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SR-6-H (22) .. 1.0 ~ - RM HSG TR:DR F.\MERL\SHARE\ADMINISTRATIVE\REPORTS\CHS AMEND J;'t~ 2 7 ~1"r-'3 Council Meeting' January 27, 1998 Santa MOnica, California To. Mayor and Members of the City Council From. City Staff Subject: RecommendatIOn for Approval of Change Order to EXIstIng Purchase Order With ComprehenSive HOUSing ServIces, Inc. (CHS) INTRODUCTION ThIs report requests authOrizatIon for the City Manager to execute a change order to an eXlstmg purchase order WIth ComprehenSIve Housmg ServIces, Inc (CHS) to contmue provIdIng prevaIlIng wage compliance mOnItorIng servIces to the Multifamily Earthquake RepaIr Loan (MERL) Program DISCUSSION The U S Department of HOUSIng and Urban Development (HUD) gUIdelines reqUIre the payment of prevaIling wages for constructIon of certaIn hOUSing projects funded WIth HUD assIstance. They reqUire the payment of DaVis-Bacon prevailIng wages for construction work funded by HUD Complrance With Federal DaVIs-Bacon prevailing wage and reporting reqUirements IS Imperative The CIty hIstorically has contracted With fIrms to provide this functIon because of the labor Intensive nature of prevaIling wage mOnItorIng. In May 1996 CHS was selected after a competitive process to mOnitor prevailIng wage complIance for the MERL Program CHS IS currently monrtonng four hOUSIng projects {PH J~N 2 7 19S5 r ~ -- The City currently has a purchase order for prevailing wage monltonng with CHS for $49,900 The requested purchase order Increase of $7,600, bnnglng the total to $57,500, IS necessary to complete the remaining prevaIling wage mOnitoring BUDGET/FINANCING IMPACT The additional request has no budgetary Impact and suffiCient funding IS available through the Community Development Block Grant (CDBG) Emergency Earthquake Recovery funds from HUD Funds Will be expended contingent on continuing funding authority from HUD The funds are currently avaIlable In account number 19-700-695- 00000-4483-00000 RECOMMENDATION Staff recommends that the CIty Council authorize the City Manager to execute a change order not to exceed $7,600 to the eXisting purchase order With CHS Inc for prevailing wage compliance momtorlng services to the MERL Program ThiS amendment Will be subject to continuing funding authOrity from HUD. Prepared by' Jeff Mathieu, Director, Resource Management Department Robert T MonCrief, Housing Manager Tina Rodriguez, MERL Program Coordmator 2