HomeMy WebLinkAbout(0122) RESOLUTION - Preserve the Fort AmendmentA Resolution
NO.
APPROVING AN AMENDMENT TO THE
"PRESERVE THE FORT" BUSINESS STABILIZATION PROGRAM
AND EXECUTION OF AN AMENDMENT TO AN AGREEMENT
WITH UNITED WAY OF TARRANT COUNTY
TO ASSIST IN MANAGEMENT OF THE PROGRAM
WHEREAS, the City of Fort Worth ("City") has received certain funding under the
Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"); and
WHEREAS, funding received by the City pursuant to Title V, Section 5001 of the
CARES Act (the Coronavirus Relief Fund) (the "Title V Funds") may be used only to cover
costs of the City that "(1) are necessary expenditures incurred due to the public health emergency
with respect to the Coronavirus Disease 2019 (COVID-19); (2) were not accounted for in the
budget most recently approved as of the date of enactment of this section (March 27, 2020) for
the State or government; and (3) were incurred during the period that begins on March 1, 2020,
and ends on December 30, 2020"; and
WHEREAS, on April 22, 2020 the United States Department of the Treasury released
written guidance for state, territorial, local, and tribal governments as to what types of payments
would be eligible for expenditure from Title V Funds (the "April 22, 2020 Circular"); and
WHEREAS, the April 22, 2020 Circular stipulates that Title V Funds may be used for,
among other things, "expenses associated with the provision of economic support in connection
with the COVID-19 public health emergency, such as: Expenditures related to the provision of
grants to small businesses to reimburse the costs of business interruption caused by required
closures; Expenditures related to a State, territorial, local or Tribal government payroll support
program; Unemployment insurance costs related to the COVID-19 public health emergency if
such costs will not be reimbursed by the federal government pursuant to the CARES Act or
otherwise"; and
WHEREAS, on May 4, 2020 the United States Department of the Treasury released a set
of Frequently Asked Questions to supplement the April 22, 2020 Circular (the "May 4, 2020
Circular"); and
WHEREAS, the May 4, 2020 Circular stipulates that "a program (of the local
government) that is aimed at assisting small businesses with the cost of business interruption
caused by required closures should be tailored to assist those businesses in need of such
assistance"; and
WHEREAS, the May 4, 2020 Circular further stipulates that, "Fund payments may be
used for economic support in the absence of a stay-at-home order if such expenditures are
determined by the government to be necessary. This may include, for example, a grant program
to benefit small businesses that close voluntarily to promote social distancing measures or that
are affected by decreased customer demand as a result of the COVID-19 public health
emergency"; and
WHEREAS, on March 13, 2020 the Governor of Texas issued a State of Disaster for all
Texas counties and the President of the United States declared a State of National Emergency for
the United States of America due to the COVID-19 public health emergency; and
WHEREAS, on that same day, Mayor Betsy Price ordered a Declaration of Public
Health Emergency, which has been approved, amended, and extended by the City Council, and
the Governor of Texas and numerous County Judges have issued various Executive Orders, all of
which have closed or limited operations of certain businesses and restricted activities of the
public in order to reduce the opportunity for transmission of the COVID-19 virus; and
WHEREAS, smaller businesses in particular have suffered great economic hardship due
to closures and other impacts caused by the COVID-19 public health emergency; and
WHEREAS, the City Council established a business stabilization grant program called
"Preserve the Fort" (the "Program") under which the City has made certain grants to small
businesses located in the City with some of the Title V Funding, taking into account the
restrictions on use of the Title V Funding and guidance from the United States Department of the
Treasury set forth in the April 22, 2020 Circular and the May 4, 2020 Circular; and
WHEREAS, due to the continuing need for expediency in providing grant assistance to
small businesses and the additional need to provide grant assistance to non-profit organizations
and bars and music venues located in the City that have incurred economic costs and closures
due to their response to the COVID-19 public health emergency, respectively, the City Council
approves the City's intention to amend the Program and the contract with United Way of Tarrant
County to increase distributions from the Program, add new Recipients to the Program, and
detail requirements for the new Recipients;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS, THAT:
1. Taking into account the Recitals above, as well as all other available information,
the City Council hereby finds that businesses located in the City, and in particular, small
businesses and non-profit organizations, have suffered economic hardship due to closures and
other impacts caused by the COVID-19 public health emergency.
2. Taking into account the Recitals above, as well as all other available information,
the City Council hereby finds that it is necessary and appropriate to continue and expand the
Program under which the City provides or cause to be provides grant funding from certain Title
V Funding received by the City by taking certain actions, including but not limited to, an
increase in total authorized distributions and inclusion of real estate investors as an eligible
recipient of funds in the Program.
3. The City Council hereby approves changes to the eligibility criteria and other
aspects of the Program substantially in accordance with the terms and conditions outlined in the
Amendment to the Memorandum of Understanding that created the Program and an Amendment
to the Agreement with United Way for assistance in managing the Program, both attached hereto
as Exhibit "A".
4. The City Council hereby acknowledges that, pursuant to authority granted to the
City Manager by the City Council under Section 2-9(d)(11) of the City Code, the City will enter
into an amendment to the contract with United Way of Tarrant County to assist City staff in the
management and administration of the Program, on terms and conditions approved by the City
Manager and consistent with the provisions of this Resolution.
Adopted this day of
ATTEST:
By:
Mary Kayser, City Secretary
2020.
EXHIBIT A
SECOND AMENDMENT TO
MEMORANDUM OF UNDERSTANDING
BETWEEN
CITY OF FORT WORTH
AND
UNITED WAY OF TARRANT COUNTY
This Second Amendment to Memorandum of Understanding ("Second Amendment") is
made between the City of Fort Worth ("Fort Worth"), a municipal corporation and United Way of
Tarrant County, a Texas non-profit corporation ("United Way").
WHEREAS, Fort Worth and United Way entered into a Memorandum of Understanding
to administer the Preserve the Fort grant program (the "MOU") and subsequently a First
Amendment to the MOU expanding the program; and
WHEREAS, it is the collective desire of both Fort Worth and United Way to amend the
MOU to increase the total distribution amount from Fort Worth and revise the ineligible activities
section.
NOW THEREFORE, known by all these present, Fort Worth and United Way, acting
herein by the through their duly authorized representatives, agree to the following terms, which
amend the MOU as follows:
I . Section III. Program Overview is hereby replaced in its entirety with the following:
The Program will provide up to $45 M in funding to be provided as grants of up to
$150,000 to eligible businesses ("Recipients"). Approximately $20 M in funds has
been distributed to Recipients. The remainder of the $45 M will continue to provide
funding for small businesses with less than 500 employees and non -profits
(including performance art spaces) that have been negatively impacted by the
COVID-19 Pandemic and incurred costs related to responses to the COVID-19
Pandemic, and bars/music venues that were completely closed by the Governor's
Declaration Order.
Grants will be processed until funds received as a result of the CARES Act are
exhausted.
The Program provides funding for small businesses, sole proprietorships,
independent contractors and self-employed persons as well as non-profit
organizations ("Non -Profits") excluding ineligible entities listed below in section
VIII.
2. Section V. Eligible Activities is hereby replaced in its entirety with the following:
Sccond Amcndmcnt to MOU between City of Fort Worth and United Way of Tarrant County Pagc 1 of 4
Grants received under the 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
Pandemic.
The types of eligible activities that could be covered under the 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.
Grants received under the Program for performing arts Non -Profits to reimburse
performing arts non-profit organizations for monthly revenue from lost ticket sales
and concessions as a result of required closures. Performances must have been
scheduled as of March 1, 2020
Grants received under the Program by Non -Profits to reimburse a Non -Profit for
costs that were unbudgeted as of March 1, 2020 and incurred between March 1,
2020 and October 31, 2020 that are associated with preparing their operations to
open in a way that is safe for employees, clients, volunteers, artists, and patrons to
include items such as:
• Installation of plexiglass barriers for face to face transactions and security
screenings;
• Walk-through body temperature detection systems;
• Sanitizer pumps and stands;
• Sanitizing supplies such as sprays and wipes in bulk quantities;
• Sanitizing supplies for electronic stage equipment, microphones, speakers,
etc. in performing arts spaces;
• PPE in bulk for all employees, volunteers, artists and patrons; and
• Automatic sink faucets and toilet flushers.
3. Section VIII. Ineligible Business Activities is hereby replaced in its entirety with
the following:
• Franchisors;
• Governmental/taxing agencies/departments;
• Hobby businesses as defined by federal law;
Sccond Amcndmcnt to MOU between City of Fort Worth and United Way of Tarrant County Pagc 2 of 4
• Multi -level marketing concerns;
• Gambling Concerns, including casinos, racing operations or other
activities whose purpose involves gambling;
• 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;
• The following Non -Profits are ineligible: private foundations, political
organizations, schools and educational organizations (excluding daycares),
and sports organizations;
• Concerns engaged in illegal activities under federal, state or local laws;
• A business that is otherwise prohibited by federal or Texas law; and
• 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.
4. All other terms, provisions, conditions, covenants and recitals of the MOU not
expressly amended herein shall remain in full force and effect.
[Signature Page Follows]
Sccond Amcndmcnt to MOU between City of Fort Worth and United Way of Tarrant County Pagc 3 of 4
Executed effective as of the date signed by the Assistant City Manager below.
FORT WORTH:
City of Fort Worth
By:
Name:
Title:
Date:
Jesus J. Chapa
Assistant City Manager
Approval Recommended:
By:
Name:
Title:
Attest:
Contract Compliance Manager:
By signing I acknowledge that I am the person
responsible for the monitoring and administration
of this contract, including ensuring all performance
and reporting requirements.
By:
Name:
Title:
Approved as to Form and Legality:
Robert Sturns
Director, Economic Development By:
Name:
Title:
By:
Name: Mary Kayser
Title: City Secretary
VENDOR:
United Way of Tarrant County
By:
Name: Leah M King
Title: President & CEO
Date:
John B. Strong
Assistant City Attorney
Contract Authorization:
M&C:
Sccond Amcndmcnt to MOU between City of Fort Worth and United Way of Tarrant County Pagc 4 of 4
FIRST AMENDMENT TO
FORT WORTH CITY SECRETARY CONTRACT NO. 53978
This First Amendment to Fort Worth City Secretary Contract No. 53978 ("First
Amendment") is made between the City of Fort Worth ("City"), a municipal corporation and
United Way of Tarrant County, a Texas non-profit corporation ("Partner").
WHEREAS, City and Partner entered into an Agreement identified as Fort Worth City
Secretary Contract No. 53978 (the "Agreement"); and
WHEREAS, it is the collective desire of both City and Partner to amend the Agreement to
increase the administrative fee paid to Partner and the total distributions made by City.
NOW THEREFORE, known by all these present, City and Partner, acting herein by the
through their duly authorized representatives, agree to the following terms, which amend the
Agreement as follows:
1. The Agreement is hereby amended by replacing section 2 in its entirety with the
following:
Compensation. In consideration of the services to be performed hereunder by
Partner, City promises and agrees to transfer to Partner the sum of up to one
hundred and five thousand and 00/100 ($105,000.00). Partner shall not perform
any additional services for City not specified by this Agreement unless City
requests and approves in writing the additional costs for such services. City shall
not be liable for any additional expenses of Partner not specified by this Agreement
unless City first approves such expenses in writing. City agrees to pay all invoices
of Partner within thirty (30) days of receipt of such invoice.
2. The Agreement is hereby amended by replacing section 3 in its entirety with the
following:
Distributions. City will deliver a total disbursement of up to forty-five million and
00/100 dollars ($45,000,000) in funding to Partner required to support the
Program's grant distributions. Partner shall distribute respective Funds to each
eligible Recipient within three (3) business days of receiving direction from the
City of the specific Fund amount to be distributed.
3. All other terms, provisions, conditions, covenants and recitals of the Agreement not
expressly amended herein shall remain in full force and effect.
[Signature Page Follows]
First Amendment to Fort Worth City Secretary Contract No. 53978 Pagc 1 of 2
Executed effective as of the date signed by the Assistant City Manager below.
CITY:
City of Fort Worth
By:
Name:
Title:
Jesus J. Chapa
Deputy City Manager
Date:
Approval Recommended:
By:
Name:
Title:
Attest:
By:
Name: Mary Kayser
Title: City Secretary
PARTNER:
United Way of Tarrant County
By:
Name: Leah M. King
Title: President & CEO
Date:
Contract Compliance Manager:
By signing I acknowledge that I am the person
responsible for the monitoring and administration
of this contract, including ensuring all performance
and reporting requirements.
By:
Name:
Title:
Approved as to Form and Legality:
By:
Name:
Title:
John B. Strong
Assistant City Attorney
Contract Authorization:
M&C:
First Amendment to Fort Worth City Secretary Contract No. 53978 Pagc 2 of 2