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APR 2 7 199
RM HSG JM RM JMM F.\MERL\SHARE\STAFF REPORTS\WILLDAN CONTRACT 99-
2000
Council Meetmg Apnl 27, 1999 Santa MOnica, California
TO Mayor and City Council
FROM City Staff
SUBJECT Authonzatlon for the City Manager to execute an extension of the current
contract with Wllldan Associates for Admmlstratlve Support Services for
the Multifamily Earthquake Repair Loan (MERL) Program
INTRODUCTION
This report requests an appropnation of funds and authonzatlon for the City Manager to
execute an extension of the current contract with Willdan Associates to proVide
administrative support services to the Multifamily Earthquake Repair Loan (MERL)
Prog ram
BACKGROUND
In response to the acute damage to the multifamily housing stock caused by the
Northndge Earthquake, the City of Santa Monica established the Multifamily
Earthquake Repair Loan (MERL) Program The purpose of the MERL Program IS to
proVide funds to fill the gap between owner need and other resources
DISCUSSION
On March 11,1999, a Request for Qualifications and Quotes was sent out to SIX
consultants for administrative services for the MERL Program Two responses were
received, one from Communrty Housing Services (CHS) and another from Wllldan
wI.
APR 2 7 1999
Associates. Of the two proposals received, Wllldan ASSOCiates was consIdered the
best qualified with staff capacity to provide the specified work and extensive experience
processmg loans and managmg construction of hOUSing, besides haVing the lowest cost
proposal Willdan's monthly service fee will be approximately $21,844 00, compared to
CHS at $25,800 00 Therefore, Willdan ASSOCiates was considered more competitive In
pnce, at $47,472 less per year than CHS The contract amount will not exceed
$340,000 to cover expenses for fifteen months, Apnl1999 to the end of June 2000
To date 501 Units of new or rehabilitated multifamily hOUSing have been completed for
an aggregated loan amount of $21,331 ,627 An addItional 74 units of new or
rehabilitated multifamily hOUSing are under construction ($8,005,874 In loans) and 12
units of new or rehabilitated multifamily housmg are In the preconstructlon stage
($266,679 In loans) With the execution of the contract extenSion, the MERL Program
will benefit from Wllldan's contrnued support In these areas as well as additional
support In establishing monrtorlng procedures and program close-out actIVIties Staff
believes that the use of Wllldan ASSOCiates Will minimiZe Interruption of program
administration dUring the final phase of the Program
BUDGET/FINANCIAL IMPACT
Sufficient HUD funding IS avaIlable to pay for the contract extensIon with Wllldan
ASSOCiates through Fiscal Year 1998-1999 and has been Included In the Fiscal Year
1999-2000 proposed budget under account number 19-700-695-00000-4483-00000
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RECOMMENDATION
It IS recommended that the City Council authorize the City Manager to execute an
extensIon of the current contract wIth Willdan Associates In an amount not to exceed
$340,000 to provide support services to the Multifamily Earthquake Repair Loan
Program through the end of June 2000, subject to continuing funding authority from the
Federal Department of HOUSing and Urban Development (HUD)
Prepared by Jeff Mathieu, Director, Resource Management Department
Robert T MonCrief, HOUSing and Redevelopment Manager
Jesus M Morales, MERL Program CoordInator
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