HomeMy WebLinkAbout18 - CDBG Program AdministrationCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 18
March 14, 2006
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Community & Economic Development, Planning Department
Daniel R. Trimble, Program Manager
(949) 644 -3230. Email: dtrimble @city.newport- beach.ca.us
SUBJECT: Community Development Block Grant (CDBG) Program Administration.
ISSUE:
Each year, the City of Newport Beach receives Community Development Block Grant
(CDBG) funds from the U.S. Department of Housing and Urban Development (HUD).
These funds are used to assist the City in meeting the affordable housing and
community development needs of its residents, particularly those persons and families
considered to have low or moderate levels of income. As with any grant funds, there
are specific administration requirements, and the City may use up to 20% of the grant
for administration. As part of this year's review of the grant program, Council Member
Daigle requested information on administration requirements and how the City
administers this grant.
During the past 5 years, the City of Newport Beach has contracted the services of a
consultant, LDM Associates, Inc., that specializes in the administration and
implementation of CDBG programs and projects.
RECOMMENDATION:
Receive and file.
DISCUSSION:
For many years, the City used a combination of in -house staff and consultant
assistance to administer the CDBG. Approximately 7 years ago, the City changed to
using in -house staff only, with the intent of making more efficient use of our resources.
This change occurred shortly after HUD had instituted a new, automated reporting
system. Despite attending HUD training and requesting additional help from HUD staff,
we were unsuccessful in making this transition to in -house administration. Due to the
numerous requirements and the complicated regulations that are required in exchange
for the receipt of the CDBG funds, it was determined that it would be more effective to
hire a consultant that specializes in the administration of CDBG Programs. City staff
undertook the process of procuring for these services by issuing a Request for
CDBG Program Administration
March 14, 2006
Page 2
Proposals (RFP). Several firms submitted proposals. Three firms were interviewed
and staff recommended that the City Council approve a contract with LDM Associates,
Inc. The annual contract amount for these services is approximately $54,000.
Since the City has contracted with LDM Associates, Inc. five years ago, the City has
been able to maintain an excellent working relationship with HUD. Because of their
knowledge of the program regulations, monitoring requirements, program eligibility, and
plan preparation, the City has received excellent reports from HUD since LDM has
administered our grant.
Although Council only sees the work performed by the consultant during the One -Year
Action Plan process and the Consolidated Annual Performance and Evaluation Report
(CAPER) process, the consultant is responsible for much more throughout the year. In
addition, LDM monitors compliance with covenants for affordable housing projects
developed pursuant to the City's inclusionary housing program. As with CDBG
administration, LDM has improved the City's information and property owners'
compliance in this area.
Rudy Munoz of LDM Associates will provide the City Council with a power point
presentation that provides a list of services that are provided by the consultant for the
$54,000. A print out of the power point slides is provided for your information.
Submitted by: Prepared by:
S ARON WOOD
Assistant City Manager
DANIEL TRIMBLE
C & ED Program Manager
Pi