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HomeMy WebLinkAboutReso 2022-164 DocuSign Envelope ID: E5925959-9574-4277-8AB4-DD9F97F4FB16 RESOLUTION NO. 2022-164 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT WITH THE SAN DIEGO FOUNDATION FOR ADMINISTRATION OF THE CHULA VISTA AMERICAN RESCUE PLAN ACT DIRECT GRANTS FOR A SMALL BUSINESSES AND NON-PROFIT RELIEF GRANT PROGRAM; AND APPROPRIATING FUNDS THEREFOR WHEREAS, health and governmental authorities around the globe are responding to a large-scale pandemic due to the outbreak of a respiratory disease caused by a novel coronavirus named"SARS-CoV-2," and the disease it causes has been named"coronavirus disease 2019", abbreviated"COVID-19"; and WHEREAS, states and local governments across the United States, including the State of California, issued stay-at-home orders to prevent the spread of the highly contagious and deadly COVID-19,resulting in massive and largely unprecedented disruptions in the economy, including record levels of unemployment and loss of compensable work hours or wages by numerous Chula Vista residents, and sharply limiting the ability of businesses to provide, and customers to purchase, goods and services; and WHEREAS, the City has determined it is in the public interest to provide economic support that addresses the continued and serious negative impacts of the COVID-19 emergency on the local economy, including promotion of a stable business market and support for nonprofit entities and their employees once the COVID-19 emergency is abated; and WHEREAS,the City recognizes that Chula Vista County Data on positive COVID-19 cases, unemployment statistics, and other economic-based metrics demonstrate that there are economically disadvantaged and struggling small businesses and charitable nonprofits that have been disproportionately impacted by the pandemic; and WHEREAS, the City has determined it is in the public interest to identify small businesses, charitable entities and nonprofit organizations which are most vulnerable to the impacts of COVID-19, including nonprofits who have lost donor support (collectively, "at- risk nonprofits"), to provide at-risk nonprofits with economic support to address the continued and serious negative impacts of the COVID-19 emergency on the local economy, and to promote a stable charitable environment benefitting the community to which community members and their employees can return once the COVID-19 emergency is abated; and WHEREAS,the U.S. Congress provided for various forms of relief for the COVID-19 pandemic through enacting the American Rescue Plan Act of 2021, Public Law No: 117-2 (03/11/2021) ("ARPA"), including an allocation of Coronavirus State and Local Fiscal Recovery Funds to Metropolitan Cities ("AR-PA Funds"); and WHEREAS, the City has received an allocation from the ARPA Funds; and DocuSign Envelope ID: E5925959-9574-4277-8AB4-DD9F97F4FB16 Resolution No. 2022-164 Page No. 2 WHEREAS, ARPA requires that the City only use the ARPA Funds to cover costs incurred by the City by December 31, 2024 and for uses that include responding to the public health emergency with respect to the COVID19 or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality; and WHEREAS, the City has determined that expenditures in support of providing financial assistance to small businesses and nonprofits are vital to address the public health emergency with respect to COVID-19 and that such expenditures are eligible expenses under the ARPA; and WHEREAS, The San Diego Foundation ("Program Administrator") is a Section 501(c)(3)tax-exempt public charity that is organized and operated under the mission to inspire enduring philanthropy and enable community solutions to improve the quality of life in our region and a vision for just, equitable, and resilient communities under strategic priorities that include advancing racial and social justice and fostering equity of opportunity; and WHEREAS, on August 24, 2021, the Chula Vista City Council adopted a Resolution allocating $2,600,000 of ARPA Funds to provide support and resources in the form of direct grants to small businesses and nonprofits through an agreement with Program Administrator ($2.1M to small businesses and $500,000 to nonprofits); and WHEREAS,the Program Administrator has agreed to contribute a separate$1,000,000 to be included in the program for nonprofit awards using the same methodology and criteria for awards but requiring separate accounting; and WHEREAS, the City wishes, and finds it to be in the public's best interest, to utilize the special services of The San Diego Foundation to manage the disbursement of the ARPA Funds consistent with the purposes and requirements thereof, and WHEREAS, Program Administrator has an existing administrative framework; specialized financial and accounting experience; and, demonstrated ability to expeditiously provide the City with the specialized services the City does not possess, and has issued grants on behalf of many entities, people, and organizations since their respective inceptions. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it 1. Approves to the City of Chula Vista American Rescue Plan Act of 2021 Direct Grants for Small Businesses and Nonprofits Relief Fund Agreement with The San Diego Foundation, in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the City Manager to execute same. 2. Appropriates $180,000 for program administration from ARPA funds available in the revenue recovery category and $70,000 for third party costs funded by excess Property Tax Revenues into the Economic Development Department Administration Fund as identified by the table below. DocuSign Envelope ID: E5925959-9574-4277-8AB4-DD9F97F4FB16 Resolution No. 2022-164 Page No. 3 General Fund Budget Adjustments DEPARTMENT SUPPLIES & TOTAL TOTAL SERVICES EXPENSE REVENUE NET COST GENERAL FUND Non-Departmental - (70,000) (70,000) Economic Development 250,000 250,000 (180,000) 70,000 TOTAL GENERAL FUND $ 250,000 $ 250,000 $ (250,000) $ - Other Funds Adjustments DEPARTMENT TRANSFERS TOTAL TOTAL OUT EXPENSE REVENUE NET COST OTHER FUNDS American Rescue Plan Act 2021 180,000 180,000 1 (180,000)1 - TOTAL OTHER FUNDS 1 $ 180,000 $ 180,000 1 $ (180,000) $ - [SIGNATURES ON THE FOLLOWING PAGE] DocuSign Envelope ID: E5925959-9574-4277-8AB4-DD9F97F4FB16 Resolution No. 2022-164 Page No. 4 Presented by Approved as to form by DocuSigned by: DocuSigned by: c CYa&tff 2FC559998BD74C4... CF40650850444BF... Eric C. Crockett Glen R. Googins Deputy City Manager/Director of Economic City Attorney Development PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 19th day of July 2022 by the following vote: AYES: Councilmembers: Cardenas,Galvez,McCann,Padilla, and Casillas Salas NAYS: Councilmembers: None ABSENT: Councilmembers: None DocuSigned by: p 11F.'JR Rn7rnq RR.d FF Mary Casillas Salas, Mayor ATTEST: EDocuSigned by: 1:74D104EAF342E ... Kerry K. Bigelow, MMC, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) T, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2022-164 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 19th day of July 2022. Executed this 19th day of July 2022. DocuSigned by: EI, 30746104EAF342E... Kerry K. Bigelow, MMC, City Clerk