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HomeMy WebLinkAbout28. 21-583NOVEMBER 23, 2021 21-583 RESOLUTION (CARRIED ____6-0_____ LOST _____ LAID OVER ________WITHDRAWN ________) PURPOSE: APPROPRIATE ARPA FUNDS FOR SPECIFIC INFRASTRUCTURE PROJECTS INITIATED BY: CITY ADMINISTRATION WHEREAS, The City of Oshkosh was awarded $20,514,484 in ARPA (American Rescue Plan Act of 2021) Funds; and WHEREAS, on May 20, 2021 the City received and deposited 50% of the award in the amount of $10,257,242 into a Special Revenue Fund, Fund Number 0224, ARPA Special Revenue; and WHEREAS, the City Council adopted Resolution Number 21-498, “Creating Parameters for Usage of American Rescue Plan (ARPA) Funds; and WHEREAS, Resolution 21-498 states that 75% of the ARPA Funds should be utilized for City infrastructure projects; and WHEREAS, the Finance Director and City Manager has prepared, submitted, and recommended the attached list of projects to appropriate $4,023,050 in four categories. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh funding from ARPA funds received by the City of Oshkosh be appropriated in four categories in the amounts as shown on the attachment to this Resolution: Projects from the 2022 Capital Improvement Program ($2,631,600), Projects which were the result of a 2022 Levy Shortfall ($447,450), IT and Security Projects ($44,000), and the Repayment to the Oshkosh Community Foundation ($900,000), for a total of $4,023,050. TO: Honorable Mayor and Members of the Common Council FROM: Russ Van Gompel, Director of Finance DATE: November 18, 2021 RE: Appropriate ARPA Funds for Specific Infrastructure Projects BACKGROUND Attached is a resolution to appropriate ARPA Funds for Specific Projects. At the November 9th City Council meeting, staff presented two tables, one to address the 75% allocation of ARPA funds to infrastructure, and the remaining 25% for non-infrastructure purposes. Projects in the infrastructure table (attached for your reference) identified by a green shading are included in the attached resolution for the appropriation of ARPA Funds at this time. These projects are summarized in the following categories. Unfunded Projects from 2022 CIP When the Capital Improvement Plan (CIP) was approved by Council in September, there were approximately $2.6 million in projects that were not funded due to Council’s self-imposed borrowing limit of $20 million for 2022. The projects in this category are those that staff believe are needed in the immediate future. A major highlight of this expenditure is the purchase of police and fire radios. These radios require replacement because the technology of the previous radios is now obsolete; we need to replace these radios in 2022. In order to meet advance ordering requirements and get the best pricing, this purchase needs to be confirmed prior to December 14. 2022 Capital Equipment For the 2022 CIP, staff had intended to use $1.5 million in levy support for capital equipment. In order to limit our property tax levy increase, staff was only able to fund capital equipment at $1.1 million. As the attachment shows, there is approximately $447,450 in equipment in the CIP that is not funded. Staff is recommending that these purchases be made with ARPA funds. IT and Security Projects Throughout the course of the COVID emergency, staff has identified other equipment that is needed that we could not acquire with Coronavirus Aid, Relief, and Economic Security Act (CARES) funding. As the attached sheet shows, approximately $44,000 in IT and security equipment is needed that is not funded in the 2022 budget. Repay Community Foundation for Convention Center Improvements In 2007, the Oshkosh Area Community Foundation (OACF) loaned the city $1 million to assist with the payment of Convention Center improvements. With interest capitalized upfront, the total amount to pay back is $1.25 million. The idea was for the loan to be repaid after other debt obligations were met, and through a portion of food and beverage sale proceeds at the Convention Center. Over the course of the past 14 years, the amount remaining on the loan remains slightly over $900,000. FISCAL IMPACT The requested appropriation at this times totals $4,023,050. Based on the ARPA Award of $20,514,484 and Resolution No. 21-498, which directed 75% of ARPA expenditures for City Infrastructure, the remaining ARPA balance for City Infrastructure projects would be $11,311,913. Please contact me if you have any additional questions. RECOMMENDATION Staff recommends that Council approve the attached Resolution. Approved, Mark A. Rohloff City Manager Award to City of Oshkosh $20,514,484 Council Resolution for Infrastructure (75%)$15,385,863 Amount Remaining Projects Approved on October 26, 2021 Server upgrade $20,000 WiFi Hardware $2,000 Video Conferencing $5,800 Surveillance Cameras $4,000 Automatic Vehicle Location $19,100 $50,900 $15,334,963 Projects to be Considered Now Projects from 2022 CIP Police Radios $1,200,000 Fire Radios $689,400 Menominee Beach House $150,000 GOH Lighting $80,000 Station 19 Parking Lot $36,500 Library Generator $160,000 City Hall Entrance Doors $65,700 Concrete Repairs $250,000 $2,631,600 2022 Levy Shortfall Museum Masonry $25,000 Museum General Purpose Room $50,000 Fire Dept Generator $60,000 Fire Hose $51,450 Fire Dept Mattresses $20,000 Fire Nozzles $20,000 Fire Dept Station Renovations $50,000 Fire Dept Turnout Gear $71,000 Senior Center North Front Area $20,000 City Hall Security $80,000 $447,450 IT and Security Projects Additional Laptops for telecommuting (5)$6,000 Computer training lab desktops (17)$12,000 Update squad MDC $26,000 $44,000 Repay Oshkosh Foundation $900,000 $900,000 Total appropriation $4,023,050 $11,311,913 Projects For Future Consideration Potential IT and Security Projects $850,000 $10,461,913 Future CIP Levy Projects Fire Department Generators (3)$600,000 Fire Hose (2023, 2024)$83,150 Museum Masonry (2023)$175,000 Museum General Purpose Room (2023)$150,000 Fire Dept Station Renovations (2023, 2024)$100,000 Fire Dept Turnout Gear (2023, 2024)$152,000 $1,260,150 $9,201,763 Reduce 2023 Debt Financing $5,948,180 $3,253,583 Reduce 2024 Debt Financing $8,250,000 -$4,996,417 Potential ARPA Projects