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HomeMy WebLinkAbout10437ORDINANCE NO. 10437 AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR TO SIGN A SUBRECIPIENT AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND CROSSROADS’ TURNING POINTS, INC., A COLORADO NONPROFIT CORPORATION, AS AUTHORIZED BY SECTION 603 OF THE AMERICAN RESCUE PLAN ACT AND U.S. TREASURY FINAL RULE 31 CFR 35.6 AND AUTHORIZING THE PAYMENT OF SEVEN HUNDRED FIFTY THOUSAND DOLLARS ($750,000.00) FROM PROJECT NO. CI2113 - AMERICAN RESCUE PLAN ACT, FOR PURPOSES THEREOF WHEREAS, on March 11, 2021, President Biden signed the U.S. Senate-amended H.R. 1319 (P.L. 117-2) known as the American Rescue Plan Act (hereinafter “ARPA”); and WHEREAS, on May 10, 2021, the U.S. Treasury issued the Interim Final Rule to implement ARPA in Title 31, Part 35 of the Code of Federal Regulations (“CFR”); and WHEREAS, on January 6, 2022, the U.S. Treasury issued, with an effective date of April 1, 2022, the Final Rule to implement ARPA in Title 31, Part 35 of the Code of Federal Regulations (“CFR”); and WHEREAS, under the Final Rule, recipients may use Coronavirus Local Fiscal Recovery Funds (“CLFRF”) to respond to the COVID-19 public health emergency and the negative economic consequences resulting therefrom; and WHEREAS, under ARPA Section 603 (C)(1)(A) and (3) and the Final Rule 31 CFR 35.6(b)(7) recipients may use CLFR Funds to award grants to nonprofit organizations that are responding to the negative economic impacts of the COVID-19 public health emergency; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Subrecipient Agreement (“Agreement”) dated April 24, 2023, between the City of Pueblo, a Colorado municipal corporation and Crossroads’ Turning Points, Inc., (“CTP”) a Colorado nonprofit corporation, a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved: SECTION 2. The Mayor is hereby authorized to execute said Agreement for and on behalf of the City and the City Clerk is authorized to affix the seal of the City thereto and attest same. SECTION 3. Funds in the amount of $750,000.00 are hereby authorized to be paid from Project No. CI2113 – American Rescue Plan Act, to CTP to (1) assist in the construction of a new facility located at 355 E. Spaulding Ave., Pueblo West, CO 81007 (“new facility”) which would grow the number of beds available and increase CTP's capacity to provide services; and (2) to provide co-occurring (mental health together with substance use) disorder services to patients who were disproportionately impacted by the COVID-19 pandemic from April 24, 2023 through December 31, 2026 both at its current facility and its new facility. SECTION 4. The officers and staff of the City are authorized to perform any and all acts consistent with this Ordinance and the attached Agreement to implement the policies and procedures described herein. SECTION 5. This Ordinance shall become effective on the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on April 10, 2023. Final adoption of Ordinance by City Council on April 24, 2023 . President of City Council Action by the Mayor: ☒ Approved on May 1, 2023 . □ Disapproved on based on the following objections: Mayor Action by City Council After Disapproval by the Mayor: □ Council did not act to override the Mayor's veto. □ Ordinance re-adopted on a vote of , on □ Council action on _______ failed to override the Mayor’s veto. President of City Council ATTEST City Clerk City Clerk's Office Item # R2 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: April 24, 2023 TO: President Heather Graham and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Marisa Stoller, City Clerk FROM: Daniel C. Kogovsek, City Attorney SUBJECT: AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR TO SIGN A SUBRECIPIENT AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND CROSSROADS’ TURNING POINTS, INC., A COLORADO NONPROFIT CORPORATION, AS AUTHORIZED BY SECTION 603 OF THE AMERICAN RESCUE PLAN ACT AND U.S. TREASURY FINAL RULE 31 CFR 35.6 AND AUTHORIZING THE PAYMENT OF SEVEN HUNDRED FIFTY THOUSAND DOLLARS ($750,000.00) FROM PROJECT NO. CI2113 - AMERICAN RESCUE PLAN ACT, FOR PURPOSES THEREOF SUMMARY: This Ordinance approves and authorizes the Mayor to sign a Subrecipient Agreement with Crossroads’ Turning Points, Inc., a Colorado nonprofit corporation (“CTP” or “Crossroads”) to (1) assist in the construction of a new facility located at 355 E. Spaulding Ave., Pueblo West, CO 81007 which would grow the number of beds available and increase CTP's capacity to provide services; and (2) to provide co-occurring (mental health together with substance use) disorder services to patients who were disproportionately impacted by the COVID-19 pandemic, from April 24, 2023 through December 31, 2026 (hereinafter “Project”) as authorized by Section 603 of the American Rescue Plan Act and U.S. Treasury Final Rule 31 CFR 35.6. Funds for the Project, in the amount of $750,000.00 will be paid out of Project No. CI2113, the American Rescue Plan Act. PREVIOUS COUNCIL ACTION: By Ordinance No. 9931, approved on May 17, 2021, the City Council established Project No. CI2113 and budgeted and appropriated up to $36.7 million in funds which were expected to be distributed to the City from the American Recovery Plan Act (“ARPA”) for covered costs and eligible expenses to be incurred during the period which began on March 3, 2021 until December 31, 2024 (to be expended by December 31, 2026). BACKGROUND: Recent (pre-COVID) point-in-time statistics related to the incidence of individuals with co- occurring (mental health together with substance use) disorders showed that, in the United States, 19.3 million people aged 18 and older had a substance use disorder (SUD) while 51.5 million people aged 18 and older had a mental illness and 9.5 million people aged 18 or older had BOTH an SUD and mental illness. Since March, 2020 (the onset of the COVID pandemic) incidents of co-occurring disorders have increased tremendously causing a severe negative impact on public health which has been devastating in Pueblo County and southern and southeastern Colorado. There have been increases in calls to disaster distress helplines, increases in emergency room visits related to suicide attempts and overdoses, increases in domestic violence hotlines, increased reports of child abuse and infant deaths attributed to injuries related to child abuse and increases in substance use and opioid related deaths. CTP currently offers its Circle Program to individuals with co-occurring (mental health together with substance use) disorders. This program offers comprehensive community-based residential treatment to individuals with co-occurring disorders. The goal of the Circle Program is to facilitate client stabilization, followed by engagement in continuing outpatient services, and continuing care to support an individual's ongoing management of their co-occurring substance use and mental health disorders. The program is designed to engage families, primary care medical providers, appropriate social support and recovery-oriented services and supports. Prior to COVID, CTP was in the process of expanding its 16-bed Circle Program to more adequately meet the needs of this co-occurring population. With the social distancing mandates brought about by COVID, CTP's Circle Program was reduced to a 10-bed program. As Pueblo begins to recover and rebuild from the effects of COVID, CTP is strategically planning to increase the capacity of its Circle Program to ensure that the agency has the infrastructure in place to meet the increasing need for co-occurring services in the coming months and years. To accomplish this, CTP is submitting an ARPA application requesting funding to assist in the construction of a new facility which would grow the number of beds available and increase CTP's capacity to provide co-occurring services. Having a larger facility will allow CTP more bed space and an increased capacity to serve a growing number of individuals with co-occurring disorders. Having the space to engage a greater number of individuals in co-occurring services equates to a healthier and more resilient community; not only for individuals, but also for their children, families and co- workers. Funds in the amount of $750,000.00 authorized to be paid to CTP under the attached ordinance will assist in the construction of a new facility located at 355 E. Spaulding Ave., Pueblo West, CO 81007. The new facility will contain 20 beds. CTP estimates that 10 beds will be filled by residents of Pueblo County and the remaining 10 beds will be utilized by Colorado residents from other counties. Crossroads was founded in 1979 by a group of concerned citizens in Pueblo who took action to develop services and programming to help individuals and families affected by substance abuse. CTP has evolved into a sophisticated and responsive agency, working with community leaders, members of the public, law enforcement, healthcare and other community-based service agencies to become one of the region’s leading providers of behavioral health programs and substance use disorder services. CTP has developed and enhanced its full continuum of services within Pueblo County, while also impacting an additional twenty-two counties in Southern and Southeastern Colorado. CTP strives to improve the overall health and life outcomes for clients by increasing access to its full-continuum of high-level, evidence-based substance use disorder services. As the largest organization utilizing evidence-based curricula and best-practice programming for alcohol and SUD treatment, CTP delivers integrated comprehensive services in prevention, intervention, co-occurring treatment and recovery support services, as well as, withdrawal management (detoxification), regular and intensive outpatient services (including Medication Assisted Treatment-MAT), transitional residential and intensive residential programming. Crossroads also offers recovery support services that include the Peer Recovery Coaches and Sober Living Program. CTP offers the following programs: Intervention Services, Substance Use Disorder (SUD) Treatment, Outpatient Treatment, Intensive Outpatient (IOP) Treatment, Intensive Case Management (ICM), Day Treatment, Family Center and Women’s Residential Treatment, Women with Children, Women without Children, Pregnant Women: Special Connections, Men’s Residential Treatment, Peer Recovery Coaches and Sober Living Program (Recovery), Medication Assisted Treatment (MAT), Offender Services, Strategic Individualized Remediation Treatment (STIRT), DUI Program, Co-occurring Services and has an Office of Prevention. Clients can seamlessly access all CTP treatment services and may move fluidly from one level of service and into another, depending on the needs of the client. Substance use has multiple and broad impacts, and therefore treatment can have multiple effects. Disorders related to substance use also vary by the extent of substance use, the type of substance used, and severity of substance-related disorder. Moreover, it is important to recognize that the addictive disorders population is not uniform; it varies by gender, age, ethnicity and comorbidity. Hence, treatment interventions can have different outcomes when applied to different subgroups of the population, and outcome measures must account for these variations. Evaluation is complex and there are often overlapping reasons for conducting outcome evaluation and differing motivations of various parties who have an interest in outcomes data. For the purposes of this ARPA Project application, CTP will measure numbers of individuals served and percentage of programming completions. 31 CFR 35.6 provides that capital expenditures has the same meaning given in 2 CFR 200.1. Under 31 CFR 35.3, capital assets means: (1) Tangible or intangible assets used in operations having a useful life of more than one year which are capitalized in accordance with GAAP. Capital assets include: 1. Land, buildings (facilities), equipment, and intellectual property (including software) whether acquired by purchase, construction, manufacture, exchange, or through a lease accounted for as financed purchase under Government Accounting Standards Board (GASB) standards or a finance lease under Financial Accounting Standards Board (FASB) standards; and 1. Additions, improvements, modifications, replacements, rearrangements, reinstallations, renovations or alterations to capital assets that materially increase their value or useful life (not ordinary repairs and maintenance). 31 CFR 35.6(b)(3)(ii)(C) authorizes grants to nonprofits for construction and land acquisition purposes. 31 C.F.R. Part 35 implements section 9901 of ARPA and its amendments to the Social Security Act. Per 31 C.F.R. § 35.6(b)(3)(ii)(C), a recipient may use funds to respond to the public health emergency for certain enumerated eligible uses, including “Assistance to nonprofit organizations including programs, services, or capital expenditures, including loans or grants to mitigate financial hardship such as declines in revenues or increased costs, or technical assistance,” (emphasis added). The definition of capital expenditures includes construction and improvements. This ARPA grant award is modeled after the State of Iowa’s “vertical infrastructure” program which provided up to $3 million in ARPA funds, to nonprofits to offset the costs for the construction, acquisition, site development, engineering and architectural work for new and rehabilitated buildings from which nonprofit organizations would provide expanded services. FINANCIAL IMPLICATIONS: CTP will receive $750,000 in ARPA funds from Project No.CI2113. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: City Council could decide not to support this ARPA Project. RECOMMENDATION: None. ATTACHMENTS: 1. Subrecipient Agreement between City and Crossroads