02-15-2022 Council Packet - SpecialCITY OF
I Federal Way
Centered on Opportunity
CITY COUNCIL
SPECIAL MEETING AGENDA
City Hall - Council Chambers*
*remote attendance option available via zoom
February 15, 2021 - 5:00 p.m.
Notice: Due COVID-19 and pursuant to Governor Inslee's Proclamation 20-28 the Mayor and Council encourage
you use one of the following ways to participate in the meeting remotely if you are unable to attend in person:
• Watch the meeting live via Federal Way YouTube Channel
• Call in and listen to the live meeting: (888) 788-0099 or 253-215-8782
• Zoom meeting code: 938 0263 0822 and passcode: 370773
Masks are required inside City Hall, and are to be worn at all times when attending
in -person meetings regardless of vaccination status.
1. CALL MEETING TO ORDER
2. PLEDGE OF ALLEGIANCE
3. STUDY SESSION — AMERICAN RESCUE PLAN ACT (ARPA)
REPORT
• Staff Report: Brian Davis, Interim City Administrator
• Council Discussion
4. ADJOURNMENT
Regular Meetings are recorded and televised live on Government Access Channel 21.
To view Council Meetings online please visit www.cityoffederalway.com.
COUNCIL MEETING DATE: February 15, 2022 ITEM #:
CITY OF FEDERAL WAY
CITY COUNCIL
AGENDA BILL
SUBJECT: AMERICAN RESCUE PLAN ACT (ARPA) UPDATE
POLICY QUESTION: Should Council approve expenditure of ARPA/LFRF projects to maximize Lost Revenue
based on mayor's recommendation and maximize remainder for Public Safety and continue to pursue
community -based organization assistance?
COMMITTEE: N/A MEETING DATE: February 15, 2022
CATEGORY:
❑ Consent ❑ Ordinance ❑ Public Hearing
❑ City Council Business ❑ Resolution ® Other
STAFF REPORT BY: Steve Groom. Finance Director DEPT: Finance
Treasury released its Final Rule on use of fiscal recovery funds on January 1011
The purpose of this presentation is to
1. Provide an executive summary update
2. Communicate the components of the Final Rule that affect city use of ARPA funding
3. Provide a complete update on approvals, obligations and spending to date
4. Outline the potential next steps
Attachments: 1. Staff Report
MAYOR'S RECOMMENDATION: The mayor recommends the city continue to allocate projects in the lost revenue
category cautiously, maximizing the ARPA grant with public safety personnel costs, and pursue community
assistance options.
MAYOR APPROVAL: ' DIRECTOR APPROVAL: �n Z
Initial/Date fI InitiaUDate
COMMITTEE RECOMMENDATION: N/A
Committee Chair Committee Member Committee Member
PROPOSED COUNCIL MOTION: "I move to approve projects and spending categories as presented [or "and as
modified' J. "
(BELOW TO BE COMPLETED BY CITY CLERK'S OFFICE)
COUNCIL ACTION:
❑ APPROVED
COUNCIL BILL #
❑ DENIED
First reading
❑ TABLED/DEFERRED/NO ACTION
Enactment reading
❑ MOVED TO SECOND READING (ordinances only)
ORDINANCE #
REVISED — 11/2019
RESOLUTION #
A§CITY OF
,k� Federal Way
DATE: February 10, 2022
TO: City Council
VIA: Jim Ferrell, Mayor
FROM: Steve Groom, Finance Director
SUBJECT: ARPA Update
FINANCE DEPARTMENT
The purpose of this memo is to provide an outline of the information to be presented at the February 15tn
City Council meeting. Staff will present the following information, and will look forward to answering
questions and taking further staff direction.
Finance Briefing and Process update
1. ARPA Financial Review
• Purpose of ARPA
• Mitigate economic impact of COVID
• Rebuild cities' financial stability
• Recover and restore sustained fiscal health
• Do's and Don'ts
® Match one-time revenue to one-time expense
Prioritize citywide services and over four years
• Avoid creating recurring obligations
• Avoid audit refund risk
2. City internal process
✓ Lost revenue calculation, proposed projects captured (Finance, Economic Development)
✓ Confirm Treasury eligibility rules (Finance, Legal)
• Prioritize, message, execute (Mayor, Council, Staff)
3. New Treasury Final Rule
✓ Released January 10, 2022
✓ New Revenue Formula allows government services at discretion of governing body up to
the lost revenue limit of $14.5 million
✓ New Health & Economic eligibility includes Public Safety
4. Recap of Approvals and Spending
• Budget was amended for the full $19.2 million
Government Services can how go up to $14.5 million
✓ PD Vehicles $2,072,000 (approved October 221)
✓ Parks Trailer Lease $300,000 (approved October 2021)
✓ Pool Slide up to $500,000 (approved December 2021), possible $250,000 grant
pending
✓ Grocery Worker Hazard Pay $650,000 (approved June 2021, $227,500 spent)
✓ Grant Coordination/Grant-writing $700,000 (approved June 2021, $22,000 spent 2021)
✓ Broadband $50,000 (approved September 2021)
[Type here]
• Remainder $3.7 million must be outside of Lost Revenue category
• Treasury Final Rule permits gun violence -related personnel costs
• Community Based organizations (see Economic Development discussion)
Staff recommendation
• Continue to allocate Lost Revenue cautiously. Cautiously authorize the use of one-time funding
on a project -by -project basis in the ARPA category provided by lost revenue, which provides the
most latitude for discretion on the part of governing bodies
• Maximize ARPA contract with Public Safety. Maximize ARPA contract funding as provided for in
the Treasury Final Rule by recognizing Public Safety personnel cost to the extent that the City can
demonstrate gun violence -related activity
• Continue to pursue community assistance possibilities. Continue to consider provision for
community -based organizations, with sufficient consideration of development of criteria,
application process, adoption of council priorities, and staffing up for outreach, engagement,
identification of funding gaps, implementation, compliance monitoring, and other process
factors.
Staff report - ARPA Update and Process for Community Based Organizations 2-9-2022.docx 2