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Home My WebLink AboutReso 2022-071 DocuSign Envelope ID:804F500B-4AE5-41F1-8A52-C3ADB933008D RESOLUTION NO. 2022-071 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (1) WAIVING COMPETITIVE BIDDING REQUIREMENTS PURSUANT TO CHULA VISTA MUNICIPAL CODE SECTION 2.56.070(B)(3) AND (2) 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 A TEMPORARY CASH FLOW LOAN FROM THE STATE OF CALIFORNIA'S DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT USING SUPPLEMENTAL STATE AND FEDERAL CONSOLIDATED APPROPRIATION ACT, 2021 AND/OR AMERICAN RESCUE PLAN ACT OF 2021 FUNDING ALLOCATIONS WHEREAS,on December 27,2020,the Consolidated Appropriations Act,2021 (Pub.L.No. 116-260) (the "Act") was signed into law. Section 501 of Division N of the Act established the federal Emergency Rental Assistance Program ("ERAl") and authorized the direct allocation of emergency rental assistance funds to states, units of local government, tribal communities, and territories. The ERA funds are intended to assist households that are unable to pay rent and utilities due to the COVID-19 pandemic; and WHEREAS,on March 11, 2021,the American Rescue Plan Act of 2021 (Pub.L.No. 117-2) ("ARPA") was signed into law. Section 3201 of Subtitle B of Title III of ABPA established the federal Emergency Rental Assistance Program ("ERA2"), and authorized the direct allocation of funds to states, the District of Columbia, units of local government, territories, and high-need grantees. The ERA2 funds are intended to assist low-income households that have experienced financial hardship during or 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, California Assembly Bill No. 832 (Chapter 27, Statutes of 2021) ("AB 832") provides the legal basis for the State of California's administration of its share of ERA1 and ERA2 funds (the "State Rental Assistance Program," "SRA," or "SRA Funds"). AB 832 amended Sections 50897, 50897.1, 50897.2, 50897.3, and 50897.4 of, and added Sections 50897.2.1 and 50897.3.1 to, the Health and Safety Code. Health and Safety Code section 50897.1, subdivision (a)(1) authorizes the Department of Housing and Community Development(the "Department")to administer the SRA Funds in accordance with state and federal law; and WHEREAS, California Senate Bill No. 115 (Chapter 2, Statutes of 2022) ("SB 115") authorized eligible local jurisdictions and federally recognized tribal governments to request cashflow loans from the Department for Emergency Rental Assistance Program expenditures. Such expenditures must be for complete, eligible applications by households that were received on or before March 31, 2022, including administrative costs that are consistent with the provisions of Chapter 17 (commencing with Section 50897) of Division 31 of Part 2 of the Health and Safety Code, as applicable; and DocuSign Envelope ID:804F500B-4AE5-41F1-8A52-C3ADB933008D Resolution No. 2022-071 Page No. 2 WHEREAS,in enacting SB 115,the Legislature's intent was to provide local programs with immediate cash, in the form of temporary cashflow loans, to maximize rental relief to all eligible households as the local programs await additional federal funding from either ERA or ERA2. If the anticipated federal funding is not received by June 30, 2023, and if such funds cannot be utilized for reimbursements,the Department of Finance will forgive an amount up to the amount not covered by the federal allocation; and WHEREAS, as authorized by SB 115, the Department will make such cashflow loans available pursuant to terms and conditions developed by the Department. Such terms and conditions may include, but are not limited to, reporting; a repayment schedule; interest charged at the rate earned by moneys in the Pooled Money Investment Account; and remittance mechanisms that include the withholding of future state and federal funding administered by the Department; and WHERERAS,the City of Chula Vista("Entity") is participating in the SRA under"Option B,"as that term is defined in subdivision(i) of Section 50897 of the Health and Safety Code; or is a federally recognized tribal government, consistent with the state's implementation of Chapter 17 (commencing with Section 50897) of Division 31 of Part 2 of the Health and Safety Code; and WHEREAS, Entity applied to the U.S. Department of the Treasury ("Treasury") for a reallocation of ERA1 funds (the "ERAI Reallocation") by submitting one or more appropriate requests for reallocated funds to Treasury's portal ("Reallocation Request") by January 21, 2022. Entity will apply to the Treasury for a reallocation of ERA2 funds (the"ERA2 Reallocation")once those reallocation moneys become available. The ERA1 Reallocation and the ERA2 Reallocation are also referred to herein, individually and collectively, as the"ERA Reallocation(s)"; and WHEREAS, Entity desires to request and accept a temporary cashflow loan of funds from the Department, as authorized by SB 115 (this amount, the "SRA Loan Award"), while it awaits the additional federal funding described above; and WHEREAS,Entity plans to contract with a Subrecipient to administer any ERA Reallocation in accordance with the applicable federal law(the Act and/or ARPA);the applicable Treasury interpretive guidance; and all such requirements as may be subsequently amended and applicable; and WHEREAS, Entity acknowledges that eveiy SRA Loan Award is subject to and shall be administered in accordance with the state's requirements for Round 2 of the State Rental Assistance Program, including, without limitation, the applicable requirements of AB 832; SB 115; the Department's State Rental Assistance Program Guidelines, dated September 27, 2021; and all such requirements as may be subsequently amended (collectively, the "SRA Loan Award Requirements"); and WHEREAS,Entity further acknowledges that every SRA Loan Award is subject to the terms and conditions of a Department-approved STD 213, Standard Agreement("Standard Agreement"), all other documents required or deemed necessary or appropriate UNDER STATE OR FEDERAL LAW to disburse, evidence, and secure the SRA Loan Award, and all amendments thereto (collectively, the "SRA Loan Award Documents"); and DocuSign Envelope ID:804F500B-4AE5-41F1-8A52-C3ADB933008D Resolution No. 2022-071 Page No. 3 WHEREAS, the City has contracted with Subrecipient, SBCS Corporation ("SBCS"), to assist with the expenditure with a portion of direct allocations from the Treasury and Department, as follows in Table I and II: Table I CRF-0006 Federal (ERA1)* $8,161,123.80 $8,122,708.16 CRF-0008 Federal (ERA2)** $9,931,566.40 $9,908,106.16 Table II CRF-0007 State (ERA1)* $9,662,343.90 $9,637,236.49 CRF-0010 State (ERA2)** $7,600,103.26 $7,542,234.45 CRF-0010 State (ERA2)**Supplemental Funding $2,000,000.00 $2,000,000.00 *Consolidated Appropriations Act,2021 Funding**American Rescue Plan Funding WHEREAS, the City will contract with a Subrecipient, SBCS, to assist with the expenditure of a portion of additional funding allocations from the assist low-income residents affected by the COVID-19 Pandemic, as follows in Table III: Table III CRF-0006 Federal (ERA1) Supplemental Reallocation $409 925.36 $409,925.36 Funding CRF-0006 Federal (ERA1)* Supplemental Reallocation $1,045,985.28 $1,045,985.28 Funding *Consolidated Appropriations Act,2021 funding WHEREAS, the City will also contract with a Subrecipient, SBCS, to assist with the expenditure of a portion of SRA Loan Award from HCD for an Emergency Rental Assistance that will be allocated to assist low-income residents affected by the COVID-19 Pandemic, as follows in Table IV: DocuSign Envelope ID:804F500B-4AE5-41F1-8A52-C3ADB933008D Resolution No. 2022-071 Page No. 4 Table IV SBCS ERA Program State Round 3 $14,117,440.62 *this is an up to amount and subject to HCD and/or the Treasury allocations 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 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 uniquely 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(or amendment)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,with such minor modifications as may be required or approved by the City Attorney, in a not to exceed an aggregate amount shown in Table IV above for the SRA Loan Award and amend the existing agreement to administer the Reallocated funding as shown on Table III 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] DocuSign Envelope ID:804F500B-4AE5-41F1-8A52-C3ADB933008D Resolution No. 2022-071 Page No. 5 Presented by Approved as to form by DocuSi gg°ned by: DocuSigned by: AA76F15D450845D... CF406508504446F... 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 22nd day of March 2022 by the following vote: AYES: Councilmembers: Cardenas, Galvez, Padilla, and Casillas Salas NAYS: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN Councilmembers: McCann EDocuSigned by: �0.a Imo. 062BFD7C0386456... Mary Casillas Salas, Mayor ATTEST: E 3DocuSig1ned by: c.. 3074D104EAF342E... 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. 2022-071 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 22nd day of March 2022. Executed this 22nd day of March 2022. DocuSigned by: E,� 30746104EAF342E... Kerry K. Bigelow, MMC, City Clerk