Item 14 - Ammnd to Contract Agreement w/Comprehensive Housing Svs
r- AGENDA REPORT SUMMARY _
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- '1.'0: Honorable Mayor and Members of the City Council
Honorable Chairman and Members of the Redevelopment Agency
FROM: James L. Bowersox, City Manager/Executive Dire~
INITIATED BY:...-...John D. Fitch, Ass i stant City Manager /Assi stant Execut i ve Di rector
~~arren H. Shafer, Director of Redevelopment Services
Kris Gridley, Redevelopment Coordinator~
DATE: August 23, 1994
SUBJECT: Amendment to Contract Agreement with Comprehensive Housing Services,
Inc.
ABSTRACI'
This action will amend a previously approved contract between the Redevelopment Agency
and Comprehensive Housing Services, Inc. (CHS) in order to revise the hourly billing
rate and increase the maximum contract amount from $50,000 to $135,000. CHS, I nc . i s
the consulting firm that administers the Redevelopment Agency's Affordable Housing
Rehabilitation Loan Program. The proposed changes are recommended because the Agency
has received more than four times the number of loan applications originally expected.
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ENVIRONMENTAL REVIEW
The proposed contract amendment is not subject to environmental review.
FISCAL IMPACT
No immediate fiscal impact will result from approval of the contract amendment. Funding
previously appropriated for the Affordable Housing Rehabil itation Program wi 11 be
adequate to cover the costs of the proposed changes.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None.
RECOMMENDATION
It is recommended that the City Council/Redevelopment Agency approve the attached
Amendment to the Agreement with Comprehensive Housing Services, Inc. (Attachment 2)
which will revise the schedule of hourly rates for consultant services and increase the
maximum amount of the contract to $135,000.
- ACfION
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. AGENDA REPORT
CITY OF POW A Y
This reJX>lt is included on the Consent Calendar. There will be no separate discussion of the report prior to approval by the
City Council unless members of the Council. staff or public request it to be removed fr?~ ~e ~onsent Calendar and
discussed separately. If you wish to have this report pulled for discussion, please fill out a slip indIcating the report 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
Honorable Chairman and Members of the Redevelopment Agency
FROM: James L. Bowersox, City Manager/Executive Dire~
INITIATED BY: John D. Fitch, Assistant City Manager/ Assistant Executive
Director
~warren H. Shafer, Director of Redevelopment Services
~ Kris Gridley, Redevelopment Coordinator ~
DATE: August 23, 1994
SUBJECT: Amendment to Contract Agreement with Comprehensive Housing
Services, Inc. to Increase the Maximum Contract Amount and
Revise the Hourly Billing Rate
ABSTRACT
On December 14, 1993 The City Council/Redevelopment Agency approved a contract
with Comprehensive Housing Services, Inc. for administration of the Affordable
Housing Rehabilitation Program. This report recommends that the contract be
amended to increase the Contract amount to $135,000 and revise the hourly
billing rate. These changes are needed in order process the unanticipated
volume of applications that have been received during the first year of
Program operation.
BACKGROUND
The Affordable Housing Rehabilitation Program was originally proposed in 1993
as a component of the Redevelopment Agency's Five-Year, Comprehensive
Affordable Housing Strategy. At the time the Program was developed, it was
estimated that 125 low- and moderate-income households would be assisted over
an initial three-year period, with approximately 40 rehabilitation loans being
processed each year. This estimate was based on the number of loans processed
by other established housing rehabilitation programs operating in the region.
Comprehensive Housing Services, Inc. (CHS) was asked to submit a proposal for
one year of Program Administration, given the assumption that they would
process approximately 40 loans. On December 14, 1993 the Redevelopment Agency
approved a one-year contract with CHS, which specified that costs would not
exceed $50,000.
ACTION:
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Agenda Report
- August 23, 1994
Page 2
The Affordable Housing Rehabilitation Program began receiving requests for
applications on February 22, 1994. Within two months CHS had mailed out over
353 applications, received 70 completed applications and qualified 40
households to receive loans. After four months of operation over 400
applications had been mailed out and the Agency determined that new
participants would be placed on a waiting list in order to allow CHS to
process applications which had already been received. To date a total of 193
loan applications have been received. It is estimated that 132 of the
applications will qualify for approval. The Program will have exceeded its
original three-year goal of 125 loans within the first year of operation.
The Affordable Housing Rehabilitation Program has been very popular with the
community. CHS's implementation and administration of the Program has been
efficient and smoothly run, even with the unexpected volume of applications.
The Agency has been pleased with CHS's ability to adjust their staffing in
response to workload and the skill they have demonstrated in coping with a
number of adjustments to the Program Guidelines.
FINDINGS
Given the exceptional volume of applications generated by the Program, CHS's
"- original contract maximum of $50,000 is not adequate. The workload has made
it necessary for CHS to increase staff time and place a full time
Administrative Assistant in the Poway office. The large volume of loans has
also increased the fixed or "material costs" for such items as title reports,
appraisals, escrow administration and document preparation.
Now that the Rehabilitation Program has been in operation for several months
CHS has been able to provide staff with data regarding the actual cost of loan
processing. They have estimated a total cost per loan of $972.00 (inclusive
of labor and material cost). This represents a savings over the original
contract assumption which was about $1250 per loan. Given that the average
Rehabilitation loan is about 510,000, the cost of labor and materials is
approximately 9.7% of the loan amount. This cost is below the minimum
established by Federal guidelines which assume at least 10% for administrative
costs and allow a maximum of 20% in administrative costs for Rehabilitation
Loan Programs funded by Community Development Block Grants.
In order to complete the processing of the loan applications which have
already been received, the contract with CHS needs to be revised to increase
the maximum amount. A contract maximum of 5135,000 would provide for
completion of the loans already in the system, allowing a small reserve for
additional applications.
The hourly billing rate in the contract also needs to be revised. The
original rate was a flat 550.00/ hour for consultant time. This was an
averaged rate which is no longer appropriate because CHS has created a full
time Administrative Assistant position for the Program and increased the hours
for the more highly paid position of Construction Manager. In order for staff
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Agenda Report
August 23, 1994
Page 3
to accurately monitor the hourly costs for administration of this Program, it
is recommended that the Contract be amended to incorporate CHS's actual
billing rates as shown on Attachment 1.
ENVIRONMENTAL REVIEW
The proposed contract amendment is administrative in nature and is not subject
to environmental review.
FISCAL IMPACT
A total of $1,500,000 was previously appropriated for the Affordable Housing
Rehabilitation Program. It is estimated that CHS can complete the processing
and review of loan applications which have already been received at a per/loan
cost of $972.00 and with a total administrative cost not to exceed $135,000.
This amount, in combination with the anticipated loan funding, can be expended
without the need for any additional appropriation.
Due to the phenomenal popularity of the Housing Rehabilitation Program and
CHS's efficiency in handling the large number of applications, the
appropriated funding will be spent much more quickly than was originally
anticipated. In the future, staff will be preparing a report which reviews
the overall performance of the Housing Rehabilitation Program and discusses
the options for further funding.
PUBLIC NOTIFICATION AND CORRESPONDENCE
Public notice is not required for this action. There has been no public
correspondence regarding this item.
RECOMMENDATION
It is recommended that the City Council/Redevelopment Agency approve the
attached Amendment to the Agreement with Comprehensive Housing Services, Inc.
which revises the schedule of hourly rates for consultant services and
increases the maximum contract amount to $135,000.
ATTACHMENTS
1. Comprehensive Housing Services, Inc., Compensation Schedule
2. Amendment of Agreement for Consultant Services
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CHS 714. X41 . AAII}
Comprehensive Housing Services. Inc. Fax 714. X47. J0711
Date: August 4, 1994
To: Kris Gridley, Redevelopment Coordinator
From: Marybeth Frazier, Consultant to Poway Redevelopment Agency
Subject: Amendment to CHS, Inc. Contract
For amendment to our existing contract for administration of the Affordable
Housing Rehabilitation Program the information the Redevelopment Agency
requested is as follows:
Program Manager's billing rate: $50 per hour
Program Managers include: Gayle Bloomingdale
Marybeth Frazier
Donna Wright
Administrative Assistant's billing rate: $20 per hour
Administrative Assistants include: Cecilia Barandiaran
Lorna Navales
- Dan Kezar
Kira Boss,Bloomingdale
Construction Manager's billing rate: $65 per hour
Construction Managers include: Joyce DeKreek
Lawrence Williamson
Upon amendment of the existing contract, these are the various rates the City of
Poway Redevelopment Agency can expect to be billed for services.
If you have any questions, please do not hesitate to talk with me or Gayle
Bloomingdale.
We are pleased with the continued success of the Affordable Housing
Rehabilitation Program and our association with your organization.
Sincerely,
~/il~r~J'~
Marybeth Frazier
Consultant
8840 Warner Avenue' Suile 204,F. Fountain Valley. CA. 92708 AUG 23199 AT.;r~HMENT 1
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AMENDMENT OF AGREEMENT FOR CONSULTANT SERVICES
THIS AMENDMENT is made and entered into this day of
, 1994 by and between the poway Redevelopment Agency,
a public entity, ("AGENCY") and Comprehensive Housing
Services, Inc. ("CONSULTANT").
The parties hereto mutually agree that the Agreement between the
parties made and entered on the 14th day of December, 1993, is
hereby amended as follows:
Paragraph B. and Item 1. under Paragraph B., of page 8 of the
Agreement shall be deleted and replaced with the following:
B. ComDensation and Reimbursement.
Agency shall pay Consultant a fee not to exceed $135,000 per year
as compensation for consulting services. Said fee shall include:
1. On-site and off-site Affordable Housing Rehabilitation
Program administration services at the following rates:
Construction Manager $65.00/hour
Program Manager $50.00/hour
Administrative Assistant $20.00/hour
Said rates shall be fixed for a period of one year, from the
date of this amendment, after which time they may be
adjusted once annually at the mutual agreement of both
parties.
All other terms of the Agreement shall remain in effect.
CONSULTANT
By:
Gayle Bloomingdale
President, Comprehensive Housing
Services, Inc.
~OWAY REDEVELOPMENT AGENCY
By:
James L. Bowersox
Executive Director
APPROVED AS TO FORM: ATTEST:
Steven M. Eckis, Marjorie K. Wahlsten,
Agency Legal Counsel Secretary to the Agency
ATTACHMENT 2
AUG 23 1994 1TE1~;!
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