Agenda

Back to Calendar Return

Agenda Item 22.

City Council Meeting

Meeting Date:	02/21/2017
FROM:	City Manager

Subject:

Amendment No. 1 to the Professional Services Agreement with Housing Programs for Single Family Rehabilitation Program Assistance

RECOMMENDATION

Approve Amendment No. 1 to the Professional Services Agreement with Housing Programs for Single Family Rehabilitation Program Assistance.

BACKGROUND/DISCUSSION

The City has successfully participated in the Community Development Block Grant (CDBG) Program for Single Family Rehabilitation for over forty years. Each year the City receives approximately $180,000 of federal funds to use to assist 15 to 20 low-income Brea homeowners with home repairs, which include correcting health, safety, and building code violations. With the retirement of a Management Analyst II (MAII) in the Community Development Department, there was a significant gap in staff resources to keep this and other housing programs going. While the City explored the alternatives for staffing the housing programs going forward, a consultant was selected to assist with the Housing Rehabilitation Program. The City is contractually committed to continue this program and to meet grant deadlines. Additionally, several low-income homeowners were in various stages of home repairs under the program.

Community Development staff received recommendations from other cities who use consultants to implement their CDBG Housing Rehabilitation Programs. Four consultants were interviewed: AmeriNational Community Services, GRC Associates, Housing Programs, and Lorraine Mendez & Associates. Based on their experience, references, and fees, Housing Programs was recommended to the City Manager, who approved a Professional Services Agreement (PSA) on October 18, 2016, for an amount not to exceed $24,000. Housing Programs then provided assistance to the Housing Rehabilitation Program on a trial basis to complete the FY 2015-16 grant cycle, which ended December 31, 2016. Housing Programs successfully carried out the remainder of FY 2015-16 projects and four homes were rehabilitated between October and December of last year.

It is now recommended that the City amend Housing Programs' PSA to continue their services. The amendment would add $84,000 to the PSA and extend the term to the end of FY 2018-19. Beginning in FY 2018-19, the City will be able to cover consultant costs with the CDBG grant. As part of the budget process, Community Development is proposing budget savings by operating the City's affordable housing programs with one less staff position. However, this can only be done if consultant services are also utilized to perform critical related functions.

COMMISSION/COMMITTEE RECOMMENDATION

The Finance Committee discussed this amendment at their meeting on February 14, 2017 and recommended approval.

FISCAL IMPACT/SUMMARY

Council is requested to approve Amendment No. 1 to the Professional Services Agreement with Housing Programs to provide service for Brea’s CDBG Housing Rehabilitation Program through FY 2018-19. The not-to-exceed amount in this amendment is $84,000. This would bring the current $24,000 PSA to $108,000. This PSA is paid from the Housing Successor Fund, thus the PSA creates no impact on the General Fund. The Housing Successor Fund has sufficient funds in the current budget to cover the additional expense for this Fiscal Year. The remaining amount will be budgeted in FY 2017-18 and FY 2018-19.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Marie Dao, Community Development Specialist
Concurrence: David Crabtree, Community Development Director

Attachments
Amendment No. 1 to Housing Programs PSA