HomeMy WebLinkAboutAgenda - Read Before Packet - 7/28/2020 - Agenda Item Summary - July 28, 2020 Adjourned Meeting Agenda Item 1 - Emergency Ordinance No. 094, 2020 Appropriating Unanticipated Revenue In The General Fund From The Coronavirus Relief Fund -Cvrf- Agenda Item 1
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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
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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
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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