Item 28 - 4th Amendment to Agreement Comprehensive Housing Svs
- AGENDA REPORT SUMMARY -
TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Mana*
INITIATED BY: Warren H. Shafer, Director of Redevelopment Services @
David Narevsky, Redevelopment Manager U~
Kris Gridley. Redevelopment Coordinator 0-
DATE: June 30, 1998
SUBJECT: Fourth Amendment to Agreement with Comprehensive Housing Services. Inc. for
Administration of the Community Development Block Grant Housing Rehabilitation
Program
ABSTRACT
In order to continue implementation of the Community Development Block Grant (CDBG) Housing
Rehabilitation Program, an amendment to the City's existing Agreement with Comprehensive Housing
Services, Inc, (CHS) is required. The proposed amendment will extend the term and increase the
maximum amount of the Agreement.
ENVIRONMENTAL REVIEW
The proposed amendment is not subject to CEQA review requirements.
FISCAL IMPACT
Approval of this amendment will require expenditure of up to $16,000 in CDBG funding. A budget
adjustment will be processed to transfer $16,000 from Account Number 5971-6408 (Housing
Revitalization) to Account Number 5971-1799 (Housing Revitalization-Other Professional Fees).
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None.
RECOMMENDATION
It is recommended that the City Council authorize staff to execute the attached Fourth Amendment to the
Agreement with Comprehensive Housing Services, Inc. which will increase the maximum contract
amount to $84,150 and extend the term of the Agreement to June 30, 1999.
ACTION
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+ AGENDA REPORT
CITY OF POW A Y
1bis repon is included on the Consent Calendar, There will be no separate discussion of the repon prior to approval by the
City Council unless members of the Council, staff or public request it to be removed from the Consent Calendar and
discussed separately. If you wish to have this repon pulled for discussion. please fill out a slip indicating the repon number
and give it to the City Clerk prior to the beginning of the City Council meeting.
TO: Honorable Mayor and Members of the City Council
FROM: J_ L. B='='. Ci<y ~
INITIATED BY: Warren H. Shafer, Director of Re evelopment service~
David Narevsky, Redevelopment Manager vI\)
Kris Gridley, Redevelopment Coordinator V
DATE: June 30, 1998
SUBJECT: Fourth Amendment to Agreement with Comprehensive Housing Services.
Inc. for Administration of the Community Development Block Grant
(CDBG) Housing Rehabilitation Program
BACKGROUND
The CDBG Housing Rehabilitation Program was approved by the City Council in 1995. The
Program offers deferred, zero-interest, forgiving loans to low- and very low-income homeowners
to help them rehabilitate or refurbish their homes. The rehabilitation loans are funded by the
City's CDBG Program. On March 14, 1995, the City Council approved the original Agreement
with Comprehensive Housing Services, Inc. (CHS) for administration of the Program. The
Agreement has been amended each year thereafter, to extend the term and increase the contract
amount, to accomodate additional CDBG Grants. This report proposes a fourth amendment to
extend the contract term and increase the maximum amount. The amendment will allow CHS to
continue processing current Housing Rehabilitation Projects and to administer an additional
$120,000 24th-Year (Fiscal 1998-1999) CDBG Grant which should be available in late 1998.
FINDINGS
The total administrative cost for the CDBG Housing Rehabilitation Program has been
approximately 15.2% percent of the total Grant expenditures in the past 12 months of Program
operation. These costs can be broken down as follows:
5,5% CHS's administrative fees
3.0% Fixed costs for loan approval (title reports. appraisals, recordation fees, etc.)
6.7% Inspection and construction management fees
15.2%
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Agenda Report
June 30, 1998
Page 2
Administrative fees have been reduced from previous years in which they averaged 10%. This
is due to the fact that Redevelopment Agency staff have assumed some project management
activities which were previously performed by CHS. Also, CHS currently handles all of the
Poway loan processing from their Orange County office and no longer incurs costs for commuting
to and from Poway.
Based on the Program's past performance, it is estimated that $16,000 should be set aside to cover
CHS's administrative fees and fixed costs for the next fiscal year. This is approximately 9 percent
of the total of the new $120,000 grant plus the $60,000 balance remaining from last year's grant.
With $16,000 set aside for CHS's administrative costs, and $13,600 reserved for construction
management fees, there will be approximately $150,400 grant dollars remaining, which should
fund from 15 to 18 loans. It is recommended that the term of the Agreement with CHS be
extended to June 30, 1999 in order to provide sufficient time for processing the new loans.
ENVIRONMENTAL REVIEW
The proposed contract amendment is not subject to CEQA review.
FISCAL IMPACT
Approval of this amendment will require expenditure of up to $16,000 in CDBG funding. A
budget adjustment will be processed to transfer $16,000 from Account Number 5971-6408
(Housing Revitalization) to Account Number 5971-1799 (Housing Revitalization-Other
Professional Fees). No new appropriation is necessary at this time.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None.
RECOMMENDATION
It is recommended that the City Council authorize staff to execute the attached Fourth Amendment
to the Agreement with Comprehensive Housing Services, Inc. which increases the maximum
contract amount from $68,150 to $84,150 and extends the term of the Agreement through June
30, 1999,
ATTACHMENT
1. Fourth Amendment to Agreement for Consultant Services
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FOURTH AMENDMENT OF AGREEMENT FOR CONSULTANT SERVICES
THIS AMENDMENT is made and entered into this 30th day of June, 1998 by and between the
City of Poway (hereinafter referred to as "Poway") and Comprehensive Housing Services, Inc,
(hereinafter referred to as "Consultant").
The parties hereto mutually agree that the Agreement between the parties made and entered on
the 14th day of March, 1995, is hereby amended as follows:
The first sentence of Paragraph B. of page 8 of the Agreement shall be amended as follows:
B, ComDensation and Reimbursement.
Poway shall pay Consultant a fee not to exceed $84,150 as compensation for consulting
services.
The first sentence of Paragraph C. of page 9 of the Agreement shall be amended as follows:
C. Term of Al!reement.
This Agreement shall be effective from the period commencing March 14, 1995 and
ending June 30, 1999.
All other terms of the Agreement shall remain in effect.
CONSULTANT
By:
Gayle Bloomingdale, President
Comprehensive Housing Services, Inc.
CITY OF POWAY
By:
James L. Bowersox
City Manager
APPROVED AS TO FORM: ATTEST:
By: By:
Stephen M. Eckis, Lori Anne Peoples,
City Attorney Assistant City Clerk
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