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HomeMy WebLinkAboutMINUTES - 11052013 - HA C.03RECOMMENDATIONS APPROVE and AUTHORIZE the Executive Director to execute a contract amendment with Sterling Claim Services, Inc., to increase the payment limit by $228,805 to a new payment limit of $1,146,681 to provide additional Housing Quality Standards and Uniform Physical Condition Standards inspections, with no change to the contract term of February 1, 2011 through January 31, 2014; and RATIFY payments previously made to Sterling Claim Services, Inc., for additional Section 8 Housing Quality Standards inspections for the period beginning February 1, 2011 and ending January 31, 2012 in the amount of $62,875 and for the period beginning February 1, 2012 and ending January 31, 2013 in the amount of $65,595. BACKGROUND HUD requires all housing authorities to conduct annual Housing Quality Standards (HQS) inspections of every unit leased under the voucher program and Uniform Physical Condition Standards (UPCS) of every public housing unit. Additional inspections are required as a follow-up to any failed inspections, in response to complaints, and as deemed appropriate to ensure compliance with federal program regulations. On January 25, 2011, the Board approved a contract with Sterling Claim Services, Inc., for HQS and UPCS inspections commencing on February 1, 2011 and ending on January 31, 2012. Under the contract terms approved by the Board, HACCC had two, one-year renewal options that, Action of Board On: 11/05/2013 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF COMMISSIONERS AYE:John Gioia, District I Commissioner Candace Andersen, District II Commissioner Mary N. Piepho, District III Commissioner Karen Mitchoff, District Commissioner Federal D. Glover, District V Commissioner ABSENT:Geneva Green, Tenant Seat 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: November 5, 2013 Joseph Villarreal, Executive Director By: June McHuen, Deputy cc: HA Administration C.3 To:Contra Costa County Housing Authority Board of Commissioners From:Joseph Villarreal, Housing Authority Date:November 5, 2013 Contra Costa County Subject:Contract Increase For Housing Inspections Conducted by Sterling Claim Services, Inc. BACKGROUND (CONT'D) if exercised, would extend the contract until January 31, 2014. The contract options permitted the contract amount to be increased by the same percentage that the State's prevailing wage rate for Building and Construction Inspectors was raised. HACCC exercised its options to renew this contract in February, 2012 and February, 2013. While the cost per inspection charged by Sterling has stayed below the maximum amount permitted by the contract, the number of inspections conducted has been significantly higher than expected. This is due to increases versus projected in the number of voucher units that failed HQS inspections and in the number of tenants that failed to keep their scheduled HQS appointment. In both cases, there is a separate charge for the failed or missed first inspection and another for the follow-up inspection. The original contract approved by the Board allowed HACCC to expend $917,876 over three years. Due to the increase in the number of inspections, HACCC paid an additional $62,879 during the first year of the contract and an extra $65,595 during the second year. Based on the first two years of this contract, staff project that the total three-year cost of the contract will increase by $228,805 from $917,876 to $1,146,681. FISCAL IMPACT Funding for this contract is included in the Housing Authority's budget. CONSEQUENCE OF NEGATIVE ACTION Should the Board of Commissioners not approve a contract amendment with Sterling Claim Service, HQS and UPCS inspections may not be conducted in a timely manner. This would cause HACCC to fall out of compliance with HUD regulations. CLERK'S ADDENDUM