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c;cvar City Council Report
Santa Monica°
City Council Meeting: January , 2010
Agenda Item: ~- ~
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Professional Services Contract for Compliance Investigation
Recommended Action
Staff recommends that the City Council authorize the City Manager to execute a
professional services contract with Program Compliance Solutions (PCS), to provide
investigation services for the Housing Division.
Executive Summary
The Housing Division is required by the U.S. Department of Housing and Urban
Development (HUD) to investigate potential fraudulent activity of persons participating in
HUD-funded housing. programs. These programs include the Section 8 Housing Choice
Voucher, Family Self-Sufficiency, HOME, Shelter Plus Care and other housing subsidy
programs. HUD programs have strict regulatory policies regarding income and asset
eligibility and require third-party verifications. PCS is recommended to provide the
required services in an amount not to exceed $218,400 ($72,800 annually) for athree-
yearterm beginning January 2010.
Background
To select a contractor to provide compliance investigation services for the Housing
Division, a request for qualifications for professional services was posted on the City of
Santa Monica website. Staff reviewed three submittals and rated each on qualifications,
project understanding, experience, price and references and determined that Program
Compliance Solutions is the best bidder and most qualified to support the services of
the Housing Division.
On July 14, 2009 the City Council considered a staff recommendation regarding a three-
year contract with PCS; however, the Council requested that staff review opportunities
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to assure quality customer service during the investigatory process and come back with
recommendations.
Discussion
In response to Council's request, staff has closely monitored the work of the
investigator, reviewed customer complaints and consulted with staff from the Legal Aid
Foundation of Los Angeles for additional perspectives. Consequently, three additional
steps have been added to the investigative process and to the Administrative Plan to
better inform program participants of the process and their rights. Participants will now
be advised of the process and their rights in the following manner: 1) as part of the
annual recertification process; 2) notified by mail prior to the investigatory process; and
3) immediately prior to commencement of the investigatory interview. Additionally, staff
has clarified that the investigatory firm is not involved in decisions and consequences
regarding the outcome of investigations and only conducts such investigations based on
staff referrals when evidence warrants. Staff has also worked with the investigatory firm
on best practices related to the target population. As a result of these actions, staff
recommends PCS for the proposed contract.
Financial Impacts & Budget Actions
Funds for the recommended annual contract in an amount not to exceed $72,800 are
available in 01264.555060 subledger 74138. Funds associated with this contract for two
additional one-year terms are subject to the annual budget approval process.
Prepared by: Barbara Collins, Housing Manager
Forwarded to
Andy Agle, Director /' ~ vP ont Ewell
Housing and Econ mic Deve pment C Manager
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Council: