Title
Report regarding two resolutions approving amendments to the Consulting Services Agreements with Michael Baker International for administrative support for the City’s for-sale below market rate housing program and Community Development Block Grant program. (Elia Moreno, Housing Management Analyst 1 and Alvina Condon, Housing Management Analyst II)
label
RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt two resolutions authorizing the City Manager to execute:
1. A Third Amendment to the Consulting Services Agreement with Michael Baker International, Inc. to extend the agreement for administrative support for the City of South San Francisco’s Affordable Housing Program through December 31, 2025 and to increase the amount by $49,000 for a total amount not to exceed $199,000; and
2. A Second Amendment to the Consulting Services Agreement with Michael Baker International, Inc. to extend the agreement for administrative support for the City of South San Francisco’s Community Development Block Grant (CDBG) program through December 31, 2025 and to increase the amount by $40,000 for a total amount not to exceed $180,000.
Body
BACKGROUND
In 2021, the Economic and Community Development Department issued a Request for Proposals (RFP) to seek a consultant to support the City’s Affordable Housing Program, and also issued a Request for Qualifications (RFQ) for on-call Economic Development and Housing services, including administrative support for the CDBG program. A single firm, Michael Baker International, Inc. (MBI), was selected from the Affordable Housing Program procurement. While one other firm responded, MBI’s response was the most tailored to the City’s program and included the best price proposal. Several firms, including MBI, were selected from the on-call Economic Development and Housing procurement to assist the City with myriad projects, such as acquisition of property, financial feasibility analyses, CDBG administration, and more. Staff intends to issue RFPs and RFQs in the coming year to renew procurement for these services.
DISCUSSION
Both contracts with MBI have neared the limit of the City Manager’s signing authority - $150,000 - while the firm’s services are still needed to administer the City’s for-sale below market rate housing program and the City’s CDBG program. Staff recommends amending both contracts to extend them to December 31, 2025 and increase their not to exceed amounts.
Affordable Housing Program Consulting Services Agreement
In September 2021, the City issued the RFP to seek a consultant to support the City’s Affordable Housing Program through administrative, technical, and affordable housing management. The City entered into an agreement with MBI on January 24, 2022 for the not to exceed amount of $85,000.
On January 5, 2023, the City and MBI agreed to a first amendment to the agreement where the date for completion of work was extended. On May 30, 2023, a second amendment to the agreement was executed to increase the contract amount up to $150,000. The term of service outlined in the second amendment to the agreement ended on June 30, 2024.
The RFP contemplated a four-year consulting services term, beginning in 2021 and extending to 2025. Due to an increase of BMR resales within the City, staff is recommending an amendment to continue receiving administrative and technical support for the affordable housing program. Between March 2024 and June 2024, staff received a total of seven inquiries, or Notices of Intent to Transfer, for the resale of BMR properties within the City. This is substantially higher than in past years and therefore the consultant support provided by MBI is necessary to facilitate these resales in a timely manner, and in compliance with the City’s regulatory agreements.
At this time, staff recommends amending the consulting services agreement with MBI to extend the term of the agreement to December 31, 2025 and increase the amount by $49,000 for a total not to exceed amount of $199,000.
Community Development Block Grant (CDBG) Consultant Services Agreement
In March 2021, the City issued the RFQ to seek as-needed, on-call Economic Development and Housing consulting services, including CDBG administration. Specifically, CDBG services were required for the successful administration and management of the federal grant funds, environmental review and labor compliance services, providing technical assistance in developing the Five-Year Consolidated Plan (ConPlan), Annual Action Plan (AAP), Consolidated Annual Performance Evaluation Report (CAPER), Assessment of Fair Housing (AFH), and assisting with Integrated Disbursement and Information System (IDIS) maintenance.
The City entered into an agreement with MBI on April 28, 2021 for an amount not to exceed $140,000. On April 29, 2023, the City and MBI entered into a first amendment to the agreement to extend the term of the agreement to April 28, 2024. Due to continued assistance needed for CDBG administration and management, staff recommends a second amendment to the agreement, extending the term of the agreement to December 31, 2025 and increasing the amount of the contract by $40,000 for a total not to exceed amount of $180,000.
The draft amendments and scopes of services are included as attachments to the corresponding resolutions.
FISCAL IMPACT
The Affordable Housing Program consulting services agreement is paid for from the Housing Trust Fund (Fund 205). There are sufficient funds to pay these administrative costs and there is no impact to the General Fund associated with adopting the associated resolution.
Expenses incurred under the CDBG Program consulting services agreement are reimbursed by CDBG administrative funds in Fund 222. Sufficient funds have been budgeted to pay for these administrative costs.
CONCLUSION
Staff recommends that the City Council adopt two resolutions authorizing the City Manager to execute a Third Amendment to the Consulting Services Agreement with MBI to extend the agreement for administrative support for the City’s Affordable Housing Program through December 31, 2025 and to increase the amount by $49,000 for a total amount not to exceed $199,000 and a Second Amendment to the Consulting Services Agreement with MBI to extend the agreement for administrative support for the City’s CDBG program through December 31, 2025 and to increase the amount by $40,000 for a total amount not to exceed $180,000.