TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Russell Bunim, Community Development Director
1. Subject
title
Amendment to the SLICE Business Assistance Façade Program Policies and Procedures to revise contractor procurement responsibilities
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2. Summary
Approve revisions to the Supporting Local Investment in Commercial Exteriors Business Assistance Façade Program Policies and Procedures to authorize participating applicants to conduct their own contractor procurement and selection processes, subject to City review, applicable procurement requirements, and program compliance standards.
3. Recommended Action
recommendation
1. Approve the revised Policies and Procedures for the SLICE Business Assistance Façade Program.
2. Authorize staff to submit the revised Policies and Procedures for the SLICE Business Assistance Façade Program to the Department of Housing and Urban Development for approval.
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4. Fiscal Impact
None.
5. Strategic Plan Goals
Goal 2: Enhance Economic Development and Achieve Fiscal Stability
6. Discussion and Background
The City of Orange established the Supporting Local Investment in Commercial Exteriors (SLICE) Business Assistance Façade Program to support eligible businesses and property owners with exterior improvements that enhance commercial properties and contribute to the City's economic vitality. Under the currently adopted Policies and Procedures, the City administers the contractor bidding process, including solicitation of bids, coordination of the bidding process, and contractor selection and award. Staff proposes to revise the procurement process to allow participating applicants to manage their own contractor solicitation and selection, subject to established program requirements and City oversight.
Staff recommends a modification to the SLICE Program's contractor procurement process to allow applicants to manage procurement and contractor selection for their respective projects. This approach would align more closely with the City's existing administrative practice for other Community Development Block Grant (CDBG) funded activities, in which subrecipients manage procurement for their projects, subject to applicable requirements and City oversight.
Allowing applicants to manage their own procurement would help expedite program implementation by reducing the administrative steps associated with coordinating separate City-led bidding processes for multiple projects. This approach would provide applicants greater flexibility to solicit contractor proposals, evaluate qualified contractors, and coordinate project schedules, helping eligible projects move forward more efficiently.
To maintain appropriate oversight and compliance, applicants would be required to follow the procurement standards established in the revised Policies and Procedures. Applicants would be required to submit their procurement procedures for City review, provide supporting procurement documentation, demonstrate the reasonableness of proposed costs, and obtain City review and approval of the selected contractor and proposed construction contract, as applicable, before proceeding with construction. The City's CDBG consultant will be retained to assist with reviewing applicant procurement documentation, evaluating compliance with applicable program requirements, and supporting project implementation and monitoring. The consultant will provide technical and compliance support to staff throughout the procurement and construction process. The City will retain responsibility for program oversight and final determinations regarding project eligibility, procurement acceptability, and authorization to proceed.
The revised Policies and Procedures will also establish requirements for procurement documentation, contractor qualifications, conflicts of interest, price reasonableness, contract execution, and authorization to proceed. Applicable environmental review, labor standards, permits, and other federal, State, and local requirements will continue to apply. No construction or other prohibited choice-limiting action may occur before the applicable requirements have been satisfied.
The proposed amendments are intended to improve administrative efficiency and facilitate timely delivery of projects, while maintaining the City's fiduciary and compliance responsibilities for CDBG funds.
The proposed revisions to the SLICE Program Policies and Procedures would streamline project delivery, provide applicants with greater flexibility in contractor selection, and align the program's administration more closely with the City's approach to other CDBG-funded activities. With established procurement standards, consultant support, and continued City oversight, the revised process is intended to facilitate timely implementation while maintaining applicable program compliance requirements.
7. ATTACHMENTS
• Revised SLICE Program Guidelines