| | | | | | | | Agenda Item - 5.b.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | Patricia Song
| | Dept.: | City Manager
| Dept.: | Finance
| | Subject: | Appropriation of $3,703,780.91 in grant funds related to Coronavirus relief funding through the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). (Action Item) | Date: | 7/14/2020 |
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| | | | | | | | OBJECTIVE
For City Council to appropriate grant funds related to coronavirus relief funding through the Coronavirus Aid, Relief, and Economic Security (CARES) Act provided through the County of Orange and State of California Department of Finance. |
| | | | | | | | BACKGROUND
The COVID-19 pandemic resulted in the declaration of national, State, and local emergencies in February and March 2020. On March 27, 2020, Congress signed into law the CARES Act, which provided funding to people, businesses, and local agencies affected by the pandemic. The CARES Act established the Coronavirus Relief Fund providing $26 million to the County of Orange and $500 million to the State of California Department of Finance to be allocated to cities. Allocations to cities on both funding sources are based on population. |
| | | | | | | | DISCUSSION
The City will receive $1,545,489.91 from the County of Orange and $2,158,291 from the State of California Department of Finance. Funds are to be used for COVID-19 related expenses incurred by the City between March 1, 2020 and December 30, 2020. Eligible expenses include the following:
- Protective supplies and equipment
- Payroll expenses for employees whose services are substantially dedicated to mitigating or responding to COVID-19
- Unemployment insurance costs
- Improvement of telework capabilities
- Disinfection of public areas and facilities
- Modification of offices and facilities
- Care provided to homeless populations to mitigate COVID-19 effects
- FEMA cost share requirements under the Stafford Act
As of June 19, 2020, the City has incurred approximately $1.6 million in costs directly relate to COVID-19. These costs include salaries and over-time, materials and supplies, equipment, emergency services, and necessary staff training. Staff will work with CalOES and the State Department of Finance to determine the eligible expenses as defined in the Subrecipient Agreement with the County of Orange (Attachment 1) and the Certification for Receipt of Funds with State of California Department of Finance (Attachment 2). Unspent funds as of December 30, 2020, will be returned. |
| | | | | | | | FINANCIAL IMPACT
Funding is available for reimbursement of eligible expenses related to COVID-19 in the amount of $3,703,780.91. These funds are not included in the City’s existing FY2019-20 budget allocation, and will be appropriated in FY 2019-20. Any unspent funds will be carried over into FY 2020-21.
Unspent County allocation as of December 30, 2020 shall be returned to the County by February 1, 2021. Usage of the State Department of Finance allocation shall be reported by September 1, 2020, and unspent funds shall be returned by October 30, 2020, unless extended by the State Department of Finance. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
- Appropriate the Coronavirus Relief Funds allocated to the City of Garden Grove in the amount of $3,703,780.91 in Fiscal Year 2019-20; and
- Authorize the carryover of any unused funds into Fiscal Year 2020-21.
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