PRESENTER: Presenter
Jared Werner, Assistant City Manager
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SUBJECT: Title
Discuss and consider the renewal of an agreement with -------------------the McKenna Foundation for the purpose of providing up to the remaining allocation from the City’s American Rescue Plan Act (ARPA) funds one-time $500,000 contribution for utility bill assistance programming.
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DEPARTMENT: N/A
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COUNCIL DISTRICTS IMPACTED: All
BACKGROUND INFORMATION:
At its 9/12/22 meeting, Council approved a partnership with the McKenna Foundation for administration and distribution of the City’s one-time commitment of $500,000 of American Rescue Funds Act (ARPA) funds into existing utility assistance programs. This contract expired on 9/30/23.
Approximately $150,000 of the original commitment remains to be utilized. Staff is recommending the renewal of the existing agreement with the McKenna Foundation to the earlier of 9/30/26 or whenever funds are exhausted. This proposal was presented to the Finance and Audit Committee at its 9/25/23 meeting and staff was directed to bring the item forward to Council at the 10/9/23 meeting. Based on the recent demand for the program, we anticipate the remaining funds will be exhausted by the end of the calendar year or soon thereafter.
This collaboration and partnership with the McKenna foundation has resulted in various efficiencies and enhancements for supporting utility assistance in New Braunfels. Prior to the involvement of McKenna, the application process was manual, with a processing time of approximately 6 weeks. The current application process is entirely digital, with a processing time of approximately 5-7 days. The New Braunfels public library team has also served as a resource for individuals needing assistance filling out the application. In FY 2023, they assisted hundreds of individuals through the process.
By continuing to inject these funds into the existing utility assistance programs, eligibility, access, and overall impact will continue to be positively impacted.
Once again, the McKenna Foundation will not be assessing any administrative costs to support the program; therefore, all funds will directly go to households and individuals most in need of utility assistance.
ISSUE:
To renew the contract with McKenna Foundation to administer and distribute the remainder of the one-time infusion of $500,000 into utility assistance programs.
FISCAL IMPACT:
Funding is provided through the American Rescue Plan Act to support this additional utility assistance programming. The remaining funds of the original $500,000 commitment will be utilized as program needs are identified.
Recommendation
RECOMMENDATION:
Staff recommends approval the renewal of an agreement with -------------------the McKenna Foundation for the purpose of providing up to the remaining allocation from the City’s American Rescue Plan Act funds initial contribution of $500,000 for utility bill assistance programming.