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Santa Monica
City Council Meeting: June 14, 2011
Agenda Item: 3°'V
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Prevailing Wage Monitoring Contract for Affordable Housing Construction
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a third modification to Professional Services Agreement #9052 in the amount of
$120,000 with Comprehensive Housing Services, Inc., (CHS), a California-based
company, to provide federal/state prevailing wage monitoring and Section 3 compliance
for City-funded affordable housing developments from July 1, 2011 through June 30,
2012. This modification will result in a new, three year and one month total contract
with CHS for prevailing wage monitoring in the amount of $295,000.
Executive Summary
To ensure City compliance with local, state and federal prevailing wage regulations, the
City relies on experts to monitor construction wages for affordable housing and other
construction projects. Staff recommends that the City amend and increase the existing
contract with Comprehensive Housing Services to provide these services. This action
will increase the current contract from $175,000 to $295,000.
Background
In April 2009, Council approved the existing prevailing wage contract with
Comprehensive Housing Services. These contract funds for monitoring construction of
affordable housing are almost exhausted and staff anticipates fully expending the
existing funds within the next month. Additional funds in the amount of $120,000 will
allow the continued prevailing wage monitoring for approximately another year..
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Discussion
During FY 2011-12, nine affordable housing developments are expected to be under
construction in Santa Monica. These developments are funded with various local, state
and federal monies that require the payment of prevailing wages and, to the greatest
extent feasible, provide opportunities for job training and employment to lower income
and minority residents. The applicable regulations are: City of Santa Monica Municipal
Code Section 7.28.030; the California Labor Code, Section 1770, et. seq., the federal
Davis-Bacon Act and Section 3 of the Housing and Urban Development Act of 1968.
Potential ramifications for non-compliance of prevailing wage monitoring and Section 3
compliance include fines, requiring the City to fund payroll underpayment, and
withdrawal of project funding. To mitigate these risks on affordable housing projects,
the City contracts with firms who specialize in prevailing wage monitoring and Section 3
compliance.
Contractor Selection
In March 2011, staff issued a Request for Proposals (RFP) for prevailing wage and
Section 3 monitoring services. Five responses were received. Staff reviewed and
evaluated the proposals based on criteria including firm staffing, experience,
qualifications, technical skills, fee schedule and references. The HED staff committee
determined that CHS was the most qualified applicant. CHS bid at the lowest rate (as
did one other proposal), demonstrated expertise in the field and provided excellent
references. Since CHS already has an existing contract with the City, this report
requests that City Council authorize the City Manager to amend and increase the
existing professional service agreement with CHS to a total of $295,000 for the purpose
of prevailing wage and Section 3 monitoring.
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Financial Impacts & Budget Actions
The additional contract amount to be awarded to CHS is $120,000 and funds are
available for this purpose in 01264.555060 sub ledger 76027W.
Prepared by: Lisa Luboff, Senior Development Analyst
Approved:
Andy Agle, C
Housing and
Development
Forwarded to Council:
_ ~\ - ~,
RodRod Gould
City Manager
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Reference Amended
Contract No. 9052 (CCS)