Title
Recommendation to Authorize the City Manager to Execute a Two-Year Agreement, Substantially in the Form of the Attached Agreement, Between the Housing Authority of the City of Alameda and the City of Alameda to Provide Housing Services for the City of Alameda and Additional Policing Services for the Housing Authority of the City of Alameda. (Community Development 236)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The City of Alameda (City) currently contracts with the Housing Authority of the City of Alameda (Housing Authority), via a staffing services agreement, for the Housing Authority to administer the City’s Community Development Block Grant (CDBG) and HOME programs, and various other housing programs and for the City to provide additional policing services to Housing Authority-owned properties. The staffing services agreement before the City Council would continue this practice for the next two fiscal years.
BACKGROUND
The City and the Housing Authority have entered into a series of Services Agreements since 1984. The Services Agreements have provided for a variety of services and shared staff between the two agencies. In 2000, Housing Authority employees became City employees and the two agencies entered into a Staffing Services Agreement for these employees to implement housing programs. The Housing Authority then became an independent agency again in 2012, and the aforementioned City employees transitioned back to being Housing Authority employees.
The current Services Agreement covers services in two areas: housing programs and police services. Housing Authority staff provide the services needed to administer the City housing programs, such as the federal Community Development Block Grant (CDBG) and HOME programs, First-Time Homebuyer Program, and Inclusionary Housing Program. The Housing Authority also manages the City’s affordable housing funds to develop affordable housing. The Housing Authority staff salaries and administrative expenses are reimbursed by the City for the provision of these 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 City for these services. The proposed Services Agreement for Fiscal Years 2019-20 and 2020-21 is attached as Exhibit 1. The Housing Authority Board of Commissioners approved renewal of this Agreement on April 17, 2019.
DISCUSSION
The current Services Agreement covers a two-year period beginning July 1, 2017, and expiring on June 30, 2019. Housing program costs are paid by the City to the Housing Authority on an actual (reimbursement) basis. The cost paid to the City by the Housing Authority for the additional policing services is $210,000 annually.
The current arrangement works well for both parties and staff is recommending a new two-year Agreement under the same terms and conditions as the current Services Agreement. The housing programs budget and scope of services are described in Exhibits A and B of the attached Services Agreement. This Services Agreement will be effective July 1, 2019, at which point the attached budget is anticipated to have been adopted by City Council. Should there be any changes between now and that time, the exhibit will be updated with the City approved budget. The Police services work scope and annual cost are described in Exhibits C and D of the attached Services Agreement.
Staff recommends that the City Council approve the Services Agreement for Fiscal Years 2019-20 and 2020-21 with the Housing Authority and authorize the City Manager to execute the Services Agreement.
ALTERNATIVES
Alternative 1 --- Execute a two-year Agreement between the Housing Authority and the City of Alameda to provide housing services for the City and additional policing services for the Housing Authority.
Alternative 2 --- With the 2019 formation of the “new” Community Development Department (Base Reuse, Asset Management, Economic Development, and Community Services), CDBG and other housing programs could be brought in-house and become an additional division of the Department. The staff does not recommend this option because currently, by contracting with the Housing Authority for housing services, the City gets the benefit of City staff oversight and policy guidance and Housing Authority staff expertise in day-to-day administration of these various programs. In addition, the Housing Authority is able to leverage dedicated City housing funds with its much larger financing capacity to more rapidly create affordable housing.
Alternative 3 - The City Council could approve a 1 year rather than a 2 year agreement.
FINANCIAL IMPACT
There is no impact on the City’s General Fund to contract with the Housing Authority to implement the City housing programs. Funding sources include the CDBG, HOME, program income (from repayment of loans), Housing In-Lieu Fees, and the Affordable Housing Unit Fees. In general, all funds may be used only for community development and affordable housing-related purposes. All funds encumbered by the Agreement are budgeted in the City’s FY 2019-20 and FY 2020-21 budget.
There is a positive impact on the City’s General Fund to contract with the Housing Authority for policing services. The Housing Authority will compensate the City $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 Action Plan and the Housing Element.
ENVIRONMENTAL REVIEW
Renewing 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 in that 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).
CLIMATE IMPACTS
There are no climate impacts from approving the Services Agreement with the Housing Authority.
RECOMMENDATION
Authorize the City Manager to execute a two-year Agreement, substantially in the form of the attached agreement, between the Housing Authority and the City of Alameda to provide housing services for the City and additional policing services for the Housing Authority.
CITY MANAGER RECOMMENDATION
The City Manager concurs with the Community Development Director’s recommendation to negotiate and execute a two-year Agreement between the Housing Authority and the City of Alameda to provide housing services for the City and additional policing services.
Respectfully submitted,
Debbie Potter, Community Development Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Services Agreement
Cc: Eric J. Levitt, City Manager