20A - AGMT AND AA FOR ECONOMIC SUPPORT

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Appropriation Adjustment — CARES Act Coronavirus Relief Funds July 7, 2020 Page 2 support of small businesses and $26 million for reimbursements to Orange County cities for direct expenses related to COVID-19. Of the $75 million in CARES Act funds, each of the five Supervisorial Districts was allocated $15 million for the economic support of small businesses located in each District. Each County Supervisor determined the method to distribute the funds to their respective districts, with some Supervisors choosing to distribute funding directly to cities to manage, and others choosing to manage the funds through the County's workforce development provider, Managed Care Solutions (MCS). The First District Supervisor has allocated $13 million for County managed business grants of $10,000 each, and $2 million divided amongst the First District cities which includes Santa Ana, Garden Grove, Westminster, a portion of Fountain Valley, and the unincorporated area of Midway City. Funds were allocated based on the number of non -farm business tax filings reported per city by the Internal Revenue Service and Orange County Fire Authority data. Coronavirus Relief Funds — CARES Act The County will provide $2,936,473 of federal CARES Act money to the City of Santa Ana, to be used for COVID-19 related expenses in accordance with federal guidelines and the City's Sub - recipient Agreement (Agreement) with the county (Exhibit 1). Staff proposes to use the funding to reimburse the City for eligible expenses incurred during both FY19-20 and FY 20-21, including but not limited to the City's payment of unemployment costs; various Personal Protective Equipment (PPE); labor costs attributed to Public Safety and Human Services employees responding/mitigating to COVID-19; disinfection and modification of public areas; and the purchase of equipment to improve telework capabilities. Coronavirus Relief Funds — Economic Support Santa Ana's share of the $15 million of First District funds is 45.21 % and includes $5,880,000 for small business grants provided through MCS, and $904,200 to the City of Santa Ana for economic support to small businesses (Exhibit 2). This support includes, but is not limited to, expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by temporary closures and reduction in business activity related to the COVID-19 public health emergency. The City's Economic Development staff will administer the $904,200 by supplementing their existing small business grant program and continue to provide small business grants to support the local economy that has been affected by COVID-19. To date, the economic development division has processed 56 small business incentive grants for Santa Ana businesses with 5 or less employees. These grants, funded by Community Development Block Grant COVID- 19 allocation, has provided much needed capital (up to $5,000 each) to small businesses during this time of need. Administration of Funds Eligible expenses also include those that the City has or will incur, for providing economic support to small businesses, that were not accounted for in the budget most recently approved by the City as of March 27, 2020, and that were incurred during the period of March 1, 2020 through December 30. 2020. 20A-2