DATE: February 6, 2024
TO: Board of Supervisors
SUBMITTED BY: Paul Nerland, County Administrative Officer
SUBJECT: Amendment to State Local Fiscal Recovery Funds Subrecipient Agreement with Calwa Recreation and Park District
RECOMMENDED ACTION(S):
TITLE
1. Approve proposed amendment to the County of Fresno’s American Rescue Plan Act - State Local Fiscal Recovery Fund (ARPA-SLFRF) expenditure plan, approved by the Board on February 1, 2022, amending the scope of work for the earmarked project proposed by Calwa Recreation and Park District (Subrecipient) from Community Center Improvements including connectivity under ARPA-SLFRF Categories A and D, to instead fund capital improvements to reopen the Calwa Community Pool under ARPA-SLFRF Category A; and
2. Approve and authorize the Chairman to execute First Amendment to Subrecipient Agreement No. 22-128 with the Subrecipient for the provision of ARPA-SLFRF, which will revise the expenditure plan, update the modification and hold harmless clauses, and will increase the maximum compensation by $400,000, to a total not to exceed $675,000; and
3. Authorize the County Administrative Officer or designee to approve and execute written changes to the items in the project budget, which, when added together during the term of the Agreement, do not exceed ten percent (10%) of the total maximum compensation payable to Subrecipient, and which do not result in any change to the maximum compensation amount payable to Subrecipient.
REPORT
On February 1, 2022, your Board approved, as part of the ARPA-SLFRF expenditure plan, the earmarking of SLFRF for Community Center Improvements, including connectivity and improvements to the community pool. Approval of the first recommended action will amend your Board-approved ARPA-SLFRF expenditure plan and authorize the Subrecipient to use earmarked funding for capital improvements to help the Subrecipient’s effort to reopen the Calwa Community Pool. Approval of the second recommended action will revise the agreement’s expenditure plan, update the modification and hold harmless clauses, and will increase the maximum compensation by $400,000 to a total not to exceed $675,000.
The recommended amendment will add language to the modification clause of the agreement, which will allow the County’s Administrative Officer or designee to consider and approve written requests for budget revisions that do not exceed a maximum 10% of the maximum compensation under the agreement as amended. The recommended amendment will update language included in hold harmless clause to align with the standard language used in County agreements. Recommended action three will delegate limited signature authority to the County Administrative Officer or designee to make the previously described revisions to the agreement’s budget, if requested. There is no Net County Cost associated with the recommended actions. This item pertains to an area in District 3.
ALTERNATIVE ACTION(S):
If the recommended actions are not approved, additional allocation of ARPA-SLFRF will not become available to the Subrecipient to fully fund the reopening of the Calwa Community Pool.
FISCAL IMPACT:
There is no increase to Net County Cost associated with the recommended actions. The program is fully funded with ARPA-SLFRF. Sufficient appropriations are included in the FY 2023-24 Adopted Budget for the Auditor/Controller-Treasurer/Tax Collector Org. 1033 - Disaster Claiming, Fund 0026, Subclass 91021, Account 7845.
DISCUSSION:
The United States Department of the Treasury’s (Treasury) Title 31, Code of Federal Regulations, Part 35 Coronavirus SLFRF Interim Final Rule (“Interim Final Rule”) and Final Rule (“Final Rule”) establish a framework for determining the types of programs and services that are eligible under the ARPA-SLFRF and may be used for eligible activities under the following general categories:
A. Respond to the COVID-19 public health emergency or its negative economic impacts;
B. Provide premium pay for essential workers;
C. Replace public sector revenue loss, subject to certain limitations; and
D. Make necessary investments in infrastructure such as in water, sewer, and broadband.
The Final Rule permits SLFRF to be used to cover costs for eligible activities within the four general categories for the period that begins March 3, 2021, and ends on December 31, 2024. Recipients and their subrecipients must return any funds to the Treasury which are not obligated by December 31, 2024, and any funds not expended to cover such obligations by December 31, 2026.
On February 1, 2022, your Board approved the Ad-Hoc Committee’s expenditure plan, which earmarked funds for proposals that may be funded either in whole or in part by the County’s $194,063,657 allocation of SLFRF. The approved expenditure plan earmarked a total of $675,000 for the Subrecipient to fund Community Center Improvements.
On April 5, 2022, the County and Subrecipient entered into County agreement number 22-128 (“Agreement”), for only $275,000 of the total earmark to assist the Subrecipient with the purchase and installation of pool pumps and filtration equipment, showers, restrooms, a perimeter fence, and a shade structure for an activity area in support of the Subrecipient’s efforts to reopen its outdoor community pool. At the time of approval of the Agreement, the Subrecipient requested additional time to develop a scope of work for the remaining earmarked $400,000, which was initially planned to fund the Calwa Community Center’s connectivity to high-speed broadband.
Since the execution of the Agreement, the Subrecipient represents that increases in material costs and increasingly tight labor markets in the pool building sector have increased the overall project cost. During Fall 2023, the Subrecipient completed a request for proposals for site and blueprint updates, planning and design, and consultation services, which determined that initial construction estimates will exceed the current funding availability provided in the Agreement.
On December 20, 2023, the Subrecipient informed the County that its Board of Directors designated the reopening of the community pool as their top priority, while temporarily placing the connectivity to high-speed broadband on hold until another funding source becomes available to the Subrecipient for that project. The Subrecipient informed County of its need to use the full SLFRF-ARPA funding commitment of $675,000 to fund the construction cost to complete and reopen its community pool. The Subrecipient represents that construction is scheduled to begin mid-2024. A tentative completion date would occur by Spring 2025.
Approval of the recommended amendment will correct the prior cost allocations shown in the expenditure plan and instead will allocate funding resources to align with the Subrecipient’s engineering study which includes the following categories: project design/construction documents, environmental documents, advertisement/bid support, construction review and administration, construction, which includes but is not limited to labor, materials and equipment, plumbing, electrical, pool coping, concrete, pool pumps and filtration systems, showers, restroom, perimeter fencing, an outdoor deck with shaded areas and picnic tables for activities, ADA improvements, and project contingency. The recommended revisions to Table 1-1 of Exhibit B will increase funding availability by $400,000, to assist the Subrecipient complete the pool project.
Approval of the recommended actions will redefine the expenditure plan, increase funding availability, and update language in the modification and hold harmless clauses. Your Board’s approval will also add language to the Agreement’s modification clause that will allow the County’s Administrative Officer or designee to consider and approve future written requests for budget revisions up to 10% of the maximum compensation, with no change to the maximum compensation. This change will provide the Subrecipient with some flexibility within the line items in the program budget and will help the Subrecipient expeditiously complete the reopening of the outdoor community pool.
REFERENCE MATERIAL:
BAI #32, April 5, 2022
BAI #3, February 1, 2022
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Amendment No. 1 to Agreement 22-128 Calwa Recreation and Park District
CAO ANALYST:
George Uc