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  Agenda Item   19.    
City Council Meeting
Meeting Date: 06/01/2021  
FROM: Bill Gallardo

Subject:
Professional Services Agreement with Housing Programs for City’s Housing Rehabilitation Program
RECOMMENDATION
  1. Approve Professional Services Agreement with Housing Programs to administer the City’s Housing Rehabilitation Program in the amount not-to-exceed $174,288.38 (year one - $34,360; year two - $34,360; year three - $34,979; year four - $34,979; year five - $35,610.38);
  2. Authorize the City Manager to execute the Professional Services Agreement with Housing Programs; and
  3. Authorize the City Manager to extend the term of the Professional Services Agreement for four (4) additional one-year terms.
BACKGROUND/DISCUSSION
The City has successfully participated in the Community Development Block Grant (CDBG) Program for Single Family Rehabilitation (Housing Rehabilitation Program) for over 40 years.  Each year the City receives approximately $180,000 of federal funds to assist low-income Brea homeowners with home repairs, which include correcting health, safety, and building code violations.  With the retirement of a Management Analyst II in the Community Development Department in 2016, there was a significant gap in staff resources to keep this and other housing programs going.  While the City explored alternatives for staffing the housing programs going forward, a consultant was needed to assist with the Housing Rehabilitation Program.  Additionally, several low-income homeowners were in various stages of home repairs under the program at that time.

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 by staff 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 Fiscal Year (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 by the grant deadline.

In February 2017, staff requested Amendment No. 1 to the PSA with Housing Programs to continue their services.  The Council approved Amendment No. 1 which added $84,000 to the PSA, and the term was extended to the end of FY 2018-19.  Beginning in FY 2018-19, the City was able to use CDBG Program funds to cover the consultant costs.  As part of the budget process, Community Development proposed budget savings by operating the City’s affordable housing programs with one less staff position moving forward, thus the need to continue utilizing consultant services to administer the Housing Rehabilitation Program.

With the desire to keep the Housing Rehabilitation Program running seamlessly, the PSA with Housing Programs was subsequently amended for two additional one-year terms in 2019 and 2020.  The contract dollar amount however remained unchanged.  The contract with Housing Programs is due to expire on June 30, 2021.

In anticipation of the contract’s expiration, City staff posted a pre-solicitation notification on the City’s Purchasing webpage and sent a pre-solicitation notification email to known firms who might be interested in submitting a proposal.  A Request for Proposal (RFP) solicitation was formally issued on March 15, 2021 via the City’s eProcurement Portal (Public Purchase).  The RFP was also published on the City’s Purchasing webpage.  Over 4,000 nationwide notifications were issued from Public Purchase with 109 firms accessing the RFP and 79 firms opened the RFP.  The RFP was available online for 30 days and the City ultimately received one response proposal from Housing Programs.

City staff followed up with the 79 firms who opened the RFP to inquire as to why they chose not to respond.  City staff received ten responses which included:  could not respond due to current workload; could not meet license/certification requirements; do not provide the type of services requested; does not fit our current business model; or could not respond due to time constraints.  While more businesses are scaling back due to COVID-19, the demand for these types of services has increased the workload of the available firms and reduced the potential responsive firms even further.  If staff were to reissue a new RFP, it is unlikely we would see better results and would cause further delay in obtaining these required services.  While only one response was received, City staff reviewed and rated the proposal submitted by Housing Programs per the guidelines of the RFP.  The combined average score was 93 out of 100.  Staff is confident awarding a new contract to Housing Programs based on the consultant’s experience, understanding of the scope of work, qualifications, familiarity with Brea’s Program, and the desire to maintain program continuity.

Housing Program’s proposed costs average $34,857.68 annually.  Years one and two remain consistent at $34,360.  Year three will see a two percent increase bringing the annual cost to $34,979.  Year four will remain at $34,979, while year five will receive an additional two percent increase bringing the annual cost to $35,610.38.  Housing Program’s proposed annual costs are based on City staff’s estimated project count of six mobile homes and two single family homes per year.  At the request of staff via the RFP solicitation, the proposed scope of work and associated costs are all inclusive; however, not all services may be utilized, and therefore cost savings are anticipated.

The CDBG Program is a federally-funded program administered through the County of Orange.  The anticipated CDBG grant amount for Fiscal Year 2021-22 is $187,500.  The amount of funding in future years would be based on actual monies allocated which may vary based upon continued CDBG funding levels.  The contract with Housing Programs will continue to be funded by Community Development Block Grant Program funds (Fund 290).

At this time, staff is seeking Council approval of a Professional Services Agreement with Housing Programs to administer the City’s Housing Rehabilitation Program in the amount not-to-exceed $174,288.38.  In addition, authorize the City Manager to execute the Professional Services Agreement and to extend the term of the Professional Services Agreement for four (4) additional one-year terms.
COMMISSION/COMMITTEE RECOMMENDATION
The Finance Committee reviewed staff’s recommendation at their May 25, 2021 meeting and recommended to proceed to Council for approval.
FISCAL IMPACT/SUMMARY
Council is requested to approve a Professional Services Agreement with Housing Programs to administer the City’s Housing Rehabilitation Program in the amount not-to-exceed $174,288.38 (year one - $34,360; year two - $34,360; year three - $34,979; year four - $34,979; year five - $35,610.38), authorize the City Manager to execute the Professional Services Agreement, and to extend the term of the Professional Services Agreement for four (4) additional one-year terms.

This Professional Services Agreement will be funded by Community Development Block Grant Program funds (Fund 290), thus creates no impact on the General Fund.
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager
Prepared by:  Marie Dao, Management Analyst
Concurrence:  Tracy Steinkruger, Community Development Director
 
Attachments
Request for Proposal Solicitation
Professional Services Agreement

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