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HomeMy WebLinkAboutMINUTES - 08052014 - C.27RECOMMENDATION(S): APPROVE and AUTHORIZE the Conservation and Development Interim Director, or designee, to execute a contract amendment with Compliance Services, LLC, to extend the term expiration from May 6, 2014 to May 5, 2015 and increase the payment limit by $85,000 to a new payment limit of $645,000, to provide reporting and monitoring of affordable housing properties. FISCAL IMPACT: Contract costs are covered by a combination of federal grant administrative funds (Community Development Block Grant and HOME Investment Partnership program) and multi-family mortgage revenue bond administrative funds. No General Funds are used. BACKGROUND: The County entered into a contract with Compliance Services, LLC (Compliance Services) on May 6, 2008. The contract is subject to the terms of an underlying Master Software License & Hosting Agreement between Compliance Services and the California Statewide Communities Development Authority. The County is a “Participating Public Agency” under the master agreement. The Compliance Services monitoring and reporting system enables developers and public agencies to manage affordable housing records easily and efficiently. Real-time calculations and reports ensure compliance with federal, state and local income and rent restrictions. The software currently monitors over 600 affordable housing properties, APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 08/05/2014 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Kara Douglas - 674-7880 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: August 5, 2014 David Twa, County Administrator and Clerk of the Board of Supervisors By: Chris Heck, Deputy cc: C.27 To:Board of Supervisors From:John Kopchik, Interim Director, Conservation & Development Department Date:August 5, 2014 Contra Costa County Subject:Compliance Services Agreement BACKGROUND: (CONT'D) representing more than 65,000 units. At present, the County manages an affordable housing compliance portfolio of 84 multi-family properties - a number that will grow this year. The contract had an initial term of five years. After the first five years, the agreement automatically renews each year, unless either party gives a termination notice to the other party at least five days prior to the renewal date. When the contract was approved by the Board of Supervisors in 2008, the payment limit was set at $475,000 to cover the initial five-year term. In June 2013, the Board of Supervisors approved an increase in the payment limit of $85,000 to pay for services rendered in the sixth year of the contract (May 6, 2013 through May 5, 2014). Prior to implementing the web-based compliance system, the County devoted approximately 60 percent of a full time Housing Technician position to multi-family compliance matters. Because the web-based compliance system has made the process of completing federal and state monitoring reports much more efficient, the staffing requirement has dropped to approximately 25 percent of a full time staff position. The value of the increase in efficiency will continue to be realized as the County’s portfolio grows. Equally important, management staff now has access to compliance data in a format that is readily available and easily subject to analysis. Given the value of the software system and the absence of comparable products in the market, it is requested that the payment limit be increased by $85,000, to a new payment limit of $645,000, to pay for anticipated costs over the one-year period beginning May 6, 2014 and ending May 5, 2015. This increase in the payment limit reflects the base licensing fee of $75,000 per year and an anticipated $10,000 to cover the cost of new projects. CONSEQUENCE OF NEGATIVE ACTION: If the renewal licensing fees are not approved, the County will not have access to the reporting and monitoring program and additional staff will be required to oversee these matters. CHILDREN'S IMPACT STATEMENT: N/A