This item provides a status update on development of the American Rescue Plan (ARP) expenditure plan for Yolo County, including a summary of the ARP proposals that have been submitted through June 21, 2021, and requests the Board to approve an expedited use of ARP funds to continue Project Roomkey in the cities of Davis and West Sacramento through at least July 2021. These issues are discussed in further detail below.
American Rescue Plan - Background
On March 23, 2021 the Board of Supervisors received an initial presentation on the American Rescue Plan Act of 2021 and approved a series of guiding principles for programming the use of the County’s $42.8 million in Local Fiscal Recovery Funds (Attachment A). In April 2021 staff began conducting an internal needs assessment by soliciting funding proposals from County departments. In addition, funding proposals or concepts were also submitted by certain external agencies.
On May 10, 2021, the U.S. Treasury released the Interim Final Rule, which provided detailed guidance on eligible uses of State and Local Fiscal Recovery funds. The American Rescue Plan Act established four categories of eligible uses for the Fiscal Recovery Funds: (1) Respond to the public health emergency or its negative economic impacts; (2) provide premium pay to essential workers; (3) provide government services through replacement of lost revenue; and (4) make necessary investments in water, sewer and broadband infrastructure.
Staff had initially anticipated that the guidance from the U.S. Treasury would provide for a broad interpretation of these eligible uses, particularly as it relates to responding to the public health emergency or its negative economic effects. However, as discussed with the Board in greater detail on May 18, 2021, the eligibility guidelines contained in the Interim Final Rule were narrower than initially expected. In essence, a program or service is considered to be “in response” to the public health emergency if it addresses a public health impact of COVID-19, or addresses an economic harm that was caused or exacerbated by COVID-19. Attachment B provides a Fact Sheet from the U.S. Treasury that summarizes the eligibility criteria outlined in the Interim Final Rule.
American Rescue Plan – Funding Proposals
A summary of ARP funding proposals that have been submitted through June 21, 2021 is provided in Attachment C. As noted above, staff received funding proposals from County departments and certain external stakeholders. Funding proposals that provided some level of written explanation, programmatic details and/or cost estimates are included in Attachment C. Additional ideas that have been surfaced but not formally submitted as funding proposals have not been included at this time, though may be included in the future as proposals are more thoroughly developed.
Through June 21, staff have received a total of 83 proposals and $110 million in funding requests. This amount likely understates the total funding requests, as cost estimates were not provided for a number of the proposals.
Based on staff’s review of the eligibility requirements contained in the Interim Final Rule, proposals have been grouped into three tiers: those that meet or likely meet eligibility requirements, those that may meet eligibility requirements but require further analysis, and those that are likely to not meet eligibility requirements. Within the tiers, proposals are not at this time prioritized. In addition, inclusion of a proposal on this list does not guarantee that a proposal may ultimately be approved or funded. In addition, for proposals submitted, though they have been broadly categorized, there may be components of the proposals that may not be eligible and require removal or refinement. Since many of the funding proposals were submitted prior to the release of the U.S. Treasury guidance, there are a number that appear to fall outside of the eligibility criteria. The table below provides a summary of the number of proposals and total funding requests within each of these categories.
Summary of ARP Funding Proposals
| Category |
# of Proposals |
Total $ Request |
| Meets or Likely Meets Eligibility Criteria |
37 |
$69,856,760 |
| May Meet Eligibility Criteria but Requires Further Analysis |
24 |
$28,504,679 |
| Likely Do Not Meet Eligibility Criteria |
18 |
$11,498,516 |
The total funding requests reflected in the table above are still rough cost estimates and will likely change as proposals are refined. In addition, staff are continuing to review and evaluate all funding proposals for eligibility and alignment with the Board’s guiding principles, including proposals where alternate funding sources may be available.
Attachment D includes copies of the proposals from external agencies that the board may want to review in greater detail. Staff is continuing to review those proposals submitted internally and will provide additional information on these in subsequent meetings.
Finally, it is important to note that the attached listing of funding proposals is an interim draft, reflecting only proposals that have been submitted through June 21, 2021. As staff begins the community outreach phase, we anticipate that additional proposals will be submitted. Advisory groups, community-based organizations and members of the public may submit funding proposals through Friday, July 2, 2021. A submission form is available on the County’s ARP web page, at www.yolocounty.org/ARP.
American Rescue Plan - Community Workshops
A series of community workshops has been scheduled to solicit public input and feedback on the ARP funding proposals that have been submitted, refine and prioritize funding options, and identify any gaps that may exist. The schedule of community workshops is reflected below:
- Wednesday, July 14th at the Veterans Memorial Center in Davis from 4-6 PM
- Thursday, July 15th at the Turner Library in West Sacramento from 4-6 PM
- Monday, July 19th at the HHSA Bauer Building in Woodland from 4-6 PM
- Thursday, July 22nd via Zoom from 4-6 PM
The purpose and intent of these community workshops is threefold. First, they will allow staff to provide context and information on the intent and eligibility requirements of the ARP funds, as well as the guiding principles approved by the Board with a focus on transformative projects that align with Strategic Plan goals and objectives and provide ongoing benefit without ongoing costs. Second, the workshops will provide an opportunity to review the proposals that have been submitted to-date and gauge community interest and feedback. Finally, they will allow for additional proposals and ideas to be surfaced and evaluated.
While the community workshops will be open to the public, invitations have been sent to County advisory groups and other partner organizations. Those interested in attending a workshop are encouraged to register in advance on the County’s ARP website (www.yolocounty.org/ARP), and to review the available background information on the ARP.
Expedited use of American Rescue Plan Funds - Project Roomkey
On May 18, 2021 the Board of Supervisors received a presentation on the status of Project Roomkey, and reviewed options for the planned wind-down of the program. Project Roomkey began in March 2020, as the onset of the COVID-19 pandemic increased health and safety concerns for individuals experiencing homelessness. Through April 2021, the program has provided more than 75,000 shelter nights to 787 unique individuals. In addition, 75 individuals were placed into permanent housing.
While Project Roomkey has been essential in mitigating the effects of COVID-19 on this vulnerable population, dedicated funding to support this program was available only through June 2021. As a result, County staff initiated discussions with each of the three cities with a current Project Roomkey site in Yolo County to explore options and determine an appropriate pathway for the continuation or wind-down of Project Roomkey. On May 18, the Board approved staff’s recommendation to continue working with each city to obtain a 50/50 cost sharing agreement for all program costs past June 21. For cities willing to financially participate, staff would continue to work collaboratively to identify an appropriate end date, ideally corresponding with new housing or shelter options. For any cities not willing to financially participate, the program would wind down as of June 30, 2021. It was noted at the time that pending the outcome of discussions with each of the cities, staff would return later in June with a budget resolution and request to authorize use of ARP funds to cover the County’s share of costs.
Following additional discussions with the cities, the City of Woodland has elected to end Project Roomkey effective June 30, 2021, while the cities of Davis and West Sacramento have committed to continuing Project Roomkey with a 50/50 cost share through at least July 31, 2021. County staff are currently working with the City of Woodland and providers to transition clients to the East Beamer Way shelter or other permanent housing options; however, it is anticipated that around 20 of the 48 Woodland Project Roomkey residents may return to unsheltered homelessness.
The estimated cost to continue Project Roomkey in the cities of Davis and West Sacramento for the month of July is $347,444. The County’s share of this cost would be $173,722, with Davis and West Sacramento contributing $105,797 and $67,925, respectively. Due to the urgent need to protect life, health and safety, and to avoid disruption in an existing emergency response program, staff recommends that the Board authorize the use of $173,722 in ARP funds to fund the County’s share of Project Roomkey costs for July 2021, and adopt the budget resolution included as Attachment E.
County staff are continuing to meet with city representatives in Davis and West Sacramento to discuss options past July 31, which may include continuing Project Roomkey or alternative programs and services for the unsheltered/at-risk populations. Should Project Roomkey continue beyond July, staff will return with an additional funding request. Finally, it should be noted that the Governor’s May Revise included $150 million in additional funding to support Project Roomkey and transition participating individuals to permanent housing. While the state budget has not yet been formally approved, any additional funding allocations received by the County will be used to defray the ongoing program costs as described above and reduce the overall contributions from each of the jurisdictions. |