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CONSIDERATION OF ACCEPTANCE OF A GRANT IN THE AMOUNT OF $520,000 FROM THE AMERICAN RED CROSS EMERGENCY MANAGEMENT DIVISION TO BE USED TO PROVIDE A REBATE PROGRAM OF UP TO $2,500 PER REBATE RECIPIENT FOR SAFE ROOMS IN UP TO 208 SINGLE-FAMILY OWNER-OCCUPIED HOMES WITHIN THE NORMAN CITY LIMITS, APPROVAL OF CONTRACT NO. K-1415-21, AND BUDGET INCREASE FROM SAFE ROOM REVENUE ACCOUNT TO BE APPROPRIATED TO MISCELLANEOUS PASS-THRU REFUND ACCOUNT FOR DISBURSEMENT.
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BACKGROUND: At the beginning of 2014, the City of Norman Fire Department Emergency Management Division submitted a grant application to the American Red Cross requesting up to $520,000 in funds to provide a rebate program, of up to $2,500 per rebate recipient, for safe rooms in up to 208 single family, owner-occupied homes within the Norman city limits. The application was submitted after the American Red Cross contacted the City of Norman inviting the City to apply for a grant in support of project(s) that would benefit individuals, families, and/or communities impacted by Oklahoma tornadoes. Other communities in the metro area, including Cleveland County, Oklahoma City, Oklahoma County, Pottawatomie County, the City of Moore, and Midwest City, are also grant recipients.
The American Red Cross has notified the City of Norman Fire Department Emergency Management Division that the grant request has been approved in the requested amount of $520,000. A map showing the paths of those tornadoes is attached. The areas within the paths of these tornadoes are priority areas for the receipt of grant funds. The eligible homeowners have already been identified through the storm damage assessment process and will be notified of their selection if the grant is approved. The American Red Cross has asked the City of Norman City Council to execute the attached contract, Contract No. K-1415-21, prior to receipt of the grant funds.
It is likely that the City of Norman will receive other grants for storm shelter rebates that will be awarded through the State of Oklahoma. The State of Oklahoma has not yet determined a date for the award of these grant funds.
DISCUSSION: Contract No. K-1415-21 discusses the conditions of the grant and the necessary steps that the City of Norman must take to receive the grant funds. The grant terminates on December 31, 2015. Once a homeowner is notified of approval by the City of Norman, that homeowner will have forty-five days to contract with a safe room vendor and up to one year to complete installation of the safe room. Once the safe room is installed and the proper documentation is provided to the City by the homeowner, the City will provide the homeowner with the rebate funds.
Upon execution of this Agreement, the Red Cross will disburse $130,000 to the City of Norman. Subsequent to this, $30,000 will be disbursed each month beginning December 23, 2014 and ending on December 23, 2015. In order to continue to receive the monthly fund disbursements, the City of Norman is required to submit reports to the Red Cross describing how the grant funds were used during the reporting period and include an accounting of actual expenditures.
In addition, all records pertaining to this grant project must be maintained by the City of Norman for at least three years after the grant process is concluded. Along with these records, the City of Norman must obtain an annual audit by an independent certified public accountant.
In accepting the grant funds, the City of Norman agrees to conduct all activities related to the grant in full compliance with all state, federal, and local laws. Any amendments to this contract must be in writing, and either party may terminate the contract upon thirty days written notice to the other party. By executing the contract, the City of Norman also agrees to indemnify and defend the Red Cross in respect of any and all claims and causes of action in connection with this contract.
The City will record the grant revenues into Other Revenue/Safe Room/Shelter Rebate (account 022-0000-334.13-87) and expenditures into Miscellaneous Services/Miscellaneous Pass-Thru Refunds (account 022-6447-422.47-54).
RECOMMENDATION: If City Council wishes to accept $520,000 in grant funds from the American Red Cross to provide a rebate program of up to $2,500 per rebate recipient, for safe rooms in up to 208 single family, owner-occupied homes within the Norman city limits, staff recommends approval of Contract No. K-1415-21 with the American Red Cross. Staff further recommends that Other Revenue/Safe Room/Shelter Rebate (022-0000-334.13-87) be increased and appropriate $520,000 into Miscellaneous Services/Miscellaneous Pass-Thru Refunds (022-6447-422.47-54).