title
Receive a presentation providing an update on projects utilizing Solano County American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Funds (SLFRF); Consider reallocating eligible unspent funds to the Radio Interoperability Project
body
Published Notice Required? Yes_______ No___X__
Public Hearing Required? Yes_______ No ___X___
DEPARTMENTAL RECOMMENDATION:
Receive a presentation providing an update on projects utilizing Solano County American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Funds (SLFRF) and consider reallocating eligible unspent funds to the Radio Interoperability Project.
SUMMARY:
Solano County received a direct federal funding allocation under the ARPA SLFRF program of $86,949,405. These funds are 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 in March 2023 the Board of Supervisors completed its initial allocation of project funding for the full amount.
In 2024, staff and the Board closely monitored projects and reallocated when necessary to ensure all ARPA SLFRF funds were fully obligated by the Treasury deadline of December 31, 2024. A total of 61 projects were approved by the Board and the obligation deadline was fully met for 100% of the funds.
As of June 30, 2025 (the latest Treasury Reporting period), $71,807,350 has been expended (82.6%). Out of the total of 61 projects, three projects were cancelled prior to the obligation deadline and their funds were obligated elsewhere. Out of the remaining 58 active projects, 32 projects are completed and 26 are still in progress. Attachment A provides an update on expenditure and a brief project status of all projects as of June 30, 2025. Attachment B is the Annual Recovery Plan which was submitted to the Treasury by the deadline of July 31, 2025 and provides and update and performance indicators for all projects.
As of the end of FY2024/25, a total of $814,894 is available from five projects which did not utilize their total allocation, including $220,294 from four contracts which ended in FY2024/25 and did not spend their total obligation and an administrative change in funding to offset the Dixon Corp Yard. It is recommended that these funds and any future funds that become available be reallocated to the Radio Interoperability Project which is an eligible project 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.
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 $814,894 from five 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.
DISCUSSION:
In 2024, staff and the Board closely monitored projects and reallocated when necessary to ensure all ARPA SLFRF funds were fully obligated by the Treasury deadline of December 31, 2024. A total of 61 projects were approved by the Board and the obligation deadline was fully met for 100% of the funds.
Since December 31, 2024, 32 projects have completed and a total of $814,894 is available from completed projects which did not utilize their total allocation. Four contract ended in FY2024/25 and did not spend their total obligation totaling $220,294 available for reallocation, including: the Netravine contract under the Electronic Medical Records project ($144,729); a contract with Workforce Development Board to Sustain/Extend Current Service Delivery Training ($46,936); a contract with Workforce Development Board Small Business Technical Assistance - Business Peer Advisory Groups ($26,360); and a contract with SHELTER, Inc under Revenue Replacement - Emergency Gap Funding ($2,269). (Note: Expenditure amounts may be slightly different than listed in Attachment A due to reconciliation during the accrual period.)
In addition, the Board previously allocated $594,600 of the ARPA Housing Trust Fund for the purchase of the Dixon Corp Yard to be evaluated for the development of low-income housing for agricultural workers. Based on administrative rules regarding the transition of County owned property from the Road Fund, it was determined the County could not purchase the property from itself for fair market value. Therefore, the FY2025/26 Adopted Budget made an administrative adjustment to provide a one-time contribution of the $594,600 to the Road Fund utilizing available ARPA interest income which is not subject to the same rules as the original ARPA allocation. This provides the Road Fund the funds for future purchase of other land to meet their needs while allowing the transfer of the Dixon Corp Yard to the Housing Trust Fund. With this administrative change, the original $594,600 under the ARPA Housing Trust Fund is available for reallocation for a total of $814,894 available for reallocation at this time.
Based on these criteria, there are limited approved projects which meet the criteria of having an obligation for a minimum of $814,894 prior to the obligation deadline of December 31, 2024. In July 2024, the Radio Interoperability project obligated $5,547,613 with Motorola Solutions to connect Vallejo and Benicia to Solano’s P25 system. In October 2024, The Board allocated $250,000 of ARPA funds toward this project. The remainder of the project is funded by a state earmark and General Fund. Should the Board choose to reallocate $814,894 funds to the Radio Interoperability project, the funds would be used to offset General Fund for the current obligation and the General Fund could be used for the next phase of the project which will construction of two new towers and shelters in Dixon and Rio Vista that are needed.
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