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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/28/2020 - EMERGENCY ORDINANCE NO. 094, 2020, APPROPRIATING UAgenda Item 1 Item # 1 Page 1 AGENDA ITEM SUMMARY July 28, 2020 City Council STAFF SeonAh Kendall, Economic Health Manager Blaine Dunn, Senior Treasury Analyst Ryan Malarky, Legal SUBJECT Emergency Ordinance No. 094, 2020, Appropriating Unanticipated Revenue in the General Fund from the Coronavirus Relief Fund (CVRF), CARES Act, Title V. EXECUTIVE SUMMARY The purpose of this item is to appropriate the City Coronavirus Relief Fund (CVRF) allocation in an emergency ordinance due to the immediate exigency in addressing COVID-19. The City has incurred significant expenditures in its response to the COVID-19 public health emergency and anticipates further costs as COVID- 19 continues to have health, social and economic consequences. Any remaining CVRF funds will be utilized to address social and economic recovery in our community. Emergency ordinances are authorized under the Charter in emergency circumstances and require the affirmative vote of at least five (5) members of the Council for passage. STAFF RECOMMENDATION Staff recommends adoption of the Emergency Ordinance. BACKGROUND / DISCUSSION On May 18, 2020, Governor Polis signed  Executive Order D2020 070,  Directing the Expenditure of Federal Funds Pursuant to the Coronavirus Aid, Relief, and Economic Security  (CARES) Act, to establish the Coronavirus Relief Fund (CVRF). Through the Colorado Department of Local Affairs (DOLA), this fund will reimburse costs to counties, municipalities and special districts  that: 1. Are necessary expenditures incurred due to the COVID-19 emergency; 2. Are not accounted for in the local government’s budget most recently approved as of March 27, 2020 (the date of enactment of the CARES Act);* and 3. Were incurred during the period that begins on  March 1, 2020 and  ends on December 30, 2020. *The one exception is payroll expense for staff such as public safety, human services and similar employees whose service were substantially dedicated to mitigating or responding to the COVID-19 public health emergency. Intent The City has incurred, and expects to continue to incur, increased expenditures due to its COVID-19  emergency response.  The requirement that expenditures be incurred “due to” the public health emergency means expenditures must be used for actions taken to respond to the public health emergency.  Costs incurred by the City from March 1, 2020 - December 30, 2020 are reimbursable, as long as those items were not budgeted  as AMENDED 7/28/20 Agenda Item 1 Item # 1 Page 2 of March 27, 2020. The CARES CVRF does not allow for municipality revenue backfill/replacement,  including the direct replacement of unpaid utility fees or tax obligations. The City’s $9,015,692 CARES CVRF allocation is one component of the City’s overall recovery goals. Moreover, CVRF is to be deployed for the health and safety of our community and region, while advancing the City’s strategic plan. Eligible expenditures are in service for the overall community recovery. Per the Intergovernmental Agreement (IGA) with Larimer County and surrounding communities (Resolution 2020-059), the City is committed to conferring in September 2020 to share information on the progress and utilization of funds and to consider adjustments to the allocation in the event the parties do not reasonably expect to utilize all of the allocated funds. Eligible Expenditures Direct City-incurred expenditures to address the public health emergency. These costs advance community safety and recovery:  Payroll expenses for public safety,  human services and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency.  Expenses for communication of the public health orders.  Expenses for medical and protective supplies, including sanitizing products and personal protective equipment.  Expenses to improve telework capabilities for public employees to enable compliance  with COVID-19 public health precautions.  Expenses for providing paid sick and paid family and medical leave to public employees.  Expenses related to supporting regional health initiatives, such as increased testing support through regional partners.  Expenses to facilitate compliance with COVID-19-related public health measures  for our residents and social recovery include: o Rental or mortgage assistance to avoid eviction or foreclosure. o Utility payment assistance to  continue to receive essential services. o Food delivery to residents, including, for example, senior citizens and other vulnerable  population. o Facilitation of distance learning  and remote working, including technological improvements. o Emergency sheltering  for  people experiencing  homelessness  to mitigate COVID-19  effects and enable social distancing  compliance.  Expenses associated with the provision of economic recovery in support of our business  community comprises: o Provision of grants to small businesses with the costs of business interruption caused by required closures. o Reimbursement of the Fort Collins Main Street Loan Program loan-loss reserve. o Expenses incurred to publicize the resumption of tourism activities and steps taken to ensure a safe experience. Sector Direct  City  Response Residents Businesses Proposed Distribution 28% 42% 30% Expended $558,000 $233,000 $165,000 Available Funds $2,010,000 $3,510,000 $2,539,000 Total $2,567,692 $3,743,000 $2,705,000 AMENDED 7/28/20 Agenda Item 1 Item # 1 Page 3 Process for Social and Economic Recovery Grants As subrecipients of the City’s CVRF, eligible organizations and entities will need to apply for awards and meet the same eligibility and intent as defined by the US Treasury for the CARES CVRF. Staff is currently developing Frequently Asked Questions (FAQs) and grant criteria. The Recovery Policy Group will prioritize and provide direction and oversight of the grants, and report monthly to Council on grantees and awards. CITY FINANCIAL IMPACTS The City’s general fund is eligible for an estimated $1 million in reimbursements related to costs incurred to date to address the COVID-19 public health emergency. These expenditures include payroll for public employees such as:  Redeployment of City staff whose duties were “substantially different” from their ordinary responsibilities.  Public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the public health emergency; and  Emergency Family and Medical Leave (EFML) and Emergency Paid Sick Leave (PSL) to enable compliance with COVID-19 public health precautions.  Safety, sanitation products and personal protective equipment.  Communication and website development of nocorecovers.com and forfortcollins.com to support residents and businesses with one-stop-shop resources. The remainder of the CVRF funds will be used as described above, including the reimbursement of expenses the City has not yet incurred. Based on the guidance, the funds cannot be used for revenue backfill and will therefore be used for new expenses incurred due to COVID-19. ATTACHMENTS 1. CARES Funding IGA with Larimer County (PDF) 2. CARES Allocation Research (PDF) 3. CARES Data Information (PDF) 4. Powerpoint Presentation (PDF) AMENDED 7/28/20 ATTACHMENT 1 CARES Comparison – Counties CARES Breakdown Compliance Requirements for Cities Projects/Programs Adams County • Received $90M • 55% County • 45% City – disbursed by population • County also kept Unincorporated Adams County allotment of the 45% • Total County $ = $57.4M or 63.6% of CARES allotment • Cities sign an IGA, taking responsibility that all charges meet the guidelines • Money given in 3 installments • Monthly report submitted to County with vendor, date, amount, and description/justification information • ~$16M – temporary allocation to small business, non-profit, health dept., emergency services, and mini grant program. • Internal technology enhancements, software licensing, computers, etc. • Hazard stipends for front line workers • Building modifications Jefferson County • Received $101.7M • 55% County • 45% City – disbursed by population • County also kept Unincorporated Jefferson County allotment of the 45% • Total County $ = $72M or 71% of CARES allotment • All receipts are uploaded to a folder in SharePoint • Cities are required to enter info to a summary spreadsheet: date of transaction, payee, type of expense, description of how it is COVID related and verification the expense was not budgeted for this year • Receive 50% of allocation. Need to spend the first half and submit a spending plan in order to receive second half • Grant Programs • Non-profits: $2.5M • Business: $5M • Bulk Food Purchasing: $900K • PPE purchases for health providers and JeffCo departments • Other Arapahoe County • Received $114.55M • 55% County • 45% City – disbursed by population • County also kept Unincorporated Arapahoe County allotment of the 45% • Can exercise refusal power for any request for reimbursement • Cities submit program expense for reimbursement on a monthly basis. • Pre-approval process for programs to make sure CARES Comparison – Cities CARES $ Allocated – County Compliance/Requirements Projects/Programs Other Projects & Future Ideas City of Arvada CARES $ Allocated $9.4M – Jefferson (~$9.2M), Adams (~$2.4K) • $2.5M – Small business loans/grants • $2M - Business incentive program • $175K – Olde Town/BID support • $622K – Biz PPE/Safety • $420K Chamber/Visitor Center programs • ~$1M – Non-profit support • $725K – renter and mortgage relief • $31K – Shelter • $50K – Navigator support • $250K – Homeless family support • $556K – City PPE, safety, cleaning • $360K – City technology • $108K – Unemployment, sick, EFMLA • $590K – Unallocated Future Ideas • City Wi-Fi in Olde Town (~$5K) • Utility Relief Program (~$50K) • Homeless Family COVID-19 Relief Program (~$250K) • Arts & Culture Relief • Direct loss of income grants (~$500K) • Direct commissions (~$100K) • New CRM tool ($100K) City of Aurora CARES $ Allocated $34M – Arapahoe (~$30M), Adams (~$4M) • $5M – Small business grants • $1M – Non-profit grants/support • Internal expenses: telework funding, PPE, emergency services Future Ideas: • Hazard pay • FEMLA • Public safety/health payroll • CU partnerships • Food distribution City of Wheat Ridge CARES $ Allocated $2.46M – Jefferson County • $500K - Business Stability Grant • $55K - Business assistance • $250K - Remote Work Tech. • $25K - Tech to support remote meetings/hybrid Council • $50K - PPE • $50K - Sanitation (vehicle/facility) • $20K - Facility modifications • $75K - Unemployment Insurance • $13K - FFCRA mandated employee leave • ~ $700K - Employees work diverted due to COVID - (through May) Other Projects • 12,000 masks provided to local businesses • Business Support Program – helps businesses reopen using expanded temporary space (alleys/patios). Businesses can submit for City of Westminster CARES $ Allocated $8.98M – Adams ($5.5M), Jefferson ($3.47M) • $550K – Hazard pay for first responders (3/17- 5/31) • $4M – Economic recovery (business grants and other support) • $728K – Social recovery (programs that rebuild community connections and promote wellness • $750K – People and Programs Serving People (help partners supply housing and food security) • $3.5M – Local Government Recovery (help City employees and visitors respond to changing work environments) Other Projects: • Restaurant program – believe will have a significant ROI on creating and retaining jobs and aiding sales tax revenue • Considering: workers compensation, unemployment, FFCRA, technology expenses, Future Ideas: • Collaboration with County on food security and housing/rent payment assistance • Mobile testing and vaccination City/County of Denver CARES $ Allocated $126.8M Phase 1 Emergency Support (May 19th) • $4M - Rent and utility assistance • $1M - Mortgage assistance • $1.5M - Programs and rehousing strategies • $2M – Food assistance (including Denver Public Schools) • $2.2M – Non-profit support grants • $4.3M – Small business grants • $5M – Public health programs Future Ideas: • Temporary Rental and Utility Assistance • Mortgage assistance programs • Rehousing Follow up: Supporting Needs Data Request from Council Finance July 20, 2020 On July 20, 2020, staff presented to Council Finance Committee where there was a request for needs assessment. Business McKinsey’s analysis of several surveys of small businesses suggest that 25 – 36 percent could close permanently because of the disruption from just the four months of the COVID‐19 pandemic. Research has found that minority‐owned businesses own a quarter of small businesses in the most affected sectors such as restaurant/hospitality, retail and construction.* 1. Number of businesses with between 2 and 20 employees: 2,858 Fort Collins businesses 2. Number of businesses that received PPP loans or EIDL loans within Fort Collins: 4,027 ‐ 483 received greater than $150K and 3,544 less than $150K 3. Number of businesses that fit the Disadvantage Business Enterprises (DBEs): Sum of Number of employer firms Meaning of Race code Total White 8403 Asian 283 American Indian and Alaska Native 60 Black or African American 28 Native Hawaiian and Other Pacific Islander 0 Grand Total 8774 Sum of Number of employer firms Meaning of Ethnicity code Total Non-Hispanic 8430 Hispanic 249 Grand Total 8679 Sum of Number of employer firms Meaning of Sex code Total Equally male/female 1423 Female 2098 Male 5230 Grand Total 8751 ATTACHMENT 3 4. Number of businesses that need rent/mortgage assistance: COVID Regional Survey– Survey #2 (report issued May 29, 2020) Rent/Mortgage Relief 26 businesses (38%) requested changes to their rent/mortgage payment. Residential  Rental assistance – Neighbor to Neighbor has shared they anticipate serving 140 households per month through the end of the year (this is an increase from the 90 households/month they’ve served throughout the pandemic to date). Economic impacts of COVID‐19 created a 300%‐470% increase in demand for rental assistance – prior to COVID – approximately 30 households were served per month  Homelessness – NACC served approximately 250 persons experiencing homelessness daily and 90 nightly. Pre‐COVID, the January 2020 point‐in‐time count was 260, which included all shelters, indicating the overall need has increased.  Childcare ‐ Prior to the COVID‐19 pandemic, the Early Childhood Council estimated that over 7,000 children under age six in Larimer County did not have access to licensed childcare while their parents are at work. This extreme shortage of childcare options for working families has been further compounded with classroom ratio reductions, childcare staff retention losses, and significant revenue decreases for licensed providers.  Food insecurity – The Food Bank of Larimer County (FBLC) served 3,945 registered clients in June (this number does not include the over 1,000 clients registered as anonymous, clients served at pop‐up pantries, or clients served at partner agencies. o Feeding America’s Map the Meal Gap 2020 study for Larimer County has projected that food insecurity could increase from the original estimate of 32,280 county residents to 50,160 people due to COVID‐19. o FBLC distributed 10.5 million pounds of food this last fiscal year – more than we ever have. o We are serving 750 individuals per day at our drive‐through Food Share locations. o Next month, we are adding 2 pop‐up mobile pantries in locations with high racial disparity in our community to continue to meet the need. o Our Nourishing Network partners have increased the amount of food they are getting from us by 100% over last year since COVID started. o In a recent client survey, 18.5% responded that they are “very worried” about being able to provide food for their family in the next two months; when the time frame in that question was extended to this fall/winter, those who reported being “very worried” increased to 28.7%. The other options were “very confident” (17.6%) and “somewhat confident” (53.7%) for the fall/winter timeframe. *Dua, A. (June 18, 2020). Which Small Businesses are Most Vulnerable to COVID‐19 – and When. McKinsey & Company. https://www.mckinsey.com/featured‐insights/americas/which‐small‐businesses‐are‐most‐ vulnerable‐to‐covid‐19‐and‐when 07.28.2020 CARES CVRF Blaine Dunn & SeonAh Kendall ATTACHMENT 4 Build Resilience for the New Normal 2 3 Recovery Implementation Project Communication Policy Group Weekly Meeting Provide direction and oversight Core Team Bimonthly Meeting Create and execute action plans Stakeholders Internal & External Quarterly Meeting Cascade communication and align work plans to City Recovery Plan Council Periodic Updates Approve direction and provide input Guidance from US Treasury 4 01 Expenses must be necessary due to the Public Health Emergency • Direct Response • Second-Order Effects 02 May not be used to offset lost tax revenue or have been budgeted as of March 27, 2020* 03 Funds unspent as of December 30, 2020 must be returned Coronavirus Aid, Relief, and Economic Security (CARES) Act, Strategy, Planning & Analysis, April 2020 CARES CVRF Guiding Principles City of Fort Collins CARES CVRF ($9,015,692) is only one component of the City’s overall recovery goals • Response to COVID – safety, impacts, etc. • Benefit our community and region • Advance City’s strategic plan 5 Eligibility 6 City Direct Response • Personal Protective Equipment (PPE) • Emergency Operations Center (EOC) • Safety, Sanitation and Cleaning • Payroll for public safety, public health and those that are substantially dedicated to responding to COVID-19 Residential • Rental Assistance • Homelessness • Childcare • Food Security • Digital access Business • Rental Assistance • Small Business Loans • Wrap-around Services for Disadvantage Business Enterprises (DBEs) CARES CVRF Oversight 7 Direct City Response for COVID Residential Support for COVID Business Support for COVID Total: $2,568,000 or 28% Examples: Community recovery includes reimbursing City expenses such as supplies, personal protective equipment, personnel costs and improve telework capabilities during emergency COVID crisis. Process: • Funds expended to address the public health related to COVID19 from March – June 2020 are eligible for reimbursement • Department Project Managers use standardized request and tracking process Total: $3,743,000 or 42% Examples: Social recovery including rental assistance, utility payment assistance, food security and childcare assistance and physical distancing in congregate and non-congregate shelters for homeless. Process: • FAQs & grant criteria established • Application process for requests through fcgov.com website • Reimbursement selection committee will be assigned (monthly reporting to ELT and Council) • Recipient reimbursement and audit process Total: $2,705,000 or 30% Examples: Economic recovery including small business grants for rental assistance, payroll, etc. Area of interest is in disadvantaged business enterprises (DBEs) such as women-, minority- and veteran-owned businesses. Process: FAQs & grant criteria established • Application process for requests through fcgov.com website • Reimbursement selection committee will be assigned (monthly reporting to ELT and Council) • Recipient reimbursement and audit process Milestones 8 July August September October November December July 22 ELT Review **Secondary Project identification, scope, budget and timeline developed simultaneous to primary Dec 30 Last Eligible Day for Reimbursable Costs July 23 CVRF Project Managers Team Mtg Aug 3 Draft PM Scope of Work & Timelines Aug 14 Detail Plan & Budgets DUE from PMs Aug 31 Final Submittals from PMs Sept 16 ELT Review Project Submittals Dec 18 All Expenditures Executed July 20 Council Finance Committee July 28 City Council Sept 22 City Council Work Session Sept 2020 County Submittal/ Redistribution Meeting • • • • • • • • • Bimonthly Internal PM On-Track Meetings Nov 3 City Council Staff Update Decision 9 Dates Action Needed July 28, 2020 After Council approves general framework & proposed allocations, then staff can begin purchasing process** Aug 5, 2020 Recovery Policy Team reviews feasibility of submitted project September 2020 Cities and County meet to identify available funds and redistribute, if needed September 22, 2020 City Council Work Session Oct 30, 2020 Recovery Policy Team review of ongoing projects and redistribute if projects are not at anticipated levels Nov 3, 2020 Staff update to City Council **Council will be asked to set general guidance on categories and desired priorities; updates will be provided to Council monthly Staff Recommendation Staff recommends adoption of the ordinance XXX to appropriate the Coronavirus Relief Fund (CVRF), CARES Act, Title V. 10 Project Ideas: by Strategic Outcome 11 Neighborhood Livability and Social Health Personnel Rapid Rehousing Volunteer Program Food Security North Atzlan Community Center Childcare and Daycare Assistance Rental and Mortgage Assistance Translation and Cultural Outreach and Engagement Digital Access Feasibility Study Community Website for Nonprofit Resources Congregate Shelter Digital Access for Manufactured Home Communities Utility Payment Support Childhood Council Non-congregate Shelter Air Quality Project Ideas: By Strategic Outcome 12 Economic Health Safe Community Personnel Personnel Regional Education/Communication Campaign Safety and Sanitation Supplies Revolving Loan Fund Reimbursement Emergency Operations Center Reopen Campaign – nocorecovers.com PFA – FEMA Match Support Local Campaign – forfortcollins.com Office Configuration Marketing Safe Tourism Downtown Development Authority Marketing Project Ideas: By Strategic Outcome 13 High Performing Government Other Personnel Contingency Hybrid IT Office Setup Recreation Safety & Technology EMERGENCY ORDINANCE NO. 094, 2020 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE IN THE GENERAL FUND FROM THE CORONAVIRUS RELIEF FUND (CVRF), CARES ACT, TITLE V 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, on March 27, 2020, the federal Coronavirus Aid, Relief, and Economic Security Act, (“CARES Act”) was signed into law, making over $330 billion in economic assistance available to state and local governments; and WHEREAS, on May 18, 2020, Governor Polis signed  Executive Order D2020 070,  directing the expenditure of federal funds pursuant to the CARES Act, to establish the Coronavirus Relief Fund (“CVRF”); and WHEREAS, the CVRF is intended to reimburse costs to counties, municipalities and special districts in Colorado that are necessary expenditures incurred due to the COVID emergency; are not accounted for in the local government’s most recent budget; and were are incurred between March 1, 2020 and December 30, 2020; and WHEREAS, the City’s CARES CVRF allocation of $9,015,692 is one component of the City’s overall recovery goals; and WHEREAS, the CARES CVRF funds will be used to provide economic assistance to the business community; to, through a grant process, assist local residents with social recovery and in complying with public health measures; and for direct City-incurred costs to address the public health emergency and in support of regional health initiatives, such as increased testing support through regional partners; and WHEREAS, this emergency ordinance is meant to further the City's emergency response related to COVID-19 consistent with the Governor’s May 18 Order by appropriating funds for quick deployment for the health and safety of our community and region, while advancing the City’s strategic plan ; and WHEREAS, this appropriation benefits public health, safety and welfare of the citizens of Fort Collins and serves the public purpose of assisting in the overall community recovery from the COVID-19 pandemic; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon recommendation of the City Manager, 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 this fiscal year; and WHEREAS, Article II, Section 6 of the City Charter authorizes the Council to adopt emergency ordinances, which shall be finally passed on the first reading by the affirmative vote of at least five members of the Council and which shall contain the specific statement of the nature of the emergency. 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 from unanticipated revenue in the General Fund the sum of NINE MILLION FIFTEEN THOUSAND SIX HUNDRED NINETY-TWO DOLLARS ($9,015,692) for expenditure in the General Fund for the reimbursements related to costs incurred to datealready incurred and costs that will be incurred to address the COVID-19 public health emergency. Section 3. That the City Clerk is hereby directed to cause the publication of this Emergency Ordinance in accordance with the Fort Collins City Charter. Introduced, considered favorably by at least five (5) members of the Council of the City of Fort Collins and finally passed as an emergency ordinance and ordered published this 28th day of July, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk reimbursement or purchase rental tents, chairs, menus, etc. Future Ideas • Remodeling small lobby in City Hall to create a one stop customer service desk to keep the public out of employee areas (~$250K) county funds will be available/eligible before they are rolled out El Paso County • Received $125.7M • 55% County • 45% City – disbursed by population • County also kept Unincorporated Adams County allotment of the 45% • Total County $ = $84.4M or 67% of CARES allotment • Cities must submit detailed listings of expenditures monthly. Reports to be posted on the El Paso County website. • CARES allocation throughout County departments. See link. Douglas County *June 8th proposal • Received $30M • 20% taken from the total for contact tracing Remaining amount divided: • 25% set aside for County services • 75% disbursed between County and cities – formula accounts for service provided, population, FTE, and assessed value. See link. • Total County $ = $22.11M or 73.4% of CARES allotment ATTACHMENT 2