TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Justin Clifton, City Manager
PREPARED BY: Isaac Bravo, Management Analyst
SUBJECT:
title
Second Amendment to an Agreement with GRC Associates, Inc. for As-Needed Administrative Services for the Community Development Block Grant Program
end
RECOMMENDATION
recommendation
Approve the second amendment to an agreement with GRC Associates, Inc. for as-needed Community Development Block Grant consultation services to extend the agreement by 2 years and increase the total not-to-exceed amount by $60,000; and
Authorize the City Manager to execute the agreement.
body
PRIOR ACTION/VOTE
On August 1, 2023, the City Council approved Resolution No. 23-4695 authorizing the City’s participation in the County of Riverside’s Urban County Community Development Block Grant Program for Fiscal Years 2024/25, 2025/26, and 2026/27 (Vote: 5-0).
On November 21, 2023, the City Council approved Resolution No. 23-4715 authorizing allocation of Community Development Block Grant Funds for Fiscal Year 2024/25 (Vote: 5-0).
On August 20, 2024, the City Council approved an amendment to the agreement with GRC Associates, Inc., which extended the agreement for an additional year and increased the total not-to-exceed amount by $30,000 (Vote: 5-0).
On November 19, 2024, the City Council approved Resolution No. 24-4793 authorizing the allocation of Community Development Block Grant Funds for Fiscal Year 2025/26 (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
DISCUSSION
The United States Department of Housing and Urban Development (HUD) administers the Community Development Block Grant (CDBG) Program, which provides annual federal funding to local jurisdictions to support community development activities. The goal of the CDBG Program is to create viable urban communities by providing decent housing, a suitable living environment, and expanded economic opportunities, primarily benefiting low and moderate-income individuals.
Local jurisdictions can use CDBG funds for a wide range of eligible activities. These funds are often used to supplement General Fund expenditures for programs that meet HUD’s objectives and eligibility criteria. A portion of the City of Murrieta's (City) annual allocation is designated for “public service” activities, typically carried out by nonprofit organizations.
Participation in the CDBG Program requires the City to comply with extensive federal administrative and reporting requirements. Although the City has partnered with Riverside County to complete certain components of the program’s administration, the City remains responsible for several key functions. These include selecting and contracting with nonprofit subrecipients, monitoring program activities, processing reimbursement requests, maintaining program records, and ensuring compliance with HUD regulations.
To support these efforts, the City entered into a professional services agreement with GRC Associates, Inc. (GRC) on March 1, 2023. GRC provides as-needed technical assistance with managing the City’s CDBG Program, including coordination with Riverside County, oversight of public service subrecipients, closing out outstanding reimbursement requests from previous years, and records management.
Since March 2023, GRC has provided services totaling $60,000. This includes an initial agreement for $30,000 and a second agreement for an additional $30,000 for Fiscal Year 2023/24. To continue services, the first amendment to the agreement extended the term through August 31, 2025, and authorized another $30,000 for FY 2024/25, with no change to the scope of services. All expenditures are fully reimbursable through the City’s CDBG administrative allocation from HUD.
A second amendment will extend the agreement through August 31, 2027, and authorize two (2) additional annual allocations of $30,000 for FY 2025/26 and 2026/27. There is no change to the scope of services. As with previous years, the costs incurred through this agreement are eligible for full reimbursement through HUD and will not impact the City’s General Fund.
FISCAL IMPACT
Funding for services was budgeted in FY 2025/26 in account 34100010-60480 in the amount of $30,000. Future fiscal year allocations will also be included in the regular budgetary process.
ATTACHMENTS
1. Proposed Amendment to the Existing Agreement