TO: Mayor Bien-Willner and Town Council Members
FROM: Jill Keimach, Town Manager
Douglas Allen, CFO
DATE: June 25, 2020
DEPARTMENT: Finance
Staff Contact Douglas Allen
End
AGENDA TITLE:
Title
Information and Possible Discussion with an Overview of the Federal Cares Act, the AzCares Fund, AzDEMA, and FEMA Reimbursements for the Town of Paradise Valley, AZ
Body
SUMMARY STATEMENT:
GOAL of PRESENTATION AND DISCUSSION
To provide a general understanding of two funding sources and two Resolutions authorizing the Town Manager (TM) and Chief Financial Officer (CFO) to file applications and accept funding from these two sources.
A) AzCares fund (Resolution 2020-22 authorizing TM); and
B) FEMA reimbursements (Resolution 2020-23 designates CFO)
A) AZCARES FUND
I. Federal CARES Act
• The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by Congress and signed into law on March 27, 2020.
• The CARES Act established the Coronavirus Relief Fund (CRF)
o $150 Billion to States and direct allocations to local governments with populations over 500,000
o Populations over 500,000 in Az included: Cities of Mesa, Phoenix and Tucson; and Counties of Maricopa and Pima.
II. AzCares Fund
Who is eligible?
• Any County and incorporated City or Town that did not receive a direct allocation from U.S. Department of Treasury
• All in Arizona, except for Mesa, Phoenix, Tucson, Maricopa County and Pima County
• AzCares Funds distribution is based on 2019 population
What are allowable costs?
• Public health and safety regular salary and employee-related-expenses costs incurred between March 1, 2020 and December 30, 2020
o Paradise Valley eligible programs includes Police Officers, 9-1-1, contractual Fire services
o Costs for overtime, hazardous duty pay, COVID specific training and PPE should be submitted to FEMA for reimbursement, not AzCares
Application requirements
• Complete Application
o Scope and budget
• Report Payroll from March 1, 2020 to date of application (June 30, 2020)
• Forecast Payroll for remainder of award allocation December 30, 2020.
• Execute Certification Form
§ Resolution 2020-22: Authorizing an Application for the Acceptance of AZCares Fund and Authorizing Town Manager to Execute and Submit the Certification Form.
Award Requirements
• Accept award
• Execute agreement
• Adhere to accounting requirements
When to Apply
• May 26 through July 30, 2020
How to use “freed up” appropriations?
• Encumbered funds are “freed up” and can be repurposed by Council
• Recommendation is to use to off-set reduced revenues and re-examine when revenues rebound to Level II, as represented in the FY2021 Budget
B) FEMA REIMBURSEMENT
III. AzDEMA
Emergency Assistance (Monetary)
• When a state of emergency is declared by the Governor or the President, emergency assistance is available from state and federal agencies in the form of financial assistance and/or reimbursement of costs for property, personnel, and materials used during the emergency
• Pursuant to the national emergency, the Federal Emergency Management Agency (FEMA), through the State of Arizona, is administering public assistance funds available to local Arizona governments for expenditures related to the COVID-19 pandemic
What is AzDEMA?
• Arizona Department of Emergency and Military Affairs
• Administers reimbursement funds from FEMA for declared emergencies
Before reporting for FEMA Reimbursement
• Work with DEMA
• Designate an agent for the Town:
§ Resolution 2020-23: Designating the Town’s CFO as the Applicant’s Agent to obtain public assistance funds.
IV. FEMA (Federal Emergency Management Agency)
FEMA Public Assistance Funds
• Funding is a reimbursement for actual costs incurred as a result of the “disaster”
• Funding is NOT a grant; and is up to 75% reimbursed of eligible costs
• Costs must be documented to FEMA standards
• Typically, disasters are localized and a particular event (flood, hurricane)
• the COVID-19 is nation-wide with an unknown duration
Deadline to Apply
• Unknown; no end date to the emergency has been declared
Award Amount
• Unknown; depends on allowed costs
How to Report
• Entities can report in various formats
• Staff recommends reporting on a quarterly basis
o Keeps current and
o Allows to re-submit if a cost is rejected
Full Listing of AzCares Fund Allocations by Jurisdiction
<https://drive.google.com/file/d/1XONh6XgOUdjZX433u2Lg2CtSXQZbgMj_/view>
Summary Information on AzCares Funding and Requirements
<https://gn.ecivis.com/GO/gn_redir/T/195v9gwwjp37n>
ATTACHMENT(S):
Presentation: Federal CARES Act; AzCares Fund; AzDEMA; FEMA; and the Town of Paradise Valley, AZ
Resolution 2020-22 AzCares fund authorization for certification form
Resolution 2020-23 Designation of applicants agent