Report Prepared by: Laura Ivancich, Housing Program Specialist and Kimberly Nutt, Housing Program Supervisor, Housing Division/Development Services Department
Title
SUBJECT: First Amendment to Program Year 2021-22 Subrecipient Agreement with the County of Merced for the City and County Continuum of Care Collaborative Applicant Program
REPORT IN BRIEF
Considers increasing the administrative funding for the existing agreement with the County of Merced for the City and County Continuum of Care 2021-22 Collaborative Applicant Program.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the First Amendment to the Agreement between City of Merced and the County of Merced for the City and County Continuum of Care 2021-22 Collaborative Applicant; and,
B. Authorizing the City Manager or Deputy City Manager to execute the necessary documents, and if necessary, authorize staff to make any necessary minor modifications to the agreement; and,
C. Authorizing the Finance Officer to make any necessary adjustments.
Body
ALTERNATIVES
1. Approve the agreement as recommended by City staff; or,
2. Approved a modified agreement as revised by the City Council; or,
3. Deny the request; or,
4. Refer back to staff for reconsideration of specific items (specific items to be addressed in City Council motion); or,
5. Continue to a future City Council meeting (date and time to be specified in City Council motion).
AUTHORITY
Section 200 of the City of Merced Charter, City of Merced 2021 HUD Annual Action Plan, and Title 24 of the Code of Federal Regulations, Part 200 and 570 (the U.S. Housing and Urban Development regulations concerning Uniform Administrative Requirements and Community Development Block Grants).
CITY COUNCIL PRIORITIES
As approved and budgeted by City Council on November 16, 2020, and July 6, 2021, with 2020 and 2021 HUD CDBG Administrative Program Funds; and aligns with the 2021-22 and 2022-23 City Council Priorities for Housing and Homelessness.
DISCUSSION
Staff is requesting Council consideration of authorizing execution of this contract amendment for an existing CDBG administrative program (Attachment 1).
City and County Continuum of Care - Collaborative Applicant Program
The County of Merced received approval by the City Council and HUD for provision of administrative funding assistance through both the 2020 and 2021 Annual Action Plans for the City and County Continuum of Care (CoC) Collaborative Applicant Program. The CoC undertakes the City and County’s long-standing mutual goal of addressing and eliminating homelessness within the County of Merced. Since a majority of the County’s homeless households reside in the City of Merced, the City has utilized a portion of its Community Development Block Grant (CDBG) administrative funding towards the administrative cost of this goal each year since 2004.
Due to the late approval of the 2020 Annual Action Plan in March 2021 as a result of the Coronavirus Pandemic, after which staff prioritized the implementation of public service and housing programs, the 2020-21 and 2021-22 agreements with the CoC ($38,000 of 2020 and $38,000 of 2021 CDBG Admin) were not approved by the County Board of Supervisors and the City Council and subsequently executed until April 2022. Housing staff recently learned that the County was unable to utilize the 2020 funding toward its 2020-21 administrative costs due to this unfortunate delay of contract execution; therefore, the 2020 CDBG admin-funded agreement will be disencumbered.
However, during the 2021-22 Program Year, the Housing Division received more program income than expected and did not use all the budgeted amount for indirect administrative costs, therefore leaving a surplus of available 2021-22 admin funding. This means the CoC can re-gain the $38,000 of “lost” 2020 funding by amending the 2021-22 original agreement with the same amount, for a total of $76,000.
The Merced County Human Services Agency, who acts as the Collaborative Applicant for the CoC, is ready to submit its reimbursable expenses immediately upon execution of this First Amendment.
The amendment was approved by the Merced County Board of Supervisors at their August 9, 2022 meeting.
IMPACT ON CITY RESOURCES
The proposed agreement amendment does not require any new appropriations of funding. The program will use the previously encumbered CDBG administrative funding from the 2021-22 budget that is available within Account 018-1301-559-17-00 (Prior Year/Professional Services).
ATTACHMENTS
1. Draft First Amendment to 2021-22 Agreement with the County of Merced Continuum of Care