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Clallam County plans ARPA MOUs to protect obligations after Nutanix quote update; payroll pool proposed to capture freed funds
Summary
County staff reported an increase in the Nutanix IT purchase quote but said projected five‑year IT savings still support the procurement; the county will obligate ARPA funds via interdepartmental MOUs and propose a personnel cost pool to capture any unspent ARPA recruitment/retention funds.
Clallam County finance and IT staff told commissioners on Dec. 16 they plan to obligate remaining American Rescue Plan Act (ARPA) funds for IT projects and to protect the county from potential clawback risk by using interdepartmental memoranda of understanding.
Staff said a vendor quoting error increased the Nutanix purchase price to approximately $701,000 and raised total ARPA obligations for two IT projects to about $731,000. IT staff and finance officials told the board they have assessed the change and still expect multi‑year licensing and maintenance savings that justify the purchase; the county budgeted roughly $659,000 originally and will use underspends in other closed projects to cover the adjustment.
Because the U.S. Treasury requires funds to be "obligated" by Dec. 31, 2024, staff recommended executing MOUs between departments to establish firm scopes and obligations while allowing licensed hardware and software delivery and licensing schedules to extend into next year. Commissioners indicated they would sign the MOUs on Dec. 31.
Separately, staff reported positive ARPA news: a $403,000 Office of Drinking Water grant for the Beaumont Beach project (design approved) reduces ARPA exposure. That development prompted staff to propose a contingency mechanism for remaining ARPA obligations (about $38,000 after recent adjustments): draft MOUs would allow any funds returned to ARPA from under‑spent departmental recruitment/retention incentives to be reallocated into a personnel cost pool that covers personnel costs that are permissible under Treasury guidance. The proposed pool would be structured through department MOUs and is intended to protect ARPA obligations should employees leave before completing retention/recruitment service periods and repayments occur.
Staff said they would return with draft MOUs and an estimated payroll obligation figure for Treasury reporting; commissioners asked that draft MOUs be available for review on Dec. 30 and ratified on Dec. 31 if appropriate.
No final procurement contract was voted at the work session; commissioners agreed staff should proceed with MOUs and prepare contracts and agendas to meet the Treasury obligation deadline.
