HomeMy WebLinkAboutB- 7 Staff Report Blanket PO Francisco R. Joseph and AssociatesThe Honorable Chairman and Members of the Board
Subject: Blanket Purchase Order No. 310836/Francisco R. Joseph & Associates
May 5, 2003
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CONSENT ITEM
TO: THE HONORABLE CHAIRMAN AND MEMBERS OF THE BOARD
FROM: MICHAEL HENNESSEY,ECONOMIC DEVELOPMENT/REDEVELOPMENT DIRECTOR
VIA: RICK COLE, EXECUTIVE DIRECTOR
DATE: MAY 5, 2003
SUBJECT: BLANKET PURCHASE ORDER NO. 310836/FRANCISCO R. JOSEPH & ASSOCIATES
RECOMMENDATION
It is recommended that the Board approve the increase to blanket purchase order number 310836
for Francisco R. Joseph & Associates in the amount of $26,300.
BACKGROUND
In July 2002, staff issued a blanket purchase order to Francisco R. Joseph & Associates in the amount
of $76,320. This amount was to fund project management services for the CDBG Minor Home Repair
Grant Program, the HOME Loan Rehabilitation Program, and the Commercial Rehabilitation Program.
Project management service amounts for the Housing Rehabilitation Programs were estimated at
20% of the grant and loan amounts utilized for actual rehab. Because the HOME Loan Program is
based on actual demand and utilizes County rather than City funding for the loan proceeds,
estimates of the actual loan amounts are more tentative. Increases to the blanket purchase in three
areas are requested as follows:
1. CDBG Minor Home Repair grants have been issued as estimated; however, the HOME
Loan Program has exceeded the original estimate due to greater demand. Loans funded this fiscal
year total $271,200. Using the 20% administrative guideline, the program management allocation
should be $54,240. This is an increase of $17,920 over the amount originally allocated.
2. The Agency will shortly initiate the marketing process for selling the ROP-4 House. In
order to meet its low-to-moderate income housing production requirements, the Agency is
anticipating marketing the home at fair market value with a silent second loan, pending Board
approval. Francisco R. Joseph & Associates will review the in-house application list to determine
income eligibility. A budget of $1,080 is available for this service, but was not included in the original
blanket purchase order.
The Honorable Chairman and Members of the Board
Subject: Blanket Purchase Order No. 310836/Francisco R. Joseph & Associates
May 5, 2003
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3. The Agency budgeted for program management of the Agency/CDBG Façade
Improvement program, but only $1,700 was included in the original blanket purchase order due to
timing issues. Staff anticipates that project management will not exceed $9,000 for this project;
therefore staff desires to increase this portion of the blanket purchase order by $7,300 to meet the
$9,000 requirement.
FISCAL IMPACT
Only the additional $17,920 for the HOME Loan program is not budgeted, and will increase Agency
expense account number 81-10-155-000-6345/505302 by the same amount. With the increased
number of HOME Loans funded, there is also a $10,000 increase in administrative subsidy revenues
which the City receives. This will increase Agency revenue account number 81-10-155-000-
4899/505302 by the same amount. The net expense of $7,920 will be funded from the 20% set aside
fund balance.
PREPARED BY ROSEANNA J. JARA