Title
Dept./ Agency: Administration/Office of Business Administrator
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Grant Agreement
Purpose: To respond to the public health impact due to the Covid-19 public health emergency.
Entity Name: Ironbound Community Health Center, d/b/a/ Hope and Esperanza Community Health Center
Entity Address: 788 Mount Prospect Avenue, 2nd Floor, Newark, New Jersey 07104
Grant Amount: Not to exceed $1,000,000.00
Funding Source: American Rescue Plan Act of 2021 - Department of Treasury Coronavirus State and Local Fiscal Recovery Funds/Business Unit: NW051, Dept. G21, Div./Proj. ARPU0, Activity A, Account #71280, Budget Ref. B2021
Grant Period: To commence upon full execution of the Grant Agreement
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale (X) Grant ( ) Sub-recipient ( ) N/A
Additional Information:
An initial payment in the amount of $333,333.00 shall be made upon adoption of this Resolution and full execution of the Grant Agreement.
The Grant Funds must be fully expended by December 31, 2023.
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WHEREAS, on or about March 11, 2021, the 117th Congress of the United States and President Joseph R. Biden, officially enacted a $1.9 Trillion Dollar stimulus package, the American Rescue Plan Act of 2021 (“ARPA”), in response to the economic crisis brought on by the ongoing Covid-19 pandemic; and
WHEREAS, on or about May 19, 2021, the City of Newark (the “City”) submitted an electronic portal application to the United States Department of Treasury for the American Rescue Plan Act of 2021 - Treasury’s Coronavirus State and Local Fiscal Recovery Funds (the “Application”), and was notified that the City was being awarded a total amount of $176,667,606.00 (the “Award”); and
WHEREAS, on June 22, 2021, the Municipal Council adopted Resolution 7R1-a(s), authorizing the City’s submission of the Application and the acceptance of the Award; and
WHEREAS, the Award will provide the City support in responding to the impact of Covid-19 and in its efforts to contain Covid-19 on its communities, residents and businesses; and
WHEREAS, Congress’s intent is that funds obtained from ARPA must be spent within the four (4) eligible use categories identified in the Statute: (1) to respond to the public health emergency or its negative economic impacts, including assistance to households, small businesses, and non-profits, or aid to impacted industries such as tourism, travel and hospitality; (2) to respond to workers performing essential work during the Covid-19 public health emergency by providing premium pay to eligible workers; (3) to provide government services to the extent of the reduction in revenue due to the Covid-19 public health emergency relative to revenues collected in the most recent full fiscal year prior to the emergency; and (4) to make necessary water, sewer, and broadband infrastructure investments - and not otherwise; and
WHEREAS, ARPA provides flexibility to the City to determine how best to use the Award to meet the needs of the community and population; and
WHEREAS, on or about February 14, 2022, Ironbound Community Health Center d/b/a Hope and Esperanza Community Health Center (ICHC), submitted a request to the City for financial assistance from the Award the City received pursuant to ARPA, in the amount of One Million Dollars and Zero Cents ($1,000,000.00), to address areas of public health that have been negatively impacted by Covid-19, such as mental health and behavioral health, including increased stress, depression and anxiety, and spikes in substance abuse and systemic public health challenges resulting in disproportionate effects to low-income communities and communities of color; and
WHEREAS, ICHC is a non-profit corporation located in the City of Newark, that provides community-based healthcare; and
WHEREAS, ICHC seeks to maintain and expand a comprehensive healthcare delivery system network that provides quality preventive and primary healthcare, including, but not limited to Primary Medical, Mental Health - MH, Substance Use Disorder - SUD, and Opioid Use Disorder - OUD, supportive services, and enabling services, to all individuals in the City of Newark with emphasis on reaching low-income residents; and
WHEREAS, ICHC aspires to address barriers to health services for the low-income population that have been exacerbated by the Covid-19 pandemic, including, but not limited to high cost of care; inadequate or no insurance coverage; lack of availability of services, such as outreach and transportation enabling service; and lack of culturally competent care for those of minority origin, including Black/African-Americans and Hispanic/Latinos; and
WHEREAS, these barriers to accessing healthcare services, have led to low-income populations experiencing unmet healthcare needs; and
WHEREAS, ICHC provides both face-to-face direct encounter services between a provider and patient, as well as virtual telehealth, and all services are offered regardless of insurance or the patient’s ability to pay, which ensures that individuals have equal access to healthcare and equity in achieving health outcomes in the Newark service area; and
WHEREAS, the need for public health measures to respond to Covid-19 will continue in the months and potentially years to come; and
WHEREAS, this specific use of ARPA funds, granted to ICHC in an amount not to exceed One Millions Dollars and Zero Cents ($1,000,000.00), qualifies as an eligible use, pursuant to the Interim Final Rule issued by the Secretary of the Treasury, Federal Register Vol. 86, No. 93 (the “Interim Final Rule”), under Category One: to respond to the public health emergency or its negative economic impacts, including assistance to households, small businesses, and non-profits, or aid to impacted industries such as tourism, travel and hospitality (“use category”); and
WHEREAS, pursuant to the Interim Final Rule, in order for the City to determine whether the services provided by ICHC is included within this use category City must identify a need or negative impact of the Covid-19 public health emergency and identify how the program, service, or other intervention addresses the identified need or impact; and
WHEREAS, the City recognizes that the Covid-19 pandemic caused significant disproportionate health impacts, such as lack of access to health care, increased behavioral and mental health concerns, and spikes in substances abuse, to low-income communities and people of color due to systemic public health and economic challenges; and
WHEREAS, ICHC is a non-profit health center, providing healthcare services, including, but not limited to preventive and primary healthcare, mental health and substance abuse services, to all individuals within the City of Newark with an emphasis on reaching low-income residents, and said service directly responds to negative public health impacts stemming from the Covid-19 pandemic, and as such qualifies as an eligible use under ARPA; and
WHEREAS, the City desires to provide ICHC a grant in an amount not to exceed One Million Dollars and Zero Cents ($1,000,000.00); and
WHEREAS, pursuant to ARPA and the Interim Final Rule, the City has determined that the eligible use in this instance responds to the disease itself and/or the harmful consequences of the economic disruptions resulting from or exacerbated by the Covid-19 public health emergency.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor of the City of Newark, and/or his designee, the Business Administrator, are authorized to enter into and execute a Grant Agreement with Ironbound Community Health Center d/b/a Hope and Esperanza Community, 788 Mount Prospect, Newark, New Jersey 07104 (“ICHC), in an amount not to exceed One Million Dollars and Zero Cents ($1,000,000.00) (the “Grant”).
2. The Grant to ICHC will be issued from the American Rescue Plan Act of 2021 - Treasury’s Coronavirus State and Local Fiscal Recovery Funds (“ARPA”), accepted and received by the City, pursuant to Resolution 7R1-a(s) adopted on June 22, 2021.
3. Pursuant to ARPA, the Grant to ICHC, qualifies as an eligible use as ICHC is a non-profit healthcare center that provides preventive and primary healthcare services, including, but not limited to medical, mental health and substance abuse services, which helps combat the disproportionate effects to low-income communities and communities of color resulting from systemic public health challenges and exacerbated by the Covid-19 public health emergency.
4. Pursuant to ARPA, the Grant to ICHC responds to the disease itself and/or the harmful consequences of the economic disruptions resulting from or exacerbated by the Covid-19 public health emergency.
5. Upon adoption of this Resolution and full execution of the Grant Agreement, the City will provide an initial disbursement in the amount of Three Hundred Thirty-Three Thousand Three Hundred Thirty-Three Dollars and Zero Cents ($333,333.00).
6. The balance of the Grant shall be disbursed to ICHC on a reimbursement basis, upon the City’s receipt of programmatic and fiscal documentation from ICHC specifying how the Grant is being used, including, but not limited to invoices, to the satisfaction of the City of Newark (“Grant Reporting”).
7. The grant period expires December 31, 2023, and all Grant funds must be expended by said date. ICHC understands that in order to receive the benefit of the full Grant, ICHC must provide all Grant Reporting to the City in a timely fashion.
8. Attached hereto is a Certification of Funds in the amount of One Million Dollars and Zero Cents ($1,000,000.00) from Account Line: Business Unit NW051, Dept.G21 Div/Proj.ARPU0 Activity A- Account #71280 Budget Ref: B2021.
9. The Business Administrator shall file the fully executed Grant Agreement and this Resolution, together with any and all documents relating to the Grant, including, but not limited to Grant Reporting documents, in the Office of the City Clerk.
STATEMENT
Resolution authorizing the Mayor of the City of Newark and/or his designee, the Business Administrator to enter into and execute a Grant Agreement with Ironbound Community Health Center d/b/a Hope and Esperanza Community Health Center, 788 Mount Prospect Avenue, Newark, New Jersey 07104, in an amount not to exceed $1,000,000.00 commencing upon full execution of the Grant Agreement. The grant period expires December 31, 2023.