REPORT TO THE CITY COUNCIL
July 25, 2019
FROM: JENNIFER CLARK, Director
Planning and Development Department
THROUGH: THOMAS MORGAN, Housing and Community Development Manager
Housing and Community Development Division
KAREN JENKS, Administrative Manager
Housing and Community Development Division
BY: ALDI DODDS, Senior Management Analyst
Housing and Community Development Division
SUBJECT
Title
Actions pertaining to the comprehensive administration of the United States Department of Housing and Urban Development (HUD) programs
1. Approve a First Amendment to the Consulting Services Agreement with Michael Baker International in the amount not to exceed $226,000 for ongoing consultant services through June 30, 2020; and
2. Approve Second Amendment to Consulting Services Agreement with Usona Development, LLC in the amount not to exceed $609,020 for ongoing consultant services through June 30, 2020;
3. Authorize the Planning and Development Department Director, or designee, to sign the amendments on behalf of the City of Fresno.
Body
RECOMMENDATION
Staff recommends approval.
EXECUTIVE SUMMARY
In 2018, the City entered into agreements with Michael Baker and Usona as consultants for the comprehensive administration of local HUD Office of Community Planning and Development (CPD) programs. This action will provide a continuation of services at the same hourly rates through June 30, 2020. The annual cost of services for Michael Baker is $113,000 bringing the two year total to $226,000; the annual cost of services for Usona is $304,510 bringing the two year total to $609,020. The City’s Housing and Community Development Division (Housing Division) recommends the retention of the consultants with expertise and experience for an additional year to continue successfully administering the HUD programs.
BACKGROUND
The City participates in the HUD CPD programs for Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), HOME Partnership Program (HOME), and Housing Opportunities for People with AIDS (HOPWA). The City receives an annual allocation of approximately $11,000,000. The experienced consultant teams provide the City the expertise in the comprehensive program administration and implementation, development, and coordination of programmatic plans, and performance reports. Usona Development, LLC has provided valuable support and training to subrecipients and division staff. This includes regulatory framework related to financial management, planning and reporting, labor standards and compliance, eligibility requirements, procurement, and subrecipient monitoring and risk analysis. The imbedded resources along with their supervisor provide hands-on know-how through project review, oversight and planning alongside staff. This builds capacity as well as improves knowledge of HUD regulations. The consultant also brought the City into compliance with Federal Transparency Act Reporting requirements and will provide in-office and on-site training for the new Rehabilitation Specialist.
Michael Baker International provides ESG, HOPWA, CDBG and HOME TBRA subrecipient training for compliance with federal regulations. This consultant also brought the City into compliance with the state of California Division of Industrial Relations (DIR) contractor registration requirements along with federal WBE/DBE and Section 3 regulations. Additionally, the consultant will provide in-depth training for a City staff member to administer the ESG, HOPWA, CDBG and HOME TRBA programs.
With the assistance of the consultants, the Housing Division made considerable improvements in its performance in accordance with HUD’s strict standards. This year’s accomplishments include:
Ø The City met HUD’s timeliness test for program performance the first time in three years;
Ø The City submitted the Annual Action Plan before the required deadline;
Ø The City made substantial progress in closing the Office of Inspector General Audit Findings;
Ø The City provided financial and technical assistance to over ten non-profits throughout the community.
HOME Accomplishments
● 2 Multi-Family units in the Lowell Neighborhood Project at 146 N Glenn
● 9 Multi-Family units in the Lowell Neighborhood Project at 240 N Calaveras
HOME Projects Currently Under Way
● 4 Single-Family units at B and Amador Project
● 3 Single-Family units - Central Lots Project
Recent Tenant Based Rental Accomplishments
● 93 formerly homeless households
Owner-Occupied Rehabilitation Accomplishments
• 22 Senior Paint Programs
• 15 Minor Code Compliance
• 20 Housing Rehabilitation Programs
Public Service Accomplishments
● 737 seniors assisted (Senior Hot Meals)
● 1,002 youth assisted (After School Program)
● Section 3 training through Helping Others Pursue Excellence
● 80 individuals received tenant education through Lowell CDC
● Approximately 1,199 youth served through Boys and Girls Club
● 432 youth participated in the Street Saints Afterschool Program run by the Fresno Economic Opportunities Commission
● 90 individuals participated in the Stone Soup Employment Training Program
Public Facility Accomplishments
● City of Fresno PARCS Department:
- Mosqueda Splash Park - Completed
- Various Learner Pool Improvements - Design Phase Underway
- Romain Park Challenger Course and Parking lot - Design Phase Underway
- Cary Park Lighting - Design complete, construction started April 2019
- Fink White Park Play Structure - Underway
- Pinedale Community Center Park Improvements - Design Phase Underway
- Holmes Park ADA Improvements - Design Phase Underway
- District Four Neighborhood Community Center - Design Phase Underway
● Department of Public Works Projects Completed, or Underway /To Be Completed by September 2019:
- Addams Neighborhood
- Hidalgo Street Improvements
- Jefferson Street Improvements
- Winchell Neighborhood Improvements
- Pinedale Street Improvements
- Highway City LED Improvements
- Webster LED Improvements
- El Dorado Pavement Reconstruction
- Shields/Dakota/West/Crystal Pavement Reconstruction
- Orange/Butler/Cedar/California Neighborhood Street Improvements
- Hidalgo Sidewalks
● Marjaree Mason Center Kitchen Improvements: Complete
● Marjaree Mason Center Bathroom Improvements: Design Phase Underway
● WestCare California Fire System Upgrade: Pre-construction activities Underway
● Poverello House HVAC: Completed
● Helping Others Pursue Excellence Elevator Installation: Nearing Completion
● Stone Soup Solar Roofing Project: Complete
Homelessness Accomplishments
• Public Service (Homelessness projects)
- 739 Homeless Overnight Shelter persons assisted
- 31 Homeless Prevention persons assisted
- The City supported services that served 1,929 homeless persons
As part of the City’s Annual Action Plan, and CPD entitlement award, HUD funds are made available for administration of the programs. Any resulting contract and associated City expenditures is included in the appropriate administration budget provided through the entitlement grant, and shall not exceed the applicable annual statutory limits on administration and planning for each formula program. As a result, no general funds will be utilized for the proposed consultant activities. The proposed amendments to the agreements will allow the City to retain the expertise necessary to ensure proper administration of the respective federal funds for the benefit of the community.
Project Scope
Tasks listed below are summaries of the activities the consultants will continue to administer to assist the City with the four formula programs, and not intended to represent a complete listing of day to day activities of the consulting firm(s).
Task 1. Consultant will administer and implement the City’s Federal Formula Programs including but not limited to:
• Prepare documents including contracts, agreements, and amendments;
• Prepare and publish hearing notices for citizen input on the allocation of annual funds and/or any changes in the allocation of funds;
• Prepare reports for City review and approval of projects and activities;
• Administer and process subrecipient agreements, notices of grant awards, reimbursements and all necessary documentation;
• Close-out the NSP program (NSP1 and NSP3);
• Prepare and complete all required reports and documents, including the Quarterly Performance Report, labor standards report and Contract/Subcontract activity report; and
• Keep City informed about current HUD requirements for the CPD Programs including rule changes, funding levels, etc.
Task 2. Consultant will assist City staff in the preparation of staff reports, related exhibits and presentation materials; provide input on resolutions for agenda items pertaining to the entitlement programs; and participate in public meetings as may be requested by City staff.
Task 3. Consultant will prepare notice of grant awards and subrecipient agreements to implement projects including project scope of work and budgets.
• Complete and submit all documents which describe the projects, funding amounts, program beneficiaries and project locations;
• Prepare and process amendments for on-going projects; and
• Prepare and publish public hearing notices for substantial changes in project description and or funding levels.
Task 4. Consultant will prepare funding requests for each project.
• Review payment requests and invoices for allowed costs pursuant to CDBG criteria and the associated notice of grant award/subrecipient agreement;
• Administer the Integrated Disbursement and Information System (IDIS);
• Conduct monthly reconciliation with the City’s People Soft system;
• Prepare and submit draw packages; and
• Monitor the drawdown of funds in order to comply with HUD regulations and Consolidated Plan performance goals.
Task 5. Consultant will coordinate with staff and gather all necessary files and documentation for program monitoring and audit preparation.
• Develop and maintain all necessary documentation for monitoring and Single Audit; and
• Assist Federal monitors during program performance reviews, and City auditors during Single Audit.
Task 6. Consultant will act as one of the City’s representatives to the regional CPD Office.
• Coordinate program monitoring visits and audits;
• Prepare responses to correspondence and monitoring findings;
• Submit inquiries for clarification and determinations on behalf of the City; and
• Attend all mandatory trainings.
Task 7. Consultant will ensure compliance with all applicable Federal, State and local laws and policies.
• Develop and maintain current policies and procedures for all aspects of the programs;
• Keep updated copies of all regulations and handbooks at appropriate locations;
• Circulate information bulletins to City staff as necessary;
• Train City staff and subrecipients as needed; and
• Attend HUD seminars on program and regulatory changes.
Task 8. Consultant will provide for a marketing plan to generate qualified applicants to participate in the relevant programs such as Senior Paint or Minor Repair with special emphasis on outreach to the low-income neighborhoods.
Task 9. Consultant will be responsible for the preparation and submission of applicable annual HUD plans and reports including, but not limited to, the Annual Action Plan, Consolidated Annual Performance and Evaluation Report (CAPER), and various HUD quarterly, semi-annual and annual reports.
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 Housing Division’s administrative budget was approved by City Council on May 2, 2019, and it has been approved by HUD as of July 1, 2019.
ATTACHMENTS
Exhibit A First Amendment to Michael Baker International Agreement
Exhibit B Second Amendment to Usona Development, LLC Agreement
Exhibit C Michael Baker International Consulting Services Original Agreement
Exhibit D Usona Development, LLC Consulting Services Original Agreement, and First
Amendment