CITY COUNCIL
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: June 15, 2026
Report #: 2603-6139
TITLE
Approval of Professional Services Contract Number C26196545 with Michael Baker International (MBI) for $116,000 in FY 2027 and a Not-to Exceed Amount of $464,000 to Provide Administration and Consulting Services for the City’s Community Development Block Grant (CDBG) Program for a Term of Four-Years Through June 2030. CEQA Status: Exempt in Accordance with CEQA Guidelines Section 15061(b)(3).
RECOMMENDATION
Staff recommend that the City Council approve and authorize the City Manager or their designee to execute Contract No. C26196545 with Michael Baker International (MBI) to provide administration and consulting services for the City’s Community Development Block Grant (CDBG) Program for a term of four-years and a total amount-not-to-exceed $464,000.
EXECUTIVE SUMMARY
On January 13, 2026, a Request for Proposals (RFP) was posted on the OpenGov Portal for administration and consulting services for the City’s Community Development Block Grant (CDBG) program. The solicitation period was held for 38 days, with proposals due on February 20, 2026. The City received proposals from three firms: 1) Michael Baker International (MBI) 2), MVN, LLC, and 3) RFM Consulting.
After a thorough review of the proposals, MBI was selected based on their extensive CDBG- specific experience and overall quality of their proposal. MBI addressed all the requirements outlined in the RFP.
BACKGROUND
The CDBG program is a federal program that provides funding to local and state governments for community development activities. The program was created by the Housing and Community Development Act of 1974 and is administered by the Department of Housing and Urban Development (HUD). The primary objective of the CDBG program is to provide affordable
housing, improve living conditions, and create economic opportunities for low- and moderate- income households. The program provides grants to eligible communities to support a wide range of activities, including infrastructure development, public facilities and services, and job creation.
The Planning and Development Services Department does not have the staffing resources needed to fully manage the CDBG program. The CDBG program regulations and requirements are complex and require a thorough understanding of federal regulations, program guidelines, and reporting requirements. The consultant administering the program ensures compliance with these requirements, manages the grant budget, and monitors the progress of the funded projects. In addition, the consultant is expected to have knowledge of best practices in community development, including affordable housing development, economic development, and infrastructure improvements.
Since November 2021, the City has been relying on consultant services to administer the CDBG program. Prior to this time, the City had a part-time staff position fulfilling this role augmented with ongoing consultant support. Due to the limited availability of specialized CDBG expertise within the City’s part-time staffing pool, the City transitioned to a consultant-led model to ensure consistent and compliant program administration. MBI assisted the City prior to the departure of the CDBG staff specialist, and the firm has continued to support the City’s CDBG program, and expanded its scope to a comprehensive program management role. Pivoting to professional services also addressed concerns over key person risk as well. With the selection of MBI, administration of the CDBG program will continue uninterrupted.
ANALYSIS
Approval of this contract will provide the City with continuity of services for three-years with an option to extend for a fourth year.
Procurement Process
An RFP for the project was posted on the OpenGov portal, the City’s eProcurement platform.
The solicitation period was for 38 days and closed on February 20, 2026. Staff received three proposals for evaluation.
Table 1: Summary of Request for Proposal
Proposal Description RFP 196545 CDBG Administration Services Proposed Length of Project 2 Years*
Number of Vendors Notified 3,744
Number of Proposal Packages Downloaded 42
Total Days to Respond to Proposal 38
Pre-Proposal Meeting No
Pre-Proposal Meeting Date NA
Number of Proposals Received 3
Proposal Price Range $6,100 - 240,000
Public Link to Solicitation https://procurement.opengov.com/portal/palo- alto-ca/projects/228204
*The RFP listed the anticipated contract term as two years but staff is recommending a four year term.
During the consultant selection process, a heavy emphasis was placed on expertise with CDBG program administration. As noted above, the City relies on a consultant to handle the complex federal regulations and requirements, program guidelines, and reporting requirements to ensure compliance with annual funding allocations and grants. MBI’s proposal met the evaluation criteria identified in the RFP and, following interviews with the top-ranked firms (MBI and MVN, LLC), MBI was identified as the best candidate to assist the City based on its experience with CDBG procedures, consultant team member capacity, and technical expertise in CDBG program administration. MBI has established experience with CDBG administration and submitted a comprehensive proposal that fully addresses service requirements.
A four-year CDBG Administration and Consulting contract provides more continuity and reduces the administrative burden on staff compared to a two-year agreement. With a longer contract term, staff avoid frequent procurement cycles, contract negotiations, and onboarding, allowing more time to focus on program compliance. The CDBG Administration and Consulting contract is funded entirely through CDBG administrative funds and does not impact the City’s General Fund or other local resources. City staff continues to closely manage the contract through regular coordination, work product reviews, and expenditure monitoring to ensure alignment with federal requirements and local priorities.
For additional details on the services to be provided by MBI, please see Attachment A.
FISCAL/RESOURCE IMPACT
There are no anticipated impacts to the City’s general fund with the approval of this contract. The administration of the CDBG program has historically been funded by the CDBG entitlement grant and this contract with MBI will continue to be funded by the CDBG federal funding as an allowable administrative expense.
The proposed contract would provide CDBG administration services for up to four-years, in an amount not to exceed $464,000. Funding for subsequent years of the contract is subject to the annual appropriation of funds through the annual budget process.
ENVIRONMENTAL REVIEW
The approval of an agreement for administrative and consulting services is exempt from environmental review pursuant to CEQA Guidelines Section 15061(b)(3), the common sense exemption, because it will not result in a direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS
Attachment A: Michael Baker International, Contract C26196545 APPROVED BY:
Jonathan Lait, Planning and Development Services Director