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HomeMy WebLinkAbout2020-29 Cares Act Funding IGARESOLUTION NO. 29 Series of 2020 A RESOLUTION APPROVING A COLLABORATION AGREEMENT REGARDING DISBURSEMENT OF CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT FUNDS TO COUNTY AND LOCAL GOVERNMENTS BETWEEN EAGLE COUNTY AND THE TOWNS OF AVON, BASALT, EAGLE, GYPSUM, MINTURN, RED CLIFF, AND VAIL IN THE STATE OF COLORADO WHEREAS, o allocate up to $275M to Counties and Local Governments across the state from the Coronavirus Relief F COVID-19 pandemic; WHEREAS, the U.S. Congress mandated CVRF as part of the federal CARES Act under Title V. It allows local governments to receive reimbursements for necessary expenditures that were not accounted for in the most recent local government budget and that were incurred as of March 1st due to the COVID-19 public health emergency; WHEREAS, the purpose of the intergovernmental agreement, attached hereto as Exhibit A, and made a part hereof by this reference , is to provide the structure for how the parties become eligible and obtain access to funds authorized by Title V, Section 5001(d) of the CARES Act and specifically allows the County and Local Governments to request reimbursement for program payments that: 1) are necessary expenditures incurred due to the public health emergency with respect to the COVID-19 pandemic; 2) were not accounted for in the budget most recently approved as of the date of enactment [March 27, 2020] of this section for the local government; and 3) were incurred during the period that begins on March 1, 2020 and ends on December 30, 2020; WHEREAS, Section 18(2) of Article XIV of the Colorado Constitution and Sections 29-1-201, et seq. and 29-20-105 of the Colorado Revised Statutes authorize and encourage governments to cooperate by contracting with one another for their mutual benefit. NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: Section 1. The Town Council hereby approves the IGA in substantially the same form as attached hereto as Exhibit A, and in a form approved by the Town attorney, and authorizes the Town Manager to execute the IGA on behalf of the Town. Section 2. This Resolution shall take effect immediately upon its passage. INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Vail held this 16th day of June 2020. _________________________ Dave Chapin, Town Mayor ATTEST: _____________________________ Tammy Nagel, Town Clerk COLLABORATION AGREEMENT REGARDING DISBURSEMENT OF CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT FUNDS TO COUNTY AND LOCAL GOVERNMENTS is made this __ day of ___, 2020, by and between COUNTY OF EAGLE, STATE OF COLO and the TOWNS OF AVON, BASALT, EAGLE, GYPSUM, MINTURN, RED CLIFF, AND VAIL IN THE STATE OF COLORADO, together considered municipal corporations and political subdivisions of County and the Local Governments shall be referred RECITALS A. On May 29, 2020, Colorado Department of in an effort to reduce the financial impact of the COVID-19 pandemic. B. The U.S. Congress mandated CVRF as part of the federal CARES Act under Title V. It allows local governments to receive reimbursements for necessary expenditures that were not accounted for in the most recent local government budget and that were incurred as of March 1st due to the COVID- 19 public health emergency. C. The purpose of this Agreement is to provide the structure for how the Parties become eligible and obtain access to funds authorized by Title V, Section 5001(d) of the CARES Act and specifically allows the County and Local Governments to request reimbursement for program payments that: 1) are necessary expenditures incurred due to the public health emergency with respect to the COVID-19 pandemic; 2) were not accounted for in the budget most recently approved as of the date of enactment [March 27, 2020] of this section for the local government; and 3) were incurred during the period that begins on March 1, 2020 and ends on December 30, 2020. Eligible expenditure guidance is provided by the U.S. Treasury (attached as Exhibit A). D. Section 18(2) of Article XIV of the Colorado Constitution and Sections 29-1-201, et seq. and 29-20-105 of the Colorado Revised Statutes authorize and encourage governments to cooperate by contracting with one another for their mutual benefit. E. The COVID-19 pandemic has created a myriad of economic distress and unanticipated costs to individuals and families, to businesses, and to the state and local governments addressing the F. Pursuant to the terms of this Agreement, the Parties wish to be reimbursed individually for COVID-19 pandemic related costs incurred by the Parties. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the Parties agree as follows: I. FUNDING ALLOCATION FORMULA. CARES Act funds are allocated based on the percentage of the population in a given state that resides in the jurisdiction requesting funding from the federal government. The County is allocating CARES Act funds based on the percentage of the County population residing in its cities and towns, as well as in the unincorporated portions of the County. Population numbers are determined from the most recent published numbers (2018) from the State Demography Office within the Department of Local spreadsheet attached as Exhibit B, and incorporated herein, shows the amount of CARES Act funds available to the County and each Local Government pursuant to these population numbers. II. PROCESS TO OPT-IN. The Parties that desire to participate shall complete a one-time opt- Grant Portal no later than July 7th, 2020. This form requires affirmations of spending, reporting, monitoring, and certain federal requirements of County and Local Government participants for the Coronavirus Relief Funds. III. REIMBURSEMENT ELIGIBILITY AND ACCOUNTING. The County and Local Governments will separately apply for the funds allocated to them as set forth in Exhibit B. The Parties understand they will need to follow all reimbursement requirements as established by DOLA for those eligible CARES Act reimbursement funds for COVID-19 pandemic related costs as further set forth in guidance provided by the U.S. Treasury, attached as Exhibit A. Generally, CVFR payments may be used for program payments that: 1) Are necessary expenditures incurred due to the public health emergency with respect to COVID-19; 2) Were not accounted for in the budget most recently approved as of the date of enactment [March 27, 2020] of this section for the local government; and 3) Were incurred during the period that begins on March 1, 2020 and ends on December 30, 2020. Nothing in this Agreement is a guarantee that reimbursement applications will be granted. IV. RETURN OF UNSPENT DOLLARS TO COUNTY. To ensure that the maximum amount of CVRF dollars are expended for the benefit of Eagle County residents and businesses by the deadline of December 30, 2020, Towns agree to report to the County the total amount of funding requests they have submitted to DOLA by September 1, 2020. If Towns have not already requested from DOLA or submitted a plan to the County to showing they will utilize their entire allocation by the deadline, they will forfeit unspent dollars to the County who will utilize the remaining allocation for other eligible expenditures. //REMAINDER OF PAGE INTENTIONALLY LEFT BLANK// IN WITNESS WHEREOF, the Parties hereto have caused this instrument to be executed by properly authorized signatories as of the date and year first above written. Eagle County Attest: ______________________________________ _______________________ Kathy Chandler-Henry, Chair Town of Avon Attest: _____________________________________ _______________________ Sarah Smith Hymes, Mayor Town of Basalt Attest: _____________________________________ _______________________ Bill Kane, Mayor Town of Eagle Attest: ____________________________________________ _______________________ Scott Turnipseed, Mayor Town of Gypsum Attest: _____________________________________ _______________________ Steve Carver, Mayor Town of Minturn Attest: _____________________________________ _______________________ John Widerman, Mayor Town of Red Cliff Attest: _____________________________________ ______________________ Duke Gerber, Mayor Town of Vail Attest: ____________________________________ ______________________ Dave Chapin, Mayor Exhibit A: U. S. Treasury Coronavirus Relief Fund Guidance for State, Territorial, Local and tribal Governments, April 22, 2020 Coronavirus Relief Fund Guidance for State, Territorial, Local, and Tribal Governments April 22, 2020 The purpose of this document is to provide guidance to recipients of the funding available under section 601(a) of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The CARES Act established the Coronavirus Relief Fund (the “Fund”) and appropriated $150 billion to the Fund. Under the CARES Act, the Fund is to be used to make payments for specified uses to States and certain local governments; the District of Columbia and U.S. Territories (consisting of the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands); and Tribal governments. The CARES Act provides that payments from the Fund may only be used to cover costs that— 1. are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID–19); 2. were not accounted for in the budget most recently approved as of March 27, 2020 (the date of enactment of the CARES Act) for the State or government; and 3. were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020.1 The guidance that follows sets forth the Department of the Treasury’s interpretation of these limitations on the permissible use of Fund payments. Necessary expenditures incurred due to the public health emergency The requirement that expenditures be incurred “due to” the public health emergency means that expenditures must be used for actions taken to respond to the public health emergency. These may include expenditures incurred to allow the State, territorial, local, or Tribal government to respond directly to the emergency, such as by addressing medical or public health needs, as well as expenditures incurred to respond to second-order effects of the emergency, such as by providing economic support to those suffering from employment or business interruptions due to COVID-19-related business closures. Funds may not be used to fill shortfalls in government revenue to cover expenditures that would not otherwise qualify under the statute. Although a broad range of uses is allowed, revenue replacement is not a permissible use of Fund payments. The statute also specifies that expenditures using Fund payments must be “necessary.” The Department of the Treasury understands this term broadly to mean that the expenditure is reasonably necessary for its intended use in the reasonable judgment of the government officials responsible for spending Fund payments. Costs not accounted for in the budget most recently approved as of March 27, 2020 The CARES Act also requires that payments be used only to cover costs that were not accounted for in the budget most recently approved as of March 27, 2020. A cost meets this requirement if either (a) the cost cannot lawfully be funded using a line item, allotment, or allocation within that budget or (b) the cost 1 See Section 601(d) of the Social Security Act, as added by section 5001 of the CARES Act. 1 is for a substantially different use from any expected use of funds in such a line item, allotment, or allocation. The “most recently approved” budget refers to the enacted budget for the relevant fiscal period for the particular government, without taking into account subsequent supplemental appropriations enacted or other budgetary adjustments made by that government in response to the COVID-19 public health emergency. A cost is not considered to have been accounted for in a budget merely because it could be met using a budgetary stabilization fund, rainy day fund, or similar reserve account. Costs incurred during the period that begins on March 1, 2020, and ends on December 30, 2020 A cost is “incurred” when the responsible unit of government has expended funds to cover the cost. Nonexclusive examples of eligible expenditures Eligible expenditures include, but are not limited to, payment for: 1. Medical expenses such as: COVID-19-related expenses of public hospitals, clinics, and similar facilities. Expenses of establishing temporary public medical facilities and other measures to increase COVID-19 treatment capacity, including related construction costs. Costs of providing COVID-19 testing, including serological testing. Emergency medical response expenses, including emergency medical transportation, related to COVID-19. Expenses for establishing and operating public telemedicine capabilities for COVID-19- related treatment. 2. Public health expenses such as: Expenses for communication and enforcement by State, territorial, local, and Tribal governments of public health orders related to COVID-19. Expenses for acquisition and distribution of medical and protective supplies, including sanitizing products and personal protective equipment, for medical personnel, police officers, social workers, child protection services, and child welfare officers, direct service providers for older adults and individuals with disabilities in community settings, and other public health or safety workers in connection with the COVID-19 public health emergency. Expenses for disinfection of public areas and other facilities, e.g., nursing homes, in response to the COVID-19 public health emergency. Expenses for technical assistance to local authorities or other entities on mitigation of COVID-19-related threats to public health and safety. Expenses for public safety measures undertaken in response to COVID-19. Expenses for quarantining individuals. 3. Payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID- 19 public health emergency. 2 4. Expenses of actions to facilitate compliance with COVID-19-related public health measures, such as: Expenses for food delivery to residents, including, for example, senior citizens and other vulnerable populations, to enable compliance with COVID-19 public health precautions. Expenses to facilitate distance learning, including technological improvements, in connection with school closings to enable compliance with COVID-19 precautions. Expenses to improve telework capabilities for public employees to enable compliance with COVID-19 public health precautions. Expenses of providing paid sick and paid family and medical leave to public employees to enable compliance with COVID-19 public health precautions. COVID-19-related expenses of maintaining state prisons and county jails, including as relates to sanitation and improvement of social distancing measures, to enable compliance with COVID-19 public health precautions. Expenses for care for homeless populations provided to mitigate COVID-19 effects and enable compliance with COVID-19 public health precautions. 5. Expenses associated with the provision of economic support in connection with the COVID-19 public health emergency, such as: Expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures. Expenditures related to a State, territorial, local, or Tribal government payroll support program. Unemployment insurance costs related to the COVID-19 public health emergency if such costs will not be reimbursed by the federal government pursuant to the CARES Act or otherwise. 6. Any other COVID-19-related expenses reasonably necessary to the function of government that satisfy the Fund’s eligibility criteria. Nonexclusive examples of ineligible expenditures 2 The following is a list of examples of costs that would not be eligible expenditures of payments from the Fund. 1. Expenses for the State share of Medicaid. 3 2. Damages covered by insurance. 3. Payroll or benefits expenses for employees whose work duties are not substantially dedicated to mitigating or responding to the COVID-19 public health emergency. 2 In addition, pursuant to section 5001(b) of the CARES Act, payments from the Fund may not be expended for an elective abortion or on research in which a human embryo is destroyed, discarded, or knowingly subjected to risk of injury or death. The prohibition on payment for abortions does not apply to an abortion if the pregnancy is the result of an act of rape or incest; or in the case where a woman suffers from a physical disorder, physical injury, or physical illness, including a life-endangering physical condition caused by or arising from the pregnancy itself, that would, as certified by a physician, place the woman in danger of death unless an abortion is performed. Furthermore, no government which receives payments from the Fund may discriminate against a health care entity on the basis that the entity does not provide, pay for, provide coverage of, or refer for abortions. 3 See 42 C.F.R. § 433.51 and 45 C.F.R. § 75.306. 3 4. Expenses that have been or will be reimbursed under any federal program, such as the reimbursement by the federal government pursuant to the CARES Act of contributions by States to State unemployment funds. 5. Reimbursement to donors for donated items or services. 6. Workforce bonuses other than hazard pay or overtime. 7. Severance pay. 8. Legal settlements. 4 Exhibit B: Funding Allocation DRAFT Total Allocation to Eagle County $4,699,577 EC Population (2018 ACS) 54,863 $85.66 per person Amount to Eagle County 55% $2,584,767 Avon 6,518 $251,250 Basalt 3,178 $122,503 Eagle 6,924 $266,900 Gypsum 7,356 $283,552 Minturn 1,060 $40,860 Red Cliff 286 $11,024 Vail 5,455 $210,274 Unincorporated EC 24,086 $928,445 $2,114,808 45% to local govs