In December 2019, a novel coronavirus (COVID-19) was first detected in Wuhan City, Hubei Province, China. The Centers for Disease Control and Prevention (CDC) declared the virus to be a severe public health threat. As of November 6, 2020, the World Health Organization (WHO) reported 48,534,508 confirmed cases of COVID-19 leading to 1,231,017 deaths in 206 countries. As of November 5, 2020, Washoe County reported 14,819 confirmed cases and 204 deaths.

On March 15, 2020, the City Manager declared a state of emergency in the City of Sparks related to the global outbreak of COVID-19.

On April 1, 2020, Governor Sislolak issued a stay-at-home order for Nevada.

On July 27, 2020, the City Council provided direction to the City Manager for possible uses of CARES Act funding received by the City of Sparks that included general uses of the funds related to community assistance.

On September 28, 2020, the City Manager executed a Professional Services Contract (AC-5703) for Business Assistance Fund Administration with the National Development Council (NDC) for the not-to-exceed amount of $45,750. The City contracted with NDC to assist with establishing and implementing a program to provide grants to businesses financially impacted by Covid-19 and located within the City’s corporate boundary. The initial amount of funding allocated for grants to businesses was $869,000. Businesses meeting the City’s program eligibility criteria submitted applications for an amount exceeding this amount. In response, the City Manager authorized the expenditure of additional CARES Act monies as needed to fund all eligible applications.

Because time is of the essence, on November 20, 2020, the City Manager approved Amendment No. 1 to AC-5703 to increase the not-to-exceed amount to be paid to NDC by $8,000 to $53,750 to compensate it for processing additional grant requests at a rate equal to five percent (5%) of the funds disbursed to businesses. As the increased contract amount exceeds the City Manager’s standard approval authority of $50,000, this agenda item requests that the City Council consider ratification of the City Manager’s approval of Amendment No. 1.

Sections 1.30.010 and 2.20.025 of the Sparks Municipal Code empower the City Manager to proclaim the existence of a local state of emergency and to request state and federal assistance when the City of Sparks is affected by, or in imminent danger of, a public calamity and the City Council is not in session. State law authorizes local governments responding to an emergency to “enter into contracts and incur obligations necessary to combat such an emergency or disaster, protect the health and safety of persons and property and provide emergency assistance to the victims of such an emergency or disaster.” NRS 414.090(3). On March 15, 2020 the City Manager declared a state of mergency in the City of Sparks related to the global outbreak of Covid-19.

On November 20, 2020, the City Manager approved Amendment No. 1 to AC-5703 for the following reasons:

• The terms and conditions of Amendment No. 1 to AC-5703 have been reviewed by staff and deemed acceptable.
• Amendment No. 1 to AC-5703 provides for the provision of services needed by the community due to the COVID-19 pandemic. Providing financial assistance to small businesses in Sparks is in the best interest of the health and safety of our citizens.
• The additional services provided through Amendment No. 1 to AC-5703 are needed and time is of the essence.
• The use of CARES Act funds is appropriate to pay the costs incurred through Amendment No. 1 to AC-5703; the contract is a necessary expenditure due to the public health emergency; the costs were not accounted for in the City’s FY20 or FY21 budgets; the costs will be incurred during the period of March 1, 2020 and December 30, 2020; and the use of CARES Act funds are not being used to offset a revenue shortfall caused by the COVID-19 pandemic.

1. City Council may ratify Amendment No. 1 to AC-5703 as recommended.
2. City Council may reject Amendment No. 1 to AC-5703 and provide direction to the City Manager.

I move to ratify Amendment No. 1 to the Professional Services Contract (AC-5703) for Business Assistance Fund Administration between the City of Sparks and the National Development Council to increase the not-to-exceed fee amount from $45,750 to $53,750.