10839-22 American Rescue Plan Covid 19 Premium Pay Ordinance

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SUBSTITUTE BILL NO. 01-22 ORDINANCE NO. 10839-22 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING ONE MILLION NINE HUNDRED TEN THOUSAND DOLLARS ($1,910,000) FROM SOUTH BEND'S AMERICAN RESCUE PLAN (ARP) FUND (#263) FOR PREMIUM PAY FOR ELIGIBLE EMPLOYEES PERFORMING ESSENTIAL WORK, PURSUANT TO FEDERAL GUIDELINES UNDER THE AMERICAN RESCUE PLAN ACT STATEMENT OF PURPOSE AND INTENT The American Rescue Plan Act of 2021 ("ARP Act") was established on March 11, 2021, to provide financial assistance to entities and industries affected by the COVID-19 pandemic (42 U.S.C. §§ 602 and 603). The U.S. Department of Treasury issued an Interim Final Rule (31 C.F.R. Part 35, Subpart A) effective May 21, 2021, governing use of such funds by local governments. Pursuant to Section 9901 of the ARP Act, funds were to be distributed to state and local governments to compensate for the adverse effects of the COVID-19 pandemic. Under the Interim Final Rule, an approved use of the ARP Act funds by local government is the payment of premium pay to eligible employees of the local government who performed essential work in mitigating or responding to the COVID-19 public health emergency. Under the Interim Final Rule, "[e]ssential work means work that: (1) [i]s not performed while teleworking from a residence; and (2) [i]nvolves: (i) [r]egular in-person interactions with patients, the public, or coworkers of the individual that is performing the work; or (ii) [r]egular 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." (31 C.F.R. § 35.3) The Mayor of South Bend has identified the following City employees as eligible for premium pay under the ARP Act: 1) all members of the Fraternal Order of Police Lodge 36; 2) all members of the South Bend Firefighters Association Local No. 362 of the International Association of Firefighters AFL-CIO; 3) all members of Teamsters Local Union No. 364 Affiliated with the International Brotherhood of Teamsters of America; and 4) certain non -bargaining officers and employees of the City of South Bend who qualify for premium pay under the rules and regulations of the ARP Act. On June 28, 2021, the Common Council of the City of South Bend, Indiana, passed Ordinance No. 10785-21, which created the American Rescue Plan Fund (#263) for the City of South Bend. Fund #263 is to be used "for the purpose of receiving federal assistance under the ARP Act and distributing those funds in accordance with the ARP Act and all other relevant federal and state guidelines." (Section I of Ordinance No. 10785-21). In consideration of the requirements of the ARP Act and the Mayor's designation of eligible employees, this ordinance appropriates funding from Fund #263 for the purpose of making one-time payments of premium pay to employees of the City of South Bend who performed essential work by providing critical services to protect the safety and welfare of South Bend's citizens or who helped maintain continuity of operation of essential critical infrastructure during and after the shut -down of the City in 2020 due to the COVID-19 pandemic. These employees faced heightened risk to their own health and safety in the performance of essential services and are qualified by federal guidelines to receive premium pay under the eligibility standards of the ARP Act. Pagel of 3