TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Discussion and Direction Regarding the Reallocation of Coronavirus State and Local Fiscal Recovery Funds from Wellen Park General Government Building to Fire Station 81 Renovation.
Recommended Action
Possible redirection regarding the use of Coronavirus State and Local Recovery Funds.
Background Information
The following provides a chronological order of events regarding the Coronavirus State and Local Recovery Funds:
Ø June 7, 2021: 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.
Ø April 12, 2022: During the City Commission Regular Meeting, a motion was made to approve using Coronavirus State and Local Recovery Funds for the one-time standard allowance or revenue loss, allowing expenditure flexibility. This allows funding flexibility for any general government expense. Selecting this option did not change the priorities already selected and approved by the Commission.
Ø The following projects currently have SLFRF fund allocations:
Project Name Total Allocated
ü Toledo Blade Boulevard/I-75 Water and Sewer $ 645,587.00
ü Sumter Boulevard/I-75 Water and Sewer $3,809,492.00
ü General Fund Budget Fiscal Year 2023 $ 570,000.00
ü City Website Improvements $ 100,000.00
ü Wellen Park General Government Building $2,000,000.00
ü Hillsborough Boulevard/Cranberry Boulevard Intersection Improvements $1,302,280.00
Ø May 1, 2023: During the City Commission Workshop, staff reported issues with two projects:
1. Wellen Park General Government Building: $1.6 million from the Building Fund was moved out of the project creating a funding shortfall and delay in construction. Building construction will now not be completed in time for the spending deadline of December 31, 2026.
2. Hillsborough Boulevard/Cranberry Boulevard Intersection Improvements: One landowner northeast of the proposed roundabout was very resistant to selling. The land is needed for a large portion of the City road, sidewalk, and stormwater. There was concern that the December 31, 2026, spending deadline will not be met.
There was consensus to bring this back for discussion in 90 to 120 days, on a Commission Regular Meeting Agenda for discussion.
Ø Since the May 1, 2023, City Commission Workshop, the issues with Hillsborough Boulevard/Cranberry Boulevard Intersection Improvements are being resolved via changes in design, causing the design portion to take longer than originally anticipated. Despite these delays, construction funds are still expected to be spent by the December 31, 2026, deadline.
Ø Wellen Park General Government Building remains delayed and underfunded. Staff recommends that the $2 million Wellen Park General Government Building funds be considered for reallocation to a funding shortfall in the Fire Station 81 Renovation. Damages from Hurricane Ian exacerbated the existing building conditions and has affected the remodel plans. The most cost-effective way to address damages, codes and standards upgrades, and the expansion project is to completely rebuild Fire Station 81.
Ø 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 by December 31, 2024, and be spent before December 31, 2026.
Funds may not be used for:
ü Deposits into pension funds.
ü Debt service or replenishing financial revenues.
ü Satisfaction of settlements and judgements.
ü 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.
Strategic Plan
Efficient and Effective Government
Financial Impact
Changes agreed to the use of Coronavirus State and Local Recovery Funds by the Commission at the City Commission Regular Meeting on September 12, 2023, will be presented to the Commission as Fiscal Year 2024 Budget Amendments at the following meetings:
Ø Fire Rescue District Governing Body Special Meeting, October 5, 2023, at 12:00 noon.
Ø City Commission Special Meeting, October 5, 2023, at 1:00 p.m.
Procurement
Procurement code, policies and procedures will be followed when purchases are made.
Attachments:
1. Coronavirus Recovery Fund Update
Prepared by: Valerie Malingowski, Grant Division Manager
Department Director: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager