PREPARED BY: GREG DWYER DATE OF MEETING: 10/21/2024
SUBJECT:
TITLE
CONSIDER ADOPTING RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO (1) OBLIGATING THE REMAINDER OF AMERICAN RESCUE PLAN ACT (ARPA) FUNDS FROM THE COMMUNITY SERVICES DEPARTMENT, RECREATION, SENIORS, AND PARATRANSIT DIVISION IN AN AMOUNT UP TO $412,000 VIA CONTRACT SERVICES BY DECEMBER 31, 2026 PER FEDERAL US TREASURY GUIDELINES; AND (2) AUTHORIZING THE CITY MANAGER TO EXECUTE A TWO-YEAR AGREEMENT WITH THE SAN PABLO ECONOMIC DEVELOPMENT CORPORATION TO SUPPORT AND SUSTAIN THE COLLEGE PREPARATION, WORKFORCE, DEVELOPMENT, AND SAN PABLO SCHOLARSHIP PILOT PROGRAM (Continued from 10/07/2024)
CEQA: This proposed action is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
Build a Healthy Community - Explore feasibility of developing a new college preparatory and workplace development program with analysis of future city-initiated funding mechanisms for eligible San Pablo students AND Foster college and career readiness, education, youth leadership, and City/Contra Costa College/WCCUSD Partnerships (jointly with SPEDC) are City Council Priorities on the Fiscal Year 2023-2025 City Council Priority Workplan effective May 1, 2023.
BACKGROUND
On March 11, 2021, H.R.1319 - American Rescue Plan Act (ARPA) of 2021 was enacted as federal law. The total ARPA allocation for the City of San Pablo was $7,413,467.00. The ARPA State and Local Fiscal Recovery Funds (SLFRF) program, SLFRF provides local governments across the country with the resources needed for the following:
• Fight the COVID-19 pandemic and support families and businesses struggling with its public health and economic impacts; and
• Maintain vital public services, even amid declines in revenue resulting from the crisis; and
• Build a strong, resilient, and equitable recovery by making investments that support long-term growth and opportunity.
On April 4, 2022, the City Council of City of San Pablo adopted Resolutions 2022-055 and 2022-056 allocating $760,000 of the City’s ARPA allocation to be expended for eligible Community Services Department programs and prioritized services, including the San Pablo Scholarship Pilot Program. Of the $760,000 allocated to Community Service programs by Resolution 2022-056, $348,000 has been spent or obligated, leaving $412,500 yet to be obligated to fund eligible Community Services Department programs.
On August 7, 2023, City Council adopted Resolution 2023-122, authorizing the City Manager to issue individual $1,000 scholarships to eligible San Pablo residents/students, for a total amount not to exceed $300,000. To date, the City has successfully distributed 140 scholarships through the first two fiscal years.
After the adoption of the specified Resolutions, the US Treasury has implemented revised federal guidelines for all ARPA-funded initiatives. The updated guidelines stipulate that the City must formally commit remaining funds for expenditure via contractual services by Resolution before December 31, 2024, to support ARPA program expenditures through December 31, 2026. This will most likely increase the total number of scholarships from our initial projection. The total number of scholarships will not be determined until the final year. City staff will return with a comprehensive report capturing all details before the end of the 2026-27 fiscal year.
On January 16, 2024, City Council adopted Resolution 2024-002, authorizing the City Manager to enter into a 3-year consulting agreement with Hatchuel Tabernik & Associates, Inc. (HTA) for the evaluation of the San Pablo Scholarship Pilot Program for an amount not to exceed $60,000. This contractual obligation is part of the original $760,000 of ARPA-funded programs under the Community Services Department’s programs and prioritized services.
ADMINISTRATIVE SERVICES AGREEMENT
The Scholarship Pilot Program will be jointly administered by the City of San Pablo (City) Community Services Department’s Youth, School, and Community Partnerships Division (YSCP) and the San Pablo Economic Development Corporation (SPEDC). City will provide total remaining scholarship and administrative service funding of approximately $412,000 to SPEDC, to which SPEDC will assign a specific expense class to assure compliance with all applicable federal usage and reporting requirements and ensure funds are exclusively used for the Program. SPEDC will manage the direct and indirect costs of the Program in strict compliance with the requirements of the Certification of Use of ARPA Funds by Sub-recipient. SPEDC’s total administrative fee shall not exceed 10 percent.
SPEDC will return any remaining funds if funds are not disbursed and/or expended by December 31, 2026. SPEDC shall provide annual reports to the City, including full accounting of its direct and indirect costs of grant administration.
COMMUNITY SERVICES STANDING COMMITTEE
On October 1, 2024, this item came before the Community Services Standing Committee (Cruz/Pineda) where it received unanimous support to bring the item forward to a future City Council meeting for formal consideration.
FISCAL IMPACT
The proposed resolution obligates up to $412,000 in contract services from ARPA funds under Fund 120 to the San Pablo Economic Development Corporation to support and sustain the College Preparation, Workforce Development, and San Pablo Scholarship Pilot Program, to be expended by December 31, 2026.
ATTACHMENT
Att A - Resolution
Att B - Agreement with San Pablo Economic Development Corporation (SPEDC)