HomeMy WebLinkAboutResolution 5438-08-2021 A Resolution
NO. 5438-08-2021
REQUESTING THAT THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT GRANT AN EXCEPTION AS AUTHORIZED BY THE HOUSING
OPPORTUNITIES FOR PERSONS WITH AIDS PROGRAM REGULATIONS FOR A
CONFLICT OF INTEREST SO THAT AIDS OUTREACH CENTER,A LOCAL NONPROFIT
ORGANIZATION THAT RECEIVES FEDERAL GRANT FUNDS FROM THE CITY OF
FORT WORTH, MAY CONTINUE TO RECEIVE FEDERAL FUNDING TO PROVIDE
SERVICES TO LOW INCOME RESIDENTS
WHEREAS, the City of Fort Worth ("City") receives Housing Opportunities for Persons
With AIDS ("HOPWA") grant funds from the United States Department of Housing and Urban
Development (" HUD") with which it provides funding to nonprofit project sponsors that deliver
eligible services to low- and moderate-income residents of the City of Fort Worth, as authorized by
its Annual Action Plan ; and
WHEREAS, the City has awarded HOPWA grant funds to the AIDS Outreach
Center as a project sponsor since March 1995; and
WHEREAS, AIDS Outreach Center's goal is to provide a continuum of services
from testing and prevention efforts through linkage to health care and maintenance of
viral suppression. Current programs for people living with HIV include case
management, patient navigation, peer advocacy, behavioral health services, outreach, a
food bank, dental clinic, housing, and financial services designed to help clients stay in
care. Prevention services include HIV and STI testing, STI treatment, PrEP services, a
gender care program providing hormone replacement therapy and counseling to the trans
and gender nonconforming community, and a young adult drop in center ; and
WHEREAS, AIDS Outreach Center currently uses the City's HOPWA funds to provide
eligible clients throughout seven counties with supportive services, including housing counseling
and case management, or short-term rental, mortgage, or utility assistance ("STRMU"), or a
combination of both; and
WHEREAS, Kelly Allen Gray, a former member of the Fort Worth City Council
serving from July 10, 2012, to June 15, 2021 , has accepted an offer of employment from
the AIDS Outreach Center to serve as its Executive Director beginning July 12, 2021;
and
WHEREAS, the federal regulations governing the use of HOPWA funds
("HOPWA Regulations") state that "no person who is an employee, agent, consultant,
officer, or elected or appointed official of the grantee or project sponsor and who
exercises or has exercised any functions or responsibilities with respect to assis ted
activities, or who is in a position to participate in a decision making process or gain
inside information with regard to such activities, may obtain a financial interest or
benefit from the activity, or have an interest in any contract, subcontract, o r agreement
with respect thereto, or the proceeds thereunder, either for himself or herself or for
those with whom he or she has family or business ties, during his or her tenure or for
one year thereafter,"but exceptions are permitted if certain conditions are met; and
WHEREAS, as a City Council Member and member of the City of Fort Worth
Housing and Neighborhood Services Committee, a subcommittee of the City Council,
Ms. Gray was responsible for reviewing and voting on the Annual Action Plan for HUD
grant funds, including the award of HOPWA funds to AIDS Outreach Center as a project
sponsor; and
WHEREAS, Ms. Gray was in a position that had decision-making authority
regarding the award of federal funds, including HOPWA funds that were allocated to
the AIDS Outreach Center; and
WHEREAS, related to her application for or her acceptance of the position with
AIDS Outreach Center, the City is not aware of a misuse by Ms. Gray of her position
on the City Council or her past voting history that would violate state laws or local
ordinances; and
WHEREAS, Ms. Gray does not and will not for a year from June 15, 2021,
directly receive any of the grant funds provided by the City as compensation from AIDS
Outreach Center, as funds are specifically designated for direct client services, salaries
and benefits for specific positions which do not currently include the Executive
Director, and other costs not directly related to Ms. Gray or her position; and
WHEREAS, even though Ms. Gray is now in a position to dictate how the funds
are used by AIDS Outreach Center, the City's contract provides specific requirements
and lists eligible activities that remove most discretion of how the federal funds may be
utilized; and
WHEREAS, Ms. Gray has extensive experience with delivery of affordable housing and
community-based social services to low income residents, as well as wit h leadership of nonprofit
organizations; and
WHEREAS, Ms. Gray is no longer an officer of the City, and is, therefore, no longer in a
position to gain inside information about or participate in a decision-making role in the City's
process for awarding HOPWA funds; and
WHEREAS, AIDS Outreach Center currently provides services to approximately 90
residents who depend on the service to help meet their minimum needs; and
WHEREAS, denial of this exception will result in undue hardship to the City and
the target population of the HOPWA Grant because AIDS Outreach Center is one of
only two agencies in the City that have the capacity to deliver needed services to the
vulnerable population of low-income persons with AIDS; and
WHEREAS, although there is a public interest in avoiding conflicts of interest,
such an interest is outweighed by the importance of ensuring the delivery of necessary
and critical services at appropriate levels to eligible residents who are in need; and
WHEREAS, if the requested exception is not granted and the City is not able to
provide HOPWA funds to the AIDS Outreach Center, clients in-need would be severely
impacted by a potential reduction in the availability of services and resources; and
WHEREAS, public disclosure of this conflict has been made by including this
Resolution on the non-consent portion of the Agenda for the City Council meeting on
August 3, 2021. The agenda was posted as required by Texas law at least 72 hours prior
to the meeting and the title of Resolution clearly identified the covered person, the
nature of the conflict, the type of assistance being sought and that the City intends to
request an exception from HUD. The Agenda, including copies of all items to be
presented to the Council, was available for review by the public on the City's website;
and
WHEREAS, the HOPWA Regulations that permit HUD to grant exceptions
require a written opinion of the recipient's attorney that the interest for which the
exception is sought would not violate state or local law.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS:
Section 1. That the City Council requests the United States Department of
Housing and Urban Development grant an exception to the conflict of interest
requirements of the Housing Opportunities for Persons With AIDS program so that
AIDS Outreach Center may continue to receive federal funding even though a former
city council member is serving as its Executive Director; and
Section 2. That the City Council requests the City Attorney to issue a written opinion
confirming that the interest for which the exception is sought does not violate state or local law
and for such opinion to accompany the request; and
Section 3. That the minutes of the August 3, 2021, meeting of the City Council
reflect that this Resolution was brought up for a vote during the meeting in accordance
with the posted Agenda, that the minutes include an accurate description of the
discussion by members of the City Council and the public as to its merits, and that such
minutes accompany the request.
Adopted this 3rd day of August 2021.
ATTEST: ,�pRT w0�
Ronald P. Gonzalez, Acting City Secretary