Title
Adoption of Resolution Amending Fiscal Year 2018-19 Rent Stabilization Fund Budget in the Amount of $166,000 from Available Fund Balance (Fiscal Year 2017-2018) for Acquisition and Implementation of Database Software to Implement Policies, Provide Accurate Data, and Increase Administrative Efficiency for the City’s Rent Review, Rent Stabilization and Limitations on Evictions (Ordinance No. 3148) and Authorizing the Interim City Manager to Execute Certain Amendments to the Staffing Services Agreement with the Housing Authority to Reflect the Software Acquisition and Funding Appropriation. (Community Development 265)
Body
To: Honorable Mayor and Members of the City Council
From: David L. Rudat, Interim City Manager
EXECUTIVE SUMMARY
The City Council adopted a $120 per unit Rent Program fee in Fiscal Year (FY) 2017-18, for administration of the City’s Rent Review, Rent Stabilization and Limitations on Evictions Ordinance (Ordinance). Not all of the funds collected during FY 2017-18 were expended. Given the evolving nature of the Rent Program, City Council directed that, in addition to reducing the fee in FY 2018-19, a fund balance should be retained for certain capital expenses. One such expense is a rent program database. The Program Administrator has conducted a Request for Proposal (RFP) process to solicit vendors to purchase database software. However, all five bidders responding to the RFP submitted costs that exceed the current amounts budgeted for database software. This Resolution appropriates the $166,000 of available fund balance to make up the funding shortfall, which shall be spent on acquisition and implementation of database software in FY 2018-19.
BACKGROUND
In 2016, the Council voted to pay for the initial start-up of the Ordinance with General Fund revenue to establish a rent program prior to implementing a program fee. On June 7, 2017, after a full year of program operations, the City Council considered a Rent Program Fee Study, prepared by SCI Consulting Group (SCI), and determined it had sufficient data to adopt a Rent Program fee effective July 1, 2017. The Council adopted a fee of $120 per rental unit by resolution for FY 2017-18. At the time the fee was adopted, staff stated that it would conduct an updated Fee Study for FY 2018-19, which would set the Rent Program fee for the next fiscal year.
On June 5, 2018, the City Council reviewed the FY 2018-19 Fee Study conducted by SCI. The Fee Study indicated that for FY 2018-19, the estimated cost to administer the Rent Program is $1.59 million; which brings the Rent Program Fee to $119 per rental unit for 13,389 rental units. City Council implemented the recommendation from SCI and staff to credit 50% of unexpended funds from FY 2017-18 to fund the Rent Program, reducing the FY 2018-19 fee to $106. The remaining 50% of the FY 2017-18 Rent Program fund balance, $166,000, was retained in the Rent Program Fund and remains available to fund certain program costs during FY 2018-19.
DISCUSSION
Recently, the City Council requested more data concerning the residential rental market in the City of Alameda and more comprehensive analysis of trends in the administration of the Ordinance. In addition, the service agreement between the Housing Authority of the City of Alameda, and the City to administer the Rent Program, provides for funds to be expended on building a database and related services to maintain accurate data for the program.
On July 23, 2018, the Program Administrator issued an RFP for Database Software for the Rent Program. The RFP provided for a scope of services that included increasing dynamic reporting functionality and monitoring systems, providing robust customer relations management services, and establishing an online payment portal through which landlords can pay the annual Rent Program fee directly to the City. The Program Administrator received five bids by the required deadline.
All five vendors submitted proposals with estimated costs that exceed the allocated amounts in both the FY 2018-19 Budget and the staffing services agreement (budget attachments). The one-time costs range from $49,037-$278,700 and the annual ongoing costs range from $15,000-$36,665. Proposals are being reviewed by representatives from the Finance Department, Information Technology Department and the Rent Program staff and a final selection is expected to be made within the next 60 days.
Based on the need to provide accurate data, improve administrative efficiency and improve customer service, as well as the need to select a qualified vendor with relevant experience, staff recommends that the City Council adopt a resolution allocating the Rent Stabilization Fund available fund balance of $166,000 to provide for the remaining funding necessary to acquire and implement the database software. Once funds are appropriated, the staffing services agreement will be amended to add the additional funds, for the purposes described above, and make any other minor conforming amendments to reflect the purchase and implementation of the database software.
FINANCIAL IMPACT
There is no impact to the General Fund from appropriating $166,000 to purchase a database software for the City’s Rent Program as these funds are collected from a fee charged to landlords to administer the City’s Rent program.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
Adoption of this allocation is consistent with the purposes and intent of the Ordinance and implementing Policies.
ENVIRONMENTAL REVIEW
This action is not a project as defined in Public Resources Code section 21065 and California Environmental Quality Act (CEQA) Guidelines section 15378(b)(4), as it constitutes the creation of a government funding mechanism or other governmental fiscal activity that does not involve any commitment to any specific project that could result in a potentially significant physical impact on the environment.
RECOMMENDATION
Adopt a Resolution Amending Fiscal Year 2018-19 Rent Stabilization Fund Budget in the Amount of $166,000 from Available Fund Balance (Fiscal Year 2017-2018) for Acquisition and Implementation of Database Software to Implement Policies, Provide Accurate Data, and Increase Administrative Efficiency for the City’s Rent Review, Rent Stabilization and Limitations on Evictions (Ordinance No. 3148) and Authorize the Interim City Manager to Execute Certain Amendments to the Staffing Services Agreement with the Housing Authority to Reflect the Software Acquisition and Funding Appropriation. (Rent Stabilization 265)
Respectfully submitted,
Debbie Potter, Base Reuse and Community Development Director
Financial Impact section reviewed by
Elena Adair, Finance Director