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Recommendation to Provide Further Direction to Staff Regarding the Allocation of $28.68 Million of Funding from the Federal Government Through the American Rescue Plan Act of 2021 to Assist with Recovery from the Impacts of the COVID-19 Pandemic. (City Manager 10021030/Finance 10024051)
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To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The City of Alameda (City) will receive a total of approximately $28.68 million in American Rescue Plan Act of 2021 (ARPA) funding. On June 17, 2021 the City received the first $14.34 million tranche of funding. The second tranche of $14.34 million is expected in 2022.
This report presents a potential spending plan within the City's ARPA funding allocation based on the direction provided by the City Council at the May 20, 2021 and July 20, 2021 City Council meetings. Based on that direction, the ARPA spending plan is now focused on primarily on housing with some support for technology to assist with the City's COVID-19 recovery efforts. These priorities are consistent with the spending principles discussed at prior meetings, including an emphasis on support for those in our community who were (and continue to be) disproportionately impacted by the pandemic.
BACKGROUND
According to the allocations published by United States Department of the Treasury (Treasury) in May 2021, the City is eligible to receive $28,679,908 in ARPA funding over two years. The City received the first tranche of $14.34 million on June 17, 2021, and the second tranche is expected in 2022. Eligible costs must be incurred or obligated to infrastructure projects by December 31, 2024, and the period of performance for obligated funds will run until December 31, 2026. A summary of the Treasury guidance on eligible uses of ARPA funding is provided in Exhibit 1.
Staff initially sought direction from City Council on May 20, 2021 (File 2021-0824) on a framework for considering the allocation of the funding. The pr...
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