HomeMy WebLinkAboutAGENDA REPORT 2024 0904 CCSA REG ITEM 10FCITY OF MOORPARK, CALIFORNIA
City Council Meeting
of September 4, 2024
ACTION ADOPTED RESOLUTION NO.
2024-4269. (ROLL CALL VOTE:
UNANIMOUS)
BY A. Hurtado.
F. Consider Resolution Amending the Fiscal Year (FY) 2023/24 and 2024/25 Budgets
to Reallocate the American Rescue Plan Act of 2021 (ARPA) Funds from the New
Moorpark Library and a Portion of Unappropriated ARPA Funds to the New City
Hall, and from Storm Drain Catch Basins and a Portion of Unappropriated ARPA
Funds to Non-Stormwater Municipal Separate Storm Sewer System (MS4) Major
Outfall Screening and Source Investigation Services. Staff Recommendation:
Adopt Resolution No. 2024-4269, to amend the Fiscal Year 2023/24 and 2024/25
Budgets to Reallocate the American Rescue Plan Act of 2021 (ARPA) Funds from
the New Library and a Portion of Unappropriated ARPA Funds to the New City
Hall, and from Storm Drain Catch Basins and a Portion of Unappropriated ARPA
Funds to Non-Stormwater Municipal Separate Storm Sewer System (MS4) Major
Outfall Screening and Source Investigation Services. (Staff: PJ Gagajena,
Assistant City Manager) (ROLL CALL VOTE REQUIRED)
Item: 10.F.
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: PJ Gagajena, Assistant City Manager
DATE: 09/04/2024 Regular Meeting
SUBJECT: Consider Resolution Amending the Fiscal Year (FY) 2023/24 and
2024/25 Budgets to Reallocate the American Rescue Plan Act of 2021
(ARPA) Funds from the New Moorpark Library and a Portion of
Unappropriated ARPA Funds to the New City Hall, and from Storm
Drain Catch Basins and a Portion of Unappropriated ARPA Funds to
Non-Stormwater Municipal Separate Storm Sewer System (MS4)
Major Outfall Screening and Source Investigation Services
BACKGROUND
In March 2021, the federal government passed the American Rescue Plan Act of 2021
(ARPA), a $1.9 trillion federal aid package designed to help the American people and
American economy recover from the prolonged impacts of the COVID-19 pandemic.
The funding package included $350 billion in direct financial relief for all state, local,
tribal, and territorial governments, of which $8,701,674 was allocated to the City of
Moorpark.
In May 2021, the U.S. Department of the Treasury (“Treasury Department”) published
an “Interim Final Rule” that provided draft guidance on the spending of ARPA funds by
local governments. The Treasury Department then took public comment on the Interim
Final Rule and received over 1,500 public comments.
On July 28, 2021, the City Council held a special meeting to provide early direction to
staff regarding the use of ARPA funds, to ensure that staff only vetted projects that the
City Council indicated it had interest in funding. To help inform the City Council’s
discussion, the City also conducted an online survey to gauge public opinion on how
ARPA funds should be spent. While not a scientifically or statistically valid survey, the
165 responses received were likely a reasonable approximation of public opinion at the
time.
Item: 10.F.
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09/04/2024 Regular Meeting
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Additionally, staff created a list of dozens of potential projects for the use of ARPA funds
based on the City’s Budget and Capital Improvement Program, the City Council’s Goals
and Objectives, and brainstorming for types of projects that would enhance municipal
services and improve the quality of life for Moorpark residents and businesses. The
City Council also identified potential projects during its discussion, and the City Council
ultimately provided direction on 86 potential projects. Of them, 40 projects were
identified to proceed through further vetting, and 46 projects were removed from
consideration.
On January 6, 2022, the Treasury Department issued its Final Rule and accompanying
Overview of the “Final Rule” governing the use of ARPA funds, with an effective date of
April 1, 2022. The Final Rule included numerous clarifications and calculations of
revenue and revenue loss for the “Revenue Replacement” spending category. Among
the changes was the addition of a “Standard Allowance” of up to $10,000,000 whereby
APRA fund recipients can assume a revenue loss of up to $10,000,000 without having
to calculate revenue loss and without having to meet various reporting requirements to
determine actual revenue loss in subsequent fiscal years. Because the City was
receiving less than the $10,000,000 Standard Allowance Limit, the Final Rule enabled
the City to receive all of its $8,701,674 in APRA funds in the most-flexible Revenue
Replacement category. The funds could then be used for any “governmental purpose.”
On February 16, 2022, the City Council adopted Resolution No. 2022-4074, by which
the City elected to receive its entire ARPA allocation as Revenue Replacement, utilizing
the Standard Allowance procedures in the Final Rule. This resulted in the placement of
$8,701,674 into City Fund 2800.
At the same meeting, the City Council appropriated $5,688,798 of the City’s ARPA
funds to the Princeton Avenue Improvement Project, as part of the award of the
construction contract for the project. Additionally, the City Council directed staff to
proceed with the allocation of $2,012,876 in ARPA funds toward the acquisition of the
new City Hall at 323 Science Drive.
On September 21, 2022, the City Council formally approved the allocation of
$2,012,876 in ARPA funds toward the new City Hall project. Additionally, the City
Council reallocated the previously approved ARPA expenditure of $5,688,798 from the
Princeton Avenue Improvement Project to the new Moorpark City Library since the
library project had fewer funding options available. To backfill the Princeton Avenue
project, the City Council appropriated $5,688,798 from the City-Wide Traffic Mitigation
Fund instead.
On March 1, 2023, the City Council allocated a portion of the remaining $1,000,000 in
ARPA funds towards Scholarships for City Programs in the amount of $70,000 and
Storm Drain Catch Basins in the amount of $80,000. The Scholarships for City
Programs would be offered to low-income residents to offset registration costs and fees
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for various events and programs at the City’s Little Learners Academy preschool, Camp
Moorpark, Arroyo Vista Recreation Center classes and youth leagues, Active Adult
Center, and Moorpark City Library. The Storm Drain Catch Basins project would install
approximately 110 trash control devices on storm drain catch basins, as required by the
California State Water Resources Control Board.
On July 5, 2023, the City Council provided direction to staff on implementing various
mental health initiatives and considered the use of ARPA funds for some of these
projects. On September 6, 2023, the City Council allocated a portion of the remaining
$850,000 in ARPA funds towards Cope Notes Mental Health Text Messaging Services
in the amount of $10,500. Cope Notes sends daily text messages to subscribers to
improve mental and emotional health. The City purchased 100 free annual
subscriptions from Cope Notes and offered them to residents. As of August 2024, all
100 subscriptions have been used and the free annual period ends in October 2024.
After these allocations, there remains $839,500 of unappropriated ARPA funds, which
may be used for “governmental purposes.” Although the Treasury Department
considers the City’s entire ARPA fund allocation as revenue replacement, the City still
needs to obligate these funds towards specific projects or programs.
The City’s ARPA fund allocations as reported to the Treasury Department in the City’s
Annual Compliance Report submitted in March 2024 is shown below:
New Moorpark City Library .............................................. $5,688,798
New City Hall ................................................................... $2,012,876
Scholarships for City Programs ............................................ $70,000
Storm Drain Catch Basins .................................................... $80,000
Cope Notes Mental Health Text Messaging Services ........... $10,500
Unappropriated ARPA Funding .......................................... $839,500
Total ................................................................................ $8,701,674
DISCUSSION
The Treasury Department’s Final Rule governing the use of ARPA funds states that all
funds need to be obligated by December 31, 2024, and all funds be spent by
December 31, 2026. The term “obligated” means that funds must be committed through
a contract agreement by December 31, 2024. The City must return to the Treasury
Department any funds not obligated by December 31, 2024; or any funds that are
obligated by December 31, 2024, but not spent by December 31, 2026.
In August 2024, City staff analyzed what ARPA funds have been obligated and
expended, obligated and not expended, and what other projects could be identified for
the remaining unobligated funds. Staff determined that only the New City Hall project
($2,012,876) and Cope Notes Mental Health Text Messaging Services ($10,500) have
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been obligated and fully expended as of June 30, 2024. The Scholarships for City
Programs has been obligated and partially expended with $35,000 remaining for Fiscal
Years (FYs) 2024/25 and 2025/26.
Based on recently updated bid and contract schedules, it was determined that
agreements are not guaranteed to be in place by December 31, 2024, for the new
Moorpark City Library ($5,688,798) and Storm Drain Catch Basins ($80,000).
Therefore, rather than risk losing these ARPA funds, staff recommends reallocating
these funds to other projects that are certain to meet the obligation and expenditure
deadlines.
Since costs for the new City Hall project is nearly fully expended, staff recommends
reallocating the new Moorpark City Library ARPA funds in the amount of $5,688,798
and a portion of the unappropriated ARPA funds in the amount of $799,500 to the new
City Hall to meet both obligation and expenditure deadlines. Any funds from the
General Fund and Special Projects Fund originally allocated to the new City Hall will
then be reallocated to fund the new Moorpark City Library. This will be retroactively
reflected in the FY 2023/24 Capital Improvement Program budget for accounting
purposes.
On July 17, 2024, the City Council approved a Professional Services Agreement with
Rincon Consultants, Inc. in an amount not-to-exceed $192,395 for Non-Stormwater
Municipal Separate Storm Sewer System (MS4) Major Outfall Screening and Source
Investigation Services. Since this project is already obligated with a contract agreement
in place and $120,000 of work is expected to be spent during FY 2024/25, staff
recommends reallocating the Storm Drain Catch Basins ARPA funds in the amount of
$80,000 and a portion of the unappropriated ARPA funds in the amount of $40,000 to
this project. Any funds from the National Pollutant Discharge Elimination System
(NPDES) Fund originally allocated to the MS4 Major Outfall Screening will then be
reallocated to fund the Storm Drain Catch Basins project. This will be reflected in the
FY 2024/25 Operating budget for accounting purposes.
Below is a summary of the recommended reallocations of ARPA funds for each project:
New Moorpark City Library to New City Hall .................... $5,688,798
Unappropriated ARPA Funding to New City Hall ................ $799,500
Total ................................................................................ $6,488,298
Storm Drain Catch Basins to MS4 Outfall Screening ............ $80,000
Unappropriated ARPA Funding to MS4 Outfall Screening ... $40,000
Total ................................................................................... $120,000
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09/04/2024 Regular Meeting
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As a result of these reallocations, the City’s new ARPA fund allocations are shown
below:
New City Hall ................................................................... $8,501,174
MS4 Outfall Screening ........................................................ $120,000
Scholarships for City Programs ............................................ $70,000
Cope Notes Mental Health Text Messaging Services ........... $10,500
Total ................................................................................ $8,701,674
ENVIRONMENTAL DETERMINATION
The California Environmental Quality Act (CEQA) does not apply to activities that will
not result in a direct or reasonably foreseeable indirect physical change in the
environment or is otherwise not considered a project as defined by CEQA Statute
§ 21065 and CEQA State Guidelines § 15060(c)(3) and § 15378. The appropriation of
ARPA funds will not result in a change to the physical environment and therefore is not
subject to CEQA. No additional environmental review is required.
FISCAL IMPACT
Although the City has already received $8,701,674 in ARPA funds from the federal
government and the City Council’s appropriation and reallocation of these funds will
have no net fiscal impact on the City, there is a fiscal impact to the associated CIPs in
the transfer of funding sources. With these ARPA funds guaranteed to be obligated by
the deadline of December 31, 2024, and expended by the deadline of December 31,
2026, the City will be in compliance with the Treasury Department’s Final Rule
requirements and avoid having to return these funds to the federal government.
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09/04/2024 Regular Meeting
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For the FY 2023/24 CIP Budget, the new Moorpark City Library ARPA funds in the
amount of $5,688,798 and a portion of the unappropriated ARPA funds in the amount of
$799,500 are recommended to be reallocated to the new City Hall project for a total
amount of $6,488,298. The funding sources for the new Moorpark Library in the
amount of $5,688,798 will be switched to the Special Projects Fund. The savings of
$799,500 for the Special Projects Fund will be used for future projects. The Budget
Amendment below shows the fund transfer allocation and expenditure appropriation.
FUND BALANCE ALLOCATION:
Fund-Account Number Amount
2800-000-00000-33990 799,500.00$
Special Project Fund 3004-000-00000-33990 (799,500.00)$
Total -$
EXPENDITURE APPROPRIATION:
Account Number Current Budget Revision Amended Budget
-$
2800-120-C0070-55400 -$ 6,488,298.00$ 6,488,298.00$
3004-120-C0070-55400 6,920,750.00$ (6,488,298.00)$ 432,452.00$
2800-171-C0056-55200 5,688,798.00$ (5,688,798.00)$ -$
3004-171-C0056-55200 -$ 5,688,798.00$ 5,688,798.00$
-$
Total 12,609,548.00$ -$ 12,609,548.00$
FUND TRANSFER ALLOCATION
Account Number Amount
2800-120-C0070-55400 5,617,416.68$
3004-120-C0070-55400 (5,617,416.68)$
Total -$
Account Name
CH at 323 Science Dr - Constr Bldg (ARPA Fund)
CH at 323 Science Dr - Constr Bldg (Special Proj Fund)
Fund Title
ARPA FUND
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09/04/2024 Regular Meeting
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For the FY 2024/25 Operating Budget, the Storm Drain Catch Basins ARPA funds in the
amount of $80,000 and a portion of the unappropriated ARPA funds in the amount of
$40,000 are recommended to be reallocated to the MS4 Major Outfall Screening
project. The Budget Amendment below shows the expenditure appropriation.
Below is final ARPA fund allocation for the City of Moorpark.
New City Hall ................................................................... $8,501,174
MS4 Outfall Screening ........................................................ $120,000
Scholarships for City Programs ............................................ $70,000
Cope Notes Mental Health Text Messaging Services ........... $10,500
Total ................................................................................ $8,701,674
COUNCIL GOAL COMPLIANCE
This action does not support a current strategic directive.
FUND BALANCE ALLOCATION:
Fund-Account Number Amount
2800-000-00000-33990 40,000.00$
Total 40,000.00$
EXPENDITURE APPROPRIATION:
Account Number Current Budget Revision Amended Budget
-$
2800-231-P0007-51000 80,000.00$ 40,000.00$ 120,000.00$
-$
Total 80,000.00$ 40,000.00$ 120,000.00$
Fund Title
ARPA FUND
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09/04/2024 Regular Meeting
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STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED)
Adopt Resolution No. 2024-____, to amend the Fiscal Year 2023/24 and 2024/25
Budgets to Reallocate the American Rescue Plan Act of 2021 (ARPA) Funds from the
New Library and a Portion of Unappropriated ARPA Funds to the New City Hall, and
from Storm Drain Catch Basins and a Portion of Unappropriated ARPA Funds to Non-
Stormwater Municipal Separate Storm Sewer System (MS4) Major Outfall Screening
and Source Investigation Services.
Attachment: Draft Resolution No. 2024-____
120
RESOLUTION NO. 2024-____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, TO AMEND THE FISCAL
YEAR (FY) 2023/24 CAPITAL IMPROVEMENT PROGRAM
BUDGET TO TRANSFER $5,688,798 OF PREVIOUSLY
APPROPRIATED ARPA FUND MONIES FROM THE NEW
MOORPARK CITY LIBRARY PROJECT AND $799,500
FROM UNAPPROPRIATED ARPA FUND MONIES TO THE
NEW CITY HALL PROJECT TOTALING $6,488,298; AND
AMEND THE FY 2024/25 OPERATING BUDGET TO
TRANSFER $80,000 OF PREVIOUSLY APPROPRIATED
ARPA FUND MONIES FROM THE STORM DRAIN CATCH
BASINS PROJECT AND $40,000 FROM
UNAPPROPRIATED ARPA FUND MONIES TO THE MS4
OUTFALL SCREENING PROJECT TOTALING $120,000
WHEREAS, on February 16, 2022, the City Council adopted Resolution No.
2022-4074 to receive $8,701,674 in American Rescue Plan Act (ARPA) Funds as
Revenue Replacement; and
WHEREAS, on February 16, 2022, the City Council adopted Resolution No.
2022-4075 to appropriate $5,688,798 from the ARPA Fund (2800) to the Princeton
Avenue Improvement Project; and
WHEREAS, on September 21, 2022, the City Council adopted Resolution No.
2022-4133 to reallocate the previously appropriated $5,688,798 from the Princeton
Avenue Improvement Project to the new Moorpark City Library, and to appropriate
$2,012,876 toward the new City Hall acquisition; and
WHEREAS, on March 1, 2023, the City Council adopted Resolution No. 2023-
4163 to appropriate $70,000 toward Scholarships for City Programs and $80,000
toward Storm Drain Catch Basins; and
WHEREAS, on September 6, 2023, the City Council adopted Resolution No.
2023-4201 to appropriate $10,500 toward Cope Notes Mental Health Text Messaging
Services; and
WHEREAS, on June 19, 2024, the City Council adopted the Operating and
Capital Improvement Budget for FY 2024/25; and
WHEREAS, the City Council now desires to amend Resolution No. 2022-4133 to
reallocate $5,688,798 of ARPA monies within the existing Fund Balance of ARPA Fund
(2800) from the new Moorpark City Library Project (C0056) to the new City Hall project
(C0070); and
WHEREAS, the City Council now desires to appropriate $799,500 from the
ARPA Fund Balance to expenditures associated with the new City Hall Project (C0070);
and
ATTACHMENT
121
Resolution No. 2024-___
Page 2
WHEREAS, the City Council now desires to amend Resolution No. 2023-4163 to
reallocate $80,000 of ARPA monies within the existing Fund Balance of ARPA Fund
(2800) from the Storm Drain Catch Basins Project to the MS4 Outfall Screening Project;
and
WHEREAS, the City Council now desires to appropriate $40,000 from the ARPA
Fund Balance to expenditures associated with the MS4 Outfall Screening Project; and
WHEREAS, Exhibit A hereof describes the above budget amendment.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. A Budget Amendment to appropriate $6,488,298 and $120,000
from the ARPA Fund (2800), as more particularly described in Exhibit A, attached
hereto, is hereby approved.
SECTION 2. The City Clerk shall certify to the adoption of this resolution and
shall cause a certified resolution to be filed in the book of original resolutions.
PASSED AND ADOPTED this 4th day of September, 2024.
________________________________
Chris R. Enegren, Mayor
ATTEST:
___________________________________
Ky Spangler, City Clerk
Exhibit A – Budget Amendment
122
FUND BALANCE ALLOCATION:
Fund-Account Number Amount
2800-000-00000-33990 799,500.00$
Special Project Fund 3004-000-00000-33990 (799,500.00)$
Total -$
EXPENDITURE APPROPRIATION:
Account Number Current Budget Revision Amended Budget
-$
2800-120-C0070-55400 -$ 6,488,298.00$ 6,488,298.00$
3004-120-C0070-55400 6,920,750.00$ (6,488,298.00)$ 432,452.00$
2800-171-C0056-55200 5,688,798.00$ (5,688,798.00)$ -$
3004-171-C0056-55200 -$ 5,688,798.00$ 5,688,798.00$
-$
Total 12,609,548.00$ -$ 12,609,548.00$
FUND TRANSFER ALLOCATION
Account Number Amount
2800-120-C0070-55400 5,617,416.68$
3004-120-C0070-55400 (5,617,416.68)$
Total -$
Account Name
CH at 323 Science Dr - Constr Bldg (ARPA Fund)
CH at 323 Science Dr - Constr Bldg (Special Proj Fund)
Fund Title
ARPA FUND
EXHIBIT A
BUDGET AMENDMENT FOR
ARPA FUNDS ALLOCATION
FY 2023/2024
Resolution No. 2024-____
Page 3
123
FUND BALANCE ALLOCATION:
Fund-Account Number Amount
2800-000-00000-33990 40,000.00$
Total 40,000.00$
EXPENDITURE APPROPRIATION:
Account Number Current Budget Revision Amended Budget
-$
2800-231-P0007-51000 80,000.00$ 40,000.00$ 120,000.00$
-$
Total 80,000.00$ 40,000.00$ 120,000.00$
FUND TRANSFER ALLOCATION
Account Number Amount
Total -$
Fund Title
ARPA FUND
Account Name
EXHIBIT A
BUDGET AMENDMENT FOR
ARPA FUNDS ALLOCATION
FY 2024/2025
Resolution No. 2024-____
Page 4
124