Discussion and possible action to approve Amendment No. One to the Intergovernmental Agreement with Maricopa County for American Recovery Plan Act funds, reducing the total allocation to $519,500, and allowing Maricopa County to repurpose $100,000 toward a regional West Valley family shelter project.  This reallocation action will help to maintain Peoria’s access to homeless shelter services with the funds that would otherwise be forfeited due to closure of iHELP shelter services contract.

In March 2023, the City was awarded $619,500 in American Recovery Plan Act (ARPA) funds from Maricopa County to support homelessness initiatives in Peoria. The original allocation was designated for three key purposes: summer 2023 heat relief services, enhanced navigation and outreach, and shelter services through two contracted providers.

The heat relief services were fully implemented during the summer of 2023, and those funds have been expended. Since then, one of the City’s contracted shelter providers has discontinued operations, leaving only one shelter partner actively providing services. To ensure that remaining resources continue to be maximized, Maricopa County has invited Peoria to participate in a regional West Valley partnership to establish a collaborative family shelter.

This action aligns with and advances the intent of Resolution No. 2020-56, which authorized Peoria to collaborate with West Valley jurisdictions to develop and implement regional solutions to address homelessness. By redirecting a portion of its ARPA funds to support a shared family shelter initiative, the City continues to demonstrate its commitment to a coordinated, multi-jurisdictional approach that leverages regional capacity and resources to more effectively serve vulnerable populations.

Through Amendment No. 1 to the Intergovernmental Agreement (IGA), $100,000 of the City’s original award will be returned to Maricopa County and redirected toward this regional shelter project. With the amendment, Peoria’s direct ARPA allocation will be reduced to $519,500. The City will continue utilizing its remaining funds exclusively to support services provided by its active shelter partner, while also contributing to a broader West Valley regional effort to address family homelessness.

March 21, 2023 – Council approved acceptance of an American Recovery Plan Act (ARPA) grant from Maricopa County in the amount of $619,500; approved a budget amendment in the amount of $619,500 from the Contingency Account to the ARPA Fund, Other Participation in Outside Programs Account; and authorized staff to execute an Intergovernmental Agreement (IGA) with Maricopa County for the use of these funds, including the submission of all necessary documents and reports required through the IGA (LCON01223).

Staff recommends that the City Council (a) approve Amendment No. 1 to the Intergovernmental Agreement (LCON01223) with Maricopa County for the American Recovery Plan Act (ARPA) funds, reducing the award amount from $619,500 to $519,500; (b) approve a budget amendment to decrease appropriations from $619,500 to $519,500, transferring funds from the ARPA Fund (Other Participation in Outside Programs Account) to the Contingency Account; and (c) authorize staff to execute all necessary documents and reports required under the amended Intergovernmental Agreement.

The City anticipates receiving grant revenue in the amount of $519,500 over the life of the IGA to be expended on approved uses through September 30, 2026.