HomeMy WebLinkAbout2020 07.14 City Council Special Agenda City of Apache Junction, Arizona Meeting location:
City Council Chambers
1U Z at City Hall
Agenda 300 E Superstition Blvd
\gilONr Apache Junction,AZ
Special Meeting of the Apache Junction 85119
City Council www.ajcity.net
Ph:(480)982-8002
Tuesday,July 14,2020 7:00 PM
CALL TO ORDER
ROLL CALL
OLD BUSINESS
20-348 Presentation, discussion, and consideration for Resolution No. 20-23,
a resolution of the Mayor and City Council of the City of Apache
Junction, Arizona, approving a small business assistance grant
program in the City of Apache Junction and declaring an emergency
for grant funding recently made available through the Coronavirus Aid,
Relief and Economic Security("CARES")Act(signed into law by
President Trump on March 27, 2020 under Pub. L. 116-136).
ADJOURNMENT
Copies of this agenda and additional information on any of the items listed above may be obtained from
the City Clerk's office located at 300 E Superstition Blvd,Apache Junction,AZ 85119, Monday through
Thursday from 7:00a-6:00p, excluding holidays.
The City of Apache Junction invites and welcomes people of all abilities to use our programs, sites and
facilities. Specific requests may be made by contacting the Human Resources Office at(480)474-2617
or TDD(480) 983-0095.
City of Apache Junction,Arizona Page 1 Printed on 7/9/2020
►P�"E�c�, City of Apache Junction, Arizona 300 E Superstition
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_+ Agenda Item Cover Sheet Apache Junction,AZ
85119
Agenda Item No.
'Piz File ID: 20-348
Sponsor: Matt Busby and Janine Solley Agenda Date: 7/14/2020
Index: In Control: Special Meeting of the Apache Junctio
Presentation, discussion, and consideration for Resolution No. 20-23, a resolution of the Mayor
and City Council of the City of Apache Junction, Arizona, approving a small business
assistance grant program in the City of Apache Junction and declaring an emergency for grant
funding recently made available through the Coronavirus Aid, Relief and Economic Security
("CARES")Act(signed into law by President Trump on March 27, 2020 under Pub. L. 116-136).
City of Apache Junction,Arizona Page 1 Printed on 71912020
EXHIBIT A
APACHE JUNCTION SMALL BUSINESS ASSISTANCE GRANT PROGRAM
BACKGROUND:
During the ongoing COVID-19 worldwide health crisis,the resulting economic impact of executive orders
issued at federal,state and local levels that were structured to reduce COVID-19 infections, has filtered
down to municipalities and created situations of economic strife. Apache Junction has felt the impacts
and recognizes that the city's small business community has been working very hard to implement
mandated physical changes in order to keep their businesses open. In addition, some businesses were
forced to temporarily close or limit customer occupancy in order to comply with the mandates.
In an effort to assist the city's business community with economic relief and enhance their chance of
reemerging from this time of declared emergency, staff has outlined a grant program that will financially
assist eligible small businesses within the incorporated limits of Apache Junction. The intent is to provide
needed resources to stabilize business operations, maintain employment opportunities for residents,
and ensure compliance of new health and safety standards brought on by COVID-19.
STAFF RECOMMENDATION:
Approval of Resolution 20-23 is recommended directing staff to implement a grant program to assist
Apache Junction small businesses during the city's current declared state of emergency with a one-time
reimbursement for COVID-19 related impacts.
DISCUSSION:
The Apache Junction Small Business Assistance Grant Program is designed to assist eligible Apache
Junction businesses to mitigate some of the economic hardship related to the impact of COVID-19.
Eligible expense reimbursements (total maximum of$10,000 per business) one-time should be allowed
for any of the following combination:
• Up to four month's rent(April, May,June, and/or July 2020).
• Up to four month's utilities(April, May,June, and/or July 2020)which includes water, electric,
internet, gas, and sewer.
• Expenditures for Personal Protective Equipment("PPE") or required business modifications due
to COVID-19 mandates and expended during the months of April, May, and/or June 2020 (i.e.
installation of plexiglas, social distancing signage, disinfectants).The total amount of
reimbursement request for this category may not exceed $750 and is to be calculated as part of
the total maximum reimbursement of$10,000.
PROGRAM CRITERIA:
• For-profit businesses located at a physical, commercially zoned address within the Apache
Junction city limits (no non-profits; no home-based businesses).
• Held a valid City of Apache Junction business license on or before March 1, 2020 and continue to
be in good standing and still in business at the time of application.
• Are not a company-owned franchise.
• Provides documentation that its business income/sales have been reduced by at least 25% due
to COVID-19 starting in January through date of application submittal.
INELIGIBLE BUSINESSES:
• Corporate-owned/operated franchises.
• Publicly held companies.
• Real estate investment firms.
• Dealers of rare coins and stamps.
• Firms involved in lending activities such as banks, credit unions, check cashing,finance
companies, leasing companies, payday loan companies, insurance companies (not agents), pawn
shops, and any other firm whose stock in trade is money.
• Pyramid sales plans where a participant's primary incentive is based on the sales made by an
ever-increasing number of participants to include cosmetic, household goods and other soft
goods sales.
• Firms engaged in illegal activities.
• Gambling activities, including any business whose principal activity is gambling. While this
precludes grants to racetracks, casinos and similar enterprises,the rule does not restrict grants
to otherwise eligible businesses which obtain less than one-third of their annual gross income
from either the sale of official state lottery tickets under a state license, or legal gambling
activities licensed and supervised by a state authority, including businesses with an off-track
betting license.
• Principal or owner of the business is currently incarcerated or on parole.
• Any business owned, in whole or in part, by an Apache Junction official or employee who, in
their official capacity, participates in or votes on the oversight, development, or implementation
of the Apache Junction Small Business Assistance Grant Program contrary to A.R.S. § 38-503.
This exclusion also includes any business owned by a relative of such public officer or employee
contrary to A.R.S. §38-502(9).
• Companies with legal actions involving the City of Apache Junction, including but not limited to
code enforcement liens and other criminal and civil lawsuits.
• This list of ineligible businesses may be updated by the city as the program continues.
PROGRAM TIMEFRAME:
Applications will be accepted from July 21, 2020 through August 25, 2020. Grants will be awarded on a
rolling basis until funding is exhausted or the grant period closes,whichever comes first.
PROCESS REQUIREMENTS:
• Complete application and all required supporting documents.
• Provide copies of paid receipts or proof of payment for eligible expense reimbursement (or past
due invoices).
• Attach copy of a W-9 form from the IRS.
• Attach copy of City of Apache Junction business license that was issued before March 1, 2020
and that is still in effect.
• Acknowledge with signature that all submittals and statements are true and accurate.
• Staff will review applications with a review committee appointed by the city manager.
2
• Staff will make a decision within ten (10) calendar days from receipt of a complete submittal.
• Requesting party can appeal decision to the city manager, whose decision will be final, subject
only to a Superior Court judicial officer.
• No appeal is available before the city council or any board or commission.
3
APPLICATION INFORMATION/DOCUMENTATION TO BE REQUESTED:
Business Name:
Primary Business Owner:
Applicant Name and Title (if not owner):
Physical Business Address: Zip Code:
Owner Home Address: Zip Code:
Email:
Business Phone Number:
Business Website Address:
Date first opened in Apache Junction:
Employer Identification Number(EIN) or Tax ID:
Current Number of Full Time Employees:
Current Number of Part Time Employees:
Amount of RENT/MORTGAGE Reimbursement Requested (total) $
Rent receipts/proof of Payment Attachments: Y N
Amount of UTILITY Reimbursement Requested (total) $
Utility receipts/proof of Payment Attachments: Y N
Amount of PPP or modification requirement due to mandates Reimbursement Requested ($750
maximum for this category):
PPE/modification receipts/proof of Payment Attachments:Y N
Was your business negatively impacted by at least 25%or more in sales due to COVID-19 since January
31, 2020 when the United States Department of Health and Human Services declared a Public Health
Emergency? Please provide supporting documentation (i.e. income statements, historic sales reports,
etc.). Y N
What type of Federal CARES Act funding or COVID-19 assistance has your business received and what
amount, if any, and from which governmental entities?
Business Owner/Contact Signature
By signing below, I certify that:
The information provided on this application is complete and accurate to the best of my knowledge
I have read and understand the Apache Junction Small Business Grant Program Criteria and
Requirements
I understand that submission of an application does not entitle my business to grant funding
I understand that only expenses,which have been approved in writing by the city,will be reimbursed
4
I understand that my business must make and pay for expenses and submit proof to the city for
reimbursement
I will provide requested performance data related to the use of funds for expenses as outlined in the
grant guidelines
5
RESOLUTION NO. 20-23
A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY
OF APACHE JUNCTION, ARIZONA, APPROVING A SMALL
BUSINESS ASSISTANCE GRANT PROGRAM IN THE CITY OF
APACHE JUNCTION AND DECLARING AN EMERGENCY.
WHEREAS, local businesses are an essential component of a
vibrant community and will play an integral role in the recovery
from Coronavirus Disease 2019 ("COVID-19") ; and
WHEREAS, disruptions to the business community are serious,
as businesses are the backbone of the city' s economy and provide
the foundation of employment, services for the community and
revenue for the city to provide essential public services; and
WHEREAS, assistance is necessary to help businesses recover
and restart; and
WHEREAS, on January 31, 2020, the United States Department
of Health and Human Services declared a Public Health Emergency
related to the COVID-19 outbreak; and
WHEREAS, on March 11, 2020, Arizona Governor Doug Ducey
declared a state of emergency to make additional resources
available, formalize emergency actions already underway across
multiple state agencies and departments, and help the State of
Arizona prepare for broader spread of COVID-19; and
WHEREAS, on March 20, 2020, the Mayor ratified a
Proclamation of Emergency relative to the Covid-19 pandemic
issued pursuant to A.R. S . § 26-307, A.R. S . § 26-311, and § 2-2-
4 (D) of the Apache Junction City Code Vol . I; and
WHEREAS, on March 27, 2020, President Trump signed the
Coronavirus Aid, Relief and Economic Security ("CARES") Act,
Pub. L. 116-136 (2020) ; and
WHEREAS, on May 29, 2020, Governor Ducey informed the city
that the state would be offering the city a grant from the AZ
Cares Fund which reimburses city public safety costs in the
amount of $4, 887, 430 . 00 made available through the federal
government from the U. S . Department of Treasury' s Coronavirus
Relief Fund ("CRF") Catalog of Federal Domestic Assistance
("CFDA") , Number 21 . 019, as part of the CARES Act; and
RESOLUTION NO. 20-23
PAGE 1 OF 3
WHEREAS, on June 30, 2020, the city submitted the grant
application for accepting the available funds (grant number
ERMT-20-012) which was approved on July 6, 2020; and
WHEREAS, these funds were placed in the city' s general fund
as a contingency line item in the FY 2020-2021 budget; and
WHEREAS, on June 2, 2020, June 15, 2020 and July 6, 2020,
the mayor and city council discussed the potential uses of the
funds; and
WHEREAS, on July 14, 2020, the mayor and city council
discussed a grant assistance program that would benefit local
businesses and stipulated up to 250 of the $4, 887, 430 . 00 would
fund the program; and
WHEREAS, the mayor and city council have unanimously
determined that it is in the best interest of the city to assist
the city' s business community with economic relief during the
COVID-19 health emergency and enhance the general economic
welfare of the business community and of the residents and
others who frequent businesses in the city.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AS FOLLOWS :
Section 1 : City staff shall establish and implement a small
business grant program to assist the city' s business community
with economic relief during the COVID-19 health emergency and to
enhance the health, safety and welfare of the residents and
others who frequent businesses in the city as more fully set
forth in Exhibit A, and incorporated herein by this reference.
Section 2 : City staff is hereby authorized to negotiate and
execute any and all documents and approve all actions necessary
to establish and implement the direction and intent of this
resolution, and for city staff to effectively administer the
grant program set forth in Exhibit A.
Section 3 : The mayor and city council have determined the
implementation of the city' s grant program enhances the public
welfare and its terms and conditions for its recipients are
compatible with the restrictions under the AZ Constitution
Article 9, § 7 .
RESOLUTION NO. 20-23
PAGE 2 OF 3
Section 4 : It is necessary for the preservation of the
peace, health and safety of the City of Apache Junction,
Arizona, and consistent with the declarations and proclamation
of emergency set forth above, an emergency is declared to exist,
and this resolution shall become immediately operative and in
force from and after the date of posting hereof.
APROVED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
APACHE JUNCTION, ARIZONA, THIS DAY OF , 20
SIGNED AND ATTESTED TO THIS DAY OF , 20
JEFF SERDY
Mayor
ATTEST:
JENNIFER PENA
City Clerk
APPROVED AS TO FORM:
RICHARD J. STERN
City Attorney
RESOLUTION NO. 20-23
PAGE 3 OF 3
EXHIBIT A
State of Arizona
Office of the Governor
AZCares Fund Program
ERMT Grant Number: ERMT-20-012
Award Amount: $4,887,430
Grant Agreement Terms and Conditions
This Grant Agreement ("Agreement") is between the City of Apache Junction ("Grantee") and the State
of Arizona, acting through the Governor's Office ("Grantor"), (sometimes, individually, a "Party," or
collectively, "Parties").
I. Purpose
Distribution to local Arizona jurisdictions of federal financial assistance from The U.S. Department
of the Treasury's Coronavirus Relief Fund (CRF), Catalog of Federal Domestic Assistance (CFDA)
number 21.019, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
II. Term, Effective Date, and Termination
The Agreement commences when it is signed by both Parties. The Agreement project period is
March 1, 2020 through December 30, 2020. The Agreement expires at the end of the award term.
The Agreement shall not bind nor purport to bind the Grantor for any commitment in excess of the
original Agreement award term or amount.
In the event of a material breach of any provision of this Agreement, the non-breaching Party
shall give written notice to the breaching Party specifically setting forth the nature of the breach.
Upon being served with such notice, the breaching Party shall have ten (10) days in which to cure
said breach. If said breach has not been cured within the ten (10) days, then the non-breaching
Party may terminate this Agreement.
III. Renewal and Amendments
This Agreement is issued under the authority of the authorized Grantor representative who
signed this Agreement. The Grantor shall have the right, at its sole and unfettered discretion,
whether or not to extend this Agreement. If so, the Parties must execute a written Amendment or
a new Agreement. A renewal may be considered if the Grantor adds additional funding and
subsequent rounds of awards to the AZCares Fund, the State of Arizona receives additional
federal Coronavirus Disease 2019 (COVID-19) public health emergency funding, and/or the State
of Arizona Legislature chooses to appropriate funding for this specific purpose. Also,
consideration for renewal will be based on results of program and fiscal monitoring.
The Agreement may be modified only through an Agreement Amendment within the scope of the
Agreement. Any changes to the Agreement by a person who is not specifically authorized by the
Grantor representative in writing or made unilaterally by the Grantee are violations of the
Agreement and of applicable law. Such changes, including unauthorized written Agreement
Amendments shall be void and without effect, and the Grantee shall not be entitled to any claim
under this Agreement based on those changes.
IV. Obligations of the Parties
Responsibilities of the Grantee:
a. Grantee agrees that grant funds will be used in accordance with applicable statutes,
program rules, guidelines and special conditions.
b. Grantee agrees that it will submit financial and activity reports to Grantor in a format
provided by the Grantor, documenting the activities supported by these grant funds and
Page 1 of 8
providing an assessment of the impact of these activities. In the event reports are not
received on or before the indicated date(s), funding may be suspended until such time as
delinquent report(s) are received.
c. Grantee understands that financial reports are required as an accounting of expenditures
for either reimbursement or Grantor-approved payments. Reports are due pursuant to the
schedule listed in this Agreement.
d. The final request for reimbursement of grant funds must be received by the Grantor on or
before the last day of the project period.
e. Grantee agrees to remit all unexpended grant funds to the Grantor within thirty (30) days of
written request received from the Grantor.
f. Grantee agrees that all encumbered funds must be expended and that payroll and
Employee Related Expenses (ERE) must be paid on or before the expiration of this
Agreement.
g. Grantee agrees to cooperate and participate with any and all assessments, evaluation
efforts or information and data collection requests, and acknowledges that the Grantor has
the right to obtain, reproduce, publish, or use data provided under this award in accordance
with applicable statutes, rules, and guidelines.
h. Grantee understands that the Agreement may not be closed until Grantee is compliant with
all requirements of the Agreement.
i. Required programmatic and financial reports are submitted according to the schedule
below. At any point, the Grantee can submit its final report thus ending its need to submit
any subsequent reports:
Programmatic and Financial Reports
Report Period: Due Date:
March 1 s`—June 30t" Jul 3ftl
Jul 18t—September 30t" October 5t"
October 1s' — December January 4'
30tn
Responsibilities of the Grantor:
a. Once the following actions and documents are completed by Grantee and have been
received, verified, and approved by the Grantor, payment to the Grantee will be completed
within 5 business days:
i. Obtained a Duns & Bradstreet number;
ii. SAM.gov registration completed;
iii. AZCares Fund application submitted;
iv. AZCares Fund Certification Form submitted;
V. Budget/expense request submitted;
vi. Award acceptance submitted;
vii. State of Arizona General Accounting Office (GAO) Automated Clearing House (ACH)
set-up completed; and
viii. The Agreement executed by the Grantee or an email from the Grantee sent to
ospber az.gov stating that the Agreement is on the Grantee's board/council agenda
for review and execution. Grantee will provide the exact date of the board/council
meeting in that email.
V. Fund Management
Grantee must receive these funds under this Agreement in a separate ledger account/fund and
cannot mix these funds with other sources. The Grantee must manage funds according to
applicable federal regulations for administrative requirements, cost principles and audits.
The Grantee must maintain adequate business systems to comply with Federal requirements.
The business systems that must be maintained are:
a. Financial Management d. Property
b. Procurement e. Travel
Page 2 of 8
c. Personnel
A system is adequate if it is: 1) written; 2) consistently followed - it applies in all similar
circumstances; and 3) consistently applied — it applies to all sources of funds. The Grantor
reserves the right to review all business systems policies.
The Grantee shall manage funds according to applicable federal regulations for administrative
requirements, cost principles and audits
VI. DUNS/CCR
Each Grantee must provide the following prior to an Agreement being executed: (a) Dun and
Bradstreet Universal Numbering System (DUNS) number for the fiscal agent; and (b) proof of
current registration in the System for Award Management ("SAM"). SAM is the Official U.S.
Government system that consolidated the capabilities of Central Contractor Registration ("CCR"),
Fed Reg, ORCA and EPLS. SAM registration must be maintained for the term of the Agreement.
The DUNS website is located here.
VII. Reporting Requirements
In compliance with the CARES Act reporting requirements, the Grantee is required to provide the
following information:
a. the total amount of funding received from the AZCares Fund;
b. the amount of funding received that was expended or obligated for each project or
activity;
c. a detailed list of all projects or activities for which large covered funds were expended or
obligated, including—
i. the name of the project or activity;
ii. a description of the project or activity; and
iii. the estimated number of jobs created or retained by the project or activity,
where applicable; and
d. detailed information on any level of subcontracts or subgrants awarded by the covered
recipient or its subcontractors or subgrantees, to include the data elements required to
comply with the Federal Funding Accountability and Transparency Act (FFATA) of 2006
(31 U.S.C. 6101 note) allowing aggregate reporting on awards below $50,000 or to
individuals, as prescribed by the Director of the Office of Management and Budget.
Vill. Organizational Audit Requirements
Grantee agrees to comply with the organizational audit requirements of 2 CFR Part 200 Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and
further understands and agrees that funds may be withheld, or other related requirements may be
imposed, if outstanding audit issues (if any) from their organization's single audit are not
satisfactorily and promptly addressed. This CFR Title 2 Part 200 can be found online.
Single Audit: Grantee expending $750,000 or more of Federal funds from all sources during the
organization's fiscal year, must have an annual audit conducted in accordance with 2 CFR Part
200.
a. If your organization is subject to the requirements of 2 CFR Part 200, then attach one
copy of your organization's most recently completed Single Audit with the Management
Letter, Findings and Questioned Costs to the completed application.
b. If your organization is not subject to the requirements of 2 CFR Part 200, submit one copy
of the most recently completed audit of financial statements.
c. If your organization does not have a recently completed audit, attach one copy of the most
recently prepared financial statements including a Balance Sheet, Income Statement, and
Statement of Cash Flows along with a description of the source of the documents.
Page 3 of 8
IX. Unallowable Costs
All costs incurred prior to the project period start date and costs not consistent with the funding
opportunity solicitation are not allowable under this award.
X. Conflicts of Interest Policy
Grantee must establish written policies and procedures to prevent employees, consultants, and
others (including family, business, or other ties) involved in grant-supported activities, from
involvement in actual or perceived conflicts of interest. The policies and procedures must:
a. address conditions under which outside activities, relationships, or financial interests are
proper or improper;
b. provide for advance disclosure of outside activities, relationships, or financial interests to
a responsible organizational official;
c. include a process for notification and review by the responsible official of potential or
actual violations of the standards; and
d. specify the nature of penalties that may be imposed for violations.
XI. Acknowledgement of Federal Funding in Cornrnunications and Contracting
Grantee must acknowledge Federal funding when issuing statements, press releases, requests
for proposals, bid invitations, and other documents describing projects or programs funded in
whole or in part with Federal funds. Grantee is required to state: (1) the percentage and dollar
amounts of the total program or project costs financed with Federal funds; and (2) the percentage
and dollar amount of the total costs financed by nongovernmental sources.
XII. Mandatory Disclosures
Consistent with 45 CFR 75.113, Grantee must disclose in a timely manner, in writing, all
information related to violations of Federal criminal law involving fraud, bribery, or gratuity
violations potentially affecting the Federal award. Disclosures must be sent in writing to the
Grantor as stated in Section XVII.
Failure to make required disclosures can result in any of the remedies described in 45 CFR
75.371 remedies for noncompliance, including suspension or debarment (see 2 CFR parts 180 &
376 and 31 U.S.C. 3321).
XIII. Data Collection and Performance Measurement
Grantee must comply with the performance goals, milestones, and expected outcomes as
reflected in the funding opportunity solicitation and are required to submit data via the Grantor's
data-entry and reporting system, eCivis.
XIV. Ad Hoc Submissions
Throughout the award term, the Grantor may determine that additional information is required
beyond the standard deliverables.
XV. Applicable law
In accordance with A.R.S. § 41-2701, et seq., and Arizona Administrative Code, this
Agreement shall be governed and interpreted by the laws of the State of Arizona.
XVI. Documents incorporated by reference
The AZCares Fund Allocations and Certification Form are both incorporated into this
Agreement in its entirety. Grantee warrants that it has read and understands the AZCares
Fund Allocations and Certification Form and agrees to be bound by them in their entirety. In
the event of any divergence between this Agreement and the AZCares Fund Allocations
and Certification Form, this Agreement shall control.
Page 4 of 8
XVII. Payments
Grantee reimbursements are based only on expenditures approved in its Application budget
and budget narrative. A Grantee shall be reimbursed initially for actual public health and
safety payroll expenses and EREs for the time period of March 1, 2020 up to the Grantee's
application submission or the most recent pay period. If an allocation award balance exists,
then the Grantee will either include forecasted payroll expenses and EREs in its application
or submit further reimbursement request(s) of its actual public health and safety payroll
expenses and EREs until its allocation is fully expended. The Grantee will need to provide
its previous year's total actual expense(s) for that category(ies) to validate projection.
Overtime is not an eligible expense for reimbursement request(s) from the AZCares Fund.
For purposes of the AZCares Fund, Fire, Emergency Medical Services (EMS), 9-1-1, and
Sheriff/Police personnel are considered public safety. The Grantee shall use the forms
provided by the Grantor to submit reimbursement requests.
Per Federal guidance:
a. these public health and safety expenses do NOT need to be materially related to
the Coronavirus Disease 2019 (COVID-19) public health emergency.
b. these funds are designed to address unforeseen financial needs and risks created
by the COVID-19 public health emergency. For this reason, and as a matter of
administrative convenience in light of the emergency nature of this program, the
Grantee may presume that payroll costs for public health and public safety
employees are payments for services substantially dedicated to mitigating or
responding to the COVID-19 public health emergency.
Grantee must:
a. register for the U.S. Department of Homeland Security, Federal Emergency
Management Agency's (FEMA's) Public Assistance (PA) Grant Program via the
Arizona Department of Emergency and Military Affairs (DEMA) portal.
b. submit an application for FEMA PA Grant Program to be verified by DEMA to
successfully complete, maintain compliance, and closeout the Public Health and
Safety Stabilization Program.
c. enroll in automatic clearing house (ACH) payments. Grantee must complete the
document titled "State of Arizona Substitute W-9 and ACH Vendor Authorization
Forms & Instructions." Vendor account set-up and payment information can be
found here.
Notwithstanding any other payment provision of this Agreement, failure of the Grantee to
submit required reports when due, or failure to perform or deliver required work, supplies, or
services, will result in the withholding of payment under this Agreement unless such failure
arises due to causes beyond the control and without the fault or negligence of the Grantee.
XVIII. Notification of Program Changes
Grantee agrees to notify the Grantor in writing, thirty (30) calendar days in advance, of any
changes in the program that will directly affect service delivery under the terms of the
Agreement. No changes shall be implemented without the prior written approval of a formal
Agreement Amendment issued by the Grantor
XIX. Relationship of Parties
The individuals performing work on behalf of Grantee, its subgrantees or its subcontractors
are not employees, servants, agents, partners, or joint venturers of the Grantor. The State
Page 5 of 8
of Arizona and the Grantor retains no control or direction over such individuals or over the
detail, manner, or methods of performance of their services, and they do not have the
authority to supervise or control their work. The individuals performing work on behalf of the
Grantee, its subgrantees or its subcontractors are not entitled to receive benefits that
employees of the State of Arizona are entitled to receive, including but not limited to,
workers' compensation, unemployment compensation, health, vision, or dental insurance,
retirement benefits, annual leave, and holiday pay.
XX. Other
a. Grantee shall follow all applicable laws, rules, and regulations in the performance of
work in furtherance of the solicitation, application, and award.
b. In accordance with ARS § 35-154, every payment obligation of the Grantor under this
Agreement is conditioned upon the availability of funds appropriated or allocated for
payment of such obligation. If funds are not allocated and available for the continuance
of this Agreement, this Agreement may be terminated by the Grantor at the end of the
period for which funds are available. No liability shall accrue to the Grantor in the event
this provision is exercised, and the State shall not be obligated or liable for any future
payments or for any damages as a result of termination under this paragraph.
c. In accordance with A.R.S. § 35-214, the Grantee shall retain all data, books, and other
records ("records") relating to this Agreement for a period of five years from the last
financial report submitted to the Grantor. All such documents shall be subject to
inspection and audit at reasonable times, including such records of any subgrantee,
contractor, or subcontractor. Upon request, the Grantee shall produce the original of any
or all such records to the offices of the Grantor.
d. The Parties warrant that they are in compliance with A.R.S. § 41-4401 and further
acknowledge that:
i. Any contractor or subcontractor who is contracted by a Party to perform work
related to this Agreement shall warrant its compliance with all federal immigration
laws and regulations that relate to its employees and its compliance with A.R.S.
§ 23-214(A);
ii. That any breach of the warranty in paragraph "b." above shall be deemed a
material breach of this Agreement that is subject to penalties up to and including
termination of this Agreement;
iii. The Parties retain the legal right to inspect the employment records of any
employee of any contractor or subcontractor who performs work related to this
Agreement to ensure that the contractor or subcontractor is complying with the
warranty in paragraph "b." above and that the contractor agrees to make all
employment records of said employee available during normal working hours to
facilitate such an inspection; and
iv. Nothing in this Agreement shall make any contractor or subcontractor an agent
or employee of the Parties to this Agreement.
e. The Parties shall comply with the provisions of State Executive Order 2009-9, Title VI of
the Civil Rights Act of 1964, as amended, Section 504 of the Rehabilitation Act of 1973,
as amended, and the Americans with Disabilities Act, as amended.
f. This Agreement does not imply authority to perform any tasks or accept any
responsibility not expressly stated in this Agreement.
g. This Agreement does not create a duty or responsibility unless the intention to do so is
clearly and unambiguously stated in this Agreement. This Agreement shall not relieve
the Parties of any obligation or responsibility imposed on it by law.
h. This Agreement contains the entire agreement of the Parties with respect to its subject
matter and supersedes all prior and contemporaneous agreements, understandings,
and inducements, whether express or implied, oral or written.
Page 6 of 8
i. Any change, modification, or extension of this Agreement must be submitted through the
Grantor's online grant management system, eCivis, and approved by Grantor.
j. This Agreement has been arrived at by negotiation and shall not be construed for or
against any Party.
k. The Parties agree that all the conditions set forth herein are material to this Agreement
and a breach of any condition is a breach of this Agreement.
I. The failure of either Party to insist in any one or more instances upon the full and
complete performance of any of the terms and provisions of this Agreement to be
performed by the other Party or to take any action permitted by this Agreement shall not
be construed as a waiver or relinquishment of the right to insist upon full and complete
performance of the same or any other covenant or condition either in the past or in the
future. The acceptance by either Party of sums less than may be due and owing at any
time shall not be construed as an accord and satisfaction.
m. The substantive laws of Arizona (without reference to any choice of law principles) shall
govern the interpretation, validity, performance and enforcement of this Agreement. The
Parties further agree to cooperate in all ways reasonable and necessary to comply with
the applicable statutes, including amending this Agreement as needed in the future and
making any refunds or payments that might be required to bring the Parties into full
compliance with applicable law.
n. Nothing in this Agreement is intended to create any third-party beneficiary rights; and
the Grantor and the Grantee expressly state that this Agreement does not create any
third-party rights of enforcement.
o. This Agreement may be executed in any number of counterparts, all such counterparts
shall be deemed to constitute one and the same instrument, and each of said
counterparts shall be deemed an original hereof.
p. If the last day of any time stated herein shall fall on a Saturday, Sunday, or legal holiday
in the State of Arizona, then the duration of such time shall be extended so that it shall
end on the next succeeding day which is not a Saturday, Sunday, or legal holiday.
q. Except as expressly provided herein, no Party may delegate or assign its rights or
responsibilities under this Agreement without prior written approval of the other Party
and any purported assignment or delegation in violation of this provision shall be void.
r. The Parties to this Agreement agree to resolve all disputes arising out of or relating to
this Agreement through arbitration, after exhausting applicable administrative review, to
the extent required by A.R.S. § 12-1518, except as may be required by other applicable
statutes.
s. If any provision of this Agreement is held invalid, the remainder of the Agreement shall
not be affected thereby and all other parts of this Agreement shall be in full force and
effect.
t. Any deviation or failure to comply with the purpose and/or conditions of this Agreement
without prior approval may constitute sufficient reason for the Grantor to terminate this
Agreement, revoke the grant, require the return of all unspent funds, perform an audit of
expended funds, and require the return of any previously spent funds which are deemed
to have been spent in violation of the purpose or conditions of this grant.
u. The Parties acknowledge they have been advised by counsel, or have had the
opportunity to be advised by counsel, in the execution of the Agreement.
Page 7 of 8
IN WITNESS WHEREOF, the Parties have made and executed the Agreement the day and year first
above written.
FOR GRANTEE:
Authorized Signat Date
Printed Name and Title
Additional signature(s) if required by political subdivision Date
Printed Name and Title Date
Attest:
Clerk Date
Note: If applicable, the Agreement must be approved by the appropriate county supervisory board or
municipal council and appropriate local counsel (i.e. county or city attorney). Furthermore, if applicable,
resolutions and meeting minutes must be forwarded to the Governor's Office with the signed Agreement.
Approved as to form and authority to enter into Agreement(Excluding non-profits):
'7-6 20
Legal counsel for Grantee Date
Printed Name and Title
Statutory or other legal authority to enter into Agreement(Excluding non-profits):
VS CPWES Flcr F- ems. -nTLC- 2-Co
Appropriate A.R.S., ordinance, or charter reference
FOR GOVERNOR'S OFFICE:
Matthew Gress, Director Date
State of Arizona
Governor's Office of Strategic Planning and Budgeting
Page 8 of 8
AZCARES Fund Update -
Small Business Assistance
Grant Program
July 14, 2020
Apache Junction Allocation - Review
• $4.8 million — reimbursement based on salary and benefit
costs of public safety personnel .
• Meetings to discuss potential uses of funds
• June 2
• June 15
• July 6
Examples from Cities/Towns/Counties
3 . Community Investment
• Business Assistance With particular interest
• Utility Assistance in developing a grant
• Non Profit Assistance assistance program for
business, July 14rn
• Homelessness assistance Special Meeting called
• Food assistance
• 15%-20% of total funding
Apache Junction Small Business Assistance
Grant Program
• Reviewed existing programs
• Discussed eligible expenses
• Discussed program administration options
• Based on discussion and guidance July 6tn :
• Resolution 20-23 with recommended program
Apache Junction Small Business Assistance
Grant Program
• Percentage of $4,887,430 to focus on small business
• 25% ($ 1, 221,857.50)
• Maximum reimbursement per business $ 10,000
• Up to four months rent
• Up to four months utilities (water, electric, Internet, gas,
sewer)
• PPE or required modification expenses ( up to $750)
Apache Junction Small Business Assistance
Grant Program
• Criteria
• For-profit ( no non-profit)
• Commercially zoned place of business within Apache
Junction jurisdiction ( no home-based )
• Valid AJ business license (as of March 15t, current) still in
business
• No company-owned franchises
• Impacted negatively in sales/income by at least 25%
due to COVID
Apache Junction Small Business Assistance
Grant Program
• Program timeframe July 21 — August 25
• First come, first served
• Open five weeks or until funding is exhausted
• Application and supporting documentation required for
reimbursement of qualifying expenses
• Few business support docs (W-9, business license, etc. )
• List of ineligible businesses ( modeled after existing
programs)
Apache Junction Small Business Assistance
Grant Program
• Process to apply
• Application online and at City Hall
• City Manager appointed staff review committee
• Goal of 10 calendar day turnaround
• Appeal process through City Manager
• Once launched, will provide you with weekly updates
Discussion /Questions
AZCARES Fund Update
June 15, 2020
Apache Junction Allocation - Review
• $4.8 million — reimbursement based on salary and benefit
costs of public safety personnel .
• Reimbursement fulfills the Fed . requirements for funding.
• The required application submitted on June 30, 2020.
• We do not have the funds yet.
Apache Junction Allocation - Review
• Discourage thinking of these funds as blank check.
• Recommend taking a slow and cautious fiscal approach .
• Many cities and towns are delaying action until August
or later.
Examples from Cities/Towns/Counties
1. Reserve for Vital Services
• Estimated Revenue Loss
• Rainy day Fund and "Future Needs"
• As much as 50% or more of funding
Examples from Cities/Towns/Counties
2. City Operations
• Public Safety needs
• Emergency Operations needs
• PPE, sanitation, testing
• Facility retrofit, telework
• 25% or more of funding
Examples from Cities/Towns/Counties
3 . Community Investment
• Business Assistance
• Utility Assistance
• Non Profit Assistance
• Homelessness assistance
• Food assistance
• 15%-20% of Total Funding
The Case for Reserves
• The impact on the economy was swift and dramatic.
• History has shown recovery is slow.
• There are many unknowns about the impact on revenue.
• The pandemic continues to spread in Arizona .
• Fiscal stewardship and maintenance of vital services (like public
safety) for residents, businesses, and visitors is priority.
• State is showing dramatic decrease and impacts the budget
directly.
• Historic impact on local collections haven't been as dramatic as
the state, but have been and will likely be severe.
• Unknown impact on winter visitors & winter revenue.
City O
• Examples of Police facilities and vital equipment needs.
• Dispatch Remodel - $219,000 GF, $125,000 Other Funds
• Radios at end of life - High Cost
• $8,000 per radio
• 3 radios need replacement
• COPS grant
• Grant Award spells out higher required amounts required by city.
• Only cover up to $1 million for 8 officers.
• City required match is $1.4 million.
• Still feel strongly we need to accept this grant.
• Other equipment that has gone unfunded in years past.
• Example: Protective (riot) gear
• Overtime is likely to go up as spread continues.
City Operational Needs
• Examples of other facilities and equipment needs.
• Emergency Management
• Generator at city hall to maintain connection between City owned
facilities.
• $39,000 prep work & $45,000 for generator
• Unknown costs related to facility retrofit and telework.
AZ Constitution Gift Clause Question
Can cities establish a small business assistance
program with AZCares monies without violating
the Constitutional provision referred to as the
"gift clause ?"
AZ Constitution Gift Clause - Cont 'd
What is the Gift Clause? Ariz. Const. Art. 9, § 7
• "Neither the state, nor any county, city, town,
municipality, or other subdivision of the state shall
eve r. . . make any donation or grant, by subsidy or
otherwise, to any individual, association, or
corporation ..."
• Full text:
https://www.azleg.Gov/viewDocument/?docName=http://www.azleg.gov/const/9/7.htm
AZ Constitution Gift Clause - Cont 'd
The Gift Clause purpose is to "prevent government
bodies from depleting the public treasury by giving
advantages to special interests or by engaging in
nonpublic enterprises." See Wistuber v. Paradise Valley
Unified School District, 141 Ariz. 346, 349 ( 1984) .
AZ Constitution Gift Clause - Cont 'd
- A government expenditure will be upheld if: 1) it has a public purpose; and 2)
the consideration (a bargained for exchange) the government entity receives "is
not grossly disproportionate to the amounts paid to the private entity." See
Cheatham v. DiCiccio, 240 Ariz. 314, 318 (2016) citing Turken v. Gordon, 223
Ariz. 342 (2010).
- Further, indirect benefits (such as additional sales tax revenues or increased
jobs) cannot be considered for purposes of determining the adequacy of
consideration; only benefits that are bargained for by the parties and that the
private party promises to provide constitute consideration. Id.
AZ Constitution Gift Clause - Cont 'd
• Courts must not be overly technical; they shall give
appropriate deference to the findings of elected
officials and a public purpose will only be found lacking
where the governing body's discretion has been
unquestionably abused . Id.
AZ Constitution Gift Clause - Cont 'd
• Governor and Attorney General (AG) both declined to give an
opinion due to potential conflict of interest related SB1487
investigations.
• SB 1487 - Signed into law April 2016.
• Requires the AG to investigate alleged violations of state
statute or the Arizona Constitution by a county, city or
town. Violations can result in the withholding of state shared
revenues.
• League of Cities have recommended that Cities and Towns
consult with their legal counsel to determine legality and
risk.
Business Assistance Examples
• Federal Coronavirus Relief Funds
• Direct s — Phx., Tuc., Mesa, Mar. & Pima Counties
• Prioritized needs, COVID impact
• Rough approximation of 20% for small business
• Still uncertain as to success - may depend on criteria,
exceptions, eligible expenses, etc.
• Mandate to spend by December 30
Business Assistance — Contd
• AZCARES Fund
• Through state to municipalities
• Individual municipalities have been slower to
act
• Deployed programs
• Unique plans for program administration
• Unique allocations, requirements
Business Assistance — Contd
• Pinal County
• $ 15,000 per business max ( no specific cap set,
estimating 500 businesses)
• Rent, utilities (3 months)
• Very low barrier to access funding
• City of Maricopa
• $ non-specific, submit need
• Rent (3 months), PPE & cleaning equipment
• Council determine awards, follow up doc, clawback
Non - Profit Assistance
• Access to funds
• Depends on the program
• Separate category from for-profit business
Non - Profit Assistance
• Pinal County Community Development Block Grant
(CDBG ) Coronovirus funding
• Prevent, prepare for, and respond to the pandemic
• Four Apache Junction non-profits applied and are
set to receive from $ 10 — 25k
Non - Profit Assistance — Contd
• Four Pinal County agencies that serve AJ & requires
equal distribution of funds to AJ are set to receive
from $ 10 — 80k
• Any non-profit was eligible to apply for CDBG-CV
funds
• Application period opened June 22 & closed July 5
Next Steps
• Get the funds in our coffers .
• Continue to monitor pandemic.
• Continue to monitor impacts on local and state economy.
• Continue to research gift clause issue.
• Continue to research program options.
• Bring back to August 3rd city council work session .
Discussion /Questions
AZCARES Fund Update
June 15, 2020
Apache Junction Allocation
• $4.8 million — reimbursement based on salary and benefit costs of sworn
personnel.
• Reimbursement fulfills the Fed. requirements for funding.
• The required application will be submitted soon.
• We do not have the funds yet.
• League of cities working on getting clarification on uses.
• Recommend take a cautious fiscal approach for possible revenue reduction.
Common question :
"Is it true AZCares money can only be used for public
safety expenses?"
No. Once you have completed the process set forth
by the Governor's Office, freed up funds can be used
in the manner the council sees fit.
Common question :
There are some gift clause concerns now that the freed up
money is effectively general fund dollars. Has the League
heard back from the Attorney General's Office on this issue?
Unfortunately, the Attorney General's Office has told us
they will not weigh in on this issue and see it as a conflict
of interest. The AG's office, in an abundance of caution,
wanted to review state statute and provide further
direction but ultimately came back indicated they would
not be able to provide insight.
C , A ,, R ,, S . ACT
(CORONAVIRUS AID, �s
RELIEF, AND ECONOMIC
SECURITY ACT)
JUNE 1 ST, 2020
Federal CARES Act
Purpose: To assist local governments to cover costs directly and
indirectly incurred due to impacts of COVID-19 pandemic.
Direct Impact Examples Secondary Impact Examples
: Medical Needs : Unemployment and
4: Public Health Needs associated impacts
: Public Safety Payroll � Business Closures and
expenses associated impacts
2
AZ Cares Fund
Fund information and requirements:
.• Local jurisdictions may receive a direct allocation from the
AZCares Fund for public safety employee (police, fire, EMS, 911 )
salary and benefit costs incurred between March 1 , 2020 and
December 30, 2020.
❖ Each jurisdiction has a specific dollar allocation based on
population .
❖ Apache Junction's - $4.8 million
e• The local jurisdiction must submit actual and estimated costs to
state grant system to receive funds.
Q
AZ Cares Fund
Fund information and requirements:
Public safety payroll costs are the qualifying
mechanism , required by the State, to get funds
reimbursed to the local jurisdictions.
"Once the local jurisdiction has reimbursed the
previously incurred public health and public safety cost,
they are free to deploy the local resources to any
purpose decided upon by that jurisdiction ."
-Statement from Governor's Staff
Q
" Maximizing Flexibility, Minimizing Red Tape ,
Getting Needed Relief Funds to Local
Communities Faster. "
-Governor Ducey
COVID =19 Local Impacts
Public Safety Business Residents City
•:• Essential ❖ Closures Unemployment :• Essential
Services .;. Workforce •:• Financial Services
PPE ❖ Health-Safety Emergency :• Remote Work
•:• Hazardous Modifications :• Mortgage/Rent ❖ Revenue &
•:• Utilities Budgetary
Impacts
.. Food
.• Etc.
6
Nearby Communities
City/Local Government Economic/Business Assistance
e• Public Safety •:• Loans, Grants & Technical Assist.
e• Healthy Buildings •:• Infrastructure/Cap. investment
e• Technology/Infrastructure for projects that impact jobs
upgrades for remote work "Healthy Buildings"
Public Assistance •:• Installation and Technical
e• Utility Payments assistance for:
e• Rental/Mortgage Payments Barriers
e• Food Distribution Hands free improvements
e• Homelessness Services Sanitizing Stations
❖ Nonprofits