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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/28/2020 - COVID-19 SOCIAL AND ECONOMIC RECOVERYDATE: STAFF: April 28, 2020 Clay Frickey, Redevelopment Program Manager Jackie Kozak-Thiel, Chief Sustainability Officer Josh Birks, Economic Health Director WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION COVID-19 Social and Economic Recovery. EXECUTIVE SUMMARY The purpose of this item is to provide information about known COVID-19 impacts, summarize social and economic responses to date, summarize funding sources, outline principles to guide recovery, and seek feedback on proposals for dispersal of funding. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED Do Councilmembers support staff's current approach to economic and social recovery? BACKGROUND / DISCUSSION Fort Collins and the global community have already experienced widespread human and economic impact caused by the Novel Coronavirus 2019 (COVID-19). This Work Session item includes the following for discussing these impacts: • Landscape assessment of the global, national, and more local insights already learned. • A brief overview of the response efforts to date by the City and our community. • An initial set of guiding principles to direct a triple bottom line approach to recovery. Landscape Assessment As with any ongoing crisis, the full impacts to our community are still unknown. However, there are a series of insights staff can offer at this point: Global, National, and Local Insights • Poverty: According to a recent Oxfam report (www.oxfam.org <http://www.oxfam.org/>), 6-8% of the global population (500 million people) could be pushed into poverty. • Unemployment: Nationally, and as of April 11, unemployment claims are at $22 million, or about 18% of the U.S. work force. In Colorado, the state has already received 232,000 claims for unemployment (approximately 7% of the Colorado work force) and these claims are disparate by industry. • Health Impacts: Inequities and health disparities were present prior to COVID-19, and these inequities are in stark relief now. For example, in Colorado, African Americans represent 3.9% of Colorado’s population but represent 7% of both cases of COVID-19 and associated deaths. A recent paper reviewed national data and projected that persons experiencing homelessness “infected with COVID-19 are twice as likely to be hospitalized, two to four times as likely to require critical care, and two to three times as likely to die from the illness as the general population.” (works.bepress.com/dennis_culhane/237/?mc_cid=ad1b3e3234&mc_eid=7847c2f8d7 <https://works.bepress.com/dennis_culhane/237/?mc_cid=ad1b3e3234&mc_eid=7847c2f8d7>). • Consumer Concerns: According to a recent analysis by McKinsey & Company (www.mckinsey.com <http://www.mckinsey.com/>), U.S. consumers top concerns in April are uncertainty around public health, the duration of the crisis, and economic impacts. April 28, 2020 Page 2 What We Know Today The impact of COVID-19 will be far reaching with full extent of impacts unclear; however, the following impacts are already known: • The U.S. Economy: The overall U.S. economy is now in recession and has been since March. • CARES Act: Business support has already exhausted its funding. • Local business and service providers: These entities are anticipating significant downside to their revenue. See more information below. • The City of Fort Collins: The City entered the crisis from a strong financial position, but anticipated revenue losses will require the City to act to rebalance its 2020 budget and address impacts in the 2021 budget. What Remains Unknown The remaining aspects of the impact remain unclear, including: • Severity of decline: How much downside the economy might experience in this recession. • Shape and length of recovery: ▪ Length: If the economy will rebound quickly or if recovery will be more protracted. ▪ Shape: The recovery could be Structural or Cyclical. Structural decline would represent a steep decline and slow recovery that may fail to reach pre-crisis peak. Cyclical decline would result in a less pronounced decline followed by a recovery that would return to pre-crisis levels. • Full impact of federal aid (direct & indirect): Federal aid will continue to filter down to the community and impacts will not be evident for several months. • CARES 2.0: The second phase of the CARES act could be an opportunity, but its contents and timing are unknown at this point. • Other lagging responses to COVID-19: Businesses, municipalities, and community members continue to adapt to changing reality presented by COVID-19. Many businesses and municipalities are waiting to assess the full extent of COVID-19 impacts before implementing furloughs or laying off staff. Survey Results To better understand how the community is faring, two questionnaires were created: 1. A questionnaire sent to the business community (inclusive of nonprofits). 2. A questionnaire sent to existing nonprofit partners that the City funds through its human service funding. Business Survey Starting shortly after Governor Polis executed the Stay at Home order on March 25, 2020, the Northern Colorado Regional Economic Development Initiative (NoCo REDI) prepared questionnaire for distribution to businesses. The survey was open until April 16, 2020 and received over 650 responses from Larimer County. Economic health staff prepared a summary of the Fort Collins breakout available as Attachment 2. The highlights of the survey include: • 155 responses from Fort Collins businesses through April 16 • 40% of respondents have reduced employment or employee hours • 53 responded they had lost more than $25,000 in revenue • 37% of businesses stated the minimum amount which would be useful to them is over $25,000. Initial Nonprofit Assessment In the week of April 13, staff conducted an informal assessment to obtain a general idea about how existing nonprofit partners were responding to COVID-19 with programs and services and to better understand the financial impacts these nonprofits were experiencing and anticipating going forward. While staff is still processing April 28, 2020 Page 3 the twenty-three (23) responses received (out of 34 total partners), here is an initial summary of what was learned: • Revenue Loss (8): The most significant impacts seen thus far mirror business impacts - anticipated revenue loss, with almost $300,000 in costs incurred already and an approximate $1.2 million in future funding gaps anticipated. Revenue loss has been experienced in the following ways: ▪ Decreased fundraising: Nonprofits had to cancel major fundraising events that support year-round operational costs. For example, Teaching Tree shared they had two fundraisers originally scheduled this spring which would have raised up to $50,000 for their annual operations. ▪ Increased costs of doing business: For some, like the Food Bank, implementing physical distancing has meant it takes more time to get their services to their customers, increasing operational costs. For others, like CASA (Court-appointed Special Advocate), the transition to virtual case-management and facilitating contact free custody exchange has increased the cost of business. ▪ Overall loss of revenue: Particularly childcare services are anticipating large losses related to reduced services (smaller group sizes) and tuition losses. • Changing Service Delivery Methods (6): As noted above, this largely included changes to how services or programming is provided. • Adding Programs in Direct Response to COVID-19 (5): Agencies have added programs to meet emergency shelter, rent, and food needs. For example, the Food Bank started delivering food boxes to homebound seniors and Neighbor to Neighbor has expanded its rental assistance program by over 700% and added a full-time Spanish speaking counselor. • Increased Demand on Existing Services (4): Nonprofits noted an increase in demand on existing services. For example, the Food Bank shared that they serve 9,000 meals in an average month and served over 14,000 per month in the last recession. They are anticipating a similar increase in service demand during this time and throughout recovery. Response to Date To adapt to the rapidly changing environment presented by this crisis, the city has implemented a suite of tactics and programs to ensure community members and businesses are able to connect to available resources. Below is a brief summary of responses to date: Overall Efforts: In both areas, communications and coordination were prioritized to ensure that residents are aware of resources through mechanisms that are accessible to them, including: • Partnership with United Way of Larimer County: City staff is working closely across departments and with community partners to coordinate and ensure the information included in the United Way resource lists is shared widely and is as comprehensive as possible. See memo in the April 16 Council Packet for more information on this partnership. • Larimer County Task Force: The seven municipalities, chambers of commerce, and the county participate in a task force to coordinate responses to COVID-19 across jurisdictional boundaries. • Connect First: We meet weekly with key community executives about how to collectively support outcomes for kids with a data informed approach, including Poudre School District, County, Bohemian Foundation, Early Childhood Council, and United Way of Larimer County. • Adopt a Neighbor: Within five business days of the stay-at-home order, the city retooled and relaunched Adopt-a-Neighbor to ensure neighbors were able to support their neighbors directly during this time. As of today, we have 340 volunteers supporting 52 neighbors. • Bridging the Digital Divide: Knowing that there is a significant need to reach residents without internet access, the city is beginning to bridge this gap in the following ways: ▪ Connexion is following the same protocol as Utilities and will not disconnect services to customers for nonpayment until further notice. In addition, Connexion is working closely with Poudre School District to deploy wi-fi service to manufactured home communities; work began the week of April 13. ▪ Staff is ensuring residents who need information most right now, including seniors and other susceptible populations, have access to resources by: (1) mapping these residents, and (2) directly delivering April 28, 2020 Page 4 information to their doors. • Translation of Materials: To ensure information is accessible to our Spanish speaking families, staff has been working with community partners to translate each of the United Way resource lists into Spanish and share them with community members. Staff is also prioritizing other mechanisms to ensure materials are accessible, e.g., sign translations, the Town Hall for Spanish-Speaking Families hosted by Poudre Library that will be held on April 23, and more. In addition to communications and coordination, staff is also supporting leadership to help inform State and Federal funding and policy as it is developed, e.g., what should be included in any potential CARES2 funding for local governments. Overview of Social Response Efforts Housing: • The city has coordinated with partners to increase rental assistance opportunities through Neighbor to Neighbor. • Staff is prioritizing the Community Development Block Grant (CDBG) COVID-19 funding coming to Fort Collins (more information on this resource below). • Community response has been bolstered by the statewide eviction moratorium and specific mortgage assistance outlined in the CARES Act. • The City Manager signed an emergency order on March 25 to allow for recreational vehicles (RVs) to be occupied on private property with permission from the property owner during this time, amongst other allowances. Homelessness: • The City and its partners established a centralized operations center at Northside Aztlan Community Center (Aztlan). This site serves as an overnight shelter for male guests. • On April 10, the city converted Heritage Park to an outdoor shelter site for those experiencing homelessness with a designated camping area. o An exit strategy is underway which aligns with recommendations from the Larimer County Health Department and will return the site to a park once the stay-at-home order is lifted. • The city is working with the Health District and Homeward Alliance to convert a City property on West Myrtle for use as an isolation site for people who are at higher risk for negative health outcomes related to COVID- 19. This site is anticipated to serve 12-15 people starting the week of April 27. Equity: While equity and inclusion efforts will be discussed in more depth at the May 12 Work Session, equity is a key principle in the city’s approach to recovery and examples of work to date are highlighted below: • Just in Time Equity Lens - This tool was developed by the newly formed Rapid Response Racial Equity Team to help embed equity and inclusion into our organizational COVID response and aligns with the city’s Strategic Objective to support “equity for all, leading with race.” Project managers are using the tool to help ensure they are designing efforts to help marginalized populations, especially communities of color, while elevating equitable outcomes for all residents. • In addition, the City has formed a Vulnerable and Susceptible Populations Group to ensure coordination across departments, prioritizing service delivery mechanisms that meet the needs of all residents. Overview of Economic Response Efforts • NoCoRecovers.com: NoCoRecovers.com is a one-stop-shop for businesses to access resources to aid in their recovery from COVID-19 impacts. This website serves all of Northern Colorado and is supported by 19 economic development programs, including the city’s Economic Health Office. • Weekly Targeted Email: The Economic Health Office sends a weekly e-mail to interested businesses with April 28, 2020 Page 5 links to helpful resources and status updates on programs to aid in their recovery. • Support Local Campaign: In collaboration with the Fort Collins Chamber of Commerce, staff has developed a campaign to encourage community members to support local businesses. The campaign goes beyond just encouraging shopping at local retailers. The idea of the program is to encourage businesses to also support other local businesses, entrepreneurs, and non-profits. • Relief and Recovery Loan Fund: This loan fund provides loans with favorable terms to businesses that are underserved by banks. The goal of the fund is to provide small businesses with working capital to retain employees and survive the economic downturn. COVID Response Funding Sources There are multiple funding sources available to Fort Collins for COVID-19 response and recovery. To date, across the CARES funding and other federal/state agency mechanisms, the City has identified $8.4 million that flow directly to the city organization (via FTA and HUD) and another $17 million for the Northern Colorado Regional Airport. Staff continues to work with partners at all levels of government to determine the city’s allocations. Available funding for residents and businesses continues to evolve (is robust) and the amount the community receives is dependent on the federal aid packages made available and the number of organizations that apply for aid. Federal and state funding resources are outlined in Attachment 1. In addition, multiple private funding sources are available to our community and region. Information about all funding sources (federal, state, private) is maintained in the NoCoRecovers.com <https://nocorecovers.com/> web site, a one-stop-shop for up-to-date information on potential funding resources  for the business community of Northern Colorado. Principles and Approaches to Recovery Staff has developed an initial series of principles to guide our recovery. Staff will provide examples of the principles in action and recovery during the Work Session presentation. • Adaptability in the face of change and uncertainty: As an organization, we will act nimbly and adapt current services to meet the needs of the community amidst rapid change. • Community focused, centered in equity and inclusion: Staff will develop processes, programs and deliver community outcomes in a way that furthers our goals around equity and inclusion. • Policies and infrastructure integrate and maximize Triple Bottom Line benefits: Economic, environmental, and social health all benefit from new policies and infrastructure as well as changes to existing policies and infrastructure. • Advance regeneration and resilience: Staff’s response creates structures that regenerate the community and allow Fort Collins to be resilient in the face of future crises. • Capitalize on opportunities for improvement: Use COVID-19 response as a way to improve processes that can apply beyond the recovery phase and become permanent changes to the way we do business. • Remove regulatory barriers: Address existing regulatory barriers to allow the community to recover more quickly. • Apply lessons learned in response: Create frameworks that allow Fort Collins to better manage future crises and community disruptions. • Align, collaborate, and innovate with partners: Collaborative systems will help our partners better navigate current and future crises while developing stronger bonds that will help the community recover together. It is anticipated these principles will evolve into a framework for recovery in the coming months. Phases of Recovery Our path to recovery will not likely follow a straight line. To acknowledge this, staff proposes adopting a tiered approach to recovery that allows the city to quickly adapt its response to the changing needs of the community. The tiered approach follows a similar structure for the city’s structure for emergency management and the state’s phases of recovery. The phases of recovery include: April 28, 2020 Page 6 • Response: Address immediate community needs and minimize further spread of COVID-19. • Emergence: Open portions of economy back up with restrictions. Gradually phase in activities provided new cases of COVID-19 flatline or drop. • Recovery: Relax most restrictions and begin to return to standard business practices. NEXT STEPS • CDBG-CV Funding Appropriation and Resolution Proposed Timeline • May 12 - Equity and Inclusion Work Session • Developing internal metrics dashboard • Continue to research promising practices • Form Triple Bottom Line (TBL) Community Recovery Advisory Committee ATTACHMENTS 1. Memo on Federal and State funding sources (PDF) 2. Business Survey Results Summary (PDF) 3. Economic Social Recovery COVID WS Apr28 (PDF) City Manager’s Office City Hall 300 LaPorte Ave. PO Box 580 Fort Collins, CO 80522 970.221.6505 970.224.6107 - fax fcgov.com MEMORANDUM DATE: April 9, 2020 TO: Mayor and City Councilmembers FROM: Darin Atteberry, City Manager RE: COVID-19 Funding Sources Available to Fort Collins Attached is a memorandum to City Council that serves as an important reference for Council and our community regarding federal and state resources available to support Fort Collins’ recovery from the COVID-19 pandemic. As you know, our City organization is deeply committed to researching resources and providing that information to our community that is clear, timely, and easily accessible. We are in a dynamic environment in many ways, and information and guidelines on funding sources will continue to evolve. Information contained in this memo provides the best information we have today, but we anticipate things to evolve, and will share this information with Council and our community in a timely way. My intent is to discuss these funding opportunities with the Council Finance Committee on April 20 and then with the full City Council on April 28 in a work session on Social and Economic Recovery in Fort Collins. I am pleased and appreciative of the work to date to compile these resources, and to assess the needs in our community as we begin our work to disperse the funds. I also continue to refer community members to these City websites for additional information. COVID19 Resources For all residents: https://www.fcgov.com/eps/coronavirus For businesses: https://www.fcgov.com/business/ Want to help: https://www.fcgov.com/volunteer/ Connect with resources: https://uwaylc.org/ RECURSOS COVID-19 Para integrantes de la comunidad: https://www.fcgov.com/eps/coronavirus Para empresas: https://www.fcgov.com/business/ ¿Quieres ayudar o necesitas ayuda? https://www.fcgov.com/neighborhoodservices/adopt Recursos de United Way: https://uwaylc.org/ ATTACHMENT 1 1 Financial Services 215 North Mason Street 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6770 970.221.6782 - fax fcgov.com MEMORANDUM DATE: April 9, 2020 TO: Mayor and City Councilmembers THRU: Darin Atteberry, City Manager Jeff Mihelich, Deputy City Manager FROM: Travis Storin, Interim Chief Financial Officer Jacqueline Kozak Thiel, Chief Sustainability Officer Caryn Champine, Planning, Development and Transportation Director RE: Summary of Federal and State COVID-19 Funding Sources Available to Fort Collins Purpose: To provide a summary of known Federal and State funding opportunities to support Fort Collins in response to and recovery from the COVID-19 pandemic. Bottom Line: There are multiple funding sources available to Fort Collins for COVID-19 response and recovery. Thus far, across the CARES funding and other federal/state agency mechanisms, the City has identified $8.4M that flow directly to the City organization (via FTA and HUD). An as-of- yet indeterminate amount of additional federal pass-through funding is available to the City organization and staff is working with partners at all levels of government to determine the City’s allocations. Available funding for residents and businesses is robust and the amount the community receives is dependent on the number of organizations that apply for aid. Staff continues to research additional opportunities and will inform Council as any are identified. I. Overview of Federal Funding Sources On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES) was signed into law. The $2.2 trillion package includes a wide range of provisions that provide funding for issues ranging from emergency relief to unemployment benefit expansion. Target recipients for each item are in parentheses. For ease, each of the major aspects of the CARES Act are described individually below and in more detail in Attachment 1. CARES Act: Payroll Protection Program (PPP) (Small businesses) • $350 billion to help small businesses keep workers employed • Provides 100% federally guaranteed loans to small businesses that maintain their payroll during this emergency. • The loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward. CARES Act: Economic Injury Disaster Loan Emergency Advance (EIDL) (Small businesses) • Small business can apply for an advance of up to $10,000 if experiencing a temporary loss of revenue. This advance will not have to be repaid. 2 CARES Act: Small Business Administration (SBA) Express Bridge Loans (Small businesses) • For small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000. CARES Act: Small Business Administration (SBA) Debt Relief (Small businesses) • SBA will automatically pay the principal, interest, and fees of certain small business loans a period of six months. The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020. CARES Act: Expanded Unemployment Benefits (Anyone experiencing a loss of hours, temporary unemployment, or loss of job) • Provides for (1) an extra $600 weekly payment, in addition to the weekly benefit amount an eligible employee otherwise receives under state law; and (2) increases the maximum number of weeks an individual may receive benefits. These new benefits are funded at the federal level but will be administered by the states. CARES Act: Community Development Block Grant (CDBG) Allocation (Residents and Businesses and local government) • The Director of the Denver Regional Field Office of the Department of Housing and Urban Development (HUD) notified the City of its additional CDBG funding allocation of $649,203 under the CARES Act to support the immediate response needs. • This CARES Act guidance encouraged the City to consider approaches that prioritize the unique needs of low- and moderate–income persons and the development of partnerships between all levels of government and the private for-profit and non-profit sectors. • Process guidance still pending. • Staff is working with a multidisciplinary team to identify priority needs and gaps based on local non-profit outreach and the preliminary guidance on using CDBG funding. The team will seek Council review of an anticipated deployment plan. Note funding allocations are approved by City Council, and a timeline for appropriation will be included in the deployment plan. CARES Act: Department of Justice Coronavirus Emergency Supplemental Funding (CESF) (City Government) • Funds are awarded under the CESF Program to prevent, prepare for, and respond to the coronavirus. Allowable projects and purchases include law enforcement and certain medical needs. • The City would be eligible for a grant up to $100,818 with no local match and intends to apply • The application is due by May 29, 2020, and if awarded the City would have two years to draw down the eligible funds for reimbursement. CARES Act: Election Assistance Commission (EAC) (State and Local Governments) • This funding provides $400 million for Election Security Grants, which will be provided to States and local jurisdictions in order to manage their role in the 2020 election cycle. • EAC Commissioners and staff are moving as quickly as possible to provide guidance on how these funds will be distributed. • Staff intends to apply. 3 Federal Emergency Management Agency (FEMA) (State and Local Governments) • On March 28, 2020 President Trump approved the major disaster declaration for the State of Colorado, making Federal funding available to state, tribal and eligible local governments and certain private nonprofits, on a cost-sharing basis for expenses such as Emergency Operation Center costs, related trainings, cleaning, some Personal Protective Equipment, related communications and certain other related expenses. • Staff is tracking expenses for reimbursement. • FEMA reimbursement of costs will not exceed 75%, so the City is responsible for 25% of eligible costs • FEMA will not duplicate assistance provided by other federal agencies Federal Transit Administration (FTA) (State and Local Governments) • Transfort will net $8,719,626 in CARES funding from the FTA • Funds can cover all operating activities that occur on or after January 20, 2020 including fixed route operating expenses; and operation and maintenance of Transfort’s fleets and facilities II. Overview of State Funding Sources Colorado COVID Relief Fund (Business, Nonprofits, governments) • Funds raised will be used to support the needs of communities impacted by COVID-19 in three categories: prevention, impact, and recovery efforts. • Organizations across Colorado, including local governments, may receive a general operating grant of up to $25,000 and City staff will apply as eligible • For more information see https://covrn.com/covid-relief-fund/ Colorado Department of Local Affairs (DOLA) Emergency Disaster Fund • $3 million from Disaster Emergency Fund allocated to DOLA for emergency rent and mortgage assistance for Coloradans facing economic disruption due to COVID-19 • DOLA is coordinating with local nonprofit housing counseling agencies and housing authorities, including Neighbor to Neighbor & Housing Catalyst. No allocation plans yet announced. III. Additional Funding Sources In addition to federal and state resources to support communities in this time, private foundations and community foundations are also providing grant support throughout Colorado. The organization Philanthropy Colorado is maintaining a comprehensive list, which can be found here: https://www.philanthropycolorado.org/news/resources-covid-19-coronavirus. Additional high level information regarding private funding sources will be provided at the April 28 Work Session. Next Steps: • Discussion planned with City Council Finance Committee on 4/20/20 regarding COVID- 19 funding • April 28 Work Session planned on Social and Economic Recovery with further updated information about these funds and how they can support recovery in our community 4 Attachments Attachment 1- Federal and State Funding Source to Support Fort Collins COVID-19 Response and Recovery Attachment 2 – Fort Collins COVID-19 Community Development Block Grant Award Letter CC: Josh Birks, Economic Health Director; Lindsay Ex, Sr. Environmental Program Manager; Drew Brooks, Transit Director; Kaley Zeisel, Compliance Manager; Blaine Dunn, Interim Accounting Director 1 Attachment 1 - Federal and State Funding Sources to Support Fort Collins COVID-19 Response and Recovery (4/8/20) (The information presented here represents staff’s current understanding of funding opportunities and may evolve as additional guidance is provided.) I. Federal Funding Sources CARES Act: Payroll Protection Program  (PPP) The CARES Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Payroll Protection Program (PPP), the initiative provides 100% federally guaranteed loans to small businesses that maintain their payroll during this emergency. Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward. Eligibility/Process: • 100% federally guaranteed loans made by SBA-approved lenders direct to eligible small businesses, including charitable non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees. • An individual business can apply for the funds through any existing SBA lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. • Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders. • Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders. Other relevant context: • The loan amounts will be forgiven as long as: (a) The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and (b) Employee and compensation levels are maintained. CARES Act: Economic Injury Disaster Loan Emergency Advance (EIDL) The CARES Act authorized an Emergency Advance on Economic Injury Disaster Loans (EIDL) enabling small business owners in all U.S. states, Washington D.C., and territories to apply for an advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This advance will not have to be repaid. Eligibility/Process: • Direct advance of funds to an approved small business. • An individual business must apply for an Economic Injury Disaster Loan (EIDL) and request an Emergency Advance. The application is available directly from the Small Business Administration (SBA) on their website. • SBA is currently taking applications. 2 CARES Act: Small Business Administration (SBA) Express Bridge Loans The Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loan or used to bridge the gap while applying for a direct SBA Economic Injury Disaster Loan. If a small business has an urgent need for cash while waiting for decision and disbursement on an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan. Eligibility/Process • Loans eligible to businesses with an existing SBA Express Lender relationship for up to $25,000 to be repaid from the proceeds of an EIDL loan. • An individual business must apply for an Economic Injury Disaster Loan (EIDL) and request an Emergency Advance. The application is available directly from the Small Business Administration (SBA) on their website. • SBA is currently taking applications. CARES Act: Small Business Administration (SBA) Debt Relief The SBA is providing a financial reprieve to small businesses during the COVID-19 pandemic. The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months. The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020. Eligibility/Process: • Provides debt relief including paying principal, interest, and fees. • No application necessary based on status and eligibility of the loan. • Currently available. CARES Act: Expanded Unemployment Benefits The CARES Act includes various provisions increasing and expanding unemployment insurance benefits available to workers, including individuals who are unemployed, partially unemployed, or unable to work due to COVID-19. Eligibility/process: • Provides for (1) an extra $600 weekly payment, in addition to the weekly benefit amount an eligible employee otherwise receives under state law; and (2) increases the maximum number of weeks an individual may receive benefits. These new benefits are funded at the federal level, but will be administered by the states. • As normal through the State of Colorado Department of Labor and Employment – the state’s processer of unemployment benefits. • As of April 7, 2020, the coloradoui.gov website indicates it is not ready to accept and process claims for individuals experiencing a loss of hours or employment due to COVID19. CARES Act: Community Development Block Grant (CDBG) Allocation On April 3rd, the Director of the Denver Regional Field Office of the Department of Housing and Urban Development (HUD) notified the City of its additional CDBG funding allocation of $649,203 under the CAREs Act. Eligibility/process • HUD has stated all funding can be used for immediate response needs. • This CARES Act guidance encouraged the City to consider approaches that prioritize the unique needs of low- and moderate–income persons and the development of partnerships between all levels of government and the private for-profit and non-profit sectors. 3 • Process guidance is still pending. • In the meantime, staff is working with an interdisciplinary team to identify priority needs and gaps based on the preliminary guidance on using CDBG funding for infectious disease response. • This allocation is directly to Fort Collins and does not require a formal application, but will require a submission of an amendment to the FY2019 Annual Action Plan and approval from HUD prior to the release of funds • Once we receive the formal guidance from HUD, we will update Council on an anticipated deployment plan, including a proposed timeline for the Appropriation Ordinance for City Council's review which comes with all HUD funding recommendations. Other relevant context: • The $649,203 allocation is associated with the first wave of funding ($2B out of a total of $5B included in the CARES Act). The remaining $3B in funding will be allocated as follows: (a) $1B directly to States and (b) $2B (retained) to be released based on need as determined by the Secretary. Staff is actively monitoring these resources for opportunities to address Fort Collins’ needs. CARES Act: Department of Justice Coronavirus Emergency Supplemental Funding (CESF) Funds awarded under the CESF Program must be utilized to prevent, prepare for, and respond to the coronavirus. Allowable projects and purchases include, but are not limited to, overtime, equipment (including law enforcement and medical personal protective equipment), hiring, supplies (such as gloves, masks, sanitizer), training, travel expenses (particularly related to the distribution of resources to the most impacted areas), and addressing the medical needs of inmates in state, local, and tribal prisons, jails, and detention centers. These funds would be able to be used City-wide and not just for the Police Department. Eligibility/process: • The City would be eligible for a grant up to $100,818 and this grant does not require a local match and the City intends to apply. • The application is due by May 29, 2020, and will use the standard Federal Assistance Form. • If awarded the City would have two years to draw down the eligible funds for reimbursement. CARES Act: Election Assistance Commission (EAC) This funding provides $400 million for Election Security Grants, which will be provided to states and local jurisdictions in order to manage their role in the 2020 election cycle. Eligibility/process: • EAC Commissioners and staff are moving as quickly as possible to provide guidance on how these funds will be distributed. • Staff intends to apply as eligible. Federal Transit Administration (FTA) FTA is allocating $25 billion in CARES funding to recipients of urbanized area and rural area formula funds. These funds are being dispersed to transit agencies based on their 2020 formula funding apportionments. Eligibility/Process: • Transfort will receive a net of $8,719,626 in CARES funding by the FTA. These funds are available at a 100% federal match, there is no local match requirement. 4 • Funding through the CARES Act are available for all operating activities that occur on or after January 20, 2020 that are eligible. Funds are available until expended, there is no lapse date to obligate funds available under the CARES Act. Eligible expenses include: o Fixed route operating expenses; o Some or all of paratransit operating expenses; o Operation and maintenance of Transfort’s fleets and facilities; o Administrative leave; o Some capital and planning projects are also eligible. • Transfort will execute the contract to use these funds through FTA’s existing online portal, the Transit Award Management System (TrAMS). • Transfort will begin the process of contracting for CARES funds immediately; however, the process of executing an agreement in TrAMS takes approximately 4-6 weeks. At that time, Transfort will be able to begin submitting for reimbursements. Other relevant context: • The City of Fort Collins, as designated recipient of the Fort Collins-Loveland- Berthoud Transportation Management Area (TMA), is responsible for determining allocations of federal formula funding throughout the TMA. The TMA has been awarded a total of $12,787,733 in CARES funding for allocation among the four eligible transit agencies: Transfort, City of Loveland Transit (COLT), North Front Range Metropolitan Planning Organization (MPO) and Berthoud Area Transportation Services (BATS). • COLT will receive $2,419,666 of this funding directly from FTA. For disbursements to the other two eligible agencies in the TMA, Transfort will facilitate a funding “exchange” whereby Transfort retains 100% of the federal funds as well as 38% of each agency’s allocation and will pay out the remainder (62%) of their allocations in local funds. Therefore, Transfort will receive a total of $10,368,067 in federal funds while paying $1,648,440 in local funds to MPO and BATS. CARES Act FTA Apportionment Total $12,787,733 Loveland Federal Amount (as Direct Recipient) $2,419,666 Transfort Federal Amount $10,368,067 NFRMPO Allocation (Local Funds) ($1,473,705) BATS Allocation (Local Funds) ($174,736) Transfort Net (Federal – Local) $8,719,626 Federal Emergency Management Agency (FEMA) On March 13, 2020 President Trump declared a national emergency related to COVID-19. On March 28, 2020 the President approved the major disaster declaration for the State of Colorado. By approving this declaration Federal funding is available to the state, tribal and eligible local governments and certain private nonprofit organizations on a cost-sharing basis for emergency protective measures (Category B), including direct federal assistance under Public Assistance, for all areas affected by COVID-19 at a federal cost share of 75 percent. Eligibility/process: • Under the emergency declaration FEMA may provide assistance and reimbursement for the following costs: 5 o Management, control and reduction of immediate threats to public safety:  Emergency Operation Center costs  Training specific to declared event  Disinfection of eligible public facilities in relation to COVID-19 o Purchase and distribution of food, water, ice, medicine, and other consumable supplies, to include personal protective equipment and hazardous material suits o Movement of supplies and persons o Security and law enforcement directly related to COVID-19 o Communication of general health and safety information to the public o Reimbursement for local government force account overtime costs • Reimbursement is being handled through FEMA’s Public Assistance application process. Staff is currently working to set up a login for the City to be able to submit eligible costs for reimbursement. Staff will be able to submit costs on an ongoing basis while the City continues to respond to this disaster. • Once costs are submitted to FEMA, the City and FEMA will review backup documentation to ensure all costs are eligible for reimbursement. Once costs are reviewed the City will sign and Grant application and receive funds. Other relevant context: • The types of funds available listed above is not an all inclusive list and staff continues to research and work with partners at the State and Federal level to identify other costs that may be reimbursable. FEMA will not duplicate assistance provided by other federal agencies, staff will work together closely to ensure we are not asking for funding for the same costs from multiple federal agencies. FEMA reimbursement of costs will not exceed 75%, so the City is responsible for 25% of eligible costs II. State Funding Sources Colorado COVID Relief Fund Launched in mid-March by Governor Polis, funds raised will be used to support the needs of communities impacted by COVID-19 in both response and recovery. The fund will support work in three categories: prevention, impact, and recovery efforts. This will include things like medical and cleaning supplies, food services, early childhood education, small business support, behavioral health services, and more. Eligibility/process: • Organizations across Colorado, including local governments, may receive a general operating grant of up to $25,000. • Online application available at https://covrn.com/covid-relief-fund/ • Organizations helping with the response to COVID-19 are now able to apply for funds. • Rolling application deadlines every two weeks. • City staff will apply as eligible Other relevant context: • Fund is hosted by the State of Colorado and Mile High United Way. • Eligible Organizations: Nonprofit organizations, local government, school districts and small businesses who are: Serving areas of the state with limited nonprofit capacity; and/or Serving a community need resulting from the COVID-19 crisis. Colorado Department of Local Affairs (DOLA) Emergency Disaster Fund $3 million from the Disaster Emergency Fund were allocated to DOLA for emergency rent and mortgage assistance for Coloradans facing economic disruption due to COVID-19 Eligibility/Process; 6 • DOLA is contracting with statewide non-profit agencies & public housing authorities to administer • Neighbor to Neighbor & Housing Catalyst are currently coordinating with DOLA – no allocation plans yet announced • Timeframe for applying is unknown Other relevant context: • Multiple private entities across the state have issued guidance against evictions until after April 30 • Single family federally-backed mortgages can be deferred for up to 180 days • For more information see: https://drive.google.com/file/d/1mMCRLb6PxMPI680_THFn4nqLGAty1jq9/view U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-7000 ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND DEVELOPMENT www.hud.gov espanol.hud.gov April 2, 2020 The Honorable Wade Troxell Mayor of Fort Collins P.O. Box 580 Fort Collins, CO 80522 Dear Mayor Troxell: I am pleased to inform you of a special allocation to your jurisdiction of Community Development Block Grant funds to be used to prevent, prepare for, and respond to the coronavirus (COVID-19). This allocation was authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Public Law 116-136, which was signed by President Trump on March 27, 2020, to respond to the growing effects of this historic public health crisis. The CARES Act made available $5 billion in Community Development Block Grant Coronavirus (CDBG-CV) funds. Of this amount, the Department is immediately allocating $2 billion based on the fiscal year 2020 CDBG formula. The remaining $3 billion shall be allocated based on needs using best available data, in the following tranches: $1 billion shall be allocated to States and insular areas within 45 days of enactment of the Cares Act, and $2 billion shall be distributed to states and local governments at the discretion of the Secretary. Up to $10 million will be set aside for technical assistance. Given the immediate needs faced by our communities, the Department has announced the first allocation of funds. Your jurisdiction’s allocation is $649,203. The CARES Act adds additional flexibility for both the CDBG-CV grant and, in some cases, for the annual FY2020 CDBG grants in these unprecedented times. The public comment period is reduced to not less than 5 days, grantees may use virtual public hearings when necessary for public health reasons, the public services cap is suspended during the emergency, and States and local governments may reimburse costs of eligible activities incurred for pandemic response regardless of the date. In addition, the CARES Act authorizes the Secretary to grant waivers and alternative requirements of statutes and regulations the Secretary administers in connection with the use of CDBG-CV funds and fiscal year 2019 and 2020 CDBG funds (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment). Waivers and alternative requirements can be granted when necessary to expedite and facilitate the use of funds to prevent, prepare for, and respond to coronavirus. The Department is developing a notice that will further describes the CARES Act’s provisions, a Quick Guide to the CARES Act flexibilities and other provisions, and other resources to enable swift implementation of CDBG-CV grants. As these become available, they will be posted on HUD’s website and distributed to grantees. The Department will also support grantees with technical assistance. As you develop your plan for the use of these grant funds, we encourage you to consider approaches that prioritize the unique needs of low- and moderate–income persons and the development of partnerships between all levels of government and the private for-profit and non- profit sectors. You should coordinate with state and local health authorities before undertaking any activity to support state or local pandemic response. CDBG-CV grants will be subject to oversight, reporting, and requirements that each grantee have adequate procedures to prevent the duplication of benefits. HUD will provide guidance and technical assistance on DOB and regarding prevention of fraud, waste, and abuse and documenting the impact of this program for beneficiaries. The Office of Community Planning and Development (CPD) is looking forward to working with you to successfully meet the urgent and complex challenges faced by our communities. If you or any member of your staff has questions, please contact your local CPD Field Office Director or CPDQuestionsAnswered@hud.gov. Sincerely, John Gibbs Acting Assistant Secretary for Community Planning and Development U.S. Department of Housing and Urban Development The Northern Colorado Business Retention and Expansion AprilSurvey 28, 2020 Partnership Regional ATTACHMENT 2 Regional Economic Development Initiative (REDI) 2 As part of a group of organizations that work closely with businesses on a daily basis, the City of Fort Collins Economic Health Office joined our regional partners to send out a brief survey to understand the impacts of COVID-19 on local business. All organizations including members of the Regional Economic Development Initiative (REDI) sent out the same business survey to their respective companies. Survey Responses 3 Businesses throughout Fort Collins and the region were e- mailed a business questionnaire. Which was also promoted through the City website and social media. As of April 16th (we are still receiving responses): 155 businesses in Fort Collins responded to the survey. 629 businesses in all of Larimer County responded. Industry Responses 4 18.7% of the survey respondents identified in the other category. The next highest categories of respondents were professional services at 15.5% and retail at 14.2%. Changes in Employment 5 53.5% of respondents have made no layoffs or furloughs to their workforce. 40% of respondents have reduced employment or employee hours. Changes to Business Practices 6 74% of businesses implemented both social distancing and increased sanitation practices. Economic Impacts 7 Businesses are experiencing a variety of supply chain disruptions including: • Parts distributors closed • Inability to export to certain countries • Taking longer to receive inventory • Inability to get PPE for employees Business Assistance 8 Over 72% of survey respondents indicated a grant was the type of assistance they were looking for. Almost 37% of businesses stated the minimum amount which would be useful to them is over $25,000. SBAAssistance 9 Over 51% of survey respondents indicated they have never interacted with the SBA. Over 65% of businesses stated the have or will apply for an SBA Economic Injury Loan. Region-wide Data 10 Larimer County - Industry Breakout 11 Industry Category Fort Collins All of Larimer (including Fort Collins) Other 18.7% 21.1% Retail 14.2% 12.4% Professional Services 15.5% 11.3% Restaurant/Bar 12.3% 10.0% Hotel/Hospitality 1.3% 9.1% Larimer County - Changes in Employment 12 Employment Changes Fort Collins All of Larimer (including Fort Collins) No Changes 34.8% 35.6% Reduced Employment or Employee Hours 29.0% 37.7% Layoffs 20.6% 24.2% Multiple Changes 11.6% Increased Employment 3.9% 2.5% Laid-off/Furloughed Fort Collins All of Larimer (including Fort Collins) None 53.5% 57.4% 1-10% 8.4% 5.9% 11-30% 3.2% 3.3% 31-50% 5.2% 5.7% More than 50% 29.7% 27.7% Larimer County - Changes to Business Practices 13 71% of businesses implemented increased sanitation practices 67% implemented social distancing Larimer County - Economic Impacts 14 Larimer County - Business Assistance 15 Financing Amount Needed Fort Collins All of Larimer (including Fort Collins) $0-$2,500 7.1% 11.0% $2,500-$5,000 9.0% 10.5% $5,000-$10,000 16.1% 17.8% $10,000-$25,000 18.1% 19.4% $25,000 + 36.8% 28.5% Undetermined 12.9% 12.9% Larimer County - SBAAssistance 16 Over 54% of survey respondents indicated they have never interacted with the SBA. Over 63% of businesses stated the have or will apply for an SBA Economic Injury Loan. Historical Fort Collins Data 17 Job Growth in Fort Collins MSA 2010-2019 18 Top Growth Industries by % 1) Management of Companies and Enterprises 2) Mining, Quarrying, and Oil and Gas Extraction 3) Wholesale Trade 4) Educational Services 5) Construction Top Growth Industries by # Jobs 1) Accommodation and Food Services 2) Construction 3) Manufacturing 4) Retail Trade 5) Professional, Scientific, and Technical Services Labor Force in Fort Collins 19 Fort Collins' unemployment rate continues to be lower than U.S. averages. 1Q2019 2Q2019 3Q2019 4Q2019 U.S. 3.9% 3.6% 3.6% 3.5% Colorado 3.6% 3.2% 2.6% 2.4% Fort Collins 3.0% 2.3% 2.1% 2.0% Occupations in Fort Collins 20 Life, Physical and Social Science 1) Conservation Scientists 2) Medical Scientists 3) Chemists Architecture and Engineering 1) Civil Engineers 2) Mechanical Engineers 3) Industrial Engineering Technicians Computer and Mathematical 1) Software Developers, Applications 2) All Other Occupations 3) Computer User Support Specialists ¶ These occupations are projected to increase by 9.7% from 2019-2024, outpacing the national projected growth rate of 6.4%. Median Household Income in Fort Collins 21 2010-2018: 1.95% average annual growth rate April 28, 2020 COVID-19 Social & Economic Recovery Jacqueline Kozak Thiel, Josh Birks ATTACHMENT 3 Question for Consideration 2 1. Do Councilmembers support staff's current approach to economic and social recovery? Strategic Alignment 3 Council Priorities • Equity and Inclusion • Affordable housing • Affordable childcare • Create community jobs • Small business plan Strategic Objectives NLSH 1.2 Collaborate…to address poverty issues and other identified high- priority human service needs… ECON 3.3 Engage the business community Landscape Assessment • City started from a position of strength • City must rebalance 2020 budget; 2021 budget will be impacted 4 Global • 6-8% of world’s population could be pushed into poverty (Oxfam) National / Statewide • National Unemployment 1 - Claims at 22 million ~ 18%; Colorado 2 - 232,000 Claims ~ 7% (disparate by industry) • Health disparities exacerbated – communities of color, homeless 1 U.S. Department of Labor, Initial Claims, Week ending April 11, 2020 and four preceding weeks; 2 Colorado Department of Labor and Employment, Initial Claims, Week ending April 4, 2020 and four preceding weeks What We Know: What We Don’t: • Now in recession (March forward) • CARES Act Business Support out of $ • Local service providers anticipating significant losses • Severity of decline • Shape/length of recovery • Full impact of federal aid (direct & indirect) • CARES 2.0 • Structural vs. cyclical Nonprofit Assessment Results 23 responses between April 12th and April 15th (Initial Summary in Packet) 5 Added programs in Direct Response to COVID-19 (5) Changing service delivery methods (6) Increased demand on existing services (4) Anticipate Revenue Loss (8) • Total estimated impact to existing partner nonprofits: • ~$296K additional unreimbursed or unfunded costs to date • ~$1.2M in future funding gaps (includes increased services & funding losses) Overview of Social Response • Communications and coordination • Partnership with UWLC • Connect First • Adopt a Neighbor • Larimer County Task Force • Housing • Rental assistance • CDBG Funding • RV exemptions • Homelessness • Northside Atzlan, Heritage Park • W Myrtle Site 6 • Equity • Just in Time Equity Lens • Translation of Materials • Vulnerable and Susceptible Populations Working Group Business Survey Results Workforce Impact: 155 responses between March 25th and April 13th (Detailed Summary in Packet) 7 Business Response: • Communications and Coordination • NoCoRecovers.com • Weekly Targeted Email • Support Local Campaign • Business Assistance • Consultation • Federal Program Guidance • Sales Tax Deferral • Target $2,000 per month • 60-day deferral Overview of Economic Response • Small Business Relief and Recovery Loan Fund • First $110,000 available now • Working on a County-wide program • Target underrepresented business owners 8 Federal CARES Act* COVID Response Funding Sources *Many funding sources contained within CARES Act 9 Other Sources Individuals Government (Job loss/loss of hours) Small Businesses • Federal o FEMA o FTA o FAA • State o Colorado COVID Relief Fund (Business, Nonprofit, Government) o DOLA Emergency Disaster Fund (Rent Assistance) • Private Sources • State and Local Governments o Election Assistance Commission • City Governments o Coronavirus Emergency Supplemental Funding (CESF) • Expanded unemployment benefits •Stimulus checks • Mortgage assistance • Payroll Protection Program • Economic Injury Disaster Loan Emergency Advance (EIDL) • SBA Express Bridge Loans • SBA Debt Relief Potential Direction of Federal Funds CDBG ($649K) – Propose prioritizing eligible costs not covered by other sources • City incurred sheltering & response costs • Other shelter operation costs • Emergency assistance for rent, food & utilities • Other non-profit eligible direct program & response costs FTA ($8.7M) • Fixed route operating expenses • Some or all of paratransit operating expenses • Operation and maintenance of Transfort’s fleets and facilities • Administrative leave FAA (~$17M) • Directed at terminal, hangers, and other capital improvements 10 Perspective on Recovery 11 • Unprecedented • Crisis vs. Downturn • Unlike previous recessions • Dynamic Environment • Potential Curve has Three Segments: • Decline • Recovery • Stabilization • Design Recovery in Levels (Nimble) Phases of Recovery • Tiered recovery • Tier 1 - Response • Tier 2 - Emergence • Tier 3 - Recovery • Adapt response to current needs •Step up or down as needed • Similar structure to other recovery plans 12 VS7 Slide 12 VS7 [@Clay Frickey] [@Josh Birks] Should we work in yesterday's new phrasing from the state of "Stay at Home" vs. "Safer at Home"? Victoria Shaw, 4/21/2020 Principles and Approaches to Recovery • Adaptability in the face of change and uncertainty • Community focused • Centered in equity and inclusion • Policies & infrastructure integrate and maximize economic, environmental and social benefits • Advance regeneration and resilience • Capitalize on opportunities for improvement • Remove regulatory barriers • Apply lessons learned in response • Align, collaborate, and innovate with partners 13 Principles in Action: Response • Emergency shelter at Northside • NoCo Recovers website • Adopt a Neighbor • Emergency Operations Center • Relief and Recovery Loan Fund Principles in Action: Recovery • Co-create recovery with community members • Demonstration projects with partners • Working conditions flexibility Next Steps • CDBG-CV Funding Appropriation and Resolution Proposed Timeline • May 5 & 19 – First & Second Reading of Appropriation Ordinance • (Tentative) June 2 - Resolution approving (1) Amended HUD Annual Action Plan & (2) funding recommendations (HUD required public meeting) • May 12 – Equity and Inclusion Work Session • Developing internal metrics dashboard • Continue to research promising practices • Form TBL Community Recovery Advisory Group 14 Response Roles • Building on existing partnerships in early responses • Data will continue to inform actions as we progress through recovery phases • Opportunity to advance resilience in the face of unknowns 15 Communication & Coordination Equity Housing Business Homelessness Assistance Sales Tax Deferral Small Business Relief & Recovery Loan Fund Adaptability Community Focus Resilience Question for Consideration 16 1. Do Councilmembers support staff's current approach to economic and social recovery?