Title
Recommendation to Approve a First Amendment to the Services Agreement between the City of Alameda and the Housing Authority of the City of Alameda to Extend the Term of the Agreement to March 31, 2017, with No Additional Cost, and Make Minor Revisions to the Agreement. (Community Development 265)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Recommendation to Approve a First Amendment to the Services Agreement between the City of Alameda and the Housing Authority of the City of Alameda to Extend the Term of the Agreement to March 31, 2017, with No Additional Cost, and Make Minor Revisions to the Agreement
BACKGROUND
Following the City Council’s adoption of the Rent Review, Rent Stabilization and Limitations on Evictions Ordinance in March 2016, the City Council approved an Agreement between the City and the Housing Authority of the City of Alameda on April 5, 2016. The Agreement has a nine-month term, to December 31, 2016, and a $713,000 budget.
The Agreement sets forth a comprehensive scope of services for the Housing Authority to (a) respond to public inquiries about the Ordinance, (b) create procedures, forms, a website and educational materials regarding the City’s rent stabilization measures and (c) coordinate the work of the Rent Review Advisory Committee (RRAC) in its efforts to mediate rent disputes. These efforts have been very successful and have been provided at a cost less than projected.
The Agreement also called for the City to issue, in September 2016, a Request for Proposals (RFP) for a long-term agreement with a Program Administrator to administer the rent stabilization program. Given the November 8 election which had two initiatives on the ballot dealing with rent stabilization, Measure L1, the City's Ordinance, and Measure M1, the Renters' Initiative, it was agreed that the City would delay issuing the RFP until after the election. As a result, the release date of the RFP, the terms of services, and the requirement to meet monthly have been revised. The First Amendment to the Agreement is attached as Exhibit 1.
DISCUSSION
In light of the outcome of the election, the Services Agreement needs to be amended by extending the term of the service contract through March 31, 2017, in order for the Housing Authority to continue to provide rent program services to the City. It also needs to be amended to reflect the City issued the RFP on November 23, 2016 with the goal to have an agreement for such services in place by March 31, 2017.
As noted above, the Housing Authority has been administering the Ordinance at a cost less than projected based on the initial Fee Study in part because the Housing Authority did not hire permanent full-time fully benefited staff during this initial start-up period; there were fewer than anticipated rent increases and terminations; and longer-term projects such as development of a searchable data base, etc. were delayed pending the outcome of the election. Therefore, there are sufficient funds budgeted as provided for in the Agreement to continue the required scope of services through March 31, 2017. The City's consultant is conducting an updated fee study and staff will return to the City Council with an updated fee study at the same time the Council considers the award of contract for Program Administrator services prior to March 31, 2017.
FINANCIAL IMPACT
The City Council appropriated General Fund money to fund the Services Agreement through December 31, 2016. Because the cost to administer the program has been less than projected, there are adequate budget and funds remain to administer the program through March 31. 2017.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The Services Agreement, as amended, continues to provide administrative services consistent with the City’s Rent Review, Rent Stabilization and Limitations on Evictions Ordinance.
ENVIRONMENTAL REVIEW
Approval of an amended Services Agreement is not subject to environmental review because it is a governmental fiscal activity which does not involve any commitment to a specific project which may result in a potentially significant physical impact to the environment and therefore it is not a project under the California Environmental Quality Act. CEQA Guidelines, section 15378 (b) (4).
RECOMMENDATION
Approve a First Amendment to the Services Agreement between the City of Alameda and the Housing Authority of the City of Alameda to extend the term of the Agreement to March 31, 2017, with no additional cost, and make minor revisions to the Agreement.
Respectfully submitted,
Debbie Potter, Community Development Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Housing Services Agreement Amendment
2. Original Contract