Item 22 - Ammnd. to Agreement Comprehensive Housing Service Inc
AGENDA REPORT SUMMARY
TO: Honorable Mayor and Members of the City Council
- FROM: James L. Bowersox, City Mana~ ^
INITIATED BY: John D. Fitch, Assistant City Manager~,t
Warren H. Shafer, Director of Redevelo ment services~
David Narevsky, Redevelopment Manager DN
Kris Gridley, Redevelopment Coordinator ~
DATE: December 19, 1995
SUBJECT: Amendment to Agreement with Comprehensive Housing Service, Inc. for
Administration of the Community Development Block Grant Housing
Rehabilitation Program
ABSTRACT
In order to implement the 21st-Year 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 administrative in nature and is not subject to CEQA review
- requirements.
FISCAL IMPACT
A total of $154,250 was appropriated for the 21st-Year CDBG Housing Rehabilitation
Program. No additional appropriation is necessary for approval of the proposed
amendment to the Agreement with CHS. The County of San Diego administers Poway's CDBG
Program and they will reimburse the City for costs incurred by the CDBG Housing
Rehabilitation Program as the City provides proof of actual expenditures.
PUBLIC NOTIFICATION AND CORRESPONDENCE
None.
RECOMMENDATION
It is recommended that the City Council authorize staff to execute the attached
Amendment to the Agreement with Comprehensive Housing Services, Inc. which increases
the maximum contract amount to $40,150 and extends the term of the Agreement to
September 14, 1996.
ACTION
-
1 of 4 DEe 1 9 1995 ITEM 22
-..........,--- ... _...~.____._____m_
~ AGENDA REPOR',L
CITY OF POW A Y
This report 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 from ~e ~onsent Calendar and
discussed separately. If you wish to have this report pulled for discussion, please fill out a shp 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
FROM: James L. Bowersox, City Man~ r"
INITIATED BY: John D. Fitch, Assistant City Manage~\~
Warren H. Shafer, Director of Redevelop~nt servic~
David Narevsky, Redevelopment Manager])
Kris Gridley, Redevelopment Coordinator~
DATE: December 19, 1995
SUBJECT: Amendment to Agreement with Comprehensive Housing Services,
Inc. for Administration of the COBG (Community Development
Block Grant) Housing Rehabilitation Program
BACKGROUND
The COBG Housing Rehabilitation Program was approved by the City Council on
January 3, 1995. The Program offers deferred, zero-interest, forgiving loans
to low- and very low-income homeowners to help them rehabilitate or refurbish
their homes. On March 14, 1995 the City Council approved an Agreement with
Comprehensive Housing Services, Inc.(CHS) for administration of the Program.
The first CDBG Rehabilitation Loan was approved on May 25, 1995 and over the
next six months CHS has processed a total of 13 loans. On September 26, 1995
an additional $154,250 in CDBG funding was made available for this Program.
This funding, in combination with the previous CDBG grant of $110,070, brings
the total amount available for the Program to $264,320. The subject amendment
would extend the term and increase the amount of the existing contract with
CHS enabling them to process the additional loans made possible by the new
funding.
FINDINGS
The administrative costs for the CDBG Housing Rehabilitation Program have
averaged about 15 percent. The costs can be broken down into CHS's personnel
costs which account for approximately 12 percent, and fixed costs associated
with loan approval which account for the remaining 3 percent. Fixed costs
include title reports, appraisals, recordation fees, loan monitoring, fund
control and document preparation.
ACTION:
))
2 of 4 DEe 1 9 1995 ITEM 22 .
-
- Agenda Report
December 19, 1995
Page 2
Based on the Program's past performance, we estimate that $23,150
(approximately 15 percent of the additional S154,250 grant) should be set
aside to cover administrative costs. Adding $23,150 to the existing contract
amount of $17,000 results in a recommended contract total of S40,150.
Given that S23,150 will be set aside for administrative costs, it is estimated
that the remaining S131,100 will fund from 16 to 20 loans. The existing
Agreement expires on March 14, 1996. It is recommended that the term be
extended for six months, until September 14, 1996. This should provide
sufficient time for processing the new loans.
ENVIRONMENTAL REVIEW
The proposed contract amendment is administrative in nature and is not subject
to environmental review.
FISCAL IMPACT
On September 5, 1995 a total of S154,250 was appropriated for the CDBG Housing
Rehabilitation Program. No additional appropriation is necessary for approval
of the proposed contract amendment. The County of San Diego administers
Poway's CDBG funding and they will reimburse the City for costs incurred by
the CDBG Housing Rehabilitation Program as the City provides them with proof
of actual expenditures.
PUBLIC NOTIFICATION AND CORRESPONDENCE
None
RECOMMENDATION
It is recommended that the City Council authorize staff to execute the
attached Amendment to the Agreement with Comprehensive Housing Services, Inc.
which increases the maximum contract amount to S40,150 and extends the term of
the Agreement to September 14, 1996.
ATTACHMENT
1. Amendment to Agreement for Consultant Services
-
DEe 1 9 1995 ITEM 22
3 of 4
___u__ -_.._------_.._~----
AMENDMENT OF AGREEMENT FOR CONSULTANT SERVICES
THIS AMENDMENT is made and entered into this 19th day of
December, 1995 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 $40,150 as
compensation for consulting services.
The first sentence of Paragraph C. of page 9 of the Agreement
shall be amended as follows:
C. Term ot Aareement.
This Agreement shall be effective from the period commencing
March 14, 1995 and ending September 14, 1996.
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, Marjorie K. Wahlsten,
Agency Legal Counsel Secretary to the Agency
4 of 4 Attachment 1 DEe 1 9 1995 ITEM 22