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HomeMy WebLinkAboutResolutions - 2023.12.07 - 40848 AGENDA ITEM: Appropriating American Rescue Plan Act – Local Fiscal Recovery Funds for WRC Hardship Assistance Program DEPARTMENT: Water Resources Commissioner MEETING: Board of Commissioners DATE: Thursday, December 7, 2023 6:00 PM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2023-3582 _ 23-170 Motion to adopt the attached suggested resolution. ITEM CATEGORY SPONSORED BY Budget Amendment Gwen Markham INTRODUCTION AND BACKGROUND The Cities of Pontiac, Hazel Park, Oak Park, and the Township of Royal Oak, along with other overburdened communities in Oakland County, were disproportionately impacted by the COVID-19 pandemic which exacerbated existing economic challenges in operating and maintaining drinking water and sewer services that are essential to protect public health. Existing water assistance programs that provide financial assistance to households for water bills are intended for households living at or below 200% of the federal poverty level. In Oakland County 9% of households are considered in poverty but approximately 22% of households earn between 200% to 300% of the federal poverty level, a population known by the acronym “ALICE” which stands for, Asset Limited, Income Constrained, Employed and such asset- limited and income-constrained households are unable to afford the basic costs of living, like housing, food, transportation, health care, and utilities. Based on the most recent ALICE report from the United Way for Southeastern Michigan, the ALICE population has household incomes that are too low to pay for basic costs of living in Oakland County, but too high to qualify for programs like the Water Residential Assistance Program offered by the Great Lakes Water Authority. For households earning just above qualifying income limits of existing assistance programs, even a small increase in the basic costs of living or a decrease in income, can be the difference between being financially stable and experiencing a financial hardship. The WRC, in partnership with the United Way for Southeastern Michigan, developed the WRC Hardship Assistance Program, to provide resources to households experiencing an unexpected and temporary financial hardships that would not otherwise qualify for assistance. By lowering household water costs through plumbing repairs, monthly bill payment assistance, or reduction of arrearages, residents are more likely to meet their basic household needs. The WRC Hardship Assistance Program will support the economic resiliency and health of households experiencing temporary financial hardships, in addition to protecting public health and the long-term financial sustainability of water systems. The WRC Hardship Assistance Program will be offered to all Oakland County communities connected to public water and sewer systems and will be funded through public and private donations. Funding in the amount of $200,000 is needed to provide direct utility assistance for qualifying residents including plumbing repairs, monthly bill payment assistance, or reduction of arrearages. Funding in the amount of $100,000 is needed to provide a robust marketing and outreach program to deliver utility assistance to eligible households. BUDGET AMENDMENT REQUIRED: Yes Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at 248.425.5572 or andrewsmb@oakgov.com, or the department contact persons listed for additional information. CONTACT Kelsey Cooke, WRC Manager and Chief Legal Officer Sara Rubino, Drainage District Legal Counsel ITEM REVIEW TRACKING Aaron Snover, Board of Commissioners Created/Initiated - 12/11/2023 David Woodward, Board of Commissioners Approved - 12/12/2023 David Coulter, Executive's Office Approved - 12/12/2023 Lisa Brown, Clerk/Register of Deeds Final Approval - 12/13/2023 AGENDA DEADLINE: 12/07/2023 6:00 PM ATTACHMENTS 1. Schedule A - Budget Amendment 2. 2023-11-29 FINAL Memo to Finance Committee ARPA Funds for Hardship Assistance Program COMMITTEE TRACKING 2023-11-29 Finance - Recommend to Board 2023-12-07 Full Board - Adopt Motioned by: Commissioner Gwen Markham Seconded by: Commissioner Charles Cavell Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ajay Raman, Ann Erickson Gault (18) No: None (0) Abstain: None (0) Absent: (0) Passed December 7, 2023 RESOLUTION #2023-3582 _ 23-170 Sponsored By: Gwen Markham Water Resources Commissioner - Appropriating American Rescue Plan Act – Local Fiscal Recovery Funds for WRC Hardship Assistance Program Chair and Members of the Board: WHEREAS the Oakland County Board of Commissioners adopted Miscellaneous Resolution 22-212 recognizing that the United States Treasury allocated Oakland County approximately $244 million of State and Local Fiscal Recovery Funds established under the American Rescue Plan Act (ARPA) of 2021; and WHEREAS that Miscellaneous Resolution also explained that under the guidance of the Final Rule, Oakland County may use these funds at its discretion to support eligible investments in public health expenditures, address negative economic impacts caused by the public health emergency; replace lost public sector revenue; provide premium pay for essential workers; and invest in water, sewer, and broadband infrastructure; and WHEREAS lack of affordable water is a chronic condition and disparate public health concern that was exacerbated by the COVID-19 pandemic; and NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby appropriates $200,000 in ARPA funds to the United Way for Southeastern Michigan, as program administrator of the WRC Hardship Assistance Program, for direct utility assistance. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners appropriates $100,000 to the WRC for marketing and outreach for utility assistance programs. BE IT FURTHER RESOLVED that approval of the appropriation of ARPA – Local Recovery Funds shall not obligate a commitment of Oakland County’s General Fund; the township shall meet all federal, state, and local legal requirements, Oakland County policies and procedures, and Department of Treasury guidelines for the eligible expenditure of ARPA – Local Recovery Funds. BE IT FURTHER RESOLVED that the budget shall be amended as reflected in Schedule A - Budget Amendment. Chair, the following Commissioners are sponsoring the foregoing Resolution: Gwen Markham. Date: December 12, 2023 David Woodward, Commissioner Date: December 12, 2023 David Coulter, Oakland County Executive Date: December 13, 2023 Lisa Brown, County Clerk / Register of Deeds COMMITTEE TRACKING 2023-11-29 Finance - Recommend to Board 2023-12-07 Full Board - Adopt Motioned by Commissioner Gwen Markham seconded by Commissioner Charles Cavell to adopt the attached Budget Amendment: Appropriating American Rescue Plan Act – Local Fiscal Recovery Funds for WRC Hardship Assistance Program. Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ajay Raman, Ann Erickson Gault (18) No: None (0) Abstain: None (0) Absent: (0) Passed ATTACHMENTS 1. Schedule A - Budget Amendment 2. 2023-11-29 FINAL Memo to Finance Committee ARPA Funds for Hardship Assistance Program STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on December 7, 2023, with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the Circuit Court at Pontiac, Michigan on Thursday, December 7, 2023. Lisa Brown, Oakland County Clerk / Register of Deeds Oakland County, Michigan BOARD OF COMMISSIONERS - ARPA FUNDS - TO THE UNITED WAY OF SOUTHEAST MICHIGAN ADMINISTRATOR $200,000 AND WRC HARDSHIP MARKETING OUTREACH PROGRAM $100,000 Schedule "A" DETAIL R/E Fund Name Division Name Fund # (FND)Cost Center (CCN) # Account # (RC/SC) Program # (PRG)Grant ID (GRN) #Project ID (PROJ) # Region (REG) Budget Fund Affiliate (BFA) Ledger Account Summary Account Title FY 2024 Amendment FY 2025 Amendment FY 2026 Amendment R ARP Local Fiscal Recovery Fund Non-Departmental FND21285 CCN9010101 RC610313 PRG133095 GRN-1004364 PRJ-13423 610000 Federal Operating Grants $300,000 $-$- Total Revenues $300,000 $-$- E ARP Local Fiscal Recovery Fund Non-Departmental FND21285 CCN9010101 SC788001 PRG133095 GRN-1004364 PRJ-13423 BFA57010 788001 Transfer Out $300,000 $-$- Total Expenditures $300,000 $-$- R Water and Sewer General Admin Water Resources FND57010 CCN6010101 RC695500 PRG133095 GRN-1004364 PRJ-13423 BFA21285 695500 Transfers In $300,000 $-$- Total Revenue $300,000 $-$- E Water and Sewer General Admin Water Resources FND57010 CCN6010101 SC730373 PRG149999 GRN-1004364 PRJ-13423 730000 Contractual Services $300,000 $-$- Total Expenditures $300,000 $-$- Form DC–001 OAKLAND COUNTY WATER RESOURCES COMMISSIONER Page 1 of 1 Rev.: 11/05/08 OAKLAND COUNTY WATER RESOURCES COMMISSIONER MEMORANDUM TO: Commissioner Gwen Markham, Chairperson, Finance Committee FROM: Jim Nash, Oakland County Water Resources Commissioner SUBJECT: ARPA Funds for WRC Hardship Assistance Program DATE: November 29, 2023 ________________________________________________________________________________ Lack of affordable water is a chronic condition and disparate public health concern that was exacerbated by the COVID-19 pandemic. This problem is more prominent in communities disproportionately impacted by the pandemic, including the Cities of Pontiac, Hazel Park, Oak Park, and the Township of Royal Oak. Existing water assistance programs have primarily focused on reducing water arrearages for households that are living at or below 200% of the Federal Poverty Level. These programs are designed to prevent water shutoffs and tax certifications that can lead to foreclosure. Unfortunately, these programs serve far fewer households than need assistance. Under the leadership of Commissioner Jim Nash, a team of WRC staff, consultants, and stakeholders conducted an extensive study on improving water affordability. The result of the study was a detailed report entitled, Water Affordability Solutions: An Inside Look at a Water Utility’s Perspective. A key finding of the study demonstrated the need for a water affordability solution that supports a population commonly known by the acronym “ALICE” which stands for, Asset Limited, Income Constrained, Employed. The ALICE population generally have Median Annual Household Incomes ranging from 200% to 300% of Federal Poverty Levels. In Oakland County, it’s estimated that 9% of households live in poverty but 22% are considered ALICE. Based on the most recent ALICE report from the United Way for Southeastern Michigan, these levels are too low to pay for basic costs of living in Oakland County, but too high to qualify for programs like the Water Residential Assistance Program offered by the Great Lakes Water Authority. In partnership with the United Way for Southeastern Michigan, the WRC designed a Hardship Assistance Program to build resilience to increasing water costs. This program recognizes the continued economic hardships for residents who do not qualify for other water assistance programs that protect them from loss of water services and tax certification. The WRC is requesting $200,000 to fund this program and launch its charitable giving campaign to sustain it, as well as an additional $100,000 for marketing and outreach for the program. The United Way for Southeastern Michigan will administer the program that provides direct water utility assistance including plumbing repairs, bill assistance, and water arrearages. The program is open to all Oakland County communities connected to public water and sewer systems. Requested Action: Authorize the release of $200,000 in ARPA Funds to the United Way for Southeastern Michigan, as program administrator for the WRC Hardship Assistance Program, for direct water utility assistance and appropriate $100,000 to the WRC for marketing and outreach. Presenters: Kelsey Cooke, Manager and Sara Rubino, Government Policy Chief Legal Officer Attorney cookek@oakgov.com rubinos@oakgov.com 248-296-1406 248-410-9968