BE IT RESOLVED, that the Hennepin County Board of Commissioners hereby allocates up to $15,000,000 of its federal funding from the Coronavirus Relief Fund available under section 601(a) of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), for eligible COVID-19 related expenses incurred through April 30, 2021, and that the Controller be authorized to accept, disburse, and transfer funds as directed; and

BE IT FURTHER RESOLVED, that the County Administrator be authorized to determine the amount of Hennepin Healthcare Systems, Inc.’s COVID-19 related expenses which are eligible for reimbursement pursuant to the criteria and guidance for the CARES Act Coronavirus Relief Fund, in order to give effect to the above resolving clause.

Section 601(a) of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), established the Coronavirus Relief Fund with an appropriation of $150 billion. Under the CARES Act, the Coronavirus Relief Fund is to be used to make payments for specified uses to States and certain local governments; the District of Columbia and U.S. Territories; and Tribal governments. Hennepin County received a direct payment out of the Coronavirus Relief Fund from the U.S. Treasury in April of 2020.

The CARES Act, as amended in December 2020, provides that money from the Coronavirus Relief Fund may only be used to cover costs that:

1. are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID–19);
2. were not accounted for in the budget most recently approved as of March 27, 2020 (the date of enactment of the CARES Act) for the State or government; and
3. were incurred during the period that begins on March 1, 2020 and ends on December 31, 2021.

Under the U.S. Treasury guidance relating to the CARES Act Coronavirus Relief Fund, allowable expenditures include but are not limited to:

 Medical expenses such as:

•  COVID-19-related expenses of public hospitals, clinics, and similar facilities.
• Expenses of establishing temporary public medical facilities and other measures to increase COVID-19 treatment capacity, including related construction costs.
• Costs of providing COVID-19 testing, including serological testing.
• Emergency medical response expenses, including emergency medical transportation, related to COVID-19.
• Expenses for establishing and operating public telemedicine capabilities for COVID-19- related treatment.

Public health expenses such as:

• Expenses for acquisition and distribution of medical and protective supplies, including sanitizing products and personal protective equipment, for medical personnel.
• Expenses for disinfection of public areas and other facilities, in response to the COVID-19 public health emergency.

Payroll expenses for health care employees and other public employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency, including costs of personnel that have been diverted to substantially different functions due to the COVID-19 public health emergency.

 Any other COVID-19-related expenses reasonably necessary to the function of government that satisfy the Fund’s eligibility criteria

HHS has incurred significant COVID-19 related expenditures since the beginning of the pandemic, including a number of expenditures that qualify under the CARES Act Coronavirus Relief Fund criteria and guidance outlined above. HHS will provide the County with detailed reports regarding its expenses that are eligible for reimbursement under the CARES Act.

Current Request: The current request is to provide federal CARES Act funding in the amount of $15 million to Hennepin Healthcare Systems, Inc., for eligible COVID-19 related expenses, and to delegate authority to the County Administrator to determine which expenses are eligible.