2020-08-26 CC Packet - Laserfiche WebLink

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27.MayFund payments be used to replace foregone utilityfees?If not, can Fund payments be used as a direct subsidy payment to all utilityaccount holders? Fund payments may not be used for government revenue replacement, including the replacement of unpaid utility fees.Fund payments may be used for subsidy payments to electricity account holders to the extent that the subsidy payments are deemed by the recipient to be necessary expenditures incurred due to the COVID-19 public health emergency and meetthe other criteria of section 601(d) of the Social Security Act outlined in the Guidance. For example, if determined to be a necessary expenditure, a government could provide grants to individuals facing economic hardship to allow them to pay their utility fees and thereby continue to receive essential services. 28.Could Fund paymentsbe used for capital improvement projects that broadly provide potential economic development in a community? In general, no.Ifcapital improvement projects are not necessary expenditures incurred due to the COVID-19public health emergency, then Fund paymentsmay not be used for such projects. However, Fund payments may be used for the expenses of, for example,establishing temporary public medical facilities and other measures to increase COVID-19 treatment capacityor improve mitigation measures, including related construction costs. 29.The Guidance includes workforce bonuses as an example of ineligible expenses but provides that hazard pay would be eligible if otherwise determined to be a necessary expense. Is there a specific definition of “hazard pay”? Hazard pay means additional pay for performing hazardous duty or work involving physical hardship, in each case that is related to COVID-19. 30.The Guidance provides that ineligible expenditures include “\[p\]ayroll or benefits expenses for employees whose work duties are not substantially dedicated to mitigating or respondingto the COVID-19 public health emergency.” Is this intended to relateonly to public employees? Yes. This particular nonexclusive example of an ineligible expenditure relates to public employees. A recipient would not be permitted to pay 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. 31.May counties pre-pay with CARES Act funds for expenses such as aone 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 thatdoing sowould not be consistent with its ordinary course policies and procedures. 32.Must a stay-at-home order or other public health mandate be in effect in order for a government to provide assistance to small businesses using payments from the Fund? No. The Guidance provides, as anexample of an eligible use of payments from the Fund, expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures. Such assistancemaybe provided using amounts received from the Fund in the absence of a requirement to close businesses if the relevant government determines that such expenditures are necessary in response to the public health emergency. 6