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HomeMy WebLinkAbout(0044) RESOLUTION - Preserve the Fort 11-10-20A 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 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; 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 increasing the total authorized distributions. 3. The City Council hereby approves changes to 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: WE Mary Kayser, City Secretary 2020. EXHIBIT A THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF FORT WORTH AND UNITED WAY OF TARRANT COUNTY This Third 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 has subsequently amended the MOU to increase funding for the program; and WHEREAS, it is the collective desire of both Fort Worth and United Way to amend the MOU again to increase the total distribution amount from Fort Worth. 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: 1. Section III. Program Overview is hereby replaced in its entirety with the following: The Program will provide up to $60.0 M in funding to be provided as grants of up to $150,000 to eligible businesses ("Recipients"). Approximately $45.0 M in funds has been distributed to Recipients. The remainder of the $15.0 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. 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] Third Amendment to MOU between City of Fort Worth and United Way of Tarrant County Pagel of 2 Executed effective as of the date signed by the Assistant City Manager below. 10[s) 4ILIXI'[l] 71_0_ 1F City of Fort Worth By: Name: Jesus J. Chapa Title: Assistant City Manager Date: Approval Recommended: By: Name Title: Robert Sturns Director, Economic Development Attest: By: Name: Mary Kayser Title: City Secretary VENDOR: 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: John B. Strong Title: Assistant City Attorney Contract Authorization: M&C: Third Amendment to MOU between City of Fort Worth and United Way of Tarrant County Page 2 of 2 SECOND AMENDMENT TO FORT WORTH CITY SECRETARY CONTRACT NO. 53978 This Second 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 Forty Thousand and 00/100 ($140,000.00). 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 sixty million and 00/100 dollars ($60,000,000) 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] Second Amendment to Fort Worth City Secretary Contract No. 53978 Pagel 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: Second Amendment to Fort Worth City Secretary Contract No. 53978 Page 2 of 2