Staff Report - Consideration of ARPA Grant Award to Happy Feet Academy (2)

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Staff Report by: Brian Carlson Budget and Finance Director Topic: Consideration of ARPA Grant Award Contract with Happy Feet Academy Meeting BOCC Regular Meeting February 21, 2023 Summary: • The attached draft grant award contract memorializes a $500K award to Happy Feet Academy, using the County’s Federal ARPA (American Rescue Plan Act) grant as source funds. • This document has been drafted by the Prosecutor’s Office and is the product of numerous meetings and correspondence with the recipient and county staff. • The attached version is submitted for BOCC approval, following verbal approval during budget meetings in 2022. Background: • During multiple meetings and study sessions in 2022, BOCC brought forward potential ARPA funding recipients for consideration. • Happy Feet Academy was discussed and unanimously approved for funding, for the purpose of expanded childcare services via construction of a new facility, and dedication of 50% of available childcare slots to low- income families. • The County’s funds represent a partnership of multiple grantors and lenders, including the State of Washington via a lengthy competitive award program, for the purpose of funding the recipient’s construction project in 2023. • The initial 2022 County award was delayed while staff and recipient revised the award contract to ensure protection of the county’s stake in the proposed project. The attached document is the product of these revisions, and is approved as to form by both the Prosecuting Attorney’s Office and the Auditor’s Office. • The award will provide partial funding for construction of expanded facilities, and will be available on an “advance” rather than “reimbursement” basis, so as to assist the recipient with its overall project cash-flow profile. Analysis: • The primary contract clause safeguarding the county’s interest in the project is articulated in section 8, wherein the county is to assume a lienholder position via deed of trust. This provision has a ten-year duration, and mirrors a similar provision with the State of Washington, though is subordinate to the State’s position. • This clause reflects a standard practice of ensuring that a recipient of public funds continues to provide services over time pursuant to the original award terms. • Remaining contract language articulates insurance requirements, and indemnifies the County from claims arising from the recipient’s day-to-day operations. Conclusion / Next Steps: • If approved, route to BOCC for full execution