Agenda Item
City Council
Item #: 3.4. 8/22/2023 File #: 23-0516
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Russell Bunim, Community Development Director
1. SUBJECT
Agreement with Michael Baker International for Community Development Block Grant, HOME Investment Partnerships Program, general grant, and housing management consulting services.
2. SUMMARY
The Agreement with Michael Baker International will provide continued support for the Community Development Block Grant, HOME Investment Partnerships Program, housing affordability period compliance monitoring, and federal grants administered and managed by the Community Development Department.
3. RECOMMENDED ACTION
1. Authorize the appropriation of $15,000 from the Low and Moderate Income Housing Asset Fund (921) unreserved fund balance to expenditure account number 100.6001.51670.00000 - Other Professional and Consulting Services.
2. Approve the agreement with Michael Baker International for Community Development Block Grant, HOME Investment Partnerships Program, housing management, and general federal grant support in the amount of $140,000; and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
Total expenditure for this agreement is $140,000 and will be funded through Community Development Block Grant (310), HOME (317), Low & Moderate Income Housing Asset Fund (921), 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
The U.S. Department of Housing and Urban Development (HUD) provides grants to states, cities, and counties on an annual basis to provide housing support and uplift communities. One of the grants received by the City is the Community Development Block Grant (CDBG) used to provide suitable environments through economic opportunities for low and moderate income persons.
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Item #: 3.4. 8/22/2023 File #: 23-0516
suitable environments through economic opportunities for low and moderate income persons.
Another grant is the HOME Investment Partnerships Program (HOME) used to implement housing strategies designed to increase homeownership and affordable housing.
Due to the stringent requirements for the use of CDBG and HOME funds, Michael Baker International, Inc. (MBI) was retained in 2021 to assist in the reporting, monitoring, and compliance of HUD rules. While staff has been assuming many of the functions that MBI assisted with in the past fiscal years, this agreement will extend MBI’ssupport of reporting, monitoring, and compliance in the new fiscal year as a continued resource to ensure that any updates to HUD rules continue to be followed, current project support continues, and staff is kept informed of changes in program regulations.
In addition, this agreement also covers:
1. Services for the development of specialized documents and studies required for the use of HOME funding by prospective applicants looking to develop affordable housing projects in the City;
2. Monitoring assistance to City departments involved in the management of CDBG funded projects to ensure compliance with Davis Bacon;
3. Assist staff with the implementation of software aimed at streamlining the application process and compliance monitoring to a paperless based system;
4. Provide support for the development of the 2025-2029 Consolidated Plan. The Consolidated Plan is the City’s five-year strategic plan for the anticipated CDBG and HOME funding received within that period;
5. Assist staff with the development of a Tenant Based Rental Assistance Program (TBRA) that staff will return to Council at a later date for consideration.
Special Grant Assistance
MBI is also assisting with the reporting and compliance requirements for special purpose grants received from HUD, including the:
1. CDBG Coronavirus Aid, Relief, and Economic Security (CDBG-CV). CDBG-CV funding is for the preparation, prevention, and response to the coronavirus. To date, CARES funds have been used for business assistance and activities addressing homelessness.
2. HOME American Rescue Plan (HOME-ARP). The purpose of HOME-ARP is to reduce homelessness and promote housing stability. The HOME-ARP Plan approved by the City and HUD is focused on providing supportive services and resources to those experiencing homelessness and other vulnerable populations.
MBI also has experienced staff familiar with Successor Agency procedures and activities related to housing. As such, MBI is providing consulting and assistance with compliance during the affordability period of developments funded with former Redevelopment Agency.
Request for Proposals
The City requested written proposals from three consultants offering specialized services in grant administration in July 2021 to assist the City with the administration of grant funding and implement best practices. MBI was awarded the contract at the time based on qualifications, cost, and references.
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Item #: 3.4. 8/22/2023 File #: 23-0516
Staff recommends retaining the services of MBI for another year in order to ensure continuity with current ongoing projects and review of procedures in place. Additionally, MBI has become familiar with the projects, programs, procedures, and ongoing needs of the City. If the City were to retain the services of a different consultant at this time, delays would occur, as well as additional costs as the new consultants take time to learn the needs of the City.
Staff recommends approving the agreement with MBI to assist with the reporting, monitoring, and compliance of any HUD and HCD grants received, as well as advise on general grant administration as grants become available.
7. ATTACHMENTS
· Agreement with Michael Baker International
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