HomeMy WebLinkAboutReso 2021-162 RESOLUTION NO. 2021-162
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA WAIVING COMPETITIVE BIDDING
REQUIREMENTS PURSUANT TO CHULA VISTA
MUNICIPAL CODE SECTION 2.56.070(B)(3) AND
AUTHORIZING THE CITY MANAGER OR DESIGNEE TO
ENTER INTO AN AGREEMENT WITH SBCS CORPORATION
TO PROVIDE AN EMERGENCY RENTAL AND UTILITY
ASSISTANCE PROGRAM FUNDED BY STATE AND
FEDERAL AMERICAN RESCUE PLAN ACT OF 2021
ALLOCATIONS
WHEREAS, in January 2020, as a result of the COVID-19 virus, the World Health
Organization ("WHO") declared a Public Health Emergency of International Concern and the
United States Secretary of Health and Human Services declared a Public Health Emergency; and
WHEREAS, various states of emergency were declared by the United States (March 13,
2020), the State of California(March 4, 2020), the County of San Diego (February 19, 2020) and
the City of Chula Vista (March 17, 2020 pursuant to City Council Resolution No. 2020-065)
because of the threat to public safety (to persons and property including both physical and
economic harm) as result of the COVID-19 virus; and
WHEREAS,the Centers for Disease Control and Prevention,the California Department of
Public Health, and the San Diego County Department of Public Health have all issued
recommendations and orders, including,but not limited to, social distancing, staying home if sick,
canceling or postponing large group events, working from home, and other precautions to protect
public health and prevent transmission of this communicable virus that continues to the present;
and
WHEREAS,the economic impact and financial hardship faced by low-income households
as a result of COVID-19 pandemic has affected their ability to pay for housing and basic needs,
placing them at risk of homelessness during this period where it is critical to self-quarantine, self-
isolate, or otherwise remain in their homes to reduce the transmission of COVID-19; and
WHEREAS, on March 11, 2021, the President of the United States signed into law the
American Rescue Plan Act of 2021 (the "Act", more commonly known as "ABPA"), which
authorized $21.6M in emergency rental relief; and
WHEREAS, Section 3201 of ARPA established the federal Emergency Rental Assistance
Program ("ERA2") and authorized the direct allocation of emergency rental assistance funds to
units of local government; and
Resolution No. 2021-162
Page No. 2
WHEREAS, ERA2 funds are intended to assist low-income households that have
experienced a financial hardship due to the COVID-19 pandemic, are unable to pay for rent and
utilities, and are at risk of experiencing homelessness or housing stability; and
WHEREAS, ERA2 sets aside an additional $2.5 billion for eligible grantees with a high
need for ERA2 assistance, based on the number of very low-income renter households paying
more than 50 percent of income on rent or living in substandard or overcrowded conditions,rental
market costs, and change in employment since February 2020; and
WHEREAS, the City of Chula Vista received a direct ERA2 allocation from the U.S.
Treasury Department ("US Treasury") in the amount of $9,931,566.40 ($6,457,515.40 initial
allocation and a high need allocation of 3,474,051.00); and
WHEREAS, ARPA provided $2.2 billion to the State of California from the US Treasury;
and
WHEREAS, on June 28, 2021, the State of California passed Assembly Bill ("AB") 832
that approved the State Rental Assistance Program-2 ("SRA2") that allows Cities and County's
with populations over 200,000 to opt into one of three program models using its direct allocation
form the US Treasury; and
WHEREAS, by accepting SRA2 as a block grant (Option B) in the amount of
$7,600,103.26,the City shall take on the responsibilities included in AB 832 and Health and Safety
Code Sections 50897.2.1 and 50897.3.1; and
WHEREAS, the City will contract with a Subrecipient, SBCS Corporation, to assist with
the expenditure of a portion of the U.S. Treasury Department Emergency Rental Assistance
Funding and State of California Rental Assistance Program (ERA2 and SRA2) funds will be
allocated to assist low-income residents affected by the COVID-19 Pandemic, as follows:
Agency Program Funding Source Total Allocation
SBCS Corporation Emergency Rental U.S Treasury $9,708,106.16
Assistance Program ERA2
SBCS Corporation Emergency Rental State HCD SRA2 $7,542,234.45
Assistance Program
Total $17,250,340.61
WHEREAS, in order for an outside agency to receive and operate a grant funded activity,
they must formally enter into a Subrecipient agreement with the City of Chula Vista in order to
formalize and specify the requirements and conditions under which the U.S. Treasury Direct
Allocation and State Block Grant Allocation funds are being provided to the outside agency; and
Resolution No. 2021-162
Page 3
(41W WHEREAS, staff intends to utilize City's standard template, the City of Chula Vista
Contractor/Service Provider Services Agreement, to contract with the outside service providers;
and
WHEREAS, City Council finds: (1) that the use of the competitive bidding process set
forth in Chula Vista Municipal Code (CVMC) Section 2.56.070 is impractical and that the City's
best interests would be better served by waiving said bidding requirements, particularly given the
strict time lines required by the state and federal governments to encumber and expend said funds
and the urgent need for said funds by the citizens of Chula Vista (2) and that SBCS is uniquely
qualified to meet the state and federal grant obligations, including, but not limited to, that SBCS
has a long history of partnering with the City to administer rental assistance programs and
complying with attendant state and federal regulations.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
(1) that it, based upon the above findings, that it hereby waives the competitive bid requirements
set forth in Chula Vista Municipal Code section 2.56.070 and SBCS is awarded the contract on a
"sole source"basis under the authority of Chula Vista Municipal Code section 2.56.070(B)(3) and
(2) that it authorizes the City Manager to enter into a City of Chula Vista Contractor/Service
Provider Services Agreement between City and SBCS Corporation in accordance with the general
terms and conditions as outlined in the agenda statement and attendant State and Federal
Requirements, in a not to exceed an aggregate amount of$17,250,340.61 on a form approved by
the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk.
[SIGNATURES ON THE FOLLOWING PAGE]
Resolution No. 2021-162
Page No. 4
Presented by Approved as to form by
Tiffany llen Gen R. G ogins
Director of Development Services CityAlto6iey
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 24th day of August 2021 by the following vote:
AYES: Councilmembers: Cardenas, Galvez,Padilla,and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: McCann
Mary C i las Salas, Mayor
ATTEST:
Kerry K. I i elow, MAC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2021-162 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 24th day of August 2021.
Executed this 24th day of August 2021.
Kerry K. A4elow, MMC, City Clerk