SR-407-000-03 (7)
F:RMDShare\STAFFREPORTS2004\PREVAILINGWAGE.DOC
Council Meeting: October 12, 2004 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Professional Services Agreement with Comprehensive Housing Services,
Inc. for Prevailing Wage Monitoring and Section 3 Compliance of
Affordable Housing Developments
INTRODUCTION
This report recommends that the City Council authorize the City Manager to negotiate
and execute a professional service agreement, for one year with options to renew for
two additional years, with Comprehensive Housing Services, Inc. (CHS) for
Federal/State prevailing wage monitoring and Section 3 compliance for the Housing and
Redevelopment Division’s various affordable housing developments.
BACKGROUND
The California Labor Code, Section 1770, et. seq., and the Davis-Bacon Act and related
acts require that contractors assisted with State and Federal funding pay their workers
based on prevailing wage rates established and issued by the California Department of
Industrial Relations, Division of Labor Statistic, or the U.S. Department of Labor, Wage
and Hour Division. The City of Santa Monica Municipal Code Section 7.28.030,
Applicability of Prevailing Wage Requirements, states that housing developments
financed in whole or in part by federal, state, or local funds shall comply with the
applicable Federal or State prevailing wage requirements. The purpose of obtaining a
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labor compliance firm is to administer the prevailing wage monitoring and Section 3
labor compliance provisions for State and Federally funded developments.
Section 3 is a provision of the Housing and Urban Development Act of 1968, which
requires that programs of direct financial assistance administered by the U.S.
Department of Housing and Urban Development (HUD) provide, to the greatest extent
feasible, opportunities for job training and employment to lower income residents in
connection with affordable housing developments in their neighborhood. This provision
applies only to housing developments funded with HOME Investment Partnerships
(HOME) or Community Development Block Grant (CDBG) funds allocated to the
construction phase of the developments.
DISCUSSION
Four affordable housing developments are scheduled to begin construction in Santa
Monica over the next six months, while others will not begin construction for over a year.
The anticipated developments will vary in size from five units to 44 units and the total
construction costs are estimated to range from $16 to $20 million through fiscal year
2006/2007.
In July 2004, staff issued a Request for Proposals (RFP) for labor consulting services.
Four firms submitted responses to the RFP and a selection panel consisting of City staff
from the Housing and Redevelopment Division of the Resource Management
Department reviewed and evaluated the proposals. Of the four bids received one was
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higher, one was comparable and one was lower than that of the firm being
recommended. The selection committee evaluated the bids based on project
understanding, experience, references and price. The committee determined that CHS
was the most qualified based on the rating criteria and on its experience providing labor-
consulting services in Santa Monica and Southern California.
BUDGET/FINANCIAL IMPACT
The cost for the annual scope of work will not exceed $100,000. Funds are available in
Account Number 01264.555060. The contract extensions for FY 05/06 and 06/07 at
$100,000 per year are contingent upon City Council approval of the budget for each
fiscal year.
RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to negotiate and
execute an agreement with Comprehensive Housing Services, Inc. for an amount not to
exceed $100,000 per year for prevailing wage monitoring and Section 3 compliance for
affordable housing developments for one year with options to renew for two additional
years.
Prepared by: Jeff Mathieu, Director, Resource Management Department
Bob Moncrief, Housing and Redevelopment Manager
Ron Barefield, Housing Administrator
Donna Rickman, Senior Administrative Analyst
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