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07-27-2020 Council Special Work Session Packet
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07-27-2020 Council Special Work Session Packet
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12/2/2021 2:38:36 PM
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City Council
Council Document Type
Council Packet
Meeting Date
07/27/2020
Council Meeting Type
Work Session Special
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6 <br /> <br />Could Fund payments be used for capital improvement projects that broadly provide potential <br />economic development in a community? <br />In general, no. If capital improvement projects are not necessary expenditures incurred due to the <br />COVID-19 public health emergency, then Fund payments may not be used for such projects. <br />However, Fund payments may be used for the expenses of, for example, establishing temporary public <br />medical facilities and other measures to increase COVID-19 treatment capacity or improve mitigation <br />measures, including related construction costs. <br />The Guidance includes workforce bonuses as an example of ineligible expenses but provides that <br />hazard pay would be eligible if otherwise determined to be a necessary expense. Is there a specific <br />definition of “hazard pay”? <br />Hazard pay means additional pay for performing hazardous duty or work involving physical hardship, in <br />each case that is related to COVID-19. <br />The Guidance provides that ineligible expenditures include “[p]ayroll or benefits expenses for <br />employees whose work duties are not substantially dedicated to mitigating or responding to the <br />COVID-19 public health emergency.” Is this intended to relate only to public employees? <br />Yes. This particular nonexclusive example of an ineligible expenditure relates to public employees. A <br />recipient would not be permitted to pay for payroll or benefit expenses of private employees and any <br />financial assistance (such as grants or short-term loans) to private employers are not subject to the <br />restriction that the private employers’ employees must be substantially dedicated to mitigating or <br />responding to the COVID-19 public health emergency. <br />May counties pre-pay with CARES Act funds for expenses such as a one or two-year facility lease, <br />such as to house staff hired in response to COVID-19? <br />A government should not make prepayments on contracts using payments from the Fund to the extent that <br />doing so would not be consistent with its ordinary course policies and procedures. <br />Must a stay-at-home order or other public health mandate be in effect in order for a government to <br />provide assistance to small businesses using payments from the Fund? <br />No. The Guidance provides, as an example of an eligible use of payments from the Fund, expenditures <br />related to the provision of grants to small businesses to reimburse the costs of business interruption <br />caused by required closures. Such assistance may be provided using amounts received from the Fund in <br />the absence of a requirement to close businesses if the relevant government determines that such <br />expenditures are necessary in response to the public health emergency.
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