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AGR-0974.Y.9 - ORANGE ELDERLY SERVICES INC - NINTH AMENDMENT TO OPERATING AGREEMENTAC,R-0Y7q -YM NINTH AMENDMENT TO OPERATING AGREEMENT THIS NINTH AMENDMENT TO OPERATING AGREEMENT (the "Ninth Amendment") is made and entered into as of A4 s+ , 2020, by and between the CITY OF ORANGE, a municipal corporation ("City"), and ORANGE ELDERLY SERVICES, INC., a California non-profit ("OES"), with reference to the following: A. City and OES entered into an Operating Agreement (Agreement No. 0974.Y) dated July 1, 2011, which is incorporated herein by this reference (the "Originak Agreement"); and B. City and OES amended the Original Agreement by a First Amendment to Operating Agreement (Agreement No. 0974.Y.1) dated August 23, 2012 (the "First Amendment"), to provide OES Executive Director with written notice of City's total not -to -exceed compensation amount for Fiscal Year 2013; and C. City and OES amended the First Amendment by a Second Amendment to Operating Agreement (Agreement No. 0974.Y.2) dated July 16, 2013 (the "Second Amendment"), to provide OES Executive Director with written notice of City's total not -to -exceed compensation amount for Fiscal Year 2014; and D. City and OES amended the Second Amendment by a Third Amendment to Operating Agreement (Agreement No. 0974.Y.3) dated June 14, 2016 (the "Third Amendment"), to extend the term of the Agreement for one additional five year term commencing July 1, 2016 andlerminating on June 30, 2021; and E. City and OES amended the Third Amendment by a Fourth Amendment to Operating Agreement, dated June 30, 2016 (Agreement No. 0974.Y.4) (the "Fourth Amendment"), to provide OES Executive Director with written notice of City's total not -to -exceed compensation amount for Fiscal Year 2017; and F. City and OES amended the Fourth Amendment by a Fifth Amendment to Operating Agreement (Agreement No. 0974.Y.5) dated July 10, 2017 (the "Fifth Amendment"), to provide OES Executive Director with written notice of City's total not -to -exceed compensation amount for Fiscal Year 2018; and G. City and OES amended the Fifth Amendment by a Sixth Amendment to Operating Agreement (Agreement No. 0974.Y.6) dated July 23, 2018 (the "Sixth Amendment"), to provide OES Executive Director with written notice of City's total not -to -exceed compensation amount for Fiscal Year 2019; and H. City and OES amended the Sixth Amendment by a Seventh Amendment to Operating Agreement (Agreement No. 0974.Y.7) dated July 17, 2019 (the "Seventh Amendment"), to provide OES Executive Director with written notice of City's total not -to -exceed compensation amount for Fiscal Year 2020; and I. City and OES amended the Seventh Amendment by an Eighth Amendment to Operating Agreement (Agreement No. 0974.Y.8) dated July 15, 2020 (the "Eighth Amendment"), to provide OES Executive Director with written notice of City's total not -to -exceed compensation amount for Fiscal Year 2020; and J. The Original Agreement and the First through Eighth Amendments are incorporated herein by this reference; and K. City and OES desire to further amend the Original Agreement to add coronavirus relief funds for the provision of a meal gap food delivery program for seniors experiencing food insecurity as a result of the COVID-19 pandemic. NOW, THEREFORE, the parties hereby agree as follows: Section 1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement. Section 2. Cross -References. City and OES agree that all references in this Eighth Amendment are deemed and construed to refer to the Original Agreement, as implemented by this Eight Amendment. Section 3. OES Responsibilities. During the period of time from July 31, 2020 until December 18, 2020, in additional to its other responsibilities as set forth in Section 3 of the Original Agreement, OES shall provide meal gap food delivery program services for senior citizens experiencing food insecurity, as directed by City and in compliance with the applicable provisions of the "Subrecipient Agreement Between the County of Orange and the City of Orange for Coronavirus Relief Funds for Food Delivery Expenses Incurred by the City," attached as Attachment 1 and incorporated herein by this reference. Section 4. Compensation. The total not -to -exceed for the extra meal gap food delivery program services to be rendered under this Ninth Amendment shall be THIRTY THOUSAND DOLLARS and 00/100 ($30,000.00) payable in one lump sum upon execution of this Ninth Amendment. Section 5. City Manager Authorization to Sign. As authorized by the City Council on July 14, 2020, the City Manager is authorized to approve and execute this Ninth Amendment. Section 6. Integration. This Ninth Amendment amends, as set forth herein, the Original Agreement and, except as specifically amended hereby, the Original Agreement shall remain in full force and effect. To the extent that there is any conflict or inconsistency between the terms and provisions of the First through Eighth Amendments and the terms and provisions of the Original Agreement, the terms and provisions of this Ninth Amendment shall control and govern the rights and obligations of the parties. IN WITNESS of this Agreement, the parties enter into this Agreement on the year and day first above written. OES" ORANGE ELDERLY SERVICES, INC., a California non-profit corporation. By: PrintedName: k.P3 i u < l BIZ Title: CITY" CITY OF ORANGE, a municipal corporation By: Otto, City Manager By: R APPROVED AS TO FORM: Print d Name: / 1`17 Title: SF—c e9 S ary A. tz, City A b NOTE: If CONSULTANT is a corporation, the City requires the following signature(s): 1) the Chairman of the Board, the President or a Vice -President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. 'If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement, must be provided to the City. ATTACHMENT I SUBRECIPIENT AGREEMENT BETWEEN THE COUNTY OF ORANGE AND THE CITY OF ORANGE FOR CORONAVIRUS RELIEF FUNDS FOR FOOD DELIVERY EXPENSES INCURRED BY THE CITY SUBRECIPIENT AGREEMENT BETWEEN THE COUNTY OF ORANGE AND THE CITY OF ORANGE FOR CORONAVIRUS RELIEF FUNDS FOR FOOD DELIVERY EXPENSES INCURRED BY THE CITY This Subrecipient Agreement (the "Agreement") is made and entered into by and between the County of Orange, a political subdivision of the State of California, hereinafter referred to as "County," and the City of Orange, a municipal corporation, hereafter referred to as "Subrecipient," with the County and Subrecipient referred to as "Party," or collectively as "Parties." WHEREAS, on February 26, 2020, the County Health Officer declared a local health emergency based on an imminent and proximate threat to public health from the introduction of a novel coronavirus (named "COVID-19") in Orange County (the COVID-19 Emergency"); and WHEREAS, on March 2, 2020, the Board of Supervisors adopted Resolution No. 2020-11 ratifying the local health emergency declared by the County's Health Officer; and WHEREAS, on March 4, 2020, the Governor of the State of California declared a State of Emergency to exist in California as a result of the threat of COVID-19; and WHEREAS, on March 13, 2020, the President of the United States issued a Proclamation on Declaring a National Emergency Concerning the COVID-19 Outbreak; and WHEREAS, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by Congress and signed into law by the President of the United States on March 27th, 2020; and WHEREAS, the CARES Act established the Coronavirus Relief Fund and the County received an allocation of funds from the Coronavirus Relief Fund under section 601(a) of the Social Security Act, as added by section 5001 of the CARES Act; and WHERAS, the CARES Act provides that payments from the Coronavirus Relief Fund may only be used to cover costs that (1) are necessary expenditures incurred due to the public health emergency with respect to the COVID-19; (2) were not accounted for in the budget most recently approved as of March 27, 2020 (the date of enactment of the CARES Act) for the State or local government; and (3) were Page 1 of 9 Attachment 1: Page 1 of 24 incurred during the period that begins on March 1, 2020, and ends on December 30, 2020; and WHEREAS, the Department of Treasury has issued guidance that eligible expenses that can be paid from Coronavirus Relief Fund monies include expenses to facilitate compliance with COVID-19-related public health measures, such expenses for food delivery to residents, including, for example, senior citizens and other vulnerable populations, to enable compliance with COVID-19 public health precautions; and WHEREAS, the Department of Treasury has issued guidance that the County may transfer funds to a unit of government within its borders provided that the transfer qualifies as a necessary expenditure incurred due to the public health emergency and meets the other criteria of section 601(d) of the Social Security Act; and WHEREAS, on June 2, 2020, the Orange County Board of Supervisors authorized the distribution of one million ($1,000,000) dollars in funds it received from the Coronavirus Relief Fund to be used for meal gap programs in each Supervisorial District to aid seniors, persons with disabilities, and other individuals experience food insecurity as a result of the COVID-19 pandemic; and WHEREAS, in order to provide funds for the Subrecipient to pay necessary expenditures it has or will incur due to the COVID-19 public health emergency, the Parties have agreed that the County shall transfer the grant amount described herein to Subrecipient. NOW, THEREFORE, the Parties mutually agree as follows: 1. TERM OF AGREEMENT. The term of this Agreement begins on the date when fully executed by the Parties, and terminates on June 30, 2021, or when all of the Parties' obligations under this Agreement are fully satisfied, whichever occurs earlier. 2. USE OF GRANT AMOUNT. a. Subrecipient shall use the grant amount provided under this Agreement to pay for Eligible Expenses that: (1) are necessary expenditures incurred due to the public health emergency with respect to COVID-19; (2) were not accounted for in the budget most recently approved by Subrecipient as of March 27, 2020; and (3) were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020. Page 2 of 9 Attachment 1: Page 2 of 24 b. The term "Eligible Expenses," as used in this Agreement, shall mean expenses for food delivery to residents, including, for example, senior citizens and other vulnerable populations, to enable compliance with COVID- 19 public health precautions. C. The following is a nonexclusive list of expenditures that shall not constitute Eligible Expenses payable from the grant amount: 1) Damages covered by insurance. 2) Payroll or benefits expenses for employees whose work duties are not. substantially dedicated to mitigating or responding to the COVID-19 public health emergency. 3) Expenses that have been or will be reimbursed under any federal program, such as the reimbursement by the federal government pursuant to the CARES Act of contributions by States to State unemployment funds. 4) Reimbursement to donors for. donated items or services. 5) Workforce bonuses other than hazard pay or overtime. 6) Severance pay. 7) Legal settlements. d. Subrecipient must utilize the grant amount in accordance with all Federal and State laws, including but not limited to 42 U.S.C.- § 801, subsection (d), and all, applicable regulations and guidelines, including guidance issued by the .Department of Treasury regarding costs that are payable from Coronavirus Relief Funds, which includes but is not limited to Guidance for State, Territorial, Local, and Tribal Governments dated April 22, 2020 (Exhibit A) and Coronavirus Relief Fund Frequently Asked Questions Updated as of May 28, 2020 (Exhibit B). Page 3 of 9 Attachment 1: Page 3 of 24 3. PAYMENT OF GRANT AMOUNT a. The County shall pay Subrecipient a grant amount of 229,825.42 within 10 business days of the full execution of this Agreement. All of Subrecipient's expenditures of the grant amount must be for Eligible Expense as described in Paragraph 2 of this Agreement. The grant amount represents the amount allocated to Subrecipient based on population pursuant to the authority delegated by the Board of Supervisors to the County Executive Officer on June 2, 2020. b. It is understood that the County makes no commitment to fund this Agreement beyond the terms set forth herein. C. If Subrecipient has not spent any portion of the grant amount it has received under this Agreement to cover Eligible Expenses by December 30, 2020, Subrecipient shall return to the County by February 1, 2021 the amount remaining unspent as of December 30, 2020. 4. STATUTES AND. REGULATIONS APPLICABLE TO GRANT. Subrecipient must comply with all applicable requirements of State, Federal, and County of Orange laws, executive orders, regulations, program and administrative requirements, policies and any other requirements governing this Agreement. Subrecipient must comply with applicable State and Federal ,laws and regulations pertaining to labor, wages, hours, and other conditions of employment. Subrecipient must comply with new, amended, or revised laws, regulations, and/or procedures that apply to the performance of this Agreement. These requirements include, but are not limited to: a. Office of Management and Budget (OMB) Circulars. . Subrecipient must comply with. OMB Circulars, as applicable: OMB Circular A-21 (Cost Principles. for Educational Institutions); OMB Circular A-87, (Cost Principles for State, Local, and Indian Tribal Governments);. OMB Circular A-102 (Grants and. Cooperative Agreements with State and Local Governments); Common Rule, Subpart C for public agencies or OMB Circular A-110 (Uniform Administrative Requirements for Grants and Other Agreements with Institutions of Higher Education, Hospitals and Other Non - Profit Organizations); OMB Circular A-122 (Cost Principles for Non -Profit Organizations); OMB Circular A-133 (Audits of States,' Local Governments, and Non -Profit Organizations. b. Sinale Audit Act. Since Federal funds are used in the performance of this Agreement, Subrecipient must, as applicable, adhere to Page 4 of 9 Attachment 1: Page 4 of 24 the rules and regulations of the Single Audit Act (31 USC Sec. 7501 et seq.), OMB Circular A-133 and any administrative regulation or field memoranda implementing the Act. C. Political Activity Prohibited. None of the funds, materials; property or services provided directly or indirectly under this Agreement may be used for any partisan political activity, or to further the election or defeat of any candidate for public office. Funds provided under this Agreement may not be used for any purpose designed to support or defeat any pending legislation or administrative regulation. 5. COMPLIANCE WITH GRANT REQUIREMENTS. To obtain the ,grant funds, the Department of the Treasury required an authorized representative of the County to agree to certain promises regarding the way the grant funds would be spent. This certification is attached hereto as Exhibit C. By signing this certification, ` the County made material representations to the Department of Treasury in order to receive payments from the Department of Treasury pursuant to section 601(b) of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. ' 116-136, div. A, Title V (Mar. 27, 2020). In accordance with Paragraph 11;' Subrecipient agrees to indemnify, defend, and hold harmless the County of Orange for any sums the State or Federal government contends or determines Subrecipient used in violation of the certification. Subrecipient shall immediately return to the County any funds the County or any responsible State or Federal agency, including the Department of Treasury, determines the Subrecipient has used in a manner that is inconsistent with Paragraph 2 of this Agreement. The provisions of this paragraph shall survive termination of this Agreement. 6. REPORTS. a. Progress Report,. On October 1, 2020, Subrecipient shall provide a report to the County that shall: (1) identify the Eligible Expenses paid from the grant amount as of September 15, 2020; (2) demonstrate how Subrecipient used the grant amount consistent with the use requirements of Paragraph 2; and (3) identify the balance of the grant amount that Subrecipient has not spent. b. Final Report. Upon the earlier of Subrecipient's expenditure of . the balance of the grant amount or January 15, 2021, Subrecipient shall provide a report to the County that shall: (1) identify the Eligible Expenses paid from the grant amount as of December 30, 2020; (2) demonstrate how Subrecipient used the grant amount consistent with the use requirements of Page 5 of 9 Attachment 1: Page 5 of 24 Paragraph 2; and (3) identify the balance of the grant amount that Subrecipient has not spent, if any. C. The Subrecipient shall provide a certification signed by its chief executive officer with each report required under this Paragraph 6 that the . statements contained in the report are true and that the expenditures described in the report comply with the uses permitted under Paragraph 2. d. The Subrecipient shall maintain supporting documentation for the reports required by this Paragraph 6 consistent with the requirements of. Paragraph 7. 7. RECORDS MAINTENANCE. Records, in their. original form, must be maintained in accordance with requirements prescribed by the County with respect to all matters specified in this Agreement. Original forms are to -be maintained on file for all documents specified in this Agreement. Such records must be retained for a period four (4) years after termination of this Agreement and after final disposition . of all pending matters. "Pending matters" include, but are not limited to, an audit, litigation or other actions involving records. Records, in their original form pertaining to matters covered by this Agreement, must at all times be retained within the County of Orange unless authorization to remove them is granted. in writing by the County. 8. RECORDS INSPECTION. At any time during normal, business hours and as often as either the County, Inspector General acting pursuant to the Inspector General Act of 1978, or the Auditor General of the State of California may deem necessary, Subrecipient must make available for examination all of its records with respect to all matters covered by this Agreement. The County, Inspector General, and the Auditor General of the State of California each have the authority to: audit, examine and make excerpts or transcripts from records, including all Subrecipient's invoices, materials, payrolls, records of personnel, conditions of employment and other data relating to all matters covered by this Agreement. Subrecipient agrees to provide any reports requested by the County regarding performance of this . Agreement. With respect to inspection of Subrecipient's records, the County may require that Subrecipient provide supporting documentation . to substantiate Subrecipient's expenses with respect to the Subrecipient's use or expenditure of the grant amount. 9. INDEPENDENT CONTRACTOR. The Subrecipient shall be considered an independent contractor and neither the Subrecipient, its employees, nor anyone working under the Subrecipient shall be considered an agent or an employee of County. Neither the Subrecipient, its employees nor anyone working under the Page 6 of 9 Attachment 1: Page 6 of 24 Subrecipient shall qualify for workers' compensation or other fringe benefits of any kind through County. 10. PERMITS, LICENSES, APPROVALS, AND LEGAL OBLIGATIONS. Subrecipient shall be responsible for obtaining any and all permits, licenses, and approvals required for performing any work under this Agreement. Subrecipient shall be responsible for observing and complying with any applicable Federal, State, or local laws, or rules or regulations affecting any such work. Subrecipient shall provide copies of permits and approvals to the County upon request. 11. INDEMNITY. The Subrecipient agrees to indemnify, defend with counsel approved in writing by County, and hold County, its elected and appointed officials, officers, employees and agents and those special districts and agencies which County's Board of Supervisors acts as the governing Board harmless from any claims, demands or liability of any kind or nature, including but not limited to personal injury or property damage, arising from or related to the Subrecipient's receipt of the grant amount under this Agreement, including any claims that the grant amount paid by the County under this Agreement were not used consistent with the restrictions on the use of Coronavirus Relief Funds (42 U.S.C. § 801) and the regulations and guidance issued by the Department of Treasury regarding the use of such funds. The. provisions of this paragraph shall survive the termination of this Agreement. 12. NOTICES. Any and all notices, requests demands and other communications contemplated, called for, permitted, or required to be given hereunder shall be in writing. Any written communications shall be deemed to have been duly given upon actual in -person delivery, if delivery is by direct hand, or upon delivery on the actual day of receipt or no greater than four (4) calendar days after being mailed by US certified i or registered mail, return receipt requested, postage prepaid, whichever occurs first. The date of mailing shall count as the first day. All communications shall be addressed to the appropriate party at the address stated herein or such other address as the parties hereto may designate by written notice from time to time in the manner aforesaid. I Page 7 of 9 Attachment 1: Page 7 of 24 Subrecipient: Rick Otto, City Manager City of Orange 300 E. Chapman Avenue Orange, CA 92866 County: Tara Campbell, Chief of Staff Office of Orange County Supervisor Donald P. Wagner Nall of Administration 333 W. Santa Ana Blvd., Fifth Floor Santa Ana, CA 92701 13. DEFAULTS. Should either Party fail for any reason to comply with the contractual obligations of this Agreement within the time specified by this Agreement, the non -breaching Party reserves the right to terminate the Agreement, reserving all rights under State and Federal law. 14. ATTORNEY FEES. In any action or proceeding to enforce or interpret any provision of this Agreement, each Party shall bear its own attorney's fees, costs, and expenses. 15. ENTIRE CONTRACT: This Agreement contains the entire contract between the Parties with respect to the matters herein, and there are no restrictions, promises, warranties or undertakings other than those set forth herein or referred to herein. No exceptions, alternatives, substitutes or revisions are valid or binding on the parties unless authorized by the Parties in writing. 16. AMENDMENTS1. No alteration or variation of the terms of this Agreement shall be valid unless made in writing and signed by the parties; no oral understanding or agreement not incorporated herein shall be binding on either of the Parties; and no exceptions, alternatives, substitutes or revisions are valid or binding on County unless authorized by County in writing. 17. COUNTERPARTS. This Agreement may be executed in counterpart originals, each of which shall be deemed to constitute an original agreement, and all of which shall constitute one agreement. The execution of one counterpart by any Party shall have the same force and effect as if that Party had signed all other counterparts. Page 8 of 9 Attachment 1: Page 8 of 24 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the day and year dated below. CITY OF ORANGE COUNTY OF ORANGE A California Municipal Corporation A political subdivision of the State of California By: By: liid,(/ ?Wichelle Steel, C ai oman Title] Date: 6-15-, ZO Date: Lo — `a 3 —mob ATTEST m , By: Robin Stieler Clerk of the Board of Supervisors County of Orange, California APPROVED AS TO FORM: By. , City Attorney Date: 10 15 — 10 By: Mark Servino Supervising Deputy County Counsel Date: r.. /2 Z/ 2 J Page 9 of 9 Exhibit A Attachment 1: Page 10 of 24 Coronavirus Relief Fund Guidance for State, Territorial, Local, and Tribal Governments April 22, 2020 The purpose of this document is to provide guidance to recipients of the funding available under section 601(a) of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). The CARES Act established the Coronavirus Relief Fund (the "Fund") and appropriated $150 billion to the Fund. Under the CARES Act, the Fund is to be used to make payments for specified uses to States and certain local governments; the District of Columbia and U.S. Territories (consisting of the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands); and Tribal governments. The CARES Act provides that payments from the Fund may only be used to cover costs that — are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19); 2. were not accounted for in the budget most recently approved as of March 27, 2020 (the date of enactment of the CARES Act) for the State or government; and 3. were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020.' The guidance that follows sets forth the Department of the Treasury's interpretation of these limitations on the permissible use of Fund payments. Necessary expenditures incurred due to the public health emergency The requirement that expenditures be incurred "due to" the public health emergency means that expenditures must be used for action taken to respond to the public health emergency. These may include expenditures incurred to allow the State, territorial, local, or Tribal government to respond directly to the emergency, such as by addressing medical or public health needs, as well as 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. Funds may not be used to fill short: otherwise qualify under the statute. not a permissible use of Fund payn The statute also specifies that ex of the Treasury understands this intended use in the reasonable ii payments. in government revenue to cover expenditures that would not hough a broad range of uses is allowed, revenue replacement is tures using Fund payments must be "necessary." The Department broadly to mean that the expenditure is reasonably necessary for its nt of the government officials responsible for spending Fund Costs not accounted for in the budget most recently approved as of March 27, 2020 The CARES Act also requires that payments be used only to cover costs that were not accounted for in the budget most recently approved asp of March 27, 2020. A cost meets this requirement if either (a) the cost cannot lawfully be funded using -a line item, allotment, or allocation within that budget or (b) the cost See Section 601(d) of the Social Security Act, as added by section 5001 of the CARES Act. Attachment 1: Page 11 of 24 is for a substantially different use from any expected use of funds in such a line item, allotment, or allocation. The "most recently approved" budget refers to the enacted budget for the relevant fiscal period for the particular government, without takin into account subsequent supplemental appropriations enacted or other budgetary adjustments made by that government in response to the COVID-19 public health emergency. A cost is not considered to have been accounted for in a budget merely because it could be. met using a budgetary stabilization N4 rainy.day fund, or similar reserve account. Costs incurred during the period that begins on March 1, 2020, and ends on December 30, 2020 A cost is "incurred" when the responsible unit of government has expended funds to cover the cost. Nonexclusive examples of eligible e. Eligible expenditures include, but are 1. Medical expenses such as: COVID-19-related expel Expenses of establishing COVID-19 treatment cal Costs of providing COV. Emergency medical resp to COVID-19. Expenses for establishinj related treatment. 2. Public health expenses such Expenses for communicE governments of public hf Expenses for acquisition sanitizing products and p social workers, child pro for older.adults and indii health or safety workers Expenses for disinfection to the COVID-19 public Expenses for technical a: COVID-19-related threat Expenses for public safer Expenses for quarantinin 3. Payroll expenses for public s employees whose services ar 19 public health emergency. not limited to, payment for: of public hospitals, clinics, and similar facilities.. aporary public medical facilities and other measures to increase ty, including related construction costs. 19 testing, including serological testing. e expenses, including emergency medical transportation, related and operating public telemedicine capabilities.for COVID-19- and enforcement by State, territorial, local; and Tribal. orders related to COVID-19. nd distribution of medical and protective supplies, including . - rsonal protective equipment, for medical personnel, police officers, action services, and child welfare officers, direct service providers duals with disabilities in community settings, and other public 1 connection with the COVID-19 public health emergency. of public areas and other facilities, e.g., nursing homes, in response ealth emergency. istance to local authorities or other entities on mitigation of to public health and safety. measures undertaken in response to COVID-19. individuals. ety, public health, health care, human services, and similar substantially dedicated to mitigating or responding to the COVID- 2 Attachment 1: Page 12 of 24 4. Expenses of actions to facilitate compliance with COVID-19-related public health measures, such as: Expenses for food delivery to residents, including, for example, senior citizens and other vulnerable populations, to enable compliance with COVID-19 public health precautions. Expenses to facilitate distance learning, including technological improvements, in connection with school closings to enable compliance with COVID-19 precautions. Expenses to improve telework capabilities for public employees to enable compliance with COVID-19 public health precautions. Expenses of providing paid sick and paid family and medical leave to public employees to enable compliance with COVID-19 public health precautions. COVID-19-related expenl es of maintaining state prisons and county jails, including as relates to sanitation and improve ent of social distancing measures, to enable compliance with COVID-19 public health recautions. Expenses for care for homeless populations provided to mitigate COVID-19 effects and enable compliance with 61 OVID-19 public health precautions. 5. Expenses associated with the provision of economic support in connection with the COVID-19 public health emergency, such as: Expenditures related to tlie provision of grants to small businesses to reimburse the costs of business interruption caused by required closures. Expenditures related to a State, territorial, local, or Tribal government payroll support program. Unemployment insurance costs related to the COVID-19 public health emergency if such costs will not be reimbursed by the federal government pursuant to the CARES Act or otherwise. 6. Any other COVID-19-related expenses reasonably necessary to the function of government that satisfy the Fund's eligibility criteria. Nonexclusive examples of ineligible expenditures` The following is a list of examples o costs that would not be eligible expenditures of payments from the Fund. 1. Expenses for the State share of Medicaid.3 2. Damages covered by 3. Payroll or benefits expenses for employees whose work duties are not substantially dedicated to mitigating or responding to the COVID-19 public health emergency. 2 In addition, pursuant to section 5001(b), of the CARES Act, payments from the Fund may not be expended for an elective abortion or on research in whi& a human embryo is destroyed, discarded, or knowingly subjected to risk of injury or death. The prohibition on payment for abortions does not apply to an abortion if the pregnancy is the result of an act of rape or incest; or in the case where a woman suffers from a physical disorder, physical injury, or physical illness, including a life -endangering physical condition caused by or arising from the pregnancy itself, that would, as certified by a physician, place the woman in danger of death unless an abortion is performed. Furthermore, no government which receives payments from the Fund may discriminate against a health care entity on the basis that the entity does not provide, pay for, provide coverage of, or refer for abortions. 3 See 42 C.F.R. § 433.51 and 45 C.F.R. § 75.306. Attachment 1: Page 13 of 24 4. Expenses that have been or will be reimbursed under any federal program, such as the reimbursement by the federal government pursuant to the CARES Act of contributions by States to State unemployment funds. 5. Reimbursement to donors fordonateditems or services. 6. Workforce bonuses other than hazard pay or overtime. 7. Severance pay. 8. Legal settlements. 4 Attachment 1: Page 14 of 24 i Exhibit B Attachment 1: Page 15 of 24 Coronavirus Relief Fund jFrequently Asked Questions j Updated as of May 4, 2020 i The following answers to frequently asked questions supplement Treasury's Coronavirus Relief Fund Fund") Guidance for State, Territorial, Local, and Tribal Governments, dated April 22, 2020, Guidance").' Amounts paid from the Fund are subject to the restrictions outlined in the Guidance and set forth in section 601(d) of the Social Security Act, as added by section 5001 of the-Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). Eligible Expenditures Are governments required to submit proposed expenditures to Treasuryfor approval? No. Governments are responsible fora making determinations as to what expenditures are necessary due to the public health emergency with respect to COVID-19 and do not need to submit any proposed expenditures to Treasury. ' The Guidance says that funding can be used to meet payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. How does a government determine whether payroll expenses for a given employee satisfy the "substantially dedicated" condition? The Fund is designed to provide read the COVID-19 public health emerges in light of the emergency nature of th presume that payroll costs for public substantially dedicated to mitigating chief executive (or equivalent) of the otherwise. funding to address unforeseen financial needs and risks created by y. For this reason, and as a matter of administrative convenience program, a State, territorial, local, or Tribal government may alth and public safety employees are payments for services responding to the COVID-19 public health emergency, unless the levant government determines that specific circumstances indicate The Guidance says that a cost was nPt accounted for in the most recently approved budget if the cost is for a substantially different use fro any expected use of fundsin such a line item, allotment, or allocation. What would qualify as a"substantially different use"for purposes of the Fund eligibility? Costs incurred for a "substantially di personnel and services that were bud entirely to the COVID-19 public hea functions. This would include, for e. compliance with COVID-19 public 1 enforcing social distancing measure; enforcement of stay-at-home orders; develop online learning capabilities, part of the staff or faculty's ordinary erent use" include, but are not necessarily limited to, costs of eted for in the most recently approved budget but which, due h emergency, have been diverted to substantially different ample, the costs of redeploying corrections facility staff to enable alth precautions through work such as enhanced sanitation or the costs of redeploying police to support management and r the costs of diverting educational support staff or faculty to ach as through providing information technology support that is not esponsibilities. Note that a public function does not become a "substantially different use" merely because it is provided from a different location or through a different manner. For example, although developing online The Guidance is available at hqs://home.treasuLy. ov/system/files/136/Coronavirus-Relief-Fund-Guidance-for- State- Territorial-Local-and-Tribal-Governments. pdf. I 1 i Attachment 1: Page 16 of 24 instruction capabilities may be a sul substantially different use of public May a State receiving a payment Yes, provided that the transfer qualif emergency and meets the other critei subject to recoupment by the Treasm section 601(d).of the Social Security May a unit of local government government? Yes. For example, a county may trE county or city may transfer funds to expenditure incurred due to the pub'. the Social Security Act outlined in t city would not be permissible if the revenue to cover expenditures that N ally different use of funds, online instruction itself is not a than classroom instruction. funds to a local government? s as a necessary expenditure incurred due to the public health of section 601(d) of the Social Security Act. Such funds would be Department if they have not been used in a manner consistent with a Fund payment transfer funds to another unit of fer funds to a city, town, or school district within the county and a State, provided that the transfer qualifies as. a necessary health emergency and meets the other criteria of section 601(d) of Guidance. For example, a transfer from a county to a constituent ids were intended to be used simply to fill shortfalls in government zld not otherwise qualify as an eligible expenditure Is a Fund payment recipient requireto transfer funds to a smaller, constituent unit of government within its borders? No. For example, a county recipient s not required to transfer funds to smaller cities within the county's borders. Are recipients required to use otherj ederal funds or seek reimbursement under other federal programs before using Fund payments to satis 5, eligible expenses? No. Recipients may use Fund payme is for any expenses eligible under section 601(d) of the Social Security Act outlined in the Guidance. Fund payments are not required to be used as the source of funding of last resort. However, as noted below, recipients may not use payments from the Fund to cover expenditures for which they will receive reimbursement. Are there prohibitions on combininga transaction supported with Fund payments' with other CARES Act funding or COVID-19 relief Fe eral funding? Recipients will need to consider the plicable restrictions and limitations of such other sources of funding. In addition, expenses that h ve been or will be reimbursed under any federal program; such as the reimbursement by the federal go ernment pursuant to the CARES Act of contributions by States to State unemployment funds, are not eligible uses of Fund payments. Are States permitted to use Fund payments to support state unemployment insurance funds generally? To the extent that the costs incurred by a state unemployment insurance fund are incurred due to the COVID- 19 public health emergency, a State may use Fund payments to make payments to its respective state unemployment insurance fund, separate and apart from such State's obligation to the unemployment insurance fund as an employer. This will permit States to use Fund payments to prevent expenses related to the public health emergency from ausing their state unemployment insurance funds to become insolvent. 2 Attachment 1: Page 17 of 24 Are recipients permitted to use the recipient as an employer? Yes, Fund payments may be use employer (for example, as a reimbur such costs will not be reimbursed by ay for unemployment insurance costs incurred by insurance costs incurred by the recipient as an employer) related to the COVID-19 public health emergency if federal government pursuant to the CARES Act or otherwise. The Guidance states that the Fund may support a "broad range of uses" including payroll expenses for several classes of employees whose services are "substantially dedicated to mitigating or responding to the COVID-19 public health emergency." What are some examples of types of covered employees? The Guidance provides examples of expenses under the Fund. These c1w human services, and similar employe responding to the COVID-19 public employees who could have been furl perform previously unbudgeted func COVID-19 public health emergency benefit costs of educational support necessary to continue educational in; see the Guidance for a discussion of most recently approved as of March ad classes of employees whose payroll expenses would be eligible s of employees include public safety, public health, health care, whose services are substantially dedicated to mitigating or alth emergency. Payroll and benefit costs associated with public ghed or otherwise laid off but who were instead repurposed to ns substantially dedicated to mitigating or responding to the also covered. Other eligible expenditures include payroll and ff or faculty responsible for developing online learning capabilities action in response to COVID-19-related school closures. Please iat is meant by an expense that was not accounted for in the budget 52020. In some cases, first responders and citical health care workers that contract COVID-19 are eligible for workers' compensation coverage Is the cost of this expanded workers compensation coverage eligible? Increased workers compensation cost to the government due to the COVID-19 public health emergency incurred during the period beginning arch 1, 2020, and ending December 30, 2020, is an eligible expense. If a recipient would have decommiss'oned equipment or not renewed a lease on particular office space or equipment but decides to continue to use the equipment or to renew the lease in order to respond to the public health emergency, are the costs associated with continuing to operate the equipment or the ongoing lease payments eligible expenses? Yes. To the extent the expenses were previously unbudgeted and are otherwise consistent with section 601( d) of the Social Security Act out fined in the Guidance, such expenses would be eligible. May recipients provide stipends to employees for eligible expenses (for example, a stipend to employees to improve telework capabilities) rather than require employees to incur the eligible cost and submit for reimbursement? Expenditures paid for with.payments ifrom the Fund must be limited to those that are necessary due to the public health emergency. As such, unless the government were to determine that providing assistance in the form of a stipend is an administrative necessity, the government should provide such assistance on a reimbursement basis to ensure as much as possible that funds are used to cover only eligible expenses. Attachment 1: Page 18 of 24 May Fund payments be used for COVID-19 public health emergency recovery planning? Yes. Expenses associated with conducting a recovery planning project or operating a recovery coordination office would be eligible, if the expenses otherwise meet the criteria set forth in section 601(d) of the Social Security Act outlined in the Guidance. Are expenses associated with contact] tracing eligible? Yes, expenses associated with contract tracing are eligible. To what extent may a government ud Fund payments to support the operations of private hospitals? Governments may use Fund paymentJ to support public or private hospitals to the extent that the costs are necessary expenditures incurred due tI the COVID-19 public health emergency, but the form such assistance would take may differ. In articular, financial assistance to private hospitals could take the form of a grant or a short-term loan. May payments from the Fund be use to assist individuals with enrolling in a government benefit program for those who have been laig off due to COVID-19 and thereby lost health insurance? Yes. To the extent that the relevant g vernment official determines that these expenses are necessary and they meet the other requirements set forth in section 601(d) of the Social Security Act outlined in the Guidance, these expenses are eligible May recipients use Fund payments tq facilitate livestock depopulation incurred by producers due, to supply chain disruptions? Yes, to the extent these efforts are de med necessary for public health reasons or as a form of economic support as a result of the COVID-19 4ealth emergency. Would providing a consumer grant Program to prevent eviction and assist in preventing homelessness be considered an eligible expense? Yes, assuming that the recipient consi ders the grants to be a necessary expense incurred due to the COVID-19 public health emergency and the grants meet the other requirements for the use of Fund payments under section 601(d) of the Social Security Act outlined in the Guidance. As a general matter, providing assistance to recipients toe able them to meet property tax requirements would not be an eligible use of funds, but exceptions may be made in the case of assistance designed to prevent foreclosures. May recipients create a "payroll support program "for public employees? Use of payments from the Fund to cover payroll or benefits expenses of public employees are limited to those employees whose work duties are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. May recipients use Fund payments to cover employment and training programs for employees that have been furloughed due to the public health emergency? Yes, this would be an eligible ea and training programs would be if the government determined that the costs of such employment ary due to the public health emergency. 4 Attachment 1: Page 19 of 24 May recipients use Fund payments t provide emergency financial assistance to individuals and families directly impacted by a loss of income due to the COVID-19 public health emergency? Yes, if a government determines such assistance to be a necessary expenditure. Such assistance could include, for example, a program to as ist individuals with payment of overdue rent or mortgage payments to avoid eviction or foreclosure or uni oreseen financial costs for funerals and other emergency individual needs. Such assistance should be stru tured in a manner to ensure as much as possible, within the realm of what is administratively feasible, that such assistance is necessary. The Guidance provides that eligible xpenditures may include expenditures related to the provision of grants to small businesses to reimbu se the costs of business interruption caused by required closures. What is meant by a "small business, "and is the Guidance intended to refer only to expenditures to cover administrative expenses of suc a grant program? Governments have discretion to dete 'ne what payments are necessary. A program that is aimed at assisting small businesses with the costs of business interruption caused by required closures should be tailored to assist those businesses innI ed of such assistance. The amount of a grant to a small business to reimburse the costs of business intern ption caused by required closures would also be an eligible expenditure under section 601(d) of the Social Security Act, as outlined in the Guidance. The Guidance provides that expense associated with the provision 'of economic support in connection with the public health emergency, su ch as expenditures related to the provision of grants Ito small businesses to reimburse the costs of lousiness interruption caused by required closures, would constitute eligible expenditures of F nd payments. Would such expenditures be eligible in the absence of a stay-at-home order? Fund payments may be used for econ mic support in the absence of a stay-at-home order if such expenditures are determined by the government to be necessary. This may include, for example, a grant program to benefit small businesses that close voluntarily to promote social distancing measures or that are affected by decreased customer demand as a result of the COVID-19 public health emergency. May Fund payments be used to taxes? Fund payments may not be used for assistance to meet tax obligations. May Fund payments be used to rep direct subsidy payment to all utility Fund payments may not be used for unpaid utility fees. Fund payments i extent that the subsidy payments are the COVID-19 public health emerge Security Act outlined in the Guidanc government could provide grants to utility fees and thereby continue to r Could Fund payments be used for economic development in a comm, impacted property owners with the payment of their property revenue replacement, including the provision of foregone utilityfees? If not, can Fund payments be used as a Punt holders? fernment revenue replacement, including the replacement of r be used for subsidy payments to electricity account holders to the med by the recipient to be necessary expenditures incurred due to f and meet the other criteria of section 601(d) of the Social For example, if determined to be a necessary expenditure, a ividuals facing economic hardship to allow them to pay their ive essential services. tal improvement projects that broadly provide potential Attachment 1: Page 20 of 24 In general, no. If capital improvement projects are not necessary expenditures incurred due to the COVID-19 public health emergency, then Fund payments may not be used for such projects. However, Fund payments may be us( medical facilities and other measures measures, including related construct The Guidance includes workforce hazard pay would be eligible if oth definition of "hazard pay"? for the expenses of, for example, establishing temporary public increase COVID-19 treatment capacity or improve mitigation costs. s as an example of ineligible expenses butprovides that determined to be a necessary expense. Is there a specific Hazard pay means additional pay for performing hazardous duty or work involving physical -hardship, in each case that is related to COVID-1. The Guidance provides that ineligible expenditures include "[playroll or benefits expenses for employees whose work duties are not substantially dedicated to mitigating or responding to the COVID-19 public health emergency." Is this intended to relate only to public employees? Yes. This particular nonexclusive example of an ineligible expenditure relates to public employees. A recipient would not be permitted to p,Ly for payroll or benefit expenses of private employees and any financial assistance (such as grants or short-term loans) to private employers are not subject to the restriction that the private employers' employees must be substantially dedicated to. mitigating or. responding to the COVID-19 public health emergency. May counties pre pay with CARES ct funds for expenses such as a one or two year. facility lease, such as to house staff hired in response to COVID-19? A government should not make prepayments on contracts using payments from the Fund to the extent that doing so would not be consistent with its ordinary course policies and procedures. Questions Related to Administratidn of Fund Payments Do governments have to return unspdent funds to Treasury? Yes. Section 601(f)(2) of the Social Security Act, as added by section 5001(a) of the CARES Act, provides for recoupment by the Department of the Treasury of amounts received from the Fund that have not been used in a manner consistent with section 601(d).of the Social. Security Act. If a government has not used funds it has received to cov costs that were incurred by December 30, 2020, as required by the statute, those funds must be returned to the Department of the Treasury... What records must be kept by govo A government should keep records government has been used in accor May recipients deposit Fund Yes, provided that if recipients sepa interest earned or other proceeds of with section 601(d) of the Social Se deposits Fund payments in a govern cash management needs provided tl uts receivingpayment? ient to demonstrate that the amount of Fund payments to the with section 601(d) of the Social Security Act into interest bearing accounts? tely invest amounts received from the Fund, they must use the ese investments only to cover expenditures incurred in accordance rity Act and the Guidance on eligible expenses. If a government ent's general account, it may use those funds to meet immediate the full amount of the payment is used to cover necessary. Attachment 1: Page 21 of 24 expenditures. Fund payments are nod subject to the Cash Management Improvement Act of 1990, as amended. May governments retain assets purchased with payments from the Fund? Yes, if the purchase of the asset was c,onsistent with the limitations on the eligible use of funds provided by section 601(d) of the Social Secur ty Act. What rules apply to the proceeds of isposition or sale of assets acquired using payments from the Fund? If such assets are disposed of prior to December 30, 2020, the proceeds would be subject to the restrictions on the eligible use of payments from the Fund provided by section 601(d) of the Social Security Act. 7 Attachment 1: Page 22 of 24 xhibit C Attachment 1: Page 23 of 24 County of grange April 13, 2020 I, Frank Kim, am the chief executive Of the County of Orange, and I certify that: 1. I have the authority on be Department of the Treasury added by section 5001 of the 136, div. A, Title V (Mar. 27, 2. 1 understand that Treasury i direct payment to the Count 3. The County of Orange's pr( 601(b) of the Social Security a. are necessi respect to b. were not a( for [insert c, were incur December S Title: PAPERWORK REDUCTION ACT The information collected will be estimated burden associated with concerning the accuracy of this b directed to the Office of Privac Pennsylvania Ave., N.W., Washing not conduct or sponsor, and a per: displays a valid control number as,, County Executive Office calf of the County of Orange to request direct payment from the Treasury') pursuant to section 601(b) of the Social Security Act, as Zoronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116- 11 rely on this certification as a material representation in making a of Orange. osed uses of the funds provided as direct payment under section ct will be used only to cover those costs that - expenditures incurred due to the public health emergency with Coronavirus Disease 2019 (COVID-19); znted for in the budget most recently approved as of March 27, 2020, ne of local government entity]; and 1 during the period that begins on March 1, 2020, and ends on 2020. ed for the U.S. Government to process requests for support. The is collection of information is two hour per response. Comments len estimate and suggestions for reducing this burden should be Transparency and Records, Department of the Treasury, 1500 D.C. 20220. DO NOT send the form to this address. An agency may is not required to respond to, a collection of information unless it led by OMB. 333 W. Santa Ana Blvd., 3^ Floor, Santa An., CA 92701-4062 • Phone (714) 834-6201 • Fax (714) 834-3018 • www.ocgov.com Attachment 1: Page 24 of 24