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Receive an update on the CARES Act funding to Solano County and approve revisions to the COVID-19 Pandemic emergency response expenditure plan, based on direction from the Board of Supervisors on August 11, 2020
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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 receive an update on the CARES Act funding to Solano County and approve revisions to the COVID-19 Pandemic emergency response expenditure plan, based on direction from the Board of Supervisors on August 11, 2020.
SUMMARY:
On August 11, 2020 the Board of Supervisors received and approved the proposed Coronavirus Aid, Relief, and Economic Security (CARES) Expenditure Plan outlining the County’s proposed $45.8 million allocation and delegated authority to the County Administrator to take all action necessary to administer the CARES Act funding, including the authority to approve any necessary Appropriation Transfer Requests (ATR). In connection with the Board’s approval, staff were directed to make modifications to the CARES Act Expenditure Plan, increasing funding allocated to Rental Assistance. Staff are recommending the Rental Assistance funding allocation in the plan be increased from $2 million to $4 million. This adjustment to the plan is funded by reductions in Emergency Sheltering Other-TBD of $1.2 million and $800k in Other-TBD. The County Administrator’s Office in working with County Departments have made the requested modifications to the Expenditure Plan and the revised plan is included herein as Attachment A.
In addition to the revised CARES Act Expenditure Plan, the Board requested additional details on specific key priority areas of the plan. These key priority areas include; Rental Assistance, Project Roomkey, Childcare, Small Business Assistance, and Public Outreach and Community Engagement. See Attachments B,C,D,E and F for additional information on each key priority area.
The County Administrator’s Office in coordination with department leadership will continue to refine the CARES Act eligible costs across all County Departments in anticipation of completing a required County plan to be submitted to the State by September 4, 2020.
The County Administrator’s Office is recommending the Board receive an update on the CARES Act funding to Solano County and approve revisions to the COVID-19 Pandemic emergency response expenditure plan, based on previous Board direction on August 11, 2020.
FINANCIAL IMPACT:
Federal CARES Act funding recently approved by the State of California Budget for FY2020/21 includes an allocation to Solano County of $45.8 million to address costs for responding to COVID-19. Funding must be utilized to address COVID response costs in FY2019/20 and in FY2020/21. As part of the FY2019/20 year-end close, departments have reflected CARES Act funding to offset eligible costs based on actual expenditures through June 30, 2020. In preparing FY2020/21 Supplemental Budget to be presented to the Board in September 2020, County departments are reflecting CARES Act response related costs and revenue for July 1, 2020 through December 30, 2020. The costs associated with preparing the agenda item are nominal and absorbed by the department’s FY2020/21 Preliminary Budget.
DISCUSSION:
Background:
The CARES Act, signed into law on March 27, 2020, included $150 Billion in Coronavirus Relief Fund (CRF) allocations for State, Local, and Tribal governments. While the County of Solano fell under the population threshold of 500,000 population to receive a direct allocation from the federally approved and funded CRF, the California State Budget included a proposal to share $1.3 Billion of the State’s CRF allocation with all counties and cities.
On June 29, 2020, Governor Gavin Newsom signed the 2020/21 Budget, which made formal the allocation of $45.8 Million in CRF funds to the County of Solano for purposes consistent with the guidance provided by the U.S. Department of the Treasury.
On August 11, 2020 the Board of Supervisors received detailed information on the CARES Act guidelines and took action to approve the Solano County Proposed Expenditure Plan outlining the planned utilization of the $45.8 million. In connection with the Board approval, staff were asked to provide minor revisions to the plan, increasing the funding dedicated to the proposed Rental Assistance Program. Additionally, the Board asked staff to provide further details on the following key priority areas of the plan; Rental Assistance, Project Roomkey, Childcare, Small Business Assistance, and Public Outreach and Community Engagement. Details on these key priority areas are included in Attachments B,C,D,E and F.
Access and receipt of CARES Act funding allocation requires that the County adhere to both federal and State guidelines. The guidelines include a requirement that CARES Act expenditures must be incurred between March 1, 2020 and December 30, 2020 and be due to the Public Health emergency with respect to COVID-19. CARES Act funds not spent by the County will need to be returned to the State. The window of time to plan and spend the CARES Act allocation is currently 10 months, although the COVID-19 impacts may be longer.
The State Department of Finance in coordination with other State and Federal Agencies have been working to develop and issue State refinements on the guidelines for eligible costs and required reporting on the use of the funds. Some details / guidelines are still pending. The initial guidelines on the utilization of the federal CARES Act funding outlining areas where the funding can be utilized in responding to COVID-19 were provided in connection with the August 11, 2020 Board Report. Included in Attachment G herein is additional guidance from the Department of the Treasury on the Federal reporting requirements.
The full U.S. Department of the Treasury guidance and FAQs are available online here: https://home.treasury.gov/policy-issues/cares/state-and-local-governments.
As the State finalizes guidance on the CARES Act spending and reporting over the coming weeks County staff will continue to share updates with the Board as necessary.
ALTERNATIVES:
The Board of Supervisors could:
1. Delay receiving an update on CARES Act funding, or the proposed expenditure plan; however, this is not recommended as the County has incurred expense in responding to the COVID-19 pandemic medical emergency and anticipates additional COVID-19 response and utilization of this critical funding source will assist the County in addressing many of these previously unfunded costs.
2. The Board could consider the revised plan and identify additional areas for revision and direct staff make the necessary modifications in finalizing the initial plan for the September 4, 2020 State reporting due date.
OTHER AGENCY INVOLVEMENT:
The County Administrator, County Departments, and other local agencies including but not limited to; Solano Transportation Authority (STA), Workforce Development, CAP Solano, City Management and City Housing Coordinators, the Food Bank, providers under First 5 Solano, and other County contractors were involved in developing estimates of need in the COVID-19 emergency response included in this report.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION