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SR-6E (43) tvnfrA.t-f# 7/05' 6C (*'fU1S/ffn ) N ~ RM JM bm wllldan3 (wp6 1) JUN 1 0 1997 Council Meeting June 10, 1997 - TO Mayor and Members of the City Council FROM City Staff SUBJECT AuthorizatIon for contract extensIon for support servIces from WJlldan Associates for the Multifamily Earthquake Repair Loan (MERL) Program INTRODUCTION ThiS report requests an additional appropriation of funds and authorlzatron for the CIty Manager to execute a contract extension with WllIdan Associates to provide support services to the MultIfamily Earthquake Repair Loan (MERL) Program DISCUSSION On October 25. 1994. the City Council approved the retention of Wllldan AssocIates to supply temporary, professional assistance and experience In federal, state and local housing programs and policIes to ensure successful ImplementatIon of the MERL Program On May 14, 1996, and again on February 25, 1997 the City CounCil approved a contract extension and additional funding for continuation of those services The contract extension now proposed would proVide support from July,1 997 through the end of fiscal year 1997-98 (one year) at a cost not to exceed $570,715, subject to continuing funding authonty from the federal Department of Housing and Urban Development (HUD) 6'~ L :'!1 i1 ~1&D JUN 1 0 1997 The support provIded by Wllldan AssocIates has been crucIal In processing loan applications, preparing template loan documents, performing loan underwrltmg and project feasibility analyses, completing federal and state environmental clearances, closing loans and monitoring reconstruction work To date, closed loans total 521,020.262 and mvolve 439 units of new or rehabilitated multifamily housing Funding commitments totaling $9,296,238 which mvolve 174 housing umts are scheduled to close over the next few months Staff believes that contmued use of Wllldan Associates will mlmmlze interruption of program Implementation dUring the final phase of the Program The contract extension with Wllldan ASSOCiates will ensure that the MERL Program IS adequately staffed with qualified personnel untIl the end of the next fIscal year BUDGET/FINANCIAL IMPACT A suffiCient amount of HUD fundmg IS available to pay for the extended contract With Wllldan ASSOCiates However, at present the City IS only authOrized to spend such funds until February 28, 1998 Staff antiCipates requesting HUD authonty to spend the available funding for eligible MERL Program administrative costs until the end of Fiscal Year 1997-98 The contract With WllIdan ASSOCIates will specify that It wIll remain In effect only as long as sufficient federal fundmg IS available The funds currently available are budgeted In account number 19-700-695-00000-4483-00000 2 ------ --- - - --- RECOMMENDA TION It IS recommended that the City Council authonze a contract extension for Willdan Associates to provide support services to the Multifamily Earthquake Repair Loan Program through the end of fiscal year 1997-98 subject to continuing funding authonty from the federal Department of Housing and Urban Development (HUD) Prepared by Jeff Mathieu. Director. Resource Management Department Robert T Moncnef, Housmg Manager Tina Rodnguez, MERL Program Coordinator 3 -----