DATE: September 8, 2026
TO: Board of Supervisors
SUBMITTED BY: Paul Nerland, County Administrative Officer
SUBJECT: State Local Fiscal Recovery Funds Amendments to Subrecipient Agreements with: Biola Community Services District, Westside Family Preservation Services Network, Habitat for Humanity Fresno Inc., and Laton Community Services District
RECOMMENDED ACTION(S):
TITLE
1. Approve and authorize the Chairman to execute Third Amendment to Subrecipient Agreement No. 22-371 with Biola Community Services District (Biola CSD) for provision of American Rescue Plan Act - State and Local Fiscal Recovery Funds (ARPA-SLFRF), which will revise the expenditure plan, timeline section, grant funding section, and reduce the maximum compensation by $580, from $955,000 to $954,420.
2. Approve and authorize the Chairman to execute First Amendment to Subrecipient Agreement No. 23-567 with Westside Family Preservation Services Network (WFPSN) for provision of ARPA-SLFRF which will revise program reporting deliverables, revise the expenditure plan, timeline section, grant funding section, and reduce the maximum compensation by $283,619, from $349,039 to $65,420.
3. Approve and authorize the Chairman to execute Third Amendment to Subrecipient Agreement No. 22-224 with Habitat for Humanity Fresno, Inc. (Habitat), for provision of ARPA-SLFRF which will revise the expenditure plan, grant funding section, and reduce the maximum compensation by $14,241 from $1,363,200 to $1,348,959.
4. Approve and authorize the Chairman to execute First Amendment to Subrecipient Agreement No. 23-198 with Laton Community Services District (Laton CSD), for provision of ARPA-SLFRF which will revise the expenditure plan, timeline section, grant funding section, and reduce the maximum compensation by $226,639 from $1,032,000 to $805,361.
REPORT
Approval of the first recommended action will authorize the Third Amendment to Subrecipient Agreement No. 22-371 with Biola CSD, which will revise the expenditure plan, timeline section, grant funding section, and reduce the maximum compensation by $580, from $955,000 to $954,420. Approval of the second recommended action will authorize the First Amendment to Subrecipient Agreement No. 23-567 with WFPSN, which will clarify the Subrecipient’s program deliverables, revise the expenditure plan, timeline section, grant funding section, and reduce the maximum compensation by $283,619, from $349,039 to $65,420. Approval of the third recommended action will authorize the Third Amendment to Subrecipient Agreement 22-224 with Habitat which will revise the expenditure plan, grant funding section, and reduce the maximum compensation by $14,241 from $1,363,200 to $1,348,959. Approval of the fourth recommended action will authorize the First Amendment to Subrecipient Agreement No. 23-198 with Laton CSD which will revise the expenditure plan, timeline section, grant funding section, and reduce the maximum compensation by $226,639 from $1,032,000 to $805,361. Recommended actions one, two, and three pertain to locations in District 1, and recommended action four pertains to a location in District 4.
ALTERNATIVE ACTION(S):
If the recommended actions are not approved, the current subrecipient agreements will remain in their current forms, and the identified costs savings in each agreement will go unspent by the Subrecipients and the County upon the ARPA-SLFRF’s liquidation deadline of December 31, 2026. Your Board could also opt to approve any one or more of the recommended amendments included in this item.
FISCAL IMPACT:
There is no increase to Net County Cost associated with the recommended actions. The programs are fully funded with ARPA-SLFRF. Sufficient appropriations are included in the FY 2026-27 Recommended Budget for the Auditor/Controller-Treasurer/Tax Collector Org. 1033 - Disaster Claiming, Fund 0026, Subclass 91021, Account 7845.
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. Per Treasury’s Frequently Asked Questions (FAQ 17.16), if those requirements are met, SLFRF funds may be used to cover cost increases contained in the amended agreement.
Treasury’s Obligation IFR includes the ability for recipients to reclassify funds when excess funds that were obligated by the deadline but ultimately would not be expended on an eligible activity. For example, recipients may reclassify cost savings from an under-budget project to another eligible project under the SLFRF program rules, including the requirement that the recipient incurred the obligation by December 31, 2024, to expend funds on the activity.
On March 3, 2025, the CAO’s Office provided written notice to the ARPA-SLFRF awarded departments and subrecipients with active programs to remind them of the Treasury’s liquidation deadline of December 31, 2026. To ensure the County can meet the Treasury’s liquidation deadline, the CAO’s Office required all subrecipients to complete their awarded programs and submit their last claims by June 30, 2026.
On June 30, 2026, your Board received the CAO’s Office progress report on the County’s ARPA-SLFRF Program. Your Board then directed the CAO’s Office to initiate the formal amendment process for ARPA programs with unclaimed obligations by the June 30, 2026, expenditure deadline. The following will summarize the recommended amendments to subrecipient agreements for the provisions of ARPA-SLFRF funding.
Biola Community Services District, Storm Drainage and Steet Improvements
On August 23, 2022, the County and Biola CSD entered into County Agreement No. 22-371, with a grant funding amount of $649,000, to fund the design, surveying and engineering, environmental review, and construction to install storm drain pipelines and inlets along D Street, Fifth Street, West F Avenue, and North Biola Avenue, in support of meeting state and local groundwater recharge mandates and achieving long-term groundwater sustainability goals (“Program”).
On March 14, 2023, the County and Biola CSD entered the First Amendment to the Agreement, which increased the maximum grant funding to a total of $955,000, primarily due to increases in material costs, supply-chain disruptions, and an increasingly tight labor market that increased the costs for Biola CSD to implement the awarded Program.
On October 8, 2024, the County and Biola CSD entered the Second Amendment to the Agreement, which expanded the Program’s scope of work to include additional storm drainage improvements along Third Street, and to use SLFRF to fund planned street and pedestrian improvements which improve safety by adding street lighting along Biola Avenue and C Street.
Since the approval of the Second Amendment, Biola CSD represents that it has completed the storm drainage improvements and street improvements in the Community of Biola. Biola CSD represents that all program expenditures were charged to the award by June 30, 2026. Approval of the first recommended action will revise language in the Agreement’s timeline section, grant funding section, and reduce the maximum compensation by exactly $580, from $955,000 to $954,420, and finalize Biola CSD’s Program expenditure plan.
Westside Family Preservation Services Network, Youth Empowerment Center
On October 24, 2023, the County and WFPSN entered into County Agreement No. 23-567, to help the WFPSN fund the extension of their Youth Empowerment Center (YEC) program in San Joaquin to provide resources that will address social, emotional, and physical wellness to participants, youth and residents in San Joaquin and neighboring rural communities who have historically been under resourced. Per the Agreement, SLFRF would fund violence intervention activities and community programs in the following arenas: health and fitness, relationship violence, bullying and homelessness, employment, workplace skill building, education accomplishment, mindfulness and stress management, restorative justice and conflict mediation, and social services and benefit navigators for participants and their families and help stabilize public safety in San Joaquin (“Program”), beginning from January 1, 2024, through September 30, 2025.
Since the approval of the Agreement, the WFPSN’s Program experienced implementation delays in securing an office for the San Joaquin YEC, recruiting and maintaining staffing levels, and delays in launching a strong community presence among the youth, residents, schools, and community partners in San Joaquin. By the second quarter of 2024, WFPSN represents that they leased an office for the San Joaquin YEC at the Leo Cantu Community Center (22058 Railroad St, San Joaquin, CA 93660), purchased essential furniture items, technology, equipment, and office and school materials to support the operation of the San Joaquin YEC. WFPSN represents that they hired two employees to oversee the day-to-day activities at the drop-in center, made outreach efforts, attended community events, and canvased the communities of San Joaquin, Tranquillity, and surrounding neighborhoods to connect with residents and share information and resources.
By end of 2025, WFPSN submitted all identified San Joaquin YEC expenditures to the ARPA-SLFRF Program for reimbursement. Since then, WFPSN represents that the rigid structure of the approved expenditure plan in the Agreement has created an administrative burden limiting WFPSN’s ability to recover actual costs that would otherwise be reimbursed by ARPA-SLFRF. Due to WFPSN’s programming challenges, staff turnover, and rigid requirements included in the agreement and expenditure plan, an amendment is necessary to help WSFPN recover their costs for providing extended services at the San Joaquin YEC.
Approval of the second recommended action will revise language in the Agreement regarding program reporting deliverables, the expenditure plan, timeline section, and grant funding section, and reduce the maximum compensation by $283,619, from $349,039 to $65,420, finalizing WFPSN’s Program expenditure plan.
Habitat for Humanity Fresno, Inc., Affordable Housing in Firebaugh
On June 7, 2022, the County and Habitat entered into County Agreement No. 22-
224, for ARPA-SLFRF funding to help offset unanticipated construction costs of seven affordable homes in the City of Firebaugh (Program).
On October 10, 2023, the County and Habitat entered the First Amendment to the Agreement, which increased the maximum compensation by $573,200, to help fund the backfilling the ponding basin, planning, site preparation and grading, materials for sanitary sewer, water distribution, storm drainage improvements, and connection to the City of Firebaugh’s water system, in support of the Program and future Phase II of the project.
On January 27, 2026, the County and Habitat entered the Second Amendment to the Agreement, which revised the Program’s Expenditure Plan by reallocating funding availability within the Program, and updated the language in Section 1 D, Section 1 H Timeline, Section 13, Grant Funding/Compensation, Section 17, Hold Harmless, and Exhibit A.
Since the approval of Second Amendment, Habitat represents that it has completed the
ARPA funded portion for building seven affordable in the City of Firebaugh, and all program expenditures were submitted to the County’s ARPA program by June 30, 2026.
A final Amendment is necessary to revise the Program’s budget to reflect invoiced work performed by Habitat and its subcontractors by June 30, 2026. Approval of the third recommended action will revise the grant funding section, reduce the maximum compensation by $14,241 from $1,363,200 to $1,348,959 and finalize Habitat’s expenditure plan.
Laton Community Services District, Water Meter Replacement
On April 25, 2023, the County and Laton CSD entered into County Agreement Number 23-
198 for ARPA-SLFRF funding to fund Laton CSD’s Water Meter Replacement Program consisting of expenditures related to mobilization and demobilization, clearing and grubbing, sheeting and shoring, meter boxes and lids, engineering, meter reading equipment, software, and training, which will help Laton CSD implement water conservation strategies to effectively conserve, protect, and reduce its vulnerability during drought years, and to accurately charge customers for their water use by volume (Program).
Since the approval of the Agreement, Laton CSD represents that it has completed the design engineering, clearing and grubbing, meter reading equipment, software, and training line items of the expenditure plan. The Subrecipient represents that all program expenditures have been submitted to the County for processing by the June 30, 2026, expenditure deadline. Approval of the fourth recommended action will authorize the First Amendment to Subrecipient Agreement No. 23-198 with Laton CSD, which will revise the expenditure plan, timeline section, grant funding section, and reduce the maximum compensation by $226,639 from $1,032,000 to $805,361.
Approval of the recommended actions will authorize the Chairman to execute the recommended amendments, which will update the approved budget totals in each agreement, and accurately reflect the final funding allocations approved by your Board in support of the awarded programs. Recommendations for the reallocation of available cost savings will be brought forward in a separate agenda item.
REFERENCE MATERIAL:
BAI #9, June 30, 2026
BAI #29, January 27, 2026
BAI # 27, October 8, 2024
BAI #23, March 14, 2024
BAI #29, October 24, 2023
BAI #25, April 25, 2023
BAI #27, August 23, 2022
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Amendment No. 3 to Agreement with Biola Community Services District
On file with Clerk - Amendment No. 1 to Agreement with Westside Family Preservation Services Network
On file with Clerk - Amendment No. 3 to Agreement with Habitat for Humanity Fresno Inc.
On file with Clerk - Amendment No. 1 to Agreement with Laton Community Services District
CAO ANALYST:
George Uc