Andrew M. Thompson, CGFO

Director, Financial Services

Issue Statement: Broward County has received $340.7 million in direct funding from the U.S. Department of Treasury under the Coronavirus Aid, Relief, and Economic Security ("CARES") Act.  On August 25, 2020, Broward County approved a funding plan for the distribution of up to 30% of these funds ($102.3 million) to Broward County's municipalities and provided the Broward County Administrator the authority to develop a funding agreement consistent with the funding plan.  Oakland Park's City Commission adopted a resolution on September 16, 2020 authorizing the execution of the funding agreement once finalized by the County.  At time of the item's preparation, the City has not received the final version of the funding agreement, but has been provided an estimate that it will be eligible for reimbursements of up to approximately $585,000 for small business assistance programming. 

Due to the technical complexities of developing and administering the assistance program, as well as, the expedited time frame for distribution of the funding, an external administration of the program under City oversight is recommended.  Staff worked with the R. Miller Consulting Group (RMCG) to develop a proposal for managing the program that comports with CARES Act guidelines. RMCG is under contract with the City.  The City will be responsible for providing payments to successful applicants, which will be reimbursable through the County's CARES Act funding agreement.  All successful applications will be reviewed by the City's Financial Services Department.  Commission approval is needed for both the RMCG proposal and to establish the authority to provide payment to successful applicants.  

Recommendation:  It is recommended that the City Commission adopt a resolution that 1) approves the CARES Act Small Business Assistance Program administration proposal from R. Miller Consulting Group and the rates contained therein, 2) approves the proposed budget amendment, and 3) grants the City Manager the authority to operate the Small Business Assistance Programming, including the authority to make payments to qualified, approved applicants.

The City's Small Business Assistance Program is highly time-sensitive; all applications must be approved and paid by November 30 in order to meet the County's December 10th deadline for the City's submittal of final CARES Act costs for reimbursement.  Due to the compressed timeline, are recommending the use of an external entity to administer the program.

As shown in the attached proposal letter, RMCG would design, implement, and administer Oakland Park's CARES funded Small Business Assistance Grant program. The proposal is divided into three phases:

• Phase 1 - Grant Program Development: This phase would include creation program guidelines, controls, and development of an online intake system for applications, outreach coordination, and monthly reporting development in accordance with City/County/Federal requirements ($11,433).
• Phase 2 - Grant Program Implementation: Intake of applications, review of applications, scoring, coordination with Finance Department for approved payments ($425.37 per grant application received).
• Phase 3 - Grant Closeout: Complete internal audit of all transaction, prepare financial report for City and Broward County, prepare closeout presentation to detail the results of the program ($20,647).

An overview of the program is attached for reference.  Final approval of the program from Broward County will be required.

The estimated cost for administering the program is $75,468, but the exact amount will vary depending on the volume of completed applications reviewed.  Administrative costs as percentage of the program would be approximately 13%, which is well-below the federal Housing and Urban Development guidelines for administrative expenses, which caps such at 20% of program costs.

The estimated cost of the services to be provided is $75,468.  The final cost will be dependent on the level of activity in Phase 2.  Administrative costs related to the CARES Act are eligible for reimbursement through the County.  

The City will also incur separate costs for marketing outreach to local businesses and licensing fees for technology utilized in the program.  These costs are also anticipated to be reimbursable through the CARES Act.  

The proposed budget amendment in Exhibit A recognizes future reimbursement to balance the proposed expenditures.

The proposed expenditure is as follows: