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