Regular-General Government # 35.
Board of Supervisors
County Administrator
- Meeting Date:
- 06/04/2024
- Brief Title
- American Rescue Plan Update
From:
Gerardo Pinedo, Chief Administrative Officer, County Administrator's Office
Staff Contact:
Alexander Tengolics, Director of Strategic Operations, County Administrator's Office, x8560
Supervisorial District Impact:
Countywide
Subject
Receive update on American Rescue Plan expenditures and closeout plan, approve updated closeout policy, and consider recommended reallocation of ARP funds. (No general fund impact) (Pinedo/Tengolics) (Est. Time: 10 min)
Recommended Action
- Receive update on American Rescue Plan expenditures and closeout plan;
- Approve updated closeout policy; and
- Consider recommended reallocation of ARP funds.
Strategic Plan Goal(s)
 |
Thriving Residents |
 |
Safe Communities |
Reason for Recommended Action/Background
At the April 9, 2024 Board of Supervisors meeting, the Board raised a number of questions regarding the statutory December 31, 2024 deadline to obligate American Rescue Plan (ARP) funds; specifically, whether remaining funds that had been encumbered under a contract expiring December 31, 2024 would be subject to reversion. The Department of Treasury recently released updated guidance pertaining to this issue:
After the December 31, 2024, obligation deadline, recipients may have excess funds that were obligated as of the deadline but ultimately not expended on an eligible activity. For example, a subrecipient or contractor may perform work under-budget, thereby freeing up previously obligated funds. As another example, the recipient, an auditor, or Treasury may determine that a recipient’s planned project is not an eligible activity. In such cases, the recipient may reclassify the SLFRF funds from the original activity to another project that would be eligible under the SLFRF program rules, including the requirement that the recipient incurred an obligation by December 31, 2024, to expend funds on the activity.
The updated guidance from U.S. Treasury also provides several additional tools with respect to spending down ARP funds and avoiding reversion after the December 31, 2024 obligation deadline. First, the guidance clarifies that interagency agreements or MOUs between departments constitute an obligation. This would allow the County to develop agreements between departments in order to meet the obligation deadline for internal projects such as Crisis Now. Second, the guidance allows ARP funds to be used to cover personnel costs between January 1, 2025 and December 31, 2026 as long as the positions were established and filled prior to December 31, 2024. Finally, the guidance provides that ARP funds may continue to be spent on certain legal and administrative costs associated with ARP funds, such as meeting reporting requirements, Single Audit costs, reviewing and processing invoices, and subrecipient monitoring.
While this guidance allows for a variety of methods to avoid reversion, staff remains concerned with the potential administrative complexity of the guidance. As such, staff is recommending the following options to the Board to ensure the County can retain all received ARP funding as the December 31, 2024 obligation deadline approaches.
1. Delegate authority to the County Administrator and Chief Financial Officer to determine administrative actions to safeguard ARP Funds and engage in any of the following actions as appropriate, effective November 1, 2024 and with contemporaneous notice to the Board, to all unexpended funds:
After the December 31, 2024, obligation deadline, recipients may have excess funds that were obligated as of the deadline but ultimately not expended on an eligible activity. For example, a subrecipient or contractor may perform work under-budget, thereby freeing up previously obligated funds. As another example, the recipient, an auditor, or Treasury may determine that a recipient’s planned project is not an eligible activity. In such cases, the recipient may reclassify the SLFRF funds from the original activity to another project that would be eligible under the SLFRF program rules, including the requirement that the recipient incurred an obligation by December 31, 2024, to expend funds on the activity.
The updated guidance from U.S. Treasury also provides several additional tools with respect to spending down ARP funds and avoiding reversion after the December 31, 2024 obligation deadline. First, the guidance clarifies that interagency agreements or MOUs between departments constitute an obligation. This would allow the County to develop agreements between departments in order to meet the obligation deadline for internal projects such as Crisis Now. Second, the guidance allows ARP funds to be used to cover personnel costs between January 1, 2025 and December 31, 2026 as long as the positions were established and filled prior to December 31, 2024. Finally, the guidance provides that ARP funds may continue to be spent on certain legal and administrative costs associated with ARP funds, such as meeting reporting requirements, Single Audit costs, reviewing and processing invoices, and subrecipient monitoring.
While this guidance allows for a variety of methods to avoid reversion, staff remains concerned with the potential administrative complexity of the guidance. As such, staff is recommending the following options to the Board to ensure the County can retain all received ARP funding as the December 31, 2024 obligation deadline approaches.
1. Delegate authority to the County Administrator and Chief Financial Officer to determine administrative actions to safeguard ARP Funds and engage in any of the following actions as appropriate, effective November 1, 2024 and with contemporaneous notice to the Board, to all unexpended funds:
- Administratively apply the revenue recovery mechanism to unexpended funds
- Issue payment of any remaining contracted funds for projects with local government partners (cities, First 5 Yolo; see below table) and apply the revenue recovery tool to any internally obligated funds (see below table)
- Utilize the mechanisms discussed above from the updated guidance from U.S. Treasury.
2. Alternative Board direction
Projects with Local Government Partners
Internally Obligated Funds
| Project Name | Local Government | Project Approval Date | Category | Subcategory | Contract Status | Contract Approval Date | Project Cost | Total Expenditures | Remaining to Expend |
| West Sac Hotel Services Agreement | City of West Sacramento | 1/25/2022 | Priority Category | Housing & Homeless | Executed | 6/30/2023 | $2,449,212.00 | $181,933.62 | $2,267,278.38 |
| West Sac Downtown Streets | City of West Sacramento | 1/25/2022 | Priority Category | Housing & Homeless | Executed | 7/26/2022 | $450,000.00 | $416,534.16 | $33,465.84 |
| YCOE Needs Assessment (Roadmap to the Future) | YCOE | 2/22/2022 | Priority Category | Children, Youth, Family | Executed | 5/24/2022 | $450,000.00 | $200,000.00 | $250,000.00 |
| Caregivers Connection | First 5 | 2/22/2022 | Priority Category | Children, Youth, Family | Executed | 7/26/2022 | $115,000.00 | $50,392.38 | $64,607.62 |
| Boys and Girls Club | City of Woodland | 4/26/2022 | Priority Category | Children, Youth, Family | Executed | 7/26/2022 | $700,000.00 | $300,000.00 | $400,000.00 |
| City of Davis Downtown Streets | City of Davis | 10/25/2022 | Priority Category | Housing & Homeless | Executed | 2/7/2023 | $397,978.00 | $31,347.73 | $366,630.27 |
| Esparto Unified Career Technical Education Building Project | Esparto Unified School District | 12/5/2023 | Staff Recommendations | Community Parks & Facilities | Executed | 2/13/2024 | $538,291.98 | $ - | $538,291.98 |
| Bryte Park | City of West Sacramento | 4/22,2022, 5/24/2022 | Priority Category | Parks and Facilities | Executed | 7/11/2023 | $2,490,273.00 | $373,897.09 | $2,116,375.91 |
| YCOE Greengate | YCOE | 4/26/2022 (Amended) | Priority Category | Children, Youth, Family | Executed | 7/26/2022 | $400,000.00 | $6,058.22 | $393,941.78 |
| Child Care Recovery Package | First 5 | 4/26/2022 (Amended) | Priority Category | Children, Youth, Family | Executed | 7/26/2022 | $1,300,000.00 | $1,287,775.95 | $12,224.05 |
| Welcome Baby | First 5 | 9/28/2021, 03/21/2023, 7/25/23 | Priority Project | N/A | Executed | 11/9/2021 | $2,300,000.00 | $1,662,009.70 | $637,990.30 |
| Total | $11,590,754.98 | $4,509,948.85 | $7,080,806.13 |
Internally Obligated Funds
| Project Name | Project Approval Date | Category | Subcategory | Contract Status | Contract Approval Date | Project Cost | Total Expenditures | Remaining to Expend |
| Crisis Now | 9/28/2021 | Priority Project | N/A | Internal | N/A | $3,000,000 | $ - | $3,000,000 |
| ARPA Administrative | 9/28/2021 | Other | Admin | Internal | N/A | $278,904.39 | $277,587.76 | $1,316.63 |
| Tuli Mem Park Improvements | 3/22/2022 | Priority Category | Parks and Facilities | Internal | N/A | $330,000 | $ - | $330,000 |
| Parks Equipment | 5/24/2022 | Priority Category | Parks and Facilities | Internal | N/A | $150,000 | $113,084.84 | $36,915.16 |
| Prop 68 Parks Match | 5/24/2022 | Priority Category | Parks and Facilities | Internal | N/A | $14,400 | $ - | $14,400 |
| Mental Health Needs Assessment | 7/26/2022 | Priority Category | Mental Health | Internal | N/A | $150,000 | $ - | $150,000 |
| Equitable Community Engagement Strategies | 11/22/2022 | Strategic Plan | Climate Action | Internal | 12/7/2022 | $31,000 | $ - | $31,000 |
| West Sac Economy Inn Lease Extension | 3/21/2023 | Priority Category | Housing & Homeless | Internal | $162,250 | $153,720 | $8,530 | |
| Agricultural Equipment Replacement | 5/23/2023 | Strategic Plan | Climate Action | Internal | $130,000 | $ - | $130,000 | |
| Economic Development | 6/27/2023 | Strategic Plan | Economic Development | Internal | $250,000 | $ - | $250,000 | |
| Base Flood Elevations | 6/27/2023 | Strategic Plan | Water/Wastewater | Pending | $500,000 | $ - | $500,000 | |
| Small Community Utility System Consolidation Study | 6/27/2023 | Strategic Plan | Water/Wastewater | Pending | $300,000 | $ - | $300,000 | |
| Slough Cleaning Permit Program | 6/27/2023 | Strategic Plan | Water/Wastewater | Pending | $200,000 | $ - | $200,000 | |
| Community Benefit Equal Allocation Plan | 7/25/2023 | Other | Staff Recommendations | Internal | $750,000 | $269,000 | $481,000 | |
| Adult Day Health Center Tenant Improvements | 7/25/2023 | Other | Staff Recommendations | Pending | $400,000 | $ - | $400,000 | |
| Sustainability/Climate Action Plan | 7/25/2023 | Strategic Plan | Climate Action | Internal | N/A | $300,000 | $ - | $300,000 |
| Yolo County Food Nonprofit Package | 7/25/2023 | Other | Staff Recommendations | Internal | $250,000 | $ - | $250,000 | |
| Eviction Assistance Prevention Funds | 7/25/2023 | Other | Staff Recommendations | Internal | $250,000 | $ - | $250,000 | |
| Homeless Mobile Medicine Program | 7/25/2023 | Other | Staff Recommendations | Internal | $82,000 | $ - | $82,000 | |
| AWE Early Literacy Computers | 7/25/2023 | Other | Staff Recommendations | Internal | $65,000 | $ - | $65,000 | |
| Yolo County Bookmobile Technology and Data | 7/25/2023 | Other | Staff Recommendations | Internal | $30,372 | $ - | $30,372 | |
| Calfresh Bonus Bucks | 7/25/2023 | Other | Staff Recommendations | Internal | $100,000 | $ - | $100,000 | |
| Project Roomkey Closeout | 7/25/2023 | Other | Staff Recommendations | Internal | $200,000 | $ - | $200,000 | |
| Health Equity Implementation | 12/5/2023 | Staff Recommendations | N/A | Internal | N/A | $115,000 | $ - | $115,000 |
| Yolo County CAAP Tracking Dashboard | 4/9/2024 | Strategic Plan | Climate Action | Internal | N/A | $100,000 | $ - | $100,000 |
| Home Energy Score Pilot Program | 4/9/2024 | Strategic Plan | Climate Action | Internal | N/A | $72,600 | $ - | $72,600 |
| Weatherization Program | 4/9/2024 | Strategic Plan | Climate Action | Internal | N/A | $50,000 | $ - | $50,000 |
| Total | $8,261,526.39 | $813,392.60 | $7,448,133.79 |
Staff also recommends the Board reallocate funding from the projects listed in the table below. These projects have either been completed or the original scope has changed.
Staff is recommending the above identified $672,554.05 in funding be reallocated as described in the table below. Staff believes these recommendations are reflective of Board priorities, support Strategic Plan objectives, and are in alignment with the relevant guidelines. Alternatively, the Board could provide other direction as to how the identified finds could be reallocated.
Staff anticipates returning to the Board in September and again in December to provide an update on progress and the use of the recommended delegated authority. The most recent quarterly and/or final project reports are included as Attachment A. Project Reports and a summary of all ARP allocations and expenditures is included as Attachment B. Additionally, an update from the Yolo County Office of Education (YCOE) on the Roadmap to the Future project is included as Attachment C. YCOE will provide a final report and presentation to the Board in July.
To date, $21,670,729.69 has been expended; when combined with the $3,100,000 that has been designated as revenue recovery funds, the total ARP funds expended increases to $24,770,729.74, approximately 61.5% of the $42.8M Yolo County received through ARP.
| Project Name | Project Approval Date | Category | Subcategory | Total Expenditures | Available to Reallocate | Proposed Reallocation | Reason for Recommendation |
| Econ Dev Strategy | 6/7/2022 | Strategic Plan | Economic Development | $27,950 | $1,800.00 | $1,800.00 | This project was completed. |
| West Sac Economy Inn Lease Extension | 3/21/2023 | Priority Category | Housing & Homeless | $153,720 | $8,530.00 | $8,530.00 | This project was completed. |
| Economic Development | 6/27/2023 | Strategic Plan | Economic Development | $0 | $250,000.00 | $250,000.00 | The Small Community Utility System Consolidation Study is contemplated to provide insight into the feasibility of future infrastructure improvements in Dunnigan that could assist future economic development opportunities. |
| Base Flood Elevations | 6/27/2023 | Strategic Plan | Water/ Wastewater | $0 | $500,000.00 | $100,000.00 | It is anticipated that this project will not require the full allocation. |
| Small Community Utility System Consolidation Study | 6/27/2023 | Strategic Plan | Water/ Wastewater | $0 | $300,000.00 | $100,000.00 | It is anticipated that this project will not require the full allocation. |
| Project Roomkey Closeout | 7/25/2023 | Other | Staff Recommendations | $0 | $200,000.00 | $200,000.00 | This project was duplicative of the West Sac Economy Inn allocation. |
| Child Care Recovery Package | 4/26/2022 (Amended) | Priority Category | Children, Youth, Family | $1,287,775.95 | $12,224.05 | $12,224.05 | This project was completed. |
| Total | $1,469,445.95 | $1,272,554.05 | $672,554.05 |
Staff is recommending the above identified $672,554.05 in funding be reallocated as described in the table below. Staff believes these recommendations are reflective of Board priorities, support Strategic Plan objectives, and are in alignment with the relevant guidelines. Alternatively, the Board could provide other direction as to how the identified finds could be reallocated.
| Proposed Project | Amount | Project Description |
| Yolo First 5 Matching Funds | $135,000.00 | Gap funding to assist First 5 Yolo transition to Medi-Cal billing for ongoing Welcome Baby program services. |
| Crisis Nursery | $200,000.00 | Funding to assist in closing funding gap for Crisis Nursery construction. |
| West Sacramento Health Equity Additional Funding | $35,000.00 | Augmentation to the prior $115,000 allocation to support direct services to address known health equity disparities. |
| Capital Project Reserve | $302,554.05 | Reserve funding to advance major capital projects and mitigated cost increases for projects anticipated to go to construction in the near future. |
| Total | $672,554.05 |
Staff anticipates returning to the Board in September and again in December to provide an update on progress and the use of the recommended delegated authority. The most recent quarterly and/or final project reports are included as Attachment A. Project Reports and a summary of all ARP allocations and expenditures is included as Attachment B. Additionally, an update from the Yolo County Office of Education (YCOE) on the Roadmap to the Future project is included as Attachment C. YCOE will provide a final report and presentation to the Board in July.
To date, $21,670,729.69 has been expended; when combined with the $3,100,000 that has been designated as revenue recovery funds, the total ARP funds expended increases to $24,770,729.74, approximately 61.5% of the $42.8M Yolo County received through ARP.
Collaborations (including Board advisory groups and external partner agencies)
County Administrator's Office
Financial Services
County Counsel
Financial Services
County Counsel
Fiscal Impact
No Fiscal Impact
Fiscal Impact (Expenditure)
- Total cost of recommended action:
- $ 0
- Amount budgeted for expenditure:
- $ 0
- Additional expenditure authority needed:
- $ 0
- One-time commitment:
- Yes
Source of Funds for this Expenditure
- American Rescue Plan Fund
- $0
Further explanation as needed:
No general fund impact is anticipated to occur in association with this item.
Attachments
- Att. A. ARP Project Reports
- Att. B. ARP Summary Report
- Att. C. YCOE Roadmap Update
- Att. D. Presentation
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Berenice Espitia (Originator) | Berenice Espitia | 05/23/2024 02:43 PM |
| Mark Bryan | Mark Bryan | 05/30/2024 04:20 PM |
| Kimberly Hood | Kimberly Hood | 05/30/2024 04:44 PM |
| Tom Haynes | Tom Haynes | 05/30/2024 05:02 PM |
| Cindy Perez | Cindy Perez | 05/30/2024 05:05 PM |
- Form Started By:
- Berenice Espitia
- Started On:
- 05/20/2024 10:57 AM
- Final Approval Date:
- 05/30/2024