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untanglingwebs
El Supremo
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EM SUBMISSION NO.:EME0572013
PRESENTED: 11-18-2013
RESOLUTION TO INCREASE CONTRACTUAL AMOUNT AND
EXTEND CONTRACT DATE WITH JOHN SHAW BUILDERS
FOR COMPLETION OF NSP1 HOUSING
BY THE EMERGENCY MANAGER:
On June 4, 2013, resolution 2013EM102, authorized the Department of Community
and Economic Development to enter into contract #13-035, with John Shaw Builders
for general contractor services to complete an NSP1 development home. It has been
determined a contract extension through December 31, 2013 and $23,623.00 in
additional funds are necessary to complete the homes.
An environmental process and an amendment has been completed. DCED has
identified $23,623.00 in unallocated CDBG funds (FCDBGPRIOR accounts 274-
748.101-502.748 and 274-748.lOt-805.327) to complete the homes. Funding will
be made available in FCDBGPRIOR accounts 274-748.102-502.748 and 274-
748.102-805.327 in the amount of $23,623.00.
IT IS RESOLVED, That proper City Officials are authorized to enter Into Change
Order #1 to #13-035, with John Shaw Builders to increase the contract amount by
$23,623.00 for a total contractual amount of $73,623.00 and to extend the contract
through December 31, 2013 as well as establish spending authority and revenue
recognition in the amount of $23,623.00 in FCDBGPRIOR accounts 274-748.102-
502.748 and 274-748.102-805.327.
DATED 11-18-2013
RESOLUTION STAFF REVIEW
Date
November 5, 2013
Aaenda Item Title:
Resolution to enter into Change Order #1 to Contract #13-035, with John Shaw Builder to increase the contract by $23,623.00, for a new total contract amount of $73,623.00 to complete rehabilitation work on the NSP1 house located at 1611 Welch.
Author: Suzanne Wilcox, Program Manager
Reauestor: Department of Community and Economic Development
BackaroundlSummarv of Prooosed Action:
During the fall of 2012, John Shaw Builder was selected as the general contractor to complete rehabilitation of the house located at 1611 Welch originally being developed by Salem Housing using Neighborhood Stabilization Funds. Although the NSP 1 program ended on Match 19, 2013, the Cityis required to complete all NSP 1-assisted homes in order to comply with HUDfs national objective.
CDBG funds were determined to be an appropriate alternate source to complete the renovation.
Funds were identified and reserved. A contract was executed with John Shaw Builder in the amount of $50,000.00, however that amount only covered the amount of the outstanding invoices.
Additional funds in the amount of $23,623.00 are needed to complete the renovation. These items are all CDBG-eligible. Funding this work will allow the City to complete rehabilitation on the houses so that it can be sold and the City can meet a HUD national objective and close the project. The attached resolution authorizes the additional work needed to complete renovations.
TOTAL CDBG NEEDED: $23,623.00
Financial Implications (i.e.. budget account information~
Financial implications do exist for the City if houses are not completed and sold/rented to income eligible households. All federal funds invested in the project would have to be repaid to HUD.
Budgeted Expenditure: Yes_x_ No____ Please explain, if no:
Reviewed and approved by C. Dotson
CDBG funds available: revenue account FCDBGPRIOR 274-748.102-502.748
expense account FCDBGPRIOR 274-748.102-805.327
Pre-encumbered: Yes_x_ No___ Requisition # 13000 i&iq~
Other Implications (i.e., collective bargaining)
None
Staff Recommendation:
Staff recommends approval of the attached resolutions so that houses may be completed.
APPROVAL
Tracy Atkinson
Chief Officer
Last edited by untanglingwebs on Mon Dec 16, 2013 8:41 pm; edited 1 time in total |
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Sun Dec 15, 2013 7:36 pm |
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untanglingwebs
El Supremo
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This expenditure raises questions to me.
What was the amount of money spent by Salem Housing?
Where did the $50,000 in unpaid invoices come from?
Why did Salem leave the project?
How much was unfinished or was work done in an unsatisfactory manner that necessitated the City having to finish the job? |
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Sun Dec 15, 2013 7:42 pm |
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untanglingwebs
El Supremo
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EM SUBMISSION NO.:EME0752043
ADOPTED: 12-6-13
Resolution to enter into a Development Agreement with Salem Housing Community Development Corporation in an amount not to exceed $31,509.00
BY THE EMERGENCY MANAGER:
Salem Housing was selected as a developer to complete three homes in the NSP1
target areas, but their contract was later canceled. Salem continued operating as
the developer for properties located at 1650 N. Grand Traverse and 611 Welch and
also incurred additional soft costs for the ongoing maintenance of the properties.
The properties are now both nearly complete, and buyers have been identified for
each; and
The City of Flint has determined that it is appropriate to pay Salem the remaining
developer fees for the two properties (upon COA final approval), as well as reimburse the additional soft costs incurred. It is necessary to enter into an agreement with Salem in the amount of $31,509.00 to pay these costs; and
DCED has identified $31,509.00 in unallocated CDBG funds (FCDBGPRIOR accounts
274-748.102-502.748 and 274-748.102-805.327) to complete the homes. Funding
will be made available in FCDBGPRIOR accounts 274-748.102-502.748 and 274-
748.102-805.327 in the amount of $31,509.00.
IT IS RESOLVED, That proper City Officials are authorized to enter into a contract
with Salem Housing Community Development Corporation in an amount not to
exceed $31,509.00 through the period of June 30, 2014, and to establish spending
authority and revenue recognition in the amount of $31,509.00 in FCDBGPRIOR
accounts 274-748.102-502.748 and 274-748.102-805.327.
RESOLUTION STAFF REVIEW
Date
November 25, 2013
Agenda Item Title:
Resolution to enter into a Development Agreement with Salem Housing Community Development Corporation in an amount not to exceed $31,509.00
Author: Suzanne Wilcox, Program Manager
Reguestor: Department of Community and Economic Development
Backaround/Summarv of Proposed Action:
Salem Housing was selected as a developer to complete three homes in the NSP1 target areas.
Several changes have transpired to the original contract, including the cancellation of Salem contract, and the removal of one of the NSP1 houses. The two remaining houses are 1650 N. Grand Traverse, and 611 Welch. In the fall of 2012, City officials entered into contracts directly with contractors (Bedrock Builders and John Shaw Builders) to complete the rehabilitation of the houses.
Salem, however, continued operating as the developer, and incurred additional soft costs for the ongoing maintenance of the properties. The properties are now both nearly complete, and buyers have been identified for each.
The City of Flint has determined that it is appropriate to pay Salem the remaining developer fees for the two properties (upon COA final approval), as well as reimburse the additional soft costs incurred.
It is necessary to enter into an agreement with Salem in the amount of $31,509.00 to pay these costs as follows:
. remaining developer fee for 1650 N. Grand Traverse - $ 6,934.00
. remaining developer fee for 611 Welch - $23,036.00
. remaining soft costs for 1650 N. Grand Traverse - $ 1,265.41
. remaining soft costs for 611 Welch - S 273.79
TOTAL CDBG NEEDED: $31,509.00
Financial ImDiications (i.e.. budget. account Informationf
Financial implications do exist for the City if houses are not completed and sold/rented to income eligible households. All federal funds invested in the project would have to be repaid to HUD.
Budgeted Expenditure: Yes_x_ No____ Please explain, if no:
Account #:
Reviewed and approved by C. Dotson 4u1
CDBG funds available: revenue account FCDBGPRIOR 274-748.102-502.748
expense account FCDBGPRIOR 274-748.102-805.327
Pre-encumbered: Yes_x No Requisition # will be encumbered upon approval
Other Implications (i.e., collective bargaining)
None |
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Sun Dec 15, 2013 7:53 pm |
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untanglingwebs
El Supremo
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| A total of three Salem contracts altered or changed. Interesting that Salem continued to act in a development capacity although it's contract had been terminated. This is not the first time this agency has ignored a directive. |
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Sun Dec 15, 2013 7:55 pm |
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untanglingwebs
El Supremo
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Note: This is an NSP 2 expenditure and the additional funding is coming from Unspent HOME funds.
EM SUBMISSION NO.: EM B O702013
ADOPTED: 12-6-13Resolution authorizing Change Order #4 to the Smith Village Construction Management contract with ROWE Professional Service Company to extend term until January 31, 2014.
BY THE EMERGENCY MANAGER:
Resolution No. 2012EFM123 approved by the Emergency Financial Manager on
November 6, 2012 authorized an NSP-2 funded $51, 520 contract with ROWE Professional Services Company (contract no. 12-130) to provide construction management services to the Smith Village housing development. The contract amount was increased by $56,160.00 though a subsequent change order on February 11, 2013, due to unforeseen circumstance. A second change order increased the contract by $87,168.00 in March 2013, authorized by approval of Resolution No. 2013EFM105 dated March 14, 2013. A third change order increased the contract by $43,000.00 in October 2013, authorized by approval of Resolution No. EM1652013 dated October 4,2013.
ROWE Professional Services Company has requested an extension to its contract due to many obstacles the Smith Village project has faced. Additional time is necessary for ROWE Professional Services Company to oversee the Smith Village project and assist in its completion.
This fourth change order will extend the contract (12-130) until January 31, 2014.
IT IS RESOLVED; that the appropriate City officials are hereby authorized to do all
things necessary to extend the term of ROWE Professional Services Company construction management contract until January 31, 2014.
APPROVED AS TO FORM: APPROVED AS TO FINANCE:
Gerald Ambrose, Finance Director
RESOLUTION STAFF REVIEW
DATE: November 5,2013,
Agenda Item Title:
Resolution authorizing Change Order #4 to the Smith Village Construction Management contract with ROWE Professional Service Company to extend term until January 31, 2014.
Prepared By: The Department of Community and Economic Development
Author: Kevin L. Miller
Requestor: Tracy B. Atkinson
Background/Summary of Proposed Action:
Resolution No. 201 2EFM 123 approved by the Emergency Financial Manager on November 6, 2012 authorized an NSP-2 funded $51, 520 contract with ROWE Professional Services Company (contract no. 12-130) to provide construction management services to the Smith Village housing development. The contract amount was increased by $56,160.00 though a subsequent change order on February 11,2013, due to unforeseen circumstance. A second change order increased the contract by $87,168.00 in March 2013, authorized by approval of Resolution No. 2013EFM105 dated March 14, 2013. A third change order increased the contract by $43,000.00 in October 2013, authorized by approval of Resolution No. EM1 652013 dated March October 4,2013.
ROWE Professional Services Company has requested an extension to its contract due to many obstacles the Smith Village project has faced. Additional time is necessary for ROWE Professional Services Company to oversee the Smith Village project and assist in its completion. This fourth change order will extend the contract (12-130) until January 31, 2014.
Financial Implications:
There are no known financial implications.
Budgeted Expenditure? Yes ~ No C Please explain if no:
Account No. Revenue: FHOMEPRIOR 274-749.181-502.749 and Expense: FHOMEPRIOR 274-749.181-805.276 |
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Sun Dec 15, 2013 8:08 pm |
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untanglingwebs
El Supremo
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The City of Flint, MI Lacked Adequate Controls Over Its Home Investment Partnerships Program
Date Published:
Friday, November 15, 2013
Publication/Report Type:
Audit Reports
Report Number: 2014-CH-1001
State: Michigan
Summary:
We audited the City of Flints HOME Investment Partnerships Program. We selected the City based upon our analysis of risk factors related to Program grantees in Region 5s1 jurisdiction. Our objectives were to determine whether the City complied with Federal requirements and its own requirements in the administration of its Program. This is the third of three audit reports on the Citys Program.
The City did not ensure that for a rental rehabilitation project, (1) Program funds were used in accordance with its contract with a subrecipient and (2) sufficient documentation was maintained to support the use of funds. It also did not ensure that (1) Program funds were used for eligible costs within 15 days of being drawn down from its treasury account and (2) its subrecipient procured all housing rehabilitation services through full and open competition. As a result, it (1) inappropriately used more than $190,000 in Program funds and (2) lacked assurance that an additional $90,000 was used for eligible costs. Further, the U.S. Treasury paid nearly $5,000 in unnecessary interest on nearly $304,0002 in Program funds, which the City disbursed to its subrecipient that was not expended in the required timeframe.
The City did not reimburse its treasury account for Program funds drawn down and decommit additional funds for five owner-occupied rehabilitation projects that were later terminated. It also did not (1) maintain sufficient documentation to support its use of Program funds for a project, (2) ensure that a subrecipient appropriately procured housing rehabilitation services for 14 projects, and (3) accurately report in HUDs Integrated Disbursement and Information System the status of nine projects. As a result, (1) nearly $103,000 in Program funds was not available for eligible activities and (2) the City lacked assurance that more than $17,000 was used appropriately. Further, HUD and the City lacked assurance that the project accomplishments were accurately reported in HUDs system.
We recommend that HUD require the City to (1) reimburse its Program or HUD, for transmission to the U.S. Department of the Treasury, from non-Federal funds more than $195,000; (2) provide sufficient supporting documentation or reimburse its Program from non-Federal funds more than $107,000; and (3) implement adequate procedures and controls to address the findings cited in this audit report. We also recommend that HUD pursue the appropriate administrative actions for inappropriate certifications and ensure that nearly $103,000 in Program funds is used only for eligible Program costs.
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1Region 5 includes the States of Indiana, Illinois, Ohio, Michigan, Minnesota, and Wisconsin.
2This amount is not a questioned cost.
Download(s):
2014-CH-1001.pdf
The online versions of nearly all OIG documents are presented in Adobe's Portable Document Format (PDF). To view documents, you can download Adobe Reader for free. |
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Mon Dec 16, 2013 8:45 pm |
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