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12.E.
City Council Meeting - FINAL (AMENDED)
Meeting Date:
04/19/2022
From:
Stacey Brechler-Knaggs, Grants and Contracts Manager

Information

TITLE:

Consideration and Approval of Contract Amendment:  First Amendment to the Service Provider Contract for Community Health and Human Services with United Way of Northern Arizona in the total amount of $784,000.

STAFF RECOMMENDED ACTION:

  1. Approve the First Amendment to the Service Provider Contract with United Way of Northern Arizona for administration of $700,000 of the American Rescue Plan Act Coronavirus Local Recovery Federal and Non-Federal Funds with a 12% administrative fee for a payment in the amount of $84,000 for a total distribution to United Way of Northern Arizona of $784,000; and
  2. Authorize the City Manager to execute the necessary documents.

Executive Summary:

Staff seeks approval of the First Amendment to the Service Provider Contract with United Way of Northern Arizona, to act on behalf of the City of Flagstaff and administer the American Rescue Plan Act Coronavirus Local Fiscal Recovery Federal and Non-Federal Funds (Local Recovery Funds) to respond to the COVID-19 public health emergency or its negative economic impacts for City-wide local service agencies. Under the First Amendment, United Way of Northern Arizona will provide services, such as issuing Notice of Funding Announcements to eligible non-profits, evaluating proposals, awarding applicants, submitting required reporting, overseeing and monitoring awarded applicants.

Financial Impact:

The City has an active Service Provider Contract with United Way of Northern Arizona to administer City general funds to non-profit agencies. The compensation for that active Service Provider Contract for the current fiscal year is $363,750 plus an additional $30,000 for Step Up for Youth. This First Amendment provides United Way of Northern Arizona an additional $700,000 to distribute for Community Health and Human Services with an $84,000 administrative fee.

The First Amendment will provide United Way of Northern Arizona the $700,000 in Local Recovery Funds to allocate as follows:

Negative Economic Impacts
  • Aid to non-profits - Food, $300,000 (non-federal funds)
  • Aid to non-profits - Other, $150,000 (non-federal funds)
Services to Disproportionately Impacted Communities
  •  Education Assistance - Early Learning, $250,000 (federal funds)
Administration
  • Administration (compensation), $84,000
The funding for this amendment is allocated from the City's $13,252,816 ARPA allocation.

Policy Impact:

None

Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:

Priority Based Budget Key Community Priorities and Objectives
Safe and Healthy Community
- Support social services, community partners & housing opportunities

Has There Been Previous Council Decision on This:

On September 9, 2019, the City Council approved a Service Provider Contract with United Way of Northern Arizona to administer funds for Community Health and Human Services. In April 2021, City Council received notice that the U.S. Department of Treasury would provide the City an allocation from the American Rescue Plan Act Coronavirus Local Recovery Federal Funds in the amount of $13,252,816. Staff met with the City Council on September 7, 2021, and on October 12, 2021, to allocate the Local Recovery Funds to various categories, including some allocations that would generally fall under Community Health and Human Services.

Options and Alternatives:

  1. Approve the First Amendment to the Service Provider Contract and authorize the United Way of Northern Arizona to administer $700,000 in Local Recovery Funds and receive an administrative fee of $84,000; or
  2. Not approve the First Amendment and direct City Staff to administer the $700,000 in Local Recovery Funds internally. This is not recommended due to Staff capacity.

Background and History:

The City is a recipient of certain funds through the American Rescue Plan Act, Pub. L. No. 117-2 (March 11, 2021), which authorizes the U.S. Department of the Treasury to make payments from the Coronavirus Local Fiscal Recovery Fund.

The distribution of Local Recovery Funds is guided by the Treasury Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 C.F.R. Part 200 which allows the City to work with entities to administer the Local Recovery Funds.

 
Staff requests to enter the First Amendment to the Service Provider Contract to delegate certain program administration and monitoring responsibilities to the United Way of Northern Arizona for the distribution of $700,000. This distribution is in compliance with the Uniform Guidance regarding the allocation of the Local Recovery Funds reserved to respond to the COVID-19 public health emergency or its negative economic impacts for City-wide local service agencies.

Key Considerations:

Utilizing United Way of Northern Arizona will assist the City to efficiently respond to the economic and public health impacts of COVID-19 and to assist to contain impacts on the community, residents, and businesses. The distribution of the Local Recovery Funds ensure that local governments have the resources needed to fight the pandemic, sustain, and strengthen the economic recovery, maintain vital public services, and make investments that support long-term growth, opportunity, and equity.

Community Involvement:

The United Way of Northern Arizona will comply with all federal and City procurement requirements through open and competitive processes to determine for eligible non-profits and eligible activities. 
 

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