REPORT TO THE CITY COUNCIL December 17, 2015 FROM: JENNIFER K. CLARK, Director Development and Resource Management Department BY: JOSE TRUJILLO, Manager Housing and Community Development Division SUBJECT: ..Title First Amendment to the existing consulting services agreement with USONA Development, LLC. in the amount of $21,200, and an extension of time to December 30, 2016 for an expanded scope of services pertaining to Housing and Urban Development (HUD) grants management and the timely submission of the FY 2016-2017 Annual Action Plan. ..Body RECOMMENDATIONS: Staff recommends that the City Council approve the First Amendment to the existing consulting services agreement with USONA Development, LLC. in the amount of $21,200, and an extension of time to December 30, 2016 for an expanded scope of services pertaining to HUD federal grants management and the timely submission of the FY 2016-2017 Annual Action Plan. EXECUTIVE SUMMARY On June 30, 2015 the City entered into an agreement with USONA Development, LLC for services providing technical assistance in federal grants management including the Community Development Block Grant (CDBG), HOME Investment Partnership, Emergency Solutions Grant (ESG), Housing Opportunities for Persons with HIV/AIDS (HOPWA), Neighborhood Stabilization Program (NSP) and the Office of Healthy Homes Lead Control (OHHLC) programs. Recent key Housing Division staffing shortages have created the additional need for expanded technical services, which include support for the submission of the FY 2016-2017 Annual Action Plan. On November 5, 2015, the need for an expanded contract was identified to City Council during the Housing Workshop presentation. BACKGROUND In May of 2015, a need for technical assistance in HUD specific grants management was identified. The need was identified through an assessment of staff turnover, shortages, a lack of technical experience, and concerns over the monitoring and timely use of various HUD funds. In June of 2015 the City entered into an agreement with USONA Development, LLC to provide technical expertise in federal grants management and to assist staff in addressing number of outstanding issues previously raised by HUD. William Kubal, the Principal of USONA Development, is recognized as one of the premier experts in HUD grants management. USONA Development is a consulting firm that assists local municipalities and non-profits in delivering solutions to meet the community needs.. Since implementation of the original agreement USONA Development has been instrumental in evaluating and revising program policies and procedures, reviewing and recommending changes to program implementation, assessing current reporting status, training staff on HUD systems, and preparing responses to monitoring reports. USONA Development has been actively participating with the City in quarterly conference calls with HUD's Office of Fair Housing and Equal Opportunity (FHEO) and bi-monthly calls with HUD's San Francisco Regional Office to discuss the City's ongoing work plan to improve performance and to establish best practices for future grants management. ENVIRONMENTAL FINDINGS In accordance with the California Environmental Quality Act (CEQA) Guidelines Section 15378, this item does not qualify as a project and are therefore exempt from CEQA requirements. In addition, the proposed service is not subject to an environmental review under the provision of the National Environmental Policy Act as it is specifically for a supportive service. LOCAL PREFERENCE Local preference is not applicable based on conditions of federal funding. FISCAL IMPACT No new appropriations are needed for this agreement as the additional expense of $21,200 can be absorbed within existing department appropriations. Attachments: Exhibit A - Original Usona agreement dated June 1, 2015 Exhibit B - Amendment #1 to the Usona agreement