DATE: March 18, 2024
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager
FROM: Sofia Mangalam, Community Development Director
Nori Jabba, Housing Coordinator
DEPARTMENT: Community Development
SUBJECT: CONTRACT AMENDMENT NO. 1 TO THE EXISTING
AGREEMENT WITH HIP HOUSING AFFORDABLE VENTURES
FOR PROPERTY MANAGEMENT SERVICES FOR EXISTING
UNIT PURCHASE PROGRAM PROPERTY AT 833 AND 835
COMET DRIVE
RECOMMENDATION
It is recommended that the City Council approve the attached Resolution (Attachment 1) approving Contract Amendment No. 1 to the existing agreement for property management services with HIP Housing Affordable Ventures (HHAV), Inc. in the amount of $122,660 to cover additional cost for major repairs for the Existing Unit Purchase Program property located at 833 and 835 Comet Drive and find the project exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline Section 15061(b)(3).
EXECUTIVE SUMMARY
Since 2008, the City has owned six (6) units, including a duplex at 833 and 835 Comet Drive as part of the six-unit Existing Unit Purchase Program (EUPP). The six (6) units are managed by HHAV. The current agreement with HHAV, dated February 24, 2021, provides for a combined total of compensation and reimbursement of costs not to exceed the sum of forty-five thousand dollars ($45,000).
On February 05, 2024, the City Council approved a supplemental appropriation of $131,460 for substantial repairs to 833 and 835 Comet Drive due to water intrusion and
associated temporary relocation expenses (Attachment 3). Thus, it is necessary to increase the agreement amount to provide payments for major repairs in the amount of $122,660 (after deducting $8,800 for temporary relocation assistance from the supplemental appropriation amount). The combined total of compensation and reimbursement cost would be $167,660 (Original Agreement of $45,000 + Contract Amendment No.1 of $122,660).
BACKGROUND
As noted earlier, the six (6) EUPP units are managed by HHAV. The units at 833 and 835 Comet Drive need major repairs due to water intrusion requiring the following work to be performed:
•Improvement of the drainage systems by a licensed landscaping company. •Replacement of the corroded sewer lines by a licensed plumber. •Restoration of the foundation crawlspace and installation of waterproof liners and sump pump systems by a general contractor with expertise in crawlspace restoration.
The existing Agreement for Professional Services for Property Management and Leasing with HHAV, dated February 24, 2021, Section C.3. states:
“invoices in excess of $45,000 shall not be paid unless the performance of services and/or reimbursement of costs and expenses in excess of said amounts have been approved in advance of performing such services or incurring such costs and expenses by the City Manager (for contacts less than $50,000) or City Council (for Contracts $50,000 or more) evidenced by motion duly made and carried, and a written contract amendment has been executed.”
Therefore, staff is requesting an increase of the contract amount to include the cost of substantial repairs in the amount of $122,660 for the EUPP property located at 833 and 835 Comet Drive so that the City can reimburse HHAV for the costs of the repair.
CEQA
The proposed action would not result in physical changes to the environment other than minor trenching and installation of piping and would be exempt pursuant to CEQA Guidelines Section 15061(b)(3).
FISCAL IMPACT
The cost of Contract Amendment No. 1 for Professional Services Agreement for Property Management and Leasing is $122,660. The supplemental appropriation was approved by the City Council on February 5, 2024.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Facilities and Infrastructure
ATTACHMENTS:
Attachment 1 – Resolution
Attachment 2 – Contract Amendment No. 1 to Agreement with HIP Housing Affordable Ventures
Attachment 3 – February 5, 2024 City Council Staff Report Attachment 4 – 2021 Agreement with HIP Housing Affordable Ventures