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VI.1. Authorize Spending of American Rescue Plan Act (ARPA) Funds; BishopNovember 14, 2022 Council Report 2022-108 AUTHORIZE SPENDING OF AMERICAN RESCUE PLAN ACT (ARPA) FUNDS Proposed Action Staff recommends that the Council approve the following motion: Move that the Hopkins City Council authorize spending of American Rescue Plan Act Funds based on the attached summary. Overview During 2021, the City of Hopkins was allocated $2,018,224 in federal grant aid through ARPA. The City has until the end of 2024 to spend the funds on eligible costs. City Council met and discussed ARPA in January, February and March of 2022. A spending plan was developed based on City Council priorities, community input and staff recommendations. The spending plan was adopted by City Council on April 5, 2022. The City has $457,000 of remaining funds based on unallocated amounts and savings from the original plan. Staff presented a list of options for the remaining funds at the October 11, 2022 work session. The list has been updated based on City Council input. A revolving loan fund for energy efficiency improvements was removed from the list (planned to be funded from other sources). The Green Cost Share program was increased from $100,000 to $155,000. Additional revenue loss for the Arts Center and Marketing were added. Supporting Information • Summary of American Rescue Plan Act Spending Plan ______________________________ Nick Bishop, Finance Director Summary of American Rescue Plan Act Spending Plan Green Cost Share Program - $155,000 To establish a Green Cost Share program Council would dedicate $155,000, the funds would provide a city funded match towards energy improvements. Funds would either need to be replenished or the program would have a limited run. Equity Assessment Training & Implementation - $10,000 Allocate $10,000 to continued training and implementation work related to the City’s Strategic Racial Equity Action Plan (currently being developed with Culture Brokers). Youth Workforce Development Intern 2023 - $7,000 Allocate an additional $7,000 to have an intern or part-time program coordinator to assist in the summer of 2023 with the administration and supervision of the program. Staff would apply for grants for fund the youth compensation. Parking ramp revenue loss to pay for maintenance - $50,000 The parking fund continues to struggle and there are some roofed areas over the elevator and stairwells in need of repair. An allocation in this area would prevent the fund from going further into deficit. Police Capital Requests - $90,000 Mobile Video Surveillance Camera - $70,000 – Tower elevated surveillance cameras that can be moved and located for additional security for large events such as Raspberry Festival and Mainstreet Days. The tower can be deployed in areas needing additional surveillance/monitoring due to criminal activity. Four (4) Automatic License Plate Readers $20,000 – Stationary camera systems placed on or near public roadways to locate stolen vehicles or wanted persons and to track vehicles for traffic impact studies. Planner position extension into 2025 - $50,000 Allocate $50,000 towards the planner through the revenue loss rules and dedicating the funds to funding the position for part of 2025. Dow Towers Dedication towards Sprinkler’s - $50,000 Fire Alarm and Sprinkler System Installation - $50,000 – Dow Towers is seeking financial assistance to cover a portion of the cost related to installing a sprinkler system and an upgraded fire alarm system in the building. At this time, Dow Towers does not have a sprinkler system to stop or prevent a fire outbreak in the building. The sprinkler system is a life-saving building tool that Dow Towers requires. The matching amount will make Hopkins HRA/Dow Towers more competitive in grant funding with Hennepin County, the State of Minnesota and HUD to help cover the full cost of installing a new sprinkler system and an upgraded fire alarm system. Arts Center Revenue Loss - $25,000 The Arts Center Fund carried a deficit fund balance before the COVID-19 Pandemic. The City h as levied $60,000 annually since 2020 to reduce the deficit. Additional amounts can be used to further reduce the deficit. Marketing - $20,000 The City plans to increase its marketing presence in 2023 based on City Council direction.