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.
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