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HomeMy WebLinkAbout14709RESOLUTION NO. 14709 A RESOLUTION AUTHORIZING PAYMENT OF FUNDS IN THE AMOUNT OF ONE MILLION, EIGHTY THOUSAND, FOUR HUNDRED FORTY-SIX DOLLARS ($1,080,446) FROM PROJECT NO. CI2113 - AMERICAN RESCUE PLAN ACT, FOR PURPOSES OF COMPENSATING WITH PREMIUM PAY THOSE ELIGIBLE EMPLOYEES OF THE CITY’S POLICE AND FIRE DEPARTMENTS WHO PERFORMED ESSENTIAL WORK DURING THE COVID-19 PUBLIC HEALTH EMERGENCY, AS AUTHORIZED BY SECTION 603(g)(2) OF THE AMERICAN RESCUE PLAN ACT AND INTERIM FINAL RULE 31 CFR 35.6(c) RECITALS The following recitals are incorporated in and made a part of this Resolution: WHEREAS, on March 11, 2021, President Biden signed the U.S. Senate-amended H.R. 1319 (P.L. 117-2) known as the American Rescue Plan Act (hereinafter “ARPA”); and WHEREAS, on May 10, 2021, the U.S. Treasury issued the Interim Final Rule to implement ARPA in Title 31, Part 35 of the Code of Federal Regulations (“CFR”); and WHEREAS, under the Interim Final Rule, recipients may use Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) to retroactively provide premium pay to eligible employees who performed essential work during the COVID-19 public health emergency. See CSLFRF Frequently Asked Questions No. 5.3; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO that: SECTION 1. The City Council hereby makes the following findings of fact: A. COVID Statistics As of August 18, 2021, the State of Colorado has experienced 593,562 cases of coronavirus disease with 7,292 deaths attributed to COVID-19. Pueblo County residents were hit particularly hard by the pandemic. The top 10 case counts by county are listed below, with Pueblo coming in at number 10 with 20.347 cases. However, the infection rate of the Pueblo County population is the second highest in the state at 12.1%, only .3% less than Adams County. A dire statistic for Pueblo County is the death rate among positive cases. Pueblo County has suffered the highest in the state, with 2.1% of positive cases resulting in death. Of the State of Colorado deaths, Pueblo County (which has less than 3% of the state’s population) accounted for 6% of deaths statewide. % of County Death Rate County Confirmed Positive Population COVID Rank County Among PopulationCOVID-19 CasesTesting Deaths 1 2 Cases Positive 1 El Paso 720,403 79,317 11.0% 1060 1.3% 2 Denver 727,211 78,316 10.8% 811 1.0% 3 Arapahoe 656,590 66,468 10.1% 857 1.3% 4 Adams 517,421 64,077 12.4% 858 1.3% 5 Jefferson 582,881 51,767 8.9% 847 1.6% 6 Weld 324,492 35,692 11.0% 308 0.9% 7 Douglas 351,154 32,524 9.3% 307 0.9% 8 Larimer 356,899 30,014 8.4% 321 1.1% 9 Boulder 326,196 25,503 7.8% 365 1.4% 10 Pueblo 168,424 20,347 12.1% 431 2.1% Source Data US Census Bureau QuickFacts: Colorado 1 County population data from United States Census Bureau COVID-19 data Colorado COVID-19 2 Positive COVID Case and COVID Death data from the Colorado Department of Public Health and Environment. Data as of August 18, 2021 The Pueblo Police and Fire Department personnel, on the frontlines, encountered the brunt of these statistics first-hand when providing critical public safety services to the citizens in our community on a regular basis, day in and day out, during the pandemic. B. Police and Fire Exposure Rates Of the City of Pueblo workforce, Police and Fire were impacted most heavily during the pandemic. This is not surprising given their close contact with the public during the most dangerous times of infection transmission in the community. The impacts on individuals in both the Police and Fire service have been substantial. Since the beginning of the pandemic, the Police Department has experienced approximately 120 exposures and 52 positive cases. This means that nearly 48% of the Police Department workforce had a documented positive exposure with 21% ultimately testing positive. Lost time for sworn Police Department staff is now in excess of 4.350 hours since the pandemic began The Fire Department has experienced 61 exposures and 49 positive cases. This means that 43% of the Fire Department workforce had a documented positive exposure and 34% of the workforce ultimately tested positive. The subsequent staff absences resulted in 1,656 hours of overtime. Both departments had significant outbreaks with Police experiencing three since the beginning of the pandemic and Fire experiencing six outbreaks affecting five fire stations and the fire academy. C. Financial Impacts Exposures, positive cases and outbreaks carry financial consequences for the City as well as for the individuals involved. Several of the outbreaks in the Fire Department required stations to be shuttered and entire crews were quarantined necessitating additional costs associated with sanitizing, leave costs and unanticipated overtime costs. The same impacts were felt in the Police Department with staff members unable to work due to exposure and illness or to care for ill family members, some of whom likely became exposed by their police or fire relatives. D. Self-Insured Medical Plan Impacts The City’s self-insured medical plan has incurred approximately $500,000 in claim costs directly associated with the pandemic, with $495,000 directly related to treatment and care for the City’s positive COVID cases with 8 hospital admissions. While these costs in their entirety cannot be exclusively attributed to the Police and Fire employees, given their high exposure rates and positivity, it is clear that a significant portion of these costs were related to this segment of the covered population on the City’s medical plan. E. Emergency Supplemental Leave Costs Under state and federal mandates, supplemental leave to quarantine, isolate or care for family members were in play until the public emergency health order was lifted in the spring of 2021. The value of supplemental leave granted by the City is outlined below. Year Value of Leave 2020 $ 338,927 2021 $ 16,469 Total $ 355,399 Police and Fire personnel were responsible for approximately 61% of the leave costs incurred in 2020 and 33% of the leave costs incurred in 2021. While the City did receive reimbursement for some of the emergency and supplemental leave costs to partially cover the cost of backfilling and overtime incurred due to absences, the cost of providing the leave was never fully recovered through federal funding. F. Compliance with Section 603(g)(2) of American Rescue Plan Act and Interim Final Rule 31 CFR 35.6(c) 1. $13 Per Hour Threshold Section 602(g)(3) of ARPA (made applicable to the City by Section 603(g)(6) of the statute) provides as follows: PREMIUM PAY – The term “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. See also 31 CFR 35.3. The City is in compliance with this statutory requirement. None of the premium pay authorized by this Resolution will exceed $13 per hour and the average hourly payment is substantially less than the $13 per hour threshold. 2. $25,000 Per Eligible Worker Threshold 31 CFR 35.3 provides that the payment of premium pay shall not exceed $25,000 to any single eligible worker. The City is in compliance with the Interim Final Rule. Premium pay under this Resolution does not exceed $4,200 to any eligible employee. 3. 150% of Colorado’s Annual Wage for All Occupations Threshold 31 CFR 35.6(c) addresses the scenario when premium pay would increase an eligible worker’s total wages and remuneration above 150 percent of the residing state’s annual wage for all occupations. According to the U.S. Bureau of Labor Statistics, the 150% threshold, as applied in Colorado, is as follows: Category Average Wage 150% Wage State of Colorado – All $60,840 $91,260 Occupations Under this Resolution, premium pay will be distributed as follows: Number of employees Number of employees at or Total number of under the 150% threshold over the 150% threshold employees receiving premium pay 281 55 336 ARPA and the implementing Interim Final Rule do not contain prohibitions against paying premium pay compensation to eligible workers whose salaries exceed the 150% threshold, but merely require a justification for doing so. There is ample justification for the City to also compensate the 55 employees with premium pay. 4. Justification for 55 Employees Also Receiving Premium Pay (a) Each of the 55 eligible employees had regular in-person interactions with the public and their fellow workers. (b) Each of the 55 workers endured a heightened risk when performing essential work. Statistics demonstrate that the COVID-19 pandemic was especially devastating to the City and surrounding areas of Pueblo County:  the infection rate of the Pueblo County population is the second highest in the state at 12.1% (only .3% less than Adams County);  Pueblo County suffered the highest death rate in the state, with 2.1% of positive cases resulting in death;  Pueblo County accounts for just under 3% of Colorado’s population, but 6% of the state’s COVID-19 deaths occurred here. The Pueblo Police and Fire Department personnel, on the frontline, faced the brunt of the pandemic first-hand when providing critical public safety services:  48% of the Police Department workforce had a documented positive exposure with 21% ultimately testing positive;  35% of the Fire Department workforce had a documented positive exposure and 24% of the workforce ultimately tested positive. (c) When measured against Colorado position specific occupational wage data (as opposed to Colorado “all occupations” wage data) none of the 55 employees exceeds the 150% threshold. Category of United City of Pueblo Average 150% Number of States Bureau of Labor Categories Wage Wage Pueblo Statistics (all of (state-Employees Colorado) wide) Above Threshold (Police and Fire) First Line Supervisors of Police Sergeants $109,880 $164,820 0 Detectives and Police Officers (Occ Code 33- 1012) Police and Sheriff’s Police $78,230 $117,345 0 Patrol Officers (Occ Corporals/Police Code 33-3051) Patrol Officers First Line Supervisors of Assistant Fire Chiefs $93,070 $139,605 0 Firefighting ad and Fire Captains Prevention Workers (Occ Code 33-1021) Fire Inspectors and Fire Inspectors $77,920 $116,880 0 Investigators (Occ Code 33-2021) Firefighters (Occ Code Firefighters, Fire $63,160 $94,740 0 33-2011) Engineers, Emergency Medical Officers SECTION 3. Funds in the amount of One Million Eighty Thousand Four Hundred Forty-Six Dollars ($1,080,446) are hereby authorized for payment from Project No. CI2113 – American Rescue Plan Act, for purposes of retroactively compensating eligible employees of the City’s Police and Fire Departments with premium pay, to be paid pursuant to the City’s payroll policies and procedures. SECTION 4. The officers and staff of the City are authorized to perform any and all acts consistent with this Resolution to implement the policies and procedures described herein. SECTION 5. This Resolution shall become effective immediately upon final passage. INTRODUCED September 13, 2021 BY: Robert Schilling MEMBER OF CITY COUNCIL APPROVED: PRESIDENT OF CITY COUNCIL ATTESTED BY: CITY CLERK City Clerk’s Office Item # Q-2 Background Paper for Proposed Resolution COUNCIL MEETING DATE: September 13, 2021 TO: President Lawrence W. Atencio and Members of City Council VIA: Marisa Stoller, City Clerk FROM: Mayor Nicholas A. Gradisar SUBJECT: A RESOLUTION AUTHORIZING PAYMENT OF FUNDS IN THE AMOUNT OF ONE MILLION, EIGHTY THOUSAND, FOUR HUNDRED FORTY-SIX DOLLARS ($1,080,446) FROM PROJECT NO. CI2113 - AMERICAN RESCUE PLAN ACT, FOR PURPOSES OF COMPENSATING WITH PREMIUM PAY THOSE ELIGIBLE EMPLOYEES OF THE CITY’S POLICE AND FIRE DEPARTMENTS WHO PERFORMED ESSENTIAL WORK DURING THE COVID-19 PUBLIC HEALTH EMERGENCY, AS AUTHORIZED BY SECTION 603(g)(2) OF THE AMERICAN RESCUE PLAN ACT AND INTERIM FINAL RULE 31 CFR 35.6(c) SUMMARY: This Resolution authorizes the payment of “premium pay” to eligible employees of the City’s Police and Fire Departments who performed “essential work” during the COVID-19 public health emergency. PREVIOUS COUNCIL ACTION: By Ordinance No. 9931, approved on May 17, 2021, the City Council established Project No. CI2113 and budgeted and appropriated up to $36.7 million in funds which were expected to be distributed to the City from the American Recovery Plan Act (“ARPA”) for covered costs and eligible expenses to be incurred during the period which began on March 11, 2021 (the date ARPA became law) until December 31, 2024 (to be expended by December 31, 2026). BACKGROUND On March 11, 2021, President Biden signed the U.S. Senate-amended H.R. 1319 (P.L. 117-2) now known as ARPA and on May 10, 2021, the U.S. Treasury issued the Interim Final Rule to implement ARPA in Title 31, Part 35 of the Code of Federal Regulations (“CFR”). Under the Interim Final Rule, recipients of may use Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) to retroactively provide premium pay to eligible employees who performed essential work during the COVID-19 public health emergency. See CSLFRF Frequently Asked Questions No. 5.3. Statistics demonstrate that the COVID-19 pandemic was especially devastating to the City and surrounding areas of Pueblo County:  the infection rate of the Pueblo County population is the second highest in the state at 12.1% (only .3% less than Adams County);  Pueblo County suffered the highest death rate in the state, with 2.1% of positive cases resulting in death;  Pueblo County accounts for just under 3% of Colorado’s population, but 6% of the state’s COVID-19 deaths occurred here. The Pueblo Police and Fire Department personnel, on the frontlines, faced the brunt of the pandemic first-hand when providing critical public safety services:  48% of the Police Department workforce had a documented positive exposure with 21% ultimately testing positive;  35% of the Fire Department workforce had a documented positive exposure and 24% of the workforce ultimately tested positive. FINANCIAL IMPLICATIONS Under the attached Resolution, premium pay compensation will be paid as follows: BOARD/COMMISSION RECOMMENDATION: Not applicable to this Resolution. STAKEHOLDER PROCESS: Not applicable to this Resolution. ALTERNATIVES: City Council could decide not to use ARPA funds to retroactively compensate eligible employees of the City’s Police and Fire Departments with premium pay. RECOMMENDATION Approval of the Resolution Attachments: Proposed Resolution