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SR-6E (50) Cy--ItILi1trL % C6yu/wd 1f 7/[5 (p-t JUN - 9 1998 RM HSG JM JMM F \MERL\SHARE\CONSULTANTS\WILLDAN ASSOCIATES\ STAFF REPORT TO CC FOR WILLDAN CONTRACT EXTENSION 98-99 Council Meeting June 9, 1998 TO Mayor and Members of the City Council FROM City Staff SUBJECT Authonzatlon for contract extension for support servIces from Wllldan AssocIates for the Multifamily Earthquake Repair Loan (MERL) Program INTRODUCTION This report requests authorrzatlon to extend an eXisting contract with Wllldan Associates for an additional year to provide support services to the MultIfamIly Earthquake Repair Loan (MERL) Program DISCUSSION On October 25, 1994, the City CouncIl approved the retention of Wrlldan Associates to supply profeSSional assistance In federal, state and local housmg programs and pohcles to ensure successful Implementation ofthe MERL Program On May 14,1996, February 25, 1997, and June 10, 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 1998 through the end of fiscal year 1998-99 (one year) SuffiCient funds to finance the remaIning amount of the contract through June 30, 1999 (estimated to be $226,000) are Included in the proposed Fiscal Year 1998-99 budget ~- E JUN - 9 1998 - ~ The support provided by Wllldan Associates has been crucial In processmg loan applications, prepanng template loan documents, performing loan underwriting and project feasibIlity analyses, completing federal and state environmental clearances, closmg loans and mOnitoring reconstruction work To date, completed project loans total $19,426,267 whIch Involve 425 umts of new or rehabilitated multifamily housmg, loans for projects under construction total $4,614,874 which Involve 80 units of new or rehabilitated multifamily housmg, and loans for pre-construction projects total $5,592,679 which Involve 82 units of new or rehabilitated multifamily housmg Staff believes that continued use of Wllldan Associates Will mmlmlze Interruption of program administration dunng 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 funding IS available to pay for the extended contract With Willdan Associates SuffiCient funding to fmance thiS contract extension has been Included In the Fiscal Year 1998-99 proposed budget at account number 19-700-695- 00000-4483-00000 The City has received authOrization from HUD to spend such funds through February 28, 2000 2 RECOMMENDATION It IS recommended that the City Council authorize a contract extension for Willdan Associates In an amount not to exceed $226,000 to provide support servIces to the Multifamily Earthquake Repair Loan Program through the end of fiscal year 1998-99 Prepared by Jeff Mathieu, Director, Resource Management Department Robert T Moncnef, Housing Manager Tina Rodriguez, Earthquake Recovery Administrator 3