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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 Reallocate $173,926 of eligible unspent funds to the Radio Interoperability Project
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Published Notice Required? Yes_______ No___X__
Public Hearing Required? Yes_______ No ___X___
DEPARTMENTAL RECOMMENDATION:
The County Administrators Office recommends the Board of Supervisors receive an update on projects utilizing Solano County American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Funds (SLFRF) and reallocate $173,926 eligible unspent funds to the Radio Interoperability Project.
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 has 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 June 30, 2026, $77,748,732 of the $86,949,405 has been expended (89.4%). Out of the total of 61 projects, four projects were cancelled and their funds were obligated elsewhere. Out of the remaining 57 active projects, 46 projects are completed and 11 are still in progress.
The majority of the projects still in progress are construction related with construction taking place fall 2026. These projects are being carefully monitored to ensure full expenditure by December 31, 2026. Out of the projects that recently completed or are near completion, $173,926 has been identified that can be reallocated. Based on the strict Treasury guidelines for reallocation, it is recommended that the funds be reallocated Radio Interoperability project which meets the terms of obligation prior to December 31, 2024.
Attachment A provides an update on expenditure and a brief project status of all projects as of June 30, 2026. Attachment B outlines the projects that completed or are near completion and have funding available for reallocation.
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 June 30, 2026, $77,748,732 or 89.4% of the funds have been spent, with $9,374,599 or 10.6% of the funds remaining. Nine projects that completed by the end of FY2025/26 or are near completion came in under budget for a total of $173,926.
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 being recommended that the current available amount of $173,926 from nine projects which did not utilize their total allocation as well as any future funding that becomes available based on project completions be reallocated to the Radio Interoperability project. This would offset the General Fund for the current obligation and the General Fund for the project could be used for the next 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 has 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