Explanation
BACKGROUND: This legislation will authorize a contract with AmeriNational Community Services, Inc. through February 28, 2006 for the servicing of housing, and commercial loans under the Community Development Block Grant (CDBG) Program and the Home Investment Partnership Program. Competitive bids were solicited for this service in December of 2003. The original RFP contemplates additional two-year contract periods. Efforts were made through EBO and others to identify MBE/FBE's which might be interested in submitting proposals. One MBE was identified but chose not to submit a proposal.
FISCAL IMPACT: This initial contract with AmeriNational is for 25 months; the first month (beginning 2/1/04) will be used for the transition of the portfolio from the current service contract. The following 24 months (beginning 3/1/04) AmeriNational Community Services, Inc. will begin loan servicing. AmeriNational Community Services, Inc. (beginning 3/1/04) will receive a service fee based upon the loans serviced each month. The total amount to be authorized for this contract is $300,000.00 for the first thirteen-month period. Compensation for the second year of the contract is subject to the approval and appropriation of funds by City Council.
2004 CDBG funds have been approved by City Council, Ordinance #2310-2003, in the adoption of the 2004 "Consolidated Plan" Action Plan budget and appropriated by Ordinance #2650-2003.
This legislation is submitted as an emergency measure to ensure uninterrupted servicing of the loan portfolios
Title
To authorize and direct the Director of the Department of Finance to enter into an agreement with AmeriNational Community Services, Inc. through February 28, 2006 for the servicing of housing and commercial loans under the CDBG program; to authorize the expenditure of $300,000.00 or so much thereof as may be necessary of Community Development Block Grants Funds; and to declare an emergency. ($300,000.00)
Body
WHEREAS, it is desirous to enter into an agreement with AmeriNational Community Services, Inc. for the servicing of housing and commercial loans under the CDBG program; and
WHEREAS, the city will enter into a 25 month contract with the funding for the last 12 months of the contract being contingent on the approval and appropriation of funds by City Council; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance in that it is immediately necessary to enter into a contract with AmeriNational Community Services, Inc. to ensure that sufficient time is allowed for the transition of the loan portfolio, thereby preserving the public health, peace, property, safety, and welfare; Now, Therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Finance is hereby authorized to enter into an agreement with AmeriNational Community Services, Inc. through February 28, 2006; and that the expenditure of $300,000.00 or so much thereof as may be necessary from the Community Development Block Grant Fund; Fund 248; Subfund No. 001 and 002, Department 45-01 is authorized to fund the first 13 month period of the contract as follows;
Object Object
Subfund Level 1 Level 3 OCA Amount
001 03 3336 454015 $153,000.00
002 03 3336 454016 $147,000.00
Total $300,000.00
Section 2. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.