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Item 12 - 2nd Ammnd of Contract Agreement Comprehensive Housing Svs AGEiIo'DA REPORT SUM;\fARY TO: INITIATED BY: Honorable Mayor and Members of the City Council Honorable Chairman and Members of the Redevelopment James L. Bowersox, City Manager/Executive D~r John D. Fitch, Assistant City Manager/Assistant Executive Director Warren H. Shafer, Director of Redevelopment Services ~~/boJ David Narevsky, Redevelopment Manager O~ Kris Gridley, Redevelopment Coordinator~ February 7, 1995 FROM: DATE: SUBJECf: Second Amendment of the Contract Agreement with Comprehensive Housing Services, Inc. ABSTRACf This action will amend the previously approved contract agreement between the Redevelopment Agency and Comprehensive Housing Services, Inc. (CHS). CHS is the consulting firm that administers the Agency's Affordable Housing Rehabilitation Program. This report recommends that the contract be extended and the terms modified to 1) establish an ongoing contract without a specific termination date and 2) provide additional funding for continued administration of the Program. ENVIRONMENTAL REVIEW The proposed contract amendment is not subject to environmental review. FISCAL IMPACf No immediate fiscal impact will result from approval of the contract amendment, as funding previously appropriated for the Affordable Housing Rehabilitation Program will be adequate to cover the cost of an ongoing contract. A budget adjustment will be processed to transfer $50,000 from Account Number 471-5962-6408 (Housing Revitalization) to Account Number 471-5962-1799 (Housing Revitalization-Professional Fees). ADDITIONAL PUBldGNOTIFICATION AND CORRESPONDENCE . None RECOMMENDATION It is recommended that the City Council/Redevelopment Agency approve the attached Second Amendment to the Agreement with Comprehensive Housing Services, Inc. ACfION II 1 of 5 FEB 7 1995 ITEM 12 -----"-----------""" ---.".-.-". "-----"--"---""-- ."--.-.--"- - AGENDA REPORT CITY OF POW A Y This report is included on the Consent Calendar. There w;U be no separate discussion of the report prior to approval by the C;ty Council unless members of the Council. staff or publ;c request it to be removed from the Consent Calendar and discussed separately. If you wish to have this report pulled for discussion. please nil out a slip indicating the report number and give it to the City Clerk prior to the beginning of the City Council meeting. FROM: INITIATED BY: Honorable Mayor and Members of the City Council Honorable Chairman and Members of the Redevelopment Agency James L. Bowersox, City Manager/Executive Dir~ John D. Fitch, Assistant City Manager/Assistant Executive Di rector Warren H. Shafer, Di rector of Redevelopment Services wHS}brJ David Narevsky, Redevelopment Manager ~ Kris Gridley, Redevelopment Coordinatorl&"" February 7, 1995 TO: DATE: SUBJECT: Second Amendment to the Contract Agreement with Comprehensive Housing Services, Inc. BACKGROUND 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. The Redevelopment Agency's original contract with CHS specified an expiration date of January 3, 1995. The contract was amended on August 23, 1994, at which time the hourly billing rate was revised and the maximum contract amount was increased from $50,000 to $135,000. This report recommends that the contract be extended and the terms modified to 1) establish an ongoing contract without a specific termination date and 2) provide additional funding for continued administration of the Program. FINDINGS After approximately one year of operation, the Affordable Housing Rehabilitation Program has funded 96 loans and 59 rehabilitation projects have been completed. When the first contract amendment was processed, staff estimated that the total amount of funding appropriated for the Program would allow the approval of approximately 132 loans. However, the Program funding is lasting longer and providing for a greater number of loans than was originally an~iclpated. This is attributed to the fact that many of the loans which have been funded in the past few months have been for amounts of less than $10,000, as' a large number of the recent applications have been for mobilehomes. Mobilehomes do not generally qualify for the full $10,000 because of lower equity totals. ACTION: 2 of 5 FEB 7 1995 ITEM 12 Agenda Report February 7, 1995 Page 2 Based on the fact that it is not possible to predict exactly how many loans will be completed or how long Affordable Housing Rehabilitation Program funding will last, staff recommends that the term of CHS's contract be modified, as shown in Attachment 1, to eliminate the specific expiration date and allow either party the option of termination with appropriate notice. It is reconunended that the contract require a 60 day notice of termination for the Redevelopment Agency and a 90 day notice for CHS. A longer noticing period is recommended for CHS because the Agency would need time to transfer the responsibilities for monitoring existing loans to another qualified party. In conjunction with the extension of CHS's contract, an increase of $50,000 in the contract amount is recommended to provi de fundi ng for the continued administration of the Program. A total of $1,500,000 was previously appropriated for the Affordable Housing Rehabilitation Program. It is estimated that existing applications in the system, as well as a small number of applications from the Program waiting list, can be processed without the need for any additional appropriation. Staff will monitor the Program expenditures closely to ensure that CHS is given adequate notice when the Program funding is near exhaustion. Due to the phenomenal popularity of the Affordable Housing Rehabilitation Program and CHS's efficiency in handling the large number of applications, the appropriated funding will not be adequate to cover three years of Program operation as originally anticipated. Currently there are 280 names on the waiting list established for the Program. Only a small number of these households can be assisted, given the current appropriation. Staff will be preparing a report which discusses the future funding for this Program once litigation that could impact the available balance in the Low- and Moderate- Income Housing Fund has been resolved. ENVIRONMENTAL REVIEW The proposed contract amendment is administrative in nature and is not subject to environmental review. FISCAL IMPACT No immediate fis~al impact will result from approval of the contract amendment. A budget adjustment will be processed to transfer $50,ODO from Account Number 471-5962-6408 (Housing Revitalization) to Account Number 471- 5962-1799 (Housing Revitalization-Professional Fees). PUBLIC NOTIFICATION AND CORRESPONDENCE None FEB 7 1995 ITEM 12 3 of 5 Agenda Report February 7, 1995 Page 3 RECOMMENDATION It is recommended that the City Council/Redevelopment Agency approve the attached Second Amendment to the Agreement with Comprehensive Housing Services, Inc., which revises the term of the contract and increases the contract by $50,000, resulting in a total contract amount of $185,000. ATTACHMENT 1. Second Amendment of Agreement for Consultant Services - FEB 7 1995 ITEM 12 4 of 5 SECOND AMENDMENT OF AGREEMENT FOR CONSULTANT SERVICES THIS AMENDMENT is made and entered into this day of , 1995 by and between the Poway Redevelopment Agency -;-apubl i c 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, and amended on August 23, 1994, is hereby amended as follows: The first sentence of Paragraph B. on 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 a total of $185,000 as compensation for consulting services. Paragraph C. on Page 8 of the Agreement shall be deleted and replaced with the foll owing: C. Term of the AQreement. Consultant shall provide services until this Agreement is terminated by either party. Agency may terminate this Agreement by giving Consultant at least sixty days notice in writing. Consultant may terminate the agreement by giving the Agency at least ninety days notice in writing. Upon expiration or termination of this Agreement, Consultant shall return to Agency any and all equipment, documents or materials and all copies made thereof which Consultant received from Agency or produced for Agency for the purposes of this Agreement. All other terms of the Agreement shall remain in effect. CONSULTANT By: Gayle Bloomingdale President, Comprehensive Housing Services, Inc. - POWAY REDEVELOPMENT AGENCY By: James L. Bowersox Executive Director APPROVED AS TO FORM: ATTEST: Steven M. Eckis, Agency Legal Counsel MarJorle K. Wahlsten Secretary FEB 7 1995 ITEM 12 5 of 5 - - ---- ---- -------- - ------------------------