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SR-407-000-03 (9) Council Meeting: May 25, 2005 Santa Monica, CA TO: Mayor and City Council FROM: City Staff SUBJECT: Contract amendment with Hamilton, Rabinovitz and Alschuler, Inc. for Consultant Services Involving Strategies to Increase Affordable Housing Production INTRODUCTION This staff report recommends that the existing contract with Hamilton, Rabinovitz and Alschuler, Inc. (HR&A) be amended to cover additional costs associated with analysis involving strategies to increase affordable housing production. The proposed amendment is for $35,000 resulting in a total contract amount not to exceed $90,000. It is also recommended that the term of the contract be extended to December 31, 2005. BACKGROUND The City Council directed staff to evaluate the Affordable Housing Production Program (AHPP) and/or other City programs and policies, and suggest ways to update these provisions to facilitate meeting the Proposition R affordable housing goals (Article VI, Section 630 of City Charter). The City of Santa Monica entered into a contract with HR&A to assist staff in evaluating affordable housing production and considering updates to the City policies and programs associated with such production. Council discussed the analysis at its May 10 and May 17, 2005 meetings. 1 DISCUSSION The existing contract amount is $55,000 and terminates on June 30, 2005. The scope of work for the existing contract involves the evaluation of affordable housing production policies and research associated with updating the affordable housing fee. The consultant has provided additional research, technical analysis, preparation of reports, meetings with staff and attendance at public hearings in conjunction with strategies to increase affordable housing production. The proposed contract amendment will provide for the preparation of implementing documents, analysis, consultation with staff, and meetings, pursuant to Council direction. The proposed contract will increase by $35,000 resulting in a total contract amount not to exceed $90,000. Additionally, it is recommended that the contract term be extended to December 31, 2005 to ensure sufficient time for the consultant services to be completed. BUDGET/FINANCIAL IMPACT The funds for the contract amendment of $35,000 are included in the 2004/05 budget in account #01264.555060. RECOMMENDATION It is recommended that the City Council authorize the City Manager to negotiate and execute a contract amendment with Hamilton, Rabinovitz and Alschuler, Inc. for additional consultant services associated with strategies to increase affordable housing production. The contract amendment will increase the current contract by $35,000 to a 2 total contract amount not to exceed $90,000 and will extend the contract term until December 31, 2005. Prepared by: Jeff Mathieu, Director, Resource Management Department Ron Barefield, Acting Housing & Redevelopment Manager Jim Kemper, Acting Housing Administrator rd Reference 3 Amendment to Contract No. 8476 (CCS). 3