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Agenda 07/14/2020 Item #11B (Allocations of the Coronavirus Relief Fund)07/14/2020 EXECUTIVE SUMMARY Recommendation to approve allocations of the Coronavirus Relief Fund appropriation to Collier County in the amount of $67,162,425. OBJECTIVE: To provide allocations of the Coronavirus Relief Fund appropriation to Collier County. CONSIDERATIONS: The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020. The CARES Act included a $150 billion Coronavirus Relief Fund (“Fund”) to provide payments to State, Local, and Tribal governments navigating the impact of the COVID-19 outbreak. On Wednesday, June 16, 2020, Governor Ron DeSantis announced Florida’s plan to distribute $1.275 billion in CARES Act funds to counties with a population below 500,000, including $67,162,425 to Collier County, of which $16,790,608 is a direct appropriation. At their June 23, 2020 meeting, the Board approved an agreement with the Florida Division of Emergency Management (FDEM) to receive the appropriation and authorized the County Manager or designee to execute any sub-award agreements and payment requests necessary to distribute reimbursement for expenses to eligible parties. The Board also authorized the hiring of up to eight (8) temporary, full-time employees to administer the program, and provided staff direction to bring back a plan to allocate the funds to community initiatives at the July 14 regular meeting. Payments from the fund may be made available to cover costs that - 1. are necessary expenditures incurred due to the public health emergency with respect to COVID- 19; 2. were not accounted for in the budget most recently approved as of March 27, 2020 (the date of enactment of the CARES Act) for the State or government, and; 3. were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020. The full U.S. Treasury guidance for expenditure of funds is attached as an addendum to this Executive Summary. All programs must focus on eliminating any duplication of benefits and are subject to all Federal Single Audit Art requirements. Counties are responsible for determining eligibility of expenditures, and accountable for any expenditures deemed ineligible under the guidance. Staff is recommending the following allocation of funds: Program Allocation Individual Assistance $ 15,000,000 Small Business Relaunch & Rehire Assistance $ 10,000,000 Community Health & Services Initiatives $ 30,000,000 Personal Protective Equipment (PPE) $ 5,000,000 Community Replenishment Reserve $ 7,162,425 Total Appropriation $ 67,162,425 Individual Assistance (Rental, Mortgage, and Utilities Payment) - $15,000,000 Collier County currently has an agreement with the United Way of Collier County to administer housing assistance provided by the Department of Housing and Urban Development and Florida Housing Finance Corporation. Collier County will supplement this program using up to $15,000,000 in CARES Act funds. 11.B Packet Pg. 317 07/14/2020 To differentiate funding streams and provide assistance to those that many not meet the criteria under previously provided grant funding, the program will use the following guidelines for distribution: • Maximum assistance of up to $10,000 per household; • Payments will be made directly to landlord, mortgage company, and/or utility company; • Income qualification will mirror the CARES Act Economic Impact Payments guidelines, with assistance available to individuals with incomes up to $75,000 and households up to $150,000; • Applicant must have had a loss of employment or reduced hours due to COVID-19; • Applicants must be Collier County residents. Small Business Relaunch & Rehire Grants - $10 million A one-time grant of up to $25,000 intended to offset costs of reopening or relaunching as our economy slowly reopens. Costs must have been incurred by required closures under a State Executive Order, and may not have been covered by insurance or any other Federal programs. Eligibility will be determined by some of the following suggested criterion: • 50 or fewer employees • Business owner a Collier resident • Active business tax license and state registration • Business has suffered economic damages exceeding the amount awarded from business interruption due to State Executive Order since March 1, 2020, excluding those covered by federal assistance and insurance • Signed waiver certifying no duplication of benefits Examples of eligible uses: • capital for small businesses economically injured by the COVID-19 coronavirus pandemic • payroll assistance to rehire workers • workplace improvements directly related to mitigating the spread of COVID-19 Hospitality Marketing Recognizing the great impact that the COVID-19 health emergency has had on our hospitality sector, funding will be set aside to match marketing efforts for those in our hospitality sector, with further opportunities to be featured in County marketing efforts. To be eligible for this marketing grant, businesses must agree to comply with CDC guidance and considerations for reopening businesses. PPE to help with compliance can be accessed through the County program, if enacted. Marketing efforts will be focused on local residents and those in the immediate vicinity. The latest Treasury guidance provided that recipients may use Fund payments to remarket the recipient’s tourism industry, provided that they are: “expenses incurred to publicize the resumption of activities and steps taken to ensure a safe experience.” Community Health & Services Initiatives - $30 million Non-profit, Community, and Health Services ($20 million) Throughout the COVID-19 health emergency, non-profits, healthcare, and community providers have been on the frontline of helping our community respond. As such, many have seen extraordinary cost increases to operate and administer assistance programs for response in the 11.B Packet Pg. 318 07/14/2020 community. As such, staff recommends setting aside a healthy portion of funding to assist with both the reimbursement of these increased costs, and also for future implementation of programs necessary to respond to the public health emergency. To be eligible for these funds, entities must enter a subrecipient agreement with the Collier County Community and Human Services Division to receive funding on a reimbursable basis. Eligible entities to receive this funding include: • 501(c)(3) and 501(c)(19) not-for-profit organizations • Collier County hospitals and community health providers • Public health & safety entities, such as the Collier County Health Department Examples of eligible uses of funding include, but are not limited to: • Expand funding for Collier County not-for-profits to provide services to residents seeking assistance with homelessness, job retention, and health services; • Reimbursement of increased operating expenses associated with response to the public health emergency; • Community education campaigns related to COVID-19 best practices; • Public safety medical expenses, including enhanced contact tracing and data collection; • Educational programs to retrain and retool workers for in-demand industries; • Provide support to nonprofit facilities for sanitation and improvement of social distancing measures, to enable compliance with COVID-19 public health precautions; Food Security Emergency Assistance ($5 million) Food banks and pantries have incurred extraordinary costs throughout the COVID-19 pandemic. One-time grants will be made to assist with increased costs due to food purchases, additional staff hired, and/or additional rental space necessary. Separate funding agreements will be reached with larger food providers. Child Care Assistance ($5 million) Collier County’s workforce has been impacted by closures of schools, childcare facilities and other programs. In order to return our workforce safely, a childcare assistance program will be implemented with the following lines of assistance: • Households can apply for childcare assistance waivers, provided their income has been affected by State Executive Order, and childcare is a necessary expense to return to work; • Childcare providers can apply for grant assistance for increased operating expenses related to sanitation and other methods of safely operating a program; • All licensed daycare facilities and Collier County Parks & Recreation programs are eligible for use of the waiver and grant assistance program. Personal Protective Equipment (PPE) - $5 million Leveraging existing vendors on contract, the County will use our buying power to acquire a bulk order of PPE. PPE supply kits will be supplied to small businesses and not-for-profits in Collier County that employ up to 25 employees that are heavily involved with public interaction. 11.B Packet Pg. 319 07/14/2020 The PPE kit will have a predetermined quantity of surgical masks, hand sanitizer, thermometer(s), and other PPE while supplies last. Entities wishing to take advantage of the program can file an application through the virtual portal and will schedule a time to receive their kit. Community Replenishment Reserve - $7,162,425 Due to the unknown demand for the programs previously outlined, staff recommends holding a community replenishment reserve to supplement programs that see a high demand for funding, and to cover administrative costs associated with the program, expected to be approximately $1 million. If funds are still available after all outside applications have been processed, staff recommends seeking reimbursement of County expenses, and consideration of expense reimbursement for the Municipalities and Constitutional Officers. This request will be brought to the Board at the appropriate time. In addition to the projected $67 million allocation, other COVID-19 related grant funding has been distributed to Collier County. As such, the Board approved eight (8) temporary full-time employees are being proposed as a task force for the administration of this program and other COVID -19 related awards. Payroll expenses for employees whose services are necessary to administer and account for this program are fully reimbursable, and will be used to expedite and track any payments and compliance measures necessary. In addition, there will be costs associated with the implementation of the Neighborly virtual portal used for the application process for all programs to be implemented by staff. To date, staff has begun the implementation of the virtual Neighborly portal, and is in the process of hiring staff to help with administration of the program. The County has also begun initial planning to implement a phone bank assistance center to answer questions regarding the application process and inquiries into processing applications. Staff should be ready to receive applications for the individual and business assistance programs in early August, while other subrecipient awards and purchasing can begin immediately following the approval of the plan. FISCAL IMPACT: The total CARES Act allocation for the County is $67,162,425, with an initial 25% advance of $16,790,608 made available upon an executed agreement with FDEM. Once the advance is expended on eligible expenditures, staff will submit reimbursement requests to FDEM for the remaining allocation of the CARES Act funds. Funding will be made available within the Human Services Grant Fund (707), Project 33699 unless otherwise determined to administer funds effectively. Staff will distribute funds for eligible expenditures in accordance with the CARES Act and related guidance. Under the received guidance, 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 are fully reimbursable expenses. Other expenses incurred by the County and associated with the administration of this agreement will be accounted for and are expected to be fully reimbursable. A list of eligible expenses and full U.S. Treasury guidance is attached as an addendum to this Executive Summary. GROWTH MANAGEMENT IMPACT: There is no growth management impact. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and legality and requires a majority vote for approval. -JAK 11.B Packet Pg. 320 07/14/2020 RECOMMENDATION: That the Board of County Commissioners approve allocations of Coronavirus Relief Fund appropriation to Collier County in the amount of $67,162,425. Prepared By: Sean Callahan, Executive Director, Corporate Business Operations ATTACHMENT(S) 1. CRF Allocations (PDF) 11.B Packet Pg. 321 07/14/2020 COLLIER COUNTY Board of County Commissioners Item Number: 11.B Doc ID: 12814 Item Summary: Recommendation to approve allocations of the Coronavirus Relief Fund appropriation to Collier County in the amount of $67,162,425. (Sean Callahan, Executive Director, Corporate Business Operations) Meeting Date: 07/14/2020 Prepared by: Title: – Corporate Business Operations Name: Sean Callahan 07/07/2020 3:03 PM Submitted by: Title: County Manager – County Manager's Office Name: Leo E. Ochs 07/07/2020 3:03 PM Approved By: Review: Community & Human Services Kristi Sonntag Additional Reviewer Completed 07/07/2020 3:25 PM Public Services Department Jennifer Reynolds Additional Reviewer Completed 07/07/2020 3:37 PM Community & Human Services Sean Callahan Additional Reviewer Skipped 07/07/2020 5:20 PM Corporate Business Operations Sean Callahan Additional Reviewer Completed 07/07/2020 5:20 PM Grants Erica Robinson Level 2 Grants Review Completed 07/08/2020 8:20 AM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 07/08/2020 8:27 AM Grants Therese Stanley Additional Reviewer Completed 07/08/2020 8:56 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 07/08/2020 11:42 AM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 07/08/2020 1:07 PM Board of County Commissioners MaryJo Brock Meeting Pending 07/14/2020 9:00 AM 11.B Packet Pg. 322 CORONAVIRUS RELIEF FUND ALLOCATIONS •$15 million –Individual Assistance •$30 million –Community Health & Service Initiatives •Includes food assistance and child care •$5 million –Personal Protective Equipment •$10 million –Small Business Relaunch &Rehire •$7.1 million –Community Replenishment Reserve $15,000,000 $10,000,000 $25,000,000 $5,000,000 $5,000,000 $7,162,425 CRF Allocations Individual Assistance Small Business Relaunch & Rehire Community Health & Services Initiatives PPE Child Care Community Replenishment & Reserve 11.B.a Packet Pg. 323 Attachment: CRF Allocations (12814 : CARES Act Funding)