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Home My WebLink About10839-22 American Rescue Plan Covid 19 Premium Pay OrdinanceORDINANCE No. Passed by the Common Council of the City of South Bend, Indiana January 24, Attest: 4az Dawn M. Jones Attest: ° 20 22 Presented by me to the Mayor of the City of South Bend, Indiana January c2!5"�, 20 22 Dawn M. Jones Approved and signed by me i IAX City Clerk President of Common Council 20 Z2 City Clerk Mayor 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 This ordinance is in the best interest of the citizens of South Bend and in grateful acknowledgement of essential work performed by the City's public safety, solid waste, and other City employees during the COVID 19 health pandemic. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South Bend, Indiana as follows: SECTION I. The recitals set forth in the Statement of Purpose and Intent of this ordinance are true and accurate and are incorporated herein by reference. SECTION II. Consistent with the most recent authoritative guidance issued by the United States Department of the Treasury or other applicable federal agency, the Administration and Finance Department shall make payments in the following manner: 1. The City of South Bend shall issue one-time premium pay up to the Maximum Amount (as defined below) for each eligible employee, subject to the following conditions: a. To be eligible for premium pay, an employee must (i) have been employed by the City at some time during the 15 -month period from March 1, 2020, through May 31, 2021 (the "Qualification Period"), and (ii) have been employed by the City on December 31, 2021, unless he or she died or retired, as recognized by the Public Employees' Retirement System, after October 1, 2021; and b. The amount of premium pay to each eligible employee will be determined by the ratio of the number of whole or partial months the employee worked for the City during the Qualification Period to the total number of months in the Qualification Period, multiplied by the Maximum Amount applicable to that employee. 2. "Maximum Amount" means: a. $2,500, for each sworn officer of the Fraternal Order of Police Lodge 36; b. $2,500, for each member of the South Bend Firefighters Association Local No. 362 of the International Association of Firefighters AFL-CIO; c. $2,000, for each member of Teamsters Local Union No. 364 affiliated with the International Brotherhood of Teamsters of America; or d. $2,000, for each of certain non -bargaining officers and employees of the City of South Bend who performed essential work as defined by the ARP Act and whose services were designated by the Mayor as having been critical to protect the health and well-being of the citizens of South Bend in response to the COVID-19 public health emergency. SECTION III. The sum of One Million Nine Hundred Ten Thousand Dollars ($1,910,000) is appropriated from and set aside within the City's American Rescue Plan Fund (#263) for the purpose of making the premium pay payments described in this ordinance. SECTION IV. This ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. Page 2 of 3 Sharon L. McBride, President South Bend Common Council Att t: Dawn M. Jones, City Cldrk Presented by me to the Mayor of the City of South Bend, Indiana on the day of 2022, at /0.'00 ' o'clock m. 0) kzl�� /11� Dawn M. Jones, CitvJerk Approved and signed by me on the o'clock I. M. Z6 day of I--, AAI... James Mueller, Mayor, City of South Bend, Indiana Page 3 of 3 2022, at 120ON COUNTY -CITY BUILDING `p4THl��p PHONE 574.235.9216 227 W. JEFFERSON BLVD.'' c, FAX 574.235.9928 SOUTH BEND, INDIANA 46601-1830 7 •P .Ci.,. CITY OF SOUTH BEND, IN JAMES MUELLER, MAYOR DEPARTMENT OF ADMINISTRATION AND FINANCE January 24, 2022' Ms. Sharon McBride JAN 2 4 7r 2.2 President, South Bend Common Council 4th Floor, County -City Building South Bend, IN 46601 RE: Substitute American Rescue Plan - COVID Premium Pay Ordinance Dear President McBride: CITY CLLr;1K, SGv CJD, IN The attached substitute bill makes two changes to the originally filed bill, which appropriates a portion of the funding received by the City and designates that funding for payment of COVID premium pay to essential employees. • First, the substitute bill lowers the amount of the appropriation request from $2.5 million to $1.91 million. This reduction is the result of the finalization of the list of designated non -bargaining employees who are eligible to receive the premium pay. This list of non -bargaining employees was not finalized at the time of original filing, so the administration deliberately estimated higher than the anticipated amount. Second, the substitute bill changes the requirement that the individual receiving the premium pay be employed by the City on the date of the issuance of the payment. This substitute bill revises this to instead require that the individual be employed by the City on December 31, 2021. This language was updated to more closely reflect the verbal agreement reached with the Teamster Union during negotiations. No other requirements for receiving payment of the premium pay were changed, and the bill still provides for the payment to all members of the Fraternal Order of Police Lodge 36, the South Bend Firefighters Association Local No. 362, and members of Teamsters Local Union No. 364, plus certain non -bargaining employees who are eligible to receive the premium pay. I will present this bill to the Common Council at the appropriate committee and council meetings. It is requested that this bill be filed for 2nd reading, public hearing and 3rd reading scheduled for January 24, 2022. If you have any further questions or need additional information, please don't hesitate to let me know. Sincerely, Daniel T. Parker City Controller a