To: Board of County Commissioners
Through: Michelle Halstead, Director, Commissioners’ Office
Prepared By:
prepared
Alex Nelson, Management Analyst I, Commissioners’ Office
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presenter
Presenters: ARPA Team
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Subject:
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2:00 PM *ARPA Information Session and Update
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Purpose and Request:
recommended action
The purpose of this study session is to provide the Board an overview of Arapahoe County’s ARPA program, including key updates to existing allocations, and seek Board direction on two updated requests from Gateway Domestic Violence Services and STRIDE Community Health Center. Staff also will provide a roadmap for future ARPA updates and Board actions.
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Background and Discussion: The American Rescue Plan Act (ARPA) is a $1.9 trillion economic stimulus bill signed into law March 2021. The goal of ARPA is to support public health response, address negative economic impacts resulting from or exacerbated by the COVID-19 public health emergency, replace public sector revenue loss, address premium pay for essential workers, and invest in water, sewer and broadband infrastructure. The legislation builds on the CARES Act funding from 2020, which provided Arapahoe County $114 million in one-time funding. Arapahoe County received over $127 million in ARPA funds, which have to be obligated no later than December 31, 2024, and expended no later than December 31, 2026.
Last year, the Board updated its Response & Recovery Plan goals and objectives and expanded its list of initial programmatic areas for potential funding consideration. The Board also held 14 stakeholder outreach meetings to understand community needs and solicit funding proposals. Based on U.S. Treasury Guidance and stakeholder input, an interdisciplinary staff team presented an allocation approach as well as evaluation criteria matrix to help inform future Board decision-making. This information was presented at a Sept. 21, 2021, study session and received Board approval to move forward. Throughout 2021 and 2022, the Board reviewed numerous proposals within key programmatic areas, completing initial allocations, with numerous investments requiring further information. Links to the previous study sessions are attached for reference.
Revenue Loss Funds
Treasury allows local governments to calculate estimated revenue loss for 2020-2022 and claim it as part of their total ARPA allocation. Generally, the calculations consider the revenue trend three years prior to the pandemic compared to actual revenue collections during the pandemic. The revenue loss category is the most flexible within ARPA, allowing governments to use the funds for any traditional government service that do not violate the Treasury restrictions outlined in the attached presentation.
In September 2021, the Board approved planning assumptions for using the ARPA funds, the first of which is to adopt the maximum amount of federally-defined revenue loss available to provide flexibility in addressing general government concerns. Based on this planning assumption, the Board approved investments in four strategic priority areas, listed below, and directed staff to utilize the remaining $2,300,000 for department requests through the standard 2023 budget process at a June 27, 2022, study session.
Updated ARPA Requests
The Board of County Commissioners previously approved ARPA allocations to STRIDE Community Health Center ($1,590,000 - project no. 29) and Gateway Domestic Violence Services ($1,500,000 - project no. 131), at a December 7, 2021, and September 13, 2022, study session, respectively.
The initial STRIDE Community Health Center proposal focused on providing oral health services in a new Englewood location, building on the senior dental services transition from the dissolution of Tri-County Health Department. With a recent change in organizational leadership, newly completed community assessments and market analysis, STRIDE is requesting to revise their proposal in alignment with their new integrated whole person care approach, which ultimately will result in a new northeast Arapahoe County STRIDE campus to provide team-centered family practice, behavioral health, dental care, women’s health, urgent care, pharmacy, care coordination/patient navigation services.
STRIDE proposes to leverage the County’s ARPA investment by constructing three dental bays and lab within the current Englewood location, expand their mobile health street medicine team, including associated staff. Please refer to the attached proposal for additional information.
The initial Gateway Domestic Violence Services proposal was to expand their south shelter. Gateway is the only organization that provides emergency and supportive services to individuals and dependents experiencing domestic violence. Based on initial BOCC feedback regarding client capacity as well as current infrastructure limitations, the organization identified an opportunity to create a new facility in Aurora (Arapahoe County), that would serve more individuals and provide more wrap around services.
Gateway proposes to leverage the County’s ARPA investment to serve as a local match to secure state grants and other funding sources to construct the new emergency and transitional housing facility. With a trauma informed design, the new location will have two buildings, the first serving as an emergency, non-congregate shelter with 12-16 bedrooms. The second building will include 15-18 transitional private rooms with space for case management, partner organizations, and counseling services. Please refer to the attached proposal for additional information.
Future Timing and Next Steps
Consistent with U.S. Treasury regulations, the County must encumber ARPA funds by Dec. 31, 2024, with capital construction projects able to expend funds by Dec. 31, 2026. Once encumbered, funds must be used for stated purposes; any changes or unspent funds would be returned to the federal government.
BOCC direction to date is to ensure all funds provided from ARPA remain within Arapahoe County. To that end, staff proposes to continue quarterly status updates on allocated funds and associated projects throughout 2023, conducting deeper feasibility dives on outstanding projects beginning in Q3 2023 to make decisions on whether to continue project funding or re-evaluate commitments no later than Q1 2024.
Fiscal Impact: None. The majority of the study session is informational, and the updated requests would not alter the existing ARPA allocation balance.
Alternatives: The Board could amend existing allocations or deny the updated ARPA allocation requests from STRIDE and Gateway.
Alignment with Strategic Plan:
☐Be fiscally sustainable
☐Provide essential and mandated service
☒Be community focused
Staff Recommendation: Staff concurs with the revised proposals from STRIDE and Gateway.
Concurrence: ARPA Team