Sparks City Council Meeting 1/25/2021 2:00:00 PM

Meeting Link: https://zoom.us/j/95400718003
Meeting Dial-in #: 1-669-900-6833 Meeting ID: 95400718003

General Business: 9.2

Title: Consideration and possible ratification of Amendment No. 1 to the Grant Program Contract (AC-5684) between the City of Sparks and the Reno Housing Authority to modify the terms and conditions for the expenditure of CARES Act funds for residential rental assistance.
Petitioner/Presenter: Community Services Department/Armando Ornelas, Assistant Community Services Director
Recommendation: That the Council ratify Amendment No. 1.
Financial Impact: No additional financial impact.
Business Impact (Per NRS 237):
     A Business Impact Statement is not required because this is not a rule.
Agenda Item Brief:

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 August 24, 2020, the City Council approved a Grant Program Contract (AC-5684) between the City of Sparks and the Reno Housing Authority (RHA) for the provision of residential rental assistance with $2 million of CARES Act funds to tenants residing within the corporate limits of the City of Sparks. Because time is of the essence, on December 15, 2020, the City Manager approved Amendment No. 1 to AC-5684 to modify the terms and conditions for the expenditure of funds provided to RHA, including: reducing the amount of funds the RHA could expend from $2,000,000 to $1,408,243; extending the date for the expenditure of funds by RHA from December 11 to December 30, 2020; and, extending the date for RHA to notify the City of unexpended funds from December 15 to December 29, 2020. This agenda item requests that the City Council ratify the City Manager’s approval of Amendment No. 1.



Background:
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. 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 August 24, 2020, the City Council approved a Grant Program Contract (AC-5684) between the City of Sparks and the Reno Housing Authority (RHA) for the provision of residential rental assistance with $2 million of CARES Act funds to tenants residing within the corporate limits of the City of Sparks.
 
Because time is of the essence, on December 15, 2020, the City Manager approved Amendment No. 1 to AC-5684 to modify the terms and conditions for the expenditure of funds provided to RHA, including: reducing the amount of funds the RHA could expend from $2,000,000 to $1,408,243; extending the date for the expenditure of funds by RHA from December 11 to December 30, 2020; and, extending the date for RHA to notify the City of unexpended funds from December 15 to December 29, 2020. Amendment No. 1 was executed because: 
 
1) RHA requested an extension of the deadline for the expenditure of funds in order to assist additional eligible households; and 
2) RHA informed the City that it did not anticipate expending more than $1,408,243 of the $2,000,000 provided by the City, even if granted additional time to expend funds.
 
This agenda item requests that the City Council ratify the City Manager’s approval of Amendment No. 1 to AC-5684.


Analysis:
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 emergency in the city of Sparks related to the global outbreak of Covid-19.
 
On December 15, 2020, the City Manager approved Amendment No. 1 to AC-5684 for the following reasons:
 
• The terms and conditions of Amendment No. 1 to AC-5684 have been reviewed by staff and deemed acceptable.
• Amendment No. 1 to AC-5684 enabled the provision of services needed by the community due to the COVID-19 pandemic. Providing rental assistance to residents of Sparks is in the best interest of the health and safety of our citizens.
• The services provided through Amendment No. 1 to AC-5684 are needed and time is of the essence.
• The use of CARES Act funds is appropriate to pay the costs incurred through AC-5684; 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 were incurred during the period of March 1, 2020 to December 30, 2020; and, the use of CARES Act funds were not used to offset a revenue shortfall caused by the COVID-19 pandemic.  


Alternatives:
  1. The City Council may ratify Amendment No. 1 to AC-5684 as recommended by staff.
  2. The City Council may reject Amendment No. 1 to AC-5684 and provide direction to the City Manager.


Recommended Motion:

I move to ratify Amendment No. 1 to the Grant Program Contract (AC-5684) between the City of Sparks and the Reno Housing Authority to modify the terms and conditions for the expenditure of CARES Act funds for residential rental assistance.



Attached Files:
     02-Cares Act Funded Rental Assistant Program AC-5684.pdf
     AC-5684 Amendment 1.pdf
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