2024-26 County of Riverside - ARPA-SLFRF Funding ObligationMEMORANDUM OF UNDERSTANDING
REGARDING OBLIGATION OF AMERICAN RESCUE PLAN ACT (ARPA?I CORONAVIRUS
STATE AND LOCAL RECOVERY FUNDS tSLFRF�
This MEMORANDUM OF UNDERSTANDING REGARDING OBLIGATION OF SLFRF FUNDS
("MOU") is entered into as of the 17th day of December_. 2024 by and between City of La
Quinta ("Local Government") and the County of Riverside, through its Riverside Sheriffs Office
("Agency") as follows:
WHEREAS, the Local Government is the recipient of State and Local Fiscal Recovery Funds
("SLFRF") pursuant to the terms and conditions of the agreement entered into by the United
States Department of the Treasury ("Treasury') and the Local Government, which incorporates
the American Rescue Plan Act of 2021 (Pub.L. 117-2), the provisions of the 2022 final rule, the
2023 interim final rule, and the guidance that implements the SLFRF program, including but not
limited to 31 CFR Part 35; and
WHEREAS, the Local Government is authorized to provide funds to units of local government
and others, each an Agency, selected to undertake and carry out projects under the SLFRF
program in compliance with all applicable local, state, and federal laws, regulations and policies;
and
WHEREAS, Agency is prepared to provide services to Local Government in order to mitigate the
fiscal impacts of the COVID pandemic, maintain service levels, and to serve the needs of the local
community ("Services"); and
WHEREAS, the Local Government warrants that the SLFRF disbursed under this MOU to Agency
is an eligible use of SLFRF funds and complies with all SLFRF- laws, rules, and regulations;
WHEREAS, Local Government and Agency desire to enter into this MOU as an interagency
agreement to secure the Services for the benefit of the local community.
Now therefore, in consideration of the recitals and agreements contained herein Local
Government and Agency agree as follows:
1. Pumase.
The recitals above are true and correct and herein incorporated into this MOU. The
SLFRF funds are available to provide emergency relief from natural disasters, build critical
transportation infrastructure, and support community development. The City utilized the
standard allowance of up to $10 million, which can be used to provide government
services, and includes the provision of public safety services.
2. Scone of Work.
A. Local Government Responsibilities
The Local Government is responsible for administration of the SLFRF funds received, and
ensuring SLFRF funds are used in accordance with all program requirements and its
SLFRF agreement with Treasury referenced above. The Local Government will provide
such assistance and guidance to the Agency as may be required to accomplish the
objectives and conditions set forth in this MOU.
To the fullest extent permitted by applicable law, Local Government shall indemnify and
hold harmless the Agency, the County of Riverside, its agencies, districts, special districts
and departments, their respective directors, officers, Board of Supervisors, elected and
appointed officials, employees, agents and representatives, individually and collectively
referred to in this paragraph as "Indemnitees", from or against any claims, demands,
liabilities, losses, damages, costs, expenses (including, but not limited to, attorney's fees),
fines, penalties, or sanctions arising out of or in connection with any clawback, recapture,
or repayment of SLFRF funds by any federal, state, or local government agency or any
other third -party entity that results from the actions or omissions of Local Government or
from any breach of applicable laws, regulations, or requirements related to the SLFRF
funds disbursed under this MOU.
The hold harmless and indemnification obligation set forth herein shall survive the
termination and expiration of this MOU.
B. Agency Responsibilities
The Agency will complete in a satisfactory and proper manner as determined by the Local
Government the following tasks to accomplish the objectives of principally benefiting the
local community by carrying outan eligible use of SLFRF funds (the "Project"). TheAgency
will periodically meet with the Local Government to review the status of these tasks and
to demonstrate compliance with SLFRF requirements.
Principal Tasks:
1. Maintain current public safety service levels to include payroll and covered
benefits for public safety personnel.
3. Conditions for Receipt of Funds. SLFRF funds will be allocated or paid to Agency upon
agreement to perform the Principal Tasks.
4. Time of Performance. The effective date of this MOU will be the date the parties sign and
complete execution of this MOU ("Effective Date") and will be in effect for the time period
during which the Local Government remains in control of SLFRF funds and the Agency
completes the Principal Tasks, provided however, all SLFRF funds must be obligated no
later than December 31, 2024 and the Principal Tasks must be completed no later than
December 31, 2026.
5. MOU Representatives.
Each party to this MOU shall have a representative. Each party may change its
representative upon providing written notice to the other party. The parties' representatives
are as follows:
A. Local Government
Name of Representative: Jon McMillen
Title: City Manager
Mailing Address: 78495 Calle Tampico
City, State and Zip Code: La Quinta CA 92253
Telephone Number. 760-777-7030
Fax Number: 760-777-7105
E-mail Address: imcmillen(a�laguintaca.gov
B. Agency:
Name of Representative: Chad Bianco
Title: Sheriff
Mailing Address: Post Office Box 512
City, State and Zip Code: Riverside, CA 92502
Telephone Number 951-955-2400
6. Budget:
The Local Government will pass through to
the Agency no more than $9,987,008 in
SLFRF funds for eligible incurred costs and
expenses for the Project
IN WITNESS WHEREOF, City of La Quinta and the County of Riverside have executed this MOU
as of the dates indicated below.
CITY OF LA QUINTA: Jon McMillen
COUNTY OF RIVERSIDE:
M.
FORM PROVED COUNTY COUNSEL
BY: 12 - 2 7 - �H
CONSENT CALENDAR ITEM NO. 20
City of La Quinta
CITY COUNCIL MEETING: December 17, 2024
STAFF REPORT
AGENDA TITLE: ADOPT RESOLUTION AND APPROVE MEMORANDUM OF
UNDERSTANDING WITH RIVERSIDE COUNTY REGARDING OBLIGATING AND
ALLOCATING AMERICAN RESCUE PLAN ACT CORONAVIRUS STATE AND LOCAL
RECOVERYFUNDS
RECOMMENDATION
Adopt Resolution and approve Memorandum of Understanding (MOU) with Riverside
County obligating and allocating American Rescue Plan Act Coronavirus state and local
recovery funds; and authorize the City Manager to negotiate and execute the MOU in a
form approved by the City Attorney.
EXECUTIVE SUMMARY
• On March 11, 2021, President Biden signed into law the American Rescue Plan
(ARPA), a $1.9 trillion stimulus package, to counteract the economic impacts of the
pandemic. The bill contains a $350 billion allocation for state and local government
aid known as the Coronavirus State and Local Fiscal Recovery Funds (SLFRF).
• The City has elected to use the standard allowance for revenue loss of up to $10
million and was allocated the amount of $9,987,008 for government services, which
is the most flexible eligible use category with funds subject to streamlined reporting
and compliance requirements.
• The City must execute an MOU for funds to be considered obligated and committed
by December 31, 2024, and expend by December 31, 2026, as prescribed under
the ARPA provisions.
FISCAL IMPArT
If approved, $4,993,504 will be transferred from Fund 105 (Disaster Recovery Fund) to
the General Fund for fiscal year (FY) 2024/25 and an additional $4,993,504 for FY
2025/26 will be transferred and budgeted to cover costs associated with police services.
BACKGROUND/ANALYSIS
Under the ARPA, the U.S. Department of Treasury adopted a Final Rule in January 2022
for the SLFRF which provides various eligible uses for ARPA funds, including the use of
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funds to provide and maintain current City services (e.g., public safety) to the extent of
revenue lost by the City due to the pandemic. Some of the key objectives for SLFRF are
to:
• Maintain vital public services, even amid declines in revenue resulting from the
crisis.
• Build a strong, resilient, and equitable recovery by making investments that
support long-term growth and opportunity.
The City has received a total of $9,987,008 through ARPA and has established a separate
fund to track the utilization of funds for auditing and reporting purposes. In compliance
with the Final Rule, the City's approach will be to utilize ARPA funds to provide and
maintain current City services, specifically police services, that were originally intended
to be provided by the General Fund. This approach makes available General Fund
monies that are then used to enable the delivery of Council -directed programs to
residents and businesses to improve the quality of life. As a result, the City's reporting to
the U.S. Treasury will show the ARPA funds being used to maintain police services. This
ARPA spending approach balances programmatic funding for vital government services
while limiting the administrative burden associated with ARPA compliance and reporting
requirements, and substantially reducing any compliance risk that could result in a
mandated return of these federal funds to the U.S. Treasury.
ARPA provisions require the proposed resolution and enclosed MOU as Attachment 1 for
the funds to be considered obligated and committed by December 31, 2024; funds must
be expended by December 31, 2026.
ALTERNATIVES
Staff does not recommend an alternative as this action is required by ARPA.
Prepared by: Claudia Martinez, Finance Director
Approved by: Jon McMillen, City Manager
Attachment: 1. MOU with Riverside County Regarding ARPA SLFRF
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