The Morning Journal (Lorain, OH)
Locals question $7.2M relief
Mayor, officials explain CARES Act processes, selections
Lorain elected officials have overseen distribution of more than $7.2 million in federal money to help communities and businesses brace against the economic downturn of the novel coronavirus pandemic.
But it’s clear Lorain City Council members and residents had questions about how to apply for financial help and how the city administration picked the recipients.
The money this year came through the federal Coronavirus Aid Relief and Economic Security Act, abbreviated the CARES Act.
It was part of the federal government’s response against the economic effects due to business shutdowns and stay-at-home orders to slow the spread of COVID-19.
Mayor Jack Bradley and other officials discussed the process.
That led to the city administration and council approving three rounds of CARES Act spending on Sept. 8, Oct. 5 and Oct. 19.
Who got involved?
In the first two rounds of funding, Bradley considered letters from applicants explaining their needs.
But Council is the steward of the business of the city, said City Council President Joel Arredondo, so he wanted some Council involvement in the process.
Arredondo became part of the selection committee with Councilman-at-Large Mitch Fallis, chairman of Council’s Finance and Claims Committee and a certified public accountant.
They joined the mayor, City Auditor Karen Shawver and Building, Housing and Planning Director Max Upton, Bradley and Arredondo said.
Federal criteria
The committee’s guiding document was the Sept. 2 update to the U.S. Department of Treasury’s “Coronavirus Relief Fund Guidance for State, Territorial, Local, and Tribal Governments” of April 22, Bradley said.
The rules came in the form of a 13-page publication in “frequently asked questions” format.
There were 68 questions about the COVID-19 relief, starting with: “Are governments required to submit proposed expenditures to Treasury for approval?”
The answer was “No,” with a sentence of explanation.
Administration and applicants also were under time constraints, the mayor said.
The money was to be encumbered by Nov. 30 and spent by the end of the year.
“We made three distributions, so it wasn’t like the word wasn’t out there.” — Lorain Mayor Jack Bradley
Funding awards
In the second and third rounds, much of the money reimbursed police and firefighters salaries, which was permitted by the federal guidelines, Bradley said.
Among businesses, churches and nonprofits, generally it appeared many applicants submitted detailed financial information about losses or expenses caused by the novel coronavirus pandemic, according to copies supplied by the mayor’s office.
For many, the losses and expenses quickly added up to thousands of dollars.
Based on the applications, not every business in Lorain applied for the CARES Act assistance.
Some applicants did not ask for a specific amount, Arredondo said.
The committee was not a group of mind-readers to know what they needed, he said.
Not every applicant received the amount requested and a lot of them received substantially less than they asked for, Bradley said.
Some applicants received no coronavirus relief money, but were referred to the Building, Housing and Planning Department for possible further assistance.
Council approval
Council approved the CARES Act expenditures, but Councilwoman- atLarge Mary Springowski said Council members did not have exact details on the local applicants.
“We weren’t told what the criteria were and what were the amounts based on,” Springowski said.
She began inquiring about the applicants in emails to Bradley before Council’s Oct. 19 vote.
Council also did not have much choice, she said, because some of the assistance went to police and programs for young people.
Also, Council members could not say no to those causes because they needed information about other things, Springowski said.
Public relations
Bradley and Springowski split over how much the public knew what was happening or how to apply for aid.
“We made three distributions, so it wasn’t like the word wasn’t out there,” Bradley said.
Council votes were in public meetings and some members encouraged their constituents to apply, he said “We did not advertise it well,” Springowski said.
She added she did not care what anybody said, but a lot of Lorainites did not know the funding was available until after the fact.
Conflicts of interest?
The city officials generally agreed applicants should not be automatically disqualified from the COVID-19 aid because of affiliations with the city’s elected leaders.
Arredondo said he recused himself from deliberations on an application from Lorain fashion designer Jevon Terance, who requested $15,000 and received $5,000.
Arredondo’s daughter works as Terance’s business manager.
Bradley said he did not weigh in on the application from Lorain Rock Town Music Academy, the studio operated by his daughter.
Rock Town Music Academy requested $2,500 and received $2,000.
Springowski said that money for personal protective equipment for children was a necessary expense that she supported.