RESOLUTION NO. 23-___
Resolution of the City Council of the City of Hercules AuthorizING THE CITY MANAGER To Contract With RSG, INC. AND APPROVING A BUDGET APPROPRIATION OF $61,500 for THE HOUSING LOAN ADMINISTRATION WHEREAS, the former Hercules Redevelopment Agency issued loans form its Low-and Moderate-Income Housing Fund and non-housing redevelopment fund; and WHEREAS, the City did not elect to become the Housing Successor to the Former Agency upon the dissolution of redevelopment in 2012; and WHEREAS, the loans were supposed to be transferred to the Contra Costa County Housing Authority (“Housing Authority”), which became the Housing Successor by operation of law. The Housing Authority refused the transfer of Housing Assets; and WHEREAS, the City staff has administered loan repayments on a minimal, case-by-case basis but has not had the staff resources needed to track compliance with all loan payment requirements; and WHEREAS, The City has collected over $4.9 million in loan repayments, and outstanding loans have a balance due of approximately $3.9 million; and WHEREAS, the City Council has adopted the FY 2023-24 Budget on June 13, 2023, representing the financial plan for conducting the affairs of the City of Hercules; and WHEREAS, staff is proposing to amend the Housing Fund budget to include expenditure appropriations of $61,500 for Housing Loan Administration; and WHEREAS, the proposed agreement will assist the City in administering housing loans issued by the former Hercules Redevelopment Agency. Although the City awaits a response from the Contra Costa County Housing Authority to formally declare the City as Housing Successor, the City has received increased inquiries and needs assistance responding to requests; and WHEREAS, the City Council has considered the report and recommendations of the City Manager on the budget amendments and has determined that the budget amendments and proposed agreement are both fair, appropriate, and warranted.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Hercules as follows:
Adopt a resolution authorizing the City Manager to execute an agreement for an amount not to exceed $61,500 with RSG, Inc for housing loan administration services; and Amend The FY 2023-24 Budget Appropriation by $61,500 to pay for the associated services.
The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 8th day of August 2023, by the following vote of the Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________
Alexander Walker-Griffin, Mayor
ATTEST:
Eibleis Melendez, City Clerk