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FULL PACKET_2020-07-07
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FULL PACKET_2020-07-07
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7/6/2020 10:35:19 AM
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City Clerk
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Agenda Packet
Agency
Clerk of the Council
Date
7/7/2020
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Appropriation Adjustment — CARES Act Coronavirus Relief Funds <br />July 7, 2020 <br />Page 2 <br />support of small businesses and $26 million for reimbursements to Orange County cities for direct <br />expenses related to COVID-19. <br />Of the $75 million in CARES Act funds, each of the five Supervisorial Districts was allocated $15 <br />million for the economic support of small businesses located in each District. Each County <br />Supervisor determined the method to distribute the funds to their respective districts, with some <br />Supervisors choosing to distribute funding directly to cities to manage, and others choosing to <br />manage the funds through the County's workforce development provider, Managed Care Solutions <br />(MCS). <br />The First District Supervisor has allocated $13 million for County managed business grants of <br />$10,000 each, and $2 million divided amongst the First District cities which includes Santa Ana, <br />Garden Grove, Westminster, a portion of Fountain Valley, and the unincorporated area of Midway <br />City. Funds were allocated based on the number of non -farm business tax filings reported per city <br />by the Internal Revenue Service and Orange County Fire Authority data. <br />Coronavirus Relief Funds — CARES Act <br />The County will provide $2,936,473 of federal CARES Act money to the City of Santa Ana, to be <br />used for COVID-19 related expenses in accordance with federal guidelines and the City's Sub - <br />recipient Agreement (Agreement) with the county (Exhibit 1). Staff proposes to use the funding to <br />reimburse the City for eligible expenses incurred during both FY19-20 and FY 20-21, including but <br />not limited to the City's payment of unemployment costs; various Personal Protective Equipment <br />(PPE); labor costs attributed to Public Safety and Human Services employees responding/mitigating <br />to COVID-19; disinfection and modification of public areas; and the purchase of equipment to <br />improve telework capabilities. <br />Coronavirus Relief Funds — Economic Support <br />Santa Ana's share of the $15 million of First District funds is 45.21 % and includes $5,880,000 for <br />small business grants provided through MCS, and $904,200 to the City of Santa Ana for economic <br />support to small businesses (Exhibit 2). This support includes, but is not limited to, expenditures <br />related to the provision of grants to small businesses to reimburse the costs of business interruption <br />caused by temporary closures and reduction in business activity related to the COVID-19 public <br />health emergency. The City's Economic Development staff will administer the $904,200 by <br />supplementing their existing small business grant program and continue to provide small business <br />grants to support the local economy that has been affected by COVID-19. To date, the economic <br />development division has processed 56 small business incentive grants for Santa Ana businesses <br />with 5 or less employees. These grants, funded by Community Development Block Grant COVID- <br />19 allocation, has provided much needed capital (up to $5,000 each) to small businesses during this <br />time of need. <br />Administration of Funds <br />Eligible expenses also include those that the City has or will incur, for providing economic support <br />to small businesses, that were not accounted for in the budget most recently approved by the City <br />as of March 27, 2020, and that were incurred during the period of March 1, 2020 through December <br />30. 2020. <br />20A-2 <br />
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