HomeMy WebLinkAboutResolutions - 2020.04.29 - 33136MISCELLANEOUS RESOLUTION #20122
BY: Commissioner Helaine Zack, District #18
IN RE: BOARD OF COMMISSIONERS —ACCEPTING THE CARES ACT FUNDING FROM THE UNITED
STATES FEDERAL GOVERNMENT
To the Oakland County Board of Commissioners
Ladies and Gentlemen:
WHEREAS the novel coronavirus (COVID-19) pandemic has caused an unprecedented situation in the
State of Michigan and Oakland County; and
WHEREAS the COVID-19 outbreak and numerous Executive Orders by the Governor of the State of
Michigan have caused significant economic distress in the business community, and
WHEREAS the Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by Congress
with overwhelming, bipartisan support and signed into law by the President of the United States on March
27, 2020; and
WHEREAS the CARES Act administered by the United States Treasury Department is a relief package by
the Federal Government to protect the American people from the public health and economic impacts of
COVID-19; and
WHEREAS the CARES Act provides fast and direct economic assistance for American workers, families,
and small businesses, and preserve jobs for our American industries; and
WHEREAS the funds distributed to state and local governments under the CARES Act can only be used in
the following manner:
(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 the date of enactment of
this section 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 under the act funding is allowed to be distributed directly to counties and cities with populations
over 500,000; and
WHEREAS Oakland County has received funding of $219,438,710; and
WHEREAS general guidance has been issued by the United States Treasury Department and is provided
in the attached Exhibit A; and
WHEREAS the Oakland County Board of Commissioners intends to utilize the funding provided to Oakland
County under the CARES Act to further the disaster relief efforts due to the COVID-19 pandemic.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves the
acceptance of the federal government funding under the Coronavirus Aid, Relief, and Economic Security
(CARES) Act in the amount of $219,438,710.
BE IT FURTHER RESOLVED the monies Oakland County receives from the Coronavirus Aid, Relief, and
Economic Security (CARES) Act shall be deposited in PNC Bank until otherwise directed by the board and
the administration.
BE IT FURTHER RESOLVED that COVID-19 costs appropriated and incurred to date will be reviewed to
determine eligibility based on the guidelines set forth by the United States Treasury Department. (attached
Exhibit A).
BE IT FURTHER RESOLVED that costs deemed eligible for utilization of the CARES Act funding where
prior appropriations were made by the Board of Commissioners in response to the COVID-19 pandemic
will be allocated back to the accounts from which the respective COVID-19 appropriations were
appropriated.
BE IT FURTHER RESOLVED a detailed budget be submitted to the Board of Commissioners for approval
prior to release of any funds from the CARES Act grant not already incurred, or specifically authorized by
appropriation.
BE IT FURTHER RESOLVED that acceptance of the funds and subsequent appropriation is subject to the
statutory powers of the Board of Commissioners as bestowed by Public Act 139 of 1973 and the rules,
regulations and policies of the County of Oakland as adopted by the Oakland County Board of
Commissioners.
BE IT FURTHER RESOLVED there is no budget amendment at this time.
Chairperson, I move adoption of the foregoing resolution.
REQUESTING SUSPENSION
OF THE BOARD RULES FOR
IMMEDIATE CONSIDERATION
UNDER NEW BUSINESS
Commissioner Helaine Zack
District #18
Exhibit A
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 Colmnbia 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 actions 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 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.
The statute 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 reasonablejudgment of the government officials responsible for spending Fund
payments.
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 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
See Section 601(d) of the Social Security Act, as added by section 5001 of the CARES Act.
Exhibit A
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 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.
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 expenditures
Eligible expenditures include, but are not limited to, payment for:
1. Medical expenses such as:
• COVID-19-related expenses of public hospitals, clinics, and similar facilities.
• Expenses of establishing temporary public medical facilities and other measures to increase
COVID-19 treatment capacity, including related construction costs.
• Costs of providing COVID-19 testing, including serological testing.
• Emergency medical response expenses, including emergency medical transportation, related
to COVID-19.
• Expenses for establishing and operating public telemedicine capabilities for COVID-19-
related treatment.
2. Public health expenses such as:
• Expenses for communication and enforcement by Slate, territorial, local, and Tribal
governments of public health orders related to COVID-19.
• Expenses for acquisition and distribution of medical and protective supplies, including
sanitizing products and personal protective equipment, for medical personnel, police officers,
social workers, child protection services, and child welfare officers, direct service providers
for older adults and individuals with disabilities in community settings, and other public
health or safety workers in connection with the COVID-19 public health emergency.
• Expenses for disinfection of public areas and other facilities, e.g., nursing homes, in response
to the COVID-19 public health emergency.
• Expenses for technical assistance to local authorities or other entities on mitigation of
COV1D-19-related threats to public health and safety.
• Expenses for public safety measures undertaken in response to COVID-19.
• Expenses for quarantining individuals.
3. 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.
Exhibit A
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 expenses of maintaining state prisons and county jails, including as relates
to sanitation and improvement of social distancing measures, 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.
5. Expenses associated with the provision of economic support in connection with the COVID-19
public health emergency, such as:
• Expenditures related to the 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 of costs that would not be eligible expenditures of payments from the
Fund.
1. Expenses for the State share of Medicaid.'
2. Damages covered by insurance.
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.
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 which 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 fi-om 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.
' See 42 C.F.R. § 433.51 and 45 C.F.R. § 75.306.
Exhibit A
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 for donated items or services.
6. Workforce bonuses other than hazard pay or overtime.
7. Severance pay.
8. Legal settlements.
Resolution #20122
April 29, 2020
Moved by Zack seconded by Weipert to suspend the rules and vote on Miscellaneous Resolution #20122
— Board of Commissioners — Acceptng the CARES Act Funding from the Untied States Federal
Government.
A sufficient majority having voted in favor, the motion to suspend the rules and vote on Miscellaneous
Resolution #20122 — Board of Commissioners —Acceptng the CARES Act Funding from the Untied States
Federal Government carried.
Moved by Zack seconded by Weipert the resolution be adopted.
Vote on resolution:
AYES: Kowall, Kuhn, Long, Luebs, Markham, McGillivray, Middleton, Miller, Nelson, Powell,
Quarles, Spisz, Taub, Weipert, Woodward, Zack, Gershenson, Gingell, Hoffman, Jackson,
Kochenderfer. (21)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolution was adopted.
HEREBY APPROVE THE FOREGOING RESOLUTION
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and
accurate copy of a resolution adopted by the Oakland County Board of Commissioners on April 29, 2020,
with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the Circuit Court at Pontiac.
Michigan this 29th day of April, 2020.
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Lisa Brown, Oakland County