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Home My WebLink About5608 RESOLUTION NO. 5608 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON: (1) ACCEPTING FUNDS APPROPRIATED TO THE CITY UNDER THE AMERICAN RESCUE PLAN ACT OF 2021 (ARPA); AND (2) DIRECTING THE CITY'S FUTURE EXPENDITURE OF SUCH APPROPRIATED FUNDS PURSUANT TO ARPA GUIDELINES AND RESTRICTIONS WHEREAS, the COVID-19 pandemic has caused significant detrimental economic, social and health impacts to our region. The Federal government has responded to these regional and local impacts by passing Public Law No. 117-2, also known as the American Rescue Plan Act of 2021 (or ARPA), which appropriates federal funds to cities suffering COVID-19 impacts, and establishes parameters for how cities may spend such funds. In accordance with ARPA, the Federal government has appropriated $14,751,230.00 to the City of Auburn, which it will disburse to the City in two tranches. The City received the first (in the amount of$7,375,615) on May 19, 2021. The second of the two distributions (in the amount of$7,375,615) is expected to be disbursed to the City in May 2022. WHEREAS, the purpose of this resolution_is to formally accept these City appropriated ARPA funds and to direct their future expenditure in a manner consistent with ARPA's purposes. The following paragraphs more fully outline the basis for ARPA funding and the Federal government's guidance regarding the expenditure of ARPA funds; Resolution No. 5608 August 2, 2021 Page 1 of 6 WHEREAS, in response to COVID-19, Washington Governor Jay Inslee declared a state of emergency on February 29, 2020. That declaration was soon followed by the Governor's March 23, 2020 "Stay Home — Stay Healthy" order (order 20-25). That order required individuals to remain at home except for limited specified essential activities and required all but limited specified "essential" businesses to cease operations. While necessary to preserve the public health by containing the COVID-19 virus and preventing its spread, order 20-25 had the corresponding effect of greatly disrupting vast swaths of the Washington and local job market and economy; WHEREAS, the Federal Bureau of Labor Statistics reports the following nationwide labor force impacts caused by the COVID-19 pandemic: • COVID-related employer closures or business losses affected the work of nearly 50 million workers; • as much as 35% of the nation's workforce was required to adjust to remote work during the pandemic; • over 11 million workers reported losing work due to employers closing or losing business; WHEREAS, statewide, the Washington State Department of Revenue compared economic data for the first 3 quarters of 2019 and 2020, revealing that during the COVID pandemic, the state's 2020 gross business income declined by over $51 billion from 2019, and Auburn/King County's 2020 taxable retail sales declined by over$19 million from 2019; Resolution No. 5608 August 2, 2021 Page 2 of 6 WHEREAS, the King County Public Health Department reports the following health and economic effects of the COVID-19 pandemic upon our region: • Over 100,000 cases of COVID 19, and over 1,600 deaths from the disease; • Local unemployment reaching as high as 217,901 unemployed persons and/or receiving unemployment benefits; WHEREAS, in an effort to alleviate these ongoing adverse COVID related impacts to local communities, Congress passed ARPA on March 10, 2021. Section 9901 of ABPA (entitled "Coronavirus State and Local Fiscal Recovery Funds," or CLFR) appropriates federal funding to cities in an effort to mitigate these negative financial, economic, social and health related COVID impacts suffered by cities. CLFR establishes formula grants of ARPA funds to cities and does not require cities to submit an application or certification to receive the allocated funds. CLFR has identified the following allowable uses for ARPA funds: • Public heath response to the COVID pandemic; • Address negative economic impacts due to COVID-19; • Provide services to disproportionately impacted communities due to COVID-19; • Provide premium pay to workers performing essential work during the COVID-19 public health emergency; Resolution No. 5608 August 2, 2021 Page 3 of 6 • Replace lost city revenue and use to maintain government services, to the extent that COVID reduced such revenue; • Make necessary investments in water, sewer or broadband infrastructure; and • Administrative costs to oversee the implementation, compliance, and reporting requirements for ARPA funds WHEREAS, in implementing ARPA's fund use requirements, the U.S. Treasury Department has issued RIN 1505-AC77 (Rule 1505), a rule providing further detailed guidance on required city use of appropriated CLFR funds. Rule 1505 further clarifies that cities using ARPA funds for COVID-19 response must identify a specific expenditure sub-category for reporting purposes: • Public health response to COVID-19: > vaccination, testing, contact tracing, medical expenses, prevention in congregate settings, or similar programs; > purchases of personal protective equipment; > behavioral health programs (mental health treatment, substance misuse treatment, or other behavioral health services); > capital investments in facilities in response to the public health emergency • Addressing negative economic impacts from COVID: > assistance to households (food, rent, mortgage or utility), internet access assistance, job training, legal aid to prevent eviction, and similar assistance; ➢ assistance to small businesses and non-profit organizations (loans or grants to mitigate financial hardships such as revenue Resolution No. 5608 August 2, 2021 Page 4 of 6 declines, payroll support during periods of business closure due to COVID, technical assistance to assist with business planning needs, and other small business operating costs); > rehiring City staff to pre-pandemic staffing levels; > aid to the tourism, travel and hospitality industries that responds to the negative COVID-related economic impacts on those industries; • Providing services for disproportionately impacted communities: > investment in educational services to mitigate the pandemic's impacts on education; > investment in housing and neighborhoods with services to address homelessness, supportive housing, access to affordable housing and affordable housing development; > programs to promote healthy childhood environments; WHEREAS, in light of the devastating social, health and economic impacts the COVID pandemic has caused to the nation, region and City, the City formally accepts $14,751,230.00 in ARPA funds allocated to the City, for future disbursement pursuant to the requirements and purposes of ARPA and other applicable law; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, HEREBY RESOLVES as follows: Section 1. Acceptance of ARPA funds. The City formally accepts $14,751,230.00 in CLFR funds disbursed to the City pursuant to ARPA. Resolution No. 5608 August 2, 2021 Page 5 of 6 Section 2. Future expenditure of City ARPA funds. The Council shall direct the City's future expenditure of ARPA funds in a manner consistent with ARPA, Rule 1505, and other applicable law. Section 3. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directions of this legislation. Section 4. That this Resolution shall take effect and be in full force upon passage and signatures hereon. Dated and Signed this day of't,R ,,,s,, 2021. CITY OF AUBURN .. f' ea = ' NCY KUS MAYOR ATTEST: APPROVED AS TO FORM: Shawn Campbell, MMC, City Clerk Kendra Comeau, City Attorney Resolution No. 5608 August 2, 2021 Page 6 of 6