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Board agrees framework to reallocate $3.5 million in returned ARPA funds as deadline nears
Summary
After staff said $3.5 million from an ARPA-funded fairgrounds drainage project will be returned because the project cannot meet federal obligation rules, the Solano County Board of Supervisors approved a package that directs staff to obligate funds quickly and recommends prioritizing nonprofit grants, revenue-replacement flexibility and future additions to radio interoperability and emergency shelter upgrades.
The Solano County Board of Supervisors on Tuesday directed staff to begin obligating $3.5 million of American Rescue Plan Act (ARPA) funds that are returning to the county after the Fairgrounds Channel drainage project said it cannot meet the Treasury obligation deadline.
Megan Richards, the county principal management analyst who led the presentation, told the board the county originally allocated $5 million to the fairgrounds project and about $1 million had been obligated; staff identified $3,500,000 that can now be reallocated. "That 3,500,000 that's coming back to the board for an allocation of funds," Richards said in her overview of options, urging the board to act before the 12/31/2024 obligation deadline.
The board discussed six broad options presented by staff: (1) use available revenue-replacement capacity; (2) fund nonprofit programs via a recent request-for-qualifications (RFQ); (3) add to county radio interoperability upgrades; (4) supplement the Vallejo Early Learning Center community resource building; (5) fully fund Suisun City’s request to rehabilitate a closed senior center as a community hub; and (6) invest in emergency-relief upgrades to major county sheltering venues such as McCormick Hall. Public commenters urged funding for emergency preparedness and local nonprofit food programs.
After extended discussion, the board adopted a motion to allocate funds according to a compromise scenario: $1,000,000 toward nonprofit RFQ support (to be administered as a subgrant program with the Food Bank of Contra Costa & Solano as an option for distribution), a revenue-replacement reservation, a placeholder for radio interoperability and emergency-relief upgrades, and staff delegation to finalize contracts to meet the Treasury obligation. The board voted 5-0 to approve the staff motion and to authorize delegated authority so staff can execute agreements quickly.
Board members said the approach balances immediate needs with flexibility. Supervisor Hannigan urged caution on spending but supported using revenue-replacement to free general-fund dollars later; Supervisor Brown pushed for a sizeable allocation to McCormick Hall roof and shelter upgrades. Caitlin Sly, CEO of the Food Bank of Contra Costa & Solano, had noted during public comment that "every dollar that you're able to raise provides enough food for two meals to our neighbors in need," a point supervisors cited when supporting the nonprofit subgrant option.
Staff said the approved action obligates funds into projects or revenue replacement categories before the federal deadline, and the board will revisit distribution details for some buckets (radio, McCormick Hall, early learning) as contracts and cost estimates are finalized.
