Explanation
BACKGROUND: This legislation will authorize funding for the first year of a two-year contract with AmeriNational Community Services, Inc. This contract will begin March 1, 2014 and expire on February 28, 2016. This contract provides servicing of housing and commercial loans for primarily the Community Development Block Grant (CDBG), Community Development Block Grant Recovery (CDBG-R) Programs, Home Investment Partnership Program (HOME), and the Neighborhood Stabilization Program (NSP) grants.
This ordinance is contingent upon the passing of Ordinance 0051-2014, 2014 CDBG Appropriation.
Competitive bids were solicited for this service through VendorServices (commodity codes 94660 and 94649) in 2011. The 2011 Mortgage Loan Servicing RFP provides for four two-year contract periods.
One firm responded and was selected (AmeriNational Community Services, Inc).
Contract Compliance Number is 41-1951655 and expires November 22, 2015.
This legislation is submitted as an emergency measure to ensure uninterrupted servicing of the loan portfolios.
FISCAL IMPACT: AmeriNational Community Services, Inc. receives a service fee based upon the loans serviced each month. The total amount to be authorized for the first year of this two year contract is $120,000.00 This ordinance is contingent upon the passage of the CDBG appropriation scheduled to appear before council on January 27, 2014 (Ordinance #0051-2014). The amount of CDBG funds spent on the contract for the past two completed terms was $92,150.94 in 2011 and $106,523.43 in 2012.
Title
To authorize the director of the Department of Finance and Management to expend $120,000.00 or so much thereof as may be necessary from the Community Development Block Grant (CDBG); to fund the first year of a two-year contract with AmeriNational Community Services, Inc. which provides servicing of housing and commercial loans; and to declare an emergency. ($120,000.00) (AMENDED BY ORD. 0804-2014 PASSED 4/21/2014)
Body
WHEREAS, it is desirous to provide the funds for the first year of a two year contract entered into with AmeriNational Community Services, Inc. for the servicing of housing and commercial loans under the Community Development Block Grant (CDBG), HOME Investment Partnerships Program grant, and Neighborhood Stabilization Program (NSP) grants; and
WHEREAS, the city will enter into a two year contract with the funding for the second year 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 and Management in that it is immediately necessary to enter into a contract with AmeriNational Community Services, Inc. to ensure uninterrupted servicing of loan portfolios, 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 and Management is hereby authorized to enter into the first year of a two year contract with AmeriNational Community Services, Inc. for mortgage loan servicing;
SECTION 2. That the Director of the Department of Finance and Management is hereby authorized to expend $120,000.00 from the Community Development Block Grant Fund, Fund 248, as follows:
Fund 248: Subfund |
Object Level 1 |
Object Level 3 |
OCA |
Amount |
001 |
03 |
3336 |
451404 |
$100,000 |
002 |
03 |
3336 |
451406 |
$20,000 |
TOTAL: |
$120,000 |
SECTION 3. That this contract is awarded in accordance with Section 329.14 of the Columbus City Codes, 1959;
SECTION 4. 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.