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Home My WebLink About10521ORDINANCE NO. 10521 AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR TO SIGN A SUBRECIPIENT AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND UNITED WAY OF PUEBLO COUNTY, 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 SIX HUNDRED THOUSAND DOLLARS ($600,000) 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 February 13, 2023, between the City of Pueblo, a Colorado municipal corporation and United Way of Pueblo County, Colorado, Inc., 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 $600,000 are hereby authorized to be paid from Project No. CI2113 – American Rescue Plan Act, for purposes of providing financial support to United Way’s Leadership, Empowerment and Development (“LEAD”) Center. 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 July 24, 2023. Final adoption of Ordinance by City Council on August14, 2023. ____________________________ President of City Council Action by the Mayor: ☒ Approved on August 17, 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: August 14, 2023 TO: President Heather Graham and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Marisa Stoller, City Clerk FROM: Laura Solano, Chief of Staff SUBJECT: AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR TO SIGN A SUBRECIPIENT AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND UNITED WAY OF PUEBLO COUNTY, 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 SIX HUNDRED THOUSAND DOLLARS ($600,000) 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 the United Way of Pueblo County, Inc. a Colorado nonprofit corporation (“United Way”) for training programs, technology, office space and other resources for local nonprofits at its nonprofit Leadership, Empowerment and Development (“LEAD”) Center (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 $600,000 will be paid out of Project No. CI2113, the American Rescue Plan Act. The use of said funds shall be limited to expenditures to offset the costs for the construction, acquisition, site development, engineering and architectural work for a new or rehabilitated building from which United Way shall provide expanded services. 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: A LEAD Center is necessary to meet the post-pandemic needs of local nonprofits. United Way recently conducted a survey of 19 partnering nonprofits and found that 42.1% of respondents saw a "significantly increased" community demand for their services. Respondents simultaneously reported their own struggles with increased expenses, staff burnout and budget reductions. About 63.2% of survey respondents felt their organization was the same to significantly worse compared to before the pandemic. Over 68% of survey respondents said "collaboration and service alignment" with other nonprofits would benefit their organizations. Survey respondents also requested increased opportunities for public outreach, training and grant writing services. United Way would provide these benefits through establishment of a LEAD center. To be effective, the location of the LEAD Center must be centrally located, handicap accessible and near a bus transit route. United Way estimates that approximately 10,000 square feet of office space and conference room space would be necessary for future use by local nonprofits. United Way also proposes to relocate its operations into the LEAD Center. United Way’s proposed LEAD Center would be patterned after United Way of Larimer County's Shared Services Program, which offers human resources, grant writing, graphic design, communication and other "back-office services" to Larimer County nonprofits. This ARPA grant award is also 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. The LEAD Center must be located in a Qualified Census Tract (“QCT”) of the City of Pueblo. 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: i. 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 ii. 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 and land acquisition. During the term of the attached Subrecipient Agreement, United Way shall be required to provide the following programming and achieve the following outcomes: LEAD Center Programming  Nonprofit Collaboration/Innovation Hub  Technology/Resources  Nonprofit LEAD Training Program  Shared Resources  Training Center for United Way’s Community Impact Fellowship  Office Space (below market rates)  Regional Nonprofit Training Center LEAD Center Outcomes  Increase efficiencies and improve service delivery  Leverage resources to address root causes of inequity  Support community-wide solutions that result in systems change  Economic impact, both directly and indirectly, through resources reinvested back into the Pueblo community and significant cost savings FINANCIAL IMPLICATIONS: United Way will receive $600,000 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 United Way’s LEAD initiative. RECOMMENDATION: Approval of the Ordinance. ATTACHMENTS: 1. UPDATED - ARPA - Subrecipient Agreement between City and United Way