June 21, 2022
7:00 PM – Regular Meeting
Council Chambers
400 N. Douty St.
5:00 PM CALL TO ORDER STUDY SESSION AND CLOSED SESSION:
ROLL CALL BY THE CITY CLERK :
PUBLIC COMMENT:
Comments from the public are limited to items listed on the agenda (GC 54954.3a). A maximum of three minutes is allowed for each speaker. Please begin your comments by stating your name and providing your city of residence.
STUDY SESSION :
Presentation of the American Rescue Plan Act (ARPA) funding information related to the $13,077,740 in funding that the City of Hanford received from Coronavirus State and Local Fiscal Recovery Fund (SLFRF) and Council direction to staff regarding the second allocation of funding
CLOSED SESSION FOR DISCUSSION OF THE FOLLOWING:
A. CONFERENCE WITH LEGAL COUNSEL-REAL PROPERTY NEGOTIATIONS (GC 54956.8):
Property: 330 N. Harris Street
APN: 010-276-021
Agency Negotiators: Mario Cifuentez and Ty Mizote
Council Members will meet in-person in the Council
Chambers. The meeting will also be lived streamed on the City’s website: http://livestream.hanford.city/
Negotiating Party: Stuart Clark
B. CONFERENCE WITH LEGAL COUNSEL -LABOR NEGOTIATIONS (GC 54957.6):
Agency Designated Representative: Che Johnson, Mario Cifuentez, Sarah Cardoza, Chris Tavarez, and Brenda Garcia.
Employee Organizations: Hanford Police Officers Association (POA); Hanford Fir efighters; Local 3898 (IAFF); Hanford General Employee Management A ssociation (GEMA); Service Employees International Union Local 521 (SEIU); and Executive Management Employees Association (EMA).
C. CONFERENCE WITH LEGAL COUNSEL - PUBLIC EMPLOYEE PERFORMANCE EVALUATION (GC 54957 (b)(1)):
Title: City Manager
CALL TO ORDER REGULAR SESSION:
ROLL CALL:
INVOCATION:
Pastor Candice Cortez
FLAG SALUTE:
COUNCIL REPORTS/GENERAL REPORTS:
Brief information -only reports from City Council and/or Staff, including committee reports and reports by City Council related to meetings attended at City expenses (AB1234).
PUBLIC COMMENT:
This is the time for citizens to comment on subject matters within the jurisdiction of the Hanford City Council. This is also the public’s opportu nity to request an item from the Consent Calendar be pulled for dis cussion purposes or to comment on any item on the agenda. State law does not allow the Council to discuss or take action on issues not on the agenda, except that members of the Council or staff may briefly respond to statements made or questions posed by persons exercising their public testimony rights (Gov. Code sec. 54954.2). A maximum of three minutes is allowed for each speaker. Please begin your comments by stating your name and providing your city of residence.
CONSENT CALENDAR:
Consent Calendar items are considered routine and will be enacted in one motion. There will be no separate discussion of these matters unless a reques t is made and then the item will be removed from the Consent Calendar to be discussed and voted upon by a separate motion.
A. PROCEDURAL WAIVER: Waive reading in full of resolutions and ordinances and approval and adoption of same by reading title the only.
B. City Clerk: Approval of the Minutes of the February 1, 2022 Meeting C. City Clerk: Approval of the Minutes of the February 15, 2022 Meeting D. City Clerk: Denial of a claim for damages and authorization for the City Clerk to send out notification of such to Douglas Sinclair.
E. City Clerk: Denial of a claim for damages and authorization for the City Clerk to send out notification of such to Ashlynn See.
F. Council: Adoption of Resolution No. 22 -31-R Designating the Mayor and Vice -Mayor as the voting delegate and alternate for the purpose of advancing the City’s position at the League of California Cities Annual Conferences.
G. Adoption of Ordinance No. 22 -07 Amending Chapter 13.04 of Hanford Municipal Code and modifying late fee, interest and payment plan provisions as directed by Council H. IT: Approval of a contract with CivicPlus for the redesign of the City of Hanford we bsite and new Agenda Management Software in the amount of $49,907.25 I. Parks and Community Services: Adoption of Resolution 22-28-R authorizing the City Manager to execute the necessary documents to accept $256,143 in grant funding from the CalTrans Sustainable Transportation Planning Grant Program to create a Comprehensive A ctive Transportation Plan (ATP)
J. Parks and Community Services: Adoption of Resolution No. 22 -30-R, Approving the Annual Engineer’s Report and Intention to Levy and Collect Assessment s as outlined, pursuant to Chapter 3 of the Landscape and Lighting Act o f 1972, and setting July 19, 2022 as the Public Hearing date to consider the increases in assessments as proposed.
K. Community Development Department: Approval of a Professional Services Agreement with LSA Associates, Inc. (LSA) to prepare the “City of Ha nford Vehicle Miles Traveled (VMT) Thresholds and Implementation Guidelines” and authorize City Manager to execute Professional Services Agreement with LSA for $48,890.
L. Community Development: Adoption of Resolution NO. 22 -25-R; Revising the Funding amou nt from the State of California Department of Housing and Community Development (HCD) Block Grant Program Corona Virus Response (CDBG -CV2) that was previously approved by Council through the adoption of Resolution No. 21-19-R
M. Community Development: Revi ew and approval of the proposed amendment No. 1 to the Community Development Block Grant Documents: 2021 Annual Action Plan to provide for additional funding for parking lot improvements to the Police Activities League (PAL) facility N. Approval of the No tice of Completion for Tract No. 928 Unit No. 1 and authorization for the Mayor to execute and the City Clerk to attest and file said Notice with the Kings County Recorder’s Office.
O. Public Works: Authorization to Award a contract to MAC General Enginee ring of Exeter CA, in the amount of $715,720.97, establish a construction contingency of $71,600 and approve an additional appropriation of $287,300 from the TDA Transportation Fund in order to fully fund the Campus Drive Resurfacing project from Lacey Boulevard to Greenfield Avenue.
P. Public Works: Adoption of Resolution No. 22 -26-R, thereby approving the Vacation of Excess Right of Way of Trewhitt Street between Sixth Street and Seve nth Street, and Approval of Final Parcel Map No. 2021-01
GENERAL BUSINESS:
A. Finance: Approval of an additional Appropriation of $3,361,645 in the GF and $8,016,639 across all Other Funds for the 2022 -23 Fiscal Year Budget and the addition of three (3) al located positions to the position control budget, one (1) to the salary schedule.
B. Finance: Adoption of Resolution 22 -27-R establishing the 2022/2023 appropriations limit of $82,564,920 for the City of Hanford's General Fund
C. Administration: Adoption o f Resolution 22 -29-R Declaring the Property Located at 113 Court Street (Courthouse) as Surplus Property and adoption of Notice of Exemption 2022 -47, which determines that the disposition of the property is exempt from environmental review.
COUNCIL COMMENTS AND COMMUNICATIONS:
At this time, any Council Member may ask a questio n for clarification, make an announcement, or report briefly on their activities. In addition, subject to Council Policies and Procedures, they may request staff to report back to the Council at a subsequent meeting concerning any matter or take action to direct staff to place a matter of business on a future agenda. (GOV. CODE SEC. 54954.2)
Council Future Agenda Items
Upcoming Events and Important Dates:
June 23: Special Meeting - Planning Commissioner Interviews 5:00 pm July 4: Independence Day - City offices closed
July 18: First day to file City Council Candidate Nomination papers (By appointment only) July 19: Regular City Council Meeting
ADJOURNMENT:
Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available to public inspection in the City Clerk’s Office located at 319 N. Douty Street, Hanford, California 93230, during normal business hours. Such agendas are also available at the city’s website, www.cityofhanfordca.com subject to staff’s ability to post the agenda before the meeting.
If you need a disability-related modification or accommodation, including auxiliary aids or services, to participate in this meeting, please contact the City Clerk’s office, 559-585-2515, 319 N. Douty Street, Hanford, California 93230, at least 2 days prior to the meeting {28 CFR
35.102.35.104 ADA Title II}
AGENDA
STAFF REPORT
MEETING DATE: 6/21/2022
AGENDA SECTION:
SUBJECT:
Finance: Presentation of the American Rescue Plan Act (ARPA) funding information related to the $13,077,740 in funding that the City of Hanford received from Coronavirus State and Local Fiscal Recovery Fund (SLFRF) and Council direction to staff regarding the second allocation of funding
RECOMMENDATION:
Staff recommends that the City Council, by motion:
- Elect to take the $10 million standard allowance for recognition of revenue loss due to the pandemic;
- Consider and approve final allocation of ARPA funding to be reported to the U.S.
Department of Treasury;
- Authorize the Finance Director to make budget amendments for ARPA funding from project list approved by City Council; and
- Authorize the City Manager to reallocate any remaining funds from one completed project to another project from Council’s approved list of ARPA eligible projects.
SUMMARY:
The City of Hanford has been allocated $13,077,040 of ARPA funds from the U.S. Department of Treasury Corona Virus Local Fiscal Recovery Fund. Staff has previously submitted all of the required documentation and in July 2021, the City received its first allocation in the amount of $6,538,870. The City should be receiving its second installment in July 2022.
In September 2021, Council approved some initial allocations of ARPA funding. With the proposed allocations that will be presented (and potentially approved) at this meeting, Council is being asked to provide formal direction to staff to expend these funds, including the portion that Packet Pg. 5
previously was not allocated.
Chart 1: Current and Proposed ARPA Allocations
CITY OF HANFORD
ARPA ALLOCATIONS
Category Title Current ARPA Allocation
1.7 PUBLIC SAFETY RADIOS 699,105
1.4 CITY HALL CV19 MITIGATION 30,000
6.1 PUBLIC SAFETY SALARIES/BENEFITS OVER 3 YEARS 6,500,000
5.17 IT: Fiber at City Facil. 30,000
1.7 IT: City Council Chambers Technology 16,440
1.7 Police IRIMS 40,300
All New Proposed (see list) 5,761,195
Not Assigned Unallocated -
Project Total 13,077,040
The proposed project list in Chart 2, is derived from City Department recommendations and the City’s Capital Improvement Program, previously adopted by City Council. Staff has been purposeful to not include any new projects unless previously recommended by a majority support of the City Council or already in an approved plan or in process to be developed. Adding resources for staff to deliver projects not already approved or planned may be paid for with ARPA funds, however, this would decrease the funding available for other projects and may still provide strain on staff capabilities that may hinder timely delivery of projects.
Packet Pg. 6
Chart 2: Proposed New ARPA Project List
Category Title Proposed ARPA Allocation
6.10 FIRE: Flooring for Fire Stations (from current CIP) 53,000
6.10 POLICE: Rear Lot Improvement 150,000
2.10 PUBLIC WORKS: Downtown Economic Development Project 4,416,195
1.70 CITY: Website/Agenda Management System 70,000
5.00 WATER: Water conservation incentive program (to be developed, up to $500 per house, approximately 600
households) 300,000
2.18 PARKS: Skate Park/Plunge Fencing Project 200,000
2.18 PARKS: Youth Athletic Complex Concession Restoration (Total $872k, $271k ACO, $572k ARPA) 572,000
5,761,195
Staff is requesting that Council review and discuss the proposed allocation of ARPA funding to projects and provide guidance to staff on the final allocations. Staff will report to the U.S.
Department of the Treasury Council’s approved project list.
BACKGROUND:
On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law by the President which established the Coronavirus Local Fiscal Recovery Fund. The funds are intended to provide support to State, local, and Tribal governments in responding to the impact of COVID-19 and their efforts to contain COVID-19 on their communities, residents, and businesses. It is meant to expand the support provided to these governments over the last year.
Congress has allocated $350 billion in Coronavirus State and Local Fiscal Recovery Funds (SLFRF) for state, local, territorial, and Tribal governments. Funding will come directly from the U.S. Department of Treasury funded in two installments.
Eligible uses include:
• 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.
• To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers.
• 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.
• To make necessary investments in water, sewer, or broadband infrastructure.
City's are expressly prohibited from using funds for:
Packet Pg. 7
• Direct or indirect offsets of a reduction in net tax revenue resulting from a change in law, regulation, or administrative interpretation.
• Deposits into Pension Funds
• Contributions to rainy day funds or similar reserves
• Pay expenses related to financing, outstanding debt, or settlement agreements
On May 11, 2021, The U.S. Department of Treasury released a lengthy “Interim Final Rule.” This was created in order to help guide recipients on how funding can be used, reporting requirements, etc. It was released to all agencies for review, questions, and comments. The U.S.
Department of Treasury issued a Final Rule effective April 1, 2022. The proposed projects to Council have been reviewed by staff in order to satisfy requirements of the Final Rule and in conjunction with City Council’s goals and objectives to look first at projects proposed in the City’s Capital Improvement Plan (CIP) or previously discussed with Council and will have a significant impact to the City.
In contrast to CARES Act which was intended to be used to meet relatively short-term needs, ARPA is intended to provide fiscal relief over a broader timeline. The City will have until December 31, 2024 to spend and/or obligate the funds and until December 31, 2026 to fully expend the funds. The City can use the funds to cover costs incurred beginning March 3, 2021.
This limitation applies to costs incurred by the City. However, the City may use ARPA funds to aid households, businesses, and individuals within the eligible uses prior to March 3, 2021 if the City had not already incurred or paid for the programs. Any funding not obligated and/or expended will need to be returned to the U.S. Department of Treasury.
Public Health and Economic Impacts (Expenditure Categories 1-3)
In order to assess whether a program or service is included as a public health and economic impact eligible use the City Council and staff should 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. While the public health emergency affected many aspects of American life, eligible 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.
In order to insure continued City utility services and mitigate COVID-19 spread, $30,000 is requested to be appropriated from ARPA to make mitigation improvements to City Hall. This will make permanent glass at the utility services front counter and cubicle dividers in between staff and the public. This will help to insure continuity of customer service for essential City provided utility services.
Premium Pay (Expenditure Category 4)
Packet Pg. 8
ARPA funds may be used to provide premium pay to eligible workers performing essential work during the COVID-19 public health emergency or to provide grants to third-party employers with eligible workers performing essential work. “Essential workers” are those in critical infrastructure sectors who regularly perform in person work, interact with others at work, or physically handle items handled by others. “Critical infrastructure sectors” include healthcare, education, childcare, transportation, sanitation, grocery and food production, and public health and safety. Premium pay is an amount up to $13 per hour in addition to wages already received.
If by adding premium pay it increases a worker’s total pay above 150 percent of their residing state’s average annual wage for all occupations, as defined by the Bureau of Labor Statistics or the county’s average annual wage, whichever is higher, then additional justification and reporting.
Investments in Infrastructure (Expenditure Category 5)
The Treasury is allowing ARPA funds to assist in meeting the critical needs for investments and improvements to existing infrastructure in water, sewer, and broadband. Projects could be to improve access to clean drinking water, improve wastewater and stormwater infrastructure systems, and provide access to high-quality broadband service. Necessary investments are designed to provide an adequate minimum level of service and are unlikely to be made using private sources of funds. To provide public transparency on whether projects are using practices that promote on-time and no-budget delivery, Treasury will seek information from the City on plans and practices related to any of these projects undertaken with ARPA funds. Additional reporting will also be required.
Reduction in Revenue Expenditure Category 6)
The City can use ARPA funds for government services to the extent of the reduction in revenue experienced due to the COVID-19. The Final Rule provides for a $10 million revenue loss recognition or alternatively the City may calculate revenue loss based on the provided formula.
In addition, the Treasury provides a very specific and somewhat complex methodology for purposes of calculating revenue loss which staff initially had calculated to be below $10 million.
Staff recommends Council adopt the standard $10 million revenue loss option.
The City may use up to this standard allowance for government services, such as public safety salaries and other essential services. Any project under Category 6 falls under this allowance.
Initially City Council had allocated $8.2 million in revenue loss to help pay for public safety salaries and benefits over the next several years. The proposal to Council at this meeting reduces that amount to $6.5 million with some funding moved to proposed projects (see Chart 1 and Chart 2).
Other examples of eligible expenditures are infrastructure such as roads, health services and environmental remediation. Other options are not recommended at this time in order to make sure there is little risk of losing this funding. City Council may amend this use in the future.
Administrative (Expenditure Category 7)
Packet Pg. 9
The Treasury realizes that the administration of this program could stretch current resources.
Therefore, they are allowing ARPA funds to pay for administering the program, including costs of consultants to support effective management and oversight. Part of the recommendation tonight is to appropriate funding of $40,000 for the City’s Federal Lobbyist to help facilitate community engagement and outreach and/or create and implement programs the City Council ultimately approves.
Reporting Requirements and Future Action
The City will be subject to federal reviews and/or audits and will be required to retain supporting documents for five years after all funds have been expended or returned to the Treasury, whichever is later.
The City will need to adhere to the following reporting requirements:
1. Interim Report due August 31, 2021 (Completed)
a. This will cover activity from the date of award to July 31, 2021.
2. Quarterly Project and Expenditure Reports due quarterly (Completed through 3/31/2022)
a. Initial quarterly report will cover two calendar quarters from date of award to September 30, 2021 and due October 31, 2021. (Completed)
b. All subsequent reports will cover a one calendar quarter and due 30 days after the end of each calendar quarter.
The purpose of tonight’s item is to have further consideration of allocation of ARPA funds and consider approval of proposed projects. Staff will report to the U.S. Treasury any actions taken by Council tonight.
FISCAL IMPACT:
The City will receive $13,077,740 ARPA funds from the Department of Treasury, with the second/final installment coming in July 2022. The recommendation is that Council take action to fully allocate ARPA funds as outlined in this report to be obligated or spent by the end of 2024.
This action will allow the City be able to fund necessary improvements to mitigate pandemic impacts and, more importantly, enable the City to mitigate future impacts for economic benefit and continuity of service. Additionally, funding of the project list, as proposed, will allow the City to unencumber over $700,000 in General Fund capital funding.
ATTACHMENTS:
SLFRF-Final-Rule-Overview
Packet Pg. 10
Coronavirus State & Local
Fiscal Recovery Funds:
Overview of the Final Rule
U.S. DEPARTMENT OF THE TREASURY
January 2022
4.a
Packet Pg. 11
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 2 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
The Overview of the Final Rule provides a summary of major provisions of the final rule for informational purposes and is intended as a brief, simplified user guide to the final rule provisions.
The descriptions provided in this document summarize key provisions of the final rule but are non-exhaustive, do not describe all terms and conditions associated with the use of SLFRF, and do not describe all requirements that may apply to this funding. Any SLFRF funds received are also subject to the terms and conditions of the agreement entered into by Treasury and the respective jurisdiction, which incorporate the provisions of the final rule and the guidance that implements this program.
4.a
Packet Pg. 12
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 3 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Contents
Introduction .................................................................................................................................................. 4 Overview of the Program .............................................................................................................................. 6 Replacing Lost Public Sector Revenue .......................................................................................................... 9 Responding to Public Health and Economic Impacts of COVID-19 ............................................................. 12 Responding to the Public Health Emergency .......................................................................................... 14 Responding to Negative Economic Impacts ............................................................................................ 16 Assistance to Households ................................................................................................................... 17 Assistance to Small Businesses ........................................................................................................... 21 Assistance to Nonprofits ..................................................................................................................... 23 Aid to Impacted Industries .................................................................................................................. 24 Public Sector Capacity ............................................................................................................................. 26 Public Safety, Public Health, and Human Services Staff ..................................................................... 26 Government Employment and Rehiring Public Sector Staff ............................................................... 27 Effective Service Delivery .................................................................................................................... 28 Capital Expenditures ............................................................................................................................... 30 Framework for Eligible Uses Beyond those Enumerated ....................................................................... 32 Premium Pay ............................................................................................................................................... 35 Water & Sewer Infrastructure .................................................................................................................... 37 Broadband Infrastructure ........................................................................................................................... 39 Restrictions on Use ..................................................................................................................................... 41 Program Administration ............................................................................................................................. 43
4.a
Packet Pg. 13
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 4 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Introduction
The Coronavirus State and Local Fiscal Recovery Funds (SLFRF), a part of the American Rescue Plan, delivers $350 billion to state, local, and Tribal governments across the country to support their response to and recovery from the COVID-19 public health emergency. The program ensures that governments have the resources needed to:
• Fight the pandemic and support families and businesses struggling with its public health and economic impacts,
• Maintain vital public services, even amid declines in revenue, and • Build a strong, resilient, and equitable recovery by making investments that support long-term growth and opportunity.
EARLY PROGRAM IMPLEMENTATION
In May 2021, Treasury published the Interim final rule (IFR) describing eligible and ineligible uses of funds (as well as other program provisions), sought feedback from the public on these program rules, and began to distribute funds. The IFR went immediately into effect in May, and since then, governments have used SLFRF funds to meet their immediate pandemic response needs and begin building a strong and equitable recovery, such as through providing vaccine incentives, development of affordable housing, and construction of infrastructure to deliver safe and reliable water.
As governments began to deploy this funding in their communities, Treasury carefully considered the feedback provided through its public comment process and other forums. Treasury received over 1,500 comments, participated in hundreds of meetings, and received correspondence from a wide range of governments and other stakeholders.
KEY CHANGES AND CLARIFICATIONS IN THE FINAL RULE
The final rule delivers broader flexibility and greater simplicity in the program, responsive to feedback in the comment process. Among other clarifications and changes, the final rule provides the features below.
Replacing Lost Public Sector Revenue
The final rule offers a standard allowance for revenue loss of $10 million, 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 – in many cases their full award – for government services, with streamlined reporting requirements.
Public Health and Economic Impacts
In addition to programs and services, the final rule clarifies that recipients can 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 final rule requirements.
4.a
Packet Pg. 14
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 5 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
In addition, the final rule provides an expanded set of households and communities that are presumed to be “impacted” and “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 uses available for these communities as part of COVID- 19 public health and economic response, including making affordable housing, childcare, early learning, and services to address learning loss during the pandemic 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 delivers more streamlined options to provide premium pay, by broadening the share of eligible workers who can receive premium pay without a written justification while maintaining a focus on lower-income and frontline workers performing essential work.
Water, Sewer & 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 broader range of lead remediation and stormwater management projects.
FINAL RULE EFFECTIVE DATE
The final rule takes effect on April 1, 2022. Until that time, the interim final rule remains in effect; funds used consistently with the IFR while it is in effect are in compliance with the SLFRF program.
However, recipients can choose to take advantage of the final rule’s flexibilities and simplifications now, even ahead of the effective date. Treasury will not take action to enforce the interim final rule to the extent that a use of funds is consistent with the terms of the final rule, regardless of when the SLFRF funds were used. Recipients may consult the Statement Regarding Compliance with the Coronavirus State and Local Fiscal Recovery Funds Interim Final Rule and Final Rule, which can be found on Treasury’s website, for more information on compliance with the interim final rule and the final rule.
4.a
Packet Pg. 15
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 6 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Overview of the Program
The Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program provides substantial flexibility for each jurisdiction to meet local needs within the four separate eligible use categories. This Overview of the Final Rule addresses the four eligible use categories ordered from the broadest and most flexible to the most specific.
Recipients may use SLFRF funds to:
• Replace lost public sector revenue, using this funding to provide government services up to the amount of revenue loss due to the pandemic.
• Recipients may determine their revenue loss by choosing between two options:
• A standard allowance of up to $10 million in aggregate, not to exceed their award amount, during the program;
• Calculating their jurisdiction’s specific revenue loss each year using Treasury’s formula, which compares actual revenue to a counterfactual trend. • Recipients may use funds up to the amount of revenue loss for government services; generally, services traditionally provided by recipient governments are government services, unless Treasury has stated otherwise.
• Support the COVID-19 public health and economic response by addressing COVID-19 and its impact on public health as well as addressing economic harms to households, small businesses, nonprofits, impacted industries, and the public sector. • Recipients can use funds for programs, services, or capital expenditures that respond to the public health and negative economic impacts of the pandemic. • To provide simple and clear eligible uses of funds, Treasury provides a list of enumerated uses that recipients can provide to households, populations, or classes (i.e., groups) that experienced pandemic impacts.
• Public health eligible uses include COVID-19 mitigation and prevention, medical expenses, behavioral healthcare, and preventing and responding to violence. • Eligible uses to respond to negative economic impacts are organized by the type of beneficiary: assistance to households, small businesses, and nonprofits. • Each category includes assistance for “impacted” and “disproportionately impacted” classes: impacted classes experienced the general, broad-based impacts of the pandemic, while disproportionately impacted classes faced meaningfully more severe impacts, often due to preexisting disparities. • To simplify administration, the final rule presumes that some populations and groups were impacted or disproportionately impacted and are eligible for responsive services.
4.a
Packet Pg. 16
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 7 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
• Eligible uses for assistance to impacted households include aid for re- employment, job training, food, rent, mortgages, utilities, affordable housing development, childcare, early education, addressing learning loss, and many more uses.
• Eligible uses for assistance to impacted small businesses or nonprofits include loans or grants to mitigate financial hardship, technical assistance for small businesses, and many more uses.
• Recipients can also provide assistance to impacted industries like travel, tourism, and hospitality that faced substantial pandemic impacts, or address impacts to the public sector, for example by re-hiring public sector workers cut during the crisis. • Recipients providing funds for enumerated uses to populations and groups that Treasury has presumed eligible are clearly operating consistently with the final rule.
Recipients can also identify (1) other populations or groups, beyond those presumed eligible, that experienced pandemic impacts or disproportionate impacts and (2) other programs, services, or capital expenditures, beyond those enumerated, to respond to those impacts.
• Provide premium pay for eligible workers performing essential work, offering additional support to those who have and will bear the greatest health risks because of their service in critical sectors.
• Recipients may provide premium pay to eligible workers – generally those working in- person in key economic sectors – who are below a wage threshold or non-exempt from the Fair Labor Standards Act overtime provisions, or if the recipient submits justification that the premium pay is responsive to workers performing essential work. • Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, to support vital wastewater and stormwater infrastructure, and to expand affordable access to broadband internet. • Recipients may fund a broad range of water and sewer projects, including those eligible under the EPA’s Clean Water State Revolving Fund, EPA’s Drinking Water State Revolving Fund, and certain additional projects, including a wide set of lead remediation, stormwater infrastructure, and aid for private wells and septic units. • Recipients may fund high-speed broadband infrastructure in areas of need that the recipient identifies, such as areas without access to adequate speeds, affordable options, or where connections are inconsistent or unreliable; completed projects must participate in a low-income subsidy program.
While recipients have considerable flexibility to use funds to address the diverse needs of their communities, some restrictions on use apply across all eligible use categories. These include:
• For states and territories: No offsets of a reduction in net tax revenue resulting from a change in state or territory law.
4.a
Packet Pg. 17
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 8 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
• For all recipients except for Tribal governments: No extraordinary contributions to a pension fund for the purpose of reducing an accrued, unfunded liability.
• For all recipients: No payments for debt service and replenishments of rainy day funds; no satisfaction of settlements and judgments; no uses that contravene or violate the American Rescue Plan Act, Uniform Guidance conflicts of interest requirements, and other federal, state, and local laws and regulations.
Under the SLFRF program, funds must be used for costs incurred on or after March 3, 2021. Further, funds must be obligated by December 31, 2024, and expended by December 31, 2026. This time period, during which recipients can expend SLFRF funds, is the “period of performance.” In addition to SLFRF, the American Rescue Plan includes other sources of funding for state and local governments, including the Coronavirus Capital Projects Fund to fund critical capital investments including broadband infrastructure; the Homeowner Assistance Fund to provide relief for our country’s most vulnerable homeowners; the Emergency Rental Assistance Program to assist households that are unable to pay rent or utilities; and the State Small Business Credit Initiative to fund small business credit expansion initiatives. Eligible recipients are encouraged to visit the Treasury website for more information.
4.a
Packet Pg. 18
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 9 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Replacing Lost Public Sector Revenue
The Coronavirus State and Local Fiscal Recovery Funds provide needed fiscal relief for recipients that have experienced revenue loss due to the onset of the COVID-19 public health emergency. Specifically, SLFRF funding may be used to pay for “government services” in an amount equal to the revenue loss experienced by the recipient due to the COVID-19 public health emergency.
Government services generally include any service traditionally provided by a government, including construction of roads and other infrastructure, provision of public safety and other services, and health and educational services. Funds spent under government services are subject to streamlined reporting and compliance requirements.
In order to use funds under government services, recipients should first determine revenue loss. They may, then, spend up to that amount on general government services.
DETERMINING REVENUE LOSS
Recipients have two options for how to determine their amount of revenue loss. Recipients must choose one of the two options and cannot switch between these approaches after an election is made.
1. Recipients may elect a “standard allowance” of $10 million to spend on government services through the period of performance.
Under this option, which is newly offered in the final rule Treasury presumes that up to $10 million in revenue has been lost due to the public health emergency and recipients are permitted to use that amount (not to exceed the award amount) to fund “government services.” The standard allowance provides an estimate of revenue loss that is based on an extensive analysis of average revenue loss across states and localities, and offers a simple, convenient way to determine revenue loss, particularly for SLFRF’s smallest recipients.
All recipients may elect to use this standard allowance instead of calculating lost revenue using the formula below, including those with total allocations of $10 million or less. Electing the standard allowance does not increase or decrease a recipient’s total allocation.
2. Recipients may calculate their actual revenue loss according to the formula articulated in the final rule.
Under this option, recipients calculate revenue loss at four distinct points in time, either at the end of each calendar year (e.g., December 31 for years 2020, 2021, 2022, and 2023) or the end of each fiscal year of the recipient. Under the flexibility provided in the final rule, recipients can choose whether to use calendar or fiscal year dates but must be consistent throughout the period of performance. Treasury has also provided several adjustments to the definition of general revenue in the final rule.
To calculate revenue loss at each of these dates, recipients must follow a four-step process:
4.a
Packet Pg. 19
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 10 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
a. Calculate revenues collected in the most recent full fiscal year prior to the public health emergency (i.e., last full fiscal year before January 27, 2020), called the base year revenue.
b. Estimate counterfactual revenue, which is equal to the following formula, where n is the number of months elapsed since the end of the base year to the calculation date:
𝑏𝑎𝑠𝑒 𝑦𝑒𝑎𝑟 𝑟𝑒𝑣𝑒𝑛𝑢𝑒 × (1 + 𝑔𝑟𝑜𝑤𝑡ℎ 𝑎𝑑𝑗𝑢𝑠𝑡𝑚𝑒𝑛𝑡)
𝑛
12 The growth adjustment is the greater of either a standard growth rate—5.2 percent—or the recipient’s average annual revenue growth in the last full three fiscal years prior to the COVID-19 public health emergency.
c. Identify actual revenue, which equals revenues collected over the twelve months immediately preceding the calculation date.
Under the final rule, recipients must adjust actual revenue totals for the effect of tax cuts and tax increases that are adopted after the date of adoption of the final rule (January 6, 2022). Specifically, the estimated fiscal impact of tax cuts and tax increases adopted after January 6, 2022, must be added or subtracted to the calculation of actual revenue for purposes of calculation dates that occur on or after April 1, 2022.
Recipients may subtract from their calculation of actual revenue the effect of tax increases enacted prior to the adoption of the final rule. Note that recipients that elect to remove the effect of tax increases enacted before the adoption of the final rule must also remove the effect of tax decreases enacted before the adoption of the final rule, such that they are accurately removing the effect of tax policy changes on revenue.
d. Revenue loss for the calculation date is equal to counterfactual revenue minus actual revenue (adjusted for tax changes) for the twelve-month period. If actual revenue exceeds counterfactual revenue, the loss is set to zero for that twelve-month period.
Revenue loss for the period of performance is the sum of the revenue loss on for each calculation date.
The supplementary information in the final rule provides an example of this calculation, which recipients may find helpful, in the Revenue Loss section.
4.a
Packet Pg. 20
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 11 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
SPENDING ON GOVERNMENT SERVICES
Recipients can use SLFRF funds on government services up to the revenue loss amount, whether that be the standard allowance amount or the amount calculated using the above approach. Government services generally include any service traditionally provided by a government, unless Treasury has stated otherwise. Here are some common examples, although this list is not exhaustive:
✓ Construction of schools and hospitals
✓ Road building and maintenance, and
other infrastructure
✓ Health services
✓ General government administration,
staff, and administrative facilities
✓ Environmental remediation
✓ Provision of police, fire, and other public
safety services (including purchase of
fire trucks and police vehicles)
Government services is the most flexible eligible use category under the SLFRF program, and funds are subject to streamlined reporting and compliance requirements. Recipients should be mindful that certain restrictions, which are detailed further in the Restrictions on Use section and apply to all uses of funds, apply to government services as well.
4.a
Packet Pg. 21
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 12 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Responding to Public Health and Economic Impacts of COVID-19
The Coronavirus State and Local Fiscal Recovery Funds provide resources for governments to meet the public health and economic needs of those impacted by the pandemic in their communities, as well as address longstanding health and economic disparities, which amplified the impact of the pandemic in disproportionately impacted communities, resulting in more severe pandemic impacts.
The eligible use category to respond to public health and negative economic impacts is organized around the types of assistance a recipient may provide and includes several sub-categories:
• public health,
• assistance to households,
• assistance to small businesses,
• assistance to nonprofits,
• aid to impacted industries, and
• public sector capacity.
In general, to identify eligible uses of funds in this category, recipients should (1) identify a COVID-19 public health or economic impact on an individual or class (i.e., a group) and (2) design a program that responds to that impact. Responses should be related and reasonably proportional to the harm identified and reasonably designed to benefit those impacted.
To provide simple, clear eligible uses of funds that meet this standard, Treasury provides a non- exhaustive list of enumerated uses that respond to pandemic impacts. Treasury also presumes that some populations experienced pandemic impacts and are eligible for responsive services. In other words, recipients providing enumerated uses of funds to populations presumed eligible are clearly operating consistently with the final rule.1
Recipients also have broad flexibility to (1) identify and respond to other pandemic impacts and (2) serve other populations that experienced pandemic impacts, beyond the enumerated uses and presumed eligible populations. Recipients can also identify groups or “classes” of beneficiaries that experienced pandemic impacts and provide services to those classes.
1 However, please note that use of funds for enumerated uses may not be grossly disproportionate to the harm. Further, recipients should consult the Capital Expenditures section for more information about pursuing a capital expenditure; please note that enumerated capital expenditures are not presumed to be reasonably proportional responses to an identified harm except as provided in the Capital Expenditures section.
4.a
Packet Pg. 22
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 13 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Step 1. Identify COVID-19 public health or
economic impact
2. Design a response that addresses or
responds to the impact
Analysis • Can identify impact to a specific
household, business or nonprofit or
to a class of households, businesses,
or nonprofits (i.e., group)
• Can also identify disproportionate
impacts, or more severe impacts, to
a specific beneficiary or to a class
• Types of responses can include a
program, service, or capital
expenditure
• Response should be related and
reasonably proportional to the harm
• Response should also be reasonably
designed to benefit impacted
individual or class
Simplifying
Presumptions • Final Rule presumes certain
populations and classes are impacted
and disproportionately impacted
• Final Rule provides non-exhaustive
list of enumerated eligible uses that
respond to pandemic impacts and
disproportionate impacts
To assess eligibility of uses of funds, recipients should first determine the sub-category where their use of funds may fit (e.g., public health, assistance to households, assistance to small businesses), based on the entity that experienced the health or economic impact.2 Then, recipients should refer to the relevant section for more details on each sub-category.
While the same overall eligibility standard applies to all uses of funds to respond to the public health and negative economic impacts of the pandemic, each sub-category has specific nuances on its application. In addition:
• Recipients interested in using funds for capital expenditures (i.e., investments in property, facilities, or equipment) should review the Capital Expenditures section in addition to the eligible use sub-category.
• Recipients interested in other uses of funds, beyond the enumerated uses, should refer to the section on “Framework for Eligible Uses Beyond Those Enumerated.”
2 For example, a recipient interested in providing aid to unemployed individuals is addressing a negative economic impact experienced by a household and should refer to the section on assistance to households. Recipients should also be aware of the difference between “beneficiaries” and “sub-recipients.” Beneficiaries are households, small businesses, or nonprofits that can receive assistance based on impacts of the pandemic that they experienced. On the other hand, sub-recipients are organizations that carry out eligible uses on behalf of a government, often through grants or contracts. Sub-recipients do not need to have experienced a negative economic impact of the pandemic; rather, they are providing services to beneficiaries that experienced an impact.
4.a
Packet Pg. 23
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 14 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
RESPONDING TO THE PUBLIC HEALTH EMERGENCY
While the country has made tremendous progress in the fight against COVID-19, including a historic vaccination campaign, the disease still poses a grave threat to Americans’ health and the economy.
Providing state, local, and Tribal governments the resources needed to fight the COVID-19 pandemic is a core goal of the Coronavirus State and Local Fiscal Recovery Funds, as well as addressing the other ways that the pandemic has impacted public health. Treasury has identified several public health impacts of the pandemic and enumerated uses of funds to respond to impacted populations. • COVID-19 mitigation and prevention. The pandemic has broadly impacted Americans and recipients can provide services to prevent and mitigate COVID-19 to the general public or to small businesses, nonprofits, and impacted industries in general. Enumerated eligible uses include:
✓ Vaccination programs, including vaccine
incentives and vaccine sites
✓ Testing programs, equipment and sites
✓ Monitoring, contact tracing & public
health surveillance (e.g., monitoring for
variants)
✓ Public communication efforts
✓ Public health data systems
✓ COVID-19 prevention and treatment
equipment, such as ventilators and
ambulances
✓ Medical and PPE/protective supplies
✓ Support for isolation or quarantine
✓ Ventilation system installation and
improvement
✓ Technical assistance on mitigation of
COVID-19 threats to public health and
safety
✓ Transportation to reach vaccination or
testing sites, or other prevention and
mitigation services for vulnerable
populations
✓ Support for prevention, mitigation, or
other services in congregate living
facilities, public facilities, and schools
✓ Support for prevention and mitigation
strategies in small businesses, nonprofits,
and impacted industries
✓ Medical facilities generally dedicated to
COVID-19 treatment and mitigation (e.g.,
ICUs, emergency rooms)
✓ Temporary medical facilities and other
measures to increase COVID-19 treatment
capacity
✓ Emergency operations centers &
emergency response equipment (e.g.,
emergency response radio systems)
✓ Public telemedicine capabilities for COVID-
19 related treatment
4.a
Packet Pg. 24
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 15 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
• Medical expenses. Funds may be used for expenses to households, medical providers, or others that incurred medical costs due to the pandemic, including:
✓ Unreimbursed expenses for medical care
for COVID-19 testing or treatment, such
as uncompensated care costs for
medical providers or out-of-pocket costs
for individuals
✓ Paid family and medical leave for public
employees to enable compliance with
COVID-19 public health precautions
✓ Emergency medical response expenses
✓ Treatment of long-term symptoms or effects
of COVID-19
• Behavioral health care, such as mental health treatment, substance use treatment, and other behavioral health services. Treasury recognizes that the pandemic has broadly impacted Americans’ behavioral health and recipients can provide these services to the general public to respond.
Enumerated eligible uses include:
✓ Prevention, outpatient treatment,
inpatient treatment, crisis care,
diversion programs, outreach to
individuals not yet engaged in
treatment, harm reduction & long-term
recovery support
✓ Enhanced behavioral health services in
schools
✓ Services for pregnant women or infants
born with neonatal abstinence
syndrome
✓ Support for equitable access to reduce
disparities in access to high-quality
treatment
✓ Peer support groups, costs for residence in
supportive housing or recovery housing, and
the 988 National Suicide Prevention Lifeline
or other hotline services
✓ Expansion of access to evidence-based
services for opioid use disorder prevention,
treatment, harm reduction, and recovery
✓ Behavioral health facilities & equipment
• Preventing and responding to violence. Recognizing that violence – and especially gun violence – has increased in some communities due to the pandemic, recipients may use funds to respond in these communities through:
✓ Referrals to trauma recovery services for
victims of crime
✓ Community violence intervention
programs, including:
• Evidence-based practices like
focused deterrence, with
wraparound services such as
behavioral therapy, trauma
recovery, job training, education,
housing and relocation services, and
financial assistance
✓ In communities experiencing increased
gun violence due to the pandemic:
• Law enforcement officers focused
on advancing community policing
• Enforcement efforts to reduce gun
violence, including prosecution
• Technology & equipment to support
law enforcement response
4.a
Packet Pg. 25
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 16 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
RESPONDING TO NEGATIVE ECONOMIC IMPACTS
The pandemic caused severe economic damage and, while the economy is on track to a strong recovery, much work remains to continue building a robust, resilient, and equitable economy in the wake of the crisis and to ensure that the benefits of this recovery reach all Americans. While the pandemic impacted millions of American households and businesses, some of its most severe impacts fell on low-income and underserved communities, where pre-existing disparities amplified the impact of the pandemic and where the most work remains to reach a full recovery.
The final rule recognizes that the pandemic caused broad-based impacts that affected many communities, households, and small businesses across the country; for example, many workers faced unemployment and many small businesses saw declines in revenue. The final rule describes these as “impacted" households, communities, small businesses, and nonprofits.
At the same time, the pandemic caused disproportionate impacts, or more severe impacts, in certain communities. For example, low-income and underserved communities have faced more severe health and economic outcomes like higher rates of COVID-19 mortality and unemployment, often because pre- existing disparities exacerbated the impact of the pandemic. The final rule describes these as “disproportionately impacted” households, communities, small businesses, and nonprofits.
To simplify administration of the program, the final rule presumes that certain populations were “impacted” and “disproportionately impacted” by the pandemic; these populations are presumed to be eligible for services that respond to the impact they experienced. The final rule also enumerates a non- exhaustive list of eligible uses that are recognized as responsive to the impacts or disproportionate impacts of COVID-19. Recipients providing enumerated uses to populations presumed eligible are clearly operating consistently with the final rule.
As discussed further in the section Framework for Eligible Uses Beyond Those Enumerated, recipients can also identify other pandemic impacts, impacted or disproportionately impacted populations or classes, and responses.
4.a
Packet Pg. 26
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 17 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Assistance to Households
Impacted Households and Communities
Treasury presumes the following households and communities are impacted by the pandemic:
✓ Low- or-moderate income households or
communities
✓ Households that experienced
unemployment
✓ Households that experienced increased
food or housing insecurity
✓ Households that qualify for the Children’s
Health Insurance Program, Childcare
Subsidies through the Child Care
Development Fund (CCDF) Program, or
Medicaid
✓ When providing affordable housing programs:
households that qualify for the National Housing
Trust Fund and Home Investment Partnerships
Program
✓ When providing services to address lost
instructional time in K-12 schools: any student
that lost access to in-person instruction for a
significant period of time
Low- or moderate-income households and communities are those with (i) income at or below 300 percent of the Federal Poverty Guidelines for the size of the household based on the most recently published poverty guidelines or (ii) income at or below 65 percent of the area median income for the county and size of household based on the most recently published data. For the vast majority of communities, the Federal Poverty Guidelines are higher than the area’s median income and using the Federal Poverty Guidelines would result in more households and communities being presumed eligible.
Treasury has provided an easy-to-use spreadsheet with Federal Poverty Guidelines and area median income levels on its website.
Recipients can measure income for a specific household or the median income for the community, depending on whether the response they plan to provide serves specific households or the general community. The income thresholds vary by household size; recipients should generally use income thresholds for the appropriate household size but can use a default household size of three when easier for administration or when measuring income for a general community.
The income limit for 300 percent of the Federal Poverty Guidelines for a household of three is $65,880 per year.3 In other words, recipients can always presume that a household earning below this level, or a community with median income below this level, is impacted by the pandemic and eligible for services to respond. Additionally, by following the steps detailed in the section Framework for Eligible Uses Beyond Those Enumerated, recipients may designate additional households as impacted or disproportionately impacted beyond these presumptions, and may also pursue projects not listed below in response to these impacts consistent with Treasury’s standards.
3 For recipients in Alaska, the income limit for 300 percent of the Federal Poverty Guidelines for a household of three is $82,350 per year. For recipients in Hawaii, the income limit for 300 percent of the Federal Poverty Guidelines for a household of three is $75,780 per year.
4.a
Packet Pg. 27
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 18 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Treasury recognizes the enumerated projects below, which have been expanded under the final rule, as eligible to respond to impacts of the pandemic on households and communities:
✓ Food assistance & food banks
✓ Emergency housing assistance: rental
assistance, mortgage assistance, utility
assistance, assistance paying delinquent
property taxes, counseling and legal aid to
prevent eviction and homelessness &
emergency programs or services for homeless
individuals, including temporary residences
for people experiencing homelessness
✓ Health insurance coverage expansion
✓ Benefits for surviving family members of
individuals who have died from COVID-19
✓ Assistance to individuals who want and are
available for work, including job training,
public jobs programs and fairs, support for
childcare and transportation to and from a
jobsite or interview, incentives for newly-
employed workers, subsidized employment,
grants to hire underserved workers,
assistance to unemployed individuals to start
small businesses & development of job and
workforce training centers
✓ Financial services for the unbanked and
underbanked
✓ Burials, home repair & home weatherization
✓ Programs, devices & equipment for internet
access and digital literacy, including subsidies
for costs of access
✓ Cash assistance
✓ Paid sick, medical, and family leave programs
✓ Assistance in accessing and applying for
public benefits or services
✓ Childcare and early learning services, home
visiting programs, services for child welfare-
involved families and foster youth & childcare
facilities
✓ Assistance to address the impact of learning
loss for K-12 students (e.g., high-quality
tutoring, differentiated instruction)
✓ Programs or services to support long-term
housing security: including development of
affordable housing and permanent
supportive housing
✓ Certain contributions to an Unemployment
Insurance Trust Fund4
4 Recipients may only use SLFRF funds for contributions to unemployment insurance trust funds and repayment of the principal amount due on advances received under Title XII of the Social Security Act up to an amount equal to (i) the difference between the balance in the recipient’s unemployment insurance trust fund as of January 27, 2020 and the balance of such account as of May 17, 2021, plus (ii) the principal amount outstanding as of May 17, 2021 on any advances received under Title XII of the Social Security Act between January 27, 2020 and May 17, 2021. Further, recipients may use SLFRF funds for the payment of any interest due on such Title XII advances. Additionally, a recipient that deposits SLFRF funds into its unemployment insurance trust fund to fully restore the pre-pandemic balance may not draw down that balance and deposit more SLFRF funds, back up to the pre-pandemic balance. Recipients that deposit SLFRF funds into an unemployment insurance trust fund, or use SLFRF funds to repay principal on Title XII advances, may not take action to reduce benefits available to unemployed workers by changing the computation method governing regular unemployment compensation in a way that results in a reduction of average weekly benefit amounts or the number of weeks of benefits payable (i.e., maximum benefit entitlement).
4.a
Packet Pg. 28
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 19 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Disproportionately Impacted Households and Communities
Treasury presumes the following households and communities are disproportionately impacted by the pandemic:
✓ Low -income households and communities
✓ Households residing in Qualified Census
Tracts
✓ Households that qualify for certain federal
5benefits
✓ Households receiving services provided by
Tribal governments
✓ Households residing in the U.S. territories or
receiving services from these governments
Low-income households and communities are those with (i) income at or below 185 percent of the Federal Poverty Guidelines for the size of its household based on the most recently published poverty guidelines or (ii) income at or below 40 percent of area median income for its county and size of household based on the most recently published data. For the vast majority of communities, the Federal Poverty Guidelines level is higher than the area median income level and using this level would result in more households and communities being presumed eligible. Treasury has provided an easy-to-use spreadsheet with Federal Poverty Guidelines and area median income levels on its website.
Recipients can measure income for a specific household or the median income for the community, depending on whether the service they plan to provide serves specific households or the general community. The income thresholds vary by household size; recipients should generally use income thresholds for the appropriate household size but can use a default household size of three when easier for administration or when measuring income for a general community.
The income limit for 185 percent of the Federal Poverty Guidelines for a household of three is $40,626 per year.6 In other words, recipients can always presume that a household earning below this level, or a community with median income below this level, is disproportionately impacted by the pandemic and eligible for services to respond.
5 These programs are Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP), Free- and Reduced-Price Lunch (NSLP) and/or School Breakfast (SBP) programs, Medicare Part D Low-Income Subsidies, Supplemental Security Income (SSI), Head Start and/or Early Head Start, Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), Section 8 Vouchers, Low-Income Home Energy Assistance Program (LIHEAP), and Pell Grants. For services to address educational disparities, Treasury will recognize Title I eligible schools as disproportionately impacted and responsive services that support the school generally or support the whole school as eligible. 6 For recipients in Alaska, the income limit for 185 percent of the Federal Poverty Guidelines for a household of three is $50,783 per year. For recipients in Hawaii, the income limit for 185 percent of the Federal Poverty Guidelines for a household of three is $46,731 per year
4.a
Packet Pg. 29
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 20 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Treasury recognizes the enumerated projects below, which have been expanded under the final rule, as eligible to respond to disproportionate impacts of the pandemic on households and communities:
✓ Pay for community health workers to help
households access health & social services
✓ Remediation of lead paint or other lead
hazards
✓ Primary care clinics, hospitals, integration of
health services into other settings, and other
investments in medical equipment & facilities
designed to address health disparities
✓ Housing vouchers & assistance relocating to
neighborhoods with higher economic
opportunity
✓ Investments in neighborhoods to promote
improved health outcomes
✓ Improvements to vacant and abandoned
properties, including rehabilitation or
maintenance, renovation, removal and
remediation of environmental contaminants,
demolition or deconstruction, greening/vacant lot
cleanup & conversion to affordable housing7
✓ Services to address educational disparities,
including assistance to high-poverty school
districts & educational and evidence-based
services to address student academic, social,
emotional, and mental health needs
✓ Schools and other educational equipment &
facilities
7 Please see the final rule for further details and conditions applicable to this eligible use. This includes Treasury’s presumption that demolition of vacant or abandoned residential properties that results in a net reduction in occupiable housing units for low- and moderate-income individuals in an area where the availability of such housing is lower than the need for such housing is ineligible for support with SLFRF funds.
4.a
Packet Pg. 30
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 21 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Assistance to Small Businesses
Small businesses have faced widespread challenges due to the pandemic, including periods of shutdown, declines in revenue, or increased costs. The final rule provides many tools for recipients to respond to the impacts of the pandemic on small businesses, or disproportionate impacts on businesses where pre-existing disparities like lack of access to capital compounded the pandemic’s effects.
Small businesses eligible for assistance are those that experienced negative economic impacts or disproportionate impacts of the pandemic and meet the definition of “small business,” specifically:
1. Have no more than 500 employees, or if applicable, the size standard in number of employees established by the Administrator of the Small Business Administration for the industry in which the business concern or organization operates, and
2. Are a small business concern as defined in section 3 of the Small Business Act8 (which includes, among other requirements, that the business is independently owned and operated and is not dominant in its field of operation).
Impacted Small Businesses
Recipients can identify small businesses impacted by the pandemic, and measures to respond, in many ways; for example, recipients could consider:
✓ Decreased revenue or gross receipts
✓ Financial insecurity
✓ Increased costs
✓ Capacity to weather financial hardship
✓ Challenges covering payroll, rent or
mortgage, and other operating costs
Assistance to small businesses that experienced negative economic impacts includes the following enumerated uses:
✓ Loans or grants to mitigate financial
hardship, such as by supporting payroll
and benefits, costs to retain employees,
and mortgage, rent, utility, and other
operating costs
✓ Technical assistance, counseling, or other
services to support business planning
Disproportionately Impacted Small Businesses
Treasury presumes that the following small businesses are disproportionately impacted by the pandemic:
8 15 U.S.C. 632.
4.a
Packet Pg. 31
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 22 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
✓ Small businesses operating in Qualified
Census Tracts
✓ Small businesses operated by Tribal
governments or on Tribal lands
✓ Small businesses operating in the U.S.
territories
Assistance to disproportionately impacted small businesses includes the following enumerated uses, which have been expanded under the final rule:
✓ Rehabilitation of commercial properties,
storefront improvements & façade
improvements
✓ Technical assistance, business incubators &
grants for start-up or expansion costs for
small businesses
✓ Support for microbusinesses, including
financial, childcare, and transportation costs
4.a
Packet Pg. 32
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 23 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Assistance to Nonprofits
Nonprofits have faced significant challenges due to the pandemic’s increased demand for services and changing operational needs, as well as declines in revenue sources such as donations and fees.
Nonprofits eligible for assistance are those that experienced negative economic impacts or disproportionate impacts of the pandemic and meet the definition of “nonprofit”—specifically those that are 501(c)(3) or 501(c)(19) tax-exempt organizations.
Impacted Nonprofits
Recipients can identify nonprofits impacted by the pandemic, and measures to respond, in many ways; for example, recipients could consider:
✓ Decreased revenue (e.g., from donations
and fees)
✓ Financial insecurity
✓ Increased costs (e.g., uncompensated
increases in service need)
✓ Capacity to weather financial hardship
✓ Challenges covering payroll, rent or
mortgage, and other operating costs
Assistance to nonprofits that experienced negative economic impacts includes the following enumerated uses:
✓ Loans or grants to mitigate financial
hardship
✓ Technical or in-kind assistance or other
services that mitigate negative economic
impacts of the pandemic
Disproportionately Impacted Nonprofits
Treasury presumes that the following nonprofits are disproportionately impacted by the pandemic:
✓ Nonprofits operating in Qualified Census
Tracts
✓ Nonprofits operated by Tribal
governments or on Tribal lands
✓ Nonprofits operating in the U.S. territories
Recipients may identify appropriate responses that are related and reasonably proportional to addressing these disproportionate impacts.
4.a
Packet Pg. 33
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 24 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Aid to Impacted Industries
Recipients may use SLFRF funding to provide aid to industries impacted by the COVID-19 pandemic.
Recipients should first designate an impacted industry and then provide aid to address the impacted industry’s negative economic impact.
This sub-category of eligible uses does not separately identify disproportionate impacts and corresponding responsive services.
1. Designating an impacted industry. There are two main ways an industry can be designated as “impacted.”
1. If the industry is in the travel, tourism, or hospitality sectors (including Tribal development districts), the industry is impacted.
2. If the industry is outside the travel, tourism, or hospitality sectors, the industry is impacted if:
a. The industry experienced at least 8 percent employment loss from pre-pandemic levels,9 or
b. The industry is experiencing comparable or worse economic impacts as the national tourism, travel, and hospitality industries as of the date of the final rule, based on the totality of economic indicators or qualitative data (if quantitative data is unavailable), and if the impacts were generally due to the COVID-19 public health emergency.
Recipients have flexibility to define industries broadly or narrowly, but Treasury encourages recipients to define narrow and discrete industries eligible for aid. State and territory recipients also have flexibility to define the industries with greater geographic precision; for example, a state may identify a particular industry in a certain region of a state as impacted.
2. Providing eligible aid to the impacted industry. Aid may only be provided to support businesses, attractions, and Tribal development districts operating prior to the pandemic and affected by required closures and other efforts to contain the pandemic. Further, aid should be generally broadly available to all businesses within the impacted industry to avoid potential conflicts of interest, and Treasury encourages aid to be first used for operational expenses, such as payroll, before being used on other types of costs.
9 Specifically, a recipient should compare the percent change in the number of employees of the recipient’s identified industry and the national Leisure & Hospitality sector in the three months before the pandemic’s most severe impacts began (a straight three-month average of seasonally-adjusted employment data from December 2019, January 2020, and February 2020) with the latest data as of the final rule (a straight three-month average of seasonally-adjusted employment data from September 2021, October 2021, and November 2021). For parity and simplicity, smaller recipients without employment data that measure industries in their specific jurisdiction may use data available for a broader unit of government for this calculation (e.g., a county may use data from the state in which it is located; a city may use data for the county, if available, or state in which it is located) solely for purposes of determining whether a particular industry is an impacted industry.
4.a
Packet Pg. 34
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 25 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Treasury recognizes the enumerated projects below as eligible responses to impacted industries.
✓ Aid to mitigate financial hardship, such
as supporting payroll costs, lost pay and
benefits for returning employees,
support of operations and maintenance
of existing equipment and facilities
✓ Technical assistance, counseling, or
other services to support business
planning
✓ COVID-19 mitigation and infection
prevention measures (see section Public
Health)
As with all eligible uses, recipients may pursue a project not listed above by undergoing the steps outlined in the section Framework for Eligible Uses Beyond Those Enumerated.
4.a
Packet Pg. 35
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 26 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
PUBLIC SECTOR CAPACITY
Recipients may use SLFRF funding to restore and bolster public sector capacity, which supports government’s ability to deliver critical COVID-19 services. There are three main categories of eligible uses to bolster public sector capacity and workforce: Public Safety, Public Health, and Human Services Staff; Government Employment and Rehiring Public Sector Staff; and Effective Service Delivery.
Public Safety, Public Health, and Human Services Staff
SLFRF funding may be used for payroll and covered benefits for public safety, public health, health care, human services and similar employees of a recipient government, for the portion of the employee’s time spent responding to COVID-19. Recipients should follow the steps below.
1. Identify eligible public safety, public health, and human services staff. Public safety staff include:
✓ Police officers (including state police
officers)
✓ Sheriffs and deputy sheriffs
✓ Firefighters
✓ Emergency medical responders
✓ Correctional and detention officers
✓ Dispatchers and supervisor personnel
that directly support public safety staff
Public health staff include:
✓ Employees involved in providing medical
and other physical or mental health
services to patients and supervisory
personnel, including medical staff
assigned to schools, prisons, and other
such institutions
✓ Laboratory technicians, medical
examiners, morgue staff, and other
support services essential for patient
care
✓ Employees of public health
departments directly engaged in
public health matters and related
supervisory personnel
Human services staff include:
✓ Employees providing or administering
social services and public benefits
✓ Child welfare services employees
✓ Child, elder, or family care employees
2. Assess portion of time spent on COVID-19 response for eligible staff.
Recipients can use a variety of methods to assess the share of an employees’ time spent responding to COVID-19, including using reasonable estimates—such as estimating the share of time based on discussions with staff and applying that share to all employees in that position.
For administrative convenience, recipients can consider public health and safety employees entirely devoted to responding to COVID-19 (and their payroll and benefits fully covered by SLFRF) if the
4.a
Packet Pg. 36
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 27 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
employee, or his or her operating unit or division, is “primarily dedicated” to responding to COVID-
19. Primarily dedicated means that more than half of the employee, unit, or division’s time is dedicated to responding to COVID-19.
Recipients must periodically reassess their determination and maintain records to support their assessment, although recipients do not need to track staff hours.
3. Use SLFRF funding for payroll and covered benefits for the portion of eligible staff time spent on COVID-19 response. SLFRF funding may be used for payroll and covered benefits for the portion of the employees’ time spent on COVID-19 response, as calculated above, through the period of performance.
Government Employment and Rehiring Public Sector Staff
Under the increased flexibility of the final rule, SLFRF funding may be used to support a broader set of uses to restore and support public sector employment. Eligible uses include hiring up to a pre-pandemic baseline that is adjusted for historic underinvestment in the public sector, providing additional funds for employees who experienced pay cuts or were furloughed, avoiding layoffs, providing worker retention incentives, and paying for ancillary administrative costs related to hiring, support, and retention. • Restoring pre-pandemic employment. Recipients have two options to restore pre-pandemic employment, depending on the recipient’s needs.
• If the recipient simply wants to hire back employees for pre-pandemic positions: Recipients may use SLFRF funds to hire employees for the same positions that existed on January 27, 2020 but that were unfilled or eliminated as of March 3, 2021. Recipients may use SLFRF funds to cover payroll and covered benefits for such positions through the period of performance.
• If the recipient wants to hire above the pre-pandemic baseline and/or would like to have flexibility in positions: Recipients may use SLFRF funds to pay for payroll and covered benefits associated with the recipient increasing its number of budgeted FTEs up to 7.5 percent above its pre-pandemic baseline. Specifically, recipients should undergo the following steps:
a. Identify the recipient’s budgeted FTE level on January 27, 2020. This includes all budgeted positions, filled and unfilled. This is called the pre-pandemic baseline. b. Multiply the pre-pandemic baseline by 1.075. This is called the adjusted pre- pandemic baseline.
c. Identify the recipient’s budgeted FTE level on March 3, 2021, which is the beginning of the period of performance for SLFRF funds. Recipients may, but are not required to, exclude the number of FTEs dedicated to responding to the COVID-19 public health emergency. This is called the actual number of FTEs. d. Subtract the actual number of FTEs from the adjusted pre-pandemic baseline to calculate the number of FTEs that can be covered by SLFRF funds. Recipients do not have to hire for the same roles that existed pre-pandemic.
4.a
Packet Pg. 37
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 28 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Recipients may use SLFRF funds to cover payroll and covered benefits through the period of performance; these employees must have begun their employment on or after March 3, 2021. Recipients may only use SLFRF funds for additional FTEs hired over the March 3, 2021 level (i.e., the actual number of FTEs).
• Supporting and retaining public sector workers. Recipients can also use funds in other ways that support the public sector workforce.10 These include:
o Providing additional funding for employees who experienced pay reductions or were furloughed since the onset of the pandemic, up to the difference in the employee’s pay, taking into account unemployment benefits received.
o Maintaining current compensation levels to prevent layoffs. SLFRF funds may be used to maintain current compensation levels, with adjustments for inflation, in order to prevent layoffs that would otherwise be necessary.
o Providing worker retention incentives, including reasonable increases in compensation to persuade employees to remain with the employer as compared to other employment options. Retention incentives must be entirely additive to an employee’s regular compensation, narrowly tailored to need, and should not exceed incentives traditionally offered by the recipient or compensation that alternative employers may offer to compete for the employees. Treasury presumes that retention incentives that are less than 25 percent of the rate of base pay for an individual employee or 10 percent for a group or category of employees are reasonably proportional to the need to retain employees, as long as other requirements are met.
• Covering administrative costs associated with administering the hiring, support, and retention programs above.
Effective Service Delivery
SLFRF funding may be used to improve the efficacy of public health and economic programs through tools like program evaluation, data, and outreach, as well as to address administrative needs caused or exacerbated by the pandemic. Eligible uses include:
• Supporting program evaluation, data, and outreach through:
10 Recipients should be able to substantiate that these uses of funds are substantially due to the public health emergency or its negative economic impacts (e.g., fiscal pressures on state and local budgets) and respond to its impacts. See the final rule for details on these uses.
4.a
Packet Pg. 38
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 29 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
✓ Program evaluation and evidence
resources
✓ Data analysis resources to gather,
assess, share, and use data
✓ Technology infrastructure to improve
access to and the user experience of
government IT systems, as well as
technology improvements to increase
public access and delivery of
government programs and services
✓ Community outreach and engagement
activities
✓ Capacity building resources to support
using data and evidence, including
hiring staff, consultants, or technical
assistance support
• Addressing administrative needs, including:
✓ Administrative costs for programs
responding to the public health
emergency and its economic impacts,
including non-SLFRF and non-federally
funded programs
✓ Address administrative needs caused
or exacerbated by the pandemic,
including addressing backlogs caused
by shutdowns, increased repair or
maintenance needs, and technology
infrastructure to adapt government
operations to the pandemic (e.g.,
video-conferencing software, data and
case management systems)
4.a
Packet Pg. 39
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 30 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
CAPITAL EXPENDITURES
As described above, the final rule clarifies that recipients may use funds for programs, services, and capital expenditures that respond to the public health and negative economic impacts of the pandemic.
Any use of funds in this category for a capital expenditure must comply with the capital expenditure requirements, in addition to other standards for uses of funds.
Capital expenditures are subject to the same eligibility standard as other eligible uses to respond to the pandemic’s public health and economic impacts; specifically, they must be related and reasonably proportional to the pandemic impact identified and reasonably designed to benefit the impacted population or class.
For ease of administration, the final rule identifies enumerated types of capital expenditures that Treasury has identified as responding to the pandemic’s impacts; these are listed in the applicable sub- category of eligible uses (e.g., public health, assistance to households, etc.). Recipients may also identify other responsive capital expenditures. Similar to other eligible uses in the SLFRF program, no pre- approval is required for capital expenditures.
To guide recipients’ analysis of whether a capital expenditure meets the eligibility standard, recipients (with the exception of Tribal governments) must complete and meet the requirements of a written justification for capital expenditures equal to or greater than $1 million. For large-scale capital expenditures, which have high costs and may require an extended length of time to complete, as well as most capital expenditures for non-enumerated uses of funds, Treasury requires recipients to submit their written justification as part of regular reporting. Specifically:
If a project has
total capital
expenditures
of
and the use is enumerated by Treasury
as eligible, then
and the use is beyond those
enumerated by Treasury as eligible,
then
Less than $1
million
No Written Justification required No Written Justification required Greater than or
equal to $1
million, but
less than $10
million
Written Justification required but
recipients are not required to submit as
part of regular reporting to Treasury Written Justification required and recipients must submit as part of regular
reporting to Treasury
$10 million or
more
Written Justification required and
recipients must submit as part of regular
reporting to Treasury
A Written Justification includes:
• Description of the harm or need to be addressed. Recipients should provide a description of the specific harm or need to be addressed and why the harm was exacerbated or caused by the public health emergency. Recipients may provide quantitative information on the extent and the type of harm, such as the number of individuals or entities affected.
4.a
Packet Pg. 40
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 31 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
• Explanation of why a capital expenditure is appropriate. For example, recipients should include an explanation of why existing equipment and facilities, or policy changes or additional funding to pertinent programs or services, would be inadequate. • Comparison of proposed capital project against at least two alternative capital expenditures and demonstration of why the proposed capital expenditure is superior. Recipients should consider the effectiveness of the capital expenditure in addressing the harm identified and the expected total cost (including pre-development costs) against at least two alternative capital expenditures.
Where relevant, recipients should consider the alternatives of improving existing capital assets already owned or leasing other capital assets.
Treasury presumes that the following capital projects are generally ineligible:
Construction of new correctional
facilities as a response to an increase in
rate of crime
Construction of new congregate
facilities to decrease spread of COVID-19
in the facility
Construction of convention centers,
stadiums, or other large capital projects
intended for general economic
development or to aid impacted
industries
In undertaking capital expenditures, Treasury encourages recipients to adhere to strong labor standards, including project labor agreements and community benefits agreements that offer wages at or above the prevailing rate and include local hire provisions. Treasury also encourages recipients to prioritize in their procurements employers with high labor standards and to prioritize employers without recent violations of federal and state labor and employment laws.
4.a
Packet Pg. 41
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 32 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
FRAMEWORK FOR ELIGIBLE USES BEYOND THOSE ENUMERATED
As described above, recipients have broad flexibility to identify and respond to other pandemic impacts and serve other populations that experienced pandemic impacts, beyond the enumerated uses and presumed eligible populations. Recipients should undergo the following steps to decide whether their project is eligible:
Step 1. Identify COVID-19 public health or
economic impact
2. Design a response that addresses or
responds to the impact
Analysis • Can identify impact to a specific
household, business or nonprofit or to
a class of households, businesses or
nonprofits (i.e., group)
• Can also identify disproportionate
impacts, or more severe impacts, to a
specific beneficiary or to a class
• Types of responses can include a
program, service, or capital
expenditure
• Response should be related and
reasonably proportional to the harm
• Response should also be reasonably
designed to benefit impacted
individual or class
1. Identify a COVID-19 public health or negative economic impact on an individual or a class.
Recipients should identify an individual or class that is “impacted” or “disproportionately impacted” by the COVID-19 public health emergency or its negative economic impacts as well as the specific impact itself.
• “Impacted” entities are those impacted by the disease itself or the harmful consequences of the economic disruptions resulting from or exacerbated by the COVID- 19 public health emergency. For example, an individual who lost their job or a small business that saw lower revenue during a period of closure would both have experienced impacts of the pandemic.
• “Disproportionately impacted” entities are those that experienced disproportionate public health or economic outcomes from the pandemic; Treasury recognizes that pre- existing disparities, in many cases, amplified the impacts of the pandemic, causing more severe impacts in underserved communities. For example, a household living in a neighborhood with limited access to medical care and healthy foods may have faced health disparities before the pandemic, like a higher rate of chronic health conditions, that contributed to more severe health outcomes during the COVID-19 pandemic.
The recipient may choose to identify these impacts at either the individual level or at a class level. If the recipient is identifying impacts at the individual level, they should retain documentation supporting the impact the individual experienced (e.g., documentation of lost revenues from a small business). Such documentation can be streamlined in many cases (e.g., self-attestation that a household requires food assistance).
Recipients also have broad flexibility to identify a “class” – or a group of households, small businesses, or nonprofits – that experienced an impact. In these cases, the recipients should
4.a
Packet Pg. 42
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 33 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
first identify the class and the impact that it faced. Then, recipients only need to document that the individuals served fall within that class; recipients do not need to document a specific impact to each individual served. For example, a recipient could identify that restaurants in the downtown area faced substantial declines in revenue due to decreased foot traffic from workers; the recipient could develop a program to respond to the impact on that class and only needs to document that the businesses being served are restaurants in the downtown area.
Recipients should keep the following considerations in mind when designating a class:
• There should be a relationship between the definition of the class and the proposed response. Larger and less-specific classes are less likely to have experienced similar harms, which may make it more difficult to design a response that appropriately responds to those harms.
• Classes may be determined on a population basis or on a geographic basis, and the response should be appropriately matched. For example, a response might be designed to provide childcare to single parents, regardless of which neighborhood they live in, or a response might provide a park to improve the health of a disproportionately impacted neighborhood.
• Recipients may designate classes that experienced disproportionate impact, by assessing the impacts of the pandemic and finding that some populations experienced meaningfully more severe impacts than the general public. To determine these disproportionate impacts, recipients:
o May designate classes based on academic research or government research publications (such as the citations provided in the supplementary information in the final rule), through analysis of their own data, or through analysis of other existing data sources.
o May also consider qualitative research and sources to augment their analysis, or when quantitative data is not readily available. Such sources might include resident interviews or feedback from relevant state and local agencies, such as public health departments or social services departments. o Should consider the quality of the research, data, and applicability of analysis to their determination in all cases.
• Some of the enumerated uses may also be appropriate responses to the impacts experienced by other classes of beneficiaries. It is permissible for recipients to provide these services to other classes, so long as the recipient determines that the response is also appropriate for those groups.
• Recipients may designate a class based on income level, including at levels higher than the final rule definition of "low- and moderate-income." 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.
2. Design a response that addresses or responds to the impact. Programs, services, and other interventions must be reasonably designed to benefit the individual or class that experienced
4.a
Packet Pg. 43
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 34 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
the impact. They must also be related and reasonably proportional to the extent and type of impact experienced. For example, uses that bear no relation or are grossly disproportionate to the type or extent of the impact would not be eligible.
“Reasonably proportional” refers to the scale of the response compared to the scale of the harm, as well as 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 a very small amount of aid to a group that experienced severe harm and a much larger amount to a group that experienced relatively little harm. Recipients should consider relevant factors about the harm identified and the response to evaluate whether the response is reasonably proportional. 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.
For disproportionately impacted communities, recipients may design interventions that address broader pre-existing disparities that contributed to more severe health and economic outcomes during the pandemic, such as disproportionate gaps in access to health care or pre-existing disparities in educational outcomes that have been exacerbated by the pandemic.
4.a
Packet Pg. 44
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 35 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Premium Pay
The Coronavirus State and Local Fiscal Recovery Funds may be used to provide premium pay to eligible workers performing essential work during the pandemic. Premium pay may be awarded to eligible workers up to $13 per hour. Premium pay must be in addition to wages or remuneration (i.e., compensation) the eligible worker otherwise receives. Premium pay may not exceed $25,000 for any single worker during the program.
Recipients should undergo the following steps to provide premium pay to eligible workers.
1. Identify an “eligible” worker. Eligible workers include workers “needed to maintain continuity of operations of essential critical infrastructure sectors.” These sectors and occupations are eligible:
✓ Health care
✓ Emergency response
✓ Sanitation, disinfection & cleaning
✓ Maintenance
✓ Grocery stores, restaurants, food
production, and food delivery
✓ Pharmacy
✓ Biomedical research
✓ Behavioral health
✓ Medical testing and diagnostics
✓ Home and community-based health care
or assistance with activities of daily living
✓ Family or child care
✓ Social services
✓ Public health
✓ Mortuary
✓ Critical clinical research, development,
and testing necessary for COVID-19
response
✓ State, local, or Tribal government
workforce
✓ Workers providing vital services to
Tribes
✓ Educational, school nutrition, and other
work required to operate a school
facility
✓ Laundry
✓ Elections
✓ Solid waste or hazardous materials
management, response, and cleanup
✓ Work requiring physical interaction with
patients
✓ Dental care
✓ Transportation and warehousing
✓ Hotel and commercial lodging facilities
that are used for COVID-19 mitigation
and containment
Beyond this list, the chief executive (or equivalent) of a recipient government may designate additional non-public sectors as critical so long as doing so is necessary to protecting the health and wellbeing of the residents of such jurisdictions.
2. Verify that the eligible worker performs “essential work,” meaning work that:
• Is not performed while teleworking from a residence; and • Involves either:
a. regular, in-person interactions with patients, the public, or coworkers of the individual that is performing the work; or
b. regular physical handling of items that were handled by, or are to be handled by, patients, the public, or coworkers of the individual that is performing the work.
4.a
Packet Pg. 45
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 36 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
3. Confirm that the premium pay “responds to” workers performing essential work during the COVID-19 public health emergency. Under the final rule, which broadened the share of eligible workers who can receive premium pay without a written justification, recipients may meet this requirement in one of three ways:
• Eligible worker receiving premium pay is earning (with the premium included) at or below 150 percent of their residing state or county’s average annual wage for all occupations, as defined by the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics, whichever is higher, on an annual basis; or
• Eligible worker receiving premium pay is not exempt from the Fair Labor Standards Act overtime provisions; or
• If a worker does not meet either of the above requirements, the recipient must submit written justification to Treasury detailing how the premium pay is otherwise responsive to workers performing essential work during the public health emergency. This may include a description of the essential worker’s duties, health, or financial risks faced due to COVID-19, and why the recipient determined that the premium pay was responsive. Treasury anticipates that recipients will easily be able to satisfy the justification requirement for front-line workers, like nurses and hospital staff.
Premium pay may be awarded in installments or lump sums (e.g., monthly, quarterly, etc.) and may be awarded to hourly, part-time, or salaried or non-hourly workers. Premium pay must be paid in addition to wages already received and may be paid retrospectively. A recipient may not use SLFRF to merely reimburse itself for premium pay or hazard pay already received by the worker, and premium pay may not be paid to volunteers.
4.a
Packet Pg. 46
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 37 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Water & Sewer Infrastructure
The Coronavirus State and Local Fiscal Recovery Funds may be used to make necessary investments in water and sewer infrastructure. State, local, and Tribal governments have a tremendous need to address the consequences of deferred maintenance in drinking water systems and removal, management, and treatment of sewage and stormwater, along with additional resiliency measures needed to adapt to climate change.
Recipients may undertake the eligible projects below:
PROJECTS ELIGIBLE UNDER EPA’S CLEAN WATER STATE REVOLVING FUND (CWSRF) Eligible projects under the CWSRF, and the final rule, include:
✓ Construction of publicly owned
treatment works
✓ Projects pursuant to implementation
of a nonpoint source pollution
management program established
under the Clean Water Act (CWA)
✓ Decentralized wastewater treatment
systems that treat municipal
wastewater or domestic sewage
✓ Management and treatment of
stormwater or subsurface drainage
water
✓ Water conservation, efficiency, or
reuse measures
✓ Development and implementation of a
conservation and management plan
under the CWA
✓ Watershed projects meeting the
criteria set forth in the CWA
✓ Energy consumption reduction for
publicly owned treatment works
✓ Reuse or recycling of wastewater,
stormwater, or subsurface drainage
water
✓ Security of publicly owned treatment
works
Treasury encourages recipients to review the EPA handbook for the CWSRF for a full list of eligibilities.
PROJECTS ELIGIBLE UNDER EPA’S DRINKING WATER STATE REVOLVING FUND (DWSRF) Eligible drinking water projects under the DWSRF, and the final rule, include:
✓ Facilities to improve drinking water
quality
✓ Transmission and distribution,
including improvements of water
pressure or prevention of
contamination in infrastructure and
lead service line replacements
✓ New sources to replace contaminated
drinking water or increase drought
resilience, including aquifer storage
and recovery system for water storage
✓ Green infrastructure, including green
roofs, rainwater harvesting collection,
permeable pavement
✓ Storage of drinking water, such as to
prevent contaminants or equalize
water demands
✓ Purchase of water systems and
interconnection of systems
✓ New community water systems
Treasury encourages recipients to review the EPA handbook for the DWSRF for a full list of eligibilities.
4.a
Packet Pg. 47
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 38 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
ADDITIONAL ELIGIBLE PROJECTS
With broadened eligibility under the final rule, SLFRF funds may be used to fund additional types of projects— such as additional stormwater infrastructure, residential wells, lead remediation, and certain rehabilitations of dams and reservoirs — beyond the CWSRF and DWSRF, if they are found to be “necessary” according to the definition provided in the final rule and outlined below. ✓ Culvert repair, resizing, and removal,
replacement of storm sewers, and
additional types of stormwater
infrastructure
✓ Infrastructure to improve access to
safe drinking water for individual
served by residential wells, including
testing initiatives, and
treatment/remediation strategies that
address contamination
✓ Dam and reservoir rehabilitation if
primary purpose of dam or reservoir is
for drinking water supply and project
is necessary for provision of drinking
water
✓ Broad set of lead remediation projects
eligible under EPA grant programs
authorized by the Water
Infrastructure Improvements for the
Nation (WIIN) Act, such as lead
testing, installation of corrosion
control treatment, lead service line
replacement, as well as water quality
testing, compliance monitoring, and
remediation activities, including
replacement of internal plumbing and
faucets and fixtures in schools and
childcare facilities
A “necessary” investment in infrastructure must be:
(1) responsive to an identified need to achieve or maintain an adequate minimum level of service, which may include a reasonable projection of increased need, whether due to population growth or otherwise,
(2) a cost-effective means for meeting that need, taking into account available alternatives, and (3) for investments in infrastructure that supply drinking water in order to meet projected population growth, projected to be sustainable over its estimated useful life.
Please note that DWSRF and CWSRF-eligible projects are generally presumed to be necessary investments. Additional eligible projects generally must be responsive to an identified need to achieve or maintain an adequate minimum level of service. Recipients are only required to assess cost- effectiveness of projects for the creation of new drinking water systems, dam and reservoir rehabilitation projects, or projects for the extension of drinking water service to meet population growth needs. Recipients should review the supplementary information to the final rule for more details on requirements applicable to each type of investment.
APPLICABLE STANDARDS & REQUIREMENTS
Treasury encourages recipients to adhere to strong labor standards, including project labor agreements and community benefits agreements that offer wages at or above the prevailing rate and include local hire provisions. Treasury also encourages recipients to prioritize in their procurements employers with high labor standards and to prioritize employers without recent violations of federal and state labor and employment laws.
4.a
Packet Pg. 48
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 39 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Broadband Infrastructure
The Coronavirus State and Local Fiscal Recovery Funds may be used to make necessary investments in broadband infrastructure, which has been shown to be critical for work, education, healthcare, and civic participation during the public health emergency. The final rule broadens the set of eligible broadband infrastructure investments that recipients may undertake.
Recipients may pursue investments in broadband infrastructure meeting technical standards detailed below, as well as an expanded set of cybersecurity investments.
BROADBAND INFRASTRUCTURE INVESTMENTS
Recipients should adhere to the following requirements when designing a broadband infrastructure project:
1. Identify an eligible area for investment. Recipients are encouraged to prioritize projects that are designed to serve locations without access to reliable wireline 100/20 Mbps broadband service (meaning service that reliably provides 100 Mbps download speed and 20 Mbps upload speed through a wireline connection), but are broadly able to invest in projects designed to provide service to locations with an identified need for additional broadband investment.
Recipients have broad flexibility to define need in their community. Examples of need could include:
✓ Lack of access to a reliable high-speed
broadband connection
✓ Lack of affordable broadband
✓ Lack of reliable service
If recipients are considering deploying broadband to locations where there are existing and enforceable federal or state funding commitments for reliable service of at least 100/20 Mbps, recipients must ensure that SLFRF funds are designed to address an identified need for additional broadband investment that is not met by existing federal or state funding commitments. Recipients must also ensure that SLFRF funds will not be used for costs that will be reimbursed by the other federal or state funding streams.
2. Design project to meet high-speed technical standards. Recipients are required to design projects to, upon completion, reliably meet or exceed symmetrical 100 Mbps download and upload speeds. In cases where it is not practicable, because of the excessive cost of the project or geography or topography of the area to be served by the project, eligible projects may be designed to reliably meet or exceed 100/20 Mbps and be scalable to a minimum of symmetrical 100 Mbps download and upload speeds.
Treasury encourages recipients to prioritize investments in fiber-optic infrastructure wherever feasible and to focus on projects that will achieve last-mile connections. Further, Treasury encourages recipients to prioritize support for broadband networks owned, operated by, or affiliated with local governments, nonprofits, and co-operatives.
4.a
Packet Pg. 49
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 40 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
3. Require enrollment in a low-income subsidy program. Recipients must require the service provider for a broadband project that provides service to households to either:
✓ Participate in the FCC’s Affordable
Connectivity Program (ACP)
✓ Provide access to a broad-based
affordability program to low-income
consumers that provides benefits
commensurate to ACP
Treasury encourages broadband services to also include at least one low-cost option offered without data usage caps at speeds sufficient for a household with multiple users to simultaneously telework and engage in remote learning. Recipients are also encouraged to consult with the community on affordability needs.
CYBERSECURITY INVESTMENTS
SLFRF may be used for modernization of cybersecurity for existing and new broadband infrastructure, regardless of their speed delivery standards. This includes modernization of hardware and software.
APPLICABLE STANDARDS & REQUIREMENTS
Treasury encourages recipients to adhere to strong labor standards, including project labor agreements and community benefits agreements that offer wages at or above the prevailing rate and include local hire provisions. Treasury also encourages recipients to prioritize in their procurements employers with high labor standards and to prioritize employers without recent violations of federal and state labor and employment laws.
4.a
Packet Pg. 50
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 41 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Restrictions on Use
While recipients have considerable flexibility to use Coronavirus State and Local Fiscal Recovery Funds to address the diverse needs of their communities, some restrictions on use of funds apply.
OFFSET A REDUCTION IN NET TAX REVENUE
• States and territories may not use this funding to directly or indirectly offset a reduction in net tax revenue resulting from a change in law, regulation, or administrative interpretation beginning on March 3, 2021, through the last day of the fiscal year in which the funds provided have been spent. If a state or territory cuts taxes during this period, it must demonstrate how it paid for the tax cuts from sources other than SLFRF, such as by enacting policies to raise other sources of revenue, by cutting spending, or through higher revenue due to economic growth. If the funds provided have been used to offset tax cuts, the amount used for this purpose must be repaid to the Treasury.
DEPOSITS INTO PENSION FUNDS
• No recipients except Tribal governments may use this funding to make a deposit to a pension fund. Treasury defines a “deposit” as an extraordinary contribution to a pension fund for the purpose of reducing an accrued, unfunded liability. While pension deposits are prohibited, recipients may use funds for routine payroll contributions connected to an eligible use of funds (e.g., for public health and safety staff). Examples of extraordinary payments include ones that:
Reduce a liability incurred prior to the
start of the COVID-19 public health
emergency and occur outside the
recipient's regular timing for making the
payment
Occur at the regular time for pension
contributions but is larger than a regular
payment would have been
ADDITIONAL RESTRICTIONS AND REQUIREMENTS
Additional restrictions and requirements that apply across all eligible use categories include:
• No debt service or replenishing financial reserves. Since SLFRF funds are intended to be used prospectively, recipients may not use SLFRF funds for debt service or replenishing financial reserves (e.g., rainy day funds).
• No satisfaction of settlements and judgments. Satisfaction of any obligation arising under or pursuant to a settlement agreement, judgment, consent decree, or judicially confirmed debt restructuring in a judicial, administrative, or regulatory proceeding is itself not an eligible use.
However, if a settlement requires the recipient to provide services or incur other costs that are an eligible use of SLFRF funds, SLFRF may be used for those costs.
• Additional general restrictions. SLFRF funds may not be used for a project that conflicts with or contravenes the purpose of the American Rescue Plan Act statute (e.g., uses of funds that
4.a
Packet Pg. 51
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 42 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
undermine COVID-19 mitigation practices in line with CDC guidance and recommendations) and may not be used in violation of the Award Terms and Conditions or conflict of interest requirements under the Uniform Guidance. Other applicable laws and regulations, outside of SLFRF program requirements, may also apply (e.g., laws around procurement, contracting, conflicts-of-interest, environmental standards, or civil rights).
4.a
Packet Pg. 52
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 43 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
Program Administration
The Coronavirus State and Local Fiscal Recovery Funds final rule details a number of administrative processes and requirements, including on distribution of funds, timeline for use of funds, transfer of funds, treatment of loans, use of funds to meet non-federal match or cost-share requirements, administrative expenses, reporting on use of funds, and remediation and recoupment of funds used for ineligible purposes. This section provides a summary for the most frequently asked questions.
TIMELINE FOR USE OF FUNDS
Under the SLFRF, funds must be used for costs incurred on or after March 3, 2021. Further, costs must be obligated by December 31, 2024, and expended by December 31, 2026.
TRANSFERS
Recipients may undertake projects on their own or through subrecipients, which carry out eligible uses on behalf of a recipient, including pooling funds with other recipients or blending and braiding SLFRF funds with other sources of funds. Localities may also transfer their funds to the state through section 603(c)(4), which will decrease the locality’s award and increase the state award amounts.
LOANS
Recipients may generally use SLFRF funds to provide loans for uses that are otherwise eligible, although there are special rules about how recipients should track program income depending on the length of the loan. Recipients should consult the final rule if they seek to utilize these provisions.
NON-FEDERAL MATCH OR COST-SHARE REQUIREMENTS
Funds available under the “revenue loss” eligible use category (sections 602(c)(1)(C) and 603(c)(1)(C) of the Social Security Act) generally may be used to meet the non-federal cost-share or matching requirements of other federal programs. However, note that SLFRF funds may not be used as the non- federal share for purposes of a state’s Medicaid and CHIP programs because the Office of Management and Budget has approved a waiver as requested by the Centers for Medicare & Medicaid Services pursuant to 2 CFR 200.102 of the Uniform Guidance and related regulations.
SLFRF funds beyond those that are available under the revenue loss eligible use category may not be used to meet the non-federal match or cost-share requirements of other federal programs, other than as specifically provided for by statute. As an example, the Infrastructure Investment and Jobs Act provides that SLFRF funds may be used to meet the non-federal match requirements of authorized Bureau of Reclamation projects and certain broadband deployment projects. Recipients should consult the final rule for further details if they seek to utilize SLFRF funds as a match for these projects.
ADMINISTRATIVE EXPENSES
SLFRF funds may be used for direct and indirect administrative expenses involved in administering the program. For details on permissible direct and indirect administrative costs, recipients should refer to Treasury’s Compliance and Reporting Guidance. Costs incurred for the same purpose in like circumstances must be treated consistently as either direct or indirect costs.
4.a
Packet Pg. 53
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation) 44 U.S. DEPARTMENT OF THE TREASURY
Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule U.S. Department of the Treasury
REPORTING, COMPLIANCE & RECOUPMENT
Recipients are required to comply with Treasury’s Compliance and Reporting Guidance, which includes submitting mandatory periodic reports to Treasury.
Funds used in violation of the final rule are subject to remediation and recoupment. As outlined in the final rule, Treasury may identify funds used in violation through reporting or other sources. Recipients will be provided with an initial written notice of recoupment with an opportunity to submit a request for reconsideration before Treasury provides a final notice of recoupment. If the recipient receives an initial notice of recoupment and does not submit a request for reconsideration, the initial notice will be deemed the final notice. Treasury may pursue other forms of remediation and monitoring in conjunction with, or as an alternative to, recoupment.
4.a
Packet Pg. 54
Attachment: SLFRF-Final-Rule-Overview (Finance: American Rescue Plan Act (ARPA) funding information and second allocation)
AGENDA
STAFF REPORT
MEETING DATE: 6/21/2022
AGENDA SECTION: B
SUBJECT:
City Clerk: Approval of the Minutes of the February 1, 2022 Meeting
Recommendation:
Approve the minutes of the February 1, 2022 Meeting.
FISCAL IMPACT:
ATTACHMENTS:
2.1.2022
12.B
Packet Pg. 55
CITY COUNCIL MEETING
MINUTES
February 1, 2022 7:00 PM
Council Chambers
400 N. Douty St.
5:00 PM CALL TO ORDER STUDY SESSION AND CLOSED SESSION:
Mayor Sharp called the meeting to order at 5:00 p.m.
ROLL CALL BY THE CITY CLERK :
PUBLIC COMMENT :
A maximum of three minutes is allowed for each speaker. Please begin your comments by stating your name and providing your city of residence.
Wendy Raygoza, owner of Fatte Albert's Pizza commented the Winter Wonderland event and shared her experience as a vendor.
Bob Ramos, a regular food vendor at the Winter Wonderland event, provided his feedback.
STUDY SESSION :
A. Presentation and Debriefing on the 2021 Winter Wonderland Event Director Brad Albert presented the Winter Wo nderland Event Debriefing. He also discussed the recommendations for next season and provided some of the community’s feedback. Main Street Hanford, Executive Director Michelle Brown discussed the marketing of the Winter Wonderland event. The Council provided their feedback and thanked the staff.
B. Overview of the Police Support Services
Lieutenant James Lutz presented an overv iew of the Police Support Services. L t. Lutz discussed operation details for: d etectives, case types, homicide investigations , technology capabilities used for investigations, internet crimes, autopsies, POP team assignments, Major Crimes team and assignmen ts, evidence unit. Lt. Lutz answered question from the Council. The Council thanked the staff for the presentation.
The Council convened to closed session at 6:12 p.m.
CLOSED SESSION FOR DISCUSSION OF THE FOLLOWING:
CONFERENCE WITH LEGAL COUNSEL-REAL PROPERTY NEGOTIATIONS (GC 54956.8):
Property: 426 W. Lacey Blvd.
Agency Negotiators: Mario Cifuentez and Ty Mizote
Negotiating Party: Jose Chavarria, Medallion Supply Inc.
12.B.a
Packet Pg. 56
Attachment: 2.1.2022 (Clerk: 2.1.2022 Minutes)
Property: APN 012-086-004
Agency Negotiators: Mario Cifuentez and Ty Mizote
Negotiating Party: Anand Investments, LLC
CALL TO ORDER REGULAR SESSION:
Mayor Sharp called the meeting to order at 7:00 p.m.
ROLL CALL:
Attendee Name Title Status Arrived
Diane Sharp Mayor Present 4:50 PM
Art Brieno Council Member Present 4:55 PM
Kalish Morrow Vice Mayor Absent
Amanda Saltray Council Member Present 4:50 PM
Francisco Ramirez Council Member Present 4:55 PM
INVOCATION:
The invocation was led by George "Bucky" Weeks.
FLAG SALUTE:
The flag salute was led by Jack Schwartz.
CLOSED SESSION ACTION REPORT:
None.
COUNCIL REPORTS/GENERAL REPORTS :
Brief information -only reports from City Counc il and/or Staff, including committee reports and reports by City Council related to meetings attended at City expenses (AB1234).
Council Member’s Ramirez and Brieno had nothing to report.
Council Member Saltray discussed the conference and meetings she attended.
Mayor Sharp discussed the meetings she attended.
PUBLIC COMMENT:
This is the time for citizens to comment on subject matters not on the agenda within the jurisdiction of the Hanford City Council. This is also the public’s opportunity to request an item from the Consent Calendar be pulled for discussion purposes or to comment on any item on the agenda. Comments related to Public Hearing items will be heard at the time the item is discussed.
A maximum of three minutes is allowed for each speaker. Please begin your comments by stating your name and providing your city of residence.
Bob Ramos expressed his concerns regarding the funding f or the approved Parks Resource Officer. He also commented on the CARES funding, Hidden Valley Park, Caliva signage, and the City Attorney RFP.
12.B.a
Packet Pg. 57
Attachment: 2.1.2022 (Clerk: 2.1.2022 Minutes)
Jack Schwartz commented on the banners at the Carnegie Museum. He also announced the upcoming events for the Carnegie Museum.
Travis Paden commented the city’s revenue and water resources.
Chad Draxler commented on Vice Mayor Morrow's social media page, a nd the appointment of Council Member Saltray. He also expressed his concerns regarding trash bin violations.
CONSENT CALENDAR:
Consent Calendar items are consider ed routine and will be enacted in one motion.
There will be no separate discussion of these matters unless a request is made and then the item will be removed from the Consent Calendar to be di scussed and voted upon by a separate motion.
Council Member Brieno pulled items G and L.
Motion to approve the consent calendar except for the items pulled for separate consideration.
RESULT: APPROVED [UNANIMOUS]
MOVER: Francisco Ramirez, Council Member
SECONDER: Amanda Saltray, Council Member
AYES: Sharp, Brieno, Saltray, Ramirez
ABSENT: Morrow
A. PROCEDURAL WAIVER: Waive reading in full of resolutions and ordinances and approval and adoption of same by reading title the only
B. City Clerk: Approval of the Minutes of the June 8, 2021 Special Meeting C. City Clerk: Approval of the Minutes of the June 29, 2021 Special Meeting D. City Attorney: Approval of an Agreement between the City of Hanford and 198/43, LLC, for the purpose of memorializing the purpos e of Job Creation as a result of the EDA Grant for Sewer Trunk Main Project
E. City Attorney: Approval of a a greenhouse construction project on the City property leased to City Farm Industries, Inc. and authorization for the City Manager to sign the Landow ner’s Statement of Compliance that Kings County is requiring for the construction of the greenhouses.
F. IT: Approval of the purchase of additional implementation services from Tyler Technologies for the implementation of th e EnerGov software in the amoun t of $65,120.00 and Appropriation of the funding from the Computer Replacement Reserve to cover the cost of the contract change G. Public Works: Approval of a Notice of Completion for the FY 18/19 CDBG Pedestrian Accessibility and Safety and Additional Str eet Lighting Project and authorization for the Mayor to execut e and the City Clerk to attest and fi le said Notice with the Kings County Recorder's Office.
12.B.a
Packet Pg. 58
Attachment: 2.1.2022 (Clerk: 2.1.2022 Minutes)
H. Public Works: Approval of a Notice of Completion for the FY 20/21 P avement Resurfacing: Mill & Fill (Davis & Northstar) Project at a total construction cost of $401,869.60 and authorization for the Mayor to execute and the City Clerk to attest and file said Notice with the Kings County Recorder's Office.
I. Public Works: Approval of a payment to King's Petroleum, for the purchase of diesel fuel for Fleet Operations, in the amount is $30,085.59.
J. Finance: Receive and File the City of Hanford's Quarterly Investment Portfolio and Transactions Reports
PULLED ITEMS:
1. Park and Community Services: Adoption of Resolution No. 22-03-R, approving the submittal of a $6 mi llion Grant Application for the Land and Water Conservation Fund for the additional development of Heroes Park
[Item G]
Pulled by Council Member Brieno.
Parks and Community Services Director Brad Albert discussed the grant for the development of Heroes Park and answered questions from Council Member Brieno.
Motion to approve.
RESULT: APPROVED [UNANIMOUS]
MOVER: Art Brieno, Council Member
SECONDER: Amanda Saltray, Council Member
AYES: Sharp, Brieno, Saltray, Ramirez
ABSENT: Morrow
2. Finance: Second Reading and Adoption of Ordinance No. 21- 15, amending Chapters 2.48 of the City of Hanford Municipal Code to update the rules governing the purchase of goods and services for the City of Hanford.
[Item L]
Pulled by Council Member Brieno.
Council Member Brieno will not vote on the item.
Motion to approve.
RESULT: APPROVED [3 TO 0]
MOVER: Amanda Saltray, Council Member
SECONDER: Francisco Ramirez, Council Member
AYES: Sharp, Saltray, Ramirez
ABSTAIN: Brieno
ABSENT: Morrow
12.B.a
Packet Pg. 59
Attachment: 2.1.2022 (Clerk: 2.1.2022 Minutes)
GENERAL BUSINESS:
A. Finance/Community Development: Consideration of appropriating $33,000 for Fiscal Year 2021/2022 and $92,000 anticipated annually in the future from the General Fund for a Code Compliance Officer and add the position to the City's Position Allocation Schedule Building Official Tom Webb provide d an overview of staffing history and discussed the departments highlights and the need for one more Code Compliance Officer . City Manager Mario Cifuentez discussed the increased calls for service due to COVID- 19 and the expectation of the need for additiona l staff after the island annexations. Staff answered questions from the Council. After a lengthy discussion, Council Member Brieno did not support the staff’s recommendation and suggested adding a part-time position rather than a full -time position.
Motion to approve a part -time position was introduced by Council Member Brieno, seconded by Council Member Ramirez. Motion failed. (2/2)
Motion to approve as presented. (2/2)
RESULT: FAILED [2 TO 2]
MOVER: Amanda Saltray, Council Member
SECONDER: Diane Sharp, Mayor
AYES: Sharp, Saltray
NAYS: Brieno, Ramirez
ABSENT: Morrow
B. Administration: Ado ption of Resolution No. 22- 01-R, thereby establishing the selec tion and award process for Commercial Cannabis Business Permits, consistent with HMC 5.56.090(A) City Manager Mario Cifuentez discussed the amend ment and provided an overview the Cannab is Business Permit process and invited questions from the Council. Poli ce Chief Park Sever answered q uestions from Council Member Brieno.
Motion to approve.
RESULT: APPROVED [UNANIMOUS]
MOVER: Art Brieno, Council Member
SECONDER: Amanda Saltray, Council Member
AYES: Sharp, Brieno, Saltray, Ramirez
ABSENT: Morrow
C. Council: Receive and discuss the li st o f committees and boards that have City Council representation directly approved by the Council and make appropriate committee assignments.
Mayor Sharp discussed the committee assignments.
Motion to approve.
12.B.a
Packet Pg. 60
Attachment: 2.1.2022 (Clerk: 2.1.2022 Minutes)
RESULT: APPROVED [UNANIMOUS]
MOVER: Francisco Ramirez, Council Member
SECONDER: Art Brieno, Council Member
AYES: Sharp, Brieno, Saltray, Ramirez
ABSENT: Morrow
CONVENE AS SUCCESSOR AGENCY :
Mayor Sharp convened as Successor Agency at 8:12 p.m.
PUBLIC COMMENT-SUCCESSOR AGENCY :
Any person may dire ctly address the Board at this time on any item on the agenda, or on any item that is within the subject matter jurisdiction of the Board. A maximum of three minutes is allowed for each speaker.
None.
SUCCESSOR AGENCY FOR THE DISCUSSION OF THE FOLLOWING :
Finance: Review and approval of the Recognized Obligation Payment Schedule (ROPS 22- 23) for the period July 1, 2022 to June 30, 2023
Finance Director Chris Tavarez discussed the report and answered questions from the Council. City Attorney Ty Mizote answered Council Member Brieno’s questions regarding the project the area.
Motion to approve.
RESULT: APPROVED [UNANIMOUS]
MOVER: Amanda Saltray, Council Member
SECONDER: Diane Sharp, Mayor
AYES: Sharp, Brieno, Saltray, Ramirez
ABSENT: Morrow
ADJOURN AS THE SUCCESSOR AGENCY :
Mayor Sharp adjourned as the Successor Agency at 8:18 p.m.
COUNCIL COMMENTS AND COMMUNICATIONS :
At this time, an y Council Member may ask a question for clarification, make an announcement, or report briefly on their activities. In addition, subject to Council Policies and Procedures, they may request staff to report back t o the Council at a subsequent meeting concerning any matter or take action to direct staff to place a matter of business on a future agenda. (GC 54954.2)
Council Future Agenda Items
None.
ADJOURNMENT:
Mayor Sharp adjourned the meeting at 8:25 p.m.
12.B.a
Packet Pg. 61
Attachment: 2.1.2022 (Clerk: 2.1.2022 Minutes)
Respectfully Submitted,
Natalie Corral
City Clerk
12.B.a
Packet Pg. 62
Attachment: 2.1.2022 (Clerk: 2.1.2022 Minutes)
AGENDA
STAFF REPORT
MEETING DATE: 6/21/2022
AGENDA SECTION: C
SUBJECT:
City Clerk: Approval of the Minutes of the February 15, 2022 Meeting
Recommendation:
Approve the minutes of the February 15, 2022 Meeting.
FISCAL IMPACT:
ATTACHMENTS:
2.15.2022
12.C
Packet Pg. 63
CITY COUNCIL MEETING
MINUTES
February 15, 2022 7:00 PM
Council Chambers
400 N. Douty St.
6:00 PM CALL TO ORDER STUDY SESSION AND CLOSED SESSION:
Mayor Sharp called the study and closed session to order at 6:00 p.m.
ROLL CALL BY THE CITY CLERK :
Present: Diane Sharp, Kalish Morrow, Francisco Ramirez, Amanda Saltray
Late: Art Brieno
PUBLIC COMMENT :
Comments from the public are limited to items on the agenda (GC 54954.3a). A maximum of three minutes is allowed for each speaker. Please begin your comments by stating your name and providing your city of residence.
None.
STUDY SESSION :
Presentation and Update on the design of the new KART Transit Center in Downtown Hanford KART Executive Director Angie Dow discussed the design of the new KART Transit Center in Downtown Hanford. Ms. Dow answered questions from the Council. The Council thanked Ms. Dow for her presentation.
The Council convened to closed session at 6:37 p.m.
CLOSED SESSION FOR DISCUSSION OF THE FOLLOWING:
CONFERENCE WITH LEGAL COUNSEL-INITIATION OF LITIGATION (GC 54956.9 (d)(4)):
One potential case.
CALL TO ORDER REGULAR SESSION:
ROLL CALL:
Attendee Name Title Status Arrived
Diane Sharp Mayor Present 5:45 PM
Art Brieno Council Member Late 6:04 PM
Kalish Morrow Vice Mayor Present 5:54 PM
12.C.a
Packet Pg. 64
Attachment: 2.15.2022 (Clerk: 2.15.2022 Minutes)
Amanda Saltray Council Member Present 5:55 PM
Francisco Ramirez Council Member Present 5:45 PM
INVOCATION:
The invocation was led by Frank Carbajal.
FLAG SALUTE:
The flag salute was led by Council Member Brieno.
CLOSED SESSION ACTION REPORT:
The closed session discussion will continue after the regular meeting adjourns.
COUNCIL REPORTS/GENERAL REPORTS:
Brief information -only reports from City Council and/or Staff, including committee reports and reports by City Council related to meetings attended at City expenses (AB1234).
Mayor Sharp, Vice Mayor Morrow and Council Member Saltray discussed the meetings and events they attended.
Council Member's Ramirez and Brieno had nothing to report.
PUBLIC COMMENT:
This is the time for citizens to comment on subject matters not on the agenda within the jurisdiction of the Hanford City Council. This is also the public’s opportunity to request an item from the Consent Calendar be pulled for discussion purposes or to comment on any item on the agenda. Comments related to Public Hearing items will be heard at the time the item is discussed.
A maximum of three minutes is allowed for each speaker. Please begin your comments by stating your name and providing your city of residence.
Bob Ramos commented on the meeting minutes and requested to pull items B and C. He also commented on the City Attorney RFP.
Rose Shapley commented on COVID-19 and expressed her concerns.
Liz Toppan, Frank Carbajal, Rochelle Hill, Melissa ( did not state her last name ), Cheryl Bernard, Steven ( did not state his last name ), Jaime Howell, John Darpli commented on the Norths tar project, ex pressed their concerns, and spoke in opposition of the project.
Kings County Behavioral Health director Lisa Lewis, PhD commented on the scheduled town hall meeting.
Teresa Meranes commented on mental health misperception and treatment programs.
Michelle Green shared her experience with mental health and spoke in support of the Northstar project.
Ken Baird shared his experience with mental health illness in his fa mily and spoke in support of the Northstar project.
Sharon Hill share d her experience with mental health illness and the assistance she has received. Ms. Hill Spoke in support of the Northstar project.
12.C.a
Packet Pg. 65
Attachment: 2.15.2022 (Clerk: 2.15.2022 Minutes)
CONSENT CALENDAR:
Consent Calendar items are considered routine and will be enacted in one motion.
There will be no separa te discussion of these matters unles s a request is made and then the item will be removed from the Consent C alendar to be discussed and voted upon by a separate motion.
Items B and C were pulled during public comment.
Motion to approve the consent calendar except the items pulled for separate consideration.
RESULT: APPROVED [UNANIMOUS]
MOVER: Francisco Ramirez, Council Member
SECONDER: Art Brieno, Council Member
AYES: Sharp, Brieno, Morrow, Saltray, Ramirez
A. PROCEDURAL WAIVER: Waive reading in full of resolutions and ordinances and approval and adoption of same by reading title the only.
B. Public Works: Authoriz ation to advertise for bids for the FY 21/22 Pavement Resurfacing Treatment Project, and Pre- Authorize the City Manager to award and execute the contract on behalf of the City to the lowest responsible bidder providing project bid is within current budget appropriation.
C. Public Works: Approval of a payment to King's Petroleum, for the purchase of diesel fuel for Fleet Operations, in the amount is $31,826.76.
PULLED ITEMS:
[Item A]
1. City Clerk: Approval of the Minutes of the June 15, 2021 Meeting Pulled by Bob Ramos during public comment. City Manager addressed Mr. Ramos's comments.
Motion to approve.
RESULT: APPROVED [UNANIMOUS]
MOVER: Francisco Ramirez, Council Member
SECONDER: Amanda Saltray, Council Member
AYES: Sharp, Brieno, Morrow, Saltray, Ramirez
[Item B]
2. City Clerk: Approval of the Minutes of the July 6, 2021 Meeting Pulled by Bob Ramos during public comment. City Manager addressed Mr. Ramos's comments.
Motion to approve.
12.C.a
Packet Pg. 66
Attachment: 2.15.2022 (Clerk: 2.15.2022 Minutes)
RESULT: APPROVED [UNANIMOUS]
MOVER: Francisco Ramirez, Council Member
SECONDER: Art Brieno, Council Member
AYES: Sharp, Brieno, Morrow, Saltray, Ramirez
GENERAL BUSINESS:
A. Public Works: Authorization to Reject the bid from Maggiora Bros. Drilling as a non- responsive bid; Award a contract to Zim Industries, of Fresno CA, in the amount of $3,588,500.00 for the Well No. 51 and Well No. 52 Drilling Project; Establish a construction contingency of $358,850.00; and Approve an additional appropriation of $867,350.00 from the Water Impact Fee Reserves to fully fund this project.
Public Works Director John Doyel di scussed the project for the Council's review and consideration. Dir. Doyel answered questions from Council Member Brieno.
Motion to approve.
RESULT: APPROVED [UNANIMOUS]
MOVER: Art Brieno, Council Member
SECONDER: Francisco Ramirez, Council Member
AYES: Sharp, Brieno, Morrow, Saltray, Ramirez
B. Council: Adoption of Resolution No. 22- 06-R, expressing the City’s opposition to the Statewide Initiative 21-0042A1, billed as the Taxpayer Protection and Government Accountability Act, and consistent with the Policy direction from the League of California Cities.
City Manager Mario Cifuentez discussed the resolution expressing the City’s opposition to the State wide Initiative 21-0042A1, billed as the Taxpayer Protection and Government Accountability Act, consist ent with the Policy direction from the League of California Cities and invited questions from the Council.
Motion to approve.
RESULT: APPROVED [UNANIMOUS]
MOVER: Art Brieno, Council Member
SECONDER: Amanda Saltray, Council Member
AYES: Sharp, Brieno, Morrow, Saltray, Ramirez
COUNCIL COMMENTS AND COMMUNICATIONS :
At this time, any Council Member m ay ask a question for clarification, make an announcement , or report briefly on their activities. In addition, subject to Council Policies and Procedures, they may request staff to report back to the Council at a subsequent meeting concerning any matter or take action to direct staff to place a matter of busines s on a future agenda. (GC 54954.2)
Council Member Saltray discussed the upcoming t own hall Meeting. City Manager Mario Cifuentez provided the details for the town hall meeting and answered the questions from the Council.
Mayor Sharp reconvened to closed session at 8:09 p.m.
12.C.a
Packet Pg. 67
Attachment: 2.15.2022 (Clerk: 2.15.2022 Minutes)
ADJOURNMENT:
Mayor Sharp adjourned the meeting at 8:28 p.m.
Respectfully submitted,
Natalie Corral
City Clerk
12.C.a
Packet Pg. 68
Attachment: 2.15.2022 (Clerk: 2.15.2022 Minutes)
AGENDA
STAFF REPORT
MEETING DATE: 6/21/2022
AGENDA SECTION: D
SUBJECT:
City Clerk: Denial of a claim for damages and authorization for the City Clerk to send out notification of such to Douglas Sinclair.
RECOMMENDATION:
That the City Council, by motion, approve the denial of the claim and authorize the City Clerk to send out notification of such to the claimant.
BACKGROUND:
A claim for damages against the City was received by the following claimant: Douglas Sinclair.
After review by the Third Party Administrator, it was determined that the Claim should be rejected for lack of merit in that the city does not own or maintain the Amtrak train.
Accordingly, it is the City Manager's decision to act in accordance with the recommendation of the Administrator to deny the claim.
FISCAL IMPACT:
ATTACHMENTS:
12.D
Packet Pg. 69
AGENDA
STAFF REPORT
MEETING DATE: 6/21/2022
AGENDA SECTION: E
SUBJECT:
City Clerk: Denial of a claim for damages and authorization for the City Clerk to send out notification of such to Ashlynn See.
RECOMMENDATION:
That the City Council, by motion, approve the denial of the claim and authorize the City Clerk to send out notification of such to the claimant.
BACKGROUND:
A claim for damages against the City was received by the following claimant: Ashlynn See.
After review by the Third Party Administrator, it was determined that the claim should be rejected. The City did not receive prior notice and/or had no knowledge there was an issue with insects prior to servicing the planter beds in front of the claimants business.
Accordingly, it is the City Manager's decision to act in accordance with the recommendation of the Administrator to deny the claim.
FISCAL IMPACT:
ATTACHMENTS:
12.E
Packet Pg. 70
AGENDA
STAFF REPORT
MEETING DATE: 6/21/2022
AGENDA SECTION: F
SUBJECT:
Council: Adoption of Resolution No. 22-31-R Designating the Mayor and Vice-Mayor as the voting delegate and alternate for the purpose of advancing the City’s position at the League of California Cities Annual Conferences.
RECOMMENDATION:
The City Council, by motion, adopt Resolution No. 22-31-R, designating the Mayor as the official voting delegate, and the Vice-Mayor as the alternate from the City Council for the League of California Cities Annual Conferences.
BACKGROUND:
Each year, the League of California Cities (Cal Cities) hosts their annual conference in the Fall.
As part of those annual conferences, the Annual Business Meeting is held during the General Assembly and voting delegates are asked to consider and take action on resolutions that establish League policy.
In order to vote at the Annual Business Meeting, the City Council must designate a voting delegate. Cal Cities allows the appointment of voting delegates through an adopted resolution by the individual bodies or through the completion of the annual voting delegate form. This resolution will allow the Clerk's office to streamline the process in the future and simply submit this resolution for future conferences. In any future years, on the off chance that the Mayor and Vice-Mayor are unable to attend, Council will be asked to take action to designate a voting delegate, from the remaining Council members, to serve in that capacity.
FISCAL IMPACT:
ATTACHMENTS:
2022 Voting Delegate Designation
22-30-R voting delegate designation
12.F
Packet Pg. 71
12.F.a
Packet Pg. 72
Attachment: 2022 Voting Delegate Designation (Clerk: Conference Voting Delegates)
12.F.a
Packet Pg. 73
Attachment: 2022 Voting Delegate Designation (Clerk: Conference Voting Delegates) RESOLUTION 22-30-R
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HANFORD
DESIGNATING THE MAYOR AS THE VOTING DELEGATE, AND VICE-
MAYOR AS THE ALTERNATE, FOR THE PURPOSE OF ADVANCING
THE CITY’S POSITION AT THE LEAGUE OF CALIFORNIA CITIES
ANNUAL CONFERENCES.
WHEREAS, the League of California Cities (Cal Cities) holds an annual conference in the fall of each calendar year to inform Cities of the current issues facing cities up and down the state; and
WHEREAS, during that annual conference, Cal Ci ties conducts the Annual Business Meeting during the General Assembly portion of the conference agenda; and
WHEREAS, during the Annual Business Meeting, voting delegates from each member City are asked to consider and take action on a variety of resolutions that are put forth by the membership to establish League policy; and
WHEREAS, the City of Hanford are asked each year to designate a voting delegate and an alternate voting delegate; and
WHEREAS, the City Council of the City of Hanford feels strongly that our local government is best able to assess the needs of our community and wishes to ensure that all League policies are aligned with the vision and goals of the City of Hanford;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HANFORD, CALIFORNIA, DOES HEREBY RESOLVES AS FOLLOWS:
SECTION 1. That the City of Hanford delegates the position of Mayor as the voting delegate for the Annual League of Cities Conference and delegates the position of Vice-Mayor as the alternate voting delegate; and
SECTION 2. Consistent with the City’s adopted position of stronger advocacy at the state level, this resolution will authorize those voting delegates to vote in accordance with the values represented within the City's platform to return local control to the people of the City of Hanford.
SECTION 3. This resolution shall take effect as of the date of its passage and adoption.
12.F.b
Packet Pg. 74
Attachment: 22-30-R voting delegate designation (Clerk: Conference Voting Delegates) Passed and adopted at a regular meeting of the City Council of the City of Hanford duly called and held on June 21, 2022, by the following vote:
AYES:
NOES:______________________________________________________________________ ABSTAIN:___________________________________________________________________ ABSENT:
APPROVED: __________________________
KALISH MORROW
MAYOR of the City of Hanford
ATTEST: NATALIE CORRAL
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF KINGS )
ss
CITY OF HANFORD )
I, NATALIE CORRAL, City Clerk of the City of Hanford, do hereby certify the foregoing Resolution was duly passed and adopted at a regular meeting of the City Council of the City of Hanford held on the 21st day of June, 2022.
Date: ____________________
NATALIE CORRAL
CITY CLERK
12.F.b
Packet Pg. 75
Attachment: 22-30-R voting delegate designation (Clerk: Conference Voting Delegates)
AGENDA
STAFF REPORT
MEETING DATE: 6/21/2022
AGENDA SECTION: G
SUBJECT:
Adoption of Ordinance No.. 22-07 Amending Chapter 13.04 of Hanford Municipal Code and modifying late fee, interest and payment plan provisions as directed by Council
RECOMMENDATION:
Recommendation: By motion, waive the second reading of and adopt the Ordinance 22-07.
Recommended Motion: I move that the Council waive the second reading of and adopt Ordinance 22-07.
BACKGROUND:
SB 998 established new requirements and limitations regarding residential water service shutoffs.
The City Council previously amended Chapter 13.04 of the Municipal Code to address the requirements of SB 998.
Based upon Council comments received since HMC Chapter 13.04 was last amended and City staff’s experience in implementing the HMC’s provisions contained in that Chapter, City staff and the City Attorney worked together on the following changes to HMC Chapter 13.04:
· Eliminate the ten percent (10%) late fee and replace it with a late fee to be established by resolution of the Council.
· Eliminate the one and one -half percent (1.5%) per month interest rate for delinquent payments and replace it with an interest rate to be established by resolution of the Council.
12.G
Packet Pg. 76
· Chapter 13.04 currently identifies conditions under which a hardship customer’s water service will not be terminated. Per the California Health & Safety Code, one condition requires a customer to submit certification from a primary care provider that the discontinuation of water service will be life threatening or will pose a serious threat to health and safety of the resident. The proposed amendment will eliminate the certification requirement, and the City will presume that such condi tions will exist for a hardship customer if their water service is discontinued.
· Reduce the recommended payment period for payment plans offered to all delinquent customers from twelve (12) months to six (6) months; the ordinance, however, retains the provision that a longer repayment period may be offered. Also, as noted above, it is recommended that the Water Service Discontinuation Policy be modified to allow for a hardship customer’s repayment period to be extended for up to (12) months.
· Per the Health & Safety Code, a waiver of interest charges once every twelve (12) months exists in the current ordinance. The amendment would also waive a customer’s late fees once every twelve (12) months.
· Appeals relating to HMC Chapter 13.04 will be heard b y a hearing officer or hearing body appointed by the City Manager and will not be heard by the City Council.
The attached Ordinance 22-07 will amend the HMC to incorporate the foregoing revisions.
Also attached are redline versions of the HMC sections that are proposed for revision.
ATTACHMENTS: Ordinance 22-07 and redline versions of modified HMC sections.
FISCAL IMPACT:
ATTACHMENTS:
2022.05.31 HMC 13.04.050 (redline)
2022.05.31 HMC 13.04.110 Appeal Provisions (redline)
2022.05.31 HMC 13.04.160 - 13.04.250 Enforcement Provisions (redline) 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL
12.G
Packet Pg. 77
1 EXHIBIT “A”
Section 13.04.050 Delinquencies and Collections.
A. Water service charges, connection fees, and other charges identified in this chapter shall be collected by the director of finance.
B. Water service charges based on metered water use shall be billed monthly with other City utilities.
C. All other fees and charges not listed in subsection B. of this section shall be paid as set forth in this chapter. Fees and charges not requiring prepayment or payment at the time of issuance shall be included on the next monthly City utility bill to the customer.
D. Delinquencies & Discontinuance of Service – Residential Customers.
1. Late Fees and Interest. In the event any customer fails to pay the water service charges, connection fees, and other required charges and fees identified in this section within fifteen (15) calendar days after the date of the applicable City utility bill, the unpaid amount shall be deemed delinquent, and the City shall, except as otherwise provided herein: (i) assess a fee for late payment in an amount established by the City Council by resolution in the amount of ten percent (10%) of the delinquent water related charges and fees plus other fees established by the City Council, which amounts shall be added to the delinquent charges and fees, and the director of finance shall collect the late fee along with the delinquent charges and fees; and (ii) assess interest at the rate of one and one-half percent (1.5%) per month for nonpayment of the delinquent charges and fees and nonpayment of basic penaltiesestablished by the City Council by resolution.
2. Discontinuance of Service.
a. The City Council shall adopt a written policy on discontinuation of residential water service (Discontinuation Policy) for nonpayment of service charges. Such policy will be available in English and the languages listed in Section 1632 of the California Civil Code, and any other language spoken by at least ten percent (10%) of the people residing within the area served by the City.
b. In the event any customer fails to pay any water service fees in full, including any late fee and interest, by 5:00 p.m. on the sixtieth (60th) calendar day following the date on which a payment becomes delinquent pursuant to subsection D.1. above, the City, in addition to all other remedies it may have, may discontinue furnishing water service and all other services identified on the applicable City utility bill and shall not resume the same until all outstanding charges and fees, together with any penalties, interest, service charges and/or connection fees necessitated by the resumption of water service, have been paid in full or a payment plan is approved.
12.G.a
Packet Pg. 78
Attachment: 2022.05.31 HMC 13.04.050 (redline) (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 2 c. Prior to discontinuing all services identified on the applicable City utility bill, the City shall contact the residential customer by phone or in writing advising the customer that all utilities identified in the applicable City utility bill will be discontinued if payment of the total amount identified in said written notice is not paid to the City or a payment plan is approved within seven (7) business of such notice. Reconnections will only be processed Monday through Friday from 8:00 a.m. to 12:00 p.m. and 1:00 p.m. to 4:00 p.m., and will not be processed on City-observed holidays. Reconnection of service by unauthorized individuals constitutes theft and will result in civil and/or criminal penalties, and the incident will be reported to the proper authorities. Any check or other form of payment not honored by a financial institution that is used to make payment on a customer’s utility account will result in additional fees established by separate resolution and will be a basis for the discontinuance of service.
d. When the City contacts a residential customer by telephone, it shall offer to provide in writing to the customer the City’s policy on discontinuation of residential services for nonpayment. The City will offer to discuss options to avoid discontinuation of services, including, but not limited to, alternative payment schedules, deferred payments, minimum payments, procedures for requesting amortization of the unpaid balance, and petition for bill review and appeal.
e. When the City contacts a residential customer by written notice, the written notice of payment delinquency and impending discontinuation will be mailed to the customer of the residence to which the residential service is provided. If the customer’s address is not the address of the property to which residential service is provided, the notice shall also be sent to the address of the property to which the residential service is provided, addressed to “Occupant.” The notice shall include, but is not limited to, the following information:
(i) Customer’s name and address;
(ii) Amount of the delinquency;
(iii) Date by which payment or arrangement for payment is required in order to avoid discontinuation of residential service;
(iv) Description of the process to apply for an extension of time to pay the delinquent charges;
(v) Description of the procedure to petition for bill review and appeal; and
(vi) Description of the procedure by which the customer may request a deferred or alternative payment schedule, including an amortization of the delinquent residential service charges, consistent with the City’s Discontinuation Policy.
f. If the City is unable to make contact with the customer or an adult occupying the residence by telephone, and written notice is returned through the mail as
12.G.a
Packet Pg. 79
Attachment: 2022.05.31 HMC 13.04.050 (redline) (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 3 undeliverable, the City shall make a good faith effort to visit the residence and leave, or make other arrangements for placement in a conspicuous place of, a notice of imminent discontinuation of residential service for nonpayment and the City’s policy for discontinuation of residential service for nonpayment.
g. If an adult accountholder at the residence appeals the utility bill, the City shall not discontinue residential service while the appeal is pending.
h. The City will not discontinue residential service for nonpayment if all of the following conditions exist:
(1) The customer, or a tenant of the customer, submits to the City the certification of a primary care provider, as that term is defined in subparagraph (A) of paragraph (1) of subdivision (b) of Section 14088 of the Welfare and Institutions Code, that discontinuation of residential service will be life threatening to, or pose a serious threat to the health and safety of, a resident of the premises where residential service is provided;
(2 (1) The customer demonstrates
that he or she is financially unable to pay for residential service within the City’s normal billing cycle. The customer shall be deemed financially unable to pay for residential service within the City’s normal billing cycle if any member of the customer’s household is a current recipient of CalWORKs, CalFresh, general assistance, Medi-Cal, Supplemental Security Income/State Supplementary Payment Program, or California Special Supplemental Nutrition Program for Women, Infants, and Children, or the customer declares that the household’s annual income is less than two hundred percent (200%) of the federal poverty level; and
(32) The customer is willing to enter into an amortization agreement or alternative payment schedule consistent with the City’s Discontinuation Policy, with respect to all delinquent charges.
If these three two (32) conditions are satisfied, the City shall, at the City’s choice, offer the residential customer one (1) or more of the following options:
(i) Amortization of the unpaid balance;
(ii) Participation in an alternative payment schedule; and/or
(iii) Temporary deferral of payment.
The City may choose the payment option a residential customer is offered and may set the terms of that payment plan. Ordinarily, the repayment option offered should result in repayment of any remaining outstanding balance within twelve (12six (6) months. The City may, but is not required to, grant a longer repayment period if it finds the longer period necessary to avoid undue hardship to the customer based upon the circumstances of the individual case.
12.G.a
Packet Pg. 80
Attachment: 2022.05.31 HMC 13.04.050 (redline) (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 4 Residential service may be discontinued under this subsection h. no sooner than five (5) business days after the City posts a final notice of intent to discontinue service in a prominent and conspicuous location at the property under either of the following circumstances:
(a) The customer fails to comply with an amortization
agreement, an alternative payment schedule, or a deferred payment plan for delinquent charge for sixty (60) calendar days or more.
(b) While undertaking an amortization agreement, an
alternative payment schedule, or a deferral or reduction in payment plan for delinquent charges, the customer fails to pay his or her current residential service charges for sixty (60) calendar days or more.
In lieu of certification from a primary care provider that discontinuation of residential service will be life threatening to, or pose a serious threat to the health and safety of, a resident of the premises at which service is provided, the City hereby declares that the discontinuance of service poses a serious threat to the health and safety of residents.
i. If the City discontinues water service to a residential customer, the City will provide the customer with information on how to restore service.
j. For a residential customer who demonstrates to the City that the customer’s household income is below two hundred percent (200%) of the federal poverty line, the City shall:
(i) Charge a service fee for reconnection during normal operating hours of fifty dollars ($50) or the City’s actual cost for reconnection, whichever is less.
For the reconnection of residential service during nonoperational hours, the service fee shall be one hundred fifty dollars ($150) or the City’s actual cost for reconnection, whichever is less.
Reconnection fees shall be subject to an annual adjustment for changes in the Consumer Price Index beginning January 1, 2021.
(ii) Waive interest charges onand late fees related to delinquent Water bills once every twelve (12) months.
A residential customer shall be deemed to have a household income below two hundred percent (200%) of the federal poverty line if any member of the household is a current recipient of CalWORKs, CalFresh, general assistance, Medi-Cal, Supplemental Security Income/State Supplementary Payment Program, or California Special Supplemental Nutrition Program for Women, Infants, and Children, or the customer declares that the household’s annual income is less than two hundred percent (200%) of the federal poverty level.
k. This subsection k. shall apply if there is a landlord-tenant relationship between the residential occupants and the owner, manager, or operator of the dwelling:
12.G.a
Packet Pg. 81
Attachment: 2022.05.31 HMC 13.04.050 (redline) (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 5 (1) If the City furnishes individually metered residential service to residential occupants of a detached single-family dwelling, a multiunit residential structure, mobile home park, or permanent residential structure in a labor camp as defined in California Health & Safety Code Section 17008, and the owner, manager, or operator of the dwelling, structure, or park is the customer of record, the City shall make every good faith effort to inform the residential occupants, by means of written notice, when the account is in arrears that service will be terminated at least ten (10) calendar days prior to the termination. The written notice shall further inform the residential occupants that they have the right to become customers, to whom the service will then be billed, without being required to pay any amount which may be due on the delinquent account.
(2) The City is not required to make service available to the residential occupants unless each residential occupant agrees to the terms and conditions of service and meets the requirements of law and the City’s rules and requirements. However, if one (1) or more of the residential occupants are willing and able to assume responsibility for the subsequent charges to the account to the satisfaction of the City, or if there is a physical means legally available to the City of selectively terminating service to those residential occupants who have not met the requirements of the City’s rules and requirements, the City shall make service available to those residential occupants who have met those requirements.
(3) If prior service for a period of time is a condition for establishing credit with the City, residence and proof of prompt payment of rent or other credit obligation acceptable to the City for that period of time is a satisfactory equivalent.
(4) In the case of a detached single-family dwelling, the City may do any of the following:
(i) Give notice of termination at least seven (7) business days prior to the proposed termination.
(ii) In order for the amount due on the delinquent account to be waived, require an occupant who becomes a customer to verify that the delinquent account customer of record is or was the landlord, manager, or agent of the dwelling. Verification may include, but is not limited to, a lease or rental agreement, rent receipts, a government document indicating that the occupant is renting the property, or information disclosed pursuant to Section 1962 of the Civil Code.
l. The City shall report the number of annual discontinuations of residential service for inability to pay on the City’s Internet Web site and to the State Water Resources Control Board.
m. All written notices to residential customers required under this Subsection 2 shall be provided in English, the languages listed in Section 1632 of the Civil Code, and any other language spoken by ten percent (10%) or more of the customers in the City’s service area.
12.G.a
Packet Pg. 82
Attachment: 2022.05.31 HMC 13.04.050 (redline) (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 6 n. This Subsection 2 does not apply to the termination of service connections by the City due to an unauthorized action of a customer, including, without limitation, the theft of water.
E. Delinquencies & Discontinuance of Services – Non-Residential Customers.
1. Late Fees and Interest. In the event any customer fails to pay the water service charges, connection fees, and other required charges and fees identified in this section within fifteen (15) days after the date of the applicable City utility bill, the unpaid amount shall be deemed delinquent, and the City may, except as otherwise provided herein: (i) assess a fee for late payment in the amount established by the City Council by resolution plus other fees established by the City Council, of ten percent (10%) of the delinquent water related charges and fees which amounts shall be added to the delinquent charges and fees, and the director of finance shall collect the late fee along with the delinquent charges and fees; and (ii) assess interest at the rate of one and one-half percent (1.5%) per month for nonpayment of the delinquent charges and fees and nonpayment of late feesestablished by the City Council by resolution.
2. Discontinuance of Service. In the event any non-residential customer fails to pay any charges or fees described in this chapter, including any late fee or interest, by 5:00 p.m. on the due date shown on the delinquent notice issued by the City, the City, in addition to all other remedies it may have, may discontinue furnishing water service and all other services identified on the applicable City utility bill and shall not resume the same until all outstanding charges and fees, together with any penalties, interest, service charges and/or connection fees necessitated by the resumption of water service, have been paid in full. Prior to discontinuing all services identified on the applicable City utility bill, the City shall send a written delinquent notice to the customer advising the customer that all utilities identified in the applicable City utility bill will be discontinued if payment of the total amount identified in said written notice is not paid to the City within ten (10) calendar days after the date of said written notice.
Reconnections will only be processed Monday through Friday from 8:00 a.m. to 12:00 p.m. and 1:00 p.m. to 4:00 p.m., and will not be processed on City-observed holidays. Reconnection of service by unauthorized individuals will result in additional charges established by separate resolution and the incident will be reported to the proper authorities. Any check not honored by a financial institution that is used to make payment on a customer’s utility account will result in additional fees established by separate resolution and will be a basis for the disconnection of service.
F. Court Action. In addition to the discontinuing all utilities identified on the applicable City utility bill, the City may file a civil action against the customer for the collection of any amount due and unpaid. Such remedy shall be cumulative and in addition to any other remedy provided in this chapter or by law.
G. Notice of Liens. In the event a customer fails to pay, in full, all charges, fees or penaltiesinterest identified in this chapter within ninety (90) days of the date of any City utility bill, the City shall notify the owner of the real property receiving the water service, in writing, of such delinquency and that the delinquency shall be collected pursuant to the provisions of paragraph 5 of this subsection.
12.G.a
Packet Pg. 83
Attachment: 2022.05.31 HMC 13.04.050 (redline) (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 7 H. Collection through Tax Roll. In the alternative to filing a civil action against the customer, the City Council, pursuant to the applicable provisions of the California Health and Safety Code, may elect to have all delinquent charges, fees and penaltiesinterest collected on the tax roll in the same manner, at the same time and by the same persons together with and not separately from general taxes. Such delinquent charges, fees and penaltiesinterest shall thereafter constitute a lien against the lot or parcel of land against which the charges have been imposed.
I. Recording of Lien. In addition to or in lieu of collecting delinquent fees through the tax roll, the City may, in accordance with California Health and Safety Code Section 5473.11, as may be amended, record a lien against real property for which fees are delinquent.
J. Restoration of Service. Except as otherwise provided in this Section 13.04.050, the utilities identified on the City utility bill shall not be restored until all charges, fees and penaltiesinterest, including without limitation, all expenses of removal, discontinuance, disconnection, restoration and reconnection have been paid.
K. The City may discontinue water service without notice to the customer when the apparatus, appliances or equipment using water, in the sole opinion of the City, is found to be dangerous or unsafe. The City shall promptly notify the customer of the reasons for the discontinuance and the corrective action to be taken by the customer before service can be restored.
L. The City may discontinue service without notice to any customer when the use of water thereon by the apparatus, appliances, equipment or otherwise is found by the City in its sole discretion, to be detrimental or injurious to water service furnished to other customers. The City shall promptly notify the customer of the reasons for the discontinuance and the corrective action to be taken by the customer before service can be restored.
M. The City may discontinue water service without notice to any customer when it is determined by the City in its sole discretion, that the customer has obtained water service by fraudulent or illegal means or has diverted the water service for unauthorized use. The City shall not restore service until the customer has complied with all the rules and regulations of the City and the City has been reimbursed for the full amount of the service rendered and the actual cost to the water division incurred by reason of such fraudulent, illegal, or unauthorized use.
12.G.a
Packet Pg. 84
Attachment: 2022.05.31 HMC 13.04.050 (redline) (City Att: Amendment of Hanford Municipal Code Chapter 13.04) EXHBIT “B”
Section 13.04.110.C.
C. Appeals.
1. Any customer may appeal water charges. To appeal service charges, a customer must, except as otherwise provided herein, submit the following items to the director of finance within fifteen (15) calendar days of the date of the bill disputed bill: (i) a written notice of appeal; (ii) the amount payable under the disputed bill; and (iii) an appeal fee, which fee will be established by the city council. The failure to submit these items during such time period shall result in a waiver of appeal rights and shall constitute a failure to exhaust administrative remedies.
The notice of appeal shall set forth in detail all facts supporting the customer’s objection to a bill.
2. Notwithstanding the provisions of subsection 1. above, a customer who is financially unable to deposit the amount of the disputed bill and/or pay the appeal fee may file a request for a waiver of all or a portion of the required deposit and appeal fee. A waiver request must be submitted to the direc tor of finance with the customer’s notice of appeal, along with a sworn declaration and other supporting documents and materials showing the customer’s actual financial inability to pay the appeal deposit and/or appeal fee. The customer bears the burden of demonstrating to the satisfaction of the director of finance the customer’s actual inability to deposit the amount of the disputed bill and/or pay the appeal fee. If the director of finance determines that a waiver is warranted, the deposit and appeal fee will be waived or partially waived. If the director of finance finds that a waiver is not warranted, the customer must, within three (3) business days of the customer’s receipt of the director of finance’s written decision, deposit the amount of the disputed bill and pay the appeal fee for the customer’s appeal to be processed.
3. Upon the director of finance’s receipt of a notice of appeal, deposit of the amount of the disputed bill, and appeal fee (or the director of finance’s determination to wa ive the deposit and/or fee), he or she shall set the matter for hearing before the hearing officer or hearing body designated by the City Council. city manager. The hearing officer or hearing body shall hold a hearing on the customer’s appeal on the date specified by the director of finance and shall receive evidence presented by the appealing party and city staff. After the hearing, the hearing officer or hearing body may uphold or adjust the amount of the disputed bill. The hearing officer or hearing body shall cause to be issued a written determination on the customer’s appeal within fifteen (15) calendar days of the date of appeal hearing. An aggrieved customer may seek judicial review of the hearing officer’s or hearing body’s decision on the customer’s appeal by filing a complaint with the Superior Court of Kings County, California during the period identified by California Code of Civil Procedure Section 1094.6.
12.G.b
Packet Pg. 85
Attachment: 2022.05.31 HMC 13.04.110 Appeal Provisions (redline) (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 1 EXHIBIT “C”
Section 13.04.160 Unauthorized Water Use.
A. Any person using water from the City water system in violation of any provision of the Hanford Municipal Code shall be subject to the administrative, civil, and criminal remedies set forth in state law and in this Code.
B. It is unlawful for any person or entity to modify or tamper with any portion of the City’s water system, including, without limitation, water meters, without the City’s authorization.
Section 13.04.170 Administrative Enforcement Remedies.
A. Notice of Violation.
1. With respect to violations other than the failure to timely pay utility service charges, upon the determination by the City’s director of finance or director of utilities and engineeringpublic works that a person or entity has violated this Chapter 13.04, such person or entity may be served with a written Notice of Violation. The notice shall, if feasible, describe the time, place, and circumstances of each violation charged and the corrective measures, if any, the person or entity is required to undertake to correct the violation. If the user who is responsible for the violation does not own the real property at which the violation occurred, the City will provide a copy of the notice to the owner when the notice is served upon the user.
2. The person or entity shall complete any corrective action described in the Notice of Violation within ten (10) calendar days of receipt of the Notice of Violation or shall identify in writing a proposed arrangement for the corrective action to be taken if corrective action cannot be reasonably completed during such ten (10) calendar day period. A proposed arrangement shall be submitted to the City official who issued the Notice of Violation.
3. Nothing in this section shall limit the authority of the City to take any action, including emergency actions or any other enforcement action, without first issuing a Notice of Violation.
B. Method of Service.
1. All written notices required by this chapter shall be served by personal delivery to the person or entity to be notified or by deposit in the United States Mail, certified with return receipt requested, addressed to such person or entity to be notified at his/her/its last known address as the same appears in the public records or other records pertaining to the matter to which such notice is directed. Service by mail shall be deemed to have been completed at the time of deposit in the mail.
12.G.c
Packet Pg. 86
Attachment: 2022.05.31 HMC 13.04.160 - 13.04.250 Enforcement Provisions (redline) (City Att: Amendment of Hanford Municipal Code Chapter 2 2. Where personal service or service by mail of a Notice of Violation or Notice of Hearing described below is unsuccessful, the City shall cause all of the following to occur:
a. A copy of the Notice of Violation or Notice of Hearing, as appropriate, shall be conspicuously posted at the real property where the violation is occurring; and
b. A copy of the Notice of Violation or Notice of Hearing, as appropriate, shall be published for at least three (3) consecutive days in a newspaper of general circulation in the City. A copy of the Notice of Hearing shall be published at least five (5) calendar days prior to the date scheduled for the public hearing that is referenced in the Notice of Hearing.
3. The failure of any person or entity to receive a notice properly served, mailed, posted, or published under this chapter shall not affect the validity of any proceedings occurring under this chapter.
C. Hearing.
1. If the director of finance or the director of utilities and engineeringpublic works, as applicable, determines that the violation has not been eliminated by the deadline for compliance established pursuant to subsection A. above, or that a violation has recurred prior to the compliance date, the City will set the matter for a hearing before the City Council pursuant to this chaptera hearing officer designated by the city manager.
2. This hearing serves to provide a person or entity subject to a Notice of Violation a full opportunity to object to the determination that a violation has occurred, that the violation has continued to exist or has recurred, and/or that the person or entity is responsible for creating, maintaining, or fostering the violation. The failure of any person or entity subject to a Notice of Violation to appear at the hearing shall constitute a failure to exhaust administrative remedies.
3. The City Clerk shall cause a written Notice of Hearing before the City Councilhearing officer to be served on each person and entity subject to the Notice of Violation and to the owner of the real property at which the violation occurred, if the owner and the user are different parties.
D. Notice of Hearing. Each hearing shall be set for a date not less than fifteen (15) calendar days nor more than sixty (60) calendar days from the date of the Notice of Hearing unless the violator consents to a shortening or extension of time or the City Councilhearing officer determines that the matter is urgent or that good cause exists for an extension of time.
12.G.c
Packet Pg. 87
Attachment: 2022.05.31 HMC 13.04.160 - 13.04.250 Enforcement Provisions (redline) (City Att: Amendment of Hanford Municipal Code Chapter 3 E. Conduct of Hearing.
1. At the date, time, and place set forth in the Notice of Hearing, the City Councilhearing officer shall conduct a hearing on the Notice of Violation.
2. At the hearing, the City Councilhearing officer shall consider any written or oral evidence, including the following:
a. The Notice of Violation and evidence submitted by persons subject to the Notice of Violation and by the City;
b. The objectively reasonable efforts made by the person or entity subject to the Notice of Violation to comply prior to the applicable compliance date; and
c. Any condition or situation beyond the control of the person or entity subject to the Notice of Violation that prevented compliance by the applicable deadline.
F. Findings and Order.
1. Within fifteen (15) calendar days following the conclusion of the hearing, the City Councilhearing officer shall make findings and issue a written determination in connection with the Notice of Violation.
2. The findings made by the City Councilhearing officer shall be supported by the evidence received at the hearing or otherwise submitted to the City Councilhearing officer in accordance with State law or this Code.
3. If the City Councilhearing officer finds by a preponderance of the evidence that a user has violated, or continues to violate, any provision of this Chapter 13.04, excluding violations involving the timely payment of utility charges, the City Councilhearing officer may issue a Compliance Order containing the following:
a. Directive to the user ordering him/her/it to comply immediately with all requirements and take such appropriate remedial or preventive actions to properly address a continuing or threatened violation;
b. Directive to the user to cease activities causing or associated with the unauthorized activity;
c. Requirements to address the noncompliance or prevent the continuation, exacerbation, or reoccurrence of the violation;
d. Deadline for compliance;
e. Directive for the termination of water service to the violating property through the severance of the connection between the violating property and the City’s
12.G.c
Packet Pg. 88
Attachment: 2022.05.31 HMC 13.04.160 - 13.04.250 Enforcement Provisions (redline) (City Att: Amendment of Hanford Municipal Code Chapter 4 water system, if the user fails to take all required actions by the deadline established by the City Council;hearing officer;
f. Directive to the user to pay an administrative penalty for each violation, with each penalty not to exceed the maximum allowed under state law;
g. Directive to the violator to pay reimbursement to the City for the fees and costs incurred by the City, including, without limitation, administrative costs and legal fees, associated with the violation;
h. Directive to the user to pay a deposit to the City that represents the fees and costs that the City will incur to address continuing violations;
i. Other terms, conditions, and/or requirements that the City Councilhearing officer finds reasonable; and/or
j. Authorization to City staff to take any other action that the City Councilhearing officer finds reasonable.
4. A Compliance Order does not relieve the user of liability for any violation, including any continuing violation. Issuance of a Compliance Order shall not be a bar against, or a prerequisite for, taking any other action against the user.
5. Every person and entity subject to a Compliance Order shall observe and comply with such order and with all applicable laws, permits, and other approvals of federal, state, and local governments in any and all actions taken pursuant to or in order to comply with the Compliance Order, including, without limitation, the payment of applicable fees and charges.
6. If the City Councilhearing officer finds one (1) or more of the following exists, then the City Councilhearing officer shall issue a finding of those facts:
a. That a violation did not occur or recur at or on the subject property after the compliance date established through the Notice of Violation;
b. That the person or entity subject to the Notice of Violation took all objectively reasonable steps to comply with the Notice of Violation by the applicable compliance date; or
c. That some condition or situation beyond the control of the person or entity subject to the Notice of Violation prevented compliance prior to the compliance date.
G. Administrative Penalties.
1. When the City Councilhearing officer finds that a user has violated, or continues to violate, any provision of this Chapter 13.04, with the exception of violations associated with the failure to pay utility charges in a timely manner, the City Councilhearing
12.G.c
Packet Pg. 89
Attachment: 2022.05.31 HMC 13.04.160 - 13.04.250 Enforcement Provisions (redline) (City Att: Amendment of Hanford Municipal Code Chapter 5 officer may fine such user in an amount not to exceed the then-current maximum allowed by State law. Such penalties may be assessed on a per violation per day basis.
2. Unpaid charges, fines and penalties shall, after the payment deadline identified in the Compliance Order, be assessed an additional penalty in an amount established by the City Council by resolutionof ten percent (10%) of the unpaid balance, and interest shall accrue thereafter at a rate of one and one-half percent (1.5%) per month on the unpaid amountestablished by the City Council by resolution; provided however, the additional penalty and/or interest shall not apply if collection of the same by the City would violate State law.
3. Issuance of an administrative fine shall not be a bar against, or a prerequisite for, taking any other action against the user.
4. In determining the amount of a penalty, the City Councilhearing officer may take any or all of the following factors into consideration:
a. The period of time during which the violation(s) occurred;
b. The nature, frequency, and recurrence of the violation(s);
c. The ease with which the violation(s) could have been abated;
d. The good faith efforts made to address the violation(s);
e. The economic impact of the penalty on the person/entity responsible for payment;
f. The impact of the violation on the public and/or property; and
g. Such other factors as justice may require.
5. Penalties imposed by the City Councilhearing officer may accrue from a date no earlier than the compliance date specified in the Compliance Order and shall cease to accrue on the date the Compliance Order has been complied with as determined by the City.
6. Penalties assessed by the City Councilhearing officer shall be due by the date specified in the Compliance Order.
7. Penalties assessed by the City Councilhearing officer are a debt owed to the City and, in addition to all other means of enforcement, may be enforced and collected through an assessment added to the property tax roll or though the recording of a lien against the real property at which the violation occurred.
8. If a person or entity subject to the Compliance Order gives written notice to the City officer issuing the Notice of Violation that the terms of the Compliance Order have been satisfied and if the director finds that compliance has occurred, the date that the written
12.G.c
Packet Pg. 90
Attachment: 2022.05.31 HMC 13.04.160 - 13.04.250 Enforcement Provisions (redline) (City Att: Amendment of Hanford Municipal Code Chapter 6 notice is postmarked or personally delivered to the director or the date of the City’s final inspection, whichever occurs first, shall be deemed to be the date of compliance.
H. Report of Compliance after Compliance Order. If the director issuing the Notice of Violation determines that a Compliance Order has been fully satisfied, the director will file a report with the City Clerk indicating that compliance has been achieved and the date of the City’s final inspection.
I. Compliance Dispute.
1. If the director does not file a report required by subsection H. above, a person or entity subject to a Compliance Order who believes that compliance has been achieved may request a compliance hearing before the City Council by filing for a hearing with the City Clerk.
2. The hearing shall be noticed and conducted in the same manner as a hearing on a Notice of Violation.
3. The City Councilhearing officer shall determine if compliance with the Compliance Order has been achieved and, if so, when it was achieved.
J. Right of Judicial Review. Following the exhaustion of administrative remedies identified in this chapter, any person or entity aggrieved by a Compliance Order may obtain review of such order in the superior court by filing with the court a petition for writ of mandate.
K. Lien and Tax Roll Assessment Procedures.
1. Whenever the amount of a penalty, cost, or fee, including interest, imposed upon a user by the City Council pursuant to this chapter has not been satisfied in full within ninety (90) calendar days of an applicable due date and/or has not been successfully challenged, the obligation may constitute an assessment or a lien against the real property at which the violation occurred or is occurring.
2. The lien provided herein shall have no force or effect until recorded with the County Recorder. Once recorded, the lien shall have the force, effect, and priority of a judgment lien governed by the provisions of the California Code of Civil Procedure, as may be amended.
3. Interest shall accrue on the principal amount remaining unsatisfied pursuant to law at the rate set forth in subsection G. aboveestablished by the City Council by resolution.
4. Prior to levying an assessment or recording a lien, the director of finance shall prepare and file with the City Clerk a written report stating the amounts due and owing.
12.G.c
Packet Pg. 91
Attachment: 2022.05.31 HMC 13.04.160 - 13.04.250 Enforcement Provisions (redline) (City Att: Amendment of Hanford Municipal Code Chapter 7 5. The City Clerk shall fix a time, date, and place for a hearing on such report and any protests or objections thereto. The City Clerk will provide notice of such hearing to the user and to the owner of the subject real property, if the owner and user are not the same party, in the manner described in subsection D. above.
6. Any person or entity whose real property is subject to the proposed assessment or lien may file a written protest with the City Clerk and/or may protest verbally at the City Council meeting at which the hearing on the assessment or lien occurs.
7. The City Council will hold and conduct a public hearing at the time, date, and place set forth in the notice for such hearing.
8. The City Council will hear and consider only testimony and other evidence that is relevant to the calculation of the amounts owed or to the proposed imposition of the assessment or lien, including without limitation:
a. The report of the director of finance;
b. Objections or protests of property owners and other responsible or interested persons who may be held liable for the amounts owed;
c. Evidence on whether all procedures were properly followed by the City;
d. Evidence regarding the costs and fees incurred by the City in the matter; and
e. Evidence on whether the person before the City Council is responsible for the amounts owed to the City.
9. The City Council shall confirm, modify, or forego the assessment or lien as a result of the hearing. The City Council’s decision shall be based upon the preponderance of the evidence presented at the hearing.
10. The public hearing before the City Council shall not serve as a re-hearing for persons who previously have been duly determined as responsible for fines, penalties, costs, and/or fees owed to the City. The validity of fines, penalties, costs, and fees need not be re- considered at the lien or assessment hearing, and the City Council will not be required to receive evidence or testimony regarding the validity of fines, penalties, costs, or fees at such hearing.
11. Within thirty (30) days of the City Council’s confirmation or modification of the assessment or lien amount, the City Clerk will, as applicable: (i) inform the Tax Collector for Kings County, California of the assessment amount; or (ii) record the lien in the office of the County Recorder for Kings County, California.
12.G.c
Packet Pg. 92
Attachment: 2022.05.31 HMC 13.04.160 - 13.04.250 Enforcement Provisions (redline) (City Att: Amendment of Hanford Municipal Code Chapter 8 12. If a lien is recorded, the City Clerk will record a notice of satisfaction or provide the property owner of the subject property with a notice of satisfaction that may be recorded once payment in full is received by the City of the outstanding penalties, costs, fees, and interest. Such notice of satisfaction shall cancel the City’s lien.
L. Consent Orders. The director of finance or the director of utilities and engineeringpublic works, as applicable, may enter into Consent Orders, assurances of compliance, or other similar documents establishing a voluntary agreement with any user responsible for noncompliance. Such documents shall include the specific action to be taken by the user to correct the noncompliance within a time period specified in the document. Such documents shall have the same force and effect as a Compliance Order issued by the City Council.
Section 13.04.180 Criminal Prosecution.
A. A user who willfully or negligently violates any provision of this chapter, with the exception of provisions pertaining to the timely payment of utility charges, shall, upon conviction, be guilty of a misdemeanor punishable pursuant to Section 19 of the California Penal Code, as may be amended.
B. A user who knowingly makes any false statements, representations, or certifications in any application, record, report, plan, or other documentation filed, or required to be maintained, pursuant to this chapter, or who falsifies, tampers with, bypasses, or knowingly renders inaccurate any water control or monitoring device shall, upon conviction, be punished by a fine and/or imprisonment as allowed under State law.
Section 13.04.190 Civil Remedies.
A. When the director of finance or the director of utilities and engineeringpublic works, as applicable, finds that a user has violated or continues to violate, any provision of this chapter, with the exception of provisions pertaining to the timely payment of utility charges, such director may petition the Superior Court of Kings County, California, through the City’s attorney, for the issuance of a temporary restraining order, temporary injunction, and/or permanent injunction, as appropriate, which restrains or compels the specific performance of any requirement imposed by this chapter. A petition for injunctive relief shall not be a bar against, or a prerequisite for, taking any other action against the user.
B. Nothing contained in this Code shall preclude or limit the City from pursuing a civil action for damages against a person or entity that causes the City to incur injury, loss, costs, or expenses as a result of the person’s or entity’s violation of this chapter.
C. In addition to all other remedies, as part of any civil action brought by the City, a court may assess a civil penalty in an amount not to exceed the maximum allowed by State law per day for each violation with respect to any person or entity that violates this chapter, which penalty shall be payable to the City.
12.G.c
Packet Pg. 93
Attachment: 2022.05.31 HMC 13.04.160 - 13.04.250 Enforcement Provisions (redline) (City Att: Amendment of Hanford Municipal Code Chapter 9 Section 13.04.200 Administrative Citations.
A. Issuance of Citation.
1. Whenever the director of finance or the director of utilities and engineeringpublic works, as applicable, determines that a violation of a provision of this chapter has occurred, such director or his/her designee shall have the authority to issue an administrative citation to any person or entity responsible for the violation, with the exception of violations pertaining to the payment of utility charges.
2. Each administrative citation shall contain the following information:
a. The date of the violation or, if the date of the violation is unknown, then the date the violation is identified;
b. The address or a description of the location where the violation occurred;
c. The section of this code violated and a description of the violation;
d. The amount of the fine for the violation;
e. A description of the fine payment process, including a description of the time within which and the place to which the fine shall be paid;
f. An order prohibiting the continuation or repeated occurrence of the code violation described in the administrative citation;
g. A description of the administrative citation review process, including the time within which the administrative citation may be contested and the place from which a request for hearing form to contest the administrative citation may be obtained; and
h. The name and signature of the individual issuing the citation.
B. Amount of Fines.
1. The amounts of the fines for code violations imposed pursuant to this section shall be set forth in a schedule of fines established by resolution of the City Council.
2. The schedule of fines shall specify any increased fines for repeat violations of the same code provision by the same person or entity.
C. Payment of Fines.
1. Fines shall be paid to the City within thirty (30) days from the date of the administrative citation.
12.G.c
Packet Pg. 94
Attachment: 2022.05.31 HMC 13.04.160 - 13.04.250 Enforcement Provisions (redline) (City Att: Amendment of Hanford Municipal Code Chapter 10 2. Any administrative citation fine paid shall be refunded if it is determined, after an appeal hearing, that a person or entity charged in the administrative citation was not responsible for the violation or that there was no violation as charged in the citation.
3. Payment of a fine under this chapter shall not excuse, discharge, or permit any continuation or repeated occurrence of the code violation that is the subject of the administrative citation.
D. Hearing Request.
1. Any recipient of an administrative citation may appeal the citation by completing a request for hearing form and returning it to the City within thirty (30) days from the date of the administrative citation, together with an advance deposit of the fine.
2. A request for hearing shall be submitted in writing to the City Clerk.
3. The person or entity requesting the hearing shall be notified of the time and place set for the hearing at least ten (10) calendar days prior to the date of the hearing.
4. If the City department that issued the citation submits an additional written report concerning the administrative citation to the hearing bodyofficer, then a copy of such report shall be served on the person requesting the hearing at least five (5) calendar days prior to the date of the hearing.
E. Hearing Body. The City Council or its designeeOfficer. A hearing officer designated by the city manager shall serve as the hearing body for appeals regarding administrative citations issued under this chapter.
F. Hearing Procedure.
1. No hearing to contest an administrative citation shall be held unless the fine has been deposited with the City in advance; provided however, the deposit requirement shall be waived if the director of the City department issuing the citation determines that the appealing party is financially unable to deposit the amount of the fine. The process to waive the deposit and fee requirements set forth in section 13.04.110 of this Code relating to the appeal of water service charges shall, to the extent feasible, apply with respect to the waiver of the deposit of fine amounts.
2. A hearing shall be set for a date that is not less than fifteen (15) calendar days and not more than sixty (60) calendar days from the date that the request for hearing is filed in accordance with the provisions of this section.
3. At the hearing, the party contesting the administrative citation shall be given the opportunity to testify and to present evidence concerning the administrative citation.
12.G.c
Packet Pg. 95
Attachment: 2022.05.31 HMC 13.04.160 - 13.04.250 Enforcement Provisions (redline) (City Att: Amendment of Hanford Municipal Code Chapter 11 4. The failure of any recipient of an administrative citation to appear at the appeal hearing shall constitute a forfeiture of the fine and a failure to exhaust administrative remedies.
5. The administrative citation and any additional report submitted by the department issuing the citation shall constitute prima facie evidence of the respective facts contained in those documents.
6. The hearing bodyofficer may continue the hearing and request additional information from the City department issuing the citation or from the recipient of the administrative citation prior to issuing a written decision.
G. Hearing Body’sOfficer’s Decision.
1. After considering all of the testimony and evidence submitted at the hearing, the hearing bodyofficer shall issue a written decision to uphold, modify, or cancel the administrative citation and shall list in the decision the reasons for the decision. The decision of the hearing bodyofficer shall be final.
2. If the hearing bodyofficer determines that the administrative citation should be upheld, then the fine amount on deposit with the City shall be retained by the City.
3. If the hearing bodyofficer determines that the administration citation should be canceled, then the City shall promptly refund the amount of the deposited fine.
4. If the hearing bodyofficer determines that the fine levied under the administration citation should be adjusted, then the City will promptly refund the amount of the deposited fine that exceeds the amount fixed by the hearing bodyofficer or the recipient of the administrative citation will promptly pay to the City an additional amount fixed by the hearing bodyofficer if the bodyofficer finds that the fine assessed under the administrative citation to be insufficient.
5. The recipient of the administrative citation shall be served with a copy of the hearing body’sofficer’s written decision.
H. Late Payment Charges. Any person or entity who fails to pay to the City any fine imposed pursuant to the provisions of this section on or before the date that the fine is due shall also be liable for the late payment charges described in Section 13.04.170 G. above.
I. Recovery of Administrative Citation Fines and Costs. The City may collect any past due administrative citation fine or late payment charge by use of all available legal means, including the tax roll and lien remedies described in section 13.04.170.K. above. Collection costs shall be in addition to any penalties, interest, and/or late charges imposed upon the delinquent obligation. Collection costs imposed under this provision shall be added to and become a part of the underlying obligation. Any partial payment of an obligation, when a
12.G.c
Packet Pg. 96
Attachment: 2022.05.31 HMC 13.04.160 - 13.04.250 Enforcement Provisions (redline) (City Att: Amendment of Hanford Municipal Code Chapter 12 partial payment is permitted, will be applied first to the principal amount of the underlying obligation, then to any penalties, and then to interest.
J. Right to Judicial Review. Any person or entity aggrieved by a decision of the hearing bodyofficer on an administrative citation may obtain review of the decision by filing a petition for review with the Superior Court for Kings County, California in accordance with the timelines and provisions set forth in California Government Code Section 53069.4, as may be amended.
K. Notices. The administrative citation and all notices required to be given by this section shall be served on the responsible party by personal delivery thereof to the person or entity to be notified or by deposit in the United States Mail, certified mail with return receipt requested, addressed to such person to be notified at his/her/its last-known address as the same appears in the public records or other records pertaining to the matter to which such notice is directed. Service by mail shall be deemed to have been completed at the time of deposit in the mail. If the user who is responsible for the violation does not own the real property at which the violation occurred, the City will also provide a copy of the citation and associated notices to the owner when the citation and notices are served upon the user.
Section 13.04.210 Appeal.
A. This section shall only apply to matters in which no appeal process is otherwise specified in this chapter.
B. Any person affected by any decision, action or determination by any City department in interpreting or implementing the provisions of this chapter may file with the City Clerk, within ten (10) calendar days of the date of service of such decision, action or determination, a notice of appeal to the City CouncilClerk appealing such decision, action or determination. Except as otherwise provided, the appealing party shall, at the time of submitting the notice of appeal, pay the applicable appeal fee, which shall be established by the City Council, as a condition of the City processing the appeal. The notice of appeal shall set forth in detail all facts supporting the user’s appeal. The filing of the notice of appeal shall not limit the authority of the City to take such action as the City deems necessary to stop or prevent an ongoing or threatened violation of any of the provisions of this chapter, including actions or directives to prevent or stop threatened harm to the health or safety of the public.
C. Notwithstanding subsection B. above, a user who is financially unable pay the appeal fee may file with the City Clerk a request for a waiver of all or a portion of the required deposit and appeal fee. The waiver provisions set forth in section 13.04.110 of this Code shall, to the extent feasible, apply to appeal fees charged pursuant to this section 13.04.210; provided however, the City Clerk shall possess decision-making authority over the waiver or partial waiver of appeal fees occurring under this section.
D. Upon receipt of a notice appeal and appeal fee, the City Clerk shall set the matter for hearing before an appeal officer or appeal body designated by the City Councilcity manager, and after said hearing, the appeal officer or appeal body may affirm, overrule or modify the
12.G.c
Packet Pg. 97
Attachment: 2022.05.31 HMC 13.04.160 - 13.04.250 Enforcement Provisions (redline) (City Att: Amendment of Hanford Municipal Code Chapter 13 decision, action or determination of a City department that is the subject of the appeal. To the extent feasible, the hearing provisions contained in Section 13.04.200 above shall apply to appeals occurring under this section.
E. Following the appeal hearing, an aggrieved user may seek judicial review of an appeal officer’s or appeal body’s decision by filing a complaint with the Superior Court of Kings County, California during the period identified by California Code of Civil Procedure Section 1094.6, as may be amended.
Section 13.04.220 Superior court action.
The City Council may, at its option, elect to petition the Superior Court of Kings County, California to confirm any order establishing civil penalties and enter judgment in conformity therewith in accordance with the provisions of 1285 through 1297.6, inclusive, of the California Code of Civil Procedure.
Section 13.04.230 Public nuisance.
In addition to any other remedy provided by law or in equity, violation of any provisions of this chapter, excluding provisions relating to the timely payment of services charges, is hereby determined and declared to a public nuisance and may be abated and/or enjoined pursuant to State law. The City may cause proceedings to be brought for abatement and may recover reasonable attorney's fees, court costs and other expenses associated with such action.
Section 13.04.240 Attorney’s fees.
The City shall have the right to recover reasonable attorney’s fees, court costs and other expenses associated with any and all of the enforcement activities identified in this chapter, in addition to the amount assessed as damages to the City.
Section 13.04.250 Non-exclusive remedies.
The enforcement procedures, penalties, and remedies provided in this chapter are not exclusive, but are in addition to any other enforcement procedures, penalties and remedies that may be provided elsewhere in this chapter or by any federal, state or local law, regulation, or rule. In addition, the City may pursue any, all, or any combination of these enforcement procedures, penalties and remedies against any person or entity that violates any provision of this chapter.
12.G.c
Packet Pg. 98
Attachment: 2022.05.31 HMC 13.04.160 - 13.04.250 Enforcement Provisions (redline) (City Att: Amendment of Hanford Municipal Code Chapter 1 ORDINANCE NO. 22-07
AN ORDINANCE OF THE CITY OF HANFORD AMENDING HANFORD MUNICIPAL CODE CHAPTER 13.04
WHEREAS, in 2018, the California Legislature passed, and the Governor signed, Senate Bill No. 998 (“SB 998”), which enacted Chapter 6 (commencing with Section 116900) of Part 12 of Division 104 of the Health and Safety Code, setting forth procedures to be followed by municipal water providers in collecting unpaid, late , or delinquent water charges and in shutting off and reconnecting water service; and
WHEREAS, the City of Hanford is a municipal water provider for purposes of SB 998; and
WHEREAS, Hanford Municipal Code (HMC) Chapter 13.04 contains provisions relating to the City’s water system, including, without limitation, provisions regarding the discontinuance of water service to customers who fail to pay services charges in a timely manner; and
WHEREAS, HMC Chapter 13.04 was previously amended to cause its compliance with SB 998; and
WHEREAS, the City Council has determined that further amendments to HMC Chapter
13.04 would best serve the City’s residents.
NOW, THEREFORE, the City Council of the City of Hanford does ordain as follows:
Section 1. SB 998 establishes conditions under which the City may discontinue water service to a customer who fails to pay service charges in a timely manner. HMC Section
13.04.050 is deleted in its entirety and is restated in the manner reflected in the attached Exhibit “A.”
Section 2. SB 998 requires the City to establish a process through which water service customers may appeal water service charges. HMC Section 13.04.110.C is deleted in its entirety and is restated in the manner reflected in the attached Exhibit “B.”
Section 3. The enforcement provisions contained in HMC Sections 13.04.160 through Section 13.04.250 are deleted in their entirety and restated in the manner reflected in the attached Exhibit “C.”
Section 4. This Ordinance shall take effect thirty (30) days after its adoption and shall be published once in the Hanford Sentinel within fifteen (15) days after its passage or a summary of this ordinance shall be published in the Hanford Sentinel in a manner consistent with the requirements of the California Government Code.
12.G.d
Packet Pg. 99
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 2 PASSED, ADOPTED AND APPROVED this 21st day of June, 2022, by the following vote:
AYES: __________________________________________________________________ NOES: __________________________________________________________________ ABSTAIN: __________________________________________________________________ ABSENT: __________________________________________________________________
___________________________
KALISH MORROW
MAYOR of the City of Hanford
Attest:
_____________________________________
CITY CLERK
STATE OF CALIFORNIA)
COUNTY OF KINGS ) ss
CITY OF HANFORD )
I, ________________________, City Clerk of the City of Hanford, do hereby certify the foregoing Ordinance was duly passed and adopted at a regular meeting of the City Council of the City of Hanford held on the 21st day of June, 2022.
Date: _______________________ ________________________________ City Clerk
12.G.d
Packet Pg. 100
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 1 EXHIBIT “A”
Section 13.04.050 Delinquencies and Collections.
A. Water service charges, connection fees, and other charges identified in this chapter shall be collected by the director of finance.
B. Water service charges based on metered water use shall be billed monthly with other City utilities.
C. All other fees and charges not listed in subsection B. of this section shall be paid as set forth in this chapter. Fees and charges not requiring prepayment or payment at the time of issuance shall be included on the next monthly City utility bill to the customer.
D. Delinquencies & Discontinuance of Service – Residential Customers.
1. Late Fees and Interest. In the event any customer fails to pay the water service charges, connection fees, and other required charges and fees identified in this section within fifteen (15) calendar days after the date of the applicable City utility bill, the unpaid amount shall be deemed delinquent, and the City shall, except as otherwise provided herein: (i) assess a fee for late payment in an amount established by the City Council by resolution plus other fees established by the City Council, which amounts shall be added to the delinquent charges and fees, and the director of finance shall collect the late fee along with the delinquent charges and fees; and (ii) assess interest at the rate established by the City Council by resolution.
2. Discontinuance of Service.
a. The City Council shall adopt a written policy on discontinuation of residential water service (Discontinuation Policy) for nonpayment of service charges. Such policy will be available in English and the languages listed in Section 1632 of the California Civil Code, and any other language spoken by at least ten percent (10%) of the people residing within the area served by the City.
b. In the event any customer fails to pay any water service fees in full, including any late fee and interest, by 5:00 p.m. on the sixtieth (60th) calendar day following the date on which a payment becomes delinquent pursuant to subsection D.1. above, the City, in addition to all other remedies it may have, may discontinue furnishing water service and all other services identified on the applicable City utility bill and shall not resume the same until all outstanding charges and fees, together with any penalties, interest, service charges and/or connection fees necessitated by the resumption of water service, have been paid in full or a payment plan is approved.
c. Prior to discontinuing all services identified on the applicable City utility bill, the City shall contact the residential customer by phone or in writing advising the customer that all utilities identified in the applicable City utility bill will be discontinued if payment of the total amount identified in said written notice is not paid to the City or a payment
12.G.d
Packet Pg. 101
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 2 plan is approved within seven (7) business of such notice. Reconnections will only be processed Monday through Friday from 8:00 a.m. to 12:00 p.m. and 1:00 p.m. to 4:00 p.m., and will not be processed on City-observed holidays. Reconnection of service by unauthorized individuals constitutes theft and will result in civil and/or criminal penalties, and the incident will be reported to the proper authorities. Any check or other form of payment not honored by a financial institution that is used to make payment on a customer’s utility account will result in additional fees established by separate resolution and will be a basis for the discontinuance of service.
d. When the City contacts a residential customer by telephone, it shall offer to provide in writing to the customer the City’s policy on discontinuation of residential services for nonpayment. The City will offer to discuss options to avoid discontinuation of services, including, but not limited to, alternative payment schedules, deferred payments, minimum payments, procedures for requesting amortization of the unpaid balance, and petition for bill review and appeal.
e. When the City contacts a residential customer by written notice, the written notice of payment delinquency and impending discontinuation will be mailed to the customer of the residence to which the residential service is provided. If the customer’s address is not the address of the property to which residential service is provided, the notice shall also be sent to the address of the property to which the residential service is provided, addressed to “Occupant.” The notice shall include, but is not limited to, the following information:
(i) Customer’s name and address;
(ii) Amount of the delinquency;
(iii) Date by which payment or arrangement for payment is required in order to avoid discontinuation of residential service;
(iv) Description of the process to apply for an extension of time to pay the delinquent charges;
(v) Description of the procedure to petition for bill review and appeal; and
(vi) Description of the procedure by which the customer may request a deferred or alternative payment schedule, including an amortization of the delinquent residential service charges, consistent with the City’s Discontinuation Policy.
f. If the City is unable to make contact with the customer or an adult occupying the residence by telephone, and written notice is returned through the mail as undeliverable, the City shall make a good faith effort to visit the residence and leave, or make other arrangements for placement in a conspicuous place of, a notice of imminent discontinuation of residential service for nonpayment and the City’s policy for discontinuation of residential service for nonpayment.
12.G.d
Packet Pg. 102
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 3 g. If an adult accountholder at the residence appeals the utility bill, the City shall not discontinue residential service while the appeal is pending.
h. The City will not discontinue residential service for nonpayment if all of the following conditions exist:
(1) The customer demonstrates that he or she is financially unable to pay for residential service within the City’s normal billing cycle. The customer shall be deemed financially unable to pay for residential service within the City’s normal billing cycle if any member of the customer’s household is a current recipient of CalWORKs, CalFresh, general assistance, Medi-Cal, Supplemental Security Income/State Supplementary Payment Program, or California Special Supplemental Nutrition Program for Women, Infants, and Children, or the customer declares that the household’s annual income is less than two hundred percent (200%) of the federal poverty level; and
(2) The customer is willing to enter into an amortization agreement or alternative payment schedule consistent with the City’s Discontinuation Policy, with respect to all delinquent charges.
If these two (2) conditions are satisfied, the City shall, at the City’s choice, offer the residential customer one (1) or more of the following options:
(i) Amortization of the unpaid balance;
(ii) Participation in an alternative payment schedule; and/or
(iii) Temporary deferral of payment.
The City may choose the payment option a residential customer is offered and may set the terms of that payment plan. Ordinarily, the repayment option offered should result in repayment of any remaining outstanding balance within six (6) months. The City may, but is not required to, grant a longer repayment period if it finds the longer period necessary to avoid undue hardship to the customer based upon the circumstances of the individual case.
Residential service may be discontinued under this subsection h. no sooner than five (5) business days after the City posts a final notice of intent to discontinue service in a prominent and conspicuous location at the property under either of the following circumstances:
(a) The customer fails to comply with an amortization
agreement, an alternative payment schedule, or a deferred payment plan for delinquent charge for sixty (60) calendar days or more.
(b) While undertaking an amortization agreement, an
alternative payment schedule, or a deferral or reduction in payment plan for delinquent charges,
12.G.d
Packet Pg. 103
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 4 the customer fails to pay his or her current residential service charges for sixty (60) calendar days or more.
In lieu of certification from a primary care provider that discontinuation of residential service will be life threatening to, or pose a serious threat to the health and safety of, a resident of the premises at which service is provided, the City hereby declares that the discontinuance of service poses a serious threat to the health and safety of residents.
i. If the City discontinues water service to a residential customer, the City will provide the customer with information on how to restore service.
j. For a residential customer who demonstrates to the City that the customer’s household income is below two hundred percent (200%) of the federal poverty line, the City shall:
(i) Charge a service fee for reconnection during normal operating hours of fifty dollars ($50) or the City’s actual cost for reconnection, whichever is less.
For the reconnection of residential service during nonoperational hours, the service fee shall be one hundred fifty dollars ($150) or the City’s actual cost for reconnection, whichever is less.
Reconnection fees shall be subject to an annual adjustment for changes in the Consumer Price Index beginning January 1, 2021.
(ii) Waive interest charges and late fees related to delinquent Water bills once every twelve (12) months.
A residential customer shall be deemed to have a household income below two hundred percent (200%) of the federal poverty line if any member of the household is a current recipient of CalWORKs, CalFresh, general assistance, Medi-Cal, Supplemental Security Income/State Supplementary Payment Program, or California Special Supplemental Nutrition Program for Women, Infants, and Children, or the customer declares that the household’s annual income is less than two hundred percent (200%) of the federal poverty level.
k. This subsection k. shall apply if there is a landlord-tenant relationship between the residential occupants and the owner, manager, or operator of the dwelling:
(1) If the City furnishes individually metered residential service to residential occupants of a detached single-family dwelling, a multiunit residential structure, mobile home park, or permanent residential structure in a labor camp as defined in California Health & Safety Code Section 17008, and the owner, manager, or operator of the dwelling, structure, or park is the customer of record, the City shall make every good faith effort to inform the residential occupants, by means of written notice, when the account is in arrears that service will be terminated at least ten (10) calendar days prior to the termination. The written notice shall further inform the residential occupants that they have the right to become customers, to whom the service will then be billed, without being required to pay any amount which may be due on the delinquent account.
12.G.d
Packet Pg. 104
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 5 (2) The City is not required to make service available to the residential occupants unless each residential occupant agrees to the terms and conditions of service and meets the requirements of law and the City’s rules and requirements. However, if one (1) or more of the residential occupants are willing and able to assume responsibility for the subsequent charges to the account to the satisfaction of the City, or if there is a physical means legally available to the City of selectively terminating service to those residential occupants who have not met the requirements of the City’s rules and requirements, the City shall make service available to those residential occupants who have met those requirements.
(3) If prior service for a period of time is a condition for establishing credit with the City, residence and proof of prompt payment of rent or other credit obligation acceptable to the City for that period of time is a satisfactory equivalent.
(4) In the case of a detached single-family dwelling, the City may do any of the following:
(i) Give notice of termination at least seven (7) business days prior to the proposed termination.
(ii) In order for the amount due on the delinquent account to be waived, require an occupant who becomes a customer to verify that the delinquent account customer of record is or was the landlord, manager, or agent of the dwelling. Verification may include, but is not limited to, a lease or rental agreement, rent receipts, a government document indicating that the occupant is renting the property, or information disclosed pursuant to Section 1962 of the Civil Code.
l. The City shall report the number of annual discontinuations of residential service for inability to pay on the City’s Internet Web site and to the State Water Resources Control Board.
m. All written notices to residential customers required under this Subsection 2 shall be provided in English, the languages listed in Section 1632 of the Civil Code, and any other language spoken by ten percent (10%) or more of the customers in the City’s service area.
n. This Subsection 2 does not apply to the termination of service connections by the City due to an unauthorized action of a customer, including, without limitation, the theft of water.
E. Delinquencies & Discontinuance of Services – Non -Residential Customers.
1. Late Fees and Interest. In the event any customer fails to pay the water service charges, connection fees, and other required charges and fees identified in this section within fifteen (15) days after the date of the applicable City utility bill, the unpaid amount shall be deemed delinquent, and the City may, except as otherwise provided herein: (i) assess a fee for late payment in the amount established by the City Council by resolution plus other fees
12.G.d
Packet Pg. 105
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 6 established by the City Council, which amounts shall be added to the delinquent charges and fees, and the director of finance shall collect the late fee along with the delinquent charges and fees; and (ii) assess interest at the rate established by the City Council by resolution.
2. Discontinuance of Service. In the event any non- residential customer fails to pay any charges or fees described in this chapter, including any late fee or interest, by 5:00 p.m. on the due date shown on the delinquent notice issued by the City, the City, in addition to all other remedies it may have, may discontinue furnishing water service and all other services identified on the applicable City utility bill and shall not resume the same until all outstanding charges and fees, together with any , interest, service charges and/or connection fees necessitated by the resumption of water service, have been paid in full. Prior to discontinuing all services identified on the applicable City utility bill, the City shall send a written delinquent notice to the customer advising the customer that all utilities identified in the applicable City utility bill will be discontinued if payment of the total amount identified in said written notice is not paid to the City within ten (10) calendar days after the date of said written notice. Reconnections will only be processed Monday through Friday from 8:00 a.m. to 12:00 p.m. and 1:00 p.m. to 4:00 p.m., and will not be processed on City-observed holidays. Reconnection of service by unauthorized individuals will result in additional charges established by separate resolution and the incident will be reported to the proper authorities. Any check not honored by a financial institution that is used to make payment on a customer’s utility account will result in additional fees established by separate resolution and will be a basis for the disconnection of service.
F. Court Action. In addition to the discontinuing all utilities identified on the applicable City utility bill, the City may file a civil action against the customer for the collection of any amount due and unpaid. Such remedy shall be cumulative and in addition to any other remedy provided in this chapter or by law.
G. Notice of Liens. In the event a customer fails to pay, in full, all charges, fees or interest identified in this chapter within ninety (90) days of the date of any City utility bill, the City shall notify the owner of the real property receiving the water service, in writing, of such delinquency and that the delinquency shall be collected pursuant to the provisions of paragraph 5 of this subsection.
H. Collection through Tax Roll. In the alternative to filing a civil action against the customer, the City Council, pursuant to the applicable provisions of the California Health and Safety Code, may elect to have all delinquent charges, fees and interest collected on the tax roll in the same manner, at the same time and by the same persons together with and not separately from general taxes. Such delinquent charges, fees and interest shall thereafter constitute a lien against the lot or parcel of land against which the charges have been imposed.
I. Recording of Lien. In addition to or in lieu of collecting delinquent fees through the tax roll, the City may, in accordance with California Health and Safety Code Section 5473.11, as may be amended, record a lien against real property for which fees are delinquent.
J. Restoration of Service. Except as otherwise provided in this Section 13.04.050, t he utilities identified on the City utility bill shall not be restored until all charges, fees and interest,
12.G.d
Packet Pg. 106
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 7 including without limitation, all expenses of removal, discontinuance, disconnection, restoration and reconnection have been paid.
K. The City may discontinue water service without notice to the customer when the apparatus, appliances or equipment using water, in the sole opinion of the City, is found to be dangerous or unsafe. The City shall promptly notify the customer of the reasons for the discontinuance and the corrective action to be taken by the customer before service can be restored.
L. The City may discontinue service without notice to any customer when the use of water thereon by the apparatus, appliances, equipment or otherwise is found by the City in its sole discretion, to be detrimental or injurious to water service furnished to other customers. The City shall promptly notify the customer of the reasons for the discontinuance and the corrective action to be taken by the customer before service can be restored.
M. The City may discontinue water service without notice to any customer when it is determined by the City in its sole discretion, that the customer has obtained water service by fraudulent or illegal means or has diverted the water service for unauthorized use. The City shall not restore service until the customer has complied with all the rules and regulations of the City and the City has been reimbursed for the full amount of the service rendered and the actual cost to the water division incurred by reason of such fraudulent, illegal, or unauthorized use.
12.G.d
Packet Pg. 107
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04) EXHBIT “B”
Section 13.04.110.C.
C. Appeals.
1. Any customer may appeal water charges. To appeal service charges, a customer must, except as otherwise provided herein, submit the following items to the director of finance within fifteen (15) calendar days of the date of the bill disputed bill: (i) a written notice of appeal; (ii) the amount payable under the disputed bill; and (iii) an appeal fee, which fee will be established by the city council. The failure to submit these items during such time period shall result in a waiver of appeal rights and shall constitute a failure to exhaust administrative remedies.
The notice of appeal shall set forth in detail all facts supporting the customer’s objection to a bill.
2. Notwithstanding the provisions of subsection 1. above, a customer who is financially unable to deposit the amount of the disputed bill and/or pay the appeal fee may file a request for a waiver of all or a portion of the required deposit and appeal fee. A waiver request must be submitted to the direc tor of finance with the customer’s notice of appeal, along with a sworn declaration and other supporting documents and materials showing the customer’s actual financial inability to pay the appeal deposit and/or appeal fee. The customer bears the burden of demonstrating to the satisfaction of the director of finance the customer’s actual inability to deposit the amount of the disputed bill and/or pay the appeal fee. If the director of finance determines that a waiver is warranted, the deposit and appeal fee will be waived or partially waived. If the director of finance finds that a waiver is not warranted, the customer must, within three (3) business days of the customer’s receipt of the director of finance’s written decision, deposit the amount of the disputed bill and pay the appeal fee for the customer’s appeal to be processed.
3. Upon the director of finance’s receipt of a notice of appeal, deposit of the amount of the disputed bill, and appeal fee (or the director of finance’s determination to wa ive the deposit and/or fee), he or she shall set the matter for hearing before the hearing officer or hearing body designated by the city manager . The hearing officer or hearing body shall hold a hearing on the customer’s appeal on the date specified by the director of finance and shall receive evidence presented by the appealing party and city staff. After the hearing, the hearing officer or hearing body may uphold or adjust the amount of the disputed bill. The hearing officer or hearing body shall cause to be issued a written determination on the customer’s appeal within fifteen (15) calendar days of the date of appeal hearing. An aggrieved customer may seek judicial review of the hearing officer’s or hearing body’s decision on the customer’s appeal by filing a complaint with the Superior Court of Kings County, California during the period identified by California Code of Civil Procedure Section 1094.6.
12.G.d
Packet Pg. 108
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 1 EXHIBIT “C”
Section 13.04.160 Unauthorized Water Use.
A. Any person using water from the City water system in violation of any provision of the Hanford Municipal Code shall be subject to the administrative, civil, and criminal remedies set forth in state law and in this Code.
B. It is unlawful for any person or entity to modify or tamper with any portion of the City’s water system, including, without limitation, water meters, without the City’s authorization.
Section 13.04.170 Administrative Enforcement Remedies.
A. Notice of Violation.
1. With respect to violations other than the failure to timely pay utility service charges, upon the determination by the City’s director of finance or director of public works that a person or entity has violated this Chapter 13.04, such person or entity may be served with a written Notice of Violation. The notice shall, if feasible, describe the time, place, and circumstances of each violation charged and the corrective measures, if any, the person or entity is required to undertake to correct the violation. If the user who is responsible for the violation does not own the real property at which the violation occurred, the City will provide a copy of the notice to the owner when the notice is served upon the user.
2. The person or entity shall complete any corrective action described in the Notice of Violation within ten (10) calendar days of receipt of the Notice of Violation or shall identify in writing a proposed arrangement for the corrective action to be taken if corrective action cannot be reasonably completed during such ten (10) calendar day period. A proposed arrangement shall be submitted to the City official who issued the Notice of Violation.
3. Nothing in this section shall limit the authority of the City to take any action, including emergency actions or any other enforcement action, without first issuing a Notice of Violation.
B. Method of Service.
1. All written notices required by this chapter shall be served by personal delivery to the person or entity to be notified or by deposit in the United States Mail, certified with return receipt requested, addressed to such person or entity to be notified at his/her/its last known address as the same appears in the public records or other records pertaining to the matter to which such notice is directed. Service by mail shall be deemed to have been completed at the time of deposit in the mail.
12.G.d
Packet Pg. 109
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 2 2. Where personal service or service by mail of a Notice of Violation or Notice of Hearing described below is unsuccessful, the City shall cause all of the following to occur:
a. A copy of the Notice of Violation or Notice of Hearing, as appropriate, shall be conspicuously posted at the real property where the violation is occurring; and
b. A copy of the Notice of Violation or Notice of Hearing, as appropriate, shall be published for at least three (3) consecutive days in a newspaper of general circulation in the City. A copy of the Notice of Hearing shall be published at least five (5) calendar days prior to the date scheduled for the public hearing that is referenced in the Notice of Hearing.
3. The failure of any person or entity to receive a notice properly served, mailed, posted, or published under this chapter shall not affect the validity of any proceedings occurring under this chapter.
C. Hearing.
1. If the director of finance or the director of public works, as applicable, determines that the violation has not been eliminated by the deadline for compliance established pursuant to subsection A. above, or that a violation has recurred prior to the compliance date, the City will set the matter for a hearing before a hearing officer designated by the city manager.
2. This hearing serves to provide a person or entity subject to a Notice of Violation a full opportunity to object to the determination that a violation has occurred, that the violation has continued to exist or has recurred, and/or that the person or entity is responsible for creating, maintaining, or fostering the violation. The failure of any person or entity subject to a Notice of Violation to appear at the hearing shall constitute a failure to exhaust administrative remedies.
3. The City Clerk shall cause a written Notice of Hearing before the hearing officer to be served on each person and entity subject to the Notice of Violation and to the owner of the real property at which the violation occurred, if the owner and the user are different parties.
D. Notice of Hearing. Each hearing shall be set for a date not less than fifteen (15) calendar days nor more than sixty (60) calendar days from the date of the Notice of Hearing unless the violator consents to a shortening or extension of time or the hearing officer determines that the matter is urgent or that good cause exists for an extension of time.
E. Conduct of Hearing.
1. At the date, time, and place set forth in the Notice of Hearing, the hearing officer shall conduct a hearing on the Notice of Violation.
12.G.d
Packet Pg. 110
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 3 2. At the hearing, the hearing officer shall consider any written or oral evidence, including the following:
a. The Notice of Violation and evidence submitted by persons subject to the Notice of Violation and by the City;
b. The objectively reasonable efforts made by the person or entity subject to the Notice of Violation to comply prior to the applicable compliance date; and
c. Any condition or situation beyond the control of the person or entity subject to the Notice of Violation that prevented compliance by the applicable deadline.
F. Findings and Order.
1. Within fifteen (15) calendar days following the conclusion of the hearing, the hearing officer shall make findings and issue a written determination in connection with the Notice of Violation.
2. The findings made by the hearing officer shall be supported by the evidence received at the hearing or otherwise submitted to the hearing officer in accordance with State law or this Code.
3. If the hearing officer finds by a preponderance of the evidence that a user has violated, or continues to violate, any provision of this Chapter 13.04, excluding violations involving the timely payment of utility charges, the hearing officer may issue a Compliance Order containing the following:
a. Directive to the user ordering him/her/it to comply immediately with all requirements and take such appropriate remedial or preventive actions to properly address a continuing or threatened violation;
b. Directive to the user to cease activities causing or associated with the unauthorized activity;
c. Requirements to address the noncompliance or prevent the continuation, exacerbation, or reoccurrence of the violation;
d. Deadline for compliance;
e. Directive for the termination of water service to the violating property through the severance of the connection between the violating property and the City’s water system, if the user fails to take all required actions by the deadline established by the hearing officer;
12.G.d
Packet Pg. 111
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 4 f. Directive to the user to pay an administrative penalty for each violation, with each penalty not to exceed the maximum allowed under state law;
g. Directive to the violator to pay reimbursement to the City for the fees and costs incurred by the City, including, without limitation, administrative costs and legal fees, associated with the violation;
h. Directive to the user to pay a deposit to the City that represents the fees and costs that the City will incur to address continuing violations;
i. Other terms, conditions, and/or requirements that the hearing officer finds reasonable; and/or
j. Authorization to City staff to take any other action that the hearing officer finds reasonable.
4. A Compliance Order does not rel ieve the user of liability for any violation, including any continuing violation. Issuance of a Compliance Order shall not be a bar against, or a prerequisite for, taking any other action against the user.
5. Every person and entity subject to a Compliance Order shall observe and comply with such order and with all applicable laws, permits, and other approvals of federal, state, and local governments in any and all actions taken pursuant to or in order to comply with the Compliance Order, including, without limitation, the payment of applicable fees and charges.
6. If the hearing officer finds one (1) or more of the following exists, then the hearing officer shall issue a finding of those facts:
a. That a violation did not occur or recur at or on the subject property after the compliance date established through the Notice of Violation;
b. That the person or entity subject to the Notice of Violation took all objectively reasonable steps to comply with the Notice of Violation by the applicable compliance date; or
c. That some condition or situation beyond the control of the person or entity subject to the Notice of Violation prevented compliance prior to the compliance date.
G. Administrative Penalties.
1. When the hearing officer finds that a user has violated, or continues to violate, any provision of this Chapter 13.04, with the exception of violations associated with the failure to pay utility charges in a timely manner, the hearing officer may fine such user in an amount not to exceed the then-current maximum allowed by State law. Such penalties may be assessed on a per violation per day basis.
12.G.d
Packet Pg. 112
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 5 2. Unpaid charges, fines and penalties shall, after the payment deadline identified in the Compliance Order, be assessed an additional penalty in an amount established by the City Council by resolution, and interest shall accrue thereafter at a rate established by the City Council by resolution; provided however, the additional penalty and/or interest shall not apply if collection of the same by the City would violate State law.
3. Issuance of an administrative fine shall not be a bar against, or a prerequisite for, taking any other action against the user.
4. In determining the amount of a penalty, the hearing officer may take any or all of the following factors into consideration:
a. The period of time during which the violation(s) occurred;
b. The nature, frequency, and recurrence of the violation(s);
c. The ease with which the violation(s) could have been abated;
d. The good faith efforts made to address the violation(s);
e. The economic impact of the penalty on the person/entity responsible for payment;
f. The impact of the violation on the public and/or property; and
g. Such other factors as justice may require.
5. Penalties imposed by the hearing officer may accrue from a date no earlier than the compliance date specified in the Compliance Order and shall cease to accrue on the date the Compliance Order has been complied with as determined by the City.
6. Penalties assessed by the hearing officer shall be due by the date specified in the Compliance Order.
7. Penalties assessed by the hearing officer are a debt owed to the City and, in addition to all other means of enforcement, may be enforced and collected through an assessment added to the property tax roll or though the recording of a lien against the real property at which the violation occurred.
8. If a person or entity subject to the Compliance Order gives written notice to the City officer issuing the Notice of Violation that the terms of the Compliance Order have been satisfied and if the director finds that compliance has occurred, the date that the written notice is postmarked or personally delivered to the director or the date of the City’s final inspection, whichever occurs first, shall be deemed to be the date of compliance.
12.G.d
Packet Pg. 113
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 6 H. Report of Compliance after Compliance Order. If the director issuing the Notice of Violation determines that a Compliance Order has been fully satisfied, the director will file a report with the City Clerk indicating that compliance has been achieved and the date of the City’s final inspection.
I. Compliance Dispute.
1. If the director does not file a report required by subsection H. above, a person or entity subject to a Compliance Order who believes that compliance has been achieved may request a compliance hearing by filing for a hearing with the City Clerk.
2. The hearing shall be noticed and conducted in the same manner as a hearing on a Notice of Violation.
3. The hearing officer shall determine if compliance with the Compliance Order has been achieved and, if so, when it was achieved.
J. Right of Judicial Review. Following the exhaustion of administrative remedies identified in this chapter, any person or entity aggrieved by a Compliance Order may obtain review of such order in the superior court by filing with the court a petition for writ of mandate.
K. Lien and Tax Roll Assessment Procedures.
1. Whenever the amount of a penalty, cost, or fee, including interest, imposed upon a user by the City pursuant to this chapter has not been satisfied in full within ninety (90) calendar days of an applicable due date and/or has not been successfully challenged, the obligation may constitute an assessment or a lien against the real property at which the violation occurred or is occurring.
2. The lien provided herein shall have no force or effect until recorded with the County Recorder. Once recorded, the lien shall have the force, effect, and priority of a judgment lien governed by the provisions of the California Code of Civil Procedure, as may be amended.
3. Interest shall accrue on the principal amount remaining unsatisfied pursuant to law at the rate established by the City Council by resolution.
4. Prior to levying an assessment or recording a lien, the director of finance shall prepare and file with the City Clerk a written report stating the amounts due and owing.
5. The City Clerk shall fix a time, date, and place for a hearing on such report and any protests or objections thereto. The City Clerk will provide notice of such hearing to the user and to the owner of the subject real property, if the owner and user are not the same party, in the manner described in subsection D. above.
12.G.d
Packet Pg. 114
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 7 6. Any person or entity whose real property is subject to the proposed assessment or lien may file a written protest with the City Clerk and/or may protest verbally at the City Council meeting at which the hearing on the assessment or lien occurs.
7. The City Council will hold and conduct a public hearing at the time, date, and place set forth in the notice for such hearing.
8. The City Council will hear and consider only testimony and other evidence that is relevant to the calculation of the amounts owed or to the proposed imposition of the assessment or lien, including without limitation:
a. The report of the director of finance;
b. Objections or protests of property owners and other responsible or interested persons who may be held liable for the amounts owed;
c. Evidence on whether all procedures were properly followed by the City;
d. Evidence regarding the costs and fees incurred by the City in the matter; and
e. Evidence on whether the person before the City Council is responsible for the amounts owed to the City.
9. The City Council shall confirm, modify, or forego the assessment or lien as a result of the hearing. The City Council’s decision shall be based upon the preponderance of the evidence presented at the hearing.
10. The public hearing before the City Council shall not serve as a re-hearing for persons who previously have been duly determined as responsible for fines, penalties, costs, and/or fees owed to the City. The validity of fines, penalties, costs, and fees need not be re- considered at the lien or assessment hearing, and the City Council will not be required to receive evidence or testimony regarding the validity of fines, penalties, costs, or fees at such hearing.
11. Within thirty (30) days of the City Council’s confirmation or modification of the assessment or lien amount, the City Clerk will, as applicable: (i) inform the Tax Collector for Kings County, California of the assessment amount; or (ii) record the lien in the office of the County Recorder for Kings County, California.
12. If a lien is recorded, the City Clerk will record a notice of satisfaction or provide the property owner of the subject property with a notice of satisfaction that may be recorded once payment in full is received by the City of the outstanding penalties, costs, fees, and interest. Such notice of satisfaction shall cancel the City’s lien.
12.G.d
Packet Pg. 115
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 8 L. Consent Orders. The director of finance o r the director of public works, as applicable, may enter into Consent Orders, assurances of compliance, or other similar documents establishing a voluntary agreement with any user responsible for noncompliance. Such documents shall include the specific action to be taken by the user to correct the noncompliance within a time period specified in the document. Such documents shall have the same force and effect as a Compliance Order issued by the City .
Section 13.04.180 Criminal Prosecution.
A. A user who willfully or negligently violates any provision of this chapter , with the exception of provisions pertaining to the timely payment of utility charges, shall, upon conviction, be guilty of a misdemeanor punishable pursuant to Section 19 of the California Penal Code, as may be amended.
B. A user who knowingly makes any false statements, representations, or certifications in any application, record, report, plan, or other documentation filed, or required to be maintained, pursuant to this chapter, or who falsifies, tampers with, bypasses, or knowingly renders inaccurate any water control or monitoring device shall, upon conviction, be punished by a fine and/or imprisonment as allowed under State law.
Section 13.04.190 Civil Remedies.
A. When the director of finance or the director of public works, as applicable, finds that a user has violated or continues to violate, any provision of this chapter, with the exception of provisions pertaining to the timely payment of utility charges, such director may petition the Superior Court of Kings County, California, through the City’s attorney, for the issuance of a temporary restraining order, temporary injunction, and/or permanent injunction, as appropriate, which restrains or compels the specific performance of any requirement imposed by this chapter.
A petition for injunctive relief shall not be a bar against, or a prerequisite for, taking any other action against the user.
B. Nothing contained in this Code shall preclude or limit the City from pursuing a civil action for damages against a person or entity that causes the City to incur injury, loss, costs, or expenses as a result of the person’s or entity’s violation of this chapter.
C. In addition to all other remedies, as part of any civil action brought by the City, a court may assess a civil penalty in an amount not to exceed the maximum allowed by State law per day for each violation with respect to any person or entity that violates this chapter, which penalty shall be payable to the City.
Section 13.04.200 Administrative Citations.
A. Issuance of Citation.
1. Whenever the director of finance or the director of public works, as applicable, determines that a violation of a provision of this chapter has occurred, such director
12.G.d
Packet Pg. 116
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 9 or his/her designee shall have the authority to issue an administrative citation to any person or entity responsible for the violation, with the exception of violations pertaining to the payment of utility charges.
2. Each administrative citation shall contain the following information:
a. The date of the violation or, if the date of the violation is unknown, then the date the violation is identified;
b. The address or a description of the location where the violation occurred;
c. The section of this code violated and a description of the violation;
d. The amount of the fine for the violation;
e. A description of the fine payment process, including a description of the time within which and the place to which the fine shall be paid;
f. An order prohibiting the continuation or repeated occurrence of the code violation described in the administrative citation;
g. A description of the administrative citation review process, including the time within which the administrative citation may be contested and the place from which a request for hearing form to contest the administrative citation may be obtained; and
h. The name and signature of the individual issuing the citation.
B. Amount of Fines.
1. The amounts of the fines for code violations imposed pursuant to this section shall be set forth in a schedule of fines established by resolution of the City Council.
2. The schedule of fines shall specify any increased fines for repeat violations of the same code provision by the same person or entity.
C. Payment of Fines.
1. Fines shall be paid to the City within thirty (30) days from the date of the administrative citation.
2. Any administrative citation fine paid shall be refunded if it is determined, after an appeal hearing, that a person or entity charged in the administrative citation was not responsible for the violation or that there was no violation as charged in the citation.
12.G.d
Packet Pg. 117
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 10 3. Payment of a fine under this chapter shall not excuse, discharge, or permit any continuation or repeated occurrence of the code violation that is the subject of the administrative citation.
D. Hearing Request.
1. A ny recipient of an administrative citation may appeal the citation by completing a request for hearing form and returning it to the City within thirty (30) days from the date of the administrative citation, together with an advance deposit of the fine.
2. A request for hearing shall be submitted in writing to the City Clerk.
3. The person or entity requesting the hearing shall be notified of the time and place set for the hearing at least ten (10) calendar days prior to the date of the hearing.
4. If the City department that issued the citation submits an additional written report concerning the administrative citation to the hearing officer, then a copy of such report shall be served on the person requesting the hearing at least five (5) calendar days prior to the date of the hearing.
E. Hearing Officer. A hearing officer designated by the city manager shall serve as the hearing body for appeals regarding administrative citations issued under this chapter.
F. Hearing Procedure.
1. No hearing to contest an administrative citation shall be held unless the fine has been deposited with the City in advance; provided however, the deposit requirement shall be waived if the director of the City department issuing the citation determines that the appealing party is financially unable to deposit the amount of the fine. The process to waive the deposit and fee requirements set forth in section 13.04.110 of this Code relating to the appeal of water service charges shall, to the extent feasible, apply with respect to the waiver of the deposit of fine amounts.
2. A hearing shall be set for a date that is not less than fifteen (15) calendar days and not more than sixty (60) calendar days from the date that the request for hearing is filed in accordance with the provisions of this section.
3. At the hearing, the party contesting the administrative citation shall be given the opportunity to testify and to present evidence concerning the administrative citation.
4. The failure of any recipient of an administrative citation to appear at the appeal hearing shall constitute a forfeiture of the fine and a failure to exhaust administrative remedies.
12.G.d
Packet Pg. 118
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 11 5. The administrative citation and any additional report submitted by the department issuing the citation shall constitute prima facie evidence of the respective facts contained in those documents.
6. The hearing officer may continue the hearing and request additional information from the City department issuing the citation or from the recipient of the administrative citation prior to issuing a written decision.
G. Hearing Officer’s Decision.
1. After considering all of the testimony and evidence submitted at the hearing, the hearing officer shall issue a written decision to uphold, modify, or cancel the administrative citation and shall list in the decision the reasons for the decision. The decision of the hearing officer shall be final.
2. If the hearing officer determines that the administrative citation should be upheld, then the fine amount on deposit with the City shall be retained by the City.
3. If the hearing officer determines that the administration citation should be canceled, then the City shall promptly refund the amount of the deposited fine.
4. If the hearing officer determines that the fine levied under the administration citation should be adjusted, then the City will promptly refund the amount of the deposited fine that exceeds the amount fixed by the hearing officer or the recipient of the administrative citation will promptly pay to the City an additional amount fixed by the hearing officer if the officer finds that the fine assessed under the administrative citation to be insufficient.
5. The recipient of the administrative citation shall be served with a copy of the hearing officer’s written decision.
H. Late Payment Charges. Any person or entity who fails to pay to the City any fine imposed pursuant to the provisions of this section on or before the date that the fine is due shall also be liable for the late payment charges described in Section 13.04.170 G. above.
I. Recovery of Administrative Citation Fines and Costs. The City may collect any past due administrative citation fine or late payment charge by use of all available legal means, including the tax roll and lien remedies described in section 13.04.170.K. above. Collection costs shall be in addition to any penalties, interest, and/or late charges imposed upon the delinquent obligation. Collection costs imposed under this provision shall be added to and become a part of the underlying obligation. Any partial payment of an obligation, when a partial payment is permitted, will be applied first to the principal amount of the underlying obligation, then to any penalties, and then to interest.
J. Right to Judicial Review. Any person or entity aggrieved by a decision of the hearing officer on an administrative citation may obtain review of the decision by filing a
12.G.d
Packet Pg. 119
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 12 petition for review with the Superior Court for Kings County, California in accordance with the timelines and provisions set forth in California Government Code Section 53069.4, as may be amended.
K. Notices. The administrative citation and all notices required to be given by this section shall be served on the responsible party by personal delivery thereof to the person or entity to be notified or by deposit in the United States Mail, certified mail with return receipt requested, addressed to such person to be notified at his/her/its last-known address as the same appears in the public records or other records pertaining to the matter to which such notice is directed. Service by mail shall be deemed to have been completed at the time of deposit in the mail. If the user who is responsible for the violation does not own the real property at which the violation occurred, the City will also provide a copy of the citation and associated notices to the owner when the citation and notices are served upon the user.
Section 13.04.210 Appeal.
A. This section shall only apply to matters in which no appeal process is otherwise specified in this chapter.
B. Any person affected by any decision, action or determination by any City department in interpreting or implementing the provisions of this chapter may file with the City Clerk, within ten (10) calendar days of the date of service of such decision, action or determination, a notice of appeal to the City Clerk appealing such decision, action or determination. Except as otherwise provided, the appealing party shall, at the time of submitting the notice of appeal, pay the applicable appeal fee, which shall be established by the City Council, as a condition of the City processing the appeal. The notice of appeal shall set forth in detail all facts supporting the user’s appeal. The filing of the notice of appeal shall not limit the authority of the City to take such action as the City deems necessary to stop or prevent an ongoing or threatened violation of any of the provisions of this chapter, including actions or directives to prevent or stop threatened harm to the health or safety of the public.
C. Notwithstanding subsection B. above, a user who is financially unable pay the appeal fee may file with the City Clerk a request for a waiver of all or a portion of the required deposit and appeal fee. The waiver provisions set forth in section 13.04.110 of this Code shall, to the extent feasible, apply to appeal fees charged pursuant to this section 13.04.210; provided however, the City Clerk shall possess decision-making authority over the waiver or partial waiver of appeal fees occurring under this section.
D. Upon receipt of a notice appeal and appeal fee, the Ci ty Clerk shall set the matter for hearing before an appeal officer designated by the city manager, and after said hearing, the appeal officer may affirm, overrule or modify the decision, action or determination of a City department that is the subject of the appeal. To the extent feasible, the hearing provisions contained in Section 13.04.200 above shall apply to appeals occurring under this section.
E. Following the appeal hearing, an aggrieved user may seek judi cial review of an appeal officer’s decision by filing a complaint with the Superior Court of Kings County,
12.G.d
Packet Pg. 120
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04) 13 California during the period identified by California Code of Civil Procedure Section 1094.6, as may be amended.
Section 13.04.220 Superior court action.
The City may, at its option, elect to petition the Superior Court of Kings County, California to confirm any order establishing civil penalties and enter judgment in conformity therewith in accordance with the provisions of 1285 through 1297.6, inclusive, of the California Code of Civil Procedure.
Section 13.04.230 Public nuisance.
In addition to any other remedy provided by law or in equity, violation of any provisions of this chapter, excluding provisions relating to the timely payment of services charges, is hereby determined and declared to a public nuisance and may be abated and/or enjoined pursuant to State law. The City may cause proceedings to be brought for abatement and may recover reasonable attorney's fees, court costs and other expenses associated with such action.
Section 13.04.240 Attorney’s fees.
The City shall have the right to recover reasonable attorney’s fees, court costs and other expenses associated with any and all of the enforcement activities identified in this chapter, in addition to the amount assessed as damages to the City.
Section 13.04.250 Non-exclusive remedies.
The enforcement procedures, penalties, and remedies provided in this chapter are not exclusive, but are in addition to any other enforcement procedures, penalties and remedies that may be provided elsewhere in this chapter or by any federal, state or local law, regulation, or rule. In addition, the City may pursue any, all, or any combination of these enforcement procedures, penalties and remedies against any person or entity that violates any provision of this chapter.
12.G.d
Packet Pg. 121
Attachment: 2022.05.31 Ordinance re Amendment of HMC Ch. 13.04 - FINAL (City Att: Amendment of Hanford Municipal Code Chapter 13.04)
AGENDA
STAFF REPORT
MEETING DATE: 6/21/2022
AGENDA SECTION: H
SUBJECT:
IT: Approval of a contract with CivicPlus for the redesign of the City of Hanford website and new Agenda Management Software in the amount of $49,907.25
RECOMMENDATION:
That the City Council, by motion, approve the Professional Services Agreement with Civic Plus for website redesign and Agenda Management Software in the amount of $49,907.25.
BACKGROUND:
Council's Goals and Objectives identified that the City's website was in need of a redesign.
Accordingly, a Request for Proposals was prepared and distributed. Four (4) proposals were received and staff rated the responses and selected CivicPlus for the website redesign. While negotiating a contract with CivicPlus, staff was made aware that CivicPlus also offers an Agenda Management System that integrates seamlessly into the website. Given that the City's existing Agenda Management Software is not working efficiently for the City, and is no longer receiving any support from the current vendor, Staff evaluated the Agenda Management Software offered by CivicPlus and determined that the usability and functionality surpasses the existing software being used. Additionally development, support and improvement of CivicPlus' software is ongoing.
The attached Professional Services Agreement was drafted and approved by the City Attorney's office and includes a detailed scope of work, which was the basis of the recommendation for contract award.
FISCAL IMPACT:
This project will require the creation of a Capital Project to fund the $49,907.25 in expenditures and staff is recommending that the project be paid with ARPA funds. If Council chooses not to use ARPA funding, the project will be funded through the ACO fund.
12.H
Packet Pg. 122
ATTACHMENTS:
Professional Services Agreement and SOW
12.H
Packet Pg. 123
Initial: City Consultant
1 AGREEMENT FOR SERVICES
This Agreement for Professional Services (“Agreement”) is made and entered into this day of , 2022, by and between the City of Hanford, a municipal corporation (“City”), and (“Consultant”).
RECITALS
A. Consultant represents to City that they are specially trained, experienced, licensed and competent to perform the services which will be required by this Agreement; and
B. Consultant represents to City that it possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement on the terms and conditions described herein.
C. City desires to retain Consultant to render website development and hosting services as set forth in this Agreement.
NOW THEREFORE, in consideration of the mutual covenants set forth herein for such other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto agree as follows:
1. Retention of Consultant. Subject to the terms and conditions set forth herein, City retains Consultant to perform the services identified in this Agreement, as an independent contractor and Consultant hereby accepts this independent contractor appointment.
2. Scope of Services and City Responsibilities.
a. Consultant shall perform the services (“Services”) and the City shall have the responsibilities described on the attached Exhibit “A,” Statement of Work (the “SOW”), which is incorporated herein by reference. To the maximum extent possible, the terms of the body of this Agreement and Exhibit “A” shall be interpreted so they are consistent .; however, if there is an direct and irreconcilable conflict between the text of this Agreement and Exhibit “A”, the lattershall control
b. Consultant shall correct any and all errors and/or omissions, which arise out of Consultant’s negligence or intentional misconduct, in the performance of the Services and any documents resulting therefrom even though City has accepted said Services or documents. Consultant shall make such corrections upon City’s request and at no cost or expense to City.
3. Time of Performance. Services shall be completed by the dates identified in the attached Exhibit “A.”
4. Compensation. Compensation to be paid to Consultant shall be in accordance with the attached Exhibit “A.” Payment by City under this Agreement shall not be deemed a waiver of errors, even if such errors were known to the City at the time of payment.
12.H.a
Packet Pg. 124
Attachment: Professional Services Agreement and SOW (IT: Approve Contract for Website Redesign & Agenda Management System) Initial: City Consultant
2 5. Method of Payment. Consultant shall submit annual billings to City describing the work performed. City shall pay Consultant no later than thirty (30) calendar days after the date of submittal of an invoice for completed tasks and approval of the invoice by City staff.
6. Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, “Extra Work” means any work which is determined by City to be necessary for the proper completion of the Services, but which are not included in the SOW. Extra work will be performed on terms agreed upon by the parties. Consultant shall not perform, nor be compensated for Extra Work without written authorization from City.
7. Termination. This Agreement may be terminated by either Party for cause upon sixty (60) days’ written notice of termination to Consultant. Upon termination, Consultant shall be entitled to compensation for Services performed up to the effective date of termination.
8. Ownership of Documents . Upon full and complete payment of amounts owed for Project Development under the applicable SOW, City will own the website graphic designs, webpage or Services content, mo dule content, importable/exportable data, and archived information (“ City Content”) created by Consultant on behalf of City pursuant to this Agreement. “ City Content” also includes any elements of text, graphics, images, photos, designs, artworks, logos, trademarks, services marks, and other materials or content which City provides or inputs into any website, software or module in connection with any Services. City Content excludes any content in the public domain; and any content owned or licensed by Consultant , whether in connection with providing Services or otherwise.
Upon completion of the Project Development, City will assume full responsibility for City Content maintenance and administration. City, not Consultant , shall have sole responsibility for the accuracy, quality, integrity, legality, reliability, appropriateness, and intellectual property ownership or right to use of all City Content. City hereby grants Consultant a worldwide, non - exclusive right and licen se to reproduce, distribute and display the City Content as necessary to provide the Services. City represents and warrants that City owns all City Content or that City has permission from the rightful owner to use each of the elements of City Content; and that City has all rights necessary for Consultant to use the City Content in connection with providing the Services.
At any time during the term of the applicable SOW, City will have the ability to download the City Content and export the City data thro ugh the Services. City may request Consultant to perform the export of City data and provide the City data to City in a commonly used format at any time, for a fee to be quoted at time of request and approved by City.
9. However, the City’s use of completed documents for other projects and/or the use of uncompleted documents without the written authorization of Consultant will be at the City’s sole risk. The City shall, to the fullest extent permitted by law, indemnify and hold harmless the Consultant from all claims, damages, losses, and expenses, including attorney fees, arising out of or resulting from any unauthorized reuse of, or changes to the Project Documents not performed by the Consultant.
10. Licensing of Intellectual Property . This Agreement creates a limited, nontransferable, andnon-exclusive license for City to use the Consultant Property associated with any valid and effective SOW, for the term of the respective SOW. Consultant represents and
12.H.a
Packet Pg. 125
Attachment: Professional Services Agreement and SOW (IT: Approve Contract for Website Redesign & Agenda Management System) Initial: City Consultant
3 warrants that Consultant has the legal right to license any and all Consultant Property. City shall not be limited in any way in its use of the Consultant Property at any time, provided that any such use not within the purpose intended by this Agreement shall be at City’s
12.H.a
Packet Pg. 126
Attachment: Professional Services Agreement and SOW (IT: Approve Contract for Website Redesign & Agenda Management System) Initial: City Consultant
4 sole risk. The City shall, to the fullest extent permitted by law, indemnify and hold harmless the Consultant from all claims, damages, losses, and expenses, including attorney fees, arising out of or resulting from any unauthorized reuse of or changes to the Project Documents not performed by the Consultant.
Intellectual Property in the software or other original works created by or licensed to Consultant, including all software source code, documents, and materials used in the Services (“ Consultant Property”) will remain the property of Consultant. Consultant Property specifically excludes City Content. City shall not (i) license, sublicense, sell, resell, reproduce, transfer, assign, distribute or otherwise commercially exploit or make av ailable to any third party any Consultant Property in any way, except as specifically provided in the applicable SOW; (ii) adapt, alter, modify or make derivative works based upon any Consultant Property; (iii) create internet “links” to the Consultant Property software or “frame” or “mirror” any Consultant Property administrative access on any other server or wireless or internet-based device that may allow third party entities, other than City , to use the Services; (iv) reverse engineer, decompile, disass emble or otherwise attempt to obtain the software source code to all or any portion of the Services; or (v) access any Consultant Property in order to (a) build a competitive product or service, (b) build a product using similar ideas, features, functions or graphics of any Consultant Property, or (c) copy any ideas, features, functions or graphics of any Consultant Property. The Consultant name, the Consultant logo, and the product and module names associated with any Consultant Property are trademarks of Consultant, and no right or license is granted to use them outside of the licenses set forth in this Agreement.
11. Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services under this Agreement, nor shall such materials be disclosed to any person or entity not connected with the performance of the Services under this Agreement. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City’s name, insignia, photographs, or the project for which Consultant’s Services are rendered, or any publicity pertaining to the Consultant’s Services under this Agreement in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent by City.
Notwithstanding the foregoing, the City acknowledges that the Consultant may want/need to include projects performed under this Agreement on proposals for similar work in the future. The City hereby grants permission to list any projects performed under this agreement for marketing purposes; provided however, Consultant will not make any representations regarding City’s satisfaction with Consultant’s work product unless Consultant receives a written statement or evaluation from City.
12. Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non- discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.
Consultant shall also comply with all relevant provisions of City’s programs or guidelines currently in effect as identified and provided to Consultant by City.
12.H.a
Packet Pg. 127
Attachment: Professional Services Agreement and SOW (IT: Approve Contract for Website Redesign & Agenda Management System) Initial: City Consultant
5 13. Insurance Requirements.
a. Consultant, at Consultant’s own cost and expense, shall procure and maintain, for the duration of this Agreement, the following insurance policies.
i. Workers Compensation Coverage. As required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with a limit of no less than ONE MILLION AND NO/100 DOLLARS ($1,000,000) per accident for bodily injury or disease.
ii. Commercial General Liability (CGL) Coverage. Insurance Services Office (ISO) Form CG 0001, including products and completed operations, with a limit of no less than TWO MILLION AND NO/100 DOLLARS ($2,000,000) per occurrence for bodily injury, personal injury, and property damage, and a general aggregate limit of no less than FOUR MILLION AND NO/100 DOLLARS ($4,000,000).
12.H.a
Packet Pg. 128
Attachment: Professional Services Agreement and SOW (IT: Approve Contract for Website Redesign & Agenda Management System) Initial: City Consultant
6 iii. Automobile Liability Coverage. ISO Form Number CA 0001 covering any auto (Code 1), or if Consultant has no owned autos, Code 8 (hired) and 9 (non-owned),with a limit no less than ONE MILLION AND NO/100 DOLLARS ($1,000,000) per accident for bodily injury and property damage.
iv. Professional Liability Coverage. Consultant will maintain Technological Errors & Omissions/Cyber Professional coverage with limits no less than TWO MILLION AND NO/100 DOLLARS ($2,000,000) per occurrence or claim, and TWO MILLION AND NO/100 DOLLARS ($2,000,000) policy aggregate.
If Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by Consultant.
Consultant’s insurance policies shall be “occurrence” policies and not “claims -made” coverage except for Professional Liability Coverage. “Claims-made” policies must satisfy the following requirements: (i) the retroactive date of coverage must be shown and must precede the effective date of the contract;(ii) coverage shall be maintained and evidence of coverage must be provided for at least five (5) years after completion of the contract work; and (iii) if coverage is canceled or non-renewed and not replaced with another claims-made policy form with a retroactive date preceding the contract effective date, Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work. The coverages described herein shall apply only to any occurrences or claims made during the term of this Agreement.
Consultant may maintain an Umbrella policy in conjunction with the insurance policies referenced above. In such case, Consultant shall be deemed to have satisfied the insurance requirements of this contract as long as: (i) the coverage limits of the Umbrella policy and of the underlying liability policy(ies), when combined, satisfy each of the per occurrence and aggregate requirements identified in this section; and (ii) coverage under the Umbrella policy is as broad as and includes all incidents and events covered by the underlying insurance that it supplements.
City shall be informed of any deductible amounts.
b. The policies are to contain, or be endorsed to contain, the following provisions:
i. The City and its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL and automobile liability policies with respect to liability arising out of work or operations performed by or on behalf of Consultant including materials, parts, or equipment furnished in connection with such work or operations; products used by Consultant; or automobiles owned, leased, hired or borrowed by Consultant. General liability coverage can be provided in the form of an endorsement to Consultant’s insurance at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33 or CG 20 38 and CG 20 37 if a later edition is used. The coverage shall contain no special limitations on the scope of protection afforded to the City and its officers, officials, employees or volunteers.
12.H.a
Packet Pg. 129
Attachment: Professional Services Agreement and SOW (IT: Approve Contract for Website Redesign & Agenda Management System) Initial: City Consultant
7 ii. For any claims related to this contract, Consultant’s insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 as respects the City and its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City and/or its officers, officials, employees, or volunteers shall be in excess of Consultant’s insurance and shall be non-contributory.
iii. Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City.
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII.
Consultant shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Consultant’s obligation to provide them. The City reserves the right to re quire complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
c. Consultant hereby grants to the City and its officers, officials, employees, and volunteers a waiver of any right to subrogation which any insurer of Consultant may acquire against the City and/or its officers, officials, employees, and volunteers by virtue of the payment of any loss under such insurance. Consultant agrees to obtain endorsements necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.
14. Indemnification. To the fullest extent allowable by law, Consultant agrees to indemnify, defend and hold harmless the City and its officials, officers, employees, agents and volunteers from and against all third-party claims, demands, actions, injuries, liabilities, losses, costs or damages, direct or indirect, and any and all attorneys’ fees and other expenses which City or its officials, officers, employees, agents or volunteers may sustain or incur as a consequence of or are in any way related to Consultant’s or its owners, directors, officers, managers, employees, agents and sole willful or negligent acts or omissions in the performance of the services and Consultants responsibilities and obligations to be performed under this agreement or its failure to perform or comply with any of its obligations or responsibilities contained in this agreement; excluding, however, such liability, claims, losses, damages or expenses arising from the extent of City’s negligence or willful acts. This duty to indemnify, defend, and hold harmless shall survive the termination of this agreement.
15. Independent Contractor Status. It is understood and agreed that Consultant, in the performance of the Services to be performed pursuant to this Agreement, shall act as and be an independent contractor and shall not act as an agent or employee of City. Consultant shall obtain no retirement benefits or other benefits which accrue to City’s employees and Consultant hereby expressly waives any claim it may have to any such rights. Nothing in this Agreement shall create or be construed as creating a partnership, joint venture or any other relationship between City and Consultant.
12.H.a
Packet Pg. 130
Attachment: Professional Services Agreement and SOW (IT: Approve Contract for Website Redesign & Agenda Management System) Initial: City Consultant
8 16. Consultant’s Books and Records.
a. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement.
b. Consultant shall maintain all documents and records that demonstrate performance under this Agreement for a minimum period of three (3) years, or for any longer period required by law, from the date of termination or completion of this Agreement.
c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City. Copies of such documents shall be provided to the City for inspection at the City offices.
d. Where City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Consultant’s business, City may, by written request, require that custody of the records be given to the City and that the records and documents be maintained in the City offices. Access to such records and documents shall be granted to any party authorized by Consultant, Consultant’s representatives, or Consultant’s successor-in- interest.
17. Interest of Consultant. Consultant and its shareholders covenants and represents that they do not now have any investment or interest in real property and shall not acquire any interest, direct or indirect, in the area covered by this Agreement or any other source of income, interest in real property or investment which would be affected in any manner or degree by the performance of Consultant’s Services hereunder. Consultant further covenants and represents that in the performance of the Services hereunder, to the best of its knowledge no person having any such interest shall perform any Services under this Agreement.
Consultant is not a designated employee within the meaning of the Political Reform Act because Consultant:
a. will conduct research and arrive at conclusions with respect to rendition of information, advice, recommendation or counsel independent of the control and direction of the City or of any City official, other than normal agreement monitoring; and
b. possesses no authority with respect to any City decision beyond rendition of information, advice, recommendation or counsel. FPPC Reg. Sec. 18700, et seq.
18. Professional Ability of Consultant. City has relied upon Consultant’s representations regarding its training and professional ability to perform the Services hereunder as a material inducement to enter into this Agreement. Consultant shall therefore provide properly skilled personnel to perform all Services under this Agreement. All work performed by Consultant under this Agreement shall be in accordance with the applicable professional standard of care and shall meet the industry professional standard of quality ordinarily to be expected of competent persons in Consultant’s field
12.H.a
Packet Pg. 131
Attachment: Professional Services Agreement and SOW (IT: Approve Contract for Website Redesign & Agenda Management System) Initial: City Consultant
9 of expertise working in Kings County.
19. Compliance with Laws . Consultant shall use the proper standard of care in performing the Services and shall comply with all applicable federal, state and local laws, codes, ordinances and regulations in effect at the time the agreement is executed. In addition, if the request for proposal to provide professional services which are the subject of this Agreement cited any federal or state financial assistance involved in the project for which the Services are provided, the Consultant shall perform all services in accordance with all applicable federal and state laws, rates and regulations in effect at the time the agreement is executed.
20. Licenses. Consultant represents and warrants to City that it has all licenses, permits, qualifications, and insurance which are legally required of Consultant to lawfully and competently perform the Services. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any licenses, permits, and insurance which are legally required of Consultant to lawfully and competently perform the Services. Consultant shall maintain a City of Hanford business license.
21. Assignment and Subcontracting. The parties recognize that a substantial inducement to City for entering into this Agreement is the reputation, experience and competence of Consultant. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the expre ss written consent of the City, which will not be unreasonably withheld. Consultant may assign and transfer the rights and obligations of this Agreement by the merger or sale of substantially all of its assets. Consultant shall not subcontract any portion of the Services to be performed under this Agreement without the express written consent of the City, which will not be unreasonably withheld. If City consents to such subcontract, Consultant shall be fully responsible to City for all acts or omissions of the subcontractor. Nothing in this Agreement shall: (i) create any contractual relationship between City and subcontractor; (ii) create any obligation on the part of the City to pay or to see to the payment of any monies due to any such subcontractor; (iii) or relieve Consultant of any of its obligations and responsibilities under this Agreement.
22. Attorneys’ Fees. If an action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other reasonable relief to which he may be entitled.
With respect to any suit, action or proceeding arising out of or related to this Agreement, or the documentation related hereto, the parties hereby submit to the jurisdiction and venue of the Superior Court for the County of Kings, State of California for any proceeding arising hereunder.
23. Sole and Only Agreement. This Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the matters set forth herein and contains all of the covenants and agreements between the parties regarding said matters.
Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or in writing, have been made by any party or anyone acting on behalf of any party which are not embodied in this Agreement and no other agreement, statement or promise shall be valid or binding.
12.H.a
Packet Pg. 132
Attachment: Professional Services Agreement and SOW (IT: Approve Contract for Website Redesign & Agenda Management System) Initial: City Consultant
10 24. Invalidity. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force and effect without being impaired or invalidated in any way.
25. Amendment. No change, amendment or modification of this Agreement shall be valid unless the same be in writing and signed by the parties hereto.
26. Governing Law. This Agreement shall be construed and governed pursuant to the laws of the State of California.
27. Waiver. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this Agreement.
28. Mediation. The parties agree to make a good faith attempt to resolve any disputes arising out of this Agreement through mediation prior to commencing litigation. The parties shall mutually agree upon the mediator and shall divide the costs of mediation equally. If the parties are unable to agree upon a mediator, the dispute shall be submitted to JAMS/ENDISPUTE (“JAMS”) or its successor in interest. JAMS shall provide the parties with the names of five qualified mediators.
Each party shall have the option to strike two of the five mediators selected by JAMS and thereafter the mediator remaining shall hear the dispute. If the dispute remains unresolved after mediation, either party may commence litigation.
29. Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or result from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
30. Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver and perform the Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party.
31. Notice. Except as otherwise expressly provided herein, any notice, consent, authorization or other communication to be given hereunder shall be in writing and shall be deemed duly given and received when delivered personally, when transmitted by facsimile or e-mail if receipt is acknowledged by the addressee, one business day after being deposited for next-day delivery with a nationally recognized overnight delivery service, or three business days after being mailed by first class mail, charges and postage prepaid, property addressed to the party to receive such notice at the last address furnished for such purpose by the party to whom notice is directed and addressed as follows:
12.H.a
Packet Pg. 133
Attachment: Professional Services Agreement and SOW (IT: Approve Contract for Website Redesign & Agenda Management System) Initial: City Consultant
1 Mario A. Cifuentez, II
City of Hanford
319 N. Douty
Hanford, CA 93230
IN WITNESS WHEREOF, the parties have executed this Agreement effective on the day and in the year first set forth above.
CITY
CITY OF HANFORD,
a Municipal Corporation
By: MARIO A.
CIFUENTEZ, II
City Manager
CONSULTANT
By:
[name]
[title]
12.H.a
Packet Pg. 134
Attachment: Professional Services Agreement and SOW (IT: Approve Contract for Website Redesign & Agenda Management System) Initial: City Consultant
2 EXHIBIT A
CivicPlus
302 South 4th St. Suite 500
Manhattan, KS 66502
US
Client:
Hanford CA - CivicEngage
Quote #: Q-22539-1
Date: 2/11/2022 2:11 PM
Expires On: 5/12/2022
Product: CivicEngage
Bill To:
Hanford CA - CivicEngage
SALESPERSON Phone EMAIL DELIVERY METHOD PAYMENT
METHOD
Solomon Grover x7852224856 [email protected] Net 30
CivicEngage - Statement of Work
QTY PRODUCT NAME DESCRIPTION PRODUCT
TYPE
10.00 Banner - CivicEngage Central Design/apply unique interior banner to CivicEngage Central website
One-time
1.00 AudioEye Managed AudioEye Managed: (https://www.ci.hanford.ca.us/) Renewable
1.00 Annual - CivicEngage Central Annual - CivicEngage Central Renewable
1.00 Hosting & Security Annual Fee -
CivicEngage Central
Hosting & Security Annual Fee - CivicEngage Central Renewable
1.00 SSL Management – CP Provided Only SSL Management – CP Provided Only 1 per domain (Annually Renews)
Renewable
1.00 DNS and Domain Hosting Setup
(http://URL)
DNS and Domain Hosting Setup (https:// www.ci.hanford.ca.us/) One-time
1.00 DNS and Domain Hosting Annual Fee
(http://URL)
DNS and Domain Hosting Annual Fee (https://
www.ci.hanford.ca.us/)
Renewable
1.00 Premium Implementation -
CivicEngage
Premium Implementation One-time
1.00 4yr Redesign Premium Annual -
CivicEngage Central
4yr Redesign Premium Annual - CivicEngage Central Renewable 150.00 Content Development - 1 Page -
CivicEngage
Content Development - 1 Page - CivicEngage One-time
12.H.a
Packet Pg. 135
Attachment: Professional Services Agreement and SOW (IT: Approve Contract for Website Redesign & Agenda Management System) Initial: City Consultant
3 8.00 System Training (4h, virtual) -
CivicEngage
CivicEngage System Training - Virtual, Half Day Block One-time
1.00 Agendas & Minutes Migration
- PDF - 100 Meetings - CivicEngage
Content Migration : Agendas & Minutes - Per 100 Meetings (Approx. 1 year)
One-time
List Price - Year 1 Total USD 90,075.00
Total Investment - Year 1 USD 37,147.25
Annual Recurring Services - Year 2 USD 13,364.00
Total Days of Quote:365
1. This Statement of Work ("SOW") shall be subject to the terms and conditions of the CivicPlus Master Services Agreement located at https://www.civicplus.com/master-services-agreement (“MSA”), to which this SOW is hereby attached as the CivicEngage Statement of Work. By signing this SOW, Client expressly agrees to the terms and conditions of the MSA throughout the Term of this SOW.
2. This SOW shall remain in effect for an initial term equal to 365 days from the date of signing (“Initial Term”).
In the event that neither party gives 60 days’ notice to terminate prior to the end of the Initial Term, or any subsequent Renewal Term, this SOW will automatically renew for an additional 1-year renewal term (“Renewal Term”). The Initial Term and all Renewal Terms are collectively referred to as the “Term”.
3. The Total Investment - Year 1 will be invoiced as follows:
a. Upon signing this SOW, thirty percent (30%) of the Total Investment Year 1 Fees; b. The earlier of 6 months from signing or upon completion of CivicEngage Implementation (completion of training), the remaining seventy percent (70%) of the Total Investment Year 1.
4. Annual Recurring Services shall be invoiced on the start date of each Renewal Term. Annual Recurring Services, including but not limited to hosting, support and maintenance services, shall be subject to a 5% annual increase beginning in year 3 of service. Client will pay all invoices within 30 days of the date of such invoice.
5. Client agrees that CivicPlus shall not migrate, convert, or port content or information that could reasonably be construed as time sensitive, such as calendar or blog content, during the Project Development.
6. If a Recurring Redesign line item is included with the Client's quote in this SOW, starting after 48 months of continuous service under this SOW, Client shall be entitled to receive a redesign at no additional cost. Client may initiate such redesign any time after 48 months of continuous service. Upon the initiation of an eligible redesign project, Client may begin accumulating eligibility towards a subsequent redesign after another 48 months of continuous service. Redesigns that include additional features not available on the original website may be subject to additional charges. Additional features include, but are not limited to, additional modules and integration of third-party software. Recurring Redesigns are eligible for the website, subsite, and department headers included in this SOW only. Any subsequently purchased website, subsite, and department header shall not be included in a redesign hereunder.
7. Client allows CivicPlus to display a “Government Websites by CivicPlus” insignia, and web link at the bottom of their web pages. Client understands that the pricing and any related discount structure provided under this SOW assumes such perpetual permission.
Signature Page to Follow.
12.H.a
Packet Pg. 136
Attachment: Professional Services Agreement and SOW (IT: Approve Contract for Website Redesign & Agenda Management System) Initial: City Consultant
4 Acceptance
By signing below, the parties are agreeing to be bound by the covenants and obligations specified in this SOW and the MSA terms and conditions found at: https://www.civicplus.com/master-services-agreement.
IN WITNESS WHEREOF, the parties have caused this SOW to be executed by their duly authorized representatives as of the dates below.
Client CivicPlus
By: By:
Name: Name:
Title: Title:
Date: Date:
12.H.a
Packet Pg. 137
Attachment: Professional Services Agreement and SOW (IT: Approve Contract for Website Redesign & Agenda Management System) Initial: City Consultant
5 Contact Information
*all documents must be returned: Master Service Agreement, Statement of Work, and Contact Information Sheet.
Organization URL
Street Address
Address 2
City State Postal Code
CivicPlus provides telephone support for all trained clients from 7am –7pm Central Time, Monday-Friday (excluding holidays).
Emergency Support is provided on a 24/7/365 basis for representatives named by the Client. Client is responsible for ensuring CivicPlus has current updates.
Emergency Contact & Mobile Phone
Emergency Contact & Mobile Phone
Emergency Contact & Mobile Phone
Billing Contact E-Mail
Phone Ext. Fax
Billing Address
Address 2
City State Postal Code
Tax ID # Sales Tax Exempt #
Billing Terms Account Rep
Info Required on Invoice (PO or Job #)
Are you utilizing any external funding for your project (ex. FEMA, CARES): Y [ ] or N [ ]
Please list all external sources:
Contract Contact Email
Phone Ext. Fax
Project Contact Email
Phone Ext. Fax
12.H.a
Packet Pg. 138
Attachment: Professional Services Agreement and SOW (IT: Approve Contract for Website Redesign & Agenda Management System) Initial: City Consultant
6 12.H.a
Packet Pg. 139
Attachment: Professional Services Agreement and SOW (IT: Approve Contract for Website Redesign & Agenda Management System) CivicPlus
302 South 4th St. Suite 500
Manhattan, KS 66502
US
Quote #: Q-24222-1
Date: 4/6/2022 7:33 PM
Expires On: 12/31/2022
Product: CivicClerk
Client:
Hanford CA - CivicClerk
Bill To:
Hanford CA - CivicClerk
SALESPERSON Phone EMAIL DELIVERY METHOD PAYMENT METHOD
Gabby Bond x [email protected] Net 30
CivicClerk - Statement of Work
QTY PRODUCT NAME DESCRIPTION PRODUCT
TYPE
1.00 CivicClerk Annual Fee CivicClerk Annual Fee - Agenda and Minutes Management Renewable
1.00 CivicClerk Premium
Implementation Package
Premium Implementation Package – Up to # of Boards
1.00 CivicClerk Premium Configuration CivicClerk Premium Configuration One-time
1.00 CivicClerk Custom Template
Design
CivicClerk Custom Template Set - includes 2 Agenda
templates, 1 Item Report template, 1 Minutes template, 1 Agenda Script template
One-time
2.00 CivicClerk Consulting (1h, virtual) 1 hour Virtual Consulting One-time
1.00 CivicClerk Virtual Training (Half
Day Block)
Training (Virtual) - half day, up to 4 hours One-time
1.00 Live Meeting Manager Annual Fee CivicClerk Live Meeting Manager Annual Fee - Live Meeting, Electronic Voting, Display Pages
Renewable
Total Investment - Year 1 USD 12,760.00
Annual Recurring Services - Year 2 USD 9,366.00
Total Days of Quote:365
1. This Statement of Work ("SOW") shall be subject to the terms and conditions of the CivicPlus Master Services Agreement located at https://www.civicplus.com/master-services-agreement (“MSA”), to which this SOW is hereby attached as the CivicClerk Statement of Work. By signing this SOW, Client expressly agrees to the terms and conditions of the MSA throughout the Term of this SOW.
2. This SOW shall remain in effect for an initial term equal to 365 days from the date of signing (“Initial Term”). In the event that neither party gives 60 days’ notice to terminate prior to the end of the Initial Term or any subsequent Renewal Term, this SOW will automatically renew for an additional 1-year renewal term (“Renewal Term”). The Initial Term and all Renewal Terms are collectively referred to as the “Term”.
V. PD 06.01.2015-0048