16 - Approve Addenda III and IV with Resource Management for third party administration of equipment and project purchases using ARPA Funding

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Item No. 16 TO: Mayor, Mayor Pro Tem & City Council FROM: Grayson Path, City Manager SUBJECT: American Rescue Plan Act Coronavirus Local and State Fiscal Recovery Fund Third Party Administrator Services Amendments III and IV DATE: December 13, 2021 BACKGROUND: In March 2021, Congress passed the ARP Act which included funding for local governments in response to the CoVid-19 pandemic. This is a follow up program to the CARES Act that was passed in 2020 which gave the City approximately $1.5 million last year. With the ARP Act, the City received $3 million in August 2021 and will receive another $3 million in 2022. On September 27, 2021, the City entered in to a Third Party Administrator Agreement with Resource Management and Consulting. This agreement is to be amended from time to time as the City develops new projects for the ARPA Funding. The City has therefore approved Amendments I (Ground Storage Facility Generator) and II (Pat Mayse Intake Generator). To utilize this money, we must follow all Federal rules and guidelines for procurement, reporting, documentation, administration, etc. This is a very cumbersome and specialized task. The City of Paris typically contracts out for third party administrator services as we do not have the time or resources to perform these tasks internally. To make mistakes using this funding could bring serious consequences to the City of Paris including jeopardizing our ability to receive funding in the future. STATUS OF ISSUE: In the FY21/22 Budget, the City identified a series of items and equipment to purchase using CARES Funding and ARPA Funding. The City originally planned to purchase the following items using CARES Funding: