TO: Mayor and Members of City Council
THRU: Jay Reinstein, Assistant City Manager
FROM: Cindy Blot, Economic and Community Development Director
DATE: June 25, 2018
RE:
Title
Authorizing the City Manager to Execute Contract for the CDBG-DR/HMGP Consultant
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Desirable Place to Live, Work and Recreate
Executive Summary:
On April 20, 2018, Cumberland County, as the sub-recipient to the State, and the City of Fayetteville co-authored an RFP to hire a consultant to assist with the $15,325,000 in CDBG-DR projects along with the $4,700,000 of Hazard Mitigation Grant Program (HMGP) projects. The City does not have the expertise or the capacity to oversee and manage the various CDBG-DR and HMGP related projects. The consultant will provide all of the necessary program planning and project management expertise, including the provision of on-site personnel for the successful implementation and completion of the projects.
The consultant will manage all designated construction, rehabilitation and repair activities to include but are not limited to, bid award process, cost analysis, inspections, contractors invoice review, payment approval along with managing all acquisition, demolition and clearance activities related to the HMGP.
Background:
Cumberland County was awarded the CDBG-DR funds from the NC Department of Public Safety as a sub-recipient. The State only released two-thirds of the funding for a two year period in the amount of $23,260,000. Of that amount, the City will receive $15,325,000 which was appropriated by City Council on December 11, 2017. The remaining funds of $11,685,328 will be made available in year three to Cumberland County, with the City receiving $8,042,000 of that amount.
In accordance with the grant agreement with Cumberland County, the City will carry out the following CDBG-DR activities:
1. Housing Recovery- Single family homeownership rehabilitation and reconstruction; mobile home repair; housing repair reimbursement; small rental repair; and affordable single family ownership.
2. Multi-Family Rental Housing- A consultant will help guide the parties in selecting an experienced individual that demonstrates the capacity to carry out the activities in accordance with HUD guidelines and contractual obligations
3. Community Recovery- The City and County will collaborate as a part of the homelessness initiative to include a Day Center.
The City of Fayetteville is receiving an HMGP allocation of $4.7 million which was appropriated by City Council on May 29, 2018. HMGP dollars can be used for property acquisition, demolition and elevation. Of the 210 applications received by residents, only 28 properties, many within the Hollywood Heights community, met the State’s criteria and could be accommodated under the cap of available funds.
Issues/Analysis:
The City of Fayetteville staff does not have the expertise in managing CDBG-DR and HMGP related projects. This is the first time that the State of NC has received CDBG-DR dollars from the Federal Government thus requiring the expertise of an outside consultant.
Budget Impact:
No General Fund dollars are needed for the CDBG-DR and HMGP projects. All funding is included in the dollars received by the State. The State is currently considering increasing the allocation in both categories based on the current needs of the counties.
Options:
City Council to authorize the City Manager to execute a contract with the selected consultant
City Council does not authorize the City Manager to execute a contract with the selected vendor and provides further direction to staff
Recommended Action:
City Council to authorize the City Manager to execute a contract with the selected consultant
Attachments:
RFP