ADMINISTRATIVE REPORT
MEETING DATE: March 25, 2026 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Jennifer M. Byers, Economic & Community Development Director DATE: March 11, 2026
SUBJECT: Termination of Agreement No. 2023-007 with Staples Energy for Home Repair and Weatherization Programs
RECOMMENDATION:
Staff recommends termination of agreement.
BACKGROUND:
On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law, establishing the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program to assist state, local, and Tribal governments in responding to the public health and economic impacts of the COVID-19 pandemic.
The U.S. Department of the Treasury issued regulations governing the use of SLFRF funds on May 10, 2021, and adopted the final rule with amendments on January 27, 2022. Under these regulations, eligible recipients may use SLFRF funds to address the COVID-19 public health emergency and its negative economic impacts, including aiding with household repairs. The City received a proposal from Staples Energy to administer a Home Repair and Weatherization Program. The program is designed to assist income-eligible households that experienced negative economic impacts due to the COVID-19.
On January 11, 2023, the City entered into Agreement No. 2023-007 with Staples Energy in the amount of $500,000 to implement the City’s Home Repair and Weatherization Program. Section 6 of the Agreement provided that either party may terminate the Agreement with written notice, ten days before the termination is effective. For the past 24 months, Staples Energy has completed 28 home repair projects. However, staff turnovers and business changes have led to a mutual understanding that the contractor does not have the capacity to complete the scope of work. Therefore, staff requests that City Council terminate Agreement No. 2023-007.
FISCAL IMPACT:
This program was funded by ARPA; remaining funds will be brought back to City Council for direction at a later meeting.
COUNCIL GOAL:
Community Character & Quality of Life
ATTACHMENTS:
1. Agreement No. 2023-007 & 2023-007(1)
2. Signed Termination Notice