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Receive an update on projects utilizing Solano County American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Funds (SLFRF); and Delegate authority to the County Administrator or designee to execute all documents necessary to close out ARPA expenditure and reporting, including reallocating any eligible unspent funds to the Radio Interoperability Project and any required Appropriation Transfer Requests
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Published Notice Required? Yes_______ No___X__
Public Hearing Required? Yes_______ No ___X___
DEPARTMENTAL RECOMMENDATION:
The County Administrator’s Office recommends the Board of Supervisors:
1. Receive an update on projects utilizing Solano County American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Funds (SLFRF); and
2. Delegate authority to the County Administrator or designee to execute all documents necessary to close out ARPA expenditure and reporting, including reallocating any eligible unspent funds to the Radio Interoperability Project and any required Appropriation Transfer Requests (ATRs).
SUMMARY/DISCUSSION:
Solano County received a direct federal funding allocation under the ARPA SLFRF program of $86,949,405. These funds were intended to provide support to the County in responding to the economic and public health impacts of COVID-19 and impacts on our communities, residents, and businesses. The Board of Supervisors had multiple discussions on ARPA guidelines, received significant public input, and ultimately a total of 61 projects were approved by the Board and the obligation deadline of December 31, 2024 was fully met for 100% of the funds.
As of September 30, 2026, $81,207,102 of the $86,949,405 has been expended (93.4%). Out of the total of 61 projects, four projects were cancelled and their funds were obligated elsewhere. Out of the remaining 57 active projects, 47 projects are completed and 10 are still in progress. Attachment A provides an update on expenditure of all projects as of September 30, 2026.
All projects are being carefully monitored to ensure full expenditure by December 31, 2026. As projects are completed, unspent funding is being identified. Treasury guidelines allow for reallocation only to approved projects that were in obligation prior to December 31, 2024. Based on this, it is recommended that any funds identified between now and the expenditure deadline of December 31, 2026 be reallocated to the Radio Interoperability project to pay for the Phase I Motorola contract. As there are limited opportunities to return to the Board of Supervisors for specific reallocations prior to the December 31, 2026 expenditure date, it is recommended that the Board delegate the authority to the County Administrator or his designee to reallocate funds and take any necessary related budget actions to ensure full expenditure of ARPA funds. A final report on project amounts and expenditures will be provided to the Board.
FINANCIAL IMPACT:
Solano County received a direct federal funding allocation of $86,949,405 under the ARPA SLFRF program. These funds were obligated by the deadline of December 31, 2024 and must be fully expended by December 31, 2026. As of September 30, 2026, $81,207,102 or 93.4% of the funds have been expended with $5,742,304 or 6.6% of the funds remaining.
Per Treasury Rules “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.”
Based on this direction, the Board has the opportunity to reallocate funds that become available to ensure that all ARPA funds are fully expended by the deadline of December 31, 2026. It is recommended that the Board delegate authority to the County Administrator to reallocate funds to the Radio Interoperability project as they become available. This would offset the General Fund for the current obligation and allow for such General Funds to be applied to the subsequent phase of the project.
ALTERNATIVES:
The Board could choose not to receive a status update. This is not recommended as the Board has requested ARPA status updates. The Board could choose not to reallocate the funds to an eligible project. This is not recommended as the funds must be reallocated to an eligible project or they must be returned to the federal government.
OTHER AGENCY INVOLVEMENT:
The County Administrator’s Office and the Auditor Controller’s Office have been working together to ensure the County is meeting ARPA administrative reporting requirements and to identify administrative costs. Many departments are involved with implementation of projects.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION