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2020, 08-04 special pm mtg
AGENDA CITY OF SPOKANE VALLEY SPECIAL COUNCIL MEETING Tuesday,August 4, 2020 2:45 p.m. SPOKANE VALLEY CITY HALL COUNCIL CHAMBERS 10210 E Sprague Avenue HELD REMOTELY VIA ZOOM (Please Silence Your Cell Phones During the Meeting) NOTE: In response to Governor Inslee's March 24, 2020 Proclamation concerning our recent State of Emergency, which waives and suspends the requirement to hold in-person meetings and provides options for the public to attend remotely, all meeting guidelines contained in the Governance Manual are hereby superseded until the Governor's order has been rescinded or amended. Therefore, effective immediately and until further notice, a live feed of the meeting will be available on our website. Public comments will only be accepted for those items noted on the agenda as "public comment opportunity," will be accepted via the following links, and must be received by 4:00 pm the day of the meeting. • Sign tip to Provide Oral Public Comment at the Meeting via Calling-In • Submit Written Public Comment Prior to the Meeting • Join the Zoom Meeting Call to Order by Mayor Wick ROLL CALL: ACTION ITEM: 1. Motion Consideration: Agreement with Valley Chamber for CARES Small Business Allocations—Erik Lamb, Chelsie Taylor [public comment opportunity] ADJOURN Special Meeting Agenda:August 4,2020 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: August 4, 2020 Department Director Approval: Check all that apply: CI consent El old business 111 new business 111 public hearing Li information LIII admin. report E. pending legislation El executive session AGENDA ITEM TITLE: Motion Consideration Approval of Agreement with Valley Chamber of Commerce to administer the small business and nonprofit CARES grant program GOVERNING LEGISLATION: Section 601(a) of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (see 42 U.S.C. § 801) PREVIOUS COUNCIL ACTION TAKEN: At the June 23, 2020 meeting, Council heard from a variety of organizations within the City regarding the impacts they have seen from the COVID-19 pandemic. At the July 7, 2020 meeting, City Council heard an administrative report on CARES funding options. At the July 14, 2020 meeting, City Council provided consensus for staff to proceed to develop and identify programs to carry out the distribution of CARES funds as indicated by City Council. At the July 28, 2020, meeting, City Council heard an administrative report on the proposed agreement. BACKGROUND: General Program Information: In prior meetings, staff have provided a detailed update on the CARES Act funding package for Coronavirus Relief Funds (CRF) that the City received. The City was awarded $2,901,600 under the CRF program passed through the state. In order to access the funds, the City entered into a grant agreement with the Washington State Department of Commerce. The grant operates on a reimbursement basis, which means that the City must first expend the funds and request reimbursement after. The funds may only be used for costs incurred by local governments in response to the COVID-19 public health emergency during the period of March 1, 2020 through October 31, 2020. Eligible Costs: In prior meetings, City Council identified a desire to distribute a large portion of CRF funds to a small business and nonprofit grant program. At the July 28, 2020, meeting, City Council agreed to remove the $75,000 for Phase 4/Hospitality purposes from the small business and nonprofit grant program and to have the City run a media campaign with the funds. Accordingly, the total distribution for the small business and nonprofit grant program is $1,241,138, which was allocated as follows: $829,498 for small businesses and $411,640 for nonprofits, City Council agreed upon the following criteria applicable to all entities: 18 or fewer employees and up to $7,158 per entity. Based on the criteria, the program will provide awards to approximately 173 entities. Accordingly, staff determined that it would be best to contract with an outside entity to administer the small business/nonprofit program given the large number of entities, applications, and awards that have to be processed in a very short period of time. Staff contacted Greater Spokane, Incorporated and the Valley Chamber of Commerce to discuss the program they had put together to administer the Spokane County small business/nonprofit grant program. After discussions with both entities, staff recommend contracting with the Valley Chamber of Commerce to administer the City's program, as it already has an established program that will allow the City to "piggyback" on it, thereby cutting down time for the City and applicants and making it more efficient to get funds out into the community. The anticipated program will operate similar to the Spokane County program as follows: - Valley Chamber is contracting with Innovia to provide the application and data-management software. - Through the Spokane County program, entities will provide the number of FTEs as well as zip code for their business location. The City may utilize this to consider any entity not awarded funds by Spokane County for possible City funds. -The Valley Chamber will open the City program for a two-week application period, beginning the week of August 10 and running until August 24. This timing immediately follows the Spokane County application process. - With the amount allocated by City Council, the City can fund 173 entities (subject to reductions for program administration costs, discussed below). However, staff anticipates there will be significantly more applicants than amount available. Accordingly, the Valley Chamber has proposed, and staff agrees, that a "lottery" system with a pure random draw is the best method for selecting applicants in each of the three categories. - Once the lottery results are determined, Valley Chamber staff will provide a review of each of the selected entity to confirm all requirements are met. This is anticipated to take 10-14 days. At this time, staff have identified the following criteria for awards: 1. 18 or fewer FTEs; 2. Business has a current Spokane Valley business license; 3. Minimum annual budget/revenues of $10,000; 4. Expenditures incurred to date —determines whether they will receive full award; 5. Meets Federal CARES Act requirements: a. The expense is connected to the COVID-19 emergency. b. The expense is "necessary." c. The expense is not filling a shortfall in government revenues. d. The expense is not funded through another budget line item, allotment or allocation, as of March 27, 2020. e. The expense would not exist without COVID-19 or would be for a "substantially different" purpose. 6. For small businesses — Sole proprietors and independent contractors are acceptable provided that the business they are asking funds for is their primary source of income. 7. For nonprofits — 501(c)(3) entities only. - Contract/Award process —Innovia will distribute funds. Award letters are sent concurrently with the disbursement of funds. - Once review is complete, awards will be distributed. Staff estimates awards would likely be distributed beginning in mid-September. Staff have been negotiating costs for administration. At the July 28, 2020 meeting, City Council agreed it desired the City to run a media campaign regarding the program to maximize the number of recipients. Accordingly, the costs are proposed as 4.5% of the total awards amount. These costs will pay for Valley Chamber staff time and costs for utilizing Innovia for its software and database systems. At 4.5%, the costs for administration would be $55,851.21. As indicated in prior meetings, these costs will come from the $1,241,138 allocated to this program, leaving a total of $1,185,286.79 for distribution, With these costs, the total number of entities awarded full funds would be reduced from 173 entities to 166 entities. As evidenced by the timeline, in order to get this program established, staff and the Valley Chamber must begin immediately in finalizing applications, awarding documents, and working with Innovia to establish the appropriate Spokane Valley database. Accordingly, staff are requesting City Council approval to finalize and execute an agreement with the Valley Chamber to administer this program. OPTIONS: Motion to approve the Agreement and authorize the City Manager to finalize and execute the Agreement in substantially the form presented. RECOMMENDED ACTION OR MOTION: Move to approve the Agreement Between the City of Spokan Valley and the Greater Spokane Valley Chamber of Commerce to administer the City's CARES Act CRF Funding program, and authorize the City Manager to finalize and execute the Agreement in substantially the form presented. BUDGET/FINANCIAL IMPACTS: The City has been awarded $2,901,600 in CRF funds through the CARES Act that were passed down through Washington State. This grant is to be used on a reimbursement basis to address the impacts of the COVID-19 pandemic in the City. The grant may not be used for expenditures already included in the City's 2020 Budget. City Council has allocated $1,241,138 towards the small business/nonprofit/Phase 4/hospitality distribution. STAFF CONTACT: Chelsie Taylor, Finance Director, and Erik Lamb, Deputy City Attorney ATTACHMENTS: • City Council Distribution Amounts for CARES Funds from July 14, 2020 meeting, as modified at the July 28, 2020 meeting • Draft subrecipient agreement with Valley Chamber • CRF Program Guidelines • Coronavirus Relief Fund Frequently Asked Questions — July 8, 2020 C:\Users\CBainbridge\AppData\Local\Microsoft\Windows\INetCache\Content.OutloolA5QD1J840\ltern 6 City COVID19 Costs and Proposed Casts - Final Council Allocations CITY OF SPOKANE VALLEY, WA 8/3/2020 Summary of CRF Program Allocations LErogram/Purpose Amount Rental/Mortgage assistance 733,995 Utility assistance 259,429 Food security/insecurity 236,640 Small business grants (1) 829,498 Non-profit organization grants (1) 411,640 Phase 4/Hospitality - media campaign 75,000 School districts 135,281 Total allocations 2,681,483 City operational needs 220,117 Total CRF award to the City 2,901,600 CO Small business and non-profit organization grants Grant awards of up to $7,158 Maximum of 18 FTEs Notes: Initial allocations were made by Council at the July 9, 2020 meeting based upon recommendations from each Councilmember. At that meeting, Council decided to combine the rental and mortgage assistance into a single program and to earmark $75,000 of the small business grant allocation to go toward Phase 4/Hospitality business. At the July 28, 2020 meeting, Council decided to repurpose the $75,000 that had been allocated to Phase 4/Hospitality businesses under the small business grants to a media campaign for leisure travel in order to assist all of the hospitality businesses in Spokane Valley. Contract No. AGREEMENT BETWEEN THE CITY OF SPOKANE VALLEY AN]) Greater Spokane Valley Chamber of Commerce CARES ACT CORONA VIRUS RELIEF FUND GRANT THIS AGREEMENT is made by and between the City of Spokane Valley, a code City of the State of Washington, hereinafter "City" and Greater Spokane Valley Chamber of Commerce, hereinafter "Subrecipient,"jointly referred to as "Parties." WHEREAS, on March 17, 2020, the City of Spokane Valley City Council passed Resolution No. 20-005 declaring a public health emergency in Spokane Valley arising from the COVID-19 outbreak; and WHEREAS, Governor Inslee issued Proclamation 20-25, "Stay Home, Stay Healthy" on March 23, 2020, which prohibited all people in Washington State from leaving their homes or participating in social, spiritual, and recreational gatherings of any kind regardless of the number of participants, and all non-essential businesses in Washington State from conducting business, within the limitations therein; and WHEREAS, Governor Inslee issued Proclamation No. 20-25.3 on May 4, 2020, which established an initial four-phased approach to reopening Washington State; and WHEREAS, Governor Inslee issued Proclamation No. 20-25.4 on May 31, 2020, which creates a transition from"Stay Home, Stay Healthy"to"Safe Start, Stay Healthy"on a County by County basis; and WHEREAS, Spokane County is currently in Phase 2 of the phased reopening plan and many businesses located in Spokane Valley are open only with a limited capacity and/or reduced operations; and WHEREAS, disruptions to workers and small businesses are serious, as small businesses are the backbone of the City's economy, and provide the foundation of employment, services for the community, and revenue for cities and other public agencies to continue to provide essential services for the public welfare and benefit; and WHEREAS, the Spokane Valley City Council recognizes that one of its essential functions is to secure the health and welfare of Spokane Valley citizens; and WHEREAS, public resources are necessary to help many citizens and small businesses impacted by the COVID-I9 pandemic survive; and WHEREAS,Section 601(a)of the Social Security Act,as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") (Pli, 116-136), established the Coronavirus Relief Fund (the "Fund") and appropriated $150 billion under Title V of the CARES Act to the Fund to be used to make payments for specified uses to States and certain local governments; and WHEREAS, the Washington State allocation of Fund resources has been designated to reimburse certain additional local governments in the state for specified expenditures through contracts administered by the State Department of Commerce ("Commerce"); and WHEREAS, the City entered into an Interagency Agreement with Commerce regarding the Fund for the period March 1, 2020 through October 31, 2020, attached hereto as Exhibit B and incorporated herein (collectively all General Terms, Special Terms and Conditions, and Attachments, the "Commerce Agreement"); and CARES Act Subreciplent Agreement for Services(Valley Chamber) Page I of 9 Contract No. WHEREAS, the City Council of the City of Spokane Valley have allocated a portion of the City's CARES Act funds for small businesses and non-profit entities; and WHEREAS, the Subrecipient is a Washington non-profit corporation representing a coalition of businesses dedicated to economic development within the City of Spokane Valley; and WHEREAS,the Subrecipient's members and staff possess valuable skill, experience,and expertise. in helping community businesses; and WHEREAS, the City wishes to use the skill, experience, and expertise of the Subrecipient to, administer the application and distribution process for the City's program to distribute CARES Act funds. to those small businesses and non-profits that need such funds as a direct result of the COVID-19 pandemic. IN CONSIDERATION of the terms and conditions contained herein, the Parties agree as follows: L. Incorporation of Recitals/Exhibits. The recitals and referenced Exhibits are incorporated herein by this reference. 2. Scope of Services. Subrecipient shall provide all labor, services, and material to satisfactorily complete the Scope of Services, attached as Exhibit A. A. Administration. The City Manager or designee shall administer and be the primary contact for Subrecipient. Prior to commencement of work, Subrecipient shall contact the City Manager or designee to review the Scope of Services, schedule, and date of completion. Upon notice from the City Manager or designee, Subrecipient shall commence work, perform the requested tasks in the Scope of Services,stop work, and promptly cure any failure in performance under this Agreement. B. Representations. City has relied upon the qualifications of Subrecipient in entering into this Agreement. By execution of this Agreement, Subrecipient represents it possesses the ability, skill, and resources necessary to perform the work and is familiar with all current laws, rules, and regulations which reasonably relate to the Scope of Services. No substitutions of agreed-upon personnel shall be made without the prior written consent of City. Subrecipient represents that the compensation as stated in paragraph 4 is adequate and sufficient for the timely provision of all professional services required to complete the Scope of Services under this Agreement. Subrecipient shall be responsible for the technical accuracy of its services and documents resulting therefrom,and City shall not be responsible for discovering deficiencies therein. Subrecipient shall correct such deficiencies without additional compensation except to the extent such action is directly attributable to deficiencies in City-furnished information. C. Standard of Care. Subrecipient shall exercise the degree of skill and diligence normally employed by professional Subrecipients engaged in the same profession, and performing the same or similar services at the time such services are performed. D. Modifications. City may modify this Agreement and order changes in the work whenever necessary or advisable. Subrecipient will accept modifications when ordered in writing by the City Manager or designee, so long as the additional work is within the scope of Subrecipient's area of practice. Compensation for such modifications or changes shall be as mutually agreed between the CARES Act Subrecipient Agreement for Services(Valley Chamber) Page 2 of 9 Contract No. Parties. Subrecipient shall make such revisions in the work as are necessary to correct errors or omissions appearing therein when required to do so by City without additional compensation. E. 1. Commerce Agreement. The Parties agree that Subrecipient is and shall be a "subrecipient" for purposes of the Commerce Agreement. Subrecipient shall be subject to all requirements in the Commerce Agreement applicable to subrecipients and the funding under this Agreement, and agrees to comply with all such terms, including providing any documentation required by such terms and compliance and assistance in any and all audit requests related to this Agreement and the Commerce Agreement. All such terms are incorporated by reference herein. Pursuant to the Commerce Agreement, Subrecipient shall comply with 2 C.F.R. part 200, Subpart F, governing audit requirements for recipients of federal funding. 2. Federal Acknowledgement. Funds under this Agreement are made available and are subject to Section 601(a) of the Social Security Act, as amended by section 5001 of the CARES Act,and Title V and VI of the CARES Act. The Subrecipient agrees that any publications(written, visual, or sound) but excluding press releases, newsletters, and issue analyses, issued by the Subrecipient describing programs or projects funded in whole or in part with federal funds under this Agreement shall contain the following statements: "This project was supported by a grant awarded by the US Department of Treasury. Points of view in this document are those of the author and do not necessarily represent the official position or policies of the US Department of Treasury. Grant funds are administered by the Local Government Coronavirus Relief Fund through the Washington State Department of Commerce." 3. Term of Contract. This Agreement shall be in full force and effect upon execution and shall remain in effect until completion of all contractual requirements have been met as determined by City. Subrecipient shall complete its services by October 31, 2020, unless the time for performance is extended in writing by the Parties. Either Party may terminate this Agreement for material breach after providing the other Party with at least 10 days' prior notice and an opportunity to cure the breach. City may, in addition,terminate this Agreement for any reason by 10 days' written notice to Subrecipient, including but not limited to withdrawal of funding by Commerce. In the event of termination without breach, City shall pay Subrecipient for all services and distributions previously authorized and satisfactorily performed prior to the termination date. 4. Reimbursement Payments. A. Agreement Amount. City agrees to pay Subrecipient up to 4.5% (up to $55,851.21) of the total amount available for the City's Small Business and Nonprofit Financial Assistance Program (as of July 30, 2020, $1,241,138) for all services and distributions provided under this Agreement, as set forth in Exhibit A. Subrecipient shall not perform any extra, further, or additional services for which it will request additional compensation from City without a prior written agreement for such services and payment therefore. All such services and distributions are payable solely upon a reimbursement basis. B. Allowable Expenses. The Subrecipient may only be reimbursed for expenditures identified in the Scope of Services, attached as Exhibit A and incorporated by reference. The Snbrecipient's expenditures shall be documented by submittal to the City of invoices or other written documentation evidencing completion of the services identified in Exhibit A. In the event Subrecipient requests applications for determining distributions, it shall maintain and provide all applications as well. CARES Act Subrecipient Agreement for Services(Valiey Chamber) Page 3 of 9 Contract No. C. Unallowable Expenses. Subrecipient acknowledges that CARES Act funds cannot be used for the following expenses: payroll, salary, employee or owner compensation, capitalized equipment, travel, office equipment, and computer software, except as necessary for administration of this Agreement and distribution of fluids as part of the services identified herein and as necessary as a direct result of COVID-19. 5. Payment and Recapture. A. Payment Subrecipient shall be paid upon presentation of an invoice weekly along with any required certification (Exhibit A) to City, provided that all invoices shall be provided no later than October 21, 2020 to allow payments to be processed by October 31, 2020. Applications for payment shall be sent to the City Finance-Department at the below-stated address. City reserves the right to withhold payment under this Agreement for that portion of the work (if any) which is determined in the reasonable judgment of the City Manager or designee to be noncompliant with the Scope of Services,City standards,City Code, and federal or state standards. The Parties agree that in the event an expenditure is submitted that is ineligible for payment per Exhibit B, it shall not be reimbursed by Commerce or the City. B. Recapture In the event that Subrecipient fails to perform this Agreement in accordance with state laws, federal laws, and/or the terms of this Agreement, or if any reimbursement is later found to be in noncompliance with state laws, federal laws, and/or the terms of this Agreement due to Subrecipient's failure to comply with the terms of this Agreement and/or such laws, the City reserves the right to recapture fluids in an amount to compensate the City for noncompliance in addition to any other remedies available at law or in equity. Repayment by the Subrecipient of funds under this recapture provision shall occur within 60 days of written notice by the City. In the alternative the City may recapture such funds from payments due under this Agreement. 6. Notice. Notices other than applications for payment shall be given in writing as follows: TO THE CITY: TO TIIE SUBRECIPIENT: Name: Chelsie Taylor, Finance Director Name: Lance Beck Phone: (509) 720-5000 Phone: (509) 924-4994 Address: 10210 East Sprague Avenue Address: 1421 N. Meadowwood Ln., Suite 10 Spokane Valley, WA 99206 Liberty Lake, WA. 99019 7. Applicable Laws and Standards. The Parties, in the performance of this Agreement, agree to comply with all applicable federal, state, and local laws and regulations. Subrecipient warrants that its services shall conform to all federal, state, and local statutes and regulations. 8. Certification Regarding Debarment, Suspension, and Other Responsibility Matters — Primary Covered Transactions. A. By executing this Agreement, the Subrecipient certifies to the best of its knowledge and belief that it and its principals:. 1. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal department or agency; 2. Have not within a three-year period preceding this proposal been convicted of CARES Act Subrecipient Agreement for Services(Valley Chamber) Page 4 of 9 Contract No. or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state, or local) transaction or contract under a public transaction; violation of federal or state antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; 3. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (federal, state, or local) with commission of any of the offenses enumerated in paragraph (A)(2)of this certification; and 4. Have not within a three-year period preceding this application/proposal had one or more public transactions (federal, state, or local)terminated for cause or default. B. Where the prospective primary participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this Agreement, 9. Relationship of the Parties. It is understood and agreed that Subrecipient shall be an independent contractor and not the agent or employee of City, that City is interested in only the results to be achieved, and that the right to control the particular manner, method, and means in which the services are performed is solely within the discretion of Subrecipient. Any and all employees who provide services to City under this Agreement shall be deemed employees solely of Subrecipient. The Subrecipient shall be solely responsible for the conduct and actions of all its employees under this Agreement and any liability that may attach thereto. 10. Ownership of Documents. All drawings, plans, specifications, and other related documents prepared by Subrecipient under this Agreement arc and shall be the property of City,and may be subject to disclosure pursuant to chapter 42.56 RCW or other applicable public record laws. The written, graphic, mapped, photographic, or visual documents prepared by Subrecipient under this Agreement shall, unless otherwise provided, be deemed the property of City. City shall be permitted to retain these documents, including reproducible camera-ready originals of reports,reproduction quality mylars of maps,and copies in the form of computer files, for the City's use. City shall have unrestricted authority to publish, disclose, distribute, and otherwise use, in whole Of in part,any reports, data, drawings, images, or other material prepared under this Agreement,provided that Subrecipient shall have no liability for the use of Subrecipient's work product outside of the scope of its intended purpose. 11. Records. Subrecipient shall retain all applicable records for a period of six years following the date of final payment. The City or State Auditor or any of their representatives shall have full access to and the right to examine during normal business hours all of Subrecipient's records with respect to all matters covered in this Agreement. Such representatives shall be permitted to audit, examine, make excerpts ,or transcripts front such records, and to make audits of all contracts, invoices, materials, payrolls, and record of matters covered by this Agreement for a period of six years from the date final payment is made hereunder. 12. Indemnification and Hold Harmless. Subrecipient shall, at its sole expense, defend, indemnify, and hold harmless City and its officers, agents, and employees, from any and all claims, actions, suits, liability, loss, costs, attorney's fees, costs of litigation, expenses, injuries, and damages of any nature whatsoever relating to or arising out of the wrongful or negligent acts, errors, or omissions in the services provided by Subrecipient, Subrecipient's agents, subcontractors, further subrecipients, and employees to the fullest extent permitted by law, subject only to the limitations provided below. CARES Act Subrecipient Agreement for Services(Valley Chamber) Page 5 of 9 Contract No. However, should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Subrecipient and the City, its officers, officials, employees, and volunteers, the Subrecipient's liability, including the duty and cost to defend, hereunder shall be only to the extent of the Subrecipient's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Subrecipient's waiver of immunity under Industrial insurance, Title 51, RCW, solely for the purpose of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. Pursuant to the Commerce Agreement, Commerce and the State of Washington shall not be liable for any claims or damages arising from Subrecipient's performance under this Agreement. 13. Waiver. No officer, employee,agent,or other individual acting on behalf of either Party has the power, right,or authority to waive any of the conditions or provisions of this Agreement. A waiver in one instance shall not be held to be a waiver of any other subsequent breach or nonperformance. All remedies afforded in this Agreement or by law shall be taken and construed as cumulative and in addition to every other remedy provided herein or by law. Failure of either Party to enforce at any time any of the provisions of this Agreement or to require at any time performance by the other Party of any provision hereof shall in no way be construed to be a waiver of such provisions nor shall it affect the validity of this Agreement or any part thereof, 14. Assignment and Delegation. Neither Party may assign, transfer, or delegate any or all of the responsibilities of this Agreement or the benefits received hereunder without prior written consent of the other Party. 15. Subcontracts. Except as otherwise provided herein, Subrecipient shall not enter into subcontracts for any of the work contemplated under this Agreement without obtaining prior written approval of City. 16. Confidentiality. Subrecipient may, from time-to-time, receive information which is deemed by City to be confidential. Subrecipient shall not. disclose such information without the prior express written consent of City or upon order of a court of competent jurisdiction. 17. Jurisdiction and Venue. This Agreement is entered into in Spokane County, Washington. Disputes between City and Subrecipient shall be resolved in the Superior Court of the State of Washington in Spokane County. Notwithstanding the foregoing, Subrecipient agrees that it may, at City's request, be joined as a party in any arbitration proceeding between City and any third party that includes a claim or claims that arise out of, or that are related to Subrecipient's services under this Agreement. Subrecipient further agrees that an arbitrator's decision therein shall be final and binding on Subrecipient and that judgment may be entered upon it in any court having jurisdiction thereof. 18.. Cost and Attorney's Fees. The prevailing party in any litigation or arbitration arising out of this Agreement shall be entitled to its attorney's fees and costs of such litigation (including expert witness fees). 19. Entire Agreement. This written Agreement constitutes the entire and complete agreement between the Parties and supersedes any prior oral or written agreements. This Agreement may not be changed, modified, or altered except in writing signed by the Parties hereto. 20. Anti-kickback. No officer or employee of City, having the power or duty to perform an official act or action related to this Agreement shall have or acquire any interest in this Agreement, or have solicited, accepted, or granted a present or.future gift, favor, service, or other thing of value from any person with an CARES Act Subrecipient Agreement for Services(Valley(hamber) Page 6 of 9 Contract:No. interest in this Agreement. 21. Assurance of Compliance with Applicable Federal Law. During the performance of this Agreement, the Subrecipient, for itself, its assignees, and successors in interest agrees as follows: A. Compliance with Regulations: The Subrecipient shall comply with the federal laws set forth in this Section ("Acts and the Regulations") relative to non-discrimination in federally-assisted programs, as they may be amended from time-to-time, which are herein incorporated by reference and made a part of this Agreement. B. Non-discrimination: The Subrecipient, with regard to the work performed by it during this Agreement, shall not discriminate on the grounds of race, color, or national origin in the selection and retention of subcontractors, including procurements of materials and leases of equipment. The Subrecipient shall not participate directly or indirectly in the discrimination prohibited by the Acts and the Regulations, including employment practices when the contract covers any activity,project, or program set forth in Appendix B of 49 CFR Part 21, C. Solicitations for Subcontracts,Including Procurements of Materials and Equipment: In all solicitations,either by competitive bidding, or negotiation made by the Subrecipient for work to be performed under a subcontract, including procurements of materials, or leases of equipment, each potential subcontractor or supplier shall be notified by the Subrecipient of the Subrecipient's obligations under this Agreement and the Acts and the Regulations relative to non-discrimination on the grounds of race, color, or national origin. D. Information and Reports: The Subrecipient shall provide all information and reports required by the Acts, the Regulations, and directives issued pursuant thereto, and shall permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by the City or Commerce to be pertinent to ascertain compliance with such Acts, Regulations, and instructions. Where any information required of Subrecipient is in the, exclusive possession of another who fails or refuses to furnish the information, the Subrecipient shall so certify to the City or Commerce, as appropriate, and shall set forth what efforts it has made to obtain the information. E. Sanctions for Noncompliance: In the event of a Subrecipient's noncompliance with the non-discrimination provisions of this Agreement,the City will impose such contract sanctions as it or Commerce may determine to be appropriate, including, but not limited to: I. withholding payments to the Subrecipient under the Agreement until the Subrecipient complies; and/or 2. cancelling, terminating, or suspending the Agreement, in whole or in part. F. Incorporation of Provisions: The Subrecipient shall include the provisions of paragraphs (21)(A) through (F) in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Acts, the Regulations and directives issued pursuant thereto. The Subrecipient shall take action with respect to any subcontract or procurement as the City or Commerce may direct as a means of enforcing such provisions, including sanctions for noncompliance. Provided, that if the Subrecipient becomes involved in, or is threatened with litigation by a subcontractor or supplier because of such direction, the Subrecipient may request that the City enter into any litigation to protect the interests of the City. In addition,the Subrecipient may request the United States to enter into the litigation to protect the interests of the United States. CARES Act Subrecipient Agreement for Services(Valley Chamber) Page 7 of 9 Contract No. G. Pertinent Non-Discrimination Authorities: During the performance of this Agreement, the Subrecipient agrees to comply with all applicable non-discrimination statutes and authorities; including but not limited to: Title VI of the Civil Rights Act of 1964 (42 U.S.C. §2000d et seq., 78 stat. 252),(prohibits discrimination on the basis of race, color, national origin); and 49 CFR Part 21; The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. §4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects); Federal-Aid Highway Act of 1973, (23 U.S.C. §324 et seq.), (prohibits discrimination on the basis of sex); Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. §794 et seq.), as amended, (prohibits discrimination on the basis of disability); and 49 CFR Part 27; The Age Discrimination Act of 1975, as amended, (42 U.S.C. §6101 et seq.), (prohibits discrimination on the basis of age); Airport and Airway Improvement Act of 1982, (49 USC §471, Section 47123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex); The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964,. The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms"programs or activities"to include all of the programs or activities of the Federal- aid recipients, sub-recipients and contractors, whether such programs or activities are Federally funded or not); Titles IT and 111 of the Americans with Disabilities Act, which prohibit discrimination on the basis of disability in the operation of public entities, public and private transportation systems,places of public accommodation, and certain testing entities(42 U.S.0 §§12131- 12189)as implemented by Department of Transportation regulations at 49 C.F.R. parts 37 and 38; The Federal Aviation Administration's Non-discrimination statute (49 U.S.C. §47123) (prohibits discrimination on the basis of race, color, national origin, and sex); Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, which ensures Non-discrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations; Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of Limited English proficiency (LEP). To ensure compliance with Title VI,you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100); CARES Act Subrecipient Agreement for Services(Valley Chamber) Page 8 of 9 Contract No. Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities(20 U.S.C. §168I el seq.); Omnibus Crime Control and Safe streets Act of 1968; and The Department of Justice Non-Discrimination Regulations, 28 C.F.R. part 42, Subparts C, D, E, and G, and 28 C.F.R. Part 35 and 39. 22. Business ReEistration. Prior to commencement of work under this Agt•eement, Subrecipient shall register with the City as a business if it has not already done so. 23. Severability. If any section, sentence, clause, or phrase of this Agreement should be held,to be invalid for any reason by a court of competent jurisdiction, such invalidity shall not affect the validity of any other section, sentence, clause, or phrase of this Agreement. 24. Exhibits. Exhibits attached and incorporated into this Agreement are: A. Scope of Services and Certification Form B. Commerce Agreement, including all General Terms, Special Terms, and Attachments The Parties have executed this Agreement this day of August, 2020. CITY OF SPOKANE VALLEY Subrecipient: Mark Calhoun, City Manager By: Its: Authorized Representative APPROVE]) AS TO FORM: Office of the City Attorney CARES Act Subrecipient Agreement for Services(Valley Chamber) Page 9 of 9 EXHIBIT A SCOPE OF SERVICES 'Ike Greater Spokane Valley Chamber of Commerce (Chamber) shall administer the application process for the City of Spokane Valley's Small Business and Nonprofit CARES Act Financial Assistance Program fbr small businesses and nonprofit organizations located and operating within the City of Spokane Valley that are directly impacted by the COVID-19 pandemic from March 1,2020 through October 31, 2020. °Ilie Chamber shall: . Establish a grant review committee with members from the Chamber and as necessary Greater Spokane Incorporated, Innovia Foundation, and the City; Provide application, eligibility, and selection processes with appropriate internal controls to prevent misuse of funds. Selection shall occur on a lottery basis. The pool of eligible entities shall consist of all eligible entities that apply during the City's application period, as well as from any eligible entities that applied to the similar Spokane County financial assistance program,known as the OpenTagether Small Business and Non-Profit Grant, that were not awarded funds by Spokane County; 3. Review applications using the -following eligibility criteria: a. 18 or fewer PTEs as of llatch 1, 2020; b. Business has a current Spokane Valley business license and provides substantial services in the City of Spokane Valley; c. Minimum annual budget/revenues of$10,000; d. Expenditures incurred to date determines whether they will receive full award; e. Meets Federal CARES Act requirements: i. The expense is connected to the COVID-19 emergency. ii. The expense is "necessary." iii. The expense is not filling a shortfall in government revenues, iv. The expense is not funded through another budget line item, allotment or allocation; as of March 27, 2020. v.The expense would not exist without C1)V1D-1 9 or would be for a"substantially different"purpose, All entities shall be subject to compliance with applicable federal requirements, including any applicable terms pursuant to the Commerce Agreement,"Coronavirus Relief Funds for Local Governments 17,ligible Cost Test,""WA State Department of Commerce's Coronavirus Relief Funds for 1_,ocal Governments Program Guidelines,"and "Coronavirus Relief Fund Frequently Asked questions" (dated July 8, 2020, or the most current version if a later update is provided). f. For small businesses—Sole proprietors and independent contractors are okay, provided that the business they are asking funds for is their primary source of income. g. For nonprofits— Must be a"501(c)(3)" using a federally recognized fiscal sponsor and provide proof of such status. "501(e)3 Churches or religious organizations are NOT eligible, except for those with specific programs with direct service offered to general public without regard to faith, affiliation, religious belief or practice, and that are provided in a non-discriminatory way that benefits the larger community." h. Grant awards up to$7,158.00 per entity.This amount may be limited based upon actual COVID-19 related expenses or the receipt of other federal funding for the same purposes. Additional criteria may be necessary as part of the application and certification process. Chamber shall work with City to create an appropriate application. Prior to distribution, the application shall be subject to written approval by the City. 4. Provide review of all entities selected in the lottery process. Review shall include confirming the accuracy and adequacy of all application materials to ensure and confirm all eligibility requirements are met, 5. Provide and retain all necessary recordkeeping required by the Washington State Department of Commerce, State Auditor, and the City for the period of at least 6 years. 6. Chamber is authorized to subcontract with Innovia Foundation for all online application hosting, processing, software, and database services. Chamber shall ensure that Innovia Foundation maintains, appropriate record keeping and internal controls to prevent misuse of funds. 7. Provide a website to host information regarding the application process, including applicable "Q&As", and links to the online application. Such website may be linked through the Valley Chamber - - - - website to Innovia application and processing systems. 8. Chamber is authorized to subcontract with Innovia Foundation to provide fund disbursements. Innovia Foundation shall provide an "acceptance letter" providing terms of compliance for all entities awarded funds at the time of disbursement. The"acceptance letter" shall be subject to written approval by the City. Chamber shall ensure Innovia Foundation maintains appropriate record keeping and internal controls to prevent misuse of funds. 9. Chamber shall be responsible for all payments to Innovia Foundation, with the exception of grant awards., City shall provide necessary funds for grant awards directly to Innovia Foundation. 10. Chamber shall provide awards as soon as is reasonably feasible after providing an application and review period. Awards shall be made no later than September 30, 2020. Compensation: Chamber shall be compensated in an amount up to 4.5% (up to $55,851.21) of the total amount available for the City's Small Business and Nonprofit Financial Assistance Program (as of July 30, 2020, $1„241,138). All compensation shall be on a reimbursement basis and Chamber shall provide appropriate documentation i'egarding expenditui-cs inctit'red that irc necessary to adttqinister the pi-ograni and services identified in this Agret;ment, v1/4iit5-1-fiflgt()r1 -,Adf(, ).), 001M111 )1 (11:)artriletlt of ,...... ,, - ..,,, I. 111111111 , 1 111 84:us 1 itt m loolloollon 1000 III, 1110.10 lei 1111;11;11111,1 ge, 1 1111111 1111111 „0111.001 111111 1 1.01 1 .0 11 11,11,111,111, 1100 1 1 1.11111 011 11 1111111111111111 „Hill fit.0 1 1 111117111 1111Huri11111 0000 1 ,0001 ,11111111 1 111„, 1.0 0000 1.11 11111111111111111 1111111101111 1111: NM Oil1111 1111111 111111 111111 111111111111111111 10411111111 111111111111111 11111111111111 11111111 111111111111111p IIVI om 00001 lo dloo • , loolli . on 0000, 1111111, noll ,40 11,111i IIIIIIIIIII101 1 111111111 11111111111111I 1111 P.'. 1111111 holoy olooll 1100 11111111 loni 1111111 10111111111111111111 00040 111111,11 11111111 'mu , ,., CARES Act Funds for Locai Governments in Washington State Administered by the Department of Commerce Local Government Division P.0, Box 42525 Olympia, WA 98504-2525 (Dated 5-18-2020) ont. ct Inf r ti n Mailing] Street Address. Washington State Department of Commerce Local Government Division PO Box 42525 1011 Plum Street SE Olympia, WA 98504-2525 Pro_gram Leadership: Tony Hanson Tina Hochwender Deputy Assistant Director Managing Director Community Capital Facilities Unit Community Assistance and Research Unit 360-725-3005 360-725-3087 Ton .Hanson commerce.wa. ov Tina.Hochwendercommerce.wa.qoy Commerce Leadership: Lisa Brown, Ph.D. Mark Barkley Director Assistant Director Local Government Division This publication is available in an alternative format upon request. Events sponsored by Commerce are accessible to persons with disabilities. Accommodations may he arranged with a minimum of 10 working days'notice by calling 360-725-3087 C ironavir, us Relief GF r cis (C,A . ) for iLoemll Govern, Pr, iseihnes TABL..E OF CONTENTS General Information..................................................................... 'l 1 . Source of Funds___________________________ 1 2. Allocation Formula .......................................................... 1 3. Period of Performance .................................................... 1 4. Intended Use................................................................... 1 5. Eligible Costs .................................................................. 2 6. Ineligible Costs ............................................................... 4 7. Eligible Cost Test ............................................................ 4 8. Cost Reirrtibursements..................................................... 5 Process & Procedure to Obtain Funds ......... 7 1 . Award Letter..................................................................... 7 2. Working Papers .................................... ......................... 7 3. Contract .......................................................................... 7 4, Reimbursement Requests.......________..... ................. 8 5. A-19 Certification and Activity Report..................... 8 General infor aton 1. Source of Funds You have been awarded funds through the state's Coronavirus Relief Funds (CRF). The funds are available under section 601(a) of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). Your grant is funded entirely through the federal stimulus funding under the CARES Act provided by the U.S. Department of Treasury (US Treasury) to the Governor via the Office of Financial Management (OFM). On April 27, 2020 Governor Inslee announced the award of nearly $300 million to local governments in CRF from the state's allocation of the CARES Act funding. 2. Allocation Formula OFM developed the allocation methodology and determined the jurisdiction amounts. The allocations were based on 2019 population estimates for each jurisdiction. Funds will be provided to cities and counties with populations under 500,000 that were ineligible to receive direct funding under the CARES Act. Each county will receive a minimum distribution of $250,000 and each city will receive a minimum distribution of$25,000, Cities and counties with populations over 500,000 did not receive a direct allocation from the state. Instead these jurisdictions received a direct allocation from the US Treasury (i.e. city of Seattle, King Co., Pierce Co., Snohomish Co., etc.). For a complete list of cities and counties and their allocation's, click here. 3. Period of Performance The Coronavirus Relief Funds may only be used for costs incurred by local governments in response to the COVID-19 public health emergency during the period of March 1, 2020 thru October 31, 2020. The US Treasury's Guidance, provides an end date of December 30, 2020. This is the end date in which the state must have reimbursed all "recipients of the funds" (grantees)their costs incurred in response to the COVID-19 emergency. In order to allow time for Commerce to process final payments and conduct contract closeouts; and for OFM to fully utilize any unspent funds before they expire, expenditures are only being accepted on costs incurred through October 31, 2020. All final requests for reimbursement must be submitted no later than November 15, 2020. 4. Intended Use Under the CARES Act, the Coronavirus Relief Funds (CRF) may 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); AND 2. Are 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 local government. The "most recently approved" budget refers to the enacted budget for the relevant fiscal period for the particular government. A cost meets this requirement if: a) The cost cannot lawfully be funded using a line item, allotment, or allocation within that budget; OR b) The cost is for a substantially different use from any expected use of funds in such a line item, allotment, or allocation. 3. 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. 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 use of these funds are very broad and flexible, and can be used for both operating and capital expenditures. If funds are being used for capital expenditures such as acquisition of real property or construction / renovation costs, please contact us immediately. We will provide you with further information and guidance. Utilizing CRF for these purposes will require additional Federal and state provisions being applied to the project such as: • All projects must be reviewed under a Federal Section 106 review for archaeological and cultural resources if the project: acquires property, disturbs ground, and/or involves structures more than 50 years old. Grantees must submit documentation to the project manager when the review is complete. Section 106 supersedes the Governor's Executive Order 05-05 review. • Construction / renovation projects may be required to meet high-performance building standards and document they have entered the state's LEED certification process. • Construction / renovation projects will be required to follow Federal Davis Bacon and state prevailing wage laws, rules, and regulations. Additionally, grantees must ensure all capital expenditures are only for costs incurred through the limited timeframe of March 1, 2020 thru October 31, 2020, 5. Eligible costs There are six (6) primary eligible cost categories. These cost categories and their eligible cost sub- categories are as follows: 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 COVVD-19 testing, including serological testing. • Emergency medical response expenses, including emergency medical transportation, related to COVID-19. 2 • Expenses for establishing and operating public telemedicine capabilities for COVID-19-related treatment. 2. Public health expenses such as: • Expenses for communication and enforcement by State, territorial, local, and Tribal governments of public health orders related to COVID-19. • Expenses for acquisition and distribution of medical and protective supplies, including sanitizing products and personal protective equipment, for medical personnel, police officers, social workers, child protection services, and child welfare officers, direct service providers for older adults and individuals with disabilities in community settings, and other public health or safety workers in connection with the COVID-19 public health emergency. • Expenses for disinfection of public areas and other facilities, e.g,, nursing homes, in response to the COVID-19 public health emergency. • Expenses for technical assistance to local authorities or other entities on mitigation of COVID-19-related threats to public health and safety. • Expenses for public safety measures undertaken in response to COVID-19. • Expenses for quarantining individuals. 3. Payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. 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. 3 6. Any other COVID-19-related expenses reasonably necessary to the function of government that satisfy the Fund's eligibility criteria. 6. Ineligible costs Non-allowable expenditures include, but are not limited to: 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. 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. 7. Eligible cost test Grantees are charged with determining whether or not an expense is eligible based on the US Treasury's Guidance and as provided in the grantee's contract scope of work with Commerce. To assist grantees with this determination, Commerce has developed an eligibility cost test. This test gives each grantee full authority to make the appropriate call for each circumstance. TEST— if all responses for the particular incurred cost are "true"for all five statements below, then a jurisdiction can feel confident the cost is eligible: 1. The expense is connected to the COVID-19 emergency. 2. The expense is "necessary", 3. The expense is not filling a short fall in government revenues. 4. The expense is not funded thru another budget line item, allotment or allocation, as of March 27, 2020. 5. The expense wouldn't exist without COVID-19 OR would be for a "substantially different" purpose. It is the responsibility of each grantee to define "necessary" or"substantially different", giving the grantee the authority and flexibility to make their own determination. Additional consideration —The intent of these funds is to help jurisdictions cover the immediate impacts of the COVID-19 emergency. Both direct costs to the jurisdiction and costs to their communities. There are many possible eligible costs. Many costs are clearly eligible and others are in more of a grey area. One could probably justify some of the "grey area" costs based on the test, but are they directly addressing the immediate impacts? Possibly not. in these situations it may be safer and more appropriate to utilize the funds in one of the many other eligible cost categories that more clearly meet the intent of the funds. Again, each grantee has the full authority to make the final call based on their circumstances and justification. 4 8. Cost reimbursement Funds are available on a reimbursement basis only, and cannot be advanced under any circumstances. If funds are being used for the acquisition of real property or construction / renovation costs, please contact us immediately. Reimbursable costs are those that a Grantee has already incurred. We may only reimburse grantees for eligible costs incurred in response to the COVID-19 public health emergency during the period of March 1, 2020 thru October 31, 2020. Final Date of Reimbursements In order to ensure all awardees and their costs incurred in response to the COVID-19 emergency are paid out by December 30, 2020 per the US Treasury's Guidance, expenditures are only being accepted on costs incurred through October 31, 2020. All final requests for reimbursement must be submitted no later than November 15, 2020. Grantees will not be required to submit a proposed budget prior to contract execution. Grantees will have the discretion and flexibility to determine where these funds may best serve their communities. Each grantee will determine eligible costs to submit for reimbursement. For reporting purposes, expenditures must be tracked at the sub-category level for the six (6) primary eligible cost categories, as follows: 1, Medical Expenses A. Public hospitals, clinics, and similar facilities B. Temporary public medical facilities & increased capacity C. COVID-19 testing, including serological testing D. Emergency medical response expenses E. Telemedicine capabilities F. Other 2, Public Health Expenses A. Communication and enforcement of public health measures B. Medical and protective supplies, including sanitation and PPE C. Disinfecting public areas and other facilities D. Technical assistance on COVID-19 threat mitigation E. Public safety measures undertaken' F. Quarantining individuals G. Other 3, Payroll expenses for public employees dedicated to COViD-19 A. Public Safety B. Public Health C. Health Care D. Human Services E. Economic Development F. Other 4. Expenses to facilitate compliance with COVID-19 measures A. Food access and delivery to residents B. Distance learning tied to school closings C. Telework capabilities of public employees 5 D. Paid sick and paid family and medical leave to public employees E, COVID-19-related expenses in county jails F. Care and mitigation services for homeless populations G. Other 5. Economic Supports A. Small Business Grants for business interruptions B. Payroll Support Programs C. Other 6. Other COVID-19 Expenses No receipts or proof of payment for costs incurred will be required to be submitted to Commerce. Grantees are still required to maintain sufficient accounting records in accordance with state and federal laws. Monitoring visits may be scheduled, 6 Proce s ano procedure to • stal F n s 1. Award Letter Commerce strives to administer funds expediently and with a minimum of red tape. We do so within the policies and procedures established by the US Treasury and state's Legislature, OFM, Commerce, and the Office of the Attorney General, Prior to receiving funds, a contract will need to be executed with Commerce. Award letters with instructions to initiate the contracting process will be emailed to each city and county receiving an allocation by no later than May 22"d. Emails to cities will be sent to mayors and any other contacts obtained with the assistance of the Association of Washington Cities. Emails to counties will be sent to the county commissioners and any other contacts obtained with the assistance of the Washington State Association of Counties. Included with the award letter will be: • CRF Program Guidelines • A draft contract template for review and to initiate the public process for authorization to execute once the final contract is available for execution • Working Papers 2. Working papers Your grant award packet includes Working Papers. The Working Papers ask for basic information needed to create a contract: • Contact information for the person who will administer the grant once the contract is signed. Grant documents and correspondence will be sent to this person. • Your Statewide Vendor Number (SWV#) • Your Federal Indirect Rate • Your fiscal year end date • Name and title for the person authorized by the jurisdiction to sign the contract Please complete and return the Working Papers to the Commerce project manager identified in the award letter as soon as possible, even if you do not plan to begin drawing your funds for a while. Your project manager will manage your contract until project completion. Feel free to give us a call if you have any questions as you fill out the form (see contact information on previous page). 3. Contract Once the completed Working Papers have been received by the Commerce project manager identified in the award letter, a contract will be prepared and sent to you for signature. Have the authorized representative sign the contract and then return a scanned pdf copy to your project manager. Then the project manager will route the contract for Commerce's signature. It generally takes two to four weeks to fully execute a contract. Once executed by Commerce a fully executed copy will be scanned and a pdf copy emailed to the jurisdiction and you will have access to your funds. Commerce is working to make the contracting process as quick and easy as possible. 7 4. Reimbursements This is a reimbursement-style grant, meaning no advance payments. Funds are available once a contract is executed. All grantees are required to set up a SWV number so funds may be sent electronically. Grantees have the flexibility to cash out their grant or draw down funds as frequently as once a month as long as you have incurred documented eligible costs in response to the COVID-19 public health emergency during the period of March 1, 2020 thru October 31, 2020. All final requests for reimbursement must be submitted no later than November 15, 2020. Commerce has moved to electronic vouchering through their Contracts Management System (CMS) Online A-19 Portal. Requests for reimbursement must be submitted online through the CMS System by an individual authorized by the Grantee's organization. Online electronic vouchering provides for grantees to receive reimbursements as quickly as possible. Grantees with barriers to using the online A- 19 portal, may request an A-19 form from their Commerce project manager. Access to CMS is available through the Secure Access Washington (SAW) portal. You will need to create a SAW account if you do not already have one. Please find detailed instructions here: Office of Financial Management. It may take up to three weeks after you submit this information for an electronic transfer account to be set up. We will automatically receive your SWV number from the office that sets them up. Once logged into SAW, add the Department of Commerce to your 'services' and submit an Online A-19 ExternlUsrReciuest form. Then Commerce will add you as a new external user in CMS; and the CMS system will generate and email a registration code to you to complete the CMS registration. For additional grantee support, refer to the Commerce Online A-19 Webpage for External Users, which includes SAW resources and the CMS manual for external users. The A-19 voucher must include a detailed breakdown of the costs incurred within each eligible budget category and the total reportable eligible expenses in response to the COVID-19 public health emergency, Accompanying with each voucher must be an executed A-19 certification and A-19 activity report. Incomplete or improperly prepared submissions may result in payment delays. After receipt and acceptance of a fully completed A-19 voucher submittal, grantees can expect electronic reimbursements within 7-10 days. No receipts or proof of payment for costs incurred will be required to be submitted to Commerce. Grantees are still required to maintain sufficient accounting records in accordance with state and federal laws; and are responsible for maintaining clear and accurate program records, and making them accessible to Commerce and the State Auditor. Monitoring visits may be scheduled. 5. A-19 Certification and Activity Report In order to receive reimbursement for eligible expenses incurred, each A-19 Voucher must include: 1. A completed A-19 Certification: . An individual authorized to execute on behalf of the local government must certify by signing this document under penalty of perjury that the items and costs listed herein and on the accompanying Commerce A-19 Voucher are eligible charges for necessary expenditures incurred due to the COVID-19 public health emergency that were not previously accounted for in the most recent approved budget as of March 27, 2020, 8 and that the funds were used in accordance with section 601(a) of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief,, and Economic Security Act("CARES Act"). 2, A completed A-19 Activity Report (instructions included in document): • Must be submitted as an Excel spreadsheet, not a PDF. • Include a detailed breakdown of the individual eligible expenditures reported by each sub-category of the six (6) primary budget categories. Each primary budget category includes sub-categories and provides an option to add "other" sub-categories. • Include the total amount of all previous reimbursement requests for each applicable sub-category. • Include the total amount of funds being requested in the current reimbursement request for each applicable sub-category. • include a brief description of the use of the funds being requested for each applicable sub-category. Keep descriptions as concise as possible, but include adequate context to demonstrate how these funds addressed the COVID-19 emergency, if applicable, please consider: o Providing a brief description of the specific activities performed. o identifying specific populations served. © Identifying specific programs created or utilized. o Including any known or intended outcomes, results, or community impacts. A certification and activity report must be completed and returned with each reimbursement voucher. After the contract is executed, you will receive additional instructions on how to submit electronic reimbursement requests with the A-19 certification and A-19 activity report. 9 Coronavirus Relief Fund Frequently Asked Questions Updated as of July 8,2020 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 fbr approval? No. Governments are responsible for making determinations as to what expenditures are necessary due to the public health emergency with respect to COV1D-19 and do not need to submit any proposed expenditures to Treasury. The Guidance says that funding can he used to meet payroll eApenses fin.public safety,public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVM-I9 public health emergency. Hoov 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 COV1D-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;vas not accounted for in the most recently approved budget if the cost is fir a substantially different use from any expected use of funds in such a line item, allotment, or allocation. What would qualify as a "substantially different use"fin.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, clue 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 https://hoine.trcisury.gpvLstern/files(136/Curonavirus-Relief-Fund-Guithince-for- State-Territorial-i,ocal-and-Tribal-Goveriunents.pdf. May a State receiving a payment transfer fluids 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. May a unit of local government receiving a Fund payment transfer fluids 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. Lv a Fund payment recipient required to transfer fUnds to a smaller, constituent unit of governnzent 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 nds 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 finuling or COVID-19 relief Federal'hiting? 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 stale unemployment insurance Ands generally? To the extent that the costs incurred by a state unemployment insurance fund are incurred due to the COVID-I9 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. 2 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-I9 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 COVID-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. Ito 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 teleworh capabilities) rather than require employees to incur the eligible cost and submit fin. 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. 3 May Fund payments be used for COV1D-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 ofprivate 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. ln 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 arc necessary and they meet the other requirements set forth in section 60I(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 lir 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. 4 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-19 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 of grants to small businesses to reimburse the costs of business interruption caused by required closures, would constitute eligible expenditures of Fund payments. Would such expenditures he 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-I9 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 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 he necessary expenditures incurred due to the COVID-I 9 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. 5 Could Fund payments he usedfor 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-I 9 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 COV1D-19 treatment capacity or improve mitigation measures, including related construction costs. Tire Guidance includes workforce bonuses as an example of ineligible expenses but provides that hazard pay 'You'd he 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 "fpJayroll or benefits expenses jOr 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-I9? 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 for a government to pro»ide 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. 6 Should States receiving a payment transfer limas to local governments that did not receive payments directly from Treasmy? 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 offands 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(TAM) 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 COV1D-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 rulyil 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 of payments from 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 Jim 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 COVID-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. 7 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 necessaiy. 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'attire COVID-19 outbreak? Fund payments may be used only for expenditures necessary to address the current COVED-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 COV1D-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 FEVIA's determination of eligibility under the Stafford Act. Must a Stale,local, or tribal government require applications to be submitted by businesses or iniiiviiiuiils hi fine 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 fur distribution to individuals in need offinancial assistance, such as rent relief/ 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 8 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 clue 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 fimding may he used to meet payroll expenses fir 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 emogeney. May Fund payments be used to cover such an employee's entire payroll cost orjust 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 COV1D-I 9 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 COVlD-19 and apply Fund payments on that basis but would need to do so consistently within the relevant agency or department. May Fund payments be used to cover increased adnunistrative leave costs of public employees who could not telework in the event of a stay at home order or a case of'COVID-19 in the workplace? The statute 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. As stated in the Guidance, 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 is for a substantially different use from any expected use of funds in such a line item, allotment, or allocation. if the cost of an employee was allocated to administrative leave to a greater extent than was expected, the cost of such administrative leave may be covered using payments from the Fund. Questions Related to Administration of Fund Payments Do governments have to return unspent lands to Treasury? Yes. Section 601(0(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? 9 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 federaifinancial assistance for purposes°Pile Single Audit Act? 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 management, 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 Ands count toward the subrecipients'total funding received from the federal governmentfar purposes of the Single Audit Act? Yes. The Fund payments to subrecipients would count toward the threshold of(he Single Audit Act and 2 C.F.R. part 200, subpart F re: audit requirements. Subrecipients are subject to a single audit or program- ]0 specific audit pursuant to 2 C.F.R. § 200.501(a)when the subrecipients spend$750,000 or more in federal awards during their fiscal year. Are recipients permitted to use payments front 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. § 200A25. If a government has transferred finds 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 6010 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 or otherwise, are used in accordance with section 601(d) of the Social Security Act as implemented in the Guidance. 11