201 S. Anaheim Blvd.
10th Floor
Anaheim, CA 92805
Tel: (714) 765-4300
Fax: (714) 765-4630
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: JULY 11, 2023
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: FIRST AMENDMENT TO PROFESSIONAL SERVICES
AGREEMENT FOR CONSULTING SERVICES WITH MICHAEL
BAKER INTERNATIONAL, INC
ATTACHMENT (Y/N): YES ITEM # 07
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion, approve the First Amendment to Professional Services Agreement by and between the City of Anaheim and Michael Baker International, Inc., to increase the not-to-exceed amount from $25,000 to $50,000 for on-call project management and related consulting services; and authorize the Housing & Community Development Department Director, or designee, to execute and administer the agreement on behalf of the City.
BACKGROUND:
The Housing & Community Development Department (Department) receives several Federal and State grants on an annual basis that support the delivery of programs and services for Anaheim residents. Among those grants are Federal entitlement grants from the Department of Housing and Urban Development (HUD) that include the Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), Home Investment Partnerships Program (HOME), Housing Opportunities for Persons with AIDS (HOPWA), and Coronavirus Aid, Relief, and Economic Security (CARES) Act funds.
To ensure grant and program compliance, HUD requires that recipients of the grants review performance reports, audited financial statements, information in electronic databases, and other documentation submitted by the program participants. Monitoring is an integral management control technique and a HUD requirement. Monitoring provides information about program participants that is critical for making informed decisions about program effectiveness and management efficiency. It also helps in identifying instances of fraud, waste, and abuse. It is the principal means by which the Department:
A. ensures that HUD-funded programs and technical areas are carried out efficiently, effectively, and in compliance with applicable laws and regulations; First Amendment to Professional Services Agreement with Michael Baker International, Inc.
July 11, 2023
B. assists program participants in improving their performance, developing or increasing capacity, and augmenting their management and technical skills; and C. stays abreast of the efficacy of HUD grant programs and technical areas within the communities these programs serve.
In addition to monitoring efforts done throughout the year by City staff, the Department sometimes requires the provision of professional staffing services related to the administration of Federal and State programs and grants. Presently, professional staffing services are being provided by Michael Baker International, Inc. on an as-needed basis to monitor the Federal entitlement grant funds received by the City.
In May 2022, the City Council approved the Professional Services Agreement with Michael Baker International, Inc. (Original Agreement) in an amount not-to-exceed $25,000, for professional staffing services related to the administration of Federal and State programs and grants. During the first term of the Original Agreement the firm provided substantial support for City staff with their experience in program compliance monitoring and comprehensive understanding of HUD program requirements. The monitoring of multiple grants including newly received Coronavirus Aid, Relief, and Economic Security Act (CARES Act) grants would have required a significant diversion of staff from other priorities. Pursuant to Section 3 of the Original Agreement, the City exercised the first of two one-year renewal terms extending the term of the Agreement through May 31, 2024.
DISCUSSION:
Although time remains on the contract term, the not-to-exceed limit is close to being exhausted for the current contract year. Therefore, as required by the City’s Administrative Regulation 120 (AR 120), this amendment is being brought forth to City Council for approval. AR 120 indicates that “if the combined fees payable to a consultant under multiple contracts and/or agreements exceed $500,000 during any five (5) year period, the agreement that causes this monetary threshold to be exceeded will be placed on the City Council Agenda for approval.”
The need to increase the contract at this time is largely related to the City’s continued involvement in monitoring compliance of an increased number of additional programs and grants as a result of the COVID-19 pandemic. To ensure continuity of service, City staff recommends amending the Original Agreement to increase the Maximum Compensation from $25,000 to $50,000, for the remainder of the term of the Agreement, May 31, 2024.
First Amendment to Professional Services Agreement with Michael Baker International, Inc.
July 11, 2023
IMPACT ON BUDGET:
Funding is available in Housing & Community Development’s Fiscal Year 2023/24 budget.
Respectfully submitted,
Grace Ruiz-Stepter
Director of Housing and Community Development
Attachments:
1. First Amendment to Professional Services Agreement
2. Original Agreement