REPORT TO THE CITY COUNCIL
June 14, 2018
FROM: JENNIFER K. CLARK, Director
Development and Resource Management Department
THROUGH: KELLI FURTADO, Assistant Director
Development and Resource Management Department
BY: THOMAS MORGAN, Housing and Community Dev. Manager
Development and Resource Management Department
SUBJECT
Title
Approve a First Amendment to Agreement with Usona Development, LLC in an amount not to exceed $69,180, to extend services through December 31, 2018, to assist and support City staff in the management and application of Community Development Block Grant (CDBG) funds
Body
RECOMMENDATIONS
Staff recommends that the City Council approve the First Amendment to the consulting services agreement with Usona Development, LLC (Usona) in an amount not to exceed $69,180, to extend services through December 31, 2018.
EXECUTIVE SUMMARY
On March 5, 2018, the City entered into an agreement not to exceed $49,999.00 with Usona for CDBG administration and program support services through June 30, 2018.
The proposed First Amendment increases the value of the Agreement by no more than $69,180 and will extend the Agreement through December 31, 2018 for a total cost not to exceed $119,179.
BACKGROUND
In March of 2018, a need for technical assistance in the management and application of CDBG funds was identified due to staff turnover, shortages, a lack of technical experience and capacity, as well as concerns over the monitoring and timely use of CDBG funds. In March of 2018, the City entered into an agreement with Usona to provide technical expertise in federal grants management and to assist staff with subrecipient agreements. Usona is a consulting firm that assists local municipalities and non-profits in delivering solutions to meet community needs. William Kubal, the Principal of Usona, is recognized as one of the premier experts in CDBG management.
Since implementation of the Agreement, Usona has been instrumental in evaluating and revising program policies and procedures for staff input, reviewing and recommending changes to program implementation, assessing current reporting status, training staff, assisting with infrastructure projects undertaken by subrecipients, determining eligibility, preparing compliance reports, developing the Annual Action Plan, assisting in monitoring, properly documenting draw packages, receipting program income, and supporting and maintaining other funding source programs. The First Amendment will continue to focus on day-to-day operational oversight of CDBG, in addition to preparing responses to HUD monitoring requests and additional technical assistance requested by City staff, including but not limited to policies and procedures, implementation of annual planning process, HUD performance reporting and IDIS.
Due to ongoing capacity issues and several upcoming HUD deadlines, such as the Consolidated Annual Performance Evaluation Report and monitoring visits, the First Amendment includes costs for an additional 26 weeks of service including the following:
• Onsite associate for approximately 32 hours per week,
• 60 hours for labor standards compliance or other requests from the City, and
• 52 hours for onsite visits or offsite technical assistance from the Principal.
The First Amendment is recommended for approval through December 31, 2018. City staff does not anticipate any additional extensions to the Agreement after December 31, 2018.
ENVIRONMENTAL FINDINGS
In accordance with the California Environmental Quality Act (CEQA) Guidelines Section 15378, this item does not qualify as a project and is therefore exempt from CEQA requirements. In addition, the proposed service is not subject to an environmental review under the provision of the National Environmental Policy Act (NEPA) as administrative and management activities are specifically exempt under 24 CFR § 58.34(a) (4).
LOCAL PREFERENCE
Local preference is not applicable based on conditions of federal funding.
FISCAL IMPACT
No City of Fresno general funds will be needed. The additional expense of $69,180 can be absorbed within the department’s existing federal administrative appropriations.
Attachments:
Exhibit A - Amendment #1 to the Agreement
Exhibit B - Original Agreement dated March 5, 2018