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untanglingwebs
El Supremo
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EFM SUBMISSION NO.: 2012 EFM
ADOPTED:10/3/2012
BY THE EMERGENCY FINANCIAL MANAGER:
Resolution to authorize $13,686.25 to Community Improvement Group, LLC for program management services for the Neighborhood Stabilization Program (NSP1)
The Housing and Economic Recovery Act (HERA) of 2008 was approved by Congress on July 30, 2008 with regulations for the NSP program issued on September 29, 2009. The overall purpose of the NSP program is to assist in the redevelopment of abandoned or foreclosed homes under the portion of HERA entitled Emergency Assistancefor Redevelopment ofAbandoned and Foreclosed Homes.
On, March 23, 2009, the City of Flint was allocated $4,224,621 in funding through the U.S. Department of Housing and Urban Development’s (HUD) Neighborhood Stabilization Program 1 (NSP1) authorized by HERA. Program management staff during this time solicited for proposals from developers and other support services that facilitated the implementation of the NSP 1 program.
During April, 2010, the City hired new program management staff for assignment to the NSP1 program. Subsequently, a monitoring review was conducted by FIUD after new staff was hired to manage the NSPI
program. During HUD’s review, it was recommended by HUD that the new program management staff lacked the capacity to manage the NSP1 program and suggested that City retain Community Improvement
Group, LLC., for program management services
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Community Improvement Group, LLC. was retained by the City and a contract for $244,916.00 was executed for services beginning July, 2010 through September, 2011. Two payments totaling $13,686.25
are due to the organization at this time. Upon receipt of payment, the organization is to return all documents pertaining to program management services for the NSP1 program.
Funds for this purpose are to be charged to account 101-000.000-202.600.
IT IS RESOLVED, that appropriate City Officials are authorized to do all things necessary to make payment in the amount of$13,686.25 to Community Improvement Group, LLC., for program
management services for the NSP1 program.
DATE: September 22, 2012
A2enda Item Title:
Resolution to authorize $13,686.25 to Community Improvement Group, LLC for program
management services for the Neighborhood Stabilization Program (NSPI) program
Prepared By: Karen A. Morris, DCED Program Manager
Author: Tracy B. Atkinson, DCED Director
Requestor: Department of Community and Economic Development (DCED)
Back2round/Summary of Proposed Action:
On, March 23, 2009, the City of Flint was allocated $4,224,621 in funding through the U.S. Department
of Housing and Urban Development’s (HUD) Neighborhood Stabilization Program 1 (NSP1) authorized
by HERA. Program management staff during this time solicited for proposals from developers and other
support services that facilitated the implementation of the NSPI program.
During April, 2010, the City hired new program management staff for assignment to the NSP1 program.
Subsequently, a monitoring review was conducted by HuUD after new staff was hired to manage the NSP I
program. During HIJD’s review, it was recommended by HUD that the new program management staff
lacked the capacity to manage the NSP1 program and suggested that City retain Community Improvement
Group, LLC., for program management services.
Community Improvement Group, LLC. was retained by the City and a contract for $244,916.00 was
executed for services beginning July, 2010 through September, 2011. Two payments totaling $13,686.25
are due to the organization at this time. Upon receipt of payment, the organization is to return all
documents pertaining to program management services for the NSP 1 program.
Financial Implications:
The approval of this resolution may assist the City with meeting its compliance requirements for the
NSPI program.
Bud2eted Expenditure: Yes X No Please explain, if no:
Account #: Reviewed and approved by C. Cheshier t
Revenue account number: and acc unt number: 10 1-000.000-202.600
Pre-encumbered: Yes No~ Requisition #
Other Implications: There are no other known implications at this time.
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Last edited by untanglingwebs on Sun Oct 21, 2012 8:19 am; edited 4 times in total |
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Sun Oct 14, 2012 9:24 am |
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untanglingwebs
El Supremo
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DCED submitted bid proposals for this position and there were two responses, John Carpenter and Greg Averyhardt. Averyhardt's application was not complete. Eason would not give the contract to Carpenter, so he followed new procurement policies that did not follow HUD guidelines.
Kathleen Hines, a HUD specialist monitored the City of Flint between April 23-26, 2012. The report on this visit cited Flint in Finding #3 for "failure to properly procure Project Management Consultants for the NSP1 Program.
"Condition:
The city executed an accelerated (7 day) Request for Proposals for the management of the city's NSP1 Program. We reviewed the request for proposal, the proposal ranking document and the City Council resolution recommending the award to CIG, Inc. The city failed to solicit a significant number of qualified sources in order to ensure maximun open and free competition.
There was no evidence of competition.
Criterion: 24 CFR section 85.36 (d)(3) "Procurement by competitive proposals (ii) Proposals will be solicited from an adequate number of solicited sources."
Cause:
The city's procurement process was not followed. The city process stipulates that qualified organizations will be provided bids via email and facsimile, however there was no evidence that this occurred. Evaluation criteria was also provided, however no evaluation took place.
Finally there was no evidence of cost comparison prior to executing the agreement with the management company. It appears that although management firms reside in the city , they were either not provided an opportunity to bid or failed to respond.
This became a sole source solicitation without justification.
Effect:
The city's failure to properly procure the management company has resulted in diallowance of the costs paid under the NSP1 agreement. All funding for this agreement must be paid from a non-federal source.
Recommended Corrective Action:
The city must repay the full amount drawn from this activity back to the US Treasury from non feeral funds. The grantee mmust then reallocate the amount totaling $244,916 to another NSP 1 eligible activity and expend the funds by march 2013
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Sun Oct 14, 2012 9:48 am |
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untanglingwebs
El Supremo
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This resolution was authored by Tracy Atkinson and approved by Croft, Solis, Kurtz and Brown.
From the resolution:
" During April, 2010, the City hired new program management staff for assignment to the NSP1 program. Subsequently, a monitoring review was conducted by FIUD after new staff was hired to manage the NSPI
program. During HUD’s review, it was recommended by HUD that the new program management staff lacked the capacity to manage the NSP1 program and suggested that City retain Community Improvement
Group, LLC., for program management services "
Flint's resolution Lie:
It is obvious from the monitoring report that the resolution is in error and it was CIG that was removed. CIG has been a reliable company in other areas of the state, but it was Flint that entered into a fraudulent and indefensible contract. Acyually another monitoring report cited a failure of a CIG representative to properly monitor a subcontractor. One has to wonder if that was a condition orchestrated by past city officials to help companies they supported. |
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Sun Oct 14, 2012 9:57 am |
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untanglingwebs
El Supremo
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Another hint that this was not a legitimate NSP1 expenditure-it is being paid out of the general fund (101).
Funds for this purpose are to be charged to account 101-000.000-202.600. |
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Sun Oct 14, 2012 1:05 pm |
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untanglingwebs
El Supremo
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2012 EFM 093
Adopted: 10/11/12
BY THE EMERGENCY MANAGER:
Resolution to Repay the U. S. Department of Housing and Urban Development $98,079.15
For Ineligible Neighborhood Stabilization Program (NSP1) Expense
The City of Flint received a Neighborhood Stabilization Program (NSPI) grant B-08-UN-26-0005 in the amount of $4,224,621 in February 2009. The previous administration awarded several contracts which have been under scrutiny by the U.S. Department of Housing and Urban Development. Fundswere awarded in the amount of $30,000 to Spartan-Akers to provide spec
writing and cost estimates for NSP I structures. Funds in the amount of $250,000 were also awardedto Circle of Love for homebuyer counseling.
HUD monitored the City’s NSP1 program in May, 2011, and again in July, 2012. They cited the City for not following regulations. The City must repay funds expended on these two activities.
The repayment is in response to Finding #3 Failure to Follow Procurement Regulations that cited the City for failure to conduct an open and competitive bid process when entering into contract with
Spartan-Akers to prepare specifications and cost estimates. The City made draws from HUD totaling $17,205.00 for work performed by Spartan-Akers from October 2010 to June 2011.
The second is in response Finding # 2 Ineligible Activity Housing counseling services provided by non-HUD certified housing counseling organization and failure to provide certification to potential homebuyers that cited the city for the Circle of Love contract. The City made draws from HUD totaling $80,874.15 for Circle of Love from February through July 2011.
IT IS RESOLVED, That appropriate City officials are authorized to do all things necessary to repay the U. S. Department of HUD $98,079.15 for ineligible Neighborhood Stabilization Program
(NSPI) expense from account 101-000.000-229.000 |
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Sun Oct 21, 2012 8:32 am |
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untanglingwebs
El Supremo
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The other administration was the Walling admnistration and the activities in question were under the contol of Greg Eason and assisted by Tracy Atkinson, Jackie Foster and Wendy Johnson.
Circle of Love moved to Flint and allegedly used grant funding to supply their new location. The new location is probably the site not certified. All approved purchasers had to be re-trined by a certified agency. Charlotte Edwards served on the Circle of Love Board of Directors.
Spartan-Akers was a Detroit based agency. Many of eason's choices were from Detroit.
Lack of Procurement is a frequent complaint from HUD of the Walling/Eason administration. |
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Sun Oct 21, 2012 8:39 am |
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whiteknight
F L I N T O I D
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| If the money was spent improperly shouldn't the organization have to pay it back? There are guide lines on how this money is to be spent so if if grant money was used for an expense that isn't covered why are we the citizens the ones picking up the tab? |
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Mon Oct 22, 2012 6:10 am |
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untanglingwebs
El Supremo
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Because the City of Flint had weak and inexperienced monitors. The monitors allowed the expenditures because they did not know the HUD rules and regulations. The money was granted to Flint (except NSP2 came from HUD to MSHDA to Flint) and Flint had the responsibility to ensure that it was being used properly.
MHSDA also dropped the ball as they had embedded staff that was to ensure compliance.
Eason kept the trained monitors out of the loop. Also you are dealing with non profits that probably lack the money to repay for violations, especially violations the city allowed them to make.
Notice that many of the paybacks are because Flint did not follow proper procurement rules and may not have even properly bid out the services. That is similar to the coruuption investigations occurring in Detroit and with Ficano. No bid or improperly bid contracts sometimes mean kickbacks, croneyism and other illegal acts. |
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Mon Oct 22, 2012 3:27 pm |
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00SL2
F L I N T O I D
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| Too bad "licensed, bonded and insured" doesn't seem to apply in any way to these mishandlings |
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Mon Oct 22, 2012 5:56 pm |
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