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HomeMy WebLinkAboutItem F RevisedSUMMARY OF REQUEST: That the City Council adopt Resolution No. 6719 approving an agreement amendment with JWA Urban Consultants for Seal Beach Shores Affordable Housing Monitoring services in an amount not to exceed $12,000. BACKGROUND AND ANALYSIS: Over the last several years, the City has been working with the Seal Beach Shores Board of Directors (SBS) to accommodate their desire to refinance existing debt. Throughout this time various issues have been identified and discussed with SBS regarding compliance with various agreements with the former City of Seal Beach Redevelopment Agency (agreements have been assumed by the Successor Agency to the Seal Beach Redevelopment Agency). In July 2015, at the suggestion of the City Attorney's office, the City hired JWA Urban Consultants (JWA) to perform a Compliance Audit of Seal Beach Shores with respect to the Regulatory Agreement. The amount of the initial agreement was $22,500 and was signed by the City Manager as it was within her signing authority. As agreed, the agreement was reported to the City Council late last year. The initial Compliance Audit identified various issues that now require follow -up and further work effort on the part of JWA. The amount of the new agreement brings the total amount to be paid to JWA to $47,500 with a contingency for extra work in the amount of $10,000 for a total contract expense in the amount of $57,500. Now, because of delays in the project brought about by a change in property managers at the park, the monitoring audit requires additional funding. The new request is in an amount not to exceed $12,000. The reason for the additional cost is that the current property manager became non - responsive to the City's representative. Now with a new property management company, Les Frame, in place staff is expecting the project to be complete by the end of the fiscal year. Agenda Item F SEA( _` A .r AGENDA STAFF REPORT s W IFOR DATE: March 27, 2017 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Victoria L. Beatley, Director of Finance /City Treasurer SUBJECT: SEAL BEACH SHORES — MONITORING AFFORDABLE HOUSING SUMMARY OF REQUEST: That the City Council adopt Resolution No. 6719 approving an agreement amendment with JWA Urban Consultants for Seal Beach Shores Affordable Housing Monitoring services in an amount not to exceed $12,000. BACKGROUND AND ANALYSIS: Over the last several years, the City has been working with the Seal Beach Shores Board of Directors (SBS) to accommodate their desire to refinance existing debt. Throughout this time various issues have been identified and discussed with SBS regarding compliance with various agreements with the former City of Seal Beach Redevelopment Agency (agreements have been assumed by the Successor Agency to the Seal Beach Redevelopment Agency). In July 2015, at the suggestion of the City Attorney's office, the City hired JWA Urban Consultants (JWA) to perform a Compliance Audit of Seal Beach Shores with respect to the Regulatory Agreement. The amount of the initial agreement was $22,500 and was signed by the City Manager as it was within her signing authority. As agreed, the agreement was reported to the City Council late last year. The initial Compliance Audit identified various issues that now require follow -up and further work effort on the part of JWA. The amount of the new agreement brings the total amount to be paid to JWA to $47,500 with a contingency for extra work in the amount of $10,000 for a total contract expense in the amount of $57,500. Now, because of delays in the project brought about by a change in property managers at the park, the monitoring audit requires additional funding. The new request is in an amount not to exceed $12,000. The reason for the additional cost is that the current property manager became non - responsive to the City's representative. Now with a new property management company, Les Frame, in place staff is expecting the project to be complete by the end of the fiscal year. Agenda Item F With the proposed amendment, the total cost of the monitoring audit will be $69,500. The cost of these professional services would typically be borne by the Successor Agency but since this expense occurred recently it is not allowed on the BOPS. However, it is in the City's best interest to ensure compliance prior to supporting the SBS refinance as the Oversight Board will need to approve the transaction. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has reviewed and approved as to form. FINANCIAL IMPACT: The Adopted FY 2016 - 2017 Budget includes sufficient funding in account 001 - 019 -44000 for professional services. RECOMMENDATION: That the City Council adopt Resolution No. 6719 approving an agreement with JWA Urban Consultants for Seal Beach Shores Affordable Housing Monitoring services in an amount not to exceed $12,000. SUBMITTED -B'!--.-� NOTED AND APPROVED: Director of Finance /City7reasurer Attachments: A. Resolution No. 6719 B. Professional Services Agreement Amendment #1 Exhibit A - JWA Urban Consultant Services Proposal Page 2 "Attachment A" RESOLUTION NUMBER 6719 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING A PROFESSIONAL SERVICES AGREEMENT AMENDMENT FOR SEAL BEACH SHORES MONITORING AFFORDABLE HOUSING THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The City Council hereby approves the professional services agreement ( "Agreement') amendment between the City of Seal Beach and JWA Urban Consultants for affordable housing monitoring services in a not to exceed amount of $12,000. Section 2. The Council hereby directs the City Manager to execute the Agreement. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 27th day of March, 2017 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Sandra Massa - Lavitt, Mayor ATTEST: Robin L. Roberts, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Robin L. Roberts, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution Number 6719 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 27th day of March , 2016. Robin L. Roberts, City Clerk Attau c h m . e n t t1 5 OV Attachment B. Professional Services Agreement #1 was added to the agenda as of March 24, 2017 AMENDMENT NO. 1 PROFESSIONAL SERVICES AGREEMENT Between City of Seal Beach 211 8th Street Seal Beach, CA 90740 rA JWA Urban Consultants, Inc. 609 Deep Valley Drive Suite #200 Rolling Hills Estates, CA 90274 This Amendment No. 1, dated March 27, 2017, amends that certain Professional Services Agreement ( "the Agreement') dated July 25, 2016, by and between JWA Urban Consultants, Inc. ( "Consultant'), a California Corporation, and the City of Seal Beach ( "City "), a California charter city, (collectively, "the Parties "). S7296- 0001\2051644vt.doc RECITALS A. City and Consultant are parties to the Agreement, pursuant to which Consultant provides certain professional services to the City as specified therein. B. City and Consultant wish to amend the Agreement to increase Consultant's compensation by $7,000 for additional services required in connection with the Project, for a revised total contract price not to exceed $32,000, plus a contingency of $5,000, as provided herewith. NOW THEREFORE, in consideration of the foregoing and of the mutual promises, covenants, and conditions stated herein, the Parties agree to amend the Agreement as follows. AMENDMENT NO. 1 Section 1. Section 1.4 under Scope of Services of the Agreement is hereby amended to read as follows: "1.4 Consultant will not be compensated for any work performed not specified in the Scope of Services unless City authorizes such work in advance and in writing. The City Manager may authorize extra work to fund unforeseen conditions at a cost not to exceed a cumulative amount of $15,000 over the term of the Agreement, any extension and any Amendment to the Agreement. Payment for additional work costing more than $15,000 requires prior City Council authorization. Section 2. Section 3.0 (Consultant's Compensation) of the Agreement is hereby amended to read as follows: "3.0 Consultant's Compensation City will pay Consultant in accordance with the fee schedule set forth in the Schedule and Budget of Exhibit A for all Services performed and expenses incurred in the performance of such Services, but in no event will City pay more than the total sum of thirty -two thousand dollars ($32,000) for the term of this Agreement and any extension set forth in Section 2.1. Any additional work authorized by City pursuant to Section 1.4 will be compensated in accordance with the rate schedule set forth in the Schedule and Budget of Exhibit A." Section 2. All other terms and provisions of the Agreement shall remain in full force and effect. S7296- 0001\2051644v1.doc 2 of 3 IN WITNESS WHEREOF, the Parties hereto, through their respective authorized representatives have executed and attested to this Amendment No. 1 as of the date and year first above written. CITY OF SEAL BEACH M Jill R. Ingram, City Manager ATTEST: IS Robin L. Roberts, City Clerk APPROVED AS TO FORM: an Craig A. Steele, City Attorney CONSULTANT: JWA URBAN CONSULTANTS, INC. A 0 Name: Jack L. Wong Title: President Name: May C. Wong Title: Secretary 3 of 3 57296- 0001\2051644v1.doc Budget Amendment SBSI Project March 9, 2017 Vikki, it is difficult to estimate the number of hours that will be required to complete the assessment because the availability, quantity, and quality of source data is not known at this time, although I am very optimistic of obtaining good data from the new property management firm. When we receive the answers from SBSI on the Follow -Up Questions, we will be in a better position to assess the completion of the report, but the key is still receiving the manual calculation worksheets in order to determine compliance. I have prepared the following, which assumes that we will have access to the contingency amount in the current contract. I am estimating hours for the new contract or amendment, which is for $7,000 with a contingency of $5,000. Current Contract Proposed New Contract Balance Contingency Additional Additional Budget Contingency $2,328.75 $10,000.00* $7,000.00* $5,000.00 ** * Using as part of on -going billing ** Not anticipated to use Contingency