Title
Recommendation to Approve the Second 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 June 30, 2017, and Add $50,000 for a Rent Program Office Relocation Allowance; and
Adoption of Resolution Amending the General Fund and Rent Stabilization Fund Operating Budget for Fiscal Year 2016-17. (Housing 265)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Recommendation to Approve the Second 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 June 30, 2017, and add $50,000 for a Rent Program Office Relocation Allowance and Adoption of Resolution Amending the General Fund and Rent Stabilization Fund Operating Budget for Fiscal Year 2016-17
BACKGROUND
Following the City Council’s adoption of the Rent Review, Rent Stabilization and Limitations on Evictions Ordinance (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, to administer the Rent Stabilization Program. The Agreement had a nine-month term, to December 31, 2016, and a $713,000 budget.
On December 6, 2016, the City Council approved a first amendment to the Agreement, extending the term for an additional 90 days to March 31, 2017. Staff is recommending a second amendment to the agreement for an additional 90-day extension to June 30, 2017, and an additional $50,000 for a Rent Program Office Relocation Allowance (Exhibit 1). The 90-day extension will provide sufficient time for staff to negotiate a long-term agreement with the Housing Authority to administer the Rent Stabilization Program consistent with the existing Program and any revisions to the Program that the City Council may approve as part of its consideration of the Ordinance’s Annual Report and Ordinance amendments in April 2017. As discussed below, amending the budget to provide a $50,000 Rent Program Office Relocation Allowance will ensure continuity of program services under the Agreement.
DISCUSSION
The current Agreement contains a scope of services for the Housing Authority to administer the Rent Stabilization program including staffing to (a) respond to public inquiries about the Ordinance (b) create and implement procedures, forms, a website and educational materials and conduct public information trainings/clinics (c) manage the termination and relocation benefits provisions of the Ordinance and (d) coordinate the work of the Rent Review Advisory Committee (RRAC) to mediate rent disputes.
In addition, the Agreement required the City to issue a Request for Proposals (RFP) for a Program Administrator to administer the rent stabilization program following the program’s first year, and obligated the Housing Authority to submit a proposal. Both the City and Housing Authority were committed to “testing the marketplace” to determine the best service provider at the end of the initial term. Following the November election, staff issued the RFP. Proposals were sent to 12 organizations/consulting firms specializing in housing and related services. Notice of the RFP was also posted on the City’s web site. The City received two proposals, one from the Housing Authority and one from Sandidge Urban Group, Inc. A third organization, Eden Council for Hope and Opportunity (ECHO Housing), considered responding to the RFP but declined citing its Board’s concern that administering a governmental program and making decisions on behalf of the governmental body could compromise its mission as a third party mediator between tenants and landlords and possibly lead to the appearance of impropriety.
On January 30, 2017, an interview panel of City staff and outside persons who have expertise with running these types of programs interviewed the two proposers. The panel overwhelmingly felt that the Housing Authority’s proposal was the better choice based on criteria that it took into consideration:
1. Quality of the Proposal
2. Experience of organization providing the services requested and experience of individuals to be assigned in providing the required services
3. Demonstrated success in providing services of a similar nature
4. Realistic budget given the level of services to be provided
The Housing Authority presented a highly qualified team that provided a comprehensive proposal with a clear and thorough understanding of program administration for the City’s rent program. Therefore, the panel recommended that the City move forward with a three-year agreement with the Housing Authority to serve as the Program Administrator.
Following the panel’s recommendation, staff began discussions with the Housing Authority regarding a new agreement. Because the scope of services and budget may change depending on what revisions, if any, the City Council directs staff to make to the Ordinance when it considers the Rent Program’s Annual Report and amendments to the Ordinance next month, staff is recommending that the existing Agreement be amended to extend the term for an additional 90 days to June 30, 2017. This should provide sufficient time for Housing Authority and City staff to negotiate any changes to the work scope and budget that might result from the Council’s review of the existing program. Without the 90-day extension the existing agreement expires on March 31, 2017.
In addition to the 90-day term extension, the second amendment provides for an increase of $50,000 in the approved budget. The increased funds would be used exclusively as a Rent Program Office Relocation Allowance. The Housing Authority can provide the contracted services for an additional 90 days with the existing budgeted funds; however, as the Housing Authority has hired staff to administer the Program, it no longer has the physical space to administer the Program at the Housing Authority’s office. During the next 90 days, Program Administration staff will be looking for permanent office space for the Rent Program and, should it find that space, it may be required to put down a deposit, pay rent, and begin configuring the space with information technology equipment and tenant improvements. In order to ensure that the office relocation can move forward, it is recommended that the budget be amended to add $50,000 solely for a Rent Program Office Relocation Allowance. These costs will be reimbursed only if the existing budget for services is insufficient to cover the cost of the move. If these funds are not needed during the next 90 days, they will be returned to the General Fund.
Staff recommends that the City Council approve a second amendment to the Services Agreement with the Housing Authority to extend the term for 90 days and amend the budget to add a $50,000 Rent Program Office Relocation Allowance. Additionally, it is recommended that the City Council adopt a resolution amending the City’s 2016-17 General Fund and Rent Stabilization Fund operating budget.
FINANCIAL IMPACT
In April 2016, the City Council appropriated $713,000 in General Fund money to fund the Services Agreement through December 31, 2016. On December 6, 2016, the City Council approved an amendment to the agreement extending the term for 90 days, through March 31, 2017. The second amendment will extend the term for another 90 days, through June 30, 2017. Because the cost to administer the program has been less than projected, there are sufficient funds to administer the program through June 30, 2017. An additional $50,000, however, is requested as a Rent Program Office Relocation Allowance, in the event Program Administration staff locates new office space for rent program related services and begins its move within the next 90 days and there are not sufficient funds to support that effort. Funds that are not utilized for the move will be returned to the General Fund. A resolution amending the City’s 2016-17 Budget has been prepared for City Council adoption.
|
Fund/Account |
Amount |
|
General Fund: |
|
|
Transfer Out |
$50,000 |
|
Rent Stabilization Program: |
|
|
Transfer In |
$50,000 |
|
Contractual Services |
$50,000 |
It is anticipated that staff will request City Council approval of a new agreement with the Housing Authority in June 2017, prior to the expiration of the existing Agreement. At the same time, staff will provide City Council with an updated fee study and a recommendation to fund the Rent Stabilization Program through a program-based fee rather than through the General Fund, effective July 1, 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 the second 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 June 30, 2017, and $50,000 for a Rent Program Office Relocation Allowance and Adoption of Resolution Amending the General Fund and Rent Stabilization Fund Operating Budget for Fiscal Year 2016-17.
Respectfully submitted,
Debbie Potter, Community Development Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Services Agreement
2. First Amendment to Services Agreement
3. Second Amendment to Services Agreement