HomeMy WebLinkAboutReso 2022-008RESOLUTION NO. 2022-008
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 AMENDED CONTRACTOR/SERVICE
PROVIDER SERVICES AGREEMENT WITH SBCS
CORPORATION TO CONTINUE 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 the 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 “ARPA”), 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
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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 instability; 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 832 (AB-832)
that approved the State’s Emergency Rental Assistance Program (SERA2) that allows Cities and
County’s with populations over 200,000 to opt into one of three program models using its direct
allocation from the US Treasury; and
WHEREAS, by accepting SERA2 as a block grant (option c) in the amount of
$7,600,103.26 and any supplemental funding, 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 Emergency Rental Assistance Program (ERA2 and SERA2) funds
will be allocated to assist low-income residents affected by the COVID-19 Pandemic, as follows:
Agency Program Funding Source Initial Allocations Supplemental
Funding*
SBCS Corporation Emergency Rental
Assistance Program
U.S Treasury
ERAP2
$9,708,106.16 $5,000,000
SBCS Corporation Emergency Rental
Assistance Program
State HCD ERA2 $7,542,234.45 $2,000,000
Total $17,250,340.61 $7,000,000
*subject to additional funding from HCD or the Treasury
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
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WHEREAS, staff intends to utilize the City’s standard template, the City of Chula Vista
Contractor/Service Provider Services Agreement and amendment, 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 uniqu ely
qualified to meet the state and federal grant obligations, including, but not limited to, SBCS 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, 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 the 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 aggregate amount of $30,000,000, 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]
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Presented by Approved as to form by
Tiffany Allen Glen R. Googins
Director of Development Services City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 11th day of January 2022 by the following vote:
AYES: Councilmembers: Cardenas, Galvez, Padilla and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: McCann
Mary Casillas Salas, Mayor
ATTEST:
Kerry K. Bigelow, MMC, 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. 2022-008 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 11th day of January 2022.
Executed this 11th day of January 2022.
Kerry K. Bigelow, MMC, City Clerk
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