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HomeMy WebLinkAboutCARES Act Availabilityma S �T" HOME or PELICAN 1S1ANo CITY COUNCIL AGENDA TRANSMITTAL Council Meetinq Date: July 22, 2020 Aqenda Item Title: CARES Act Grant in the amount of $924,322.00 Recommendation: Approve Sub -Grant Agreement between the City of Sebastian and Indian River County for CARES Act funding and authorize the City Manager to complete and sign the necessary documents. B� JSplourd: The State of Florida has begun distribution of the Coronavirus Air Reef and Economic Security Act (CARES Act) to Counties under 500,000 in population. Indian River County has received the first 25% of the funding that must be distributed by September, 2020. The County and all of the Municipalities have been working on the distribution of these funds and as such, the City of Sebastian is eligible for $924,322.00 of funding. These funds can be used to cover the Cities' expense incurred by the COVID-19 pandemic. Additionally we can provide grants to businesses as a grant to offset economic cost suffered by the loss of business (please see attached guidelines). If Aqenda Item Requires Exoenditure of Funds: Sub -Grant Agreement to the City $924,322.00 Administrative Services Department R uiew City Attorney Review:. f4f /J Attachments: 1. Sebastian CARES Act Funding Request 2. Sub -Grant Agreement to the City $924,322.00 3. Guidelines 4. Indian River County Staff Report City Manager Authorization: Date: Digitally signed by Paul Paul E.Carlisle E.Carlle Date: 220.07.16 15:47:45 -04'00' BOARD OF COUNTY COMMISSIONERS July 16, 2020 Paul Carlisle City Manager, City of Sebastian 1225 Main St. Sebastian, FL 32958 RE: CARES Act Funding Request Mr. Carlisle, On July 14, 2020, the Indian River County Board of County Commissioners approved the attached Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") local spending plan and funding agreement. The initial allocation to Indian River County is $6.9M; out of that amount, the City of Sebastian would receive 13.2494%, which equals $924,322, upon initial distribution. I am reaching out to you today to request the City of Sebastian's spending plan. This plan must meet particular guidelines. I have included those guidelines for your reference, as well as the subgrant agreement which will also be required as part of the request package. As you know these funds have a short turnaround time. Your quick response during this time is greatly appreciated. Please submit your proposed spending plan to me no later than July 28, 2020. This plan will serve as the template for the scope of services for the attached subgrant agreement. If you have any questions, please contact me at 226-1408 Respectfully, d Jason Brown County Administrator Attached: Memorandum: CARES Act Proposed Spending Plan and Funding Agreement (approved July 14, 2020) Guidance for Authorized Expenses Subrecipient Agreement OFFICE OF THE COUNTY ADMINISTRATOR INDIAN RIPER COUNTY 1801 27t° Street, Vero Beach, Fl. 32960-3388 PHONE: 772-226-1408 INDIAN RIVER COUNTY CARES ACT FUNDING AGREEMENT THIS AGREEMENT is entered into by Indian River County, a political subdivision of the State of Florida, whose address is 1801 27'h Street, Vero Beach, Florida, 32960 (hereinafter referred to as the "Recipient"), and . a municipality/not-for-profit, whose address is (hereinafter referred to as the "Subrecipient"). This agreement is entered into based on the following representations: A. The Subrecipient represents that it is fully qualified and eligible to receive this funding for the purposes identified herein; and B. The Recipient has received these funds from the State of Florida, who received those funds from the U.S. Department of Treasury and has the authority to distribute these funds to the Subrecipient upon the terms and conditions below; and C. The CARES Act, section 601(d) of the Social Security Act, created the Coronavirus Relief Fund (CRF) and provided Florida with $8,328,221,072; 55% of which was allocated to the State of Florida and 45% was allocated to counties. D. The United States Department of the Treasury disbursed $2,472,413,692 of these funds directly to counties with a population in excess of 500,000. E. A remaining balance of $1,275,285,790 was reverted to the State of Florida from the local government allocation, for the State to disburse to counties with populations less than500,000. F. Per the Recipient's agreement with the State of Florida, counties should provide funding to municipalities within their jurisdiction upon request for eligible expenditures under the CARES Act, however, counties are responsible for the repayment of funds for expenditures that the Federal government determines are ineligible under the CARES Act. Therefore, the Recipient and the Subrecipient agree to the following: (1) LAWS. RULES. REGULATIONS. AND POLICIES a. Performance under this Agreement is subject to 2 C.F.R Part 200, entitled "Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards." b. As required by section 215.971(1), Florida Statutes, this Agreement includes: i. A provision specifying a scope of work that clearly establishes the tasks that the Recipient is required to perform, Attachment A. ii. A provision dividing the agreement into quantifiable units of deliverables that must be received and accepted in writing by the Recipient before payment or reimbursement. Each deliverable must be directly related to the scope of work and specify the required minimum level of service to be performed and the criteria for evaluating the successful completion of each deliverable. iii. A provision specifying the financial consequences that apply if the Subrecipient fails to perform the minimum level of service required by the agreement. IV, A provision specifying that the Subrecipient may expend funds only for allowable costs resulting from obligations incurred during the specified agreement period. V. A provision specifying that any balance of unobligated funds which has been advanced or paid must be refunded to the Recipient. vi. A provision specifying that any funds paid in excess of the amount to which the Recipient is entitled under the terms and conditions of the agreement must be refunded to the Recipient. c. In addition to the foregoing, the Subrecipient and the Recipient will be governed by all applicable State and Federal laws, rules and regulations, including those identified in Attachment B. Any express reference in this Agreement to a particular statute, rule, or regulation in no way implies that no other statute, rule, or regulation applies. (2) CONTACT a. The Recipient's Program Manager will be responsible for enforcing performance of this Agreement's terms and conditions and will serve as the Recipient's liaison with the Subrecipient. As part of his/her duties, the Program Manager for the Recipient will monitor and document Subrecipient performance. b. The Recipient's Program Manager and Representative for this Agreement is: Kristin Daniels. CGFO Director - Office of Manaaement & Budget Indian River Countv Phone. 772-226-1214 e-mail kdanielsaa ircoov.com c. In the event that different representatives or addresses are designated by either party after execution of this Agreement, notice of the name, title and address of the new representative will be provided to the other party. (3) TERMS AND CONDITIONS This Agreement contains all the terms and conditions agreed upon by the parties. (4) EXECUTION This Agreement may be executed in any number of counterparts, any one of which may be taken as an original. (5) MODIFICATION This agreement may not be modified. (6) PERIOD OF AGREEMENT This Agreement shall be effective on March 1. 2020 and shall end on December 30. 2021), unless terminated earlier in accordance with the provisions of Paragraph (15) TERMINATION. In accordance with section 215.971(1)(d), Florida Statutes, the Subrecipient may expend funds authorized by this Agreement "only for allowable costs resulting from obligations incurred during the specific agreement period." (7) FUNDING a. The Recipient's performance and obligation to pay under this Agreement is contingent upon an annual appropriation by the Legislature, and subject to any modification in accordance with either Chapter 216, Florida Statutes and the Florida Constitution. b. This is a modified reimbursement agreement. The State, through the Recipient, will make an initial disbursement to the county of 25% of the total amount allocated to the Recipient according to the United States Department of the Treasury. Any additional amounts will be disbursed on a reimbursement basis. c. Subrecipients may use payments for any expenses eligible under section 601(d) of the Social Security Act, specifically the Coronavirus Relief Fund and further outlined in US Treasury Guidance. Payments are not required to be used as the source of funding of last resort. d. The Recipient's Program Manager shall reconcile and verify all funds received against all funds expended during the period of agreement and produce a final reconciliation report. The final report must identify any funds paid in excess of the expenditures incurred by the Subrecipient. e. For the purposes of this Agreement, the term "improper payment" means or includes: i. Any payment that should not have been made or that was made in an incorrect amount (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements. f. As required by the Reference Guide for State Expenditures, reimbursement for travel must be in accordance with section 112.061, Florida Statutes, which includes submission of the claim on the approved state travel voucher. g. Reserved. h. The CARES Act requires that the payments from the Coronavirus Relief Fund only be used to cover expenses that— i. are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19); ii. 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 iii. were incurred during the period that begins on March 1, 2020 and ends on December 30, 2020. Funds transferred to Subrecipient must qualify as a necessary expenditure incurred due to the public health emergency and meet the other criteria of section 601(d) of the Social Security Act. Such funds would be subject to recoupment by the Treasury Department if the funds have not been used in a manner consistent with section 601(d) of the Social Security Act. Examples of Eligible Expenses include, but are not limited to: I. Medical expenses ii. Public health expenses iii. 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. iv. Expenses of actions to facilitate compliance with COVID-19 related public health measures. v. Expenses associated with the provision of economic support in connection with the COVID-19 public health emergency. vi. Any other COVID-19 — related expenses reasonably necessary to the function of government that satisfy the fund's eligibility criteria. (8) INVOICING a. In order to obtain reimbursement for expenditures in excess of the initial 25% disbursement, the Subrecipient must file with the Recipient Grant Manager its request for reimbursement and any other information required to justify and support the payment request. Payment requests must include a certification, signed by an official who is authorized to legally bind the Subrecipient, which reads as follows: By signing this report, I certify to the best of my knowledge and belief that the report is true, complete, and accurate, and the expenditures, disbursements and cash receipts are for the purposes and objectives set forth in the terms and conditions of the Federal award. I am aware that any false, fictitious, or fraudulent information, or the omission of any material fact, may subject me to criminal, civil or administrative penalties for fraud, false statements, false claims or otherwise. (U.S. Code Title 18, Section 1001 and Title 31, Sections 3729-3730 and 3801-3812). b. Reimbursements will only be made for expenditures that the Recipient provisionally determines are eligible under the CARES Act. However, the Recipient's provisional determination that an expenditure is eligible does not relieve the Subrecipient of its duty to repay the Recipient for any expenditures that are later determined by the Recipient, the State of Florida or the Federal government to be ineligible. (9) RECORDS a. As a condition of receiving state or federal financial assistance, and as required by sections 20.055(6)(c) and 215.97(5)(b), Florida Statutes, the Recipient, the Chief Inspector General of the State of Florida, the Florida Auditor General, or any of their authorized representatives, shall enjoy the right of access to any documents, financial statements, papers, or other records of the Subrecipient which are pertinent to this Agreement, in order to make audits, examinations, excerpts, and transcripts. The right of access also includes timely and reasonable access to the Subrecipient's personnel for the purpose of interview and discussion related to such documents. For the purposes of this section, the term "Subrecipient" includes employees or agents, including all subcontractors or consultants to be paid from funds provided under this Agreement. b. The Subrecipient shall maintain all records related to this Agreement for the period of time specified in the appropriate retention schedule published by the Florida Department of State. Information regarding retention schedules can be obtained at: http://dos.myforida.com/library-archives/records-managem ent/general-records- schedules/. c. Florida's Government in the Sunshine Law (Section 286.011, Florida Statutes) provides the citizens of Florida with a right of access to governmental proceedings and mandates three, basic requirements: (1) all meetings of public boards or commissions must be open to the public; (2) reasonable notice of such meetings must be given; and, (3) minutes of the meetings must be taken and prom ptly recorded. d. Florida's Public Records Law provides a right of access to the records of the state and local governments as well as to private entities acting on their behalf. Unless specifically exempted from disclosure by the Legislature, all materials made or received by a governmental agency (or a private entity acting on behalf of such an agency) in conjunction with official business which are used to perpetuate, communicate, or formalize knowledge qualify as public records subject to public inspection. IF THE SUBRECIPIENT HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119. FLORIDA STATUTES. TO THE CONTRACTOR'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS CONTRACT, CONTACT THE CUSTODIAN OF PUBLIC RECORDS AT: (772) 226-1424. publicrecords(a.ircgov.corn, Indian River Countv Office of the Countv Attornev, 1801 27'h Street, Vero Beach. FL 32960 (10) AUDITS a. In accounting for the receipt and expenditure of funds under this Agreement, the Subrecipient must follow Generally Accepted Accounting Principles ("GAAP"). As defined by 2 C.F.R. §200.49, "GAAP has the meaning specified in accounting standards issued by the Government Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB) " b. When conducting an audit of the Subrecipient's performance under this Agreement, the Recipient must use Generally Accepted Government Auditing Standards ("GAGAS"). As defined by 2 C.F.R. §200.50, "GAGAS, also known as the Yellow Book, means generally accepted government auditing standards issued by the Comptroller General of the United States, which are applicable to financial audits." c. If an audit shows that all or any portion of the funds disbursed were not spent in accordance with the conditions of and strict compliance with this Agreement, the Subrecipient will be held liable for reimbursement to the Recipient of all funds not spent in accordance with these applicable regulations and Agreement provisions within thirty (30) days after the Recipient has notified the Subrecipient of such non-compliance. d. The Subrecipient must have all audits completed by an independent auditor, which is defined in section 215.97(2)(1), Florida Statutes, as "an independent certified public accountant licensed under chapter 473 " The independent auditor must state that the audit complied with the applicable provisions noted above. The audits must be received by the Recipient no later than nine months from the end of the Subrecipient's fiscal year. e. The Subrecipient must send copies of reporting packages required under this paragraph directly to each of the Program Manger. f. Fund payments are considered to be federal financial assistance subject to the Single Audit Act and the related provisions of the Uniform Guidance. (11) REPORTS a. The Subrecipient must provide the Recipient with quarterly reports and a close-out report. These reports must include the current status and progress of the expenditure of funds under this Agreement, in addition to any other information requested by the Recipient. b. Quarterly reports are due to the Recipient no later than 15 days after the end of each quarter of the program year and must be sent each quarter until submission of the administrative close-out report. The ending dates for each quarter of the program year are March 31, June 30, September 30, and December 31. The first quarterly report due pursuant to this agreement is due for the quarter ending September 30, 2020. c. The close-out report is due sixty (60) days after termination of this Agreement or 60 days after completion of the activities contained in this Agreement, whichever occurs first. d. If all required reports and copies are not sent to the Recipient or are not completed in a manner acceptable to the Recipient, the Recipient may withhold further payments until they are completed or may take other action as stated in Paragraph (15) REMEDIES. "Acceptable to the Recipient" means that the work product was completed in accordance with the Budget and Scope of Work. e. The Subrecipient must provide additional program updates or information that may be required by the Recipient. (12) MONITORING In addition to reviews of audits conducted in accordance with paragraph (10) AUDITS above, monitoring procedures may include, but not be limited to, on -site visits by Recipient staff, limited scope audits, or other procedures. The Subrecipient agrees to comply and cooperate with any monitoring procedures/processes deemed appropriate by the Recipient. In the event that the Recipient determines that a limited scope audit of the Subrecipient is appropriate, the Subrecipient agrees to comply with any additional instructions provided by the Recipient to the Subrecipient regarding such audit. The Subrecipient further agrees to comply and cooperate with any inspections, reviews, investigations or audits deemed necessary by the Florida Chief Financial Officer or Auditor General. In addition, the Recipient will monitor the performance and financial management by the Subrecipient throughout the period of agreement to ensure timely completion of all tasks. (13) LIABILITY Any Subrecipient which is a state agency or subdivision, as defined in section 768.28, Florida Statutes, agrees to be fully responsible for its negligent or tortious acts or omissions which result in claims or suits against the Recipient, and agrees to be liable for any damages proximately caused by the acts or omissions to the extent set forth in section 768.28, Florida Statutes. Nothing herein is intended to serve as a waiver of sovereign immunity by any party to which sovereign immunity applies. Nothing herein will be construed as consent by a state agency or subdivision of the State of Florida to be sued by third parties in any matter arising out of this Agreement. (14) DEFAULT a. If any of the following events occur ("Events of Default"), all obligations on the part of the Recipient to make further payment of funds will, if the Recipient elects, terminate and the Recipient has the option to exercise any of its remedies set forth in Paragraph (15) REMEDIES. However, the Recipient may make payments or partial payments after any Events of Default without waiving the right to exercise such remedies, and without becoming liable to make any further payment. b. If any warranty or representation made by the Subrecipient in this Agreement or any previous agreement with the Recipient is or becomes false or misleading in any respect, or if the Subrecipient fails to keep or perform any of the obligations, terms or covenants in this Agreement or any previous agreement with the Recipient and has not cured them in timely fashion, or is unable or unwilling to meet its obligations under this Agreement. c. If material adverse changes occur in the financial condition of the Subrecipient at any time during the period of agreement, and the Subrecipient fails to cure this adverse change within thirty (30) days from the date written notice is sent by the Recipient. d. If any reports required by this Agreement have not been submitted to the Recipient or have been submitted with incorrect, incomplete or insufficient information; e. If the Subrecipient has failed to perform and complete on time any of its obligations under this Agreement. (15) REMEDIES If an Event of Default occurs, then the Recipient may, after thirty (30) calendar days written notice to the Subrecipient and upon the Subrecipient's failure to cure within those thirty (30) days, exercise any one or more of the following remedies, either concurrently or consecutively: a. Terminate this Agreement, provided that the Subrecipient is given at least thirty (30) days prior written notice of the termination. The notice shall be effective when placed in the United States, first class mail, postage prepaid, by registered or certified mail -return receipt requested, to the address in paragraph (2) CONTACT herein; b. Begin an appropriate legal or equitable action to enforce performance of this Agreement; c. Withhold or suspend payment of all or any part of a request for payment; d. Require thatthe Subreciplent refund to the Recipientany monies used for ineligible purposes under the laws, rules and regulations governing the use of these funds. e. Exercise any corrective or remedial actions, to include but not be limited to: i. request additional information from the Subrecipient to determine the reasons for or the extent of non-compliance or lack of performance, ii. issue a written warning to advise that more serious measures may be taken if the situation is not corrected, Ill. advise the Subrecipient to suspend, discontinue or refrain from incurring costs for any activities in question, or iv. require the Subrecipieritto reimburse the Recipient for the amount of costs incurred for any items determined to be ineligible, or f. Exercise any other rights or remedies which may be available under law. Pursuing any of the above remedies will not stop the Recipient from pursuing any other remedies in this Agreement or provided at law or in equity. If the Recipient waives any right or remedy in this Agreement or fails to insist on strict performance by the Subrecipient, it will not affect, extend or waive any other right or remedy of the Recipient, or affect the later exercise of the same right or remedy by the Recipient for any other default by the Subrecipient. (16) TERMINATION a. The Recipient may terminate this Agreement for cause after thirty (30) days written notice. Cause can include misuse of funds, fraud, lack of compliance with applicable rules, laws and regulations, failure to perform on time, and refusal by the Subrecipient to permit public access to any document, paper, letter, or other material subject to disclosure under Chapter 119, Florida Recipient of Emergency Management Statutes, as amended. b. The Recipient may terminate this Agreement for convenience or when it determines, in its sole discretion, that continuing the Agreement would not produce beneficial results in line with the further expenditure of funds, by providing the Subrecipient with thirty (30) calendar days prior written notice. c. The parties may agree to terminate this Agreement for their mutual convenience through a written amendment of this Agreement. The amendment will state the effective date of the termination and the procedures for proper closeout of this Agreement. d. In the event this Agreement is terminated, the Subrecipient will not incur new obligations for the terminated portion of this Agreement after they have received the notification of termination. The Subrecipient will cancel as many outstanding obligations as possible. Costs incurred after receipt of the termination notice will be disallowed. The Subrecipient will not be relieved of liability to the Recipient because of any breach of this Agreement by the Subrecipient. The Recipient may, to the extent authorized by law, withhold payments to the Subrecipient for the purpose of set-off until the exact amount of damages due the Recipient from the Subrecipient is determined. (17) ATTACHEMENTS a. All attachments to this Agreement are incorporated as if set out fully. b. In the event of any inconsistencies or conflict between the language of this Agreement and the attachments, the language of the attachments will control, but only to the extent of the conflict or inconsistency. (18) PAYMENTS a. The Recipient will make a disbursement to Subrecipient in the amount of It (19) REPAYMENTS a. All refunds, return of improper payments, or repayments due to the Recipient under this Agreement are to be made payable to the order of "Indian River County," and mailed directly to the following address: FILL IN ADDRESS b. In accordance with section 215.34(2), Florida Statutes, if a check or other draft is returned to the Recipient for collection, Subrecipient shall pay the Recipient a service fee of $15.00 or 5% of the face amount of the returned check or draft, whichever is greater. (20) MANDATED CONDITIONS AND OTHER LAWS a. The validity of this Agreement is subject to the truth and accuracy of all the information, representations, and materials submitted or provided by the Subrecipient in this Agreement, in any later submission or response to a Recipient request, or in any submission or response to fulfill the requirements of this Agreement. All of said information, representations, and materials is incorporated by reference. The inaccuracy of the submissions or any material changes will, at the option of the Recipient and with thirty (30) days written notice to the Subrecipient, cause the termination of this Agreement and the release of the Recipient from all its obligations to the Subrecipient. b. This Agreement must be construed under the laws of the State of Florida, and venue for any actions arising out of this Agreement will be in the Circuit Court of Indian River County. If any provision of this Agreement is in conflict with any applicable statute or rule, or is unenforceable, then the provision is null and void to the extent of the conflict, and is severable, but does not invalidate any other provision of this Agreement. c. Any power of approval or disapproval granted to the Recipient under the terms of this Agreement will survive the term of this Agreement. d. This Agreement may be executed in any number of counterparts, any one of which may be taken as an original. e. The Subrecipient agrees to comply with the Americans With Disabilities Act (Public Law 101-336, 42 U.S.C. Section 12101 at seq.), which prohibits discrimination by public and private entities on the basis of disability in employment, public accommodations, transportation, State and local government services, and telecommunications. f. Those who have been placed on the convicted vendor list following a conviction for a public entity crime or on the discriminatory vendor list may not submit a bid on a contract to provide any goods or services to a public entity, may not submit a bid on a contract with a public entityfor the construction or repair of a public building or public work, may not submit bids on leases of real property to a public entity, may not be awarded or perform work as a contractor, supplier, subcontractor, or consultant under a contract with a public entity, and may not transact business with any public entity in excess of $25,000.00 for a period of thirty-six (36) months from the date of being placed on the convicted vendor list or on the discriminatory vendor list. g. The State of Florida's performance and obligation to pay under this Agreement is contingent upon an annual appropriation by the Legislature, and subjectto any modification in accordance with Chapter 216, Florida Statutes, or the Florida Constitution. h. All bills for fees or other compensation for services or expenses shall be submitted in detail sufficient for a proper pre -audit and post -audit thereof. I. Any bills for travel expenses must be submitted in accordance with section 112.061, Florida Statutes. j. The Recipient reserves the right to unilaterally cancel this Agreement if the Subrecipient refuses to allow public access to all documents, papers, letters or other material subject to the provisions of Chapter 119, Florida Statutes, which the Subrecipient created or received under this Agreement. k. If the Subrecipient is allowed to temporarily invest any advances of funds under this Agreement, they must use the interest earned or other proceeds of these investments only to cover expenditures incurred in accordance with section 601(d) of the Social Security Act and the Guidance on eligible expenses. If a government deposits CRF payments in a government's general account, it may use those funds to meet immediate cash management needs provided that the full amount of the payment is used to cover necessary expenditures. Fund payments are not subject to the Cash Management Improvement Act of 1990, as amended. The State of Florida will not intentionally award publicly -funded contracts to any contractor who knowingly employs unauthorized alien workers, constituting a violation of the employment provisions contained in 8 U.S.C. Section 1324a(e) [Section 274A(e) of the Immigration and Nationality Act ("INA" )]. The Recipient shall consider the am ploym ant by any contractor of unauthorized aliens a violation of Section 274A(e) of the INA. Such violation by the Subrecipient of the employment provisions contained in Section 274A(e) of the INA will be grounds for unilateral cancellation of this Agreement by the Recipient. The Subrecipient is subject to Florida's Government in the Sunshine Law (Section 286.011, Florida Statutes) with respect to the meetings of the Subrecipient's governing board or the meetings of any subcommittee making recommendations to the governing board. All of these meetings must be publicly noticed, open to the public, and the minutes of all the meetings will be public records, available to the public in accordance with Chapter 119, Florida Statutes. m. All expenditures of state or federal financial assistance must be in compliance with the laws, rules and regulations applicable to expenditures of State funds, including but not limited to, the Reference Guide for State Expenditures. n. This Agreement may be charged only with allowable costs resulting from obligations incurred during the period of agreement. o. Any balances of unobligated cash that have been advanced or paid that are not authorized to be retained for direct program costs in a subsequent period must be refunded to the Recipient. p. If the purchase of the asset was consistent with the limitations on the eligible use of funds provided by section 601(d) of the Social Security Act, the Subrecipient may retain the asset. If such assets are disposed of prior to December 30, 2020, the proceeds would be subject to the restrictions on the eligible use of payments from the Fund provided bysection 601(d) of the Social Security Act. (21) LOBBYING PROHIBTION a. Section 216.347, Florida Statutes, prohibits "any disbursement of grants and aids appropriations pursuant to a contract or grant to any person or organization unless the terms of the grant or contract prohibit the expenditure of funds for the purpose of lobbying the Legislature, the judicial branch, or a state agency." b. Nofunds or other resources receivedfrom the Recipient under this Agreement maybe used directly or indirectly to influence legislation or any other official action by the Florida Legislature or any state agency. c. 2 C.F.R. §200.450 prohibits reimbursement for costs associated with certain lobbying activities. d. Section 216.347, Florida Statutes, prohibits "any disbursement of grants and aids appropriations pursuant to a contract or grant to any person or organization unless the terms of the grant or contract prohibit the expenditure of funds for the purpose of lobbying the Legislature, the judicial branch, or a state agency." e. Nofunds orother resources received from the Recipient under this Agreement may be used directly or indirectly to influence legislation or any other official action by the Florida Legislature or any state agency. I. The Subrecipient certifies, by its signature to this Agreement, that to the best of his or her knowledge and belief: ii. No Federal appropriated funds have been paid or will be paid, by or on behalf of the Subrecipient, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment or modification of any Federal contract, grant, loan or cooperative agreement. III. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan or cooperative agreement, the Subrecipient must complete and submit Standard Form-LLL, "Disclosure of Lobbying Activities." iv. The Subrecipient must require that this certification be included in the award documents for all subawards (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all Subrecipient s shall certify and disclose. v. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. (22) LEGAL AUTHORIZATION The Subrecipient certifies that it has the legal authority to receive the funds under this Agreement and that its governing body has authorized the execution and acceptance of this Agreement. The Subrecipient also certifies that the undersigned person has the authority to legally execute and bind the Subrecipient to the terms of this Agreement. (23) ASSURANCES The Subrecipient must comply with any Statement of Assurances incorporated as Attachment C. (24) EQUAL OPPORTUNITY EMPLOYMENT a. In accordance with 41 C.F.R. §60-1.4(b), the Subrecipient hereby agrees that it will incorporate or cause to be incorporated into any contract for construction work, or modification thereof, as defined in the regulations of the Secretary of Labor at 41 CFR Chapter 60, which is paid for in whole or in part with funds obtained from the Federal Government or borrowed on the credit of the Federal Government pursuant to a grant, contract, loan, insurance, or guarantee, or undertaken pursuant to any Federal program involving such grant, contract, loan, insurance, or guarantee, the following equal opportunity clause: During the performance of this contract, the contractor agrees as follows: The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, gender identity, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex, sexual orientation, gender identity, or national origin. Such action shall include, but not be limited to the following: i. Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. ii. The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive considerations for employment without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin. iii. The contractorwill not discharge or in any other manner discriminate against any employee or applicant for employment because such employee or applicant has inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant. This provision shall not apply to instances in which an employee who has access to the compensation information of other employees or applicants as a part of such employee's essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have access to such information, unless such disclosure is in response to a formal complaint or charge, in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by the employer, or is consistent with the contractor's legal duty to furnish information. iv. The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. V. The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. vi. The contractor will fumish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. vii. In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, this contract may be canceled, terminated, or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions maybe imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretaryof Labor, or as otherwise provided by law. viii. The contractor will include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (8) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the administering agency may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the administering agency the contractor may request the United States to enter into such litigation to protect the interests of the United States. (25) COPELAND ANTI -KICKBACK ACT a. The Subrecipient hereby agrees that, unless exempt under Federal law, it will incorporate or cause to be incorporated into any contract for construction work, or modification thereof, the following clause: i. Contractor. The contractor shall comply with 18 U.S.C. § 874, 40 U.S.C. § 3145, and the requirements of 29 C.F.R. pt. 3 as may be applicable, which are incorporated by reference into this contract. ii. Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clause above and such other clauses as the FEMA may by appropriate instructions require, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all of these contract clauses. iii. Breach. A breach of the contract clauses above may be grounds for termination of the contract, and for debarment as a contractor and subcontractor as provided in 29 C.F.R. § 5.12. (26) CONTRACT WORK HOURS AND SAFETY STANDARDS If the Subrecipient , with the funds authorized by this Agreement, enters into a contract that exceeds $100,000 and involves the employment of mechanics or laborers, then any such contract must include a provision for compliance with 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor regulations (29 CFR Part 5). Under 40 U.S.C. 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous, or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation. (27) CLEAN AIR ACT AND THE FEDERAL WATER POLLUTION CONTROL ACT a. If the Subrecipient, with the funds authorized by this Agreement, enters into a contract that exceeds $150,000, then any such contract must include the following provision: I. Contractor agrees to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401-7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251-1387), and will report violations to FEMA and the Regional Office of the Environmental Protection Agency (EPA). (28) SUSPENSION AND DEBARMENT a. If the Subrecipient, with the funds authorized by this Agreement, enters into a contract, then any such contract must include the following provisions: i. This contract is a covered transaction for purposes of 2 C.F.R. pt. 180 and 2 C.F.R. pt. 3000. As such the contractor is required to verify that none of the contractor, its principals (defined at 2 C.F.R. § 180.995), or its affiliates (defined at 2 C.F.R. § 180.905) are excluded (defined at 2 C.F.R. § 180.940) or disqualified (defined at 2 C.F.R. § 180.935). ii. The contractor must comply with 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C and must include a requirement to comply with these regulations in any lower tier covered transaction it enters into. iii. This certification is a material representation of fact relied upon by the Recipient. If it is later determined that the contractor did not comply with 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C, in addition to remedies available to the Recipient, the Federal Government may pursue available remedies, including but not limited to suspension and/or debarment. iv. The bidder or proposer agrees to comply with the requirements of 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C while this offer is valid and throughout the period of any contract that may arise from this offer. The bidder or proposer further agrees to include a provision requiring such compliance in its lower tier covered transactions. (29)BYRD ANTI -LOBBYING AMENDMENT a. If the Subrecipient, with the funds authorized by this Agreement, enters into a contract, then any such contract must include the following clause: i. Byrd Anti -Lobbying Amendment, 31 U.S.C. § 1352 (as amended). Contractors who apply or bid for an award of $100,000 or more shall file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Each tier shall also disclose any lobbying with non -Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the Subrecipient. (30) CONTRACTING WITH SMALL AND MINORITY BUSINESSES. WOMEN'S BUSINESS ENTERPRISES. AND LABOR SURPLUS AREA FIRMS a. If the Subrecipient, with the funds authorized by this Agreement, seeks to procure goods or services, then, in accordance with 2 C.F.R. §200.321, the Subrecipient must take the following affirmative steps to assure that minority businesses, women's business enterprises, and labor surplus area firms are used whenever possible: i. Placing qualified small and minority businesses and women's business enterprises on solicitation lists; ii. Assuring that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources; iii. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises; iv. Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises; V. Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and vi. Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (1). through v. of this subparagraph. b. The requirement outlined in subparagraph a. above, sometimes referred to as ..socioeconomic contracting," does not impose an obligation to set aside either the solicitation or award of a contract to these types of firms. Rather, the requirement only imposes an obligation to carry out and document the six affirmative steps identified above. c. The "socioeconomic contracting" requirement outlines the affirmative steps that the Subrecipient must take; the requirements do not preclude the Subrecipient from undertaking additional steps to involve small and minority businesses and women's business enterprises. d. The requirement to divide total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises, does not authorize the Subrecipient to break a single project down into smaller components in order to circumvent the micro -purchase or small purchase thresholds so as to utilize streamlined acquisition procedures (e.g. "project splitting"). (31) SCOPE OF WORK. The Sub recipient shall perform the tasks as identified and set forth in the Scope of Work, which is Attachment A. 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 501(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.' 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 ' See Section 601(d) of the Social Security Act, as added by section 5001 of the CARES Act. 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- 1 9-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. 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' 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.; 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. ' 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 injuryor 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. 'See 42 C.F.R. § 433.51 and 45 C.F.R. § 75.306. 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. Coronavirus Relief Fund Frequently Asked Questions Updated as of June 24, 2020 The following answers to frequently asked questions supplement Treasury's Coronavirus Relief Fund ("Fund") Guidance for State, Territorial, Local, and Tribal Governments, dated April 22, 2020, ("Guidance").' Amounts paid from the Fund are subject to the restrictions outlined in the Guidance and set forth in section 601(d) of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). Eligible Expenditures Are governments required to submit proposed expenditures to Treasury for approval? No. Governments are responsible for making determinations as to what expenditures are necessary due to the public health emergency with respect to COVID-19 and do not need to submit any proposed expenditures to Treasury. The Guidance says that funding can be used to meet 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. How does a government determine whether payroll expenses for a given employee satisfy the "substantially dedicated" condition? The Fund is designed to provide ready funding to address unforeseen financial needs and risks created by the COVID-19 public health emergency. For this reason, and as a matter of administrative convenience in light of the emergency nature of this program, a State, territorial, local, or Tribal government may presume that payroll costs for public health and public safety employees are payments for services substantially dedicated to mitigating or responding to the COVID-19 public health emergency, unless the chief executive (or equivalent) of the relevant government determines that specific circumstances indicate otherwise. The Guidance says that a cost was not accounted for in the most recently approved budget if the cost is for a substantially different use from any expected use offunds in such a fine item, allotment, or allocation. What would qualify as a "substantially different use"for purposes of the Fund eligibility? Costs incurred for a "substantially different use" include, but are not necessarily limited to, costs of personnel and services that were budgeted for in the most recently approved budget but which, due entirely to the COVID-19 public health emergency, have been diverted to substantially different functions. This would include, for example, the costs of redeploying corrections facility staff to enable compliance with COVID-19 public health precautions through work such as enhanced sanitation or enforcing social distancing measures; the costs of redeploying police to support management and enforcement of stay-at-home orders; or the costs of diverting educational support staff or faculty to develop online learning capabilities, such as through providing information technology support that is not part of the staff or faculty's ordinary responsibilities. Note that a public function does not become a "substantially different use" merely because it is provided from a different location or through a different manner. For example, although developing online instruction capabilities may be a substantially different use of funds, online instruction itself is not a substantially different use of public funds than classroom instruction. ' The Guidance is available at httos://home.treasury.eov/system/files/136/Coronavirus-Relief-Fund-Guidance-for- State-Territorial -Local -and-Tribal-Governments. odf. May a State receiving a payment transfer funds to a local government? Yes, provided that the transfer qualifies as a necessary expenditure incurred due to the public health emergency and meets the other criteria of section 601(d) of the Social Security Act. Such funds would be subject to recoupment by the Treasury Department if they have not been used in a manner consistent with section 601(d) of the Social Security Act. Maya unit of local government receiving a Fund payment transfer funds to another unit of government? Yes. For example, a county may transfer funds to a city, town, or school district within the county and a county or city may transfer funds to its State, provided that the transfer qualifies as a necessary expenditure incurred due to the public health emergency and meets the other criteria of section 601(d) of the Social Security Act outlined in the Guidance. For example, a transfer from a county to a constituent city would not be permissible if the funds were intended to be used simply to fill shortfalls in government revenue to cover expenditures that would not otherwise qualify as an eligible expenditure. Is a Fund payment recipient required to transfer funds to a smaller, constituent unit ofgovernment within its borders? No. For example, a county recipient is not required to transfer funds to smaller cities within the county's borders. Are recipients required to use other federal funds or seek reimbursement under other federal programs before using Fund payments to satisfy eligible expenses? No. Recipients may use Fund payments for any expenses eligible under section 601(d) of the Social Security Act outlined in the Guidance. Fund payments are not required to be used as the source of funding of last resort. However, as noted below, recipients may not use payments from the Fund to cover expenditures for which they will receive reimbursement. Are there prohibitions on combining a transaction supported with Fund payments with other CARES Act funding or COVID-19 relief Federal funding? Recipients will need to consider the applicable restrictions and limitations of such other sources of funding. In addition, 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, are not eligible uses of Fund payments. Are States permitted to use Fund payments to support state unemployment insurance funds generally? To the extent that the costs incurred by a state unemployment insurance fund are incurred due to the COVID-19 public health emergency, a State may use Fund payments to make payments to its respective state unemployment insurance fund, separate and apart from such State's obligation to the unemployment insurance fund as an employer. This will permit States to use Fund payments to prevent expenses related to the public health emergency from causing their state unemployment insurance funds to become insolvent. Are recipients permitted to use Fund payments to pay for unemployment insurance costs incurred by the recipient as an employer? Yes, Fund payments may be used for unemployment insurance costs incurred by the recipient as an employer (for example, as a reimbursing employer) 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. The Guidance states that the Fund may support a "broad range of uses" including payroll expenses for several classes of employees whose services are "substantially dedicated to mitigating or responding to the COVID-19 public health emergency." What are some examples of types of covered employees? The Guidance provides examples of broad classes of employees whose payroll expenses would be eligible expenses under the Fund. These classes of employees include 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. Payroll and benefit costs associated with public employees who could have been furloughed or otherwise laid off but who were instead repurposed to perform previously unbudgeted functions substantially dedicated to mitigating or responding to the COVID-19 public health emergency are also covered. Other eligible expenditures include payroll and benefit costs of educational support staff or faculty responsible for developing online learning capabilities necessary to continue educational instruction in response to COVID-19-related school closures. Please see the Guidance for a discussion of what is meant by an expense that was not accounted for in the budget most recently approved as of March 27, 2020. In some cases, first responders and critical health care workers that contract COYID-19 are eligible for workers' compensation coverage. Is the cost of this expanded workers compensation coverage eligible? Increased workers compensation cost to the government due to the COVID-19 public health emergency incurred during the period beginning March 1, 2020, and ending December 30, 2020, is an eligible expense. If a recipient would have decommissioned equipment or not renewed a lease on particular office space or equipment but decides to continue to use the equipment or to renew the lease in order to respond to the public health emergency, are the costs associated with continuing to operate the equipment or the ongoing lease payments eligible expenses? Yes. To the extent the expenses were previously unbudgeted and are otherwise consistent with section 601(d) of the Social Security Act outlined in the Guidance, such expenses would be eligible. May recipients provide stipends to employees for eligible expenses (for example, a stipend to employees to improve telework capabilities) rather than require employees to incur the eligible cost and submit for reimbursement? Expenditures paid for with payments from the Fund must be limited to those that are necessary due to the public health emergency. As such, unless the government were to determine that providing assistance in the form of a stipend is an administrative necessity, the government should provide such assistance on a reimbursement basis to ensure as much as possible that funds are used to cover only eligible expenses. May Fund payments be used for COVID-19 public health emergency recovery planning? Yes. Expenses associated with conducting a recovery planning project or operating a recovery coordination office would be eligible, if the expenses otherwise meet the criteria set forth in section 601(d) of the Social Security Act outlined in the Guidance. Are expenses associated with contact tracing eligible? Yes, expenses associated with contract tracing are eligible. To what extent may a government use Fund payments to support the operations of private hospitals? Governments may use Fund payments to support public or private hospitals to the extent that the costs are necessary expenditures incurred due to the COVID-19 public health emergency, but the form such assistance would take may differ. In particular, financial assistance to private hospitals could take the form of a grant or a short-term loan. May payments from the Fund be used to assist individuals with enrolling in a government benefit program for those who have been laid off due to COVID-19 and thereby lost health insurance? Yes. To the extent that the relevant government official determines that these expenses are necessary and they meet the other requirements set forth in section 601(d) of the Social Security Act outlined in the Guidance, these expenses are eligible. May recipients use Fund payments to facilitate livestock depopulation incurred by producers due to supply chain disruptions? Yes, to the extent these efforts are deemed necessary for public health reasons or as a form of economic support as a result of the COVID-19 health emergency. Would providing a consumer grant program to prevent eviction and assist in preventing homelessness be considered an eligible expense? Yes, assuming that the recipient considers the grants to be a necessary expense incurred due to the COVID-19 public health emergency and the grants meet the other requirements for the use of Fund payments under section 601(d) of the Social Security Act outlined in the Guidance. As a general matter, providing assistance to recipients to enable them to meet property tax requirements would not be an eligible use of funds, but exceptions may be made in the case of assistance designed to prevent foreclosures. May recipients create a "payroll support program"for public employees? Use of payments from the Fund to cover payroll or benefits expenses of public employees are limited to those employees whose work duties are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. May recipients use Fund payments to cover employment and training programs for employees that have been furloughed due to the public health emergency? Yes, this would be an eligible expense if the government determined that the costs of such employment and training programs would be necessary due to the public health emergency. May recipients use Fund payments to provide emergency financial assistance to individuals and families directly impacted by a loss of income due to the COVID-I9 public health emergency? Yes, if a government determines such assistance to be a necessary expenditure. Such assistance could include, for example, a program to assist individuals with payment of overdue rent or mortgage payments to avoid eviction or foreclosure or unforeseen financial costs for funerals and other emergency individual needs. Such assistance should be structured in a manner to ensure as much as possible, within the realm of what is administratively feasible, that such assistance is necessary. The Guidance provides that eligible expenditures may include expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures. What is meant by a "small business," and is the Guidance intended to refer only to expenditures to cover administrative expenses of such a grant program? Governments have discretion to determine what payments are necessary. A program that is aimed at assisting small businesses with the costs of business interruption caused by required closures should be tailored to assist those businesses in need of such assistance. The amount of a grant to a small business to reimburse the costs of business interruption caused by required closures would also be an eligible expenditure under section 601(d) of the Social Security Act, as outlined in the Guidance. The Guidance provides that expenses associated with the provision of economic support in connection with the public health emergency, such as expenditures related to the provision ofgrants to small businesses to reimburse the costs of business interruption caused by required closures, would constitute eligible expenditures of Fund payments. Would such expenditures be eligible in the absence of a stay-at-home order? Fund payments may be used for economic support in the absence of a stay-at-home order if such expenditures are determined by the government to be necessary. This may include, for example, a grant program to benefit small businesses that close voluntarily to promote social distancing measures or that are affected by decreased customer demand as a result of the COVID-19 public health emergency. May Fund payments be used to assist impacted property owners with the payment of their property taxes? Fund payments may not be used for government revenue replacement, including the provision of assistance to meet tax obligations. May Fund payments be used to replace foregone utility fees? If not, can Fund payments be used as a direct subsidy payment to all utility account holders? Fund payments may not be used for government revenue replacement, including the replacement of unpaid utility fees. Fund payments may be used for subsidy payments to electricity account holders to the extent that the subsidy payments are deemed by the recipient to be necessary expenditures incurred due to the COVID-19 public health emergency and meet the other criteria of section 601(d) of the Social Security Act outlined in the Guidance. For example, if determined to be a necessary expenditure, a government could provide grants to individuals facing economic hardship to allow them to pay their utility fees and thereby continue to receive essential services. Could Fund payments be used for capital improvement projects that broadly provide potential economic development in a community? In general, no. If capital improvement projects are not necessary expenditures incurred due to the COVID-19 public health emergency, then Fund payments may not be used for such projects. However, Fund payments may be used for the expenses of, for example, establishing temporary public medical facilities and other measures to increase COVID-19 treatment capacity or improve mitigation measures, including related construction costs. The Guidance includes workforce bonuses as an example of ineligible expenses but provides that hazard pay would be eligible if otherwise determined to be a necessary expense. Is there a specific definition of "hazard pay"? Hazard pay means additional pay for performing hazardous duty or work involving physical hardship, in each case that is related to COVID-19. The Guidance provides that ineligible expenditures include "[pjayroll or benefits expenses for employees whose work duties are not substantially dedicated to mitigating or responding to the COVID-19 public health emergency." Is this intended to relate only to public employees? Yes. This particular nonexclusive example of an ineligible expenditure relates to public employees. A recipient would not be permitted to pay for payroll or benefit expenses of private employees and any financial assistance (such as grants or short-term loans) to private employers are not subject to the restriction that the private employers' employees must be substantially dedicated to mitigating or responding to the COVID-19 public health emergency. May counties pre pay with CARES Act funds for expenses such as a one or two year facility lease, such as to house staff hired in response to COVID-19? A government should not make prepayments on contracts using payments from the Fund to the extent that doing so would not be consistent with its ordinary course policies and procedures. Must a stay-at-home order or other public health mandate be in effect in order far a government to provide assistance to small businesses using payments from the Fund? No. The Guidance provides, as an example of an eligible use of payments from the Fund, expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures. Such assistance may be provided using amounts received from the Fund in the absence of a requirement to close businesses if the relevant government determines that such expenditures are necessary in response to the public health emergency. Should States receiving a payment transfer funds to local governments that did not receive payments directly from Treasury? Yes, provided that the transferred funds are used by the local government for eligible expenditures under the statute. To facilitate prompt distribution of Title V funds, the CARES Act authorized Treasury to make direct payments to local governments with populations in excess of 500,000, in amounts equal to 45% of the local government's per capita share of the statewide allocation. This statutory structure was based on a recognition that it is more administratively feasible to rely on States, rather than the federal government, to manage the transfer of funds to smaller local governments. Consistent with the needs of all local governments for funding to address the public health emergency, States should transfer funds to local governments with populations of 500,000 or less, using as a benchmark the per capita allocation formula that governs payments to larger local governments. This approach will ensure equitable treatment among local governments of all sizes. For example, a State received the minimum $1.25 billion allocation and had one county with a population over 500,000 that received $250 million directly. The State should distribute 45 percent of the $1 billion it received, or $450 million, to local governments within the State with a population of 500,000 or less. May a State impose restrictions on transfers offunds to local governments? Yes, to the extent that the restrictions facilitate the State's compliance with the requirements set forth in section 601(d) of the Social Security Act outlined in the Guidance and other applicable requirements such as the Single Audit Act, discussed below. Other restrictions are not permissible. If a recipient must issue tax anticipation notes (TANS) to make up for tax due date deferrals or revenue shortfalls, are the expenses associated with the issuance eligible uses of Fund payments? If a government determines that the issuance of TANS is necessary due to the COVID-19 public health emergency, the government may expend payments from the Fund on the interest expense payable on TANS by the borrower and unbudgeted administrative and transactional costs, such as necessary payments to advisors and underwriters, associated with the issuance of the TANS. May recipients use Fund payments to expand rural broadband capacity to assist with distance learning and telework? Such expenditures would only be permissible if they are necessary for the public health emergency. The cost of projects that would not be expected to increase capacity to a significant extent until the need for distance learning and telework have passed due to this public health emergency would not be necessary due to the public health emergency and thus would not be eligible uses of Fund payments. Are costs associated with increased solid waste capacity an eligible use ofpaymentsfrom the Fund? Yes, costs to address increase in solid waste as a result of the public health emergency, such as relates to the disposal of used personal protective equipment, would be an eligible expenditure. May payments from the Fund be used to cover across-the-board hazard pay for employees working during a state of emergency? No. The Guidance says that funding may be used to meet 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 COVED-19 public health emergency. Hazard pay is a form of payroll expense and is subject to this limitation, so Fund payments may only be used to cover hazard pay for such individuals. May Fund payments be used for expenditures related to the administration of Fund payments by a State, territorial, local, or Tribal government? Yes, if the administrative expenses represent an increase over previously budgeted amounts and are limited to what is necessary. For example, a State may expend Fund payments on necessary administrative expenses incurred with respect to a new grant program established to disburse amounts received from the Fund. May recipients use Fund payments to provide loans? Yes, if the loans otherwise qualify as eligible expenditures under section 601(d) of the Social Security Act as implemented by the Guidance. Any amounts repaid by the borrower before December 30, 2020, must be either returned to Treasury upon receipt by the unit of government providing the loan or used for another expense that qualifies as an eligible expenditure under section 601(d) of the Social Security Act. Any amounts not repaid by the borrower until after December 30, 2020, must be returned to Treasury upon receipt by the unit of government lending the funds. May Fund payments be used for expenditures necessary to prepare for a future COVID-19 outbreak? Fund payments may be used only for expenditures necessary to address the current COVID-19 public health emergency. For example, a State may spend Fund payments to create a reserve of personal protective equipment or develop increased intensive care unit capacity to support regions in its jurisdiction not yet affected, but likely to be impacted by the current COVID-19 pandemic. May funds be used to satisfy non-federal matching requirements under the Stafford Act? Yes, payments from the Fund may be used to meet the non-federal matching requirements for Stafford Act assistance to the extent such matching requirements entail COVID-19-related costs that otherwise satisfy the Fund's eligibility criteria and the Stafford Act. Regardless of the use of Fund payments for such purposes, FEMA funding is still dependent on FEMA's determination of eligibility under the Stafford Act. Must a State, local, or tribal government require applications to be submitted by businesses or individuals before providing assistance using payments from the Fund? Governments have discretion to determine how to tailor assistance programs they establish in response to the COVID-19 public health emergency. However, such a program should be structured in such a manner as will ensure that such assistance is determined to be necessary in response to the COVID-19 public health emergency and otherwise satisfies the requirements of the CARES Act and other applicable law. For example, a per capita payment to residents of a particular jurisdiction without an assessment of individual need would not be an appropriate use of payments from the Fund. May Fund payments be provided to non profits for distribution to individuals in need of financial assistance, such as rent reef? Yes, non -profits may be used to distribute assistance. Regardless of how the assistance is structured, the financial assistance provided would have to be related to COVID-19. May recipients use Fund payments to remarket the recipient's convention facilities and tourism industry? Yes, if the costs of such remarketing satisfy the requirements of the CARES Act. Expenses incurred to publicize the resumption of activities and steps taken to ensure a safe experience may be needed due to the public health emergency. Expenses related to developing a long-term plan to reposition a recipient's convention and tourism industry and infrastructure would not be incurred due to the public health emergency and therefore may not be covered using payments from the Fund. May a State provide assistance to farmers and meat processors to expand capacity, such to cover overtime for USDA meat inspectors? If a State determines that expanding meat processing capacity, including by paying overtime to USDA meat inspectors, is a necessary expense incurred due to the public health emergency, such as if increased capacity is necessary to allow farmers and processors to donate meat to food banks, then such expenses are eligible expenses, provided that the expenses satisfy the other requirements set forth in section 601(d) of the Social Security Act outlined in the Guidance. The guidance provides that funding may be used to meet 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. May Fund payments be used to cover such an employee's entire payroll cost or just the portion of time spent on mitigating or responding to the COVID-19 public health emergency? As a matter of administrative convenience, the entire payroll cost of an employee whose time is substantially dedicated to mitigating or responding to the COVID-19 public health emergency is eligible, provided that such payroll costs are incurred by December 30, 2020. An employer may also track time spent by employees related to COVID-19 and apply Fund payments on that basis but would need to do so consistently within the relevant agency or department. Questions Related to Administration of Fund Payments Do governments have to return unspent funds to Treasury? Yes. Section 601(t)(2) of the Social Security Act, as added by section 5001(a) of the CARES Act, provides for recoupment by the Department of the Treasury of amounts received from the Fund that have not been used in a manner consistent with section 601(d) of the Social Security Act. If a government has not used funds it has received to cover costs that were incurred by December 30, 2020, as required by the statute, those funds must be returned to the Department of the Treasury. What records must be kept by governments receiving payment? A government should keep records sufficient to demonstrate that the amount of Fund payments to the government has been used in accordance with section 601(d) of the Social Security Act. May recipients deposit Fund payments into interest bearing accounts? Yes, provided that if recipients separately invest amounts received from the Fund, they must use the interest earned or other proceeds of these investments only to cover expenditures incurred in accordance with section 601(d) of the Social Security Act and the Guidance on eligible expenses. If a government deposits Fund payments in a government's general account, it may use those funds to meet immediate cash management needs provided that the full amount of the payment is used to cover necessary expenditures. Fund payments are not subject to the Cash Management Improvement Act of 1990, as amended. May governments retain assets purchased with payments from the Fund? Yes, if the purchase of the asset was consistent with the limitations on the eligible use of funds provided by section 601(d) of the Social Security Act. What rules apply to the proceeds of disposition or sale of assets acquired using payments from the Fund? If such assets are disposed of prior to December 30, 2020, the proceeds would be subject to the restrictions on the eligible use of payments from the Fund provided by section 601(d) of the Social Security Act. Are Fund payments to State, territorial, local, and tribal governments considered grants? No. Fund payments made by Treasury to State, territorial, local, and Tribal governments are not considered to be grants but are `other financial assistance" under 2 C.F.R. § 200.40. Are Fund payments considered federal financial assistance for purposes of the Single AuditAct? Yes, Fund payments are considered to be federal financial assistance subject to the Single Audit Act (31 U.S.C. §§ 7501-7507) and the related provisions of the Uniform Guidance, 2 C.F.R. § 200.303 regarding internal controls, §§ 200.330 through 200.332 regarding subrecipient monitoring and management, and subpart F regarding audit requirements. Are Fund payments subject to other requirements of the Uniform Guidance? Fund payments are subject to the following requirements in the Uniform Guidance (2 C.F.R. Part 200): 2 C.F.R. § 200.303 regarding internal controls, 2 C.F.R. §§ 200.330 through 200.332 regarding subrecipient monitoring and managemeht, and subpart F regarding audit requirements. Is there a Catalog of Federal Domestic Assistance (CFDA) number assigned to the Fund? Yes. The CFDA number assigned to the Fund is 21.019. If a State transfers Fund payments to its political subdivisions, would the transferred funds count toward the subrecipients' total funding received from the federal government for purposes of the Single AuditAct? Yes. The Fund payments to subrecipients would count toward the threshold of the Single Audit Act and 2 C.F.R. part 200, subpart F re: audit requirements. Subrecipients are subject to a single audit or program - specific audit pursuant to 2 C.F.R. § 200.50l(a) when the subrecipients spend $750,000 or more in federal awards during their fiscal year. Are recipients permitted to use payments from the Fund to cover the expenses of an audit conducted under the Single Audit Act? Yes, such expenses would be eligible expenditures, subject to the limitations set forth in 2 C.F.R. § 200.425. If a government has transferred funds to another entity, from which entity would the Treasury Department seek to recoup the funds if they have not been used in a manner consistent with section 601(d) of the Social Security Act? The Treasury Department would seek to recoup the funds from the government that received the payment directly from the Treasury Department. State, territorial, local, and Tribal governments receiving funds from Treasury should ensure that funds transferred to other entities, whether pursuant to a grant program 10 or otherwise, are used in accordance with section 601(d) of the Social Security Act as implemented in the Guidance. Office of the INDIAN RIVER COUNTY ADMINISTRATOR Jason E. Brown, County Administrator Michael C. Zito, Assistant County Administrator TO: Members of the Board of County Commissioners FROM: Jason E. Brown County Administrator DATE: July 9, 2020 SUBJECT: CARES Act Proposed Spending Plan and Funding Agreement BACKGROUND: In response to the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Securities Act (CARES Act) established the $150 billion Coronavirus Relief Fund. These funds are intended to assist governments with navigating the impact of the COVID-19 outbreak. The United States Department of the Treasury made direct payments to States and Counties with populations in excess of 500,000. The State of Florida has planned to disburse $1,275,285,790 to Counties with populations less than 500,000 who did not receive a direct allocation. Indian River County has been awarded an initial allocation of $6,976,333 through the State of Florida, Division of Emergency Management (FDEM). These funds will be paid in one lump sum payment, and will be audited to ensure compliance with program eligibility. All funds must be expended by December 301, 2020. Additionally, eligible expenditures must not have been included in the approved budget as of March 27, 2020. Examples of eligible expenses include, but are not limited to, payroll expenses for public safety employees, actions to facilitate public health measures, expenses associated with the provision of economic support in connection with the COVID-19 public health emergency, and any other expenses reasonably necessary to the function of government that satisfy the fund's eligible criteria. It is important to note that any expenses that are not in compliance with the CARES Act regulations will ultimately be the responsibility of the County. Unfortunately, the current CARES Act guidance does not provide clear direction on certain eligible expenses and leaves many issues open to interpretation. FDEM is currently working to issue further guidance on topics such as what documentation will be requested during the cost validation phase, etc. Indian River County's initial allocation of $6,976,333 is 25% of the total award amount of $27,905,332. At this time, FDEM has issued no guidance as to how the remaining 75%, or $20,928,999 will be reimbursed, or when grant agreements will be in place that award Counties their remaining allocation. We have received information that FDEM will first review and validate the expenditure of the first 25% disbursement prior to moving forward with allotting the remaining 75%, though this information has not been provided directly by the State. Staffs current proposed plan details how the initial $7M allocation will be spent, and does not directly address the remaining $21M. Staff feels that until fiuther guidance is released, and a grant agreement is received, that expending these funds is not in the best financial interest of the County. On July 7, 2020, staff presented a preliminary funding plan to the Board of County Commissioners. At that meeting, the Board provided input regarding the plan and subsequently approved a motion to approve the grant agreement and approve the spending plan while making sure that the municipalities provide their spending plans and meet the limited deadline for allocation of these dollars. ANALYSIS: The table below details Staffs proposed spending plan for the initial $6,976,333 allocation. Preliminary Preliminary Funding Funding Type of Expense Percentage Amount Municipalities 27.1% $1,900,000 COVID-19 Response: Constitutional Officers 12.9% $900,000 BCC Expenses 20.0% $1,400,000 Health Department 7.1% $500,000 Other Healthcare Providers 2.9% $200,000 State Agencies 1.4% $100,000 Community Assistance: Economic Development 7.1% $500,000 Community Support 21.5% $1,500,000 Total 100% $7,000,000 Municivalities The Board approved an initial allocation to municipalities as detailed in the table below (approximately 27%, or $1,900,000) based upon the formula used by the State to allocate sales tax revenues. The County will need to enter into grant agreements with each municipality, and approve spending plans before any agreements are finalized. The Board has directed staff to ensure that the municipalities provide and implement their spending plans on an expedited basis due to short window for use of the CARES Act dollars. Staff is requesting these spending plans, and after review and approval, they will be incorporated into the subrecipient agreements prior to execution by the County. This will help to ensure the County will not be ultimately responsible for any spending outside of what is deemed eligible. Payments to the municipalities will be made on a reimbursement basis to further ensure compliance. As with all information provided for this agenda item, the amounts below represent the allocation for the initial 25% disbursement. The remaining 75% disbursement, when received will be distributed on the same percentage basis, unless different guidance is received from the State. Municipality Fellsmere Indian River Shores Orchid Sebastian Vero Beach Total - Municipalities Constitutional Officers Proposed Proposed Percentage Allocation (25% Allocation Distribution) 2.9968% $209,067 2.2636% $157,916 0.2275% $15,871 13,2494% $924,322 8.7544% $610,736 27.4917% $1,917,912 Staff has coordinated with each Constitutional Officer to compile an estimated 13% or $900,000 for COVID-19 related expenses through September 30', 2020. This category will not require the execution of subrecipient agreements, as the Constitutional Officers are part of the County's financial operations. Any necessary allocations to Constitutional Officers will be made via budget amendments as necessary. BCC Denartments Board of County Commissioner (BCC) expenses through September 30' are expected to total approximately $1,400,000 or 20% of the initial allocation. These costs include payroll expenses, IT purchases necessary to facilitate remote working capabilities, PPE, disinfectant of County facilities, and COVID-19 related educational campaigns. Additional allocations will be provided via budget amendment as necessary for these expenses. Health Deuartment The Health Department has incurred significant costs related to COVID-19, and is in need of additional positions and resources to combat local outbreaks. Although the Health Department may receive CARES Act funding directly from other agencies, there is significant uncertainty on when these funds will be received as well as whether the funds will be sufficient to adequately position the Health Department to respond to the current pandemic as necessary. Testers, Contact Tracers, Health Educators, IT/Purchasing support, and Information Clerks are being proposed as part of the $500,000 or 7.1% of the initial allocation to be granted to the Health Department. Additional expenses include supplies necessary to carry out contact tracing such as computer hardware, as well as an allocation of some existing staff members reassigned to COVID-19 related activities. Additional funding needs are anticipated for the period following September 30a`. Other Healthcare Providers Funding may be necessary for similar healthcare expenses associated with COVID-19 such as COVID-19 testing, serological testing, PPE, etc. provided by other local healthcare organizations. An allocation of $200,000, or 2.9% has been provided for this purpose. County staff has coordinated with Cleveland Clinic to provide additional rapid testing for first responders and essential infrastructure workers with an initial allocation of $100,000 for this purpose. An additional $100,000 remains available for community testing as needed. Staff is continuing to coordinate with other agencies to determine the scope of the needs as well as the best manner in which to provide additional testing resources. State Agencies Staff anticipates some level of expenses have, or will be incurred by State Agencies (e.g. Court System) currently funded by the County and is proposing $100,000, or 1.4% be set aside to cover those costs. Any such allocations would be accomplished via budget amendment for State Agencies. Communitv Assistance As outlined in the County's fimding agreement with FDEM, expenses associated with the provision of economic support in connection with the COVID-19 public health emergency are deemed eligible. The Board approved an allocation of $2,000,000 or approximately 28.6% of the initial allocation towards programs benefiting the local community and small businesses. Economic Development The Board approved an allocation of $500,000 out of the total $2 million from the Community Assistance Category to Economic Development. Staff proposes to allocate these funds as detailed below. • Small Business COVID-19 Recovery Grant — Program administered by the Small Business Development Center (SBDC) at IRSC with oversight by County staff to provide one-time grants of up to $5,000 to qualifying small businesses (no more than 25 full time equivalent positions) that serve the hospitality industry, tourism and travel. Businesses must be locally or independently owned, occupy commercial space in Indian River County, along with other minimum requirements. The SBDC proposes to administer this program for the County at no cost. Under this arrangement, the County would provide payments directly to businesses once they have been vetted by SBDC. Therefore, a subrecipient agreement will not be needed here, but rather an agreement covering the administrative services to be provided by SBDC. Allocation - $250,000 • COVID-19 Workforce Develoument Program — Funding provided to Career Source Research Coast for three programs shown below in the total amount of $250,000 o On the Job Training Program ($150,000) — provided to eligible businesses to hire and train displaced and/or dislocated workers resulting from COVID-19. Grant amounts of up to $5,000 (3-10 current full time employees), $7,500 (11-25 employees) and $10,000 (26-50 employees) o Layoff Aversion/Rapid Response Program ($50,000) — grants provided to employers to retain employees by preventing or minimising potential layoffs and business closures due to COVED-19. Grant amounts of up to $5,000 for businesses that retain 3-10 full time employees, $7,500 to retain 11-25 employees, and $10,000 to retain 26-50 employees o Layoff Aversion/Incumbent Worker Training Program ($50,000) — Grants provided to retrain or upskill their workforce to avert layoffs and increase both affected workers' and businesses' competitiveness. Amounts up to $5,000 that retain and retrain 3-10 full time employees, $7,500 for 11-25 employees and $10,000 for 26-50 employees. Community Su000rt The Board has approved an allocation of $1.5 million for general community support to help residents negatively impacted economically by COVID-19. Staff proposes to allocate these dollars as detailed below: • United Wav (UWIRC) Fundin¢ Allocation - $975,000 total to be utilized primarily for: o Expenses to provide mental health service support for residents impacted by COVID-19, particularly telemedicine, cost of mental health visits, cost of behavioral health prescriptions, etc. o Expansion of broadband to assist with distance learning particularly in rural areas (e.g. Fellsmere) and technology needs for families and nonprofits for distance learning and teleworking. o Other needs as identified by the unmet needs committee, with approval of the County not to exceed 25% of total. Areas that have received funding from the UWIRC's COVID-19 Community Response Fund include; rental assistance, utility assistance, special supports for children, special supports for veterans, child care scholarships for those returning to work. • Food Suouort — Allocation of $400,000 to the Treasure Coast Food Bank to serve as the coordinating agency for food support to residents impacted by COVID-19. The Treasure Coast Food Bank will serve as the primary food bank for this program while providing resources and assistance to food pantries, food for the homeless, and other food insecure populations. • Senior Resource Association — Allocation of $125,000 to provide support for food delivery service to residents, including senior citizens and other vulnerable populations through existing programs such as meals on wheels and the grocery shopping assistance program implemented for COVID-19. Summary The above -mentioned spending plan may need adjustments based upon actual expenses, experience and uptake of programs proposed above. Any allocation changes will be presented to the Board of County Commissioners at a future meeting. The allocation plan above applies to the initial 25% disbursement of CARES Act funds from the State of Florida. Staff plans to update the Board on the second phase of COVID-19 related expenditures upon receipt of any further information regarding the remaining 75% allocation of $20,928,999. At that time, additional programs or costs may be considered for funding, as appropriate. Funding Agency Program Amount Small Business Development Small Business COVID-19 Recovery Grant $250,000 Center at IRSC On the Job Training Program $150,000 Career Source Research Layoff Aversion Rapid Response Program $50,000 Coast" Layoff Aversion/Incumbent Worker Training $50,000 Program Mental Health, Broadband and technology United Way of IRC needs to support distance learning, other $975,000 COVID-19 unmet needs (NTE 25%) Food support programs including food banks, Treasure Coast Food Bank food pantries, food for the homeless and other $400,000 insecure populations Senior Resource Association Meals on Wheels, and grocery shopping $125,000 assistance for seniors and vulnerable population *A subrecipient agreement will not be needed here, but rather an agreement that covers the administrative services to be provided by SBDC for this program. **Staff recommends that flexibility be allowed to reallocate funding between the individual programs provided by Career Source to adjust to demand for various programs as needed with staff approval. 11 4 ulul_ 01 : $ Staff recommends that the Board of County Commissioners approve the recommended program allocations as detailed above. Staff recommends that the Board approve the attached subrecipient grant agreement in form and authorize staff to prepare agreements with the agencies in the amounts shown in the table above for the initial 25% allocation and authorize the Chairman to execute such agreements after review by the County Attorney. Staff also recommends that the Board authorize the County attorney to develop an agreement with the SBDC to cover the administrative services associated with the Small Business COVID-19 Recovery Grant program and authorize the Chairman to execute the agreement. Staff further recommends that the Board authorize the Chairman to execute subrecipient agreements with each of the municipalities in the amounts listed above once the respective municipality's spending plan has been reviewed and approved by County staff for compliance with CARES Act guidance.