ITEM TITLE:
City Manager’s Report
SUBMITTED BY: Mark Detter, City Manager
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: N/A
RECOMMENDATION:
Receive and File.
SUMMARY STATEMENT:
Federal Lobbyists-Stratton Edwards of the Capitol Hill Group has provided a 3rd Quarter report for the City Council (attached). Mr. Edwards attended a meeting September 23rd with representatives of the Corp of Engineers related to Valdez potential Port improvements. The Ports Director is working on letters of “intent” to the Corp of Engineers to begin exploring possible enhancements to the Valdez Port.
Ports and Harbor is also working with the Maritime Administration Division under the Department of Transportation Administration to explore funding possibilities.
The important issue for the City Council and Valdez citizens to keep mind when looking at the various sources of federal funding made available in the future is that even if direct funding is not granted via the proposed infrastructure funding other funding opportunities are made available due to a backlog of projects being funded by the infrastructure bill.
ARPA Funding- The City of Valdez has received approval for approximately $930K in ARPA funds as a non-entitlement City. The City has received $465K as the 1st half of the ARPA funds. Another 465K will be distributed to the City in 2022.
The City of Valdez is also on schedule to receive an additional $995,000 (essentially because of our status as an unorganized borough). The funds are allotted to the Census tract that Cordva and Valdez currently comprise. The current discussion is to request these monies based on the new water well project.
Also, AML has informed municipalities in Alaska that additional ARPA Funds may be rewarded by the Treasury Department for local governments that have federal lands within their boundaries and receive PILT monies currently. No estimate has been given on what Valdez may receive from this allotment of money.
The primary issue the Council should consider with these additional funds is should we consider on a case by case basis allotting project funds that were dedicated to these water and sewer projects for other issues such as:
-Senior Housing Project with Cordes.
-Early childhood education/child care assessments.
-Potential funding for vaccine incentives and other COVID mitigation measures.
The ARPA Funds are monies that were unbudgeted and will be assisting with some infrastructure projects related to water and sewer and will be likely be in excess of $2 million. The City needs to keep in mind that these funds should be considered when we are making other potential unbudgeted expenditures.
Economic Diversification Commission-
-Economic Diversification Commission has started setting goals for their group. Two major issues they plan to address in the next year are:
-Housing and housing incentives.
-Childcare.
Childcare-The Assistant City Manager has had contact with the 0-3 families alliance and the group is still exploring option for a community needs assessment study.
Senior Housing Project. Cordes Development is finalizing the application for the Senior Housing project near the Senior Center and Hospital. Initial budget projections appear to contain the following parameters.
Senior Housing Complex-25-30 Units costing $7,000,000-$8,000,000 financed by federal tax credits and home program funds.
Infrastructure improvements, including potential street reconfiguration, storm drainage upgrades, water, sewer, street lighting and possible sidewalks-$1,000,000.
City’s share of these costs are projected to be:
Infrastructure- $1,000,000.
Water, Sewer, and Strom Drainage improvements potentially paid for with CDBG Funds (competitive grant)-$300,000 CDBG Funds, $100,000 City Funds (budget in Project Funds)
Road, Sidewalks, Street Lighting, Engineering-Up to $600,000. $150,000 has already been budgeted in Capital Projects budget. Additional $450,000 could be project funds transferred based on savings realized from ARPA funds on water and sewer projects.
Between $250,000-$300,000 in Housing Funds ($10,000 per unit incentive)
Donation of land (approximately $50,000 in value).
City contribution to project in infrastructure and housing incentives $1.3 million.
Cordes and the City will create a Developer’s Agreement to finalize these details and a Resolution of the City for application to Alaska Department of Housing Finance will be forthcoming in November.
Comprehensive Plan-The Comprehensive Plan will be considered by the Planning Commission on October 27, 2021 and by the City Council on November 2, 2021.