subject to the requirements of Chapter 8.50 (Outdoor Lighting) of the Beaumont Municipal Code. Such agreements may be approved by resolution of the City Council upon terms that are agreeable to the City, pursuant to administrative guidelines, as adopted by a City Council resolution. The execution of a relocation agreement shall not operate to change the status of any Billboard as a nonconforming use for the purpose of this code.
H. Mixed or Multiple Use Zones. In any zone where both residential and non-residential uses are allowed, whether such zones are now existing or created in the future, the signage rights and responsibilities applicable to any particular use shall be determined as follows:
residential uses shall be treated as if they were located in the residential zone where that type of use would be allowed as a matter of right, and nonresidential uses shall be treated as if they were located in a zone where that particular use would be allowed, either as a matter of right or subject to a conditional use permit or similar discretionary process.
Owner's Consent. No sign may be displayed without the consent of the legal owner of the property on which the sign is constructed, mounted or displayed. For purposes of this policy, "owner" means the holder of the legal title to the property and all parties and persons holding a present right to possession, control or use of the property.
J. Legal Nature of Signage Rights and Duties. As to all signs attached to property, real or personal, the signage rights, duties and obligations arising from this Chapter attach to and run with the land or other property on which a sign is mounted or displayed. This provision does not modify or affect the law of fixtures, sign -related provisions in private leases regarding signs (so long as they are not in conflict with this Chapter unless stricter than this Chapter), or the ownership of sign structures.
K. Preservation of Existing Rights and Duties. This Chapter does not abrogate or supersede any easements, covenants, or other existing agreements that are more restrictive than the provisions of this Chapter.
L. Sign Programs. Sign programs for specific developments, as well as special sign districts or special sign overlay zones, or in specific plans of land uses, when approved as required by applicable law, may modify the rules stated herein as to sign size, height, illumination, spacing, orientation or other non -communicative aspects of signs, but may not override or modify any of these basic policies unless stricter than these basic policies. All the provisions of this section shall automatically apply to and be deemed a part of any sign program approved after the date on which this provision is initially adopted.
M. Severance. If any section, sentence, clause, phrase, word, portion or provision of this Chapter is held invalid, unconstitutional, or unenforceable by any court of competent jurisdiction, such holding shall not affect, impair, or invalidate any other section, sentence, clause, phrase, word, portion, or provision of this Chapter which can be given effect without the invalid portion. In adopting this Chapter, the City Council affirmatively declares that it would have approved and adopted this Chapter even without any portion, which may be held invalid or unenforceable.
17.07.040 - Categorization of signs.
For purposes of this Chapter, signs within the City shall be classified in one or more of the following categories:
A. Animated Sign. A sign designed to attract attention through movement or the semblance of movement of the whole or any part including, but not limited to, signs which swing, twirl, move back and forth or up and down; or signs which change color or shades of color or any other method or device which suggests movement.
B. Banner Sign. A fabric or fabric -like material on which an advertising message is painted or otherwise affixed.
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C. Billboard Sign or Billboard. A permanent sign structure used for the display of offsite commercial messages, other than a directional sign, which directs attention to a business, commodity, service or entertainment conducted, sold or offered elsewhere than upon the premises where the sign is located, or to which it is affixed. Commercial copy on any Billboard Sign may be replaced with noncommercial copy.
D. Commercial Sign. A sign displayed for the purpose of identifying a commercial message, or advertising a service, product, business or venture that is offered for trade or sale which can be located onsite or offsite.
E. Directional Sign, on -site. A sign giving directions, instructions, or facility information and which may contain the name or logo of an establishment but no advertising copy (e.g., parking, exit or entrance signs).
F. Electronic Message Center Sign. A sign with the capability of presenting variable advertising message displays by projecting an electronically controlled light pattern against a contrasting background and which can be programmed to change the message display periodically. An electronic message center is neither an animated sign nor a simulated motion sign.
G. Flag Sign. A device, generally made of fabric or flexible materials, (usually cloth, paper or plastic), which displays visual colors, images, or symbols, typically those of governments, religions, causes, organizations, or specific business activities.
H. Flashing Sign. Lighted signs which disappear and reappear at periodic intervals, or are intermittently on and off, and which are placed so as to attract vehicular traffic with emphasis on the recurrence of lights. This definition includes beacons, searchlights, and klieg lights only when they are used for commercial messages.
Freestanding Sign. A permanent sign anchored directly to the ground or supported by one or more posts, columns, or other vertical structures or supports, and not attached to or dependent for support from any building.
J. Identification Sign. A sign whose copy is limited to the name and address of a building, institution, or person and/or to the activity or occupation being identified.
K. Identification Sign (Residential). A freestanding or wall sign identifying a recognized subdivision, condominium complex, or residential development.
L. Illuminated Sign. A sign with an artificial light source incorporated internally or externally for the purpose of illuminating the sign.
M. Monument Sign. A sign with an overall height of six (6) feet or less, standing directly on the ground or on a base where the supporting poles or structures, if any, are covered from public view.
N. Noncommercial Sign. A sign that is displayed for the purpose of identifying a noncommercial message. The sign does not do any of the following: (1) advertise a product, business or service for profit and/or a business purpose; or (2) relate solely to economic interests. Noncommercial signs are not considered either off -site or on -site signs.
O. Off -site Sign. A sign related in its subject matter to some premises or lot other than the premises or lot on which the sign is located.
P. On -site Sign. A sign related in its subject matter to the premises on which it is located, or to products, accommodations, services, or other activities on the premises.
Q. Pennant. A display device, usually triangular in shape and made of flexible materials, such as cloth, paper or plastic, used primarily to attract attention of passersby.
R. Permanent Sign. A stationary sign permanently attached to the ground or to a structure. 4
S. Pole or Pylon Sign. A sign with an overall height exceeding six (6) feet and supported by one or more poles or pylons attached directly into or upon the ground.
T. Portable Sign. A temporary sign designed and constructed so as to be easily moved. Such signs are usually not secured to a building or anchored to the ground. Common types include "A" frame signs, sandwich board signs, and sidewalk signs.
U. Poster Sign. Any sign attached to the ground in a manner approved by the building official, which may be visible from adjacent streets or highways.
V. Real Estate Sign. A temporary sign advertising that a property or structure is for sale, lease, rent or exchange. The advertising contained on a real estate sign shall be limited to the following information: (1) that the property is for sale, lease, rent or exchange by the owner or his or her agent; (2) the property is in escrow or there is an "open house"; (3) directions to the property; and (4) the owner's or agent's name, address and telephone number.
W. Revolving Sign. A sign or a portion thereof, which rotates or revolves.
X. Roof Sign. A sign supported by or attached to or projecting through the roof of a building or structure, or projecting above the eave line or parapet wall of the building or structure.
Y. Temporary Sign. A sign structure or device used for the display of messages or images, which is easily installed and removed and which is not intended or suitable for long-term or permanent display due the sign construction, materials, placement, or installation.
Temporary signs shall include noncommercial signs, real estate signs, yard or garage sale signs, construction signs, on -site temporary window signs displaying a commercial message, future tenant identification signs, commercial flags and banners for real estate sales and leasing, commercial flags on commercial, industrial, or agricultural properties, signs supported by and affixed to the ground by a wire frame or special event signs. Any sign not covered by this definition is a permanent sign and must comply with the applicable permanent sign regulations.
Z. Under Canopy Sign. A sign attached to the underside of a projecting canopy perpendicular to the building frontage, commonly used for identifying the land use at that location.
AA. Wall Sign. A sign which is in any manner affixed to any exterior wall of a building or structure, the exposed face of which is in a plane approximately parallel to the plane of the wall.
BB. Window Sign. A temporary sign painted, attached, glued or otherwise affixed to a window, which is easily visible from the exterior of the building.
17.07.050 - Definitions.
For purposes of this Chapter, the following words and phrases have the meanings stated in this section.
A. Administrator. Same as Director.
B. Advertise. Describe or draw attention to a product, service, or event in a public medium in order to promote sales or attendance.
C. Area of Sign. The area of a sign shall be calculated by multiplying the width by the length of the sign face. In the case of a two-sided sign, the area shall be computed as including only the largest single sign face. In the case of any cylindrical or spherical sign, the total area shall be computed on the total area of the surface of the sign.
D. Commercial Complex. Any group of three or more commercial uses on a parcel or combination of contiguous parcels which are generally served either by common access or common parking, or a large single commercial use occupying at least two and one-half acres with a minimum of 200 feet of street frontage.
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E. Commercial message. A message displayed on a sign that primarily concerns business, commercial or economic interests, or which proposes an economic transaction.
Commercial messages may be onsite or offsite; however, the onsite/offsite distinction applies only to commercial messages.
F. Copy. Graphic content of a sign surface designed to allow the changing of copy through manual, mechanical, or electrical means.
G. Development. A building or buildings wherein two or more separate independently owned or operated establishments are located.
H. Director. The City's Community Development Director.
Establishment. Any non-residential use of land involving permanent structures or buildings.
J. Face of Building. The wall of a building, excluding any appurtenances, such as projecting fins, columns, pilasters, canopies, marquees, showcases of decorations, but including any required parapet wall.
K. Frontage. The length of a lot along a street or other principal public thoroughfare, but not including such length along an alley, railroad or freeway.
L. Frontage of the Parcel. On a lot with more than one frontage on a public street, the front footage of the parcel shall be determined by the measurement of the larger or largest frontage on a public street.
M. Height of a sign. The distance from the average ground level immediately surrounding the base of the sign to the top of its highest element, including any structural or architectural element. Landscape mounding shall not be used to artificially alter the height of a sign.
N. Industrial Complex. Any group of three or more industrial uses on a parcel or combination of parcels which are generally served either by common access or common parking, or single industrial use occupying at least 100,000 square feet of floor area.
O. Landscaped Planter. An area specifically designated for plant materials that may be at, below or above grade.
P. Line of Sight. The point of visibility from the street to an object, e.g., sign. The longer the line of sight, the further the sign is visible from the street.
Q. Noncommercial message. A message or image displayed on a sign which concerns matters not included within the definition of commercial message. The onsite/offsite distinction applies only to commercial messages.
R. Office Complex. Any group of three or more office uses on a parcel or combination of parcels that are generally served either by common access or common parking.
S. Primary Street Frontage. The street frontage from which the majority of the pedestrian or vehicular traffic is drawn or toward which the building or buildings are oriented for primary visual impact. Each commercial complex or shopping center shall be allowed to designate only one primary street frontage subject to approval of the Planning Department. Where no single street frontage can be identified as the primary street frontage, or in cases of dispute as to which street frontage is the primary street frontage, the Planning Director shall designate the primary street frontage in conjunction with the review of proposed signs.
T. Relocated Billboard. An existing Billboard that is located in the City that is relocated through a City Council approved relocation agreement, including the replacement of a static Billboard face with an electronic message center. The relocated Billboard is not considered a new Billboard.
U. Secondary Street Frontage. A street frontage other than a primary street frontage.
V. Shopping Center. Same as commercial complex.
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W. Sign. Any device, fixture, placard or structure, including its component parts, which draws attention to an object, product, place, activity, opinion, person, institution, organization, or place of business, or which identifies or promotes the interests of any person and which is to be viewed from any public street, road, highway, right-of-way or parking area. However, the following are not within the definition of "sign" for regulatory purposes of this Chapter:
a. Interior signs: Signs or other visual communicative devices that are located entirely within a building or other enclosed structure and are not visible from the exterior thereof, provided the building or enclosed structure is otherwise legal; b. Architectural features: Decorative or architectural features of buildings (not including lettering, trademarks or moving parts);
c. Symbols embedded in architecture: Symbols of noncommercial organizations or concepts including, but not limited to, religious or political symbols, when such are permanently integrated into the structure of a permanent building which is otherwise legal;
d. Personal appearance: Items or devices of personal apparel, decoration or appearance, including tattoos, makeup, costumes (but not including commercial mascots);
e. Manufacturers' marks: Marks on tangible products, which identify the maker, seller, provider or product, and which customarily remain attached to the product even after sale;
f. Fireworks, etc.: the legal use of fireworks, candles and artificial lighting not otherwise regulated by this Chapter;
Mass transit signage: Advertisements or banners mounted on trains or duly licensed mass transit vehicles that legally pass through the City; h. Certain insignia on vehicles and vessels: On street legal vehicles and properly licensed watercraft: license plates, license plate frames, registration insignia, commercial and noncommercial messages, messages relating to the business of which the vehicle or vessel is an instrument or tool (not including general advertising) and messages relating to the proposed sale, lease or exchange of the vehicle or vessel;
g.
j.
Gravestones or grave markers; and
News racks and newsstands.
X. Sign Structure. The supports, uprights, bracings, guy rods, cables and other structural framework of a sign or outdoor display.
Y. Uniform Sign Program. A detailed set of plans, specification and other information for signs in a commercial, industrial or office complex, a group of three or more businesses on a parcel or project site or for commercial recreation uses accompanied by drawings to scale as set forth in Section 17.07.060 C.
Z. Window Area. The total area of a window upon which signs, images or messages may be mounted. A group of window panes or panels can be considered one window if they are adjoining on the building face and are less than six inches apart.
17.07.060 - Administration, permits, and appeals.
A. Sign Permit Required. A sign permit shall be required prior to the placing, erecting, moving or reconstructing of any sign in the City, unless the subject sign is expressly exempted from the permit requirement by this Chapter or other applicable law. Signs requiring a permit shall comply with the provisions of this Chapter and all other applicable laws and ordinances.
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B. Permit —Method of Application. An application for a sign permit shall be made on forms as prescribed by the Director. Such an application shall be filed with the Planning Department.
The application shall be accompanied by any fees or bonds as specified by City Council resolution.
C. Permit Application —Contents. A sign permit application shall contain the location by street and number of the proposed sign structure, as well as the name and address of the owner and the sign contractor or erector. Three copies of the plans, fully dimensioned, shall be filed with the application, including:
1. Plot plan, fully dimensioned, showing location of all buildings and improvements and the location of each proposed sign together with the location, size and height of all existing signs on the premises/site. The street frontage shall be clearly indicated on the plan.
2. Elevation plan, fully dimensioned, showing height and size of each proposed sign, colors, method of illumination and materials of construction, and if a wall sign, the exact location on the face of the building.
3. Structural and electrical plans, details and calculations prepared and signed by an engineer or architect registered in the State. Such details shall be required when the area of the sign exceeds five (5) square feet and the height of the sign exceeds six (6) feet.
4. A statement by the owner of the proposed sign as to whether the sign is to display commercial or noncommercial messages, or both, and whether the display face will be permanent, changeable, or a permanent structure with changeable elements. If the proposed sign is to be used to display commercial messages, then the applicant shall also state whether the message is to be onsite or offsite.
D. Purpose and Method of Review. The purpose of a permit is to ensure compliance with the provisions of this Chapter. After receipt of a complete sign application, the Director shall render a decision to approve, approve with modifications or conditions, or deny the sign request within 30 working days. Unless the applicant waives time, failure of the Director to issue a written decision within 30 working days shall constitute denial of the application.
Such a review shall ensure that any sign proposal is in conformance with this Chapter and is consistent with its intent and purpose. In the event that the application is approved with modifications or conditions, those requirements shall not be based upon the proposed message content, sign copy, or design of the visual display of the sign.
E. Appeals. All sign permit applications shall be initially reviewed by the Director. When the Director issues a decision on a sign permit application, or when the time for doing so has expired without a written decision, then the applicant or any concerned person may appeal first to the Planning Commission and then to the City Council. Appeal is effected by filing a written notice thereof with the City Clerk, and paying the applicable appeal fee as set by Resolution of the City Council. In each case, written notice of appeal must be filed with the City Clerk within ten days of when the decision was delivered or sent to applicant and all known concerned persons, or the last day on which a decision should have been timely rendered. In each case, the appellate body must conduct a hearing and consider evidence, and render a written decision within 30 days. In the cases of appeal to the Planning Commission and the City Council, the hearing must follow normal procedures for agenizing and giving public notice. Unless time is waived by the applicant, any permit or approval on which the City does not render a definite decision within the required time shall be deemed denied, and the time for appeal or filing judicial review shall commence on the last date on which the City could have issued a decision.
F. Judicial Review. Following final decision by the City Council, any concerned person may seek judicial review of the final decision on a sign permit application pursuant to California Code of Civil Procedure section 1094.8.
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G. Multiple Sign Applications. When an application proposes two or more signs, the application may be granted either in whole or in part, with separate decisions as to each proposed sign. When an application is denied in whole or in part, the Director's written notice of determination shall specify the grounds for such denial.
H. Revocation or Cancellation. The Director shall revoke any approval upon refusal of the holder thereof to comply with the provisions of this Chapter and/or the terms or conditions of any permit, after written notice of noncompliance and at least 15 days opportunity to cure.
Permits Issued in Error. Any approval or permit issued in error may be summarily revoked at any time before substantial work in reliance upon the permit has been accomplished, by the City upon written notice to the holder of the reason for the revocation.
J. Interpretation of Provisions. Whenever the application of this Chapter is uncertain, the Director may refer the matter to the Planning Commission for determination. All interpretations are to be made in light of the Basic Policies section (17.07.030) of this Chapter.
K. Variances. Applications for a variance from the terms of this Chapter shall be reviewed by the Planning Commission according to the variance procedures set forth in the Zoning Ordinance; however, variances shall be considered without reference to the proposed content, copy, or message of the proposed sign (other than the onsite/offsite distinction for commercial messages).
L. Uniform Sign Program. All applications for approval of signs in a commercial, industrial or office complex, a group of three or more businesses on a parcel or project site or for commercial recreation uses shall be submitted in the form of Uniform Sign Program accompanied by plans as set forth in Section 17.07.060 C.
M. Motorists' Line of Sight. All sign locations shall be safe for traffic sight purposes. A sight distance study may be required with each monument or pylon sign being proposed in the Uniform Sign Program when located next to any right-of-way, sidewalk, driveway, or as designated by the Community Development Director.
N. Program Approval. All sign programs shall be filed and reviewed as provided in this Chapter. Such Uniform Sign Programs shall be developed in full compliance with the requirements of this Chapter. No sign shall be installed which does not conform to the approved Uniform Sign Program.
17.07.070 - General provisions.
A. Interpretation.
1. This chapter is not intended to, and does not, restrict speech on the basis of its content, viewpoint, or message.
2. Any classification of signs in this chapter that permits speech by reason of the type of sign, identity of the sign owner, or otherwise, shall also be interpreted to allow noncommercial messages on the sign.
3. No part of this chapter may be construed to favor commercial messages over noncommercial messages.
4. To the extent any provision of this chapter is ambiguous, the terms shall be interpreted not to regulate on the basis of the content of the message.
B. Signs Exempt from Sign Permits. Subject to the qualifications and conditions stated in this section, the following signs are exempt from the application, permit and fee requirements of this Chapter. However, the exemption from the sign permit requirement does not exempt the proposed sign from uniform code permitting on Title 15, including but not limited to building, electrical, plumbing and grading permits.
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1. Permanent window signs not exceeding four (4) square feet and limited to business identification, hours of operation, address and emergency information only.
2. Commercial temporary signs used to direct persons to open houses and real estate sales as provided in Section 17.07.080.B(1).
3. Commercial temporary signs for construction or remodeling sites as provided in Section 17.07.080.B(4).
4. Commercial temporary signs for future tenant identification as provided in Section
17.07.080.B(5).
5. Directional signs, on -site, not to exceed three (3) square feet in sign area.
6. Residential building identification signs used to identify individual residences and not exceeding two (2) square feet.
7. Official and legal notices issued by the court, public body, person or officer in performance of his public duty or in giving any legal notice.
8. Directional, warning, identification, or informational signs or structures required or authorized by law or by federal, State, County or City authority.
9. Temporary Commercial flags on commercial, industrial, or agricultural properties as provided in Section 17.07.080.6(7).
10. Signs of public utility companies, indicating danger or which serve as an aid to public safety or which show location of underground facilities or public telephones.
11. Safety signs on construction sites.
12. Temporary Signs with noncommercial messages, except for special event signs as provided in Section 17.07.080.A.
13. On -site temporary window signs for any establishment displaying a commercial message in a commercial zone, and for commercial uses in industrial or industrial/business park zones when approved as part of a Uniform Sign Program as provided in Section 17.07.080.6(2).
14. Paper signs and similar signs which are rotated on a regular basis, shall have a fastening device for a more permanent look.
15. Temporary signs with a commercial message for garage or yard sale signs are allowed without permit as provided in Section 17.07.080.6(3).
16. Commercial flags and banners in conjunction with approved residential subdivision sales office or a commercial sales or leasing office, or an industrial sales or leasing office as provided in Section 17.07.80.B(6).
17. Signs on the public right -of way as provided in Section 17.07.090(E).
C. Prohibited Signs. The signs described in this subsection are prohibited, unless some other more specific provision in this Chapter or other applicable law makes them allowable, either by permit or exemption from the permit requirement.
1. Roof signs;
2. Flashing signs, except time and temperature signs;
3. Animated signs;
4. Revolving signs;
5. Portable signs;
6. Off -site commercial signs on permanent structures;
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7. Signs blocking doors or fire escapes;
8. Light bulb strings and exposed tubing, except for temporary uses such as Christmas tree lots;
9. Banners, flags, pennants and balloons, except as allowed under subsection B above
10. Inflatable signs or signs designed to be air activated, floated or flown, including balloons used for commercial advertising purposes, kites or other serial signs that are made of any electrically conducive material;
11. Signs, posters and advertisements attached to utility poles;
12. Exposed raceways; and
13. Billboards, except for relocated Billboards. See 17.07.030(G).
D. Roof Signs. Roof signs may be used only in the event no other signing alternatives are available. Roof signs may be issued a permit by the Director if architecturally designed and built into the roof structure. Such design shall be compatible in design and materials with the building.
E. Signs Related to Inoperative Establishments. Signs promoting activities or establishments which are no longer in operation shall be removed from the premises or the sign copy shall be removed or obliterated within 45 days after the premises has been vacated or the use abandoned. Any such sign not removed within the specified time shall constitute a nuisance and shall be subject to removal under the provisions of this Chapter.
F. Enforcement, Penalties and Abatement.
1. Any violation of this Chapter shall be deemed to be a continuing violation until the violation has been corrected.
2. Violation of any of the provisions of this section shall constitute a nuisance and a Zoning ordinance violation.
3. Notwithstanding any other provision of this Chapter, the City Attorney, upon the direction of the City Council, may commence an action in a court of competent jurisdiction to obtain an injunction prohibiting the construction, erection, maintenance or display, or requiring the removal, of any sign that is in violation of any of the provisions of this section. In any such action, the City shall be entitled to recover its costs and its reasonable attorney's fees.
4. The owner or other person entitled to possession of a sign which is removed, stored and/or destroyed pursuant to any provision of this section shall be liable to the City for the cost of the removal, storage and/or destruction of the sign and the City may recover the same through an action commenced in a court of competent jurisdiction together with the City's court costs and reasonable attorney's fees.
5. Any illegal sign within the public right-of-way is found and declared to be a public nuisance, and such sign may be abated by the City as follows:
A. If the address of the owner or other person entitled to possession of the sign is known, notice of the City's intention to remove and destroy the sign, stating the date after which sign will be removed and destroyed, shall be mailed to the owner or other person entitled to possession by certified mail, return receipt requested at least ten days before the date. If the address of the owner or other person entitled to possession is not known, the notice shall be affixed in a conspicuous place on said sign at least ten days before the date. The notice shall also set forth the provisions of this section.
B. The owner or other person entitled to possession of the sign may, before the removal date stated in the notice, file a written request for hearing with 11
the Planning Department. The request shall identify the sign and its location, state the name and address of the owner or other person entitled to possession and set forth in detail the legal basis as to why the sign should not be removed and destroyed.
C. If a request for hearing is filed under subsection b, the Planning Commission shall hear the matter at a regularly scheduled meeting held not more than 30 days thereafter. After the hearing, the Planning Commission shall determine whether or not the sign is an illegal sign within the public right-of-way. The written decision of the Planning Commission shall be rendered within ten (10) days after the hearing and a copy of the decision shall be mailed to the owner or other person entitled to possession within seven days thereafter. Unless a notice of appeal is filed as provided for in this Chapter, the decision of the Planning Commission shall become final ten days after mailing.
D. The owner or other person entitled to possession may file a notice of appeal with the City Clerk within ten days after the date of mailing of the Planning Commission's decision. If a timely notice of appeal is filed, the matter shall be heard by the City Council at a regular meeting scheduled not more than 30 days thereafter. After hearing, the City Council shall determine whether or not the sign is an illegal sign within the public right- of-way. The written decision of the City Council shall be rendered within ten days after the hearing and a copy of the decision shall be mailed to the owner or other person entitled to possession within seven days thereafter.
The decision of the City Council becomes final ten days after mailing.
E. Unless the owner or other person entitled to possession of the sign, on or before the removal date stated in the notice described in this section, files a written request for hearing with the Planning Department, the City may, at any time after said date, remove and destroy the sign. If a written request for hearing is filed then upon any final decision of the Planning Commission or the City Council determining that the sign is an illegal sign within the public right-of-way, the City may remove and destroy the sign.
F. Notwithstanding any provision of this Chapter to the contrary, any illegal sign within the public right-of-way which constitutes a hazard to pedestrian or vehicular traffic may be removed immediately and stored by the City, at the expense of the owner, or other person entitled to possession, pending completion of the notification and hearing procedures set forth in this section.
G. Construction and Maintenance of Signs.
1. Every sign and all parts, portions, and materials shall be manufactured, assembled and erected in compliance with all applicable state, federal, and city laws and regulations, including but not limited to the permitting requirements contained in Title 15 relating to Buildings and Construction.
2. Every sign and all parts, portions and materials shall be maintained and kept in a first-class condition. The display surface of all signs shall be kept clean, neatly painted and free from rust, corrosion and graffiti. Any cracked, broken surfaces, malfunctioning lights, missing sign copy or other unmentioned or damaged portion of a sign shall be repaired or replaced within 30 days following notification by the City. Noncompliance with such a request will constitute a zoning violation and may be enforced as such by the city.
17.07.080 — Temporary Signs.
The following temporary signs are allowed:
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A. Noncommercial Temporary Signs. Noncommercial temporary signs are not considered either on -site and off -site and are subject to the following regulations:
NONCOMMERCIAL TEMPORARY SIGNS
Sign Criteria
Limitation
Signs in Residential Zones, Legal Residential Uses, Commercial or Industrial Zones, and on Legal Commercial or Industrial Uses on Land One -Half (1/2) Acre or Less Sign Quantity:
Not Limited
Maximum Size of Any One Side
(measured one side only):
10 square feet
Maximum Area of All Signs Combined:
20 square feet
Maximum Height:
6 feet
Placement:
At least 5 feet from edge of curb or street
pavement if no curb exists and shall not obstruct
pedestrian traffic or line of sight for vehicle traffic Time limitations:
Period not to exceed 60 days. Any time a
temporary noncommercial sign is removed, it shall
not be replaced by the same or other temporary
sign for a period of not less than 90 consecutive
days.
Sign Permit Required:
No
Signs in Commercial or Industrial Zones and on Legal Commercial or Industrial Uses on Land Over One -Half (1/2) Acre
Sign Quantity:
Not limited
Maximum Size of Any One Side
(measured one side only):
16 square feet
Maximum Area of All Signs Combined:
64 square feet
Maximum Height:
8 feet
Placement:
At least 5 feet from edge of curb or street
pavement if no curb exists and shall not obstruct
pedestrian traffic or line of sight for vehicle traffic Time limitations:
Period not to exceed 60 days. Any time a
temporary noncommercial sign is removed, it shall
not be replaced by the same or other temporary
sign for a period of not less than 90 consecutive
days.
Sign Permit Required:
No
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B. Commercial Temporary Signs. Commercial temporary signs distinguish between on -site and off -site and are subject to the following regulations:
COMMERCIAL TEMPORARY SIGNS
Sign Criteria
Limitation
CO
Real Estate Signs for Sale, Lease, or Rent (Signs on Residential Properties) Sign Quantity:
1 sign per parcel or lot
Total Area Per Display Face:
Not to exceed 8 square feet
Total Display Faces:
2 Maximum Height:
5 feet
Setback from Property Line:
At least 5 feet
Time Limitation:
Shall be removed within 15 days of the sale,
rental, or lease of the property
Sign Permit Required:
No
(2)
Real Estate Signs for Sale, Lease, or Rent (Signs on Industrial, Commercial or Agricultural Properties)
Sign Quantity:
1 sign per street frontage (Exception: Where a
property has in excess of 600 linear feet of
frontage, one (1) additional sign is permitted for
each 600 linear feet of street frontage)
Total Area Per Display Face:
Not to exceed 32 square feet
Maximum Height:
8 feet
Setback from Property Line:
At least 10 feet
Time Limitation:
Shall be removed within 15 days of the sale,
rental, or lease of the property
Sign Permit Required:
No
(3)
On -Site Temporary Window Signs Displaying a Commercial Message (Commercial zone, and for Commercial Uses in Industrial or Industrial/Business Park Zones When Approved as Part of a Uniform Sign Program)
Window Area:
30 percent (on multi -story buildings, only the
windows on the first floor may be counted), but in
no event shall window signs exceed 150 square
feet per street frontage
Placement:
First floor only on multi -story buildings
14
-
COMMERCIAL TEMPORARY SIGNS
Sign Criteria
Limitation
Maximum Height:
20 feet in height above finished grade on one-
story buildings
Time Limitation:
45 days
Sign Permit Required:
No
(4)
Garage and Yard Sale Signs
Sign Quantity:
3 Maximum Size:
3 square feet
Placement:
Placed on private property, and not in the public
right-of-way or on utility poles
Time Limitation:
Erected on the day of the event as permitted and
removed at sunset of each such day.
Sign Permit Required:
No
(5)
Construction Signs
Sign Quantity:
1 sign per project
Zone:
Any district
Maximum Size:
32 square feet (unless a larger sign is required by
another body of law, in which case the smallest
sign conforming to the law shall be used)
Maximum Height:
8 feet
Placement:
Set back from the property line by at least 10 feet
Time Limitation:
Removed at the earliest of issuance of certificate
of occupancy, certificate of completion, or final
inspection check off, or their functional equivalent
or upon abandonment of project.
Sign Permit Required:
No
(6)
Future Tenant Identification Signs (Parcels 10 Acres or Less) Sign Quantity:
1 per street frontage
Maximum Area:
32 square feet
15
COMMERCIAL TEMPORARY SIGNS
Sign Criteria
Limitation
Maximum Height:
8 feet
Placement:
Placed no less than 10 feet from any property line
Time Limitations:
Removed upon completion of project
Sign Permit Required:
No
(7)
Future Tenant Identification Signs (Parcels Greater than 10 Acres) Sign Quantity:
1 sign for every 600 feet of street frontage
Maximum area:
64 square feet per side
Maximum Height:
15 feet
Placement:
Placed no less than 10 feet from any property line;
placed along the freeway at 1,000 -foot intervals,
not to exceed 150 square feet in area per side
and 20 feet in overall height
Time Limitations:
Removed upon completion of project
Sign Permit Required:
No
(8)
Commercial Flags and Banners for Real Estate Sales and Leasing With an Approved Residential Subdivision Sales Office or a Commercial Sales or Leasing Office, or an Industrial Sales or Leasing Office
Sign Quantity:
6 Maximum Size:
15 square feet
Maximum Height:
15 feet
Placement:
Displayed in the immediate vicinity of the
sales/leasing office; not permitted within the public
right-of-way.
Time Limitations:
Flags shall be maintained in good condition; torn
or worn flags shall be replaced
Sign Permit Required:
No
Additional Requirements:
Residential subdivision office: Flags may be
maintained as long as a valid operating permit for
the sales office remains in effect;
16
-
COMMERCIAL TEMPORARY SIGNS
Sign Criteria
Limitation
Commercial office or industrial sales or leasing
office: Flags may be maintained until 75 percent
of the spaces have been leased.
(9)
Commercial Flags on Commercial, Industrial, or Agricultural Properties (Property Less Than One Acre)
Sign Quantity:
3 Maximum Height:
30 feet
Maximum Area:
60 square feet (measured one side only)
Sign Permit Required:
No
(10)
Commercial Flags on Commercial, Industrial, or Agricultural Properties (Property One Acre or Larger)
Sign Quantity:
6 Maximum Height:
30 feet
Maximum Area:
60 square feet (measured one side only)
Sign Permit Required:
No
C. Temporary Signs for Special Events.
1. A special event sign is a sign associated with a single event or series of events that occur on an infrequent or sporadic basis, and takes place at a specific location in which the public is encouraged or invited to watch, listen, participate, or purchase goods and/or services, including, but not limited to, the following:
a) Commercial sales, including grand openings and pre- and post -holiday sales;
b) Arts and craft shows, trade shows, antique shows, and other similar events;
c) Carnivals, fairs, festivals, circuses, and similar activities; d) Outdoor shows, concerts, and exhibitions;
e) Community events; and
f) Annual events.
2. Special event signs shall be permitted when they comply with the provisions of this subsection. Applicants for a special event sign shall submit a letter to the director that describes the proposed event by location, area and time duration.
The application shall be processed in the same manner, and subject to the same 17
appellate procedures, as an application for a sign permit. Special event sign permits are subject to the following regulations:
TEMPORARY SIGNS FOR SPECIAL EVENTS
Sign Criteria
Limitation
Sign Quantity:
1 (may be in the form of a banner or pennant)
Maximum Area:
50 square feet in area (measured one side)
Maximum Height:
10 feet
Zone:
Any district
Time Limitation:
Taken down with 7 days of the event
Sign Permit Required:
Yes
17.07.090 - Signs permitted in all zones.
A. Permitted Signs. Generally, sign permits shall be issued for signs included under this section, provided the signs are in compliance with the regulations stated in this section, and all other applicable laws and ordinances.
B. Special Event Signs. See 17.07.080.0 for applicable standards.
C. Permitted Signs —On -site Subdivision Commercial Signs. Onsite subdivisions may display commercial signs which conform to the following:
1. One temporary on -site subdivision commercial sign not to exceed 64 square feet total for two sides or 32 square feet for each side and a total overall height of 15 feet may be permitted on each primary street frontage of the property being subdivided, not to exceed two such signs for all phases of any subdivision (interior streets of the subdivision are not recognized as a main street frontage).
2. Such commercial signs shall be removed within ten (10) days from the date of the final sale of the land and/or residences.
3. Such commercial signs shall be maintained in good repair at all times.
4. A cash deposit of $500.00 per sign shall be deposited with the sign application to ensure compliance with this section and removal of such sign. The deposit shall be refunded to the applicant upon sign removal by the applicant. If the City is forced to remove any signs, then the cost of removal shall be deducted from the deposit.
Additional costs incurred by the City resulting from the removal of illegal signs shall be charged to the developer.
D. Permitted Signs —Temporary Subdivision Commercial Directional Signs, On -Site. The following signs may be permitted in any zoning district subject to the provisions listed:
1. A maximum of six (6) signs may be used to lead customers to the site.
2. Commercial signs shall be no larger than 600 square inches and shall be grouped on a two-sided sign structure. The City may, from time to time, develop or amend the design details for this sign structure.
18
3. Such a commercial sign structure shall be located not less than 600 feet from an existing or previously approved sign site. Further, each sign may only contain the name of the subdivision, and a directional arrow.
4. The placement of each commercial sign structure shall be reviewed and approved by the Planning Director, who shall base the decision on non -communicative aspects of the sign.
5. Commercial signs placed on private property shall require the written consent of the property owner, to be filed with the Planning Director prior to issuance of a permit.
6. A sign location plan shall be prepared showing the site of each commercial directional sign, on -site and shall be submitted to the planning department prior to the issuance of a sign permit.
7. Any such commercial sign approved for a particular subdivision within the City shall not be changed to advertise another subdivision.
8. There shall be no additions, tag signs, streamers, devices, display boards, or appurtenance added to the sign as originally approved. Further, no other directional signing may be used, such as posters or trailer signs.
9. All nonconforming subdivision commercial signs associated with the subdivision in question must be removed prior to the issuance of a new sign permit.
10. A $500.00 cash deposit shall be placed with the City to ensure compliance with this subsection. Any sign placed contrary to the provisions of this section may be removed by the City and the cost of removal shall be deducted from the deposit.
Additional costs incurred by the City resulting from the removal of illegal signs shall be charged to the developer.
11. The commercial sign(s) may remain on display only until the subdivision is sold out.
E. Signs on the Public Right -of -Way. Signs on the public right-of-way are limited to noncommercial messages. Temporary noncommercial signs may be displayed for a period not to exceed 60 days. Any time a temporary noncommercial sign is removed in the public right-of-way, it shall not be replaced by the same or other temporary sign for a period of not less than 90 consecutive days.
Signs shall be placed a minimum of three (3) feet from edge of curb or street pavement if no curb exists and shall not obstruct pedestrian traffic or line of sight for vehicle traffic; no signs shall be placed in lawn areas, parks, medians, civic center, CRC, or other government buildings; signs shall not be attached to fences, traffic control posts, utility poles, or bus shelters; no signs shall be placed in grassy areas that are to be mowed or landscaped. Signs shall only be placed in areas identified in the map below. 19
Gott
Cherry Valley Blvd
3 c
1 Oak valley ',toy
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W 4nt St
a
{
Orchard St
1 d
1 San Gorgonio Plla
1 Ordwrd St
Vineland St
1 Lincoln St
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:oo,u way
Highland
Springs
tr 4th St
i
1 14* a
11216: t
1 1*St
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e
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Streets
1st Street
2nd Street
6th Street
Beaumont Ave
Desert Lawn
Highland Springs
Oak Valley Pkwy
Palm Ave
20
17.07.100 - Signs in recreation, open space, residential and agricultural zones.
A. R -C (Recreation -Conservation) Zone. Signs in the R -C Zone shall be limited to commercial temporary signs in accordance with Section 17.07.080.B(1) of this Chapter and the following signs for commercial recreation uses, subject to approval of a Uniform Sign Program as described in Section 17.07.060.L.
1. One Monument Sign for each street frontage, limited to five (5) feet in height and 32 square feet in size.
2. Building mounted signage not exceeding ten (10) percent for any building wall.
B. Residential Zones. The following signs shall be permitted in residential zoning districts:
1. Single -Family Residential Zone (R -SF). Commercial temporary signs and identification signs in accordance with Section 17.07.080.6(1), and noncommercial temporary signs per Section 17.07.080.A.
2. Multi -Family Residential Zone (R-MF).
a. Commercial temporary signs in accordance with Section 17.07.080.6(1) of this Chapter.
b. A maximum of two signs indicating the name of the multiple -family dwelling, apartment or dwelling group shall be permitted. Such signs may include Monument Signs not exceeding six (6) feet in height and/or wall - mounted signs. The total area of each sign shall not exceed four (4) square feet for less than 12 units, or 12 square feet for 12 or more units. Signs attached to the wall of the building shall not extend above the roof or eave line. Such sign may project 12 inches maximum from the building face.
Identification signs may be illuminated, either internally or externally; provided, that all lights are directed away from public rights -of -way and adjacent properties.
c. An illuminated directory sign shall be provided at each entrance of all multi- family complexes with more than 12 dwelling units. Directory signs shall provide a diagrammatic representation of the complex in accordance with the requirements of the Fire Department
d. Noncommercial temporary signs per Section 17.07.080.A of this Chapter.
C. Rural Residential (R -R) Zone.
1. Commercial temporary signs and identification signs in accordance with Section
17.07.080.B(1) of this Chapter.
2. Signs for produce sales, subject to approval of a Uniform Sign Program in accordance with Section 17.07.060.L of this Chapter.
3. Noncommercial temporary signs per Section 17.07.080.A of this Chapter.
D. Traditional Neighborhood Residential (R -TN) Zone. The R -SF Zone sign standards shall apply to single-family dwellings, and the R-MF Zone sign standards shall apply to multiple - family dwellings.
17.07.105 - Signs in urban village zone.
A. Urban Village Zone. The R-MF Zone sign standards shall apply to multiple -family dwellings, and commercial zone sign standards (Section 17.07.120) shall apply to commercial uses.
17.07.110 - Signs in manufacturing zones, industrial complexes and business parks.
21
B. (Manufacturing) M Zone, Industrial complexes and business parks.
1. Permitted Signs. The following signs are specifically permitted for manufacturing zones, industrial complexes and business parks subject to the approval of a Uniform Sign Program in accordance with Section 17.07.060.L of this Chapter:
a. Wall Signs. One (1) wall sign is permitted for each wall face of the establishment, up to a maximum of four (4) wall signs. If said signs display commercial images or messages, they shall qualify as "onsite" commercial messages. In no case shall the total sign area of any unit or building exceed one (1) square foot of sign area for each linear foot of the unit's or buildings primary frontage. In no event shall the area of any one wall sign exceed 100 square feet. Wall signs shall not occupy more than 70 percent of the storefront or unit width. A wall sign may not project any of its height above the roof, eave line or parapet of the wall upon which it is mounted. b. Monument Signs. One (1) Monument Sign not to exceed 30 square feet in sign area may be permitted. The Monument Sign structure shall not exceed six (6) feet in height. Additional Monument Signs may be permitted on parcels having more than one (1) frontage if the signs are located at least 300 feet apart. Monument signs shall be placed in a landscaped area or planter of not less than 250 square feet and shall be located a minimum of five (5) feet from any right-of-way, sidewalk or driveway. c. Pylon Sign. One pylon sign not to exceed 100 square feet in sign area will be permitted to identify separate business or uses in the industrial complex. The pylon sign structure shall not exceed 20 feet in height. Pylon signs shall be placed in a landscaped area or planter of not less than 250 square feet. Pylon signs shall be a minimum of five (5) feet from any right- of-way, sidewalk or driveway.
d. Commercial Directional Signs, On -Site. A maximum of two (2) on -site directional signs per drive approach each not to exceed a total of ten (10) square feet in area and four (4) feet in height.
17.07.120 - Signs in commercial zones.
The standards and provisions contained in this section shall be applicable to the Commercial Neighborhood (C -N) and Community Commercial (C -C) zones.
A. Permitted signs in the C -N and C -C Zones within a commercial complex shall include:
1. Wall Signs: One (1) wall sign is permitted for each wall face of the establishment provided there are not more than four (4) wall signs for any one establishment. If used to display a commercial message, the sign must qualify as on -site. In no case shall the total sign area of any unit or building exceed one (1) square foot of sign area for each linear foot of the unit's or building's primary frontage and shall not exceed 100 square feet per sign. Wall signs shall not occupy more than 70 percent of the storefront or unit width. If the sign contains a logo, said logo shall be a maximum of 36 inches in height. A wall sign may not project any of its height above the roof eave line or parapet of the wall upon which is mounted.
2. Monument Signs: One (1) Monument Sign not to exceed 30 square feet in sign area which may be permitted to identify separate establishments or uses in the commercial complex. The Monument Sign structure shall not exceed six (6) feet in height. Additional Monument Signs may be permitted on parcels having more than one (1) frontage and the signs are located at least 300 feet apart. Monument signs shall be placed in a landscaped area or planter of not less than 250 square feet. 22
Monument signs shall be located a minimum of five (5) feet from any right-of-way, sidewalk or driveway.
3. Pylon Signs: One (1) pylon sign not to exceed 100 square feet in sign area will be permitted to identify a separate business or uses in the commercial complex. The pylon sign structure shall not exceed 20 feet in height. For each secondary street frontage with at least 300 feet of length, one (1) additional pylon sign may be permitted not to exceed 100 square feet in sign area and shall not exceed 20 feet in height. When such a sign is used to display a commercial message, it must qualify as onsite.
a. Where pylon signs are placed on both major and secondary street frontages, each such sign shall be placed as near to the middle of the street frontage as practical or at a major driveway entrance to the commercial complex from the street frontage.
b. Pylon signs shall be placed in a landscaped area or planter of not less than 250 square feet. Pylon signs shall be a minimum of five (5) feet from any right-of-way, sidewalk or driveway.
c. A maximum of three (3) signs may be used to identify any one establishment pursuant to the criteria outlined in this section.
4. Service and Delivery Signs: One (1) unlighted sign per occupancy not to exceed two (2) square feet may be placed on the rear of the building for service and delivery purposes.
5. Commercial Directional Signs, On -Site: A maximum of two (2) on -site directional signs per drive approach, each not to exceed a total of ten (10) square feet in area and four (4) feet in height.
6. Window Signs: Window signs conforming to the provisions of Sections
17.07.070.B(1) and (14), and 17.07.080.B(2).
Under Canopy Signs: For each use or occupancy, one (1) maximum four (4) foot under canopy sign per frontage.
B. Permitted signs in the C -N and C -C Zones for uses not part of a commercial complex shall include:
1. Wall Signs: One (1) wall sign is permitted for each wall face of the establishment provided there are not more than four (4) wall signs for any one establishment. If such sign is used for a commercial message, it must qualify as on -site. In no case shall the total sign area of any unit or building exceed one (1) square foot of sign area for each linear foot of the unit's or building's primary frontage and shall not exceed 100 square feet per sign. Wall signs shall not occupy more than 70 percent of the storefront or unit width. A wall sign may not project any of its height above the roof eave line or parapet of the wall upon which is mounted.
2. Service and Delivery Signs: One (1) unlighted sign per occupancy not to exceed two (2) square feet may be placed on the rear of the building for service and delivery purposes.
3. Directional Signs, On -Site: A maximum of two (2) on -site directional signs per drive approach each not to exceed a total of ten (10) square feet in area and four (4) feet in height.
4. Window Signs: Window signs conforming to the provisions of Sections
17.07.070.B(1) and (14), and 17.07.080.B(2).
5. Under Canopy Signs: For each use or occupancy, one (1) maximum four (4) foot under canopy sign per frontage.
23
6. Exceptions: Certain exceptions to the sign standards applicable to commercial uses not located within a commercial complex may be approved by the Planning Commission including the election of freestanding sign(s) when the following findings can be made by the Planning Commission, without consideration of proposed message content (other than the onsite/offsite distinction in the case of commercial messages):
a. The site is subject to limited visibility and additional signing is necessary for a reasonable level of advertising exposure;
b. The type of establishment or the configuration of the site necessitates additional signage.
c. Exceptions shall be processed through the sign permit and minor variance process provided for in the Zoning Ordinance.
C. Freeway -Facing Signs. Permitted in the C -N and C -C Zones subject to the following requirements:
1. The maximum allowable sign face area of any freeway -facing sign for a shopping center or commercial complex which totals more than 250,000 square feet of gross floor area shall be 300 square feet and shall not exceed 60 feet in height. When such display area is used for commercial speech, the copy must qualify as onsite as to the shopping center or commercial complex.
2. The maximum allowable sign face area of any freeway -facing sign for a shopping center or commercial complex which totals less than 250,000 square feet of gross floor area shall be 150 square feet and shall not exceed 60 feet in height.
3. Freeway -facing signs, including freeway -facing electronic message center signs, may only be permitted subject to the approval of a sign permit by the Planning Commission, and if said sign is a Billboard or relocated Billboard, the sign shall be subject to the requirements of section 17.07.030(G). Freeway -facing signs will be permitted when they satisfy all of these criteria:
a. The proposed sign is located upon the property upon which the use identified is located;
b. The proposed sign is located in the vicinity of a freeway interchange and within 300 feet of the freeway right-of-way and 600 feet of the intersecting street right-of-way;
c. The following findings must be made, without consideration of message content of the proposed sign:
The elevation of the freeway in relation to the elevation of the abutting properties justifies the height requested, and is the minimum necessary.
ii. The number and spacing of freeway signs will not cause unnecessary confusion, clutter or other unsightliness in the general location.
The use identified, as well as its type, size and intensity, justifies the size, design and location of the sign requested.
iv. The needs of the traveling public for identification and directional information justifies the sign requested.
D. Automobile Service Station Signs. Automobile service station signs shall be permitted subject to the following requirements:
1. Identification/Price Monument Sign: For each service station, one (1) monument, combination price and identification sign, maximum 30 square feet in size and 24
maximum six (6) feet in overall height shall be permitted, and must include all price advertising as required by State law. Elevated signs may be used subject to approval of the Planning Commission (without consideration of message content) where vision impairments exist, however elevated signs shall be designed with appropriate vision spaces. Such signs shall not exceed 15 feet in overall height.
2. Identification Pylon Sign: For service stations located contiguous to a freeway, where a freeway exit serves the street from which the service station takes direct access, in addition to the identification/price Monument Sign allowed by paragraph (1) above, one (1) pylon sign, maximum 100 square feet in size and 40 feet in overall height, situated so as to be directed toward and permanently viewable from the freeway, shall be permitted.
3. Special Service Signs: Each service station may display two (2) special service signs per pump island. Special service signs shall be limited to such items as self - serve, full serve, air, water, cashier, and shall be non -illuminated. Such signs must be permanently affixed to the pump island they identify. Each sign may not exceed four (4) square feet in overall size.
4. Wall Signs: Wall signs for automobile service stations shall be permitted subject to the provisions set forth in Section 17.07.110.A(1) and (6).
5. Commercial Directional Signs, On -Site: Maximum of two (2) on -site directional signs per drive approach, each not to exceed a total of ten (10) square feet in area and four (4) feet in height.
6. Window Signs: Window signs conforming to the provisions of Section
17.07.070.B(1) and (14), and 17.07.080.B(2).
E. Theater Marquee Signs. Theater marquee signs shall be permitted subject to the following requirements:
1. The size of a theater marquee sign shall be determined by the number of screens.
Each screen shall be permitted a maximum of ten (10) square feet for each sign face area. A theater marquee sign may not total more than 100 square feet of sign face area.
2. A maximum of one (1) theater marquee sign, not to exceed 25 feet in height, is permitted per street frontage exclusive of freeway; provided, however, that the theater is part of an integrated shopping center.
3. A maximum of one (1) theater marquee sign, not to exceed 25 feet in height, shall be permitted for theaters not considered to be part of an integrated shopping center.
4. A maximum of one (1) wall -mounted theater marquee sign shall be permitted at the main entrance to the theater.
F. Electronic Message Center Signs. Electronic message center signs shall be permitted subject to the following requirements:
1. One (1) electronic message center sign may be permitted in a commercial complex with a minimum of 25,000 square feet of floor area. No electronic message center sign shall be located closer than 2,500 feet to another electronic message center sign. A conditional use permit shall be required whereby the Planning Commission will determine the size and height of the sign.
2. Each display shall appear for a period of at least eight (8) seconds. Displays shall not be animated, appear in incremental stages or move across the changeable copy sign face. The sign shall remain blank (no message or display) for at least one (1) second between separate images.
25
3. The sign may display only noncommercial messages or onsite commercial messages, related to those establishments that are part of the complex or the merchandise or activities available on the parcels which are part of the commercial complex. The sign shall not be used as a Billboard.
4. The sign shall be reviewed for traffic safety purposes by the City's Public Works Director and shall comply with any and all safety standards as prescribed by the State of California. Such reviews shall not consider message content.
17.07.130 - Sign regulations for specific plan area zone.
A. Permitted Signs in the Specific Plan Area (SPA) Zone —Exempt Signs. The SPA Zone permits a variety of residential and supporting commercial and other supporting land uses.
Signs which may be erected without permits as provided for in Section 17.07.070 of this Chapter are permitted in the SPA Zone consistent with the respective land use.
B. Signs Subject to Permits. Provisions and standards for signs shall be established within a specific plan for land uses contained therein. The specific plan shall establish a project - wide sign program and shall make provisions for the development and review of Uniform Sign Programs consistent with Section 17.07.060.L of this Chapter for each non-residential land use component of the specific plan.
17.07.140 - Sign design standards.
The design standards set forth in this section apply to all signs in the City of Beaumont.
A. Relationship to Other Signs. Where there is more than one (1) Monument Sign located upon a lot, all such signs shall have designs which are well related to each other by the similar treatment or incorporated of not less than four (4) of the following six (6) design elements:
1. Type of construction materials as used in the several sign components (such as cabinet, sign copy, supports);
2. Letter style of sign copy;
3. Illumination;
4. Type or method used for supports, uprights or structure on which sign is supported;
5. Sign cabinet or other configuration of sign area; and
6. Shape of entire sign and its several components.
B. Landscaping. Each Monument Sign shall be located in a planted landscaped area which is of a shape, design and size (equal to at least the sign area) that will provide a compatible setting and ground definition to the sign. The planted landscaped area shall be maintained on a reasonable and regular basis.
C. Illumination and Motion. Monument signs shall be non-moving stationary structures (in all components) and illumination, if any, shall be maintained by artificial light which is stationary and constant in intensity and color at all times (non -flashing).
D. Sign Color. Sign colors should be compatible with the building architecture. Within shopping centers, sign color should complement the color scheme for the center. 26
Streets
1st Street
2nd Street
6th Street
Beaumont Ave
Desert Lawn
Highland Springs
Oak Valley Pkwy
Palm Ave
Loma Linda University, UC Riverside, County of Riverside, California State P rks, Esri, HERE, Garmin, SafeGraph, GeoTechnologies, Inc, METI/NASA, USGS, Buret of Land Management, EPA, NPS, USDA, Esri, NASA, NGA, USGS, LIMA 1
LEGAL ADVERTISEMENT
NOTICE IS HEREBY GIVEN, that the City of Beaumont will conduct public hearings to consider the matter described below. The Planning Commission's public hearing will be held at 6:00 p.m. on Wednesday, September 27, 2023, and the City Council's public hearing will held at 6:00 p.m. on Tuesday, October 3, 2023, at 550 East Sixth Street, Beaumont, California.
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF BEAUMONT, CALIFORNIA
AMENDING CHAPTER 17.07 "SIGNS",
AND
CHAPTER 8.50 "OUTDOOR LIGHTING"
OF THE BEAUMONT MUNICIPAL CODE
Public comments can be made in person, using the public comment phone line or by written email. Phone-in comments will be accepted by calling the designated public comment phone line (951) 922- 4845 prior to the corresponding item. Public comments shall not exceed three minutes unless otherwise authorized by City Council.
Written comments can be emailed to [email protected] Public comments accepted via email will be read aloud during the corresponding item of the meeting. Comments can be submitted any time prior to the meeting as well as during the meeting until the end of the corresponding item.
This meeting will be conducted in person and also and will be recorded for live streaming. All City of Beaumont public meetings will be made available via live streaming and made available on the City's official YouTube webpage. Please use the following link during the meeting for live stream access: BeaumontCa.gov/Livestream Christina
Deputy City ylor Manager Page 320 of 1492
[email protected]
The Press -Enterprise
Published: 9/16/23
BEAUMONT
- C !� 1 1 0 R "1 A
TO:
FROM:
Staff Report
City Council
Robert Vestal, Interim Public Works Director
Jennifer Ustation, Finance Director
DATE October 17, 2023
SUBJECT: Public Hearing and Consideration of a Resolution for the Second Amendment to the City's Fiscal Year 23/24 — Fiscal Year 27/28 Capital Improvement Plan
Description Approval of Resolution to amend the five-year FY 24-28 Capital Improvement Plan (CIP).
Background and Analysis:
On June 6, 2023, City Council, by resolution, adopted the five-year Capital Improvement Plan (CIP) for fiscal years (FY) 2023/2024 — 2027/2028 and the related prior year CIP project list. The plan identifies the City's planned projects over a determined period of time, as well as the prospective financial sources.
On July 18, 2023, City Council approved the first amendment to five-year Capital Improvement Plan for fiscal years (FY) 2023/2024 — 2027/2028 and the related prior year CIP project list. The first amendment included the following projects:
Project Number
Project Name
2019-004
CNG Station
2016-003
Potrero Interchange
CF104
City Hall Renovation
PS -10
Fire Station Squad
T-01
Electric Shuttle Vehicles
T-02
Fleet Maintenance and Operations Facility
T-03
Bus Stop Rehabilitation and Passenger Amenities
T-04
Shop Building Maintenance
T-05
Brand and Logo Update
T-06
Shop Tools and Lifts
T-08
Fleet Video Cameras
T-09
Paratransit Software
T-11
Bus Prediction Platform
T-16
New Vehicle Communications
T-19
4th & Veile Construction
The Second Amendment to the 2023/2024 — 2027/2028 CIP (Attachment B) includes creating the following projects:
R-37 — Beaumont Avenue/I-10 Interchange Project: Beaumont Avenue has significant congestion near the 1-10 interchange. In recent months, a State Route 79 Coalition has been meeting to discuss furthering a project that will terminate at SR79/Beaumont Avenue and Gilman Springs Road, potentially impacting traffic flows at the 1-10 Interchange.
Several studies and analysis are needed to develop a project that will relieve current and future congestion and to improve the overall operational characteristics of the interchange. The initial step is a project evaluation to ensure the project aligns with the Caltrans System Investment Strategy (CSIS), state goals, and priorities. This project evaluation process should result in project scope and documentation of project alignment with Climate Action Plan for Transportation Infrastructure (CAPTI) and California Transportation Plan goals. City staff is recommending establishing a $500,000 initial budget to complete the evaluation process. Future steps include developing a project study report (PSR) project initiation document (PID) with Caltrans to achieve consensus on the purpose and need, scope, and schedule of the project.
Budget
Funding Source
$500,000
General Fund
F-03 — City Hall Accessible Ramps: The City Hall Renovation Project identified deficient accessible paths to City Hall. The cost and time to retrofit the existing ramps exceeds CF104's budget and construction time frame. Subsequently, Supervisor Gutierrez, 5th District County Supervisor, met with City staff and recommended that the City apply for the County's State and Local Fiscal Recovery Funds to cover the cost.
The final agreement with the County to receive the funds is on tonight's agenda for Council's consideration.
The design of the ramps was performed using $15,000 from CF104 budget. Therefore, City staff is recommending creating a new project to construct accessible ramps.
Budget
Funding Source
$400,000
County SLFRF
The Second Amendment to the Prior Year CIP (Attachment C) consist of the following budget changes:
2017-001 — Pennsylvania Avenue/ Ramp Additions: On November 17, 2022, Caltrans informed the City that auxiliary lanes along 1-10 from Beaumont Avenue to Pennsylvania Avenue, eastbound and westbound directions would be required as part of any ramp improvement at Pennsylvania Avenue.
Fehr and Peers evaluated the need for auxiliary lanes and confirmed the requirement.
The addition of the auxiliary lanes will likely require the acquisition of right-of-way from established properties, retaining walls, and overpass widening. Additionally, staff was informed by CalTrans that the grade separation project would first need to be completed prior to the ramp additions.
Therefore, City staff is recommending reallocating unencumbered funds from this project to the Pennsylvania Avenue Widening project 2017-009 and the Pennsylvania Avenue Grade Separation project 2017-012. This project will be revisited in the future when the grade separation project is completed.
Budget
Change
New Budget
$6,750,000
- $5,728,556
$1,021,444
2017-009 — Pennsylvania Avenue Widening: Pennsylvania Avenue Widening is currently under construction using TUMF, Road and Bridge DIF, Traffic Signal DIF, and general funds. City staff is requesting additional funds to complete construction and prevent any delays in construction. This project is Priority Level 3, Target #2 Goals in the 2023 Strategic Plan.
Budget
Change
New Budget
$11,392,600
$1,300,000
$12,692,600
2017-012 — Pennsylvania Avenue/ UPRR Grade Separation: Pennsylvania Avenue/ UPRR Grade Separation construction phase is underfunded. City staff is recommending reallocating unused funds from Pennsylvania Avenue/ Ramp Additions 2017-001 Road and Bridge DIF to this project. This project is Priority Level 1, Target #2 Goals in the 2023 Strategic Plan.
Budget
Change
New Budget
$4,250,000
$4,428,556
$8,678,556
2017-028 — Fire Station No. 106: Fire Station No 106 established a 10% contingency when the project was awarded for construction on August 2, 2022; however, inflation has significantly reduced the buying power of the contingency. The project currently has approximately $130,000 left in original contingency.
The project encountered a construction cost increase due to a requirement by Beaumont Cherry Valley Water District to change the point of connection to the existing waterline. City staff is recommending increasing the budget to allow for additional contingency to complete the project without delay from Fire Station DIF.
Budget
Change
New Budget
$8,649,999
$300,000
$8,949,999
CF -104 — City Hall Renovations: The project is currently under construction using Basic Service DIF, ISF and SLFRF funds. The construction contract was awarded on March 21, 2023, for $2,498,483 with an additional $209,549 in construction contingencies.
City staff is requesting additional construction contingencies in the amount of $175,000 to complete construction. Additional Basic Services DIF funds are needed due to unanticipated existing conditions encountered during construction that resulted in construction changes, including upgraded corridor walls to meet fire codes and additional sections of new roofing. Construction is anticipated to be completed by the end of the year.
Budget
Change
New Budget
$3,318,387
$175,000
$3,493,387
ISFB 08 - Smart Irrigation Timer Project: The ISFB 09 Smart Irrigation Timer Project was created to address the aging infrastructure in the Parks and on Palm Islands. This project will replace analog timers with digital irrigation timers that are web based and app controlled. This project will allow for the reduction of water by the weather tracking app that measures rain and through sensors in the park will adjust watering times based on moisture in the soil.
Staff have received quotes from vendors and has decided to pursue Smart Rain Technologies and proceed with their irrigation timers and control mechanisms. The quote for this project is just below $150,000 and would include timers for 14 of our 18 Parks and Palm Islands. Three parks are scheduled for CIP improvement projects and will address irrigation controls in the project (Nicklaus, Palmer, Stewart) and one park that already has a smart timer system (Sports Park).
The request for an increase in funds will allow the project to be completed in one phase rather than having to break the project up. The quote from Smart Rain was $55,000 less than the next competitive bidder and the system has all the features the city needs.
Budget
Change
New Budget
$109,000
$41,000
$150,000
R-12 — Second Street Extension: On April 5, 2023, the City of Beaumont submitted the Project in response to RCTC's Measure A Regional Arterials (MARA) Call for Projects. On June 14, 2023, RCTC approved $1,500,000 in MARA funds for the Project.
City staff are recommending increasing the budget to reflect the RCTC MARA grant.
Budget
Change
New Budget
$3,300,000
$1,500,000
$4,800,000
R-24 — 2023 Citywide Street Rehabilitation and Maintenance: City staff is developing a downtown sidewalk project as part of this project to construct accessible ramps and sidewalks in the downtown and town center areas. The increased budget will increase the project's effectiveness and impact to the community. City staff are recommending increasing the budget to allow for additional areas to be included in the project, eliminating the need for separate projects, and reallocating funds from project R-35.
Part of the request is $500,000 from the General Fund to provide decorative sidewalk in the downtown area. The downtown sidewalk portion will correspond with the downtown street lighting project to enhance the downtown area.
Budget
Change
New Budget
$6,361,090
$582,828
$6,943,918
R-31 — Purchase 12 -Yard Dump Truck: City staff received updated quotes for a 12 - yard dump truck. City staff is recommending increasing the budget to allow the purchase of the dump truck from the General Fund.
Budget
Change
New Budget
$160,000
$40,000
$200,000
R-35 —Citywide Street Improvements 23/24-CDBG: City staff is recommending transferring the available balance of CDBG funds from this project to R-24 and closing this project.
Budget
Change
New Budget
$130,000
$-82,828
$47,172
WW -09 —16" Mesa Force Main Construction: City staff received construction bids on July 11, 2023. The lowest responsive bidder's cost was $3,269,552. Adding construction support and contingency, the required budget is $3,800,000. Therefore, City staff is requesting increasing the budget to allow for the construction of the project with appropriate contingency and construction management services from Wastewater DIF funds.
Budget
Change
New Budget
$2,100,000
$1,700,000
$3,800,000
The Second Amendment to the Prior Year CIP (Attachment C) includes closing the following projects:
Project Number
Project Name
Reason for Closure
PS -08
PD Modular Restroom
Completed
R-11
Citywide Traffic Signal
Upgrade
Completed
R-17
Michigan Storm Drain
Culvert
Completed
R-32
Purchase GPS Survey
Equipment
Completed
R-35
Citywide Street
Improvements 23/24-CDBG
Funds transferred to R-24
T-06
Shop Tools and Lifts
Completed, Close upon
receipt of final
reimbursement.
T-10
Shop Tools/Lifts Phase 2
Completed
Fiscal Impact:
The estimated cost to prepare this staff report is $750. The following table is a summary of the listed project budgets and the respective funding source.
Project
Number
Project Name
Budget
Affected
Funding Source
Budget
$6,750,000
2017-001
Pennsylvania Avenue/
Ramp Additions
Change
-$5,728,556
Road & Bridge DIF
New Budget
$1,021,444
Budget
$11,392,600
2017-009
Pennsylvania Avenue
Widening
Change
$1,300,000
Road & Bridge DIF
New Budget
$12,692,600
Budget
$4,250,000
2017-012
Pennsylvania Avenue/
UPRR Grade Sep
Change
$4,428,556
Road & Bridge DIF
New Budget
$8,678,556
Budget
$8,650,000
2017-028
Fire Station No. 106
Change
$300,000
Fire Protection impact
DIF
New Budget
$8,950,000
CF -104
City Hall Renovation
Budget
$3,318,387
Basic Service DIF
Change
$175,000
New Budget
$3,493,387
Budget
$109,000
ISFB-08 Smart Irrigation Timer Project
Change
$41,000
ISF
New Budget
$150,000
Second Street
R-12 Extension
Budget
Change
$3,300,000
$1,500,000
RCTC
New Budget
$4,800,000
Budget
$6,361,090
R-24 2023 Street Rehab. & Maintenance
Change
$82,828
CDBG
New Budget
$6,443,918
Budget
$6,443,918
R-24 2023 Street Rehab. &
Main
Maintenance
Change
$500,000
General Fund
New Budget
$6,943,918
Budget
$160,000
R-31 Purchase 12 -Yard
Dump Truck
Change
$40,000
General Fund
New Budget
$200,000
Citywide Street Imp.
R-35 Project 23/24-CDBG
Budget
Change
$130,000
-$82,828
CDBG
New Budget
$47,172
Budget
$2,100,000
WW 09 16" Mesa Force Main
Construction
Change
$1,700,000
WW DIF
New Budget
$3,800,000
Budget
$0
R-37 Beaumont Avenue/ I-
10 Interchange Project
Change
$500,000
General Fund
New Budget
$500,000
Budget
$0
F-03 City Hall Accessible
Ramps
Change
$400,000
SLFRF
New Budget
$400,000
The fiscal impact to the General Fund reduces the fund balance contingency by $1,040,000.
Recommended Action:
Hold a Public Hearing, and
Waive the full reading and adopt by title only, "A Resolution of the City Council of the City of Beaumont Amending the Five -Year Capital Improvement Plan for Fiscal Years 2023/2024-2027/2028", and,
Approve budget amendments as outlines in attachment E.
Attachments:
A. CIP Resolution Amendment 2
B. FY 2023/2024-2027/2028 Capital Improvement Plan
C. Prior Year CIP Project List
D. Public Notice
E. Budget Adjustment Form
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BEAUMONT
AMENDING THE FIVE-YEAR CAPITAL IMPROVEMENT PLAN FOR FISCAL YEARS 2023/2024-2027/2028
WHEREAS, on June 06, 2023, the City Council of the City of Beaumont adopted the City's Five Year Capital Improvement Plan for Fiscal Years 2023/2024 through 2027/2028 ("CIP") at a duly noticed public hearing; and
WHEREAS, on July 18, 2023, the City Council of the City of Beaumont amended (Amendment No. 1) the CIP at a duly noticed public hearing; and WHEREAS, the City Council of the City of Beaumont desires to amend CIP, as defined below;
WHEREAS, these specific revisions are detailed in Exhibit "A" attached hereto; and WHEREAS, pursuant to Government Code, section 66002, the City duly gave public notice of the public hearing of the proposed amendments and revisions to the CIP, a copy of which has been on file with the City Clerk Board at least 10 calendar days prior to the City Council's commencement of such public hearing; and
WHEREAS, the City Council desires to revise and amend the Capital Improvement Plan as set forth herein;
NOW, THEREFORE BE IT RESOLVED BY THE BEAUMONT CITY COUNCIL AS FOLLOWS:
Section 1. The City Council hereby approves and amends the Capital Improvement Plan for Fiscal Years 2023/2024 through 2027/2028, a copy of which is attached hereto as Exhibit "A" and made a part hereof by this reference.
Section 2. The Capital Improvement Plan may be updated by the City Council from time to time pursuant to California Government Code, section 66002, or as otherwise provided by law.
Section 3. This Resolution shall take effect immediately upon its passage and adoption.
MOVED, PASSED, and ADOPTED this 17th day of October, 2023, by the following vote:
AYES:
NOES:
1
ABSTAIN:
ABSENT:
By:
Julio Martinez III, Mayor
City of Beaumont
ATTEST:
By:
Nicole Wheelwright
Deputy City Clerk
2
EXHIBIT A
SUMMARY OF 2023/2024 — 2027/2028 CIP BUDGET AMENDMENT
3
City of Beaumont
Current Year CIP Projects 2024-2028
Basic Service DIF
Project Number
Project Name
FY2024
FY2025
FY2026
FY2027
FY2028
Total
CF -104
City Hall Renovation
$175,000
$175,000
Total
$175,000
$0
$0
$0
$0
$175,000
CDBG
Project Number
Project Name
FY2024
FY2025
FY2026
FY2027
FY2028
Total
R-24
R 35
2023 Citywide Street Rehabilitation & Maintenance
Citywide Street Improvements 23/24 CDBG
$82,828
$47,172
$82,828
$47,172
Citywide Street Improvements 24/25 - CDBG
Citywide Street Improvements 25/26- CDBG
Citywide Street Improvements 26/27- CDBG
Citywide Street Improvements 27/28- CDBG
$130,000
$130,000
$130,000
$130,000
$130,000
$130,000
$130,000
$130,000
Total
$130,000
$130,000
$130,000
$130,000
$130,000
$650,000
CFD - 255
Project Number
Project Name
FY2024
FY2025
FY2026
FY2027
FY2028
Total
P-20
P-21
Playgrounds With Shade - Phase 3
Citywide Parks Infrastructure Improvement Project
$250,000
$300,000
$250,000
$300,000
Total
$0
$550,000
$0
$0
$0
$550,000
CFD - 510
Project Number
Project Name
FY2024
FY2025
FY2026
FY2027
FY2028
Total
PS -07
P-18
P-19
New Police Station Design
Palmer Park Dog Park
Sports Park Facility Improvement/Restroom/Snack Bar
$1,500,000
$1,000,000
$300,000
$1,500,000
$1,000,000
$300,000
Total
$2,800,000
$0
$0
$0
$0
$2,800,000
Fire Protection Impact DIF
Project Number
Project Name
FY2024
FY2025
FY2026
FY2027
FY2028
Total
2017-028
Fire Station No. 106
$300,000
$300,000
Total
$300,000
$0
$0
$0
$0
$300,000
General Fund
Project Number
Project Name
FY2024
FY2025
FY2026
FY2027
FY2028
Total
2016-003
2017-012
P-22
P-23
PS -04
PS -09
Potrero Interchange- Phase 1 & 2
Pennsylvania Ave/UPR Grade Separation
Modular Pump Track at the CRC
Overflow Parking Lot Lighting at the CRC
Public Safety Radio System Upgrade
New Police Station Construction
$1,000,000
$1,000,000
$55,000
$224,400
$344,479
$1,000,000
$1,000,000
$1,000,000
$55,000
$224,400
$344,479
$1,000,000
R-24
2023 Citywide Street Rehabilitation & Maintenance
$500,000
$500,000
R-25
3rd Street to California Ave Storm Drain
$650,000
$650,000
R-26
R-27
R-28
R-29
R-30
Pavement Management Study
Purchase Skid Steer Grader Attachment
Purchase Jet/Vactor Truck
Purchase Tandem Vibratory Roller
Purchase Thermoplastic Equipment
$250,000
$40,000
$430,000
$58,000
$195,000
$250,000
$40,000
$430,000
$58,000
$195,000
R-31
R 32
Purchase 12 -Yard Dump Truck
Purchase GPS Survey Equipment
$200,000
X000
$200,000
$77,000
R-33
R-36
6th Street & Palm Storm Drain
Annual Citywide Street Rehabilitation and Maintenance 23/24 Annual Citywide Street Rehabilitation and Maintenance 24/25 Annual Citywide Street Rehabilitation and Maintenance 25/26 Annual Citywide Street Rehabilitation and Maintenance 26/27 Annual Citywide Street Rehabilitation and Maintenance 27/28 $113,000
$925,200
$943,800
$962,400
$981,600
$1,422,000
$113,000
$925,200
$943,800
$962,400
$981,600
$1,422,000
R-37
Beaumont Avenue/I-10 Interchange Project
$500,000
$500,000
Total
$7,562,079
$943,800
$962,400
$981,600
$1,422,000
$11,871,879
Internal Service Fund
Project Number
Project Name
FY2024
FY2025
FY2026
FY2027
FY2028
Total
F-02
CRC Improvement Project
$150,000
$150,000
ISFB-09
Smart Irrigation Timer Project
$41,000
$41,000
ISFB-12
ISFB-13
ISFB-14
ISFB-15
City Hall Gym Renovation
Fire Station 66 Plumbing System Improvement Project
Fire Station 66 Apparatus Bay Improvements
Public Facilities Parking Lot Rehab Project
$120,000
$108,000
$162,000
$200,000
$120,000
$108,000
$162,000
$200,000
Total
$781,000
$0
$0
$0
$0
$781,000
Measure A
Project Number
Project Name
FY2024
FY2025
FY2026
FY2027
FY2028
Total
R-36
Annual Citywide Street Rehabilitation and Maintenance 23/24 Annual Citywide Street Rehabilitation and Maintenance 24/25 Annual Citywide Street Rehabilitation and Maintenance 25/26 Annual Citywide Street Rehabilitation and Maintenance 26/27 Annual Citywide Street Rehabilitation and Maintenance 27/28 $616,800
$629,200
$641,600
$654,400
$948,000
$616,800
$629,200
$641,600
$654,400
$948,000
Total
$616,800
$629,200
$641,600
$654,400
$948,000
$3,490,000
RCTC
Project Number
Project Name
FY2024
FY2025
FY2026
FY2027
FY2028
Total
2016-003
Potrero Interchange- Phase 1 & 2
$8,000,000
$8,000,000
R-12
2nd St. Extension Construction
$1,500,000
$1,500,000
Total
$9,500,000
$0
$0
$0
$0
$9,500,000
Recycle Water DIF
Project Number
Project Name
FY2024
FY2025
FY2026
FY2027
FY2028
Total
WW -14
Recycled Water Study
$2,100,000
$2,100,000
Total
$2,100,000
$0
$0
$0
$0
$2,100,000
Road and Bridge DIF
Project Number
Project Name
FY2024
FY2025
FY2026
FY2027
FY2028
Total
2017-009
2017-012
Pennsylvania Widening
Pennsylvania Ave/UPR Grade Separation
$1,720,000
$4,428,556
$1,720,000
$4,428,556
R-12
2nd St. Extension Construction
California Grade Separation Design
$1,300,000
$1,450,000
$1,450,000
$1,300,000
$2,900,000
Total $7,448,556
$1,450,000
$1,450,000
$0
$0
$10,348,556
SB1
Project Number
Project Name
FY2024
FY2025
FY2026
FY2027
FY2028
Total
R-36
Annual Citywide Street Rehabilitation and Maintenance 23/24 Annual Citywide Street Rehabilitation and Maintenance 24/25 Annual Citywide Street Rehabilitation and Maintenance 25/26 Annual Citywide Street Rehabilitation and Maintenance 26/27 Annual Citywide Street Rehabilitation and Maintenance 27/28 $900,840
$898,837
$908,101
$916,000
$1,530,000
$900,840
$898,837
$908,101
$916,000
$1,530,000
Total $900,840
$898,837
$908,101
$916,000
$1,530,000
$5,153,778
State and Local Fiscal Recovery Funds
Project Number
Project Name
FY2024
FY2025
FY2026
FY2027
FY2028
Total
F-03
City Hall Accessible Ramps
$400,000
$400,000
WW -11
Beaumont Mesa Lift Station Construction
$2,300,000
$2,300,000
Total $2,700,000
$0
$0
$0
$0
$2,700,000
TCEP Grant
Project Number
Project Name
FY2024
FY2025
FY2026
FY2027
FY2028
Total
2016-003
Potrero Interchange- Phase 1 & 2
$33,500,000
$33,500,000
Total $33,500,000
$0
$0
$0
$0
$33,500,000
Traffic Signal DIF
Project Number
Project Name
FY2024
FY2025
FY2026
FY2027
FY2028
Total
R-34
Citywide Traffic Signal Upgrade & Capacity Improvement FY 23/24 Citywide Traffic Signal Upgrade & Capacity Improvement FY24/25 $150,000
$150,000
$150,000
$150,000
Total $150,000
$150,000
$0
$0
$0
$300,000
Transit
Project Number
Project Name
FY2024
FY2025
FY2026
FY2027
FY2028
Total
T-17
T-18
T-19
T-20
T-21
Bus Stop Amenities and Improvements. 24-04
Bus Stop Placement Improvement Plan. 24-03
4th & Veile Construction 24-05
Shop Support Vehicle Replacements 24-02
7 CNG EZ Rider II Replacement Vehicles 24-01
$60,000
$40,000
$4,050,833
$120,000
$6,350,000
$60,000
$40,000
$4,050,833
$120,000
$6,350,000
Total $10,620,833
$0
$0
$0
$0
$10,620,833
WRCOG
Project Number
Project Name FY2024
FY2025
FY2026
FY2027
FY2028
Total
2016-003
Potrero Interchange- Phase 1 & 2 $3,250,000
$3,250,000
Total $3,250,000
$0
$0
$0
$0
$3,250,000
WW Repair and Replace
Project Number
Project Name FY2024
FY2025
FY2026
FY2027
FY2028
Total
Apron Lane Pipeline Replacement
Edgar Ave Pipeline Replacement
I&I Rehabilitation Project - Phase 3
Lift Station Condition
On -going Pipeline Replacement Program
RO Module Replacement
Sewer Bridge Coating/Inspection
UV Bulb Replacement
Vactor Truck
$275,000
$590,000
$200,000
$400,000
$500,000
$50,000
$150,000
$400,000
$500,000
$300,000
$400,000
$600,000
$700,000
$400,000
$600,000
$275,000
$590,000
$200,000
$1,600,000
$2,200,000
$300,000
$50,000
$150,000
$700,000
Total $0
$2,165,000
$1,200,000
$1,700,000
$1,000,000
$6,065,000
Wastewater
Project Number
Project Name FY2024
FY2025
FY2026
FY2027
FY2028
Total
WW -12
WW -13
Huber 4MM Coarse Screen Retrofit $50,000
RovverX Main Line Inspection System on 2023 Ford Transit T350 HR RWD with Studio Build Out $230,440 Crane Truck
Office Expansion
$500,000
$300,000
$50,000
$230,440
$300,000
$500,000
Total $280,440
$0
$500,000
$0
$300,000
$1,080,440
Wastewater DIF
Project Number
Project Name FY2024
FY2025
FY2026
FY2027
FY2028
Total
WW -09
16" Mesa Force Main Construction $1,800,000
$1,800,000
WW -11
Beaumont Mesa Lift Station Construction $2,600,000
$2,600,000
Total $4,400,000
$0
$0
$0
$0
$4,400,000
Total Five-year CIP $87,040,548.00
$6,916,837.00
$5,792,101.00
$4,382,000.001
$5,330,000.00
$109,461,486.00
LEGEND
Streets/ Roads R
Parks P
Public Safety PS
Community Developmer CD
Transit T
Wastewater WW
Facilities F
Internal Service Fund - B ISFB
Internal Service Fund - V ISFWW
=Indicates changes made associated with Amendment 2
City of Beaumont
Prior Year CIP Projects 2016-2023
Project #
Project Name
Budget Allocation
Status
Estimated Complete
Funding Source
104
CF104 City Hall and BLDG B
$ 3,318,387
Construction
Estimated complete 12/31/23 _
Basic Services DIF, SLFRF, ISFB
2016-003
Potrero Interchange- Phase 1 & 2
$ 28,174,764
Phase 1 Complete, Phase 2
Seeking Funds, in design
Grants/ Developer Contributions
2017-001
Pennsylvania Avenue/Ramp Additions
$ 1,021,444
Paused
Road & Bridge DIF
2017-005
WWTP Exp PH 1 & Advanced R
$ 76,334,187
Construction
Estimated complete 12/31/23
Bonds, WW DIF, Recycled Water DIF, CFD
2017-006
Brine Pipeline to San Bernardino
$ 40,572,639
Construction
Estimated complete 9/30/23
Bonds, WW DIF, Recycled Water DIF, CFD
2017-009
Pennsylvania Widening
$ 11,172,000
Construction
Estimated complete 10/31/23
TUMF, Road & Bridge DIF
2017-012
Pennsylvania Ave/UPR Grade Separation
$ 3,250,000
Design
Spring 2023
Railroad DIF
2017-027
Oak Valley/I-10 Interchange Design
$ 7,000,000
Ready to Bid for design
Fall 2026
TUMF, Grants
2017-028
Fire Station No. 106
$ 8,649,999
Construction
Estimated complete 12/30/23
Fire Station DIF, General Fund, Bonds
2019-009
2nd Street Extension Feasibility / Design
$ 200,000
Completed
Outstanding invoices
Road & Bridge
2019-010
PLC Upgrade Construction
$ 700,000
Construction
Estimated Complete 11/30/23
WW Funds, CFD
2019-012
WQMP & WWTP Permit
$ 50,000
In process
WW Funds
2019-019
Beaumont Master Drainage Plan - Line 2 Stage 1
$ 5,000,000
Design
Estimated Complete 5/31/24
Grant
CD -02
Leap Grant - Housing Element Update
$ 150,000
In process
Estimated Complete 12/31/23
Grant
CD -03
Downtown Revitalization/Grace Bldg/Real Estate Acquisition $ 5,000,000
In process
GF
CD -04
Zoning code update and citywide design guidelines
$ 350,000
Out to Bid
Award in July 2023
GF
CD -05
Climate Action Plan
$ 350,000
In Process
GF
R-01
Oak Valley Pkwy Expansion 110 -Desert Lawn Phase 2
$ 600,000
Preliminary Research
On Hold until WRCOG approval
Road & Bridge DIF
R-02
Citywide Traffic Signal Upgrade & Capacity Improvement Phase 1 $ 150,000
Construction
Beaumont & 6th
Traffic Signal DIF
R-07
Cherry Channel Drainage Project (cougar to OV parkway)
$ 750,000
Design
Award Design in December 2023
General Fund
R-11
Citywide Traffic Signal Upgrade & Capacity Improvement Phase 2 $ 150,000
Completed
Outstanding invoices
Traffic Signal DIF
R-12
2nd Street Extension Construction
$ 2,000,000
Permitting
Estimated completion June 2025
Road & Bridge DIF
R-13
Citywide Traffic Signal Upgrade & Capacity Improvement Phase 3 $ 274,400
In construction
March 2024
Traffic Signal DIF
{t 17
Michigan Ave Storm Drain Culvert Crossing
$ 30,200
Completed
Estimated July 2023
GE
complete
R-19
Downtown Street Light Replacement
$ 1,000,000
ON HOLD
GF
R-20
City -Wide Monument Program (Street & Parks)
$ 2,000,000
GF
R-21
6th Street Medians
$ 2,000,000
RFP Development
RFP estimated complete Nov 2023
GF
R-22
Public Works Corp Yard
$ 1,000,000
GF
R-23
City -Wide Traffic Analysis
$ 250,000
Developing Scope
RFP ready in Novemer 2023
GF
R-24
2023 Citywide Street Rehabilitation & Maintenance
$ 6,361,090
Ready to Bid
Estimated RFB for construction July 2023
Measure A, CDBG, SB1
P-04
Sports Park Field Lighting and Field Expansion
$ 6,319,884
Design
under design
Regional Park DIF
P-05
Nicklaus Park Field Lighting and Field Expansion
$ 2,849,000
RFP Development
Jun -24
Regional Park DIF, Neighborhood DIF
P-09
Playgrounds & Shade Covers - Phase 1
$ 500,000
Equipment purchased
CFD
P-10
Stewart Park Redevelopment and Skate Park
$ 8,024,853
Design- Phased
Begin Construction Sping 2024
CFD, General Fund, community Park DIF
P-13
Three Rings Ranch Park Improvements
$ 192,743
Final State Inspection Pending
Grant
P-14
Memorial Park Plaza
$ 1,750,000
RFP Development
Ready to Bid October 2023
GF
P-15
Memorial Park Plaza Cameras
$ 50,000
RFP Development
Ready to Bid October 2023
GF
P-16
Shadow Creek Park Playground Rehab
$ 450,000
Equipment installed
Estimated complete October 2023
CFD
P-17
Master Park Plan - Citywide
$ 250,000
Design- In process
Fall 2024
CFD
PS -02
Police Station Renovations
$ 425,000
Construction- Fence
Estimated complete October 2023
CFD
PS -03
Fire Station Renovations
$ 250,000
Construction
Ongoing
CFD
PS -04
Public Safety Radio System Upgrade
$ 1,497,857
In process
General Fund, Grants, Public Safety CFD
PS -05
Fire Truck Purchase
$
2,490,000
Ordered
Grant SLFRF, GF
PS -06
Building C Renovation
$
750,000
PS DIF
PS -07
New Police Station Design
$
2,097,372
Preliminary Research
PS DIF, CFD
PS 08
PD Rcstroom Modular
$
150,000
Completed
Compltcd
CFD
T-04
Shop Building Maintenance
$
50,000
In Process
Pending Design and Bid/Quote
Transit Grants
T-05
Bus Wraps/ Brand Logo Update- Phase 1
$
155,741
In process
Pending Bid/Quote
Transit Grants
T 06
Shop Tools Lift;
$
41,590
Completed
Upon final
Transit Grants
and
rcccipt of reimbursement
T-07
Vehicle Replacements - Phase 1
$
1,400,000
Equipment purchased
Expecting Delivery Winter 2023/2024
Transit Grants
T-08
Fleet Video Cameras
$
140,000
In Process
Estimated Completion of January 2024
Transit Grants
T 10
Shop Tools Lifts Phase 2
$
60,000
Completed
Close
Transit Grants
and
T-12
2 -Electric Support Vehicles
$
80,000
Vehicles Received
Estimated Completion of December 2023
Transit Grants
T-13
Shop Truck
$
150,000
Vehicle Received
Estimated Completion of December 2023
T-14
Microtransit Feasability Analysis
$
100,000
On Hold
Exploring Joint COA with Banning Connect
Transit Grants
T-15
2-EZ Rider II Buses
$
1,700,000
Equipment purchased
Expecting Delivery in April 2024
Transit Grants
WW -01
l&I Rehabilitation Project - Phase 1
$
200,000
In process
Wastewater
WW -02
I&I Rehabilitation Project - Phase 2 - Flow Meters
$
200,000
In process
Wastewater
WW -03
Wastewater Rate Study
$
200,000
Completed
Wastewater
WW -04
16" Mesa Force Main and Pump Replacement Design
$
450,000
Design
Wastewater DIF
WW -05
Mesa Lift Station - Wet Well Capacity Increase Design
$
400,000
Design
State & Local Fiscal Recovery Funds Program
WW -06
4th Street Manhole Replacement
$
200,000
Getting Quotes
Wastewater
WW -07
Oak Valley Lift Station Access Point
$
210,000
Preliminary Research
Wastewater
WW -08
Vactor Dump Station
$
450,000
Out to Bid
Wastewater
WW -09
16" Mesa Force Main Construction
$
2,000,000
Ready to Award
Estimated completion 5/2024
Wastewater
WW -10
Mesa Lift Station Pump Capacity Enhancement Construction $
-
Combine with WW -11
Wastewater
WW -11
Mesa Lift Station - Construction
$
1,750,000
Ready to Bid
Estimated RFB November 2023
Wastewater
ISFB-01
City Hall Roofing
$
20,100
Construction
ISFB
ISFB-02
City Hall Fire System Upgrades - Remodeled Spaces
$
45,749
Construction
ISFB
ISFB-03
City Hall Bathrooms
$
20,249
Construction
ISFB
ISFB-04
City Hall HVACs - Gym and Remodeled Spaces
$
35,249
Construction
ISFB
ISFB-05
Fire Station 66 - HVAC
$
49,399
Completed
ISFB
ISFB-06
Police Station - HVAC
$
157,791
Completed
ISFB
ISFB-07
Police Station - Concrete Walkway Trip Hazards
$
25,000
On HOLD pending the fence
ISFB
ISFB-10
Grace Roof Remove & Replace
$
350,000
On hold pedning demo
ISFB
ISFB-11
VFW Re -Roof
$
175,000
Construction
Start Construction October 2023
ISFB
ISFWW-01
Lift Station Spare Pump Program
$
300,000
Equipment purchased
WWISFB
ISFWW-02
VFD
$
250,000
Equipment purchased
WWISFB
= Indicates changes made associated with Amendment 2
THE PRESS -ENTERPRISE
KEEP YOUR EYES ON THE 'PRISE
pe.com
3512 14 Street
Riverside, California 92501
(951) 368-9229
[email protected]
City of Beaumont
550 E. 6th Street
Beaumont, California 92223
Account Number:
Ad Order Number:
Customer's Reference/PO Number:
Publication:
Publication Dates:
Total Amount:
Payment Amount:
Amount Due:
Notice ID:
Invoice Text:
5209298
0011627373
The Press -Enterprise
10/06/2023
$168.28
$0.00
$168.28
OVpcsikPJA4rv760Pg9s
NOTICE IS HEREBY GIVEN that the City of Beaumont will conduct a Public Hearing for revisions to the approved Capital Improvement Project Plan for FYs 2024-2028 and Prior -Year CIP List. On Oct 17, 2023, at approximately 6:00 p.m. at the City of Beaumont Council meeting, to be held at the City of Beaumont Civic Center, 550 E 6th Street, Beaumont, Ca 92223, the Council will conduct a public hearing to receive testimony and comments from all interested persons. Public comments can be made using the public comment phone line or by written email. Phone-in comments will be accepted by calling the designated public comment phone line (951) 922-4845 prior to the corresponding item. Public comments shall not exceed three minutes unless otherwise authorized by City Council. Written comments can be emailed to [email protected] Public comments accepted via email will be read aloud during the corresponding item of the meeting. Comments can be submitted anytime prior to the meeting as well as during the meeting until the end of the corresponding item. This meeting will be conducted utilizing teleconference communications and will be recorded for live streaming. All City of Beaumont public meetings will be made available via live streaming and made available on the City's official YouTube webpage. Please use the following link during the meeting for live stream access:
BeaumontCa.gov/Livestream Dated: October 3, 2023
CIP Amendment Oct 2023 - Page 1 of 1
THE PRESS -ENTERPRISE
KEEP YOUR EYES ON THE 'PRISE
Signature
The Press -Enterprise
3512 14 Street
Riverside, California 92501
(951) 368-9229
City of Beaumont
550 E. 6th Street
Beaumont, California 92223
Publication: The Press -Enterprise
PROOF OF PUBLICATION OF
Ad Desc: 0011627373
FILE NO. 0011627373
PROOF OF PUBLICATION
I am a citizen of the United States. I
am over the age of eighteen years and
not party to or interested in the above -
entitled matter. I am an authorized
representative of THE PRESS -
ENTERPRISE, a newspaper of general
circulation, printed and published daily
in the County of Riverside, and which
newspaper has been adjudicated a
newspaper of general circulation by the
Superior Court of the County of
Riverside, State of California, under
date of April 25, 1952, Case Number
54446, under date of March 29, 1957,
Case Number 65673, under date of
August 25, 1995, Case Number
267864, and under date of September
16, 2013, Case Number RIC 1309013;
that the notice, of which the annexed is
a printed copy, has been published in
said newspaper in accordance with the
instructions of the person(s) requesting
publication, and not in any supplement
thereof on the following dates, to wit:
1010612023
I certify (or declare) under the penalty
of perjury that the foregoing is true and
correct.
Date: October 6, 2023.
At: Riverside, California
NOTICE IS HEREBY GIVEN that the Clty of Beaumont will conduct a Public Hearing for revisions to the approved Capital Improvement Prolect Plan for FYs 2024-2028 and Prior -Year C I P List.
On Oct 17, 2023, at approximately 6:00 p.m. at the Clty of Beaumont Council meeting, to be held at the City of Beaumont Civic Center, 550 E 6th Street, Beaumont, Ca 92223, the Council will conduct a public hearing to receive testimony and comments from all Interested persons. Public comments can be made using the public comment phone line or by written email. Phone-in comments will be accepted by calling the designated public comment phone line (951) 922- 4845 prior to the corresponding Item. Public comments shall not exceed three minutes unless otherwise authorized by Clty Council.
Written comments can be emalled to [email protected] Public comments accepted via email will be read aloud during the corresponding item of the meeting. Comments can be submitted anytime prior to the meeting as well as during the meeting until the end of the corresponding item.
This meeting will be conducted utilizing teleconference communications and will be recorded for live streaming. All Clty of Beaumont public meetings will be made available via live streaming and made available on the City's official YouTube webpage. Please use the following link during the meeting for live stream access:
BeaumontCa.gov/Llvestream
Dated: October 3, 2023
The Press -Enterprise
Published: 10/6/23
CIP Amendment Oct 2023 - Page 1 of 1
Attachment 8
DATE:
City of Beaumont
Budget Adjustment Form
FY 2023/2024
10/17/2023
DEPARTMENT NAME: Finance
PREPARED BY: Tara Chamberlin
APPROVED BY
`Account Number for Exam PI
only
R_ (Credit)
Expense = Debit
B = (Credit)
Expense = Debit
Debit (Credit)
ACCOUNT NUMBER
ACCOUNT DESCRIPTION
CURRENT BUDGET
ADJUSTMENT
NEW BUDGET AMT
Explanations /Justification
100-0000-9960-0000
Transfer Out
5,562,079.00
500,000.00
6,062,07900
From General Fund
500-0000-9950-0000 R-
37-7
Transfer In
(52,955,320.00)
(s00,000.00)
(53,455,320.00)
Transfer In for new project NR -37 Beaumont Ave/I-10 Interchange WO -0000-7068-0000
R -37A
Contractual Services
10,485,387.00
500,000.00
10,985,387.00
Funding for new Prole R-37 Beaumont Ave/I-10 Interchange WO -0000-4455-0000
F -03G
Federal Grants
-
(400,000.00)
(400,000.00)
RN County SURF Funds for new project F-03 City Hall ADA Accessible Ramps WO -0000-8030-0000
F -03A
Infrastructure Improvement
84,287,093.00
400,000.00
84,687,093.00
RN County SURF Funds for new project F-03 City Hall ADA Accessible Ramps 500-000-9950-0000
Reduce funding from Road and midge cif Morn2017-001 and divert to 2017-009 and 2017-0017
Transfer In
(52,955,320.00)
5,728,55600
(47,226,764.00)
20]7012
WO -0000-8030-0000
2017-001B
Infrastructure Improvement
84,287,093.00
(5,728,556.001
78,558,537.00
Decrease p eto 2017-001
500-000-9950-0000
2017-009-T1
Transfer In
(52,955,320.00)
(1,300,000.00)
(54,255,320.00)
Reallocating Road and Bridge Dif funds tarn 2017-001 t02017-029 500-0000-8030-0000
Increase expense to 2077-009 (really a wash wet removing expense above) - Overall 2017-009B
Infrastructure Improvement
84,287,093.00
1,300,00000
85,587,093.00
this was a funding source change
500-000-9950-0000
2017-012-T
Transfer In
(52,955,320.00)
(4,428,556.00)
(57,383,876.00)
Reallocating Road and Bridge Dif funds from 2017-001 t02017-012 500-0000-8030-0000
017-012B
Infrastructure Improvement
84,287,093.00
4,428,556.00
88,715,649.00
Increase expense to proje. 2017-012
560-0000-9960-0000
Transfers Out
4,100,000.00
300,000.00
4,400,000.00
From Fire Station Dif
500-0000-9950-0000
2017-028-T
Transfers In
(52,955,320.00)
(300,000.001
(53,255,320.00)
Increase Fire Station Dif for project 2017-028 increase 500-0000-8030-0000
2017-028-8
Infrastructure Improvement
84,287,093.00
300,000.00
84,587,093.00
Increase project p efor 2017-028
552-0000-9960-0000
Transfers Out
523,664.00
175,000.00
698,664.00
From Basic Services Dif
500-0000-9950-0000
CF1O4-%
Transfers In
(52,955,320.00)
(175,000.00(
(53,130,320.00)
Increase General fund for project 0=104 increase
500-0000-8030-0000
CF104-B
Infrastructure Improvement
84,287,093.00
175,000.00
84,462,093.00
Increase project p efor Cf-104
600-5000-7072-0000 15Fg-
08-A
Facility Replacement Expense
4,785,897.00
41,000.00
4,826,897.00
Increase project p efor OF8-0,9
500-0000-4460-0000
R-12-72
Grants
(52,802,584.00)
(1,500,000.00)
(54,302,584.00)
increase funding for project R-12 Man RCM's A4ARA
500-0000-8030-0000
R -12-A
Infrastructure Improvement
84,287,093.00
1,500,000.00
85,787,093.00
Increase project p efor R-72
100-0000-9960-0000
Transfer Out
5,562,079.00
500,000.00
6,062,079.00
From General fund
50b000699500c00 11-
24-T3
Transfer In
(52,955,320.00)
(500,000.00)
(53,455,320.00)
Increase General Fund for proje0 R-24
500-0000-8030-0000 11-
24-0
Infrastructure Improvement
84,287,093.00
500,000.00
84,787,093.00
Increase Project expensefor R-24
215-0000-9960-0000
Transfer Out
3,248,303.00
82,828.00
3,331,131.00
From COW
500-0000-9950-0000
R-24-72
Transfersln
(52,955,320.00)
(82,828.001
(53,038,148.00)
Increase Co. for project R-24 increase from R-35
500-0000-8030-0000
R -20C
Infrastructure Improvement
84,287,093.00
82,828.00
84,369,921.00
Increase project p efor R-24 from R-35
100-3100-8060-0000
R -31-A
Vehicles
640,000.00
40,000.00
680,000.00
Increase costs to12-yard dump truck
215-0000-9960-0000
Transfers Out
3,248,303.00
(130,000.001
3,118,303.00
Partial amount moved to R-24 and remaining to close
500-0000-9950-0000
R-35-7
Transfers In
(52,955,320.00)
130,000.00
(52,825,320.00)
Close project and move funds from R-35 to R-24
500-OOR-35-A -0000
Infrastructure Improvement
84,287,093.00
(130,000.001
84,157,093.00
Decrease project expense antld project R-35
705-0000-9960-0000
Transfer WI
7,735,221.00
1,700,000.00
9,435,221.00
Increase funding fromWW DM to Project.,WW-09
710-0000-9950-000
WW -09-7
Transfers In
(22,577,012.00)
(1,700,000.00)
(24,277,012.00)
Increase funding from WWDIF to Projects WW -09
710-0000-8030-000
WW -09-A
Capital Improvement
15,216,451.00
1,700,000.00
16,916,451.00
Increase funding fromWW DIF to Project sWW-09
100-0000-7900-0000
Fund Balance Contingency
4,715,794.00
(1,040,000.00)
3,675,794.00
Reduce General Fund Balance Contingenry allocation to proj $ 2,168,828.00
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BEAUMONT
- C !� 1 1 0 R "1 A
Staff Report
TO: City Council
FROM: Robert Vestal, Interim Public Works Director
DATE October 17, 2023
SUBJECT: Funding Agreement with the County of Riverside for the Beaumont City Hall Improvements Project
Description Funding Agreement for City of Beaumont City Hall Improvements Project (Agreement) for City Hall Accessible Ramps, Capital Improvement Plan (CIP) Project F- 03 (Project), between County of Riverside and the City of Beaumont.
Background and Analysis:
On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law, amending Section 9901 of Title VI of the Social Security Act which establishes the Coronavirus State and Local Fiscal Recovery Funds (Fiscal Recovery Funds) to provide state, local and Tribal governments with the resources needed to respond to the pandemic and its economic effects and to build a stronger, more equitable economy during the recovery.
On October 4, 2022, by Minute Order 3.44, the Board of Supervisors of the County of Riverside approved the distribution framework of the second allocation of ARPA funds, to support eligible ARPA efforts within Riverside County including but not limited to:
infrastructure (water, sewer, broadband), housing and homelessness, business revitalization, neighborhood revitalization, childcare facilities, and non -profits.
The City of Beaumont submitted a request for $400,000 of ARPA funds to 5th District Supervisor Xystian Gutierrez to construct an accessible entrance ramp at the City of Beaumont City Hall, east and north entrances. Refer to Figure 1 for ramp alignment.
The County is requesting the City Council to approve the agreement prior to the County Board of Supervisors approval on October 31, 2023.
The County of Riverside shall provide funding to the City in a total amount not to exceed $400,000, in quarterly payments in accordance with progress pay estimates submittals, and in compliance with ARPA Guidelines for the completion of the Project.
Therefore, staff is recommending that City Council approve the agreement.
OEXISTNG
a INTWUL GROfYdI
Bsif
2048
S W FVFW
era
UR FSRWO
IlRTIIIIflL MOO
EXISTING BUILDING
(FF=22.06±)
sT
2 FS,IW
AST
L UJ
511 12
1 r T.�1
107. 710 11
1 1 1 1 1 1
1 1 1 1 1 '
1 1 1 1 1 1
�II11
._ FXrsrun
FCC 0000ACE
l°J
J
Figure 1 - Proposed Ramp Reconstruction
Future City Council Items associated with the Project:
• Construction Award
Tentative Project Schedule:
• Final Bid Documents 2/2024
• Begin Construction 6/2024
• Construction Completion 8/2024
Project Update:
The design for the ramp was performed as part of the City Hall Renovation Project (CIP CF -104) and is complete. Development of the specifications and Request for Bids
(RFB) will commence soon and will incorporate the ARPA requirements as part of the advertisement.
Fiscal Impact:
The cost to prepare this staff report is estimated to be $350. There is no cost associated with the approval of the agreement.
Recommended Action:
Approve a Funding Agreement with the County of Riverside for the Beaumont City Hall Improvements Project.
Attachments:
A. Funding Agreement
FUNDING AGREEMENT FOR
CITY OF BEAUMONT CITY HALL IMPROVEMENTS PROJECT
This Funding Agreement ("Agreement") is entered into by and between the County of Riverside, a political subdivision of the State of California, ("County") and the City of Beaumont, ("Subrecipient").
County and Subrecipient are sometimes individually referred to as "Party" and collectively as "Parties."
RECITALS
WHEREAS, on March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law, amending Section 9901 of Title VI of the Social Security Act which establishes the Coronavirus State and Local Fiscal Recovery Funds (Fiscal Recovery Funds) to provide state, local and Tribal governments with the resources needed to respond to the pandemic and its economic effects and to build a stronger, more equitable economy during the recovery; and WHEREAS, to respond to the negative effects of the pandemic, which in turn affect our community as a whole, on October 4, 2022, by Minute Order 3.44, the Board of Supervisors of the County of Riverside approved the distribution framework of the second allocation of ARPA funds, to support eligible ARPA efforts within Riverside County including but not limited to: infrastructure (water, sewer, broadband), housing and homelessness, business revitalization, neighborhood revitalization, childcare facilities, and non -profits; and
WHEREAS, on January 6, 2022, the U.S. Department of the Treasury (U.S. Treasury) adopted a final rule implementing the Fiscal Recovery Funds which took effect on April 1, 2022 (Final Rule); and
WHEREAS, the County desires to reimburse and the Subrecipient desires to accept ARPA Fiscal Recovery Funds in a total amount not to exceed $400,000, for expenditures identified in Attachment A related to the Beaumont City Hall Improvements Project — Additional Construction Scope Items (Project); and
NOW THEREFORE, in consideration of the mutual benefits, covenants, terms and conditions contained herein, the Parties agree as follows:
AGREEMENT
1. Incorporation of Recitals. The Recitals set forth above are incorporated herein and made an operative part of this Agreement.
2. Contract Documents. This Agreement consists of this Agreement and the following attachments, attached hereto and by this reference incorporated herein:
2.1 Attachment A — Project Scope
2.2 Attachment B — U.S. Treasury ARPA Fiscal Recovery Funds Final Rule
2.3 Attachment C — Uniform Administrative Requirements, Cost Principles, Federal Provisions and Audit Requirements for Federal Awards -2 CFR Part 200 et seq
2.4 Attachment D — Indemnification and Insurance Requirements
2.5 Attachment E — Project Monitoring Requirements
2.6 Attachment F — Construction Requirements
1
2.7 Attachment G — Project Detail
3. Project; Scope of Work. Subrecipient shall be responsible for completion of all activities associated with Project design, implementation, installation and construction, as described in Attachment A, on or before December 31, 2026, by first using funds received from the County in the amount provided in Section 4 of this Agreement. The Subrecipient shall also furnish timely reporting and documentation assuring Subrecipient's compliance with the U.S. Treasury ARPA Guidelines (as stated in the Final Rule of the U.S. Depaianient of the Treasury published in the Federal Register on January 27, 2022), and within the timelines and specifications provided in Attachment E. Under the provisions of the Agreement, the County shall bear no responsibility for the Project, including without limitation any activities associated with implementation, installation and construction, or any future operation or maintenance of the Project.
3.1 Project Signage. Subrecipient shall include appropriate acknowledgement of credit to the County for its support when promoting the Project or using any data and/or information developed under this Agreement. Signage shall be posted in a prominent location at the Project site and shall include the U.S. Depaianient of Treasury's, and the County's color logos, along with the following disclosure statement: "Funding for this project has been provided in full or in part from the American Rescue Plan Act, and through an agreement with the County of Riverside." The Recipient shall also include in each of its contracts for work under this Agreement a provision that incorporates the requirements stated within this Paragraph.
4. Funding.
4.1 County shall provide funding to Subrecipient in a total amount not to exceed $400,000 ("Award"), in quarterly payments in accordance with progress pay estimates submittals, and in compliance with ARPA Guidelines as set forth in Attachment B, attached hereto and by this reference incorporated herein, for the completion of the Project. In the event that there is a conflict in the terms for payment in this Agreement and the terms in Attachments B and C, the terms in Attachments B and C shall take precedence. Subrecipient shall provide other non-federal funding at least equal to the amounts shown in Attachment A, attached hereto and by this reference incorporated herein, as a match to the funds provided by the County for the Project.
4.2 Except as expressly provided in Attachment A of this Agreement, Subrecipient shall not be entitled to, nor receive from County any additional funding or other type of remuneration for services rendered under this Agreement. The Award amount described in this Section is specifically for the Project and makes up the entire amount which the County has approved to fund the Project.
Subrecipient shall not be entitled by virtue of this Agreement to consideration in excess of the specified project Award amount, and Subrecipient shall be responsible for any and all costs incurred above the Award amount for its implementation and completion of the Project. Any subsequent amendments to the Project's scope or description are not covered by this Agreement, and the funding for any such amendments or for any Project cost overruns shall be the sole responsibility of Subrecipient, unless otherwise approved in writing by the County.
4.3 Should it be determined at any time by the Subrecipient or the County that the Subrecipient cannot, will not or is unable to complete the Project subject to this Agreement in accordance with the applicable State and Federal requirements and the provisions of this Agreement on or before December 31, 2026, then the subrecipient shall return 100% of the Award amount reimbursed to Subrecipient for the Project as of the date of notification to the County, within thirty (30) days of notification.
4.4 In the event the actual cost for the Project is less than Award, Subrecipient shall refund the difference to County within thirty (30) days of receipt of Certificate of Occupancy for the Project, or by June 30, 2026, whichever occurs first. Subrecipient shall return any reimbursed Award Funds 2
that have not been expended or are not adequately supported by invoices and documentation to the County, within thirty (30) days of completion of the Project, or upon request by the County, whichever occurs first.
5. Invoicing and Billing
5.1 Invoices.
5.1.1 Invoices shall be submitted via e-mail to [email protected]. The final invoice from the Subrecipient will be submitted with enough time for the County to reimburse the Subrecipient prior to December 31, 2026, per the final rule of ARPA.
5.1.2 Supporting documentation shall accompany each invoice: copies of paid receipts and invoices of all Subrecipient Project costs incurred by Subrecipient.
5.1.3 To ensure compliance with Federal and State regulations, County may require additional supporting documentation or clarification of claimed expenses as follows:
5.1.3.1 County Executive Office staff shall notify Subrecipient to obtain necessary additional documentation or clarification.
5.1.3.2 Subrecipient shall respond within three (3) business days with required additional documentation or clarification to avoid disallowances/partial payment of invoice.
5.1.3.3 All invoices containing expenses that need additional documentation or clarification not provided to County within three (3) business days of request shall have those expenses disallowed and only the allowed expenses shall be paid.
5.1.3.4 Subrecipient may resubmit disallowed expenses as a supplemental invoice only and must be accompanied by required documentation.
5.2 Payments
5.2.1 If the conditions set forth in this Agreement are met, County shall pay, on/or before the thirtieth (30th) day after receipt of a complete and accurate invoice, the sum of money claimed by the approved invoice, (less any credit due County for adjustments of prior invoices). If the conditions are not met, County shall pay when the necessary processing is completed and/or proper backup documentation is provided.
5.2.2 County shall not pay for unauthorized costs incurred by Subrecipient or for the claimed work which County monitoring shows have not been provided as authorized.
5.2.3 County retains the right to withhold payment on disputed claims.
6. Term. The Term of this Agreement shall be from the date of approval of this Agreement until receipt of Certificate of Occupancy for the Project, or on December 31, 2026, whichever is sooner, unless sooner terminated as provided herein.
7. Subrecipient Compliance Obligations. The Subrecipient agrees to comply with the terms and conditions of this Agreement. The Subrecipient also agrees to apply the terms and conditions of this Agreement to all of its subcontractors (if applicable) and to require their strict compliance therewith. 3
If it is determined that the Subrecipient is noncompliant, County may temporarily withhold or disallow reimbursement of costs, under 2 C.F.R. Part 200, as supplemented by 2 C.F.R. Part 910.
7.1 Federal Provisions. Subrecipient and all of its subcontractors shall comply with the Uniform Administrative Requirements, Cost Principles, Federal Provisions and Audit Requirements for Federal Awards Provisions contained in Attachment C
8. Contract Representatives.
8.1 County Representative. The County Executive Officer, or designee, shall be the designated representative who shall administer this Agreement on behalf of the County.
8.2 Subrecipient Representative. The City Manager, or designee, shall be the designated representative who shall administer this Agreement on behalf of the Subrecipient.
8.3 The Contract Representatives may be contacted as described in Section 11, below.
9. Records and Audit.
9.1 Subrecipient shall store and maintain all writings, documents and records prepared or compiled in connection with the performance of this Agreement for a minimum of five (5) years from the termination or completion of this Agreement. This includes any handwriting, typewriting, printing, photostatic, photographing and every other means of recording upon any tangible thing, any form of communication or representation including letters, words, pictures, sounds or symbols or any combination thereof. Any authorized representative of County shall have access to any writings as defined above for the purposes of making a report, audit, evaluation, or examination. Further, County has the right at all reasonable times to audit, inspect or otherwise evaluate the work performed or being performed under this Agreement.
9.2 If it is determined pursuant to an audit that any funds provided pursuant to this Agreement have been improperly expended, Subrecipient shall, at the direction of the agency performing the audit, reimburse the County within thirty (30) days the full amount of such improperly expended funds. The funds shall be reimbursed in accordance with the recommendations in the audit.
10. Monitoring of Contract Compliance and Progress Reports.
10.1 Contract Compliance. The Subrecipient shall comply with the monitoring arrangements set forth in Project Monitoring Requirements, and Construction Requirements, attached as Attachments E and F, respectively.
10.2 Project Progress Reports and Progress Pay Estimates. Subrecipient shall, as specified herein, provide quarterly reports detailing the Project's progress, including a financial status report and milestone progress report as described in Attachment E. 1 1. Notices. As used in this Agreement, notice includes but is not limited to the communications of any notice, request, demand, approval, statement, report, acceptance, consent, waiver, and appointment. All notices must be in writing. All such notices from one party to another may be delivered in person, sent via reputable overnight courier, or served by first-class mail, certified or registered, postage prepaid, to each and all of the addresses set forth below.
If to County:
Riverside County Executive Office
Attention: Rania Odenbaugh and Scott Bruckner
4080 Lemon Street, 4th Floor,
Riverside, CA. 92501
4 If to Subrecipient:
City of Beaumont
Attention: Dustin Christensen
550 E. 6th Street
Beaumont, CA 92223
12. Conflicts of Interest. Subrecipient covenants that it presently has no interest, including but not limited to, other projects or independent contracts, and shall not acquire any such interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under this Agreement. Subrecipient further covenants that in the performance of this Agreement, no person having any such interest shall be employed or retained by it under this Agreement. In the event federal funds are used, in whole or in part, for this Project, Subrecipient understands and agrees it must maintain a conflict of interest policy consistent with 2. C.F.R. section 200.318 (c) and that such conflict of interest policy is applicable to each activity funded under this award. Subrecipient must disclose in writing to the U.S. Treasury or through Recipient, as appropriate, any potential conflict of interest affecting the awarded funds in accordance with 2. C.F.R. section 200.12.
13. Nondiscrimination. During any period in which Subrecipient is in receipt of funds from County, Subrecipient and its Board, officers, employees, agents, representatives or subcontractors shall not unlawfully discriminate in violation of any Federal, State or local law, rule or regulation against any employee, applicant for employment or person receiving services under this Agreement because of race, religious creed, color, national origin, ancestry, physical or mental disability including perception of disability, medical condition, genetic information, pregnancy related condition, marital status, gender/sex, sexual orientation, gender identity, gender expression, age (over 40), political affiliation or belief, or military and veteran status. Subrecipient and its officers, employees, agents, representatives or subcontractors shall comply with all applicable Federal, State and local laws and regulations related to non- discrimination and equal opportunity, including without limitation the County's non- discrimination policy; Title VI of the Civil Rights Act of 1964 (42 US.C. sections 2000d et seq.) and U.S. Treasury's implementing regulations at 31 C.F.R. Part 22, which prohibit discrimination on the basis of race, color, or national origin under programs or activities receiving federal financial assistance; The Fair Housing Act, Title VIII of the Civil Rights Act of 1968 (42 U.S.C. sections 3601 et seq.), which prohibits discrimination in housing on the basis of race, color, religion, national origin, sex, familial status, or disability; Section 504 of the Rehabilitation Act of 1973, as amended (42 U.S.C. sections 6101 et seq.), and the U.S. Treasury's implementing regulations at 31 C.F.R. part 23, which prohibit discrimination on the basis of age in programs or activities receiving federal financial assistance; and Title II of the Americans with Disabilities Act of 1990, as amended (42 U.S.C. sections 12101 et seq.)which prohibits discrimination on the basis of disability under programs, activities, and services provided or made available by state and local governments or instrumentalities or agencies thereto; The Fair Employment and Housing Act (Government Code sections 12900 et seq.); California Labor Code sections 1101, and 1102; the Federal Civil Rights Act of 1964 (P.L. 88-352), as amended; and all applicable regulations promulgated in the California Code of Regulations or the Code of Federal Regulations, and Riverside County's non-discrimination policy.
Subrecipient shall include the non-discrimination and compliance provisions of this Section in all subcontracts to perform work under or as a derivative of this Agreement.
14. Indemnification. The Subrecipient shall be bound by the indemnification, hold harmless and defend provisions contained in Attachment D.
15. Insurance. Subrecipient shall obtain, and maintain, or caused to be obtained and maintained, at all times during the Term of this Agreement, insurance coverage in the amounts and coverage specified in Attachment D.
5
16. Termination. The County may terminate this agreement upon a determination that Subrecipient is not complying with ARPA terms and conditions. The County may withhold additional planned distributions of funding to Subrecipient pending receipt of requisite reporting requirements by Subrecipient to the County as described herein.
17. Compliance with Laws. The Subrecipient is required to comply with all applicable federal, state and local laws and regulations for all work performed or funded by and through this Agreement. The Subrecipient is required to obtain all necessary federal, state and local permits, authorizations and approvals for all work performed under this Agreement.
18. Disputes. The parties shall attempt to resolve any disputes amicably at the working level. If that is not successful, the dispute shall be referred to the senior management of the parties. The Subrecipient shall proceed diligently with the Project described in this Agreement pending the resolution of a dispute.
The Parties reserve the right to pursue any remedies at law or in equity should any dispute relating to this Agreement not by resolved by the Parties. Notwithstanding the foregoing, prior to the filing of any legal action related to this Agreement, the Parties shall be obligated to attend a mediation session in Riverside County before a neutral third party mediator. A second mediation session shall be required if the first session is not successful. The parties shall share the cost of the mediations.
19. Status of Subrecipient. The Subrecipient is, for purposes relating to this Agreement, an independent contractor and shall not be deemed an employee of the County. It is expressly understood and agreed that the Subrecipient (including its employees, agents, and subcontractors) shall in no event be entitled to any benefits to which County employees are entitled, including but not limited to overtime, any retirement benefits, worker's compensation benefits, and injury leave or other leave benefits. There shall be no employer -employee relationship between the parties nor is there a joint venture; and Subrecipient shall indemnify and hold County harmless from any and all claims that may be made against County based upon any contention by a third party that an employer -employee relationship exists by reason of this Agreement.
19.1 All acts of Subrecipient and its officers, employees, agents, representatives, subcontractors, and all others acting on behalf of Subrecipient relating to the performance of this Agreement, shall be performed as independent contractors and not as agents, officers, or employees of County. Subrecipient, by virtue of this Agreement, has no authority to bind or incur any obligation on behalf of County. No agent, officer or employee of the County is to be considered an employee of Subrecipient. At all times during the term of this Agreement, the Subrecipient and its officers, employees, agents, representatives, or subcontractors are, and shall represent and conduct themselves as, independent contractors and not employees of County.
19.2 Subrecipient shall determine the method, details, and means of performing the work and services to be provided by Subrecipient under this Agreement. Subrecipient shall be responsible to County only for the requirements and results specified in this Agreement and, except as expressly provided in this Agreement, shall not be subjected to County's control with respect to the physical action or activities of Subrecipient in fulfillment of this Agreement. Subrecipient has control over the manner and means for completion of the Project described in this Agreement. If necessary, Subrecipient has the responsibility for employing or engaging other persons or firms to assist Subrecipient in fulfilling the terms and obligations under this Agreement.
19.3 If in the performance of this Agreement any third persons are employed by Subrecipient, such persons shall be entirely and exclusively under the direction, supervision, and control of 6
Subrecipient. All terms of employment including hours, wages, working conditions, discipline, hiring and discharging or any other term of employment or requirements of law shall be determined by the Subrecipient. It is further understood and agreed that Subrecipient must issue W-2 forms or other forms as required by law for income and employment tax purposes for all Subrecipient's assigned personnel under the terms and conditions of this Agreement.
20. Entire Agreement. This Agreement is the result of negotiations between the Parties. This Agreement is intended by the Parties as a full and final expression of their understanding with respect to the matters contained in this Agreement and shall not be modified in any manner except by an instrument in writing executed by the Parties or their respective successors in interest.
21. Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.
22. Governing Law and Venue. The interpretation and performance of this Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County, California.
23. Construction/Interpretation. Headings or captions to the provisions of this Agreement are solely for the convenience of the Parties, are not part of this Agreement, and shall not be used to interpret or determine the validity of this Agreement. Any ambiguity in this Agreement shall not be construed against the drafter, but rather the terms and provisions hereof shall be given a reasonable interpretation as if both parties had in fact drafted this Agreement.
24. No Waiver. Failure of the Parties to insist upon strict compliance with any of the terms, covenants or conditions hereof shall not be deemed a waiver of such term, covenant or condition, nor shall any waiver or relinquishment of any rights or powers hereunder at any one time or more times be deemed a waiver or relinquishment of such other right or power at any other time or times.
25. No Third -Party Beneficiaries. There are no intended third -party beneficiaries of any right or obligation assumed by the Parties.
26. Severability. It is intended that each paragraph of this Agreement shall be treated as separate and divisible, and in the event that any paragraphs are deemed unenforceable, the remainder shall continue to be in full force and effect so long as the primary purpose of this Agreement is unaffected.
27. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.
28. Use of Electronic (Digital) Signatures. This Agreement may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument.
Each party of this Agreement agrees to the use of electronic signatures, such as digital signatures that meet the requirements of the California Uniform Electronic Transactions Act (("CUETA") Cal. Civ.
Code §§ 1633.1 to 1633.17), for executing this Agreement. The parties further agree that the electronic signatures of the parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record pursuant to the CUETA as amended from time to time. The CUETA authorizes use of an electronic signature for transactions and contracts among parties in California, including a government agency. Digital signature means an electronic identifier, created 7
by computer, intended by the party using it to have the same force and effect as the use of a manual signature, and shall be reasonably relied upon by the parties. For purposes of this section, a digital signature is a type of "electronic signature" as defined in subdivision (i) of Section 1633.2 of the Civil Code
[Signature Provisions on Following Page]
8
28. Authority to Enter Agreement. Each Party to this Agreement warrants to the other that it is duly organized and existing and that it and the respective signatories have full right and authority to enter into and consummate this Agreement and all related documents and bind the parties thereto.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date as indicated beside each Party's signature.
COUNTY:
COUNTY OF RIVERSIDE, a political subdivision
of the State of California
SUBRECIPIENT:
CITY OF BEAUMONT
By: By:
Chair, Board of Supervisors City Manager
ATTEST:
Clerk of the Board
Kimberly Rector
By:
Deputy
(Seal)
APPROVED AS TO FORM
County Counsel
By:
Kristine Bell -Valdez
9
Attachment A — Project Scope
Beaumont City Hall Improvements Project — Additional Construction Scope Items Scope of Work
The Subrecipient will complete all planning, design and procurement necessary to complete the Project. For purposes of this Agreement, the Project shall solely represent the following construction items:
1) ADA Compliance: To meet requirements of California Code of Regulations Title 24 for ADA compliance, Subrecipient will construct new entryway landings and handicap ramps on the north- east side of its City Hall building, as shown in Attachment G of this Agreement.
Project Budget
ITEM
DESCRIPTION
COUNTY OF
RIVERSIDE
ARPA
PROJECT
FUNDING
AMOUNT
(Not to Exceed)
SUBRECIPIENT
NON-FEDERAL
FUNDING
AMOUNT
ESTIMATED
PROJECT COST
1 Planning
$0
$0
$0
2 Design
$0
$15,000
$15,000
3 Spec Review,
Bid/Award
$0
$0
$0
4 Construction
$400,000
$0
$400,000
5 Admin Closeout
$0
$0
$0
TOTAL:
$400,000
$15,000
$415,000
Schedule
ITEM
DESCRIPTION OF SUBMITTAL
ESTIMATED DUE
DATE
1 Planning
Complete
2 Design
Complete
4 Spec Review, Bid/Award
February 2024
5 Construction
June 2024
6 Admin Closeout / Certificate of Occupancy
August 2024
10
Attachment B — U.S. Treasury ARPA Fiscal Recovery Funds Final Rule 11
4338 Federal Register / Vol. 87, No. 18 / Thursday, January 27, 2022 / Rules and Regulations
DEPARTMENT OF THE TREASURY
31 CFR Part 35
RIN 1505-AC77
Coronavirus State and Local Fiscal
Recovery Funds
AGENCY: Department of the Treasury.
ACTION: Final rule.
SUMMARY: The Secretary of the Treasury
(Treasury) is adopting as final the
interim final rule published on May 17,
2021, with amendments. This rule
implements the Coronavirus State Fiscal
Recovery Fund and the Coronavirus
Local Fiscal Recovery Fund established
under the American Rescue Plan Act.
DATES: The provisions in this final rule
are effective April 1, 2022.
FOR FURTHER INFORMATION CONTACT:
Katharine Richards, Director,
Coronavirus State and Local Fiscal
Recovery Funds, Office of Recovery
Programs, Department of the Treasury,
(844) 529-9527.
SUPPLEMENTARY INFORMATION:
I. Introduction
Overview
Since the first case of coronavirus
disease 2019 (COVID-19) was
discovered in the United States in
January 2020, the pandemic has caused
severe, intertwined public health and
economic crises. In March 2021, as
these crises continued, the American
Rescue Plan Act of 2021 (ARPA)1
established the Coronavirus State and
Local Fiscal Recovery Funds (SLFRF) to
provide state, local, and Tribal
governments 2 with the resources
needed to respond to the pandemic and
its economic effects and to build a
stronger, more equitable economy
during the recovery. The U.S.
Department of the Treasury (Treasury)
issued an interim final rule
implementing the SLFRF program on
May 10, 20213 and has since disbursed
over $240 billion to state, local, and
Tribal governments and received over
1,500 public comments on the interim
final rule. Treasury is now issuing this
final rule which responds to public
comments, implements the ARPA
statutory provisions on eligible and
ineligible uses of SLFRF funds, and
1 Public Law 117-2. https://www.congress.gov/
117/plaws/pub12/PLAW-117pub12. pd f.
2 Throughout this Supplementary Information,
Treasury uses "state, local, and Tribal
governments" or "recipients" to refer generally to
governments receiving SLFRF funds; this includes
states, territories, Tribal governments, counties,
metropolitan cities, and nonentitlement units of
local government.
386 FR 26786 (May 17, 2021).
makes several changes to the provisions
of the interim final rule, summarized
below in the section Executive
Summary of Major Changes.
Since Treasury issued the interim
final rule in May 2021, both the public
health and economic situations facing
the country have evolved. 011 the public
health front, the United States has made
tremendous progress in the fight against
COVID-19, including a historic
vaccination campaign that has reached
over 80 percent of adults with at least
one dose and is reaching millions of
children as we11.4 However, the disease
continues to present an imminent threat
to public health, especially among
unvaccinated individuals. As the Delta
variant spread across the country this
summer and fall, the United States faced
another severe wave of cases, deaths,
and strain on the healthcare system,
with the risk of hospitalization and
mortality exponentially greater to
unvaccinated Americans. COVID-19 has
now infected over 50 million and killed
over 800,000 Americans since January
2020; tens of thousands of Americans
continue to be infected each day.5 Even
as the nation recovers, new and
emerging COVID-19 variants may
continue to pose threats to both public
health and the economy. Moving
forward, state, local, and Tribal
governments will continue to play a
major role in responding through
vaccination campaigns, testing, and
other services.
The economic recovery similarly has
made tremendous progress but faces
continued risks from the disease and the
disruptions it has caused. In the early
months of the pandemic, the United
States experienced the sharpest
economic downturn on record, with
unemployment spiking to 14.8 percent
in April 2020.6 The economy has
gradually added back jobs, with growth
accelerating in the first half of 2021.7
However, as the Delta variant spread,
the intensified health risks and renewed
disruptions slowed growth,
demonstrating the continued risks from
the virus. By fall 2021, the economy had
4 Centers for Disease Control and Prevention,
COVID Data Tracker: COVID-19 Vaccinations in the
United States, https://covid.cdc.gov/covid-data-
tracker/#vaccinations (last visited December 31,
2021).
5 Centers for Disease Control and Prevention,
COVID Data Tracker, http://www.covid.cdc.gov/
covid-data-tracker/#datatracker-home (last visited
December 7, 2021).
6 U.S. Bureau of Labor Statistics, Unemployment
Rate [UNRATE], retrieved from FRED, Federal
Reserve Bank of St. Louis; https://fred .
stlouisfed.org/series/UNRATE (last visited
December 7, 2021).
71d.
exceeded its pre -pandemic size 8 and
unemployment had fallen below 5
percent,9 but despite this progress, too
many Americans remain unemployed,
out of the labor force, or unable to pay
their bills, with this pain particularly
acute among lower -income Americans
and communities of color. Again,
moving forward, state, local, and Tribal
governments will remain on the
frontlines of the economic response and
rebuilding a stronger economy in the
aftermath of the pandemic.
However, as state, local, and Tribal
governments continue to face
substantial needs to respond to public
health and economic conditions, they
have also experienced severe impacts
from the pandemic and resulting
recession. State, local, and Tribal
governments cut over 1.5 million jobs in
the early months of the pandemic amid
sharp declines in revenue and remain
over 950,000 jobs below their pre -
pandemic levels.10 As the Great
Recession demonstrated, austerity
among state, local, and Tribal
governments can hamper overall
economic growth and severely curtail
the ability of governments to serve their
constituents.
Recognizing these imperatives, the
SLFRF program provides vital resources
for state, local, and Tribal governments
to respond to the pandemic and its
economic effects and to replace revenue
lost due to the public health emergency,
preventing cuts to government services.
Specifically, the ARPA provides that
SLFRF funds 11 may be used:
(a) To respond to the public health
emergency or its negative economic
impacts, including assistance to
households, small businesses, and
nonprofits, or aid to impacted industries
such as tourism, travel, and hospitality;
(b) To respond to workers performing
essential work during the COVID-19
8 U.S. Bureau of Economic Analysis, Real Gross
Domestic Product [GDPC1], retrieved from FRED,
Federal Reserve Bank of St. Louis, https://fred .
stlouisfed.org/series/GDPC1 (last visited December
7, 2021).
9 U.S. Bureau of Labor Statistics, supra note 6.
19 U.S. Bureau of Labor Statistics, All Employees,
State Government [CES9092000001] and All
Employees, Local Government [CES9093000001],
retrieved from FRED, Federal Reserve Bank of St.
Louis, https://fred.stlouisfed.org/series/
CES9092000001 and https://fred.stlouisfed.org/
series/CES9093000001 (last visited December 7,
2021).
11 The ARPA adds section 602 of the Social
Security Act, which creates the State Fiscal
Recovery Fund, and section 603 of the Social
Security Act, which creates the Local Fiscal
Recovery Fund (together, SLFRF). Sections 602 and
603 contain substantially similar eligible uses; the
primary difference between the two sections is that
section 602 establishes a fund for states, territories, and Tribal governments and section 603 establishes
a fund for metropolitan cities, nonentitlement units
of local government, and counties.
Federal Register / Vol. 87, No. 18 / Thursday, January 27, 2022 / Rules and Regulations 4339
public health emergency by providing
premium pay to eligible workers;
(c) For the provision of government
services to the extent of the reduction in
revenue due to the COVID-19 public
health emergency relative to revenues
collected in the most recent full fiscal
year prior to the emergency; and
(d) To make necessary investments in
water, sewer, or broadband
infrastructure.
In addition, Congress specified two
types of ineligible uses of funds: funds
may not be used for deposit into any
pension fund or, for states and
territories only, to directly or indirectly
offset a reduction in net tax revenue
resulting from a change in law,
regulation, or administrative
interpretation.
Issued May 10, 2021, Treasury's
interim final rule provided further detail
on eligible uses of funds within the four
statutory categories, ineligible uses of
funds, and administration of the
program. The interim final rule
provided state, local, and Tribal
governments substantial flexibility to
determine how best to use payments
from the SLFRF program to meet the
needs of their communities. The interim
final rule aimed to facilitate swift and
effective implementation by establishing
a framework for determining the types
of programs and services that are
eligible under the ARPA along with
examples of eligible uses of funds that
state, local, and Tribal governments may
consider.
State, local, and Tribal governments
are already deploying SLFRF funds to
make an impact in their communities.
The SLFRF program ensures that state,
local, and Tribal governments have the
resources needed to fight the pandemic,
sustain and strengthen the economic
recovery, maintain vital public services,
and make investments that support
long-term growth, opportunity, and
equity. Treasury looks forward to
supporting and engaging with state,
local, and Tribal governments as they
use these funds to make transformative
investments in their communities.
Finally, with so many pressing and
effective ways to use SLFRF funds, there
is no excuse for waste, fraud, or abuse
of these funds.
Treasury received over 1,500
comments spanning nearly all aspects of
the interim final rule. The final rule
considers and responds to comments,
provides clarification to many aspects of
the interim final rule, and makes several
changes to eligible uses under the
program, summarized immediately
below.
Executive Summary of Major Changes
and Clarifications
The final rule provides broader
flexibility and greater simplicity in the
program, in response to public
comments. Among other clarifications
and changes, the final rule provides for
the following:
• Public Health and Negative
Economic Impacts: In addition to
programs and services, the final rule
clarifies that recipients may use funds
for capital expenditures that support an
eligible COVID-19 public health or
economic response. For example,
recipients may build certain affordable
housing, childcare facilities, schools,
hospitals, and other projects consistent
with the requirements in this final rule
and the Supplementary Information.
In addition, the final rule presumes
that an expanded set of households and
communities are "impacted" or
"disproportionately impacted" by the
pandemic, thereby allowing recipients
to provide responses to a broad set of
households and entities without
requiring additional analysis. Further,
the final rule provides a broader set of
enumerated eligible uses available for
these communities as part of COVID-19
public health and economic response,
including making affordable housing,
childcare, and early learning services
eligible in all impacted communities
and making certain community
development and neighborhood
revitalization activities eligible for
disproportionately impacted
communities.
Further, the final rule allows for a
broader set of uses to restore and
support government employment,
including hiring above a recipient's pre -
pandemic baseline, providing funds to
employees that experienced pay cuts or
furloughs, avoiding layoffs, and
providing retention incentives.
• Premium Pay: The final rule offers
more streamlined options to provide
premium pay, by broadening the share
of essential workers who can receive
premium pay without a written
justification while maintaining a focus
on lower -income and frontline essential
workers.
• Revenue Loss: The final rule offers
a standard allowance for revenue loss of
up to $10 million, not to exceed a
recipient's SLFRF award amount,
allowing recipients to select between a
standard amount of revenue loss or
complete a full revenue loss calculation.
Recipients that select the standard
allowance may use that amount for
government services.
• Water, Sewer, and Broadband
Infrastructure: The final rule
significantly broadens eligible
broadband infrastructure investments to
address challenges with broadband
access, affordability, and reliability, and
adds additional eligible water and sewer
infrastructure investments, including a
broad range of lead remediation and
stormwater management projects.
Structure of the Supplementary
Information
In addition to this Introduction, this
Supplementary Information is organized
into four sections: (1) Eligible Uses, (2)
Restrictions on Use, (3) Program
Administration Provisions, and (4)
Regulatory Analyses.
The Eligible Uses section describes
the standards to determine eligible uses
of funds in each of the four eligible use
categories:
(1) Responding to the public health
and negative economic impacts of the
pandemic (which includes several sub-
categories)
(2) Providing premium pay to
essential workers
(3) Providing government services to
the extent of revenue loss due to the
pandemic, and
(4) Making necessary investments in
water, sewer, and broadband
infrastructure.
Each eligible use category has
separate and distinct standards for
assessing whether a use of funds is
eligible. Standards, restrictions, or other
provisions in one eligible use category
do not apply to the others. Therefore,
recipients should first determine which
eligible use category a potential use of
funds fits within, then assess whether
the potential use of funds meets the
eligibility standard or criteria for that
category. In the case of uses to respond
to the public health and negative
economic impacts of the pandemic,
recipients should also determine which
sub -category the eligible use fits within
(i.e., public health, assistance to
households, assistance to small
businesses, assistance to nonprofits, aid
to impacted industries, or public sector
capacity and workforce), then assess
whether the potential use of funds
meets the eligibility standard for that
sub -category. Treasury does not pre -
approve uses of funds; recipients are
advised to review the final rule and may
pursue eligible projects under it.
In some sections of the rule, Treasury
identifies specific uses of funds that are
eligible, called "enumerated eligible
uses"; for example, Treasury provides
many enumerated eligible uses of funds
to respond to the public health and
negative economic impacts of the
pandemic. Uses of funds that are not
specifically named as eligible in this
4340 Federal Register / Vol. 87, No. 18 / Thursday, January 27, 2022 / Rules and Regulations final rule may still be eligible in two
ways. First, under the revenue loss
eligible use category, recipients have
broad latitude to use funds for
government services up to their amount
of revenue loss due to the pandemic. A
potential use of funds that does not fit
within the other three eligible use
categories may be permissible as a
government service, which recipients
can fund up to their amount of revenue
loss. For example, transportation
infrastructure projects are generally
ineligible as a response to the public
health and negative economic impacts
of the pandemic; however, a recipient
could fund these projects as a
government service up to its amount of
revenue loss, provided that other
restrictions on use do not apply. See
sections Revenue Loss and Restrictions
on Use for further information. Second,
the eligible use category for responding
to the public health and negative
economic impacts of the pandemic
provides a non -exhaustive list of
enumerated eligible uses, which means
that the listed eligible uses include
some, but not all, of the uses of funds
that could be eligible. The Eligible Uses
section provides a standard for
determining if other uses of funds,
beyond those specifically enumerated,
are eligible. If a recipient would like to
pursue a use of funds that is not
specifically enumerated, the recipient
should use the standard and other
guidance provided in the section Public
Health and Negative Economic Impacts
to assess whether the use of funds is
eligible.
Next, the Restrictions on Use section
describes limitations on how funds may
be used. Treasury has divided the
Restriction on Use section into (A)
statutory restrictions under the ARPA,
which include (1) offsetting a reduction
in net tax revenue, and (2) deposits into
pension funds, and (B) other restrictions
on use, which include (1) debt service
and replenishing reserves, (2)
settlements and judgments, and (3)
general restrictions. These restrictions
apply to all eligible use categories;
however, some restrictions apply only
to certain types of recipient
governments, and recipients are advised
to review the final rule to determine
which restrictions apply to their type of
government (e.g., state, territory, Tribal
government, county, metropolitan city,
or nonentitlement unit of government).
To reiterate, for recipient governments
covered by a specific restriction, that
restriction applies to all eligible use
categories and any use of funds under
the SLFRF program. Specifically:
• For states and territories only, funds
may not be used to offset directly or
indirectly a reduction in net tax revenue
resulting from a change in state or
territory law.
• For all recipients except Tribal
governments, funds may not be used for
deposits into a pension fund.
• For all recipients, funds may not be
used for debt service or replenishing
financial reserves.
• All recipients must also comply
with three general restrictions. First, a
recipient may not use SLFRF funds for
a program, service, or capital
expenditure that conflicts with or
contravenes the statutory purpose of
ARPA, including a program, service, or
capital expenditure that includes a term
or condition that undermines efforts to
stop the spread of COVID-19. Second,
recipients may not use SLFRF funds in
violation of the conflict -of -interest
requirements contained in the Award
Terms and Conditions, including any
self -dealing or violation of ethics rules.
Lastly, recipients should be aware that
federal, state, and local laws and
regulations, outside of SLFRF program
requirements, also apply, including for
example, environmental laws and
federal civil rights and
nondiscrimination requirements, which
include prohibitions on discrimination
on the basis of race, color, national
origin, sex (including sexual orientation
and gender identity), religion, disability,
age, or familial status (having children
under the age of 18).
The Program Administration
Provisions section describes the
processes and requirements for
administering the program on an
ongoing basis, specifically as relates to
the following: Distribution of funds,
timeline for using funds, transfer of
funds from a recipient to different
organizations, use of funds for program
administration, reporting on use of
funds, and remediation and recoupment
of funds used for ineligible purposes. Of
note, SLFRF funds may only be used for
costs incurred within a specific time
period, beginning March 3, 2021, with
all funds obligated by December 31,
2024 and all funds spent by December
31, 2026. Recipients are advised to also
consult Treasury's Reporting and
Compliance Guidance for additional
information on program administration
processes and requirements, including
applicability of the Uniform Guidance.
Finally, the section Regulatory
Analyses provides Treasury's analysis of
the impacts of this rulemaking, as
required by several laws, regulations,
and Executive Orders.
Throughout this Supplementary
Information, statements using the terms
"should" or "must" refer to
requirements, except when used in
summarizing opinions expressed in
public comments. Statements using the
term "encourage" refer to
recommendations, not requirements.
II. Eligible Uses
A. Public Health and Negative
Economic Impacts
Background
Since the first case of COVID-19 was
discovered in the United States in
January 2020, the disease has infected
over 50 million and killed over 800,000
Americans.12 The disease —and
necessary measures to respond —have
had an immense public health and
economic impact on millions of
Americans across many areas of life, as
detailed below in the respective sections
on Public Health and Negative
Economic Impacts. Since the release of
the interim final rule in May 2021, the
country has made major progress in
fighting the disease and rebuilding the
economy but faces continued risks, as
illustrated by the spread of the Delta
variant and the resulting slowdown in
the economic recovery. The SLFRF
program, and Treasury's interim final
rule, provide substantial flexibility to
recipients to respond to pandemic
impacts in their local community; this
flexibility is designed to help state,
local, and Tribal governments adapt to
the evolving public health emergency
and tailor their response as needs evolve
and to the particular local needs of their
communities.
Indeed, state, local, and Tribal
governments face continued needs to
respond at scale to the public health
emergency. This includes continued
public health efforts to slow the spread
of the disease, to increase vaccination
rates and provide vaccinations to new
populations as they become eligible, to
protect individuals living in congregate
facilities, and to address the broader
impacts of the pandemic on public
health. Similarly, while a strong
economic recovery is underway, the
economy remains 3.9 million jobs below
its pre -pandemic level, pointing to the
continued need for response efforts,
with low-income workers and
communities of color facing elevated
rates of unemployment and economic
hardship.13 Long-standing disparities in
health and economic outcomes in
12 Centers for Disease Control and Prevention,
COVID Data Tracker, http://www.covid.cdc.gov/
covid-data-tracker/#datatracker-home (last visited
December 31, 2021).
13 U.S. Bureau of Labor Statistics, All Employees,
Total Nonfarm [PAYEMS] https://fred .
stlouisfed.org/series/PAYEMS (last visited
December 7, 2021).
Federal Register / Vol. 87, No. 18 / Thursday, January 27, 2022 / Rules and Regulations 4341 underserved 14 communities, that
amplified and exacerbated the impacts
of the pandemic, also present continued
barriers to full and equitable recovery.
As state, local, and Tribal
governments work to meet the public
health and economic needs of their
communities, these governments are
also confronting the need to rebuild
their own capacity. Facing severe
budget challenges during the pandemic,
many state, local, and Tribal
governments have been forced to make
cuts to services or their workforces,
including cutting over 1.5 million jobs
from February to May 2020, or delay
critical investments. As of fall 2021,
state, local, and Tribal government
employment remained over 950,000 jobs
below pre -pandemic levels.15 In the
recovery from the Great Recession, cuts
to state, local, and Tribal governments
became a meaningful drag on economic
growth for several years, and the SLFRF
program provides the resources needed
to re -invest in vital public services and
workers to avoid this outcome.16
1. General Provisions: Structure and
Standards
Background: Sections 602(c)(1)(A)
and 603(c)(1)(A) of the Social Security
Act establish that recipients may use
funds "to respond to the public health
emergency with respect to COVID-19 or
its negative economic impacts,
including assistance to households,
small businesses, and nonprofits, or aid
to impacted industries such as tourism,
travel, and hospitality." The interim
final rule established three categories
within this eligible use: (1) Public
health responses for those impacted by
the pandemic, including the general
public; (2) responses to the negative
economic impacts that were
experienced by those impacted as a
result of the pandemic; and (3)
additional services, either as a public
health response or a response to the
negative economic impacts of the
14 Treasury uses "underserved" to refer to
populations sharing a particular characteristic, as
well as geographic communities, that have been
systematically denied a full opportunity to
participate in aspects of economic, social, and civic
life. In the interim final rule, Treasury generally
used the term "disadvantaged" to refer to these
same populations and communities.
15 U.S. Bureau of Labor Statistics, All Employees,
State Government [CES9092000001] and All
Employees, Local Government [CES9093000001],
retrieved from FRED, Federal Reserve Bank of St.
Louis, https://fred.stlouisfed.org/series/
CES9092000001 and https://fred.stlouisfed.org/
series/CES9093000001 (last visited December 7,
2021).
16 Tracy Gordon, State and Local Budgets and the
Great Recession, Brookings Institution (Dec. 31,
2012), http://www.brookings.edu/articles/state-and-
local-bu dgets-and-the-great-recession.
pandemic, for disproportionately
impacted communities.
The interim final rule established the
method to determine which specific
programs or services may be eligible to
respond to the public health emergency
or to respond to the negative economic
impacts of the public health emergency
within this framework. The interim final
rule included multiple enumerated uses
that are eligible within each of these
categories when provided to eligible
populations, including populations that
the interim final rule presumed to have
been impacted (in the case of public
health responses and responses to
negative economic impacts) or
disproportionately impacted (in the case
of disproportionately impacted
communities). Finally, the interim final
rule also allowed recipients to designate
additional individuals or classes as
impacted or disproportionately
impacted. The standards for each of
these criteria under the interim final
rule are discussed below.
To assess whether a program or
service would be eligible to respond to
the public health emergency or its
negative economic impacts, the interim
final rule stated that, "the recipient [is
required] to, first, identify a need or
negative impact of the COVID-19 public
health emergency and, second, identify
how the program, service, or other
intervention addresses the identified
need or impact [. . . .1 [E]ligible uses
under this category must be in response
to the disease itself or the harmful
consequences of the economic
disruptions resulting from or
exacerbated by the COVID-19 public
health emergency." The enumerated
eligible uses were presumed to meet this
criterion.
With respect to uses not specifically
enumerated in the interim final rule as
eligible public health responses, the
interim final rule stated that, "[t]o assess
whether additional uses would be
eligible under this category, recipients
should identify an effect of COVID-19
on public health, including either or
both of immediate effects or effects that
may manifest over months or years, and
assess how the use would respond to or
address the identified need."
With respect to uses not specifically
enumerated in the interim final rule as
eligible responses to a negative
economic impact of the public health
emergency, the interim final rule stated
that "[e]ligible uses that respond to the
negative economic impacts of the public
health emergency must be designed to
address an economic harm resulting
from or exacerbated by the public health
emergency. In considering whether a
program or service would be eligible
under this category, the recipient should
assess whether, and the extent to which,
there has been an economic harm, such
as loss of earnings or revenue, that
resulted from the COVID-19 public
health emergency and whether, and the
extent to which, the use would respond
to or address this harm.17 A recipient
should first consider whether an
economic harm exists and whether this
harm was caused or made worse by the
COVID-19 public health emergency."
The interim final rule went on to say
that: "In addition, the eligible use must
`respond to' the identified negative
economic impact. Responses must be
related and reasonably proportional to
the extent and type of harm
experienced; uses that bear no relation
or are grossly disproportionate to the
type or extent of harm experienced
would not be eligible uses."
Throughout this final rule, Treasury
refers to households, communities,
small businesses, nonprofits, and
industries that experienced public
health or negative economic impacts of
the pandemic as "impacted." The first
section in the interim final rule under
this eligible use category included
public health responses for these
impacted classes. The second category
in the interim final rule under this
eligible use category included responses
to the negative economic impacts that
were experienced by these impacted
classes as a result of the pandemic.
The interim final rule further
recognized that certain populations
have experienced disproportionate
health or negative economic impacts
during the pandemic, as pre-existing
disparities in these communities
amplified the impacts of the pandemic.
For example, the interim final rule
recognized that the negative economic
effects of the pandemic were
particularly pronounced among lower -
income families, who were more likely
to experience income loss and more
likely to have a job that required in -
person work. The interim final rule
recognized the role of pre-existing social
vulnerabilities and disparities in driving
the disparate health and economic
outcomes and presumed that programs
designed to address these health or
economic disparities are responsive to
the public health or negative economic
impacts of the COVID-19 public health
emergency, when provided in
disproportionately impacted
communities. In addition to identifying
certain populations and communities
17In some cases, a use may be permissible under
another eligible use category even if it falls outside
the scope of section (c)(1)(A) of section 602 and 603
of the Social Security Act.
4342 Federal Register / Vol. 87, No. 18 /Thursday, January 27, 2022 /Rules and Regulations presumed to be disproportionately
impacted, it also empowered recipients
to identify other disproportionately
impacted households, populations,
communities, or small businesses. The
interim final rule provided that, in
identifying these disproportionately
impacted communities, recipients
should be able to support their
determination that the pandemic
resulted in disproportionate public
health or economic outcomes to the
specific populations, households, or
geographic areas to be served.
Throughout this final rule, Treasury
refers to those households,
communities, small businesses, and
nonprofits that experienced
disproportionate public health or
negative economic impacts of the
pandemic as "disproportionately
impacted." The third category in the
interim final rule under this eligible use
included public health responses and
responses to the negative economic
impacts for these disproportionately
impacted classes.
The interim final rule provided
significant flexibility for recipients to
determine which households,
populations, communities, or small
businesses have been impacted and/or
disproportionately impacted by the
pandemic and to identify appropriate
responses. The interim final rule
included several provisions to provide
simple methods for recipients to
identify impacts and design programs to
address those impacts. First, the interim
final rule allowed recipients to
demonstrate a negative economic
impact on a population or class and
provide assistance to households or
small businesses that fall within that
population or class. In such cases, the
recipient need only demonstrate that an
individual household or business is
within the class that experienced a
negative economic impact, rather than
requiring a recipient to demonstrate that
each individual household or small
business experienced a negative
economic impact, because the impact
was already identified for the class.
Second, in the interim final rule,
Treasury presumed that certain
populations have been impacted or
disproportionately impacted and are
thus eligible for services that respond to
these impacts or disproportionate
impacts. Specifically, the interim final
rule permitted recipients to presume
that households that experienced
unemployment, increased food or
housing insecurity, or are low- or
moderate -income experienced a
negative economic impact from the
pandemic. The interim final rule also
permitted recipients to presume that
certain services provided in Qualified
Census Tracts (QCTs), to individuals
living in QCTs, or by Tribal
governments are responsive to
disproportionate impacts of the
pandemic. In addition to the
populations presumed to be impacted or
disproportionately impacted, under the
interim final rule, recipients could
identify other impacted households or
classes, as described above, as well as
other populations, households, or
geographic areas that are
disproportionately impacted by the
pandemic.
Third, as mentioned previously, the
interim final rule included a non -
exhaustive list of uses of funds that
Treasury identified as responsive to the
impacts or disproportionate impacts of
the pandemic. Treasury refers to these
as "enumerated eligible uses."
To summarize, the interim final rule
identified certain populations that are
presumed to be impacted by the
pandemic (and specific enumerated
uses of funds that are responsive to that
impact) and populations that are
presumed to be disproportionately
impacted by the pandemic (and specific
enumerated uses of funds that are
responsive to those disproportionate
impacts). In addition, the interim final
rule provided standards for recipients to
assess whether additional uses of funds,
beyond the enumerated eligible uses,
are eligible for impacted and
disproportionately impacted
populations and permitted recipients to
identify other households or classes that
experienced impacts of the pandemic or
disproportionate impacts of the
pandemic.
Rule Structure
Public Comment: Many commenters
expressed concern regarding the
structure of the eligible uses, indicating
they found the structure of the public
health and negative economic impacts
section of the interim final rule to be
confusing or difficult to navigate. Other
commenters indicated that they
understood the enumerated uses to be
the only eligible uses and/or the
presumed eligible populations to be the
only eligible populations. Several
commenters expressed frustration about
the number of eligible uses specifically
enumerated in the interim final rule,
which they considered too few, and
commenters proposed a wide range of
additional enumerated eligible uses (for
further discussion, see the section
Public Health and section Negative
Economic Impacts). Commenters
expressed concern with pursuing uses
of funds not explicitly enumerated in
the eligible use section or uncertainty
regarding the broad flexibility provided
under the interim final rule to pursue
additional programs that respond to the
public health or negative economic
impacts of the pandemic or the process
for doing so.
Treasury Response: Treasury
recognizes that many commenters felt
the structure of the interim final rule
could be clarified. These comments are
consistent with many of the questions
that Treasury has received from
recipients, which requested clarification
regarding the category their desired
response fits into. Treasury observes
that these comments and questions
generally fall into four categories: (1)
How to identify the correct public
health or negative economic impact
category for a particular response, (2)
how to identify whether a particular use
is eligible, (3) how to identify an
impacted or disproportionately
impacted class, and (4) whether an
enumerated use can be provided to a
class other than those presumed
impacted or disproportionately
impacted. In response to comments,
Treasury is adjusting the structure of the
public health and negative economic
impacts eligible use section of the final
rule to improve clarity and make it
easier for recipients to interpret and
apply the final rule.
Specifically, Treasury is restructuring
the rule to aid recipients in determining
whether a particular response is eligible
and how the particular response might
be eligible under a particular category.
This restructuring reinforces the
fundamental criteria that a use of funds
is eligible based on its responsiveness to
a public health or negative economic
impact experienced by individuals,
households, small businesses,
nonprofits, or impacted industries
(together "beneficiaries").18 This
restructuring is intended to make the
rule easier to navigate and to
implement, including any criteria or
conditions on particular uses of funds.
The reorganization of the public
health and negative economic impacts
section of the final rule is also intended
to clarify the enumerated eligible uses
described in the interim final rule. The
reorganization itself is not intended to
change the scope of the enumerated
uses that were included in the interim
final rule or that were allowable under
the interim final rule. In some cases,
specific enumerated uses are being
altered, and those changes are discussed
18 Note that small businesses, nonprofits, and
industries may also function as subrecipients. For
additional information on these distinctions see
section Distinguishing Subrecipients versus
Beneficiaries.
Federal Register / Vol. 87, No. 18 / Thursday, January 27, 2022 / Rules and Regulations 4343 as changes within the section on that
enumerated use.
The final rule streamlines and aligns
services and standards that are generally
applicable or are provided for public
health purposes. Under this approach,
eligible uses to respond to the public
health emergency are organized based
on the type of public health problem: (1)
COVID-19 mitigation and prevention,
(2) medical expenses, (3) behavioral
health care, and (4) preventing and
responding to violence. Under this
approach, eligible uses to respond to the
negative economic impacts of the public
health emergency are organized based
on the type of beneficiary: (1) Assistance
to households, (2) assistance to small
businesses, and (3) assistance to
nonprofits, alongside a fourth
standalone eligibility category for aid to
travel, tourism, hospitality, and other
impacted industries. The first three
categories, assistance to households,
small businesses, and nonprofits,
include enumerated eligible uses for
impacted and disproportionately
impacted beneficiaries. This change in
structure is intended to provide a
framework that clearly identifies the
intended beneficiaries of uses of funds
and provides clarity about what types of
assistance are "responsive to the
pandemic or its negative economic
impacts" for these beneficiaries.
a. Standards for Identifying a Public
Health or Negative Economic Impact
Standards: Designating a Public Health
Impact
Public Comment: Many commenters
expressed uncertainty about how to
determine whether a use of funds,
beyond those specifically enumerated as
eligible, might be an eligible public
health response. For example, many
commenters submitted questions asking
whether specific uses of funds would be
eligible. Others described what they
considered to be impacts of the
pandemic and argued that uses of funds
to respond to these issues should be
eligible. Some commenters requested
that Treasury provide additional detail
to guide their assessments of eligible
uses of funds. For example, a
commenter requested more clarification
around exactly what and whose medical
expenses can be covered. These
comments ranged in their specificity
and covered the full range of the
enumerated eligible uses.
Treasury Response: Treasury is
clarifying that when assessing whether
a program or service is an eligible use
to respond to the public health impacts
of the COVID-19 public health
emergency, the Department will
consider the two eligibility
requirements discussed below. These
standards apply to all proposed public
health uses.
First, there must be a negative public
health impact or harm experienced by
an individual or a class. For ease of
administration, the interim final rule
allowed, and the final rule maintains
the ability for, recipients to identify a
public health impact on a population or
group of individuals, referred to as a
"class," and to provide assistance to
that class. In determining whether an
individual is eligible for a program
designed to address a harm experienced
by a class, the recipient need only
document that the individual is within
the class that experienced a public
health impact, see section Standards:
Designating Other Impacted Classes. In
the case of some impacts, for example
impacts of COVID-19 itself that are
addressed by providing prevention and
mitigation services, such a class could
reasonably include the general public.
Second, the program, service, or other
intervention must address or respond to
the identified impact or harm. The final
rule maintains the interim final rule
requirement that eligible uses under this
category must be in response to the
disease itself or other public health
harms that it caused.19
Responses must be reasonably
designed to benefit the individual or
class that experienced the public health
impact or harm. Uses of funds should be
assessed based on their responsiveness
to their intended beneficiaries and the
ability of the response to address the
impact or harm experienced by those
beneficiaries.
Responses must also be related and
reasonably proportional to the extent
and type of public health impact or
harm experienced. Uses that bear no
relation or are grossly disproportionate
to the type or extent of harm
experienced would not be eligible uses.
Reasonably proportional refers to the
scale of the response compared to the
scale of the harm. It also refers to the
targeting of the response to beneficiaries
compared to the amount of harm they
experienced. In evaluating whether a
19 In designing an intervention to mitigate
COVID-19, the recipient should consider guidance
from public health authorities, particularly the
Centers for Disease Control and Prevention (CDC),
in assessing appropriate COVID-19 mitigation and
prevention strategies (see Centers for Disease
Control and Prevention, COVID-19, https://
www.cdc.gov/coronavirus/2019-ncov/index.html) .
A program or service that imposes conditions on
participation in or acceptance of the service that
would undermine efforts to stop the spread of
COVID-19 or discourage compliance with practices
in line with CDC guidance for stopping the spread
of COVID-19 is not a permissible use of funds.
use is reasonably proportional,
recipients should consider relevant
factors about the harm identified and
the response. For example, recipients
may consider the size of the population
impacted and the severity, type, and
duration of the impact. Recipients may
also consider the efficacy, cost, cost-
effectiveness, and time to delivery of the
response.
If a recipient intends to fund capital
expenditures in response to the public
health impacts of the pandemic,
recipients should refer to the section
Capital Expenditures for details about
the eligibility of capital expenditures.
Standards: Designating a Negative
Economic Impact
Public Comment: Many commenters
expressed uncertainty about how to
determine whether uses of funds,
beyond those specifically enumerated as
eligible, might be eligible responses to
negative economic impacts. For
example, many commenters submitted
questions asking whether specific uses
of funds would be eligible. Others
described what they considered to be
impacts of the pandemic and argued
that uses of funds to respond to these
issues should be eligible. Some
commenters requested that Treasury
provide additional detail to guide their
assessments of eligible uses of funds.
These comments ranged in their
specificity and covered the full range of
eligible uses to respond to negative
economic impacts. Several commenters
asked for clarification about what types
of food assistance would be considered
eligible. Another commenter requested
that the establishment of outdoor dining
be eligible. Many commenters inquired
about homeless shelters as an eligible
use of SLFRF funds.
Commenters also expressed
uncertainty about the ability to establish
classes, including geographic areas, that
experienced a negative economic impact
or disagreed with the requirement that
an individual entity be impacted by the
pandemic in order to receive assistance.
For example, a commenter argued that
interventions should not be limited to
individuals or businesses that
experienced an economic impact and
should instead be used broadly to
support economic growth. These
commenters argued that an expenditure
that supports a more robust economy
may help combat the pandemic's
negative economic impacts, and it can
do so even if funding is provided to
individuals or entities that did not
themselves experience a negative
economic impact during the pandemic.
Treasury Response: The final rule
maintains the standard articulated in
4344 Federal Register / Vol. 87, No. 18 / Thursday, January 27, 2022 / Rules and Regulations the interim final rule. For clarity, the
final rule re -articulates that when
assessing whether a program or service
is an eligible use to respond to the
negative economic impacts of the
COVID-19 public health emergency,
Treasury will consider the two
eligibility requirements discussed
below.
First, there must be a negative
economic impact, or an economic harm,
experienced by an individual or a class.
The recipient should assess whether,
and the extent to which, there has been
an economic harm, such as loss of
earnings or revenue, that resulted from
the COVID-19 public health emergency.
A recipient should first consider
whether an economic harm exists and
then whether this harm was caused or
made worse by the COVID-19 public
health emergency. This approach is
consistent with the text of the statute,
which provides that funds in this
category must be used to "respond to
the public health emergency with
respect to . . . its negative economic
impacts."
While economic impacts may either
be immediate or delayed, individuals or
classes that did not experience a
negative economic impact from the
public health emergency would not be
eligible beneficiaries under this
category. As noted above, the interim
final rule permitted recipients to
presume that households that
experienced unemployment, increased
food or housing insecurity, or are low -
or moderate -income experienced a
negative economic impact from the
pandemic. For discussion of the final
rule's approach to this presumption, see
section Populations Presumed Eligible.
The final rule also maintains several
provisions included in the interim final
rule and subsequent guidance that are
intended to ease administration of
identifying that the beneficiary
experienced a negative economic impact
or harm. For example, the interim final
rule allowed, and the final rule
maintains the ability for, recipients to
demonstrate a negative economic
impact on a population or group,
referred to as a "class," and to provide
assistance to households, small
businesses, or nonprofits that fall within
that class. In such cases, the recipient
need only demonstrate that the
household, small business, or nonprofit
is within the class that experienced a
negative economic impact, see section
Standards: Designating Other Impacted
Classes. This would allow, for example,
an internet access assistance program
for all households with children to
support those households' ability to
participate in healthcare, work, and
educational activities like extending
learning opportunities, among other
critical activities. In that case, the
recipient would only need to identify a
negative economic impact to the class of
"households with children" and would
not need to document or otherwise
demonstrate that each individual
household served experienced a
negative economic impact.
Second, the response must be
designed to address the identified
economic harm or impact resulting from
or exacerbated by the public health
emergency. In selecting responses, the
recipient must assess whether, and the
extent to which, the use would respond
to or address this harm or impact. This
approach is consistent with the text of
the statute, which provides that funds
may be used to "respond to" the
"negative economic impacts" of the
public health emergency "including
assistance to households, small
businesses, and nonprofits, or aid to
impacted industries such as tourism,
travel, and hospitality." The list of
potential responses ("assistance" or
"aid") suggests that responses should
address the "negative economic
impacts" of particular types of
beneficiaries (e.g., households or small
businesses).
Responses must be reasonably
designed to benefit the individual or
class that experienced the negative
economic impact or harm. Uses of funds
should be assessed based on their
responsiveness to their intended
beneficiary and the ability of the
response to address the impact or harm
experienced by that beneficiary.2O
Responses must also be related and
reasonably proportional to the extent
and type of harm experienced; uses that
bear no relation or are grossly
disproportionate to the type or extent of
harm experienced would not be eligible
uses. 21 Reasonably proportional refers
to the scale of the response compared to
the scale of the harm. It also refers to the
targeting of the response to beneficiaries
compared to the amount of harm they
experienced; for example, it may not be
reasonably proportional for a cash
assistance program to provide assistance
in a very small amount to a group that
20 For example, expenses such as excessive
compensation to employees or expenses which
have already been reimbursed through another
federal program, are not reasonably designed to
address a negative economic impact to a
beneficiary.
21 For example, a program or service that imposes
conditions on participation in or acceptance of the
service that would undermine efforts to stop the
spread of COVID-19 or discourage compliance with
practices in line with CDC guidance for stopping
the spread of COVID-19 is not a permissible use of
funds.
experienced severe harm and in a much
larger amount to a group that
experienced relatively little harm. In
evaluating whether a use is reasonably
proportional, recipients should consider
relevant factors about the harm
identified and the response. For
example, recipients may consider the
size of the population impacted and the
severity, type, and duration of the
impact. Recipients may also consider
the efficacy, cost, cost-effectiveness, and
time to delivery of the response.
Finally, recipients should be aware of
the distinction between beneficiaries of
funds and subrecipients; a recipient
may provide services to beneficiaries
through subrecipients that did not
experience a negative economic impact,
see section Distinguishing Subrecipients
versus Beneficiaries. That is, a recipient
may award SLFRF funds to an entity
that did not experience a negative
economic impact in order to implement
a program or provide a service to
beneficiaries on its behalf. Such
transfers, when implementing a public
health or negative economic impact
response, should be responsive to and
designed to benefit individuals,
households, small businesses,
nonprofits, or impacted industries that
did experience a public health or
negative economic impact.
Determining the Appropriate Eligible
Use Category
Public Comment: Some commenters
expressed uncertainty about how to
analyze negative economic impacts to
different entities (e.g., households, small
businesses, nonprofits). For example,
commenters asked whether a nonprofit,
which did not experience a negative
economic impact itself, could be granted
funds to provide services to individuals
experiencing homelessness, who did
experience negative economic impacts.
Other commenters proposed providing
assistance to support the expansion of
small businesses, under the theory that
this would create more job
opportunities for unemployed workers
who experienced negative economic
impacts.
Treasury Response: In the final rule,
Treasury is clarifying that recipients
should assess a potential use of funds
based on which beneficiary experienced
the negative economic impact, in other
words, the households, small
businesses, nonprofits, or impacted
industries that experienced the negative
economic impact.
Treasury notes that recipients may
award SLFRF funds to many different
types of organizations to carry out
eligible uses of funds and serve
beneficiaries on behalf of a recipient.
Federal Register / Vol. 87, No. 18 /Thursday, January 27, 2022 /Rules and Regulations 4345 When a recipient provides funds to
another entity to carry out eligible uses
of funds and serve beneficiaries the
entity becomes a subrecipient (see
section Distinguishing a Subrecipient
versus a Beneficiary). For example, a
recipient may grant funds to a nonprofit
organization to provide food assistance
(an eligible use) to low-income
households (the beneficiaries).
Recipients only need to assess whether
the beneficiaries experienced a negative
economic impact and whether the
eligible use responds to that impact,
consistent with the two-part framework
described above; the organization
carrying out the eligible use does not
need to have experienced a negative
economic impact if it is serving as the
vehicle for reaching the beneficiaries.
When making determinations about
how to implement a program, recipients
should consider whether that method of
program implementation is an effective
and efficient method to implement the
program and do so in accordance with
the Uniform Guidance provisions that
govern procurements and sub -granting
of federal funds, as applicable.
As noted above, recipients should
analyze eligible uses based on the
beneficiary of the assistance or the
entity that experienced a negative
economic impact. Assistance to a small
business or to an impacted industry
must respond to a negative economic
impact experienced by that small
business or industry. Recipients may
not provide assistance to small
businesses or impacted industries that
did not experience a negative economic
impact, although recipients can identify
negative economic impacts for classes,
rather than individual businesses, and
may also presume that small businesses
in certain areas experienced impacts;
see section General Provisions:
Structure and Standards and section
Assistance to Small Businesses for
details.
Several examples illustrate the
application of these concepts. For
example, a recipient could provide
assistance to households via a contract
with a business to create subsidized jobs
for the long-term unemployed; in this
case the business is a subrecipient and
need not have experienced a negative
economic impact, but the recipient
would need to identify a specific
connection between the assistance
provided and addressing the negative
economic impact experienced by the
unemployed households. The recipient
could, for instance, document the
subsidized jobs created under the
contract and their reservation for long-
term unemployed individuals.
Similarly, a recipient might provide
assistance to a small business that
experienced a pandemic -related loss of
revenue. This small business is a
beneficiary and may use those funds in
many ways, potentially including hiring
or retaining staff. However, general
assistance to a business that did not
experience a negative economic impact
under the theory that this assistance
generally grows the economy and
therefore enhances opportunities for
unemployed workers would not be an
eligible use, because such assistance is
not reasonably designed to impact the
individuals or classes that experienced
a negative economic impact. In other
words, there is not a reasonable
connection between the assistance
provided and an impact on the
beneficiaries. Such an activity would be
attenuated from and thus not reasonably
designed to benefit the households that
experienced the negative economic
impact.
b. Populations Presumed Eligible
Presumed Eligibility: Impacted and
Disproportionately Impacted
Households and Communities
Background: As noted above, the
interim final rule allowed recipients to
presume that certain households were
impacted or disproportionately
impacted by the pandemic and thus
eligible for responsive programs or
services. Specifically, under the interim
final rule, recipients could presume that
a household or population that
experienced unemployment,
experienced increased food or housing
insecurity, or is low- or moderate -
income experienced negative economic
impacts resulting from the pandemic,
and recipients may provide services that
respond to these impacts.
The interim final rule also recognized
that pre-existing health, economic, and
social disparities contributed to
disproportionate pandemic impacts in
certain communities and allowed for a
broader list of enumerated eligible uses
to respond to the pandemic in
disproportionately impacted
communities. Under the interim final
rule, recipients were allowed to
presume that families residing in QCTs
or receiving services provided by Tribal
governments were disproportionately
impacted by the pandemic.
Definition of Low- and Moderate -
Income
Public Comment: As noted earlier,
many commenters sought a definition
for "low- and moderate -income" to
provide recipients greater clarity on
which specific households could be
presumed to be impacted by the
pandemic.
Treasury Response: The final rule
maintains the presumptions identified
in the interim final rule and defines
low- and moderate -income for the
purposes of determining which
households and populations recipients
may presume to have been impacted. To
simplify the administration of this
presumption, the final rule adopts a
definition of low- and moderate -income
based on thresholds established and
used in other federal programs.
Definitions. The final rule defines a
household as low income if it has (i)
income at or below 185 percent of the
Federal Poverty Guidelines (FPG) for the
size of its household based on the most
recently published poverty guidelines
by the Department of Health and Human
Services (HHS) or (ii) income at or
below 40 percent of the Area Median
Income (AMI) for its county and size of
household based on the most recently
published data by the Department of
Housing and Urban Development
(HUD).22
The final rule defines a household as
moderate income if it has (i) income at
or below 300 percent of the FPG for the
size of its household based on the most
recently published poverty guidelines
by HHS or (ii) income at or below 65
percent of the AMI for its county and
size of household based on the most
recently published data by HUD.23
Recipients may determine whether to
measure income levels for specific
households or for a geographic area
based on the type of service to be
provided. For example, recipients
developing a program that serves
specific households (e.g., a subsidy for
internet access, a childcare program)
may measure income at the household
level. Recipients providing a service
that reaches a general geographic area
(e.g., a park) may measure median
income of that area.
Further, recipients should generally
use the income threshold for the size of
the household to be served (e.g., when
providing childcare to a household of
five, recipients should reference the
income threshold for a household of
five); however, recipients may use the
income threshold for a default
household size of three if providing
22 AMI is also often referred to as median family
income for the area. Since AMI is synonymous with
this term and used more generally, the final rule
refers to AMI.
23 For the six New England states of Connecticut,
Maine, Massachusetts, New Hampshire, Rhode
Island, and Vermont, HUD provides AMI for towns
rather than counties. Recipients in these states
should use the AMI corresponding to their town
when determining thresholds for both low and
moderate income.
4346 Federal Register / Vol. 87, No. 18 /Thursday, January 27, 2022 /Rules and Regulations services that reach a general geographic
area or if doing so would simplify
administration of the program to be
provided (e.g., when developing a park,
recipients should use the income
threshold for a household size of three
and compare it to median income of the
geographic area to be served).
Note that recipients can also identify
and serve other classes of households
that experienced negative economic
impacts or disproportionate impacts
from the pandemic; recipients can
identify these classes based on their
income levels, including above the
levels defined as low- and moderate -
income in the final rule. For example,
a recipient may identify that households
in their community with incomes above
the final rule threshold for low-income
nevertheless experienced
disproportionate impacts from the
pandemic and provide responsive
services. See section General Provisions:
Standards for Identifying Other Eligible
Populations for details on applicable
standards.
Applicable levels. For reference, the
FPG is commonly referred to as the
federal poverty level (FPL) and is
related to —although distinct from —the
U.S. Census Bureau's poverty threshold.
The final rule uses the FPG when
referring specifically to the HHS
guidelines, as these are the quantitative
metrics used for determining low- and
moderate -income households.
The FPG by household size for 2021
is included in the table below.
Recipients should refer to HHS Poverty
2021 FEDERAL POVERTY GUIDELINES
Guidelines for this information, which
is updated annually and available on
the HHS website.24 For calculating the
thresholds of 40 percent and 65 percent
of AMI, recipients should refer to the
annual HUD Section 8 50 percent
income limits by county and household
size published by HUD and available on
the HUD website; in particular,
recipients should calculate the 40
percent threshold as 0.8 times the 50
percent income limit, and recipients
should calculate the 65 percent
threshold as 1.3 times the 50 percent
income limit.25 Finally, for median
income of Census Tracts and other
geographic areas, recipients should refer
to the most recent American
Community Survey 5 -year estimates
available through the Census website.26
Household size
48 contiguous
states and the
District of
Columbia
Alaska
Hawaii
1 $12,880
$16,090
$14,820
2 17,420
21,770
20,040
3 21,960
27,450
25,260
4 26,500
33,130
30,480
5 31,040
38,810
35,700
6 35,580
44,490
40.920
7 40,120
50,170
46,140
8 44,660
55,850
51,360
For families/households with more than 8 persons, add the following amounts for each additional person:
48 Contiguous States and the District of Columbia: $4,540.
Alaska: $5,680.
Hawaii: $5,220.
Source: "HHS Poverty Guidelines for 2021," available at https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines .
Rationale. In defining low income, the
final rule uses both the FPG and AMI to
account for national trends and regional
differences. The metric of 185 percent of
FPG aligns with some other programs;
for instance, under the National School
Lunch Program, students with
household incomes under 185 percent
of FPG qualify for free or reduced -price
lunch, and schools often use eligibility
for free or reduced -price lunch as an
indicator of low-income status under
Title 1—A of the Elementary and
Secondary Education Act. Eligibility for
other programs, such as the Federal
Communications Commission's e -Rate
24 U.S. Department of Health and Human Service,
HHS Poverty Guidelines for 2021, available at
h ttps: //aspe.hh s.gov/topics/poverty-economi c-
mobility/poverty-guidelines.
25 U.S. Department of Housing and Urban
Development, FY 2021 Section 8 Income Limits,
available at https://www.huduser.gov/portal/
datasets/il/i121/Section8-FY21.xlsx. Recipients may
refer to the list of counties (and New England
towns) identified by state and metropolitan area for
identifying the appropriate area. U.S. Department of
Housing and Urban Development, FY 2021 List of
Counties (and New England Towns) Identified by
program and the Special Supplemental
Nutrition Program for Women, Infants
and Children employ this metric as
well. In addition, 185 percent of the
FPG for a family of four is $49,025,
which is approximately the wage
earnings for a two -earner household in
which both earners receive the median
wage in occupations, such as waiters
and waitresses and hotel clerks, that
were heavily impacted by COVID-19.27
This measure is targeted toward those at
the bottom of the income distribution
and thus helps to promote use of SLFRF
funds towards populations with the
greatest needs. At the same time, with
State and Metropolitan Area, available at https://
www.h u d user.gov/portal /datasets/il/i121 /area-
definitions-FY21. pd f.
26 The U.S. Census Bureau provides an interactive
map: U.S. Census Bureau, Median Household
Income State Selection Map, available at https://
data.census.gov/cedsci/map?q=Median
%20Household %20lncome&g=0100000US
%2404000%24001 &tid=ACSST5Y2019.S1901 &cid=
S1901_C01_012E&vintage=2019. The U.S. Census
Bureau also provides an interactive table: U.S.
Census Bureau, Median Household Income In The
Past 12 Months (In 2019 Inflation -Adjusted Dollars),
approximately one -quarter of Americans
below 185 percent of the poverty
threshold, this approach is broad
enough to facilitate use of SLFRF funds
across many jurisdictions.28 Because
regions have different cost and income
levels, this definition also allows for
upward adjustment based on AMI for
those regions where 40 percent of AMI
exceeds 185 percent of FPG. The metric
of 40 percent of AMI is based on the
midpoint of values often used to
designate certain categories of low-
income households; specifically, it is
the midpoint of the 30 percent income
limit and the 50 percent income limit
available at https://data.census.gov/cedsci/table?q=
b 19013 &ti d=ACSDTS Y2019. B 19013 &h i d ePrevi e w=
true.
27 See U.S. Bureau of Labor Statistics,
Occupational Employment and Wage Estimates,
https://www.bls.gov/oes/current/oes_nat.htm (last
visited December 7, 2021).
28 U.S. Census Bureau, Poverty Status by State,
https://www.census.gov/data/tables/time-series/
demo/income-poverty/cps-pov/pov-46.html (last
visited December 7, 2021).
Federal Register / Vol. 87, No. 18 / Thursday, January 27, 2022 /Rules and Regulations 4347 used in programs such as the
Community Development Block Grant
(CDBG) Program.
In defining moderate income, the final
rule uses both the FPG and AMI to
account for national trends and regional
differences. While there are different
definitions of moderate income, 300
percent of FPG falls within the range
commonly used by researchers.29
Analysis of median wages among a
sample of occupations likely impacted
by the pandemic also suggests that an
income cutoff of 300 percent of FPG
would include many households with
workers in such occupations.3o
Moreover, the metric of 300 percent of
FPG covers households that, while
above the poverty line, often lack
economic security.31 Treasury
determined the AMI threshold for
moderate income by maintaining the
same ratio of FPG multiplier to AMI
multiplier as in the definition of low
income. This anchors the threshold to
the existing definitions of moderate
income from the literature while taking
into account geographical variation in
income and expenses in the same
manner as the definition of low income.
Eligibility Presumptions
Public Comment: Many commenters
believed that a broader range of groups
should be considered presumptively
impacted and disproportionately
impacted, arguing that many
households had been affected by the
pandemic and that broader presumed
eligibility would help recipients provide
assistance quickly and effectively.
Treasury also received many
comments on the presumption that
29 For instance, Melissa Kearney et al. (2013) cap
the "struggling lower middle -income class" at 250
percent of the federal poverty level, while Isabel
Sawhill and Edward Rodrigue (2015) define the
"middle class" as those with incomes of at least 300
percent of the poverty line. Melissa Kearney et al.,
"A Dozen Facts about America's Struggling Lower -
Middle Class," The Hamilton Project (December
2013), https://www.hamiltonproject.org/assets/
legacy/files/d o wnl o a d s_ an d_links/THP_ 12Lo w
IncomeFacts_Final.pdf,• Isabel Sawhill and Edward
Rodrigue, "An Agenda for Reducing Poverty and
Improving Opportunity," Brookings Institution,
https://www.brookings.edu/wp-content/uploads/
2016/07/Sa wh ill_FINAL. p d f.
3o Data on median annual wages from: U.S.
Bureau of Labor and Statistics, Occupational
Employment and Wage Statistics, available at
https://www.bls.gov/oes/current/oes_nat.htm (last
visited December 7, 2021).
31 For instance, households earning between 200
and 300 percent of the FPG have significantly
higher rates of food and housing insecurity than
those earning above 300 percent of the FPG. Table
1, Kyle J. Caswell and Stephen Zuckerman, Food
Insecurity, Housing Hardship, and Medical Care
Utilization, Urban Institute (June 2018), https://
www.urban.org/sites/default/files/publication/
98701/2001896 foodinsecurity_housinghardship_
medicalcareutilization finalized.pdf
families living in QCTs or receiving
services from Tribal governments were
disproportionately impacted by the
pandemic. While many commenters
supported the interim final rule's
recognition of disproportionate impacts
of the pandemic on low-income
communities, many commenters
disagreed with treating QCTs as the only
presumed eligible group of
disproportionately impacted
households, apart from households
served by Tribal governments. While
acknowledging a potential increase in
administrative burden, commenters
recommended that Treasury presume
other households or geographic areas, in
addition to QCTs, were
disproportionately impacted;
suggestions included all low- and
moderate -income households,
geographic areas designated as
Opportunity Zones, Difficult
Development Areas (DDAs), areas with
a certain amount of Real Estate
Advantage Program (REAP) recipients,
or use of eligibility criteria from the
Community Reinvestment Act. One
commenter generally recommended that
a clearer definition of
"disproportionately impacted" should
be provided and that any definition
should include communities of color
and people of limited means. Another
recommended specific eligibility for
people that had recently interacted with
the criminal justice system. Many
commenters representing Tribal
governments and groups recommended
a presumption of eligibility for all Tribal
uses of funds, clarification that off
reservation members remained eligible,
and broad flexibility on use of funds.
Additionally, commenters noted that
some areas are technically eligible to be
QCTs but fall short because of the
aggregate population of eligible tracts.
One commenter noted that these areas
should be considered the same as QCTs
for the purpose of SLFRF funds. Some
commenters argued that rural counties
typically have few QCTs despite high
levels of poverty and disruption caused
by the COVID-19 pandemic. Other rural
commenters recommended that the
designation be by county rather than at
a more granular level, arguing that the
QCT designation is biased towards
urban areas and understates the harm
done to rural America. Many
commenters representing Tribal
governments supported the
presumption that services provided by
Tribal governments respond to
disproportionate impacts.
Treasury Response
Summary: While households residing
in QCTs or served by Tribal
governments were presumed to be
disproportionately impacted, Treasury
emphasizes that under the interim final
rule recipients could also identify other
households, populations, or geographic
areas that were disproportionately
impacted by the pandemic and provide
services to respond.
The final rule maintains the
presumptions identified in the interim
final rule, as well as recipients' ability
to identify other impacted or
disproportionately impacted classes.
The final rule also allows recipients to
presume that low-income households
were disproportionately impacted, and
as discussed above, defines low- and
moderate -income. Finally, under the
final rule recipients may also presume
that households residing in the U.S.
territories or receiving services from
territorial governments were
disproportionately impacted.
Households presumed to be impacted:
Impacted households are those that
experienced a public health or negative
economic impact from the pandemic.
With regard to public health impacts,
recipients may presume that the general
public experienced public health
impacts from the pandemic for the
purposes of providing services for
COVID-19 mitigation and behavioral
health. In other words, recipients may
provide a wide range of enumerated
eligible uses in these categories to the
general public without further analysis.
As discussed in the introduction,
COVID-19 as a disease has directly
affected the health of tens of millions of
Americans, and efforts to prevent and
mitigate the spread of the disease are
needed and in use across the country.
Further, the stress of the pandemic and
resulting recession have affected nearly
all Americans. Accordingly, the final
rule presumes that the general public
are impacted by and eligible for services
to respond to COVID-19 mitigation and
prevention needs, as well as behavioral
health needs.
With regard to negative economic
impacts, as with the interim final rule,
under the final rule recipients may
presume that a household or population
that experienced unemployment,
experienced increased food or housing
insecurity, or is low- or moderate -
income experienced negative economic
impacts resulting from the pandemic.
The final rule's definition of low- and
moderate -income, by providing
standard metrics based on widely
available data, is intended to simplify
administration for recipients.
Households presumed to be
disproportionately impacted:
Disproportionately impacted
households are those that experienced a
4348 Federal Register / Vol. 87, No. 18 / Thursday, January 27, 2022 /Rules and Regulations disproportionate, or meaningfully more
severe, impact from the pandemic. As
discussed in the interim final rule, pre-
existing disparities in health and
economic outcomes magnified the
impact of the COVID-19 public health
emergency on certain households and
communities. As with the interim final
rule, under the final rule recipients may
presume that households residing in
QCTs or receiving services provided by
Tribal governments were
disproportionately impacted by the
pandemic. In addition, under the final
rule recipients may presume that low-
income households were
disproportionately impacted by the
pandemic. Finally, under the final rule
recipients may also presume that
households residing in the U.S.
territories or receiving services from
territorial governments were
disproportionately impacted.
Treasury notes that households
presumed to be disproportionately
impacted would also be presumptively
impacted, as these households have not
only experienced pandemic impacts but
have experienced disproportionate
pandemic impacts; as a result, these
households are presumptively eligible
for responsive services for both
impacted and disproportionately
impacted households.
Many different geographic, income -
based, or poverty -based presumptions
could be used to designate
disproportionately impacted
populations. The combination of
permitting recipients to use QCTs, low-
income households, and services
provided by Tribal or territorial
governments as presumptions balances
these varying methods. Specifically,
QCTs are a commonly used designation
of geographic areas based on low
incomes or high poverty rates of
households in the community; for
recipients providing geographically
targeted services, QCTs may provide a
simple metric with readily available
maps for use. However, Treasury
recognizes that QCTs do not capture all
underserved populations, including for
reasons noted by commenters. By
allowing recipients to also presume that
low-income households were
disproportionately impacted, the final
rule provides greater flexibility to serve
underserved households or
communities. Data on household
incomes is also readily available at
varying levels of geographic granularity
(e.g., Census Tracts, counties), again
permitting flexibility to adapt to local
circumstances and needs. Finally,
Treasury notes that, as discussed further
below, recipients may also identify
other households, populations, and
communities disproportionately
impacted by the pandemic, in addition
to those presumed to be
disproportionately impacted.
Additionally, Tribal and territorial
governments may face both
disproportionate impacts of the
pandemic and administrability
challenges with operationalizing the
income -based standard; therefore,
Treasury has presumed that services
provided by these governments respond
to disproportionate pandemic impacts.
Given a lack of regularly published data
on household incomes in most
territories,32 as well as a lack of poverty
guidelines developed for these
jurisdictions,33 it may be highly
challenging to assess disproportionate
impact in these communities according
to an income- or poverty -based
standard. Similarly, data on incomes in
Tribal communities are not readily
available.34 Finally, as described in the
sections on Public Health and Negative
Economic Impacts, Tribal communities
have faced particularly severe health
and economic impacts of the pandemic.
Similarly, available research suggests
that preexisting health and economic
disparities in the territories amplified
the impact of the pandemic on these
communities.35
Categorical Eligibility
Public Comment: Several commenters
suggested that the final rule permit
recipients to rely on a beneficiary's
eligibility for other federal benefits
programs as an easily administrable
proxy for identifying a group or
population that experienced a negative
economic impact as a result of the
COVID-19 public health emergency
(Le., categorical eligibility). In other
words, a recipient would determine that
individuals or households are eligible
for an SLFRF-funded program based on
the individual or household's eligibility
in another program, typically another
federal benefit program. Commenters
noted that categorical eligibility is a
common policy in program
32 For instance, the American Community Survey
does not include all territories. U.S. Census Bureau,
Areas Published, https://www.census.gov/
programs-surveys/acs/geography-acs/areas-
published.html (last visited November 9, 2021).
33 U.S. Department of Health and Human
Services, supra note 24.
34 For instance, data from the American
Community Survey is based on geographical
location rather than Tribal membership. U.S.
Census Bureau, My Tribal Area, https://
www.census.gov/Tribal/Tribal_glossary.php .
35 Line Stoylar et. al., Challenges in the U.S.
Territories: COVID-19 and the Medicaid Financing
Cliff, Kaiser Family Foundation (May 18, 2021),
https://www.kff . org/coronavirus-covid-19/issue-
brief/challenges-in-the-u-s-territories-covid-19-and-
the-medicaid financing -cliff/.
administration that can significantly
ease administrative burden on both
program administrators and
beneficiaries.
Treasury Response: Treasury agrees
that allowing recipients to identify
impacted and disproportionately
impacted beneficiaries based on their
eligibility for other programs with
similar income tests would ease
administrative burden. To the extent
that the other program's eligibility
criteria align with a population or class
that experienced a negative economic
impact of the pandemic, this approach
is also consistent with the process
allowed under the final rule for
recipients to determine that a class has
experienced a negative economic
impact, and then document that an
individual receiving services is a
member of the class. For these reasons,
the final rule recognizes categorical
eligibility for the following programs
and populations:
• Impacted households. Treasury will
recognize a household as impacted if it
otherwise qualifies for any of the
following programs:
o Children's Health Insurance
Program (CHIP)
o Childcare Subsidies through the
Child Care and Development Fund
(CCDF) Program
o Medicaid
o National Housing Trust Fund
(HTF), for affordable housing programs
only
o Home Investment Partnerships
Program (HOME), for affordable housing
programs only
• Disproportionately impacted
households. Treasury will recognize a
household as disproportionately
impacted if it otherwise qualifies for any
of the following programs:
o Temporary Assistance for Needy
Families (TANF)
o Supplemental Nutrition Assistance
Program (SNAP)
o Free and Reduced -Price Lunch
(NSLP) and/or School Breakfast (SBP)
programs
o Medicare Part D Low-income
Subsidies
o Supplemental Security Income
(SSI)
o Head Start and/or Early Head Start
o Special Supplemental Nutrition
Program for Women, Infants, and
Children (WIC)
o Section 8 Vouchers
o Low -Income Home Energy
Assistance Program (LIHEAP)
o Pell Grants
o For services to address educational
disparities, Treasury will recognize Title
Federal Register / Vol. 87, No. 18 / Thursday, January 27, 2022 / Rules and Regulations 4349 I eligible schools 36 as
disproportionately impacted and
responsive services that support the
school generally or support the whole
school as eligible
c. Standards for Identifying Other
Eligible Populations
Standards: Designating Other Impacted
Classes
Public Comment: Treasury received
multiple comments requesting
additional clarification about how
classes of impacted individuals may be
designated, as well as questions asking
whether recipients must demonstrate a
specific public health or negative
economic impact to each entity served
(e.g., each household receiving
assistance under a program). There were
several comments requesting that
specific geographic designations, like a
county or Impact Zone, be eligible to
use as a determining boundary.
Treasury Response: The interim final
rule allowed, and the final rule
maintains, the ability for recipients to
demonstrate a public health or negative
economic impact on a class and to
provide assistance to beneficiaries that
fall within that class. Consistent with
the scope of beneficiaries included in
sections 602(c)(1)(A) and 603(c)(1)(A) of
the Social Security Act, Treasury is
clarifying that a recipient may identify
such impacts for a class of households,
small businesses, or nonprofits. In such
cases, the recipient need only
demonstrate that the household, small
business, or nonprofit is within the
relevant class. For example, a recipient
could determine that restaurants in the
downtown area had generally
experienced a negative economic impact
and provide assistance to those small
businesses to respond. When providing
this assistance, the recipient would only
need to demonstrate that the small
businesses receiving assistance were
restaurants in the downtown area. The
recipient would not need to
demonstrate that each restaurant served
experienced its own negative economic
impact.
In identifying an impacted class and
responsive program, service, or capital
expenditure, recipients should consider
the relationship between the definition
of the class and proposed response.
Larger and less -specific classes are less
likely to have experienced similar
harms and thus the responses are less
36 Title I eligible schools means schools eligible to
receive services under section 1113 of Title I, Part
A of the Elementary and Secondary Education Act
of 1965, as amended (20 U.S.C. 6313), including
schools served under section 1113(b)(1)(C) of that
Act.
likely to be responsive to the harms
identified. That is, as the group of
entities being served by a program has
a wider set of fact patterns, or the type
of entities, their circumstances, or their
pandemic experiences differ more
substantially, it may be more difficult to
determine that the class has actually
experienced the same or similar
negative economic impact and that the
response is appropriately tailored to
address that impact.
Standard: Designating Other
Disproportionately Impacted Classes
Summary of Interim Final Rule: As
noted above, the interim final rule
provided a broad set of enumerated
eligible uses of funds in
disproportionately impacted
communities, including to address pre-
existing disparities that contributed to
more severe pandemic impacts in these
communities. The interim final rule
presumed that these services are eligible
uses when provided in a QCT, to
families and individuals living in QCTs,
or when these services are provided by
Tribal governments. Recipients may also
provide these services to "other
populations, households, or geographic
areas disproportionately impacted by
the pandemic" and, in identifying these
disproportionately impacted
communities, should be able to support
their determination that the pandemic
resulted in disproportionate public
health or economic outcomes to the
group identified.
Public Comment: A significant
number of commenters expressed
uncertainty regarding the process for
determining eligibility for
disproportionately impacted
communities beyond QCTs. A
commenter noted that a clearer
definition of "disproportionately
impacted" should be delineated and
that any definition should include
communities of color and people of
limited means. Some commenters
suggested a template or checklist to see
if an area meets the standard for
disproportionately impacted
communities outside of QCTs. Some
commenters stated that QCT and non-
QCT beneficiaries should be treated the
same.
Treasury Response: Under the interim
final rule, presuming eligibility for
services in QCTs, for populations living
in QCTs, and for Tribal governments
was intended to ease administrative
burden, providing a simple path for
recipients to offer services in
underserved communities, and is not an
exhaustive list of disproportionately
impacted communities. To further
clarify, the final rule codifies the
interpretive framework discussed above,
including presumptions of groups
disproportionately impacted, as well as
the ability to identify other
disproportionately impacted
populations, households, or geographies
(referred to here as disproportionately
impacted classes).
As discussed in the interim final rule,
in identifying other disproportionately
impacted classes, recipients should be
able to support their determination that
the pandemic resulted in
disproportionate public health or
economic outcomes to the specific
populations, households, or geographic
areas to be served. For example, the
interim final rule considered data
regarding the rate of COVID-19
infections and deaths in low-income
and socially vulnerable communities,
noting that these communities have
experienced the most severe health
impacts, compared to national averages.
Similarly, the interim final rule
considered the high concentration of
low-income workers performing
essential work, the reduced ability to
socially distance, and other pre-existing
public health challenges, all of which
correlate with more severe COVID-19
outcomes. The interim final rule also
considered the disproportionate
economic impacts of the pandemic,
citing, for example, the rate of job losses
among low-income persons as compared
to the general population. The interim
final rule then identified QCTs, a
common, readily accessible, and
geographically granular method of
identifying communities with a large
proportion of low-income residents, as
presumed to be disproportionately
impacted by the pandemic.
In other words, the interim final rule
identified disproportionately impacted
populations by assessing the impacts of
the pandemic and finding that some
populations experienced meaningfully
more severe impacts than the general
public. Similarly, to identify
disproportionately impacted classes,
recipients should compare the impacts
experienced by that class to the typical
or average impacts of the pandemic in
their local area, state, or nationally.
Recipients may identify classes of
households, communities, small
businesses, nonprofits, or populations
that have experienced a
disproportionate impact based on
academic research or government
research publications, through analysis
of their own data, or through analysis of
other existing data sources. To augment
their analysis, or when quantitative data
is not readily available, recipients may
also consider qualitative research and
sources like resident interviews or
4350 Federal Register / Vol. 87, No. 18 / Thursday, January 27, 2022 / Rules and Regulations feedback from relevant state and local
agencies, such as public health
departments or social services
departments. In both cases, recipients
should consider the quality of the
research, data, and applicability of
analysis to their determination.
In designing a program or service that
responds to a disproportionately
impacted class, a recipient must first
identify the impact and then identify an
appropriate response. To assess
disproportionate impact, recipients
should rely on data or research that
measures the public health or negative
economic impact. An assessment of the
effects of a response (e.g., survey data on
levels of resident support for various
potential responses) is not a substitute
for an assessment of the impact
experienced by a particular class. Data
about the appropriateness or desirability
of a response may be used to assess the
reasonableness of a response, once an
impact or disproportionate impact has
been identified but should not be the
basis for assessing impact.
2. Public Health
Background
On January 21, 2020, the Centers for
Disease Control and Prevention (CDC)
identified the first case of novel
coronavirus in the United States.37
Since that time, and through present
day, the United States has faced
numerous waves of the virus that have
brought acute strain on health care and
public health systems. At various points
in the pandemic, hospitals and
emergency medical services have seen
significant influxes of patients; response
personnel have faced shortages of
personal protective equipment; testing
for the virus has been scarce; and
congregate living facilities like nursing
homes have seen rapid spread.
Since the initial wave of the COVID-
19 pandemic, the United States has
faced several additional major waves
that continued to impact communities
and stretch public health services. The
summer 2020 wave impacted
communities in the south and
southwest. As the weather turned colder
and people spent more time indoors, a
wave throughout fall and winter 2020
impacted communities in almost every
region of the country as the virus
reached a point of uncontrolled spread
and over 3,000 people died per day due
to COVID-19.38
37 Press Release, Centers for Disease Control and
Prevention, First Travel -related Case of 2019 Novel
Coronavirus Detected in United States (Jan. 21,
2020), https://www.cdc.gov/media/releases/2020/
p0121-novel-coronavirus-travel-case.html.
38 Centers for Disease Control and Prevention,
COVID Data Tracker: Trends in Number of COVID—
In December 2020, the Food and Drug
Administration (FDA) authorized
COVID-19 vaccines for emergency use,
and soon thereafter, mass vaccination in
the United States began. At the time of
the interim final rule publication in May
2021, the number of daily new
infections was steeply declining as
rapid vaccination campaigns progressed
across the country. By summer 2021,
COVID-19 cases had fallen to their
lowest level since early months of the
pandemic, when testing was scarce.
However, throughout late summer and
early fall, the Delta variant, a more
infectious and transmittable variant of
the SARS—CoV-2 virus, sparked yet
another surge. From June to early
September, the seven-day moving
average of reported cases rose from
12,000 to 165,000.39
As of December 2021, COVID-19 in
total has infected over 50 million and
killed over 800,000 Americans.40
Preventing and mitigating the spread of
COVID-19 continues to require a major
public health response from federal,
state, local, and Tribal governments.
First, state, local, and Tribal
governments across the country have
mobilized to support the national
vaccination campaign. As of December
2021, more than 80 percent of adults
have received at least one dose, with
more than 470 million total doses
administered.41 Additionally, more than
15 million children over the age of 12
have received at least one dose of the
vaccine and over 47 million people have
received a booster dose.42 Vaccines for
younger children, ages 5 through 11,
have been approved and are reaching
communities and families across the
country. As new variants continue to
emerge globally, the national effort to
administer vaccinations and other
COVID-19 mitigation strategies will be
a critical component of the public
health response.
In early reporting on uses of SLFRF
funds, recipients have indicated that
they plan to put funds to immediate use
to support continued vaccination
campaigns. For example, one recipient
has indicated that it plans to use SLFRF
19 Cases and Deaths in the US Reported to CDC,
by State/Territory, https://covid.cdc.gov/covid-data-
tracker/#trends_dailytrendscases (last visited
December 7, 2021).
39 Id.
40 Centers for Disease Control and Prevention,
COVID Data Tracker, http://www.covid.cdc.gov/
covid-data-tracker/#datatracker-home (last visited
December 31, 2021).
41 Centers for Disease Control and Prevention,
COVID Data Tracker: COVID-19 Vaccinations in the
United States, https://covid.cdc.gov/covid-data-
tracker/#vaccinations (last visited December 7,
2021).
42 Id.
funds to support a vaccine incentive
program, providing $100 gift cards to
residents at community vaccination
clinics. The program aimed to target
communities with high public health
needs.43 Another recipient reported that
it is partnering with multiple agencies,
organizations, and providers to
distribute COVID-19 vaccinations to
homebound residents in assisted living
facilities.44
State, local, and Tribal governments
have also continued to execute other
aspects of a wide-ranging public health
response, including increasing access to
COVID-19 testing and rapid at-home
tests, contact tracing, support for
individuals in isolation or quarantine,
enforcement of public health orders,
new public communication efforts,
public health surveillance (e.g.,
monitoring case trends and genomic
sequencing for variants), enhancement
to health care capacity through
alternative care facilities, and
enhancement of public health data
systems to meet new demands or scaling
needs.
State, local, and Tribal governments
have also supported major efforts to
prevent COVID-19 spread through
safety measures at key settings like
nursing homes, schools, congregate
living settings, dense worksites,
incarceration settings, and in other
public facilities. This has included, for
example, implementing infection
prevention measures or making
ventilation improvements.
In particular, state, local, and Tribal
governments have mounted significant
efforts to safely reopen schools. A key
factor in school reopening is the ability
to implement COVID-19 mitigation
strategies such as providing masks and
other hygiene resources, improving air -
quality and ventilation, increasing
outdoor learning and eating spaces,
testing and contact tracing protocols,
and a number of other measures.45 For
example, one recipient described plans
to use SLFRF funds to further invest in
school health resources that were
critical components of school reopening
and reducing the spread of COVID-19 in
schools. Those investments include the
increasing school nurses and social
43 Columbus, Ohio Recovery Plan, https://
www.columbus.gov/recoveiy/ .
44 Luzerne County, Pennsylvania Recovery Plan,
https://www.luzernecounty.org/DocumentCenter/
Vie w/26304/Final-In terim-Recovery-PI an-
Perf orm an ce-Re p ort-83121.
45 This includes implementing mitigation
strategies consistent with the Centers for Disease
Control and Prevention's (CDC) Guidance for
COVID-19 Prevention in K-12 Schools (November
5, 2021), available at https://www.cdc.gov/
coronavirus/2019-ncov/community/schools-
chil dcare/k-12-gui dance.h tml.
Federal Register / Vol. 87, No. 18 / Thursday, January 27, 2022 /Rules and Regulations 4351
workers, improved ventilation systems,
and other health and safety measures.
The need for public health measures
to respond to COVID-19 will continue
moving forward. This includes the
continuation of vaccination campaigns
for the general public, booster doses,
and children. This also includes
monitoring the spread of COVID-19
variants, understanding the impact of
these variants, developing approaches to
respond, and monitoring global COVID-
19 trends. Finally, the long-term health
impacts of COVID-19 will continue to
require a public health response,
including medical services for
individuals with "long COVID," and
research to understand how COVID-19
impacts future health needs and raises
risks for the tens of millions of
Americans who have been infected.
The COVID-19 pandemic also
negatively impacted other areas of
public health, particularly mental health
and substance use. In January 2021, over
40 percent of American adults reported
symptoms of depression or anxiety, up
from 11 percent in the first half of
2019.46 The mental health impacts of
the pandemic have been particularly
acute for adults ages 18 to 24, racial and
ethnic minorities, caregivers for adults,
and essential workers, with all reporting
significantly higher rates of considering
suicide.47 The proportion of children's
emergency department visits related to
mental health has also risen
noticeably.48 Similarly, rates of
substance use and overdose deaths have
spiked: Preliminary data from the CDC
show a nearly 30 percent increase in
drug overdose mortality from April 2020
to April 2021, bringing the estimated
overdose death toll for a 12 -month
period over 100,000 for the first time
ever.49 The CDC also found that 13
percent of adults started or increased
46 Nirmita Panchal et al., The Implications of
COVID-19 for Mental Health and Substance Abuse
(Feb. 10, 2021), https://www.kff.org/coronavirus
covid-19/issue-brief/the-im plications-of-covid-19-
for-m en tal -health -and -substance-use/# :—:text=
Older%20adults%20are%20also%20 more,
prior%20to%2othe%20current%20crisis; Mark E.
Czeisler et al., Mental Health, Substance Abuse, and
Suicidal Ideation During COVID-19 Pandemic —
United States, June 24-30 2020, Morb. Mortal.
Wkly. Rep. 69(32):1049-57 (Aug. 14, 2020), https://
www.cdc.gov/mmwr/volumes/69/wr/
mm6932a1.htm.
47Id.
48 Rebecca T. Leeb et al., Mental Health -Related
Emergency Department Visits Among Children
Aged https://www.cdc.gov/mmwr/volumes/69/wr/
mm6945a3.htm.
49 Centers for Disease Prevention and Control,
National Center for Health Statistics, Provisional
Drug Overdose Death Counts, https://www.cdc.gov/
nchs/nvss/vsrr/drug-overdose-data.htm (last visited
May 8 December 6, 2021).
substance use to cope with stress related
to COVID-19 and 26 percent reported
having symptoms of trauma- and
stressor-related disorder (TRSD) related
to the pandemic.5o
Another public health challenge
exacerbated by the pandemic was
violent crime and gun violence, which
increased during the pandemic and has
disproportionately impacted low-
income communities.51 According to
the Federal Bureau of Investigation
(FBI), although the property crime rate
fell 8 percent in 2020, the violent crime
rate increased 6 percent in 2020
compared to 2019 data.52 In particular,
the estimated number of aggravated
assault offenses rose 12 percent, while
murder and manslaughter increased 30
percent from 2019 to 2020.53 The
proportion of homicides committed
with firearms rose from 73 percent in
2019 to 76 percent in 2020.54 Exposure
to violence can create serious short-term
and long-term harmful effects to health
and development, and repeated
exposure to violence may be connected
to negative health outcomes.55
Addressing community violence as a
public health issue may help prevent
and even reduce additional harm to
individuals, households, and
communities. 56
Many communities are using SLFRF
funds to invest in holistic approaches in
violence prevention that are rooted in
targeted outreach and addressing root
causes. For example, the City of St.
Louis is planning to invest in expanding
a "community responder" model
designed to provide clinical help and to
divert non-violent calls away from the
police department. Additionally, the
city will expand access to mental health
services, allowing residents to seek
support at city recreation centers,
50Panchal, supra note 46; Mark E. Czeisler et al.,
supra note 46.
51 The White House, FACT SHEET: More Details
on the Biden-Harris Administration's Investments
in Community Violence Interventions (April 7,
2021), https://www.whitehouse.gov/briefing-room/
statements-releases/2021 /04/07/fact-sheet-more-
details-on-the-biden-harris-administrations-
investments-in-comm unity -violence -interventions/.
52 Federal Bureau of Investigation, FBI Releases
2020 Crime Statistics (September 27, 2021) https://
www. f bi.gov/news/pressrel/press-releases/fbi-
releases-2020-crime-statistics.
53 Id.
54 Id.
55 The Educational Fund to Stop Gun Violence,
Community Gun Violence, https://efsgv.org/learn/
type-of-gun-violence/community-gun-violence/ (last
visited November 9, 2021).
56 Giffords Law Center, Healing Communities in
Crisis: Lifesaving Solutions to the Urban Gun
Violence Epidemic (March 2016), https://giffords .
org/wp-content/uploads/2019/01/Healing-
Comm uniti es -in -Crisis. pd f.
libraries, and other public spaces.57
Similarly, Los Angeles County will
further invest in its "Care First, Jails
Last" program which seeks to replace
"arrest and incarceration" responses
with health interventions.58
While the pandemic affected
communities across the country, it
disproportionately impacted some
demographic groups and exacerbated
health inequities along racial, ethnic,
and socioeconomic lines.59 The CDC
has found that racial and ethnic
minorities are at increased risk for
infection, hospitalization, and death
from COVID-19, with Hispanic or
Latino and Native American or Alaska
Native patients at highest risk.°°
Similarly, low-income and socially
vulnerable communities have seen the
most severe health impacts. For
example, counties with high poverty
rates also have the highest rates of
infections and deaths, with 308 deaths
per 100,000 compared to the U.S.
average of 238 deaths per 100,000, as of
December 2021.61 Counties with high
social vulnerability, as measured by
factors such as poverty and educational
attainment, have also fared more poorly
than the national average, with 325
deaths per 100,000 as of December
2021.62 Over the course of the
57 St. Louis, MO Recovery Plan, https://
www.stlouis-mo.gov/government/recovery/covid-19/
arpa/plan/.
58 Los Angeles County, CA Recovery Plan, http://
file.lacounty.gov/SDSInter/bos/supdocs/
160391.pdf.
59 Office of the White House, National Strategy for
the COVID-19 Response and Pandemic
Preparedness (Jan. 21, 2021), https://
www.whitehouse.gov/wp-content/uploads/2021/01/
Nati on al-Strategy-for-the-COVID-19-Response-an d -
Pandemic -Preparedness. pd f.
69 In a study of 13 states from October to
December 2020, the CDC found that Hispanic or
Latino and Native American or Alaska Native
individuals were 1.7 times more likely to visit an
emergency room for COVID-19 than White
individuals, and Black individuals were 1.4 times
more likely to do so than White individuals. See
Sebastian D. Romano et al., Trends in Racial and
Ethnic Disparities in COVID-19 Hospitalizations,
by Region —United States, March —December 2020,
MMWR Morb Mortal Wkly Rep 2021, 70:560-565
(Apr. 16, 2021), https://www.cdc.gov/mmwr/
volumes/70/wr/mm7015e2.htm?s cid=mm7015e2
W.
61 Centers for Disease Control and Prevention,
COVID Data Tracker: Trends in COVID-19 Cases
and Deaths in the United States, by County -level
Population Factors, https://covid.cdc.gov/covid-
data-tracker/#pop factors_totaldeaths (last visited
December 7, 2021).
62 The CDC's Social Vulnerability Index includes
fifteen variables measuring social vulnerability,
including unemployment, poverty, education
levels, single -parent households, disability status,
non-English speaking households, crowded
housing, and transportation access.
Centers for Disease Control and Prevention,
COVID Data Tracker: Trends in COVID-19 Cases
and Deaths in the United States, by Social
Continued
4352 Federal Register / Vol. 87, No. 18 / Thursday, January 27, 2022 / Rules and Regulations pandemic, Native Americans have
experienced more than one and a half
times the rate of COVID-19 infections,
more than triple the rate of
hospitalizations, and more than double
the death rate compared to White
Americans.63 Low-income and minority
communities also exhibit higher rates of
pre-existing conditions that may
contribute to an increased risk of
COVID-19 mortality.64 In addition,
individuals living in low-income
communities may have had more
limited ability to socially distance or to
self -isolate when ill, resulting in faster
spread of the virus, and were over-
represented among essential workers,
who face greater risk of exposure.65
Social distancing measures in
response to the pandemic may have also
exacerbated pre-existing public health
challenges. For example, for children
living in homes with lead paint,
spending substantially more time at
home raises the risk of developing
elevated blood lead levels, while
screenings for elevated blood lead levels
declined during the pandemic.66 The
combination of these underlying social
and health vulnerabilities may have
contributed to more severe public health
outcomes of the pandemic within these
communities, resulting in an
exacerbation of pre-existing disparities
in health outcomes.67
Vulnerability Index, https://covid.cdc.gov/covid-
data-tracker/#pop factors_totaldeaths (last visited
December 7, 2021).
63 Centers for Disease Control and Prevention,
Risk for COVID-19 Infection, Hospitalization, and
Death By Race/Ethnicity, https://www.cdc.gov/
coronavirus/2019-ncov/covid-data/investigations-
discovery/hospitalization-death-by-race-
ethnicity.html (last visited December 7, 2021).
64 See, e.g., Centers for Disease Control and
Prevention, Risk of Severe Illness or Death from
COVID-19 (Dec. 10, 2020), https://www.cdc.gov/
coronavirus/2019-ncov/community/health-equity/
racial-ethnic-disparities/disparities-illness.html
(last visited December 7, 2021).
65 Milena Almagro et al., Racial Disparities in
Frontline Workers and Housing Crowding During
COVID-19: Evidence from Geolocation Data (Sept.
22, 2020), NYU Stern School of Business
(forthcoming), available at https://papers.ssrn.com/
sol3/papers.cfm?abstract_id=3695249; Grace
McCormack et al., Economic Vulnerability of
Households with Essential Workers, JAMA
324(4):388-90 (2020), available at https://jamanet
work.com/journals/jama/fullarticle/2767630.
66 See, e.g., Joseph G. Courtney et al., Decreases
in Young Children Who Received Blood Lead Level
Testing During COVID-19-34 Jurisdictions,
January —May 2020, Morb. Mort. Wkly. Rep.
70(5):155-61 (Feb. 5, 2021), https://www.cdc.gov/
mmwr/volumes/70/wr/mm7005a2.htm; Emily A.
Benfer & Lindsay F. Wiley, Health Justice Strategies
to Combat COVID-19: Protecting Vulnerable
Communities During a Pandemic, Health Affairs
Blog (Mar. 19, 2020), https://www.healthaffairs.org/
do/10.1377/hb1og20200319.757883/f ull/.
fi7 See, e.g., Centers for Disease Control and
Prevention, supra note 62; Benfer & Wiley, supra
note 66; Nathaniel M. Lewis et al., Disparities in
COVID-19 Incidence, Hospitalizations, and Testing,
Summary of the Interim Final Rule
Approach to Public Health
Summary: As discussed above, the
interim final rule provided flexibility for
recipients to pursue a wide range of
eligible uses to "respond to" the
COVID-19 public health emergency.
Uses of funds to "respond to" the public
health emergency address the SARS-
CoV-2 virus itself, support efforts to
prevent or decrease spread of the virus,
and address other impacts of the
pandemic on public health. The interim
final rule implemented these provisions
by identifying a non -exhaustive list of
programs or services that may be funded
as responding to COVID-19
("enumerated eligible uses"), along with
considerations for evaluating other
potential uses of funds not explicitly
listed. Enumerated eligible uses are
discussed below. For guidance on how
to determine whether a particular use is
allowable, beyond those enumerated,
see section Standards: Identifying a
Public Health Impact.
Enumerated eligible uses under this
section built and expanded upon
permissible expenditures under the
Coronavirus Relief Fund; for clarity, the
interim final rule expressly listed as
eligible uses the uses permissible under
the Coronavirus Relief Fund, with
minor exceptions.68 The interim final
rule also recognized that the nature of
the COVID-19 public health emergency,
and responsive policy measures,
programs, and services, had changed
over time and is expected to continue
evolving.
The interim final rule categorized
enumerated eligible uses to respond to
the public health emergency into several
categories: (1) COVID-19 mitigation and
prevention, (2) medical expenses, (3)
behavioral health care, (4) public health
and safety staff, (5) expenses to improve
the design and execution of health and
public health programs, and (6) eligible
uses to address disparities in public
health outcomes. For each category in
turn, this section describes public
comments received and Treasury's
responses, as well as comments received
by Area -Level Deprivation —Utah, March 3 —July 9,
2020, Morb. Mortal. Wkly. Rep. 69(38):1369-73
(Sept. 25, 2020), https://www.cdc.gov/mmwr/
volumes/69/wr/mm6938a4.htm.
68 Generally, funding uses eligible under CRF as
a response to the direct public health impacts of
COVID-19 will continue to be eligible under the
ARPA, including those not explicitly listed in the
final rule, with the following two exceptions: (1)
The standard for eligibility of public health and
safety payrolls has been updated (see section Public
Sector Capacity and Workforce in General
Provisions: Other) and (2) expenses related to the
issuance of tax -anticipation notes are no longer an
eligible funding use (see section Restrictions on
Use: Debt Service).
proposing additional enumerated
eligible uses.
Reorganizations and Cross -
References: In some cases, enumerated
eligible uses included in the interim
final rule under responding to the
public health emergency have been re -
categorized in the organization of the
final rule to enhance clarity. For
discussion of eligible uses for public
health and safety staff and to improve
the design and execution of public
health programs, please see section
Public Sector Capacity and Workforce in
General Provisions: Other. For
discussion of eligible uses to address
disparities in public health outcomes,
please see section Assistance to
Households in Negative Economic
Impacts.
Conversely, discussion of eligible
assistance to small businesses and
nonprofits to respond to public health
impacts has been moved from
Assistance to Small Businesses and
Assistance to Nonprofits in Negative
Economic Impacts to this section. This
change is consistent with the interim
final rule, which provides that
appropriate responses to address the
public health impacts of COVID-19 may
be provided to any type of entity.
a. COVID-19 Mitigation and Prevention
COVID-19 public health response and
mitigation tactics. Recognizing the
broad range of services and
programming needed to contain
COVID-19, the interim final rule
provided an extensive list of
enumerated eligible uses to prevent and
mitigate COVID-19 and made clear that
the public health response to the virus
is expected to continue to evolve over
time, necessitating different uses of
funds.
Enumerated eligible uses of funds in
this category included: Vaccination
programs; medical care; testing; contact
tracing; support for isolation or
quarantine; supports for vulnerable
populations to access medical or public
health services; public health
surveillance (e.g., monitoring case
trends, genomic sequencing for
variants); enforcement of public health
orders; public communication efforts;
enhancement to health care capacity,
including through alternative care
facilities; purchases of personal
protective equipment; support for
prevention, mitigation, or other services
in congregate living facilities (e.g.,
nursing homes, incarceration settings,
homeless shelters, group living
facilities) and other key settings like
schools; ventilation improvements in
congregate settings, health care settings,
or other key locations; enhancement of
Federal Register / Vol. 87, No. 18 / Thursday, January 27, 2022 / Rules and Regulations 4353
public health data systems; other public
health responses; and capital
investments in public facilities to meet
pandemic operational needs, such as
physical plant improvements to public
hospitals and health clinics or
adaptations to public buildings to
implement COVID-19 mitigation tactics.
These enumerated uses are consistent
with guidance from public health
authorities, including the CDC.
Public Comment: Many commenters
were supportive of expansive
enumerated eligible uses for mitigating
and preventing COVID-19, noting the
wide range of activities that
governments may undertake and the
continued changing landscape of
pandemic response. Some commenters
requested that Treasury engage in
ongoing consideration of and
consultation on evolving public health
needs and resulting eligible expenses.
Some commenters noted that their
jurisdiction does not have an official
public health program, for example
smaller jurisdictions or those that do not
have a health department, and requested
clarification on whether their public
health expenses would still be eligible
in compliance with program rules.
Treasury Response: In the final rule,
Treasury is maintaining an expansive
list of enumerated eligible uses to
mitigate and prevent COVID-19, given
the wide-ranging activities that
governments may take to further these
goals, including "other public health
responses." Note that the final rule
discusses several of these enumerated
uses in more detail below.
Treasury is further clarifying that
when providing COVID-19 prevention
and mitigation services, recipients can
identify the impacted population as the
general public. Treasury presumes that
all enumerated eligible uses for
programs and services, including
COVID-19 mitigation and prevention
programs and services, are reasonably
proportional responses to the harm
identified unless a response is grossly
disproportionate to the type or extent of
harm experienced. Note that capital
expenditures are not considered
"programs and services" and are not
presumed to be reasonably proportional
responses to an identified harm except
as provided in section Capital
Expenditures in General Provisions:
Other. In other words, recipients can
provide any COVID-19 prevention or
mitigation service to members of the
general public without any further
analysis of impacts of the pandemic on
those individuals and whether the
service is responsive.
This approach gives recipient
governments an extensive set of eligible
uses that can adapt to local needs, as
well as evolving response needs and
developments in understanding of
transmission of COVID-19. Treasury
emphasizes how the enumerated
eligible uses can adapt to changing
circumstances. For example, when the
interim final rule was released, national
daily COVID-19 cases were at relatively
low levels and declining; 69 as the Delta
variant spread and cases peaked in
many areas of the country, particularly
those with low vaccination rates,
government response needs and tactics
evolved, and the SLFRF funds provided
the ability to quickly and nimbly adapt
to new public health needs. Treasury
also notes that funds may be used to
support compliance with and
implementation of COVID-19 safety
requirements, including vaccination
requirements, testing programs, or other
required practices.
Recipient governments do not need to
have an official health or public health
program in order to utilize these eligible
uses; any recipient can pursue these
eligible uses, though Treasury
recommends consulting with health and
public health professionals to support
effective implementation.
The CDC has provided
recommendations and guidelines to
help mitigate and prevent COVID-19.
The interim final rule and final rule
help support recipients in stopping the
spread of COVID-19 through these
recommendations and guidelines.7° The
final rule reflects changing
circumstances of COVID-19 and
provides a broad range of permissible
uses for mitigating and preventing the
spread of the disease, in a manner
consistent with CDC guidelines and
recommendations.
The purpose of the SLFRF funds is to
mitigate the fiscal effects stemming from
the COVID-19 public health emergency,
including by supporting efforts to stop
the spread of the virus. The interim final
rule and final rule implement this
objective by, in part, providing that
recipients may use SLFRF funds for
COVID-19 mitigation and prevention.71
A program or service that imposes
conditions on participation in or
acceptance of the service that would
undermine efforts to stop the spread of
COVID-19 or discourage compliance
with recommendations and guidelines
69 See Centers for Disease Control and Prevention,
COVID Data Tracker, https://covid.cdc.gov/covid-
data-tracker/#trends_dailycases (last visited
December 7, 2021).
70 See Centers for Disease Control and Prevention,
COVID-19, https://www.cdc.gov/coronavirus/2019-
ncov/index.html (last visited November 8, 2021).
71 See § 35.6(b); Coronavirus State and Local
Fiscal Recovery Funds, 86 FR at 26786.
in CDC guidance for stopping the spread
of COVID-19 is not a permissible use of
funds. In other words, recipients may
not use funds for a program that
undermines practices included in the
CDC's guidelines and recommendations
for stopping the spread of COVID-19.
This includes programs that impose a
condition to discourage compliance
with practices in line with CDC
guidance (e.g., paying off fines to
businesses incurred for violation of
COVID-19 vaccination or safety
requirements), as well as programs that
require households, businesses,
nonprofits, or other entities not to use
practices in line with CDC guidance as
a condition of receiving funds (e.g.,
requiring that businesses abstain from
requiring mask use or employee
vaccination as a condition of receiving
SLFRF funds).
Vaccination programs and vaccine
incentives. At the time of the interim
final rule release, many vaccination
programs were using mass vaccination
tactics to rapidly reach Americans en
masse for first vaccine doses.72 Since
that time, the FDA has authorized
booster vaccine doses for certain groups
and certain vaccines and has also
authorized vaccines for youths 73 74 The
inclusion of "vaccination programs" as
an eligible use allows for adaptation as
the needs of programs change or new
groups become eligible for different
types of vaccinations.
Public Comment: Since the release of
the interim final rule, many recipient
governments have also requested
clarification on whether vaccine
incentives are a permissible use of
funds.
Treasury Response: Treasury issued
guidance clarifying that "[vaccine]
programs that provide incentives
reasonably expected to increase the
number of people who choose to get
vaccinated, or that motivate people to
get vaccinated sooner than they
otherwise would have, are an allowable
72 Centers for Disease Control and Prevention,
COVID Data Tracker: COVID-19 Vaccinations in the
United States, https://covid.cdc.gov/covid-data-
tracker/#vaccinations (last visited October 18,
2021).
79 U.S. Food and Drug Administration,
Coronavirus (COVID-19) Update: FDA Takes
Additional Actions on the Use of a Booster Dose for
COVID-19 Vaccines, https://www.fda.gov/news-
events/press-announcements/fda-authorizes-p fizer-
biontech-covid-19-vaccine-emergency-use-children-
5-through-11-years-age (last visited November 8,
2021).
74 U.S. Food and Drug Administration, FDA
Authorizes Pfizer-BioNTech COVID-19 Vaccine for
Emergency Use in Children 5 through 11 Years of
Age, https://www.fda.gov/news-events/press-
ann o u n cem enis/fd a -a u th orizes- p fi zer-bi on to ch - covi d -19 -vaccine -emergency -use -children -5 -
through -11 -years -age (last visited November 8,
2021).
4354 Federal Register / Vol. 87, No. 18 / Thursday, January 27, 2022 / Rules and Regulations use of funds so long as such costs are
reasonably proportional to the expected
public health benefit." 75 This use of
funds remains permissible under the
final rule.
Capital Expenditures
Public Comment: Many commenters
requested clarification around the types
and scope of permissible capital
investments in public facilities to meet
pandemic operational needs; ventilation
improvements in congregate settings,
health care settings, or other key
locations; and whether support for
prevention and mitigation in congregate
facilities could include facilities
renovations, improvements, or
construction of new facilities, or if the
facilities must solely be used for
COVID-19 response.
Treasury Response: For clarity,
Treasury has addressed the eligibility
standard for capital expenditures, or
investments in property, facilities, or
equipment, in one section of this
Supplementary Information; see section
Capital Expenditures in General
Provisions: Other. In recognition of the
importance of capital expenditures in
the COVID-19 public health response,
Treasury enumerates that the following
projects are examples of eligible capital
expenditures, as long as they meet the
standards for capital expenditures in
section Capital Expenditures in General
Provisions: Other:
• Improvements or construction of
COVID-19 testing sites and laboratories,
and acquisition of related equipment;
• Improvements or construction of
COVID-19 vaccination sites;
• Improvements or construction of
medical facilities generally dedicated to
COVID-19 treatment and mitigation
(e.g., emergency rooms, intensive care
units, telemedicine capabilities for
COVID-19 related treatment);
• Expenses of establishing temporary
medical facilities and other measures to
increase COVID-19 treatment capacity,
including related construction costs;
• Acquisition of equipment for
COVID-19 prevention and treatment,
including ventilators, ambulances, and
other medical or emergency services
equipment;
• Improvements to or construction of
emergency operations centers and
acquisition of emergency response
75 Coronavirus State and Local Fiscal Recovery
Funds, Frequently Asked Questions, as of July 19,
2021; https://home.treasury.gov/system/files/136/
SLFRPFAQ.pdf. Note that programs may provide
incentives to individuals who have already received
a vaccination if the incentive is reasonably expected
to increase the number of people who choose to get
vaccinated or motivate people to get vaccinated
sooner and the costs are reasonably proportional to
the expected public health benefit.
equipment (e.g., emergency response
radio systems);
• Installation and improvements of
ventilation systems;
• Costs of establishing public health
data systems, including technology
infrastructure;
• Adaptations to congregate living
facilities, including skilled nursing
facilities, other long-term care facilities,
incarceration settings, homeless
shelters, residential foster care facilities,
residential behavioral health treatment,
and other group living facilities, as well
as public facilities and schools
(excluding construction of new facilities
for the purpose of mitigating spread of
COVID-19 in the facility); and
• Mitigation measures in small
businesses, nonprofits, and impacted
industries (e.g., developing outdoor
spaces).
Other clarifications on COVID-19
mitigation: Medical care, supports for
vulnerable populations, data systems,
carceral settings. Based on public
comments and questions received from
recipients following the interim final
rule, Treasury is making several further
clarifications on enumerated eligible
uses in this category.
Public Comment: Several commenters
requested clarification on eligible uses
of funds for medical care; Treasury
addresses those comments in the section
Medical Expenses below.
Public Comment: Recipients posed
questions on the type and scope of
activities eligible as "supports for
vulnerable populations to access
medical or public health services."
Treasury Response: Enumerated
eligible uses should be considered in
the context of the eligible use category
or section where they appear; in this
case, "supports for vulnerable
populations to access medical or public
health services" appears in the section
COVID-19 Mitigation and Prevention.
As such, these eligible uses should help
vulnerable or high -risk populations
access services that mitigate COVID-19,
for example, transportation assistance to
reach vaccination sites, mobile
vaccination or testing programs, or on -
site vaccination or testing services for
homebound individuals, those in group
homes, or similar settings.
Public Comment: Some commenters
asked whether "enhancement of public
health data systems" could include
investments in software, databases, and
other information technology resources
that support responses to the COVID-19
public health emergency but also
provide benefits for other use cases and
long-term capacity of public health
departments and systems.
Treasury Response: These are
permissible uses of funds under the
interim final rule and remain eligible
under the final rule.
Assistance to Businesses and Nonprofits
To Implement COVID-19 Mitigation
Strategies
Background: As detailed above,
Treasury received many public
comments describing uncertainty about
which eligible use category should be
used to assess different potential uses of
funds. As a result, Treasury has re -
categorized some uses of funds in the
final rule to provide greater clarity,
consistent with the principle that uses
of funds should be assessed based on
their intended beneficiary. For example,
COVID-19 mitigation and prevention
serves the general public or specific
populations within the public.
However, in the interim final rule,
assistance to small businesses,
nonprofits, and impacted industries to
implement COVID-19 mitigation and
prevention strategies was categorized in
the respective sections within Negative
Economic Impacts. The final rule
consolidates all COVID-19 mitigation
and prevention within Public Health.
Public Comment: Treasury has
received multiple comments and
questions about which eligible use
permits the recipient to provide
assistance to businesses and nonprofits
to address the public health impacts of
COVID-19.
Treasury Response: In the final rule,
these services have been re -categorized
under COVID-19 mitigation and
prevention to reflect the fact that this
assistance responds to public health
impacts of the pandemic rather than the
negative economic impacts to a small
business, nonprofit, or impacted
industry. When providing COVID-19
mitigation and prevention services,
recipients can identify the impacted
entity as small businesses, nonprofits, or
businesses in impacted industries in
general. As with all enumerated eligible
uses, recipients may presume that all
COVID-19 mitigation and prevention
programs and services are reasonably
proportional responses to the harm
identified unless a response is grossly
disproportionate to the type or extent of
harm experienced. Note that capital
expenditures are not considered
"programs and services" and are not
presumed to be reasonably proportional
responses to an identified harm except
as provided in section Capital
Expenditures in General Provisions:
Other. In other words, recipients can
provide any COVID-19 prevention or
mitigation service to small businesses,
nonprofits, and businesses in impacted
Federal Register / Vol. 87, No. 18 / Thursday, January 27, 2022 / Rules and Regulations 4355 industries without any further analysis
of impacts of the pandemic on those
entities and whether the service is
responsive.
In some cases, this means that an
entity not otherwise eligible to receive
assistance to respond to negative
economic impacts of the pandemic, for
example an entity that did not
experience a negative economic impact,
may still be eligible to receive assistance
under this category for COVID-19
mitigation and prevention services.
Uses of funds can include loans,
grants, or in -kind assistance to small
businesses, nonprofits, or other entities
to implement COVID-19 prevention or
mitigation tactics, such as vaccination;
testing; contact tracing programs;
physical plant changes to enable greater
use of outdoor spaces or ventilation
improvements; enhanced cleaning
efforts; and barriers or partitions. For
example, this would include assistance
to a restaurant to establish an outdoor
patio, given evidence showing much
lower risk of COVID-19 transmission
outdoors.76 Uses of funds can also
include aid to travel, tourism,
hospitality, and other impacted
industries to implement COVID-19
mitigation and prevention measures to
enable safe reopening, for example,
vaccination or testing programs,
improvements to ventilation, physical
barriers or partitions, signage to
facilitate social distancing, provision of
masks or personal protective equipment,
or consultation with infection
prevention professionals to develop safe
reopening plans.
Recipients providing assistance to
small businesses, nonprofits, or
impacted industries that includes
capital expenditures (i.e., expenditures
on property, facilities, or equipment)
should also review the section Capital
Expenditures in General Provisions:
Other, which describes eligibility
standards for these expenditures.
Recipients providing assistances in the
form of loans should review the section
Treatment of Loans Made with SLFRF
Funds in General Provisions: Other.
Recipients should also be aware of the
difference between beneficiaries of
assistance and subrecipients when
working with small businesses,
nonprofits, or impacted industries. As
noted above, Treasury presumes that the
general public, as well as small
businesses, nonprofits, and impacted
industries in general, has been impacted
by the COVID-19 disease itself and is
76 See Centers for Disease Control and Prevention,
Participate in Outdoor and Indoor Activities,
h ttps://www. cd c.gov/coron avirus/2019-ncov/dail y-
life-coping/outdoor-activities.html (last visited
November 8, 2021).
eligible for services that mitigate or
prevent COVID-19 spread. As such, a
small business, nonprofit, or impacted
industry receiving assistance to
implement COVID-19 mitigation
measures is a beneficiary of assistance
(e.g., granting funds to a small business
to develop an outdoor patio to reduce
transmission). In contrast, if a recipient
contracts with, or grants funds to, a
small business, nonprofit, or impacted
industry to carry out an eligible use for
COVID-19 mitigation on behalf of the
recipient, the entity is a subrecipient
(e.g., contracting with a small business
to operate COVID-19 vaccination sites).
For further information on
distinguishing between beneficiaries
and subrecipients, as well as the
impacts of the distinction on reporting
and other requirements, see section
Distinguishing Subrecipients versus
Beneficiaries.
b. Medical Expenses
Background: The interim final rule
also included as an enumerated eligible
use medical expenses, including
medical care and services to address the
near -term and potential longer -term
impacts of the disease on individuals
infected.
Public Comment: Some commenters
sought clarification on the types of
medical expenses eligible and for
whom, including whether funds could
be used under this category for
expanding health insurance coverage
(e.g., subsidies for premiums, expanding
a group health plan), improvements to
healthcare facilities or establishment of
new medical facilities, direct costs of
medical services, and costs to a self -
funded health insurance plan (e.g., a
county government health plan) for
COVID-19 medical care.
Treasury Response: In the final rule,
Treasury is maintaining this enumerated
eligible use category and clarifying that
it covers costs related to medical care
provided directly to an individual due
to COVID-19 infection (e.g., treatment)
or a potential infection (e.g., testing).
This can include medical costs to
uninsured individuals; deductibles, co -
pays, or other costs not covered by
insurance; costs for uncompensated care
at a health provider; emergency medical
response costs; and, for recipients with
a self -funded health insurance plan,
excess health insurance costs due to
COVID-19 medical care. These are
medical expenses due to COVID-19 and
distinguish this category of eligible uses
from other related eligible uses, like
COVID-19 mitigation and prevention
and health insurance expenses to
households, to provide greater clarity
for recipients in determining which
category of eligible uses they should
review to assess a potential use of funds.
For discussion of eligibility for
programs to expand health insurance
coverage, see section Assistance to
Households.
c. Behavioral Health Care
Background: Recognizing that the
public health emergency, necessary
mitigation measures like social
distancing, and the economic downturn
have exacerbated mental health and
substance use challenges for many
Americans, the interim final rule
included an enumerated eligible use for
mental health treatment, substance use
treatment, and other behavioral health
services, including a non -exhaustive list
of specific services that would be
eligible under this category.
Public Comment: Many commenters
expressed support for the interim final
rule's recognition of behavioral health
impacts of the pandemic and eligible
uses under this category. Several
commenters requested clarification on
the types of eligible services under this
category, specifically whether both
acute and chronic care are included as
well as services that often do not
directly accept insurance payments, like
peer support groups. Some commenters
highlighted the importance of cultural
competence in providing effective
behavioral health services. Some
commenters suggested that funding
should be available broadly and quickly
for this purpose, recommending that
funding available for behavioral health
not be tied to the amount of revenue
loss experienced by the recipient.
Treasury Response: In the final rule,
Treasury is maintaining this enumerated
eligible use category and clarifying that
it covers an expansive array of services
for prevention, treatment, recovery, and
harm reduction for mental health,
substance use, and other behavioral
health challenges caused or exacerbated
by the public health emergency. The
specific services listed in the interim
final rule also remain eligible.77
Treasury is further clarifying that
when providing behavioral health
services, recipients can identify the
impacted population as the general
public and, as with all enumerated
eligible uses, presume that all programs
and services are reasonably proportional
responses to the harm identified unless
a response is grossly disproportionate to
the type or extent of harm experienced.
In contrast, capital expenditures are not
77 Hotlines or warmlines, crisis intervention,
overdose prevention, infectious disease prevention,
and services or outreach to promote access to
physical or behavioral health primary care and
preventative medicine.