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HomeMy WebLinkAboutItem 8City of Lakeville Finance Department Memorandum To: Mayor and City Council From: Jerilyn Erickson, Finance Director Copy: Justin Miller, City Administrator Date: August 24, 2020 Subject: CARES Act Funding The Coronavirus Aid, Relief, and Economic Security (CARES) Act established the $150 billion Coronavirus Relief Fund to provide funds to State, Local and Tribal governments navigating the impact of the COVID-19 outbreak. The City of Lakeville was allocated $4,846,940. Staff submitted the required certification form and funds were received on July 3, 2020. Eligible Expenses Current guidance states that expenses must satisfy three distinct elements: 1) Necessary expenditures incurred due to the public health emergency with respect to COVID-19. An expenditure is reasonably necessary for its intended use in the reasonable judgment of the government officials responsible for spending Coronavirus Relief Fund payments. Expenditures must be used for actions taken to respond to the public health emergency, including expenditures incurred to respond directly to the emergency, as well as expenditures incurred to respond to second order effects, such as by providing economic support to those suffering from employment or business interruptions due to COVID-19-related business closures. 2) Costs not accounted for in the city’s budget most recently approved as of March 27, 2020. 3) Performance or delivery must occur during the covered period, but payment of funds need not be made during that time (though it is generally expected that this will take place within 90 days of a cost being incurred). For cities, the covered period is March 1, 2020, to Nov. 15, 2020. Cities must spend funds by November 15, 2020. Ineligible Use of Funds Loss of revenues are NOT an eligible use of the funds. Current Status of Funds The guidance continues to change regarding the eligibility of expenses. Staff has reached out to other cities as well as the City auditors, CliftonLarsonAllen, to discuss interpretations of the guidance, etc. The following chart shows the current estimated amounts of expenses in three categories of confidence that the expenses would qualify: Category 1: High confidence of eligibility Description Spent Obligated but not paid Total Public Health Expenses (Personal protective equipment (PPE), plexiglass barriers, etc.) $58,881 n/a $58,881 Small Business Grants $110,000 $374,694 $484,694 Administration costs for SBG $0 $ 10,000 $10,000 Hardware/software to allow “work- from-home” capabilities $8,808 n/a $8,808 Unemployment expenses $248 $29,942 $30,190 Other – portable restrooms (city parks) $4,274 $10,500 $14,774 Staff paid during COVID-19 illness or quarantine $39,050 $0 $39,050 Staff shift adjustments to minimize exposure (police) $314,826 $0 $314,826 Payout of Police (union) vacation/PTO *estimate $0 $28,368 $28,368 Expansion of Fire duty crews to minimize exposure and to ensure availability of firefighters to respond to fire calls (paid through June; estimates through November 15) $41,409 $61,614 $103,023 COVID-19 Testing $0 $1,000 $1,000 Totals $577,496 $516,118 $1,093,614 Category 2: Medium confidence of eligibility Description Spent Obligated but not paid Total Temporary pay for essential workers via Emergency order (Est Nov 15) $23,938 $18,958 $42,896 Category 3: Low confidence of eligibility Description Spent or Obligated Total ALL public safety expenses from March 01 – November 15, 2020 qualify – used 8/12 of personnel expenses * (administrative convenience) *Total personnel budget for PD $9,760,854 *Total personnel budget for Fire $1,684,742 $7,630,397 $7,630,397 Category Total Spent/Obligated Grant Remaining CARES Act Grant $4,846,940 Category 1: High confidence $1,093,614 $3,753,326 Category 2: Medium confidence $42,896 $3,710,430 Category 3: Low confidence $7,630,397 $0 The City approved an agreement on August 17, 2020 with Dakota County regarding use of the 2020 CARES Act Grant for 2020 federal election funding in the amount of $24,826.21. Small Business Grants Staff processed eleven grant payments ($10,000 each) during the week of August 17 th:  Advanced Family Eyecare  Dream Nails  Exuberance Chiropractic & Wellness  Four Paws Inc  Heidi Nails  K Raberge Inc  Minnesota School of Beauty  Northland Investment Group  South Metro Dance Arts Center  The Levon Group Inc  Wear Out The Net Inc Additional Considerations for Use of Funds The City has received requests for funding from Fairview Ridges Hospital and 360 Communities. Those requests are attached to this report. The Lakeville Arenas has also incurred $7,818 in COVID-19-related expenses. Inquiries from other non-profits have been received, as well. Staff is seeking general feedback from the Council on the CARES Act funding. Attachments: 1) 360 Communities 2) Fairview Ridges Hospital 3) Small Business Grant Update Equal Opportunity Employer August 14, 2020 Mayor Doug Anderson City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 Dear Mayor Anderson: I am writing with more details to support Ridges Hospital’s Coronavirus Relief Fund request. Of the almost 63,000 COVID-19 cases diagnosed in Minnesota, 4610 or 7.3%, are from Dakota County (3rd in State). Thirty-four percent of Lakeville residents admitted to a hospital in 2019 were admitted to Ridges Hospital and twenty-six percent more were admitted to a sister Fairview hospital. As Ridges Hospital cares for almost 60% of Emergency patients in its Primary Service Area, many Lakeville residents requiring emergency care and hospitalization received care at Ridges and will continue to do so as the coronavirus pandemic continues. As we noted earlier, our pandemic-related costs have included supplies and equipment such as Personal Protective Equipment to keep our staff and patients safe, infrastructure changes to treat COVID-19 patients and ensure a safe environment for staff and non-COVID patients, and training and education to prepare staff for the demands of the coronavirus pandemic. Ridges Hospital received $4,890,597 in CARES Act Provider Relief Funds out of $175 billion distributed by the U.S. Department of Health and Human Services to hospitals and healthcare providers. This did help alleviate some of the early impact of COVID-19. Unfortunately, during the months of March through June, Ridges lost $23,706,236 in revenue due to, for instance, patients canceling or deferring non-time-sensitive surgeries and other procedures. Ridges Hospital’s requests of local governments focus solely on the incremental costs due to COVID-19 which totaled $871,694 from March through June. The amount we are requesting, $105,911, is the proportional market share of inpatient admissions to Ridges Hospital which Lakeville represents, 12.15%, multiplied by this cost figure. We expect our incremental, excess costs due to COVID-19 to continue to grow through the remainder of 2020 and into 2021 with little, if any, potential for additional coronavirus pandemic funding expected from federal or state sources. Ridges Hospital 201 E. Nicollet Boulevard Burnsville, MN 55337 Equal Opportunity Employer We hope these details help as you deliberate on your COVID-related funding priorities. If you have questions, please contact me at bknapp1@fairview.org. Andy McCoy at amccoy2@fairview.org and Mary Edwards at medward1@fairview.org may also be reached with questions. Thank you once again for your consideration of our request. Warmest regards, Brian Knapp Vice President, Operations cc: Justin Miller, City Administrator Allyn Kuennen, Assistant City Manager City of Lakeville Community & Economic Development Memorandum To: Mayor and City Council Economic Development Commission From: David L. Olson, Community and Economic Development Director Kati Bachmayer, Economic Development Coordinator Copy: Justin Miller, City Administrator Date: August 25, 2020 Subject: Status Update on Small Business Emergency Grant Program Items to address:  The amount of CARES Act funding ($484,694) and final program guidelines approved by the City Council with the recommendation of the EDC (attached)  The application period (July 27-August 7)  The total number of applications received (78)  The number of applications determined to be ineligible based on the program guidelines (18).  Reasons for ineligibility: Outside city limits (3), received Pandemic Unemployment Assistance (4), Home-based business (not a daycare) (5), over $1M in annual revenue (4), derives income from real estate (1), could not verify COVID-19 related revenue loss (1)  The number that withdrew their application (2)  The number of grants that have been approved by the City and Northland Securities (23) and the date that the first round of grant monies to eligible businesses was dispersed (August 17)  Businesses that have signed grant agreements: o The LeVon Group o Raberge's Leadership Martial Arts o Advanced Family Eyecare o Fancy Paws Pet Salon o Minnesota School of Beauty, LLC o Exuberance Chiropractic & Wellness Center o South Metro Dance Academy o Wear Out The Net, Inc o Dream Nails o Heidi Nails o Snap Fitness - Lakeville o Anytime Fitness Lakeville o Miller Comfort Dental of Lakeville, LLC o Threads & Inks, Incorporated o Wise Swim School o Hand and Aroma Massage o Waffle Bar o BeeHive Homes of Lakeville o Quality Inn Lakeville  The estimated number of businesses that APPEAR to qualify for the program (total of 58)  The estimated number of businesses we think we will be able to fund (48)  The estimated number of businesses that APPEAR to qualify that won’t receive grant funding (10) Please note: all information is as of noon on Wednesday, August 19.