CITY OF POMONA
COUNCIL REPORT
October 17, 2022
To: Honorable Mayor and Members of the City Council
From: James W. Makshanoff, City Manager
Submitted By: Kirk Pelser, Deputy City Manager
SUBJECT: APPROVE A SOLE SOURCE AGREEMENT WITH HdL COMPANIES FOR RENTAL PROPERTY REGISTRATION SERVICES RECOMMENDATION:
It is recommended that the City Council take the following actions:
Approve a sole source professional services agreement to HdL Companies, not to exceed a maximum annual amount of $30,000 for Rental Registration Administration Services; and Authorize the City Manager to execute a three-year agreement, with two one-year renewal options, with HdL Companies and any subsequent documents or amendments, subject to review and approval by the City Attorney.
EXECUTIVE SUMMARY:
Staff is seeking Council approval of an initial three-year agreement, with two one-year renewal options, with HdL Companies (HdL) for Rental Property Administration Services in relation to the City’s Rent Stabilization Urgency Ordinance # 4320, which was adopted on August 1, 2022.
FISCAL IMPACT:
The total fiscal impact of the proposed sole source professional services agreement with HdL is estimated to not exceed an annual maximum of $30,000, totaling up to $90,000 for the agreement term of three years. Funding for the recommended actions are available in the adopted FY 2022-23 Operating Budget in the American Rescue Plan Act Fund (191-0800-xxxxx-00000), and will be budgeted accordingly each year thereafter. This cost will be offset once a fee is established for property owners.
PREVIOUS RELATED ACTIONS:
Adoption of Urgency Ordinance #4320 on August 1, 2022.
Resolution No. 2022-75 was adopted, approving the annual update to the Fiscal Year (FY) 2022-23 Master Fee Schedule for services provided by the City on May 9, 2022.
DISCUSSION:
Approval of this item will authorize a sole source agreement with HdL for Rental Unit Registration and Stabilization Administrative Services with Online Filing Software and Compliance Services. City Code 2-994 requires City Council approve sole or single source requests over $100,000 after review by the Procurement Officer, Finance Director and City Manager. HdL produces and is the sole distributor of this proprietary suite of administrative and software services. Purchasing concurs with the sole source justification on the basis of a letter received from HdL and confirming the assertion that this suite of services and software cannot be provided by another vendor.
The City adopted Urgency Ordinance No. 4320 on August 1, 2022, which immediately established urgency rent control measures in the City of Pomona on all applicable units subject to State Law (the Costa-Hawkins Rental Housing Act). In order to implement Ordinance No. 4320, and any subsequent related legislation, there is an immediate need to have an accurate inventory and registration process for all residential rental properties in Pomona and distillation of those properties that are subject to the Ordinance.
HdL’s Scope of Services for this agreement include:
Rental Property Registration Database Management
Renewal Processing
New Account Processing
Payment Posting / Processing
Rental Support Center
On-Line Filing & Payment Processing
Optional Services
Project Planning and Implementation
Communication
Consulting and Support
Reporting
Online Services
Dispute Resolution
Rental Property Identification, Compliance and Education Services Enriched Data Portfolio / Lead Identification
Exception Resolution
Compliance Communication and Outreach
Landlord Assistance Center
Landlord Assistance Center Online
Document Submission / Processing
Invoicing
Remittance
This professional services agreement will be the first step to establish a Rental Registration Administrative Service. A later action will come before for the Mayor and City Council to incorporate the eventual fee established for Property Owners (Landlords). This fee will then be housed in the Citywide Master Fee Schedule and incorporated into the FY 2023-24 Operating Budget. At the time of that approval, the fee will go into effect 60 days after adoption.
ATTACHMENT:
Attachment No. 1 – Rental Property Administrative Services Proposal Approve Sole Source Agreement with HdL Companies for Rental Registration Administration Service October 17, 2022