CITY OF POMONA
COUNCIL REPORT
August 7, 2023
To: Honorable Mayor and Members of the City Council
From: James W. Makshanoff, City Manager
Submitted By: Kirk Pelser, Deputy City Manager
SUBJECT: AMEND THE AGREEMENT WITH HdL COMPANIES FOR RENTAL PROPERTY REGISTRATION SERVICES RECOMMENDATION:
It is recommended that the City Council take the following actions:
Amend the professional services agreement to HdL Companies, not to exceed a maximum annual amount of $250,000 for Rental Registration Administration Services; and Authorize the City Manager to execute this amendment with HdL Companies and any subsequent documents, amendments, and extensions, subject to review and approval by the City Attorney.
EXECUTIVE SUMMARY:
Staff is seeking Council approval to amend the agreement with HdL Companies (HdL) for Rental Property Administration Services in relation to the City’s Rent Stabilization Urgency Ordinances No. 4320 & 4329 adopted on August 1, 2022 and April 17, 2023, respectively. The original agreement was approved on October 17, 2022 with a not to exceed maximum annual amount of $30,000. Originally, the registration costs were going to be passed on to the property owners through the establishment of fees. After the initial research to estimate the number of rental units in the City and the urgent need to establish a complete account of all rentals, staff is recommending that the cost associated with the first year’s citywide registration process be covered by American Rescue Plan Act Funding that has already been allocated to the City’s Rent Stabilization Program.
FISCAL IMPACT:
The total fiscal impact of the professional services agreement with HdL is estimated not to exceed $250,000 for the first 2 terms of the contract. Funding for the recommended actions are available in the Fiscal Year (FY) 2023-24 Operating Budget in the American Rescue Plan Act Fund (191-0800-52285-00000). Staff is amending another consultant agreement by reducing the amount needed to cover the increased costs associated with this agreement. Cost for the 3rd contract term will be offset by fees that will be established for property owners.
PREVIOUS RELATED ACTIONS:
Adoption of Urgency Ordinance No. 4320 on August 1, 2022 and No. 4329 on April 17, 2023 Approval of a sole source professional services agreement to HdL for Rental Property Registration Administration Services on October 17, 2022.
DISCUSSION:
Approval of this amendment will allow HdL to start outreach and gather data from property owners to establish a complete account of all rentals in the Rental Unit Registration Database.
The City adopted Urgency Ordinance No. 4320 on August 1, 2022 and No. 4329 on April 17, 2023, 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 these Ordinances, 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 Ordinances. City Council approved a professional services agreement with HdL on October 17, 2022 to provide Rental Property Registration Services.
Staff is now seeking authorization to amend the agreement with HdL to cover the registration costs, not to exceed an annual amount of $250,000, for the second year/term of the contract. The increased annual cost will cover the first year of application/registration costs that were originally planned to have been passed onto the property owners through fees. A later action will come before for the Mayor and City Council to incorporate the eventual fee(s) established for Property Owners (Landlords). This fee will then be housed in the Citywide Master Fee Schedule. At the time of that approval, the fee will go into effect 60 days after adoption.
Prepared by:
Shar Perez
Revenue Operations Manager
Amend Agreement with HdL Companies for Rental Registration Administration Service August 7, 2023