Title
Recommendation to Authorize the City Manager to Execute a Three-Year Agreement, with the Option of Two One-Year Extensions for a Total Five-Year Compensation Amount Not to Exceed $110,000 and No More Than $35,000 in a Single Fiscal Year, with Resource Consultants to Provide CDBG and HOME Compliance and Program Management Services to the City of Alameda. (Community Development 236 and 235)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
Staff conducted a procurement process to select a consultant to provide compliance and program management services for the City of Alameda’s (City) Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) programs. Staff evaluated the proposer’s past experience, the quality and experience of the project manager, the team’s knowledge and understanding of HUD’s reporting systems, and the ability to deliver the proposed scope of work within the proposed budget and schedule. CDBG entitlement administration funds will be used to pay the consultant.
BACKGROUND
In July 2020, the City reorganized the Community Development Department (CDD) and signed a first amendment to the Services Agreement (First Amendment) with the Housing Authority of the City of Alameda (Housing Authority), causing CDD to retain administration of certain programs and services, including all aspects of the CDBG and HOME programs. Previously, as the Program Administrator, the Housing Authority had entered into a consultant services agreement with Quadel Consulting & Training for the period of July 1, 2015 through June 30, 2020. As a part of the First Amendment, the Housing Authority agreed to release a Request for Proposals (RFP) to procure a new CDBG consultant on behalf of the City. The intent was to award and enter into a contract after August 1, 2020, subject to compliance with the City’s procurement policies, the HUD Procurement Handbook and 2 CFR Part 200. That procurement process is discussed more fully below.
DISCUSSION
Request for Proposals and Selection Process
On behalf of the City, the Housing Authority issued an RFP on June 15, 2020 to solicit proposals from qualified teams consisting of professionals who specialized in compliance and program management of the U.S. Department of Housing and Urban Development’s (HUD) CDBG and HOME programs. Due to the specialized knowledge required, staff proactively contacted a list of nine consulting firms who had responded to and who had been selected for similar engagements by various cities throughout the United States. Staff generated the list by obtaining data offered through the National Community Development Association.
While multiple parties confirmed receipt of the RFP, on July 10, 2020, the Housing Authority received one proposal, and it was from Resource Consultants. In August, the City hired a Community Development Program Manager. Due to the coronavirus pandemic, additional work that stemmed from the Coronavirus Aid, Relief, and Economic Security (CARES) Act and prioritizing existing community needs and deadlines, staff temporarily paused the procurement process. Staff resumed the review and selection process in December 2020. City staff interviewed the applicant and called references. Staff evaluated the proposer’s past experience, the quality and experience of the project manager, the team’s knowledge and understanding of HUD’s reporting systems, and the ability to deliver the proposed scope of work within the proposed budget and schedule.
Staff recommends proceeding with Resource Consultants to provide CDBG and HOME compliance and program management services. Resource Consultants presented a highly qualified team that provided a clearly defined and comprehensive proposal that demonstrated an understanding of HUD regulations and focused on compliance and program management. Resource Consultants can also draw from its experience providing trainings to CDBG entitlement communities across the United States, having led classes on the following subjects:
• CDBG Basics: Training for Practitioners
• Advanced CDBG: Managing an Effective Program/CDBG/HOME Underwriting
• CDBG Subrecipient Management
• CDBG Disaster Recovery
• HOME Basics
• Home Advanced/Underwriting
Lastly, Resource Consultants has recently added staff capacity to address the increased reporting that stems from the additional funding made available by the CARES Act.
The Resource Consultants team has recent experience with HUD entitlement communities, including, but not limited to those listed below in descending order of population, shown in parentheses:
• City of Surprise, AZ (138,161)
• City of Meridan, ID (106,804)
• City of Roanoke, VA (99,920)
• City of Nampa, ID (96,252)
• City of Springfield, OH (59,282)
• City of Richland, WA (57,303)
• City of Caldwell, ID (56,541)
• City of Grant Pass, OR (38,191)
• City of Rock Island, IL (37,678)
• City of Clearfield, UT (31,967)
• City of Redmond, OR (30,914)
Scope of Work
Resource Consultants will perform the tasks summarized below and detailed in the proposed contract, attached as Exhibit 1:
• Assist with the preparation and submission of the City’s Annual Action Plan and Consolidated Annual Performance and Evaluation Report (CAPER) to HUD.
• Prepare Environmental Review Records as needed.
• Provide general technical assistance in accordance with 24 CFR Part 570 Community Development Block Grants, 24 CFR Part 92 HOME Investment Partnerships Program and all cross-cutting requirements, including but not limited to Environmental Review Procedures, Davis Bacon Wage Monitoring, procurement, etc., including but not limited to:
o Assisting the City in training of staff, committee, and sub-recipients.
o Assisting City staff with establishing project files that demonstrate compliance with all applicable federal, State, and local regulations.
o Coordinating with City staff to monitor project files to ensure that they are complete, and that all necessary documentation is being retained in the City’s files.
o Obtaining contractor and subcontractor clearances from HUD.
o Coordinating with City staff to monitor compliance with Section 504 of the Rehabilitation Act of 1973, which prohibits discrimination on the basis of disability in any program or activity that receives federal financial assistance.
o Assisting with Fair Housing/EEO compliance activities.
o Assisting the City in meeting HUD’s audit requirements.
o Preparing close-out documents.
o Serving as a resource for HUD Program-specific questions, including requirements, forms, and technical software.
Resource Consultants’ work will be performed annually in accordance with HUD regulations. Staff recognizes that the anticipated workload over the next five years will vary. Typically, the first year of implementing the CDBG Five-Year Strategic Plan and the last year when preparing the next one require more time. In addition, the continuing COVID-19 global health pandemic has increased the number of programs that the City offers and the corresponding technical assistance needs of the newly awarded nonprofits. Consequently, staff anticipates a U-shaped demand for services with the highest demand at the beginning of the contract period, lower in the middle, and increasing again near the end, assuming that the contract is extended.
Next Steps
Staff is recommending approval of the three-year agreement that may be extended two additional one-year terms for a maximum term of five years, with a total five-year compensation amount not to exceed $110,000 and no more than $35,000 in a single fiscal year, with Resource Consultants to provide CDBG and HOME compliance and program management services for the City. If the contract is approved, the City will engage Resource Consultants to immediately begin work on the upcoming Action Plan.
ALTERNATIVES
• Authorize the City Manager to execute a three-year agreement that may be extended for two additional one-year terms for a maximum term of five years in the amount of $110,000 and no more than $35,000 in a single fiscal year with Resource Consultants for CDBG and HOME compliance and program management services. Staff recommends this alternative.
• Direct City staff to perform this work. Staff does not recommend this alternative as presently CDD does not have the specialized knowledge nor staff capacity to efficiently ensure compliance with HUD regulations, and doing so may divert resources from existing work.
• Do not authorize the execution of the agreement. Staff does not recommend this alternative since CDBG program management support facilitates the City’s compliance with federal funding regulations and helps minimize the likelihood of funds having to be returned to HUD.
FINANCIAL IMPACT
This contract will be paid with CDBG (Fund 236) and/or HOME (Fund 235) funds, as applicable, that have been allocated for administrative costs. No additional appropriations are needed in Fiscal Year 2020-21. Funding for service contemplated in future years of the agreement will be subject to future City Council appropriations approval.
There is no impact on the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
Approving an agreement with Resource Consultants to prepare an CDBG and HOME compliance and program management is not a project pursuant to 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 (b) (5)) and therefore no environmental review is required.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Authorize the City Manager to execute a three-year agreement, with the option of two one-year extensions for a five year compensation not to exceed $110,000 and no more than $35,000 in a single fiscal year with Resource Consultants to provide CDBG and HOME compliance and program management services for the City of Alameda.
CITY MANAGER RECOMMENDATION
The City Manager requests authorization for the City Manager to execute a three-year agreement.
Respectfully submitted,
Lisa Nelson Maxwell, Interim Community Development Director
By,
Lisa Fitts, Community Development Program Manager
Financial Impact section reviewed,
Annie To, Finance Director
Exhibit:
1. Agreement
cc: Eric Levitt, City Manager