HomeMy WebLinkAboutItem 2f - Contract for Home Improvement Program Administration. GQsLIFORN
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A.6ust 5, 1903
V
DATE: June 4, 2013
TO: Honorable Mayor and City Council
STAFF REPORT
Development Services Department
FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director
SUBJECT: AUTHORIZE AND DIRECT THE CITY MANAGER TO EXECUTE A
PROFESSIONAL SERVICES AGREEMENT WITH BEATRICE PICON
FOR FISCAL YEAR 2013 -14, WITH THE OPTION OF TWO (2) ONE (1)
YEAR EXTENSIONS AT THE END OF THE TERM, FOR THE
ADMINISTRATION OF THE HOME IMPROVEMENT PROGRAM
FUNDED BY THE COMMUNITY DEVELOPMENT BLOCK GRANT
PROGRAM
Recommendation: Approve
SUMMARY
The City receives Community Development Block Grant (CDBG) funds each year
through the Los Angeles County Community Development Commission. These funds
are used for programs and projects that benefit low and moderate income residents.
The City Council approves the programs and projects and authorizes the spending plan
every year, and has already given its approval for the 2013 -14 CDBG activities.
A large portion of the CDBG funds are used for the Home Improvement Program (HIP).
This is an ongoing program that provides grants of up to $15,000 for eligible
improvements to single family residences for moderate and low income homeowners.
Recently, the City has added townhomes and condominiums to the eligibility list. Twenty
percent (20 %) of the funds for the HIP are eligible to pay for program administration.
A Request for Proposals (RFP) was issued to three (3) firms with experience in
administering housing rehabilitation programs. The City received one proposal from
Beatrice Picon, a sole proprietor. Ms. Picon has over 25 years of experience working
for municipal governments, and extensive knowledge in developing and administering
residential rehabilitation programs. Ms. Picon has been the City's consultant for the
past five (5) years and her experience has proven to be an asset to the HIP. Therefore,
staff recommends entering into a Professional Services Agreement with Beatrice Picon
for Fiscal Year 2013 -14, with the option of two (2) one (1) year renewals at the end of
PSA - Home Improvement Program
June 4, 2013
Page 2
the term, for the administration of the Home Improvement Program funded by the
Community Development Block Grant Program.
DISCUSSION
The City anticipates receiving CDBG funding in the amount of $241,429 for the HIP for
Fiscal Year 2013 -14. The City is currently accepting HIP applications for Fiscal Year
2013 -14. The proposed contract with Ms. Picon is for $25,200 based on the completion
of approximately 12 projects at $2,100 per project. This represents approximately 15%
of the HIP funding anticipated, which is well within the standard allowed of 20 %, and is
consistent with the cost of the program for the last several years.
Under Ms. Picon's leadership, the HIP has been very successful in meeting housing
needs for participants. Recently, Ms. Picon pointed out that the City had an opportunity
to assist a larger range of people if the program were extended to owners of townhomes
and condominiums. The County CDC and the CDBG Program encourages this
expansion of eligibility; the City Council approved this change earlier this year.
The CDBG Program requires that participating jurisdictions go out for bid every three
years. It is not uncommon for there to be only a single bidder for such projects,
especially given the small size of the Arcadia allotment from CDBG. The RFP for
consultant services was sent to three reputable firms, yet only one response was
received. Similarly, in 2009, the City sent responses to six firms and only two responses
were received. Staff is confident that the City's HIP will continue to run effectively and
efficiently in this funding cycle, and at an overall administration price lower than what
could be expected with a different consultant.
FISCAL IMPACT
The Community Development Block Grant Program will fund 100% of the projected
contract amount of $25,200. There is no fiscal impact on the General Fund.
RECOMMENDATION
It is recommended that the City Council authorize and direct the City Manager to
execute a Professional Services Agreement with Beatrice Picon for Fiscal Year 2013-
14, with the option of two (2) one (1) year extensions at the end of the term, for the
administration of the Home Improvement Program funded by the Community
Development Block Grant Program.
Approved,
Domi io Lanza
City Manager