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HomeMy WebLinkAboutOrdinance 4189ORDINANCE NO. ____4189________ AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, DECLARING AN EMERGENCY AND CREATING A NEW EDMONDS CARES FUND WHICH SHALL BECOME EFFECTIVE IMMEDIATELY WHEREAS, our city and region are experiencing a public health emergency due to the COVID-19 pandemic, which has led to sudden job losses, lower paychecks, and increased household costs to deal with COVID-19 impacts for many residents, as well as business/revenue losses for many local businesses; and WHEREAS, the Mayor declared an emergency of the city due to the COVID-19 crisis on March 5, 2020; and WHEREAS, the Washington State Governor issued a Stay Home order on March 23, 2020, and WHEREAS, on April 21, 2020, the Governor stated that “A safe return to public life will require increased social and emotional support, food and housing security, educational and child care support, internet infrastructure and equitable access to services”; and WHEREAS, pursuant to Article 8, Section 7 of the Washington Constitution, the City is allowed to use public funds “for the necessary support of the poor and infirm;” and WHEREAS, unemployment claims have increased greatly since the COVID-19 crisis Began, with a high of 138,733 regular unemployment insurance initial claims in the week of May 10, 2020 in Washington State, according to the state Department of Employment Security; and WHEREAS, households earning 60% or less of the county median income are among the most affected by sudden drops in income and/or increased expenses; and WHEREAS, about 25% of Edmonds’ households earned 60% or less of the Snohomish County median family income in 2019; and WHEREAS, the economic crisis created by the COVID-19 pandemic and related business shutdowns has severely impacted local businesses, resulting in substantial losses of revenue, employee furloughs, layoffs and cutbacks, and additional expenses; and WHEREAS, businesses other than those deemed “essential” by the Governor’s orders, have been particularly impacted by business losses due to prolonged shutdowns; and WHEREAS, some businesses in Edmonds employ a principally lower-wage employee base, providing entry-level or low-barrier job opportunities for local residents; and WHEREAS, many businesses that have suffered financially during the COVID-19- related economic crisis face an uncertain future that could lead to business closures, as well as employee furloughs and lay-offs; and WHEREAS, some local residents in lower-income households, including those at or below 60% of Snohomish County median income, are employed by local businesses and would be even more adversely impacted if these businesses fail and/or substantially reduce available jobs; and WHEREAS, RCW 35A.12.130 allows city councils to adopt public emergency ordinances, provided that the ordinance is passed by a majority plus one of the city council and meets other requirements of the statute; and WHEREAS, the City has determined that COVID-19 and its associated impacts have created a public health emergency, making it necessary for the protection of public health and public safety to adopt an emergency ordinance to prevent homelessness and reduce health and safety impacts by providing temporary assistance to qualifying households; and WHEREAS, the City Council created the Housing and Supplementary Relief Program by reallocating $100,000 from the Homelessness Response Fund to serve as funding grants of up to $1,000 to individuals and households experiencing income loss, emergency expenses, imminent housing insecurity, etc.; and WHEREAS, the Mayor created a Community and Economic Relief Program, funded by $200,000 in savings from City departments and consisting of three programs: 1) support to the Edmonds Food Bank, 2) support to the Edmonds Senior Center, and 3) support to the Edmonds Chamber Foundation WISH Fund business grants; and WHEREAS, Governor Inslee announced that the state would award $300 million of the state’s CARES funding to local governments that did not receive direct distributions under the CARES Act; and WHEREAS, the CARES Act provides that payments from the Fund may be used to cover costs that: 1. 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; and WHEREAS, funds may not be used to fill shortfalls in government revenue to cover expenditures that would not otherwise qualify under the statute. Although a broad range of uses is allowed, revenue replacement is not a permissible use of Fund payments; and WHEREAS, the CARES Act also specifies that expenditures using Fund payments must be “necessary.” The Department of the Treasury understands this term broadly to mean that the expenditure is reasonably necessary for its intended use in the reasonable judgment of the government officials responsible for spending Fund payments; and WHEREAS, The CARES Act also requires that payments be used only to cover costs that were not accounted for in the budget most recently approved as 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 is for a substantially different use from any expected use of funds in such a line item, allotment, or allocation; and WHEREAS, the “most recently approved” budget refers to the enacted budget for the relevant fiscal period for the particular government, without taking 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 fund, rainy day fund, or similar reserve account. Eligible costs must have incurred during the period that begins on March 1, 2020, and ends on December 30, 2020; and WHEREAS, Eligible expenditures include, but are not limited to, payment for: 1. Expenses of actions to facilitate compliance with COVID-19-related public health measures, including: • 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 for care for homeless populations provided to mitigate COVID-19 effects and enable compliance with COVID-19 public health precautions. • Expenses to assist individuals with payment of overdue rent or mortgage payments to avoid eviction or foreclosure or unforeseen financial costs for funerals and other emergency individual needs. 2. Expenses associated with the provision of economic support in connection with the COVID-19 public health emergency, including: • Expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures. 3. Any other COVID-19-related expense reasonably necessary to the function of government that satisfy the Fund’s eligibility criteria; WHEREAS the City will be eligible for up to $1,265,100 of the CARES funding from the state; and NOW THEREFORE; THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, ORDAINS AS FOLLOWS: Section 1. The City of Edmonds hereby accepts an allocation of up to $1,265,100 as the City of Edmonds’ Federal CARES Act allocation, as administered and disbursed by the Washington State Department of Commerce in the form of reimbursable funds, in accordance with Federal CARES Act guidelines. Further the City Council authorizes the Mayor to enter into the corresponding contract(s) with the Department of Commerce for administration and disbursement of these funds. Section 2. The Administrative Services Director is hereby authorized to create and number a new fund to be known as the Edmonds CARES Fund for the purpose of accounting for CARES Act-eligible payments used to facilitate compliance with COVID-19-related public health measures, expenses associated with the provision of economic support in connection with the COVID-19 public health emergency, and any other COVID-19-related expenses reasonably necessary to the function of the City that satisfy the Act’s eligibility criteria. Section 3. The Edmonds CARES Fund shall be administered by the Administrative Services Director under the direction of the Mayor. Section 4. There shall be kept by and under the direction of the Administrative Services Director, such books, accounts and records as are necessary to control and report the CARES eligible expenditures, and shall further subdivide the cash account thereof into three separately designated accounts as follows: A. Account “A” shall be the “COVID-19 City Expenditure Reimbursement” account into which $265,100 of the CARES Act funding shall be allocated to reimburse those direct City expenditures required to provide City services in response to the COVID-19 emergency that satisfy the CARES Act eligibility criteria. B. Account “B” shall be the existing, City Council-approved “Housing and Supplemental Relief Program” account into which a supplemental infusion of $300,000 to that program from the CARES Act funding shall be allocated to reimburse those City expenditures incurred through said Program, in compliance with the CARES Act eligibility criteria. In addition, $50,000 from the Community and Economic Relief Program, initially earmarked as a potential second round of funding for the Chamber Foundation WISH Grant program, shall be reallocated to this account. Grant awards shall be in amounts up to $1,000 for households of one to two members, while grant awards may be in amounts of up to $1,500 for households of three or more members. An additional Snohomish County-based human services organization shall be engaged by the City to assist in administration of the existing Program. C. Account “C” shall be the “Edmonds Business Support Grant Program” account into which $700,000 of the CARES Act funding shall be allocated to reimburse those City expenditures incurred through provision of individual financial support grants (in the form of loans that are forgivable after four months of performance) of up to $10,000, through an open, competitive application process, to eligible businesses that have suffered substantial business losses and additional expenses due to the COVID-19 economic crisis, in compliance with the CARES Act eligibility criteria, which criteria shall include, but not be limited to, the following: i. Businesses with zero to thirty employees (part-time and full-time combined) ii. A demonstrated year-over-year business/revenue loss of at least 30% in April or May 2020; iii. In business in Edmonds at least one year as of April 1, 2020; iv. Declared intent and expectation to remain in business at least four months after receipt of the grant; In addition, the Mayor and City staff shall employ reasonable, objective and score-based selection criteria to award grants to applicants, as required in the case of a large number of applications, including such considerations as the following: i. Particular consideration will be given to businesses owned by people of color, women, veterans, and other minorities; ii. Particular consideration will be given to those businesses that have not received federal, state or county government assistance, and secondary consideration will be given to those businesses that received lower-than-requested amounts of federal, state or county government assistance; iii. Greater consideration will be given to those businesses that have experienced relatively greater business/revenue loss year-over-year in April or May 2020; iv. Particular consideration will be given to geographic distribution across Edmonds’ various business districts in the award of these grants; v. Particular consideration will be given to creative-sector businesses within the State-certified Edmonds Creative District; Section 5. In the case that there is any unused, City of Edmonds allocation from the Federal CARES Act funds remaining ten days prior to the Department of Commerce expenditure deadline, the amount of that allocation shall be used to purchase personal protective equipment and supplies for use by the City and/or for distribution to direct-service, residential-based care centers. Section 6. The authority provided in Section 1 shall end by December 31, 2020. Section 7. Any organization assisting the City in providing emergency aid under Section 4(B) shall provide a monthly written report to the City. The Administration shall provide the City Council and general public a monthly written report about the amount of aid provided by the City, the purpose and criteria by which it has been distributed, the reimbursement received from the Department of Commerce, and any other pertinent information regarding the grant programs outlined in Sections 4(B) and 4(C) above. Section 8. Severability. If any section, subsection, clause, sentence, or phrase of this ordinance should be held invalid or unconstitutional, such decision shall not affect the validity of FILED WITH THE CITY CLERK: June 19, 2020 PASSED BY THE CITY COUNCIL: June 23, 2020 PUBLISHED: June 26, 2020 EFFECTIVE DATE: June 23, 2020 ORDINANCE NO. 4189