TITLE
The Mayor and City Council shall discuss and possibly take action to enter into an amended contract with Central Arizona Association of Governments in the amount of $24,043.60 for the purposes of administering the Community Development Block Grant to be paid from the Grants Fund, Engineering, Technical Services (22044145-53340-12401). Discussion and Action.
AGENDA ITEM DESCRIPTION
In March 2011, the Mayor and City Council approved a contract with Central Arizona Association of Governments in the amount of $34,001 to provide administrative services for the Community Development Block Grant.
Historically, since the City of Maricopa began receiving Community Development Block Grant Funds, a contract has been approved with CAAG to write and administer the CDBG funds through the life of each grant. Maricopa has chosen to submit grant applications for one project each year or every other year. Based on submitting one project, CAAG has charged at 10% administration fee.
Upon initial review of the grant contract received from the Arizona Department of Housing, it was determined Central Arizona Association of Government's Administration fee was calculated at 12% and the contract is being amended to reflect 10% or a savings of $9,957.40 to be placed towards the project. Central Arizona Association of Governments will be administering the Maricopa Southside Water System Improvements/Fire Hydrants.
The State of Arizona has a partnership with the regional Councils of Governments (COGs) to provide both technical and administrative assistance to CDBG grantee communities. Central Arizona Association of Governments (CAAG) has expertise in CDBG program administration and is often contract by local governments to assist with application preparation and contract administration. These services may include, but are not limited to, attending application workshops, assisting with application scheduling, assisting with or developing project concepts, assisting with or performing public hearings, assisting with or compiling CDBG applications, assisting with or conducting special surveys, and assisting with conducting environmental reviews.
COGs are paid for administrative services by communities in their region from administration funds received as part of those community's CDBG grants. The extent of administrative services provided by the COG to a community is decided between the COG and community. It may be as minimal as application review or as extensive as full CDBG grant administration. COGs and communities must enter into a contract if the COG is going to provide more extensive administrative services that the application reviews. The contract must contain the following: scope of services, timeline for providing services, a not to exceed total services cost, the unit cost by which services will be paid whether by task or by hour, and method and procedures by which services will be paid. This request is to utilize CAAG for full CDBG administrative services. There is no cost to the City aside from the amounts utilized from CDBG funding allocations.
STAFF RECOMMENDATION
Staff recommends entering into the amended contract with Central Arizona Association of Governments in the amount of $24,043.60 for the purposes of administering the Community Development Block Grant.