Title
Authorization to Enter into Contract and Accept Emergency Assistance CARES Act Funding from Arizona Community Action Association dba Wildfire (Ordinance S-46799)
Description
Request authorization for the City Manager, or his designee, to enter into a contract and accept emergency assistance Coronavirus Aid, Relief and Economic Security (CARES) Act funding from the Arizona Community Action Association dba Wildfire (Wildfire) in the amount of $2,000,000 for the period of June 1, 2020 through Dec. 30, 2020. Further request authorization for the City Treasurer to accept, and the City Controller to disburse, all funds related to these items. There is no impact to the General Fund.
Report
Summary
The first draft of a strategic plan for the City of Phoenix's $293 million Coronavirus Relief Fund (CRF) was updated based on discussion at a City Council Policy Session held April 30, 2020. Federal guidance relative to the CRF allows funds to cover the following: 1) costs incurred due to the COVID-19 public health emergency; 2) costs that were not accounted for in the budget adopted before March 2020; and 3) costs incurred between March 1, 2020 and Dec. 30, 2020.
On May 5, 2020, City Council provided further direction on a strategy, proposed resource allocation, program development, and timing implementation for a utility and rent/mortgage assistance program for residents impacted by the COVID-19 pandemic. The intent of the residential utility and rent/mortgage assistance program is to reduce the economic burden on residents due to the COVID-19 downturn. This program may also focus on vulnerable populations, in an effort to ensure barriers and obstacles to these critical services are removed and can be accessed in a more streamlined fashion. The program is aligned with the City Manager’s guiding principles and strategic plan to deploy CRF.
As such, staff recommended awarding $22 million to Wildfire due to its ability to provide utility, rent and mortgage assistance services of this scope and scale during this state of emergency through its existing network. As the designated Community Action Agency for the City of Phoenix, the Human Service Department was, in turn, awarded $2 million by Wildfire to administer utility, rent and mortgage assistance to individuals and families impacted directly by the COVID-19 pandemic. Households eligible to receive assistance must be able to document that their current financial hardship is due to COVID-19. The flexibility of the CARES Act funding will allow the City of Phoenix to reach a broader spectrum of Phoenix residents and reduce the impact of COVID-19.
Contract Term
The term of the contract will begin June 1, 2020 through Dec. 30, 2020 and may be extended based on continuous need and available funding. Any extension term may be exercised by the City Manager or his designee.
Financial Impact
There is no impact to the General Fund.
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Human Services Department.