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  Time Set   # 29.       
  
Meeting Date: 09/28/2021  
Brief Title:    Initial American Rescue Expenditure Plan
From: Daniel Kim, Interim County Administrator, County Administrator's Office
Staff Contact: Chad Rinde, Chief Financial Officer, Department of Financial Services, x8050

Subject
Approve the initial American Rescue Plan (ARP) expenditure plan including priority project funding and funding categories; provide direction to staff on formation of workgroups; and adopt an ARP Policy to govern use of ARP funds. (No general fund impact) (Kim/Rinde)
Recommended Action
  1. Approve initial American Rescue Plan expenditure plan;
     
  2. Approve priority project funding and funding categories;
     
  3. Provide Board direction to staff on formation of workgroups for further development of projects within funding categories and consider the option for Board liaisons; and
     
  4. Adopt a policy to govern the use of ARP funds.
Strategic Plan Goal(s)
Thriving Residents
Safe Communities
Sustainable Environment
Flourishing Agriculture
Robust Economy
Reason for Recommended Action/Background
Background
 
Over the last several months, staff has worked with the Board of Supervisors on a planning process associated with American Rescue Plan (ARP) funding. This process included the adoption of guiding principles, review of eligibility requirements, soliciting proposals and concepts for use of funds both internally and externally, performing a robust community outreach process, and ultimately coming back before the Board on September 7, 2021, for a workshop on the development of the ARP expenditure plan. A copy of proposals and funding concepts received to date is included as Attachment A.
 
Expenditure Plan
 
The FY 2021-22 Adopted Budget, which will be heard later on the Board agenda of September 28th, proposes to appropriate the entire balance of the County’s $42.8 million in ARP funds. However, at this time, staff are only recommending four priority projects for initial approval which include:
 
Priority Projects Activities Amount
Capay Valley Health & Community Center(1) Medical and dental services for an underserved community $2,250,000
Crisis Now Funding for implementation of 24/7 Crisis Now service $3,000,000
Yolo Regional Food Hub Facility to expand aggregating, processing, storing, and distribution locally farm grown produce $2,000,000
Welcome Baby(2) Provide home visiting to new and at-risk mothers $2,000,000
                                                                                Total $9,250,000
 (1) Total funding for project is $2,500,000, which includes $250,000 of Intergovernmental Transfer Funding (IGT). 
 (2) Funding is less than amount requested as First 5 is expected to pursue matching funds from other agencies.


Should the Board approve these priority projects, staff will work with the proposers to develop contracts and return to the Board of Supervisors for approval. These contracts are anticipated to include all relevant information, including performance measures for the projects.  

For other areas of the plan, staff have developed proposed funding categories, as reflected below.
 
 
Recommended ARP Funding Allocations
ARP Priority Category Activities Amount
Housing/Homeless to Functional Zero Increased permanent and transitional housing, farm worker housing, programming, and planning for paying ongoing case worker supports $7,500,000
Food Security Infrastructure investments and supports to combat food insecurity. $3,000,000
Child, Youth and Family Health equity, 0-5, behavioral health, upstream investments, childcare, internships, home visiting $5,500,000
Mental Health Coordinate response and utilization of varied funding streams $500,000
Community Parks & Facilities County parks and facilities in rural areas $3,000,000
                                                                                Total $19,500,000
Strategic Plan Implementation Activities Amount
Climate Action Implementation The County's Climate Action Plan is being developed; this would be a set aside for implementing projects identified through that process $1,000,000
Economic Development Plan/Activities Development of an Economic Development plan to serve rural and disadvantaged areas and funds for implementation $500,000
Aging Needs Emergency-related supports for seniors $250,000
Broadband Strategic Plan Implementation Set aside funding specifically for Broadband and to leverage toward State funding opportunities $500,000
Water/Wastewater Infrastructure Planning to leverage State funding in disadvantaged and rural areas $1,000,000
                                                                                Total $3,250,000
Priority Projects (Shown Above)   Amount
                                                                                Total $9,250,000
Other Funding Uses Activities Amount
Revenue Reimbursement Can be used for general government expenses or projects that are not eligible for ARP funds $3,100,000
COVID Response Set aside for current and future COVID-19 emergency response needs $1,500,000
ARP Staffing Staffing to support ARP projects and ensure execution. Recommended are a program lead and fiscal support, along with consultants, as necessary $2,000,000
Reserve Funds held in reserve for emerging needs during the ARP plan time horizon. Board can appropriate as needs arise. $4,200,000
                                                                                 Total $10,800,000
Total Recommended ARP Funding Allocations $42,800,000
 
If the Board approves these funding categories in concept, staff will form County workgroups to develop recommendations and return to the Board for approval of funding for specific projects or purposes. Thus, those funds would remain unexpended until approved by the Board for a specific project or purpose. If the ARP appropriation is approved as part of the 2021-22 Adopted Budget, the Board may approve subsequent specific projects or expenditures with a majority vote.
 
The Board asked staff to review several areas of the proposed ARP expenditure plan at their last meeting on September 14, 2021, and bring back a recommendation. Those items are noted as follows:
  1. Welcome Baby – County staff from the Health and Human Services Agency have continued collaboration to refine the Welcome Baby home visiting program to focus on high-risk populations receiving services from Medi-Cal. The staff recommendation includes $2 million in funding for the program. While this is not the full amount requested, staff want to allow time for the program to follow-up on its requests for matching contributions from cities and other partners. If these matching contributions do not materialize, staff will return to the Board to consider options to assist with any remaining funding gap.
  2. Paul’s Place – Staff were asked to review the project proposal from Davis Community Meals and Housing shortly before the September 14, 2021, meeting. In a preliminary analysis, staff determined this is likely an eligible use of ARP funds, but recommend that this request be considered in more detail at the workgroup level with other Housing and Homelessness proposals. This would allow Housing and Homeless proposals to receive equal consideration for the funds set aside in that priority category.
Workgroups
 
For each of the priority categories that have been identified County staff intends to form workgroups that will be led by a County staff member and will obtain input from both internal and external subject matter experts. The tasks to be accomplished by each of these workgroups are as follows:
  • Form group and engage Subject Matter Experts (SME)
  • Review, refine and make recommendations on proposals received to date
  • Identify outcomes and project performance measures
  • Recommend project/procurement approach to full Board
  • Assist in procurement and contract oversight
 
The workgroups are expected to utilize SMEs that are outside of the County. However, to avoid conflicts of interest, SMEs from organizations applying for funds will not be involved in the procurement or decision-making processes, which will be reserved for the County and Board as appropriate.
 
In addition, staff recognize that the Board may desire a heightened level of involvement in the crafting of funding proposals within each category, as well as the ultimate types of projects that will proceed to the full Board for approval. As a result, staff have prepared an option that compliments the workgroup approach described above. The concept and option illustrated in Attachment B would assign Board member liaisons to workgroup staff where the lead individual assigned to that workgroup can periodically check in, report to and update their Board liaisons on progress and receive guidance before returning to the full Board of Supervisors for approval. This option is at the discretion of the Board if it is deemed to add value to the process. Should this approach be utilized, the Board would need to identify members to serve in the role of Board Liaisons for each priority category. 

Policy
 
Staff recommend approving a Board Policy on the administration of ARP funds similar to what the Board approved for CARES Act funding. The key areas of the policy (Attachment C) are summarized below:
 
  • Allowable expenditures – The Chief Financial Officer (CFO) or designee shall review each project or proposed expenditure to determine if it is an allowable use of ARP funds. Should the proposed use of funding not be eligible, the CFO shall advise on the specific concerns or risks promptly and provide any mitigation strategies to maintain allowability.
  • Board Principles – Incorporates Board ARP Principles into policy document.
  • Competitive bidding – The ARP regulation does not incorporate emergency provisions on competitive solicitation; accordingly, the policy recognizes that regular federal procurement standards must be followed which are already incorporated in the County’s Procurement Policy. In general, these standards require that, unless a sub-award of funds goes to a governmental agency, a competitive process needs to occur to ensure compliance. Depending on the project, this would typically be either a competitive grant process (non-profit funding) or competitive procurement (all other purchases), with limited exceptions.  
  • Accounting and Budget Control – The Board provides authorization to the CFO or designee to administratively establish necessary accounting or budget structures in order to maintain budget compliance and reporting compliance with US Treasury requirements.
  • Reporting – ARP Reporting to US Treasury will be performed by the Department of Financial Services. The County Administrator or designee shall report to the Board on actual expenditures, proposed changes in the ARP Plan, and other matters as needed on a regular basis which shall be no less than bi-annual (twice per year).
 
Conclusion
 
Staff recommends that the Board: 
  • Approve the initial ARP expenditure plan,
  • Approve the priority projects and funding categories,
  • Provide direction on formation of workgroups and designate Board liaisons if deemed necessary, and
  • Adopt the ARP policy on use of funds.
Collaborations (including Board advisory groups and external partner agencies)
The ARP process has collaborated with many stakeholders throughout the process including internal departments, other local government agencies, community based organizations, community members, and the public.
Competitive Bid Process
Not applicable.

Fiscal Impact
Fiscal impact (see budgetary detail below)
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
$42,829,540
Explanation (Expenditure and/or Revenue)
Further explanation as needed:
The expenditure plan for ARP will be funded by the County's allocation of ARP funds from the United States Treasury that will be received in the aggregate amount of $42,829,540. This funding will be recieved in two even allocations in May, 2021 and May, 2022.
Attachments
Att. A. ARP Proposal Summary
Att. B. ARP Proposed Workgroups
Att. C. ARP Policy
Att. D. Presentation

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Form Review
Inbox Reviewed By Date
Chad Rinde (Originator) Chad Rinde 09/21/2021 11:13 AM
Daniel Kim Daniel Kim 09/21/2021 03:11 PM
Chad Rinde (Originator) Chad Rinde 09/22/2021 12:31 PM
Financial Services Tom Haynes 09/22/2021 01:58 PM
Phil Pogledich Phil Pogledich 09/22/2021 04:19 PM
Joanne Vanhoosear Joanne Vanhoosear 09/23/2021 08:50 AM
Elisa Sabatini Elisa Sabatini 09/23/2021 09:27 AM
Form Started By: Chad Rinde Started On: 09/20/2021 03:20 PM
Final Approval Date: 09/23/2021

    

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