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City of San Leandro <br />City Council <br />Meeting Date: January 21, 2025 <br />Agenda Number: 5.c. <br />Agenda Section: CONSENT CALENDAR <br />File Number: 25-018 <br />File Type: Staff Report <br />Adopt a Resolution to Appropriate Reallocations of Projects Formerly Funded by ARPA <br />COUNCIL PRIORITY <br />·Infrastructure <br />·COVID Recovery (ARPA Spending Plan) <br />·Fiscal Sustainability and Transparency <br />SUMMARY <br />In December 2024, American Rescue Plan Act (ARPA) funding was reallocated to similar but <br />different projects to ensure the City met the December 31, 2024 Treasury obligation deadline. <br />City staff reviewed the projects and funding sources unallocated with that action and propose new <br />funding sources based on the reallocations. <br /> RECOMMENDATIONS <br />Staff recommends that the City Council adopt a resolution to appropriate reallocations of projects <br />formerly funded by the American Rescue Plan Act (ARPA). <br />BACKGROUND <br />On March 11, 2021, President Biden signed into law the American Rescue Plan Act (ARPA). <br />This $1.9 trillion COVID-19 stimulus package provided significant resources to state, local, <br />territorial, and tribal governments to support urgent COVID-19 response efforts. Within ARPA, the <br />Coronavirus State and Local Fiscal Recovery Fund provided $130.2 billion for local governments <br />split evenly between municipalities and counties. <br />The funding allocation to the City of San Leandro is $18.6 million, which the City received in full. <br />ARPA Funds must have been spent or obligated by December 31, 2024. If obligated, generally <br />defined by the US Treasury as under contract, by December 31, 2024, agencies have until <br />December 31, 2026, to incur the costs. Funds that were not obligated by December 31, 2024 <br />and subsequently spent by December 31, 2026 need to be returned to the US Treasury. <br />To ensure the City did not need to return funds, Council approved a reallocation of several ARPA <br />funded projects at the December 9, 2024 meeting. With that action, funding for two Public Works <br />projects (Lake Chabot Road Stabilization and the Digital Divide project) were removed with intent <br />to return to Council after completing the reallocations and ensuring proper allocations were made <br />to new funding sources. <br />Page 1 City of San Leandro Printed on 9/4/2025