HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/12/2021 - ITEMS RELATING TO A SMALL BUSINESS RELIEF PROGRAM Agenda Item 1
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AGENDA ITEM SUMMARY January 12, 2021
City Council
STAFF
Josh Birks, Economic Health Director
Ingrid Decker, Legal
SUBJECT
Items Relating to a Small Business Relief Program to be Administered and Distributed by the City's Economic
Health Office in Cooperation with Larimer County.
EXECUTIVE SUMMARY
A. Resolution 2021-006, Authorizing an Intergovernmental Agreement Between the City and Larimer
County for Funding and Administration of a Small Business Relief Program.
B. First Reading of Ordinance No. 017, 2021, Appropriating Unanticipated Revenue in the General Fund
for a Small Business Relief Program to be Administered and Distributed by the Economic Health
Office.
The purpose of this item is for Council to consider an ordinance appropriating unanticipated revenue to operate
a Small Business Relief program and a resolution authorizing a related agreement describing the
administration and distribution of the funds with Larimer County. The Colorado legislature, in special session in
December, passed Senate Bill 20B-001 (SB20B-001) setting aside over $37 million for direct relief payments
to small businesses located in eligible Counties, which businesses include restaurants, bars, movie theaters,
and fitness and recreational sports centers.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution and Ordinance on First Reading.
BACKGROUND / DISCUSSION
The Colorado General Assembly as part of a special session in December 2020 approved Senate Bill 20B-001
(“SB20B-001”) authorizing monetary relief for small and minority businesses as well as arts organizations.
SB20B-001 provides $37 million for direct relief payments to small businesses located in a county that is
subject to, and in compliance with, severe capacity restrictions pursuant to a public health order, with
payments allocated to the counties for distribution to eligible small businesses, which businesses include
restaurants, bars, movie theaters, and fitness and recreational sports centers. Larimer County is eligible and
submitted the required application for consideration of allocation on January 4, 2021.
To ensure efficient and timely disbursement of the funds, Larimer County (“County”) has requested that the
City of Loveland, Town of Estes Park, and City of Fort Collins (City) each act as a “hub” to distribute funds to
their community, adjacent communities, and adjacent portions of unincorporated county. The County’s chosen
approach means that the City will receive unanticipated revenue to distribute and administer a Small Business
Relief (SBR) program for its defined “hub” geography. The Ordinance appropriates the unanticipated revenue
and the Resolution authorizes the execution of an agreement defining the City’s duties and terms of operation
as a “hub.”
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The Economic Health Office (EHO) will lead this activity for the Fort Collins “hub.” Currently, a draft of the
Intergovernmental Agreement (IGA) between the City and County is not available. However, the key terms of
the proposed agreement will generally be as follows, with more specific agreement language to be developed
after further legal review and refinement:
• Larimer County will distribute funds to each of the hubs based on the number of applications received and
processed by the hub for the SBR.
• Larimer County will pass through 4.5 percent of the allowable 5.0 percent Administrative Costs to each hub
for program administration. The 4.5 percent will be based on the total funding provided to each hub as
described above.
• The SBR application dates for Larimer County will be Wednesday, January 6, 2020 through close of
business on Wednesday, January 27, 2020 for a total of 22 days.
• Representatives from the three hubs and the County will meet Friday, January 29, 2021 to review the
number of eligible applications and determine relief fund amounts for the three relief tiers (as outlined in
the legislation). The goal is to provide each eligible business with the same amount of relief payment
(within their relief tier) and to provide a consistent approach among the three hubs.
• All three hubs will use the same application, collect the same documentation, and the same online grant
management system.
• Hubs are encouraged to retain applications that do not meet SBR eligibility but may have valid needs for
SBR-like assistance if additional funds become available through other sources.
• The Fort Collins hub would consist of Fort Collins, LaPorte, Livermore, Red Feather Lakes, Wellington,
and Timnath (within Larimer County), as well as businesses in the unincorporated areas of the County
around or between those communities. However, the geographic boundaries of the hubs need not be
precise, as the applications from all three hubs will be considered as one pool and funding divided evenly
regardless of which hub a business applied to.
Based on preliminary estimates of available funds, the Ordinance appropriates the final award amount, up to
$1.5 million, in unanticipated revenue from the County for the SBR. The city may use up to 4.5 percent of
these funds for administrative costs, including staff time, online grant management software, communications
and marketing, and other program related expenses.
Overview of SB20B-001:
Below is a brief overview of the SB20B-001:
• $37 million apportioned for direct relief payments to small businesses within a limited set of industries.
• Counties must apply by January 8, 2021 to receive an allocation of available money.
• Up to 5% percent may be allocated for administrative costs.
• Payment maximums:
o Revenue less than $500,000 - up to $3,500 in assistance
o Revenue of $500,000 up to $1.0 million - up to $5,000 in assistance
o Revenue of $1.0 million up to $2.5 million - up to $7,000 in assistance
• County must be under “severe” capacity restrictions as of December 31, 2020 (Level Red or greater) with
those restrictions in effect since at least December 10, 2020 (Larimer County is eligible).
• Eligible industries include restaurants, bars, breweries, caterers (including food trucks), movie theaters,
fitness (gyms), and recreation sports centers (further details in the bill).
• Additional business eligibility requirements:
o Can provide current State license verifying legal operation in Colorado;
o Headquarters must be in Colorado;
o Demonstrate at least 20 percent revenue loss since March 26, 2020 (except businesses that began
operations between January 1 and March 26, 2020);
o Must have less than $2.5 million in revenue for 2019 and 2020 calendar year;
o Have at least one full-time employee except sole proprietorship;
o Began operating before March 26, 2020; and
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o Must comply with public health orders.
• All funds must be distributed no later than February 12, 2021.
CITY FINANCIAL IMPACTS
City resources would increase by up to $1.5 million. These funds would be appropriated in the General Fund
and disbursed in defined amounts to eligible and certified small businesses meeting the requirements of the
SBR. Additionally, the City can use up to 4.5 percent of the allocated funds to offset administrative costs.
Therefore, the net effect to the City’s budget will be zero.
BOARD / COMMISSION RECOMMENDATION
Small Business relief and recovery support is a priority of the Economic Advisory Commission (EAC), but no
formal recommendation was sought for appropriation of these unanticipated revenues.
ATTACHMENTS
1. Powerpoint Presentation (PDF)
01.12.2020
Small Business Relief: Appropriation & Agreement
Josh Birks
ATTACHMENT 1
Council Action
Council is being asked to consider:
1.A R esolution Authorizing an Intergovernmental Agreement between
the City and Larimer County for Funding and Administration of a
Small Business Relief (SBR) Program
2.First Reading of an Ordinance Appropriating Unanticipated Revenue
in the General Fund for a Small Business Relief Program to be
Administered and Distributed by the Economic Health Office
2
Overview of Funding Source
Colorado General Assembly
passed SB20B-001:
•Provides $37 million for direct
relief payments to small
businesses
•Counties must apply, can use
existing or new partnerships to
distribute
•County requested support of
municipalities to distribute funds
•County application is complete
3Bill enables a new Small Busines Relief (SBR) program
Objectives:
1.Maximize Available
Funds
2.Ensure consistency
across the County
3.Deliver efficient and
rapid deployment of the
SBR
4
Hub Model
Partners Together:
•County applies for funds &
manages reporting
•Hubs support applicants and
certify eligibility (per Bill)
•County supports Spanish
Language applicants
•All Hubs & County agree on final
payment amount by tier
•Ensures consistent and fair
process for all County businesses
5Fort Collins: LaPorte, Livermore, Red Feather, Timnath & Wellington
Primary Eligibility Requirements
§Ve rify legal operation in CO
§At least 20 percent revenue loss
since March 26, 2020
§Less than $2.5 million in revenue
(2019 & 2020)
§Have at least 1 employee (except
sole proprietors)
§Began operations prior to March
26, 2020
§In compliance with all public
health orders
6No subjectivity; Applicants eligibility based on documentation
Key Dates
•1/12 –First Reading on
Ap propriation and Ag reement
Au thorization (Tonight)
•1/15 –State provides allocation
•1/19 –Second Reading on
Appropriation
•1/27 –Business Applications Due
•1/29 –Finalize payment amounts
•2/12 –Al l payments must be
distributed
7Bill requires applications to open for 21 days (1/6 to 1/27)
Staff Recommendation
Staff recommends adoption
of the Resolution and
Ordinance on First Reading
8
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RESOLUTION 2021-006
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING AN INTERGOVERNMENTAL AGREEMENT BETWEEN
THE CITY AND LARIMER COUNTY FOR FUNDING AND ADMINISTRATION
OF A SMALL BUSINESS RELIEF PROGRAM
WHEREAS, the City of Fort Collins is threatened with serious injury and damage,
consisting of widespread human and economic impact caused by the Novel Coronavirus 2019
(COVID-19); and
WHEREAS, on March 13, 2020, in order to undertake emergency measures to protect the
life, health, safety and property of the citizens of the City and persons conducting business therein,
and in order to attempt to minimize the loss of human life and the preservation of property, the
City Manager, as the Director of the City's Office of Emergency Management, proclaimed a “local
emergency” in accordance with Section 2-671(a)(1) of the City Code and activated the Emergency
Operations Plan established pursuant to Section 2-673 of the City Code; and
WHEREAS, the COVID-19 pandemic has had an unexpected and substantial impact on
health risks for City residents, the social structures in the community, the economic wellbeing of
the business community, and the services provided by the City in response; and
WHEREAS, the prevention and management of exposure to COVID-19 and mitigation of
related social, economic, and other impacts of all kinds continue to require emergency action by
the City; and
WHEREAS, the City Council has, with the adoption of Resolution 2020-030, extended the
City Manager's proclamation of local emergency; and
WHEREAS, the State of Colorado declared its first Emergency Disaster Declaration
related to COVID-19 on March 11, 2020; and
WHEREAS, the Colorado General Assembly, as part of a special session in December
2020, approved Senate Bill 20B-001 (“SB20B-001”), authorizing monetary relief for small and
minority businesses as well as arts organizations, which Bill was signed by the Governor on
December 7, 2020; and
WHEREAS, SB20B-001 provides $37 million in state funds for direct relief payments to
small businesses located in a county that is subject to, and in compliance with, severe capacity
restrictions pursuant to a public health order, with payments allocated to the counties for
distribution to eligible small businesses, including restaurants, bars, movie theaters, and fitness
and recreational sports centers; and
WHEREAS, Larimer County (the “County”) is eligible to receive funding and submitted
the required application for consideration of allocation on January 4, 2021; and
WHEREAS, the County has asked the City, the City of Loveland, and Town of Estes
Park to each act as a “hub” to distribute funds to their community, adjacent communities, and
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adjacent portions of the unincorporated county, which means the City will receive unanticipated
revenue to distribute and administer a Small Business Relief (SBR) program for its defined
“hub” geography; and
WHEREAS, to establish a uniform process for administration of the SBR, the County
intends to enter into a separate intergovernmental agreement (IGA) with each hub; and
WHEREAS, the proposed IGA between the City and the County has not yet been
prepared; however, the IGA will include the following key provisions:
• Larimer County will distribute funds to each of the hubs based on the number of
applications received and processed by the hub for the SBR.
• Larimer County will pass through to the hubs 4.5 percent of the allowable 5 percent the
County allotted for administrative costs for program administration, with the 4.5 percent
based on the total funding provided to each hub as described above.
• The SBR application dates for Larimer County will be Wednesday, January 6, 2020
through close of business on Wednesday, January 27, 2020 for a total of 22 days.
• Representatives from the three hubs and the County will meet Friday, January 29, 2021 to
review the number of eligible applications and determine relief fund amounts for the
three relief tiers (as outlined in the legislation).
• The goal is to provide each eligible business with the same amount of relief payment
(within their relief tier) and to provide a consistent approach among the three hubs.
• All three hubs will use the same application, collect the same documentation, and use the
same online grant management system.
• Hubs are encouraged to retain applications that do not meet SBR eligibility but may have
valid needs for SBR-like assistance if additional funds become available through other
sources.
• The Fort Collins hub would consist of Fort Collins, LaPorte, Livermore, Red Feather
Lakes, Wellington, and Timnath (within Larimer County), as well as businesses in the
unincorporated areas of the County around or between those communities. However, the
geographic boundaries of the hubs need not be precise, as the applications from all three
hubs will be considered as one pool and funding divided evenly regardless of the hub to
which a business has applied; and
WHEREAS, pursuant to Colorado Revised Statutes Section 29-1-203, governments may
cooperate or contract with one another to provide any function or service lawfully authorized to
each of the cooperating or contracting units of government; and
WHEREAS, the City Council has determined that it is in the best interests of the City that
the City Manager be authorized to execute an IGA between the City and the County in support of
the SBR as described in this Resolution.
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NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That the City Council hereby authorizes the City Manager to execute an
intergovernmental agreement between the City and the County consistent with this Resolution,
for the purpose of administering a small business assistance program using funds provided by the
State of Colorado pursuant to SB20B-001, including such terms and conditions as the City
Manager, in consultation with the City Attorney, determines to be necessary and appropriate to
protect the interests of the City or further the purposes of this Resolution.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this
12th day of January, A.D. 2021.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
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ORDINANCE NO. 017, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED REVENUE IN THE GENERAL FUND FOR A
SMALL BUSINESS RELIEF PROGRAM TO BE ADMINISTERED AND DISTRIBUTED BY
THE ECONOMIC HEALTH OFFICE
WHEREAS, the City of Fort Collins is threatened with serious injury and damage,
consisting of widespread human and economic impact caused by the Novel Coronavirus 2019
(COVID-19); and
WHEREAS, on March 13, 2020, in order to undertake emergency measures to protect the
life, health, safety and property of the citizens of the City and persons conducting business therein,
and in order to attempt to minimize the loss of human life and the preservation of property, the
City Manager, as the Director of the City's Office of Emergency Management, proclaimed a “local
emergency” in accordance with Section 2-671(a)(1) of the City Code and activated the Emergency
Operations Plan established pursuant to Section 2-673 of the City Code; and
WHEREAS, the COVID-19 pandemic has had an unexpected and substantial impact on
health risks for City residents, the social structures in the community, the economic wellbeing of
the business community, and the services provided by the City in response; and
WHEREAS, the prevention and management of exposure to COVID-19 and mitigation of
related social, economic, and other impacts of all kinds continue to require emergency action by
the City; and
WHEREAS, the City Council has, with the adoption of Resolution 2020-030, extended the
City Manager's proclamation of local emergency; and
WHEREAS, the State of Colorado declared its first Emergency Disaster Declaration
related to COVID-19 on March 11, 2020; and
WHEREAS, the Colorado General Assembly, as part of a special session in December
2020, approved Senate Bill 20B-001 (“SB20B-001”), authorizing monetary relief for small and
minority businesses as well as arts organizations, which Bill was signed by the Governor on
December 7, 2020; and
WHEREAS, SB20B-001 provides $37 million in state funds for direct relief payments to
small businesses located in a county that is subject to, and in compliance with, severe capacity
restrictions pursuant to a public health order, with payments allocated to the counties for
distribution to eligible small businesses, including restaurants, bars, movie theaters, and fitness
and recreational sports centers; and
WHEREAS, Larimer County (the “County”) is eligible to receive funding and submitted
the required application for consideration of allocation on January 4, 2021; and
WHEREAS, the County has asked the City, the City of Loveland, and Town of Estes
Park to each act as a “hub” to distribute funds to their community, adjacent communities, and
adjacent portions of the unincorporated county, which means the City will receive unanticipated
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revenue to distribute and administer a Small Business Relief (SBR) program for its defined
“hub” geography; and
WHEREAS, SB20B-001 requires that all funds be distributed to businesses by no later
than February 12, 2021; and
WHEREAS, the precise amount of funds the City will need to receive, appropriate and
distribute will not be known until January 29, 2021, but in order to meet the February 12
deadline for distribution of funds the City cannot wait until the funding amount is known to
begin the process of appropriating the funds for expenditure; therefore, staff is requesting that the
Council appropriate up to $1.5 million in unanticipated revenue, recognizing that the actual
amount of funds available for appropriation will depend on the amount of funds received from
the County; and
WHEREAS, this appropriation benefits public health, safety and welfare of the citizens
of Fort Collins and serves the public purpose of assisting the overall community recovery from
the COVID-19 pandemic; and
WHEREAS, Article V, Section 9, of the City Charter permits the City Council to make
supplemental appropriations by ordinance at any time during the fiscal year, provided that the
total amount of such supplemental appropriations, in combination with all previous
appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated
revenues to be received during the fiscal year; and
WHEREAS, the City Manager has recommended the appropriation described herein and
determined that this appropriation is available and previously unappropriated from the General
Fund and will not cause the total amount appropriated in the General Fund to exceed the current
estimate of actual and anticipated revenues to be received in that fund during any fiscal year.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That there is hereby appropriated upon receipt from unanticipated revenue in
the General Fund the sum of ONE MILLION FIVE HUNDRED THOUSAND DOLLARS
($1,500,000), subject to receipt from Larimer County, for distribution by the Economic Health
Office to eligible and certified small businesses as part of the Small Business Relief Program and
for use by the Economic Health Office to offset administrative costs driven by the Program.
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Introduced, considered favorably on first reading, and ordered published this 12th day of
January, A.D. 2021, and to be presented for final passage on the 19th day of January, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 19th day of January, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk