To: Honorable Mayor and Members of City Council
From: Steve Potter, City Manager
Prepared By: Liz Habkirk, Assistant City Manager
TITLE:
Title
Community Recovery Bank - Amendment to Extend Term of C2023-053 with Mentis
LABEL
RECOMMENDED ACTION:
Recommendation
Authorize the City Manager to execute Amendment No. 2 to City Agreement No. C2023-053 with Mentis to extend the term of the Agreement to October 31, 2025, and extend the final date for Mentis to expend or return the ARPA Funds to the City to September 30, 2025.
Body
DISCUSSION:
The City of Napa received $15.12 million in American Rescue Plan Act (ARPA) funds. The City’s allocation of ARPA funds was based on guidance from the US Treasury regarding use of ARPA funds, City Council priorities, community needs, and a City department COVID impacts needs assessment. A portion of the ARPA funds, specifically $1.15 million, was dedicated to a “Community Recovery Bank” focusing on housing assistance, addressing homelessness, childcare, support for local businesses, and workforce development in the community, consistent with the results of a community survey. The City conducted a competitive grant application process and awarded funding to non-profit organizations and small businesses for Community Recovery Bank funds.
On February 21, 2023, Council authorized the City Manager to execute Grant agreements based on the competitive grant application process with 21 recipients totaling $1.15 million in Community Recovery Bank Funding. The City of Napa and Mentis entered into an Agreement, effective April 19, 2023, for a grant of American Rescue Plan Act funds in the amount of $110,000 to reimburse Mentis for Eligible Costs in accordance with the terms and conditions set forth therein. The Agreement’s termination date was set for August 31, 2025, in which Mentis was obligated to incur Eligible Costs by January 31, 2025. By August 31, 2025 Mentis was obligated to expend those funds, or return them to the City.
On September 19, 2023, Council authorized the City Manager to execute Amendment No. 1 to the Agreement to increase the total grant amount to Mentis from $110,000 to $145,000 as a result of Wine Country Bicycle Adventures declining their grant award of $35,000.00. There was no change to the term.
Mentis experienced a delay in the launch of their program date and due to these impactful changes, they are requesting an extension of the term of their grant agreement from August 31, 2025, to October 31, 2025, and an extension of the final date to expend or return the ARPA Funds to the City from July 31, 2025, to September 30, 2025.
FINANCIAL IMPACTS:
There is no new financial impact associated with this item. The allocation of $1.15M to the CRB occurred as part of the FY 2022/23 budget process and was included in the adopted budget document.
CEQA:
The City Manager has determined that the recommended action described in this report is not subject to CEQA, pursuant to CEQA guidelines section 15060(c)
DOCUMENTS ATTACHED:
ATCH 1 - C2023-053 Amendment No. 2
ATCH 2 - R2023-017
ATCH 3 - C2023-053 Amendment No. 1
ATCH 4 - C2023-053
NOTIFICATION:
None.