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Home My WebLink About83-22 RESOLUTION;d0 FRYf Trey C` V •fRKA NS PS 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 83-22 File Number: 2022-0264 FAYETTEVILLE NON-PROFIT CORPORATION ASSISTANCE PLAN: A RESOLUTION TO ESTABLISH AND FUND THE FAYETTEVILLE NON-PROFIT CORPORATION ASSISTANCE PLAN TO QUICKLY PROVIDE ASSISTANCE TO NON-PROFIT CORPORATIONS OPERATING AND SERVING RESIDENTS IN FAYETTEVILLE FOR LOSSES INCURRED DURING THE PANDEMIC PERIOD, AND TO APPROVE A BUDGET ADJUSTMENT OF $100,000.00 FOR REQUESTS UP TO $5,000 AND A BUDGET ADJUSTMENT OF $900,000 FOR LARGER REQUESTS WHEREAS, the United States Treasury Department presumes that non-profit corporations to be considered beneficiaries providing reimbursement for economic losses from American Rescue Plan Act funds; and WHEREAS, the City of Fayetteville as a temporary, emergency measure to more quickly assist these non-profit corporations in their work to continue helping neighborhoods in Fayetteville and should create a plan that would expedite disbursement of funds for non-profit corporations that have experienced economic losses. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby requests and authorizes the Administration to create and administer the Non -Profit Corporation Assistance Plan with an appropriation of $100,000.00 of Fayetteville's American Rescue Plan Act funds for nonprofit corporations seeking up to $5,000 pursuant to the attached Budget Adjustment which is hereby approved. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby agrees and authorizes the Page 1 Printed on 416122 Resolution: 83-22 File Number: 2022-0264 Administration to require a shorter period of operation and less rigorous accounting or audits for these nonprofit corporations' requests of up to $5,000 while still assuring proper compliance with all American Rescue Plan Act grant requirements to ensure such funding is properly and legally used for ARPA approved purposes. Section 3: That the City Council of the City of Fayetteville, Arkansas, hereby agrees and authorizes the Administration to create and administer the Non -Profit Corporation Assistance Plan for larger requests above $5,000 and appropriates $900,000 pursuant to the attached Budget Adjustment (which is hereby approved) to fund this plan. PASSED and APPROVED on 4/5/2022 Attest: 1�,�1111111 �i �t�'I 6/2 4r,, 1J41W r� v• ; C , , •X� Kara Paxton, City Jerk Treasures ' ' ?;' ;�'�f'' •. .i r� q5 . ;ty • Page 2 Printed on 416122 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Text File File Number: 2022-0264 Agenda Date: 4/5/2022 Version: 1 Status: Passed In Control: City Council Meetinq File Type: Resolution Agenda Number: D.1 FAYETTEVILLE NON-PROFIT CORPORATION ASSISTANCE PLAN: A RESOLUTION TO ESTABLISH AND FUND THE FAYETTEVILLE NON-PROFIT CORPORATION ASSISTANCE PLAN TO QUICKLY PROVIDE ASSISTANCE TO NON-PROFIT CORPORATIONS OPERATING AND SERVING RESIDENTS IN FAYETTEVILLE FOR LOSSES INCURRED DURING THE PANDEMIC PERIOD, AND TO APPROVE A BUDGET ADJUSTMENT OF $100,000.00 FOR REQUESTS UP TO $5,000 AND A BUDGET ADJUSTMENT OF $900,000 FOR LARGER REQUESTS WHEREAS, the United States Treasury Department presumes that non-profit corporations to be considered beneficiaries providing reimbursement for economic losses from American Rescue Plan Act funds; and WHEREAS, the City of Fayetteville as a temporary, emergency measure to more quickly assist these non-profit corporations in their work to continue helping neighborhoods in Fayetteville and should create a plan that would expedite disbursement of funds for non-profit corporations that have experienced economic losses. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby requests and authorizes the Administration to create and administer the Non -Profit Corporation Assistance Plan with an appropriation of $100,000.00 of Fayetteville's American Rescue Plan Act funds for nonprofit corporations seeking up to $5,000 pursuant to the attached Budget Adjustment which is hereby approved. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby agrees and authorizes the Administration to require a shorter period of operation and less rigorous accounting or audits for these nonprofit corporations' requests of up to $5,000 while still assuring proper compliance with all American Rescue Plan Act grant requirements to ensure such funding is properly and legally used for ARPA approved purposes. Section 3: That the City Council of the City of Fayetteville, Arkansas, hereby agrees and authorizes the Administration to create and administer the Non -Profit Corporation Assistance Plan for larger requests above $5,000 and appropriates $900,000 pursuant to the attached Budget Adjustment (which is hereby approved) to fund this plan. City of Fayetteville, Arkansas Page 1 Printed on 41612022 Paul Becker City of Fayetteville Staff Review Form 2022-0254 Legistar File ID 4/5/2022 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 3/18/2022 CHIEF FINANCIAL OFFICER (110) Submitted By Submitted Date Division / Department Action Recommendation: Approval of a resolution establishing a Fayetteville Non-profit Corporation Assistance Program and approving a budget adjustment of $100,000 from the American Recovery Plan Act Fund. 2246.800.9714-5315.00 Account Number 20023.2021 Project Number Budgeted Item? Yes Does item have a cost? Yes Budget Adjustment Attached? Yes Budget Impact: Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Fund Project Title V20210527 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Original Contract Number: Comments: Approval Date: w`� CITY OF �;u.. FAYETTE'VILLE ARKANSAS MEETING OF APRIL 5, 2022 TO: Mayor and City Council FROM: Paul Becker, Chief Financial Officer DATE: March 18, 2022 CITY COUNCIL MEMO SUBJECT: Staff recommends establishing a Fayetteville Non-profit Corporation Assistance Program RECOMMENDATION: The administration requests the City Council's approval to establish a Fayetteville Non-profit Corporation Assistance Program to reimburse non -profits for losses incurred during the pandemic period and to approve a budget adjustment of $100,000 from the ARPA (American Recovery Plan Act) fund. BACKGROUND / DISCUSSION: The Administration has developed a plan for non-profit corporations in Fayetteville to apply for ARPA funds as a sub -grantee via a City portal. It has become apparent that certain small non- profit corporations need the ability to apply for economic losses incurred during the corona virus pandemic. The City Council has recognized that need and has requested the City Administration develop a system to meet the needs of those non-profit corporations in Fayetteville. The Administration has developed a program to address that need which would provide for individual non-profit loss requests up to $5,000, which could be administratively approved. BUDGET/STAFF IMPACT: The Administration is requesting a $100,000 appropriation for this program Attachments: Staff Review form, Staff Memo, Budget Adjustment Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar) Budget Year Division Adjustment Number Non -Departmental (800) 2022 /Org2 Requestor: Kevin Springer BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: $100,000 is being requested in the Amercian Recovery Plan Act fund for a Not -For -Profit Assistance Program. RESOLUTION/ORDINANCE COUNCIL DATE: 4/5/2022 LEGISTAR FILE ID#: 2022-0264 KP,vLwSpr � 311812022 3:33 PM Budget Director Date TYPE: D - (City Council) JOURNAL #: GLDATE: CHKD/POSTED: TOTAL 100,000 100,000 Increase / (Decrease) Account Number Expense Revenue v.20220113 Proiect.Sub# Project Sub.Detl AT Account Name 2246.800.9714-5315.00 100,000 - 20023 2021 EX Contract Services 2246.800.9246-4999.99 - 100,000 RE Use Fund Balance - Current H:\Budget Adjustments\2022_Budget\CITY COUNCIL\04-05-22\2022-0264 BA ARPA Not For Profit Assitance ProgramAsm 1 of 1 Hello Kit, I have visited with several nonprofit groups, and I would like to make the following amendments to emergency ARPA nonprofit ordinance: Amend the amount of emergency ordinance to $1 mm (from current $100,000) with a close date of 05/15. Amount is based off of knowing that several orgs have dispersed $100,000 of own funds for household assistance due to covid. Plan to have disbursement ongoing with 14-day turnaround. The amendment is addressing questions in bold: For the beneficiaries, prioritize the disproportionate census tracts (South Fayetteville). Show the financial impacts with documented evidence of lost revenue/donations, staff unable to be paid, bills not paid, and expenditures out of pocket. • Intake - 0 Who to do this? • Yolanda's department? Would city departments need any additional resources to be able to process the applications in a timely manner? What criteria will staff use to screen applicants? 0 Acceptable forms of showing loss • Past due bills, receipts, previous annual fundraiser events that did not occur, records of staff working without pay, any document showing loss 501 or fiscally sponsored organization Criteria not needed that are on current program requirements: • No audit needed • SAM # not needed • Timeline of turnaround 0 2 weeks 0 Does every application need to go through the council? • Once council approves $1 mm ceiling, staff reviews and if the org meets criteria, then they can be awarded funds immediately • Would the bundled approvals need to come to city council each week to be approved? • Would cause a delay in payment to orgs. • Would council need to hear about every application in detail or would a summary suffice if approval needed through council. Communicate to the public 0 What approval process looks like from start to finish. 0 Indicate to the public, who reviews the applications and where to go if there are questions that come up. If not approved 0 If it is indicated to an org that they do not meet criteria. Then what? • How to help them to get into compliance? • What follow up would happen for the org to indicate the areas of deficiency? How to appeal the decision and try again?