TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Kim Summers, City Manager
PREPARED BY: Isaac Bravo, Management Analyst
SUBJECT:
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Amendment to an Agreement with GRC Associates, Inc. for As-Needed Administrative Services for the Community Development Block Grant Program
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RECOMMENDATION
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Approve the first amendment to an agreement with GRC Associates, Inc. for as-needed Community Development Block Grant consultation services to extend the agreement by one year and increase the total not-to-exceed amount by $30,000; and
Authorize the City Manager to execute the agreement.
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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 the allocation of Community Development Block Grant Funds for Fiscal Year 2024/25 (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
The United States Department of Housing and Urban Development (HUD) allocates federal funding annually through a program known as the Community Development Block Grant (CDBG) Program for the purpose of community development activities. CDBG funding can be used for a variety of programs, including providing housing, suitable living environments, and expanded economic opportunities primarily for persons of low to moderate income. CDBG funds are often used by municipal agencies to offset General Fund expenditures that meet the program criteria.
As a requisite of the federal program, CDBG funding requires extensive administrative work from the City to ensure compliance with the HUD requirements. The City has an arrangement with Riverside County to complete many of those requirements, however, there is still a fair amount of administrative work that is the responsibility of the City, particularly related to selecting, contracting with, monitoring, and reimbursing the nonprofit organizations that are awarded a portion of the City’s CDBG funding allocation.
To assist with fulfilling these responsibilities, the City has contracted with GRC Associates, Inc. (GRC) since March 1, 2023, for as-needed support in working with Riverside County on program administration, assisting in all aspects of the “public service” component of the City’s CDBG program, closing outstanding reimbursement requests for prior years that were pending with Riverside County, and assisting with records management related to the CDBG program. Since March 2023, the total cost of services provided by GRC is $60,000. This included an original agreement for $30,000, which lapsed, and a new agreement for an additional $30,000 for Fiscal Year 2023/24.
The first amendment to the existing agreement with GRC (Attachment 1) extends the performance period for an additional year to August 31, 2025, and authorizes the expenditure of an additional $30,000 in Fiscal Year 2024/25, with no change to the scope of services.
The entire cost incurred by the City for administrative services provided by GRC Associates for the CDBG program is reimbursable through the City’s allocation from HUD.
FISCAL IMPACT
Funding for services was budgeted in Fiscal Year 2024/25 in account 34100010-60480 in the amount of $30,000.
ATTACHMENTS
1. Proposed Amendment to Existing Agreement
2. First Agreement with GRC Associates, Inc.
3. Second Agreement with GRC Associates, Inc.