CITY OF LAGUNA NIGUEL
CITY COUNCIL AGENDA ITEM
To: Honorable Mayor and Council Members
FROM: Jonathan Orduna, Community Development Director
DATE: September 5, 2023
SUBJECT: Approval of Amendment No. 1 to the Professional Services Agreement with Mike Linares, Inc.
RECOMMENDATION
Staff recommends that the City Council:
1. Approve Amendment No. 1 to the Professional Services Agreement with Mike Linares, Inc. to provide additional grant management services in the amount of $30,000 for a total not to exceed amount of $146,500 through June 30, 2025; and,
2. Authorize the City Manager to execute Amendment No. 1 to the Professional Services Agreement between the City and Mike Linares, Inc., and future amendments to the agreement, subject to the City Attorney making non- substantive changes.
BACKGROUND
On July 1, 2022, the City Council approved a Professional Services Agreement with Mike Linares, Inc. to provide grant management services, including the Community Development Block Grant (CDBG), in a total not to exceed amount of $116,500, through June 30, 2025.
On August 30, 2022, the City was awarded additional grant funding through the State's Permanent Local Housing Allocation (PLHA) program in the amount of $391,868 for two program years. Staff anticipates being eligible to receive additional PLA funds in the estimated amount of $176,000 for a third year of the program.
Pursuant to the provisions of the PLHA grant, the California Department of Housing and Community Development (HCD) provides grantees with a total administration allocation of five percent (approximately $30,000). With the addition of PLA grant funding, staff is seeking to add the necessary PLHA grant management services to the existing Professional Services Agreement with Mike Linares, Inc. and to increase the existing not to exceed total by $30,000.
ANALYSIS
The City has consulted with Mike Linares, Inc. to provide grant management services since July 2019. During this time, Mike Linares, Inc. has fostered strong working relationships with local public services providers and staff, in addition to comprehensive and unique knowledge of the City's current grant program administration. For these reasons, staff solicited a proposal from Mike Linares, Inc. to add PLHA grant administration services to their scope of work. Potential services include but are not limited to, subrecipient grant management, technical support, submission of annual reports such as the annual accomplishment report, and facilitation of communications between the City and HCD staff. Associated costs for these administration services are fully funded by the PLHA grant.
Based on the above, staff recommends the approval of Amendment No. 1 to the Professional Services Agreement with Mike Linares, Inc. (Attachment A) to run through the completion of the contract term of June 30, 2025, for a new total not to exceed amount of $146,500. The additional $30,000 allocation is the allowable PLA five percent administrative grant cap.
ALTERNATIVES CONSIDERED
The City Council may decide not to approve the amendment. This alternative is not recommended as it would result in delays in grant administration and public services.
FISCAL REVIEW
No new appropriations are requested in connection with the approval of the recommended amendment because the additional $30,000 allocation for grant management services is directly funded through PLHA grant funds, not the City general fund.
LEGAL REVIEW
The City Attorney has reviewed and approved the amendment, and this staff report as to form.
CONCLUSION
Staff recommends that the City Council:
1. Approve Amendment No. 1 to the Professional Services Agreement with Mike Linares, Inc. to provide additional grant management services in the amount of $30,000 for a total not to exceed amount of $146,500 through June 30, 2025; and,
2. Authorize the City Manager to execute Amendment No. 1 to the Professional Services Agreement between the City and Mike Linares, Inc., and future amendments to the agreement, subject to the City Attorney making non- substantive changes.
ustin Marter for: Lade Knit
Vamara S. Letourneau Scott C. Smith
City Manager City Attorney
other len
Jonathan Orduna Hannah Tamaddon
Community Development Director Management Analyst
Attachments:
A. Amendment No. 1 to the Professional Services Agreement with Mike Linares, Inc.
ATTACHMENT A
Amendment No. 1 to the Professional Services Agreement with Mike Linares, Inc.
AMENDMENT NO. 1 TO AGREEMENT FOR PROFESSIONAL SERVICES
(COMMUNITY DEVELOPMENT DEPARTMENT)
Mike Linares, Inc.
This Amendment No. 1 to Agreement for Professional Services ("Amendment No. 1"') is made and entered on July 1, 2023, by and between the City of Laguna Niguel, a California municipal corporation, hereinafter the "City", , and Mike Linares, doing business as Mike Linares, Inc., a California Stock Corporation, hereinafter the "Consultant".
RECIIALS:
City and Consultant entered into that certain Professional Services Agreement dated July 1, 2022 for the provision of Community Development Block Grant Program (CDBG) management services, including general CDBG administration, preparation of the Department of Housing and Urban Development's (HUD) required documents and other tasks, ( the "Agreement").
Il. The City requires additional grant management services, which Consultant has agreed to provide, in order to administer the Permanent Local Housing Allocation Grant Program (PLHA), including subrecipient grant management, preparation of accomplishment reports, and other general PLHA grant administration tasks.
The City and Consultant now desire to amend the Agreement in order to expand the Scope of Services and increase the total amount of compensation under the Agreement.
AGREEMENI:
NOW, THEREFORE, in consideration of the foregoing premises and the mutual promises and covenants herein contained, the parties hereto agree as follows:
1. Scope of Services. Exhibit "A" of the Agreement is hereby amended to add the services set forth in Exhibit "A-1" to this Amendment No. 1, attached hereto and incorporated herein by reference
2. Payment for Services. Section 4 of the Agreement is hereby amended in its entirety to read as follows:
"City agrees to pay Consultant for all services under the Agreement at the rates and in the manner set forth in Exhibit "A", the Scope of Services, for a total not to exceed One Hundred Forty SixThousand Five Hundred Dollars ($146,500) over the term of the Agreement."
3. Remaining Provisions. Except as specifically set forth in this Amendment No. 1, the remaining provisions of the Agreement shall continue in full force and effect. [Signatures on following page]
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 as of the date first above written.
"CITY"
CITY OF LAGUNA NIGUEL
Tamara S. Letourneau
City Manager
ATTEST:
Marissa J. Asistin
City Clerk
APPROVED AS TO FORM BY THE
CITY ATTORNEY FOR THE
CITY OF LAGUNA NIGUEL,
CALIFORNIA
Scott C. Smith
City Attorney
"CONSULTANT"
Mike Linares, Inc
a California Stock Corporatior
By:
Print Name:
Title:_
EXHIBIT A-1
SCOPE OF SERVICES
PROVIDING MANAGEMENT & CONSULTING
SERVICES FOR LOCAL GOVERNMENT
MIKE LINARES, INC.
CONSULTING SERVICES
July 6, 2023
Ms. Hannah Tamaddon, Management Analyst
Community Development Department
City of Laguna Niguel
30111 Crown Valley Parkway
Laguna Niguel, CA 92677
Dear Ms. Tamaddon:
I am pleased to submit this proposal to assist the City of Laguna Niguel in administering Permanent Local Housing Allocation (PLHA) funds, as set forth by the CA Housing and Community Development Departments' Permanent Local Housing Allocation Final Guidelines.
As we discussed, PLHA grant administration services will focus on subrecipient grant management, technical support, preparation of annual reports such as the annual accomplishment report, facilitation of communication between the City and HCD staff, and other general PLHA grant administration tasks.
The proposed fee for PLHA grant management services is $110/hour, for a total not to exceed amount of $30,000, until June 30, 2025.
Please let me know if you need additional information or clarification regarding this proposal. I appreciate your consideration.
Sincerely,
Mike Linares
President
P.O. Box 3913 SAN CLEMENTE, CA 92672