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Council awards ARPA‑eligible construction contracts and shifts funds to meet Dec. 31 ARPA obligation deadline

National City Council · November 19, 2024
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Summary

Council approved a series of construction contracts (including a $1.4M police generator project and a $5.7M pavement rehabilitation contract) and a staff plan to use ARPA funds for eligible, shovel‑ready projects to preserve general fund capacity for possible change orders on other ARPA projects.

City staff told the council they must obligate remaining ARPA funds by Dec. 31 and recommended using those eligible funds on projects ready for construction. To meet that deadline and preserve general fund contingency for potential post‑deadline change orders, the council approved appropriating ARPA for the Police Department generator project and awarded the construction contract.

Public Works Director Steve Manganiello outlined the reasoning: shifting ARPA to the generator — a project that is fully scoped and ready to build — lets the city free ~$1.4 million in general fund savings to cover potential change orders on other ARPA projects that cannot be obligated before the deadline. Council members emphasized the time sensitivity of the obligation deadline.

In subsequent votes the council awarded the FY24–25 citywide pavement rehabilitation contract (approximately $5.7 million) and approved the 8th Street Mobility Hub contract for infrastructure supporting the Frank shuttle. Council recorded roll call approvals on each contract.

What council approved

- Award of contract for Police Department generator and electrical upgrades (item 10.16) using ARPA‑eligible appropriation. - Award of FY24–25 pavement rehabilitation contract to ATP General Engineering (item 10.18) and contract for 8th Street Mobility Hub (item 10.19).

Timing and funding

Staff expect contractors to mobilize in January with construction starting in February and substantial completion by the end of summer, weather permitting. Funding sources include ARPA, Transnet, gas tax and other allocations; staff said the plan preserves funding that would otherwise be at risk of lapse if not obligated by the federal deadline.

Council comments also noted the city's project labor agreement will apply to some contracts and that contingency planning is part of project management.