Title
Amend CDBG Public Facilities Grant Recipient Ordinance (Ordinance S-43647)
Description
Request to amend Ordinance S-42495 to authorize contract award to UMOM New Day Centers, Incorporated (UMOM) instead of Tumbleweed Center for Youth Development (Tumbleweed) due to bankruptcy proceedings. Also request authorization to amend the original contract term of July 1, 2016 to Dec. 31, 2017 to July 1, 2016 to July 1, 2018.
Report
Tumbleweed was a recipient of a Public Facilities 2016-2017 Community Development Block Grant (CDBG); the organization was awarded $49,254 to rehabilitate the Young Adult Program - Earll Location, located at 2344 E. Earll Drive, Phoenix, Arizona 85016. In December 2016, Tumbleweed filed for Chapter 11 bankruptcy protection. Recently, the U.S. Bankruptcy Court issued an order permitting Tumbleweed to transfer its assets, including the Earll Location, and assign its outstanding contractual interests to UMOM. Accordingly, Ordinance S-42495 must be amended in order to authorize the City Manager, or his designee, to enter into a CDBG, Public Facilities for Non-Profits contract with UMOM, or its permitted assigns, and continue to fund the project. All project activities in the proposal originally submitted by Tumbleweed, as well as all other terms of the Ordinance, will remain unchanged.
Contract Term
The amended contract term is July 1, 2016 to July 1, 2018.
Financial Impact
This item is funded by Community Development Block Grant funds; there is no impact to the General Fund.
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Neighborhood Services Department.