HomeMy WebLinkAbout2021.05.17 Council Meeting Packet
AGENDA
City Council Regular Meeting
7:00 PM - Monday, May 17, 2021
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1. MEETING INSTRUCTIONS for REMOTE ACCESS - Governor Inslee's
Heathy Washington - Roadmap to Recovery, Phases 2 & 3 made in response
to the COVID-19 emergency, currently allows for partial "in-person" meetings.
Members of the public wishing to attend City Council meetings in-person will
need to follow the Governor's protocol outlined in Proclamation No. 20-28.15.
Individuals, who would like to provide public comment remotely, may continue
to do so by filling out the online form via the City’s website (www.pasco-
wa.gov/publiccomment) to obtain access information to comment. Requests
to comment in meetings must be received by 4:00 p.m. on the day of each
meeting.
To listen to the meeting via phone, call (562) 247-8422 and use access code
465-398-545.
City Council meetings are broadcast live on PSC-TV Channel 191 on
Charter/Spectrum Cable in Pasco and Richland and streamed at www.pasco-
wa.gov/psctvlive and on the City’s Facebook page at
www.facebook.com/cityofPasco.
2. CALL TO ORDER
3. ROLL CALL
(a) Pledge of Allegiance
4. CONSENT AGENDA - All items listed under the Consent Agenda are
considered to be routine by the City Council and will be enacted by roll call
vote as one motion (in the form listed below). There will be no separate
discussion of these items. If further discussion is desired by Council members
or the public, the item may be removed from the Consent Agenda to the
Regular Agenda and considered separately.
6 - 15 (a) Approval of Meeting Minutes
Page 1 of 262
To approve the minutes of the Pasco City Council Meeting held on May
3, 2021 and Workshop held on May 10, 2021.
16 - 18 (b) Bills and Communications
To approve claims in the total amount of $4,491,754.30 ($3,385,629.14
in Check Nos. 241548-241822; $236,029.22 in Electronic Transfer
Nos. 831909, 831914, 831974-831976; $9,384.01 in Check Nos.
53584-53593; $860,711.93 in Electronic Transfer Nos. 30160864 -
30161376).
To approve bad debt write-off for Utility Billing, Ambulance, Cemetery,
General Accounts, Miscellaneous Accounts, and Municipal Court (non -
criminal, criminal, and parking) accounts receivable in the total amount
of $198,235.07 and, of that amount, authorize $0.00 to be turned over
for collection.
19 - 25 (c) Ordinance - PMC Amendment: Lots without Public Street
Frontage (MF# CA2021-005)
To adopt Ordinance No. 4536, relating to Lots without Public Street
Frontage and amending Section 21.10.060 "Lots without Public Street
Frontage" of the Pasco Municipal Code, and further, authorize
publication by summary only.
26 - 43 (d) Resolution - Professional Service Agreement (PSA) Amendment
No. 3 with Murraysmith for Construction Support Services for
Wastewater Treatment Plant (WWTP) Phase 1
To approve Resolution No. 4058, authorizing the City Manager to
execute Amendment No. 3 for the Professio nal Services Agreement
(PSA) with Murraysmith, for the Construction Support Services for the
Wastewater Treatment Plant (WWTP) Improvements - Phase 1
project.
44 - 72 (e) *Resolution - Modifying the Scope of Work in the Professional
Services Agreement with Columbia Safety LLC to Include COVID-
19 Vaccination Sites
To approve Resolution No. 4059, modifying the Scope of Work in the
Professional Services Agreement with Columbia Safety, LLC for the
COVID-19 vaccination sites.
(RC) MOTION: I move to approve the Consent Agenda as read.
5. PROCLAMATIONS AND ACKNOWLEDGEMENTS
(a) Special Recognition - Pasco High Student, Brisa Hernandez,
Recipient of AWC Center for Quality Communities Scholarship
Page 2 of 262
73 - 75 (b) Presentation of Proclamation for Public Works Week
Mayor Martinez will present the proclamation to Dave Deschane,
Heavy Equipment Operator on behalf of the City Council.
6. VISITORS - OTHER THAN AGENDA ITEMS - This item is provided to allow
citizens the opportunity to bring items to the attention of the City Council or to
express an opinion on an issue. Its purpose is n ot to provide a venue for
debate or for the posing of questions with the expectation of an immediate
response. Some questions require consideration by Council over time and
after a deliberative process with input from a number of different sources;
some questions are best directed to staff members who have access to
specific information. Citizen comments will normally be limited to three
minutes each by the Mayor. Those with lengthy messages are invited to
summarize their comments and/or submit written info rmation for
consideration by the Council outside of formal meetings.
7. REPORTS FROM COMMITTEES AND/OR OFFICERS
(a) Verbal Reports from Councilmembers
8. HEARINGS AND COUNCIL ACTION ON ORDINANCES AND
RESOLUTIONS RELATING THERETO
9. ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS
76 - 81 (a) *Resolution - Segregation of Local Improvement District (LID)
Assessment
MOTION: I move to approve Resolution No. 4060, relating to Local
Improvement District No. 150; providing for the segregation of
assessments for certain parcels consistent with RCW 35.44.410; and,
ratifying and confirming prior acts.
82 - 89 (b) *Resolution - Sole Source Approval - PALL Filters and Associated
Equipment for West Pasco Water Treatment Plant (WPWTP)
MOTION: I move to approve Resolution No. 4061, waiving the
competitive bidding requirements and approving the purchase of PALL
Membrane-Filtration Quad-Racks (PALL Rack) from PALL Water (a
division of PALL Corporation) for the West Pasco Municipal Water
Treatment Plant (WPWTP).
90 - 94 (c) *Resolution - Bid Award for WWTP Phase 1 (Rebid)
MOTION: I move to approve Resolution No. 4062, awarding Bid No.
19072 for the Wastewater Treatment Plant (WWTP) Improvements
Phase 1 project, to Clearwater Construction & Management of
Spokane, Washington in the amount of $17,937,787.80, including
Washington State Sales Tax and further authorize the City Manager to
Page 3 of 262
execute the contract documents and allowing all necessary budget
adjustments.
95 - 256 (d) *Resolution - Acceptance of American Rescue Plan Act
MOTION: I move to approve Resolution No. 4063, accepting City of
Pasco's allocation from the American Rescue Plan Act of 2021 funding
for CoronavirusRelief funds for local government and authorizing the
City Manager, or his designee, authority to legally bind the City of
Pasco, Washington for the sole purpose of requesting Federal
Reimbursement.
10. UNFINISHED BUSINESS
11. NEW BUSINESS
12. MISCELLANEOUS DISCUSSION
13. EXECUTIVE SESSION
14. ADJOURNMENT
15. ADDITIONAL NOTES
(a) (RC) Roll Call Vote Required
* Item not previously discussed
Q Quasi-Judicial Matter
MF# “Master File #....”
257 - 262 (b) Adopted 2020-2021 Council Goals (Reference Only)
(c) REMINDERS
• Monday, May 17, 6:00 PM: LEOFF Disability Board – City
Hall Conference Room 1, Pasco City Hall (MAYOR SAUL
MARTINEZ, Rep.; MAYOR PRO TEM BLANCHE BARAJAS,
Alt.)
• Friday, May 21, 10:00AM: Benton-Franklin Council of
Governments (ALVARADO, Rep.; BARAJAS, Alt.)
• Monday, May 24, 4:00PM: Hanford Area Economic
Investment Fund Committee Meeting (SERRANO, Rep.)
• Tuesday, May 25, 4:00PM: Pasco Public Facilities District -
City Hall Council Chambers (MALONEY, Rep.; MILNE, Alt.)
This meeting is broadcast live on PSC-TV Channel 191 on
Charter/Spectrum Cable in Pasco and Richland and streamed at
www.pasco-wa.gov/psctvlive.
Page 4 of 262
Audio equipment available for the hearing impaired; contact the
Clerk for assistance.
Servicio de intérprete puede estar disponible con aviso. Por favor
avisa la Secretaria Municipal dos días antes para garantizar la
disponibilidad. (Spanish language interpreter service may be
provided upon request. Please provide two business day's notice
to the City Clerk to ensure availability.)
Page 5 of 262
AGENDA REPORT
FOR: City Council May 12, 2021
TO: Dave Zabell, City Manager City Council Regular
Meeting: 5/17/21
FROM: Debby Barham, City Clerk
Administrative & Community Services
SUBJECT: Approval of Meeting Minutes
I. REFERENCE(S):
5.3.21 & 5.10.21 Draft Council Minutes
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
To approve the minutes of the Pasco City Council Meeting held on May 3, 2021
and Workshop held on May 10, 2021.
III. FISCAL IMPACT:
None
IV. HISTORY AND FACTS BRIEF:
V. DISCUSSION:
Page 6 of 262
MINUTES
City Council Regular Meeting
7:00 PM - Monday, May 3, 2021
GoToWebinar
MEETING INSTRUCTIONS FOR REMOTE ACCESS
Governor Inslee's Heathy Washington - Roadmap to Recovery, Phase 3, made
in response to the COVID-19 emergency, currently allows for partial "in-person"
meetings. Members of the public wishing to attend City Council meetings in -
person will need to follow the Governor's protocol outlined in Proclamation No.
20-28.15. As of 4:00 PM one (1) request to comment via GoToWebinar was
received.
CALL TO ORDER
The meeting was called to order at 7:00 PM by Saul Martinez, Mayor.
ROLL CALL
Councilmembers present: Ruben Alvarado, Blanche Barajas, Craig
Maloney, Saul Martinez, David Milne, Zahra Roach, and Pete Serrano.
Staff present: Dave Zabell, City Manager; Adam Lincoln, Deputy City
Manager; Colleen Chapin, Human Resources Director; Craig Briggs,
Acting City Attorney; Bob Gear, Fire Chief; Zach Ratkai, Administrative &
Community Services Director; Ken Roske, Police Chief; Richa Sigdel,
Finance Director; Rick White, Community & Economic Development
Director; Steve Worley, Public Works Director; and Debby Barham, City
Clerk.
The meeting was opened with the Pledge of Allegiance.
CONSENT AGENDA
Approval of Meeting Minutes
To approve the minutes of the Pasco City Council remote Meeting held
on April 19, 2021 and remote Workshop held on April 26, 2021.
Page 1 of 5Page 7 of 262
Bills and Communications
To approve claims in the total amount of $4,191,506.44 ($2,463,176.34
in Check Nos. 241276-241547; $877,034.31 in Electronic Transfer Nos.
831505-831517, 831519-831564, 831577-831637, 831640-831675,
831680-831720, 831722-831773, 831779-831799, 831801-831807,
831811-831826, 831828-831831, 831833-831837, 831876; $5,710.36 in
Check Nos. 53578-53583; $845,585.43 in Electronic Transfer Nos.
30160357-30160863).
Ordinance - PMC Chronic Nuisance Updates
To adopt Ordinance No. 4532, creating a new Chapter 1.02, "Duty of
Enforcement," and amending Chapter 9.95 "Chronic Nuisances," in the
Pasco Municipal Code related to Code Enforcement and, further,
authorize publication by summary only.
Ordinances - Northwest Sewer ULID - Interim Financing and Budget
Adjustment
To adopt Ordinance No. 4533, relating to Local Improvement District No.
151; converting LID No. 151 into a utility local improvement district;
authorizing the issuance of a subordinate lien water and sewer revenue
bond anticipation note (utility local improvement district) to provide interim
financing necessary to pay costs of constructing the Northwest Area
sewer trunk line, pending the issuance of water and sewer revenue bonds
(utility local improvement district) authorized pursuant to Ordinance No.
4483; fixing the terms of the note; providing for the purchase of the note
by the City from funds on deposit in the City’s General Fund; and
providing for related matters, and further, authorize publication by
summary only.
To adopt Ordinance No. 4534, amending the 2021 -2022 biennial
operating budget (Ordinance No. 4503) of the City of Pasco, Washington,
by providing supplement thereto; to provide additional appropriation in the
City’s General and Utility Fund for the interim financing of Utility Local
Improvement District No. 151, and further, authorize publication by
summary only.
(RC) MOTION: Mayor Pro Tem Barajas moved to approve the Consent
Agenda as read. Mr. Milne seconded. Motion carried by unanimous Roll
Call vote.
Page 2 of 5Page 8 of 262
PROCLAMATIONS AND ACKNOWLEDGEMENTS
Proclaiming May 2021 "Asian American and Pacific Islander Month"
Mayor Martinez read the proclamation proclaiming May 2021 as, "Asian
American and Pacific Islander Month" in Pasco, Washington and then
introduced Senior Policy Analysis Pashon.
Ms. Pashon introduced Dr. Yichien Cooper who provided a brief
presentation related to the Asian American and Pacific Islander month.
Mr. Scott Lehrman, Pasco, WA, expressed appreciation to Council for
proclaiming Asian American and Pacific Islander Month and commented
on the discrimination his grandparents endured in the lives.
VISITORS - OTHER THAN AGENDA ITEMS
Mr. Justin Carey, Pasco, WA, commented on Grace Kitchen, the three
levels of government - federal, state and municipal governments, and the
Planned Parenthood located in Pasco, WA.
REPORTS FROM COMMITTEES AND/OR OFFICERS
Verbal Reports from Councilmembers
Mr. Milne announced that he attended the opening of Pasco School
District's new Reynolds Middle School.
Ms. Barajas stated that she visited Grace Kitchen, a small, not-for-profit,
organization to empower women coming out of difficult situations as they
re-enter society and encouraged everyone to visit Grace Kitchen and
donate to its mission.
Mayor Martinez commented on a Spanish radio service announcement
he participated in encouraging individuals 16 and older to get their
COVID-19 vaccinations. He also noted a Department of Energy meeting
he recently attended.
General Fund Monthly Report - March 2021
Ms. Sigdel noted that there was nothing out of the ordinary in the General
Fund report and noted that additional information regarding the American
Recovery Act funding will be presented at next week's Council Workshop.
Page 3 of 5Page 9 of 262
ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS
Ordinance - Budget Amendment - 20 009 - Road 68 Widening South
of I-182
Ms. Sigdel provided a brief overview of the purpose of proposed budget
adjustment.
Council and staff held a brief question and answer period.
MOTION: Mayor Pro Tem Barajas moved to adopt Ordinance No. 4535,
amending the 2021-2022 Biennial Operation Budget of the City of Pasco,
Washington by providing supplement thereto; to provide additional grant
appropriation in the City's General Construction Fund for the construction
of Road 68 Widening South of I-182 and, further, authorize publication by
summary only. Mr. Maloney seconded. Motion carried unanimously.
Resolution - Professional Services Supplemental Agreement No. 3
with J-U-B Engineers, Inc. for Lewis Street Overpass Project
Mr. Worley explained the purpose of the amendment to the professional
services agreement for the Lewis Street Overpass Project.
MOTION: Mayor Pro Tem Barajas moved to approve Resolution No.
4056, authorizing the City Manager to execute S upplement No. 3 for the
Professional Services Agreement (PSA) with J-U-B ENGINEERS, Inc for
the Lewis Street Overpass project. Mr. Milne seconded. Motion carried
unanimously.
Resolution - Setting Public Hearing Date for Tverdokhleb Street
Vacation: Portion of Road 97 (VAC 2021-001)
Mr. White provided a brief history of the property seeking a street vacation
of a portion of Road 97.
MOTION: Mayor Pro Tem Barajas moved to approve Resolution No.
4057, setting 7:00 P.M., Monday, June 7, 2021, as the time and date to
conduct a public hearing to consider vacating a portion of Road 97. Mr.
Serrano seconded. Motion carried unanimously.
MISCELLANEOUS DISCUSSION
Mr. Zabell noted the good work of the Pasco Arts & Culture Commission
(PACC) in preparing the proclamation presented earlier in the meeting.
He also announced that the Pasco Public Facilities District (PPFD) Board
will be meeting May 4, 2021 at 4:00 PM and will review financial analysis
report for proposed PPFD project. Lastly, he noted the potential Healthy
Washington Phase 3 changed back to Phase 2.
Page 4 of 5Page 10 of 262
ADJOURNMENT
There being no further business, the meeting was adjourned at 7:50 PM.
PASSED and APPROVED this ____ day of ________________, 20__.
APPROVED: ATTEST:
Saul Martinez, Mayor Debra Barham, City Clerk
Page 5 of 5Page 11 of 262
MINUTES
City Council Workshop Meeting
7:00 PM - Monday, May 10, 2021
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CALL TO ORDER
The meeting was called to order at 7:00 PM by Saul Martinez, Mayor.
ROLL CALL
Councilmembers present: Ruben Alvarado, Blanche Barajas, Craig
Maloney, David Milne, Zahra Roach, and Pete Serrano.
Absent: Saul Martinez
Staff present: Dave Zabell, City Manager; Adam Lincoln, Deputy City
Manager; Colleen Chapin, Human Resources Director; Jeff Briggs, Acting
City Attorney; Bob Gear, Fire Chief; Zach Ratkai, Administrative &
Community Services Director; Ken Roske, Police Chief; Richa Sigdel,
Finance Director; Rick White, Community & Economic Development
Director; Steve Worley, Public Works Director; and Debby Barham, City
Clerk.
The meeting was opened with the Pledge of Allegiance.
VERBAL REPORTS FROM COUNCILMEMBERS
Mr. Maloney commented on the Pasco Public Facilities District Board
Meeting last week.
Mr. Alvarado commented on Ben Franklin Transit facilities upgrades
scheduled in Pasco.
ITEMS FOR DISCUSSION
2021-2022 Biennium Financial Update
Page 1 of 4Page 12 of 262
Ms. Sigdel provided a brief biennium budget financial report and provided
more detail for some of specific revenue sources.
Ordinance - PMC Amendment: Street Connectivity (MF# CA2019-
013)
Mr. White introduced Senior Planner Gonzalez who provided presentation
of the proposed amendment related to street connectivity within Title 21
of the Pasco Municipal Code.
Council and staff discussion ensued regarding the proposed updates to
PMC Title 21, "Pasco Urban Area Subdivision Regulations" related to
street connectivity and included:
• Relayed concerns expressed by the Home Builders Association of
the Tri-Cities
• Liability concerns related to future street planning, and confirming
legal review of the proposal and its impacts Identified the existing
traditional grid street system in Central Pasco and the shorter
block lengths near Pasco High School and Edgar Brown Stadium
• Travel behavior with additional intersections and potential safety
concerns and traffic calming options
• Planned Unit Developments (PUDs) and neighborhoods with
unique features and character and how the proposal may impact
them
• Unconnected roads that cause delays for fire and emergency
services response time
• The potential impacts the proposed PMC updates may have
related to affordable housing with a proposed reduction of
developable land
• Requested confirmation that the streetlights, crosswalks,
sidewalks to increase the safety of residents was included in the
updates
• Questioned how often staff meets with the Home Builders
Association and developers with staff noting there were several
public hearings where concerns and questions are best addressed
along with three specific meetings with the Home Builders
Association and Realtors
• Council may amend the City's policies and their 2021-2022 Goals
at any time as staff drafts updates to the PMC based on current
City's policies and Council goals
After the discussion concluded, staff will refine the proposed amendments
to the PMC for street connectivity based on the input from Council, as well
as from the area developers and realtors.
Staff may also provide recommendations to amend Council's goals and
policies based on the updated amendments and then return it to Council
for further discussion at another workshop.
Page 2 of 4Page 13 of 262
On a side note, Mr. Maloney requested that the staff presentation be
provided to Council prior to the scheduled meeting so that he can review
it beforehand.
Ordinance - PMC Amendment: Lots without Public Street Frontage
(MF# CA2021-005)
Senior Planner Gonzalez provided a brief presentation of the proposed
Pasco Municipal Code amendment related to lots without public street
frontage.
Proposed PMC Amendment: Duplex, Triplex and Courtyard
Apartments (MF# CA2020-001)
Mr. Gonzalez provided a brief history of the proposed Pasco Municipal
Code (PMC) amendment related to duplex, triplex and courtyard
apartments.
Council and staff further discussed the proposed amendments to the
PMC and included:
• Building heights in various residential zoning districts
• The status of the current Comprehensive Plan and Urban Growth
Area amendments
• Zoning density and how it relates to street connectivity
• The projections used in the case scenarios
• Support for "middle" housing in Pasco
• Special Permit process for Low Density Residential
• Communication is key to those who will be affected before
legislative policies are enacted
After the discussion concluded, staff will refine the proposed amendments
to the PMC for duplex, triplex and courtyard apartments based on the
input from Council and then return it to Council for further discussion at
another workshop.
Resolution - Professional Service Agreement (PSA) Amendment No.
3 with Murraysmith for Construction Support Services for
Wastewater Treatment Plant (WWTP) Phase 1
Mr. Worley provided a brief explanation of the purpose the proposed
amendment. He then introduced Capital Improvement Projects (CIP)
Manager Serra who provided further details of the proposed amendment.
Maloney asked about the rates and how they are only good until the end
of 2021 and how will the City address the change. Serrano agreed.
Page 3 of 4Page 14 of 262
Resolution - Against Bias Based Hate
Mr. Zabell introduced the discussion of the proposed resolution
addressing the Council's stance against bias-based hate within the City
of Pasco.
Councilmembers Alvarado, Maloney, Serrano, Roach and Barajas
provided recommendations to amend the draft resolution.
MISCELLANEOUS COUNCIL DISCUSSION
Mr. Serrano commented on the Memorial Day Celebration and the Fourth
of July Celebration and requested an update from staff.
Mr. Ratkai provided a brief status of the upcoming celebrations and stated
that a more detailed status report will be provided to Council by next week.
Mr. Zabell commented on the COVID-19 mobile site vaccinations within
the community. He announced the Lewis Street Groundbreaking
scheduled for June 4th at 11:00 AM. Lastly, he stated that the American
Recovery Act funding discussion was scheduled for the May 24th Council
Workshop.
EXECUTIVE SESSION
Council adjourned into Executive Session at 9:43 PM for approximately
20 minutes to establish the sales price or lease amount of real estate, per
RCW 42.30.110 (c) with the City Manager, Deputy City Manager, the City
Attorney and Administrative Services Director.
Mayor Pro Tem Barajas called the meeting back to order at 10:03 PM.
ADJOURNMENT
There being no further business, the meeting was adjourned at 10:03 PM.
PASSED and APPROVED this __ day of ________________, 20__.
APPROVED: ATTEST:
Saul Martinez, Mayor Debra Barham, City Clerk
Page 4 of 4Page 15 of 262
AGENDA REPORT
FOR: City Council May 13, 2021
TO: Dave Zabell, City Manager City Council Regular
Meeting: 5/17/21
FROM: Darcy Buckley, Financial Services
Manager
Finance
SUBJECT: Bills and Communications
I. REFERENCE(S):
Accounts Payable 05.17.21
Bad Debt Write-off/Collection - April 2021
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
To approve claims in the total amount of $4,491,754.30 ($3,385,629.14 in Check
Nos. 241548-241822; $236,029.22 in Electronic Transfer Nos. 831909, 831914,
831974-831976; 53584in Check $9,384.01 Nos. -in $860,711.93 53593;
Electronic Transfer Nos. 30160864-30161376).
To approve bad debt write-off for Utility Billing, Ambulance, Cemetery, General
Accounts, Miscellaneous Accounts, and Municipal Court (non-criminal, criminal,
and parking) accounts receivable in the total amount of $198,235.07 and, of that
amount, authorize $0.00 to be turned over for collection.
III. FISCAL IMPACT:
IV. HISTORY AND FACTS BRIEF:
V. DISCUSSION:
Page 16 of 262
REPORTING PERIOD:
May 17, 2021
Claims Bank Payroll Bank Gen'l Bank Electronic Bank Combined
Check Numbers 241548-241822 53584-53593
Total Check Amount $3,385,629.14 $9,384.01 Total Checks 3,395,013.15$
Electronic Transfer Numbers 831909 30160864-30161376
831914
831974-831976
Total EFT Amount $236,029.22 $860,711.93 $0.00 $0.00 Total EFTs 1,096,741.15$
Grand Total 4,491,754.30$
Councilmember
100 560,688.42
110 41,169.60
120 0.00
130 0.00
140 13,100.85
142 0.00
145 954.72
150 39,490.03
160 5,112.02
165 1,000.21
166 41,256.90
170 345.59
180 2,595.94
182 0.00
185 1,552.57
188 18,075.79
189 0.00
190 2,838.18
191 0.00
192 0.00
194 98,195.19
195 0.00
196 HOTEL/MOTEL EXCISE TAX 0.00
245 0.00
367 1,468,871.15
410 996,867.86
510 45,453.99
511 9,227.63
515 48,592.86
516 0.00
520 151,899.04
600 POOLED INVESTMENT 0.00
619 0.00
630 0.00
690 944,465.76
GRAND TOTAL ALL FUNDS:4,491,754.30$
The City Council
April 29 - May 12, 2021
C I T Y O F P A S C O
Council Meeting of:
Accounts Payable Approved
STREET OVERLAY
City of Pasco, Franklin County, Washington
We, the undersigned, do hereby certify under penalty of perjury the materials have been furnished, the services rendered or the labor performed as
described herein and the claim is a just, due and unpaid obligation against the city and we are authorized to authenticate and certify to such claim.
Dave Zabell, City Manager Darcy Buckley, Finance Manager
We, the undersigned City Councilmembers of the City Council of the City of Pasco, Franklin County, Washington, do hereby certify on this
17th day of May, 2021 that the merchandise or services hereinafter specified have been received and are approved for payment:
Councilmember
SUMMARY OF CLAIMS BY FUND:
GENERAL FUND
STREET
ARTERIAL STREET
RIVERSHORE TRAIL & MARINA MAIN
C.D. BLOCK GRANT
HOME CONSORTIUM GRANT
MARTIN LUTHER KING COMMUNITY CENTER
AMBULANCE SERVICE
CEMETERY
ATHLETIC PROGRAMS
GOLF COURSE
SENIOR CENTER OPERATING
MULTI-MODAL FACILITY
SCHOOL IMPACT FEES
EQUIPMENT RENTAL - OPERATING BUSINESS
SPECIAL ASSESSMENT LODGING
LITTER ABATEMENT
REVOLVING ABATEMENT
TRAC DEVELOPMENT & OPERATING
PARKS
ECONOMIC DEVELOPMENT
STADIUM/CONVENTION CENTER
LID
GENERAL CAP PROJECT CONSTRUCTION
UTILITY, WATER/SEWER
EQUIPMENT RENTAL - OPERATING GOVERNMENTAL
EQUIPMENT RENTAL - REPLACEMENT GOVERNMENTAL
EQUIPMENT RENTAL - REPLACEMENT BUSINESS
MEDICAL/DENTAL INSURANCE
OLD FIRE OPEB
FLEX
PAYROLL CLEARING
Page 17 of 262
BAD DEBT WRITE-OFF/COLLECTION
April 1, - April 30, 2021
1. UTILITY BILLING - These are all inactive accounts, 60 days or older. Direct write-off are
under $20 with no current forwarding address, or are accounts in "occupant" status. Accounts
submitted for collection exceed $20.00.
2. AMBULANCE - These are all delinquent accounts over 90 days past due or statements are
returned with no forwarding address. Those submitted for collection exceed $10.00. Direct
write off including DSHS and Medicare customers; the law requires that the City accept
assignment in these cases.
3. COURT ACCOUNTS RECEIVABLE - These are all delinquent non-criminal and criminal
fines, and parking violations over 30 days past due.
4. CODE ENFORCEMENT – LIENS - These are Code Enforcement violation penalties which
are either un-collectable or have been assigned for collections because the property owner has
not complied or paid the fine. There are still liens in place on these amounts which will
continue to be in effect until the property is brought into compliance and the debt associated
with these liens are paid.
5. CEMETERY - These are delinquent accounts over 120 days past due or statements are returned
with no forwarding address. Those submitted for collection exceed $10.00.
6. GENERAL - These are delinquent accounts over 120 days past due or statements are returned
with no forwarding address. Those submitted for collection exceed $10.00.
7. MISCELLANEOUS - These are delinquent accounts over 120 days past due or statements are
returned with no forwarding address. Those submitted for collection exceed $10.00.
Direct
Write-off
Referred to
Collection
Total
Write-off
Utility Billing $ 60.00 0.00 60.00
Ambulance $ 198,175.07 0.00 198,175.07
Court A/R $ .00 .00 .00
Code Enforcement $ .00 .00 .00
Cemetery $ .00 .00 .00
General $ .00 .00 .00
Miscellaneous $ .00 .00 .00
TOTAL: $ 198,235.07 .00 198,235.07
Page 18 of 262
AGENDA REPORT
FOR: City Council May 12, 2021
TO: Dave Zabell, City Manager City Council Regular
Meeting: 5/17/21
FROM: Rick White, Director
Community & Economic Development
SUBJECT: Ordinance - PMC Amendment: Lots without Public Street Frontage (MF#
CA2021-005)
I. REFERENCE(S):
Ordinance
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to adopt Ordinance No. _____, relating to Lots without Public
Street Frontage and amending Section 21.10.060 "Lots without Pu blic Street
Frontage" of the Pasco Municipal Code, and further, authorize publication by
summary only.
III. FISCAL IMPACT:
None.
IV. HISTORY AND FACTS BRIEF:
On July 1, 2019, the City Council adopted Ordinance No. 4444, creating a new
option that would allow for residential construction on lots (parcels) without public
street frontage. The City has seen an interest in the use of the Lots without Public
Frontage regulations, as it allows for development on lots with irregular shapes,
sizes, and surroundings. Council requested that staff provide an update on the
regulations demonstrating its use and application, along with any potential
refinements necessary to ensure consistency with its intent.
Staff considers the added option successful and has proposed minor
refinements to the Pasco Municipal Code (PMC) to add clarity for applicants and
ensures it is used as intended and consistent with the Comprehensive Plan and
City Council Goals.
References to the Comprehensive Plan (2018-2038) Goals and Policies.
Page 19 of 262
Land Use Policy LU-2-F
Discourage developments dependent on septic systems and at a density below
the minimum, to sustain urban levels of service
Land Use Policy LU-4-E
Encourage the orderly development of land by emphasizing connectivity and
efficiency of the transportation network
Housing Policy H-4-C
Increase housing supply and diversity through appropriate and flexible
development standards
Utilities Policy UT-1-A
Ensure that public water and sewer services are available concurrently with
development in the urban growth area
Capital Facilities Policy CF-2-A
Encourage growth in geographic areas where services and utilities can be
extended in an orderly, progressive, and efficient manner
Implementation Policy IM-1-A
Maintain codes, standards, and guidelines, which are clear, concise, and
objective
The Pasco Planning Commission hosted a workshop in March and a public
hearing in April of this year. The Planning Commission recommended the
proposed amendments to the City Council at their April 15, 2021 meeting. Staff
presented the Draft Ordinance before the Pasco City Council at the May 10,
2021 workshop.
V. DISCUSSION:
City Planning staff has consulted with the Pasco Fire Department, Public Works
Department, and Building/Engineering Divisions for the revisions below. Staff
has identified language that may provide added clarity for applicants.
Pavement and Easement Width Minimums
Staff is proposing to increase and combine the pavement/easement
requirements to 20 feet. The increase ensures that the shared access has
enough area for fire and emergency response. Staff notes that the two sites
using the shared frontage requirement so far have exceeded the minimums
established in the PMC. This revision would mitigate potential conflicts for future
proposals.
Page 20 of 262
Public Frontage Width
Staff proposes to remove the reference to minimum frontage as this is addressed
through the underlying residential zoning district development standards. The
current language is not necessary, and the proposal will eliminate future
conflicts.
Pavement Sections
The current regulations require pavement sections of the shared frontage access
to be approved by the Pasco Public Works and Fire Departments. This is not
needed, as all improvements within the public right -of-way or for private
development are specified in the City Design and Constructions Standards and
Specifications, which were adopted by the City Council on October 7, 2019.
Applicable Residential Zoning Districts
When the Ordinance No. 4444 was recommended for approval by the Planning
Commission and adopted by City Council, the intent was made that this option
was to be used to maximize land use efficiency and densities and only applicable
where lots had existing topographic, geographic, or challenging surroundings.
To ensure consistency with the original intent of that ordinance, and alignment
with Comprehensive Plan and Council Goals, the staff is proposing that the RS-
20 residential zoning district be removed as an option.
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Ordinance – Amending PMC – 21.20.060 - 1
ORDINANCE NO. __________
AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON,
AMENDING SECTION 21.20.060 “LOTS WITHOUT PUBLIC STREET
FRONTAGE.”
WHEREAS, the City, pursuant to PMC 21.05.020 has identified the benefits in regulating
the division of land within the Pasco Urban Growth Area to promote the health, safety,
convenience, comfort, urban infill, prosperity and general welfare of the present and future
residents of the Pasco Urban Growth Area; and
WHEREAS, the City has existing isolated residential lots where the width and depth
exceed the lot dimension standards of PMC 21.20.040; and
WHEREAS, the dedication of public street frontage on said lots can encourage sprawl by
preventing denser infill development of housing and the efficient use of land; and
WHEREAS, the City recognizes that providing a tool for development using flexible
design and development standards may assist in meeting the demand and need for housing for all
members of the community; and
WHEREAS, Housing Goal 4-C of the 2018-2038 Comprehensive Plan states the city shall
increase housing supply and diversity through appropriate and flexible development standards;
and
WHEREAS, Implementation Policy 1-A of the 2018-2038 Comprehensive Plan states the
city shall maintain city codes, standards and guidelines which are clear, concise and objective.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. That Section 21.20.060 entitled “Lots without public street frontage” of the
Pasco Municipal Code shall be and hereby is amended and shall read as follows:
21.20.060 Lots without public street frontage.
(1) Characteristics. Flag lot developments may be approved on a lot without full public street
frontage in which access is provided by an approved private driveway/access strip. Purpose. These
regulations are intended to implement comprehensive plan goals and policies encouraging infill
development, more efficient use of the remaining developable land, protection of environmentally
sensitive areas, and creating opportunities for more affordable housing.
(2) Restrictions and Standards. The City’s preferred standard for lot configuration is defined
in PMC 21.20.050. Creation of residential lots without public street frontage may be approved
only by meeting the criteria identified in subsections (2)(a) through (2)(n) of this section:
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Ordinance – Amending PMC – 21.20.060 - 2
Applicability. All applications proposing residential lots without public street frontage may be
approved only when each of the requirements identified below have been met. These conditions
are supplemental to any other requirements found in PMC Title 21. In the event of any conflict,
the conditions in this section shall apply.
(a) Allowed in residential zones where construction of a public street would prevent
the achievement of the minimum residential density of the underlying zone designation;All
applications shall include a site map depicting proposed lot layout, including the location
of existing structures on adjacent parcels, if any;
(b) Permitted only where, due to geometric, topographic, or other physical features in
proportion to the size of the development, it would be impractical to extend or build a
publicly dedicated street;
(c) Must be approved through subdivision process identified in this title;Lots without
public street frontage shall not be permitted within the RS-20 zoning district;
(d) There shall be no more than three adjoining lots created without public street
frontage;
(e) Emergency Access. When the furthest point of a proposed structure is greater than
150 feet in distance from the public right-of-way, as measured along an accessible route,
an approved fire vehicle turnaround with a minimum inside turning radius of 30’ is required
as defined by the International Fire Code;
(f) All corners shall have a minimum inside turning radius of 30’;
(gf) Parking. No parking is permitted along the access (shared driveway) portion of the
lot. The installation of no parking signage may shall be required as a condition of approval;
(hg) Utilities and Improvements. Fire hydrants shall be located to meet the requirements
of the International Fire Code. Extension of sanitary sewer, storm sewer, water or other
utility lines that result from the creation of lot(s) will be at the expense of the property
owners and subject to approval by the City Public Works, Building and Fire
Departments;All impacted and new utilities and improvements shall be constructed to the
standards identified in the Pasco Design and Construction Standards and Specifications;
(ih) Drainage and storm water shall meet the requirements of PMC 16.10.050;
(jg) Signage with addresses shall be posted on the public street side for all properties that
are adjacent to any private shared driveway or access. Signage shall comply with the
requirements of PMC Title 17. All addresses shall be displayed on the same pedestal unless
otherwise authorized.
(kj) Structural setbacks on lots without public street frontage shall conform to the
requirements of the applicable zone;
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Ordinance – Amending PMC – 21.20.060 - 3
(lk) The shared access must be located no closer than five feet to any existing structure;
(mk) Access, maintenance and utility easements necessary to accommodate and maintain
proposed driveway/shared access improvements and utilities shall be approved through the
subdivision process in this title and included on the face of the final plat;
(l) Pavement sections for nonpublic street frontage driveway improvements are
subject to approval by the Pasco Public Works and Fire Departments. Gravel lots will not
be permitted;
(nm) The shared driveway/access must be maintained by the homeowner’s association
or by the adjoining property owners. A maintenance agreement must be recorded prior to
the issuance of the certificate of occupancy and signage on the plat and must include
provisions for snow removal, garbage pickup and any other necessary provisions as
determined by the City; and
(on) Access shared/common driveways for lots without public street frontage shall abide
by the minimum frontage, pavement and easement widths shown in the table below: The
shared driveway/access shall have a minimum paved width of 20’.
Lot Configuration Minimum Lot
Frontage (Flag Width)
Minimum
Pavement Width
Minimum
Easement Width
Single-Family Detached; One Dwelling Unit per Lot
1 lot 12 10 14
2 lots with adjacent flags 8 (per lot) 15 19
3 lots with adjacent flags 8 (per lot) 20 24
Multiple Dwellings
Duplex on 1 lot (2 units
on 1 lot)
12 (per unit) 15 20
[Ord. 4444 § 2, 2019.]
Section 2. This ordinance shall take full force and effect five (5) days after approval,
passage and publication as required by law.
PASSED by the City Council of the City of Pasco, Washington, this 10th day of May, 2021.
_____________________________
Saul Martinez
Mayor
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Ordinance – Amending PMC – 21.20.060 - 4
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Debra Barham, CMC Kerr Ferguson Law, PLLC
City Clerk City Attorney
Published: _________________________
Page 25 of 262
AGENDA REPORT
FOR: City Council May 11, 2021
TO: Dave Zabell, City Manager City Council Regular
Meeting: 5/17/21
FROM: Steve Worley, Director
Public Works
SUBJECT: Resolution - Professional Service Agreement (PSA) Amendment No. 3
with Murraysmith for Construction Support Services for Wastewater
Treatment Plant (WWTP) Phase 1
I. REFERENCE(S):
Resolution
Amendment
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to approve Resolution No. ________, authorizing the City
Manager to execute Amendment No. 3 for the Professional Services Agreement
(PSA) the for Services Construction Support for Murraysmith, with the
Wastewater Treatment Plant (WWTP) Improvements - Phase 1 project.
III. FISCAL IMPACT:
Original Professional Services Agreement (PSA) $ 2,321,567.00
Amendment No. 1: No Change
Amendment No. 2: $ 150,000.00
Amendment No. 3: (proposed) $ 714,146.00
New PSA Total: $ 3,185,713.00
This project is funded through the Department of Ecology Water Quality program
low interest loans.
IV. HISTORY AND FACTS BRIEF:
The City and Murraysmith, entered into a Professional Services Agreement
(PSA) on January 10, 2020 to provide engineering services with respect to
design of the Wastewater Treatment Plant (WWTP) Improvements Phase 1
Project. Subsequent to the original PSA, two (2) amendments have been
Page 26 of 262
approved under the authority provided to the City Manager and the Public Works
Director for the project. A short description of the amendments are listed below:
• Amendment No. 1: Executed on March 5, 2021, modified their original
scope of work for professional engineering services. The Amendment re-
allocated unused funds from specific tasks to accommodate additional
services required to complete the design, including tracking of comments
provided by Ecology, incorporation of independent constructability review
comments, development of process control descriptions, issuing a
conformed set of drawings, and bid evaluation support.
• Amendment No. 2: Executed on April 15, 2021, provided additional
professional serviceengineering of additional include time s and
performance to accommodate the rebid of the project.
The scope of work currently under contract includes work through bid -phase
support for this project, which is now largely complete. Moving into the bid -
evaluation and construction phases additional work from the consultant would
be beneficial to the City due to Murraysmith's familiarity with the project.
Accordingly, a third amendment is proposed as follows:
• Proposed Amendment No. 3: This amendment is necessary for the
consultant to provide Engineer-of-Record services during the construction
phase of this project. Services include support on responses to Requests
For Information (RFI), review and approval of submittals, shop drawings
and samples, review and recommendations on change orders, field
orders and work change directives, creation of asset lists and O&M
manuals, and preparation of record drawings.
These services will complement those of the Construction Management and
Administration firm (HDR, Inc.) for this project and are specific to the Engineer
of Record (EOR). The construction phase scopes of work for both firms (HDR
and coorwere Murraysmith) all of coverage complete dinated to ensure
necessary tasks with no overlap in functions. The characteristics of this
wastewater facility upgrade project requires considerably more involvement of
the EOR during the construction phase, especially related to the review
submittals for equipment, resulting in a higher level of effort of the EOR, than
other types of projects.
V. DISCUSSION:
With the project design and bid processes completed, and advancing towards
award of contract and construction phase, additional work from Murraysmith
would be beneficial to the City due to the consultant's familiarity with the project.
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Accordingly, a third amendment is proposed for EOR services during
construction.
This item was discussed at the May 10, 2021 Council Workshop Meeting.
Concern was raised about the billing rates being subject to adjustment after the
end of 2021 and there did not appear to be a set escalation factor included.
Staff researched this and learned the total estimated fee includes a negotiated
annual escalation of 3.5% on labor rates (reduced from the typical 5% increase).
The following language is now included in 2021 Schedule of Charges attached
to the contract amendment: "The fee estimate includes 3.5% aggregate increase
in rates annually used to calculate project budget and account for inflation and
promotions."
Staff recommends approval of Amendment No. 3 to the PSA w ith Murraysmith,
Inc. in the amount of $714,146.00 for the WWTP Phase 1 Construction Support
Services.
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Resolution – WWTP Phase 1
Murraysmith PSA Amendment No. 3 - 1
RESOLUTION NO. _________
A RESOLUTION OF THE CITY OF PASCO, WASHINGTON,
AUTHORIZING THE CITY MANAGER TO SIGN AND EXECUTE
AMENDMENT NO. 3 FOR THE PROFESSIONAL SERVICES AGREEMENT
(PSA) WITH MURRAYSMITH, FOR THE CONSTRUCTION SUPPORT
SERVICES FOR THE WASTEWATER TREATMENT PLANT (WWTP)
IMPROVEMENTS - PHASE 1 PROJECT.
WHEREAS, the City and Murraysmith entered into a PSA on January 10, 2020 to provide
engineering services for the design and permitting of the WWTP Improvements – Phase 1 project.
WHEREAS, the City and Murraysmith, executed two Amendments to the PSA to modify
their original scope of work for professional engineering services and to add additional time of
performance with respect to the WWTP Improvements - Phase 1 project; and
WHEREAS, previous amendments to the agreement were authorized under the authority
provided to the City Manager and Public Works Director; and
WHEREAS, the additional construction engineering support services are necessary to
fulfill the original intent of the PSA with Murraysmith, and its addition, by amendment, to this
PSA represents a fair and reasonable agreement as determined by the Public Works Director.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PASCO, WASHINGTON:
Section 1. That the subject agreement is amended to allow Murraysmith, to provide
additional professional engineering services (scope & fee) as described within Exhibit A & B
attached hereto and to add additional time of performance.
Section 2. The City Manager of the City of Pasco, Washington, is hereby authorized,
empowered, and directed to sign and execute said Amendment on behalf of the City of Pasco.
PASSED by the City Council of the City of Pasco, Washington this ___ day of ___, 2021.
_____________________________
Saul Martinez
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ _____________________________
Debra Barham, CMC Kerr Ferguson Law, PLLC
City Clerk City Attorney
Page 29 of 262
Amendment No. 3 to Professional Services Agreement Page 1
Murraysmith
WWTP Improvements – Phase 1
AMENDMENT NUMBER 3 to
PROFESSIONAL SERVICES AGREEMENT
WWTP Improvements – Phase 1
Project No. 19072
AGREEMENT NO. 19048
WHEREAS, the City and Murraysmith, entered into a Professional Services Agreement
on 1/10/2020 to provide engineering services with respect to the WWTP Improvements – Phase
1 project.
WHEREAS, the City and Murraysmith, entered into Amendment No. 1 on 3/5/2021 to
modify their original scope of work for professional engineering services with respect to the
WWTP Improvements – Phase 1 project.
WHEREAS, the City and Murraysmith, entered into Amendment No. 2 on 4/15/2021 to
provide additional professional engineering services and add additional time of performance with
respect to the WWTP Improvements – Phase 1 project.
NOW, THEREFORE, this agreement is amended to allow Murraysmith, to provide
additional professional engineering services and construction support services as described in
Exhibit A.
1. Scope of Work:
See Exhibit A.
2. Fee:
The compensation for the additional work is based on a Time and Materials Basis of
$714,146.00 increasing the overall total authorization amount to $3,185,713.00
3. Time of performance:
No Change. The services shall now be complete for the project on or before
12/31/2023.
DATED THIS _______ DAY OF ________, 2021.
CITY OF PASCO: CONSULTANT
City of Pasco Murraysmith
Dave Zabell, City Manager Craig Anderson, P.E.
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City of Pasco MURRAYSMITH WWTP Improvements Phase 1 EOR
April 2021 1
SCOPE OF WORK
WWTP IMPROVEMENTS PHASE 1 ENGINEER OF RECORD
CITY OF PASCO, WA
Background
The City of Pasco, Washington has been one of the fastest growing cities in the State of
Washington and the nation over the last several years. To plan for the impacts of this growth on
the municipal wastewater treatment plant (WWTP) and ensure it has adequate treatment capacity
for the foreseeable future, a Facility Plan was recently completed. This report identified existing
and projected future WWTP deficiencies through the year 2040 and developed a plan to address
them. The Facility Plan was approved by the Washington State Department of Ecology (Ecology)
in August of 2019.
In 2020 and early 2021, Murraysmith (Consultant) designed the WWTP Phase 1 Improvements
Project. The project was bid in early 2021. Also , in early 2021, HDR Engineering Inc. (HDR) was
selected to lead the Construction Management services. The work program described herein for
Phase 1 and the proposed budget both assume that the City of Pasco and HDR as the third-party
Construction Manager will lead, manage, and oversee the construction phase. The phrase “The
City” will be used hereafter to refer collectively to the City of Pasco and HDR. Consultant will have
an active role in assisting The City to oversee and manage the construction of the Phase 1
improvements as described in the following Scope of Services.
The following Scope of Services has three (3) different tasks and is for the Engineer of Record
services during construction of the Phase 1 improvements only.
Scope of Services
Task 1 - Project Management
The objective of the Project Management task is to manage and monitor the status of the
Consultant team’s work. This task includes project invoicing and budget status tracking, the
development of and updates to the Project Management Plan, a kick-off meeting, general
communications and coordination with the Consultant’s design team and The City, and other
general administrative and project management activities.
Activities
1.1 Invoices/Progress Reports
The project will be managed to maintain the scope, schedule, and budget. At a minimum, updates
on project budget will be provided as part of the monthly invoicing process. Monthly invoices will
EXHIBIT A
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include expenditures by task, hours worked by project personnel, and other direct expenses with
the associated backup documentation. Monthly progress reports will accompany each invoice and
include budget status (percent spent and budget remaining), summary of work accomplished,
work anticipated in the next invoice, issues encountered and actions taken for their resolution or
that still require project team action, and discussion of identified potential impacts to scope,
budget, or schedule.
1.2 Project Management Plan
A Project Management Plan (PMP) will be developed to guide the overall execution of the
Consultant Team work and will include: a project overview and key understandings; organizational
chart summarizing roles/responsibilities and contact information for all team members; project
scope of work and schedule with a summary of key deliverables and milestone dates; Project
Budget summary broken down by subtask and discipline; Project Safety Plan for Consultant’s staff
only; and a Quality Management Plan summarizing QA/QC procedures for all deliverables.
1.3 City and Team Coordination
This task includes communications and coordination with The City and Design Engineers during
construction not specifically called out in other tasks. This task is estimated on average three (3)
hours of effort each week during 112 weeks of construction. As project manager, Mark Cummings
as Single Point of Contract (SPOC), will lead and oversee project communications with The City and
Consultant’s team throughout the duration of the project, lead meetings and discussions, keep
The City up to date on project issues and details and make sure The City’s input is incorporated
into the work product. As principal in charge, Craig Anderson will support Mark to ensure that this
Scope of Work is completed. He will also act as secondary point of contact due to the scale of the
project.
Deliverables
▪ Monthly invoice and progress report (PDF electronic format)
▪ Kick-Off Meeting Notes/Action Item Summary (PDF electronic format)
Assumptions
▪ Project duration is anticipated to be no more than 30 months; therefore, it is assumed that
there will be up to 30 progress payments/status reports.
Task 2 – Construction Phase Services
Consultant services during construction shall include the following sub-tasks.
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Activities
2.1 Kickoff, Pre-Construction and Weekly Construction Meetings
A kick-off meeting will be held at the WWTP to review the project, introduce key Consultant team
members to The City, review project goals and objectives, establish communication protocols, and
discuss the project scope and schedule. A tour of the WWTP site will be conducted following the
kickoff meeting to review the facility and start general discussions on critical elements or risk areas
with The City from the design team’s perspective.
Attend Preconstruction Conference to answer questions regarding the contract documents by
three (3) staff members. Attend weekly construction meetings with The City and the general
contractor during active phases of construction and when requested by The City. The City will
prepare agenda, make invitations, conduct the meetings, and distribute minutes to all attendees.
Budget assumes that Consultant will attend and participate in weekly construction meetings by
telephone, unless onsite for other tasks. Up to 112 weekly meetings attended by one (1) staff is
assumed. Each meeting is estimated to last 1.5 hours and require an additional 0.5 hours of follow-
on work. The budget estimate is reduced by 10 percent to account for potential efficiency of
meetings that occur in conjunction with onsite meetings and other tasks.
2.2 Coordination Meetings
Prior to the beginning of two (2) major construction periods, prepare for and attend a construction
coordination meeting with The City and the Consultant’s design team staff. Up to two (2) onsite
meetings attended in person by an average of four (4) staff is estimated for this task. The first
meeting is assumed to cover aeration basin 1+4 co nstruction, blower building construction, and
outfall pipeline construction. The second meeting is assumed to cover aeration basin 2+3
rehabilitation and blower mechanical modifications.
2.3 Schedules
The City shall receive, review, monitor, and determine the acceptability of any and all schedules
that Contractor is required to submit, including the Overall Progress Schedule, Schedule of
Submittals, and Schedule of Values. Consultant shall assist The City by providing a secondary
review of up to:
▪ 26 Overall Progress Schedules
▪ Two (2) Schedules of Submittals
▪ Two (2) Schedules of Values
2.4 Visits to Site and Observation of Construction
In connection with observations of Contractor’s work while it is in progress, Consultant will make
visits to the site and attend Project status meetings at intervals appropriate to the various stages
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of construction. These visits are anticipated to occur on average at a quarterly frequency. For
budgeting purposes, a site visit roughly once every three (3) months on average is assumed for
the observation of the progress and quality of Contractor’s executed work by the Consultant. Up
9 site visits attended by one (1) staff is estimated for this task with 12 hours of time spent per visit.
Such visits and observations by Consultant are not intended to be exhaustive or to extend to every
aspect of Contractor’s work in progress or to involve detailed inspections of Contractor’s work in
progress beyond the responsibilities specifically assigned to Consultant in this Scope of Services,
but rather are to be limited to spot checking and similar methods of general observation of the
work.
Review of daily field inspection reports an average of one (1) hour per week during the 112 weeks
of the project.
2.5 Request for Information – Clarifications and Interpretations
Issue necessary clarifications and interpretations of the Contract Documents as appropriate to the
orderly completion of Contractor’s work. Such clarifications and interpretations will be consistent
with the intent of and reasonably inferable from the Contract Documents. To ensure design intent
is followed, Consultant will review up to 100 Requests for Information (RFIs) that The City responds
to with an average of 0.5 hour per review. Consultant will process up to 100 RFIs with average of
three (3) hours per RFI that Consultant responds to.
2.6 Change Orders and Change Proposal Requests, Field Orders, and Work Change
Directives
Review Change Orders, Change Proposal Requests, Field Orders, and Work Change Directives, as
appropriate, and prepare Change Orders and Change Proposal Requests as required.
Consultant will assist in the processing of up to a total 27 Review Change Orders, Change Proposal
Requests, Field Orders, and Work Change Directives before substantial completion and one (1)
before final completion. Actual preparation and processing response time may vary depending
upon the complexity of the Change Order, Change Proposal Request, Field Order, or Work Change
Directive. It is estimated that, on average, it will take eight (8) hours of effort for each.
2.7 Submittals, Shop Drawings and Samples
Review and assign and action response in respect to Submittals, Shop Drawings and Samples, and
other data which Contractor is required to submit, but only for conformance with the information
given in the Contract Documents and compatibility with the design concept of the compl eted
Project as a functioning whole as indicated by the Contract Documents. Such reviews and action
taken will not extend to means, methods, techniques, sequences, or procedures of construction
or to safety precautions and programs incident thereto. Consultant will process up to 100 initial
submittal reviews with up to 40 additional resubmittals with an average of four (4) hours per
submittal and two (2) hours per resubmittal.
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2.8 Substitutes and “or-equal”
Consultant will evaluate and determine the acceptability of substitute or “or-equal” materials and
equipment proposed by Contractor. Consultant will process up to 10 initial reviews with up to five
(5) additional resubmittal reviews with an average of eight (8) hours each for substitute and “or-
equal” submittals.
2.9 Contractor’s Completion Documents
Consultant shall review and provide comments as appropriate on maintenance and operating
instructions, certificates of inspection, tests and approvals, and the annotated reco rd documents.
The City shall be responsible for receiving and reviewing schedules, guarantees, bonds,
certificates, or other evidence of insurance required by the Contract Documents which are to be
assembled by Contractor to obtain final payment. The extent of review by Consultant will be
limited as provided in subtask 2.8. Engineer time for this task is estimated at 84 hours.
2.10 Start-Up Assistance
Observe and provide technical assistance during the functional testing and startup of the Project.
This will include two (2) major WWTP construction elements (AB 1+4, AB 2+3) attended by an
average of three (3) staff is estimated for this task. Additional work in the office is assumed to
review start-up plans and other WWTP operational considerations.
2.11 Substantial Completion
After notice from Contractor that Contractor considers the project ready for partial utilization for
its intended use, in company with The City and Contractor, Consultant shall participate in a partial
utilization inspection to determine if the work is rea dy for use by the City. Consultant will review
and comment on a draft partial utilization checklist, punch list and walkthrough notes prepared by
The City.
After notice from Contractor that Contractor considers the entire work ready for its intended use,
in company with The City and Contractor, Consultant shall participate in a pre-final inspection to
determine if the work is substantially complete. Consultant will review and comment on a draft
checklist, punch list and walkthrough notes prepared by The City. If, after considering any
objections of The City, Consultant considers the work substantially complete, Consultant shall
recommend that The City prepare and deliver a Certificate of Substantial Completion to City and
Contractor.
Consultant will provide one (1) Partial Utilization inspections and one (1) Project Substantial
Completion inspection.
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2.12 Final Notice of Acceptability of the Work
In company with The City, Consultant shall conduct a final inspection to determine if the
completed work of Contractor is acceptable so that Consultant may recommend, in writing, final
payment to Contractor. Accompanying the recommendation for final payment, Consultant shall
also provide a Notice of Acceptability of work that the work is acceptable to the best o f
Consultant’s knowledge, information, and belief and based on the extent of the services provided
by Consultant under this Agreement. The City shall provide necessary certifications to any
permitting authority regarding completion of the work in accordance with approved plans and
specifications (e.g. – Ecology’s Declaration of Construction Completion).
Consultant shall not be responsible for the acts or omissions of any Contractor, or of any
subcontractors, suppliers, or other individuals or entities performing or furnishing any of the work.
Consultant shall not be responsible for the failure of any Contractor to perform or furnish the work
in accordance with the Contract Documents.
2.13 Operation and Maintenance Manual
Component operation and maintenance (O&M) manuals and other product literature will be
provided by Contractor during submittals prior to component and unit startup. Consultant will
prepare a draft partial utilization WWTP O&M manual for use during the remainder of
construction prior to substantial completion of the project. This document will be further modified
during construction to become the final O&M manual.
To further support the start-up and operation of the new facilities, the Consultant will prepare and
lead a new facilities operations overview presentation with the WWTP operators prior to the initial
startup and partial utilization of modified WWTP (AB 1 & 4).
Consultant will augment and modify the City’s existing O&M manual as needed to incorporate the
changes made to the facility. No modifications to the format or sections of the existing O&M
Manual not modified by this project will be made. Consultant will revise the manual based on one
(1) round of comments received from Ecology and City operations staff. The manual modifications
will include at a minimum:
▪ Narrative and figures of operations and operating conditions for the WWTP Phase 1
Improvements.
▪ WWTP Phase 1 Improvements equipment maintenance recommendations and
requirements.
▪ Manufacturers’ literature identifying installation, operation, maintenance, handling,
storage, assembly, and other pertinent equipment information for equipment, systems,
subsystems, appliances, materials, finishes, and other material furnished and/or installed
on the Project.
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Consultant will provide one (1) hard copy of the Partial Utilization O&M Manual and one (1) hard
copy of the final O&M Manual as well as electronic PDF file format copies of each.
2.14 Record Drawings
Consultant shall prepare record drawings based on information provided by Contractor and The
City. Provide one (1) full size hard copy of the completed record drawings to Washington
Department of Ecology. Consultant shall also provide the completed record drawings in digital
format on flash drive in both AutoCAD and PDF format. Budget is based on the quality, clarity, and
extent of record drawing information from others require no more than 1.5 hours per sheet for
modifications.
2.15 Asset List
Consultant shall prepare Asset List from Phase 1 Improvements. Consultant shall prepare using
City format.
Deliverables
▪ Review and Observation Comments (electronic)
▪ Recommendations for issuance of substantial completion certificate
▪ Draft and Final O&M Manuals in hard copy and pdf format per subtask
▪ Record Drawings in pdf, dwg, and hard copy format per subtask
▪ Asset List (in City’s preferred electronic format)
Assumptions
▪ The City will provide full time staff for construction management of the General
Contractor’s work. The responsibilities of The City for construction management are
described below:
o The City shall lead, and Consultant shall attend a preconstruction meeting with the
Contractor and The City prior to the commencement of construction and prepare and
distribute minutes.
o The City shall perform the following tasks during the construction phase of the Project:
▪ Act as the liaison between The City, Contractor, and Consultant.
▪ Conduct weekly progress meetings; prepare and distribute minutes including
distribution to Consultant for all meetings, regardless of whether Consultant
attends said meetings.
▪ Manage, compile, and review daily inspection and documentation reports including
distribution to Consultant.
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▪ Manage, compile, and review special inspection and documentation reports
including distribution to Consultant.
▪ Review payment requests.
▪ Coordinate with Consul tant for processing of RFIs, design interpretations, and/or
changes. Receive Consultant’s recommendations and prepare documents based on
input from Consultant and The City.
▪ Coordinate with Consultant for processing of change requests. Provide
Contractor’s cost estimates to Consultant, negotiate with Contractor based on
input from Consultant, and prepare final change order documentation based on
input from Consultant and the City’s Project Manager.
▪ Lead and manage dispute resolution process seeking advice from Consultant as
needed.
▪ Prepare substantial completion notice and final punch list based on coordination
and consultation with Consultant.
▪ Prepare and issue final close-out documents based on coordination and
consultation with Consultant.
▪ The City shall ensure SRF requirements, Section 00 73 00 SRF Specification Insert, are
properly followed and in place.
▪ The City shall ensure that proper coordination efforts are in place between the Consultant,
The City’s field staff, the Contractor, and City staff.
▪ The City shall conduct or cause to be conducted all material sampling, laboratory tests, and
field and environmental quality assurance tests at each construction site at frequencies as
required in the Contract Documents. The material testing and acceptance contractor will
be contracted directly with City of Pasco.
▪ The City shall review the Contractor’s proposed baseline and monthly progress schedules
for contract compliance and facilitate communication and coordination between
Consultant and City.
▪ The City shall prepare daily inspection reports and make such reports available to
Consultant on a timely basis.
▪ The City shall prepare monthly reports, and make such reports available to Consultant, on
the Project addressing the Contractor's compliance with the project schedule, significant
problems encountered or anticipated, a summary of major work completed during the
current month and projected for the next month, and pending change orders and/or
claims.
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▪ Consultant shall not, during visits to the site or as a result of the observations of
Contractor’s work in progress, supervise, direct, or have control over Contractor’s work,
nor shall Consultant have authority over or responsibility for the means, methods,
techniques, sequences, or procedures of construction selected or used by Contractor, for
security or safety on the site, for safety precautions and programs incident to Contractor’s
work, nor for any failure of Contractor to comply with laws and regulations applicable to
Contractor’s furnishing and performing the work. Accordingly, Consultant neither
guarantees the performance of any Contractor nor assumes responsibility for any
Contractor’s failure to furnish and perform the work in accordance with the Contract
Documents.
▪ The City shall consult with the Consultant regarding disapproval or rejection of work
believed to be defective, or that The City believes will not produce a completed Project
that conforms to the Contract Documents or that will prejudice the integrity of the design
concept of the completed Project as a functioning whole as indicated by the Contract
Documents.
▪ The City shall consult with the Consultant as necessary to authorize minor variations in the
work from the requirements of the Contract Documents which do not involve an
adjustment in the contract price or the contract times and are compatible with the design
concept of the completed Project as a functioning whole as indicated by the Contract
Documents.
▪ The City shall consult with Consultant to prepare contract change orders to the Contract
Documents for the Contractor and City’s review and approval according to authority
protocol agreed upon.
▪ The City will provide existing O&M Manual in an electronic file format (MS Word and 2018
AutoCAD).
▪ Record Drawing information will be collected by The City and Contractor and provided in
clearly written hand annotations to Consultant.
▪ Upon City’s request and upon completion of a signed modification to this amendment to
cover additional scope and fee, Consultant shall furnish or obtain from others additional
services of the types listed below at a fee mutually agreed to by both parties in such
modification:
o Additional or extended services during construction made necessary by (1)
emergencies or acts of God endangering the work, (2) the presence at the Site of any
constituent of concern, (3) work damaged by fire or other cause during construction,
(4) a significant amount of defective, neglected, or delayed work by Contractor, (5)
acceleration of the progress schedule involving services beyond normal working hours,
or (6) default by Contractor.
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o Providing assistance in responding to the presence of any constituent of concern at the
site, in compliance with current laws and regulations.
o Evaluating claims submitted by Contractor or others in connection with the work.
o Preparing to serve or serving as a consultant or witness for The City in any litigation,
arbitration, or other dispute resolution process related to the Project.
▪ Budget includes estimated allowances for printing, lodging, vehicle, and travel “Expenses”
in Exhibit B.
Task 3 – Additional Unanticipated, Urgent, or Special Services
Consultant services during construction shall include the following sub-tasks.
Activities
3.1 Overall Project Contingency
With any large and complex project, the potential exists for additional effort to be expended that
was not foreseen by the City staff or Consultant at the time of scoping. A number of tasks such as
public involvement, facility assessments, schedule delays, urgent or critical activities, defective
work assessments and additional evaluations required by City staff are potential sources of out-
of-scope work. A contingency line item of $25,000 has been identified. This task will only be utilized
upon authorization by the City.
Deliverables
▪ Specific deliverables will be developed upon authorization of task by the City.
Assumptions
▪ Contingency task will not be utilized without prior authorization by the City.
▪ Specific assumptions will be developed upon authorization of task by the City .
Budget
The work covered under this scope of work will be billed on a time and materials basis at the billing
rates for personnel working directly on the project, which will be made at the Consultant’s Hourly
Rates plus Direct Expenses incurred as updated annually (See Exhibit A for Consultant’s current
rate details). The overall budget estimate for this work is summarized in the table below. A detailed
budget breakdown is provided in Exhibit B. Consultant will manage the work identified to the
aggregate authorized budget amount, report budget status by task monthly, and not exceed the
aggregate budget amount without prior written authorization from the City.
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The effort required for each task will be dependent on several factors out of the Consultant’s direct
control (number of RFIs, discovery of unforeseen conditions, number of change proposals, quality,
and completeness of submittals, etc.). Therefore, the budgets associated with each task and
overall will likely vary.
Task Amount
Task 1 – Project Management $116,690
Task 2 – Construction Phase Services $572,456
Task 3 – Additional Unanticipated, Urgent, or Special Services $25,000
TOTAL $714,146
Project Schedule
Consultant will make every effort to complete the work in a timely manner; however, it is agreed
that consultant cannot be responsible for delays occasioned by factors beyond its control, nor by
factors that could not reasonably have been foreseen at the time this scope was executed.
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Personnel:
Billing Classifications 2021 Rates Billing Classifications 2021 Rates
Principal Engineer VI $270 Construction Manager VIII $227
Principal Engineer V $260 Construction Manager VII $219
Principal Engineer IV $250 Construction Manager VI $203
Principal Engineer III $239 Construction Manager V $188
Principal Engineer II $230 Construction Manager IV $178
Principal Engineer I $222 Construction Manager III $162
Professional Engineer IX $212 Construction Manager II $150
Engineering Designer IX $204 Construction Manager I $133
Professional Engineer VIII $202 Inspector VII $188
Engineering Designer VIII $193 Inspector VI $172
Professional Engineer VII $191 Inspector V $156
Engineering Designer VII $184 Inspector IV $145
Professional Engineer VI $182 Inspector III $129
Engineering Designer VI $175 Inspector II $117
Professional Engineer V $171 Inspector I $100
Engineering Designer V $164 Technician IV $155
Professional Engineer IV $161 Technician III $139
Engineering Designer IV $161 Technician II $120
Professional Engineer III $157 Technician I $101
Engineering Designer III $157 Administrative III $110
Engineering Designer II $143 Administrative II $101
Engineering Designer I $132 Administrative I $89
Project Manager V $270
Project Manager IV $250
Project Manager III $225
Project Manager II $200
Project Manager I $164
Project Expenses:
CADD Hardware/Software $18.00/hour
Modeling and GIS Hardware/Software $10.00/hour
Mileage Current IRS Rate
Postage and Delivery Services At Cost
Printing and Reproduction At Cost
Travel, Lodging, and Subsistence At Cost
Outside Services:
2021 SCHEDULE OF CHARGES
Labor will be invoiced by staff classification at the following hourly rates, which are valid from January 1,
2021 through December 31, 2021. After this period, the rates are subject to adjustment.
Expenses incurred that are directly attributable to the project will be invoiced at actual cost. These
expenses include the following:
Outside technical, professional, and other services will be invoiced at actual cost-plus 5 percent to cover
administration and overhead.
2021 OR/SW WA/ID/CO MURRAYSMITH Confidential
The fee estimate includes 3.5% aggregate increase in rates annually to calculate project budget and account for inflation
and promotions.
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EXHIBIT BLABOR CLASSIFICATION (HOURS)Estimated FeesProfessional Engineer VIIProfessional Engineer IXProfessional Engineer IIIEngineering Designer IProfessional Engineer IXProfessional Engineer IVEngineering Designer VITechnician IIIAdministrative IIAdministrative IHoursLaborIndustrial SystemsArchitects WestRichwineRossoExpensesCADD Units $18/hrTotalAndersonCummingsBrownKirbyOppFoote IILoveBlacketterButterfieldThurstonTikkalaTask 1 - PROJECT MANAGEMENTTask 1.1 - Invoices/Progress Reports50 10090 240 41,529$ 1.05-$ -$ -$ 41,529$ Task 1.2 - Project Management Plan816832 6,154$ 1.05-$ -$ -$ 6,154$ Task 1.3 - City and Team Coordination56 112206420272 56,407$ 5,000$ 5,000$ 2,000$ -$ 1.05 12,600$ -$ -$ 69,007$ Task 1 Subtotal1142282064020000890544104,090$ 5,000$ 5,000$ 2,000$ -$ -$ -$ 12,600$ -$ -$ 116,690$ Task 2 - CONSTRUCTION PHASE SERVICESTask 2.01 - Kickoff, Pre-Construction and Weekly Construction Meetings79 1462122242 53,100$ 1,000$ 100$ 1,000$ 500$ 1.05 2,730$ 830$ -$ 56,660$ Task 2.02 - Coordination Meetings16 16316354 11,389$ 5,000$ 5,000$ 500$ 1,000$ 1.05 12,075$ 3,780$ -$ 27,244$ Task 2.03 - Schedules8303068 12,963$ 1.05-$ -$ -$ 12,963$ Task 2.04 - Visits to Site and Observation of Construction16 18488216 44,206$ 500$ 500$ 500$ 1,000$ 1.05 2,625$ 5,670$ -$ 52,501$ Task 2.05 - Request for Information – Clarifications & Interpretations24 4016644088200 36,843$ 12,000$ 12,000$ 500$ 2,500$ 1.05 28,350$ -$ -$ 65,193$ Task 2.06 - Change Orders and Change Proposal Requests 42 4212428128166 34,134$ 5,000$ 5,000$ 500$ 1.05 11,025$ -$ -$ 45,159$ Task 2.07 - Submittals, Shop Drawings and Samples36 3616160 140888412 69,390$ 5,000$ 4,000$ 500$ 2,500$ 1.05 12,600$ -$ -$ 81,990$ Task 2.08 - Substitutes and “or-equal”10 20328878 13,779$ 5,000$ 2,000$ 500$ 500$ 1.05 8,400$ -$ -$ 22,179$ Task 2.09 - Contractor’s Completion Documents816424244484 14,922$ 1.05-$ -$ -$ 14,922$ Task 2.10 - Start-Up Assistance32 328248104 22,356$ 15,000$ 500$ 500$ 1.05 16,800$ 3,780$ -$ 42,936$ Task 2.11 - Substantial Completion16 242168268 13,625$ 1,000$ 1,000$ 500$ 1.05 2,625$ 630$ -$ 16,880$ Task 2.12 - Final Notice of Acceptability of the Work888226 5,245$ 500$ 500$ 250$ 1.05 1,313$ -$ -$ 6,558$ Task 2.13 - Operation and Maintenance Manual16 328801208840312 49,068$ 2,000$ 2,000$ 1.05 4,200$ 1,000$ -$ 54,268$ Task 2.14 - Record Drawings8328888080224 39,303$ 7,500$ 7,500$ 2,000$ 1.05 17,850$ 2,500$ 2,880$ 62,533$ Task 2.15 - Asset List244046 6,796$ 3,000$ 500$ 1.05 3,675$ -$ -$ 10,471$ Task 2 Subtotal32166287516388713680805802300427,118$ 60,500$ 38,100$ 7,750$ 8,000$ 2,000$ 2,000$ 124,268$ 18,190$ 2,880$ 572,456$ Task 3 - Additional Unanticipated, Urgent, or Special ServicesTask 3.1 - Overall Project Contingency25,000$ 25,000$ Task 3 Subtotal000000000000-$ -$ -$ -$ -$ -$ -$ -$ 25,000$ -$ 25,000$ TOTAL - ALL TASKS4358901075803889136808066902844531,208$ 65,500$ 43,100$ 9,750$ 8,000$ 2,000$ 2,000$ 136,868$ 43,190$ 2,880$ 714,146$ Staff NameSubconsultantsPeterson Structural EngineersSub Multiplier(Markup)Sub Total with MarkupPrincipal Engineer VShannon and WilsonCity of PascoApril 2021G:\PDX_BD\Clients\Pasco, City of\WWTP Facility Improvements 8-19\Contracting\Phase 1 Construction Engineering\Fee Estimate\Fee Estimate 2021 Rates - Phase 1 EOR_4.19.2021.xlsxMurraysmithWWTP Improvements Phase 1 - Engineer of RecordPage 1Page 43 of 262
AGENDA REPORT
FOR: City Council May 12, 2021
TO: Dave Zabell, City Manager City Council Regular
Meeting: 5/17/21
FROM: Bob Gear, Fire Chief
Fire Department
SUBJECT: *Resolution - Modifying the Scope of Work in the Professional Services
Agreement with Columbia Safety LLC to Include COVID -19 Vaccination
Sites
I. REFERENCE(S):
Resolution
Modified Scope of Work
Original Professional Services Agreement / Funding Limit Increase Letter
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to approve Resolution No. _______, modifying the Scope of
Work in the Professional Services Agreement with Columbia Safety, LLC for the
COVID-19 vaccination sites.
III. FISCAL IMPACT:
The modification to the Scope of Work (SOW) is needed to allow the City to
reimburse Columbia Safety, LLC for expenses related to assisting Pasco Fire
Department staff at the COVID-19 Vaccination Sites.
IV. HISTORY AND FACTS BRIEF:
The City of Pasco has contracted with Columbia Safety, LLC to provide
personnel West CBC the and Vaccination to the at assist Mass
Testing/Vaccination sites, as well as at Mobile/Pop -Up Sites throughout our
community. The modified SOW allows Pasco to reimburse Columbia Safet y, LLC
for assisting Pasco Fire Department staff at these vaccination sites.
V. DISCUSSION:
Vaccination of the Tri-Cities community members is a vital action that must be
taken to reduce the spread of COVID-19 in Pasco let alone the greater Tri-Cities
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area. These sites require staffing above what the City itself can provide.
Columbia Safety, LLC, a local provider of medical training, has and will continue
to be a critical staffing provider throughout the community.
Staff recommends approval of the m odification to the SOW in the Professional
Services Agreement with Columbia Safety, LLC.
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Resolution – PSA with Columbia Safety LLC for COVID-19 Vaccination Sites
RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PASCO
MODIFYING THE SCOPE OF WORK IN THE PROFESSIONAL SERVICES
AGREEMENT WITH COLUMBIA SAFETY, LLC FOR THE COVID-19
VACCINATION SITES.
WHEREAS, the City of Pasco, Washington and Columbia Safety, LLC entered into a
Professional Services Agreement to perform services and tasks related to COVID-19 community
testing sites September 23, 2020; and
WHEREAS, it has been determined that the previous scope of work for testing needs to
be modified to include vaccine site assistance; and
WHEREAS, the City of Pasco, Washington will provide site command and assure safety
for all personnel onsite; and
WHEREAS, Columbia Safety, LLC will provide services for the registration, vaccination,
and medical monitoring for the COVID-19 vaccination sites; and
WHEREAS, on May 17, 2021, the City Council of the City of Pasco authorized the City
Manager sign the modification of scope of work within the Columbia Safety, LLC Professional
Services Agreement consistent with the terms discussed at that Regular Meeting subject to
ratification by Council.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PASCO, WASHINGTON:
Section 1. That the City Council of the City of Pasco ratifies and approves of the terms and
conditions of the modification to the Scope of Work within the Professional Services Agreement
between the City of Pasco and Columbia Safety, LLC, as attached hereto and incorporated herein
as Exhibit A.
PASSED by the City Council of the City of Pasco, Washington this 17th day of May, 2021.
Saul Martinez
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Debra Barham, CMC Kerr Ferguson Law, PLLC
City Clerk City Attorney
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EXHIBIT A
SCOPE OF WORK
Registration, Vaccinating and Monitoring Services
COVID-19 Vaccination Sites
1.0 INTRODUCTION
The World Health Organization (WHO) has declared the novel Coronavirus (COVID19 or COVID)
a worldwide pandemic. COVID19 has demonstrated the capability to spread rapidly, leading to significant
impacts on healthcare systems and causing societal disruption. The potential public health threat posed by
COVID19 is high, both globally and to the United States. To respond effectively to the COVID19 outbreak,
rapid detection of cases and contacts, appropriate clinical management and infection control, and
implementation of community mitigation efforts are critical.
To assure the early detection of allergic reaction in persons that have received the COVID19
Vaccination in Washington State, the Washington State Department of Health (DOH) is working with t he
City of Pasco and Benton-Franklin Community Partners (which collectively comprise the “COVID
Community Vaccination Site Organization”) to staff and operate multiple sites in the Columbia Basin area
to vaccinate anyone who has eligibility to receive the COVID19 vaccine.
Under contract to the City of Pasco in Washington State, Columbia Safety, LLC, hereinafter
referred to as “Consultant,” will recruit, train and provide healthcare personnel and registration technicians
including but not limited to Medical Observers to physically interact with vaccinated patients and
accompanying individuals at the COVID Vaccination Sites (hereinafter, the “Vaccination Site”).
2.0 SCOPE OF WORK
2.1. Organization.
2.1.1 Site management and operational control of all vaccination activities at the Vaccination
Sites will be performed by the City of Pasco (hereinafter, the “City”), a member of the
Benton-Franklin Community Partners and the larger Vaccination Site.
2.1.2 At the Vaccination Site, the Consultant’s staff will report to and coordinate their on-site
activities with the Operations Chief or their designee.
2.1.3 The Consultant will have direction over their employees while on and off site. To include
meals, breaks, hiring, training and termination. The City will advise the Consultant of the
number of staff needed per day on a weekly basis. When possible, notification of any
changes will be seven (7) days in advance.
2.2. Personnel.
2.2.1 The Consultant will train, qualify and provide an appropriate number of personnel to
perform the following functions at the Vaccination Site.
2.2.1.1 Training Specialist, HR. They will be the Operations Chief’s main point-of-contact
for human resources concerns, including changes in staffing needs and resolution
of any issues with the Vaccination Site staff.
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2.2.1.2 Medical Observer. This person will be in direct on-site contact with the Operations
Chief. Early recognition of anaphylaxis because anaphylaxis requires immediate
treatment, diagnosis is primarily made based on recognition of clinical signs and
symptoms, including:
• Respiratory: sensation of throat closing, stridor (high-pitched sound while
breathing), shortness of breath, wheeze, cough
• Gastrointestinal: nausea, vomiting, diarrhea, abdominal pain
• Cardiovascular: dizziness, fainting, tachycardia (abnormally fast heart
rate), hypotension (abnormally low blood pressure)
• Skin/mucosal: generalized hives, itching, or swelling of lips, face, throat
Symptoms of anaphylaxis might be more difficult to recognize in persons with
communication difficulties, such as long-term care facility residents with cognitive
impairment, those with neurologic disease, or those taking medications that can
cause sedation. Persons with communication difficulties should therefore be
monitored closely for the signs and symptoms of anaphylaxis listed above after
receiving an mRNA COVID-19 vaccine, and should also be monitored for more
non-specific signs of possible anaphylaxis including flushing, sudden increase in
secretions (from eyes, nose, or mouth), coughing, trouble swallowing, agitation, or
acute change in mental status.
Symptoms often occur within 15-30 minutes of vaccination, though it can
sometimes take several hours for symptoms to appear. Early signs of anaphylaxis
can resemble a mild allergic reaction, and it is often difficult to predict whether
initial, mild symptoms will progress to become an anaphylactic reaction. In
addition, not all symptoms listed above are necessarily present during anaphylaxis,
and not all patients have skin reactions. Symptoms are considered generalized if
there are generalized hives or more than one body system (e.g., cardiovascular,
gastrointestinal) is involved. If a patient develops itching and swelling confined to
the injection site, the patient should be observed closely for the development of
generalized symptoms (beyond the recommended observation periods noted
above, if necessary). If symptoms are generalized, epinephrine should be
administered as soon as possible, emergency medical services should be contacted,
and patients should be transferred to a higher level of medical care. In addition,
patients should be instructed to seek immediate medical care if they develop signs
or symptoms of an allergic reaction after their observation period ends and they
have left the vaccination site.
Management of anaphylaxis at a COVID-19 vaccination site.
If anaphylaxis is suspected, take the following steps:
• Rapidly assess airway, breathing, circulation, and mentation (mental
activity).
• Call for emergency medical services.
• Provide bi-lingual personnel to assist in the registration of individuals
seeking vaccines.
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• Provide personnel approved by the Benton Franklin Medical Program
Director (MPD) to vaccinate individuals.
• Provide personnel to monitor individuals for vaccine reactions and
following MPD guidance to administer the appropriate care to those
individuals displaying a reaction to the vaccine.
2.3. Training.
2.3.1 The Consultant will train and qualify all Vaccination Site staff in accordance with the
COVID19 Training Guides provided by the Washington State Department of Health
(DOH) and approved by local Medical Program Director.
2.3.2 Whenever a practice deficiency by a Vaccination Site staff member is reported to the
Operations Chief, Training Specialist / HR or Lead, will immediately provide corrective
instruction to the affected staff member(s) before permitting them to continue with
vaccination activities. The Consultant will thereafter schedule and conduct remedial
training for the affected staff member(s).
2.4. Equipment.
2.4.1 Personal Protective Equipment (PPE) and Sanitizing Supplies. The City will provide
Consultant with all essential and necessary PPE and sanitizing supplies for staff performing
testing activities at the vaccination Site, including but not limited to N95 masks / KN95
masks, gloves, face shields, eye protection, gowns, hand sanitizer, sanitary wipes and
cleaning solutions.
2.4.2 Testing Equipment and Related Articles. The City will provide Consultant with all essential
and necessary equipment, including but not limited to IPAD, marker pens, highlighters,
requisitions forms, computers, printer, and anything else needed to adequate perform their
job.
2.4.3 Traffic Control Equipment and Related Articles. The City will provide the appropriate
traffic control equipment and security personnel to assure the safety and security of
Vaccination Site staff and patients, including marked lanes, cones, in place from the road
to the site. Anything outside the site gates will be handled by the Police department.
2.4.4 Facilities. The City will provide bathroom facilities, break areas and parking for staff
performing and/or supporting vaccination activities at the Vaccination Site.
2.5. Work Performance.
2.5.1 Vaccine Site Operations. Current operations at the at the Fair Grounds Vaccination Site are
scheduled for Tuesday thru Saturday from 8:00 am to 4:30 pm. This Schedule is subject to
change. When possible, notification of any change in schedule will be provided with seven
(7) day notice to the Training Specialist / HR.
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2.5.2 Current operations at the CBC West site are anticipated to be 7 days a week , 8:00 to 1700.
2.5.3 There will be delivery of multiple Mobile/Pop Up clinics with varying hours.
2.5.4 Performance Metrics. The City will advise the Consultant within twenty-four (24) Hours
of any changes needed in performance of the Consultant. The City will work with the
Consultant to make the changes needed to be able to perform the change under a reasonable
time frame dependent on the scope of work that needs to be changed.
2.6. Meetings.
2.6.1 The Consultant will attend and actively participate (on-site or remotely by telecon) in the
planning, status and performance review meetings conducted weekly or as otherwise
established by the City. The intent of the meetings is to focus on the following:
• Review the progress of the vaccination activities and affirm that it addresses the Scope
of Work and supports the Project schedule;
• Communicate and reinforce the City’s expectations with respect to Scope of Work,
quality, and procedural requirements;
• Identify any risks and issues either party is or should be aware of (e.g., impacts to
scope, schedule, costs, quality), and define risk mitigation and remediation plans, as
required;
• Review performance of the Consultant.
2.7. Reports and Reviews.
2.7.1 The Consultant will submit a bi-weekly report to the Finance Section Chief that includes
basic staffing information, and accumulated costs.
2.7.2 The Training Specialist / HR will have a management meeting on-site with the City at the
discretion of both the City and the Consultant to review and discuss the progress report and
the performance of the Consultant’s vaccination staff.
2.7.3 The Consultant will take immediate action to mitigate, remediate and/or correct any issues
and/or concerns identified by the City, Operations Chief and/or Administrator.
2.8. Compensation.
2.8.1 Contract Type. The Contract is time and materials (T&M) with a not-to-exceed (NTE)
ceiling.
2.8.2 Invoices. The Consultant will prepare and submit bi-weekly invoices to the City for work
performed.
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P a g e | 5
2.9. Interfaces.
2.9.1 Training Specialist / HR. The Training Specialist / HR chairs the Consultant’s Project
Team and manages the Project staff and activities for the Consultant. The Training
Specialist / HR for the Project is Haylie Warren.
2.9.2 Operations Chief. The Operations Chief manages the Vaccination Site and has operational
control over on-site testing activities..
2.10. Issues and Concerns.
2.10.1 The Consultant will immediately inform the Operations Chief if and when it is determined
that a problem is discovered that is not directly part of the Project’s scope and/or could
impact the Project’s scope, quality, schedule and/or cost.
2.10.2 The Consultant will take immediate action to mitigate, remediate and/or correct any issues
and/or concerns identified by the City, Operations Chief and/or Training Specialist / HR.
2.11. Modification.
2.11.1 Any modifications within the Project’s scope, schedule and/or cost, such as change in daily
staffing needs, can be directed by the Operations Chief.
2.11.2 Any modifications outside the Project’s scope, schedule and/or cost must be mutually
agreed upon by the Consultant and the City, and authorized by a written supplemental
agreement approved by the City before the change is implemented.
CITY OF PASCO, WASHINGTON COLUMBIA SAFETY, LLC
Dave Zabell, City Manager Nathan Kennedy, Owner
Payment Rates and Projected # of Maximum Personnel
Job Title Employed By
# of
Personnel Hourly Rate OT Rate
Scheduling/HR/Training Columbia Safety 1 $65.00 $97.50
Medical Observation Equipment
Bag
Columbia Safety Per day $60.00
Medical Observation Columbia Safety 2 $60.00 $90.00
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SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
ACCORDANCE WITH THE POLICY PROVISIONS.
INSURER(S) AFFORDING COVERAGE
INSURER F :
INSURER E :
INSURER D :
INSURER C :
INSURER B :
INSURER A :
NAIC #
NAME:
CONTACT
A/C, No):
FAX
E-MAILADDRESS:
PRODUCER
A/C, No, Ext):
PHONE
INSURED
REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on
this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
OTHER:
Per accident)
Ea accident)
N / A
SUBR
WVD
ADDL
INSD
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person)
COMBINED SINGLE LIMIT
AUTOS ONLY
AUTOSAUTOSONLY
NON-OWNED
SCHEDULEDOWNED
ANY AUTO
AUTOMOBILE LIABILITY
Y / N
WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY
OFFICER/MEMBER EXCLUDED?
Mandatory in NH)
DESCRIPTION OF OPERATIONS below
If yes, describe under
ANYPROPRIETOR/PARTNER/EXECUTIVE
E.L. DISEASE - POLICY LIMIT
E.L. DISEASE - EA EMPLOYEE
E.L. EACH ACCIDENT
EROTH-STATUTEPER
LIMITS(MM/DD/YYYY)
POLICY EXP(
MM/DD/YYYY)
POLICYEFFPOLICYNUMBERTYPEOFINSURANCELTRINSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)
EXCESS LIAB
UMBRELLA LIAB $EACH OCCURRENCE
AGGREGATE
OCCUR
CLAIMS-MADE
DED RETENTION $
PRODUCTS - COMP/OP AGG
GENERAL AGGREGATE
PERSONAL & ADV INJURY
MED EXP (Any one person)
EACH OCCURRENCE
DAMAGE TO RENTED $
PREMISES (Ea occurrence)
COMMERCIAL GENERAL LIABILITY
CLAIMS-MADE OCCUR
GEN'L AGGREGATE LIMIT APPLIES PER:
POLICY PRO-
JECT LOC
CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)
CANCELLATION
AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03)
1988-2015 ACORD CORPORATION. All rights reserved.
CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED
AUTOS ONLY
09/30/2020
Hiscox Inc.
520 Madison Avenue
32nd Floor
New York, NY 10022
888) 202-3007
contact@hiscox.com
Hiscox Insurance Company Inc 10200
Columbia safety
418 N Kellogg St Ste C D E & F
Kennewick, WA 99336
X
X
A
X
Y UDC-1717618-CGL-20 04/11/2020 04/11/2021
2,000,000
100,000
5,000
2,000,000
2,000,000
S/T Gen. Agg
City of Pasco is included as additional insured with respects for work performed for the city per policy terms and conditions.
City of Pasco
525 N 3rd Ave Pasco, WA 99301
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December 29, 2020
Nathan Kennedy, President
Columbia Safety
Revision to Columbia Safety LLC PSA - Increasing Funding Limit
Mr. Kennedy,
This letter is to revise, by mutual agreement, the limit of $722,115 established in the Professional
Services Agreement (PSA) dated September 23, 2020 between the City of Pasco and Columbia Safety
LLC to an amount not to exceed $1,100,000. All other terms and conditions of the aforementioned PSA
shall remain in effect.
Time was of the essence in communicating the City’s authorization of service by Columbia Safety to the
higher limit, accordingly a more formal addendum memorializing this revision to the above referenced
PSA will be prepared within the next several days.
Please indicate below with your signature, your acknowledgment and acceptance of these terms noted
above.
Sincerely,
Dave Zabell
City Manager
On behalf of Columbia Safety LLC., I am authorized, and accept, the revisions to the September 23, 2020
Professional Services Agreement terms described herein.
Nathan Kennedy, President Date
cc: Bob Gear, Fire Chief
12/29/2020
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AGENDA REPORT
FOR: City Council April 27, 2021
TO: Dave Zabell, City Manager City Council Regular
Meeting: 5/17/21
FROM: Steve Worley, Director
Public Works
SUBJECT: Presentation of Proclamation for Public Works Week
I. REFERENCE(S):
Proclamation
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Mayor Martinez will present the proclamation to Dave Deschane, Heavy
Equipment Operator on behalf of the City Council.
III. FISCAL IMPACT:
N/A
IV. HISTORY AND FACTS BRIEF:
National Public Works week started in 1960 as an annual way to energize and
educate the public on the importance of public works to their daily lives: planning,
building, managing and operating at the heart of local Improvement everyday
quality of life.
V. DISCUSSION:
"Stronger Together" is the theme for the 2021 National Public Works Week. This
theme challenges our employees and citizens to think about the role public works
plays in creating a great place to live. By working together, the impact citizens
and public works professionals can have on their communities is magnified and
results in the ability to accomplish goals once thought unattainable.
The contributions of the City's Public Works department strengthens the
community by working together to provide infrastructure services in
transportation, water, wastewater, stormwater treatment, emergency
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management and first response, solid waste, right -of-way management and
through collaboration with all stakeholders on capital projects, infrastructure
solutions, and quality of life services.
Council and staff would like take this opportunity to express appreciation to the
City's Public Works employees for their contributions and care for the safety and
health of residents, businesses and visitors of Pasco.
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P roclamation
“Public Works Week”
May 16-22, 2021
WHEREAS, public works services provided in our community are an integral part of our citizens’
everyday lives; and
WHEREAS, the support of an understanding and informed citizenry is vital to the efficient operation
of public works systems and programs such as water, sewer, streets and highways, public buildings, and
solid waste collection; and
WHEREAS, the health, safety, and comfort of this community greatly depends on these facilities and
services; and
WHEREAS, the quality and effectiveness of these facilities, as well as their planning, design,
construction and continued maintenance is vitally dependent upon the efforts and skill of public works
employees; and
WHEREAS, the efficiency of the qualified and dedicated personnel who staff public works
departments is materially influenced by the people’s attitude and understanding of the importance of the
work they perform;
NOW, THEREFORE, I, Saul Martinez, Mayor of the City of Pasco, Washington, do hereby proclaim
May 16-22, 2021 as
“Public Works Week”
in the City of Pasco, and call upon all citizens and civic organizations to acquaint themselves with the
challenges and diversity of public works projects and operations, and to recognize the contributions which
public works employees make every day to our health, safety, comfort, and quality of life.
IN WITNESS WHEREOF, I have hereunto set my hand and caused the Official Seal of the City of
Pasco, State of Washington, to be affixed this 17th day of May 2021.
Saul Martinez, Mayor
City of Pasco
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AGENDA REPORT
FOR: City Council January 2, 2020
TO: Dave Zabell, City Manager City Council Regular
Meeting: 5/17/21
FROM: Richa Sigdel, Finance Director
Finance
SUBJECT: *Resolution - Segregation of Local Improvement District (LID)
Assessment
I. REFERENCE(S):
Resolution
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to approve Resolution No. ____, relating to Local Improvement
District No. 150; providing for the segregation of assessments for certain parcels
consistent with RCW 35.44.410; and, ratifying and confirming prior acts.
III. FISCAL IMPACT:
None
IV. HISTORY AND FACTS BRIEF:
On August 20, 2018, the Council created Local Improvement District (LID) No.
150 to finance the cost of constructing Chapel Hill Boulevard improvements. The
final assessment roll for LID No. 150 was confirmed and approved on April 1,
2019. Subsequent to the final assessment roll confirmation, a number of
properties within the LID have been subdivided through final plat approval.
V. DISCUSSION:
State law requires that Council approve the segregation of LID assessments in
the event of a subsequent subdivision of property(ies) within the LID. the City,
through legislative action is assess subdivide parcels as nearly as possible on
the same basis as the original assessments were levied, and the total of the
segregated parts of the assessment equals the assess ment amounts before
segregation.
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Based on the advice of the bond counsel, staff is recommending approval of the
proposed Resolution to cause the segregation of the subject parcel associated
within LID No. 150 as presented in Exhibit A to the proposed resolution.
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Resolution for LID 150
Assessment Segregation - 1
RESOLUTION NO. ____________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PASCO,
WASHINGTON, RELATING TO LOCAL IMPROVEMENT DISTRICT NO.
150; PROVIDING FOR THE SEGREGATION OF ASSESSMENTS FOR
CERTAIN PARCELS CONSISTENT WITH RCW 35.44.410; AND,
RATIFYING AND CONFIRMING PRIOR ACTS.
WHEREAS, pursuant to Ordinance No. 4393 passed on August 20, 2018, the City Council
of the City of Pasco, Washington (the “City”), created Local Improvement District No. 150 (“LID
No. 150”) to finance the cost of constructing Chapel Hill Boulevard improvements; and
WHEREAS, the final assessment roll for LID No. 150 was confirmed by Ordinance 4429
(April 1, 2019); and
WHEREAS, subsequent to the final assessment roll confirmation, a number of properties
within the LID have been subdivided through final plat approval; and
WHEREAS, RCW 35.44.410 provides that whenever land against which there has been
levied a special assessment has been sold in part or subdivided, the legislative authority of that
City has the power to order a segregation of the assessment; and
WHEREAS, the City Council determines that assessments against the subdivided parcels
may be assessed as nearly as possible on the same basis as the original assessments were levied,
and the total of the segregated parts of the assessment equals the assessment amounts before
segregation.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PASCO, WASHINGTON, as follows:
Section 1. Assessment Segregations Approved. The following parcels in LID No. 150
are segregated for assessment as follows:
1.1 Tax Parcel 117-511-199: The assessment against this parcel is segregated
into 62 assessments against the 62 parcels as shown on attached Exhibit A (Riverhawk
Pointe II Phase 2, Tract A).
Section 2. Administration. City staff is directed to implement this Resolution and take
all actions necessary and appropriate to segregate the assessments, including recording of this
Resolution, as detailed in Exhibit A.
Section 3. Ratification. All acts prior to and consistent with this Resolution are hereby
ratified and confirmed.
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Resolution - 2
PASSED by the City Council of the City of Pasco this 17th day of May, 2021.
Saul Martinez
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Debra Barham, CMC Kerr Ferguson Law, PLLC
City Clerk City Attorney
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Exhibit A - Riverhawk Pointe II Phase 3
Acre per lot Total Assessment
Riverhawk Pointe II Phase 2, Tract A 16.45 183,888.59$ Subdivided into 62 lots
Riverhawk Pointe II Phase 3, Lot 1 0.20 3,209.18$
Riverhawk Pointe II Phase 3, Lot 2 0.18 2,888.55$
Riverhawk Pointe II Phase 3, Lot 3 0.17 2,727.67$
Riverhawk Pointe II Phase 3, Lot 4 0.17 2,727.67$
Riverhawk Pointe II Phase 3, Lot 5 0.17 2,727.67$
Riverhawk Pointe II Phase 3, Lot 6 0.17 2,727.67$
Riverhawk Pointe II Phase 3, Lot 7 0.17 2,727.67$
Riverhawk Pointe II Phase 3, Lot 8 0.17 2,727.67$
Riverhawk Pointe II Phase 3, Lot 9 0.17 2,727.67$
Riverhawk Pointe II Phase 3, Lot 10 0.17 2,727.67$
Riverhawk Pointe II Phase 3, Lot 11 0.17 2,727.67$
Riverhawk Pointe II Phase 3, Lot 12 0.17 2,727.67$
Riverhawk Pointe II Phase 3, Lot 13 0.23 3,690.58$
Riverhawk Pointe II Phase 3, Lot 14 0.21 3,369.39$
Riverhawk Pointe II Phase 3, Lot 15 0.19 3,048.86$
Riverhawk Pointe II Phase 3, Lot 16 0.18 2,888.55$
Riverhawk Pointe II Phase 3, Lot 17 0.20 3,209.18$
Riverhawk Pointe II Phase 3, Lot 18 0.19 3,048.86$
Riverhawk Pointe II Phase 3, Lot 19 0.19 3,048.86$
Riverhawk Pointe II Phase 3, Lot 20 0.19 3,048.86$
Riverhawk Pointe II Phase 3, Lot 21 0.20 3,209.18$
Riverhawk Pointe II Phase 3, Lot 22 0.19 3,048.86$
Riverhawk Pointe II Phase 3, Lot 23 0.17 2,727.67$
Riverhawk Pointe II Phase 3, Lot 24 0.17 2,727.67$
Riverhawk Pointe II Phase 3, Lot 25 0.18 2,888.55$
Riverhawk Pointe II Phase 3, Lot 26 0.19 3,048.86$
Riverhawk Pointe II Phase 3, Lot 27 0.18 2,888.55$
Riverhawk Pointe II Phase 3, Lot 28 0.17 2,727.67$
Riverhawk Pointe II Phase 3, Lot 29 0.17 2,727.67$
Riverhawk Pointe II Phase 3, Lot 30 0.20 3,209.18$
Riverhawk Pointe II Phase 3, Lot 31 0.18 2,888.55$
Riverhawk Pointe II Phase 3, Lot 32 0.18 2,888.55$
Riverhawk Pointe II Phase 3, Lot 33 0.18 2,888.55$
Riverhawk Pointe II Phase 3, Lot 34 0.18 2,888.55$
Riverhawk Pointe II Phase 3, Lot 35 0.18 2,888.55$
Riverhawk Pointe II Phase 3, Lot 36 0.18 2,888.55$
Riverhawk Pointe II Phase 3, Lot 37 0.18 2,888.55$
Riverhawk Pointe II Phase 3, Lot 38 0.18 2,888.55$
Riverhawk Pointe II Phase 3, Lot 39 0.18 2,888.55$
Riverhawk Pointe II Phase 3, Lot 40 0.18 2,888.55$
Riverhawk Pointe II Phase 3, Lot 41 0.20 3,209.18$
Riverhawk Pointe II Phase 3, Lot 42 0.20 3,209.18$
Riverhawk Pointe II Phase 3, Lot 43 0.18 2,888.55$
Riverhawk Pointe II Phase 3, Lot 44 0.19 3,048.86$
Riverhawk Pointe II Phase 3, Lot 45 0.19 3,048.86$
EXHIBIT A
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Exhibit A - Riverhawk Pointe II Phase 3
Riverhawk Pointe II Phase 3, Lot 46 0.19 3,048.86$
Riverhawk Pointe II Phase 3, Lot 47 0.19 3,048.86$
Riverhawk Pointe II Phase 3, Lot 48 0.19 3,048.86$
Riverhawk Pointe II Phase 3, Lot 49 0.19 3,048.86$
Riverhawk Pointe II Phase 3, Lot 50 0.19 3,048.86$
Riverhawk Pointe II Phase 3, Lot 51 0.19 3,048.86$
Riverhawk Pointe II Phase 3, Lot 52 0.19 3,048.86$
Riverhawk Pointe II Phase 3, Lot 53 0.19 3,048.86$
Riverhawk Pointe II Phase 3, Lot 54 0.19 3,048.86$
Riverhawk Pointe II Phase 3, Lot 55 0.19 3,048.86$
Riverhawk Pointe II Phase 3, Lot 56 0.28 4,492.83$
Riverhawk Pointe II Phase 3, Lot 57 0.18 2,888.55$
Riverhawk Pointe II Phase 3, Lot 58 0.18 2,888.55$
Riverhawk Pointe II Phase 3, Lot 59 0.17 2,727.68$
Riverhawk Pointe II Phase 3, Lot 60 0.17 2,727.68$
Riverhawk Pointe II Phase 3, Lot 61 0.17 2,727.68$
Riverhawk Pointe II Phase 3, Lot 62 0.17 2,727.68$
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AGENDA REPORT
FOR: City Council April 15, 2021
TO: Dave Zabell, City Manager City Council Regular
Meeting: 5/17/21
FROM: Steve Worley, Director
Public Works
SUBJECT: *Resolution - Sole Source Approval - PALL Filters and Associated
Equipment for West Pasco Water Treatment Plant (WPWTP)
I. REFERENCE(S):
Resolution
Sole Source Approval for PALL Membrane-Filtration Quad-Rack UNA-620A
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to approve Resolution No. _______, waiving the competitive
bidding requirements and approving the purchase of PALL Membrane -Filtration
Quad-Racks (PALL Rack) from PALL Water (a division of PALL Corporation) for
the West Pasco Municipal Water Treatment Plant (WPWTP).
III. FISCAL IMPACT:
PALL Membrane-Filtration Quad-Rack UNA-620A (2 units): Not to exceed
the sum of $2,000,000.00.
Funding Source: Drinking Water State Revolving Fund (DWSRF) low interest
construction loan as part of the West Pasco Water Treatment Plant (WPW TP)
expansion project funding.
IV. HISTORY AND FACTS BRIEF:
The City is authorized by RCW 35.23.352(9) and RCW 39.04.280(1)(a) to waive
competitive bidding of purchases from a sole source supplier and purchases
involving special facilities. As background, sole source request worksheets have
been prepared and included in this agenda packet.
Since July 2020, City staff and its consultant, RH2 Engineering, have been
designing proposed upgrades for the West Pasco Water Treatment Plant
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(WPWTP) Expansion Project #16008 as identified in the 2019 Comprehensive
Water System Plan.
The overall expansion project will include improvements to the raw water intake,
pre-treatment system, residuals handling system, backup power system, high
service pumps, and additional membrane-filtration units. These improvements
are planned for incremental expansion from the existing plant capacity of 6
million gallons per day (MGD), to 12 MGD and ultimately to a production capacity
of 18 MGD.
In evaluating the future equipment needs of the WPWTP, the design team
considered the potential for efficiency, reliability, compatibility with existing plant
systems and equipment, along with ease of operation and maintenance. The
selection of PALL Membrane-Filtration Quad-Rack is consistent with the original
design and construction this plant.
In 2009, the original membrane-filtration system for the WPWTP (i.e., 6 MGD
capacity) was competitively selected by the City in accordance with the Request
for Proposal (RFP) process. Based on the lowest and most qualified proposal,
City Council awarded the procurement of the original membrane -filtration system
to PALL Water.
When at all possible, a competitive bidding process is preferred to sole sourcing
of equipment. However, for this specific item, it was necessary to define in
advance requirements of the equipment selected that would dictate associated
infrastructure needs.
V. DISCUSSION:
As initially constructed, the WPWTP was constructed to accommodate the
installation of additional PALL Racks with uniquely sized and installed
connections to existing support systems (e.g., pipe, instrument & controls,
chemical, and air scour systems). Many, if not all, of these existing support
systems would need be reconfigured are scraped entirely to be able to
accommodate a different manufacturers’ system.
This sole source request is for additional membrane -filtration equipment to be
furnished by the construction Contractor as part of Phase 1 upgrades to the
WPWTP. The associated equipment recommended for implementation during
this phase includes 2-units of the PALL Membrane-Filtration Quad-Rack UNA-
620A system.
Staff recommends approval of the proposed resolution authorizing acquisition of
the PALL Membrane-Filtration Quad-Rack UNA-620A system for Phase 1
upgrades to the WPWTP.
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Resolution - 1
RESOLUTION NO. _______
A RESOLUTION OF THE CITY OF PASCO, WASHINGTON,
WAIVING THE COMPETITIVE BIDDING REQUIREMENTS AND
APPROVING THE PURCHASE OF PALL MEMBRANE-FILTRATION
QUAD-RACKS (PALL RACK) FROM PALL WATER (A DIVISION OF PALL
CORPORATION) FOR THE WEST PASCO MUNICIPAL WATER
TREATMENT PLANT (WPWTP).
WHEREAS, it is critical for the City to have proper microfiltration (MF) and
ultrafiltration (UF) membrane equipment to perform water treatment at the WPWTP; and
WHEREAS, the City has need to purchase two (2) PALL Racks as part of the WPWTP
expansion project; and
WHEREAS, the City currently uses the PALL Rack system as the MF and UF
technology to perform water treatment at the WPWTP; and
WHEREAS, the City competitively selected PALL Water as the supplier of the PALL
Racks at WPWTP in 2009; and
WHEREAS, the subsequent WPWTP design for incremental expansion of water
treatment capacity was based on compatibility with the PALL Rack system; and
WHEREAS, the City has determined that the use of an alternate technology or supplier
would not be consistent or compatible with existing infrastructure and equipment that is directly
affected by the selected membrane filtration system; and
WHEREAS, the design consultant for the project has identified the proposed
improvements at the WPWTP requires the purchase of the PALL Racks (i.e., Requisition Item)
system as defined in Appendix A.
WHEREAS, the Council of the City of Pasco hereby determines that the paramount
considerations in the acquisition of the PALL Rack system is compatible with existing
equipment, inventory, and proprietary/patented integration systems to PALL Water; and
WHEREAS, the use of the PALL Rack system is clearly and legitimately limited to a
single source of supply, as detailed in the Sole Source Worksheet (Exhibit A), to support current
operation standards, this purchase becomes subject to waiving competitive bidding requirements
per RCW 35.23.352(9) and RCW 39.04.280(1)(a) sole source; and
WHEREAS, RCW 39.04.280(2)(a) requires that prior to utilizing the sole source
exemption, the City Council must first adopt a resolution reciting the factual basis supporting the
exemption; and
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Resolution - 2
WHEREAS, the City Council pursuant to 39.04.280(2)(a) finds that such factual basis as
described herein and detailed in the Sole Source Worksheet, attached (Exhibit A) and
incorporated herein by this reference, does support application of the sole source exemption as
pertaining to the purchase of the PALL Rack system from PALL Water.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PASCO, WASHINGTON:
Section 1. The City Council of Pasco hereby find the above-described circumstance is
justification for the waiver of bidding requirements under the authority of RCW 35.23.352(9)
and pursuant to sole source provider (RCW 39.04.280(1)(a)) and, therefore, the bidding
requirement is hereby waived for the purchase of the PALL Rack system from Pall Water.
Section 2. That the City of Pasco Public Works Department purchase the PALL Rack
system from PALL Water for an amount not to exceed the sum of $2,000,000.
Be It Further Resolved, that this Resolution shall take effect immediately.
PASSED by the City Council of the City of Pasco, Washington, this ___ day of May
2021.
_____________________________
Saul Martinez
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ __________________________
Debra Barham, CMC Kerr Ferguson Law, PLLC
City Clerk City Attorney
Page 86 of 262
APPENDIX A
SOLE SOURCE WORKSHEET
Requisition Item: PALL Membrane-Filtration Quad-Rack –
UNA-620A Requisition No.: N/A
Prior Purchase Order Number (if item had been approved previously): N/A
1) Please describe the items and its function:
The proposed Requisition Item is the PALL Membrane-Filtration Quad-Rack – UNA-620A system
(hereinafter termed “PALL Rack”), which is a pre-engineered modular process skid that is designed
for water treatment using microfiltration (MF) and ultrafiltration (UF) membrane technology. The
PALL Rack system is comprised of 120 module spaces, with 116 normally operating membrane
modules, and one additional prefiltration strainer & valve set.
This Sole Source is for equipment to be installed as part of the proposed upgrades for the City’s
West Pasco Water Treatment Plant (WPWTP) Expansion project. This phase of the project focuses
on increasing the total WPWTP capacity (existing 6 MGD + 6 MGD expansion) to 12 MGD.
2) This is a sole source because:
☐Sole provider of a licensed or patented good or service.
☒Sole provider of items that are compatible with existing equipment, inventory, systems,
programs or services.
☐Sole provider of goods and services for which the City has established a standard.
☐Sole provider of goods or services that will meet the specialized needs of the City or
perform the intended function (please detail below or in an attachment).
☐The vendor/distributor is a holder of a used item that would represent good value and
is advantageous to the City (please attach information on market price survey,
availability, etc.).
3) What necessary features does this vendor provide which are not available from other
vendors? Please be specific.
In 2009, the original membrane filtration system for the WPWTP was competitively selected by the
City in accordance with the Request for Proposal (RFP) process. Based on the lowest and most
qualified proposal, City Council awarded the procurement of the original membrane filtration
system to PALL Water. The intent of the subsequent WPWTP design was to use the selected
manufacturer, PALL Water, for incremental expansion from 6 MGD to 12 MGD, and ultimately
18 MGD.
The WPWTP is designed to accommodate future, in-kind construction of additional PALL Racks
with uniquely sized and installed connections to existing support systems (e.g., pipe, instrument
Exhibit A
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&controls, chemical, and air scour systems). Many, if not all, of these existing support systems
would need be reconfigured to work with a different manufacturers’ system.
The existing PALL Racks have performed well, and the ability to utilize PALL Water will allow
for necessary software upgrades as part of the system expansion. The City carries 24/4/365
technical support with PALL Water, allowing staff to call in for assistance with troubleshooting
PALL Water’s proprietary proportional-integral-derivative (PID) controller. PALL Water will
provide engineered “G3” manifold and I/O banks to replace the existing “G2” models which have
been obsoleted by the manufacturer. The replacement manifolds will include additional I/O points
and solenoids to accommodate other upgrades, including new Allen-Bradley VersaView industrial
PC with new software and licenses (e.g., Windows 10, Symantec antivirus, and Wonderware).
The proposed Requisition Item includes services such as on-site start-up, commissioning, and
operator training.
Note that the intent of this Sole Source is to justify listing PALL Water as the sole source
manufacturer for the membrane filtration system in the Contract Documents for the WPWTP
Expansion project. The awarded Contractor for the project will be responsible for procurement,
installation, commissioning, and all other work associated with furnishing a complete PALL Rack
system.
4) What steps were taken to verify that these features are not available elsewhere?
☒ Other brands/manufacturers were examined (please list phone numbers and names and
explain why these were not suitable).
See response to Question 3. Other microfiltration (MF) and ultrafiltration (UF) manufactures may
be able to provide similar technology for water treatment, but the existing plant layout and software
may need to be reconfigured to accommodate an alternative system. Use of an alternative
technology or supplier would not be consistent with existing equipment at the WPWTP and would
not fulfill the intent of the project.
Additional MF and UF manufactures did not need to be evaluated for compatibility. The
Requisition Item includes instrumentation, mechanical, structural, and process components that are
specific and/or proprietary to PALL Water, and the PALL Membrane-Filtration Quad-Rack –
UNA-620A system is currently used at the WPWTP.
☐ Other vendors were contacted (please list phone numbers and names, and explain why
these were not suitable).
5) Sole source vendor certifies that the City is getting the lowest price offered for the item.
• Project Cost: $1,500,000 to $2,000,000
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Certification of Need
This recommendation for sole source is based upon on objective review of the product/service required
and appears to be in the best interest of the City. I know of no conflict of interest on my part of personal
involvement in any way with this request. No gratuities, favors or comprising actions have been taken.
Neither has my personal familiarity with particular brands, types or equipment, materials or firm been a
deciding influence on my request to sole source this purchase.
By: _________________________________________________ Date: __________________
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AGENDA REPORT
FOR: City Council April 27, 2021
TO: Dave Zabell, City Manager City Council Regular
Meeting: 5/17/21
FROM: Steve Worley, Director
Public Works
SUBJECT: *Resolution - Bid Award for WWTP Phase 1 (Rebid)
I. REFERENCE(S):
Resolution
Bid Tabs
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to approve Resolution No. _______, awarding Bid No. 19072
for the Wastewater Treatment Plant (WWTP) Improvements Phase 1 project, to
Clearwater Construction & Management of Spokane, Washington in the amount
of $17,937,787.80, including Washington State Sales Tax and further authorize
the City Manager to execute the contract documents and allowing all necessary
budget adjustments.
III. FISCAL IMPACT:
Contract Total: $17,937,787.80
This project is being funded through low-interest loans from the Washington
State Department of Ecology.
IV. HISTORY AND FACTS BRIEF:
of consists project I Phase Treatment Plant Wastewater The (WWPT)
improvements and modifications to the City's existing municipal WWTP which
includes; furnishing all labor, materials and equipment necessary for the
construction of new primary effluent structures and piping, two new aeration
basins, alterations to two existing aeration basins, a blower building expansion,
addition of two new blowers, modifications to two existing blowers, RAS pump
system flowmeter distribution improvements, a new effluent facility,
approximately 1,150 feet of new 42 -inch diameter outfall piping, new primary
power switchgear, associated electrical and control systems, associated site
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work and yard piping, and other appurtenances as necessary to complete the
project. The WWTP improvements also include the demolition of the existing
trickling filter and select items.
V. DISCUSSION:
A formal request for bids (Bid No. 19072) for the Wastewater Treatment Plant
(WWTP) Improvements, Phase 1 project was issued January 12, 2021. Three
bids were received and opened on March 3, 2021. After careful review, the City
rejected all bids and determined to rebid the project.
A second formal request for bids for this project (Bid No. 19072) was issued on
April 9, 2021. Two bids were received and opened on May 7, 2021. The lowest
responsive bid was from Clearwater Construction & Management in the amount
of $17,937,787.80, including Washington State Sales Tax.
The Engineer’s construction estimate was $22,398,999.78.
After review of the bid submittal and finding no exceptions or irregularities, staff
recommends awarding the bid to Clearwater Construction & Management, LLC
of Spokane, WA.
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Resolution - 1
RESOLUTION NO. _________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PASCO,
WASHINGTON, AWARDING BID NO. 19072 FOR THE WASTEWATER
TREATMENT PLANT (WWTP) IMPROVEMENTS PHASE 1 PROJECT, TO
CLEARWATER CONSTRUCTION & MANAGEMENT OF SPOKANE,
WASHINGTON IN THE AMOUNT OF $17,937,787.80, INCLUDING
WASHINGTON STATE SALES TAX AND FURTHER AUTHORIZE THE
CITY MANAGER TO EXECUTE THE CONTRACT DOCUMENTS AND
ALLOWING ALL NECESSARY BUDGET ADJUSTMENTS.
WHEREAS, the City of Pasco has an identified capital improvement public works project
described as the WWTP Improvements Phase 1 project; and
WHEREAS, the City solicited sealed public bids for this capital improvement public
works project, identified as Bid No. 19072 WWTP Improvements Phase 1 project on March 3,
2021 at 2:00 p.m.; and
WHEREAS, pursuant to RCW 35.23.352, the City Council by resolution 4045 on April 5,
2021 rejected all bids, and authorized further calls for bids in the same manner as the original call;
and
WHEREAS, the City resolicited sealed public bids for this project (Rebid), identified as
Bid No. 19072 WWTP Improvements Phase 1 project; and
WHEREAS, on May 7, 2021 at 2:00 p.m., two (2) bids were received and opened by the
City; and
WHEREAS, the low bid was from Clearwater Construction & Management in the amount
of $17,937,787.80, including Washington State Sales Tax. The Engineer’s construction estimate
was $22,398,999.78; and
WHEREAS, the bid documentations were reviewed and the lowest bidder was determined
to be responsible and responsive.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PASCO, WASHINGTON:
That the City awards the construction contract for Bid No. 19072, Wastewater Treatment
Plant Improvement – Phase 1 project, to Clearwater Construction & Management of Spokane,
Washington in the amount of $17,937,787.80, including Washington State Sales Tax and further
authorize the City Manager to execute the contract documents and allowing all necessary budget
adjustments; and
Be It Further Resolved, that this Resolution shall take effect and be in full force
immediately upon passage by the City Council.
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Resolution - 2
PASSED by the City Council of the City of Pasco, Washington this day of May,
2021.
Saul Martinez
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Debra Barham, CMC Kerr Ferguson Law, PLLC
City Clerk City Attorney
Page 93 of 262
Bid Tabulations ‐ WWTP Improvements, Phase 1Contract #19072Bid Date: May 7, 2021Contractor: Contractor:Engineer's EstimateItem No.Description Quant Unit Unit Price Total AmountUnit Price Total Amount Unit Price Total Amount1Trench/Excavation Safety Systems 1 LS $2,700,000.00 $ 2,700,000.00 $ 10,000.00 10,000.00$ 20,000.00$ 20,000.00$ 2Project Improvements, Complete & Operational 1 LS $17,925,230.00 $ 17,925,230.00 $ 16,507,300.00 16,507,300.00$ 19,012,050.00$ 19,012,050.00$ Subtotal: 20,625,230.00$ 16,517,300.00$ 19,032,050.00$ WA St Sales Tax (8.6%): 1,773,769.78$ 1,420,487.80$ 1,636,756.30$ GRAND TOTAL: 22,398,999.78$ 17,937,787.80$ 20,668,806.30$ Competitive bids were opened on May 7, 2021. All bids havebeen reviewed by this office, and all unbalanced bids checked.I recommend the contract be awarded to:Clearwater Construction & Management, LLC______________ _____________________________________ Date Project Manager 5% Bid Bond 5% Bid BondClearwater Construction & Mgmt, LLC McClure & Sons5/11/2021Page 94 of 262
AGENDA REPORT
FOR: City Council January 12, 2017
TO: Dave Zabell, City Manager City Council Regular
Meeting: 5/17/21
FROM: Richa Sigdel, Finance Director
Finance
SUBJECT: *Resolution - Acceptance of American Rescue Plan Act
I. REFERENCE(S):
Proposed Resolution
Fact Sheet
Interim Final Rule
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to approve Resolution No. ______, accepting City of Pasco's
allocation from the American Rescue Plan Act of 2021 funding for Coronavirus
Relief funds for local government and authorizing the City Manager, or his
designee, authority to legally bind the City of Pasco, Washington for the sole
purpose of requesting Federal Reimbursement.
III. FISCAL IMPACT:
General Fund - $17,464,312.00 (In two allocations with first half deposited on
2021)
IV. HISTORY AND FACTS BRIEF:
On March 12, 2021, President Biden signed into law the American Rescue Plan
Act of 2021 (ARPA, HR 1319). The Act provides over $350 billion to States,
Counties, Tribal Governments, Territories, and Cities, with a total of $17,464,312
allocated to the City of Pasco in two equal installments during the calendar years
2021 and 2022.
V. DISCUSSION:
In order to receive the aforementioned funding, Council is required to authorize
the request for funding from the United States Department of Treasury. The
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proposed resolution authorizes the City Manager or designee to make said
request. Staff recommends approval of the proposed resolution.
Page 96 of 262
Resolution No. ARPA Grant Funding - 1
RESOLUTION NO. ____
A RESOLUTION OF THE CITY OF PASCO, WASHINGTON,
ACCEPTING CITY OF PASCO’S ALLOCATION FROM THE AMERICAN
RESCUE PLAN ACT OF 2021 FUNDING FOR CORONAVIRUS RELIEF
FUNDS FOR LOCAL GOVERNMENT AND AUTHORIZING THE CITY
MANAGER, OR HIS DESIGNEE, AUTHORITY TO LEGALLY BIND THE
CITY OF PASCO, WASHINGTON FOR THE SOLE PURPOSE OF
REQUESTING FEDERAL REIMBURSEMENT.
WHEREAS, the United States Senate had passed the American Rescue Plan Act of 2021
(ARPA, HR 1319) on March 6, 2021. On March 10, 2021, the House passed the Senate
amendments to the bill; and
WHEREAS, the United States Congress-passed legislation was passed by President Biden
on March 12, 2021; and
WHEREAS, the Act provides over $350 billion to States, Counties, Tribal Governments,
Territories, and Cities; and
WHEREAS, the City of Pasco will receive $17,464,312 in two installments during the
calendar years 2021 and 2022.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PASCO, WASHINGTON:
Section 1. That the City Council does authorize and direct the City Manager, or his
designee, authority to legally bind the City of Pasco, Washington for the sole purpose of requesting
federal reimbursement through the American Rescue Plan Act funding.
PASSED by the City Council of the City of Pasco, Washington, this ____ of _____, 2021.
Saul Martinez
Mayor
ATTEST: APPROVED AS TO FORM:
_________________________________ ________________________________
Debra Barham, CMC Kerr Ferguson Law, PLLC
City Clerk City Attorney
Page 97 of 262
1
FACT SHEET: The Coronavirus State and Local Fiscal Recovery Funds Will Deliver
$350 Billion for State, Local, Territorial, and Tribal Governments to Respond to the
COVID-19 Emergency and Bring Back Jobs
May 10, 2021
Aid to state, local, territorial, and Tribal governments will help turn the tide on the pandemic, address its
economic fallout, and lay the foundation for a strong and equitable recovery
Today, the U.S. Department of the Treasury announced the launch of the Coronavirus State and Local
Fiscal Recovery Funds, established by the American Rescue Plan Act of 2021, to provide $350 billion in
emergency funding for eligible state, local, territorial, and Tribal governments. Treasury also released
details on how these funds can be used to respond to acute pandemic response needs, fill revenue
shortfalls among these governments, and support the communities and populations hardest-hit by the
COVID-19 crisis. With the launch of the Coronavirus State and Local Fiscal Recovery Funds, eligible
jurisdictions will be able to access this funding in the coming days to address these needs.
State, local, territorial, and Tribal governments have been on the frontlines of responding to the
immense public health and economic needs created by this crisis – from standing up vaccination sites to
supporting small businesses – even as these governments confronted revenue shortfalls during the
downturn. As a result, these governments have endured unprecedented strains, forcing many to make
untenable choices between laying off educators, firefighters, and other frontline workers or failing to
provide other services that communities rely on. Faced with these challenges, state and local
governments have cut over 1 million jobs since the beginning of the crisis. The experience of prior
economic downturns has shown that budget pressures like these often result in prolonged fiscal
austerity that can slow an economic recovery.
To support the immediate pandemic response, bring back jobs, and lay the groundwork for a strong and
equitable recovery, the American Rescue Plan Act of 2021 established the Coronavirus State and Local
Fiscal Recovery Funds, designed to deliver $350 billion to state, local, territorial, and Tribal governments
to bolster their response to the COVID-19 emergency and its economic impacts. Today, Treasury is
launching this much-needed relief to:
• Support urgent COVID-19 response efforts to continue to decrease spread of the virus and bring
the pandemic under control;
• Replace lost public sector revenue to strengthen support for vital public services and help retain
jobs;
• Support immediate economic stabilization for households and businesses; and,
• Address systemic public health and economic challenges that have contributed to the inequal
impact of the pandemic on certain populations.
The Coronavirus State and Local Fiscal Recovery Funds provide substantial flexibility for each jurisdiction
to meet local needs—including support for households, small businesses, impacted industries, essential
workers, and the communities hardest-hit by the crisis. These funds also deliver resources that
recipients can invest in building, maintaining, or upgrading their water, sewer, and broadband
infrastructure.
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Starting today, eligible state, territorial, metropolitan city, county, and Tribal governments may request
Coronavirus State and Local Fiscal Recovery Funds through the Treasury Submission Portal. Concurrent
with this program launch, Treasury has published an Interim Final Rule that implements the provisions
of this program.
FUNDING AMOUNTS
The American Rescue Plan provides a total of $350 billion in Coronavirus State and Local Fiscal Recovery
Funds to help eligible state, local, territorial, and Tribal governments meet their present needs and build
the foundation for a strong recovery. Congress has allocated this funding to tens of thousands of
jurisdictions. These allocations include:
Type
Amount
($ billions)
States & District of Columbia $195.3
Counties $65.1
Metropolitan Cites $45.6
Tribal Governments $20.0
Territories $4.5
Non-Entitlement Units of
Local Government
$19.5
Treasury expects to distribute these funds directly to each state, territorial, metropolitan city, county,
and Tribal government. Local governments that are classified as non-entitlement units will receive this
funding through their applicable state government. Treasury expects to provide further guidance on
distributions to non-entitlement units next week.
Local governments should expect to receive funds in two tranches, with 50% provided beginning in May
2021 and the balance delivered 12 months later. States that have experienced a net increase in the
unemployment rate of more than 2 percentage points from February 2020 to the latest available data as
of the date of certification will receive their full allocation of funds in a single payment; other states will
receive funds in two equal tranches. Governments of U.S. territories will receive a single payment.
Tribal governments will receive two payments, with the first payment available in May and the second
payment, based on employment data, to be delivered in June 2021.
USES OF FUNDING
Coronavirus State and Local Fiscal Recovery Funds provide eligible state, local, territorial, and Tribal
governments with a substantial infusion of resources to meet pandemic response needs and rebuild a
stronger, more equitable economy as the country recovers. Within the categories of eligible uses,
recipients have broad flexibility to decide how best to use this funding to meet the needs of their
communities. Recipients may use Coronavirus State and Local Fiscal Recovery Funds to:
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3
• Support public health expenditures, by funding COVID-19 mitigation efforts, medical expenses,
behavioral healthcare, and certain public health and safety staff;
• Address negative economic impacts caused by the public health emergency, including
economic harms to workers, households, small businesses, impacted industries, and the public
sector;
• Replace lost public sector revenue, using this funding to provide government services to the
extent of the reduction in revenue experienced due to the pandemic;
• Provide premium pay for essential workers, offering additional support to those who have
borne and will bear the greatest health risks because of their service in critical infrastructure
sectors; and,
• Invest in water, sewer, and broadband infrastructure, making necessary investments to
improve access to clean drinking water, support vital wastewater and stormwater
infrastructure, and to expand access to broadband internet.
Within these overall categories, Treasury’s Interim Final Rule provides guidelines and principles for
determining the types of programs and services that this funding can support, together with examples
of allowable uses that recipients may consider. As described below, Treasury has also designed these
provisions to take into consideration the disproportionate impacts of the COVID-19 public health
emergency on those hardest-hit by the pandemic.
1. Supporting the public health response
Mitigating the impact of COVID-19 continues to require an unprecedented public health response from
state, local, territorial, and Tribal governments. Coronavirus State and Local Fiscal Recovery Funds
provide resources to meet these needs through the provision of care for those impacted by the virus
and through services that address disparities in public health that have been exacerbated by the
pandemic. Recipients may use this funding to address a broad range of public health needs across
COVID-19 mitigation, medical expenses, behavioral healthcare, and public health resources. Among
other services, these funds can help support:
• Services and programs to contain and mitigate the spread of COVID-19, including:
Vaccination programs
Medical expenses
Testing
Contact tracing
Isolation or quarantine
PPE purchases
Support for vulnerable populations to
access medical or public health services
Public health surveillance (e.g.,
monitoring for variants)
Enforcement of public health orders
Public communication efforts
Enhancement of healthcare capacity,
including alternative care facilities
Support for prevention, mitigation, or
other services in congregate living
facilities and schools
Enhancement of public health data
systems
Capital investments in public facilities to
meet pandemic operational needs
Ventilation improvements in key settings
like healthcare facilities
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• Services to address behavioral healthcare needs exacerbated by the pandemic, including:
Mental health treatment
Substance misuse treatment
Other behavioral health services
Hotlines or warmlines
Crisis intervention
Services or outreach to promote access
to health and social services
• Payroll and covered benefits expenses for public health, healthcare, human services, public
safety and similar employees, to the extent that they work on the COVID-19 response. For
public health and safety workers, recipients can use these funds to cover the full payroll and
covered benefits costs for employees or operating units or divisions primarily dedicated to the
COVID-19 response.
2. Addressing the negative economic impacts caused by the public health emergency
The COVID-19 public health emergency resulted in significant economic hardship for many Americans.
As businesses closed, consumers stayed home, schools shifted to remote education, and travel declined
precipitously, over 20 million jobs were lost between February and April 2020. Although many have
since returned to work, as of April 2021, the economy remains more than 8 million jobs below its pre-
pandemic peak, and more than 3 million workers have dropped out of the labor market altogether since
February 2020.
To help alleviate the economic hardships caused by the pandemic, Coronavirus State and Local Fiscal
Recovery Funds enable eligible state, local, territorial, and Tribal governments to provide a wide range
of assistance to individuals and households, small businesses, and impacted industries, in addition to
enabling governments to rehire public sector staff and rebuild capacity. Among these uses include:
• Delivering assistance to workers and families, including aid to unemployed workers and job
training, as well as aid to households facing food, housing, or other financial insecurity. In
addition, these funds can support survivor’s benefits for family members of COVID-19 victims.
• Supporting small businesses, helping them to address financial challenges caused by the
pandemic and to make investments in COVID-19 prevention and mitigation tactics, as well as to
provide technical assistance. To achieve these goals, recipients may employ this funding to
execute a broad array of loan, grant, in-kind assistance, and counseling programs to enable
small businesses to rebound from the downturn.
• Speeding the recovery of the tourism, travel, and hospitality sectors, supporting industries that
were particularly hard-hit by the COVID-19 emergency and are just now beginning to mend.
Similarly impacted sectors within a local area are also eligible for support.
• Rebuilding public sector capacity, by rehiring public sector staff and replenishing
unemployment insurance (UI) trust funds, in each case up to pre-pandemic levels. Recipients
may also use this funding to build their internal capacity to successfully implement economic
relief programs, with investments in data analysis, targeted outreach, technology infrastructure,
and impact evaluations.
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3. Serving the hardest-hit communities and families
While the pandemic has affected communities across the country, it has disproportionately impacted
low-income families and communities of color and has exacerbated systemic health and economic
inequities. Low-income and socially vulnerable communities have experienced the most severe health
impacts. For example, counties with high poverty rates also have the highest rates of infections and
deaths, with 223 deaths per 100,000 compared to the U.S. average of 175 deaths per 100,000.
Coronavirus State and Local Fiscal Recovery Funds allow for a broad range of uses to address the
disproportionate public health and economic impacts of the crisis on the hardest-hit communities,
populations, and households. Eligible services include:
• Addressing health disparities and the social determinants of health, through funding for
community health workers, public benefits navigators, remediation of lead hazards, and
community violence intervention programs;
• Investments in housing and neighborhoods, such as services to address individuals
experiencing homelessness, affordable housing development, housing vouchers, and residential
counseling and housing navigation assistance to facilitate moves to neighborhoods with high
economic opportunity;
• Addressing educational disparities through new or expanded early learning services, providing
additional resources to high-poverty school districts, and offering educational services like
tutoring or afterschool programs as well as services to address social, emotional, and mental
health needs; and,
• Promoting healthy childhood environments, including new or expanded high quality childcare,
home visiting programs for families with young children, and enhanced services for child
welfare-involved families and foster youth.
Governments may use Coronavirus State and Local Fiscal Recovery Funds to support these additional
services if they are provided:
• within a Qualified Census Tract (a low-income area as designated by the Department of Housing
and Urban Development);
• to families living in Qualified Census Tracts;
• by a Tribal government; or,
• to other populations, households, or geographic areas disproportionately impacted by the
pandemic.
4. Replacing lost public sector revenue
State, local, territorial, and Tribal governments that are facing budget shortfalls may use Coronavirus
State and Local Fiscal Recovery Funds to avoid cuts to government services. With these additional
resources, recipients can continue to provide valuable public services and ensure that fiscal austerity
measures do not hamper the broader economic recovery.
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Many state, local, territorial, and Tribal governments have experienced significant budget shortfalls,
which can yield a devastating impact on their respective communities. Faced with budget shortfalls and
pandemic-related uncertainty, state and local governments cut staff in all 50 states. These budget
shortfalls and staff cuts are particularly problematic at present, as these entities are on the front lines of
battling the COVID-19 pandemic and helping citizens weather the economic downturn.
Recipients may use these funds to replace lost revenue. Treasury’s Interim Final Rule establishes a
methodology that each recipient can use to calculate its reduction in revenue. Specifically, recipients
will compute the extent of their reduction in revenue by comparing their actual revenue to an
alternative representing what could have been expected to occur in the absence of the pandemic.
Analysis of this expected trend begins with the last full fiscal year prior to the public health emergency
and projects forward at either (a) the recipient’s average annual revenue growth over the three full
fiscal years prior to the public health emergency or (b) 4.1%, the national average state and local
revenue growth rate from 2015-18 (the latest available data).
For administrative convenience, Treasury’s Interim Final Rule allows recipients to presume that any
diminution in actual revenue relative to the expected trend is due to the COVID-19 public health
emergency. Upon receiving Coronavirus State and Local Fiscal Recovery Funds, recipients may
immediately calculate the reduction in revenue that occurred in 2020 and deploy funds to address any
shortfall. Recipients will have the opportunity to re-calculate revenue loss at several points through the
program, supporting those entities that experience a lagged impact of the crisis on revenues.
Importantly, once a shortfall in revenue is identified, recipients will have broad latitude to use this
funding to support government services, up to this amount of lost revenue.
5. Providing premium pay for essential workers
Coronavirus State and Local Fiscal Recovery Funds provide resources for eligible state, local, territorial,
and Tribal governments to recognize the heroic contributions of essential workers. Since the start of the
public health emergency, essential workers have put their physical well-being at risk to meet the daily
needs of their communities and to provide care for others.
Many of these essential workers have not received compensation for the heightened risks they have
faced and continue to face. Recipients may use this funding to provide premium pay directly, or through
grants to private employers, to a broad range of essential workers who must be physically present at
their jobs including, among others:
Staff at nursing homes, hospitals,
and home-care settings
Workers at farms, food production
facilities, grocery stores, and restaurants
Janitors and sanitation workers
Public health and safety staff
Truck drivers, transit staff, and
warehouse workers
Childcare workers, educators, and school
staff
Social service and human services staff
Treasury’s Interim Final Rule emphasizes the need for recipients to prioritize premium pay for lower
income workers. Premium pay that would increase a worker’s total pay above 150% of the greater of
the state or county average annual wage requires specific justification for how it responds to the needs
of these workers.
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In addition, employers are both permitted and encouraged to use Coronavirus State and Local Fiscal
Recovery Funds to offer retrospective premium pay, recognizing that many essential workers have not
yet received additional compensation for work performed. Staff working for third-party contractors in
eligible sectors are also eligible for premium pay.
6. Investing in water and sewer infrastructure
Recipients may use Coronavirus State and Local Fiscal Recovery Funds to invest in necessary
improvements to their water and sewer infrastructures, including projects that address the impacts of
climate change.
Recipients may use this funding to invest in an array of drinking water infrastructure projects, such as
building or upgrading facilities and transmission, distribution, and storage systems, including the
replacement of lead service lines.
Recipients may also use this funding to invest in wastewater infrastructure projects, including
constructing publicly-owned treatment infrastructure, managing and treating stormwater or subsurface
drainage water, facilitating water reuse, and securing publicly-owned treatment works.
To help jurisdictions expedite their execution of these essential investments, Treasury’s Interim Final
Rule aligns types of eligible projects with the wide range of projects that can be supported by the
Environmental Protection Agency’s Clean Water State Revolving Fund and Drinking Water State
Revolving Fund. Recipients retain substantial flexibility to identify those water and sewer infrastructure
investments that are of the highest priority for their own communities.
Treasury’s Interim Final Rule also encourages recipients to ensure that water, sewer, and broadband
projects use 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.
7. Investing in broadband infrastructure
The pandemic has underscored the importance of access to universal, high-speed, reliable, and
affordable broadband coverage. Over the past year, millions of Americans relied on the internet to
participate in remote school, healthcare, and work.
Yet, by at least one measure, 30 million Americans live in areas where there is no broadband service or
where existing services do not deliver minimally acceptable speeds. For millions of other Americans, the
high cost of broadband access may place it out of reach. The American Rescue Plan aims to help remedy
these shortfalls, providing recipients with flexibility to use Coronavirus State and Local Fiscal Recovery
Funds to invest in broadband infrastructure.
Recognizing the acute need in certain communities, Treasury’s Interim Final Rule provides that
investments in broadband be made in areas that are currently unserved or underserved—in other
words, lacking a wireline connection that reliably delivers minimum speeds of 25 Mbps download and 3
Mbps upload. Recipients are also encouraged to prioritize projects that achieve last-mile connections to
households and businesses.
Using these funds, recipients generally should build broadband infrastructure with modern technologies
in mind, specifically those projects that deliver services offering reliable 100 Mbps download and 100
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8
Mbps upload speeds, unless impracticable due to topography, geography, or financial cost. In addition,
recipients are encouraged to pursue fiber optic investments.
In view of the wide disparities in broadband access, assistance to households to support internet access
or digital literacy is an eligible use to respond to the public health and negative economic impacts of the
pandemic, as detailed above.
8. Ineligible Uses
Coronavirus State and Local Fiscal Recovery Funds provide substantial resources to help eligible state,
local, territorial, and Tribal governments manage the public health and economic consequences of
COVID-19. Recipients have considerable flexibility to use these funds to address the diverse needs of
their communities.
To ensure that these funds are used for their intended purposes, the American Rescue Plan Act also
specifies two ineligible uses of funds:
• States and territories may not use this funding to directly or indirectly offset a reduction in net
tax revenue due to a change in law from March 3, 2021 through the last day of the fiscal year
in which the funds provided have been spent. The American Rescue Plan ensures that funds
needed to provide vital services and support public employees, small businesses, and families
struggling to make it through the pandemic are not used to fund reductions in net tax revenue.
Treasury’s Interim Final Rule implements this requirement. If a state or territory cuts taxes, they
must demonstrate how they paid for the tax cuts from sources other than Coronavirus State
Fiscal Recovery Funds—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 paid back to the Treasury.
• No recipient may use this funding to make a deposit to a pension fund. Treasury’s Interim
Final Rule 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 for employees whose wages and salaries are an
eligible use of funds.
Treasury’s Interim Final Rule identifies several other ineligible uses, including funding debt service, legal
settlements or judgments, and deposits to rainy day funds or financial reserves. Further, general
infrastructure spending is not covered as an eligible use outside of water, sewer, and broadband
investments or above the amount allocated under the revenue loss provision. While the program offers
broad flexibility to recipients to address local conditions, these restrictions will help ensure that funds
are used to augment existing activities and address pressing needs.
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DEPARTMENT OF THE TREASURY
31 CFR Part 35
RIN 1505-AC77
Coronavirus State and Local Fiscal Recovery Funds
AGENCY: Department of the Treasury
ACTION: Interim Final Rule
SUMMARY: The Secretary of the Treasury (Treasury) is issuing this Interim Final Rule to
implement the Coronavirus State Fiscal Recovery Fund and the Coronavirus Local Fiscal
Recovery Fund established under the American Rescue Plan Act.
DATES: Effective date: The provisions in this Interim Final Rule are effective [____], 2021.
Comment date: Comments must be received on or before [____], 2021.
ADDRESSES: Please submit comments electronically through the Federal eRulemaking Portal:
http://www.regulations.gov [(if hard copy, preferably an original and two copies to the [Office of
the Undersecretary for Domestic Finance], Attention: [Name], Room [####] MT, Department of
the Treasury, 1500 Pennsylvania Avenue, NW, Washington, DC 20220. Because postal mail
may be subject to processing delay, it is recommended that comments be submitted
electronically.] All comments should be captions with “Coronavirus State and Local Fiscal
Recovery Funds Interim Final Rule Comments.” Please include your name, organization
affiliation, address, email address and telephone number in your comment. Where appropriate, a
comment should include a short executive summary (no more than [#] single-spaced pages).]
In general, comments received will be posted on http://www.regulations.gov without change,
including any business or personal information provided. Comments received, including
attachments and other supporting materials, will be part of the public record and subject to public
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disclosure. Do not enclose any information in your comment or supporting materials that you
consider confidential or inappropriate for public disclosure.
FOR FURTHER INFORMATION CONTACT:
[Name], [Title], [Office], 202-622-[####], or [Name], [Title], [Office], 202-622-[####].
SUPPLEMENTARY INFORMATION:
I. Background Information
A. Overview
Since the first case of coronavirus disease 2019 (COVID-19) was discovered in the
United States in January 2020, the disease has infected over 32 million and killed over 575,000
Americans.1 The disease has impacted every part of life: as social distancing became a
necessity, businesses closed, schools transitioned to remote education, travel was sharply
reduced, and millions of Americans lost their jobs. In April 2020, the national unemployment
rate reached its highest level in over seventy years following the most severe month-over-month
decline in employment on record. 2 As of April 2021, there were still 8.2 million fewer jobs than
before the pandemic.3 During this time, a significant share of households have faced food and
housing insecurity.4 Economic disruptions impaired the flow of credit to households, State and
1 Centers for Disease Control and Prevention, COVID Data Tracker, http://www.covid.cdc.gov/covid-
data-tracker/#datatracker-home (last visited May 8, 2021).
2 U.S. Bureau of Labor Statistics, Unemployment Rate [UNRATE], retrieved from FRED, Federal
Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/UNRATE, May 3, 2021. U.S. Bureau of
Labor Statistics, Employment Level [LNU02000000], retrieved from FRED, Federal Reserve Bank of St.
Louis; https://fred.stlouisfed.org/series/LNU02000000, May 3, 2021.
3 U.S. Bureau of Labor Statistics, All Employees, Total Nonfarm [PAYEMS], retrieved from FRED,
Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/PAYEMS, May 7, 2021.
4 Nirmita Panchal et al., The Implications of COVID-19 for Mental Health and Substance Abuse (Feb. 10,
2021), https://www.kff.org/coronavirus-covid-19/issue-brief/the-implications-of-covid-19-for-mental-
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local governments, and businesses of all sizes.5 As businesses weathered closures and sharp
declines in revenue, many were forced to shut down, especially small businesses.6
Amid this once-in-a-century crisis, State, territorial, Tribal, and local governments (State,
local, and Tribal governments) have been called on to respond at an immense scale.
Governments have faced myriad needs to prevent and address the spread of COVID-19,
including testing, contact tracing, isolation and quarantine, public communications, issuance and
enforcement of health orders, expansions to health system capacity like alternative care facilities,
and in recent months, a massive nationwide mobilization around vaccinations. Governments
also have supported major efforts to prevent COVID-19 spread through safety measures in
settings like nursing homes, schools, congregate living settings, dense worksites, incarceration
settings, and public facilities. The pandemic’s impacts on behavioral health, including the toll of
pandemic-related stress, have increased the need for behavioral health resources.
At the same time, State, local and Tribal governments launched major efforts to address
the economic impacts of the pandemic. These efforts have been tailored to the needs of their
communities and have included expanded assistance to unemployed workers; food assistance;
health-and-substance-
use/#:~:text=Older%20adults%20are%20also%20more,prior%20to%20the%20current%20crisis; U.S.
Census Bureau, Household Pulse Survey: Measuring Social and Economic Impacts during the
Coronavirus Pandemic, https://www.census.gov/programs-surveys/household-pulse-survey.html (last
visited Apr. 26, 2021); Rebecca T. Leeb et al., Mental Health-Related Emergency Department Visits
Among Children Aged <18 Years During the COVID Pandemic – United States, January 1 – October 17,
2020, Morb. Mortal. Wkly. Rep. 69(45):1675-80 (Nov. 13, 2020),
https://www.cdc.gov/mmwr/volumes/69/wr/mm6945a3.htm.
5 Board of Governors of the Federal Reserve System, Monetary Policy Report (June 12, 2020),
https://www.federalreserve.gov/monetarypolicy/2020-06-mpr-summary.htm.
6 Joseph R. Biden, Remarks by President Biden on Helping Small Businesses (Feb. 22, 2021),
https://www.whitehouse.gov/briefing-room/speeches-remarks/2021/02/22/remarks-by-president-biden-
on-helping-small-businesses/.
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rent, mortgage, and utility support; cash assistance; internet access programs; expanded services
to support individuals experiencing homelessness; support for individuals with disabilities and
older adults; and assistance to small businesses facing closures or revenue loss or implementing
new safety measures.
In responding to the public health emergency and its negative economic impacts, State,
local, and Tribal governments have seen substantial increases in costs to provide these services,
often amid substantial declines in revenue due to the economic downturn and changing economic
patterns during the pandemic.7 Facing these budget challenges, many State, local, and Tribal
governments have been forced to make cuts to services or their workforces, or delay critical
investments. From February to May of 2020, State, local, and Tribal governments reduced their
workforces by more than 1.5 million jobs and, in April of 2021, State, local, and Tribal
government employment remained nearly1.3 million jobs below pre-pandemic levels.8 These
cuts to State, local, and Tribal government workforces come at a time when demand for
government services is high, with State, local, and Tribal governments on the frontlines of
fighting the pandemic. Furthermore, State, local, and Tribal government austerity measures can
hamper overall economic growth, as occurred in the recovery from the Great Recession.9
7 Michael Leachman, House Budget Bill Provides Needed Fiscal Aid for States, Localities, Tribal
Nations, and Territories (Feb. 10, 2021), https://www.cbpp.org/research/state-budget-and-tax/house-
budget-bill-provides-needed-fiscal-aid-for-states-localities.
8 U.S. Bureau of Labor Statistics, All Employees, State Government [CES9092000001] and All
Employees, Local Government [CES9093000001], retrieved from FRED, Federal Reserve Bank of St.
Louis, https://fred.stlouisfed.org/series/CES9092000001 and
https://fred.stlouisfed.org/series/CES9093000001 (last visited May 8, 2021).
9 Tracy Gordon, State and Local Budgets and the Great Recession, Brookings Institution (Dec. 31, 2012),
http://www.brookings.edu/articles/state-and-local-budgets-and-the-great-recession.
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Finally, although the pandemic’s impacts have been widespread, both the public health
and economic impacts of the pandemic have fallen most severely on communities and
populations disadvantaged before it began. Low-income communities, people of color, and
Tribal communities have faced higher rates of infection, hospitalization, and death,10 as well as
higher rates of unemployment and lack of basic necessities like food and housing.11 Pre-existing
social vulnerabilities magnified the pandemic in these communities, where a reduced ability to
work from home and, frequently, denser housing amplified the risk of infection. Higher rates of
pre-existing health conditions also may have contributed to more severe COVID-19 health
outcomes.12 Similarly, communities or households facing economic insecurity before the
pandemic were less able to weather business closures, job losses, or declines in earnings and
were less able to participate in remote work or education due to the inequities in access to
reliable and affordable broadband infrastructure.13 Finally, though schools in all areas faced
challenges, those in high poverty areas had fewer resources to adapt to remote and hybrid
10 Sebastian D. Romano et al., Trends in Racial and Ethnic Disparities in COVID-19 Hospitalizations, by
Region – United States, March-December 2020, MMWR Morb Mortal Wkly Rep 2021, 70:560-565 (Apr.
16, 2021), https://www.cdc.gov/mmwr/volumes/70/wr/mm7015e2.htm?s_cid=mm7015e2_w.
11 Center on Budget and Policy Priorities, Tracking the COVID-19 Recession’s Effects on Food, Housing,
and Employment Hardships, https://www.cbpp.org/research/poverty-and-inequality/tracking-the-covid-
19-recessions-effects-on-housing-and (last visited May 4, 2021).
12 Lisa R. Fortuna et al., Inequity and the Disproportionate Impact of COVID-19 on Communities of
Color in the United States: The Need for Trauma-Informed Social Justice Response, Psychological
Trauma Vol. 12(5):443-45 (2020), available at https://psycnet.apa.org/fulltext/2020-37320-001.pdf.
13 Emily Vogles et al., 53% of Americans Say the Internet Has Been Essential During the COVID-19
Outbreak (Apr. 30, 2020), https://www.pewresearch.org/internet/2020/04/30/53-of-americans-say-the-
internet-has-been-essential-during-the-covid-19-outbreak/.
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learning models.14 Unfortunately, the pandemic also has reversed many gains made by
communities of color in the prior economic expansion.15
B. The Statute and Interim Final Rule
On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law by the
President.16 Section 9901 of ARPA amended Title VI of the Social Security Act 17 (the Act) to
add section 602, which establishes the Coronavirus State Fiscal Recovery Fund, and section 603,
which establishes the Coronavirus Local Fiscal Recovery Fund (together, the Fiscal Recovery
Funds).18 The Fiscal Recovery Funds are intended to provide support to State, local, and Tribal
governments (together, recipients) in responding to the impact of COVID-19 and in their efforts
to contain COVID-19 on their communities, residents, and businesses. The Fiscal Recovery
Funds build on and expand the support provided to these governments over the last year,
including through the Coronavirus Relief Fund (CRF).19
14 Emma Dorn et al., COVID-19 and student learning in the United States: The hurt could last a lifetime
(June 2020), https://webtest.childrensinstitute.net/sites/default/files/documents/COVID-19-and-student-
learning-in-the-United-States_FINAL.pdf; Andrew Bacher-Hicks et al., Inequality in Household
Adaptation to Schooling Shocks: Covid-Induced Online Engagement in Real Time, J. of Public Econ.
Vol. 193(C) (July 2020), available at https://www.nber.org/papers/w27555.
15 See, e.g., Tyler Atkinson & Alex Richter, Pandemic Disproportionately Affects Women, Minority
Labor Force Participation, https://www.dallasfed.org/research/economics/2020/1110 (last visited May 9,
2021); Jared Bernstein & Janelle Jones, The Impact of the COVID19 Recession on the Jobs and Incomes
of Persons of Color, https://www.cbpp.org/sites/default/files/atoms/files/6-2-20bud_0.pdf (last visited
May 9, 2021).
16 American Rescue Plan Act of 2021 (ARPA) § 9901, Pub. L. No. 117-2, codified at 42 U.S.C. § 802 et
seq.
17 42 U.S.C. 801 et seq.
18 §§ 602, 603 of the Act.
19 The CRF was established by the section 601 of the Act as added by the Coronavirus Aid, Relief, and
Economic Security Act (CARES Act), Pub. L. No. 116-136, 134 Stat. 281 (2020).
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Through the Fiscal Recovery Funds, Congress provided State, local, and Tribal governments
with significant resources to respond to the COVID-19 public health emergency and its
economic impacts through four categories of eligible uses. Section 602 and section 603 contain
the same eligible uses; the primary difference between the two sections is that section 602
establishes a fund for States, territories, and Tribal governments and section 603 establishes a
fund for metropolitan cities, nonentitlement units of local government, and counties.
Sections 602(c)(1) and 603(c)(1) provide that funds may be used:
a) To respond to the public health emergency or its negative economic impacts, including
assistance to households, small businesses, and nonprofits, or aid to impacted industries
such as tourism, travel, and hospitality;
b) To respond to workers performing essential work during the COVID-19 public health
emergency by providing premium pay to eligible workers;
c) For the provision of government services to the extent of the reduction in revenue due to
the COVID–19 public health emergency relative to revenues collected in the most recent
full fiscal year prior to the emergency; and
d) To make necessary investments in water, sewer, or broadband infrastructure.
In addition, Congress clarified two types of uses which do not fall within these four
categories. Sections 602(c)(2)(B) and 603(c)(2) provide that these eligible uses do not include,
and thus funds may not be used for, depositing funds into any pension fund. Section
602(c)(2)(A) also provides, for States and territories, that the eligible uses do not include:
“directly or indirectly offset[ting] a reduction in the net tax revenue of [the] State
or territory resulting from a change in law, regulation, or administrative
interpretation.”
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The ARPA provides a substantial infusion of resources to meet pandemic response needs
and rebuild a stronger, more equitable economy as the country recovers. First, payments from
the Fiscal Recovery Funds help to ensure that State, local, and Tribal governments have the
resources needed to continue to take actions to decrease the spread of COVID-19 and bring the
pandemic under control. Payments from the Fiscal Recovery Funds may also be used by
recipients to provide support for costs incurred in addressing public health and economic
challenges resulting from the pandemic, including resources to offer premium pay to essential
workers, in recognition of their sacrifices over the last year. Recipients may also use payments
from the Fiscal Recovery Funds to replace State, local, and Tribal government revenue lost due
to COVID-19, helping to ensure that governments can continue to provide needed services and
avoid cuts or layoffs. Finally, these resources lay the foundation for a strong, equitable
economic recovery, not only by providing immediate economic stabilization for households and
businesses, but also by addressing the systemic public health and economic challenges that may
have contributed to more severe impacts of the pandemic among low-income communities and
people of color.
Within the eligible use categories outlined in the Fiscal Recovery Funds provisions of
ARPA, State, local, and Tribal governments have flexibility to determine how best to use
payments from the Fiscal Recovery Funds to meet the needs of their communities and
populations. The Interim Final Rule facilitates swift and effective implementation by
establishing a framework for determining the types of programs and services that are eligible
under the ARPA along with examples of uses that State, local, and Tribal governments may
consider. These uses build on eligible expenditures under the CRF, including some expansions
in eligible uses to respond to the public health emergency, such as vaccination campaigns. They
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also reflect changes in the needs of communities, as evidenced by, for example, nationwide data
demonstrating disproportionate impacts of the COVID-19 public health emergency on certain
populations, geographies, and economic sectors. The Interim Final Rule takes into consideration
these disproportionate impacts by recognizing a broad range of eligible uses to help States, local,
and Tribal governments support the families, businesses, and communities hardest hit by the
COVID-19 public health emergency.
Implementation of the Fiscal Recovery Funds also reflect the importance of public input,
transparency, and accountability. Treasury seeks comment on all aspects of the Interim Final
Rule and, to better facilitate public comment, has included specific questions throughout this
Supplementary Information. Treasury encourages State, local, and Tribal governments in
particular to provide feedback and to engage with Treasury regarding issues that may arise
regarding all aspects of this Interim Final Rule and Treasury’s work in administering the Fiscal
Recovery Funds. In addition, the Interim Final Rule establishes certain regular reporting
requirements, including by requiring State, local, and Tribal governments to publish information
regarding uses of Fiscal Recovery Funds payments in their local jurisdiction. These reporting
requirements reflect the need for transparency and accountability, while recognizing and
minimizing the burden, particularly for smaller local governments. Treasury urges State,
territorial, Tribal, and local governments to engage their constituents and communities in
developing plans to use these payments, given the scale of funding and its potential to catalyze
broader economic recovery and rebuilding.
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II. Eligible Uses
A. Public Health and Economic Impacts
Sections 602(c)(1)(A) and 603(c)(1)(A) provide significant resources for State, territorial,
Tribal governments, and counties, metropolitan cities, and nonentitlement units of local
governments (each referred to as a recipient) to meet the wide range of public health and
economic impacts of the COVID-19 public health emergency.
These provisions authorize the use of payments from the Fiscal Recovery Funds to
respond to the public health emergency with respect to COVID-19 or its negative economic
impacts. Section 602 and section 603 also describe several types of uses that would be
responsive to the impacts of the COVID-19 public health emergency, including assistance to
households, small businesses, and nonprofits and aid to impacted industries, such as tourism,
travel, and hospitality.20
Accordingly, to assess whether a program or service is included in this category of
eligible uses, a recipient should consider whether and how the use would respond to the
COVID- 19 public health emergency. Assessing whether a program or service “responds to” the
COVID-19 public health emergency requires the recipient to, first, identify a need or negative
impact of the COVID-19 public health emergency and, second, identify how the program,
service, or other intervention addresses the identified need or impact. While the COVID-19
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.
20 §§602(c)(1)(A), 603(c)(1)(A) of the Act.
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The Interim Final Rule implements these provisions by identifying a non-exclusive list of
programs or services that may be funded as responding to COVID-19 or the negative economic
impacts of the COVID-19 public health emergency, along with considerations for evaluating
other potential uses of the Fiscal Recovery Funds not explicitly listed. The Interim Final Rule
also provides flexibility for recipients to use payments from the Fiscal Recovery Funds for
programs or services that are not identified on these non-exclusive lists but that fall under the
terms of section 602(c)(1)(A) or 603(c)(1)(A) by responding to the COVID-19 public health
emergency or its negative economic impacts. As an example, in determining whether a program
or service responds to the negative economic impacts of the COVID-19 public health emergency,
the Interim Final Rule provides that payments from the Fiscal Recovery Funds should be
designed to address an economic harm resulting from or exacerbated by the public health
emergency. Recipients should assess the connection between the negative economic harm and
the COVID-19 public health emergency, the nature and extent of that harm, and how the use of
this funding would address such harm.
As discussed, the pandemic and the necessary actions taken to control the spread had a
severe impact on households and small businesses, including in particular low-income workers
and communities and people of color. While eligible uses under sections 602(c)(1)(A) and
603(c)(1)(A)provide flexibility to recipients to identify the most pressing local needs, Treasury
encourages recipients to provide assistance to those households, businesses, and non-profits in
communities most disproportionately impacted by the pandemic.
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1. Responding to COVID-19
On January 21, 2020, the Centers for Disease Control and Prevention (CDC) identified
the first case of novel coronavirus in the United States.21 By late March, the virus had spread to
many States and the first wave was growing rapidly, centered in the northeast.22 This wave
brought acute strain on health care and public health systems: hospitals and emergency medical
services struggled to manage a major influx of patients; response personnel faced shortages of
personal protective equipment; testing for the virus was scarce; and congregate living facilities
like nursing homes and prisons saw rapid spread. State, local, and Tribal governments mobilized
to support the health care system, issue public health orders to mitigate virus spread, and
communicate safety measures to the public. The United States has since faced at least two
additional COVID-19 waves that brought many similar challenges: the second in the summer,
centered in the south and southwest, and a wave throughout the fall and winter, in which the
virus reached a point of uncontrolled spread across the country and over 3,000 people died per
day.23 By early May 2021, the United States has experienced over 32 million confirmed
COVID-19 cases and over 575,000 deaths.24
21 Press Release, Centers for Disease Control and Prevention, First Travel-related Case of 2019 Novel
Coronavirus Detected in United States (Jan. 21, 2020), https://www.cdc.gov/media/releases/2020/p0121-
novel-coronavirus-travel-case.html.
22 Anne Schuchat et al., Public Health Response to the Initiation and Spread of Pandemic COVID-19 in
the United States, February 24 – April 21, 2021, MMWR Morb Mortal Wkly Rep 2021, 69(18):551-56
(May 8, 2021), https://www.cdc.gov/mmwr/volumes/69/wr/mm6918e2.htm.
23 Centers for Disease Control and Prevention, COVID Data Tracker: Trends in Number of COVID-19
Cases and Deaths in the US Reported to CDC, by State/Territory, https://covid.cdc.gov/covid-data-
tracker/#trends_dailytrendscases (last visited May 8, 2021).
24 Id.
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Mitigating the impact of COVID-19, including taking actions to control its spread and
support hospitals and health care workers caring for the sick, continues to require a major public
health response from State, local and Tribal governments. New or heightened public health
needs include COVID-19 testing, major expansions in contact tracing, support for individuals in
isolation or quarantine, enforcement of public health orders, new public communication efforts,
public health surveillance (e.g., monitoring case trends and genomic sequencing for variants),
enhancement to health care capacity through alternative care facilities, and enhancement of
public health data systems to meet new demands or scaling needs. State, local, and Tribal
governments have also supported major efforts to prevent COVID-19 spread through safety
measures at key settings like nursing homes, schools, congregate living settings, dense worksites,
incarceration settings, and in other public facilities. This has included implementing infection
prevention measures or making ventilation improvements in congregate settings, health care
settings, or other key locations.
Other response and adaptation costs include capital investments in public facilities to
meet pandemic operational needs, such as physical plant improvements to public hospitals and
health clinics or adaptations to public buildings to implement COVID-19 mitigation tactics. In
recent months, State, local, and Tribal governments across the country have mobilized to support
the national vaccination campaign, resulting in over 250 million doses administered to date.25
The need for public health measures to respond to COVID-19 will continue in the months
and potentially years to come. This includes the continuation of the vaccination campaign for
the general public and, if vaccinations are approved for children in the future, eventually for
25 Centers for Disease Control and Prevention, COVID Data Tracker: COVID-19 Vaccinations in the
United States, https://covid.cdc.gov/covid-data-tracker/#vaccinations (last visited May 8, 2021).
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youths. This also includes monitoring the spread of COVID-19 variants, understanding the
impact of these variants (especially on vaccination efforts), developing approaches to respond to
those variants, and monitoring global COVID-19 trends to understand continued risks to the
United States. Finally, the long-term health impacts of COVID-19 will continue to require a
public health response, including medical services for individuals with “long COVID,” and
research to understand how COVID-19 impacts future health needs and raises risks for the
millions of Americans who have been infected.
Other areas of public health have also been negatively impacted by the COVID-19
pandemic. For example, in one survey in January 2021, over 40 percent of American adults
reported symptoms of depression or anxiety, up from 11 percent in the first half of 2019.26, The
proportion of children’s emergency department visits related to mental health has also risen
noticeably.27 Similarly, rates of substance misuse and overdose deaths have spiked: preliminary
data from the CDC show a nearly 30 percent increase in drug overdose mortality from
September 2019 to September 2020.28 Stay-at-home orders and other pandemic responses may
have also reduced the ability of individuals affected by domestic violence to access services.29
26 Panchal, supra note 4; Mark É. Czeisler et al., Mental Health, Substance Abuse, and Suicidal Ideation
During COVID-19 Pandemic– United States, June 24-30 2020, Morb. Mortal. Wkly. Rep. 69(32):1049-
57 (Aug. 14, 2020), https://www.cdc.gov/mmwr/volumes/69/wr/mm6932a1.htm.
27 Leeb, supra note 4.
28 Centers for Disease Prevention and Control, National Center for Health Statistics, Provisional Drug
Overdose Death Counts, https://www.cdc.gov/nchs/nvss/vsrr/drug-overdose-data.htm (last visited May 8,
2021).
29 Megan L. Evans, et al., A Pandemic within a Pandemic – Intimate Partner Violence during Covid-19,
N. Engl. J. Med. 383:2302-04 (Dec. 10, 2020), available at
https://www.nejm.org/doi/full/10.1056/NEJMp2024046.
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Finally, some preventative public health measures like childhood vaccinations have been
deferred and potentially forgone.30
While the pandemic affected communities across the country, it disproportionately
impacted some demographic groups and exacerbated health inequities along racial, ethnic, and
socioeconomic lines.31 The CDC has found that racial and ethnic minorities are at increased risk
for infection, hospitalization, and death from COVID-19, with Hispanic or Latino and Native
American or Alaska Native patients at highest risk.32
Similarly, low-income and socially vulnerable communities have seen the most severe
health impacts. For example, counties with high poverty rates also have the highest rates of
infections and deaths, with 223 deaths per 100,000 compared to the U.S. average of 175 deaths
per 100,000, as of May 2021.33 Counties with high social vulnerability, as measured by factors
such as poverty and educational attainment, have also fared more poorly than the national
30 Jeanne M. Santoli et al., Effects of the COVID-19 Pandemic on Routine Pediatric Vaccine Ordering
and Administration – United States, Morb. Mortal. Wkly. Rep. 69(19):591-93 (May 8, 2020),
https://www.cdc.gov/mmwr/volumes/69/wr/mm6919e2.htm; Marisa Langdon-Embry et al., Notes from
the Field: Rebound in Routine Childhood Vaccine Administration Following Decline During the COVID-
19 Pandemic – New York City, March 1-June 27, 2020, Morb. Mortal. Wkly. Rep. 69(30):999-1001 (Jul.
31 2020), https://www.cdc.gov/mmwr/volumes/69/wr/mm6930a3.htm.
31 Office of the White House, National Strategy for the COVID-19 Response and Pandemic Preparedness
(Jan. 21, 2021), https://www.whitehouse.gov/wp-content/uploads/2021/01/National-Strategy-for-the-
COVID-19-Response-and-Pandemic-Preparedness.pdf.
32 In a study of 13 states from October to December 2020, the CDC found that Hispanic or Latino and
Native American or Alaska Native individuals were 1.7 times more likely to visit an emergency room for
COVID-19 than White individuals, and Black individuals were 1.4 times more likely to do so than White
individuals. See Romano, supra note 10.
33 Centers for Disease Control and Prevention, COVID Data Tracker: Trends in COVID-19 Cases and
Deaths in the United States, by County-level Population Factors, https://covid.cdc.gov/covid-data-
tracker/#pop-factors_totaldeaths (last visited May 8, 2021).
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average, with 211 deaths per 100,000 as of May 2021.34 Over the last year, Native Americans
have experienced more than one and a half times the rate of COVID-19 infections, more than
triple the rate of hospitalizations, and more than double the death rate compared to White
Americans.35 Low-income and minority communities also exhibit higher rates of pre-existing
conditions that may contribute to an increased risk of COVID-19 mortality.36
In addition, individuals living in low-income communities may have had more limited
ability to socially distance or to self-isolate when ill, resulting in faster spread of the virus, and
were over-represented among essential workers, who faced greater risk of exposure.37 Social
distancing measures in response to the pandemic may have also exacerbated pre-existing public
health challenges. For example, for children living in homes with lead paint, spending
substantially more time at home raises the risk of developing elevated blood lead levels, while
34 The CDC’s Social Vulnerability Index includes fifteen variables measuring social vulnerability,
including unemployment, poverty, education levels, single-parent households, disability status, non-
English speaking households, crowded housing, and transportation access.
Centers for Disease Control and Prevention, COVID Data Tracker: Trends in COVID-19 Cases and
Deaths in the United States, by Social Vulnerability Index, https://covid.cdc.gov/covid-data-tracker/#pop-
factors_totaldeaths (last visited May 8, 2021).
35 Centers for Disease Control and Prevention, Risk for COVID-19 Infection, Hospitalization, and Death
By Race/Ethnicity, https://www.cdc.gov/coronavirus/2019-ncov/covid-data/investigations-
discovery/hospitalization-death-by-race-ethnicity.html (last visited Apr. 26, 2021).
36 See, e.g., Centers for Disease Control and Prevention, Risk of Severe Illness or Death from COVID-19
(Dec. 10, 2020), https://www.cdc.gov/coronavirus/2019-ncov/community/health-equity/racial-ethnic-
disparities/disparities-illness.html (last visited Apr. 26, 2021).
37 Milena Almagro et al., Racial Disparities in Frontline Workers and Housing Crowding During COVID-
19:Evidence from Geolocation Data (Sept. 22, 2020), NYU Stern School of Business (forthcoming),
available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3695249; Grace McCormack et al.,
Economic Vulnerability of Households with Essential Workers, JAMA 324(4):388-90 (2020), available
at https://jamanetwork.com/journals/jama/fullarticle/2767630.
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screenings for elevated blood lead levels declined during the pandemic.38 The combination of
these underlying social and health vulnerabilities may have contributed to more severe public
health outcomes of the pandemic within these communities, resulting in an exacerbation of pre-
existing disparities in health outcomes.39
Eligible Public Health Uses. The Fiscal Recovery Funds provide resources to meet and
address these emergent public health needs, including through measures to counter the spread of
COVID-19, through the provision of care for those impacted by the virus, and through programs
or services that address disparities in public health that have been exacerbated by the pandemic.
To facilitate implementation and use of payments from the Fiscal Recovery Funds, the Interim
Final Rule identifies a non-exclusive list of eligible uses of funding to respond to the COVID-19
public health emergency. Eligible uses listed under this section build and expand upon
permissible expenditures under the CRF, while recognizing the differences between the ARPA
and CARES Act, and recognizing that the response to the COVID-19 public health emergency
has changed and will continue to change over time. To assess whether additional uses would be
eligible under this category, recipients should identify an effect of COVID-19 on public health,
including either or both of immediate effects or effects that may manifest over months or years,
and assess how the use would respond to or address the identified need.
38 See, e.g., Joseph G. Courtney et al., Decreases in Young Children Who Received Blood Lead Level
Testing During COVID-19 – 34 Jurisdictions, January-May 2020, Morb. Mort. Wkly. Rep. 70(5):155-61
(Feb. 5, 2021), https://www.cdc.gov/mmwr/volumes/70/wr/mm7005a2.htm; Emily A. Benfer & Lindsay
F. Wiley, Health Justice Strategies to Combat COVID-19: Protecting Vulnerable Communities During a
Pandemic, Health Affairs Blog (Mar. 19, 2020),
https://www.healthaffairs.org/do/10.1377/hblog20200319.757883/full/.
39 See, e.g., Centers for Disease Control and Prevention, supra note 34; Benfer & Wiley, supra note 38;
Nathaniel M. Lewis et al., Disparities in COVID-19 Incidence, Hospitalizations, and Testing, by Area-
Level Deprivation – Utah, March 3-July 9, 2020, Morb. Mortal. Wkly. Rep. 69(38):1369-73 (Sept. 25,
2020), https://www.cdc.gov/mmwr/volumes/69/wr/mm6938a4.htm.
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The Interim Final Rule identifies a non-exclusive list of uses that address the effects of the
COVID-19 public health emergency, including:
• COVID-19 Mitigation and Prevention. A broad range of services and programming are
needed to contain COVID-19. Mitigation and prevention efforts for COVID-19 include
vaccination programs; medical care; testing; contact tracing; support for isolation or
quarantine; supports for vulnerable populations to access medical or public health
services; public health surveillance (e.g., monitoring case trends, genomic sequencing for
variants); enforcement of public health orders; public communication efforts;
enhancement to health care capacity, including through alternative care facilities;
purchases of personal protective equipment; support for prevention, mitigation, or other
services in congregate living facilities (e.g., nursing homes, incarceration settings,
homeless shelters, group living facilities) and other key settings like schools;40 ventilation
improvements in congregate settings, health care settings, or other key locations;
enhancement of public health data systems; and other public health responses.41 They
also include capital investments in public facilities to meet pandemic operational needs,
such as physical plant improvements to public hospitals and health clinics or adaptations
40 This includes implementing mitigation strategies consistent with the Centers for Disease Control and
Prevention’s (CDC) Operational Strategy for K-12 Schools through Phased Prevention, available at
https://www.cdc.gov/coronavirus/2019-ncov/community/schools-childcare/operation-strategy.html.
41 Many of these expenses were also eligible in the CRF. Generally, funding uses eligible under CRF as a
response to the direct public health impacts of COVID-19 will continue to be eligible under the ARPA,
including those not explicitly listed here (e.g., telemedicine costs, costs to facilitate compliance with
public health orders, disinfection of public areas, facilitating distance learning, increased solid waste
disposal needs related to PPE, paid sick and paid family and medical leave to public employees to enable
compliance with COVID–19 public health precautions), with the following two exceptions: 1) the
standard for eligibility of public health and safety payrolls has been updated (see details on page 20) and
2)expenses related to the issuance of tax-anticipation notes are no longer an eligible funding use (see
discussion of debt service on page 44).
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to public buildings to implement COVID-19 mitigation tactics. These COVID-19
prevention and mitigation programs and services, among others, were eligible
expenditures under the CRF and are eligible uses under this category of eligible uses for
the Fiscal Recovery Funds.42
• Medical Expenses. The COVID-19 public health emergency continues to have
devastating effects on public health; the United States continues to average hundreds of
deaths per day and the spread of new COVID-19 variants has raised new risks and
genomic surveillance needs.43 Moreover, our understanding of the potentially serious
and long-term effects of the virus is growing, including the potential for symptoms like
shortness of breath to continue for weeks or months, for multi-organ impacts from
COVID-19, or for post-intensive care syndrome.44 State and local governments may
need to continue to provide care and services to address these near- and longer-term
needs.45
• Behavioral Health Care. In addition, new or enhanced State, local, and Tribal
government services may be needed to meet behavioral health needs exacerbated by the
pandemic and respond to other public health impacts. These services include mental
health treatment, substance misuse treatment, other behavioral health services, hotlines or
42 Coronavirus Relief Fund for States, Tribal Governments, and Certain Eligible Local Governments, 86
Fed. Reg. 4182 (Jan. 15, 2021), available at https://home.treasury.gov/system/files/136/CRF-Guidance-
Federal-Register_2021-00827.pdf.
43 Centers for Disease Control and Prevention, supra note 24.
44 Centers for Disease Control and Prevention, Long-Term Effects (Apr. 8, 2021),
https://www.cdc.gov/coronavirus/2019-ncov/long-term-effects.html (last visited Apr. 26, 2021).
45 Pursuant to 42 CFR 433.51 and 45 CFR 75.306, Fiscal Recovery Funds may not serve as a State or
locality’s contribution of certain Federal funds.
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warmlines, crisis intervention, overdose prevention, infectious disease prevention, and
services or outreach to promote access to physical or behavioral health primary care and
preventative medicine.
• Public Health and Safety Staff. Treasury recognizes that responding to the public health
and negative economic impacts of the pandemic, including administering the services
described above, requires a substantial commitment of State, local, and Tribal
government human resources. As a result, the Fiscal Recovery Funds may be used for
payroll and covered benefits expenses for public safety, public health, health care, human
services, and similar employees, to the extent that their services are devoted to mitigating
or responding to the COVID–19 public health emergency.46 Accordingly, the Fiscal
Recovery Funds may be used to support the payroll and covered benefits for the portion
of the employee’s time that is dedicated to responding to the COVID-19 public health
emergency. For administrative convenience, the recipient may consider public health and
safety employees to be entirely devoted to mitigating or responding to the COVID-19
public health emergency, and therefore fully covered, if the employee, or his or her
operating unit or division, is primarily dedicated to responding to the COVID-19 public
health emergency. Recipients may consider other presumptions for assessing the extent
to which an employee, division, or operating unit is engaged in activities that respond to
46 In general, if an employee’s wages and salaries are an eligible use of Fiscal Recovery Funds, recipients
may treat the employee’s covered benefits as an eligible use of Fiscal Recovery Funds. For purposes of
the Fiscal Recovery Funds, covered benefits include costs of all types of leave (vacation, family-related,
sick, military, bereavement, sabbatical, jury duty), employee insurance (health, life, dental, vision),
retirement (pensions, 401(k)), unemployment benefit plans (federal and state), workers compensation
insurance, and Federal Insurance Contributions Act (FICA) taxes (which includes Social Security and
Medicare taxes).
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the COVID-19 public health emergency, provided that the recipient reassesses
periodically and maintains records to support its assessment, such as payroll records,
attestations from supervisors or staff, or regular work product or correspondence
demonstrating work on the COVID-19 response. Recipients need not routinely track
staff hours.
• Expenses to Improve the Design and Execution of Health and Public Health Programs.
State, local, and Tribal governments may use payments from the Fiscal Recovery Funds
to engage in planning and analysis in order to improve programs addressing the COVID-
19 pandemic, including through use of targeted consumer outreach, improvements to data
or technology infrastructure, impact evaluations, and data analysis.
Eligible Uses to Address Disparities in Public Health Outcomes. In addition, in recognition of
the disproportionate impacts of the COVID-19 pandemic on health outcomes in low-income and
Native American communities and the importance of mitigating these effects, the Interim Final
Rule identifies a broader range of services and programs that will be presumed to be responding
to the public health emergency when provided in these communities. Specifically, Treasury will
presume that certain types of services, outlined below, are eligible uses when provided in a
Qualified Census Tract (QCT),47 to families living in QCTs, or when these services are provided
47 Qualified Census Tracts are a common, readily-accessible, and geographically granular method of
identifying communities with a large proportion of low-income residents. Using an existing measure may
speed implementation and decrease administrative burden, while identifying areas of need at a highly-
localized level.
While QCTs are an effective tool generally, many tribal communities have households with a wide range
of income levels due in part to non-tribal member, high income residents living in the community. Mixed
income communities, with a significant share of tribal members at the lowest levels of income, are often
not included as eligible QCTs yet tribal residents are experiencing disproportionate impacts due to the
pandemic. Therefore, including all services provided by Tribal governments is a more effective means of
ensuring that disproportionately impacted Tribal members can receive services.
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by Tribal governments.48 Recipients may also provide these services to other populations,
households, or geographic areas that are disproportionately impacted by the pandemic. In
identifying these disproportionately-impacted communities, recipients should be able to support
their determination that the pandemic resulted in disproportionate public health or economic
outcomes to the specific populations, households, or geographic areas to be served.
Given the exacerbation of health disparities during the pandemic and the role of pre-existing
social vulnerabilities in driving these disparate outcomes, services to address health disparities
are presumed to be responsive to the public health impacts of the pandemic. Specifically,
recipients may use payments from the Fiscal Recovery Funds to facilitate access to resources that
improve health outcomes, including services that connect residents with health care resources
and public assistance programs and build healthier environments, such as:
• Funding community health workers to help community members access health
services and services to address the social determinants of health;49,
• Funding public benefits navigators to assist community members with navigating
and applying for available Federal, State, and local public benefits or services;
48 U.S. Department of Housing and Urban Development (HUD), Qualified Census Tracts and Difficult
Development Areas, https://www.huduser.gov/portal/datasets/qct.html (last visited Apr. 26, 2021); U.S.
Department of the Interior, Bureau of Indian Affairs, Indian Lands of Federally Recognized Tribes of the
United States (June 2016), https://www.bia.gov/sites/bia.gov/files/assets/bia/ots/webteam/pdf/idc1-
028635.pdf (last visited Apr. 26, 2021).
49 The social determinants of health are the social and environmental conditions that affect health
outcomes, specifically economic stability, health care access, social context, neighborhoods and built
environment, and education access. See, e.g., U.S. Department of Health and Human Services, Office of
Disease Prevention and Health Promotion, Healthy People 2030: Social Determinants of Health,
https://health.gov/healthypeople/objectives-and-data/social-determinants-health (last visited Apr. 26,
2021).
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• Housing services to support healthy living environments and neighborhoods
conducive to mental and physical wellness;
• Remediation of lead paint or other lead hazards to reduce risk of elevated blood lead
levels among children; and
• Evidence-based community violence intervention programs to prevent violence and
mitigate the increase in violence during the pandemic.50
2. Responding to Negative Economic Impacts
Impacts on Households and Individuals. The public health emergency, including the
necessary measures taken to protect public health, resulted in significant economic and financial
hardship for many Americans. As businesses closed, consumers stayed home, schools shifted to
remote education, and travel declined precipitously, over 20 million jobs were lost in March and
April 2020.51 Although many have returned to work, as of April 2021, the economy remains
8.2 million jobs below its pre-pandemic peak,52 and more than 3 million workers have dropped
out of the labor market altogether relative to February 2020.53
Rates of unemployment are particularly severe among workers of color and workers with
lower levels of educational attainment; for example, the overall unemployment rate in the United
50 National Commission on COVID-19 and Criminal Justice, Impact Report: COVID-19 and Crime (Jan.
31, 2021), https://covid19.counciloncj.org/2021/01/31/impact-report-covid-19-and-crime-3/ (showing a
spike in homicide and assaults); Brad Boesrup et al., Alarming Trends in US domestic violence during the
COVID-19 pandemic, Am. J. of Emerg. Med. 38(12): 2753-55 (Dec. 1, 2020), available at
https://www.ajemjournal.com/article/S0735-6757(20)30307-7/fulltext (showing a spike in domestic
violence).
51 U.S. Bureau of Labor Statistics, All Employees, Total Nonfarm (PAYEMS), retrieved from FRED,
Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/PAYEMS (last visited May 8, 2021).
52 Id.
53 U.S. Bureau of Labor Statistics, Civilian Labor Force Level [CLF16OV], retrieved from FRED, Federal
Reserve Bank of St. Louis, https://fred.stlouisfed.org/series/CLF16OV (last visited May 8, 2021).
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States was 6.1 percent in April 2021, but certain groups saw much higher rates: 9.7 percent for
Black workers, 7.9 percent for Hispanic or Latino workers, and 9.3 percent for workers without a
high school diploma.54 Job losses have also been particularly steep among low wage workers,
with these workers remaining furthest from recovery as of the end of 2020.55 A severe
recession–and its concentrated impact among low-income workers–has amplified food and
housing insecurity, with an estimated nearly 17 million adults living in households where there is
sometimes or often not enough food to eat and an estimated 10.7 million adults living in
households that were not current on rent.56 Over the course of the pandemic, inequities also
manifested along gender lines, as schools closed to in-person activities, leaving many working
families without child care during the day.57 Women of color have been hit especially hard: the
54 U.S. Bureau of Labor Statistics, Labor Force Statistics from the Current Population Survey:
Employment status of the civilian population by sex and age (May 8 2021),
https://www.bls.gov/news.release/empsit.t01.htm (last visited May 8, 2021); U.S. Bureau of Labor
Statistics, Labor Force Statistics from the Current Population Survey: Employment status of the civilian
noninstitutional population by race, Hispanic or Latino ethnicity, sex, and age (May 8, 2021),
https://www.bls.gov/web/empsit/cpseea04.htm (last visited May 8, 2021); U.S. Bureau of Labor
Statistics, Labor Force Statistics from the Current Population Survey: Employment status of the civilian
noninstitutional population 25 years and over by educational attainment (May 8, 2021),
https://www.bls.gov/web/empsit/cpseea05.htm (last visited May 8, 2021).
55 Elise Gould & Jori Kandra, Wages grew in 2020 because the bottom fell out of the low-wage labor
market, Economic Policy Institute (Feb. 24, 2021), https://files.epi.org/pdf/219418.pdf. See also, Michael
Dalton et al., The K-Shaped Recovery: Examining the Diverging Fortunes of Workers in the Recovery
from the COVID-19 Pandemic using Business and Household Survey Microdata¸ U.S. Bureau of Labor
Statistics Working Paper Series (Feb. 2021), https://www.bls.gov/osmr/research-
papers/2021/pdf/ec210020.pdf.
56 Center on Budget and Policy Priorities, Tracking the COVID-19 Recession’s Effects on Food, Housing,
and Employment Hardships, https://www.cbpp.org/research/poverty-and-inequality/tracking-the-covid-
19-recessions-effects-on-food-housing-and (last visited May 8, 2021).
57 Women have carried a larger share of childcare responsibilities than men during the COVID-19 crisis.
See, e.g., Gema Zamarro & María J. Prados, Gender differences in couples’ division of childcare, work
and mental health during COVID-19, Rev. Econ. Household 19:11-40 (2021), available at
https://link.springer.com/article/10.1007/s11150-020-09534-7; Titan Alon et al., The Impact of COVID-
19 on Gender Equality, National Bureau of Economic Research Working Paper 26947 (April 2020),
available at https://www.nber.org/papers/w26947.
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labor force participation rate for Black women has fallen by 3.2 percentage points 58 during the
pandemic as compared to 1.0 percentage points for Black men 59 and 2.0 percentage points for
White women.60
As the economy recovers, the effects of the pandemic-related recession may continue to
impact households, including a risk of longer-term effects on earnings and economic potential.
For example, unemployed workers, especially those who have experienced longer periods of
unemployment, earn lower wages over the long term once rehired.61 In addition to the labor
market consequences for unemployed workers, recessions can also cause longer-term economic
challenges through, among other factors, damaged consumer credit scores 62 and reduced familial
and childhood wellbeing.63 These potential long-term economic consequences underscore the
continued need for robust policy support.
58 U.S. Bureau of Labor Statistics, Labor Force Participation Rate - 20 Yrs. & Over, Black or African
American Women [LNS11300032], retrieved from FRED, Federal Reserve Bank of St. Louis;
https://fred.stlouisfed.org/series/LNS11300032 (last visited May 8, 2021).
59 U.S. Bureau of Labor Statistics, Labor Force Participation Rate - 20 Yrs. & Over, Black or African
American Men [LNS11300031], retrieved from FRED, Federal Reserve Bank of St. Louis;
https://fred.stlouisfed.org/series/LNS11300031 (last visited May 8, 2021).
60 U.S. Bureau of Labor Statistics, Labor Force Participation Rate - 20 Yrs. & Over, White Women
[LNS11300029], retrieved from FRED, Federal Reserve Bank of St. Louis;
https://fred.stlouisfed.org/series/LNS11300029 (last visited May 8, 2021).
61 See, e.g., Michael Greenstone & Adam Looney, Unemployment and Earnings Losses: A Look at Long-
Term Impacts of the Great Recession on American Workers, Brookings Institution (Nov. 4, 2021),
https://www.brookings.edu/blog/jobs/2011/11/04/unemployment-and-earnings-losses-a-look-at-long-
term-impacts-of-the-great-recession-on-american-workers/.
62 Chi Chi Wu, Solving the Credit Conundrum: Helping Consumers’ Credit Records Impaired by the
Foreclosure Crisis and Great Recession (Dec. 2013),
https://www.nclc.org/images/pdf/credit_reports/report-credit-conundrum-2013.pdf.
63 Irwin Garfinkel, Sara McLanahan, Christopher Wimer, eds., Children of the Great Recession, Russell
Sage Foundation (Aug. 2016), available at https://www.russellsage.org/publications/children-great-
recession.
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Impacts on Businesses. The pandemic has also severely impacted many businesses, with
small businesses hit especially hard. Small businesses make up nearly half of U.S. private-sector
employment 64 and play a key role in supporting the overall economic recovery as they are
responsible for two-thirds of net new jobs.65 Since the beginning of the pandemic, however,
400,000 small businesses have closed, with many more at risk.66 Sectors with a large share of
small business employment have been among those with the most drastic drops in employment.67
The negative outlook for small businesses has continued: as of April 2021, approximately
70 percent of small businesses reported that the pandemic has had a moderate or large negative
effect on their business, and over a third expect that it will take over 6 months for their business
to return to their normal level of operations.68
This negative outlook is likely the result of many small businesses having faced periods
of closure and having seen declining revenues as customers stayed home.69 In general, small
businesses can face greater hurdles in accessing credit,70 and many small businesses were
64 Board of Governors of the Federal Reserve System, supra note 5.
65 U.S. Small Business Administration, Office of Advocacy, Small Businesses Generate 44 Percent of
U.S. Economic Activity (Jan. 30, 2019), https://advocacy.sba.gov/2019/01/30/small-businesses-generate-
44-percent-of-u-s-economic-activity/.
66 Biden, supra note 6.
67 Daniel Wilmoth, U.S. Small Business Administration Office of Advocacy, The Effects of the COVID-
19 Pandemic on Small Businesses, Issue Brief No. 16 (Mar. 2021), available at
https://cdn.advocacy.sba.gov/wp-content/uploads/2021/03/02112318/COVID-19-Impact-On-Small-
Business.pdf.
68 U.S. Census Bureau, Small Business Pulse Survey, https://portal.census.gov/pulse/data/ (last visited
May 8, 2021).
69 Olivia S. Kim et al., Revenue Collapses and the Consumption of Small Business Owners in the Early
Stages of the COVID-19 Pandemic (Nov. 2020), https://www.nber.org/papers/w28151.
70 See e.g., Board of Governors of the Federal Reserve System, Report to Congress on the Availability of
Credit to Small Businesses (Sept. 2017), available at https://www.federalreserve.gov/publications/2017-
september-availability-of-credit-to-small-businesses.htm.
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already financially fragile at the outset of the pandemic.71 Non-profits, which provide vital
services to communities, have similarly faced economic and financial challenges due to the
pandemic.72
Impacts to State, Local, and Tribal Governments. State, local, and Tribal governments
have felt substantial fiscal pressures. As noted above, State, local, and Tribal governments have
faced significant revenue shortfalls and remain over 1 million jobs below their pre-pandemic
staffing levels.73 These reductions in staffing may undermine the ability to deliver services
effectively, as well as add to the number of unemployed individuals in their jurisdictions.
Exacerbation of Pre-existing Disparities. The COVID-19 public health emergency may
have lasting negative effects on economic outcomes, particularly in exacerbating disparities that
existed prior to the pandemic.
The negative economic impacts of the COVID-19 pandemic are particularly pronounced
in certain communities and families. Low- and moderate-income jobs make up a substantial
portion of both total pandemic job losses,74 and jobs that require in-person frontline work, which
71 Alexander W. Bartik et al., The Impact of COVID-19 on small business outcomes and expectations,
PNAS 117(30): 17656-66 (July 28, 2020), available at https://www.pnas.org/content/117/30/17656.
72 Federal Reserve Bank of San Francisco, Impacts of COVID-19 on Nonprofits in the Western United
States (May 2020), https://www.frbsf.org/community-development/files/impact-of-covid-nonprofits-
serving-western-united-states.pdf.
73 Wolfe & Kassa, supra note 7; Elijah Moreno & Heather Sobrepena, Tribal entities remain resilient as
COVID-19 batters their finances, Federal Reserve Bank of Minneapolis (Nov. 10, 2021),
https://www.minneapolisfed.org/article/2020/tribal-entities-remain-resilient-as-covid-19-batters-their-
finances.
74 Kim Parker et al., Economic Fallout from COVID-19 Continues to Hit Lower-Income Americans the
Hardest, Pew Research Center (Sept. 24, 2020), https://www.pewresearch.org/social-
trends/2020/09/24/economic-fallout-from-covid-19-continues-to-hit-lower-income-americans-the-
hardest/; Gould, supra note 55.
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are exposed to greater risk of contracting COVID-19.75 Both factors compound pre-existing
vulnerabilities and the likelihood of food, housing, or other financial insecurity in low- and
moderate-income families and, given the concentration of low- and moderate-income families
within certain communities,76 raise a substantial risk that the effects of the COVID-19 public
health emergency will be amplified within these communities.
These compounding effect of recessions on concentrated poverty and the long-lasting
nature of this effect were observed after the 2007-2009 recession, including a large increase in
concentrated poverty with the number of people living in extremely poor neighborhoods more
than doubling by 2010-2014 relative to 2000.77 Concentrated poverty has a range of deleterious
impacts, including additional burdens on families and reduced economic potential and social
cohesion.78 Given the disproportionate impact of COVID-19 on low-income households
discussed above, there is a risk that the current pandemic-induced recession could further
increase concentrated poverty and cause long-term damage to economic prospects in
neighborhoods of concentrated poverty.
The negative economic impacts of COVID-19 also include significant impacts to children
in disproportionately affected families and include impacts to education, health, and welfare, all
75 See infra Section II.B of this Supplementary Information.
76 Elizabeth Kneebone, The Changing geography of US poverty, Brookings Institution (Feb. 15, 2017),
https://www.brookings.edu/testimonies/the-changing-geography-of-us-poverty/.
77 Elizabeth Kneebone & Natalie Holmes, U.S. concentrated poverty in the wake of the Great Recession,
Brookings Institution (Mar. 31, 2016), https://www.brookings.edu/research/u-s-concentrated-poverty-in-
the-wake-of-the-great-recession/.
78 David Erickson et al., The Enduring Challenge of Concentrated Poverty in America: Case Studies from
Communities Across the U.S. (2008), available at https://www.frbsf.org/community-
development/files/cp_fullreport.pdf.
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of which contribute to long-term economic outcomes.79 Many low-income and minority
students, who were disproportionately served by remote or hybrid education during the
pandemic, lacked the resources to participate fully in remote schooling or live in households
without adults available throughout the day to assist with online coursework.80 Given these
trends, the pandemic may widen educational disparities and worsen outcomes for low-income
students,81 an effect that would substantially impact their long-term economic outcomes.
Increased economic strain or material hardship due to the pandemic could also have a long-term
impact on health, educational, and economic outcomes of young children.82 Evidence suggests
79 Educational quality, as early as Kindergarten, has a long-term impact on children’s public health and
economic outcomes. See, e.g., Tyler W. Watts et al., The Chicago School Readiness Project: Examining
the long-term impacts of an early childhood intervention, PLoS ONE 13(7) (2018), available at
https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0200144; Opportunity Insights, How
Can We Amplify Education as an Engine of Mobility? Using big data to help children get the most from
school, https://opportunityinsights.org/education/ (last visited Apr. 26, 2021); U.S. Department of Health
and Human Services (HHS), Office of Disease Prevention and Health Promotion, Early Childhood
Development and Education, https://www.healthypeople.gov/2020/topics-objectives/topic/social-
determinants-health/interventions-resources/early-childhood-development-and-education (last visited
Apr. 26, 2021).
80 See, e.g., Bacher-Hicks, supra note 14.
81 A Department of Education survey found that, as of February 2021, 42 percent of fourth grade students
nationwide were offered only remote education, compared to 48 percent of economically disadvantaged
students, 54 percent of Black students and 57 percent of Hispanic students. Large districts often
disproportionately serve low-income students. See Institute of Education Sciences, Monthly School
Survey Dashboard, https://ies.ed.gov/schoolsurvey/ (last visited Apr. 26, 2021). In summer 2020, a
review found that 74 percent of the largest 100 districts chose remote learning only. See Education Week,
School Districts’ Reopening Plans: A Snapshot (Jul. 15, 2020),
https://www.edweek.org/leadership/school-districts-reopening-plans-a-snapshot/2020/07 (last visited May
4, 2021).
82 HHS, supra note 79.
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that adverse conditions in early childhood, including exposure to poverty, food insecurity,
housing insecurity, or other economic hardships, are particularly impactful.83
The pandemic’s disproportionate economic impacts are also seen in Tribal communities
across the country—for Tribal governments as well as families and businesses on and off Tribal
lands. In the early months of the pandemic, Native American unemployment spiked to
26 percent and, while partially recovered, remains at nearly 11 percent.84 Tribal enterprises are a
significant source of revenue for Tribal governments to support the provision of government
services. These enterprises, notably concentrated in gaming, tourism, and hospitality, frequently
closed, significantly reducing both revenues to Tribal governments and employment. As a result,
Tribal governments have reduced essential services to their citizens and communities.85
Eligible Uses. Sections 602(c)(1)(A) and 603(c)(1)(A) permit use of payments from the
Fiscal Recovery Funds to respond to the negative economic impacts of the COVID-19 public
health emergency. Eligible uses that respond to the negative economic impacts of the public
health emergency must be designed to address an economic harm resulting from or exacerbated
by the public health emergency. In considering whether a program or service would be eligible
under this category, the recipient should assess whether, and the extent to which, there has been
83 Hirokazu Yoshikawa, Effects of the Global Coronavirus Disease – 2019 Pandemic on Early Childhood
Development: Short- and Long-Term Risks and Mitigating Program and Policy Actions, J. of Pediatrics
Vol. 223:188-93 (Aug. 1, 2020), available at https://www.jpeds.com/article/S0022-3476(20)30606-
5/abstract.
84 Based on calculations conducted by the Minneapolis Fed’s Center for Indian Country Development
using Flood et al. (2020)’s Current Population Survey.” Sarah Flood, Miriam King, Renae Rodgers,
Steven Ruggles and J. Robert Warren. Integrated Public Use Microdata Series, Current Population
Survey: Version 8.0 [dataset]. Minneapolis, MN: IPUMS, 2020. https://doi.org/10.18128/D030.V8.0; see
also Donna Feir & Charles Golding, Native Employment During COVID-19: Hard hit in April but
Starting to Rebount? (Aug. 5, 2020), https://www.minneapolisfed.org/article/2020/native-employment-
during-covid-19-hit-hard-in-april-but-starting-to-rebound.
85 Moreno & Sobrepena, supra note 73.
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an economic harm, such as loss of earnings or revenue, that resulted from the COVID-19 public
health emergency and whether, and the extent to which, the use would respond or address this
harm.86 A recipient should first consider whether an economic harm exists and whether this
harm was caused or made worse by the COVID-19 public health emergency. While economic
impacts may either be immediate or delayed, assistance or aid to individuals or businesses that
did not experience a negative economic impact from the public health emergency would not be
an eligible use under this category.
In addition, the eligible use must “respond to” the identified negative economic impact.
Responses must be related and reasonably proportional to the extent and type of harm
experienced; uses that bear no relation or are grossly disproportionate to the type or extent of
harm experienced would not be eligible uses. Where there has been a negative economic impact
resulting from the public health emergency, States, local, and Tribal governments have broad
latitude to choose whether and how to use the Fiscal Recovery Funds to respond to and address
the negative economic impact. Sections 602(c)(1)(A) and 603(c)(1)(A) describe several types of
uses that would be eligible under this category, including assistance to households, small
businesses, and nonprofits and aid to impacted industries such as tourism, travel, and hospitality.
To facilitate implementation and use of payments from the Fiscal Recovery Funds, the
Interim Final Rule identifies a non-exclusive list of eligible uses of funding that respond to the
negative economic impacts of the public health emergency. Consistent with the discussion
above, the eligible uses listed below would respond directly to the economic or financial harms
resulting from and or exacerbated by the public health emergency.
86 In some cases, a use may be permissible under another eligible use category even if it falls outside the
scope of section (c)(1)(A) of the Act.
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• Assistance to Unemployed Workers. This includes assistance to unemployed
workers, including services like job training to accelerate rehiring of unemployed
workers; these services may extend to workers unemployed due to the pandemic or
the resulting recession, or who were already unemployed when the pandemic
began and remain so due to the negative economic impacts of the pandemic.
• State Unemployment Insurance Trust Funds. Consistent with the approach taken
in the CRF, recipients may make deposits into the state account of the
Unemployment Trust Fund established under section 904 of the Social Security
Act (42 U.S.C. 1104) up to the level needed to restore the pre-pandemic balances
of such account as of January 27, 2020 or to pay back advances received under
Title XII of the Social Security Act (42 U.S.C. 1321) for the payment of benefits
between January 27, 2020 and [INSERT DATE OF PUBLICATION IN THE
FEDERAL REGISTER], given the close nexus between Unemployment Trust
Fund costs, solvency of Unemployment Trust Fund systems, and pandemic
economic impacts. Further, Unemployment Trust Fund deposits can decrease
fiscal strain on Unemployment Insurance systems impacted by the pandemic.
States facing a sharp increase in Unemployment Insurance claims during the
pandemic may have drawn down positive Unemployment Trust Fund balances
and, after exhausting the balance, required advances to fund continuing obligations
to claimants. Because both of these impacts were driven directly by the need for
assistance to unemployed workers during the pandemic, replenishing
Unemployment Trust Funds up to the pre-pandemic level responds to the
pandemic’s negative economic impacts on unemployed workers.
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• Assistance to Households. Assistance to households or populations facing
negative economic impacts due to COVID-19 is also an eligible use. This
includes: food assistance; rent, mortgage, or utility assistance; counseling and legal
aid to prevent eviction or homelessness; cash assistance (discussed below);
emergency assistance for burials, home repairs, weatherization, or other needs;
internet access or digital literacy assistance; or job training to address negative
economic or public health impacts experienced due to a worker’s occupation or
level of training. As discussed above, in considering whether a potential use is
eligible under this category, a recipient must consider whether, and the extent to
which, the household has experienced a negative economic impact from the
pandemic. In assessing whether a household or population experienced economic
harm as a result of the pandemic, a recipient may presume that a household or
population that experienced unemployment or increased food or housing insecurity
or is low- or moderate-income experienced negative economic impacts resulting
from the pandemic. For example, a cash transfer program may focus on
unemployed workers or low- and moderate-income families, which have faced
disproportionate economic harms due to the pandemic. Cash transfers must be
reasonably proportional to the negative economic impact they are intended to
address. Cash transfers grossly in excess of the amount needed to address the
negative economic impact identified by the recipient would not be considered to be
a response to the COVID-19 public health emergency or its negative impacts. In
particular, when considering the appropriate size of permissible cash transfers
made in response to the COVID-19 public health emergency, State, local and
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Tribal governments may consider and take guidance from the per person amounts
previously provided by the Federal government in response to the COVID-19
crisis. Cash transfers that are grossly in excess of such amounts would be outside
the scope of eligible uses under section 602(c)(1)(A) and 603(c)(1)(A) and could
be subject to recoupment. In addition, a recipient could provide survivor’s benefits
to surviving family members of COVID-19 victims, or cash assistance to widows,
widowers, and dependents of eligible COVID-19 victims.
• Expenses to Improve Efficacy of Economic Relief Programs. State, local, and
Tribal governments may use payments from the Fiscal Recovery Funds to improve
efficacy of programs addressing negative economic impacts, including through use
of data analysis, targeted consumer outreach, improvements to data or technology
infrastructure, and impact evaluations.
• Small Businesses and Non-profits. As discussed above, small businesses and non-
profits faced significant challenges in covering payroll, mortgages or rent, and
other operating costs as a result of the public health emergency and measures taken
to contain the spread of the virus. State, local, and Tribal governments may
provide assistance to small businesses to adopt safer operating procedures, weather
periods of closure, or mitigate financial hardship resulting from the COVID-19
public health emergency, including:
o Loans or grants to mitigate financial hardship such as declines in revenues
or impacts of periods of business closure, for example by supporting
payroll and benefits costs, costs to retain employees, mortgage, rent, or
utilities costs, and other operating costs;
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o Loans, grants, or in-kind assistance to implement COVID-19 prevention
or mitigation tactics, such as physical plant changes to enable social
distancing, enhanced cleaning efforts, barriers or partitions, or COVID-19
vaccination, testing, or contact tracing programs; and
o Technical assistance, counseling, or other services to assist with business
planning needs.
As discussed above, these services should respond to the negative economic
impacts of COVID-19. Recipients may consider additional criteria to target
assistance to businesses in need, including small businesses. Such criteria may
include businesses facing financial insecurity, substantial declines in gross
receipts (e.g., comparable to measures used to assess eligibility for the Paycheck
Protection Program), or other economic harm due to the pandemic, as well as
businesses with less capacity to weather financial hardship, such as the smallest
businesses, those with less access to credit, or those serving disadvantaged
communities. Recipients should consider local economic conditions and business
data when establishing such criteria.87
• Rehiring State, Local, and Tribal Government Staff. State, local, and Tribal
governments continue to see pandemic impacts in overall staffing levels: State,
local, and Tribal government employment remains more than 1 million jobs lower
87 See Federal Reserve Bank of Cleveland, An Uphill Battle: COVID-19’s Outsized Toll on Minority-
Owned Firms (Oct. 8, 2020), https://www.clevelandfed.org/newsroom-and-
events/publications/community-development-briefs/db-20201008-misera-report.aspx (discussing the
impact of COVID-19 on minority owned businesses).
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in April 2021 than prior to the pandemic.88 Employment losses decrease a state
or local government’s ability to effectively administer services. Thus, the Interim
Final Rule includes as an eligible use payroll, covered benefits, and other costs
associated with rehiring public sector staff, up to the pre-pandemic staffing level
of the government.
• Aid to Impacted Industries. Sections 602(c)(1)(A) and 603(c)(1)(A) recognize
that certain industries, such as tourism, travel, and hospitality, were
disproportionately and negatively impacted by the COVID-19 public health
emergency. Aid provided to tourism, travel, and hospitality industries should
respond to the negative economic impacts of the pandemic on those and similarly
impacted industries. For example, aid may include assistance to implement
COVID-19 mitigation and infection prevention measures to enable safe
resumption of tourism, travel, and hospitality services, for example,
improvements to ventilation, physical barriers or partitions, signage to facilitate
social distancing, provision of masks or personal protective equipment, or
consultation with infection prevention professionals to develop safe reopening
plans.
Aid may be considered responsive to the negative economic impacts of the
pandemic if it supports businesses, attractions, business districts, and Tribal
development districts operating prior to the pandemic and affected by required
88 U.S. Bureau of Labor Statistics, All Employees, State Government [CES9092000001] and All
Employees, Local Government [CES9093000001], retrieved from FRED, Federal Reserve Bank of St.
Louis, https://fred.stlouisfed.org/series/CES9092000001 and
https://fred.stlouisfed.org/series/CES9093000001 (last visited May 8, 2021).
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closures and other efforts to contain the pandemic. For example, a recipient may
provide aid to support safe reopening of businesses in the tourism, travel, and
hospitality industries and to business districts that were closed during the COVID-
19 public health emergency, as well as aid for a planned expansion or upgrade of
tourism, travel, and hospitality facilities delayed due to the pandemic.
When considering providing aid to industries other than tourism, travel,
and hospitality, recipients should consider the extent of the economic impact as
compared to tourism, travel, and hospitality, the industries enumerated in the
statute. For example, on net, the leisure and hospitality industry has experienced
an approximately 24 percent decline in revenue and approximately 17 percent
decline in employment nationwide due to the COVID-19 public health
emergency.89 Recipients should also consider whether impacts were due to the
COVID-19 pandemic, as opposed to longer-term economic or industrial trends
unrelated to the pandemic.
To facilitate transparency and accountability, the Interim Final Rule
requires that State, local, and Tribal governments publicly report assistance
provided to private-sector businesses under this eligible use, including tourism,
travel, hospitality, and other impacted industries, and its connection to negative
89 From February 2020 to April 2021, employment in “Leisure and hospitality” has fallen by
approximately 17 percent. See U.S. Bureau of Labor Statistics, All Employees, Leisure and Hospitality,
retrieved from FRED, Federal Reserve Bank of St. Louis, https://fred.stlouisfed.org/series/USLAH (last
visited May 8, 2021). From 2019Q4 to 2020Q4, gross output (e.g. revenue) in arts, entertainment,
recreation, accommodation, and food services has fallen by approximately 24 percent. See Bureau of
Economic Analysis, News Release: Gross Domestic Product (Third Estimate), Corporate Profits, and
GDP by Industry, Fourth Quarter and Year 2020 (Mar. 25, 2021), Table 17,
https://www.bea.gov/sites/default/files/2021-03/gdp4q20_3rd.pdf.
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economic impacts of the pandemic. Recipients also should maintain records to
support their assessment of how businesses or business districts receiving
assistance were affected by the negative economic impacts of the pandemic and
how the aid provided responds to these impacts.
As discussed above, economic disparities that existed prior to the COVID-19 public
health emergency amplified the impact of the pandemic among low-income and minority groups.
These families were more likely to face housing, food, and financial insecurity; are over-
represented among low-wage workers; and many have seen their livelihoods deteriorate further
during the pandemic and economic contraction. In recognition of the disproportionate negative
economic impacts on certain communities and populations, the Interim Final Rule identifies
services and programs that will be presumed to be responding to the negative economic impacts
of the COVID-19 public health emergency when provided in these communities.
Specifically, Treasury will presume that certain types of services, outlined below, are
eligible uses when provided in a QCT, to families and individuals living in QCTs, or when these
services are provided by Tribal governments.90 Recipients may also provide these services to
other populations, households, or geographic areas disproportionately impacted by the pandemic.
In identifying these disproportionately impacted communities, recipients should be able to
support their determination that the pandemic resulted in disproportionate public health or
economic outcomes to the specific populations, households, or geographic areas to be served.
The Interim Final Rule identifies a non-exclusive list of uses that address the disproportionate
negative economic effects of the COVID-19 public health emergency, including:
90 HUD, supra note 48.
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o Building Stronger Communities through Investments in Housing and Neighborhoods. The
economic impacts of COVID-19 have likely been most acute in lower-income
neighborhoods, including concentrated areas of high unemployment, limited economic
opportunity, and housing insecurity.91 Services in this category alleviate the immediate
economic impacts of the COVID-19 pandemic on housing insecurity, while addressing
conditions that contributed to poor public health and economic outcomes during the
pandemic, namely concentrated areas with limited economic opportunity and inadequate
or poor-quality housing.92 Eligible services include:
Services to address homelessness such as supportive housing, and to improve
access to stable, affordable housing among unhoused individuals;
Affordable housing development to increase supply of affordable and high-quality
living units; and
Housing vouchers, residential counseling, or housing navigation assistance to
facilitate household moves to neighborhoods with high levels of economic
opportunity and mobility for low-income residents, to help residents increase their
economic opportunity and reduce concentrated areas of low economic
opportunity.93
91 Stuart M. Butler & Jonathan Grabinsky, Tackling the legacy of persistent urban inequality and
concentrated poverty, Brookings Institution (Nov. 16, 2020), https://www.brookings.edu/blog/up-
front/2020/11/16/tackling-the-legacy-of-persistent-urban-inequality-and-concentrated-poverty/.
92 U.S. Department of Health and Human Services (HHS), Office of Disease Prevention and Health
Promotion, Quality of Housing, https://www.healthypeople.gov/2020/topics-objectives/topic/social-
determinants-health/interventions-resources/quality-of-housing#11 (last visited Apr. 26, 2021).
93 The Opportunity Atlas, https://www.opportunityatlas.org/ (last visited Apr. 26, 2021); Raj Chetty &
Nathaniel Hendren, The Impacts of Neighborhoods on Intergenerational Mobility I: Childhood Exposure
Effects, Quarterly J. of Econ. 133(3):1107-162 (2018), available at
https://opportunityinsights.org/paper/neighborhoodsi/.
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o Addressing Educational Disparities. As outlined above, school closures and the
transition to remote education raised particular challenges for lower-income students,
potentially exacerbating educational disparities, while increases in economic hardship
among families could have long-lasting impacts on children’s educational and economic
prospects. Services under this prong would enhance educational supports to help
mitigate impacts of the pandemic. Eligible services include:
New, expanded, or enhanced early learning services, including pre-kindergarten,
Head Start, or partnerships between pre-kindergarten programs and local
education authorities, or administration of those services;
Providing assistance to high-poverty school districts to advance equitable funding
across districts and geographies;
Evidence-based educational services and practices to address the academic needs
of students, including tutoring, summer, afterschool, and other extended learning
and enrichment programs; and
Evidence-based practices to address the social, emotional, and mental health
needs of students;
o Promoting Healthy Childhood Environments. Children’s economic and family
circumstances have a long-term impact on their future economic outcomes.94 Increases in
economic hardship, material insecurity, and parental stress and behavioral health
challenges all raise the risk of long-term harms to today’s children due to the pandemic.
Eligible services to address this challenge include:
94 See supra notes 52 and 84.
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New or expanded high-quality childcare to provide safe and supportive care for
children;
Home visiting programs to provide structured visits from health, parent educators,
and social service professionals to pregnant women or families with young
children to offer education and assistance navigating resources for economic
support, health needs, or child development; and
Enhanced services for child welfare-involved families and foster youth to provide
support and training on child development, positive parenting, coping skills, or
recovery for mental health and substance use challenges.
State, local, and Tribal governments are encouraged to use payments from the Fiscal
Recovery Funds to respond to the direct and immediate needs of the pandemic and its negative
economic impacts and, in particular, the needs of households and businesses that were
disproportionately and negatively impacted by the public health emergency. As highlighted
above, low-income communities and workers and people of color have faced more severe health
and economic outcomes during the pandemic, with pre-existing social vulnerabilities like low-
wage or insecure employment, concentrated neighborhoods with less economic opportunity, and
pre-existing health disparities likely contributing to the magnified impact of the pandemic. The
Fiscal Recovery Funds provide resources to not only respond to the immediate harms of the
pandemic but also to mitigate its longer-term impact in compounding the systemic public health
and economic challenges of disproportionately impacted populations. Treasury encourages
recipients to consider funding uses that foster a strong, inclusive, and equitable recovery,
especially uses with long-term benefits for health and economic outcomes.
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Uses Outside the Scope of this Category. Certain uses would not be within the scope of
this eligible use category, although may be eligible under other eligible use categories. A
general infrastructure project, for example, typically would not be included unless the project
responded to a specific pandemic public health need (e.g., investments in facilities for the
delivery of vaccines) or a specific negative economic impact like those described above (e.g.,
affordable housing in a QCT). The ARPA explicitly includes infrastructure if it is “necessary”
and in water, sewer, or broadband. See Section II.D of this Supplementary Information. State,
local, and Tribal governments also may use the Fiscal Recovery Funds under
sections 602(c)(1)(C) or 603(c)(1)(C) to provide “government services” broadly to the extent of
their reduction in revenue. See Section II.C of this Supplementary Information.
This category of eligible uses also would not include contributions to rainy day funds,
financial reserves, or similar funds. Resources made available under this eligible use category
are intended to help meet pandemic response needs and provide relief for households and
businesses facing near- and long-term negative economic impacts. Contributions to rainy day
funds and similar financial reserves would not address these needs or respond to the COVID-19
public health emergency but would rather constitute savings for future spending needs.
Similarly, this eligible use category would not include payment of interest or principal on
outstanding debt instruments, including, for example, short-term revenue or tax anticipation
notes, or other debt service costs. As discussed below, payments from the Fiscal Recovery
Funds are intended to be used prospectively and the Interim Final Rule precludes use of these
funds to cover the costs of debt incurred prior to March 3, 2021. Fees or issuance costs
associated with the issuance of new debt would also not be covered using payments from the
Fiscal Recovery Funds because such costs would not themselves have been incurred to address
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the needs of pandemic response or its negative economic impacts. The purpose of the Fiscal
Recovery Funds is to provide fiscal relief that will permit State, local, and Tribal governments to
continue to respond to the COVID-19 public health emergency.
For the same reasons, this category of eligible uses would not include satisfaction of any
obligation arising under or pursuant to a settlement agreement, judgment, consent decree, or
judicially confirmed debt restructuring plan in a judicial, administrative, or regulatory
proceeding, except to the extent the judgment or settlement requires the provision of services that
would respond to the COVID-19 public health emergency. That is, satisfaction of a settlement
or judgment would not itself respond to COVID-19 with respect to the public health emergency
or its negative economic impacts, unless the settlement requires the provision of services or aid
that did directly respond to these needs, as described above.
In addition, as described in Section V.III of this Supplementary Information, Treasury
will establish reporting and record keeping requirements for uses within this category, including
enhanced reporting requirements for certain types of uses.
Question 1: Are there other types of services or costs that Treasury should consider as
eligible uses to respond to the public health impacts of COVID-19? Describe how these respond
to the COVID-19 public health emergency.
Question 2: The Interim Final Rule permits coverage of payroll and benefits costs of public
health and safety staff primarily dedicated to COVID-19 response, as well as rehiring of public
sector staff up to pre-pandemic levels. For how long should these measures remain in place?
What other measures or presumptions might Treasury consider to assess the extent to which
public sector staff are engaged in COVID-19 response, and therefore reimbursable, in an easily-
administrable manner?
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Question 3: The Interim Final Rule permits rehiring of public sector staff up to the
government’s pre-pandemic staffing level, which is measured based on employment as of
January 27, 2021. Does this approach adequately measure the pre-pandemic staffing level in a
manner that is both accurate and easily administrable? Why or why not?
Question 4: The Interim Final Rule permits deposits to Unemployment Insurance Trust
Funds, or using funds to pay back advances, up to the pre-pandemic balance. What, if any,
conditions should be considered to ensure that funds repair economic impacts of the pandemic
and strengthen unemployment insurance systems?
Question 5: Are there other types of services or costs that Treasury should consider as
eligible uses to respond to the negative economic impacts of COVID-19? Describe how these
respond to the COVID-19 public health emergency.
Question 6: What other measures, presumptions, or considerations could be used to assess
“impacted industries” affected by the COVID-19 public health emergency?
Question 7: What are the advantages and disadvantages of using Qualified Census Tracts
and services provided by Tribal governments to delineate where a broader range of eligible uses
are presumed to be responsive to the public health and economic impacts of COVID-19? What
other measures might Treasury consider? Are there other populations or geographic areas that
were disproportionately impacted by the pandemic that should be explicitly included?
Question 8: Are there other services or costs that Treasury should consider as eligible uses
to respond to the disproportionate impacts of COVID-19 on low-income populations and
communities? Describe how these respond to the COVID-19 public health emergency or its
negative economic impacts, including its exacerbation of pre-existing challenges in these areas.
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Question 9: The Interim Final Rule includes eligible uses to support affordable housing and
stronger neighborhoods in disproportionately-impacted communities. Discuss the advantages
and disadvantages of explicitly including other uses to support affordable housing and stronger
neighborhoods, including rehabilitation of blighted properties or demolition of abandoned or
vacant properties. In what ways does, or does not, this potential use address public health or
economic impacts of the pandemic? What considerations, if any, could support use of Fiscal
Recovery Funds in ways that do not result in resident displacement or loss of affordable housing
units?
B. Premium Pay
Fiscal Recovery Funds payments may be used by recipients 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.95 These are
workers who have been and continue to be relied on to maintain continuity of operations of
essential critical infrastructure sectors, including those who are critical to protecting the health
and wellbeing of their communities.
Since the start of the COVID-19 public health emergency in January 2020, essential
workers have put their physical wellbeing at risk to meet the daily needs of their communities
and to provide care for others. In the course of this work, many essential workers have
contracted or died of COVID-19.96 Several examples reflect the severity of the health impacts
95 §§602(c)(1)(B), 603(c)(1)(B) of the Act.
96 See, e.g., Centers for Disease Control and Prevention, COVID Data Tracker: Cases & Death among
Healthcare Personnel, https://covid.cdc.gov/covid-data-tracker/#health-care-personnel (last visited May 4,
2021); Centers for Disease Control and Prevention, COVID Data Tracker: Confirmed COVID-19 Cases
and Deaths among Staff and Rate per 1,000 Resident-Weeks in Nursing Homes, by Week – United States,
https://covid.cdc.gov/covid-data-tracker/#nursing-home-staff (last visited May 4, 2021).
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for essential workers. Meat processing plants became “hotspots” for transmission, with 700 new
cases reported at a single plant on a single day in May 2020.97 In New York City, 120
employees of the Metropolitan Transit Authority were estimated to have died due to COVID-19
by mid-May 2020, with nearly 4,000 testing positive for the virus.98 Furthermore, many
essential workers are people of color or low-wage workers.99 These workers, in particular, have
borne a disproportionate share of the health and economic impacts of the pandemic. Such
workers include:
• Staff at nursing homes, hospitals, and home care settings;
• Workers at farms, food production facilities, grocery stores, and restaurants;
• Janitors and sanitation workers;
• Truck drivers, transit staff, and warehouse workers;
• Public health and safety staff;
• Childcare workers, educators, and other school staff; and
• Social service and human services staff.
During the public health emergency, employers’ policies on COVID-19-related hazard
pay have varied widely, with many essential workers not yet compensated for the heightened
97 See, e.g., The Lancet, The plight of essential workers during the COVID-19 pandemic, Vol. 395, Issue
10237:1587 (May 23, 2020), available at https://www.thelancet.com/journals/lancet/article/PIIS0140-
6736%2820%2931200-9/fulltext.
98 Id.
99 Joanna Gaitens et al., Covid-19 and essential workers: A narrative review of health outcomes and moral
injury, Int’l J. of Envtl. Research and Pub. Health 18(4):1446 (Feb. 4, 2021), available at
https://pubmed.ncbi.nlm.nih.gov/33557075/; Tiana N. Rogers et al., Racial Disparities in COVID‐19
Mortality Among Essential Workers in the United States, World Med. & Health policy 12(3):311-27
(Aug. 5, 2020), available at https://onlinelibrary.wiley.com/doi/full/10.1002/wmh3.358 (finding that
vulnerability to coronavirus exposure was increased among non-Hispanic blacks, who disproportionately
occupied the top nine essential occupations).
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risks they have faced and continue to face.100 Many of these workers earn lower wages on
average and live in socioeconomically vulnerable communities as compared to the general
population.101 A recent study found that 25 percent of essential workers were estimated to have
low household income, with 13 percent in high-risk households.102 The low pay of many
essential workers makes them less able to cope with the financial consequences of the pandemic
or their work-related health risks, including working hours lost due to sickness or disruptions to
childcare and other daily routines, or the likelihood of COVID-19 spread in their households or
communities. Thus, the threats and costs involved with maintaining the ongoing operation of
vital facilities and services have been, and continue to be, borne by those that are often the most
vulnerable to the pandemic. The added health risk to essential workers is one prominent way in
which the pandemic has amplified pre-existing socioeconomic inequities.
The Fiscal Recovery Funds will help respond to the needs of essential workers by
allowing recipients to remunerate essential workers for the elevated health risks they have faced
and continue to face during the public health emergency. To ensure that premium pay is targeted
to workers that faced or face heightened risks due to the character of their work, the Interim Final
Rule defines essential work as work involving regular in-person interactions or regular physical
handling of items that were also handled by others. A worker would not be engaged in essential
work and, accordingly may not receive premium pay, for telework performed from a residence.
100 Economic Policy Institute, Only 30% of those working outside their home are receiving hazard pay
(June 16, 2020), https://www.epi.org/press/only-30-of-those-working-outside-their-home-are-receiving-
hazard-pay-black-and-hispanic-workers-are-most-concerned-about-bringing-the-coronavirus-home/.
101 McCormack, supra note 37.
102 Id.
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Sections 602(g)(2) and 603(g)(2) define eligible worker to mean “those workers needed
to maintain continuity of operations of essential critical infrastructure sectors and additional
sectors as each Governor of a State or territory, or each Tribal government, may designate as
critical to protect the health and well-being of the residents of their State, territory, or Tribal
government.”103 The rule incorporates this definition and provides a list of industries recognized
as essential critical infrastructure sectors.104 These sectors include healthcare, public health and
safety, childcare, education, sanitation, transportation, and food production and services, among
others as noted above. As provided under sections 602(g)(2) and 603(g)(2), the chief executive
of each recipient has discretion to add additional sectors to this list, so long as additional sectors
are deemed critical to protect the health and well-being of residents.
In providing premium pay to essential workers or grants to eligible employers, a recipient
must consider whether the pay or grant would “respond to” to the worker or workers performing
essential work. Premium pay or grants provided under this section respond to workers
performing essential work if it addresses the heightened risk to workers who must be physically
present at a jobsite and, for many of whom, the costs associated with illness were hardest to bear
financially. Many of the workers performing critical essential services are low- or moderate-
income workers, such as those described above. The ARPA recognizes this by defining
premium pay to mean an amount up to $13 per hour in addition to wages or remuneration the
worker otherwise receives and in an aggregate amount not to exceed $25,000 per eligible worker.
To ensure the provision is implemented in a manner that compensates these workers, the Interim
103 §§602(g)(2), 603(g)(2) of the Act.
104 The list of critical infrastructure sectors provided in the Interim Final Rule is based on the list of
essential workers under The Heroes Act, H.R. 6800, 116th Cong. (2020).
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Final Rule provides that any premium pay or grants provided using the Fiscal Recovery Funds
should prioritize compensation of those lower income eligible workers that perform essential
work.
As such, providing premium pay to eligible workers responds to such workers by helping
address the disparity between the critical services and risks taken by essential workers and the
relatively low compensation they tend to receive in exchange. If premium pay would increase 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’ Occupational Employment and Wage
Statistics, or their residing county’s average annual wage, as defined by the Bureau of Labor
Statistics’ Occupational Employment and Wage Statistics, whichever is higher, on an annual
basis, the State, local, or Tribal government must provide Treasury and make publicly available,
whether for themselves or on behalf of a grantee, a written justification of how the premium pay
or grant is responsive to workers performing essential worker during the public health
emergency.105
The threshold of 150 percent for requiring additional written justification is based on an
analysis of the distribution of labor income for a sample of 20 occupations that generally
correspond to the essential workers as defined in the Interim Final Rule.106 For these
105 County median annual wage is taken to be that of the metropolitan or nonmetropolitan area that
includes the county. See U.S. Bureau of Labor Statistics, State Occupational Employment and Wage
Estimates, https://www.bls.gov/oes/current/oessrcst.htm (last visited May 1, 2021); U.S. Bureau of Labor
Statistics, May 2020 Metropolitan and Nonmetropolitan Area Estimates listed by county or town,
https://www.bls.gov/oes/current/county_links.htm (last visited May 1, 2021).
106 Treasury performed this analysis with data from the U.S. Census Bureau’s 2019 Annual Social and
Economic Supplement. In determining which occupations to include in this analysis, Treasury excluded
management and supervisory positions, as such positions may not necessarily involve regular in-person
interactions or physical handling of items to the same extent as non-managerial positions.
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occupations, labor income for the vast majority of workers was under 150 percent of average
annual labor income across all occupations. Treasury anticipates that the threshold of
150 percent of the annual average wage will be greater than the annual average wage of the vast
majority of eligible workers performing essential work. These enhanced reporting requirements
help to ensure grants are directed to essential workers in critical infrastructure sectors and
responsive to the impacts of the pandemic observed among essential workers, namely the mis-
alignment between health risks and compensation. Enhanced reporting also provides
transparency to the public. Finally, using a localized measure reflects differences in wages and
cost of living across the country, making this standard administrable and reflective of essential
worker incomes across a diverse range of geographic areas.
Furthermore, because premium pay is intended to compensate essential workers for
heightened risk due to COVID-19, it must be entirely additive to a worker’s regular rate of
wages and other remuneration and may not be used to reduce or substitute for a worker’s normal
earnings. The definition of premium pay also clarifies that premium pay may be provided
retrospectively for work performed at any time since the start of the COVID-19 public health
emergency, where those workers have yet to be compensated adequately for work previously
performed.107 Treasury encourages recipients to prioritize providing retrospective premium pay
where possible, recognizing that many essential workers have not yet received additional
compensation for work conducted over the course of many months. Essential workers who have
already earned premium pay for essential work performed during the COVID-19 public health
107 However, such compensation must be “in addition to” remuneration or wages already received. That
is, employers may not reduce such workers’ current pay and use Fiscal Recovery Funds to compensate
themselves for premium pay previously provided to the worker.
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emergency remain eligible for additional payments, and an essential worker may receive both
retrospective premium pay for prior work as well as prospective premium pay for current or
ongoing work.
To ensure any grants respond to the needs of essential workers and are made in a fair and
transparent manner, the rule imposes some additional reporting requirements for grants to third-
party employers, including the public disclosure of grants provided. See Section VIII of this
Supplementary Information, discussing reporting requirements. In responding to the needs of
essential workers, a grant to an employer may provide premium pay to eligible workers
performing essential work, as these terms are defined in the Interim Final Rule and discussed
above. A grant provided to an employer may also be for essential work performed by eligible
workers pursuant to a contract. For example, if a municipality contracts with a third party to
perform sanitation work, the third-party contractor could be eligible to receive a grant to provide
premium pay for these eligible workers.
Question 10: Are there additional sectors beyond those listed in the Interim Final Rule
that should be considered essential critical infrastructure sectors?
Question 11: What, if any, additional criteria should Treasury consider to ensure that
premium pay responds to essential workers?
Question 12: What consideration, if any, should be given to the criteria on salary
threshold, including measure and level, for requiring written justification?
C. Revenue Loss
Recipients may use payments from the Fiscal Recovery Funds for the provision of
government services to the extent of the reduction in revenue experienced due to the COVID-19
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public health emergency.108 Pursuant to sections 602(c)(1)(C) and 603(c)(1)(C) of the Act, a
recipient’s reduction in revenue is measured relative to the revenue collected in the most recent
full fiscal year prior to the emergency.
Many State, local, and Tribal governments are experiencing significant budget shortfalls,
which can have a devastating impact on communities. State government tax revenue from major
sources were down 4.3 percent in the six months ended September 2020, relative to the same
period 2019.109 At the local level, nearly 90 percent of cities have reported being less able to
meet the fiscal needs of their communities and, on average, cities expect a double-digit decline in
general fund revenues in their fiscal year 2021.110 Similarly, surveys of Tribal governments and
Tribal enterprises found majorities of respondents reporting substantial cost increases and
revenue decreases, with Tribal governments reporting reductions in healthcare, housing, social
services, and economic development activities as a result of reduced revenues.111 These budget
shortfalls are particularly problematic in the current environment, as State, local, and Tribal
governments work to mitigate and contain the COVID-19 pandemic and help citizens weather
the economic downturn.
108 ARPA, supra note 16.
109 Major sources include personal income tax, corporate income tax, sales tax, and property tax. See Lucy
Dadayan., States Reported Revenue Growth in July- – September Quarter, Reflecting Revenue Shifts
from the Prior Quarter, State Tax and Econ. Rev. (Q. 3, 2020), available at
https://www.urban.org/sites/default/files/publication/103938/state-tax-and-economic-review-2020-
q3_0.pdf
110 National League of Cities, City Fiscal Conditions (2020), available at https://www.nlc.org/wp-
content/uploads/2020/08/City_Fiscal_Conditions_2020_FINAL.pdf
111 Surveys conducted by the Center for Indian Country Development at the Federal Reserve Bank of
Minneapolis in March, April, and September 2020. See Moreno & Sobrepena, supra note 73.
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Further, State, local, and Tribal government budgets affect the broader economic
recovery. During the period following the 2007-2009 recession, State and local government
budget pressures led to fiscal austerity that was a significant drag on the overall economic
recovery.112 Inflation-adjusted State and local government revenue did not return to the previous
peak until 2013,113 while State, local, and Tribal government employment did not recover to its
prior peak for over a decade, until August 2019 – just a few months before the COVID-19 public
health emergency began.114
Sections 602(c)(1)(C) and 603(c)(1)(C) of the Act allow recipients facing budget
shortfalls to use payments from the Fiscal Recovery Funds to avoid cuts to government services
and, thus, enable State, local, and Tribal governments to continue to provide valuable services
and ensure that fiscal austerity measures do not hamper the broader economic recovery. The
Interim Final Rule implements these provisions by establishing a definition of “general revenue”
for purposes of calculating a loss in revenue and by providing a methodology for calculating
revenue lost due to the COVID-19 public health emergency.
112 See, e.g., Fitzpatrick, Haughwout & Setren, Fiscal Drag from the State and Local Sector?, Liberty
Street Economics Blog, Federal Reserve Bank of New York (June 27, 2012),
https://www.libertystreeteconomics.newyorkfed.org/2012/06/fiscal-drag-from-the-state-and-local-
sector.html; Jiri Jonas, Great Recession and Fiscal Squeeze at U.S. Subnational Government Level, IMF
Working Paper 12/184, (July 2012), available at
https://www.imf.org/external/pubs/ft/wp/2012/wp12184.pdf; Gordon, supra note 9.
113 State and local government general revenue from own sources, adjusted for inflation using the GDP
price index. U.S. Census Bureau, Annual Survey of State Government Finances and U.S. Bureau of
Economic Analysis, National Income and Product Accounts,
114 U.S. Bureau of Labor Statistics, All Employees, State Government [CES9092000001] and All
Employees, Local Government [CES9093000001], retrieved from FRED, Federal Reserve Bank of St.
Louis, https://fred.stlouisfed.org/series/CES9092000001 and
https://fred.stlouisfed.org/series/CES9093000001 (last visited Apr. 27, 2021).
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General Revenue. The Interim Final Rule adopts a definition of “general revenue” based
largely on the components reported under “General Revenue from Own Sources” in the Census
Bureau’s Annual Survey of State and Local Government Finances, and for purposes of this
Interim Final Rule, helps to ensure that the components of general revenue would be calculated
in a consistent manner.115 By relying on a methodology that is both familiar and comprehensive,
this approach minimizes burden to recipients and provides consistency in the measurement of
general revenue across a diverse set of recipients.
The Interim Final Rule defines the term “general revenue” to include revenues collected
by a recipient and generated from its underlying economy and would capture a range of different
types of tax revenues, as well as other types of revenue that are available to support government
services.116 In calculating revenue, recipients should sum across all revenue streams covered as
general revenue. This approach minimizes the administrative burden for recipients, provides for
greater consistency across recipients, and presents a more accurate representation of the overall
impact of the COVID-19 public health emergency on a recipient’s revenue, rather than relying
115 U.S. Census Bureau, Annual Survey of State and Local Government Finances,
https://www.census.gov/programs-surveys/gov-finances.html (last visited Apr. 30, 2021).
116 The Interim Final Rule would define tax revenue in a manner consistent with the Census Bureau’s
definition of tax revenue, with certain changes (i.e., inclusion of revenue from liquor stores and certain
intergovernmental transfers). Current charges are defined as “charges imposed for providing current
services or for the sale of products in connection with general government activities.” It includes
revenues such as public education institution, public hospital, and toll revenues. Miscellaneous general
revenue comprises of all other general revenue of governments from their own sources (i.e., other than
liquor store, utility, and insurance trust revenue), including rents, royalties, lottery proceeds, and fines.
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on financial reporting prepared by each recipient, which vary in methodology used and which
generally aggregates revenue by purpose rather than by source.117
Consistent with the Census Bureau’s definition of “general revenue from own sources,”
the definition of general revenue in the Interim Final Rule would exclude refunds and other
correcting transactions, proceeds from issuance of debt or the sale of investments, and agency or
private trust transactions. The definition of general revenue also would exclude revenue
generated by utilities and insurance trusts. In this way, the definition of general revenue focuses
on sources that are generated from economic activity and are available to fund government
services, rather than a fund or administrative unit established to account for and control a
particular activity.118 For example, public utilities typically require financial support from the
State, local, or Tribal government, rather than providing revenue to such government, and any
revenue that is generated by public utilities typically is used to support the public utility’s
continued operation, rather than being used as a source of revenue to support government
services generally.
The definition of general revenue would include all revenue from Tribal enterprises, as
this revenue is generated from economic activity and is available to fund government services.
Tribes are not able to generate revenue through taxes in the same manner as State and local
governments and, as a result, Tribal enterprises are critical sources of revenue for Tribal
117 Fund-oriented reporting, such as what is used under the Governmental Accounting Standards Board
(GASB), focuses on the types of uses and activities funded by the revenue, as opposed to the economic
activity from which the revenue is sourced. See Governmental Accounting Standards Series, Statement
No. 54 of the Governmental Accounting Standards Board: Fund Balance Reporting and Governmental
Fund Type Definitions, No. 287-B (Feb. 2009).
118 Supra note 116.
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governments that enable Tribal governments to provide a range of services, including elder care,
health clinics, wastewater management, and forestry.
Finally, the term “general revenue” includes intergovernmental transfers between State
and local governments, but excludes intergovernmental transfers from the Federal government,
including Federal transfers made via a State to a local government pursuant to the CRF or as part
of the Fiscal Recovery Funds. States and local governments often share or collect revenue on
behalf of one another, which results in intergovernmental transfers. When attributing revenue to
a unit of government, the Census Bureau’s methodology considers which unit of government
imposes, collects, and retains the revenue and assigns the revenue to the unit of government that
meets at least two of those three factors.119 For purposes of measuring loss in general revenue
due to the COVID-19 public health emergency and to better allow continued provision of
government services, the retention and ability to use the revenue is a more critical factor.
Accordingly, and to better measure the funds available for the provision of government services,
the definition of general revenue would include intergovernmental transfers from States or local
governments other than funds transferred pursuant to ARPA, CRF, or another Federal program.
This formulation recognizes the importance of State transfers for local government revenue.120
Calculation of Loss. In general, recipients will compute the extent of the reduction in
revenue by comparing actual revenue to a counterfactual trend representing what could have
been expected to occur in the absence of the pandemic. This approach measures losses in
119 U.S. Census Bureau, Government Finance and Employment Classification Manual (Dec. 2000),
https://www2.census.gov/govs/class/classfull.pdf
120 For example, in 2018, state transfers to localities accounted for approximately 27 percent of local
revenues. U.S. Census Bureau, Annual Survey of State and Local Government Finances, Table 1 (2018),
https://www.census.gov/data/datasets/2018/econ/local/public-use-datasets.html.
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revenue relative to the most recent fiscal year prior to the COVID-19 public health emergency by
using the most recent pre-pandemic fiscal year as the starting point for estimates of revenue
growth absent the pandemic. In other words, the counterfactual trend starts with the last full
fiscal year prior to the COVID-19 public health emergency and then assumes growth at a
constant rate in the subsequent years. Because recipients can estimate the revenue shortfall at
multiple points in time throughout the covered period as revenue is collected, this approach
accounts for variation across recipients in the timing of pandemic impacts.121 Although revenue
may decline for reasons unrelated to the COVID-19 public health emergency, to minimize the
administrative burden on recipients and taking into consideration the devastating effects of the
COVID-19 public health emergency, any diminution in actual revenues relative to the
counterfactual pre-pandemic trend would be presumed to have been due to the COVID-19 public
health emergency.
For purposes of measuring revenue growth in the counterfactual trend, recipients may use
a growth adjustment of either 4.1 percent per year or the recipient’s average annual revenue
growth over the three full fiscal years prior to the COVID-19 public health emergency,
whichever is higher. The option of 4.1 percent represents the average annual growth across all
State and local government “General Revenue from Own Sources” in the most recent three years
121 For example, following the 2007-09 recession, local government property tax collections did not begin
to decline until 2011, suggesting that property tax collection declines can lag downturns. See U.S. Bureau
of Economic Analysis, Personal current taxes: State and local: Property taxes [S210401A027NBEA],
retrieved from Federal Reserve Economic Data, Federal Reserve Bank of St. Louis,
https://fred.stlouisfed.org/graph/?g=r3YI (last visited Apr. 22, 2021). Estimating the reduction in revenue
at points throughout the covered period will allow for this type of lagged effect to be taken into account
during the covered period.
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of available data.122 This approach provides recipients with a standardized growth adjustment
when calculating the counterfactual revenue trend and thus minimizes administrative burden,
while not disadvantaging recipients with revenue growth that exceeded the national average prior
to the COVID-19 public health emergency by permitting these recipients to use their own
revenue growth rate over the preceding three years.
Recipients should calculate the extent of the reduction in revenue as of four points in
time: December 31, 2020; December 31, 2021; December 31, 2022; and December 31, 2023.
To calculate the extent of the reduction in revenue at each of these dates, recipients should
follow a four-step process:
• Step 1: Identify 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.
• Step 2: Estimate counterfactual revenue, which is equal to base year revenue *
[(1 + growth adjustment) ^( n/12)], where n is the number of months elapsed since
the end of the base year to the calculation date, and growth adjustment is the
greater of 4.1 percent and the recipient’s average annual revenue growth in the
three full fiscal years prior to the COVID-19 public health emergency.
• Step 3: Identify actual revenue, which equals revenues collected over the past
twelve months as of the calculation date.
122 Together with revenue from liquor stores from 2015 to 2018. This estimate does not include any
intergovernmental transfers. A recipient using the three-year average to calculate their growth adjustment
must be based on the definition of general revenue, including treatment of intergovernmental transfers.
2015 – 2018 represents the most recent available data. See U.S. Census Bureau, State & Local
Government Finance Historical Datasets and Tables (2018), https://www.census.gov/programs-
surveys/gov-finances/data/datasets.html.
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c:::::::::J ---+--
------
-------
---
• Step 4: The extent of the reduction in revenue is equal to counterfactual revenue
less actual revenue. If actual revenue exceeds counterfactual revenue, the extent
of the reduction in revenue is set to zero for that calculation date.
For illustration, consider a hypothetical recipient with base year revenue equal to 100. In
Step 2, the hypothetical recipient finds that 4.1 percent is greater than the recipient’s average
annual revenue growth in the three full fiscal years prior to the public health emergency.
Furthermore, this recipient’s base year ends June 30. In this illustration, n (months elapsed) and
counterfactual revenue would be equal to:
As of: 12/31/2020 12/31/2021 12/31/2022 12/31/2023
n (months
elapsed) 18 30 42 54
Counterfactual
revenue: 106.2 110.6 115.1 119.8
The overall methodology for calculating the reduction in revenue is illustrated in the
figure below:
140 Base year revenue
Extent of reduction in revenue
130 Actual revenue (last twelve months)
Counterfactual revenue 120
110
100
90
80
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Upon receiving Fiscal Recovery Fund payments, recipients may immediately calculate revenue
loss for the period ending December 31, 2020.
Sections 602(c)(1)(C) and 603(c)(1)(C) of the Act provide recipients with broad latitude to
use the Fiscal Recovery Funds for the provision of government services. Government services
can include, but are not limited to, maintenance or pay-go funded building 123 of infrastructure,
including roads; modernization of cybersecurity, including hardware, software, and protection of
critical infrastructure; health services; environmental remediation; school or educational
services; and the provision of police, fire, and other public safety services. However, expenses
associated with obligations under instruments evidencing financial indebtedness for borrowed
money would not be considered the provision of government services, as these financing
expenses do not directly provide services or aid to citizens. Specifically, government services
would not include interest or principal on any outstanding debt instrument, including, for
example, short-term revenue or tax anticipation notes, or fees or issuance costs associated with
the issuance of new debt. For the same reasons, government services would not include
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, except if the judgment or settlement required the provision of government
services. That is, satisfaction of a settlement or judgment itself is not a government service,
unless the settlement required the provision of government services. In addition, replenishing
financial reserves (e.g., rainy day or other reserve funds) would not be considered provision of a
123 Pay-go infrastructure funding refers to the practice of funding capital projects with cash-on-hand from
taxes, fees, grants, and other sources, rather than with borrowed sums.
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government service, since such expenses do not directly relate to the provision of government
services.
Question 13: Are there sources of revenue that either should or should not be included in
the Interim Final Rule’s measure of “general revenue” for recipients? If so, discuss why these
sources either should or should not be included.
Question 14: In the Interim Final Rule, recipients are expected to calculate the reduction
in revenue on an aggregate basis. Discuss the advantages and disadvantages of, and any
potential concerns with, this approach, including circumstances in which it could be necessary
or appropriate to calculate the reduction in revenue by source.
Question 15: Treasury is considering whether to take into account other factors,
including actions taken by the recipient as well as the expiration of the COVID-19 public health
emergency, in determining whether to presume that revenue losses are “due to” the COVID-19
public health emergency. Discuss the advantages and disadvantages of this presumption,
including when, if ever, during the covered period it would be appropriate to reevaluate the
presumption that all losses are attributable to the COVID-19 public health emergency.
Question 16: Do recipients anticipate lagged revenue effects of the public health
emergency? If so, when would these lagged effects be expected to occur, and what can Treasury
to do support these recipients through its implementation of the program?
Question 17: In the Interim Final Rule, paying interest or principal on government debt
is not considered provision of a government service. Discuss the advantages and disadvantages of
this approach, including circumstances in which paying interest or principal on government debt
could be considered provision of a government service.
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D. Investments in Infrastructure
To assist in meeting the critical need for investments and improvements to existing
infrastructure in water, sewer, and broadband, the Fiscal Recovery Funds provide funds to State,
local, and Tribal governments to make necessary investments in these sectors. The Interim Final
Rule outlines eligible uses within each category, allowing for a broad range of necessary
investments in projects that 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. Necessary investments include projects that
are required to maintain a level of service that, at least, meets applicable health-based standards,
taking into account resilience to climate change, or establishes or improves broadband service to
unserved or underserved populations to reach an adequate level to permit a household to work or
attend school, and that are unlikely to be met with private sources of funds.124
It is important that necessary investments in water, sewer, or broadband infrastructure be
carried out in ways that produce high-quality infrastructure, avert disruptive and costly delays,
and promote efficiency. Treasury encourages recipients to ensure that water, sewer, and
broadband projects use 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, not only to promote effective and efficient delivery of high-quality infrastructure
projects but also to support the economic recovery through strong employment opportunities for
workers. Using these practices in construction projects may help to ensure a reliable supply of
124 Treasury notes that using funds to support or oppose collective bargaining would not be included as
part of “necessary investments in water, sewer, or broadband infrastructure.”
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skilled labor that would minimize disruptions, such as those associated with labor disputes or
workplace injuries.
To provide public transparency on whether projects are using practices that promote on-
time and on-budget delivery, Treasury will seek information from recipients on their workforce
plans and practices related to water, sewer, and broadband projects undertaken with Fiscal
Recovery Funds. Treasury will provide additional guidance and instructions on the reporting
requirements at a later date.
1. Water and Sewer Infrastructure
The ARPA provides funds to State, local, and Tribal governments to make necessary
investments in water and sewer infrastructure.125 By permitting funds to be used for water and
sewer infrastructure needs, Congress recognized the critical role that clean drinking water and
services for the collection and treatment of wastewater and stormwater play in protecting public
health. Understanding that State, local, and Tribal governments have a broad range of water and
sewer infrastructure needs, the Interim Final Rule provides these governments with wide latitude
to identify investments in water and sewer infrastructure that are of the highest priority for their
own communities, which may include projects on privately-owned infrastructure. The Interim
Final Rule does this by aligning eligible uses of the Fiscal Recovery Funds with the wide range
of types or categories of projects that would be eligible to receive financial assistance through
the Environmental Protection Agency’s (EPA) Clean Water State Revolving Fund (CWSRF) or
Drinking Water State Revolving Fund (DWSRF).126
125 §§ 602(c)(1)(D), 603(c)(1)(D) of the Act.
126 Environmental Protection Agency, Drinking Water State Revolving fund, https://www.epa.gov/dwsrf
(last visited Apr. 30, 2021); Environmental Protection Agency, Clean Water State Revolving Fund,
https://www.epa.gov/cwsrf (last visited Apr. 30, 2021).
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Established by the 1987 amendments 127 to the Clean Water Act (CWA),128 the CWSRF
provides financial assistance for a wide range of water infrastructure projects to improve water
quality and address water pollution in a way that enables each State to address and prioritize the
needs of their populations. The types of projects eligible for CWSRF assistance include projects
to construct, improve, and repair wastewater treatment plants, control non-point sources of
pollution, improve resilience of infrastructure to severe weather events, create green
infrastructure, and protect waterbodies from pollution.129 Each of the 51 State programs
established under the CWSRF have the flexibility to direct funding to their particular
environmental needs, and each State may also have its own statutes, rules, and regulations that
guide project eligibility.130
127 Water Quality Act of 1987, P.L. 100-4.
128 Federal Water Pollution Control Act as amended, codified at 33 U.S.C. §§ 1251 et. seq., common
name (Clean Water Act). In 2009, the American Recovery and Reinvestment Act created the Green
Project Reserve, which increased the focus on green infrastructure, water and energy efficient, and
environmentally innovative projects. P.L. 111-5. The CWA was amended by the Water Resources
Reform and Development Act of 2014 to further expand the CWSRF’s eligibilities. P.L. 113-121. The
CWSRF’s eligibilities were further expanded in 2018 by the America’s Water Infrastructure Act of 2018,
P.L. 115-270.
129 See Environmental Protection Agency, The Drinking Water State Revolving Funds: Financing
America’s Drinking Water, EPA-816-R-00-023 (Nov. 2000),
https://nepis.epa.gov/Exe/ZyPDF.cgi/200024WB.PDF?Dockey=200024WB.PDF; See also
Environmental Protection Agency, Learn About the Clean Water State Revolving Fund,
https://www.epa.gov/cwsrf/learn-about-clean-water-state-revolving-fund-cwsrf (last visited Apr. 30,
2021).
130 33 U.S.C. § 1383(c). See also Environmental Protection Agency, Overview of Clean Water State
Revolving Fund Eligibilities(May 2016), https://www.epa.gov/sites/production/files/2016-
07/documents/overview_of_cwsrf_eligibilities_may_2016.pdf; Claudia Copeland, Clean Water Act: A
Summary of the Law, Congressional Research Service (Oct. 18, 2016),
https://fas.org/sgp/crs/misc/RL30030.pdf; Jonathan L Ramseur, Wastewater Infrastructure: Overview,
Funding, and Legislative Developments, Congressional Research Service (May 22, 2018),
https://fas.org/sgp/crs/misc/R44963.pdf.
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The DWSRF was modeled on the CWSRF and created as part of the 1996 amendments to
the Safe Drinking Water Act (SDWA),131 with the principal objective of helping public water
systems obtain financing for improvements necessary to protect public health and comply with
drinking water regulations.132 Like the CWSRF, the DWSRF provides States with the flexibility
to meet the needs of their populations.133 The primary use of DWSRF funds is to assist
communities in making water infrastructure capital improvements, including the installation and
replacement of failing treatment and distribution systems.134 In administering these programs,
States must give priority to projects that ensure compliance with applicable health and
environmental safety requirements; address the most serious risks to human health; and assist
systems most in need on a per household basis according to State affordability criteria.135
By aligning use of Fiscal Recovery Funds with the categories or types of eligible projects
under the existing EPA state revolving fund programs, the Interim Final Rule provides recipients
with the flexibility to respond to the needs of their communities while ensuring that investments
in water and sewer infrastructure made using Fiscal Recovery Funds are necessary. As discussed
above, the CWSRF and DWSRF were designed to provide funding for projects that protect
public health and safety by ensuring compliance with wastewater and drinking water health
131 42 U.S.C. 300j-12.
132 Environmental Protection Agency, Drinking Water State Revolving Fund Eligibility Handbook, (June
2017), https://www.epa.gov/sites/production/files/2017-
06/documents/dwsrf_eligibility_handbook_june_13_2017_updated_508_version.pdf; Environmental
Protection Agency, Drinking Water Infrastructure Needs Survey and Assessment: Sixth Report to
Congress (March 2018), https://www.epa.gov/sites/production/files/2018-
10/documents/corrected_sixth_drinking_water_infrastructure_needs_survey_and_assessment.pdf “.
133 Id.
134 Id.
135 42 U.S.C. 300j-12(b)(3)(A).
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standards.136 The need to provide funding through the state revolving funds suggests that these
projects are less likely to be addressed with private sources of funding; for example, by
remediating failing or inadequate infrastructure, much of which is publicly owned, and by
addressing non-point sources of pollution. This approach of aligning with the EPA state
revolving fund programs also supports expedited project identification and investment so that
needed relief for the people and communities most affected by the pandemic can deployed
expeditiously and have a positive impact on their health and wellbeing as soon as possible.
Further, the Interim Final Rule is intended to preserve flexibility for award recipients to direct
funding to their own particular needs and priorities and would not preclude recipients from
applying their own additional project eligibility criteria.
In addition, responding to the immediate needs of the COVID-19 public health
emergency may have diverted both personnel and financial resources from other State, local, and
Tribal priorities, including projects to ensure compliance with applicable water health and
quality standards and provide safe drinking and usable water.137 Through sections 602(c)(1)(D)
and 603(c)(1)(D), the ARPA provides resources to address these needs. Moreover, using Fiscal
Recovery Funds in accordance with the priorities of the CWA and SWDA to “assist systems
most in need on a per household basis according to state affordability criteria” would also have
136 Environmental Protection Agency, Learn About the Clean Water State Revolving Fund,
https://www.epa.gov/cwsrf/learn-about-clean-water-state-revolving-fund-cwsrf (last visited Apr. 30,
2021); 42 U.S.C. 300j-12.
137 House Committee on the Budget, State and Local Governments are in Dire Need of Federal Relief
(Aug. 19, 2020), https://budget.house.gov/publications/report/state-and-local-governments-are-dire-need-
federal-relief.
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the benefit of providing vulnerable populations with safe drinking water that is critical to their
health and, thus, their ability to work and learn.138
Recipients may use Fiscal Recovery Funds to invest in a broad range of projects that
improve drinking water infrastructure, such as building or upgrading facilities and transmission,
distribution, and storage systems, including replacement of lead service lines. Given the lifelong
impacts of lead exposure for children, and the widespread nature of lead service lines, Treasury
encourages recipients to consider projects to replace lead service lines.
Fiscal Recovery Funds may also be used to support the consolidation or establishment of
drinking water systems. With respect to wastewater infrastructure, recipients may use Fiscal
Recovery Funds to construct publicly owned treatment infrastructure, manage and treat
stormwater or subsurface drainage water, facilitate water reuse, and secure publicly owned
treatment works, among other uses. Finally, consistent with the CWSRF and DWSRF, Fiscal
Recovery Funds may be used for cybersecurity needs to protect water or sewer infrastructure,
such as developing effective cybersecurity practices and measures at drinking water systems and
publicly owned treatment works.
Many of the types of projects eligible under either the CWSRF or DWSRF also support
efforts to address climate change. For example, by taking steps to manage potential sources of
pollution and preventing these sources from reaching sources of drinking water, projects eligible
under the DWSRF and the ARPA may reduce energy required to treat drinking water. Similarly,
138 Environmental Protection Agency, Drinking Water State Revolving Fund (Nov. 2019),
https://www.epa.gov/sites/production/files/2019-11/documents/fact_sheet_-
_dwsrf_overview_final_0.pdf; Environmental Protection Agency, National Benefits Analysis for
Drinking Water Regulations, https://www.epa.gov/sdwa/national-benefits-analysis-drinking-water-
regulations (last visited Apr. 30, 2020).
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projects eligible under the CWSRF include measures to conserve and reuse water or reduce the
energy consumption of public water treatment facilities. Treasury encourages recipients to
consider green infrastructure investments and projects to improve resilience to the effects of
climate change. For example, more frequent and extreme precipitation events combined with
construction and development trends have led to increased instances of stormwater runoff, water
pollution, and flooding. Green infrastructure projects that support stormwater system resiliency
could include rain gardens that provide water storage and filtration benefits, and green streets,
where vegetation, soil, and engineered systems are combined to direct and filter rainwater from
impervious surfaces. In cases of a natural disaster, recipients may also use Fiscal Recovery
Funds to provide relief, such as interconnecting water systems or rehabilitating existing wells
during an extended drought.
Question 18: What are the advantages and disadvantages of aligning eligible uses with
the eligible project type requirements of the DWSRF and CWSRF? What other water or sewer
project categories, if any, should Treasury consider in addition to DWSRF and CWSRF eligible
projects? Should Treasury consider a broader general category of water and sewer projects?
Question 19: What additional water and sewer infrastructure categories, if any, should
Treasury consider to address and respond to the needs of unserved, undeserved, or rural
communities? How do these projects differ from DWSFR and CWSRF eligible projects?
Question 20: What new categories of water and sewer infrastructure, if any, should
Treasury consider to support State, local, and Tribal governments in mitigating the negative
impacts of climate change? Discuss emerging technologies and processes that support resiliency
of water and sewer infrastructure. Discuss any challenges faced by States and local
governments when pursuing or implementing climate resilient infrastructure projects.
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Question 21: Infrastructure projects related to dams and reservoirs are generally not
eligible under the CWSRF and DWSRF categories. Should Treasury consider expanding eligible
infrastructure under the Interim Final Rule to include dam and reservoir projects? Discuss
public health, environmental, climate, or equity benefits and costs in expanding the eligibility to
include these types of projects.
2. Broadband Infrastructure.
The COVID-19 public health emergency has underscored the importance of universally
available, high-speed, reliable, and affordable broadband coverage as millions of Americans rely
on the internet to participate in, among critical activities, remote school, healthcare, and work.
Recognizing the need for such connectivity, the ARPA provides funds to State, territorial, local,
and Tribal governments to make necessary investments in broadband infrastructure.
The National Telecommunications and Information Administration (NTIA) highlighted
the growing necessity of broadband in daily lives through its analysis of NTIA Internet Use
Survey data, noting that Americans turn to broadband Internet access service for every facet of
daily life including work, study, and healthcare.139 With increased use of technology for daily
activities and the movement by many businesses and schools to operating remotely during the
pandemic, broadband has become even more critical for people across the country to carry out
their daily lives.
139 See, e.g., https://www.ntia.gov/blog/2020/more-half-american-households-used-internet-health-
related-activities-2019-ntia-data-show; https://www.ntia.gov/blog/2020/nearly-third-american-employees-
worked-remotely-2019-ntia-data-show; and generally, https://www.ntia.gov/data/digital-nation-data-
explorer.
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By at least one measure, however, tens of millions of Americans live in areas where there
is no broadband infrastructure that provides download speeds greater than 25 Mbps and upload
speeds of 3 Mbps.140 By contrast, as noted below, many households use upload and download
speeds of 100 Mbps to meet their daily needs. Even in areas where broadband infrastructure
exists, broadband access may be out of reach for millions of Americans because it is
unaffordable, as the United States has some of the highest broadband prices in the Organisation
for Economic Co-operation and Development (OECD).141 There are disparities in availability as
well; historically, Americans living in territories and Tribal lands as well as rural areas have
disproportionately lacked sufficient broadband infrastructure.142 Moreover, rapidly growing
demand has, and will likely continue to, quickly outpace infrastructure capacity, a phenomenon
acknowledged by various states around the country that have set scalability requirements to
account for this anticipated growth in demand.143
140 As an example, data from the Federal Communications Commission shows that as of June 2020,
9.07 percent of the U.S. population had no available cable or fiber broadband providers providing greater
than 25 Mbps download speeds and 3 Mbps upload speeds. Availability was significantly less for rural
versus urban populations, with 35.57 percent of the rural population lacking such access, compared with
2.57 percent of the urban population. Availability was also significantly less for tribal versus non-tribal
populations, with 35.93 percent of the tribal population lacking such access, compared with 8.74 of the
non-tribal population. Federal Communications Commission, Fixed Broadband Deployment,
https://broadbandmap.fcc.gov/#/ (last visited May 9, 2021).
141 How Do U.S. Internet Costs Compare To The Rest Of The World?, BroadbandSearch Blog Post,
available at https://www.broadbandsearch.net/blog/internet-costs-compared-worldwide.
142 See, e.g., Federal Communications Commission, Fourteenth Broadband Deployment Report, available
at https://docs.fcc.gov/public/attachments/FCC-21-18A1.pdf.
143 See, e.g., Illinois Department of Commerce & Economic Opportunity, Broadband Grants, h (last
visited May 9, 2021), https://www2.illinois.gov/dceo/ConnectIllinois/Pages/BroadbandGrants.aspx;
Kansas Office of Broadband Development, Broadband Acceleration Grant,
https://www.kansascommerce.gov/wp-content/uploads/2020/11/Broadband-Acceleration-Grant.pdf (last
visited May 9, 2021); New York State Association of Counties, Universal Broadband: Deploying High
Speed Internet Access in NYS (Jul. 2017),
https://www.nysac.org/files/BroadbandUpdateReport2017(1).pdf.
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The Interim Final Rule provides that eligible investments in broadband are those that are
designed to provide services meeting adequate speeds and are provided to unserved and
underserved households and businesses. Understanding that States, territories, localities, and
Tribal governments have a wide range of varied broadband infrastructure needs, the Interim
Final Rule provides award recipients with flexibility to identify the specific locations within their
communities to be served and to otherwise design the project.
Under the Interim Final Rule, eligible projects are expected to be designed to deliver,
upon project completion, service that reliably meets or exceeds symmetrical upload and
download speeds of 100 Mbps. There may be instances in which it would not be practicable for
a project to deliver such service speeds because of the geography, topography, or excessive costs
associated with such a project. In these instances, the affected project would be expected to be
designed to deliver, upon project completion, service that reliably meets or exceeds 100 Mbps
download and between at least 20 Mbps and 100 Mbps upload speeds and be scalable to a
minimum of 100 Mbps symmetrical for download and upload speeds.144 In setting these
standards, Treasury identified speeds necessary to ensure that broadband infrastructure is
sufficient to enable users to generally meet household needs, including the ability to support the
simultaneous use of work, education, and health applications, and also sufficiently robust to meet
increasing household demands for bandwidth. Treasury also recognizes that different
communities and their members may have a broad range of internet needs and that those needs
may change over time.
144 This scalability threshold is consistent with scalability requirements used in other jurisdictions. Id.
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In considering the appropriate speed requirements for eligible projects, Treasury
considered estimates of typical households demands during the pandemic. Using the Federal
Communication Commission’s (FCC) Broadband Speed Guide, for example, a household with
two telecommuters and two to three remote learners today are estimated to need 100 Mbps
download to work simultaneously.145 In households with more members, the demands may be
greater, and in households with fewer members, the demands may be less.
In considering the appropriate speed requirements for eligible projects, Treasury also
considered data usage patterns and how bandwidth needs have changed over time for U.S.
households and businesses as people’s use of technology in their daily lives has evolved. In the
few years preceding the pandemic, market research data showed that average upload speeds in
the United States surpassed over 10 Mbps in 2017 146 and continued to increase significantly,
with the average upload speed as of November, 2019 increasing to 48.41 Mbps,147 attributable,
in part to a shift to using broadband and the internet by individuals and businesses to create and
share content using video sharing, video conferencing, and other applications.148
The increasing use of data accelerated markedly during the pandemic as households
across the country became increasingly reliant on tools and applications that require greater
145 Federal Communications Commission, Broadband Speed Guide,
https://www.fcc.gov/consumers/guides/broadband-speed-guide (last visited Apr. 30, 2021).
146 Letter from Lisa R. Youngers, President and CEO of Fiber Broadband Association to FCC, WC
Docket No. 19-126 (filed Jan. 3, 2020), including an Appendix with research from RVA LLC, Data
Review Of The Importance of Upload Speeds (Jan. 2020), and Ookla speed test data, available at
https://ecfsapi.fcc.gov/file/101030085118517/FCC%20RDOF%20Jan%203%20Ex%20Parte.pdf.
Additional information on historic growth in data usage is provided in Schools, Health & Libraries
Broadband Coalition, Common Sense Solutions for Closing the Digital Divide, Apr. 29, 2021.
147 Id. See also United States's Mobile and Broadband Internet Speeds - Speedtest Global Index, available
at https://www.speedtest.net/global-index/united-states#fixed.
148 Id.
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internet capacity, both to download data but also to upload data. Sending information became as
important as receiving it. A video consultation with a healthcare provider or participation by a
child in a live classroom with a teacher and fellow students requires video to be sent and
received simultaneously.149 As an example, some video conferencing technology platforms
indicate that download and upload speeds should be roughly equal to support two-way,
interactive video meetings.150 For both work and school, client materials or completed school
assignments, which may be in the form of PDF files, videos, or graphic files, also need to be
shared with others. This is often done by uploading materials to a collaboration site, and the
upload speed available to a user can have a significant impact on the time it takes for the content
to be shared with others. 151 These activities require significant capacity from home internet
connections to both download and upload data, especially when there are multiple individuals in
one household engaging in these activities simultaneously.
This need for increased broadband capacity during the pandemic was reflected in
increased usage patterns seen over the last year. As OpenVault noted in recent advisories, the
pandemic significantly increased the amount of data users consume. Among data users observed
by OpenVault, per-subscriber average data usage for the fourth quarter of 2020 was
482.6 gigabytes per month, representing a 40 percent increase over the 344 gigabytes consumed
in the fourth quarter of 2019 and a 26 percent increase over the third quarter 2020 average of
149 One high definition Zoom meeting or class requires approximately 3.8 Mbps/3.0 Mbps (up/down).
150 See, e.g., Zoom, System Requirements for Windows, macOS, and Linux,
https://support.zoom.us/hc/en-us/articles/201362023-System-requirements-for-Windows-macOS-and-
Linux#h_d278c327-e03d-4896-b19a-96a8f3c0c69c (last visited May 8, 2021).
151 By one estimate, to upload a one gigabit video file to YouTube would take 15 minutes at an upload
speed of 10 Mbps compared with 1 minute, 30 seconds at an upload speed of 100 Mbps, and 30 seconds
at an upload speed of 300 Mbps. Reviews.org: What is Symmetrical Internet? (March 2020).
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383.8 gigabytes.152 OpenVault also noted significant increases in upstream usage among the data
users it observed, with upstream data usage growing 63 percent – from 19 gigabytes to 31
gigabytes – between December, 2019 and December, 2020.153 According to an OECD
Broadband statistic from June 2020, the largest percentage of U.S. broadband subscribers have
services providing speeds between 100 Mbps and 1 Gbps.154
Jurisdictions and Federal programs are increasingly responding to the growing demands
of their communities for both heightened download and upload speeds. For example,
Illinois now requires 100 Mbps symmetrical service as the construction standard for its state
broadband grant programs. This standard is also consistent with speed levels, particularly
download speed levels, prioritized by other Federal programs supporting broadband projects.
Bids submitted as part of the FCC in its Rural Digital Opportunity Fund (RDOF), established to
support the construction of broadband networks in rural communities across the country, are
given priority if they offer faster service, with the service offerings of 100 Mbps download and
152 OVBI: Covid-19 Drove 15 percent Increase in Broadband Traffic in 2020, OpenVault, Quarterly
Advisory, (Feb. 10, 2021), available at https://openvault.com/ovbi-covid-19-drove-51-increase-in-
broadband-traffic-in-2020; See OpenVault’s data set incorporates information on usage by subscribers
across multiple continents, including North America and Europe. Additional data and detail on increases
in the amount of data users consume and the broadband speeds they are using is provided in OpenVault
Broadband Insights Report Q4, Quarterly Advisory (Feb. 10, 2021), available at
https://openvault.com/complimentary-report-4q20/.
153 OVBI Special Report: 202 Upstream Growth Nearly 4X of Pre-Pandemic Years, OpenVault, Quarterly
Advisory, (April 1, 20201), available at https://openvault.com/ovbi-special-report-2020-upstream-
growth-rate-nearly-4x-of-pre-pandemic-years/; Additional data is provided in OpenVault Broadband
Insights Pandemic Impact on Upstream Broadband Usage and Network Capacity, available at
https://openvault.com/upstream-whitepaper/.
154 Organisation for Economic Co-operation and Development, Fixed broadband subscriptions per 100
inhabitants, per speed tiers (June 2020), https://www.oecd.org/sti/broadband/5.1-FixedBB-SpeedTiers-
2020-06.xls www.oecd.org/sti/broadband/broadband-statistics.
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20 Mbps upload being included in the “above baseline” performance tier set by the FCC.155 The
Broadband Infrastructure Program (BBIP)156 of the Department of Commerce, which provides
Federal funding to deploy broadband infrastructure to eligible service areas of the country also
prioritizes projects designed to provide broadband service with a download speed of not less than
100 Mbps and an upload speed of not less than 20 Mbps.157
The 100 Mbps upload and download speeds will support the increased and growing needs
of households and businesses. Recognizing that, in some instances, 100 Mbps upload speed may
be impracticable due to geographical, topographical, or financial constraints, the Interim Final
Rule permits upload speeds of between at least 20 Mbps and 100 Mbps in such instances. To
provide for investments that will accommodate technologies requiring symmetry in download
and upload speeds, as noted above, eligible projects that are not designed to deliver, upon project
completion, service that reliably meets or exceeds symmetrical speeds of 100 Mbps because it
would be impracticable to do so should be designed so that they can be scalable to such speeds.
Recipients are also encouraged to prioritize investments in fiber optic infrastructure where
feasible, as such advanced technology enables the next generation of application solutions for all
communities.
Under the Interim Final Rule, eligible projects are expected to focus on locations that are
unserved or underserved. The Interim Final Rule treats users as being unserved or underserved if
they lack access to a wireline connection capable of reliably delivering at least minimum speeds
155 Rural Digital Opportunity Fund, Report and Order, 35 FCC Rcd 686, 690, para. 9 (2020), available at
https://www.fcc.gov/document/fcc-launches-20-billion-rural-digital-opportunity-fund-0.
156 The BIPP was authorized by the Consolidated Appropriations Act, 2021, Section 905, Public Law
116-260, 134 Stat. 1182 (Dec. 27, 2020).
157 Section 905(d)(4) of the Consolidated Appropriations Act, 2021.
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of 25 Mbps download and 3 Mbps upload as households and businesses lacking this level of
access are generally not viewed as being able to originate and receive high-quality voice, data,
graphics, and video telecommunications. This threshold is consistent with the FCC’s benchmark
for an “advanced telecommunications capability.”158 This threshold is also consistent with
thresholds used in other Federal programs to identify eligible areas to be served by programs to
improve broadband services. For example, in the FCC’s RDOF program, eligible areas include
those without current (or already funded) access to terrestrial broadband service providing
25 Mbps download and 3 Mbps upload speeds.159 The Department of Commerce’s BBIP also
considers households to be “unserved” generally if they lack access to broadband service with a
download speed of not less than 25 Mbps download and 3 Mbps upload, among other conditions.
In selecting an area to be served by a project, recipients are encouraged to avoid investing in
locations that have existing agreements to build reliable wireline service with minimum speeds
of 100 Mbps download and 20 Mbps upload by December 31, 2024, in order to avoid duplication
of efforts and resources.
Recipients are also encouraged to consider ways to integrate affordability options into
their program design. To meet the immediate needs of unserved and underserved households
and businesses, recipients are encouraged to focus on projects that deliver a physical broadband
connection by prioritizing projects that achieve last mile-connections. Treasury also encourages
recipients to prioritize support for broadband networks owned, operated by, or affiliated with
158 Deployment Report, supra note 142.
159 Rural Digital Opportunity Fund, supra note 156.
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local governments, non-profits, and co-operatives—providers with less pressure to turn profits
and with a commitment to serving entire communities.
Under sections 602(c)(1)(A) and 603(c)(1)(A), assistance to households facing negative
economic impacts due to COVID-19 is also an eligible use, including internet access or digital
literacy assistance. As discussed above, in considering whether a potential use is eligible under
this category, a recipient must consider whether, and the extent to which, the household has
experienced a negative economic impact from the pandemic.
Question 22: What are the advantages and disadvantages of setting minimum
symmetrical download and upload speeds of 100 Mbps? What other minimum standards would
be appropriate and why?
Question 23: Would setting such a minimum be impractical for particular types of
projects? If so, where and on what basis should those projects be identified? How could such a
standard be set while also taking into account the practicality of using this standard in
particular types of projects? In addition to topography, geography, and financial factors, what
other constraints, if any, are relevant to considering whether an investment is impracticable?
Question 24: What are the advantages and disadvantages of setting a minimum level of
service at 100 Mbps download and 20 Mbps upload in projects where it is impracticable to set
minimum symmetrical download and upload speeds of 100 Mbps? What are the advantages and
disadvantages of setting a scalability requirement in these cases? What other minimum
standards would be appropriate and why?
Question 25: What are the advantages and disadvantages of focusing these investments
on those without access to a wireline connection that reliably delivers 25 Mbps download by
3 Mbps upload? Would another threshold be appropriate and why?
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Question 26: What are the advantages and disadvantages of setting any particular
threshold for identifying unserved or underserved areas, minimum speed standards or scalability
minimum? Are there other standards that should be set (e.g., latency)? If so, why and
how? How can such threshold, standards, or minimum be set in a way that balances the public’s
interest in making sure that reliable broadband services meeting the daily needs of all Americans
are available throughout the country with the providing recipients flexibility to meet the varied
needs of their communities?
III. Restrictions on Use
As discussed above, recipients have considerable flexibility to use Fiscal Recovery Funds
to address the diverse needs of their communities. To ensure that payments from the Fiscal
Recovery Funds are used for these congressionally permitted purposes, the ARPA includes two
provisions that further define the boundaries of the statute’s eligible uses. Section 602(c)(2)(A)
of the Act provides that States and territories may not “use the funds … to either directly or
indirectly offset a reduction in … net tax revenue … resulting from a change in law, regulation,
or administrative interpretation during the covered period that reduces any tax … or delays the
imposition of any tax or tax increase.” In addition, sections 602(c)(2)(B) and 603(c)(2) prohibit
any recipient, including cities, nonentitlement units of government, and counties, from using
Fiscal Recovery Funds for deposit into any pension fund. These restrictions support the use of
funds for the congressionally permitted purposes described in Section II of this Supplementary
Information by providing a backstop against the use of funds for purposes outside of the eligible
use categories.
These provisions give force to Congress’s clear intent that Fiscal Recovery Funds be
spent within the four eligible uses identified in the statute—(1) to respond to the public health
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emergency and its negative economic impacts, (2) to provide premium pay to essential workers,
(3) to provide government services to the extent of eligible governments’ revenue losses, and
(4) to make necessary water, sewer, and broadband infrastructure investments—and not
otherwise. These four eligible uses reflect Congress’s judgment that the Fiscal Recovery Funds
should be expended in particular ways that support recovery from the COVID-19 public health
emergency. The further restrictions reflect Congress’s judgment that tax cuts and pension
deposits do not fall within these eligible uses. The Interim Final Rule describes how Treasury
will identify when such uses have occurred and how it will recoup funds put toward these
impermissible uses and, as discussed in Section VIII of this Supplementary Information,
establishes a reporting framework for monitoring the use of Fiscal Recovery Funds for eligible
uses.
A. Deposit into Pension Funds
The statute provides that recipients may not use Fiscal Recovery Funds for “deposit into
any pension fund.” For the reasons discussed below, Treasury interprets “deposit” in this context
to refer to an extraordinary payment into a pension fund for the purpose of reducing an accrued,
unfunded liability. More specifically, the Interim Final Rule does not permit this assistance to be
used to make a payment into a pension fund if both:
1. the payment reduces a liability incurred prior to the start of the COVID-19 public health
emergency, and
2. the payment occurs outside the recipient’s regular timing for making such payments.
Under this interpretation, a “deposit” is distinct from a “payroll contribution,” which
occurs when employers make payments into pension funds on regular intervals, with
contribution amounts based on a pre-determined percentage of employees’ wages and salaries.
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As discussed above, eligible uses for premium pay and responding to the negative
economic impacts of the COVID-19 public health emergency include hiring and compensating
public sector employees. Interpreting the scope of “deposit” to exclude contributions that are
part of payroll contributions is more consistent with these eligible uses and would reduce
administrative burden for recipients. Accordingly, if an employee’s wages and salaries are an
eligible use of Fiscal Recovery Funds, recipients may treat the employee’s covered benefits as an
eligible use of Fiscal Recovery Funds. For purposes of the Fiscal Recovery Funds, covered
benefits include costs of all types of leave (vacation, family-related, sick, military, bereavement,
sabbatical, jury duty), employee insurance (health, life, dental, vision), retirement (pensions,
401(k)), unemployment benefit plans (Federal and State), workers’ compensation insurance, and
Federal Insurance Contributions Act taxes (which includes Social Security and Medicare taxes).
Treasury anticipates that this approach to employees’ covered benefits will be
comprehensive and, for employees whose wage and salary costs are eligible expenses, will allow
all covered benefits listed in the previous paragraph to be eligible under the Fiscal Recovery
Funds. Treasury expects that this will minimize the administrative burden on recipients by
treating all the specified covered benefit types as eligible expenses, for employees whose wage
and salary costs are eligible expenses.
Question 27: Beyond a “deposit” and a “payroll contribution,” are there other types of
payments into a pension fund that Treasury should consider?
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B. Offset a Reduction in Net Tax Revenue
For States and territories (recipient governments 160), section 602(c)(2)(A)—the offset
provision—prohibits the use of Fiscal Recovery Funds to directly or indirectly offset a reduction
in net tax revenue resulting from a change in law, regulation, or administrative interpretation 161
during the covered period. If a State or territory uses Fiscal Recovery Funds to offset a reduction
in net tax revenue, the ARPA provides that the State or territory must repay to the Treasury an
amount equal to the lesser of (i) the amount of the applicable reduction attributable to the
impermissible offset and (ii) the amount received by the State or territory under the ARPA. See
Section IV of this Supplementary Information. As discussed below Section IV of this
Supplementary Information, a State or territory that chooses to use Fiscal Recovery Funds to
offset a reduction in net tax revenue does not forfeit its entire allocation of Fiscal Recovery
Funds (unless it misused the full allocation to offset a reduction in net tax revenue) or any non-
ARPA funding received.
The Interim Final Rule implements these conditions by establishing a framework for
States and territories to determine the cost of changes in law, regulation, or interpretation that
reduce tax revenue and to identify and value the sources of funds that will offset—i.e., cover the
cost of—any reduction in net tax revenue resulting from such changes. A recipient government
would only be considered to have used Fiscal Recovery Funds to offset a reduction in net tax
revenue resulting from changes in law, regulation, or interpretation if, and to the extent that, the
160 In this sub-section, “recipient governments” refers only to States and territories. In other sections,
“recipient governments” refers more broadly to eligible governments receiving funding from the Fiscal
Recovery Funds.
161 For brevity, referred to as “changes in law, regulation, or interpretation” for the remainder of this
preamble.
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recipient government could not identify sufficient funds from sources other than the Fiscal
Recovery Funds to offset the reduction in net tax revenue. If sufficient funds from other sources
cannot be identified to cover the full cost of the reduction in net tax revenue resulting from
changes in law, regulation, or interpretation, the remaining amount not covered by these sources
will be considered to have been offset by Fiscal Recovery Funds, in contravention of the offset
provision. The Interim Final Rule recognizes three sources of funds that may offset a reduction
in net tax revenue other than Fiscal Recovery Funds—organic growth, increases in revenue (e.g.,
an increase in a tax rate), and certain cuts in spending.
In order to reduce burden, the Interim Final Rule’s approach also incorporates the types
of information and modeling already used by States and territories in their own fiscal and
budgeting processes. By incorporating existing budgeting processes and capabilities, States and
territories will be able to assess and evaluate the relationship of tax and budget decisions to uses
of the Fiscal Recovery Funds based on information they likely have or can obtain. This
approach ensures that recipient governments have the information they need to understand the
implications of their decisions regarding the use of the Fiscal Recovery Funds—and, in
particular, whether they are using the funds to directly or indirectly offset a reduction in net tax
revenue, making them potentially subject to recoupment.
Reporting on both the eligible uses and on a State’s or territory’s covered tax changes
that would reduce tax revenue will enable identification of, and recoupment for, use of Fiscal
Recovery Funds to directly offset reductions in tax revenue resulting from tax relief. Moreover,
this approach recognizes that, because money is fungible, even if Fiscal Recovery Funds are not
explicitly or directly used to cover the costs of changes that reduce net tax revenue, those funds
may be used in a manner inconsistent with the statute by indirectly being used to substitute for
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the State’s or territory’s funds that would otherwise have been needed to cover the costs of the
reduction. By focusing on the cost of changes that reduce net tax revenue—and how a recipient
government is offsetting those reductions in constructing its budget over the covered period—the
framework prevents efforts to use Fiscal Recovery Funds to indirectly offset reductions in net tax
revenue for which the recipient government has not identified other offsetting sources of
funding.
As discussed in greater detail below in this preamble, the framework set forth in the
Interim Final Rule establishes a step-by-step process for determining whether, and the extent to
which, Fiscal Recovery Funds have been used to offset a reduction in net tax revenue. Based on
information reported annually by the recipient government:
• First, each year, each recipient government will identify and value the changes in law,
regulation, or interpretation that would result in a reduction in net tax revenue, as it
would in the ordinary course of its budgeting process. The sum of these values in the
year for which the government is reporting is the amount it needs to “pay for” with
sources other than Fiscal Recovery Funds (total value of revenue reducing changes).
• Second, the Interim Final Rule recognizes that it may be difficult to predict how a change
would affect net tax revenue in future years and, accordingly, provides that if the total
value of the changes in the year for which the recipient government is reporting is below
a de minimis level, as discussed below, the recipient government need not identify any
sources of funding to pay for revenue reducing changes and will not be subject to
recoupment.
• Third, a recipient government will consider the amount of actual tax revenue recorded in
the year for which they are reporting. If the recipient government’s actual tax revenue is
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greater than the amount of tax revenue received by the recipient for the fiscal year ending
2019, adjusted annually for inflation, the recipient government will not be considered to
have violated the offset provision because there will not have been a reduction in net tax
revenue.
• Fourth, if the recipient government’s actual tax revenue is less than the amount of tax
revenue received by the recipient government for the fiscal year ending 2019, adjusted
annually for inflation, in the reporting year the recipient government will identify any
sources of funds that have been used to permissibly offset the total value of covered tax
changes other than Fiscal Recovery Funds. These are:
o State or territory tax changes that would increase any source of general fund
revenue, such as a change that would increase a tax rate; and
o Spending cuts in areas not being replaced by Fiscal Recovery Funds.
The recipient government will calculate the value of revenue reduction remaining after
applying these sources of offsetting funding to the total value of revenue reducing
changes—that, is, how much of the tax change has not been paid for. The recipient
government will then compare that value to the difference between the baseline and
actual tax revenue. A recipient government will not be required to repay to the Treasury
an amount that is greater than the recipient government’s actual tax revenue shortfall
relative to the baseline (i.e., fiscal year 2019 tax revenue adjusted for inflation). This
“revenue reduction cap,” together with Step 3, ensures that recipient governments can use
organic revenue growth to offset the cost of revenue reductions.
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• Finally, if there are any amounts that could be subject to recoupment, Treasury will
provide notice to the recipient government of such amounts. This process is discussed in
greater detail in Section IV of this Supplementary Information.
Together, these steps allow Treasury to identify the amount of reduction in net tax
revenue that both is attributable to covered changes and has been directly or indirectly offset
with Fiscal Recovery Funds. This process ensures Fiscal Recovery Funds are used in a manner
consistent with the statute’s defined eligible uses and the offset provision’s limitation on these
eligible uses, while avoiding undue interference with State and territory decisions regarding tax
and spending policies.
The Interim Final Rule also implements a process for recouping Fiscal Recovery Funds
that were used to offset reductions in net tax revenue, including the calculation of any amounts
that may be subject to recoupment, a process for a recipient government to respond to a notice of
recoupment, and clarification regarding amounts excluded from recoupment. See Section IV of
this Supplementary Information.
The Interim Final Rule includes several definitions that are applicable to the
implementation of the offset provision.
Covered change. The offset provision is triggered by a reduction in net tax revenue
resulting from “a change in law, regulation, or administrative interpretation.” A covered change
includes any final legislative or regulatory action, a new or changed administrative interpretation,
and the phase-in or taking effect of any statute or rule where the phase-in or taking effect was not
prescribed prior to the start of the covered period. Changed administrative interpretations would
not include corrections to replace prior inaccurate interpretations; such corrections would instead
be treated as changes implementing legislation enacted or regulations issued prior to the covered
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period; the operative change in those circumstances is the underlying legislation or regulation
that occurred prior to the covered period. Moreover, only the changes within the control of the
State or territory are considered covered changes. Covered changes do not include a change in
rate that is triggered automatically and based on statutory or regulatory criteria in effect prior to
the covered period. For example, a state law that sets its earned income tax credit (EITC) at a
fixed percentage of the Federal EITC will see its EITC payments automatically increase—and
thus its tax revenue reduced—because of the Federal government’s expansion of the EITC in the
ARPA.162 This would not be considered a covered change. In addition, the offset provision
applies only to actions for which the change in policy occurs during the covered period; it
excludes regulations or other actions that implement a change or law substantively enacted prior
to March 3, 2021. Finally, Treasury has determined and previously announced that income tax
changes—even those made during the covered period—that simply conform with recent changes
in Federal law (including those to conform to recent changes in Federal taxation of
unemployment insurance benefits and taxation of loan forgiveness under the Paycheck
Protection Program) are permissible under the offset provision.
Baseline. For purposes of measuring a reduction in net tax revenue, the Interim Final
Rule measures actual changes in tax revenue relative to a revenue baseline (baseline). The
baseline will be calculated as fiscal year 2019 (FY 2019) tax revenue indexed for inflation in
162 See, e.g., Tax Policy Center, How do state earned income tax credits work?,
https://www.taxpolicycenter.org/briefing-book/how-do-state-earned-income-tax-credits-work/ (last
visited May 9, 2021).
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each year of the covered period, with inflation calculated using the Bureau of Economic
Analysis’s Implicit Price Deflator.163
FY 2019 was chosen as the starting year for the baseline because it is the last full fiscal
year prior to the COVID-19 public health emergency.164 This baseline year is consistent with the
approach directed by the ARPA in sections 602(c)(1)(C) and 603(c)(1)(C), which identify the
“most recent full fiscal year of the [State, territory, or Tribal government] prior to the
emergency” as the comparator for measuring revenue loss. U.S. gross domestic product is
projected to rebound to pre-pandemic levels in 2021,165 suggesting that an FY 2019 pre-
pandemic baseline is a reasonable comparator for future revenue levels. The FY 2019 baseline
revenue will be adjusted annually for inflation to allow for direct comparison of actual tax
revenue in each year (reported in nominal terms) to baseline revenue in common units of
measurement; without inflation adjustment, each dollar of reported actual tax revenue would be
worth less than each dollar of baseline revenue expressed in 2019 terms.
Reporting year. The Interim Final Rule defines “reporting year” as a single year within
the covered period, aligned to the current fiscal year of the recipient government during the
covered period, for which a recipient government reports the value of covered changes and any
sources of offsetting revenue increases (“in-year” value), regardless of when those changes were
enacted. For the fiscal years ending in 2021 or 2025 (partial years), the term “reporting year”
163 U.S. Department of Commerce, Bureau of Economic Analysis, GDP Price Deflator,
https://www.bea.gov/data/prices-inflation/gdp-price-deflator (last visited May 9, 2021).
164 Using Fiscal Year 2019 is consistent with section 602 as Congress provided for using that baseline for
determining the impact of revenue loss affecting the provision of government services. See section
602(c)(1)(C).
165 Congressional Budget Office, An Overview of the Economic Outlook: 2021 to 2031 (February 1,
2021), available at https://www.cbo.gov/publication/56965.
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refers to the portion of the year falling within the covered period. For example, the reporting
year for a fiscal year beginning July 2020 and ending June 2021 would be from March 3, 2021 to
July 2021.
Tax revenue. The Interim Final Rule’s definition of “tax revenue” is based on the Census
Bureau’s definition of taxes, used for its Annual Survey of State Government Finances.166 It
provides a consistent, well-established definition with which States and territories will be
familiar and is consistent with the approach taken in Section II.C of this Supplementary
Information describing the implementation of sections 602(c)(1)(C) and 603(c)(1)(C) of the Act,
regarding revenue loss. Consistent with the approach described in Section II.C of this
Supplementary Information, tax revenue does not include revenue taxed and collected by a
different unit of government (e.g., revenue from taxes levied by a local government and
transferred to a recipient government).
Framework. The Interim Final Rule provides a step-by-step framework, to be used in
each reporting year, to calculate whether the offset provision applies to a State’s or territory’s use
of Fiscal Recovery Funds:
(1) Covered changes that reduce tax revenue. For each reporting year, a recipient
government will identify and value covered changes that the recipient government predicts will
have the effect of reducing tax revenue in a given reporting year, similar to the way it would in
the ordinary course of its budgeting process. The value of these covered changes may be
reported based on estimated values produced by a budget model, incorporating reasonable
assumptions, that aligns with the recipient government’s existing approach for measuring the
166 U.S. Census Bureau, Annual Survey of State and Local Government Finances Glossary,
https://www.census.gov/programs-surveys/state/about/glossary.html (last visited Apr. 30, 2021).
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effects of fiscal policies, and that measures relative to a current law baseline. The covered
changes may also be reported based on actual values using a statistical methodology to isolate
the change in year-over-year revenue attributable to the covered change(s), relative to the current
law baseline prior to the change(s). Further, estimation approaches should not use dynamic
methodologies that incorporate the projected effects of macroeconomic growth because
macroeconomic growth is accounted for separately in the framework. Relative to these dynamic
scoring methodologies, scoring methodologies that do not incorporate projected effects of
macroeconomic growth rely on fewer assumptions and thus provide greater consistency among
States and territories. Dynamic scoring that incorporates macroeconomic growth may also
increase the likelihood of underestimation of the cost of a reduction in tax revenue.
In general and where possible, reporting should be produced by the agency of the
recipient government responsible for estimating the costs and effects of fiscal policy changes.
This approach offers recipient governments the flexibility to determine their reporting
methodology based on their existing budget scoring practices and capabilities. In addition, the
approach of using the projected value of changes in law that enact fiscal policies to estimate the
net effect of such policies is consistent with the way many States and territories already consider
tax changes.167
(2) In excess of the de minimis. The recipient government will next calculate the total
value of all covered changes in the reporting year resulting in revenue reductions, identified in
Step 1. If the total value of the revenue reductions resulting from these changes is below the de
167 See, e.g., Megan Randall & Kim Rueben, Tax Policy Center, Sustainable Budgeting in the States:
Evidence on State Budget Institutions and Practices (Nov. 2017), available at
https://www.taxpolicycenter.org/sites/default/files/publication/149186/sustainable-budgeting-in-the-
states_1.pdf.
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minimis level, the recipient government will be deemed not to have any revenue-reducing
changes for the purpose of determining the recognized net reduction. If the total is above the de
minimis level, the recipient government must identify sources of in-year revenue to cover the full
costs of changes that reduce tax revenue.
The de minimis level is calculated as 1 percent of the reporting year’s baseline. Treasury
recognizes that, pursuant to their taxing authority, States and territories may make many small
changes to alter the composition of their tax revenues or implement other policies with marginal
effects on tax revenues. They may also make changes based on projected revenue effects that
turn out to differ from actual effects, unintentionally resulting in minor revenue changes that are
not fairly described as “resulting from” tax law changes. The de minimis level recognizes the
inherent challenges and uncertainties that recipient governments face, and thus allows relatively
small reductions in tax revenue without consequence. Treasury determined the 1 percent level
by assessing the historical effects of state-level tax policy changes in state EITCs implemented to
effect policy goals other than reducing net tax revenues.168 The 1 percent de minimis level
reflects the historical reductions in revenue due to minor changes in state fiscal policies.
(3) Safe harbor. The recipient government will then compare the reporting year’s actual
tax revenue to the baseline. If actual tax revenue is greater than the baseline, Treasury will deem
the recipient government not to have any recognized net reduction for the reporting year, and
therefore to be in a safe harbor and outside the ambit of the offset provision. This approach is
consistent with the ARPA, which contemplates recoupment of Fiscal Recovery Funds only in the
event that such funds are used to offset a reduction in net tax revenue. If net tax revenue has not
168 Data provided by the Urban-Brookings Tax Policy Center for state-level EITC changes for 2004-2017.
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been reduced, this provision does not apply. In the event that actual tax revenue is above the
baseline, the organic revenue growth that has occurred, plus any other revenue-raising changes,
by definition must have been enough to offset the in-year costs of the covered changes.
(4) Consideration of other sources of funding. Next, the recipient government will
identify and calculate the total value of changes that could pay for revenue reduction due to
covered changes and sum these items. This amount can be used to pay for up to the total value
of revenue-reducing changes in the reporting year. These changes consist of two categories:
(a) Tax and other increases in revenue. The recipient government must identify and
consider covered changes in policy that the recipient government predicts will have the effect of
increasing general revenue in a given reporting year. As when identifying and valuing covered
changes that reduce tax revenue, the value of revenue-raising changes may be reported based on
estimated values produced by a budget model, incorporating reasonable assumptions, aligned
with the recipient government’s existing approach for measuring the effects of fiscal policies,
and measured relative to a current law baseline, or based on actual values using a statistical
methodology to isolate the change in year-over-year revenue attributable to the covered
change(s). Further, and as discussed above, estimation approaches should not use dynamic
scoring methodologies that incorporate the effects of macroeconomic growth because growth is
accounted for separately under the Interim Final Rule. In general and where possible, reporting
should be produced by the agency of the recipient government responsible for estimating the
costs and effects of fiscal policy changes. This approach offers recipient governments the
flexibility to determine their reporting methodology based on their existing budget scoring
practices and capabilities.
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(b) Covered spending cuts. A recipient government also may cut spending in certain
areas to pay for covered changes that reduce tax revenue, up to the amount of the recipient
government’s net reduction in total spending as described below. These changes must be
reductions in government outlays not in an area where the recipient government has spent Fiscal
Recovery Funds. To better align with existing reporting and accounting, the Interim Final Rule
considers the department, agency, or authority from which spending has been cut and whether
the recipient government has spent Fiscal Recovery Funds on that same department, agency, or
authority. This approach was selected to allow recipient governments to report how Fiscal
Recovery Funds have been spent using reporting units already incorporated into their budgeting
process. If they have not spent Fiscal Recovery Funds in a department, agency, or authority, the
full amount of the reduction in spending counts as a covered spending cut, up to the recipient
government’s net reduction in total spending. If they have, the Fiscal Recovery Funds generally
would be deemed to have replaced the amount of spending cut and only reductions in spending
above the amount of Fiscal Recovery Funds spent on the department, agency, or authority would
count.
To calculate the amount of spending cuts that are available to offset a reduction in tax
revenue, the recipient government must first consider whether there has been a reduction in total
net spending, excluding Fiscal Recovery Funds (net reduction in total spending). This approach
ensures that reported spending cuts actually create fiscal space, rather than simply offsetting
other spending increases. A net reduction in total spending is measured as the difference
between total spending in each reporting year, excluding Fiscal Recovery Funds spent, relative to
total spending for the recipient’s fiscal year ending in 2019, adjusted for inflation. Measuring
reductions in spending relative to 2019 reflects the fact that the fiscal space created by a
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spending cut persists so long as spending remains below its original level, even if it does not
decline further, relative to the same amount of revenue. Measuring spending cuts from year to
year would, by contrast, not recognize any available funds to offset revenue reductions unless
spending continued to decline, failing to reflect the actual availability of funds created by a
persistent change and limiting the discretion of States and territories. In general and where
possible, reporting should be produced by the agency of the recipient government responsible for
estimating the costs and effects of fiscal policy changes. Treasury chose this approach because
while many recipient governments may score budget legislation using projections, spending cuts
are readily observable using actual values.
This approach—allowing only spending reductions in areas where the recipient
government has not spent Fiscal Recovery Funds to be used as an offset for a reduction in net tax
revenue—aims to prevent recipient governments from using Fiscal Recovery Funds to supplant
State or territory funding in the eligible use areas, and then use those State or territory funds to
offset tax cuts. Such an approach helps ensure that Fiscal Recovery Funds are not used to
“indirectly” offset revenue reductions due to covered changes.
In order to help ensure recipient governments use Fiscal Recovery Funds in a manner
consistent with the prescribed eligible uses and do not use Fiscal Recovery Funds to indirectly
offset a reduction in net tax revenue resulting from a covered change, Treasury will monitor
changes in spending throughout the covered period. If, over the course of the covered period, a
spending cut is subsequently replaced with Fiscal Recovery Funds and used to indirectly offset a
reduction in net tax revenue resulting from a covered change, Treasury may consider such
change to be an evasion of the restrictions of the offset provision and seek recoupment of such
amounts.
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(5) Identification of amounts subject to recoupment. If a recipient government (i) reports
covered changes that reduce tax revenue (Step 1); (ii) to a degree greater than the de minimis
(Step 2); (iii) has experienced a reduction in net tax revenue (Step 3); and (iv) lacks sufficient
revenue from other, permissible sources to pay for the entirety of the reduction (Step 4), then the
recipient government will be considered to have used Fiscal Recovery Funds to offset a
reduction in net tax revenue, up to the amount that revenue has actually declined. That is, the
maximum value of reduction in revenue due to covered changes which a recipient government
must cover is capped at the difference between the baseline and actual tax revenue.169 In the
event that the baseline is above actual tax revenue and the difference between them is less than
the sum of revenue reducing changes that are not paid for with other, permissible sources,
organic revenue growth has implicitly offset a portion of the reduction. For example, if a
recipient government reduces tax revenue by $1 billion, makes no other changes, and
experiences revenue growth driven by organic economic growth worth $500 million, it need only
pay for the remaining $500 million with sources other than Fiscal Recovery Funds. The revenue
reduction cap implements this approach for permitting organic revenue growth to cover the cost
of tax cuts.
Finally, as discussed further in Section IV of this Supplementary Information, a recipient
government may request reconsideration of any amounts identified as subject to recoupment
under this framework. This process ensures that all relevant facts and circumstances, including
information regarding planned spending cuts and budgeting assumptions, are considered prior to
a determination that an amount must be repaid. Amounts subject to recoupment are calculated
169 This cap is applied in section 35.8(c) of the Interim Final Rule, calculating the amount of funds used in
violation of the tax offset provision.
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on an annual basis; amounts recouped in one year cannot be returned if the State or territory
subsequently reports an increase in net tax revenue.
To facilitate the implementation of the framework above, and in addition to reporting
required on eligible uses, in each year of the reporting period, each State and territory will report
to Treasury the following items:
• Actual net tax revenue for the reporting year;
• Each revenue-reducing change made to date during the covered period and the in-year
value of each change;
• Each revenue-raising change made to date during the covered period and the in-year
value of each change;
• Each covered spending cut made to date during the covered period, the in-year value of
each cut, and documentation demonstrating that each spending cut is covered as
prescribed under the Interim Final Rule;
Treasury will provide additional guidance and instructions the reporting requirements at a later
date.
Question 28: Does the Interim Final Rule’s definition of tax revenue accord with existing
State and territorial practice and, if not, are there other definitions or elements Treasury should
consider? Discuss why or why not.
Question 29: The Interim Final Rule permits certain spending cuts to cover the costs of
reductions in tax revenue, including cuts in a department, agency, or authority in which the
recipient government is not using Fiscal Recovery Funds. How should Treasury and recipient
governments consider the scope of a department, agency, or authority for the use of funds to
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ensure spending cuts are not being substituted with Fiscal Recovery Funds while also avoiding
an overbroad definition of that captures spending that is, in fact, distinct?
Question 30: Discuss the budget scoring methodologies currently used by States and
territories. How should the Interim Final Rule take into consideration differences in
approaches? Please discuss the use of practices including but not limited to macrodynamic
scoring, microdynamic scoring, and length of budget windows.
Question 31: If a recipient government has a balanced budget requirement, how will that
requirement impact its use of Fiscal Recovery Funds and ability to implement this framework?
Question 32: To implement the framework described above, the Interim Final Rule
establishes certain reporting requirements. To what extent do recipient governments already
produce this information and on what timeline? Discuss ways that Treasury and recipient
governments may better rely on information already produced, while ensuring a consistent
application of the framework.
Question 33: Discuss States’ and territories’ ability to produce the figures and numbers
required for reporting under the Interim Final Rule. What additional reporting tools, such as a
standardized template, would facilitate States’ and territories’ ability to complete the reporting
required under the Interim Final Rule?
C. Other Restrictions on Use
Payments from the Fiscal Recovery Funds are also subject to pre-existing limitations
provided in other Federal statutes and regulations and may not be used as non-Federal match for
other Federal programs whose statute or regulations bar the use of Federal funds to meet
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matching requirements. For example, payments from the Fiscal Recovery Funds may not be
used to satisfy the State share of Medicaid.170
As provided for in the award terms, payments from the Fiscal Recovery Funds as a
general matter will be subject to the provisions of the Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (2 CFR 200) (the Uniform
Guidance), including the cost principles and restrictions on general provisions for selected items
of cost.
D. Timeline for Use of Fiscal Recovery Funds
Section 602(c)(1) and section 603(c)(1) require that payments from the Fiscal Recovery
Funds be used only to cover costs incurred by the State, territory, Tribal government, or local
government by December 31, 2024. Similarly, the CARES Act provided that payments from the
CRF be used to cover costs incurred by December 31, 2021.171 The definition of “incurred” does
not have a clear meaning. With respect to the CARES Act, on the understanding that the CRF
was intended to be used to meet relatively short-term needs, Treasury interpreted this
requirement to mean that, for a cost to be considered to have been incurred, performance of the
service or delivery of the goods acquired must occur by December 31, 2021. In contrast, the
ARPA, passed at a different stage of the COVID-19 public health emergency, was intended to
provide more general fiscal relief over a broader timeline. In addition, the ARPA expressly
permits the use of Fiscal Recovery Funds for improvements to water, sewer, and broadband
infrastructure, which entail a longer timeframe. In recognition of this, Treasury is interpreting
170 See 42 CFR 433.51 and 45 CFR 75.306.
171 Section 1001 of Division N of the Consolidated Appropriations Act, 2021 amended section 601(d)(3)
of the Act by extending the end of the covered period for CRF expenditures from December 30, 2020 to
December 31, 2021.
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the requirement in section 602 and section 603 that costs be incurred by December 31, 2024, to
require only that recipients have obligated the Fiscal Recovery Funds by such date. The Interim
Final Rule adopts a definition of “obligation” that is based on the definition used for purposes of
the Uniform Guidance, which will allow for uniform administration of this requirement and is a
definition with which most recipients will be familiar.
Payments from the Fiscal Recovery Funds are grants provided to recipients to mitigate
the fiscal effects of the COVID-19 public health emergency and to respond to the public health
emergency, consistent with the eligible uses enumerated in sections 602(c)(1) and 603(c)(1).172
As such, these funds are intended to provide economic stimulus in areas still recovering from the
economic effects of the pandemic. In implementing and interpreting these provisions, including
what it means to “respond to” the COVID-19 public health emergency, Treasury takes into
consideration pre-pandemic facts and circumstances (e.g., average revenue growth prior to the
pandemic) as well as impact of the pandemic that predate the enactment of the ARPA (e.g.,
replenishing Unemployment Trust balances drawn during the pandemic). While assessing the
effects of the COVID-19 public health emergency necessarily takes into consideration the facts
and circumstances that predate the ARPA, use of Fiscal Recovery Funds is forward looking.
As discussed above, recipients are permitted to use payments from the Fiscal Recovery
Funds to respond to the public health emergency, to respond to workers performing essential
work by providing premium pay or providing grants to eligible employers, and to make
necessary investments in water, sewer, or broadband infrastructure, which all relate to
prospective uses. In addition, sections 602(c)(1)(C) and 603(c)(1)(C) permit recipients to use
172 §§ 602(a), 603(a), 602(c)(1) and 603(c)(1) of the Act.
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Fiscal Recovery Funds for the provision of government services. This clause provides that the
amount of funds that may be used for this purpose is measured by reference to the reduction in
revenue due to the public health emergency relative to revenues collected in the most recent full
fiscal year, but this reference does not relate to the period during which recipients may use the
funds, which instead refers to prospective uses, consistent with the other eligible uses.
Although as discussed above the eligible uses of payments from the Fiscal Recovery
Funds are all prospective in nature, Treasury considers the beginning of the covered period for
purposes of determining compliance with section 602(c)(2)(A) to be the relevant reference point
for this purpose. The Interim Final Rule thus permits funds to be used to cover costs incurred
beginning on March 3, 2021. This aligns the period for use of Fiscal Recovery Funds with the
period during which these funds may not be used to offset reductions in net tax revenue.
Permitting Fiscal Recovery Funds to be used to cover costs incurred beginning on this date will
also mean that recipients that began incurring costs in the anticipation of enactment of the ARPA
and in advance of the issuance of this rule and receipt of payment from the Fiscal Recovery
Funds would be able to cover them using these payments.173
As set forth in the award terms, the period of performance will run until
December 31, 2026, which will provide recipients a reasonable amount of time to complete
projects funded with payments from the Fiscal Recovery Funds.
173 Given the nature of this program, recipients will not be permitted to use funds to cover pre-award
costs, i.e., those incurred prior to March 3, 2021.
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IV. Recoupment Process
Under the ARPA, failure to comply with the restrictions on use contained in
sections 602(c) and 603(c) of the Act may result in recoupment of funds.174 The Interim Final
Rule implements these provisions by establishing a process for recoupment.
Identification and Notice of Violations. Failure to comply with the restrictions on use
will be identified based on reporting provided by the recipient. As discussed further in
Sections III.B and VIII of this Supplementary Information, Treasury will collect information
regarding eligible uses on a quarterly basis and on the tax offset provision on an annual basis.
Treasury also may consider other information in identifying a violation, such as information
provided by members of the public. If Treasury identifies a violation, it will provide written
notice to the recipient along with an explanation of such amounts.
Request for Reconsideration. Under the Interim Final Rule, a recipient may submit a
request for reconsideration of any amounts identified in the notice provided by Treasury. This
reconsideration process provides a recipient the opportunity to submit additional information it
believes supports its request in light of the notice of recoupment, including, for example,
additional information regarding the recipient’s use of Fiscal Recovery Funds or its tax revenues.
The process also provides the Secretary with an opportunity to consider all information relevant
to whether a violation has occurred, and if so, the appropriate amount for recoupment.
The Interim Final Rule also establishes requirements for the timing of a request for
reconsideration. Specifically, if a recipient wishes to request reconsideration of any amounts
identified in the notice, the recipient must submit a written request for reconsideration to the
174 §§ 602(e) and 603(e) of the Act.
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Secretary within 60 calendar days of receipt of such notice. The request must include an
explanation of why the recipient believes that the finding of a violation or recoupable amount
identified in the notice of recoupment should be reconsidered. To facilitate the Secretary’s
review of a recipient’s request for reconsideration, the request should identify all supporting
reasons for the request. Within 60 calendar days of receipt of the recipient’s request for
reconsideration, the recipient will be notified of the Secretary’s decision to affirm, withdraw, or
modify the notice of recoupment. Such notification will include an explanation of the decision,
including responses to the recipient’s supporting reasons and consideration of additional
information provided.
The process and timeline established by the Interim Final Rule are intended to provide
the recipient with an adequate opportunity to fully present any issues or arguments in response to
the notice of recoupment.175 This process will allow the Secretary to respond to the issues and
considerations raised in the request for reconsideration taking into account the information and
arguments presented by the recipient along with any other relevant information.
Repayment. Finally, the Interim Final Rule provides that any amounts subject to
recoupment must be repaid within 120 calendar days of receipt of any final notice of recoupment
or, if the recipient has not requested reconsideration, within 120 calendar days of the initial
notice provided by the Secretary.
Question 34: Discuss the timeline for requesting reconsideration under the Interim Final
Rule. What, if any, challenges does this timeline present?
175 The Interim Final Rule also provides that Treasury may extend any deadlines.
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V. Payments in Tranches to Local Governments and Certain States
Section 603 of the Act provides that the Secretary will make payments to local
governments in two tranches, with the second tranche being paid twelve months after the first
payment. In addition, section 602(b)(6)(A)(ii) provides that the Secretary may withhold payment
of up to 50 percent of the amount allocated to each State and territory for a period of up to twelve
months from the date on which the State or territory provides its certification to the Secretary.
Any such withholding for a State or territory is required to be based on the unemployment rate in
the State or territory as of the date of the certification.
The Secretary has determined to provide in this Interim Final Rule for withholding of
50 percent of the amount of Fiscal Recovery Funds allocated to all States (and the District of
Columbia) other than those with an unemployment rate that is 2.0 percentage points or more
above its pre-pandemic (i.e., February 2020) level. The Secretary will refer to the latest
available monthly data from the Bureau of Labor Statistics as of the date the certification is
provided. Based on data available at the time of public release of this Interim Final Rule, this
threshold would result in a majority of States being paid in two tranches.
Splitting payments for the majority of States is consistent with the requirement in
section 603 of the Act to make payments from the Coronavirus Local Fiscal Recovery Fund to
local governments in two tranches. 176 Splitting payments to States into two tranches will help
176 With respect to Federal financial assistance more generally, States are subject to the requirements of
the Cash Management Improvement Act (CMIA), under which Federal funds are drawn upon only on an
as needed basis and States are required to remit interest on unused balances to Treasury. Given the
statutory requirement for Treasury to make payments to States within a certain period, these requirements
of the CMIA and Treasury’s implementing regulations at 31 CFR part 205 will not apply to payments
from the Fiscal Recovery Funds. Providing funding in two tranches to the majority of States reflects, to
the maximum extent permitted by section 602 of the Act, the general principles of Federal cash
management and stewardship of federal funding, yet will be much less restrictive than the usual
requirements to which States are subject.
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encourage recipients to adapt, as necessary, to new developments that could arise over the
coming twelve months, including potential changes to the nature of the public health emergency
and its negative economic impacts. While the U.S. economy has been recovering and adding
jobs in aggregate, there is still considerable uncertainty in the economic outlook and the
interaction between the pandemic and the economy.177 For these reasons, Treasury believes it
will be appropriate for a majority of recipients to adapt their plans as the recovery evolves. For
example, a faster-than-expected economic recovery in 2021 could lead a recipient to dedicate
more Fiscal Recovery Funds to longer-term investments starting in 2022. In contrast, a slower-
than-expected economic recovery in 2021 could lead a recipient to use additional funds for near-
term stimulus in 2022.
At the same time, the statute contemplates the possibility that elevated unemployment in
certain States could justify a single payment. Elevated unemployment is indicative of a greater
need to assist unemployed workers and stimulate a faster economic recovery. For this reason,
the Interim Final Rule provides that States and territories with an increase in their unemployment
rate over a specified threshold may receive a single payment, with the expectation that a single
tranche will better enable these States and territories to take additional immediate action to aid
the unemployed and strengthen their economies.
Following the initial pandemic-related spike in unemployment in 2020, States’
unemployment rates have been trending back towards pre-pandemic levels. However, some
States’ labor markets are healing more slowly than others. Moreover, States varied widely in
177 The potential course of the virus, and its impact on the economy, has contributed to a heightened
degree of uncertainty relative to prior periods. See, e.g., Dave Altig et al., Economic uncertainty before
and during the COVID-19 pandemic, J. of Public Econ. (Nov. 2020), available at
https://www.sciencedirect.com/science/article/abs/pii/S0047272720301389
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their pre-pandemic levels of unemployment, and some States remain substantially further from
their pre-pandemic starting point. Consequently, Treasury is delineating States with significant
remaining elevation in the unemployment rate, based on the net difference to pre-pandemic
levels.
Treasury has established that significant remaining elevation in the unemployment rate is
a net change in the unemployment rate of 2.0 percentage points or more relative to pre-pandemic
levels. In the four previous recessions going back to the early 1980s, the national unemployment
rate rose by 3.6, 2.3, 2.0, and 5.0 percentage points, as measured from the start of the recession to
the eventual peak during or immediately following the recession.178 Each of these increases can
therefore represent a recession’s impact on unemployment. To identify States with significant
remaining elevation in unemployment, Treasury took the lowest of these four increases,
2.0 percentage points, to indicate states where, despite improvement in the unemployment rate,
current labor market conditions are consistent still with a historical benchmark for a recession.
No U.S. territory will be subject to withholding of its payment from the Fiscal Recovery
Funds. For Puerto Rico, the Secretary has determined that the current level of the unemployment
rate (8.8 percent, as of March 2021 179) is sufficiently high such that Treasury should not
withhold any portion of its payment from the Fiscal Recovery Funds regardless of its change in
178 Includes the period during and immediately following recessions, as defined by the National Bureau of
Economic Research. National Bureau of Economic Research, US Business Cycle Expansions and
Contractions, https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions (last
visited Apr. 27, 20201). Based on data from U.S. Bureau of Labor Statistics, Unemployment Rate
[UNRATE], retrieved from FRED, Federal Reserve Bank of St. Louis,
https://fred.stlouisfed.org/series/UNRATE (last visited Apr. 27, 2021).
179 U.S. Bureau of Labor Statistics, Economic News Release – Table 1. Civilian labor force and
unemployment by state and selected area, seasonally adjusted,
https://www.bls.gov/news.release/laus.t01.htm (last visited Apr. 30, 2021).
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unemployment rate relative to its pre-pandemic level. For U.S. territories that are not included in
the Bureau of Labor Statistics’ monthly unemployment rate data, the Secretary will not exercise
the authority to withhold amounts from the Fiscal Recovery Funds.
VI. Transfer
The statute authorizes State, territorial, and Tribal governments; counties; metropolitan
cities; and nonentitlement units of local government (counties, metropolitan cities, and
nonentitlement units of local government are collectively referred to as “local governments”) to
transfer amounts paid from the Fiscal Recovery Funds to a number of specified entities. By
permitting these transfers, Congress recognized the importance of providing flexibility to
governments seeking to achieve the greatest impact with their funds, including by working with
other levels or units of government or private entities to assist recipient governments in carrying
out their programs. This includes special-purpose districts that perform specific functions in the
community, such as fire, water, sewer, or mosquito abatement districts.
Specifically, under section 602(c)(3), a State, territory, or Tribal government may transfer
funds to a “private nonprofit organization . . . a Tribal organization . . . a public benefit
corporation involved in the transportation of passengers or cargo, or a special-purpose unit of
State or local government.”180 Similarly, section 603(c)(3) authorizes a local government to
transfer funds to the same entities (other than Tribal organizations).
The Interim Final Rule clarifies that the lists of transferees in Sections 602(c)(3) and
603(c)(3) are not exclusive. The Interim Final Rule permits State, territorial, and Tribal
governments to transfer Fiscal Recovery Funds to other constituent units of government or
180 § 602(c)(3) of the Act.
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private entities beyond those specified in the statute. Similarly, local governments are authorized
to transfer Fiscal Recovery Funds to other constituent units of government (e.g., a county is able
to transfer Fiscal Recovery Funds to a city, town, or school district within it) or to private
entities. This approach is intended to help provide funding to local governments with needs that
may exceed the allocation provided under the statutory formula.
State, local, territorial, and Tribal governments that receive a Federal award directly from
a Federal awarding agency, such as Treasury, are “recipients.” A transferee receiving a transfer
from a recipient under sections 602(c)(3) and 603(c)(3) will be a subrecipient. Subrecipients are
entities that receive a subaward from a recipient to carry out a program or project on behalf of
the recipient with the recipient’s Federal award funding. The recipient remains responsible for
monitoring and overseeing the subrecipient’s use of Fiscal Recovery Funds and other activities
related to the award to ensure that the subrecipient complies with the statutory and regulatory
requirements and the terms and conditions of the award. Recipients also remain responsible for
reporting to Treasury on their subrecipients’ use of payments from the Fiscal Recovery Funds for
the duration of the award.
Transfers under sections 602(c)(3) and 603(c)(3) must qualify as an eligible use of Fiscal
Recovery Funds by the transferor. Once Fiscal Recovery Funds are received, the transferee must
abide by the restrictions on use applicable to the transferor under the ARPA and other applicable
law and program guidance. For example, if a county transferred Fiscal Recovery Funds to a
town within its borders to respond to the COVID-19 public health emergency, the town would be
bound by the eligible use requirements applicable to the county in carrying out the county’s goal.
This also means that county A may not transfer Fiscal Recovery Funds to county B for use in
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county B because such a transfer would not, from the perspective of the transferor (county A), be
an eligible use in county A.
Section 603(c)(4) separately provides for transfers by a local government to its State or
territory. A transfer under section 603(c)(4) will not make the State a subrecipient of the local
government, and such Fiscal Recovery Funds may be used by the State for any purpose
permitted under section 602(c). A transfer under section 603(c)(4) will result in a cancellation or
termination of the award on the part of the transferor local government and a modification of the
award to the transferee State or territory. The transferor must provide notice of the transfer to
Treasury in a format specified by Treasury. If the local government does not provide such
notice, it will remain legally obligated to Treasury under the award and remain responsible for
ensuring that the awarded Fiscal Recovery Funds are being used in accordance with the statute
and program guidance and for reporting on such uses to Treasury. A State that receives a
transfer from a local government under section 603(c)(4) will be bound by all of the use
restrictions set forth in section 602(c) with respect to the use of those Fiscal Recovery Funds,
including the prohibitions on use of such Fiscal Recovery Funds to offset certain reductions in
taxes or to make deposits into pension funds.
Question 35: What are the advantages and disadvantages of treating the list of
transferees in sections 602(c)(3) and 603(c)(3) as nonexclusive, allowing States and localities to
transfer funds to entities outside of the list?
Question 36: Are there alternative ways of defining “special-purpose unit of State or
local government” and “public benefit corporation” that would better further the aims of the
Funds?
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VII. Nonentitlement Units of Government
The Fiscal Recovery Funds provides for $19.53 billion in payments to be made to States
and territories which will distribute the funds to nonentitlement units of local government
(NEUs); local governments which generally have populations below 50,000. These local
governments have not yet received direct fiscal relief from the Federal government during the
COVID-19 public health emergency, making Fiscal Recovery Funds payments an important
source of support for their public health and economic responses. Section 603 requires Treasury
to allocate and pay Fiscal Recovery Funds to the States and territories and requires the States and
territories to distribute Fiscal Recovery Funds to NEUs based on population within 30 days of
receipt unless an extension is granted by the Secretary. The Interim Final Rule clarifies certain
aspects regarding the distribution of Fiscal Recovery by States and territories to NEUs, as well as
requirements around timely payments from the Fiscal Recovery Funds.
The ARPA requires that States and territories allocate funding to NEUs in an amount that
bears the same proportion as the population of the NEU bears to the total population of all NEUs
in the State or territory, subject to a cap (described below). Because the statute requires States
and territories to make distributions based on population, States and territories may not place
additional conditions or requirements on distributions to NEUs, beyond those required by the
ARPA and Treasury’s implementing regulations and guidance. For example, a State may not
impose stricter limitations than permitted by statute or Treasury regulations or guidance on an
NEU’s use of Fiscal Recovery Funds based on the NEU’s proposed spending plan or other
policies. States and territories are also not permitted to offset any debt owed by the NEU against
the NEU’s distribution. Further, States and territories may not provide funding on a
reimbursement basis—e.g., requiring NEUs to pay for project costs up front before being
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reimbursed with Fiscal Recovery Funds payments—because this funding model would not
comport with the statutory requirement that States and territories make distributions to NEUs
within the statutory timeframe.
Similarly, States and territories distributing Fiscal Recovery Funds payments to NEUs are
responsible for complying with the Fiscal Recovery Funds statutory requirement that
distributions to NEUs not exceed 75 percent of the NEU’s most recent budget. The most recent
budget is defined as the NEU’s most recent annual total operating budget, including its general
fund and other funds, as of January 27, 2020. Amounts in excess of such cap and therefore not
distributed to the NEU must be returned to Treasury by the State or territory. States and
territories may rely for this determination on a certified top-line budget total from the NEU.
Under the Interim Final Rule, the total allocation and distribution to an NEU, including
the sum of both the first and second tranches of funding, cannot exceed the 75 percent cap.
States and territories must permit NEUs without formal budgets as of January 27, 2020 to self-
certify their most recent annual expenditures as of January 27, 2020 for the purpose of
calculating the cap. This approach will provide an administrable means to implement the cap for
small local governments that do not adopt a formal budget.
Section 603(b)(3) of the Social Security Act provides for Treasury to make payments to
counties but provides that, in the case of an amount to be paid to a county that is not a unit of
general local government, the amount shall instead be paid to the State in which such county is
located, and such State shall distribute such amount to each unit of general local government
within such county in an amount that bears the same proportion to the amount to be paid to such
county as the population of such units of general local government bears to the total population
of such county. As with NEUs, States may not place additional conditions or requirements on
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distributions to such units of general local government, beyond those required by the ARPA and
Treasury’s implementing regulations and guidance.
In the case of consolidated governments, section 603(b)(4) allows consolidated
governments (e.g., a city-county consolidated government) to receive payments under each
allocation based on the respective formulas. In the case of a consolidated government, Treasury
interprets the budget cap to apply to the consolidated government’s NEU allocation under
section 603(b)(2) but not to the consolidated government’s county allocation under
section 603(b)(3).
If necessary, States and territories may use the Fiscal Recovery Funds under
section 602(c)(1)(A) to fund expenses related to administering payments to NEUs and units of
general local government, as disbursing these funds itself is a response to the public health
emergency and its negative economic impacts. If a State or territory requires more time to
disburse Fiscal Recovery Funds to NEUs than the allotted 30 days, Treasury will grant
extensions of not more than 30 days for States and territories that submit a certification in writing
in accordance with section 603(b)(2)(C)(ii)(I). Additional extensions may be granted at the
discretion of the Secretary.
Question 37: What are alternative ways for States and territories to enforce the
75 percent cap while reducing the administrative burden on them?
Question 38: What criteria should Treasury consider in assessing requests for
extensions for further time to distribute NEU payments?
VIII. Reporting
States (defined to include the District of Columbia), territories, metropolitan cities,
counties, and Tribal governments will be required to submit one interim report and thereafter
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quarterly Project and Expenditure reports through the end of the award period on
December 31, 2026. The interim report will include a recipient’s expenditures by category at the
summary level from the date of award to July 31, 2021 and, for States and territories,
information related to distributions to nonentitlement units. Recipients must submit their interim
report to Treasury by August 31, 2021. Nonentitlement units of local government are not
required to submit an interim report.
The quarterly Project and Expenditure reports will include financial data, information on
contracts and subawards over $50,000, types of projects funded, and other information regarding
a recipient’s utilization of the award funds. The reports will include the same general data (e.g.,
on obligations, expenditures, contracts, grants, and sub-awards) as those submitted by recipients
of the CRF, with some modifications. Modifications will include updates to the expenditure
categories and the addition of data elements related to specific eligible uses, including some of
the reporting elements described in sections above. The initial quarterly Project and Expenditure
report will cover two calendar quarters from the date of award to September 30, 2021, and must
be submitted to Treasury by October 31, 2021. The subsequent quarterly reports will cover one
calendar quarter and must be submitted to Treasury within 30 days after the end of each calendar
quarter.
Nonentitlement units of local government will be required to submit annual Project and
Expenditure reports until the end of the award period on December 31, 2026. The initial annual
Project and Expenditure report for nonentitlement units of local government will cover activity
from the date of award to September 30, 2021 and must be submitted to Treasury by
October 31, 2021. The subsequent annual reports must be submitted to Treasury by October 31
each year.
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States, territories, metropolitan cities, and counties with a population that exceeds
250,000 residents will also be required to submit an annual Recovery Plan Performance report to
Treasury. The Recovery Plan Performance report will provide the public and Treasury
information on the projects that recipients are undertaking with program funding and how they
are planning to ensure project outcomes are achieved in an effective, efficient, and equitable
manner. Each jurisdiction will have some flexibility in terms of the form and content of the
Recovery Plan Performance report, as long as it includes the minimum information required by
Treasury. The Recovery Plan Performance report will include key performance indicators
identified by the recipient and some mandatory indicators identified by Treasury, as well as
programmatic data in specific eligible use categories and the specific reporting requirements
described in the sections above. The initial Recovery Plan Performance report will cover the
period from the date of award to July 31, 2021 and must be submitted to Treasury by
August 31, 2021. Thereafter, Recovery Plan Performance reports will cover a 12-month period,
and recipients will be required to submit the report to Treasury within 30 days after the end of
the 12-month period. The second Recovery Plan Performance report will cover the period from
July 1, 2021 to June 30, 2022, and must be submitted to Treasury by July 31, 2022. Each annual
Recovery Plan Performance report must be posted on the public-facing website of the recipient.
Local governments with fewer than 250,000 residents, Tribal governments, and nonentitlement
units of local government are not required to develop a Recovery Plan Performance report.
Treasury will provide additional guidance and instructions on the reporting requirements
outlined above for the Fiscal Recovery Funds at a later date.
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IX. Comments and Effective Date
This Interim Final Rule is being issued without advance notice and public comment to
allow for immediate implementation of this program. As discussed below, the requirements of
advance notice and public comment do not apply “to the extent that there is involved . . . a matter
relating to agency . . . grants.”181 The Interim Final Rule implements statutory conditions on the
eligible uses of the Fiscal Recovery Funds grants, and addresses the payment of those funds, the
reporting on uses of funds, and potential consequences of ineligible uses. In addition and as
discussed below, the Administrative Procedure Act also provides an exception to ordinary
notice-and-comment procedures “when the agency for good cause finds (and incorporates the
finding and a brief statement of reasons therefor in the rules issued) that notice and public
procedure thereon are impracticable, unnecessary, or contrary to the public interest.”182 This
good cause justification also supports waiver of the 60-day delayed effective date for major rules
under the Congressional Review Act at 5 U.S.C. 808(2). Although this Interim Final Rule is
effective immediately, comments are solicited from interested members of the public and from
recipient governments on all aspects of the Interim Final Rule.
These comments must be submitted on or before [INSERT DATE 60 DAYS AFTER DATE
OF PUBLICATION IN THE FEDERAL REGISTER].
181 5 U.S.C. 553(a)(2).
182 5 U.S.C. 553(b)(3)(B); see also 5 U.S.C. 553(d)(3) (creating an exception to the requirement of a 30-
day delay before the effective date of a rule “for good cause found and published with the rule”).
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X. Regulatory Analyses
Executive Orders 12866 and 13563
This Interim Final Rule is economically significant for the purposes of Executive
Orders 12866 and 13563. Treasury, however, is proceeding under the emergency provision at
Executive Order 12866 section 6(a)(3)(D) based on the need to act expeditiously to mitigate the
current economic conditions arising from the COVID-19 public health emergency. The rule has
been reviewed by the Office of Management and Budget (OMB) in accordance with Executive
Order 12866. This rule is necessary to implement the ARPA in order to provide economic relief
to State, local, and Tribal governments adversely impacted by the COVID-19 public health
emergency.
Under Executive Order 12866, OMB must determine whether this regulatory action is
“significant” and, therefore, subject to the requirements of the Executive Order and subject to
review by OMB. Section 3(f) of Executive Order 12866 defines a significant regulatory action
as an action likely to result in a rule that may:
(1) Have an annual effect on the economy of $100 million or more, or adversely affect a
sector of the economy; productivity; competition; jobs; the environment; public
health or safety; or State, local, or Tribal governments or communities in a material
way (also referred to as “economically significant” regulations);
(2) Create a serious inconsistency or otherwise interfere with an action taken or planned
by another agency;
(3) Materially alter the budgetary impacts of entitlements, grants, user fees, or loan
programs or the rights and obligations of recipients thereof; or
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(4) Raise novel legal or policy issues arising out of legal mandates, the President’s
priorities, or the principles stated in the Executive Order.
This regulatory action is an economically significant regulatory action subject to review by OMB
under section 3(f) of Executive Order 12866. Treasury has also reviewed these regulations under
Executive Order 13563, which supplements and explicitly reaffirms the principles, structures,
and definitions governing regulatory review established in Executive Order 12866. To the extent
permitted by law, section 1(b) of Executive Order 13563 requires that an agency:
(1) Propose or adopt regulations only upon a reasoned determination that their benefits
justify their costs (recognizing that some benefits and costs are difficult to quantify);
(2) Tailor its regulations to impose the least burden on society, consistent with obtaining
regulatory objectives taking into account, among other things, and to the extent
practicable, the costs of cumulative regulations;
(3) Select, in choosing among alternative regulatory approaches, those approaches that
maximize net benefits (including potential economic, environmental, public health
and safety, and other advantages; distributive impacts; and equity);
(4) To the extent feasible, specify performance objectives, rather than the behavior or
manner of compliance a regulated entity must adopt; and
(5) Identify and assess available alternatives to direct regulation, including providing
economic incentives—such as user fees or marketable permits—to encourage the
desired behavior, or providing information that enables the public to make choices.
Executive Order 13563 also requires an agency “to use the best available techniques to
quantify anticipated present and future benefits and costs as accurately as possible.” OMB’s
Office of Information and Regulatory Affairs (OIRA) has emphasized that these techniques may
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include “identifying changing future compliance costs that might result from technological
innovation or anticipated behavioral changes.”
Treasury has assessed the potential costs and benefits, both quantitative and qualitative,
of this regulatory action, and is issuing this Interim Final Rule only on a reasoned determination
that the benefits exceed the costs. In choosing among alternative regulatory approaches,
Treasury selected those approaches that would maximize net benefits. Based on the analysis that
follows and the reasons stated elsewhere in this document, Treasury believes that this Interim
Final Rule is consistent with the principles set forth in Executive Order 13563.
Treasury also has determined that this regulatory action does not unduly interfere with States,
territories, Tribal governments, and localities in the exercise of their governmental functions.
This Regulatory Impact Analysis discusses the need for regulatory action, the potential
benefits, and the potential costs.
Need for Regulatory Action. This Interim Final Rule implements the $350 billion Fiscal
Recovery Funds of the ARPA, which Congress passed to help States, territories, Tribal
governments, and localities respond to the ongoing COVID-19 public health emergency and its
economic impacts. As the agency charged with execution of these programs, Treasury has
concluded that this Interim Final Rule is needed to ensure that recipients of Fiscal Recovery
Funds fully understand the requirements and parameters of the program as set forth in the statute
and deploy funds in a manner that best reflects Congress’ mandate for targeted fiscal relief.
This Interim Final Rule is primarily a transfer rule: it transfers $350 billion in aid from the
Federal government to states, territories, Tribal governments, and localities, generating a
significant macroeconomic effect on the U.S. economy. In making this transfer, Treasury has
sought to implement the program in ways that maximize its potential benefits while minimizing
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its costs. It has done so by aiming to target relief in key areas according to the congressional
mandate; offering clarity to States, territories, Tribal governments, and localities while
maintaining their flexibility to respond to local needs; and limiting administrative burdens.
Analysis of Benefits. Relative to a pre-statutory baseline, the Fiscal Recovery Funds
provide a combined $350 billion to State, local, and Tribal governments for fiscal relief and
support for costs incurred responding to the COVID-19 pandemic. Treasury believes that this
transfer will generate substantial additional economic activity, although given the flexibility
accorded to recipients in the use of funds, it is not possible to precisely estimate the extent to
which this will occur and the timing with which it will occur. Economic research has
demonstrated that state fiscal relief is an efficient and effective way to mitigate declines in jobs
and output during an economic downturn.183 Absent such fiscal relief, fiscal austerity among
State, local, and Tribal governments could exert a prolonged drag on the overall economic
recovery, as occurred following the 2007-09 recession.184
This Interim Final Rule provides benefits across several areas by implementing the four
eligible funding uses, as defined in statute: strengthening the response to the COVID-19 public
health emergency and its economic impacts; easing fiscal pressure on State, local, and Tribal
governments that might otherwise lead to harmful cutbacks in employment or government
183 Gabriel Chodorow-Reich et al., Does State Fiscal Relief during Recessions Increase Employment?
Evidence from the American Recovery and Reinvestment Act, American Econ. J.: Econ. Policy, 4:3 118-
45 (Aug. 2012), available at https://www.aeaweb.org/articles?id=10.1257/pol.4.3.118
184 See, e.g., Fitzpatrick, Haughwout & Setren, Fiscal Drag from the State and Local Sector?, Liberty
Street Economics Blog, Federal Reserve Bank of New York (June 27, 2012),
https://www.libertystreeteconomics.newyorkfed.org/2012/06/fiscal-drag-from-the-state-and-local-
sector.html; Jiri Jonas, Great Recession and Fiscal Squeeze at U.S. Subnational Government Level, IMF
Working Paper 12/184, (July 2012), available at
https://www.imf.org/external/pubs/ft/wp/2012/wp12184.pdf; Gordon, supra note 9.
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services; providing premium pay to essential workers; and making necessary investments in
certain types of infrastructure. In implementing the ARPA, Treasury also sought to support
disadvantaged communities that have been disproportionately impacted by the pandemic. The
Fiscal Recovery Funds as implemented by the Interim Final Rule can be expected to channel
resources toward these uses in order to achieve substantial near-term economic and public health
benefits, as well as longer-term benefits arising from the allowable investments in water, sewer,
and broadband infrastructure and aid to families.
These benefits are achieved in the Interim Final Rule through a broadly flexible approach
that sets clear guidelines on eligible uses of Fiscal Recovery Funds and provides State, local, and
Tribal government officials discretion within those eligible uses to direct Fiscal Recovery Funds
to areas of greatest need within their jurisdiction. While preserving recipients’ overall flexibility,
the Interim Final Rule includes several provisions that implement statutory requirements and will
help support use of Fiscal Recovery Funds to achieve the intended benefits. The remainder of
this section clarifies how Treasury’s approach to key provisions in the Interim Final Rule will
contribute to greater realization of benefits from the program.
• Revenue Loss: Recipients will compute the extent of reduction in revenue by comparing
actual revenue to a counterfactual trend representing what could have plausibly been
expected to occur in the absence of the pandemic. The counterfactual trend begins with
the last full fiscal year prior to the public health emergency (as required by statute) and
projects forward with an annualized growth adjustment. Treasury’s decision to
incorporate a growth adjustment into the calculation of revenue loss ensures that the
formula more fully captures revenue shortfalls relative to recipients’ pre-pandemic
expectations. Moreover, recipients will have the opportunity to re-calculate revenue loss
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at several points throughout the program, recognizing that some recipients may
experience revenue effects with a lag. This option to re-calculate revenue loss on an
ongoing basis should result in more support for recipients to avoid harmful cutbacks in
future years. In calculating revenue loss, recipients will look at general revenue in the
aggregate, rather than on a source-by-source basis. Given that recipients may have
experienced offsetting changes in revenues across sources, Treasury’s approach provides
a more accurate representation of the effect of the pandemic on overall revenues.
• Premium Pay: Per the statute, recipients have broad latitude to designate critical
infrastructure sectors and make grants to third-party employers for the purpose of
providing premium pay or otherwise respond to essential workers. While the Interim
Final Rule generally preserves the flexibility in the statute, it does add a requirement that
recipients give written justification in the case that premium pay would increase a
worker’s annual pay above a certain threshold. To set this threshold, Treasury analyzed
data from the Bureau of Labor Statistics to determine a level that would not require
further justification for premium pay to the vast majority of essential workers, while
requiring higher scrutiny for provision of premium pay to higher-earners who, even
without premium pay, would likely have greater personal financial resources to cope with
the effects of the pandemic. Treasury believes the threshold in the Interim Final Rule
strikes the appropriate balance between preserving flexibility and helping encourage use
of these resources to help those in greatest need. The Interim Final Rule also requires
that eligible workers have regular in-person interactions or regular physical handling of
items that were also handled by others. This requirement will also help encourage use of
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financial resources for those who have endured the heightened risk of performing
essential work.
• Withholding of Payments to Recipients: Treasury believes that for the vast majority of
recipient entities, it will be appropriate to receive funds in two separate payments. As
discussed above, withholding of payments ensures that recipients can adapt spending
plans to evolving economic conditions and that at least some of the economic benefits
will be realized in 2022 or later. However, consistent with authorities granted to
Treasury in the statute, Treasury recognizes that a subset of States with significant
remaining elevation in the unemployment rate could face heightened additional near-term
needs to aid unemployed workers and stimulate the recovery. Therefore, for a subset of
State governments, Treasury will not withhold any funds from the first payment.
Treasury believes that this approach strikes the appropriate balance between the general
reasons to provide funds in two payments and the heightened additional near-term needs
in specific States. As discussed above, Treasury set a threshold based on historical
analysis of unemployment rates in recessions.
• Hiring Public Sector Employees: The Interim Final Rule states explicitly that recipients
may use funds to restore their workforces up to pre-pandemic levels. Treasury believes
that this statement is beneficial because it eliminates any uncertainty that could cause
delays or otherwise negatively impact restoring public sector workforces (which, at time
of publication, remain significantly below pre-pandemic levels).
Finally, the Interim Final Rule aims to promote and streamline the provision of assistance
to individuals and communities in greatest need, particularly communities that have been
historically disadvantaged and have experienced disproportionate impacts of the COVID-19
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crisis. Targeting relief is in line with Executive Order 13985 On Advancing Racial Equity and
Support for Underserved Communities Through the Federal Government, which laid out an
Administration-wide priority to support “equity for all, including people of color and others who
have been historically underserved, marginalized, and adversely affected by persistent poverty
and inequality.”185 To this end, the Interim Final Rule enumerates a list of services that may be
provided using Fiscal Recovery Funds in low-income areas to address the disproportionate
impacts of the pandemic in these communities; establishes the characteristics of essential
workers eligible for premium pay and encouragement to serve workers based on financial need;
provides that recipients may use Fiscal Recovery Funds to restore (to pre-pandemic levels) state
and local workforces, where women and people of color are disproportionately represented;186
and targets investments in broadband infrastructure to unserved and underserved areas.
Collectively, these provisions will promote use of resources to facilitate the provision of
assistance to individuals and communities with the greatest need.
Analysis of Costs. This regulatory action will generate administrative costs relative to a
pre-statutory baseline. This includes, chiefly, costs required to administer Fiscal Recovery
Funds, oversee subrecipients and beneficiaries, and file periodic reports with Treasury. It also
requires States to allocate Fiscal Recovery Funds to nonentitlement units, which are smaller units
of local government that are statutorily required to receive their funds through States.
185 Executive Order on Advancing Racial Equity and Support for Underserved Communities through the
Federal Government (Jan. 20, 2021), https://www.whitehouse.gov/briefing-room/presidential-
actions/2021/01/20/executive-order-advancing-racial-equity-and-support-for-underserved-communities-
through-the-federal-government/ (last visited May 9, 2021).
186 David Cooper, Mary Gable & Algernon Austin, Economic Policy Institute Briefing Paper, The Public-
Sector Jobs Crisis: Women and African Americans hit hardest by job losses in state and local
governments, https://www.epi.org/publication/bp339-public-sector-jobs-crisis (last visited May 9, 2021).
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Treasury expects that the administrative burden associated with this program will be
moderate for a grant program of its size. Treasury expects that most recipients receive direct or
indirect funding from Federal government programs and that many have familiarity with how to
administer and report on Federal funds or grant funding provided by other entities. In particular,
States, territories, and large localities will have received funds from the CRF and Treasury
expects them to rely heavily on established processes developed last year or through prior grant
funding, mitigating burden on these governments.
Treasury expects to provide technical assistance to defray the costs of administration of
Fiscal Recovery Funds to further mitigate burden. In making implementation choices, Treasury
has hosted numerous consultations with a diverse range of direct recipients—States, small cities,
counties, and Tribal governments —along with various communities across the United States,
including those that are underserved. Treasury lacks data to estimate the precise extent to which
this Interim Final Rule generates administrative burden for State, local, and Tribal governments,
but seeks comment to better estimate and account for these costs, as well as on ways to lessen
administrative burdens.
Executive Order 13132
Executive Order 13132 (entitled Federalism) prohibits an agency from publishing any rule that
has federalism implications if the rule either imposes substantial, direct compliance costs on
State, local, and Tribal governments, and is not required by statute, or preempts state law, unless
the agency meets the consultation and funding requirements of section 6 of the Executive Order.
This Interim Final Rule does not have federalism implications within the meaning of the
Executive Order and does not impose substantial, direct compliance costs on State, local, and
Tribal governments or preempt state law within the meaning of the Executive Order. The
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compliance costs are imposed on State, local, and Tribal governments by sections 602 and 603 of
the Social Security Act, as enacted by the ARPA. Notwithstanding the above, Treasury has
engaged in efforts to consult and work cooperatively with affected State, local, and Tribal
government officials and associations in the process of developing the Interim Final Rule.
Pursuant to the requirements set forth in section 8(a) of Executive Order 13132, Treasury
certifies that it has complied with the requirements of Executive Order 13132.
Administrative Procedure Act
The Administrative Procedure Act (APA), 5 U.S.C. 551 et seq., generally requires public
notice and an opportunity for comment before a rule becomes effective. However, the APA
provides that the requirements of 5 U.S.C. 553 do not apply “to the extent that there is involved .
. . a matter relating to agency . . . grants.” The Interim Final Rule implements statutory
conditions on the eligible uses of the Fiscal Recovery Funds grants, and addresses the payment
of those funds, the reporting on uses of funds, and potential consequences of ineligible uses. The
rule is thus “both clearly and directly related to a federal grant program.” National Wildlife
Federation v. Snow, 561 F.2d 227, 232 (D.C. Cir. 1976). The rule sets forth the “process
necessary to maintain state . . . eligibility for federal funds,” id., as well as the “method[s] by
which states can . . . qualify for federal aid,” and other “integral part[s] of the grant program,”
Center for Auto Safety v. Tiemann, 414 F. Supp. 215, 222 (D.D.C. 1976). As a result, the
requirements of 5 U.S.C. 553 do not apply.
The APA also provides an exception to ordinary notice-and-comment procedures “when
the agency for good cause finds (and incorporates the finding and a brief statement of reasons
therefor in the rules issued) that notice and public procedure thereon are impracticable,
unnecessary, or contrary to the public interest.” 5 U.S.C. 553(b)(3)(B); see also 5 U.S.C.
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553(d)(3) (creating an exception to the requirement of a 30-day delay before the effective date of
a rule “for good cause found and published with the rule”). Assuming 5 U.S.C. 553 applied,
Treasury would still have good cause under sections 553(b)(3)(B) and 553(d)(3) for not
undertaking section 553’s requirements. The ARPA is a law responding to a historic economic
and public health emergency; it is “extraordinary” legislation about which “both Congress and
the President articulated a profound sense of ‘urgency.’” Petry v. Block, 737 F.2d 1193, 1200
(D.C. Cir. 1984). Indeed, several provisions implemented by this Interim Final Rule (sections
602(c)(1)(A) and 603(c)(1)(A)) explicitly provide funds to “respond to the public health
emergency,” and the urgency is further exemplified by Congress’s command (in sections
602(b)(6)(B) and 603(b)(7)(A)) that, “[t]o the extent practicable,” funds must be provided to
Tribes and cities “not later than 60 days after the date of enactment.” See Philadelphia Citizens
in Action v. Schweiker, 669 F.2d 877, 884 (3d Cir. 1982) (finding good cause under
circumstances, including statutory time limits, where APA procedures would have been
“virtually impossible”). Finally, there is an urgent need for States to undertake the planning
necessary for sound fiscal policymaking, which requires an understanding of how funds provided
under the ARPA will augment and interact with existing budgetary resources and tax policies.
Treasury understands that many states require immediate rules on which they can rely, especially
in light of the fact that the ARPA “covered period” began on March 3, 2021. The statutory
urgency and practical necessity are good cause to forego the ordinary requirements of notice-
and-comment rulemaking.
Congressional Review Act
The Administrator of OIRA has determined that this is a major rule for purposes of Subtitle E of
the Small Business Regulatory Enforcement and Fairness Act of 1996 (also known as the
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Congressional Review Act or CRA) (5 U.S.C. 804(2) et seq.). Under the CRA, a major rule
takes effect 60 days after the rule is published in the Federal Register. 5 U.S.C. 801(a)(3).
Notwithstanding this requirement, the CRA allows agencies to dispense with the requirements of
section 801 when the agency for good cause finds that such procedure would be impracticable,
unnecessary, or contrary to the public interest and the rule shall take effect at such time as the
agency promulgating the rule determines. 5 U.S.C. 808(2). Pursuant to section 808(2), for the
reasons discussed above, Treasury for good cause finds that a 60-day delay to provide public
notice is impracticable and contrary to the public interest.
Paperwork Reduction Act
The information collections associated with State, territory, local, and Tribal government
applications materials necessary to receive Fiscal Recovery Funds (e.g., payment information
collection and acceptance of award terms) have been reviewed and approved by OMB pursuant
to the Paperwork Reduction Act (44 U.S.C. Chapter 35) (PRA) emergency processing
procedures and assigned control number 1505-0271. The information collections related to
ongoing reporting requirements, as discussed in this Interim Final Rule, will be submitted to
OMB for emergency processing in the near future. Under the PRA, an agency may not conduct
or sponsor and a respondent is not required to respond to, an information collection unless it
displays a valid OMB control number.
Estimates of hourly burden under this program are set forth in the table below. Burden
estimates below are preliminary.
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Reporting
#
Respondents
(Estimated)
# Responses
Per
Respondent
Total
Responses
Hours
per
response
Total
Burden
in Hours
Cost to
Respondent
($48.80 per
hour*)
Recipient
Payment
Form
5,050 1 5,050 .25 (15
minutes) 1,262.5 $61,610
Acceptance
of Award
Terms
5,050 1 5,050 .25 (15
minutes) 1,262.5 $61,610
Title VI
Assurances 5,050 1 5,050 .50 (30
minutes) 2,525 $123,220
Quarterly
Project and
Expenditure
Report
5,050 4 per year
after first year 20,200 25 505,000 $24,644,000
Annual
Project and
Expenditure
Report from
NEUs
TBD 1 per year
20,000-
40,000
(Estimate
only)
15 300,000 –
600,000
$14,640,000
-
$29,280,000
Annual
Recovery
Plan
Performance
report
418 1 per year 418 100 41,800 $2,039,840
Total 5,050 – TBD N/A 55,768 -
75,768 141 851,850 -
1,151,850
$41,570,280
-
$56,210,280
* Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Accountants
and Auditors, on the Internet at https://www.bls.gov/ooh/business-and-financial/accountants-and-
auditors.htm (visited March 28, 2020). Base wage of $33.89/hour increased by 44 percent to account for
fully loaded employer cost of employee compensation (benefits, etc.) for a fully loaded wage rate of
$48.80.
Periodic reporting is required by section 602(c) of Section VI of the Social Security Act
and under the Interim Final Rule.
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As discussed in Section VIII of this Supplementary Information, recipients of Fiscal
Recovery Funds will be required to submit one interim report and thereafter quarterly Project and
Expenditure reports until the end of the award period. Recipients must submit interim reports to
Treasury by August 31, 2021. The quarterly Project and Expenditure reports will include
financial data, information on contracts and subawards over $50,000, types of projects funded,
and other information regarding a recipient’s utilization of the award funds.
Nonentitlement unit recipients will be required to submit annual Project and Expenditure
reports until the end of the award period. The initial annual Project and Expenditure report for
Nonentitlement unit recipients must be submitted to Treasury by October 31, 2021. The
subsequent annual reports must be submitted to Treasury by October 31 each year.
States, territories, metropolitan cities, and counties with a population that exceeds 250,000
residents will also be required to submit an annual Recovery Plan Performance report to
Treasury. The Recovery Plan Performance report will include descriptions of the projects
funded and information on the performance indicators and objectives of the award. Each annual
Recovery Plan Performance report must be posted on the public-facing website of the recipient.
Treasury will provide additional guidance and instructions on the all the reporting requirements
outlined above for the Fiscal Recovery Funds program at a later date.
These and related periodic reporting requirements are under consideration and will be
submitted to OMB for approval under the PRA emergency provisions in the near future.
Treasury invites comments on all aspects of the reporting and recordkeeping requirements
including: (a) Whether the collection of information is necessary for the proper performance of
the functions of the agency, including whether the information has practical utility; (b) the
accuracy of the estimate of the burden of the collection of information; (c) ways to enhance the
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quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of
the collection of information; and (e) estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services to provide information. Comments should be sent by the
comment deadline to the www.regulations.gov docket with a copy to the Office of Information
and Regulatory Affairs, U.S. Office of Management and Budget, 725 17th Street NW,
Washington, DC 20503; or email to oira_submission@omb.eop.gov.
Regulatory Flexibility Analysis
The Regulatory Flexibility Act (RFA) generally requires that when an agency issues a proposed
rule, or a final rule pursuant to section 553(b) of the Administrative Procedure Act or another
law, the agency must prepare a regulatory flexibility analysis that meets the requirements of the
RFA and publish such analysis in the Federal Register. 5 U.S.C. 603, 604.
Rules that are exempt from notice and comment under the APA are also exempt from the
RFA requirements, including the requirement to conduct a regulatory flexibility analysis, when
among other things the agency for good cause finds that notice and public procedure are
impracticable, unnecessary, or contrary to the public interest. Since this rule is exempt from the
notice and comment requirements of the APA, Treasury is not required to conduct a regulatory
flexibility analysis.
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RULE TEXT
List of Subjects in 31 CFR Part 35
Executive compensation, State and Local Governments, Tribal Governments, Public health
emergency.
Title 31—Money and Finance: Treasury
Part 35 -PANDEMIC RELIEF PROGRAMS
1. The authority citation for Part 35 is revised to read as follows:
Authority: 42 U.S.C. 802(f); 42 U.S.C. 803(f); 31 U.S.C. 321; Consolidated Appropriations Act,
2021 (Pub. L. 116-260), Division N, Title V, Subtitle B; Community Development Banking and
Financial Institutions Act of 1994 (enacted as part of the Riegle Community and Regulatory
Improvement Act of 1994 (Pub. L. 103-325)), as amended (12 U.S.C. 4701 et seq.), Section
104A; Pub. L. 117-2.
2. Revise the part heading as shown above.
3. Add Subpart A to read as follows:
Subpart A— CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS
Sec.
35.1 Purpose.
35.2 Applicability.
35.3 Definitions.
35.4 Reservation of Authority, Reporting.
35.5 Use of Funds.
35.6 Eligible Uses.
35.7 Pensions.
35.8 Tax.
35.9. Compliance with Applicable Laws.
35.10. Recoupment.
35.11 Payments to States.
35.12. Distributions to Nonentitlement Units of Local Government and Units of General Local
Government.
Authority: 42 U.S.C. 802(f); 42 U.S.C. 803(f)
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§ 35.1 Purpose.
This part implements section 9901 of the American Rescue Plan Act (Subtitle M of Title
IX of Public Law 117-2), which amends Title VI of the Social Security Act (42 U.S.C. 801 et
seq.) by adding sections 602 and 603 to establish the Coronavirus State Fiscal Recovery Fund
and Coronavirus Local Fiscal Recovery Fund.
§ 35.2 Applicability.
This part applies to States, territories, Tribal governments, metropolitan cities,
nonentitlement units of local government, counties, and units of general local government that
accept a payment or transfer of funds made under section 602 or 603 of the Social Security Act.
§ 35.3 Definitions.
Baseline means tax revenue of the recipient for its fiscal year ending in 2019, adjusted for
inflation in each reporting year using the Bureau of Economic Analysis’s Implicit Price Deflator
for the gross domestic product of the United States.
County means a county, parish, or other equivalent county division (as defined by the
Census Bureau).
Covered benefits include, but are not limited to, the costs of all types of leave (vacation,
family-related, sick, military, bereavement, sabbatical, jury duty), employee insurance (health,
life, dental, vision), retirement (pensions, 401(k)), unemployment benefit plans (Federal and
State), workers’ compensation insurance, and Federal Insurance Contributions Act taxes (which
includes Social Security and Medicare taxes).
Covered change means a change in law, regulation, or administrative interpretation. A
change in law includes any final legislative or regulatory action, a new or changed administrative
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interpretation, and the phase-in or taking effect of any statute or rule if the phase-in or taking
effect was not prescribed prior to the start of the covered period.
Covered period means, with respect to a State, Territory, or Tribal government, the
period that:
(1) Begins on March 3, 2021; and
(2) Ends on the last day of the fiscal year of such State, Territory, or Tribal government
in which all funds received by the State, Territory, or Tribal government from a payment made
under section 602 or 603 of the Social Security Act have been expended or returned to, or
recovered by, the Secretary.
COVID-19 means the Coronavirus Disease 2019.
COVID-19 public health emergency means the period beginning on January 27, 2020 and
until the termination of the national emergency concerning the COVID-19 outbreak declared
pursuant to the National Emergencies Act (50 U.S.C. 1601 et. seq.).
Deposit means an extraordinary payment of an accrued, unfunded liability. The term
deposit does not refer to routine contributions made by an employer to pension funds as part of
the employer’s obligations related to payroll, such as either a pension contribution consisting of a
normal cost component related to current employees or a component addressing the amortization
of unfunded liabilities calculated by reference to the employer’s payroll costs.
Eligible employer means an employer of an eligible worker who performs essential work.
Eligible workers means workers needed to maintain continuity of operations of essential
critical infrastructure sectors, including health care; emergency response; sanitation, disinfection,
and cleaning work; maintenance work; grocery stores, restaurants, food production, and food
delivery; pharmacy; biomedical research; behavioral health work; medical testing and
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diagnostics; home- and community-based health care or assistance with activities of daily living;
family or child care; social services work; public health work; vital services to Tribes; any work
performed by an employee of a State, local, or Tribal government; educational work, school
nutrition work, and other work required to operate a school facility; laundry work; elections
work; solid waste or hazardous materials management, response, and cleanup work; work
requiring physical interaction with patients; dental care work; transportation and warehousing;
work at hotel and commercial lodging facilities that are used for COVID-19 mitigation and
containment; work in a mortuary; work in critical clinical research, development, and testing
necessary for COVID-19 response.
(1)With respect to a recipient that is a metropolitan city, nonentitlement unit of local
government, or county, workers in any additional sectors as each chief executive officer of such
recipient may designate as critical to protect the health and well-being of the residents of their
metropolitan city, nonentitlement unit of local government, or county; or
(2)With respect to a State, Territory, or Tribal government, workers in any additional
sectors as each Governor of a State or Territory, or each Tribal government, may designate as
critical to protect the health and well-being of the residents of their State, Territory, or Tribal
government.
Essential work means work that:
(1) Is not performed while teleworking from a residence; and
(2)Involves:
(i) Regular in-person interactions with patients, the public, or coworkers of the individual
that is performing the work; or
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(ii)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.
Funds means, with respect to a recipient, amounts provided to the recipient pursuant to a
payment made under section 602(b) or 603(b) of the Social Security Act or transferred to the
recipient pursuant to section 603(c)(4) of the Social Security Act.
General revenue means money that is received from tax revenue, current charges, and
miscellaneous general revenue, excluding refunds and other correcting transactions, proceeds
from issuance of debt or the sale of investments, agency or private trust transactions, and
intergovernmental transfers from the Federal government, including transfers made pursuant to
section 9901 of the American Rescue Plan Act. General revenue does not include revenues from
utilities. Revenue from Tribal business enterprises must be included in general revenue.
Intergovernmental transfers means money received from other governments, including
grants and shared taxes.
Metropolitan city has the meaning given that term in section 102(a)(4) of the Housing
and Community Development Act of 1974 (42 U.S.C. 5302(a)(4)) and includes cities that
relinquish or defer their status as a metropolitan city for purposes of receiving allocations under
section 106 of such Act (42 U.S.C. 5306) for fiscal year 2021.
Net reduction in total spending is measured as the State or Territory’s total spending for a
given reporting year excluding its spending of funds, subtracted from its total spending for its
fiscal year ending in 2019, adjusted for inflation using the Bureau of Economic Analysis’s
Implicit Price Deflator for the gross domestic product of the United States.
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Nonentitlement unit of local government means a “city,” as that term is defined in
section 102(a)(5) of the Housing and Community Development Act of 1974
(42 U.S.C. 5302(a)(5)), that is not a metropolitan city.
Nonprofit means a nonprofit organization that is exempt from Federal income taxation
and that is described in section 501(c)(3) of the Internal Revenue Code.
Obligation means an order placed for property and services and entering into contracts,
subawards, and similar transactions that require payment.
Pension fund means a defined benefit plan and does not include a defined contribution
plan.
Premium pay means an amount of up to $13 per hour that is paid to an eligible worker, in
addition to wages or remuneration the eligible worker otherwise receives, for all work performed
by the eligible worker during the COVID-19 public health emergency. Such amount may not
exceed $25,000 with respect to any single eligible worker. Premium pay will be considered to be
in addition to wages or remuneration the eligible worker otherwise receives if, as measured on an
hourly rate, the premium pay is:
(1)With regard to work that the eligible worker previously performed, pay and
remuneration equal to the sum of all wages and remuneration previously received plus up to $13
per hour with no reduction, substitution, offset, or other diminishment of the eligible worker’s
previous, current, or prospective wages or remuneration; or
(2)With regard to work that the eligible worker continues to perform, pay of up to $13
that is in addition to the eligible worker’s regular rate of wages or remuneration, with no
reduction, substitution, offset, or other diminishment of the workers’ current and prospective
wages or remuneration.
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Qualified census tract has the same meaning given in 26 U.S.C. 42(d)(5)(B)(ii)(I).
Recipient means a State, Territory, Tribal government, metropolitan city, nonentitlement
unit of local government, county, or unit of general local government that receives a payment
made under section 602(b) or 603(b) of the Social Security Act or transfer pursuant to
section 603(c)(4) of the Social Security Act.
Reporting year means a single year or partial year within the covered period, aligned to
the current fiscal year of the State or Territory during the covered period.
Secretary means the Secretary of the Treasury.
State means each of the 50 States and the District of Columbia
Small business means a business concern or other organization that:
(1) Has 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) Is a small business concern as defined in section 3 of the Small Business Act
(15 U.S.C. 632).
Tax Revenue means revenue received from a compulsory contribution that is exacted by a
government for public purposes excluding refunds and corrections and, for purposes of § 35.8,
intergovernmental transfers. Tax revenue does not include payments for a special privilege
granted or service rendered, employee or employer assessments and contributions to finance
retirement and social insurance trust systems, or special assessments to pay for capital
improvements.
Territory means the Commonwealth of Puerto Rico, the United States Virgin Islands,
Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa.
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Tribal enterprise means a business concern:
(1)That is wholly owned by one or more Tribal governments, or by a corporation that is
wholly owned by one or more Tribal governments; or
(2)That is owned in part by one or more Tribal governments, or by a corporation that is
wholly owned by one or more Tribal governments, if all other owners are either United States
citizens or small business concerns, as these terms are used and consistent with the definitions in
15 U.S.C. 657a(b)(2)(D).
Tribal government means the recognized governing body of any Indian or Alaska Native
tribe, band, nation, pueblo, village, community, component band, or component reservation,
individually identified (including parenthetically) in the list published on January 29, 2021,
pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994
(25 U.S.C. 5131).
Unemployment rate means the U-3 unemployment rate provided by the Bureau of Labor
Statistics as part of the Local Area Unemployment Statistics program, measured as total
unemployment as a percentage of the civilian labor force.
Unemployment trust fund means an unemployment trust fund established under
section 904 of the Social Security Act (42 U.S.C. 1104).
Unit of general local government has the meaning given to that term in section 102(a)(1)
of the Housing and Community Development Act of 1974 (42 U.S.C. 5302(a)(1)).
Unserved and underserved households or businesses means one or more households or
businesses that are not currently served by a wireline connection that reliably delivers at least
25 Mbps download speed and 3 Mbps of upload speed.
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§ 35.4 Reservation of Authority, Reporting.
(a) Reservation of authority. Nothing in this part shall limit the authority of the Secretary
to take action to enforce conditions or violations of law, including actions necessary to prevent
evasions of this subpart.
(b) Extensions or accelerations of timing. The Secretary may extend or accelerate any
deadline or compliance date of this part, including reporting requirements that implement this
subpart, if the Secretary determines that such extension or acceleration is appropriate. In
determining whether an extension or acceleration is appropriate, the Secretary will consider the
period of time that would be extended or accelerated and how the modified timeline would
facilitate compliance with this subpart.
(c) Reporting and requests for other information. During the covered period, recipients
shall provide to the Secretary periodic reports providing detailed accounting of the uses of funds,
all modifications to a State or Territory’s tax revenue sources, and such other information as the
Secretary may require for the administration of this section. In addition to regular reporting
requirements, the Secretary may request other additional information as may be necessary or
appropriate, including as may be necessary to prevent evasions of the requirements of this
subpart. False statements or claims made to the Secretary may result in criminal, civil, or
administrative sanctions, including fines, imprisonment, civil damages and penalties, debarment
from participating in Federal awards or contracts, and/or any other remedy available by law.
§ 35.5 Use of funds.
(a) In General. A recipient may only use funds to cover costs incurred during the period
beginning March 3, 2021, and ending December 31, 2024, for one or more of the purposes
enumerated in sections 602(c)(1) and 603(c)(1) of the Social Security Act, as applicable,
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including those enumerated in section § 35.6 of this subpart, subject to the restrictions set forth in
sections 602(c)(2) and 603(c)(2) of the Social Security Act, as applicable.
(b) Costs incurred. A cost shall be considered to have been incurred for purposes of
paragraph (a) of this section if the recipient has incurred an obligation with respect to such cost
by December 31, 2024.
(c) Return of funds. A recipient must return any funds not obligated by
December 31, 2024, and any funds not expended to cover such obligations by
December 31, 2026.
§ 35.6 Eligible uses.
(a) In General. Subject to §§ 35.7 and 35.8 of this subpart, a recipient may use funds for
one or more of the purposes described in paragraphs (b)-(e) of this section
(b) Responding to the public health emergency or its negative economic impacts. A
recipient may use funds to respond to the public health emergency or its negative economic
impacts, including for one or more of the following purposes:
(1) COVID-19 response and prevention. Expenditures for the mitigation and prevention
of COVID-19, including:
(i) Expenses related to COVID-19 vaccination programs and sites, including staffing,
acquisition of equipment or supplies, facilities costs, and information technology or other
administrative expenses;
(ii)COVID–19-related expenses of public hospitals, clinics, and similar facilities;
(iii) COVID-19 related expenses in congregate living facilities, including skilled nursing
facilities, long-term care facilities, incarceration settings, homeless shelters, residential foster
care facilities, residential behavioral health treatment, and other group living facilities;
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(iv) Expenses of establishing temporary public medical facilities and other measures to
increase COVID-19 treatment capacity, including related construction costs and other capital
investments in public facilities to meet COVID-19-related operational needs;
(v)Expenses of establishing temporary public medical facilities and other measures to
increase COVID-19 treatment capacity, including related construction costs and other capital
investments in public facilities to meet COVID-19-related operational needs;
(vi)Costs of providing COVID-19 testing and monitoring, contact tracing, and
monitoring of case trends and genomic sequencing for variants;
(vii) Emergency medical response expenses, including emergency medical transportation,
related to COVID-19;
(viii)Expenses for establishing and operating public telemedicine capabilities for
COVID-19-related treatment;
(ix) Expenses for communication related to COVID-19 vaccination programs and
communication or enforcement by recipients of public health orders related to COVID-19;
(x) Expenses for acquisition and distribution of medical and protective supplies,
including sanitizing products and personal protective equipment;
(xi) Expenses for disinfection of public areas and other facilities in response to the
COVID-19 public health emergency;
(xii) Expenses for technical assistance to local authorities or other entities on mitigation
of COVID-19-related threats to public health and safety;
(xiii)Expenses for quarantining or isolation of individuals;
(xiv) Expenses of providing paid sick and paid family and medical leave to public
employees to enable compliance with COVID-19 public health precautions;
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(xv) Expenses for treatment of the long-term symptoms or effects of COVID-19,
including post-intensive care syndrome;
(xvi) Expenses for the improvement of ventilation systems in congregate settings, public
health facilities, or other public facilities;
(xvii)Expenses related to establishing or enhancing public health data systems; and
(xviii)Mental health treatment, substance misuse treatment, and other behavioral health
services.
(2) Public Health and Safety Staff. Payroll and covered benefit expenses for public
safety, public health, health care, human services, and similar employees to the extent that the
employee’s time is spent mitigating or responding to the COVID-19 public health emergency.
(3) Hiring State and Local Government Staff. Payroll, covered benefit, and other costs
associated with the recipient increasing the number of its employees up to the number of
employees that it employed on January 27, 2020.
(4) Assistance to Unemployed Workers. Assistance, including job training, for
individuals who want and are available for work, including those who have looked for work
sometime in the past 12 months or who are employed part time but who want and are available
for full-time work;
(5) Contributions to State Unemployment Insurance Trust Funds. Contributions to an
Unemployment Trust Fund up to the level required to restore the Unemployment Trust Fund to
its balance on January 27, 2020 or to pay back advances received under Title XII of the Social
Security Act (42 U.S.C. 1321) for the payment of benefits between January 27, 2020 and
[INSERT DATE OF PUBLICATION IN THE FEDERAL REGISTER];
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(6) Small Businesses. Assistance to small businesses, including loans, grants, in-kind
assistance, technical assistance or other services, that responds to the negative economic impacts
of the COVID-19 public health emergency;
(7) Nonprofits. Assistance to nonprofit organizations, including loans, grants, in-kind
assistance, technical assistance or other services, that responds to the negative economic impacts
of the COVID-19 public health emergency;
(8) Assistance to Households. Assistance programs, including cash assistance programs,
that respond to the COVID-19 public health emergency;
(9) Aid to Impacted Industries. Aid to tourism, travel, hospitality, and other impacted
industries that responds to the negative economic impacts of the COVID-19 public health
emergency;
(10) Expenses to Improve Efficacy of Public Health or Economic Relief Programs.
Administrative costs associated with the recipient’s COVID-19 public health emergency
assistance programs, including services responding to the COVID-19 public health emergency or
its negative economic impacts, that are not federally funded.
(11) Survivor’s Benefits. Benefits for the surviving family members of individuals who
have died from COVID-19, including cash assistance to widows, widowers, or dependents of
individuals who died of COVID-19;
(12) Disproportionately Impacted Populations and Communities. A program, service, or
other assistance that is provided in a Qualified Census Tract, that is provided to households and
populations living in a Qualified Census Tract, that is provided by a Tribal government, or that is
provided to other households, businesses, or populations disproportionately impacted by the
COVID-19 public health emergency, such as:
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(i) Programs or services that facilitate access to health and social services, including:
(A)Assistance accessing or applying for public benefits or services;
(B)Remediation of lead paint or other lead hazards; and
(C)Community violence intervention programs;
(ii)Programs or services that address housing insecurity, lack of affordable housing, or
homelessness, including:
(A)Supportive housing or other programs or services to improve access to stable,
affordable housing among individuals who are homeless;
(B)Development of affordable housing to increase supply of affordable and high-quality
living units; and
(C) Housing vouchers and assistance relocating to neighborhoods with higher levels of
economic opportunity and to reduce concentrated areas of low economic opportunity;
(iii)Programs or services that address or mitigate the impacts of the COVID-19 public
health emergency on education, including:
(A) New or expanded early learning services;
(B) Assistance to high-poverty school districts to advance equitable funding across
districts and geographies; and
(C) Educational and evidence-based services to address the academic, social, emotional,
and mental health needs of students;
(iv) Programs or services that address or mitigate the impacts of the COVID-19 public
health emergency on childhood health or welfare, including:
(A) New or expanded childcare;
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(B) Programs to provide home visits by health professionals, parent educators, and social
service professionals to individuals with young children to provide education and assistance for
economic support, health needs, or child development; and
(C) Services for child welfare-involved families and foster youth to provide support and
education on child development, positive parenting, coping skills, or recovery for mental health
and substance use.
(c) Providing Premium Pay to Eligible Workers. A recipient may use funds to provide
premium pay to eligible workers of the recipient who perform essential work or to provide grants
to eligible employers, provided that any premium pay or grants provided under this paragraph (c)
must respond to eligible workers performing essential work during the COVID-19 public health
emergency. A recipient uses premium pay or grants provided under this paragraph (c) to respond
to eligible workers performing essential work during the COVID-19 public health emergency if
it prioritizes low-and moderate-income persons. The recipient must provide, whether for
themselves or on behalf of a grantee, a written justification to the Secretary of how the premium
pay or grant provided under this paragraph (c) responds to eligible workers performing essential
work if the premium pay or grant would increase an eligible worker’s total wages and
remuneration above 150 percent of such eligible worker’s residing State’s average annual wage
for all occupations or their residing county’s average annual wage, whichever is higher.
(d) Providing Government Services. For the provision of government services to the
extent of a reduction in the recipient’s general revenue, calculated according to paragraphs (d)(1)
and (d)(2).
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-
(1) Frequency. A recipient must calculate the reduction in its general revenue using
information as-of December 31, 2020, December 31, 2021, December 31, 2022, and December
31, 2023 (each, a calculation date) and following each calculation date.
(2) Calculation. A reduction in a recipient’s general revenue equals: 𝑛𝑛𝑡𝑡 𝑀𝑀𝑀𝑀𝑀𝑀 {[𝐵𝐵𝑀𝑀𝐵𝐵𝐵𝐵 𝑌𝑌𝐵𝐵𝑀𝑀𝑌𝑌 𝑅𝑅𝐵𝐵𝑅𝑅𝐵𝐵𝑅𝑅𝑅𝑅𝐵𝐵 ∗ (1 + 𝐺𝐺𝑌𝑌𝐺𝐺𝐺𝐺𝐺𝐺ℎ 𝐴𝐴𝐴𝐴𝐴𝐴𝑅𝑅𝐵𝐵𝐺𝐺𝐴𝐴𝐵𝐵𝑅𝑅𝐺𝐺)�12�] − 𝐴𝐴𝐴𝐴𝐺𝐺𝑅𝑅𝑀𝑀𝐴𝐴 𝐺𝐺𝐵𝐵𝑅𝑅𝐵𝐵𝑌𝑌𝑀𝑀𝐴𝐴 𝑅𝑅𝐵𝐵𝑅𝑅𝐵𝐵𝑅𝑅𝑅𝑅𝐵𝐵𝑡𝑡; 0}
Where:
(i) Base Year Revenue is the recipient’s general revenue for the most recent full fiscal
year prior to the COVD-19 public health emergency;
(ii) Growth Adjustment is equal to the greater of 4.1 percent (or 0.041) and the recipient’s
average annual revenue growth over the three full fiscal years prior to the COVID-19 public
health emergency.
(iii) n equals the number of months elapsed from the end of the base year to the
calculation date.
(iv)Actual General Revenue is a recipient’s actual general revenue collected during 12-
month period ending on each calculation date;
(v)Subscript t denotes the specific calculation date.
(e) To Make Necessary Investments in Infrastructure. A recipient may use funds to make
investments in:
(1) Clean Water State Revolving Fund and Drinking Water State Revolving Fund
investments. Projects or activities of the type that would be eligible under section 603(c) of the
Federal Water Pollution Control Act (33 U.S.C. 1383(c)) or section 1452 of the Safe Drinking
Water Act (42 U.S.C. 300j-12); or,
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(2) Broadband. Broadband infrastructure that is designed to provide service to unserved
or underserved households and businesses and that is designed to, upon completion:
(A)Reliably meet or exceed symmetrical 100 Mbps download speed and upload speeds;
or
(B) 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, to provide service meeting the
standards set forth in paragraph (e)(2)(A) of this section:
(i) Reliably meet or exceed 100 Mbps download speed and between at least 20 Mbps and
100 Mbps upload speed; and
(ii) Be scalable to a minimum of 100 Mbps download speed and 100 Mbps upload speed.
§ 35.7 Pensions.
A recipient may not use funds for deposit into any pension fund.
§ 35.8 Tax.
(a) Restriction. A State or Territory shall not use funds to either directly or indirectly
offset a reduction in the net tax revenue of the State or Territory resulting from a covered change
during the covered period.
(b) Violation. Treasury will consider a State or Territory to have used funds to offset a
reduction in net tax revenue if, during a reporting year:
(1) Covered Change. The State or Territory has made a covered change that, either based
on a reasonable statistical methodology to isolate the impact of the covered change in actual
revenue or based on projections that use reasonable assumptions and do not incorporate the
effects of macroeconomic growth to reduce or increase the projected impact of the covered
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change, the State or Territory assesses has had or predicts to have the effect of reducing tax
revenue relative to current law;
(2) Exceeds the De Minimis Threshold. The aggregate amount of the measured or
predicted reductions in tax revenue caused by covered changes identified under paragraph (b)(1)
of this section, in the aggregate, exceeds 1 percent of the State’s or Territory’s baseline;
(3) Reduction in Net Tax Revenue. The State or Territory reports a reduction in net tax
revenue, measured as the difference between actual tax revenue and the State’s or Territory’s
baseline, each measured as of the end of the reporting year; and
(4) Consideration of Other Changes. The aggregate amount of measured or predicted
reductions in tax revenue caused by covered changes is greater than the sum of the following, in
each case, as calculated for the reporting year:
(i)The aggregate amount of the expected increases in tax revenue caused by one or more
covered changes that, either based on a reasonable statistical methodology to isolate the impact
of the covered change in actual revenue or based on projections that use reasonable assumptions
and do not incorporate the effects of macroeconomic growth to reduce or increase the projected
impact of the covered change, the State or Territory assesses has had or predicts to have the
effect of increasing tax revenue; and
(ii)Reductions in spending, up to the amount of the State’s or Territory’s net reduction in
total spending, that are in:
(A)Departments, agencies, or authorities in which the State or Territory is not using
funds; and
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(B)Departments, agencies, or authorities in which the State or Territory is using funds, in
an amount equal to the value of the spending cuts in those departments, agencies, or authorities,
minus funds used.
(c) Amount and Revenue Reduction Cap. If a State or Territory is considered to be in
violation pursuant to paragraph (b) of this section, the amount used in violation of paragraph (a)
of this section is equal to the lesser of:
(1)The reduction in net tax revenue of the State or Territory for the reporting year,
measured as the difference between the State’s or Territory’s baseline and its actual tax revenue,
each measured as of the end of the reporting year; and,
(2) The aggregate amount of the reductions in tax revenues caused by covered changes
identified in paragraph (b)(1) of this section, minus the sum of the amounts in identified in
paragraphs (b)(4)(i)-(ii).
§ 35.9. Compliance with Applicable Laws.
A recipient must comply with all other applicable Federal statutes, regulations, and
executive orders, and a recipient shall provide for compliance with the American Rescue Plan
Act, this Subpart, and any interpretive guidance by other parties in any agreements it enters into
with other parties relating to these funds.
§ 35.10. Recoupment.
(a) Identification of Violations – (1) In general. Any amount used in violation of §§ 35.6
or 35.7 of this subpart may be identified at any time prior to December 31, 2026.
(2) Annual Reporting of Amounts of Violations. On an annual basis, a recipient that is a
State or Territory must calculate and report any amounts used in violation of § 35.8 of this
subpart.
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(b) Calculation of Amounts Subject to Recoupment – (1) In general. Except as provided
in paragraph (b)(2), Treasury will calculate any amounts subject to recoupment resulting from a
violation of §§ 35.6 or 35.7 of this subpart as the amounts used in violation of such restrictions.
(2) Violations of Section 35.8. Treasury will calculate any amounts subject to
recoupment resulting from a violation of § 35.8 of this subpart, equal to the lesser of:
(i)The amount set forth in § 35.8(c) of this subpart; and,
(ii)The amount of funds received by such recipient.
(c) Notice. If Treasury calculates an amount subject to recoupment under paragraph (b)
of this section, Treasury will provide the recipient a written notice of the amount subject to
recoupment along with an explanation of such amounts.
(d) Request for Reconsideration. Unless Treasury extends the time period, within 60
calendar days of receipt of a notice of recoupment provided under paragraph (c) of this section, a
recipient may submit a written request to Treasury requesting reconsideration of any amounts
subject to recoupment under paragraph (b) of this section. To request reconsideration of any
amounts subject to recoupment, a recipient must submit to Treasury a written request that
includes:
(i)An explanation of why the recipient believes all or some of the amount should not be
subject to recoupment; and
(ii)A discussion of supporting reasons, along with any additional information.
(e) Final Amount Subject to Recoupment. Unless Treasury extends the time period,
within 60 calendar days of receipt of the recipient’s request for reconsideration provided
pursuant to paragraph (d) of this section, the recipient will be notified of the Secretary’s decision
to affirm, withdraw, or modify the notice of recoupment. Such notification will include an
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explanation of the decision, including responses to the recipient’s supporting reasons and
consideration of additional information provided.
(f) Repayment of Funds. Unless Treasury extends the time period, a recipient shall repay
to the Secretary any amounts subject to recoupment in accordance with instructions provided by
Treasury:
(i)Within 120 calendar days of receipt of the notice of recoupment provided under
paragraph (c) of this section, in the case of a recipient that does not submit a request for
reconsideration in accordance with the requirements of paragraph (d) of this section, or
(ii) Within 120 calendar days of receipt of the Secretary’s decision under paragraph (e) of
this section, in the case of a recipient that submits a request for reconsideration in accordance
with the requirements of paragraph (d) of this section.
§ 35.11 Payments to States.
(a) In General. With respect to any State or Territory that has an unemployment rate as
of the date that it submits an initial certification for payment of funds pursuant to section
602(d)(1) of the Social Security Act that is less than two percentage points above its
unemployment rate in February 2020, the Secretary will withhold 50 percent of the amount of
funds allocated under section 602(b) of the Social Security Act to such State or territory until the
date that is twelve months from the date such initial certification is provided to the Secretary.
(b) Payment of Withheld Amount. In order to receive the amount withheld under
paragraph (a) of this section, the State or Territory must submit to the Secretary at least 30 days
prior to the date referenced in paragraph (a) the following information:
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(i) A certification, in the form provided by the Secretary, that such State or Territory
requires the payment to carry out the activities specified in section 602(c) of the Social Security
Act and will use the payment in compliance with section 602(c) of the Social Security Act; and,
(ii) Any reports required to be filed by that date pursuant to this part that have not yet
been filed.
§ 35.12. Distributions to Nonentitlement Units of Local Government and Units of General
Local Government.
(a) Nonentitlement Units of Local Government. Each State or Territory that receives a
payment from Treasury pursuant to section 603(b)(2)(B) of the Social Security Act shall
distribute the amount of the payment to nonentitlement units of government in such State or
Territory in accordance with the requirements set forth in section 603(b)(2)(C) of the Social
Security Act and without offsetting any debt owed by such nonentitlement units of local
governments against such payments.
(b) Budget Cap. A State or Territory may not make a payment to a nonentitlement unit of
local government pursuant to section 603(b)(2)(C) of the Social Security Act and paragraph (a)
of this section in excess of the amount equal to 75 percent of the most recent budget for the
nonentitlement unit of local government as of January 27, 2020. A State or Territory shall
permit a nonentitlement unit of local government without a formal budget as of
January 27, 2020, to provide a certification from an authorized officer of the nonentitlement unit
of local government of its most recent annual expenditures as of January 27, 2020, and a State or
Territory may rely on such certification for purposes of complying with this subsection.
(c) Units of General Local Government. Each State or Territory that receives a payment
from Treasury pursuant to section 603(b)(3)(B)(ii) of the Social Security Act, in the case of an
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_____________________________________
amount to be paid to a county that is not a unit of general local government, shall distribute the
amount of the payment to units of general local government within such county in accordance
with the requirements set forth in section 603(b)(3)(B)(ii) of the Social Security Act and without
offsetting any debt owed by such units of general local government against such payments.
(d) Additional Conditions. A State or Territory may not place additional conditions or
requirements on distributions to nonentitlement units of local government or units of general
local government beyond those required by section 603 of the Social Security Act or this subpart.
Dated:
[]
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QUALITY OF LIFE
Promote a high-quality of life through quality programs, services and appropriate investment and re-
investment in community infrastructure by:
• Using Community Development Block Grant (CDBG) and other public and private capital to
revitalize older neighborhoods and safe routes to essential services.
• Continuing efforts toward designing, siting, programming needs, and site selection for a
community center and pursuing acquisition of land for future community park.
• Developing Phase I of the A Street Sporting Complex and continue efforts to provide additional
soccer and sports fields.
• Coordinating with the Pasco Public Facilities District to develop a public education campaign,
financial analysis and prepare a ballot measure concerning the development of a regional aquatic
facility for consideration by the people.
• Completing construction of a new animal control facility.
• Ongoing efforts to improve efficiency and effectiveness of public resources in the delivery of
municipal services, programs, and long-term maintenance and viability of public facilities.
• Collaborating with the Inclusion, Diversity and Equity Commission and community leaders to
enhance engagement efforts and organizational cultural competency.
• Updating design standards for the development of new neighborhoods and re-development to
promote greater neighborhood cohesion through design elements, e.g.: walkability, aesthetics,
sustainability, and community gathering spaces.
• Updating Parks and Facilities Comprehensive Plan to include: public facilities inventory, needs
assessment, level of service, and centers evaluation.
• Teaming with local and regional partners to develop a Housing Action Plan with a focus on strategies
that emphasize affordable housing.
FINANCIAL SUSTAINABILITY
Enhance the long-term financial viability, value, and service levels of services and programs, including:
• Regular evaluation of services and programs to confirm importance to community, adequacy, and
cost-benefit.
• Continuation of cost of service and recovery targets in evaluating City services.
• Ongoing evaluation of costs, processes and performance associated with delivery of City services
including customer feedback and satisfaction, staffing, facilities, and partnership opportunities.
• Instilling and promoting an organizational culture of customer service across all business lines.
• Updating policies relating to urbanization of the unincorporated islands to assure consistency with
long-range planning, community safety, and fiscal sustainability.
City Council Goals 2020-2021
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COMMUNITY SAFETY
Preserve past improvements and promote future gains by:
• Developing a Comprehensive Police Strategic Master Plan through a transparent process to evaluate
future service levels of the department to assure sustainability, public safety, and crime control over
the next 5-10 years.
• Collaborating with regional and community partners to evaluate and implement strategies to
reduce the incidence of homelessness.
• Leveraging and expanding partnerships to maintain and enhance behavioral health services to
community members in crisis being assisted by police and fire.
• Continuing efforts to improve police and community relations.
• Working to achieve and maintain target fire response times through operational improvements and
long-range strategic planning of facilities and staffing.
• Focusing on the long-term goal of sustaining a Washington State Rating Bureau Class 3 community
rating.
• Leveraging infrastructure database of sidewalks, streetlights and pavement conditions along with
evaluating policies and methods to address needs and inequities.
COMMUNITY TRANSPORTATION NETWORK
Promote a highly-functional multi-modal transportation network through:
• Commencement and completion of construction of the Lewis Street Overpass project.
• Continued emphasis on improvements in Road 68/I-182/Burden Blvd. corridor to improve operation
and safety.
• Data-driven pro-active neighborhood traffic calming efforts.
• Continued collaboration with Ben Franklin Transit to enhance mobility and access.
• Completion of a Transportation System Master Plan and utilization of its recommendations to
develop policies, regulations, programs, and projects that provide for greater connectivity, strategic
investment, mobility, multi-modal systems, accessibility, efficiency and safety.
ECONOMIC VITALITY
Promote and encourage economic vitality by supporting:
• Downtown revitalization efforts of Downtown Pasco Development Authority (DPDA), post-COVID
restart, and City initiatives such as Downtown Master Plan process and sign code modifications.
• The construction of Peanuts Park and Farmers Market and continued efforts to pursue streetscape
and gateway upgrades.
• The completion of the Comprehensive Land Use Plan Update and Broadmoor Master Plan efforts,
adoption of Urban Growth Area expansion alternative, implementation of adopted long-range
planning efforts with appropriate analysis and adoption of planning actions including: zoning code
changes, phased sign code update, and development regulations and standards.
• Increased efforts to promote the community as a desirable place for commercial and industrial
development by promoting small business outreach and assistance, predictability in project review,
and excellent customer service.
• Partnerships and encouragement of Department of Natural Resources (DNR) to facilitate
development of the remaining state-owned properties at Road 68/I-182.
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• Continued coordination with the Port of Pasco to complete and implement a waterfront-zoning
plan and provide for public infrastructure.
• Active partnerships in the planning and development of strategies to promote tourism and
deployment of assets to spur economic activity.
• In concert with community partners, development of a comprehensive economic development
plan.
COMMUNITY IDENTITY
Identify opportunities to enhance community identity, cohesion and image through:
• Continued efforts of community surveying through traditional methods and the application of new
technologies.
• Providing opportunities for community engagement through boards, commissions, volunteer
opportunities, social media, forums, and other outlets.
• Enhanced inter-agency and constituent coordination developed during the pandemic.
• Continued efforts of the community identity/image enhancement campaign to include promotion
of community and organizational successes.
• Enhanced participation and support of cultural events occurring within the community.
• Support of the Arts and Culture Commission in promoting unity and the celebration of diversity
through art and culture programs.
For more information, visit www.pasco-wa.gov/councilgoals
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CALIDAD DE VIDA
Promover una vida de buena calidad a través de programas de calidad, servicios e inversiones y
reinversiones adecuadas en la infraestructura de la comunidad al:
• Utilizar una Community Development Block Grant (CDBG) (Concesión de Ayuda Federal para el
Desarrollo Comunitario) y otro capital público y privado para renovar las vecindades antiguas y las
rutas seguras a los servicios esenciales.
• Continuar los esfuerzos hacia el diseño, las obras de construcción, las necesidades programáticas, y
la elección de dichas obras de construcción, para un centro comunitario y comprar el terreno para
un futuro parque comunitario.
• Desarrollar la 1era Fase del Sporting Complex (Complejo Deportivo) de la Calle A y continuar los
esfuerzos de proporcionar más campos de fútbol y de otros deportes.
• Coordinar con el Pasco Public Facilities District (Distrito de las Instalaciones Públicas de Pasco) para
desarrollar una campaña de educación pública, un análisis financiero, y preparar una propuesta
sobre el desarrollo de una instalación acuática regional para que sea considerada por el público.
• Terminar la construcción de una nueva instalación para el control de animales.
• Continuar los esfuerzos para mejorar la eficiencia y la eficacia de los recursos públicos en la entrega
de servicios municipales, programas, y el mantenimiento y la viabilidad a largo plazo de
instalaciones públicas.
• Colaborar con la Inclusion, Diversity and Equity Commission (Comisión de Inclusión, Diversidad, y
Equidad) y con los líderes comunitarios para mejorar los esfuerzos de participación y la capacidad
cultural organizacional.
• Actualizar los estándares de diseño para el desarrollo de nuevas vecindades y el redesarrollo para
promover más cohesión de las vecindades a través de elementos de diseño, p. ej.: viabilidad peatonal,
evaluación de las necesidades, sustentabilidad, y lugares donde se puedan reunir los miembros de
la comunidad.
• Actualizar el Parks and Facilities Comprehensive Plan (Plan Comprehensivo de los Parques y las
Instalaciones) para que incluya: un inventario de instalaciones públicas, una evaluación de las
necesidades, el nivel de servicio, y la evaluación del centro.
• Trabajar en equipo con colaboradores regionales para desarrollar un Housing Action Plan (Plan de
Acción para Viviendas) con un enfoque en las estrategias que enfatizan viviendas económicas.
SUSTENTABILIDAD FINANCIERA
Mejorar la sustentabilidad financiera a largo plazo, el valor, y los niveles de servicios y programas,
incluyendo:
• La evaluación regular de los servicios y de los programas para confirmar la importancia de la
comunidad, la capitalización adecuada, y el costo-beneficio.
Metas del Concilio de la
Ciudad del 2020-2021
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• La continuación del costo por el servicio y de las metas de recuperación al evaluar los servicios de la
Ciudad.
• La evaluación continua de los costos, los procesos y el desempeño relacionado con la entrega de los
servicios de la Ciudad incluyendo la retroalimentación y la satisfacción del cliente, el personal, las
instalaciones, y las oportunidades colaborativas.
• Inculcar y promover una cultura organizacional de servicio al cliente a lo largo de todas las líneas de
negocio.
• Actualizar las políticas relacionadas con la urbanización de las islas no incorporadas para asegurar
consistencia con la planificación a largo plazo, la seguridad comunitaria, y la sustentabilidad fiscal.
SEGURIDAD COMUNITARIA
Preservar las mejorías anteriores y promover las ganancias futuras al:
• Desarrollar un Comprehensive Police Strategic Master Plan (Plan Maestro Estratégico
Comprehensivo Policial) a través de un proceso transparente para evaluar los niveles futuros de
servicio del departamento para asegurar sustentabilidad, seguridad pública, y control de crímenes
durante los siguientes 5-10 años.
• Trabajar con colaboradores regionales y comunitarios para evaluar e implementar estrategias para
reducir los casos de personas sin techo.
• Hacer uso y ampliar las colaboraciones para mantener y mejorar los servicios de salud conductual a
los miembros de la comunidad que se encuentran en medio de una crisis, ayudados por la policía y
por los bomberos.
• Continuar los esfuerzos para mejorar la relación con la policía y con la comunidad.
• Trabajar para lograr y mantener el tiempo de reacción de los bomberos a través de mejorías
operacionales y la planificación estratégica de instalaciones y personal a largo plazo.
• Enfocarse en la meta a largo plazo de mantener una clasificación de la comunidad Clase 3 del
Washington State Rating Bureau (Departamento de Clasificación del Estado de Washington).
• Utilizar la base de datos de la infraestructura de las banquetas, los faroles, y las condiciones del
pavimento, como también evaluar las políticas y los métodos para tratar las necesidades y las
injusticias.
RED DE TRANSPORTE COMUNITARIO
Promover una red de transporte extremadamente funcional y multimodal a través de:
• El comienzo y el término de la construcción del proyecto Lewis Street Overpass.
• El énfasis continuo en las mejorías de la ruta Road 68/I-182/Burden Blvd. para mejorar la operación y
la seguridad.
• Los esfuerzos proactivos basados en datos para calmar el tráfico en las vecindades.
• La colaboración continua con Ben Franklin Transit para mejorar la movilidad y el acceso.
• El término del Transportation System Master Plan (Plan Maestro del Sistema de Transporte) y la
utilización de sus recomendaciones para desarrollar políticas, reglas, programas, y proyectos que
proporcionan más conectividad, inversiones estratégicas, movilidad, sistemas multimodales,
accesibilidad, eficiencia, y seguridad.
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VITALIDAD ECONOMICA
Promover y motivar la vitalidad económica al apoyar:
• Los esfuerzos de renovación de la Downtown Pasco Development Authority (DPDA) (Autoridad de
Desarrollo del Centro de Pasco), el reinicio después de COVID, y las iniciativas de la Ciudad como el
proceso del Downtown Master Plan (Plan Maestro del Centro) y las modificaciones de los códigos de
anuncios.
• La construcción del Peanuts Park and Farmers Market (Parque Peanuts y el Mercado) y los esfuerzos
continuos para discutir paisajes urbanos y actualizaciones de entradas.
• El término de los esfuerzos de la Comprehensive Land Use Plan Update (Actualización
Comprehensiva del Uso de Terrenos) y los esfuerzos del Broadmoor Master Plan (Plan Maestro de
Broadmoor), la adopción de la alternativa de la expansión de Urban Growth Area (Área del
Crecimiento Urbano), la implementación de los esfuerzos de planificación a largo plazo con los
análisis adecuados y la adopción de acciones de planificación incluyendo: los cambios a los códigos
de zonas, la actualización de los códigos de los anuncios de las fases, y el desarrollo de las reglas y los
estándares.
• Más esfuerzos para promover a la comunidad como un lugar atractivo para el desarrollo comercial
e industrial al fomentar el alcance y la ayuda a los negocios pequeños, la predictibilidad en la
revisión de proyectos, y un excelente servicio al cliente.
• Las colaboraciones y la motivación del Department of Natural Resources (DNR) (Departamento de
Recursos Naturales) para facilitar el desarrollo de las propiedades restantes del estado en Road 68/I-
182.
• La coordinación continua con el Port of Pasco (Puerto de Pasco) para terminar e implementar un
plan de zonas costeras y proporcionar una infraestructura pública.
• Las colaboraciones activas en la planificación y el desarrollo de estrategias para promover el turismo
y la utilización de recursos para estimular actividad económica.
• Junto con los colaboradores de la comunidad, crear un plan comprehensivo de desarrollo
económico.
IDENTIDAD COMUNITARIA
Identificar oportunidades para mejorar la identidad comunitaria, la cohesión, y la imagen a través de:
• Los esfuerzos continuos para evaluar a la comunidad a través de los métodos tradicionales y la
aplicación de nuevas tecnologías.
• Proporcionar oportunidades para la involucración comunitaria a través de mesas directivas,
comisiones, oportunidades para voluntarios, medios sociales, foros, y otros medios.
• Una mejor coordinación entre las agencias y los constituyentes desarrollada durante la pandémica.
• Los esfuerzos continuos de campañas para la mejoría de la identidad/imagen comunitaria que
promuevan a la comunidad y a los éxitos organizacionales.
• Una mejor participación y apoyo de los eventos culturales llevados a cabo dentro de la comunidad.
• El apoyo de la Arts and Culture Commission (Comisión de Artes y Cultura) al promover la unidad y
celebrar la diversidad a través de programas de arte y cultura.
Para más información, visite www.pasco-wa.gov/councilgoals
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