12-047_NEW TURTLE ISLAND_Agenda ReportTO: Karen P. Brust, City MiaAA I
FROM: Grant Taylor, Development Services Director
4117120/2
Five
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SUBJECT: Consideration of Request for Proposals for Consulting Services for the
Owner Occupied Rehabilitation Program Facilitation and Loan Processing
RECOMMENDATION:
By motion,
1. Approve the Request for Proposals (RFP), and direct staff to solicit proposals for
consulting services for the Owner Occupied Rehabilitation Program Facilitation
and Loan Processing; and,
2. Upon approval by the State, authorize staff to bring back to the City Council, a
Personal Services Agreement for final approval.
SITUATION:
In July 2011, staff received City Council authorization to submit a grant application
for owner -occupied housing rehabilitation as soon as funding became available.
Staff submitted the grant application to the State of California requesting $700,000 in
August 2011. The City received a letter from the State of California dated February
10, 2012, announcing that the City had been awarded $700,000, to be spent within
a three year period, to continue the City's Owner Occupied Rehabilitation (OOR)
Program (Attachment 1- Award Letter from State of California dated February 10,
2012).
Per State regulations, if the City wishes to utilize the services of a grant administrator to
assist in facilitating the HOME loans and OOR Program requirements, the City must
solicit bids through a competitive procurement process for an administrative
subcontractor. If the administrative subcontractor selected is other than the one
identified in the competitive application, the State must review the bid proposal and
approve the administrative subcontractor prior to the City Council awarding the
contract. The City did not identify an administrative subcontractor within the grant
application, because the consultant would not have been necessary if the City had not
been awarded funding. Additionally, if only one responsive bid is received, the City
must obtain approval from the State in advance of the contract award.
Staff has drafted a Request for Proposals (RFP) for loan processing and facilitation of
the OOR Program (Attachment 2- Draft Request for Proposals). Staff is requesting City
Council's approval of the RFP prior to distribution to ensure the City Council is satisfied
with all requested components prior to soliciting proposals. After approval, staff will
Agenda Report April 17, 2012
Page 2
solicit proposals, select a preferred proposal, and send the selected proposal and the
bid process to the state for approval.
Staff inquired with other jurisdictions, which maintain similar programs, for
recommended consulting firms and established a list of pre -qualified firms. The
identified firms are listed below:
• MDG Consultants
• Housing Programs
• Housing Improvement Specialist
• AmeriNational Community Services, Inc.
• RSG
• Pacific Code Compliance
• Housing Rehab Consulting Services
• Smith Custom Construction
BACKGROUND:
Since 1998, the City has provided loans to approximately 200 lower income owner -
occupied households for health and safety repairs through the City's OOR program.
The OOR program enables the City to demonstrate compliance with the General Plan
Housing Element goals, including rehabilitation of approximately 20 households
annually. Staff requested $700,000 HOME funds from Housing and Community
Development (HCD) to continue the existing OCR program.
From 2004 through 2008 the City contracted with JDK and Associates for the Owner
Occupied Rehabilitation Program facilitation and loan processing. JDK and Associates
was offered a full time position with another jurisdiction, which resulted in the City's in-
house staff continuing the program through 2011, which only funded two additional
loans. City Staff cannot continue to process the program loans and facilitation due to
the significant increase in funding, and the current waiting list of approximately 60
households requesting loans for health and safety repair work.
Owner Occupied Rehabilitation Program:
The OOR Program offers zero percent interest deferred payment loans to make needed
health and safety repairs of up to $30,000 to eligible low-income owners of single-
family, (one -to -four units) condominiums, and town homes, and up to $20,000 for
eligible mobile home owners. The loans are due in 30 years, at refinance, when the
owner ceases to reside in the property, or upon sale or change in ownership.
COMMISSION/BOARD REVIEW AND RECOMMENDATIONS:
The Housing Advisory Committee was notified at their meeting on March 28, 2012,
that the City will be soliciting bids for administration of the HOME grants and
concurred with the action.
Agenda Report April 17, 2012
Page 3
The State authorized 2.5% of the total $700,000 grant to be used for administration,
therefore, $17,500 may be used to pay for the grant administration which includes
quarterly and annual reporting, processing loan payoffs, and general finance
oversight. Additionally, each loan processed may use 24% of the total loan amount for
activity delivery costs, which include all work associated with processing the loans
and work directly associated to each unit rehabilitated. For example, a loan issued for
$30,000 is allowed up to $7,200 for activity delivery.
Total Grant Awarded I $700,000
Administration 2.5% $17,500
Loans and Activity Delivery $582,500
The consultant will be entirely funded through the funds associated with activity delivery
or 24% of each loan they process. Therefore, the final agreement with a qualified
consultant will not exceed $7,200 (based on a maximum $30,000 loan) for each loan
issued for condominium rehabilitation and $4,800 (based on a maximum $20,000 loan)
for each loan issued for a mobile home rehabilitation.
All staff and consultant activities for the HOME grant and OOR Program will be
completely paid for with HOME grant funds and have no financial impact to the City
of San Juan Capistrano.
RECOMMENDATION:
1. Approve the Request for Proposals (RFP), and direct staff to solicit proposals for
consulting services for the Owner Occupied Rehabilitation Program Facilitation
and Loan Processing; and,
2. Upon approval by the State, authorize staff to bring back to the City Council, a
Personal Services Agreement for final approval.
Respectfully submitted,
h--* `-� I -
Grant Taylor '� 9
Development Services Dir4tor ,
Attachments:
Prepared by,
Laura Stoes
Housing/Redevelopment Coordinator
1. Award Letter from State of California dated February 10, 2012
2. Request for Proposals
STATE OF CALIFORNIA - BUSINESS, TRANSPORTATION ANIS HOUSING A.QENCY Edmund G. awn JrGoy rrigr
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION"OF FINANCIAL ASSISTANCE
FEDERAL. PROGRAMS BRANCH
HOME INVESTMENT PARTNERSHIPS PROGRAM
1800 Third Street, Suite 390-3
RC. Box 952054
Sacramento, CA 94252-2054
�8aef 322-x358
FAX (9 16) 322-2904
FIB I fl, 2012
Ms. Karen P. Brust
City Manager
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Dear Ms. Brust:
Re; City of San Juan Capistrano - 11 -HOME -7671
Congratulations on your HOME Program Award. Attached is an electronic copy of the
State's HOME Standard. Agreement, with Exhibits A through E, which contains the following
provisions:
Exhibit A - Program Authority, Purpose and Scope of Work
Exhibit B - Program Set -Up and Disbursement Conditions
Exhibit C - State of California General Terms and Conditions
Exhibit D - HOME Terms and Conditions
Exhibit E - Special Conditions applicable to this Standard Agreement
To ensure efficient processing of the Standard Agreement, please complete the
following:
• Review the Standard Agreement thoroughly and if necessary discuss the
requirements with your legal and financial advisers;
m Print five (5) copies of the Standard Agreement, STD. 213 cover page (do not print
a copy of the exhibits for HCD);
The person authorized by the Resolution, submitted with the grant application, must
provide an original signature, printed name, title and date on the lower left-hand
"Contractor" section, on each copy of the STD. 213 cover page. If the resolution
submitted with the application did not authorize a designated official to sign the
Standard Agreement and other program documents, the governing body must
adopt a resolution authorizing a designated official(s) to sign the Standard
Agreement and other documents;
Page 1 ATTACHMENT 1
Ms. Brust
Page 2
Return five (5) originally signed STD. 213 cover pages, and if applicable the
certified resolution within 30 days from the date of this letter to:
Department of Housing and Community Development
Business & Contract Services Branch
1800 Third Street, MS# 350
Sacramento, CA 95811
The Department reserves the right to cancel any pending Standard Agreement in it's
entirety if not returned within the required 30 -day period.
Maintain this electronic version of the complete Standard Agreement (STD. 213 and Exhibits A
through E) for your records. Upon receipt of the five (5) original, signed STD 213 cover pages,
HCD will complete the approval process and send you an electronic copy of the fully executed,
original Standard Agreement along with an originally signed copy sent by U.S. Mail.
Please accept my best wishes for a successful project. Please contact the HOME Program at
(916) 322-7558 if you have any questions regarding the Standard Agreement or the provisions
therein.
Sincerely,
Nicole McCay,
Program Manager
cc: Business & Contract Services Branch
Chandra Y. Clady, Contract Representative
Page 2
32400 PASF_O AD LANTO
SADA JUAN CA PISTRANO, CA 92675
(949) 493-1171
(949) 493-1053 FAX
www. sanjuancapistrana o),g
April _, 2012
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MEMBERS OF THE CITY COUNCIL
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SAM ALLIEVATO
LAURA FREFSE
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LARRY KRAMER
DEREK REEVE
JOHN TAYLOR
To Interested Administrative Subcontractors:
Subject: Request for Proposals for Grant Administrator of the City of San Juan
Capistrano 2011 HOME Grant Owner Occupied Rehabilitation Program
The City of San Juan Capistrano is requesting proposals from qualified firms for a grant
administrator to assist in administering the City's HOME Grant activities for a period of
three years. The City has been awarded $700,000 in 2011 HOME Program funds from
the State of California and may apply for additional HOME funding in 2013. Current
HOME funding, future new grant funding, and program income funding will be used over
the course of three years to provide program administration responsibilities for the City's
Owner -Occupied Housing Rehabilitation.
The Owner -Occupied Housing Rehabilitation program assists lower income home
owners of single-family residences and mobile homes with zero percent interest
loans of up to $30,000 (single-family homes and condominiums) and $20,000 (mobile
homes) for health and safety rehabilitation work.
The grant administrator will be responsible for the following:
• Preparing required environmental documentation for the specific unit
• Marketing the program to all demographics within the City
• Reviewing applications for program eligibility,
o Completing in-depth reviews of household incomes to determine income
level
o Review of resale values of comparable homes to determine unit eligibility
• Performing inspections of units for code violations and health and safety
concerns
o Preparing work write-ups for contractors to repair all violations and
concerns
o Prepare cost evaluation for contractor bid comparison
• Processing of loan documents and escrow paperwork as required
• Processing and recording liens
• Assist in preparing reports to the State as required
• Monitoring expenditures and loan payoffs
2011 HOME Grant
OOR Program RFP
San Alan Cal)i,,arano: Pi-eserving the Past to Enhc nt,e the Futurr
el Printed on 100% recycled paper ATTAP`WRAFAIT 7
• Attending training sessions as requested
• Maintaining records pursuant to HOME regulations.
Proposals should include at a minimum the following:
1. Detailed description and reference of your firm's experience and ability to
provide the services contained within the attached RFP, including:
a. Experience related to administering grants (HOME and CDBG), including
the number of units assisted each year for HOME and CDBG and the
names of the HOME and CDBG participating jurisdictions or HOME state
recipients;
b. Experience in administering a housing rehabilitation program, including
reviewing applications for program eligibility, performing inspections, work
write-ups, loan documents, recording liens, etc.;
c. Knowledge of State HOME regulations;
d. Experience in real estate transactions, including filing and releasing liens,
financing, loan documents, escrow instructions, etc.;
e. Knowledge of Federal and State laws affecting housing issues.
2. A listing of the key personnel to be involved in the actual administration of
each specific program outlined in the RFP, their experience for the specific
program(s) that they will be responsible for, and a schedule of the estimated
hours all personnel will work each week (on and off-site).
3. A proposed monthly fee to perform the services outlined in the RFP, including
a breakdown of the estimated cost, estimated hours, and the hourly rates for
all personnel to be involved in the services provided. An additional breakdown
of estimated time and fee on a per loan basis would be preferred.
4. A list of references.
The City San Juan Capistrano will select the grant administrator based upon the
selection criteria in City Council Policy 112. The successful grant administrator will
enter into a Personal Services Agreement with the City and will work directly with
Development Services Department's Housing/Redevelopment Coordinator. An
example of the City's Personal Services Agreement is enclosed with this Request
for Proposals for reference.
Proposals must be received by mail or fax in the Development Services
Department no later than 5 p.m. on Thursday, May 3, 2012 to be considered.
2011 HOME Grant
OOR Program RFP
Page 2
Please send your proposal to the Development Services Department, City of San Juan
Capistrano, 32400 Paseo Adelanto, San Juan Capistrano, California 92675, The City's
fax number is (949) 661-5451. Depending upon the proposals submitted, the City may
invite the most qualified candidates to participate in an oral interview with the City's
staff. Selection of the most qualified consultant requires State approval prior to selection
of the Administrative Subcontractor. The City anticipates scheduling the award of
contract for consideration on June 5, 2012. The City looks forward to receipt of your
proposal.
Sincerely,
Laura Stokes
Housing/Redevelopment Coordinator
Enc.
2011 HOME Grant
OOR Program RFP
Page 3