Agenda Item
City Council
Item #: 3.15. 7/12/2022 File #: 22-0402
TO: Honorable Mayor and Members of the City Council
THRU: Rob Houston, City Manager
FROM: Susan Galvan, Interim Community Development Director
1. SUBJECT
Appropriation and allocation of funds under the HOME Investment Partnerships Program American Rescue Plan and approval of agreement with Michael Baker International for assistance in the development of the allocation plan for use of the funds.
2. SUMMARY
A request to allocate $82,759.30 in HOME Investment Partnerships Program American Rescue Plan set aside allowance for administration and planning of the allocation plan for use of the funds, and approve an Agreement with Michael Baker International for assistance in the development of the plan.
3. RECOMMENDED ACTION
1. Accept into the City’s revenue budget $82,759.30 in HOME Investment Partnerships Program American Rescue Plan funds from the U.S. Department of Housing and Urban Development into revenue account number 317.0000.45120.30206, Federal HUD Grants - HOME-ARP Grant.
2. Authorize the appropriation of $22,759.30 from the HOME Fund (317) unreserved fund balance to expenditure account number 317.9640.50002.30206 - Regular Salaries - Misc - HOME -ARP Admin.
3. Authorize the appropriation of $60,000 from the HOME Fund (317) unreserved fund balance to expenditure account number 317.9640.51670.30206 - HOME-ARP Consulting Services.
4. Approve an Agreement with Michael Baker International, Inc. in the amount of $60,000 for consulting services in the development of the HOME-ARP allocation plan; and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The total expenditure for this Agreement and administration allowance is $82,759.30 and will be funded through HOME (317).
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.
Goal 4: Provide outstanding public service
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Item #: 3.15. 7/12/2022 File #: 22-0402
b: Provide facilities and services to meet customer expectations.
6. DISCUSSION AND BACKGROUND
The American Rescue Plan (ARP) Act of 2021 appropriated $5 billion to qualifying jurisdictions through the HOME Investment Partnerships Program (HOME) to provide housing, services, and shelter to individuals experiencing homelessness and other vulnerable populations. On September 20, 2021, the U.S. Department of Housing and Urban Development (HUD) notified the City that it would be receiving $1,655,186 to use towards a plan to reduce homelessness and increase housing stability.
Before the City is able to access the HOME-ARP funds, an allocation plan outlining the use of funds must be completed and approved by HUD. To assist with the development of the plan, HUD authorized 5% of the awarded amount, or $82,759.30, to be set aside and made available to the City for this purpose.
As part of the planning and development of the plan, staff is requesting the approval of an Agreement with Michael Baker International, Inc. (MBI) for $60,000 to provide consulting and assistance during the process. The balance of the funds will be used to off-set City staff costs in the process.
Once an allocation plan is drafted, staff will return to the City Council for direction and approval of the plan before submitting it to HUD for final approval.
7. ATTACHMENTS
· Transmittal Letter
· Professional Services Agreement
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