FOR COUNCIL MEETING OF:

AGENDA ITEM NO.:

TO: CITY COUNCIL
FROM: LINDA
December 12, 2011
7 (c)
SUBJECT: UPDATE ON CITY OF SALEM AMERICAN RECOVERY AND
REINVESTMENT ACT ACTIVITIES
ISSUE:
To provide the City Council with an update on the City's American Recovery and
Reinvestment Act of 2009 activities.
RECOMMENDATION:
Information Only
BACKGROUND:
On February 13, 2009, Congress passed the American Recovery and Reinvestment Act
(Recovery Act) of 2009. President Obama signed the Recovery Act into law four days
later. The Recovery Act was designed with the intent of creating new and saving
existing jobs, spurring economic activity and investment in long-term economic growth,
and fostering unprecedented levels of accountability and transparency in government
spending.
FACTS AND FINDINGS:
The Recovery Act allocated additional funding to existing programs and established
funding for new programs. Depending on the program, funds were either disbursed
from state or other governmental agencies acting as a pass through, distributed through
existing federal agency formula distributions, or allocated through competitive grant
programs (also known as discretionary funding programs).
The City applied for and received funding through each of the three mechanisms noted
above. Applications totaling nearly $83.7 million were prepared and submitted by staff
to federal and state agencies.
Projects submitted by City staff resulted in awards totaling over $13.5 million. While
these projects have provided direct benefit to the City and City staff was instrumental in
securing the awards, in several instances the funding was directed to and managed by
other agencies. The awarded projects discussed below have been divided into two
categories: City Managed and Other Agency Managed Projects. The following
paragraphs summarize the status of projects within these categories.
City Managed Projects
Recovery JAG
In August 2009, the Salem Police Department received $572,169 in Recovery funding
from the Edward Byrne Memorial Justice Assistant Grant (JAG). The intent of the grant
is to provide federal, state and local jurisdictions with funds needed to support law
enforcement. Other local agencies including Keizer Police Department, Marion County
Sheriff, Silverton Police Department, Stayton Police Department and Woodburn Police
Department were also named as recipients of this JAG grant totaling $818,000. As the
lead agency, the Salem Police Department has been assigned monitoring and reporting
responsibilities.
The Salem Police department has used the Recovery funding to purchase several
pieces of equipment to enhance the department's approach to community education
and crime prevention and increase the department's effectiveness and efficiency. Grant
purchases include a mobile interactive crime prevention unit, in-car video systems for
patrol vehicles, a license plate recognition system, fingerprinting equipment and other
safety items.
The immediate impact on the department and community will not be seen for several
months. Due to the complexities of the grant, many of the purchases took longer than
expected and the items are just now being placed into service. To date, 75% of funding
has been expended. The remaining funds have been committed and are expected to
be expended by July 2012.
Community Development Block Grant
The City received a formula allocation of $390,778 through the Recovery Act
Community Development Block Grant (CDBG-R) program. The CDBG-R funds were
coupled with funding from other sources to complete a $1.3 million rehabilitation of the
north and south wings of a medical facility in West Salem servicing homeless and low-
income patients. The rehabilitation will increase the efficiency of patient flow and
provide a dozen new exam rooms, more nurse stations, and additional storage for
medical records.
The rehabilitation and expansion project was completed in February 2011. The
Northwest Human Services facility now has the capacity to serve 4,000 additional new
patients. The project created an average of 1.8 jobs per quarter of construction activity,
and the rehabilitation will allow for the creation of three new, permanent positions.
Homeless Prevention and Rapid Re-Housing
The Homelessness Prevention and Rapid Re-Housing Program (HPRP) was
established to assist families/individuals at risk of becoming homeless and those who
are currently homeless and stand in need of temporary assistance. The City sub-
granted its $597,562 formula grant, less a small amount for administrative costs, to the
Mid-Willamette Community Action Agency. The agency has used the funds to provide
immediate housing assistance to more than 127 households in the form of rent, utilities,
Page 2 Update on American Recovery and Reinvestment Act Activities
moving costs, security deposits, and case management. The City has released nearly
$500,000 to Mid-Willamette Community Action Agency as the agency has submitted
required client documentation. It is anticipated that the remaining funds will be
expended by June 2012.
Public Housing Capital Funds
The Salem Housing Authority (SHA) received a Public Housing Capital Fund formula
allocation of $984,210 from the Department of Housing and Urban Development shortly
after the passage of the Recovery Act. SHA used Recovery Act funding to offset the
cost of exterior painting at Glen Creek Village and roof replacements on 30 public
housing apartments and 18 public housing units. A majority of the grant ($7 4 7, 000) was
dedicated to energy upgrades in 72 public housing units scattered throughout the
community. Upgrades included energy star windows, solar water heaters, energy star
furnaces and ductwork, additional attic and floor insulation, and energy efficiency
lighting.
All construction work was completed and funds expended by April 2010. Employment
activity was reported in two quarters with an average of 3.2 FTE positions per quarter.
The roof replacements and energy efficiency improvements will help preserve and
extend the longevity of these publicly-owned assets, increase the level of comfort
experienced by residents, and reduce the utility cost burden to current and future
residents.
Energy Efficiency Conservation Block Grant (EECGB)
Energy Efficiency Conservation Block Grants are intended to reduce fossil fuel
emissions, reduce energy consumption, and improve energy efficiency in buildings,
transportation, and other sectors while promoting job creation through a sustainable
energy strategy and targeted projects to achieve stated goals. The City received a
formula grant allocation of $1,521,200 for these purposes.
On October 26, 2009, the Council approved the work plan and budget of $79,342 for
developing an energy strategy and designing supportive actions, as required by the
grant. On December 14, 2009, the Council approved the Energy Efficiency and
Conservation Strategy that includes both community and municipal components
described in further detail below.
The community strategy consists of four distinct projects:
Electric Vehicle Charging Stations ($5,000 budget)- The City partnered with
ECOTality and Salem Electric to install14 publicly available charging stations in
central Salem in August 2012. The City will continue to support this installation
through the provision of informational materials, data tracking, and on-going
outreach, as appropriate. As of early November, the charging stations had been
accessed by 182 users.
Page 3 Update on American Recovery and Reinvestment Act Activities
Salem Commercial Lighting Loan Program ($150,000 original budget; $50,000
revised budget) - The Program was designed to provide 1% loans to Salem
businesses that completed an energy efficient lighting retrofit project. Designed
in partnership with Energy Trust of Oregon, Portland General Electric, Salem
Electric, and West Coast Bank, the Program has generated interest but just one
application to date. In August 2011, Council approved redirecting $100,000 of
the funds allocated for this Program to an energy efficient lighting project at
Riverfront Park.
Bicycle and Pedestrian Connections and Access ($85,000 budget)- The project
aims to improve access to bicycle, pedestrian, and transit connections consistent
with the Willamette River Crossing Alternative Modes Study. Targeted projects
include installation of new bicycle lane markings (sharrows) and signage, as well
as covered bicycle shelters and storage lockers. This project is currently
underway with an anticipated completion date of June 2012.
Energy Strategy Outreach and Awareness ($64,964 budget)- To ensure that the
City's efforts continue into perpetuity, as outlined in the grant requirements, the
City established the Energy Strategy Task Force (Task Force) and published
Salem's Community Energy Strategy. With support from the Task Force, the
Energy Strategy was published and distributed, Energy Strategy actions were
refined, Salem's Energy Inventory Report was published, energy and cost
savings tools and resources were added to the City's website (Sustainable
Salem), and two annual energy efficiency awareness forums were held. Grant-
funded activities will conclude with the March 12, 2012 Salem-Keizer
Sustainability Summit at the Salem Conference Center. Expenditures related to
research and development of extensive website content and tools, coordination
with partners, and public outreach have totaled approximately $43,000, while
about $19,000 has been dedicated to staff time to support the activities under
this project.
The municipal strategy identified upgrades in City facilities that would result in the
greatest energy efficiencies and cost savings. Efforts have focused on four distinct
projects:
Improve Energy Efficiency in Lighting Systems ($375,965 budget)- Lighting
system improvements were completed in September 2011 at the Salem Public
Library, City Hall, Council Chambers, West Salem Library, and City Shops
Complex. During the design phase, Energy Trust of Oregon estimated that
energy savings for these lighting upgrades would amount to a 50% reduction in
energy usage costs, which the City has begun to recognize.
Lighting Upgrades at Downtown City Park ($100,000 budget)- The Riverfront
Park pedestrian walkway lighting project is scheduled for completion in May
2012. This project will improve public safety, reduce operating costs, and
address load burden issues with the current circuitry. Funding for this project
was redirected from the Salem Commercial Lighting Loan Program.
Page 4 Update on American Recovery and Reinvestment Act Activities
Improve Energy Efficiency in Building Heating and Cooling Systems ($450,271
original budget; $621,712 revised budget) - Projects have focused on Heating,
Ventilation, and Air Conditioning (HVAC) equipment replacements and increased
energy monitoring at City Hall, City Shops Complex, Liberty Parkade, and
Chemeketa Parkade. Improvements at Chemeketa Parkade and most of City
Hall are now complete, including the replacement of a forty-year-old electric
boiler with a more efficient natural gas boiler. The remaining projects are
scheduled for completion by March 2012. Additional funding for this project was
redirected from identified projects that were not chosen for completion or did not
meet the City's sustainability goals.
Install Solar Powered Compacting Trash Cans ($137,000 budget)- The project
focused on the installation of Solar Powered Compacting trash cans in City
parks where units are in remote or frequently emptied locations. A total of 33
compacting receptacles have been installed, and to-date the City has
experienced a reduction of more than 1 ,000 vehicle miles traveled to these
locations. Allocating less staff time to driving to locations to determine whether
trash cans need emptied is one strategy that has increased productivity and
allowed the maintenance of more park land without increases to staff levels.
Grant activities began in August 2009 and will continue until the grant closes in August
2012. As of October 31, 2011, project expenditures have totaled $1,343,273. Expected
costs for all activities will be approximately $1,719,105, including $206,023 from
incentive funding provided by the Energy Trust of Oregon and Salem Electric. Reported
quarterly jobs represent a combined assessment of 11.31 jobs created or retained over
the seven working quarters.
Local Energy Assurance Planning
In April2010 the City was awarded a $175,000 Local Energy Assurance Planning Grant
from DOE. Funds received under this award will enable the creation of an energy
assurance plan for the City of Salem. The plan will address how the City will recover
and restore energy to interrupted critical functions following an emergency event and
establish the methods and priorities by which critical facilities will be brought back on
line. This planning effort will provide an enhanced awareness of large scale energy
issues and substantive working documents to assist in a methodical, early recovery
from an extended energy disruption.
The University of Oregon Community Service Center (CSC) is leading a collaborative
effort between a city staff workgroup, critical private entities, and utilities within the City
of Salem. This effort has created an interagency energy working group that produced a
draft annex to the Salem Emergency Management Plan and a draft City of Salem Local
Energy Assurance Plan. The draft annex was tested with participants from the working
group and other interested parties during a tabletop exercise on October 5, 2011. An
after-action conference was held on November 15, 2011 to address lessons learned
from the LEAP tabletop exercise. City emergency management planners from Fleet,
Public Works Water Division, Information Technology and the Fire Department continue
to extend the lessons learned into enhanced planning and coordination with suppliers.
Page 5 Update on American Recovery and Reinvestment Act Activities
The reported job creation. over the past four working quarters is .80 FTE. Expenditures
to date equal $50,783, and a payment is pending for an additional $50,000. A final
phase payment to esc for $62,331 will be remitted at the completion of the project-no
later than March 31, 2012. The remaining $11,886.00 will be allocated to Salem's
administrative costs.
Other Agency Managed Projects
Transportation Infrastructure: Pavement Resurfacing
In November 2010, Oregon Department of Transportation (ODOT) completed a $3.9
million Recovery Act project to restore and resurface several segments of Salem arterial
streets. The project contributed to the overall objectives of the Recovery Act by
investing in Salem's transportation system and providing work for local contractors and
suppliers. Recovery Act funds were used to resurface segments of seven arterial
streets: Hyacinth Avenue NE, Chemawa Road NE, Kuebler/Cordon Road SE, Capitol
Street NE, Summer Street NE, Market Street NE, and 13th Street SE.
Most of the work provided a new lift of asphalt on each street segment. Additional work
included minor base repairs in failure areas, striping, ADA ramp upgrades, and signal
upgrades. ODOT was responsible for the management and reporting of this project.
Transportation Infrastructure: Pedestrian/Bicycle Pathway
ODOT is currently managing a project with a total budget of $247,000 to construct a
lighted, concrete multi-use pathway for pedestrians and bicycles in Wallace Marine Park
between the Union Street Railroad Bridge and Glen Creek Road. A total of $50,000 of
Recovery Act funding was awarded for preliminary engineering. The remaining project
funds will come from federal surface transportation funding and Salem Urban Renewal
matching funds. The objective of the project is to increase safety for pedestrians and
bicyclists accessing the Union Street Railroad Bridge by creating a separate route from
the existing vehicular roadway in Wallace Marine Park.
The project began in May 2009 but has been delaye.d due the environmental clearance
process, a budget shortfall, and the work backlog at ODOT during the peak period of
ARRA project delivery. Additional federal grant funding has been requested to address
the budget shortfall. Construction is currently scheduled for summer of 2012 but could
be delayed until 2013, depending on the outcome of the grant application. All ARRA
funds will be expended before the required deadline of September 30, 2015. As the
managing agency, ODOT is responsible for overall job creation and expenditure
tracking for this project.
Transportation Infrastructure: Pedestrian/Bicycle Bridge
In spring of 2009, the City of Salem was awarded $3.5 million in stimulus funds from
ODOT's transportation enhancement program for the second phase restoration of the
Union Street Railroad Pedestrian and Bicycle Bridge. The project has resulted in the
Page 6 Update on American Recovery and Reinvestment Act Activities
encapsulation of lead-based paint, painting, bridge repairs, and installation of security
cameras.
After a competitive bid process, ODOT awarded the restoration contract to S&K
Painting Inc, a contractor out of Clackamas, Oregon. Painting and camera installation
started November 2009 and was completed on May14, 2010. Project savings and
additional transportation enhancement funds were used to complete a minor pier repair
and add security lighting to the towers in September 2011. ODOT has assumed
responsibility for job creation and expenditure tracking on this project.
Diesel Emissions Reduction Act
The City of Portland directed the submission of a successful, multi-agency Recovery Act
grant application to reduce diesel emissions in Oregon. Approximately $203,000 of the
grant award was used to retrofit 28 pieces of City of Salem equipment with compatible
emissions reduction devices, primarily diesel oxidation catalysts and closed crank
ventilation filters.
According to the Environmental Protection Agency's diesel emissions reduction
calculator, devices installed on Salem's fleet will reduce emissions of .02 tons of
particulate matter (PM), .04 tons of hydrocarbons (HC), and .12 tons of carbon
monoxide (CO) on an annual basis. The devices will produce an estimated reduction in
emissions of .24 tons of PM, .45 tons of HC, and 1.52 tons of CO over the lifetime of the
equipment.
Emergency Watershed Protection Program
The US Department of Agriculture's Natural Resources Conservation Service (NRCS)
was allocated Recovery Act dollars to carry out a flood plain easement and natural
habitat restoration project at Salem's Minto-Brown Island Park. The project will restore
167.5 acres to a natural, native condition and maintain new plantings for a period of
three years. One of the project benefits will be improvement in downstream water
quality with the reduction of erosion in the easement. The total estimated amount of the
grant is $1,559,407, including the easement purchase price of $683,512.50.
NRCS is primarily responsible for the management of the project and associated
reporting requirements, but the agency has partnered with the City in the development
of the restoration plan and coordination of site activity. Following a number of public
meetings in late October and November 2009, a restoration plan was finalized.
Restoration activities including the control of invasive species, native grass seeding,
and tree and shrub planting began in April 201 0 and were completed by December
2010. The project is now in a three-year maintenance period that will focus on the
continued control of invasive species, establishment of trees and shrubs, and increasing
plant diversity.
Page 7 Update on American Recovery and Reinvestment Act Activities