City of Fayetteville - File #: 23-3241

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TO: Mayor and Members of City Council

THRU: Douglas J. Hewett, City Manager

FROM: Brook M. Redding, Special Projects Manager

DATE: February 27, 2023

RE:

Title

American Rescue Plan, State and Local Fiscal Recovery Fund (ARP-SLFRF) program and project update

end

COUNCIL DISTRICT(S):

Council District(s)

ALL

b

Relationship To Strategic Plan:

This item supports the City’s Mission and Goals of the Council adopted Strategic Plan

Executive Summary:

The City of Fayetteville has made significant progress utilizing the $40.4 million in American Rescue Plan Act (ARPA) funds to address the COVID-19 pandemic's negative impact on our community. Through Mayor and City Council's strategy, inter-departmental collaborations, and community engagement, we've identified priorities for the use of ARPA funds to support public health, provide critical resources, and invest in the city's infrastructure.

Our portfolio includes projects and programs aimed at addressing immediate and ongoing community needs while laying a foundation for a resilient future. The City's focus on equity is evident in the portfolio, with a particular emphasis on addressing the pandemic's disproportionate impact on marginalized communities. We're committed to using evidence-based practices to ensure effective and efficient use of ARPA funds.

This report provides an overview and update on the projects and programs funded to date, including upcoming projects and programs. The City of Fayetteville remains dedicated to using the ARPA funds to support our community's needs, promote equitable outcomes, and build a strong and resilient future.

Background:

The American Rescue Plan Act (ARPA) was signed into law by President Joe Biden on March 11, 2021, providing a once-in-a-generation investment opportunity for the City of Fayetteville to address the disproportionate impact of the COVID-19 pandemic on our community. The City was awarded the funds through the U.S. Treasury's State and Local Fiscal Recovery Fund (ARP-SLFRF), which must be spent by December 2026. In November and December 2021, the Mayor and City Council developed a strategy for the allocation of the funds, with input from the community, recommendations from studies, and inter-departmental collaborations. This strategy was used to identify key priorities for the use of the funds, resulting in an extensive portfolio of projects and programs.

The City's portfolio includes initiatives to support business and economic vitality, housing and community livability, and infrastructure and community investments. With a focus on equity, the portfolio aims to address the disparate impact of the pandemic on marginalized communities. Evidence-based practices are used to inform the City's decisions to ensure the efficient and effective use of ARPA funds.

Issues/Analysis:

The following is a project inventory and summary, providing an overview of the various projects and programs in the City of Fayetteville's ARPA portfolio. This section aims to provide a mid-level picture of the City's progress in obligating and executing the ARPA portfolio, as well as to facilitate transparency and accountability in using these critical funds.

Council Strategy - Business & Economic Vitality

The Business and Economic Vitality section of the ARPA portfolio includes several projects aimed at boosting economic development in the City of Fayetteville. The portfolio consists of a total of $9,958,808 in funding. It features programs such as the Commercial Corridor Improvement Grant Program, the COVID Small Business Grant Program, and the Equity Venture Capital Grant Program, which focus on investing in business development. Additionally, the portfolio includes the Childcare Employee Retention Grant Program and the Workforce Development Program to support workforce development. Finally, the Government Support Ops category includes several IT projects aimed at improving customer service and enhancing the efficiency of city operations.

Investment in Business Development
Program/Project	Funding
Commercial Corridor Improvement Grant Program	$1,000,000
Description: Provides funding to improve storefronts in disproportionately impacted areas within Fayetteville, NC, with a maximum grant award of $50,000 and a 25% match required, and is available for small for-profit businesses within the city who have less than 200 employees and meet criteria set forth by ARPA 2021.
COVID Small Business Assistance Grant Program	$2,000,000
Description: Provides up to $50,000 in aid to businesses impacted by COVID-19 in qualified census tracts with less than 10% net revenue growth and less than 200 employees to help with payroll, rent, and other operating costs, with eligible reimbursement categories such as COVID mitigation supplies.
Equity Venture Capital Grant Program	$2,500,000
Description: Provides non-interest-bearing capital to small minority-owned companies that meet eligibility criteria and have less than 200 employees, with a goal to grow ten firms by ten or more employees within five years, and also provides business counseling by local partners, with a secondary goal of partnering with small businesses to pursue opportunities for local procurement and supporting community goals.
Investment in Workforce
Childcare Employee Retention Grant Program	$1,000,000
Description: Provide bonuses and support for new and returning early childhood educators working in licensed childcare facilities in Qualified Census Tracks. To retain, recruit, and reclaim educators who serve children from Low- and Moderate-income households with the Partnership for Children of Cumberland County administering and implementing the program.
Workforce Development Program	$1,000,000
Description: Provide funding to multiple non-profits to conduct activities to improve job skills, career readiness, and employment opportunities for participants.
Government Support Operations
City Website Update & Redesign	$150,080
Fire/Police Department Computer Replacement Program	$1,906,728
Citi bot - Customer Service Technology	$47,000
City Domain Migration	$355,000

Council Strategy - Housing and Community Livability

The Housing and Community Livability section of the ARPA portfolio focuses on creating a more resilient and thriving community. $12,278,497 has been allocated to this section, with $4,000,000 dedicated to the Housing Trust Fund and $1,000,000 to the Day Resource Center. The Thriving Communities program has been allocated $5,500,000 for the development of the Tennis Center, while $778,497 has been set aside for Playground Repairs/Refurbishing. An additional $1,000,000 has been set aside to implement the Community Development Center. These programs aim to promote community livability and enhance the quality of life for Fayetteville residents.

Resilient Residents
Program/Project	Funding
Housing Trust Fund	$4,000,000
Description: To provide affordable housing for low- and moderate-income families by financing the development, acquisition, or rehabilitation of rental or homeownership units, as well as providing other related services through non-profits and other eligible organizations in the community.
Homeless Day Resource Center	$1,000,000
Description: Provides support services, such as job training, housing assistance, and healthcare access, to individuals experiencing homelessness and other vulnerable populations in the community.
Thriving Communities
Mazarick Park Tennis Center	$5,500,000
Description: To construct a new facility with tennis courts and a building at Mazarick Park, with an approved budget of $11.5 million, with a scheduled ribbon cutting in late summer 2023.
Playground Repairs/Refurbishing	$778,497
Description: to enhance the safety and accessibility of the existing playground equipment while providing new equipment and features to ensure a fun and engaging experience for children of all ages and abilities.
Expanded Community Capacity
Community Development Center	$1,000,000
Description: to improve the economic prosperity of citizens through job creation and business expansion, and will serve as a hub for educational, mental health services, and entrepreneurial outreach.

Council Strategy - Infrastructure & Community Investment

The Infrastructure & Community Investment section of the ARPA portfolio includes projects and programs aimed at promoting public health and safety, improving infrastructure, and enhancing multimodal accessibility. This section features initiatives such as the Violence Interrupter Program, Bridge Preservation Program, and ADA Compliance program. Additionally, it includes projects for public safety, including the City-Wide Security Access Control System and Gunshot Detection Technology. The section also invests in targeted growth areas, such as the Downtown Streetscape project. The total funding allocated for this section is $11,101,984.

Public Health Resiliency
Program/Project	Funding
Picnic Shelter Replacements	$250,000
Description: To replace and improve the old, deteriorating picnic shelters in city parks with new and modern structures, providing better recreational spaces and promoting community gatherings.
Public Building Maintenance Program	$1,913,000
Description: The public building maintenance program is designed to ensure the maintenance and repair of various public buildings across the city.
Safer Communities
Violence Interrupter Program	$375,400
Description: The Violence Interrupter Program is a community-based initiative to reduce violence and crime by intervening and mediating conflicts before they escalate.
Gunshot Detection Technology - ShotSpotter	$197,500
Description: Implement a gunshot detection and location system designed to provide real-time information to law enforcement to reduce gun violence in targeted areas.
Public Safety Initiatives	$3,855,792
Description: The Public Safety Initiatives project is a group of smaller initiatives, including the Police Department Drone Program, Public Safety Camera Replacement, Rapid DNA Technology, and CAD Consultant, to enhance the capabilities and effectiveness of the Fayetteville Police Department.
City-wide Security Access Control System	$796,693
Description: To implement a new access control system to enhance security and streamline access to city-owned buildings and facilities.
Bridge Preservation Program	$352,799
Description: to maintain and improve the condition of the city's bridges, using ARPA funding for the necessary infrastructure investments to keep bridges safe and functional for the community.
Multimodal Accessibility
ADA Compliance	$375,000
Description: To ensure public facilities, sidewalks, and streets are accessible to people with disabilities to improve infrastructure and public services.
Blanton Road Extension Design	$500,000
Description: To design a new road segment to improve connectivity and ease traffic congestion.
Intersection Improvements	$850,000
Description: To enhance traffic flow and increase pedestrian and cyclist safety through improvements to key intersections in the city.
Parking Lot Resurfacing	$385,800
Description: To repair and improve various parking lots throughout the city, addressing issues such as cracks, potholes, and drainage to ensure the safety and accessibility of the lots.
Ramsey Street Pump Station Replacement - Stormwater	$500,000
Description: To replace the existing wastewater pump station, which has reached the end of its useful life, with a new, more efficient one.
Multi-use Lanes	$375,000
Description: To construct bike lanes and sidewalks to enhance connectivity, mobility, and safety for pedestrians and cyclists.
Invest in Targeted Growth Areas
Downtown Streetscape	$375,000
Description: To enhance the pedestrian environment and improve accessibility, safety, and aesthetics of the streets and public spaces in the downtown area.

Portfolio Administrative

The City Administrative section of the ARPA portfolio is focused on supporting the efficient and effective implementation of the various projects and programs in the portfolio. The employee premium pay for the city was a crucial part of the program to provide additional support and financial relief to the city's essential workers who have borne the brunt of the pandemic. Additionally, this portfolio section includes funding for project management staff and other administrative expenses. By ensuring that the portfolio is well-managed and resources are allocated effectively, the City can maximize the impact of the ARPA funding and ensure that the community benefits from these essential investments.

Program/Project	Funding
Employee Premium Pay	$3,658,205
Description: Provided premium pay to eligible employees who have worked in person during the COVID-19 pandemic, helping to compensate them for the additional risk and hardship that they faced.
Project Administrative	$3,351,061
Description: Supports the coordination and management of various projects, including oversight, reporting, and compliance with regulatory requirements, and utilizes a portion of the funding to cover administrative costs.

Budget Impact:

N/A

Options:

None at this time.

Recommended Action:

None at this time.

Attachments:

ARPA Fund Plan.pdf