TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Discussion Regarding the Reallocation of Coronavirus State and Local Recovery Funds in the Amount of $2,000,000 From the Fire Station 81 Remodel Project to the Road Rehabilitation Project.
Recommended Action
No action required at this time. Project funds have been reallocated from Fire Station 81 to the Road Rehabilitation project due to contracting deadlines.
Background Information
The City of North Port, a direct recipient of Coronavirus State and Local Fiscal Recovery Funds (SLFRF), received $4,213,679.50 on June 7, 2021, from the U.S. Department of the Treasury (U.S. Treasury) and received $4,213,679.50 on June 9, 2022, for a total of $8,427,359.00.
During the City Commission Regular Meeting held on April 12, 2022, the Commission approved using Coronavirus State and Local Recovery Funds for the one-time standard allowance or revenue loss, allowing expenditure flexibility. Selecting this option did not change the priorities already selected and approved by the Commission.
The following projects are currently receiving SLFRF funds:
Project Name Total Allocated
• Toledo Blade Boulevard/I-75 Water and Sewer $ 645,587.00
• Sumter Boulevard/I-75 Water and Sewer $3,809,492.00
• General Fund Budget Fiscal Year 2023 $ 570,000.00
• City Website Improvements $ 100,000.00
• Fire Station 81 Remodel $2,000,000.00
• Hillsborough/Cranberry Intersection $1,302,280.00
Staff and the City Attorney’s Office recently met and discovered that the original Fire Station 81 Remodel Request for Proposals bid did not have the necessary federal language to meet advertising requirements of the SLFRF program. As a result, the SLFRF funding for Fire Station 81 Remodel Project will be reallocated to the next Road Rehabilitation Project that can be bid and under contract by the December 30, 2024, deadline with funds spent prior to the December 30, 2026, deadline.
As a reminder, the City is still responsible for regularly reporting all SLFRF project expenditures to the U.S. Treasury. Projects selected must follow federal procurement standards. All funds must be obligated and be under contract by December 31, 2024, and be spent before December 31, 2026.
Funds may not be used for:
• Deposits into pension funds.
• Debt service or replenishing financial revenues.
• Satisfaction of settlements and judgements.
• Projects that undermine COVID-19 mitigation practices or conflict with the purpose of the American Rescue Plan Act (i.e., projects that do not benefit the community/support general government services).
Staff will give an update on SLFRF funded project status during budget workshops.
Strategic Plan
Efficient and Effective Government
Financial Impact
$2,000,000 in SLFRF funds currently in the General Fund for the Fire Station 81 Remodel Project will be transferred to the Road Rehabilitation Project and $2,000,000 in Road Rehabilitation Project funds in Surtax will be transferred to the Fire Station 81 Remodel Project.
Procurement
Procurement Code, policies and procedures will be followed when the purchase is made.
Attachments:
1. Memo to Commission
Prepared by: Valerie Malingowski, Grant Division Manager
Department Director: A. Jerome Fletcher II, ICMA-CM, MPA City Manager