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15 - CRF Program Funding - Plan for Expenditure of FundingItem No. 15 TO: Mayor and City Council FROM: Grayson Path, City Manager SUBJECT: CRF Program Funding Plan for Expenditure of Funding DATE: January 25, 2021 901MI iiiiiiiip iiiiiii7i --- a L 01 K 1" =MMMM Z 1-91,13 A=1 to receive Coronavirus Aid, Relief, and Economic Security (CARES) Act funding, also known as Coronavirus Relief Fund (CRF) with the Texas Department of Emergency Management This funding is designed to help governments who are responding to the CoVid- 19 pandemic. 111 17 51 1 111 Working with our Third Party Administrator, Resource Management & Consulting Company, we have submitted the necessary documents to receive 100% of our allocated reimbursement total, dependent on any final requirements that the TDEM provides. On December 14, 2020, the City Council discussed possible options for using the balance of CRF Program Funding. When the program was first announced last summer, the funding was restricted to abnormal CoVid-19 related expenses. This changed in such a way that the City was able to i�&n6ifjw.li firW-r-wV1#ti1A4M4-�- 19 or not. We have been in communication with the State via our Third Party Administrator and they report we are on the final step of approval to receive our total allotment. It must therefore be decided how we will spend this funding once it is received. The City has three external commitments: 1) Third Party Administrator, 2) Paris-Larnar County Health District, and 3) the three local ISDs. The City Manager recommended that the balance be utilized for investing in the City's municipal emergency response capability, that specifically being equipment (non- perishable) that would be used to respond to an emergency such as another virus, a tornado, hailstorm, etc. After some discussion, the City Council directed that some of the incoming funding be used to reimburse the City for CoVid-19 expenses made. It was then asked that a total amount spent to - date be identified and brought back for further discussion. STATUS OF ISSUE: The City Manager, working with the Finance Director, has identified — to the best of our ability — those expenses that are directly tied to CoVid-19. This is not absolute because it is very likely that some minor CoVid-19 related expenses were run through normal operating accounts instead of the set-aside accounts for this purpose. We believe though that whatever amount that might have been would be de minimis. Since the December 14, 2020 City Council Meeting, the Paris -Lamar County Health Department has come back and requested the full amount that was approved by the City Council in 2020, that being $100,000.00. They are needing additional staffing to address the overwhelming number of calls they are receiving asking about the vaccinations. The City Manager has informed the Director that this funding is indeed available for their use as was approved by the City Council. At the January 11, 2021 City Council Meeting, the City Council approved extending the FFCRA Program Provisions providing up to 80 hours of CoVid-19 leave. This will be extended to at least March 31, 2021, to be re-evaluated at that time. Most recently, the City is working with the Paris -Lamar County Health District and the Lamar County to facilitate the distribution of vaccines for the CoVid-19 pandemic. In a recent Zoom call between the Health District, County, Mayor, Mayor Pro -Tem, and Emergency Management Personnel, it was discussed of a possible need to utilize CRF Program Funding to assist in these efforts at some future point — the exact expense and purpose not yet known. All in all, it is clear that CoVid-19 is continuing to be an expense to the City. BUDGET: The City was allocated $1,393,150.00 in CRF Program Funding. The City has the following external commitments: 1. Resource Management & Consulting Co. Third Party Administrator $22,500.00 C. Ma,w County Health Depi 3. Paris ISD 4. Chis um IS 5, North Lamar ISD Total 1. Health District 2, Resource Management 3, CoVid-19 Related Pay/Leave 4, CoVid- 19 Expenses Total r, CoVid-19 Response $ I 00,000.0c *peration Connectivity $87,000.00 Operation Connectivity $5,225.00 Operation Connectivity $18,133.00 $232,858.00 O's, MWOMM ro Ulm rm, a 0, IN 111M."I RwI.V10 R.RENZY4 M-TTITU-41=777A WN", Ww". 19 relate,,,i. "Mostly perishable items such as gloves, wipes, spray, suits, chemicals, PPE, sanitizeM M etc. Larger items include Testing Kits ($35,625.00), Ventilators ($55,108.02) Ambulances, and Electrostatic Sprayer with Disinfectant ($16,811.87). Combining the To. -Date Expenses with the remaining external commitments places us at about $515,000.00 in expenses. This would leave a remaining balance of approximately $878,150.00. With this said, the City is going to have additional FFCRA expenses (Related Pay/Leave) and more perishable expenses as listed above. If the City were to assist with any vaccination expenses, that too would be an added expense that is currently unknown. ' 'Tim"17FAM 1, 021M %13 11 Program Funding were to be available for disaster -related equipment. So far, the City Manager has received requests of about $575,000.00. These have predominantly been in the Utilities, Fire and EMS Departments. 1. Revisit this perhaps six months from now or later once abetter idea of FFCRA, CoVid-19 Vaccination, external commitments, and perishable/operational expenses are known. 2. Carve out a portion of the remaining balance, perhaps $400,000.00, to utilize for making large disaster -related equipment expenses. 3. Make a decision on the types of CoVid-19 expenses the City Council would like to reimburse the City for: Equipment, Payroll (ex: FFCRA), Perishable (ex: wipes, sanitizer, PPE, etc.), Testing Kits, etc. RECOMMENDATION: Given the discussions that have taken place at the City Council level on 12/14/20 and 01/08/21, as well as recent discussions with the Paris -Lamar County Health District, the City Manager does not have a solid recommendation, but is leaning towards option #1 unless the City Council is comfortable setting aside a portion of the remaining balance (option #2) to help get started on some large equipment purchases which could then be followed up by option #1 — revisiting this down the road. The City is still waiting for final approval from the State to receive its full allotment, so this is all tentative to that being completed.