12 - Coronavirus Relief Funding - plan for expenditure of fundingItem No. 12
TO: Mayor and City Council
FROM: Grayson Path, City Manager
SUBJECT: CRF Program Funding
Plan for Expenditure of Funding
DATE: March 8, 2021
BACKGROUND:
On June 8, 2020, the City Council authorized a Resolution for the signing of Terms and Conditions
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 (TDEM).
This funding is designed to help governments who are responding to the CoVid-19 pandemic. The
City of Paris has been allocated a maximum amount of $55 per capita which is $1,393,150.00.
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
identify all first responder payroll as eligible expenses, whether it was a direct response to CoVid-
19 or not. It must therefore be decided how we will spend this funding. The City has three external
commitments: 1) Third Party Administrator, 2) Paris -Lamar 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 already made. It was then asked that a total amount
spent to -date be identified and brought back for further discussion. On January 25, 2021, a report
was brought back to the City Council listing the City's commitments to third parties as well as
CoVid-19 related expenses to -date. The City's budget absorbed all of our FY19/20 expenses and
we are attempting to do the same in FY20/21. By the City Manager's recommendation, the City
Council agreed to revisit this topic this summer once more CoVid-19 expenses have been
identified (FFCRA, CoVid-19 Clinics, PPE, sanitizers, etc.) to see if more reimbursement could
take place and then use the remaining balance for possible disaster equipment.
STATUS OF ISSUE:
During the week of February 14, 2021, the City of Paris experienced dangerously cold
temperatures as well as abnormally large amounts of snow fall. Subsequently, the State of Texas
experienced rolling blackouts that did impact the City of Paris resulting in the cutting of power to
a critical water pumping facility, nearly leading to total loss of water for the community. This
situation has brought to light some significant equipment needs that the City has for responding to
emergency situations, including generators.
The Mayor has asked that this topic be revisited in light of this winter event. The City Manager's
original December 14, 2020 recommendation was to utilize the non -committed CRF Program
Funding for investing in the City's municipal emergency response capability, that specifically
behag �:,qn ipiin.ent (noti....pe�°ishalble) tllnat w(,:rued be used to respond to an ennnergen.cy ucll:i. as another
virus, a tornado, hailstorm, power outage, snow storm, etc.
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
2. Paris -Lamar County Health Dept.
3. Paris ISD
4. Chisum ISD
5. North Lamar ISD
Total
Third Party Administrator
$22,500.00
CoVid-19 Response
$100,000.00
Operation Connectivity
$87,000.00
Operation Connectivity
$5,225.00
Operation Connectivity
$18,133.00
$232,858.00
The City does have a large amount of other CoVid-19 expenses, but those that occurred in FYI 9/20
were covered under the budget without need of reimbursement. FY20/21 is not complete yet, so
we cannot say the same for this year, but staff are attempting to adjust their budgets to account for
unexpected CoVid-19 expenses while staying within budget.
OPTIONS:
1. Consider utilizing the remaining balance, or a portion thereof, for the future purchase of
equipment that would assist the City in addressing another emergency situation.
2. Continue as discussed on January 25, 2021 and revisit this during the summer once more
CoVid-19 expenses have accrued and a total developed.
RECOMMENDATION:
It would be the City Manager's recommendation that we proceed as was originally recommended
in December 2020 and utilize the non -committed CRF Program Funding for equipment purchases
for the purpose of addressing future disasters. This is not going to happen overnight as staff need
to revisit their original lists in light of the snow storm and debriefings we have had afterwards. In
addition, we will need to investigate and study solutions to certain issues (ex: to provide a generator
at the pumping station will need to be studied and planned out), so this will take some time to
complete. But knowing that we have the money set aside for this will give us the direction we
need. In addition, taking our time to do this right will allow us the ability to utilize some of these
CRF Program Funds for ongoing CoVid-19 expenses that might come up (ex: while our CoVid-
19 Vaccination Clinic has proven to be low expense, there might come some unforeseen large
expense we need in order to continue to provide the clinic). Given our budget absorbed the CoVid-
19 expenses in FYI 9/20, and we are striving to do the same in FY20/21, the City Manager would
recommend that we not reimburse ourselves using this funding, but rather use it to capitalize on
emergency equipment purchases. In addition, the City Manager would recommend that he be
tasked with developing some parameters and procedures for the expenditure of these funds
including the approval process. This will be brought back to the City Council at a future meeting.