7.E.
City Council Meeting - FINAL
- Meeting Date:
- 07/03/2018
- From:
- Sarah Darr, Housing Director
Information
TITLE:
Consideration and Approval of Contract: Consideration and Approval of a sole source contract with Kuehl Enterprises, LLC, an Arizona Limited Liability Corporation in the amount not to exceed $79,781.70 including hours, travel and lodging, to work with the Housing Authority to realign the programs in order to achieve cost savings / fiscal sustainability, increase efficiency, and improve operations and customer service.
STAFF RECOMMENDED ACTION:
Approve contract with Kuehl Enterprises in the amount of not to exceed $79,781.70 including hours, travel and lodging.
Executive Summary:
This contract will facilitate programmatic realignment within the Housing Authority programs to implement best practices centered on Asset Based Management (ABM) and compliance, creating a nimbler structure, improving efficiency and customer service. Due to the recent retirement of a program manager and the heavy daily workload borne by staff, a consultant is necessary to assist in the design and management of this programmatic realignment. Current staff does not have the capacity to take advantage of the opportunity created by the retirement of the Section 8 manager to design and implement this reorganization without additional support.
Financial Impact:
The total contract price is $79,781.70 and the cost will be split between Public Housing and the Housing Choice Voucher (HCV) programs.
The public housing portion, totaling $31,828.35, will be paid from Capital Fund Grants; this is an eligible expense and there is budget capacity for this amount in this program.
The HCV portion of $47,953.35 will be split between $40,000 in identified salary savings from Community Development and $7,953.35 from HCV operating income. Budget Team has approved the reallocation of funding for this purpose.
The public housing portion, totaling $31,828.35, will be paid from Capital Fund Grants; this is an eligible expense and there is budget capacity for this amount in this program.
The HCV portion of $47,953.35 will be split between $40,000 in identified salary savings from Community Development and $7,953.35 from HCV operating income. Budget Team has approved the reallocation of funding for this purpose.
Policy Impact:
Programmatic realignment also requires a complete review of existing workflows, policies and procedures. Not only will there be new procedures to document, there are also policy inconsistencies between the Housing Choice Voucher and Public Housing programs which must be addressed for program consistency. While there are regulatory differences between the programs, several of the inconsistencies are the result of historic policies that were never changed/updated, style differences between program managers, etc.; these inconsistencies are confusing to staff and clients and need to be addressed. Review and alignment of policies will take time and effort; Kuehl Enterprises will facilitate and support this process.
Connection to Council Goal, Regional Plan and/or Team Flagstaff Strategic Plan:
Support development and increase the inventory of public and private affordable housing for renters and homeowners throughout the community.
Has There Been Previous Council Decision on This:
There has been no previous Council decision on this matter.
Options and Alternatives:
1.) Approve the contract as a sole source procurement with Kuel Enterprises, LLC
2.) Not approve the contract.
2.) Not approve the contract.
Background and History:
The Housing Authority programs consist of two main programs, the Public Housing Program and the Voucher Programs. Currently, these programs are structured to be overseen by separate managers and operated separately. The manager that oversaw the Voucher Programs recently retired, creating an opportunity to revise the staffing structure to realize greater financial sustainability and gain programmatic consistencies were appropriate. Additionally, the history of separate program operation has led to unnecessary inconsistencies over time. While there are fundamental differences between Public Housing and the Voucher Programs, many areas that can be aligned and simplified. A full policy and procedure review, as well as revision, is necessary to not only align functions where appropriate but to also incorporate technology and industry changes.
Key Considerations:
Programmatic consistency and implementation of best practices is critical to sustaining these federally funded programs over time.
Kuehl Enterprises LLC (KE) is the identified firm to provide the services necessary to accomplish the goals of this realignment. Procurement staff have reviewed and approved the Sole Source Procurement request.
Kuehl Enterprises LLC (KE) is the identified firm to provide the services necessary to accomplish the goals of this realignment. Procurement staff have reviewed and approved the Sole Source Procurement request.
Community Benefits and Considerations:
The total contract price is $79,781.70 and the cost will be split between Public Housing and the Housing Choice Voucher (HCV) programs.
The public housing portion, totaling $31,828.35, will be paid from Capital Fund Grants; this is an eligible expense and there is budget capacity for this amount in this program.
The HCV portion of $47,953.35 will be split between $40,000 in identified salary savings from Community Development and $7,953.35 from HCV operating income. The HCV program is projected to earn net administrative income of approximately $20,000 (not including this contract) this fiscal year; thus, the program has the capacity to cover the extra cost of this contract. Administrative net income is out performing budget primarily because of salary savings from the retirement of the Section 8 manager. It is important to note that the leave pay out connected with the retirement was fully recorded as a liability, and after year-end adjustment for changes in accrued leave balances, will have little impact on net administrative income.
The public housing portion, totaling $31,828.35, will be paid from Capital Fund Grants; this is an eligible expense and there is budget capacity for this amount in this program.
The HCV portion of $47,953.35 will be split between $40,000 in identified salary savings from Community Development and $7,953.35 from HCV operating income. The HCV program is projected to earn net administrative income of approximately $20,000 (not including this contract) this fiscal year; thus, the program has the capacity to cover the extra cost of this contract. Administrative net income is out performing budget primarily because of salary savings from the retirement of the Section 8 manager. It is important to note that the leave pay out connected with the retirement was fully recorded as a liability, and after year-end adjustment for changes in accrued leave balances, will have little impact on net administrative income.
Community Involvement:
By the end of this process, the Housing Authority programs will have a nimbler structure that is more efficient, duties will be better matched to skill sets, there will be consistency between the program policies and processes, increased quality control, greater staff empowerment and professional development. Additionally there will be more flexible work groups, better policies and procedures, and updated job descriptions.
The ultimate community benefit will be realized in efficient and financially sustainable Housing Authority programs providing housing services in the Flagstaff community.
The ultimate community benefit will be realized in efficient and financially sustainable Housing Authority programs providing housing services in the Flagstaff community.
Expanded Options and Alternatives:
None