Title
Recommendation to: Authorize the City Manager to Execute a First Amendment to the Services Agreement for Fiscal Years 2019-2020 and 2020-2021 between the City of Alameda and the Housing Authority of the City of Alameda Amending the Scope of Work and Budget Concerning the City’s Administration of Certain Services Including the Community Development Block Grant and HOME Programs, and Extending the Term of the Service Agreement to June 30, 2023; and
Adoption of Resolution Approving a Workforce Change in the Community Development Department to Allocate One Classification, Community Development Program Manager, Effective August 1, 2020. (Community Development 236/235)
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 (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. Staff is recommending a First Amendment to the Agreement to modify the scope of work and budget to transition certain services back to the City for program administration. If approved, the First Amendment would transfer the federal Community Development Block Grant (CDBG) and HOME programs and the City’s inclusionary housing program administration to the City. The Housing Authority would continue to administer the City’s affordable housing funds in support of affordable housing development and to provide funding for supplemental policing services. The Agreement is attached as Exhibit 1 and the First Amendment is attached as Exhibit 2.
BACKGROUND
The City has been partnering with the Housing Authority on the delivery of affordable housing and other community development initiatives for many years. During that time, the Housing Authority has been both a department of the City and an independent public agency. It most recently became an independent public agency in 2012. From 2010 to 2014, City staff worked at the Housing Authority administering the CDBG/HOME and other affordable housing programs as part of a City departmental reorganization following the dissolution of redevelopment agencies. In 2014, following the Housing Authority’s transition to an independent public agency, City staff administering these programs became Housing Authority employees. As a result of the transition from City administration to Housing Authority administration, the City and the Housing Authority entered into a services agreement to formalize that relationship.
The current Agreement, approved by the City Council in June 2019, 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 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 supplemental policing services.
In September 2018, the Community Development and Base Reuse and Transportation Departments were reorganized to become Community Development (Base Reuse, Economic Development, Asset Management and Community Services) and the Planning, Building and Transportation Departments. The Community Development Department also manages the Agreement with the Housing Authority (and the Rent Program Services Agreement) on behalf of the City.
Over the last 18-20 months, the Community Development Department has continued the reorganization process, relocating to City Hall West, hiring staff, assuming new programs and initiatives, particularly those related to serving the unsheltered community, and meeting the current needs of the business and renter communities during the COVID-19 pandemic. As part of the Fiscal Year (FY) 2019-20/2020-21 budget, City Council approved an Accounting Technician position to more directly support the Department’s work, including all of the financial obligations related to the CDBG/HOME programs. The Department also continues to staff the Social Service Human Relations Board (SSHRB). All of these measures have led to increased efficiencies and more effective program delivery. It has also allowed the Department to better understand how it can continue to enhance service delivery. It should also be noted that the Fire Department currently implements the CDBG-funded Home Safety and Accessibility Program. That program will continue to be carried out by the Fire Department.
Based on these developments, staff is recommending that administration of certain affordable programs be transitioned to the City. Given the current Agreement, it is necessary to amend the Agreement to carry out such a transition.
DISCUSSION
Transitioning administration of the CDBG/HOME and other affordable housing programs back to direct City management will remove an administrative layer from the service delivery process and increase efficiency. Therefore, staff is recommending a First Amendment to the Agreement to transfer the CDBG/HOME and other housing program administration back to the City. The Housing Authority would continue to administer the City’s affordable housing funds in support of affordable housing development and to provide funding for supplemental policing services. Staff believes that such a change will allow both organizations to work to their strengths. While the Housing Authority has been a solid partner, there are certain CDBG/HOME-related functions that must always remain with the City as it is the official federal grantee of these funds, and therefore, the City’s direct program administration is most efficient. At the same time, the Housing Authority is the largest provider of affordable housing in the City and can make the best, and most efficient, use of the City’s affordable housing funds to carry out the City’s Five-Year Affordable Housing Pipeline.
City and Housing Authority staff have been working on the proposed transition for the last several months and the First Amendment includes a transition plan that would allow a hand-over effective on August 1, 2020. Given the level of work effort, it is recommended that, as part of the First Amendment, the Agreement’s term would be extended two years, from June 30, 2021, to June 30, 2023, to ensure continuity in the delivery of affordable housing projects. The First Amendment retains the ability for either party to terminate the Agreement following a 180-day notice.
As part of assuming responsibility for the CDBG/HOME and other affordable housing programs, staff recommends the allocation of one full-time Community Development Program Manager. This is the job classification that was used to perform City functions related to the CDBG/HOME Programs, and related programs, prior to those functions moving to the Housing Authority. The scope and responsibilities of the current Community Development Program Manager job classification remain applicable. This classification is an exempt, 36-hours per week position represented by the Management and Confidential Employees Association (MCEA).
|
|
|
Annual |
|
Code |
Classification FLSA Exempt |
Step 1 |
Step 2 |
Step 3 |
Step 4 |
Step 5 |
|
1720 |
Community Development Program Manager |
$104,797 |
$110,038 |
$115,539 |
$121,318 |
$127,382 |
A new position in this classification would be fully funded with CDBG/HOME program monies.
ALTERNATIVES
• It is recommended that that City Council approve a First Amendment to Agreement with the Housing Authority to transition administration of the CDBG/HOME programs as described above back to the City and that the Housing Authority retain administration of the City’s affordable housing funds for development of affordable housing and that the City Council adopt a resolution approving a workforce change to add a Community Development Program Manger to carry out these job duties effective August 1, 2020.
• The City Council could approve transition of these programs back to the City but decide to do it at a later date or upon expiration of the current agreement on June 30, 2021.
• The City Council could provide direction to staff regarding further revisions to the First Amendment.
• The City Council could decline to amend the Agreement at this time.
FINANCIAL IMPACT
There is no impact on the City’s General Fund to transition CDBG/HOME program and other affordable housing program administration back to the City. 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 First Amendment to the Agreement are budgeted in the City’s FY 2020-21 budget.
The total annual cost for the new Community Development Program Manager position is estimated at $178,500, which includes salary, benefits and the CalPERS contribution. This position will be fully funded with CDBG/HOME program funds.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The First Amendment to Agreement provides administrative services consistent with the requirements of the federal CDBG/HOME programs and the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
Approval of this First Amendment to Agreement is exempt from review under the California Environmental Quality Act (CEQA) pursuant to the following, each a separate and independent basis: CEQA Guidelines, Section 15378 (not a project) and Section 15061(b)(3) (no significant environmental impact).
CLIMATE IMPACTS
There are no climate impacts to approving this First Amendment to the Agreement.
RECOMMENDATION
It is recommended that the City Council:
1. Approve a First Amendment to the Services Agreement for Fiscal Years 2019-2020 and 2020-2021 between the City of Alameda and the Housing Authority of the City of Alameda amending the Scope of Work and Budget concerning the City’s administration of certain services Including the Community Development Block Grant and HOME Programs and extending the term of the Services Agreement to June 30, 2023; and
2. Adopt a Resolution Approving a Workforce Change in the Community Development Department to Allocate One Classification, Community Development Program Manager, effective August 1, 2020.
CITY MANAGER RECOMMENDATION
The City Manager concurs with the Community Development Director’s recommendation. It is common for cities to manage the CDBG program internally and this strategy is consistent with that approach.
Respectfully submitted,
Debbie Potter, Community Development Director
Financial Impact section reviewed,
Nancy Bronstein, Interim Finance Director/Human Resources Director
Exhibits:
1. Services Agreement
2. First Amendment
cc: Eric Levitt, City Manager