Agenda Item
City Council
Item #: 3.12. 3/8/2022 File #: 22-0068
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Susan Galvan, Interim Community Development Director
1. SUBJECT
Second Amendment to Agreement with Michael Baker International for Community Development, HOME Investments and Partnerships Program, and special grant administration consulting services.
2. SUMMARY
The City currently has an agreement with Michael Baker International, Inc. to provide Community Block Grant and HOME Investments and Partnerships Program consulting services. The proposed Second Amendment will increase the not-to exceed amount by $120,000 for a total not-to-exceed of $200,000, and broaden the scope of work to include consulting services for special grant administration.
3. RECOMMENDED ACTION
Approve the Second Amendment to agreement with Michael Baker International, Inc. for Community Development Block Grant, HOME Investments and Partnerships Program, and general grant administration consulting services, and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The total expenditure for this amendment is $120,000 and will be funded through the Community Development Block Grant Fund (310), Housing Grant Programs Fund (317), SB-2 Building Homes and Jobs Act Fund (312), Reimbursable Capital Projects Fund (550), and General Fund (100).
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.
6. DISCUSSION AND BACKGROUND
On September 14, 2021, Council approved the First Amendment with Michael Baker International (MBI) to provide reporting, monitoring, and compliance support with the administration of grants received from the U.S. Department of Housing and Urban Development (HUD). The recurring annual grant allocations received from HUD include the Community Development Block Grant (CDBG) and the HOME Investments and Partnership Program (HOME). The CDBG Program is used to support decent housing and suitable environments through economic opportunities for low and moderate City of Orange Printed on 3/3/2022Page 1 of 2
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Item #: 3.12. 3/8/2022 File #: 22-0068
decent housing and suitable environments through economic opportunities for low and moderate income persons. The HOME program is used to implement local housing strategies designed to increase homeownership and affordable housing. MBI has provided key support for these programs while staff transitions the duties left by the former Housing Analyst’sretirement in July and assesses the restructure of the Housing Division.
Expanding on this proposal, a National Environmental Policy Act (NEPA) clearance is being included under HOME consulting services for the proposed Katella Terrace development project, an eligible expense under HOME funds. The project, a 74-unit affordable housing unit for seniors proposed at 1249 E. Katella Avenue, is requesting $200,000 in HOME funds and requires the NEPA clearance in order to qualify. Staff will be coming to Council to commit the HOME funds to the Katella Terrace development project at a later date.
Special Grant Assistance
MBI has been instrumental in assisting staff with reporting and compliance requirements for special purpose grants received from HUD, including the:
· Coronavirus Aid, Relief, and Economic Security (CARES) received for the preparation, prevention, and response to coronavirus. CARES funds to date have been used for business assistance and activities addressing homelessness.
· HOME American Rescue Plan (HOME-ARP) received for housing and continuum of care services for those experiencing homelessness. MBI will be assisting with the development of a plan for the use of funds that is HUD compliant.
Additionally, MBI is assisting with reporting and consulting on grants received from the California Department of Housing and Urban Development (HCD). Grants received from HCD include:
· SB2 Permanent Local Housing Allocation (PLHA) used to address homelessness. · Planning Grant Program (PGP) used for planning ordinance updates. · City Local Early Action Planning (LEAP) used for planning ordinance and specific plan updates.
Furthermore, MBI has experienced staff familiar with Successor Agency processes and activities related to housing. As such, MBI is providing consultation and training to ensure that reporting and compliance is accurate and timely.
Staff recommends approving the Second Amendment to the Agreement with MBI to assist with the management, reporting, and compliance of any HUD and HCD grants, as well as to advise on special grant administration, as grants become available. It is expected that the total cost of the consultant services with MBI will reduce as staff becomes more experienced and knowledgeable with the rules, regulations, and requirements of HUD, HCD, and Successor Agency.
7. ATTACHMENTS
· Second Amendment to Agreement with Michael Baker International, Inc.
City of Orange Printed on 3/3/2022Page 2 of 2
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