Explanation
BACKGROUND
This legislation authorizes the Director of Development to modify the contract with AmeriNational Community Services, LLC for loan servicing to add $30,000, to extend the contract end date to January 31, 2021, and to add/remove services as necessary throughout the contract period as loans are added/removed from the loan portfolio over time.
AmeriNational services loans provided to small business, home owners, home builders, and multi-family unit builders funded by the city’s Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), and the Neighborhood Stabilization Program (NSP) grants.
Competitive bids were solicited for this service through Vendor Services in 2011. The 2011 Mortgage Loan Servicing RFP provided for four, two-year contract periods. One firm responded and was selected (AmeriNational Community Services, LLC).
The original procurement effort and contract, including most renewals, were managed by the Department of Finance and Management. In 2019, the Department of Development took ownership of the contract as the loans in the portfolio are held by the Department of Development. Since taking over the contract, Development has begun the process of reviewing the loan portfolio. The review will continue in 2020 so when the service need is advertised in mid-2020 for a new contract, the loan data will be accurate and portable to a vendor. If, during the review of the portfolio, it is determined that services previously provided or not previously provided are needed, the department seeks authority to modify the services without seeking further council approval. This would be done through updating the services forms AmeriNational uses to manage loan portfolios.
Prior contracts/renewals were authorized as follows:
Ordinance 0139-2012 $185,000.00
Ordinance 0112-2013 $120,000.00
Ordinance 0146-2014 $120,000.00
Ordinance 0362-2015 $118,260.00
Ordinance 0400-2016 $103,753.17
Ordinance 0995-2017 $102,463.00
Ordinance 0166-2018 $ 80,000.00
Ordinance 0218-2019 $ 80,000.00
The total compensation for all authorized parts of prior renewals and this modification number 1 results in a total contract amount of $939,476.17.
Emergency action is requested in order to continue to services without interruption.
FISCAL IMPACT
The total amount to be authorized for this contract modification is $30,000.00. Funds are available in the Department of Development, Division of Housing, 2020 CDBG budget. This ordinance is contingent upon passage of Ordinance 3182-2019, the 2020 CDBG budget.
Title
To authorize the Director of Development to modify the contract with AmeriNational Community Services, LLC for loan servicing by adding $30,000.00, extending the contract end date, allowing changes in services provided depending upon the loan needs in the portfolio; and to declare an emergency. ($30,000.00)
Body
WHEREAS, the Director of Development desires to modify the contract with AmeriNational Community Services, LLC for loan servicing to add $30,000, to extend the contract end date to January 31, 2021, and to add/remove services as necessary throughout the contract period as loans are added/removed from the loan portfolio over time; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to authorize the Director to modify this contract in order to continue program services without interruption, 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 expenditure of $30,000.00 or so much thereof as may be necessary is hereby authorized in Fund 2248 (Community Development Block Grant), Dept-Div 44-10 (Housing), in Object Class 03 (Services) per the accounting codes in the attachment to this ordinance.
SECTION 2. That, t the end of the grant period, any repayment of unencumbered balances required by the grantor is hereby authorized and any unused City match monies may be transferred back to the City fund from which they originated in accordance with all applicable grant agreements.
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 5. That the Director of the Department of Development be and is hereby authorized to modify the contract with AmeriNational Community Services, LLC for loan servicing to add $30,000, to extend the contract end date to January 31, 2021, and to add/remove services as necessary throughout the contract period as loans are added/removed from the loan portfolio over time.
SECTION 6. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this Ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.