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Chief Administrative Office, Central Fiscal Division, recommending the Board approve the following related to the American Rescue Plan Act ("ARPA") Coronavirus State and Local Fiscal Recovery Funds ("SLFRF"):
1) Approve use of ARPA SLFRF Subrecipient Agreement template, pending approval by Risk Management;
2) Authorize Chief Administrative Officer, or designee, to execute Subrecipient Agreements with entities approved for SLFRF funds by prior or future Board direction; and
3) Approve and authorize the Chair to sign a budget transfer appropriating a) operating transfers to County departments from ARPA funds in the amount of $3,500,000 and b) contributions to other governmental agencies in the amount of $750,000 for Fiscal Year 2021-22 expenditures (4/5 vote required).
FUNDING: ARPA SLFRF Funds.
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DISCUSSION / BACKGROUND
On March 11, 2021, President Biden signed into law the American Rescue Plan Act (ARPA), which allocated $1.9 trillion to assist in the recovery from the impacts of the COVID-19 pandemic. El Dorado County is receiving a direct allocation of $37.46 million. Approximately $18.7 million was received in June 2021 and the second payment totaling an additional $18.7 million is scheduled to be delivered in June or July 2022.
On November 9, 2021, the Board approved the allocation of ARPA SLFRF funding based upon a recommendation from the Chief Administrative Officer (21-1680), as follows:
1) Broadband: $5,000,000
2) Parks: $3,000,000 (placeholder in case grant funds are not awarded)
3) Health and Human Services:
a) Public Health Division - $4,378,940
b) Behavioral Health Division - $7,264,000
4) El Dorado County Water Agency: $6,020,000 (For Tier 1 and Tier 2 projects)
5) Cal Tahoe Joint Powers Authority: $183,000
6) Administrative Analyst Supervisor: $779,000 (4 years)
7) Environmental Management: $2,600,000
8) Small Business/Non-Profit: $4,135,060. Included is $813,000 for the El Dorado County Fair Association. The Board directed staff to begin with the Non-Profits to see what the needs are and direct staff to return to the Board with recommendations.
9) Fire District Support: $500,000. The Board directed the Fire Districts to return to the Board with specific examples of priority needs as a system to address both fire and ambulance service.
In order to distribute funds to the Cal Tahoe Joint Powers Authority and Fire Districts, the County will need to enter into subrecipient agreements with the districts and agencies. Subrecipient agreements allow for Federal funds to be utilized by a third-party for an allowable purpose on behalf of the County. A subrecipient agreement template has been drafted, and is being presented for approval. After approval, individual subrecipient agreements with each entity to which the Board has allocated funding will be prepared and executed by the Chief Administrative Officer, or designee. A modified subrecipient agreement will be recommended for approval at a future meeting for Water Agency projects not performed by County Departments.
The Board also approved County departments to utilize ARPA SLFRF funds. The recommended budget transfer appropriates operating transfers in the amount of $3,500,000 from the County's ARPA Special Revenue Fund to Public Health, Mental Health, and Environmental Management, to allow reimbursement of departments' ARPA expenditures in the current fiscal year. Additionally, the budget transfer appropriates $750,000 for contributions to other governmental agencies, representing the estimated current fiscal year expenses for fire districts, Water Agency projects, and the CalTahoe JPA.
ALTERNATIVES
The Board could direct that individual agreements be presented to the Board for approval. This alternative would increase the administrative burden and timeline of the distribution of funds to subrecipients.
PRIOR BOARD ACTION
July 13, 2021 - File 21-1080 - The Board provided funding priorities and directed the CAO to return with recommendations for use of ARPA funds.
November 9, 2021 - File 21-1680 - The Board allocated ARPA funding to various County and outside agency recipients.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
FINANCIAL IMPACT
This item regards the distribution of ARPA SLFRF funds, and is consistent with prior Board direction regarding the use of funds.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Obtain the Chair's signature on the budget transfer and forward to the Chief Administrative Office for processing.
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Kerri Williams-Horn, Chief Fiscal Officer, Chief Administrative Office