REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:David Mann, Acting City Attorney
Date:August 26, 2025
Subject:Client Services Agreement with Michael Baker Inc. for wage compliance in connection with ARPA Loan for Mary McDonald Riley Street Project Recommendation
Approve and authorize the City Manager to execute a Client Services Agreement with Michael Baker, Inc. in the amount of $88,690 for wage compliance in connection with the ARPA Loan for the Mary McDonald Riley Street Project in such final form as approved by the City Attorney.
Background
The City has taken the lead on developing a sixteen (16) unit rental project for seniors, including fifteen (15) affordable units and one manager unit, situated on approximately 0.53 acres of City- owned land located at 200 N. Riley Street, in the City of Lake Elsinore, and known as the Mary McDonald Riley Street Apartments, formerly the Riley Senior Apartments (Project), also identified as Assessor’s Parcel Number 374-162-063.
The City and the County of Riverside entered into that certain Loan Agreement for the Use of American Rescue Plan Act (ARPA) Funds dated as of October 1, 2024, in the amount of Five Million Dollars ($5,000,000) (ARPA Loan), providing for a portion of the construction financing for the Project.
Discussion
The City is about to start construction of the Project and a condition of the withdrawal of the ARPA Loan funds is that the City demonstrates that it has engaged a qualified professional firm to review and monitor Davis Bacon and/or prevailing wage compliance for all submissions of contractor certified payrolls to the County. Additionally, the City must provide verification that its “Developer Associates” are not debarred or otherwise disqualified from receiving federal funds with the “Excluded Parties Listing System” and provide a list of such Developer Associates and evidence of the search results of each Developer Associate.
Client Services Agreement with Michael Baker Inc. for wage compliance
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The City has an ongoing relationship with Michael Baker, Inc. (MBI) and has been satisfied with its services in the past. MBI has the staffing and expertise to provide the wage compliance services required by the ARPA Loan. The City requires the MBI services provided for in the Client Services Agreement to be able to make draws from the ARPA loan to fund the construction of the Project.
Fiscal Impact
No additional fiscal impact. MBI’s fees will be paid as part of the approved funding for the Project.
Attachments
Attachment 1 - Agreement and Proposal