DATE: September 22, 2026
TO: Board of Supervisors
SUBMITTED BY: Paul Nerland, County Administrative Officer
SUBJECT: Third Amendment to State and Local Fiscal Recovery Funds
Subrecipient Agreement with Riverdale Public Utility District
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute Amendment No. 3 to Subrecipient Agreement No. 22-225 with Riverdale Public Utility District (RPUD) for provision of American Rescue Plan Act - State and Local Fiscal Recovery Funds (ARPA-SLFRF), which will revise the final reimbursement submission deadline to September 30, 2026, with no increase to the maximum compensation ($3,175,000).
REPORT
There is no Net County Cost associated with the recommended action, which will revise the final submission deadline in the County’s agreement with RPUD to 5 p.m. on September 30, 2026, to ensure RPUD can spend allocated SLFRF funds in time for the County to process reimbursements before the federal deadline of December 31, 2026. Approval of the recommended action will provide RPUD an additional 30 days to complete as much work as possible on the project and invoice the ARPA-SLFRF program by the September 30, 2026, final submission deadline. Following the final submission deadline, the recommended amendment shall be terminated without any further obligation to the County, any requests for reimbursement submitted after the deadline will be treated as abandoned and unpaid, and that all project costs incurred beyond the deadline will be RPUD’s sole financial and legal responsibility. Approval of the recommended action will authorize the County Administrative Officer to send a letter following the final submission deadline to notify RPUD that the Agreement is terminated. This item pertains to a location in District 4.
ALTERNATIVE ACTION(S):
If the recommended action is not approved, the agreement with RPUD will remain unchanged, with a final submission deadline of August 31, 2026. As a result, the County will not be able to continue processing payments to RPUD for Program expenditures, which otherwise could be reimbursable expenditures under the ARPA-SLFRF program.
FISCAL IMPACT:
There is no increase to Net County Cost associated with the recommended action. The program is fully funded with ARPA-SLFRF. Sufficient appropriations have been included in the FY 2026-27 Adopted Budget for the Auditor-Controller/Treasurer-Tax Collector Org. 1033 - Disaster Claiming, Fund 0026, Subclass 91021, Account 7845 and will be included in subsequent budget requests.
DISCUSSION:
On November 20, 2023, the U.S. Department of Treasury (Treasury) published the Obligation Interim Final Rule (Obligation IFR) which amended the definition of “Obligations” and included additional flexibility with respect to the ARPA-SLFRF program.
After the SLFRF obligation deadline of December 31, 2024, Treasury’s guidance permits recipients to amend existing contracts after the obligation deadline, so long as the amended contract is within substantially the same scope, and for substantially the same purpose as the original contract.
On June 7, 2022, your Board approved Subrecipient Agreement No. 22-225 (Agreement) with RPUD to fund the engineering design, planning, and construction of a groundwater well that will provide an alternative source of water supply in case of emergency or drought, as well as to bring the new groundwater well online, make offsite improvements that consist of upsizing existing undersized pipelines generally located south of W. Mount Whitney Avenue along Valentine, east on W. Kruger, south along S. Marks, and east along Wood Avenues, which will provide secondary connection points to Well 6 to connect to RPUD’s entire water distribution system, which improvements are intended to increase the community’s resiliency for multi-year droughts, and improve drinking water quality in the Community of Riverdale.
On December 17, 2024, your Board approved Amendment No.1 to Agreement with RPUD that updated the expenditure plan to permit reimbursement of funding administration costs and revised the agreement’s modification clause. The updated clause authorized the County Administrative Officer, or their designee, to review and approve written budget revision requests that do not exceed 10% of the agreement’s maximum compensation, as amended.
On July 14, 2026, your Board approved Amendment No. 2 to Agreement with RPUD to extend the final reimbursement deadline to August 31, 2026.
Since the approval of Amendment No. 2, RPUD represents that it needs additional time to continue making progress on the Program and expend as much as possible to the ARPA-SLFRF program. Due to the complex nature of the RPUD capital project and the benefit it brings to the Community of Riverdale, RPUD requested an additional 30-day extension to the August 31, 2026, expenditure deadline.
Approval of the recommended action will amend the Agreement’s final submission deadline from 5:00 p.m. August 31, 2026, to 5:00 p.m. September 30, 2026, for the RPUD project. The recommended amendment also clarifies that RPUD must submit all requests for reimbursement for completed work with sufficient time to the County by the final submission deadline. If the RPUD submits invoices with incomplete reports or documentation, RPUD will not have another opportunity to rectify their submission. After the final submission deadline, the County Administrative Officer will send a letter to RPUD notifying RPUD that the Agreement is terminated, without any further obligation of the County.
REFERENCE MATERIAL:
BAI #29, July 14, 2026
BAI #35, December 17, 2024
BAI #43, June 7, 2022
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Amendment No. 3 to Agreement with RPUD
CAO ANALYST:
George Uc