Explanation
BACKGROUND: This legislation seeks to amend Ordinance No. 2499-2023, an “ordinance to authorize the Director of the Department of Development to enter into a not-for-profit service contract with the Tony R Wells Foundation in an amount not to exceed $500,000.00 to provide fiscal agent and other services as a partner in the City of Columbus Small Business Capacity-Building Micro Grants program; to authorize the advancement of funds on a pre-determined schedule during the term of the agreement; to authorize an appropriation and expenditure within the Job Growth subfund; and to declare an emergency. ($500,000.00)”
After Council approved Ordinance 2499-2023, it was discovered that the Ordinance referred to the Tony R Wells Foundation as a “fiscal agent” instead of a “fiscal manager.” As there is a statutory distinction under City Code, this change will bring the legislation into legal compliance.
Further, this legislation will change the legal agreement with the Wells Foundation from that of a not-for-profit service contract to a grant agreement. This change allows for the program to be executed as was detailed in Ordinance No. 2499-2023, including the advance of all funds to the Tony R Wells Foundation.
Emergency action is requested in order to mitigate any negative impact on the planning processes of small business owner recipients. Due to the size of this grant program, applications are expected to come in quickly. The review committee will make all efforts to process and approve applications in an expedient manner in order to avoid any delay in notifying small business owners. Similarly, the Wells Foundation will quickly process applications to send grants to small business owners as quickly as possible. A delay in this process could create confusion, a sense of unreliability, or a gap in expected funding for small business owners.
FISCAL IMPACT: None
Title
To amend Ordinance No. 2499-2023 to change the term “fiscal agent” to “fiscal manager” and to change the legal agreement type to grant agreement; and to declare an emergency.
Body
WHEREAS, the Tony R Wells Foundation is a national leader in providing nonprofits and start up social entrepreneurs with fiscal management, business plans, organizational structure, social innovation, impact investing, and leadership development; and
WHEREAS, Columbus City Council seeks to promote good paying jobs through the growth of the city’s small businesses and entrepreneurs to promote pathways towards wealth equity, entrepreneurial innovation, and the creation of local jobs; and
WHEREAS, the Small Business Capacity Building Micro Grants program, approved by Council in Ordinance No. 2499-2023, will support many diverse entrepreneurs across Columbus’ communities and industries by propelling them on their path towards growth; and
WHEREAS, an emergency exists in the usual daily operation of the department of Development in that it is immediately necessary to authorize the Director to enter into a grant agreement with the Tony R Wells Foundation in order to quickly respond to needs within the Columbus small business community and to avoid confusion and gaps in anticipated funding for small business owners; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That Section 1 of Ordinance No. 2499-2023 be amended, as follows with additions underlined and deletions struck through:
SECTION 1. That the Director of the Department of Development is authorized to enter into a not-for-profit service contract grant agreement with the Tony R. Wells Foundation in an amount not to exceed $500,000.00 to provide fiscal agent manager and other services as a partner in the City of Columbus Small Business Capacity-Building Micro Grant Program and to authorize the advancement of funds on a pre-determined schedule during the term of the agreement.
SECTION 2. That Ordinance No. 2499-2023, Section 4, is hereby repealed as follows with deletions struck through:
SECTION 4. That this contract is awarded in accordance with the relevant provisions of City Code Chapter 329 relating to not-for-profit service contracts.
SECTION 3. That any other provision of Ordinance No. 2499-2023 in which the legal agreement with the Tony R Wells Foundation is referenced to as a “not-for-profit service contract” is intended to refer to the legal agreement as a “grant agreement” and that any reference to a “fiscal agent” shall be intended to be referred to as a “fiscal manager”.
SECTION 4. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.