07-08-20-Resolution-Authorizing the Creation of Account with First United Bank-07/20/2020RESOLUTION 7T07-08-20
A RESOLUTION OF THE CITY OF SANGER TEXAS, AUTHORIZING THE
CREATION OF A BANK ACCOUNT WITH FIRST UNITED BANK FOR RECEIPT OF
CORONAVIRUS RELIEF FUND MONIES AND DECLARING AN EFFECTIVE DATE.
WHEREAS, the City of Sanger entered into an Agreement with First United Bank
("Bank'), for the latter to serve as the Depository Bank for the City; and
WHEREAS, the City established certain accounts in "Bank" to facilitate the deposit and
disbursement of City funds for authorized purposes; and
WHEREAS, the City determined the need for a bank account for receipt of Coronavirus
Relief Fund monies;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SANGER, TEXAS THAT:
Section 1. That the above recitals are true and correct; and the City staff is authorized to
open such an account with First United Bank.
Section 2. That this Resolution shall become effective after its passage.
DULY PASSED, APPROVED AND AD PTED by the City Council of the City of Sanger,
Texas, on this �ci day of
•d h'` °f�, APPROVED:
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Thomas E. Muir, Mayor
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City Secretary
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CORONAVIItUS RELIEF FUND
INTERLOCAL COOPERATION AGREEMENT
Denton County and the City of Sanger
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TIus Interlocal Cooperation Agreement ("Agreement") is entered into by and between Denton '
County, Texas (the "County") and the City of Sanger Texas (the "Municipality"), pursuant to
Chapter 791 of the Texas Local Government Code, to address the impact of the public health
emergency with respect to the Coronavirus pandemic ("COVID"19").
GENERAL
1. Coronavirus Relief Fund. The County has received federal fundingunderthe
Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"} to address and respond
to the impact and effects of the COVID49 emergency.
2. County Authority, The Resolution of the Denton County, Texas Commissioners Court,
under Chapter 381 of the Local Government Code, lawfully establishing a COVID-l9
municipality funding program (the "Municipality Program"), allowing the County to grant
money to your Municipality, is attached hereto as Attachment A and incorporated by reference
herein. Funds were received by the County from the US Department of the Treasury (the
"Treasury") under the Coronavims Relief Fund ("CRF"), as provided for in the CARES Act. The
use of these CRF funds to assist a municipality of the County with their expenditures incurred
due to the effects of COVID-1 9 and to potentially fund a local grant program are legitimate and
lawful uses of the CRF funds.
3, Municipality Authority. The Orders of the Municipality, establishing a COVID-19
emergency program or programs, allowing it to make grants of its award, is attached hereto and
incorporated by reference herein. The Municipality represents and warrants that its programs (if
the Municipality decides to distribute the Municipal Funds through its own programs) will be in
full compliance with Chapter 390 of the Local Government Code.
d, Inspector General Oversight & Reeoupment, Section 601(f) provides that the Inspector
General of the Treasury shall conduct monitoring and oversight of the receipt, disbursement, and
use of CRF funds. If the Inspector General determines that a unit of local government has failed
to comply with the use of funds rules (as described herein in Paragraphs 1046, "Use of Funds"),
the amount of CRF funds in noncompliance shall be "booked as a debt of such entity owed to the
federal government." The conditions and restrictions on the use of the CRF funds follows to all
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recipients, Tram the County, to the Municipality, to businesses and individuals that receive such
funds.
GRANT
5. Amount. Subject to the terns and conditions of this Agreement, the County agrees to
grant and transfer to the Municipality the sum of $484,000 of its CRF funds ("Municipal
Funds" ).
6. Separate Bank Account.. The Municipality agrees to deposit these Municipal Funds into a
separate, segregated account created solely for holding and disbursing these Municipal Funds.
The account must be an interest beating account and similarly insured and protected in the same
manner as the Municipality's other fiends.
7. Calculation of Muzucinal Funds. The initial calculation of the grant amount of funds is
based on the higher of the Municipality's 2019 NCTCOG estimated population (8,800) or 2018
ACS estimated population (8,540), multiplied by $55.00 per capita ("the Maximum Allocation").
That amount is reduced by:
a. the excess of the Maximum Allocation minus the budgeted amount of eligible
funds (as defined in Paragraph 8(a)), and further reduced by;
b. the ainount of funds xeduected and contributed to the County's programs (e.g.,
small business, housing and food programs), at the election of the Municipality,
which is included in the Municipality's proposed budget in Paragraph 8(a).
8. Conditions. Before receiving Municipal Funds, the Municipality must:
a. provide the County with a proposed budget, which includes your contribution to
the County's programs (e.g., small business, housing, and food programs), and
description of eligible uses of Municipal Funds ("Budget of Expenditures and
Description of Intended Uses"). The form to complete your Budget of
Expenditures and Description of Intended Uses is attached as Attachment B;
b. agree to participate in the County's CR.F Compliance Forum (the "Foram"); and
c. provide a copy of the appropriate Chapter 3$0 documentation.
RESPONSIBILITIES OF THE MUNICIPALITY
9. The responsibilities of the Municipality are:
a. to comply with all terms and conditions of the CARES Act;
b. to use Municipal Funds in compliance with the CARES Act;
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c. to promptly return to the County any Municipal Funds not used;
d. taparticipate in the Fonrm;
e. to maintain proper and adequate records of its own expenses, including monthly
uploads to Dropbox, and supporting documentation of the expenditures, and
provide copies of, or access to such, at any time as required by the County;
£ to maintain proper and adequate records of the expenses of any grantees of
Municipal Funds, including monthly uploads to Dropbox, and supporting
documentation of the expenditures, and provide copies of, or access to such, at
any time as required by the County;
g. to return the Statentent of Compliance Certificate by February 1, 2021;
h, to cooperate and coordinatewith other members in tlae Forvan coneeming a
federal compliance audit; and
i. to comply with Chapter 3$1 and Chapter380, if applicable.
USE OF FUNDS
10. Amounts paid from the Treasury's Coronavizus Relief Fund are subject to the restrictions
outlined in the Guidance for State, Territorial, Loca4 and Tribal Governments (dated April 22,
2020) and set forth in section 601(d) of the Social Security Act, as added by section 5001 of the
CARES Act. See Attachment C, which is incorporated by reference into this agreement.
11. Section 601(d}allows CRF funds/Muzzicipal Funds to cover only those costs that:
a. are necessary expenditures incurred due to the public health emergency with
respect to the effects CO V1D-19;
b. were not accounted fax• in the most recently approved budget [of the
Municipaliryj, including any amendments; and
c. are incurred between March 1, 2020 and December 30, 2020. See Coronavir us
Relief Fund Frequently Asked Questions (Updated as of May 4, 2020). See
Attachment C.
12. "Necessary Expenditure" Condition. The use of the money is limited to "necessary
expenditures." The Treasury intends for• broad interpretation of the word "necessary," meaning
"reasonably necessary for its intended use in the reasonable 1ud ment of the govenrment officials
responsible for spending the Fund payments." The Treasury's standard, reasonable judgment,
adopts a subjective, not objective standard. Examples of eligible expenditures include, but are
not limited to, payment for certain types of:
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a, medical expenses;
b. public health expenses;
c. payroll expenses;
d, expenses relating to facilitating compliance;
e. expenses associated with providing economic support in connection with the
COVID49 public health emergency; and
f. any other COVID-19-related expense reasonably necessary to the function of
government.
13. Fundsmay not be used to iiil shortfalls in governmental revenue to cover expenditures
that would not otherwise qualify under section 601(d). REVENUE REPLACEMENT IS
STRICTLY PROHIBITED AND 19 NOT A PERMISSIBLE USE OF FUNDS.
14. "Due To" Condition. The requirement that expenditures be incuured "due to" the public
health emergency created by COVID4 9 means that expenditures must be used for actions taken
to respond to the public health emergency. These may include expenditures incurred by the
Municipality to respond directly to the emergency, as well as expenditures incurred to respond to
second -order effects of the emergency (e.g., economic support to those suffering from
employment or business interruptions due to COVID-I9-related business closures),
15. The Municipality expressly agrees without qualification or exception to adhere and
comply with section 601{d) and the accompanying guidelines regarding its spending and uses of
the Funds.
16. Return of Unused Funds by Municipality. AnyMunicipal Funds -not spent on eligible
expenses before December 30, 2020 must be returned to the County within 30 days after
December 30, 2020.
CRF COMPLIANCE FORUM
17, Description, The Forum is a coiuity-wide initiative between the County and all of the
Municipalities that have requested upfront funding of the Municipal Funds. Ifi is a single,
integrated initiative to mutually benefit all municipalities and the County.
1 &. Pumose. The Forum shall work for the mutual benefit of the County and the
Municipalities, which will promote administrative efficiency, streamline initial compliaizce
measures, and continuing through a potential audit, and foster collaboration between. our
counties.
19. Benefits. The primary goals of the Forum are to:
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a, provide answers to speck questions {e.g., eligible uses of funds);
b. provide assistance with documentation guidelines;
c. reduce noncompliance risk;
d_ reduce administrative burdens;
e. manage and control the potential federal compliance audit; and
f. collaborate and integrate grant programs.
It2EMEDIIES
20. Indemnity. To the extent allowable by law, the Municipality shall defend, indemnify,
and hold harmless the County and its officers, commissioners, employees, volunteers, and
agents, from any and all costs and expenses, damages, liabilities, demands, causes of action,
suits, charges, or legal or administrative proceedings, claims and losses, including, without
limitation, attorneys' fees and costs, caused by or arising out of any act or omission of the
Municipality relating to the terms of this Agreement, including but not limited to any ineligible
expenditures.
2 l . Recoupment. [f the Gaunty, or its designee, reasonably d etermines that all or a poxtion of a
Municipality's expenditure of Municipal Funds is an ineligible expenditure, then the Municipality
shall immediately reimburse the County in an amount equal to the amount of the ineligible
expenditure from funds of the Municipality other than Municipal Funds granted pursuant to this
Agreement, and provide to the County evidence of such reimbursement. The Municipality shall
have 30 days of receipt of the County's determination of an ineligible expenditure to reimburse the
County for such expense. If the Municipality chooses to subsequently grant its Municipal Funds, it
shall be responsible for properly tracing and accounting for when, how, whyand by whom the
expenses were ultimately incurred. This includes the documentation responsibilities listed in
Paragraph 9(t "g) above. In the event the County has to enforce this Agreement, it shallbe entitled to
tecover its reasonable attorney's fees and costs incurred in doing so.
22.Offset. To the extent allowable by law, tke@Countyreserves the right in its sole discretion. to
apply any money, damages or costs incurred as a result of a material breach of thzs agreement by the
Municipality against the future distribution of future tax revenues or receipts from the County to the
Municipality.
23. Attomey's Fees and Costs, The County shall be entitled to recover its reasonable and .
necessary attorneys fees, costs and expenses, from the Municipality in the event the County must
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enforce the tennis of this Agreement in any way, including, but not limited to, litigation or
mediation to the extent allowed by law.
24. Law and Venue. The laws of the State of Texas shall govern this Agreement, except where
clearly superseded by federal law. Venue of any dispute shall be in a court of competent
jurisdiction in Denton County, Texas.
2S. No Assiirnment. The Municipality may not assign this Agreement.
26. Entire Ateement. This Agreement supersedes and constitutes a merger of all prior otl
and/or written agreements and understandings of the parties on the subject matter of this
Agreement and is binding on the parties and their legal representatives, receivers, executors,
successors, agents and assigns.
27. Amendment. Any Amendment of this Agreement must be by written instrument dated and
signed by bothparties.
28. Severability. No partial invalidity of this Agreement shall affect the remainder unless the
public purpose to be served hereby is so greatly diminished thereby as to frustrate the object of
this Agreement.
29. Survival. All provisions of this Agreement that impose continuing obligations on the
parties, including but not limited to payment, agreement purpose, and confidentiality shall survive
the expiration or termination of this Agreement.
30. Waiver. No waiver by either patty of any provision of this Agreement shall be effective
utrless in writing, and such waiver shall not be co mme as or implied to be a subsequent waiver
of that provision or any other provision.
31. Siarrature Authority. The signatories hereto represent to each other that they have the full
tight, power, and authority and have been given any approvals necessary to enter into this
Agreement to bind the respective patties for which they sign, and to perform their obligations
hereunder, and that the consent of no other parties is needed to fully effectuate this Agreement.
ATTACHMENTS
32. This is a list of attachments and is included with this agreement and incorporated herein,
as appropriate:
l . Attachment A: Chapter 381 Resolutions of the County;
2. Attachment B: Form Budget of Expenditures and Description of Intended Uses;
3. Attachment C: CRF Guidelines, Regulations (including statute, FAQs, and
Guidance).
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CITY OF BANGER, TEXAS
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