HomeMy WebLinkAboutMINUTES - 01172017 - Housing Authority
CALENDAR FOR THE BOARD OF COMMISSIONERS
BOARD CHAMBERS ROOM 107, COUNTY ADMINISTRATION BUILDING
651 PINE STREET
MARTINEZ, CALIFORNIA 94553-1229
FEDERAL D. GLOVER, CHAIR
KAREN MITCHOFF, VICE CHAIR
JOHN GIOIA
CANDACE ANDERSEN
DIANE BURGIS
FAY NATHANIEL
JANNEL GEORGE-ODEN
JOSEPH VILLARREAL, EXECUTIVE DIRECTOR, (925) 957-8000
PERSONS WHO WISH TO ADDRESS THE BOARD DURING PUBLIC COMMENT OR WITH RESPECT TO
AN ITEM THAT IS ON THE AGENDA, WILL BE LIMITED TO TWO (2) MINUTES.
The Board Chair may reduce the amount of time allotted per speaker at the beginning of each item
or public comment period
depending on the number of speakers and the business of the day.
Your patience is appreciated.
A closed session may be called at the discretion of the Board Chair.
Staff reports related to open session items on the agenda are also accessible on line at
www.co.contra-costa.ca.us.
ANNOTATED AGENDA & MINUTES
January 17, 2017
1:30 P.M. Convene and announce adjournment to Closed Session in Room 101.
Closed Session
A. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Title: Executive Director
Call to order.
CONSIDER CONSENT ITEMS: (Items listed as C.1 through C.4 on the following
agenda) - Items are subject to removal from the Consent Calendar by request from any
Commissioner or on request for discussion by a member of the public. Items removed
from the Consent Calendar will be considered with the Discussion Items.
DISCUSSION ITEMS
January 17, 2017 Contra Costa County Housing Authority 1
D. 1 CONSIDER Consent Items previously removed.
There were no items removed from consent.
D. 2 PUBLIC COMMENT (2 Minutes/Speaker)
There were no requests to speak.
ADJOURN
Adjourned today's meeting at 2:05 p.m.
CONSENT ITEMS:
C.1 ACCEPT the 2nd Quarter (Unaudited) Budget Report for the period ending
9/30/2016.
Commissioner John Gioia AYE
Commissioner Candace Andersen AYE
Commissioner Diane Burgis AYE
Commissioner Karen Mitchoff AYE
Commissioner Federal D. Glover AYE
Commissioner Fay Nathaniel ABSENT
Commissioner Jannel George-Oden AYE
C.2 RATIFY the Housing Choice Voucher payment standards for the Housing
Authority of the County of Contra Costa effective October 1, 2016.
Commissioner John Gioia AYE
Commissioner Candace Andersen AYE
Commissioner Diane Burgis AYE
Commissioner Karen Mitchoff AYE
Commissioner Federal D. Glover AYE
Commissioner Fay Nathaniel ABSENT
Commissioner Jannel George-Oden AYE
C.3 APPROVE and AUTHORIZE the Executive Director of the Housing Authority, or
designee, to execute a contract with HD Supply Facilities Maintenance in an
amount not to exceed $200,000 to provide facilities maintenance, repair, operating
and industrial materials and related services through July 31, 2017.
January 17, 2017 Contra Costa County Housing Authority 2
Commissioner John Gioia AYE
Commissioner Candace Andersen AYE
Commissioner Diane Burgis AYE
Commissioner Karen Mitchoff AYE
Commissioner Federal D. Glover AYE
Commissioner Fay Nathaniel ABSENT
Commissioner Jannel George-Oden AYE
C.4 APPROVE and AUTHORIZE the Executive Director to execute a contract with
Vacant Property Security in an amount not to exceed $400,000 to provide secure
entry systems for vacant public housing units/buildings for the period January 18,
2017 through July 10, 2017, including four annual options to renew effective July
10th of each year through July 11, 2021 with a total payment limit of $3,847,309.
Commissioner John Gioia AYE
Commissioner Candace Andersen AYE
Commissioner Diane Burgis AYE
Commissioner Karen Mitchoff AYE
Commissioner Federal D. Glover AYE
Commissioner Fay Nathaniel ABSENT
Commissioner Jannel George-Oden AYE
GENERAL INFORMATION
Persons who wish to address the Board of Commissioners should complete the form provided for
that purpose and furnish a copy of any written statement to the Clerk.
All matters listed under CONSENT ITEMS are considered by the Board of Commissioners to be
routine and will be enacted by one motion. There will be no separate discussion of these items
unless requested by a member of the Board or a member of the public prior to the time the
Commission votes on the motion to adopt.
Persons who wish to speak on matters set for PUBLIC HEARINGS will be heard when the Chair
calls for comments from those persons who are in support thereof or in opposition thereto. After
persons have spoken, the hearing is closed and the matter is subject to discussion and action by the
Board.
Comments on matters listed on the agenda or otherwise within the purview of the Board of
Commissioners can be submitted to the office of the Clerk of the Board via mail: Board of
Commissioners, 651 Pine Street Room 106, Martinez, CA 94553; by fax: 925-335-1913; or via the
County’s web page: www.co.contracosta.ca.us, by clicking “Submit Public Comment” (the last
January 17, 2017 Contra Costa County Housing Authority 3
County’s web page: www.co.contracosta.ca.us, by clicking “Submit Public Comment” (the last
bullet point in the left column under the title “Board of Commissioners.”)
The County will provide reasonable accommodations for persons with disabilities planning to
attend Board meetings who contact the Clerk of the Board at least 24 hours before the meeting, at
(925) 335-1900; TDD (925) 335-1915. An assistive listening device is available from the Clerk,
Room 106. Copies of taped recordings of all or portions of a Board meeting may be purchased
from the Clerk of the Board. Please telephone the Office of the Clerk of the Board, (925)
335-1900, to make the necessary arrangements.
Applications for personal subscriptions to the monthly Board Agenda may be obtained by calling
the Office of the Clerk of the Board, (925) 335-1900. The monthly agenda may also be viewed on
the County’s internet Web Page: www.co.contra-costa.ca.us
The Closed session agenda is available each month upon request from the Office of the Clerk of the
Board, 651 Pine Street, Room 106, Martinez, California, and may also be viewed on the County’s
Web Page.
AGENDA DEADLINE: Thursday, 12 noon, 12 days before the Tuesday Board meetings.
January 17, 2017 Contra Costa County Housing Authority 4
RECOMMENDATIONS
ACCEPT the 2nd Quarter (Unaudited) Budget Report for the period ending 9/30/2016.
BACKGROUND
This report is intended to provide the Board of Commissioners with an overview of the financial position of the
Housing Authority of the County of Contra Costa (HACCC) for the 2nd quarter period ending 9/30/2016. The report
begins with a summary of HACCC’s overall fiscal standing at the end of the quarter. The overall numbers are then
broken down by individual funds. Each fund overview includes a brief program summary and an explanation of the
variance between budgeted and actual performance.
AGENCY OVERVIEW: Budget Report
Changes in HACCC's overall budget position for the first quarter are shown in the chart below. Activity in Section 8
Voucher and Housing Certificate programs had the most significant impact on HACCC's budget.
Projected revenue increased by $1,805,437 is a result of utilization growth in the Section 8 Voucher Program and the
Housing Certificate Shelter Plus Care program. The growth in the Section 8 Vouchers program is a result of new
project-based units being brought online and new clients being called from the wait list. The growth in the Shelter
Plus Care Program is a result of increased utilization. Expenditures are projected to increase by $1,533,812. The
increase in projected expenditures is a combination of increased client subsidy of $ 2,266,667 and reduced operating
cost of $732,855 in the Public Housing Program and State and Local Programs.
Action of Board On: 01/17/2017 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:John Gioia, Commissioner
Candace Andersen,
Commissioner
Diane Burgis, Commissioner
Karen Mitchoff,
Commissioner
Federal D. Glover,
Commissioner
Jannel George-Oden,
Commissioner
ABSENT:Fay Nathaniel, Commissioner
Contact: 925-957-8028
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: January 17, 2017
Joseph Villarreal, Executive Director
By: June McHuen, Deputy
cc:
C.1
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:January 17, 2017
Contra
Costa
County
Subject:FY 2016-2017 2nd QUARTER BUDGET REPORT
January 17, 2017 Contra Costa County Housing Authority 5
BACKGROUND (CONT'D)
HACC Agency Summary Annual Budget
2nd Quarter
Actual
9/30/16
Remaining FY
Estimate Annual Total Variance
Revenue $ 109,724,315 $ 56,667,594 $ 54,862,158 $ 111,529,752 $ 1,805,437
Expenditures $ 108,700,113 $ 55,883,869 $ 54,350,057 $ 110,233,926 $(1,533,813)
$ 1,024,202 $ 783,725 $ 512,101 $ 1,295,826
The net change to reserve totals for the end of the second quarter was a gain of $783,725. The net gain was a result of
a increase to restricted reserves in the amount of $271,145 and unrestricted reserve of $512,579 as shown in the
summary below.
Analysis of Agency
Reserves
Beginning
Balance 4/1/16
(Unaudited)
2nd Quarter ending
9/30/16
(Unaudited)
Reserve
Balance period
ending 9/30/16
(Unaudited)
Total Reserves $ 15,365,819 $ 783,725 $ 16,149,544
Restricted Reserves
Housing Choice Vouchers $ 5,223,994 $ 176,244 $ 5,400,238
Public Housing & Cap. Funds $ -0-$ -0-$ -0-
State & Local Programs $ 1,884,156 $ 94,902 $ 1,979,058
Housing Certificates Programs $ -0-$ -0-$ -0-
Total Restricted Reserves $ 7,108,150 $ 271,146 $ 7,379,296
Unrestricted Reserves
Housing Choice Vouchers $ 4,063,501 $ 117,391 $ 4,180,892
Public Housing & Cap. Funds $ 1,099,548 $ 298,849 $ 1,398,397
State & Local Programs $ 3,089,730 $ 101,229 $ 3,190,959*
Housing Certificates Programs $ 4,890 $ (4,890)$ -0- .
Total Unrestricted Reserves $ 8,257,669 $ 512,579 $ 8,770,248
* Does not include unfunded pension liability of $10.8 million.
As a reminder, almost all reserves are restricted for use within each program. The designation of restricted or
unrestricted reserves merely indicates that the funds are obligated for special use within the program (restricted) or that
they can be used for any purpose tied to the program (unrestricted). The only reserves that can be used freely are
unrestricted reserves within the State and Local Programs that are not tied to the tax credit properties. These reserves
can be used to support any of HACCC’s programs.
FUNDS OVERVIEW:
Housing Choice Vouchers
Program Summary - The HCV program provides assistance to families in the private rental market. HACCC qualifies
families for the program based on income. These families find a home in the private rental market and HACCC
provides them with a subsidy via a HAP contract with the property owner. HAP is paid by HACCC directly to the
owner. Through its HCV program, HACCC is authorized to provide affordable housing assistance to a maximum of
6,910 families. However, prior to this fiscal year funding constraints limited program utilization to 6,300 families.
Summary of Difference Between Budgeted and Quarterly-End Estimate:
Revenue –Projected revenue increase of $1,478,333 is a direct result of increase in utilization and funding. HUD
increased the funding levels this calendar year (2016) by 6.1% or from 6,393 fundable units to 6,783. This will likely
led to some issue's of under utilization due to the tight rental market, given the Authority will now only have less than
six months to lease up.
Expenditures-Projected increase of expenditures of $1,902,517 is a result of increased utilization and operating costs.
January 17, 2017 Contra Costa County Housing Authority 6
Expenditures-Projected increase of expenditures of $1,902,517 is a result of increased utilization and operating costs.
HAP expenditures were increased during the period by $1,743,937, and operating cost increased by $158,580.
Housing Choice
Vouchers Annual Budget
2nd Quarter Actual
9/30/16
(Unaudited)
Remaining FY
Estimate Annual Total Variance
Revenue $ 89,735,463 $ 46,346,064 $ 44,867,731 $ 91,213,795 $ 1,478,333
Expenditures $ 88,299,824 $ 46,052,429 $ 44,149,912 $ 90,202,341 $ (1,902,517)
$ 1,435,639 $ 293,635 $ 717,819 $ 1,011,454
Analysis of Program Reserves:
Public Housing Operating
and Capital Funds
Program Summary -
HACCC owns and manages
1,179 public housing units
at 16 different sites
throughout the County. Operating funds for these properties come from tenant rents as well as an operating subsidy
received from HUD that is designed to cover the gap between rents collected from the low-income tenants and annual
operating expenses. HUD allocates the Capital Fund annually via formula to approximately 3,200 housing authorities.
Capital Fund grants may be used for development, financing, modernization, and management improvements within
public housing.
Summary of Difference Between Budgeted and Quarterly-End Estimate:
Revenue – The projected reduction in revenue of $288,173 was primarily related to capital funds not obligated to date.
Expenditures - The projected reduction in expenditures of $698,741 is a result of unobligated capital funds and
insurance reimbursement of $552,919 and operational savings of $145,822.
Public Housing
Operating and
Capital Fund
Annual Budget
1st Quarter Actual
9/30/16
(Unaudited)
Remaining FY
Estimate Annual Total Variance
Revenue $ 10,934,181 $ 5,178,917 $ 5,467,090 $ 10,646,007 $ (288,173)
Expenditures $ 11,157,618 $ 4,880,068 $ 5,578,809 $ 10,458,877 $ 698,741
$ (223,437)$ 298,849 $ (111,719)$ 187,130
Analysis of Program Reserves:
Public Housing & Capital
Fund
Beginning
Balance 4/1/16
(Unaudited)
2nd Quarter
9/30/16
(Unaudited)
Reserve Balance
period ending
9/30/16
(Unaudited)
Restricted Reserves $ -0- $ -0- $ -0-
Unrestricted Reserves $ 1,099,548 $ 298,849 $ 1,398,397
Total Reserves $ 1,099,548 $ 298,849 $ 1,398,397
State and Local Programs
Program Summary - HACCC administers a variety of programs and activities that are either not funded by HUD or
that involve non-restricted HUD funds. Currently, HACCC is the managing general partner for two tax credit projects
(DeAnza Gardens & Casa Del Rio) and also has a contract with the City of Antioch to run their rental rehabilitation
program. HACCC receives management fees for administering the Public Housing and HCV programs under HUD’s
asset-management model. In addition, the State and Local Program manages the employee pension benefit program.
Housing Choice Vouchers
Beginning
Balance 4/1/16
(Unaudited)
2nd Quarter
9/30/16
(Unaudited)
Reserve Balance
period ending
9/30/16
(Unaudited)
Restricted Reserves $ 5,223,994 $ 176,244 $ 5,400,238
Unrestricted Reserves $ 4,063,501 $ 117,391 $ 4,180,892
Total Reserves $ 9,287,495 $ 293,635 $ 9,581,130
January 17, 2017 Contra Costa County Housing Authority 7
Summary of Difference between Budgeted and Quarterly-End Estimate:
Revenue –The projected increase in revenue of $254,093 was primarily a result of increase in management fees earned
($190,782) due to increased utilization in the voucher. Additionally, the authority qualified for asset management fees
($38,000) due to the authority generating excess cash in the public housing program.
Expenditures - The $34,113 variance is a result of reduced overhead costs.
State & Local
Programs Annual Budget
2nd Quarter Actual
9/30/16
(Unaudited)
Remaining FY
Estimate Annual Total Variance
Revenue $ 5,372,185 $ 2,940,185 $ 2,686,092 $ 5,626,277 $ 254,093
Expenditures $ 5,556,335 $ 2,744,054 $ 2,778,167 $ 5,522,221 $ 34,113
$ (184,150)$ 196,131 $ (92,075)$ 104,056
Analysis of Reserves:
State & Local Programs
Beginning
Balance 4/1/16
(Unaudited)
2nd Quarter
9/30/16
(Unaudited)
Reserve Balance
Period ending
9/30/16
(Unaudited)
Restricted Reserves $ 1,884,156 $ 94,902 $ 1,979,058
Unrestricted Reserves $ 3,089,730 $ 101,229 $ 3,190,959*
Total Reserves $ 4,973,886 $ 196,131 $ 5,170,017
* does not include the unfunded pension liability of 10.8 million.
Housing Certificate Programs
Program Summary - HACCC administers two separate Housing Certificate Programs; Shelter Plus Care and Moderate
Rehabilitation (Mod Rehab). The Shelter-Plus Care Program provides rental assistance for hard-to-serve homeless
persons with disabilities in connection with supportive services funded from sources outside the program. HACCC
assists approximately 285 clients under this program. The Mod Rehab program was designed in 1978 as an expansion
of the rental certificate program. Mod Rehab was designed to provide low-cost loans for the rehabilitation of rental
units in an effort to upgrade and preserve the nation's housing stock. In return, the owner agreed to provide long-term
affordable housing for low income families. The program was repealed in 1991 and no new projects are authorized for
development. HACCC administers 28 Mod Rehab units.
Summary of Difference Between Budgeted and Quarter-End Estimate:
Revenue & Expenditure -The projected increase of $361,185 is an increase to revenue and an increase HAP expense.
This amount is a result of increased funding from HUD to the certificate programs. The $2,965 increase (difference
between revenue increase of $361,185 and expenditures of $-364,150) in expenditure is a result of higher operations
costs.
Housing
Certificate
Programs
Annual Budget
2nd Quarter Actual
9/30/16
(Unaudited)
Remaining FY
Estimate Annual Total Variance
Revenue $ 3,682,487 $ 2,202,428 $ 1,841,243 $ 4,043,671 $ 361,185
Expenditures $ 3,686,336 $ 2,207,318 $ 1,843,168 $ 4,050,486 $ (364,150)
$ (3,849)$ (4,890)$ (1,924)$ (6,814)
Analysis of Reserves:
Housing Certificate Programs
Beginning
Balance 4/1/16
(Unaudited)
2nd Quarter
9/30/16
(Unaudited)
Reserve Balance
period ending
9/30/16
(Unaudited)
Restricted Reserves $ -0- $ -0- $ -0-
January 17, 2017 Contra Costa County Housing Authority 8
Unrestricted Reserves $ 4,890 $ (4,890)$ -0- .
Total Reserves $ 4,890 $ (4,890)$ -0-
FISCAL IMPACT None. Information item only. CONSEQUENCE OF NEGATIVE ACTION None. Information item
only. CLERK'S ADDENDUM
January 17, 2017 Contra Costa County Housing Authority 9
RECOMMENDATIONS
RATIFY the Housing Choice Voucher payment standards for the Housing Authority of the County of Contra Costa
effective October 1, 2016.
BACKGROUND
Payment standards are used to calculate the housing assistance payment (HAP), or subsidy, that a housing authority
(HA) will pay on behalf of families leasing units under the program. Each HA must establish a schedule of payment
standard amounts by bedroom size. The range of possible payment standard amounts is based on HUD’s published
fair market rent (FMR) schedule for the FMR area within which the HA has jurisdiction. HACCC’s payment
standards are based on the FMRs for the Oakland-Fremont, CA Metro area which includes all of Alameda and Contra
Costa Counties. FMRs are based on the 40th percentile of rents charged for standard housing in the FMR area. This is
the dollar amount below which 40 percent of the standard-quality rental housing units are rented. HAs may set their
payment standards amounts from 90% to 110% of the published FMRs without HUD approval. Payment standards
can be set higher or lower than this basic range in response to market conditions with HUD approval.
The level at which the payment standards are set directly affects the amount of subsidy a family will receive, and the
amount of rent paid by program participants. If the payment standard amount is too low:
Action of Board On: 01/17/2017 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:John Gioia, Commissioner
Candace Andersen,
Commissioner
Diane Burgis, Commissioner
Karen Mitchoff,
Commissioner
Federal D. Glover,
Commissioner
Jannel George-Oden,
Commissioner
ABSENT:Fay Nathaniel, Commissioner
Contact: 925-957-8028
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: January 17, 2017
Joseph Villarreal, Executive Director
By: June McHuen, Deputy
cc:
C.2
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:January 17, 2017
Contra
Costa
County
Subject:HOUSING CHOICE VOUCHER PAYMENT STANDARDS EFFECTIVE OCTOBER 1, 2016
January 17, 2017 Contra Costa County Housing Authority 10
BACKGROUND (CONT'D)
Families may need to pay more for rent than they can afford; or
Families may have a hard time finding acceptable units or units in more desirable areas; or
Housing choices will be narrowed and the HA’s efforts to affirmatively further fair housing will be undermined.
If the payment standards amounts are too high, owners may be encouraged to ask for higher than reasonable rents.
A comparison of the FMRs for the previous federal fiscal year (FFY) and the FMRs for the upcoming FFY is shown
below.
Bedrooms 0 1 2 3 4 5 6 7
FFY 2016 FMRs $1,380 $1,663 $2,103 $2,932 $3,268 $3,758 $4,248 $4,739
FFY 2017 FMRs $1,435 $1,723 $2,173 $3,017 $3,477 $3,999 $4,520 $5,042
Percent Change 4%3.6%3.33%2.9%6.4%6.4%6.4%6.4%
As first approved by the Board on May 12, 2015, HACCC's payment standards were split into two different amounts.
Currently, one payment standard is used for all cities located in East County and a second for the rest of the cities in
HACCC's jurisdiction. This was done to give families greater access to housing opportunities in low poverty
neighborhoods throughout the County and also in an effort to minimize voucher concentration in East County while
stemming the loss of vouchers in all other areas of HACCC's jurisdiction.
The proposed payment standards are shown below. They are based on the new HUD-approved FMRs and the leasing
patterns of HACCC's clients. The proposed payment standards for the East County cities of Antioch, Bay Point,
Bethel Island, Brentwood, Byron, Discovery Bay, Knightsen and Oakley are set at 100% of the newly revised FMRs.
The proposed payment standards for the remaining portions of HACCC's jurisdiction are set at 110% of the new
FMRs, the highest level they can be set at without special permission from HUD. The proposed payment standards
are as follows:
Bedrooms 0 1 2 3 4 5 6 7
East County - 100%$1,435 $1,723 $2,173 $3,017 $3,477 $3,999 $4,520 $5,042
All Others - 110%$1,578 $1,895 $2,390 $3,318 $3,824 $4,398 $4,972 $5,546
FISCAL IMPACT
Funding for this program is provided by the U.S. Department of Housing and Urban Development (HUD). Funding
for the proposed change is provided for in the Housing Authority of the County of Contra Costa's (HACCC) current
budget.
CONSEQUENCE OF NEGATIVE ACTION
Should the Board of Commissioners not ratify the proposed payment standards, then HACCC will not be in
compliance with HUD regulations and could be subject to financial sanctions or other penalties.
CLERK'S ADDENDUM
January 17, 2017 Contra Costa County Housing Authority 11
RECOMMENDATIONS
APPROVE and AUTHORIZE the Executive Director of the Housing Authority, or his designee, to execute a contract
with HD Supply Facilities Maintenance in an amount not to exceed $200,000 to provide facilities maintenance,
repair, operating and industrial materials and related services through July 31, 2017.
BACKGROUND
HACCC is in need of a materials provider that can supply a wide variety of tools and supplies needed to operate and
maintain its public housing properties and administrative buildings. The vendor must be able to provide these
materials either on-demand, or within a short time window. An ongoing contract with one or more providers will help
ensure product continuity, fast and easy ordering with trackable invoicing and next-day delivery systems in order to
minimize interruptions in HACCC staff workflow.
In soliciting this contract HACCC has made use of its ability to utilize interagency purchasing agreements. HUD
requires housing authorities to competitively solicit goods and services. Usually the entire procurement process is
conducted in-house by a housing authority looking for a particular product or service. However, HUD permits, and
even encourages, housing authorities to procure goods
Action of Board On: 01/17/2017 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:John Gioia, Commissioner
Candace Andersen,
Commissioner
Diane Burgis, Commissioner
Karen Mitchoff,
Commissioner
Federal D. Glover,
Commissioner
Jannel George-Oden,
Commissioner
ABSENT:Fay Nathaniel, Commissioner
Contact: 925-957-8028
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: January 17, 2017
Joseph Villarreal, Executive Director
By: June McHuen, Deputy
cc:
C.3
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:January 17, 2017
Contra
Costa
County
Subject:AGREEMENT WITH HD SUPPLY FACILITIES MAINTENANCE
January 17, 2017 Contra Costa County Housing Authority 12
BACKGROUND (CONT'D)
and services via cooperative and interagency agreements. Such agreements can greatly simplify and expedite the
procurement process since the housing authority does not have to develop specifications, solicit vendors for bids or
evaluate those vendors that submit bids. Also, cooperative agreements can offer substantial pricing discounts to
housing authorities because vendors can price their products and services more aggressively when they know their
customer base is significantly larger than just one agency.
In seeking a maintenance materials vendor, HACCC utilized an interagency purchasing agreement. If approved by
the Board, this contract will be awarded through Maricopa County, Arizona's solicitation for Maintenance, Repair,
Operating Supplies, Industrial Supplies and Related Services issued on May 6, 2011, and awarded on August 1,
2011. This contract was subsequently renewed and extended through July 31, 2017.
If approved by the Board, the proposed contract will be awarded to HD Supply Facilities Maintenance (HDSFM).
HDSFM was awarded a contract via a solicitation issued by Maricopa County, Arizona through the U.S.
Communities Government Purchasing Alliance (USCGPA). USCGPA is the leading national cooperative purchasing
program, providing world class government procurement resources and solutions to local and state government
agencies, school districts (K-12), higher education institutions, and nonprofits looking for the best overall supplier
government pricing. The benefits of using USCGPA include a no-fee-or-cost process that, by combining the potential
cooperative purchasing power of up to 90,000 public agencies, enables access to the best overall supplier government
pricing on quality brands that are backed by the integrity, experience and oversight by public purchasing
professionals.
Six bidders responded to Maricopa County's solicitation and HDSFM was selected as the most qualified, responsible
bidder. Since the USCGPA award to HD Supply was for a period extended to July 31, 2017, HACCC can utilize this
award any time prior to July 31, 2017, to sign its own contract with HDSFM. HD Supply has demonstrated the ability
to successfully implement a multi-state cooperative purchasing program with U.S. Communities as part of Contract
05091 for Wholesale Maintenance, Repair and Operating Supplies for over 5 years. They've greatly increased
awareness of the USCGPA Program to promote the benefits of using a compliant cooperative contract that has been
competitively solicited through a Lead Public Agency, Maricopa County, and continues to promote the contract to
best serve the needs of public agencies.
HD Supply is one of the largest industrial distributors in North America. The company provides a broad range of
products and value-added services to approximately 500,000 customers with leadership positions in maintenance,
repair and operations, water infrastructure and residential and non-residential construction sectors. Their leading
businesses include HD Supply Facilities Maintenance, HD Supply Waterworks and HD Supply Construction &
Industrial - White Cap. HD Supply has an expansive product offering of approximately 800,000 SKUs of quality,
name-brand and proprietary products at competitive prices. With approximately 550 locations across 48 states and
six Canadian provinces, their 13,000 associates provide localized, customer-driven services including jobsite
delivery, will call or direct-ship options, diversified logistics and innovative solutions that contribute to our
customers' success. In California, HDSFN maintains supply warehouses in the City of Industry, Sacramento, San
Diego and Hayward. By contracting with HDSFM through USCGPA, customers reap the benefits of savings on the
products and services in the proposed contract.
HACCC anticipates that the total cost of the contract will be $200,000 through July 31, 2017. At that time, if the
HDSFM contract with Maricopa County is extended, HACCC will seek to further extend this contract and return to
the Board for approval of an extension.
FISCAL IMPACT
The Housing Authority’s (HACCC) total cost for this service will not exceed $200,000. Funding for this contract is
included in HACCC's current budget using funds provided by the U. S. Department of Housing and Urban
Development.
CONSEQUENCE OF NEGATIVE ACTION
Should the Board of Commissioners elect not to award the contract to HD Supply Facilities Maintenance, HACCC
January 17, 2017 Contra Costa County Housing Authority 13
Should the Board of Commissioners elect not to award the contract to HD Supply Facilities Maintenance, HACCC
will be required to go out to bid for maintenance, repair, operating and industrial supplies. This process would be
lengthier and likely more expensive than procuring this service via the USCGPA process.
CLERK'S ADDENDUM
January 17, 2017 Contra Costa County Housing Authority 14
RECOMMENDATIONS
APPROVE and AUTHORIZE the Executive Director to execute a contract with Vacant Property Security in an
amount not to exceed $400,000 to provide secure entry systems for vacant public housing units/buildings for the
period January 18, 2017, to July 10, 2017. The contract will also contain four annual options to renew effective July
10th of each year. If all options to renew are accepted, the total contract would not exceed $3,847,309 and the final
term would commence on July 11, 2020, and end on July 11, 2021.
BACKGROUND
When a public housing unit becomes vacant, there is usually some delay before it is re-leased. Normally this delay is
short, but it could be longer, especially if the unit needs extensive repairs or if the new family needs time to move out
of their existing unit. Under the RAD program, many units will remain vacant until all RAD approvals are received
and they are sold. HACCC uses a mixture of plywood and metal coverings to temporarily seal vacant units. Metal
coverings are used for units where break-in is a concern. Through this contract, VPS will rent metal security covers
to HACCC as needed.
In soliciting this contract HACCC has made use of its ability to utilize interagency purchasing agreements. HUD
requires housing authorities to competitively solicit goods and services. Usually the entire procurement process is
conducted in-house by a housing authority looking for a particular product or service. However, HUD permits, and
even encourages, housing authorities to procure goods and services via cooperative and interagency agreements.
Such agreements can greatly simplify and expedite the procurement process since the housing authority does not have
to develop specifications, solicit vendors for bids or evaluate those vendors that submit bids. Also, cooperative
agreements can offer substantial pricing discounts to housing authorities because vendors can price their products
Action of Board On: 01/17/2017 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:John Gioia, Commissioner
Candace Andersen,
Commissioner
Diane Burgis, Commissioner
Karen Mitchoff,
Commissioner
Federal D. Glover,
Commissioner
Jannel George-Oden,
Commissioner
ABSENT:Fay Nathaniel, Commissioner
Contact: 925-957-8028
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: January 17, 2017
Joseph Villarreal, Executive Director
By: June McHuen, Deputy
cc:
C.4
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:January 17, 2017
Contra
Costa
County
Subject:AGREEMENT WITH VACANT PROPERTY SECURITY
January 17, 2017 Contra Costa County Housing Authority 15
and services more aggressively when they know their customer base is significantly larger than just one agency.
HACCC utilized this cooperative procurement process to secure the proposed services of VPS for this contract. The
San Francisco Housing Authority (SFHA) competitively procured
January 17, 2017 Contra Costa County Housing Authority 16
BACKGROUND (CONT'D)
Vacant Unit Secure Entry Systems (Solicitation #16-050-RFP-0009) on May 5, 2016, and executed a contract with
Vacant Property Security (VPS) on July 11, 2016, for one year, and up to 5 years with extensions, as a result of that
procurement. VPS has agreed to extend the same terms of that contract to HACCC for our vacant-unit security needs.
VPS is an industry leader in securing, maintaining and managing vacant properties. Since 1993, VPS has been trusted
by a wide range of customers throughout various industries. VPS' innovative suite of security products and expert
services allow customers to protect and preserve their properties against unauthorized access, while maintaining their
property’s value. With multiple locations throughout the United States, VPS prides itself on delivering the trust and
security customers can expect from a large, nationwide company, while offering customized and relevant solutions
for each local market.
VPS has a proprietary metal enclosure system that has been successful, to date, in preventing break-ins at some of our
developments where their product is already in use from prior years' contracts. The cost of the security units breaks
down to $30 per door per month and $15 per window per month. This contract is slated to expire when SFHA's does
on July 10, 2017. If HACCC is pleased with the service and product provided by VPS, and if SFHA renews their
contract (since this is an interagency agreement), then HACCC will extend this contract as well. If HACCC and
SFHA renew all four options, the final term would commence on July 11, 2020, and end on July 11, 2021. If the
amount spent on this contract will exceed $3,847,309 at any time prior to July 11, 2021, then staff must bring this
contract back for approval by the Board.
FISCAL IMPACT
Funding for this contract is included in the Housing Authority's (HACCC) current budget using funds provided by
the U. S. Department of Housing and Urban Development.
CONSEQUENCE OF NEGATIVE ACTION
Should the Board of Commissioners elect not to approve a contract with VPS to provide secure entry systems for
vacant units/buildings, HACCC will be required to go out to bid for vacant unit secure entry systems. This process
would be lengthier and likely more expensive than procuring via this cooperative procurement process.
CLERK'S ADDENDUM
January 17, 2017 Contra Costa County Housing Authority 17