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HomeMy WebLinkAboutContract 54913 CSC No. 54913 Memorandum of Understanding between the United Way of Tarrant County and the City of Fort Worth, Economic Development Department to Administer the Preserve the Fort Grant Program I. Background The City of Fort Worth has received a direct allotment of funds through the CARES Act and desires to allocate a portion of that funding to support small businesses impacted by Covid-19. The City plans to establish and provide for the administration of a Small Business Stabilization Grant Program to promote local economic development by maintaining small business operations and retaining employment within the City,pursuant to 42 U.S.C. §5305 and the Coronavirus Aid, Relief, and Economic Security (CARES)Act. The public purpose of the Fund is to ensure continued operations of small businesses impacted by the COVID-19 Pandemic. The Fund will be administered by the City of Fort Worth Economic Development Department through a partnership with United Way of Tarrant County which will oversee the establishment of a web portal to facilitate the grant applications and will release funds to eligible applicants. II. Purpose of this Memorandum This Memorandum of Understanding (MOU) sets forth the understandings and intentions of the City and United Way with regard to their shared goal and provides a framework for formal cooperation that is aligned for both. The purpose of this MOU is to clearly delineate the roles and responsibilities of each partner. For the purposes of this MOU and all services to be provided hereunder, the parties are independent contractors and not agents or employees of the other party. Neither party shall have authority to make any statements, representations nor commitments of any kind, or to take any action which shall be binding on the other party, except as be expressly provided herein or authorized in writing. To assure that each party operates within the intent of this MOU in a manner promoting the expectation of mutual benefit, the United Way's activities relevant to this MOU are subject to review and comment by the City and vice versa. III. Program Overview The proposed Grant Program would provide up to $10.0 M in funding to be provided as grants of up to $50,000. The program will dedicate $2.5 M to minority-owned businesses and $2.5 M to businesses located within the City's established Neighborhood Empowerment Zones (NEZ) and Designated Investment Zones. The remaining $5.0 M allocation will be for city-wide support. Grants will be processed until budgeted funds are exhausted. The program provides funding for small businesses, sole proprietorships, independent contractors and self-employed persons as well as non-profit organizations serving the business community (excluding ineligible entities listed below). OFFICIAL RECORD Preserve the Fort MOU CITY SECRETARY page I of 7 FT. WORTH, TX IV. Funding Levels • Microenterprise business owners (less than 5 employees) will be eligible for a grant of$5,000 • Small businesses with between 6 -25 employees will be eligible for a grant of$7,500 • Small businesses with between 26 - 50 employees will be eligible for grants of$10,000 • Small Businesses with between 51 —250 employees will be eligible for grants of$50,000 V. Eligible Activities Funding under the grant program can be used to reimburse the costs of business interruption experienced by small businesses as a result of required closures, small businesses that close voluntarily to promote social distancing measures or small businesses that are affected by decreased customer demand as a result of the COVID-19 public health emergency. The types of eligible activities that could be covered under this program include: working capital, machinery & equipment,payroll expenses,heath care benefits, contract labor, supplier payments,rent, lease or mortgage payment(for real property used for business purposes, like storefront or warehouse, excluding personal residence),rent, lease or purchase payment for business property (e.g., delivery vehicle; food truck; kitchen equipment; technology,payment, and communications systems and equipment), utility payments for business properties, (excluding personal residence), cost of critical business operations (raw materials, marketing expenses, etc. payments), Personal Protective Equipment(PPE) and sanitation supplies and equipment VI. Base Eligibility • Businesses must located in the City of Fort Worth • Business must have been operating as of September 1, 2019 • Business must be registered to do business in the State of Texas. • Businesses must demonstrate a reduction in sales/revenue or employment during the period of March 17, 2020 through December 30,2020 as a result of the COVID-19 pandemic. VII. Priority Eligibility • Priority will be given to applicants that meet the following criteria: o For-Profit Businesses that operate out of a physical"brick and mortar"location within the City of Fort Worth(excluding personal residence) o Businesses that did not receive funding through either the Paycheck Protection Program (PPP) or the Emergency Injury Disaster Loan(EIDL)Program o Businesses that were closed to the Covid-19 public health emergency VIII. Ineligible Business Activities • Franchisors • Real Estate developers/Investors • Governmental/taxing agencies/departments • Hobby businesses as defined by federal law • Multi-level marketing concerns • Gambling Concerns, including casinos,racing operations or other activities whose purpose involves gambling Preserve the Fort MOU Page 2 of 7 • Lobbying organizations and political organizations subject to Internal Revenue Code 527 • Sexually Oriented Businesses (live performances,product sales, items or materials) • Businesses primarily engaged in lending, investments, or to an otherwise eligible business engaged in financing or factoring. • Pawn Shops • An individual who employs household employees such as nannies or housekeepers • Concerns engaged in illegal activities under federal, state or local laws • A business that is otherwise prohibited by federal or Texas law • A business that is ineligible or precluded to receive federal or State of Texas funding due to federal laws (including but not limited to the CARES Act) or Texas laws Fort Worth City Council Members, City of Fort Worth Employees and their immediate family members are not eligible for this program. Owners of multiple businesses will only be eligible for one award. Locally owned businesses with more than three locations in the City of Fort Worth are ineligible for the program. IX. City of Fort Worth Roles & Responsibilities a) Marketing—The City of Fort Worth, along with its partners at the Fort Worth Chamber of Commerce, Fort Worth Metropolitan Black Chamber of Commerce and the Fort Worth Hispanic Chamber of Commerce will market and promote the grant program through email, social media and other channels to ensure that there is effective awareness of the program and the application process. b) Application Review—The City of Fort Worth Economic Development Department, along with representatives from each Chamber of Commerce, will review all applications and documentation received through the application portal on a daily basis. The initial review team will determine if the applicant meets the base eligibility requirements as outlined in Section VI of this MOU and which funding level they would qualify for. As a part of this initial review, the City of Fort Worth will determine if the applicant is a minority-owned businesses and if they are located in a Neighborhood Empowerment Zone or Designated Investment Zone. A secondary review team will review the recommendation from the initial review team and prioritize applicants as outlined in Section VII of this MOU. Applicants that are not approved for funding will be notified by the City of Fort Worth no later than June 26, 2020. c) Funding Recommendation—After review of the application, a final recommendation for funding will be developed and provided to United Way for disbursement. The City of Fort Worth will track all funding recommendations to ensure that commitments to minority owned businesses and businesses located in a NEZ/Designated Investment Zone are met. X. United Way of Tarrant County Roles & Responsibilities a) Web Presence—United Way,under guidance from the City, will develop and launch a web portal that will be the site for receiving all applications for the grant program. The City will have viewing rights to the portal to review all applications received and documentation provided. United Way will have the portal developed by May 22A to allow for testing of the site. The application period will open May 26, 2020 and close June 8, 2020. b) Grant Disbursement—Once United Way has received a funding recommendation for the City,they will notify the applicant that funding has been approved and will disburse the grant funds through ACH deposit or check. United Way will disburse grant funds no later than 3 days from receiving the Preserve the Fort MOU Page 3 of 7 funding recommendation from the City of Fort Worth. United Way will report to the City on a daily basis the amount of grant applications that have been processed and the amount of funds remaining in the account. XI. General Terms & Conditions a) Nonexclusive/Non-binding- This MOU is intended only to establish an understanding of the protocols that will be carried out by the City and United Way in a cooperative effort to promote and administer the "Preserve the Fort" grant program in the City. Notwithstanding anything to the contrary herein, this MOU is not a binding legal document and does not establish legal rights or obligations as to either the City or United Way. Collaboration between the City and United Way under this MOU does not create a legal entity. This MOU does not supersede or interfere with any agreements entered into independently with other parties or entities by United Way of Tarrant County, City of Fort Worth or any affiliated entity. b) Payment of Funds - This MOU does not include the payment of funds between the parties but merely establishes the basis on which collaborative work may proceed. The parties understand that all financial arrangements, will be controlled by a separate, specifically signed and negotiated agreement between the City and United Way for any agreed activity requiring financial commitment. XII. Duration and Termination of this MOU This MOU is effective the date signed below and will continue until December 31, 2020. XIII. Public Information. United Way of Tarrant County understands and agrees that the City is subject to the Texas Public Information Act, Chapter 552 Texas Government Code (the "Act"). Any records received through the application portal or grants funded may be subject to the Act. City of Fort Worth United Way of Tarrant County By By: N e: Robert Sturns Name: Leah M. King Title: Director,Economic Development Title: President& CEO Department Date: S `/ a y Date: OFFICIAL RECORD Preserve the Fort MOU CITY SECRETARY page 4 of 7 FT. WORTH, TX Soto, Vania Elizabeth From: Chapa,Jesus Sent: Friday, November 20, 2020 4:52 PM To: Kayser, Mary; Soto,Vania Elizabeth Cc: Sturns, Robert; Strong,JB Subject: FW: Preserve the Fort Amendment Mary/Vania, On May 19, 2020 the City Council approved Resolution 5234-05-2020 establishing the Preserve the Fort Grant Program with United Way of Tarrant County to provide CARES funding for small businesses. The Economic Development Department subsequently executed Exhibit A of the Resolution which was an MOU outlining the roles and responsibilities of the United Way under the program. Because the language in the MOU was included in the adopted resolution, the MOU was not recorded in the City Secretary's Office as a separate contract. The agreement has gone through subsequent amendments to allow for additional CARES funding to be applied to the program. In these subsequent amendments, the MOU document was included as a separate contract and as such the original MOU document should be accepted as valid in order for the original MOU and its 3 amendments to be filed and recorded appropriately. If you have any questions, please free to contact Robert Sturns for details at(817) 392-2663. Thanks. Jay Chapa Deputy City Manager City of Fort Worth 817-392-5804 FORT WORTH.. From: Soto,Vania Elizabeth Sent:Tuesday, November 17, 2020 2:55 PM To: Kayser, Mary<Mary.Kayser@fortworthtexas.gov>; Sturns, Robert<Robert.Sturns@fortworthtexas.gov>; Strong,JB <John.Strong@fortworthtexas.gov> Subject: RE: Preserve the Fort Amendment Based on the email from JB, I was waiting for an email from Jay stating it was okay to take the MOU for how it was attached to the resolution. i