $11.65 in June 2022. City staff will be proposing projects for funding with input from the community and City Council. DISCUSSION: On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law and established the Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery Fund also known as the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program. The purpose of SLFRF is to provide support to State, territorial, local, and Tribal governments in responding to the economic and public health impacts of COVID-19 and in their efforts to contain impacts on their communities, residents, and businesses. The City of Denton was allocated $23.29 million in federal aid across two years. The funding is delivered in two tranches, or payments, no later than 12 months apart. Half of this funding ($11.65 million) was received by the City in June 2021, and the remaining half will be available in June 2022. All cost must be incurred or obligated by December 31, 2024. The period of performance will run until December 31, 2026, at which time all projects must be completed. Programs funded under the first round of funding were developed based on staff recommendations, City Council prioritization of funding categories, and citizen input. As part of the Fiscal Year 2021-2022 budget adoption, City Council approved the projects outlined in Exhibit 1. In preparation of the second payment, staff has identified on-going needs under the eligible categories of Negative Economic Impacts and Revenue Replacement outlined by the Treasury Department. Potential projects and include continued non-profit support, housing vouchers, and support of general service provisions. City Council feedback will be sought on further prioritization and recommendation of projects allowed under the SLFRF guidelines. Additionally, staff will be developing a citizen survey to gather input. The Infrastructure Investment and Jobs Act (IIJA), aka Bipartisan Infrastructure Law (BIL), was signed into law by President Biden on November 15, 2021. The law authorizes $1.2 trillion for transportation and infrastructure spending with $550 billion of that figure going toward “new” investments and programs. Designated federal agencies are currently developing programs under the funding. Date: June 3, 2022 Report No. 2022-035 A significant portion of the funding has been allocated to the states through formula grants. There will be competitive grant opportunities for local governments. The City is working closely with Capital Edge, the City’s consultant, to identify eligible projects under the stated requirements and monitor the implementation and release of programs from federal agencies. CONCLUSION: A citizen survey will be launched in June 2022 to gather feedback regarding the potential projects for the second year of SLFRF funding of $11.65 million. Survey results will be shared with Council during budget discussions scheduled in July and August 2022. Staff will continue to monitor funding opportunities under IIJA and determine eligibility and feasibility of projects. ATTACHMENT(S): Exhibit 1 SLFRF Approved Projects STAFF CONTACT: Laura Behrens Assistant Director of Procurement / Warehouse / Grants Laura.Behrens@cityofdenton.com Exhibit 3 SLFRF FUNDED PROJECTS Day Center and Overnight Shelter / Community Services / $5,000,000 Construction of day center and overnight shelter to provide services to people experiencing or at- risk of homelessness. Vaccine Clinic Support / Fire Department / $550,000 Support and enhance local efforts for COVID testing and vaccinations. Temporary Alternative Shelter / Community Services / $550,000 Support the current Hotel Voucher Program providing temporary housing for individuals experiencing homelessness. Behavioral Healthcare Services Grant / Community Services / $895,000 Grant program aimed at increasing access to services for City of Denton residents in at least one of three priority areas: youth mental health services, adult mental health services and substance use treatment services. Focus will include an increase of access to services for underinsured and/or uninsured individuals and families. Funding priority will be given to providers who demonstrate an ability to provide dual diagnosis treatment for people with mental health and substance use treatment needs. Non-Profit Capacity Support Grant / Community Services / $550,000 Grant program aimed at providing support to non-profits whose services and programming were directly impacted by COVID. Focus is on long-term sustainment of operations. Emergency Management Program Manager / Fire / $95,000 Fill vacant position within the Fire Department’s Emergency Management Division. The position will include expanded duties related to public health initiatives. Public Communication Software / Fire / $75,000 Replacement of the CodeRED public notification system. Street Outreach Expansion (Clinician and Paramedic Positions) / Police and Fire / $250,000 Expand the Street Outreach Team to include a Caseworker and a Paramedic. The Team provides direct assistance to individuals experiencing homelessness. The additional positions will enhance current services provided. Street Outreach Expansion (Vehicle) / Police / $50,000 A dedicated vehicle for the day-to-day operations of the Street Outreach Team. Lease and Rent Relief for Small Businesses Grant / Economic Development / $2,330,000 Grant program aimed at providing relief to small businesses who demonstrate an economic loss associated with COVID. Focus is on long-term sustainment of operations. Exhibit 3 SLFRF FUNDED PROJECTS Arts/Music/Cultural Business Grant / Economic Development / $550,000 Grant program aimed at providing relief to individuals and organizations with programming that promotes or develops art, promotes music or musical performances, or preserves or commemorates historical events and local cultures. Recipients must demonstrate an economic loss associated with COVID. Focus is on long-term sustainment of operations. City Facilities – COVID Updates / Facility Management / $750,000 Modifications and improvements to city facilities that promote public health by mitigating the spread of COVID.