Item S2 County of Monroe .,. BOARD OF COUNT COMMISSIONERS
y� Masor Michelle Cold r n District 2 ie The
Honda Keys Ma}or Pro len)David Rice.District 4
/' Edie Cates, ez.District
1
EddiekMartinez.strict 5 3
Mike Forster.District 5
County Commission Meeting
December 9, 2020
Agenda Item Number: S.2
Agenda Item Summary #7658
BULK ITEM: Yes DEPARTMENT: County Administrator
TIME APPROXIMATE: STAFF CONTACT: Lisa Tennyson (305) 292-4444
n/a
AGENDA ITEM WORDING: Approval of Monroe County's Allocation Plan for CARES Act
funding through the State's CARES Act Local Government Program, reflecting allocations for the
County's COVID-I9 related expenses, as required by the Florida Division of Emergency
Management, and authority for staff to make any necessary minor adjustments to final allocations in
order to ensure 100% utilization of available funding.
ITEM BACKGROUND:
The Monroe County CARES Act Program is a grant program funded by an allocation to Monroe County
from the federal Coronavirus Aid, Relief,and Economic Security Act ("CARES Act"), through the State of
Florida Division of Emergency Management ("DEM"), to be used in assisting local governments jn the
recovery process from the COVID-19 pandemic.
The CARES Act and guidance by the Treasury Department strictly define the eligible uses for these funds and
the timeframe for expending the funds. Eligible uses include public health and safety actions taken by
governmental entities to respond to the pandemic and secondary economic relief to the community negatively
impacted by the pandemic.
Per the CARES Act, and per our agreement with DEM, all funds must be expended by December 30, 2020.
DEM further restricted the available implementation timeframe by additionally requiring that we report to
them all planned expenditures for Phase 3 by December 3, 2020.
Overall,the Monroe County's CARES Act Funding Allocation Plan funds:
• Economic relief programs for the community; and
• Public health and safety expenditures by local governments and constitutional officers.
For Phase I,the Plan includes:
• Rent/Mortgage/Utilities Assistance;
• Assistance to small businesses;and
• Funding for local governments/constitutional officers' public health and safety expenditures
For Phase 2,the Plan includes:
• Additional assistance to small businesses;
• Assistance to non-profits; and
• Direct funding for critical services like food and maternal health
For Phase 3,the Plan includes:
• Additional direct funding for critical services(food);
• Additional funding for local governments/constitutional officers public health and safety expenditures.
In total, we allocated $2M to small businesses (over 500 businesses), almost $400K for utilities assistance
(assisting about 400 commercial and residential customers), and almost SIM for nonprofit assistance and
critical needs like food.
Additionally, Monroe County implemented a$1.4M Rent/Mortgage Assistance Program with from the State's
Cares Act funds,through the Florida Housing Finance Corporation.
The December 3rtl and 30' deadlines pose a tremendous challenge with regard to our ability to spend the
entirety of the County's $13M allocation. This is a challenge shared by the vast majority of the 55 counties
that received these funds.
Fortunately, we are able to realistically project being able to spend our allocation by the deadline, but only for
the fact that Florida DEM made a recent decision enabling greater flexibility to local governments (county
and cities)with regard to our public safety personnel expenses.
Due to the DEM's requirement to them by December 3`d (three weeks before the deadline of December 30),
all of our final projected allocations for Phase 2 and 3, it is possible that our projected estimated allocations
may have be amended when actual expenditures are reported later in the month. It is also possible that DEM
may determine that some expenditures we have estimated, reported or submitted are determined to be
ineligible and need to be replaced by other eligible expenditures. Therefore staff requests authorization to
work with DEM in the coming weeks up to the December 30 deadline to make necessary adjustments to
allocation amounts, in order to ensure we are able to utilize our entire allocation.
Also on today's agenda are Interlocal Agreements with each of the municipalities for their respective Phase 3
funding allocations.
PREVIOUS RELEVANT BOCC ACTION:
December 3, 2020: Approval of ILAs with municipalities for Phase 3 funds
November 25, 2020: Opening of Nonprofit Assistance Grant Cycle
October 30, 2020: Opening of Small Business Assistance Grant Cycle (Round 2)
October 30, 2020: Start of Utilities (Keys Energy, FKEC, FKAA) Assistance for COVID-I9-
impacted Residents and Businesses Program
October 21, 2020: Approval of Allocation Plan for Phases 2 and 3
October 15, 2020: Issuance of Contracts to Food Providers
September 16, 2020: Approval of ILAs with municipalities for Phase I funds
September 4, 2020: Opening of Small Business Assistance Grant Cycle(Round I)
September 3, 2020: Approval of Allocation Plan for Phase 1
August 19, 2020: Approval of Funding Agreement with FHFC for Rent/Mortgage Assistance
Program
July 27,2020: Ratification of Funding Agreement Y2287 with Florida DEM
CONTRACT/AGREEMENT CHANGES:
n/a
STAFF RECOMMENDATION: Approval.
DOCUMENTATION:
Monroe County Cares Act Allocation Plan (Updated for FINAL Allocations)
FINANCIAL IMPACT:
Effective Date:
Expiration Date:
Total Dollar Value of Contract:
Total Cost to County:
Current Year Portion:
Budgeted:
Source of Funds:
CPI:
Indirect Costs:
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing: If yes, amount:
Grant:
County Match:
Insurance Required:
Additional Details:
REVIEWED BY:
Roman Gastesi Skipped 12/04/2020 12:52 PM
Bob Shillinger Completed 12/07/2020 10:42 AM
Purchasing Completed 12/07/2020 10:54 AM
Budget and Finance Completed 12/07/2020 11:01 AM
Maria Slavik Completed 12/07/2020 11:17 AM
Liz Yongue Completed 12/07/2020 11:28 AM
Board of County Commissioners Pending 12/09/2020 9:00 AM
MONROE COUNTY CARES
Monroe County CARES Act Program
t- G
d`,
MONROE COUNTY BOARD OF COUNTY
COMMISSIONERS
Mayor Michelle Coldiron
Mayor Pro Tern David Rice
Commissioner Craig Cates
Commissioner Eddie Martinez
Commissioner Mike Forster
OFFICE OF THE COUNTY ADMINISTRATOR
UPDATED TO REFLECT FINAL ALLOCATIONS
DECEMBER 2020
TABLE OF CONTENTS
INTRODUCTION I
BACKGROUND 2
MONROE COUNTY ALLOCATION AMOUNT 4
ELIGIBLE USE OF FUNDS 4
PHASE I ALLOCATIONS - 6
PUBLIC SAFETY AND HEALTH EXPENSES
SMALL BUSINESS ASSISTANCE GRANT PROGRAM
RESIDENTIAL RENT/MORTGAGE/UTILITY ASSISTANCE PROGRAM
The following are additions to the original Allocation Plan:
PHASE 2 ALLOCATIONS 7
SMALL BUSINESSES ASSISTANCE GRANT PROGRAM ROUND 2
NON-PROFIT SERVICES AND STABILIZATION ASSISTANCE PROGRAM
FOCUSED FUNDING FOR CRITICAL NEEDS
PHASE 3 ALLOCATIONS(PROPOSED/ESTIMATED) 8
PUBLIC SAFETY AND HEALTH EXPENDITURES
CONTINUED COMMUNITY NEEDS FUNDING IN EXISTING CATEGORIES
MONROE COUNTY CARES ACT FUNDING BUDGET(ALL 3 PHASES) 9
Wage
eb ptc *a,y r xg ,;;r' ." �5"` '' ;`0i s y s+,zg !%< 4+^t3;,),k1414
The Monroe County CARES Act Program is a grant program funded by an allocation to Monroe County from the
federal Coronavirus Aid, Relief,and Economic Security Act("CARES ACT'),through the State of Florida Division
of Emergency Management, to be used in assisting local governments in the recovery process from the COVID-19
pandemic. Monroe County created the Monroe County CARES Act Program to distribute the County's initial award
of CARES Act funds. �,N, ;2�t,.
'1i l.�`.. .,ui . : .1,3 P' :t {"T4#*� . :E ,tikv „ } 'file ,r,'i%-` il°,,,y' a,�
The pandemic necessitated Statewide and countywide measures to safeguard the public health to slow and stop the
spread of the COVID-19. The County responded quickly to the unfolding health crisis by standing up our Emergency
Operation Center, performing public health and safety measures, ensuring food and services to our vulnerable
populations, securing PPE and other necessary equipment and shifting the County's workforce to telework. The
municipalities and Constitutional Officers also took pro-active and protective steps, including implementing the
critically important checkpoint to discourage visitors driving in from neighboring"hotspots"and mitigate the spread
of the virus in Monroe. All local government entities coordinated with ongoing emergency actions by the State,
issuing guidance,complying with and enforcing the State's and County's emergency directives.
The State of Florida and Monroe County issued safer-at-home directives leading to the closure of all non-essential
businesses, causing the loss of jobs in those businesses, acutely impacting the tourism industry, the Florida Keys'
single most important industry.
The closures struck an immediate and significant blow to our entire economy,shuttering hotels,restaurants,bars,and
recreational and cultural enterprises for 10 weeks between March 23 and June I. Monroe's domestic and international
tourism stopped. Cruise ships halted operations and inbound passenger airline flights were virtually empty.
After re-opening on June I, businesses are active and tourists are returning but economy recovery is hampered by
persistent and climbing infection rates.
Monroe County's economy is tourism-based with approximately 35% of our jobs are in the tourism industry(State
of Florida Office of Economic and Demographic Research,May 2020).The vast majority of our 14,000 tourism jobs
are specifically in hotels,restaurants and bars.In terms of tourism employment as a percentage of total employment,
Monroe County is number one in the State(Economic Impact of Tourism in the Florida Keys, TDC 2018).
Thousands of workers were suddenly without jobs. Monroe's unemployment rate,which was the lowest in the State
in February at 2.8% shot to 8.4% in March. By April, it had climbed to 17.5%, and to 17.7% in May. These are
among the very highest rates in the State,and surpass the statewide unemployment rates.
Local government sales tax revenue receipts.plummeted. Through the months of April, May and June, the County
experienced a sudden and profound revenue loss even as we continued to provide core services.
Recognizing the economic disruption of social distancing directives to communities across the nation, Congress
passed the CARES Act on March 27, 2020, providing over $150 billion in direct federal assistance to states and
eligible local governments due to the COVID-I9 pandemic.
In June 2020 Governor DeSantis announced that the$1.275 billion of the$3.747 billion reserved for direct assistance
to eligible Florida local governments would be distributed to Florida counties having a population less than 500,000
("Small County")through an agreement with the State Division of Emergency Management(DEM). Small County
allocations are based on a methodology similar to that used for counties with a population greater than 500,000,who
received their funds direct from the US Treasury.
Each County accepting CARES Act funds must develop a plan for how they will use their CARES Act funding.The
plan must take into account local government,municipalities and constitutional officers.
Mage
All programs and costs identified in a plan must strictly adhere to the CARES Act criteria and the US Treasury's most
recent guidance on allowable activities and costs for governments, which includes but may not be limited to the
following:
• Medical expenses related to COVID-19, e.g., testing, emergency medical response expenses, public
telemedicine capabilities.
• Public health expenses related, e.g., communication and enforcement, purchase and distribution of PPE,
disinfection of public areas or facilities, public safety measures, quarantining individuals.
• Payroll expenses not budgeted and for certain individuals whose services are substantially dedicated to
mitigating or responding to COVID-19
• Expenses of actions to facilitate compliance with COVID-19 related public health measures.e.g.,food delivery
to certain populations, improvement of telework capabilities for public employees, paid sick, medical and
family leave under specific circumstances.
• Expenses associated with the provision of economic support in connection with COVID-19,e.g.,grants to small
businesses,payroll support,unemployment costs if such costs will not be reimbursed by the federal government
pursuant to the CARES Actor otherwise.
Specific unallowable costs include,but may not be limited to:
• Replacement of shortfalls in government revenues.
• Costs already accounted for in government budgets prior to March 27,2020.
• Non COVID-19 related expenditures.
• Cost incurred before March 1, 2020 and after December 30,2020.
• Damages or costs paid or reimbursed from other sources.
• Payroll for employees whose services/duties are not substantially dedicated to COVID-19.
• Reimbursement of donated services or supplies.
• State Medicaid cost share.
• Workforce bonuses.
• Severance payments.
• Legal settlements.
CARES Act funded programs and costs must also adhere to the following criteria:
• A necessary expenditure incurred due to the public health emergency with respect to the COVID-19.
• Costs were not accounted for in the County's budget prior to March 27, 2020(the date of enactment of the
CARES Act).
• Costs were incurred and paid during the period that begins on March 1,2020 and ending December 30,2020.
• Expenses not paid as of December 30 2020,will not be eligible for reimbursement and any unspent CARES
Act funds will revert back to the State.
• Timely reporting to DEM on progress and expenditures.
• Adherence to 2 CFR 200 in regards to all grant administration,procurement,contracting, audits, etc.
The US Treasury advised that local governments receiving CARES Act funds will be audited, and that costs
deemed unallowable will be subject to recoupment by the US Treasury.
Counties were further advised that their state revenue sharing payments would be reduced by the amount of any
costs deemed unallowable by the federal or state auditing entity.
Wage Page
r414, int c r .'ar '3T°860`.;±, ;a ,„ 'F ° ,f"
Monroe County s CARES Act total allocation from the State is projected to be$13,003,340.
• The initial 25% is an advance payment of$3,250,835.
• The remaining 75%, $9,752,505 will be available on a cost reimbursement basis.
The State of Florida will oversee these CARES Act funds allocated to Monroe County and has implemented the
following requirements:
• The State released an advanced payment("Phase 11 of 25%,or$3,250,835,to Monroe County,upon execution of
a sub-recipient funding agreement in late June 2020.
• All further funds ( Phase 21 are reimbursement-based, as needed. The State will issue further guidance on the
release of the balance of funds.
• The County will use the fund disbursement on eligible expenditures as defined by the CARES Act, and related
guidance from the U.S. Department of the Treasury.
• The County agrees to repay the State of Florida any portion of the disbursed funds that is unused,or is not utilized
in accordance with the CARES act stipulations.
• The County agrees to submit quarterly reports to FDEM detailing the expenditure of disbursed funds as well as
projections of eligible expenditures.
• All counties should provide funds to municipalities located within their jurisdiction on a reimbursement basis for
expenditures eligible under the CARES Act and related guidance.
• All funds must be fully expended (ie, invoiced and paid) by December 30, 2020, and any unspent funds as of
December 30,2020 shall revert to the State.
It is important to note that the FDEM's current CARES Act funding agreement with the County is specifically only
for$3.25 million. The agreement makes no reference to the County's full allocation amount.Thus,the allocation plan
accounts only for the receipt of$3,250,835
Per the terms and conditions of the executed agreement with the State, any further allocation will be a cost
reimbursement-based process. A cost reimbursement-based process will require that Monroe County expend its own
funds first, and then request and wait for reimbursement of the expenditures made. This requirement will be a
significant challenge given the County's COVID-19-related cash flow and budget constraints.
December Update: DEM relaxed the strict cost reimbursement requirement for Phase 3. allowing for Counties to
encumber the fiends rather than having to expend the funds first. We have to report our encumbered allocations to
DEM by December 3, 2020.
The funds must be used in accordance with the requirements of the CARES Act, guidance from the United States
Treasury, and the terms and conditions of the subrecipient agreement with the State of Florida Division of Emergency
Management.
Since passage of the CARES Act,the Treasury Department,the federal agency charged with oversight of the CARES
Act, has released guidance documents in the form of Guidance and Frequently Asked Questions to expound upon and
clarify allowable expenses. Per Treasury Guidance, expenditures must be used for actions taken to respond to the
public health emergency and these include:
o Expenditures incurred to allow the State or local government to respond directly to the emergency,
such as by addressing medical or public health needs, protective supplies, public safety measures, payroll
4 � Page
expenses for public safety, public health, health care, human services for services to mitigate or respond to
the COVID-I 9 crisis,expenses related to telework for public employees,etc.
o Expenditures incurred to respond to second-order effects of the emergency, such as by providing
economic support to those suffering from employment or business interruptions due to COVID-19-related
business closures.
Treasury guidance further makes clear that CARES Act funds to State and Local Governments may not be used to fill
shortfalls in government revenue. Although a broad range of uses is allowed,revenue replacement is not a permissible
use of CARES Act payments.
SIPage
?3n' ��. ,k'rsLrvx � 'r ^Yt ' a 'w '`"i .� Sfs t 'S, a � as 5 'fS.`ti
s-, ,
42 y.{ , 4 " ?f.6414 a s;t:L 'r3, ”4a"17 ".10-C:C‘ 4 .44t4,:4g4,*.„4,45;,
As previously noted,the State has advanced Monroe County 25%of its total allocation,or$3.25M. These funds have
been deposited in our account and we may expend them as soon as we determine an allocation plan.
Monroe County's allocations for Phase 1 funds of$3.25M are as follows:
I) ECONOMIC RELIEF TO THE COMMUNITY of Monroe County, inclusive of the
municipalities, suffering from COVID-19-related employment or business
interruptions, specifically:
o Residential Rent,Mortgage and Utility Relief: $200,000
Up to $200,000 for residents throughout Monroe County who have been
economically impacted by COVID-19, for example by being laid off, furloughed,
having their jobs eliminated, hours/wages reduced, etc impacted by COVID-19
related job loss or reduced hours.
o Small Business Assistance Grant Program: $1,000,000
$1,000,000 for small businesses throughout Monroe County experiencing
economic hardship as result ofthe closures and social distancing guidelines related
to the COVID-19 pandemic. This assistance is intended to offset the significant.
temporaq loss of revenue to these qualified businesses during this pandemic.
2) PUBLIC HEALTH AND SAFETY COSTS INCURRED BY LOCAL
GOVERNMENTAL ENTITIES for COVID-19 related response, mitigation and
recovery efforts,and CARES Act program implementation and compliance costs.
o Constitutional Officers: $1,300,000
Sheriff,Clerk of the Court, Tax Collector, Supervisor of Elections
o Monroe County and Municipalities: $680,000
Monroe County BOCC, City of Key West, City of Marathon, Village of
Islamorada,City of Key Colony Beach and City of Layton.
December Update: All allocations were expended as indicated above.
6lPage
On September 18, Governor Desantis announced the State of Florida's second round of disbursement (advance)
of$255M in CARES Act funding for the 55 counties with populations under 500,000.
For this second round(Phase 2), Monroe County will receive$2,600,668.
Monroe County's allocations for Phase 2 funds are as follows:
1) ECONOMIC RELIEF TO THE COMMUNITY of Monroe County,inclusive of the
municipalities, suffering from COVID-19-related employment or business
interruptions, specifically:
o Small Business Assistance Grant Program (Round 2) : $1,000,000
Up to $1,000,000 for small businesses throughout Monroe County experiencing
economic hardship as result of the closures and social distancing guidelines
related to the COVID-19 pandemic. This assistance is intended to offset the
signi'leant. temporary loss of revenue to these qualified businesses during this
pandemic.
o Non-Profit Grant Assistance Grant Program: $1,600,668
o Up to $1,000,000 for non-profit organizations throughout Monroe County
experiencing economic hardship due to increased service demands and/or
increased expenses as a result of the closures and social distancing
guidelines related to the COVID-19 pandemic. This assistance is intended
to support non-profits and their missions to help the residents and overall
community of Monroe County.
o Up to$600,668 for the delivery of critical services including: food, utilities,
childcare,medical and mental health.
December Update:
The full S 1 Al allocated to the Small Business Assistance Grant Program (Round 2) was expended
Some adjustments were made to the implementation of Phase 2 allocations, based on changing needs:
• For the Nonprofit Assistance Grant category S300,000 of the SI M allocated was expended(demand was
less than expected.)
• For the Critical Needs category, S342,200 of the S600,668 allocated was expended
• An additional S168,000 was added and expended for utility relief
• City of Key West was allocated 5789,887 toward the City's COVID-19 related expenditures.
• The adjustments total the amount of our Phase 2 allocation of$2,600,668.
7IPage
nc �Sr,
"x „ ,t`k xw+ `^ a.�§xl aupt rr'I"R1ti €'` `,a :ra`-''d tK �' ' . 'ti.#53 :n `ro P^r* i � v7,1/44
The State DEM has informed Counties that after the release of Phase 1 and Phase 2 funds via advances that the
remaining funds in our allocations will be remain with State and accessed only through a cost-reimbursement process.
However, the State, responding Counties' cash flow challenges, has provided valuable flexibility. It will allow us to
access funds in Phase 3,by informing them how as to how we plan to use the funds and encumbering them, rather than
requiring that we event(our own funds first and seek reimbursement.
For the purposes of being able position Monroe County to access our Phase 3 funds as soon as we wish,we are required
inform DEM as to Monroe County's allocations for Phase 3 funds.
This allocation plan will serve to provide that information and to outline our projected allocations Phase 3.
For Phase 3, Monroe County's remaining funds are$7,150,000.
Monroe County will allocate Phase 3 funds across the same categories we used for Phases 1 and 2:
1) ECONOMIC RELIEF TO THE COMMUNITY of Monroe County, inclusive of the
municipalities, suffering from COVID-19-related employment or business interruptions,
specifically:
o Additional Residential Rent and Mortgage Relief
o Residential and Business Utilities Assistance
o Critical Needs Support: Food, Utilities,Childcare, Medical and Mental Health
2) PUBLIC HEALTH AND SAFETY COSTS INCURRED BY LOCAL
GOVERNMENTAL ENTITIES for COVID-19 related response,mitigation and recovery
efforts, and CARES Act program implementation and compliance costs.
o Constitutional Officers:
Sheriff and Clerk of the Court
o Monroe County and Municipalities:
Monroe County BOCC, City of Key West, City of Marathon, Village of Islamorada,
City of Key Colony Beach and City of Layton.
SPENDING PLAN:The attached spreadsheet outlines the projected spending across these categories for Phases 1,2
and 3.
December Update: Funds have been allocated across most of the categories above, with the exception of the proposed
Additional Residential Rent and Mortgage Relief Monroe County implemented a S1AM Rental and Mortgage
Assistance Program with funds from the State's CARES Act funds through the Florida Housing Finance Corporation.
(Monroe was one of only a.few counties that received a 3'1 round offending thru this program.)
The attached ululated spreadsheet outlines the projected spending across all categories for Phases 1,2 and 3.
O is important to note that expenditures listed in in Phase 2 and Phase 3 represent our best estimates and projections
at this time, and are subject to revision based on actual expenditures and/or expenditure eligibility determinations by
DEM. Staff will work with DEM during the month of December to make any necessary adjustments to allocations to
ensure 100%utilization of available funds.
Wage
OVERVIEW OF ALLOCATION PLAN FOR PHASES 1, 2, 3
MONROE COUNTY CARES ACT FUNDING BUDGET
PHASE 1 PHASE 2 PHASE 3
ALLOCATION/ ALLOCATION/ ALLOCATION
ENCUMBERED ENCUMBERED
USE
Advance Advance Cost- Total
Reimbursement
3,250,835- 2,600,668 7,151,837 13,003,340
Community Need
Rent/Mort Relief/Utilities Assistance* 200,000 168,581 368,581
Small Business Assistance Grant Program 1,000,000 1,000,000 2,000,000
Non-Profit Stabilization Program 300,000 300,000
Critical Needs Food 342,200 325,000 667,200
General Government
COVID-19 related expenses,including Public
Safety Personnel Costs for all local governments
Monroe County 387,686 3,606,724 3,994,410
Muni-City of Key West 165,600 789,887 510,113 1,465,600'
Muni-City of Marathon 56,500 800,000 856,500
Muni-Village of Islamorada 40,900 800,000 r 840,900.
Muni-City of Key Colony Beach 5,000 100,000 105;000
Muni-City of Layton 1,200 10,000 ,.11,200
Constitutional-Sheriff 1,098,043 700,000 1,798,043'
Constitutional-Clerk 267,382 300,000 567,382
Constitutional-Tax Collector 24,008 - 34,008:
Constitutional-Prop Appraiser
Constitutional-Supervisor of Elections }};
Judicial Admin 4,516 4,9'16i
I Total 3,250,835 2,600,668 7,151,837 13,003,340
*Additionally, Monroe implemented a $1.4M Rent/Mortgage Assistance Program, with funding from State/FHFC
Cares Act funds.•
9IPage