Administrative
Report
H.7., File # 24-1450 Meeting Date: 9/3/2024
To: MAYOR AND CITY COUNCIL
From: ELIZABETH HAUSE, INTERIM COMMUNITY SERVICES DIRECTOR TITLE
APPROVE A ONE YEAR AGREEMENT WITH MNS ENGINEERS, INC. FOR COMMUNITY
DEVELOPMENT BLOCK GRANT CONSULTING SERVICES IN AN AMOUNT NOT TO EXCEED $60,802 USING HUD ENTITLEMENT FUNDS FOR THE TERM SEPTEMBER 4, 2024 TO SEPTEMBER 3, 2025
EXECUTIVE SUMMARY
The City receives federal funding from the United States Department of Housing and Urban Development (HUD) to provide a variety of programs and services for the community. This funding is dispersed through HUD’s Community Development Block Grant (CDBG) program and has clear guidelines and requirements for all participating jurisdictions.
The City has an existing agreement with Michael Baker, Inc. (MBI) to administer the City’s CDBG program. Recently, the core team at MBI assigned to the City’s program left the company and are now working with a comparable consulting firm, MNS Engineers, Inc. (MNS). As a result, MBI is no longer adequately staffed to manage the City’s program and has lost valuable knowledge and experience related to the City with respect to the development of the Analysis of Impediments to Fair Housing Choice (AI) and the annual Consolidated Plan documents. Staff recommends approval of the attached Agreement with MNS for a one-year term, which would be followed by the immediate termination of the City’s Agreement with MBI.
BACKGROUND
The City is the recipient of federal funding from HUD to support projects and services that benefit low -and moderate-income persons, seniors, and individuals with disabilities in the community. The City’s CDBG-funded programs include the Mobility Access, Emergency Repair Program (MA/ER). Funding is also used to provide homeowners with grants for emergency repairs and ADA access improvements, along with the Public Service Agency Funding program. Additionally, CDBG monies have provided funding for various capital projects, including the annual Curb Ramps Improvement Project and City-facility improvements, such as the recent roofing projects at Wilderness Park and the Alta Vista Tennis and Community Center.
The City has an existing agreement with MBI to administer the CDBG program on behalf of the City and ensure that the City remains compliant with required reporting and program guidelines, which is scheduled to expire on June 30, 2026. Unfortunately, the core MBI team assigned to the City’s CDBG program for many years recently left MBI and is now working with MNS to provide the same services. While MBI has committed to reassigning its remaining team to continue administering the
H.7., File # 24-1450 Meeting Date: 9/3/2024
services. While MBI has committed to reassigning its remaining team to continue administering the City’s CDBG program, staff is concerned with the lack of consistency with key personnel during a critical time for the City’s CDBG program. In June, staff and MBI consultants initiated critical outreach efforts with the community to assist in the development of the 2025-2030 Consolidated Plan and AI. These documents are required to be updated every five-years and outline the City’s needs regarding housing, human services, fair housing, parks and recreation, and community facilities.
They are essential for the City as they provide guidance on how the City will spend its annual allocation of CDBG funds while providing assurance to HUD that the City is making informed decisions that are responsive to community needs. The draft of the AI, which is the precursor to the Consolidated Plan, is scheduled to be approved by the City Council in October in order to maintain HUD’s development, review, and approval schedule for the final documents.
In addition to concerns related to the timing of critical elements of the Consolidated Plan and the AI, staff is concerned that MBI will not be able to provide support to its existing clients given that its remaining team is now overextended with the departure of many key personnel. Therefore, staff recommends the approval of a proposed agreement with MNS for a one-year term, ensuring consistency in the administration of the City’s CDBG program and allowing for the successful completion of important milestones in the development of the AL and Consolidated Plan. If approved, the existing Agreement with MBI will be immediately terminated, as per paragraph 11 in that Agreement. The one-year term provides necessary services immediately and will provide time for staff to issue a request for proposals for longer-term CDBG administration services to ensure that the City is getting reasonable and fair market rates.
The proposed Agreement with MNS is for equivalent services to those provided by MBI, and includes the following:
· CDBG Administration: MNS will handle all administrative duties related to the program, including financial and data management, preparation of HUD-mandated documents and reports, preparation of environmental reviews, preparation of the Annual Action Plan, management and monitoring of the City’s Fair Housing contract, and general program oversight to ensure compliance with all federal regulations · MA/ER Program: MNS will handle all facets of this program including determination of applicant eligibility, preparation of applicant paperwork, preparation of project write-ups, project bidding, and project oversight
· Public Service Agency Funding Program: MNS will manage the RFP process, assist with the evaluation of proposals, prepare related reports, manage the funding award process, and monitor all agencies
· Capital Improvement Projects: MNS will determine CDBG eligibility of potential capital improvement projects, prepare all federal documents for bid packages, attend the preconstruction meetings, oversee federal labor standards compliance during construction, and prepare and submit required documents to HUD.
· AI and Consolidated Plan: MNS will manage the development, review and approval of the AI and Consolidated Plan documents including the management and oversight of community outreach efforts, data collection and analysis, and final document preparation and submission.
COORDINATION
The Community Services Department coordinated with the City Attorney’s Office to review the
H.7., File # 24-1450 Meeting Date: 9/3/2024
existing Agreement with MBI and to develop the proposed Agreement with MNS.
FISCAL IMPACT
Funding for the proposed Agreement with MNS is available in the City’s annual HUD/CDBG grant allocation.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Agmt - MNS Engineers, Inc.
· Agmt - Michael Baker International, Inc., August 1, 2023