HomeMy WebLinkAbout06 - CC-7 - Amendment #1 to Subrecipient Agreements - 6/15/20211
CITY COUNCIL AGENDA REPORT
MEETING DATE: June 15, 2021 ITEM NUMBER: CC-7
SUBJECT:
AMENDMENT #1 TO SUBRECIPIENT AGREEMENTS FOR PROGRAM
ADMINISTRATION OF A COMMUNITY DEVELOPMENT BLOCK GRANT
CORONAVIRUS (CDBG-CV) RENTAL ASSISTANCE PROGRAM
DATE: JUNE 7, 2021
FROM: CITY MANAGER’S OFFICE
PRESENTATION BY: SUSAN PRICE, ASSISTANT CITY MANAGER
FOR FURTHER INFORMATION
CONTACT:
SUSAN PRICE, ASSISTANT CITY
MANAGER, (714) 754-5122
RECOMMENDATION:
Staff recommends that the City Council and the Housing Authority Board of Directors:
1. Approve proposed Amendment No. 1 (Attachment 1) to the Subrecipient
Agreement (SRA) with Mercy House Living Centers increasing the compensation
by $150,000, for a total Not-To-Exceed amount of $330,321 and to add two one-
year renewal terms for program administration of the City’s CDBG-CV Rental
Assistant Program for lower-income households without children.
2. Approve proposed Amendment No. 1 (Attachment 2) to the Subrecipient
Agreement (SRA) with Serving People in Need (SPIN), Inc. increasing the
compensation by $250,000, for a total Not-To-Exceed amount of $457,000 and to
add two one-year renewal terms for program administration of a Rental Assistance
Program for lower-income households with children.
3. Authorize the City Manager and the City Clerk to execute the amendments and
future authorized amendments to the agreements.
BACKGROUND:
On October 6, 2020, the City Council approved the CDBG-CV SRA (Attachment 3) with
SPIN in an amount not-to exceed $207,000 for administration of a Rental Assistance
Program for lower-income households with children that have been impacted by the
Coronavirus (COVID-19). The City Council also approved the SRA (Attachment 4) with
Mercy House Living Centers for a Not-To-Exceed amount of $180,321 for administration
2
of the City’s CDBG-CV Rental Assistance Program for lower-income households impacted
by COVID-19 without children.
On October 20, 2020, the City Council held a public hearing and approved a second
amendment to the City’s 2019-2020 Annual Action Plan to allocate Round 3 CDBG-CV
funds for programs that will provide homeless prevention assistance and street outreach
services. The City of Costa Mesa received $1,168,216 in CDBG-CV Round 3 funds from
the U.S Department of Housing and Urban Department (HUD). The Council allocated
$400,000 to the category of Rental Assistance at that time.
ANALYSIS:
To ensure eligible households in the City of Costa Mesa can take advantage of the Rental
Assistance Program, staff recommends continuing to contract with the same entities that
have operated the program in the Costa Mesa community.
SPIN provides CDBG-funded public service programs like rental assistance for cities in
Orange County. From July 2020 to March 2021, the program has served 107 households
with children, 93 of those households were extremely low-income. Additionally, of the
total households, 33 were extremely low- to low-income families affected by COVID-19
through COVID-19 positivity, loss of job because of COVID-19, and/or reduction in income
due to COVID-19 and need for rental assistance. Mercy House has served 29 individuals
in households without children to date. Both agencies are interested in continuing to
provide this critical rental assistance program for the community, particularly given that
the states eviction moratorium is to expire on June 30, 2021.
The CDBG-CV Rental Assistance Program assists low to moderate-income Costa Mesa
residents who are impacted by the Coronavirus. The approval of the recommended
actions will assist residents in maintaining housing stability during this pandemic.
RENTAL ASSISTANCE PROGRAM GUIDELINES
The Costa Mesa CDBG-CV Rental Assistance Program provides residents experiencing
a loss of income, directly related to COVID-19, with up to $6,000 per household or a
maximum three (3) months full rent, whichever is less. Residents with incomes at or below
80% Area Median Income (AMI) with unpaid rent starting April 1, 2020, and who had
otherwise been in good financial standing may qualify. Additional details about the
program can be found in Attachment 1.
ALTERNATIVES CONSIDERED:
City Council and the Housing Authority may elect to not extend funding to Mercy House
Living Centers or to SPIN for administration of the subject program, and direct staff to re-
advertise the program, or choose only one entity to administer the program to specified
households. This action may delay CDBG-CV funds in addressing the community needs
in a timely manner to help residents retain housing stability.
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FISCAL REVIEW:
The CDBG-CV Rental Assistance Program will have no impact to the General Fund. The
total amount for SPIN and Mercy House Living Centers to administer the program shall
not exceed $400,000 and may be paid for using this portion of the City’s Round 3 CDBG-
CV funds, which are included in the FY 2021/22 Adopted Budget. This action is being
expedited in order to fast track assistance to families and individuals in greatest need.
The SRA amounts requested at this time are based on the workload that SPIN and Mercy
House are prepared to address at this time.
LEGAL REVIEW:
The City Attorney’s office has reviewed this agenda report and the amendments and
approves them as to form.
CITY COUNCIL GOALS & PRIORITIES:
Diversifying, stabilizing, and increasing housing to reflect community needs is a priority
for the City Council. In February 2021, the City Council adopted a new Strategic Plan to
achieve this and four other priorities over the next three years.
CONCLUSION:
1. Approve proposed Amendment No. 1 (Attachment 1) to the Subrecipient
Agreement (SRA) with Mercy House Living Centers increasing the compensation
by $150,000, for a total Not-To-Exceed amount of $330,321 and to add two one-
year renewal options for program administration of the City’s CDBG-CV Rental
Assistant Program for lower-income households without children.
2. Approve proposed Amendment No. 1 (Attachment 2) to the Subrecipient
Agreement (SRA) with Serving People in Need (SPIN), Inc. increasing the
compensation by $250,000, for a total Not-To-Exceed amount of $457,000 and to
add two one-year renewal options for program administration of a Rental
Assistance Program for lower-income households with children.
3. Authorize the City Manager and the City Clerk to execute the amendments and
future authorized amendments to the agreements.
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SUSAN PRICE
Assistant City Manager
CAROL MOLINA KIMBERLY HALL BARLOW
Finance Director City Attorney
Attachments: 1. Amendment No. 1 with Mercy House Living Centers
2. Amendment No. 1 with SPIN
3. Subrecipient Agreement with SPIN
4. Subrecipient Agreement with Mercy House Living Centers
1
Mercy House Living Centers Amendment One
CDBG-CV
Rev. 05-20
AMENDMENT NUMBER ONE
TO 2020-2021 SUBRECEIPIENT AGREEMENT
AMONG THE CITY OF COSTA MESA, AS GRANTEE UNDER THE
COMMUNITY DEVELOPMENT BLOCK GRANT-CORONAVIRUS PROGRAM, THE COSTA
MESA HOUSING AUTHORITY AND MERCY HOUSE LIVING CENTERS
This Amendment Number One (“Amendment”) is made and entered into this 15th day of
June, 2021 (“Effective Date”), by and among the CITY OF COSTA MESA (“CITY”), a municipal
corporation and a grantee under the U.S. Department of Housing and Urban Development
(“HUD”) Community Development Block Grant-Coronavirus (“CDBG-CV”) Program (Catalog of
Federal Domestic Assistance Number 14-218; Grant No: B-20-MW-06-0503), the COSTA MESA
HOUSING AUTHORITY, a public body corporate and politic (“AUTHORITY”), and MERCY
HOUSE LIVING CENTERS, a nonprofit corporation (“SUBRECIPIENT”). CITY and AUTHORITY
are collectively referred to herein as “CITY.”
WHEREAS, CITY and SUBRECIPIENT entered into an agreement dated October 6, 2020
for SUBRECIPIENT to provide shelter, supportive services and housing navigation services for
homeless men and women (the “Agreement”); and
WHEREAS, CITY and SUBRECIPIENT desire to amend the Agreement as set forth
herein.
NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:
1. Section A.1. shall be amended to add a new subsection (e), to read as follows:
(e) Use of CDBG-CV Funds; Duplication of Benefits. SUBRECIPIENT
acknowledges that CITY is utilizing supplemental CDBG funds allocated to City
through the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”),
referred to as “CDBG-CV” funds, in whole or in part to fund the services set forth
in this Agreement. SUBRECIPIENT understands and agrees that CDBG-CV funds
may only be utilized to prevent, prepare for, and respond to the COVID-19
pandemic. SUBRECIPIENT shall not carry out any of the activities under this
Agreement in a manner that results in a prohibited duplication of benefits as
defined by the CARES Act and/or HUD’s CDBG-CV guidance. SUBRECIPIENT
must comply with HUD’s requirements for duplication of benefits imposed on the
CITY, which are: CDBG-CV funds may not be used to pay costs if another source
of financial assistance is available to pay that cost. SUBRECIPIENT further agrees
to repay the CITY any assistance determined to be duplicative.
2. Section A.3. (Term of Agreement) shall be amended to read as follows:
3. Term of Agreement. Subject to the termination provisions set forth herein, the
term of this Agreement is from October 6, 2020 through June 30, 2021, except that
SUBRECIPIENT shall be obligated to perform such duties as would normally
extend beyond the term, including, but not limited to, obligations with respect to
indemnification, audits, reporting, data retention/data reporting, and accounting.
The term of this Agreement may be extended by two (2) additional one (1) year
Attachment 4
2
Mercy House Living Centers Amendment One
CDBG-CV
Rev. 05-20
periods upon written agreement of the parties, memorialized by an amendment to
this Agreement.
3. The term of the Agreement shall be extended through June 30, 2022.
4. Section A.4. (Amount of Grant and Quarterly Disbursement) shall be amended to
read as follows:
4. Amount of Grant and Quarterly Disbursement. The amount granted to
SUBRECIPIENT shall not exceed Three Hundred Thirty Thousand Three Hundred
Twenty-One Dollars ($330,321.00) (“CDBG-CV FUNDS”). SUBRECIPIENT shall
expend such funds during the term of this Agreement or any extension thereof.
CITY will disburse CDBG-CV FUNDS to SUBRECIPIENT on a quarterly basis
subject to and upon receipt and approval of a complete quarterly activity report
from SUBRECIPIENT.
5. All terms not defined herein shall have the same meaning and use as set forth in
the Agreement.
[Signatures appear on following page.]
3
Mercy House Living Centers Amendment One
CDBG-CV
Rev. 05-20
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
by and through their respective authorized officers, as of the date first written above.
CITY OF COSTA MESA
________________________________ Date: __________________________
Lori Ann Farrell Harrison
City Manager
COSTA MESA HOUSING AUTHORITY
________________________________ Date: __________________________
Lori Ann Farrell Harrison
Executive Director
SUBRECIPIENT
MERCY HOUSE LIVING CENTERS
Federal Tax Identification No: 33-0315864
DUNS Number: 879797165
________________________________ Date: __________________________
Signature
________________________________
Name and Title
________________________________ Date: __________________________
Signature
________________________________
Name and Title
ATTEST:
________________________________
Brenda Green
City Clerk/Housing Authority Secretary
4
Mercy House Living Centers Amendment One
CDBG-CV
Rev. 05-20
APPROVED AS TO FORM:
________________________________
Kimberly Hall Barlow
City Attorney/Housing Authority
General Counsel
APPROVED AS TO INSURANCE:
________________________________
Ruth Wang
Risk Management
APPROVED AS TO PURCHASING:
________________________________
Carol Molina
Finance Director
1
SPIN, Inc. Amendment One
CDBG-CV
Rev. 05-20
AMENDMENT NUMBER ONE
TO 2020-2021 SUBRECEIPIENT AGREEMENT
AMONG THE CITY OF COSTA MESA, AS GRANTEE UNDER THE
COMMUNITY DEVELOPMENT BLOCK GRANT-CORONAVIRUS PROGRAM, THE COSTA
MESA HOUSING AUTHORITY AND SERVING PEOPLE IN NEED (SPIN), INC.
This Amendment Number One (“Amendment”) is made and entered into this 15th day of
June, 2021 (“Effective Date”), by and among the CITY OF COSTA MESA (“CITY”), a municipal
corporation and a grantee under the U.S. Department of Housing and Urban Development
(“HUD”) Community Development Block Grant-Coronavirus (“CDBG-CV”) Program (Catalog of
Federal Domestic Assistance Number 14-218; Grant No: B-20-MW-06-0503), the COSTA MESA
HOUSING AUTHORITY, a public body corporate and politic (“AUTHORITY”), and SERVING
PEOPLE IN NEED (SPIN), INC., a nonprofit corporation (“SUBRECIPIENT”). CITY and
AUTHORITY are collectively referred to herein as “CITY.”
WHEREAS, CITY and SUBRECIPIENT entered into an agreement dated October 6, 2020
for SUBRECIPIENT to provide shelter, supportive services and housing navigation services for
homeless men and women (the “Agreement”); and
WHEREAS, CITY and SUBRECIPIENT desire to amend the Agreement as set forth
herein.
NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:
1. Section A.1. shall be amended to add a new subsection (e), to read as follows:
(e) Use of CDBG-CV Funds; Duplication of Benefits. SUBRECIPIENT
acknowledges that CITY is utilizing supplemental CDBG funds allocated to City
through the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”),
referred to as “CDBG-CV” funds, in whole or in part to fund the services set forth
in this Agreement. SUBRECIPIENT understands and agrees that CDBG-CV funds
may only be utilized to prevent, prepare for, and respond to the COVID-19
pandemic. SUBRECIPIENT shall not carry out any of the activities under this
Agreement in a manner that results in a prohibited duplication of benefits as
defined by the CARES Act and/or HUD’s CDBG-CV guidance. SUBRECIPIENT
must comply with HUD’s requirements for duplication of benefits imposed on the
CITY, which are: CDBG-CV funds may not be used to pay costs if another source
of financial assistance is available to pay that cost. SUBRECIPIENT further agrees
to repay the CITY any assistance determined to be duplicative.
2. Section A.3. (Term of Agreement) shall be amended to read as follows:
3. Term of Agreement. Subject to the termination provisions set forth herein, the
term of this Agreement is from October 6, 2020 through June 30, 2021, except that
SUBRECIPIENT shall be obligated to perform such duties as would normally
extend beyond the term, including, but not limited to, obligations with respect to
indemnification, audits, reporting, data retention/data reporting, and accounting.
The term of this Agreement may be extended by two (2) additional one (1) year
Attachment 3
2
SPIN, Inc. Amendment One
CDBG-CV
Rev. 05-20
periods upon written agreement of the parties, memorialized by an amendment to
this Agreement.
3. The term of the Agreement shall be extended through June 30, 2022.
4. Section A.4. (Amount of Grant and Quarterly Disbursement) shall be amended to
read as follows:
4. Amount of Grant and Quarterly Disbursement. The amount granted to
SUBRECIPIENT shall not exceed Four Hundred Fifty-Seven Thousand Dollars
($457,000.00) (“CDBG-CV FUNDS”). SUBRECIPIENT shall expend such funds
during the term of this Agreement or any extension thereof. CITY will disburse
CDBG-CV FUNDS to SUBRECIPIENT on a quarterly basis subject to and upon
receipt and approval of a complete quarterly activity report from SUBRECIPIENT.
5. All terms not defined herein shall have the same meaning and use as set forth in
the Agreement.
[Signatures appear on following page.]
3
SPIN, Inc. Amendment One
CDBG-CV
Rev. 05-20
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
by and through their respective authorized officers, as of the date first written above.
CITY OF COSTA MESA
________________________________ Date: __________________________
Lori Ann Farrell Harrison
City Manager
COSTA MESA HOUSING AUTHORITY
________________________________ Date: __________________________
Lori Ann Farrell Harrison
Executive Director
SUBRECIPIENT
SERVING PEOPLE IN NEED (SPIN), INC.
Federal Tax Identification No: 32-0329687
DUNS Number: 179244173
________________________________ Date: __________________________
Signature
________________________________
Name and Title
________________________________ Date: __________________________
Signature
________________________________
Name and Title
ATTEST:
________________________________
Brenda Green
City Clerk/Housing Authority Secretary
4
SPIN, Inc. Amendment One
CDBG-CV
Rev. 05-20
APPROVED AS TO FORM:
________________________________
Kimberly Hall Barlow
City Attorney/Housing Authority
General Counsel
APPROVED AS TO INSURANCE:
________________________________
Ruth Wang
Risk Management
APPROVED AS TO PURCHASING:
________________________________
Carol Molina
Finance Director
Attachment 2
Attachment 1