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Chief Administrative Office recommending the Board:
1) Affirm that the Chief Administrative Officer is authorized to administer the County’s American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Fund (SLFRF) allocation on behalf of the County pursuant to the Board’s direction;
2) Authorize the Chief Administrative Officer to approve and execute memoranda of understanding (MOUs) with County departments and divisions for the execution of ARPA projects, consistent with Board direction and SLFRF regulations;
3) Authorize County department heads (or CAO division managers) to approve and execute said MOUs on behalf of their departments.
4) Ratify the signatures of the Chief Administrative Officer and the Director of Health and Human Services on MOU 9055 between the Chief Administrative Office and Health and Human Services for the pandemic-related expansion of the General Assistance program.
FUNDING: American Rescue Plan Act State and Local Fiscal Recovery Fund.
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DISCUSSION / BACKGROUND
In March of 2021, the American Rescue Plan Act (ARPA) was signed into law, allocating $1.9 trillion to aid in recovery from the impacts of the COVID-19 pandemic. A portion of this allocation was designated for use under the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program, which provides a direct allocation of funding to counties and cities.
El Dorado County received a $37.46 million ARPA SLFRF. In November 2021, the Board approved an initial allocation of ARPA funding based upon the eligible expenditures as outlined in the U.S. Treasury’s Interim Final Rule that was released in May 2021 (Legistar Item 21-1680). The Board has amended the allocation of funds on several occasions, with the most recent update approved by the Board on April 30, 2024 (Legistar item 24-0786).
The ARPA statute and regulations require that all funds be obligated by December 31, 2024. Any funds not obligated must be returned to the U.S. Treasury. The U.S. Treasury has published a “Coronavirus State and Local Fiscal Recovery Funds Frequently Asked Questions” document, which indicates that certain MOUs between parts of a government are considered obligations by the U.S. Treasury. The Chief Administrative Office currently plans to utilize MOUs to obligate funds for the following ARPA projects: General Assistance expansion (HHSA), South Upper Truckee erosion control project (Transportation), Community HUBS (Library), Tahoe Generator Project (HHSA/Facilities), and Public Health pandemic-related activities (HHSA).
In the interest of clarifying responsibilities and authority for entering into MOUs, it is recommended that the Board explicitly designate the Chief Administrative Officer (CAO) as the County official responsible for the administration of ARPA SLFRF funds and authorize the CAO and department heads to enter into MOUs for the execution of ARPA projects.
For the General Assistance Expansion project, MOU 9055 was executed by the CAO and the HHSA director on September 27, 2024, under their existing general authority to enter into inter-departmental agreements. It is recommended that the Board ratify the execution of that agreement under this authorization to ensure a thorough audit trail of the authority to obligate the funding.
ALTERNATIVES
The Board could not approve this item and ask that each MOU be brought to the Board, but this may risk the funding not being obligated by deadline and returned to the U.S. Treasury.
PRIOR BOARD ACTION
Legistar 21-1680, 11/9/21 - The Board approved the initial allocation of ARPA projects and activities.
Legistar 24-0786, 4/30/24 - The Board received a presentation and approved an update for ARPA projects, reflecting the current ARPA projects.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
All relevant departments are currently engaged in the development of the necessary MOUs.
FINANCIAL IMPACT
This item allows for the execution of the existing ARPA spending plan, as approved by the Board, and will allow for the obligation of ARPA funding in compliance with U.S. Treasury guidelines.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Emma Owens, Principal Management Analyst