Title
Recommendation to Approve a Two-Year Staffing Services Agreement between the City of Alameda and the Housing Authority to Provide: 1) Housing Services on behalf of the City, and 2) Additional Policing Services for the Housing Authority. (Community Development 236)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Approve a Two-Year Staffing Services Agreement between the City of Alameda and the Housing Authority to Provide: 1) Housing Services on behalf of the City, and 2) Additional Policing Services for the Housing Authority.
BACKGROUND
The City of Alameda and the Housing Authority have entered into a series of services agreements since 1984. The different Agreements have provided for a variety of services and shared staff between the two agencies. The current Services Agreement expires on June 30, 2017, and covers services in two areas: housing programs (this does not include rent stabilization services) and police services. Housing Authority staff provides the services needed to administer the City housing programs, including the Inclusionary Housing and First Time Homebuyer programs, as well as the CDBG and HOME programs, and to perform related city-wide analysis and planning related to housing development. Certain administrative expenses (such as consulting services) and a percentage of the total salaries and benefits for the staff are reimbursed by the City for the provision of the services.
Conversely, the Police Department has been under contract to provide supplemental policing services at Housing Authority complexes for more than 20 years. The Housing Authority pays the Police Department for these services. The proposed Services Agreement for Fiscal Years 2017-18 and 2018-19, which continues the provision of services described above, is attached as Exhibit 1. The Housing Authority Board of Commissioners approved the Agreement on April 19, 2017.
DISCUSSION
As noted above, the current Services Agreement expires June 30, 2017. The new Agreement coincides with the City’s two-year budget cycle. Housing program costs are paid to the Housing Authority on an actual (reimbursement) basis. In the past three years, the Housing Authority charged a $30,000 annual administrative fee to cover the general overhead costs of administering the housing program, but that fee will be replaced by additional salary costs for FYs 2017-18/18-19. The amount paid to the City for the additional policing services has been $210,000 annually for the past and current fiscal years. Those costs remain unchanged.
Staff is recommending a new two-year Agreement based on the terms and conditions described above. The budget and scope of housing services are described in Exhibits A and B of the attached Services Agreement. The police services scope of services and annual cost are described in Exhibits C and D. Staff recommends that the City Council approve the FY 2017-18/2018-19 Services Agreement with the Housing Authority.
FINANCIAL IMPACT
There is no impact on the City’s General Fund to contract with the Housing Authority to implement the City Housing programs. City funds are used to compensate the Housing Authority for staffing to implement the City housing programs and to pay for the direct costs of eligible projects and programs. Currently, $1,382,730 is projected to be available in the City’s 2017-18/2018-19 budget for these purposes. Of this amount, approximately $580,000 will be available for salaries and benefits.
The funding sources include the CDBG, HOME, program income (from repayment of loans), In Lieu Fees and the Affordable Housing Unit Fee. In general, all funds may be used only for community development and affordable housing-related purposes. Program regulations determine the amount of program funds that can be used for certain costs, such as staff, office overhead and social service programs.
There is a positive impact on the City’s General Fund to contract with the Housing Authority for policing services as the Housing Authority will compensate the City of Alameda $210,000 annually for these services.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The Services Agreement to provide administration of housing and community development programs on behalf of the City is consistent with the City's CDBG Five-Year Strategic Plan and the Housing Element.
ENVIRONMENTAL REVIEW
Approving the Services Agreement to provide administration of housing and community development programs on behalf of the City and additional policing services for the Housing Authority is not subject to environmental review as the activity is not a "project" for purposes of the California Environmental Quality Act (CEQA) because it is an organizational or administrative activity of the City that will not result in direct or indirect physical changes in the environment. CEQA guidelines, section 15378 sub. (b)(5).
RECOMMENDATION
Approve a two-year Staffing Services Agreement between the Housing Authority and the City of Alameda to provide housing services on behalf of the City and for additional policing services for the Housing Authority.
Respectfully submitted,
Debbie Potter, Community Development Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Staffing Services Agreement