HomeMy WebLinkAboutAGENDA REPORT 2025 0115 CC REG ITEM 10CCITY OF MOORPARK, CALIFORNIA
City Council Meeting
of January 15, 2025
ACTION APPROVED STAFF
RECOMMENDATION, INCLUDING
ADOPTION OF RESOLUTION NO. 2025-
4290. (ROLL CALL VOTE: UNANIMOUS)
BY A. Hurtado.
C. 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 Non-
Stormwater Municipal Separate Storm Sewer System Major Outfall Screening and
Source Investigation Services to Phase 2 City Hall Moving Services. Staff
Recommendation: Adopt Resolution No. 2025-4290, to amend the Fiscal Year
2023/24 and 2024/25 Budgets to Reallocate the American Rescue Plan Act of
2021 (ARPA) Funds from Non-Stormwater Municipal Separate Storm Sewer
System Major Outfall Screening and Source Investigation Services to Phase 2 City
Hall Moving Services. (Staff: PJ Gagajena, Assistant City Manager) (ROLL
CALL VOTE REQUIRED)
Item: 10.C.
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: PJ Gagajena, Assistant City Manager
DATE: 01/15/2025 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 Non-Stormwater Municipal Separate Storm
Sewer System Major Outfall Screening and Source Investigation
Services to Phase 2 City Hall Moving 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an “Interim Final Rule” that provided draft guidance on the spending of ARPA funds by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.
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
Item: 10.C.
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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
ARPA 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 ARPA 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
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.
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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. All 100 subscriptions
were used between the free annual period of October 2023 through October 2024.
After these allocations, there remained $839,500 of unappropriated ARPA funds, which
could be used for “governmental purposes.” Although the Treasury Department
considered the City’s entire ARPA fund allocation as revenue replacement, the City still
needed to obligate these funds towards specific projects or programs.
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
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 were 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 those ARPA funds, staff recommended reallocating
those funds to other projects that are certain to meet the obligation and expenditure
deadlines.
Since costs for the new City Hall project were nearly fully expended, on September 4,
2024, the City Council approved reallocating the ARPA funds for the new Moorpark City
Library 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 would then be reallocated to fund the new Moorpark City
Library. This would be retroactively reflected in the FY 2023/24 Capital Improvement
Program budget for accounting purposes. The subtotal for this reallocation was
$6,488,298 and including the $2,012,876 that was previously allocated, the new total for
the New City Hall project using ARPA funds was $8,501,174.
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At the same meeting, the City Council also reallocated the ARPA funds for Storm Drain
Catch Basins in the amount of $80,000 and a portion of the unappropriated ARPA funds
in the amount of $40,000 to Non-Stormwater Municipal Separate Storm Sewer System
Major Outfall Screening and Source Investigation Services (MS4 Outfall Screening)
since the Professional Services Agreement with Rincon Consultants, Inc. in an amount
not-to-exceed $192,395 was already in place for this project and approved by the City
Council on July 17, 2024. Any funds from the National Pollutant Discharge Elimination
System (NPDES) Fund originally allocated to the MS4 Outfall Screening would be
reallocated to fund the Storm Drain Catch Basins project. This was reflected in the
FY 2024/25 Operating budget for accounting purposes. The total for the MS4 Outfall
Screening project using ARPA funds was $120,000.
As a result of the reallocations on September 4, 2024, the City’s ARPA fund allocations
were assigned as follows:
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
DISCUSSION
During an audit by staff in December 2024 to verify if all the ARPA funds for the New
City Hall and MS4 Outfall Screening were on track for expenditure, it was discovered
that the MS4 Outfall Screening project was completed and only used $69,007 of ARPA
funds. The project was originally estimated to cost $192,395 of which $120,000 of
ARPA funds would be used to monitor 51 major outfalls for long-term monitoring.
However, during the outfall screening and source identification process, the number of
outfalls requiring monitoring was reduced to 18. This resulted in the project coming
under budget, which is typically good news for the City, but this meant the City would be
poised to lose the remaining $50,993 of ARPA funds allocated to this project.
In order to keep the remaining $50,993 of ARPA funds, staff recommends reallocating
this amount from the MS4 Outfall Screening project to an already obligated project,
which is Phase 2 City Hall Moving Services. Phase 1 City Hall Moving Services
involved moving staff, documents, and office content to the new City Hall. On
December 18, 2024, the City Council approved an agreement with BKM Office
Environments, Inc. to carry out Phase 2, which is to relocate the City’s development and
program file storage area from the Annex 1, Annex 2, and Development Services
Buildings (Modular Office Buildings) into the Administration Building where City staff
would continue their efforts of cataloging, digitizing, and destroying files in accordance
with the approved Record Retention Schedule. The cost of this project with
contingencies is $57,628, which would use up the remaining $50,993 of ARPA funds
and will replenish back funds in the General Fund. Phase 2 City Hall Moving Services
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is budgeted in the Old City Hall Move and Demolition Capital Improvement Project (CIP)
budget CIP C0079.
As a result of these reallocations, the City’s new ARPA fund allocations are shown
below:
New City Hall. ......................................................................... $8,501,174
Scholarships for City Programs ................................................... $70,000
MS4 Outfall Screening ................................................................. $69,007
Old City Hall Move and Demolition .............................................. $50,993
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.
For the FY 2023/24 CIP Budget and FY 2024/25 Operating Budget, the $50,993 of
ARPA funds for MS4 Outfall Screening will be reallocated to the Phase 2 City Hall
Moving Services. This will replace the unallocated fund balance in the General Fund
(1000) that was originally to be used for the Phase 2 City Hall Moving Services project.
The Budget Amendment below shows the fund transfer allocation and expenditure
appropriation.
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Below is final ARPA fund allocation for the City of Moorpark.
New City Hall. ......................................................................... $8,501,174
Scholarships for City Programs ................................................... $70,000
MS4 Outfall Screening ................................................................. $69,007
Old City Hall Move and Demolition .............................................. $50,993
Cope Notes Mental Health Text Messaging Services .................. $10,500
Total ....................................................................................... $8,701,674
COUNCIL GOAL COMPLIANCE
This action does not support a current strategic directive.
STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED)
Adopt Resolution No. 2025-____, to amend the Fiscal Year 2023/24 and 2024/25
Budgets to Reallocate the American Rescue Plan Act of 2021 (ARPA) Funds from Non-
Stormwater Municipal Separate Storm Sewer System Major Outfall Screening and
Source Investigation Services to Phase 2 City Hall Moving Services.
Attachment: Draft Resolution No. 2025-____
FUND BALANCE ALLOCATION:
Fund Title Unassigned Fund Bal Revision Amount
ARPA - American Rescue Plan (2800)-$ -$ -$
General Fund (1000)1,481,423.14$ 50,993.04$ 1,532,416.18$
Total 1,532,416.18$
EXPENDITURE APPROPRIATION:
Account Number Current Budget Revision Amended Budget
2800-231-00000-51000 120,000.00$ (50,993.04)$ 69,006.96$
2800-120-C0079-55300 -$ 50,993.04$ 50,993.04$
1000-120-C0079-55300 118,000.00$ (50,993.04)$ 67,006.96$
-$ -$
Total 238,000.00$ (50,993.04)$ 187,006.96$
315
RESOLUTION NO. 2025-____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, TO AMEND THE FISCAL
YEAR (FY) 2023/24 CAPITAL IMPROVEMENT PROGRAM
BUDGET AND FY 2024/25 OPERATING BUDGET TO
TRANSFER $50,993 OF PREVIOUSLY APPROPRIATED
ARPA FUND MONIES FROM THE MS4 OUTFALL
SCREENING PROJECT TO PHASE 2 CITY HALL MOVING
SERVICES
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, on September 4, 2024, the City Council adopted Resolution No.
2024-4269 to reallocate 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; and
WHEREAS, the City Council now desires to amend Resolution No. 2024-4269 to
reallocate $50,993 of ARPA monies from the MS4 Outfall Screening Project to the
Phase 2 City Hall Moving Services, which is included in the Old City Hall Move and
Demolition Project (C0079); and
WHEREAS, Exhibit A hereof describes the above budget amendment.
ATTACHMENT
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Resolution No. 2025-___
Page 2
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. A Budget Amendment to appropriate $50,993 of ARPA monies
from the MS4 Outfall Screening Project to the Phase 2 City Hall Moving Services, as
more particularly described in Exhibit A, attached hereto, is hereby approved.
SECTION 2. The City Clerk shall certify to the adoption of this resolution and
shall cause a certified resolution to be filed in the book of original resolutions.
PASSED AND ADOPTED this 15th day of January, 2025.
________________________________
Chris R. Enegren, Mayor
ATTEST:
___________________________________
Ky Spangler, City Clerk
Exhibit A – Budget Amendment
317
FUND BALANCE ALLOCATION:
Fund Title Unassigned Fund Bal Revision Amount
ARPA - American Rescue Plan (2800)-$ -$ -$
General Fund (1000)1,481,423.14$ 50,993.04$ 1,532,416.18$
Total 1,532,416.18$
EXPENDITURE APPROPRIATION:
Account Number Current Budget Revision Amended Budget
2800-231-00000-51000 120,000.00$ (50,993.04)$ 69,006.96$
2800-120-C0079-55300 -$ 50,993.04$ 50,993.04$
1000-120-C0079-55300 118,000.00$ (50,993.04)$ 67,006.96$
-$ -$
Total 238,000.00$ (50,993.04)$ 187,006.96$
EXHIBIT A
BUDGET AMENDMENT FOR
ARPA FUNDS ALLOCATION (FUND 2800)
FY 2024/2025
318