HomeMy WebLinkAboutBill Bond and Associates, Inc. - 1980-01-073i, Y ems,
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EMPLOYER :"` PiESJ �NT
Bill Bomd G Associates, Inc.
4432 Mzelbraook
Long Beach, CA 90808
S. F FUnM 262A (REV. 6-79J
COPY FOR 3NSUPEWS FILE
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Fresno, C-lif.,r,�Ia 93755
Bill Bond a-nd Associs.tes, Inc.
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Long Beach, California 90308
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COPY FOR JNSURCD*S FIL5
)N TUR
Superior Cautt
OF 'R46
STATE OF CAI.IFORNIA
In and for the County of Orange
CITY OF FUNTIN'9TON BEACH, PLANNING
State of Chliforn,s J
Courts of Orange )"
Rita J. Richter
l net I am and at all times hererr, mentioned was a citizen of
the Uniterl States. over the age of twenty-one yearn, and that I
hm not s party tv nor interested in the above entitled matter;
.hat I am the principal clerk of the printer of the
Huntington Beacn Independent Review
a rr_�cexprper of general circulation, published in the C;ty, of
Huntington Beac;l
County of Orange and which newspaper is published for the
dinemenstion of local news and intelligence of it general charac-
tint, and which newspaper at all times herein mentionedhad
and still has a bon,-) ride subscriptiar, list of paying subscribers,
and which newspaper has been established, printxqd and pub-
ltal d at regular r,tervats in the said County of Orange for a
pe 3,d exceeding one year; that the eetice, of which the
annexed is a printed copy, has been published .in the regular
and entire issue of said newspapet, and not to any supplement
thereof, on the following dates, to wit:
OCtober 14, 1979
1 certify for declare) under penalty of perjury that the forego-
ing is trve anti cor met.
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PUNTil':^TON BEACH
PLANNING DEPT.
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P, O. Box 190
Huntington Ocach, CA 92648
Request for Proposals
Urban Projects, Inc.
11777 San Vncente , Suite 601
Los Angeles, California 90049
Attn,: Ms. Aron Clemens
Attn: Ms. Mel Love
Harold Davidson & Associates, Inc.
1900 Avenue of the Stars
Las Angeles, California 90067
Attn: Mr. Harold Davidson
Bill. Bond and Associates, Inc.
4432 Hazelbrook Avenue
Long Beach,, California 90808
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CERTIFICATE OF WORKERS' COMPENSATION INSURANCE
This is it) certify that we have issued a valid Workers' Compensation insurance policy in a form approved by the California
Insurance Comm-ssioner to the employer named below for the policy period indicated
This policy is not pub;ect to cancellation by the Fund except upon ten days' advance written notice to the employer.
Vve will also give you rEN days' advance notice should this policy be cancelled prior to its normal expiration.
This certifcate of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the
policies listed herein. Notwithstanding any requirement, term, or condition of any contract or other document with
respect to which this certificate of insurance may be issued or may pertain, the insurance afforded by the policies
descnivd herein is iubiect tc all the terms, exclusions and conditions of such policies.
r navi nvFF r—' PRESIt7�NT
REQUEST FOR CITY COUNCIL TION
Date September 11 1981
Submitted to: Honorable Mayor and City Council
Submitted by: Charles W. Thompson, City Administrato 4? , A 19
Prepared by: Department of Development Services/HCD Divisi Y�0 �.
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Subject: r:RMINATION OF CONTRACT WITH BILL BOND AND A SOCIA ND
AUTHORIZATION TO HIRE REHABILITATION SPECIALI
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Backup Material Attached: ( J Yes (X ) No i55�
Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions:�
STAsEMEhT OF ISSUE:
The ;slue is the need for additional funds to continue the administration of
the Housing Loan Program and future staffing responsibilities.
RECOMMENDATION:
Give Bill Bond and Associates the 30-day notice of termination as required in
the City's contract with this firm and appropriate a maximum of $4,000 to cover
administrative costs associated with the program for the remaining 30 days.
It is further recommended that the City proceed immediately to hire a qualified
person to continue the operation of this program by readvertising the position
of Housing and Community Development Assistant at a salary range comparable to
Rehabilitation Specialist positions in other cities, and seek candidates with
rehabilitation experience.
ANALYSIS:
The Rehabilitation Loan Program was established in February, 1978 when the City
entered into a contract with Urban Projects, Inc. for its administration. UPI
administered the program until November, 1979, and was succeeded by Bill Bond
and Associates, Inc. in January, 1980.
During the nearly four years of the Rehabilitation Loan Program's existence,
only ail housing units have received rehabilitation assistance. While the total
value of improvements made during this time period exceeds $600,000, of this
amount the City has expended nearly $300,000 in HCD funds. In addition, the
City has expended nearly $130,000 for administration of the program which amounts
to over $2,700 per loan which is very high.
In addition to reducing the administrative costs per case, there is a need to
increase participation in the program and to focus our efforts in neighborhoods
having the greatest need. This can be accomplished by hiring a full-time person
with rehabilitation experience who can work with the property owners and residents
within the target areas to promote support for the program and on -going partici-
pation.
P90 3/a 1
M
Y
P&ge Two
While this approach iiil rEquire that a building inspector be assigned the
responsibility of ?rk.viding assistance to the program on an "as needed"basis,
it is pelt that we will not oniy be able to increase participation, but also
reduce administrative costs by nearly $40,000 per year by eliminating the
need to continue the services provided by Bill Bond and Associates, Inc.
FUNDING SOURCE:
U.S. Department of Housing and Urban Development; Housing and Community Develop-
ment Block Grant program.
CWT:TT:jb
0
ADDENDUM TO SERVICES ACRi1EMENT
THIS ADDENDUM AGREEMENT to tnat certain Agreement
by and between the CITY OF HUNTINGTON BEACH, a municipal cor-
poration, therein called CITY, and BILL BOI'D & ASSOCIATES, INC.,
a California corporation, '-herein called COMPANY, s hereby
modified and amended, effective on the date shown below, as
follows:
1. Section 3 is amended to read as follows:
"SECTION 3. CITY shall pay for the administra-
tion of its Neighborhr.od Preservation/'Rehabilitation Program at
the hourly rate of $13.81 for Loan Counselors, and $14.70 per hour
for Rehabilitation Inspector Total charges for such services
shall not exceed $ for the term of this agreement. Charges
for performing other cormunity development services which are
not a part of this agreement, as may be re•;uested by CITY from
time to time, shall be negotiated."
2. Section 4 is amended to read as follows:
"SECTION 11. COMPANY shall furnish all labor nec-
essary to perform the services to be rendered under this Agre•::-
ment. CITY shall provide office facilities, includi- S desks,
files and related office equipment, telephone, supplies, postage
and photocopy services. GIT Y shall pay fees for required title
searches, termite inspections, FHA 'as is' appraisals, and credit
leC,ks"
3. Section 9 is amended to read as follows:
"SECTION 9. The hourly charges established pur
scant to Section 3 shall be adjusted in accordance with changes
in t�:e cost -of -living index, effective July 1 of each year during
`':e of this Agreement."
ra. Section 10 is amended to read as follows
"SECTION 1J. Terminption of Agreement. This Agree-
ani all services to be rendered thereunder may be terminated
.ny time by thirty (30) days written notice from either party,
or without cause, at the addresses prescribed in Section 8.
-n sacr. e%,ent, all finished and unfii-fished documents, project
is anA reports shall become the property of CITY, and COMPANY
s�,a ieliver said property to CITY or to any party CITY may des
ate .at .OMPANY'S expense. In the event of such termination,
(Rest of page not lased)
a
'''.PA":Y sha_1 be paid for satisfactory work which has been per -
sinless such termination is made for cause."
..FFECPIVE this /-0' day of u Qr 1980.
CITY OF HUNTINGTON BEACH,
a municipal corporation,
.ity Cierk,
:: _-:4E_ A D APPROVED:
ty r,Jmiaistrator
Mayor
APPROVED AS TO FORM:
City Attorney
INITIATED AND APPROVED:
D rectopVof Development
Services
BILL BOND & ASSOCIATES, INC.,
a California. corporation,
e. CITY OF OUNTINGTON BEACH
INTER-DEPA3TMENT COMMUNICATION
rfl •tIN(. ir.l1 HFU Ft
To im.iniotrator From City Attorney
Sunject __ . ;nd Neighborhood Date June 27, 1980
t. c , it.at is 1 PrF-gram
i .c .:,.a..l *o Agreement
addendum to agreement is approved as to form. I
r a*_tentien to the maximum contract sum of $99,000
f service. The existing contract is $15,000 for
_ce.
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REQUEST FOR CITY COUNCIL ACTION f- V
Submitted by James W. Palin, Director ,Department Development Services
Date Prepared June 27 , 19 80 Backup Material Attached o Yes. LJ No
Subject SUPPLEMENTAL AGREEMENT; BILL BOND AND ASSOCIATES, INC.
HCD NEIGHBORHOOD PRESERVATION PROGRAM
City Administrator's Comments /
C3
Approve as recommended.1'�
�CITY CLERK
Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions:
q
STATEMFNT OF ISSUE:
The Pill Bond and Associates, Inc. firm has been administering the
Housing and Community Development Neighbor'toad Preservation Program
for six months and the contract with the -i.rm is about to expire.
Having performed satisfactorily, the attached supplemental agree-
ment to extend the firm's services has been prepared.
KE:COM,1ENDAT ION:
Approve and authorize the Clerk to execute the attached supplemental
agreement with Bill Bond and Associates, Inc. for the administration
of the Neighborhood Preservation Program for eighteen months for
an amount not to exceed39;
ANALYSIS:
The City has been operating a Neighborhood Preservation Program
in the downtown area since Spring 1978. Performance under the
program lagged at the outset and tr,tis is not unusual for such pro -
crams. However, in 1979, it was determined that a change in the
administration of the progr%sm was necessary.
At that time the Bill Bone. and associates, Inc. firm was selected
th,.ough a request for proposal process. Since the firm has
assumed the administration of the program, performance has in-
creased dramatically. In fact, the number of loans processed has
doubled since the Bond firm has become involved (see attached
status report).
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P1a 3178
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Paqe 2
The Bill Bond firm has also applied successfully on behalf of
the City for participation in the federal 31.2 loans program.
This program provides federal home improvement: loans at three
percent -interest to lower income households w.thin City -selected
target areas. This has garnered additional finding resources
and additional program flexibility without increased administra-
tion costs. While the program is active only in the downtown
ar;:a at this time, staff has identified additional neighborhoods
appropriate for the conduct of the 312 program and will report
to the City Council at a future date.
It is iiportant to note that the attached contract secures the
services of Bill Bond and Associates on an hourly basis so the
City pays for only these services that are procurred. This also
Offers the fleXib3at__ consultant
7 �,y U iiaCrease or reduce the
staff devoted to the program to match the work load. The "not
to exceed" amount is predicated on expanding the program geo-
graphically with a concomitant increase in required staff.
ALTERNATIVES:
T City 'a hire additional staff to operate the program or
The Ci �Y coin.. hire p
the funds previously committed to the Neighborhood Preservation
Program could be reprogrammed to other activities.
FUNDING SOURCE:
J.S. Departn'�tent of Housing and Urban Development; Housing and
Community Development Program.
Respectfully submitted,
24 iin, Director
D^velopment Services
JWP.SVK:jb
Status Repor* 0 June 1980
,.1
To: STElrE KOHLER
From: Bill Bond b Assoc.
Program
Current
To Date
Month
Preliminary Screening
105
5
Interview and Data Collection
32
4
Property Inspection and Cost Estimate
2.8
4
Qualification of Owner
24
5
Bid Procedures
23
6
Loan Submission
21
3
Award of Contract/Date Certain
16
2
Pre -Construction Conference
14
2
Progress Inspections
NA
33
Rehab Certification/Notice of Completion
3
2
Contract Closure
2
1
Number of Deferred Loans
r 8*(4)
0
Dollar Amount Deferred Loans
104 890.00
0
Number of 4% Loans
1*_(0)
_ 0_�
Dollar Amount 4% Loans
22026.44
0
Number of 6% Loans
1* 1)
1
Dollar Amount of 6% Loans
15,000_.00
15,000.00
Number of 7 3/4% Loans
9*(8)
1
Dollar Amount of 7 3/4% Loans
129.276.44
15,0 00.00
*Total program - figures in parenthesis since January 1980
_( s Rehabbed: Own
2
2
Rent
3
_ 0
CDBG Costs:. Fees
294-00
224.00
Subsidies ;
45,845.84
12,`1.9401
Consultant:
15,000.00
988.55
CITY OF HUNTINGTON BEACH
:.� INTER -DEPARTMENT COMMUNIC TI 19
M, INC.TON BEACH
_. _ uZTX CLEA$
To Floyd G. Belsito From James W. Palin, Director
City Administrator Development Services
Subject NEIGHBORHOOD PRESERVATION Date February 7, 1980
STATUS REPORT
At the City Council meeting of January 7, 1980, the Council dirocted
staff to investigate expansion strategies for the Neighborhood Preser-
vation/Rehabilitation Loans Program. The following provides a summary
of current activity in the Neighborhood Preservation Program;
(1) Current Status: Attached for the Council's information is a copy
of the .--tatus Report Summary provided the City by Bill Bond and Associ-
ates for the month of January 1980. In the short time that the program
has been reactivated, client activity has increased substantially. The
following provides a summary of current activity:
(1) Completed cases (prior to Bond contract): 5
(2) Approved cases: soon to begin c.)nstruction
(since January 7, 1980): 7
(3) Initial stages: in processing (since January
7, 1980) : 9 8
(4) Inquiries (since January 7, 1980): 18
(2) Expansion Strategies: The followins expansion strategies are
currently being investigated by staff, and will be presented to the
HCD Citizens Advisory Board for discussion in accordance with federal
Citizen Participation requirements.
(1) Expand target neighborhoods (see attached preliminary study).
(2) Changa program requirements; institute paint-up/fix-up
grants.
(3) Alternative programs: investigate commercial rehabilitation
program, and alternate funding sources.
(4) Mobile homes; investigate inclusion of mobile home rehabili-
tation program (see attached summary of proposed County
Mobile Home Rehabilitation Program).
(3) 312 Loans Program: The City has made application to the Federal
Department of Housing and Urban Development for inclusion in the 312
Rehabilitation Loans Program. Under this program, the Federal Govern-
ment provides direct financial assistance to approved applicants at
3% interest. There is no cost to the City under this program, and the
current Neighborhood Preservation staff would administer the program
at the local level.
(A) Residential loans
1. Loans made only in pre -qualified target area (Downtown).
2. Priority to low/moderate income households.
3. Maximum loan amount (single family: $27,000/3% interest)
(multiple: $27,000 per unit/3% interest)
4. Comments
HUD has indicated preliminary funding availability
Allows clients who need substantial rehabilitation to
finance larger home improvement loans than allowed
under current program.
(E) Commercial loans
1. L ans made only in pre -approved target area (Downto4n).
2. Maximum loan amount: $100,000 per loan/3% interest.
3. Comments
Program subject to availability of funding.
Thank you for bringing this matter to the attention of the City Council.
espectfully submitted,
l
amen W. Palin, Director
Development Services
PWT:JWP:jb
Attachments:
1. Neighborhood Preservation Status Report (January 1980).
2. Preliminary Target Area Expansion Surrey.
3. Summary of Proposed Mobile Home Rehabilitation Program.
L`812`
CITY OF HUNTINGTON BEACH
N'ZA` INTER -DEPARTMENT COMMUNICATION
91
II
1
To Floyd G. Belsito From p e V ler� Senior
City Administrator Commu it velopment,
Specia is
S . h1ect Date
NEIGHBORHOOD PRESERVATION PROGRAM January 3, 1980
MEETING WITH MAYOR MACALLT_STER AND
COUNCILWOMAN FINLEY; DEC. 28, 1979
At the subject meeting, I was joined by Mr. Bill Bond of Bond &
Associates, Inc. As you know, Mr. Bond's firm has been recommended
to our.cil as adminiLtrators of the Neighborhood Preservation. Program.
At- the meeting, we discussed the current status of the Program and
,..he need for a stronger marketing effort and expansion of the Program
to additional areas. Mr. Bond stated that he believed these to be
the major constraints of the current program.
Also discussed were the relatively high administrative costs for the
initial start-up of the Program. It was explained that past costs
were due to the amount of time spent on the design of the program
anc on ad3ustments to this design to encourage participation. It was
also pointed out that the proposed contract represents a more economical
administration ($2,500/mo. vs. $4,000/mo, previously) of the Program.
Lastly, in response to a question regarding a reha: 'itation program
for commercial structures, it was explained that , . current Program
is available for residential structures only, but. _,7at it could be
.xpanded to include commercial structures. Mr. Bond's firm is also
familiar with the Federal 312 Loan grogram, agreed that when under
contract, to assist the City in pursuing the Program, and endorsed
the use or zt in conjunction with the existing Program.
This meeting provided an opportunity to explain in some detail the
unique problems facing any rehabilitation effort. Questions of the
Councilmembers were addressed with the apparent conclusion that the
Neighborhood Preservation Program should be continued for an additional
sir months and that the effectiveness of the program should be closely
mo...tored during this period.
SVR:g^
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SERVICES AGREEMENT
.-- AGREEMENT, made and entered into this�day
194 by and between the CITY OF HUNTINGTON
?= ;i-:-inicipal corporation, hereinafter called "CITY," and
ASSOCIATES, INC., a California corporation, herein-
"C;�MPANY,"
RE CIT AT
1. CITY 'esires to contract with COMPANY for the per -
the hereinafter described community development ser-
e:: vi its boundaries; and
2. ,r)MPANY is agreeable to render such services within
,,s :tr,9 conditions hereinafter set forth,
11- , THEREFORE.. the parties hereto agree as follows:
FC710r1 1. COMPANY agrees to poovide community de-
pr.;en: sereices within the corporate limits of CITY to the
x* n 'an! in the manner hereinaftet• set forth.
"ACTION 2. The basic services which COMPANY agrees to
. _.vi :f7�, an,9 CITY agrees to accept, are the total services required:
r ".ne a lmInistra*.ion of CITY'S Neighborhood Preservation/Re-
-_ab.lita*ion Loans Program as further delineated in Exhibit A,
,ttache:9 hereto and incorporated herein by this reference.
COMPANY agrees, at the direction of the
ity A"iministrator or his assignee, to perform marketing and
public information services, conduct research, develop plans, and
prepare necessary applications to Federal., State and other
sources for funds to implement community development goals. In
performing such functions, COMPANY agrees to comply with all ap-
plicable laws, regulations, requirements, and policies of the
Federal, State and local governments.
SECTION 3. CITY shall pay for the administration of its
tleighborhood Preservation/Rehabilitation Program at the hourly
rake of $13.81 for loan counselors, and $14.70 per hour for re-
habilitation inspectors. Total charges for such services shall
not exceed $15,000 for the term of this agreement. Charges for
performing other community development services, as may be re-
quested by CITY from time to time, shall be negotiated.
SECTION 4. For the purpose of performing said functions,
COMPANY shall furnish all labor necessary to perform the services
to o, rendered hereunder. CITY shall provide office facilities,
including desks, files and related office equipment, telephone,
supplies, postage and photocopy services. CITY shall pay direct
all fees for required title searches, termite inspections, FHA
"as is" appraisals, credit checks, and other such out -,of -pocket
expenses.
SECTION 5. Employees of COMPANY shall not be employees
of CITY. CITY shall not be called upon to assume any liability for
direct payment of any salaries, wages, or other compensation to any
COMPANY personnel performing services hereunder for CITY, or any
liability other than provided for in this agreement. CITY shall
not �e liable for compensation or indemnity to COMPANY employeesk
SECTION 6. Case files, including all documents, forms,
correspondence and other such case -related materials, prepared or
obtained by COMPANY as a result of implementing CITY'S housing re-
nabi:.itation program, shall be the exclusive property of CITY.
SECTION 7. COMPANY shall render to CITY at the close
each calendar month an itemized invoice which covers all ser-
vices performed during said month, and CITY shall pay COMPANY
within fifteen (11;) working days of date of receipt of said invoice..
SECTION 8. All notices are required to be given in
writing and shall be addressed respectively to CITY in care of
t':e City Administratur, Post Office Box 190, Huntington Beach,
,,3lifornia 92�48, or to COh1PA!4Y in care of Mr. Bill Bond, 4432
�zaze'lbrook Avenue, Long Beach, California t0808.
SECTION 9. The changes established pursuant to
Section 3 shall be adjusted in accordance with changes in the cost
�.f living index, effective July 1 of each year during the term of
.his agreement.
SECTION 10. Termination of Agreement. This agreement
in9 all services to be rendered thereunder may be terminated at any
tlme by thirty (30) days written notice from either party, with or
withoit cause, at the addresses prescribed in Section 8. In such
event, all finished and unfinished documents, project data and
reports shall, at the option of CITY, become its property and shall
re delivered to it or to any party it may designate at COMPANY'S
expense, if any is incurred. In the event of such termination,
3.
Ask
COMPANY shall be paid for all satisfactory work, unless such
termination is made for cause, in which event compensation, if
any, shall be adjusted in light of the particular facts and
circumstances involved in such termination.
SECTION 11. The term of this agreement shall be six
(6) months commencing from the date of its execution by both
parties.
SECTION 12. Discrimination. COMPANY agree3 that in
the performance of the terms of this agreement, it will not en-
gage in, or permit its agents to engage in, discrimination in
employment of persons because of race, religious creed, color,
national origin, ancestry, physical handicap, medical condition,
marital status, or sex of such persons, except as provided in
section 1420 of the California Labor Code. Violation of this
provision may result in he imposition of penalties referred to
in Division 2, Part ', Chapter 1 of the California Labor Code.
SECTION 13. Indemnification, Defense, Hold Harmless.
COMPANY hereby agrees to protect, defend, indemnify and Lave
harmless CITY, its officers, agents and employees, against loss,
damage or expense by reason of any suits, claims, demands, judg-
ments and causes of action caused by COMPANY, its employees,
agents, subcontractors, or by any third party arising out of or
in consequence of COMPANY" 3 performance of th3 s agreement, except
where such loss, damage or expense is caused solely by the wrong-
ful acts of CITY, its agents, officers or employees in connection
with the general supervision or direction of the works to be per-
formed under this agreement.
4
SECTION 14. Workers' Compentiation. COMPANY shall
ly wit:i all of the provisions of the Workers' Compensation
s,.rance an•j Safety Acts of the State of California, the ap-
:^a'le Provisions of Division 4 and 5 of the California. Labor
c 3ar: i al' amendments thereto; and all similar state or federal
or laws applicable; and shall indemnify, defend and hold
ity from and against all claims, demands, payments,
actions, proceedings and Judgments of every nature and
r ion, including attorney's fees and costs, presented,
re overed against CITY, for or on account of any li-
1n,ic!r any of said acts which may be incurred by reason
worst to be performed by COMPANY under this agreement.
SECTION 15. Insurance. COMPANY agrees to furnish to
ma+:,tain in force until the termination of this agree-
~:<::~ �-enerai liability insurance policy in which CITY is named
'Ti-in aJ i,tional insured. The policy shall insure CITY, its
an j employees, while acting within the scope of their
ar-a.nst a:l claims arising out of or in connection with
a,-rf=em-rit. The policy shall provide for not less than the
`'o:.lowir„, amounts: Combined single limit bodily injury and/or
�rcprty damage of $300,000 per occurrence. Such policy of in-
.rr:ce shall specifically provide that any other insurance
�rrie,i by CITY which may be applicable shall be deemed excess
insurance primary despite any conflicting pro-
•:isions in COMPANY'S policy to the contrary.
SECTION 16. Independent Contractor It is further
.nderstood and agreed that COMPANY is, and shall be, acting at
5•
a: an independent contractor herein and not as an
)f CITY. COMPANY ahall secure at its expense, and be
..'_?,e for any and all payment of income tax, social se -
state disability insurance compensation, unemployment
„,Ion and other payroll deductions for COMPANY and its
rs, ageits and employees and all ousiness licenses, if
-onne c t i on with the servici:s to be performed hereunder,
sha=_ not be included in CITY'S Personnel System.
-41 WITNESS WHEREOF, the parties hereto have executed.
jr-rt�e-ent the day, month and ,year first above ;written.
CITY,,eT',�UNTINGTON $EACH
APPROVED AS TO FORM:
'; ty
1prk
City Attorney
AND
APPROVED;
INITlAfiED AND APPROVED:
V
F- A:ministrator
irector q D velopment
Services
C�
BIIJI, BOND & ASSOCIATES, INC.
By.
SERVICES TO BE PERFORMED BY COMPANY
C,-)MPANY agrees to perform the following services and
on behalf of CITY in the administration of the
Preservation/Rehabilitation Loans P,-�gram:
PRELIMINARY SCREENING.
a. Describe housing programs available and detail
infor;-lation required for documentation.
b. Exp.-in criteria for eligibility; income limits,
_.r-et areas included, and mandatory correction of all health. and
~y violations.
2. INTERVIEW AND DATA COLLECTION.
a. Conduct indepth interview to determine whether
appears to meet financial requirements for a loan.
b. Collect documents and other information needed
:i°y owner's financial status, credit, value of property and
.'_on, of title .
? PROPERTY INSPECTION AND COST ESTIMATE.
a. Inspect dwelling to determine rehabilitation
:r necessary to bring it into conformance with CITY'S building
ar"ti safety codes.
b. Consult with owner on needed work plus review -
additional general property improvements desired.
Draft preliminary write-up and estimate the
t for all work to be done under the proposed rehabilitation
r ..3n.
4. QUALIFYING OWNER FOR A REHABILITATION LOAN.
a. Verify detail of owner's income and expense
. lus securing a credit check.
b. Obtain property title report, FHA "as is"
praisaI and a termite inspection.
C. Make final determination of owner's eligi-
`or a loan, and the maximum amount he can afford to borrow.
5. BID PROCEDURES
a. Prepare final specifications and bid document.
b. Obtain competitive bids and proposals from state
li �ensej contractors.
c. Review bids received with the homeowners.
1.
EXHIBIT "All
K. LOAN SUBMISSION AND APPROVAL.
a. Finalize and submit formal loan application
acka�;e to appropriate approval authority.
b. Notify homeowner and contractor of approval. Sub-
_t relu_red documentation for the release of funds to escrow
ac._our.t.
7. AWARD OF CONTRACT AND DATE CERTAIN ACTIVITIES.
a. Prepare all documentation required for date
er+ promissory note, deed of trust, construction contract,
to proceed, truth in lending, etc.
b. Conduct date -certain activities with homeowner
_ ,pportinity to rescind; after rescission period expires
it- contract agreement.
c. Submit necessary documentation to effect loan
with the appropriate agency (HUD, FNMA or CHFA or bank).
8. PRE -CONSTRUCTION CONFERENCE.
a. Review all projected work with the homeowner
`-ie contractor at the site of the rehabilitation.
b. Enter all final detai- decisions into the
)ri.
9. PROGRESS INSPECTION.
a. Conduct compliance inspections to make certain
t �rork is proceeding in a timely and satisfactory manner.
b. Make interim inspections prior to drawing a
e nn os^row account for homeowner's endorsement to honor in
�e for progress payment.
!n. REHABILITATION CERTIFICATION AND NOTICE OF COMPLETION.
a. Perform final inspection certifying that the
Ition has be-n completed in accordance with contract
pooi`'icatlons.
b. Execute and record Notice of Completion.
11. CONTRACT CLOSURE.
a. Acquire lien releases from subcontractors, in
iiin; product guarantees.
r e ?.=_ s e .
b. Secure all necessary sign --off documents.
c. Obtain owner's authorization for final payment
d. Close out case insuring permanent file contains
documentation required for government audit purposes.
2.
4
dAL
f REQUA FOR CITY COUNCIL ACTION
tte.i by James W. Palin, Director Department Development Services
?-epareG _ July 25 11980 Backup Material Attached i �J Yes R No
EXPANDED GEOGRAPHIC AREA FOR NEIGHBORHOOD PRESERVATION PROGRAM
City Administrator's Comments
Approve as Recommended
c IT cr`�
Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions:
ST :c.:MENT OF ISSUE:
-lie Neighborhood Preservation Program has now achieved community
acceptance and garnered widespread interest. To take full advantage
of the funds now available it is now advisable to expand the geo-
graphic area within which the program is offer%d.
-,MMF,NDATION:
By :-mute action, expand the Housing and Community Development funded
Neighborhood Preservation Program to include a new target area south
of Garfield and east of Magnolia (see attached map) and to permit the
rehabilitation of low income owner --occupied. housing on a City-wide
basis.
,NALYSi 5:
The Neighborhood Preservation: Program's administration under the
auspices of Bill Bond and Associates is efficient and effective.
The public interest in the Program generated in the last six months
indicates demand beyond the current Program's scope. Therefore,
staff recommends that the Neighborhood Preservation Program be
expanded in two ways: by offering the entire Program within one
additional target area, and offering a portion of the Program on a
City-wide basis.
NEW TARGET AREA:
Staff has examined the potential target areas identified in the
Community Analysis Report (Rod:ino and Associates, 1976), has reviewed
recent demographic characteristics of •these and perforwed windshield
surveys of these areas. These investigations indicate that an area
Pd';E
of single-family homes near the Bushard Area (see attached map for
exact location) is an appropriate one for expansion of the Neigh-
borhood Preservation Program. Specifically:
- the area includes 332 single-family homes, approximately 52
percent of which are owner occupied;
- the persons per household is above the City average indicating
the presence of families;
- over 40 percent of the households are low to moderate income; and
- the homes are approximately 15-20 years of age and show the ini-
tlal signs of 'eferred maintenance.
The Neighborhood Preservation Program, if expanded to this neighbor-
hooc', would provide:
- deferred payment home improvement loans for households of extremely
low income through the HCD Program;
- interest bearing loans at 4, 6, and 7 3/4 percent interest also
through the HCD Program;
- three. percent .loans to homeowners through tbe federal 312 Loan
PrograTM.
One Gf the mejor conclusions of the Community Analysis Report was
that steps must be taken to help preserve the housing stock in Hunting-
ton Beach. since most of the City's housing was built over a short
span of time, it is possible that widespread deterioration may also
occur over a similarly short span of time. Intervention may re-
quired to avert this possibility.
:'he intervention of the Neighborhood. Preservation Program in this
neighborhood at this time will help to prevent any further decline
)n the area and offer a valuable service to its residents.
'I'.Y-WIDE PARTICIPATION:
Department of Housing and Urban Development regulations now permit
home rehabilitation services funded with the HCD Program to be pro-
vided on a City-wide basis if:
- only households earning less than 80 percent of the area's median
income ($15,300 for a family of four) participate; and
- if only owner -occupied structures with one to four units are
rehabilitated.
The Neighborhood Preservation Program staff has been contacted by
several households that meet this criteria. However, since they
reside outside the current downtown target area, they are not cur-
rently eligible to participate in the Program. The FIUD criteria would
Pa4'e
11
be met if the City offered its deferred and four percent 'loans now
funded through the HCD Program to qualified households throughout
the City. Undertaking this endeavor will help increase the City's.
rate of expenditure of the grant funds while assuring that the
primary program benefit is to lower -income households. For these
reasons it is recommended that this expansion of the program also
occur.
ALTERNATIVES:
The City may wish to expand the program only by adding a target
area or only by adding City-wide eligibility for lower income
households.
FUNDING SOURCE:
U.S. Department of Housing and Urban Development; Housing and,
Community Development Program.
Respectfully submitted,
__ames W. Palin, Director
Development Services
JWP:SVK:jb
AttacN-ent: Target area map
i'_ ANN,NG
iSTRICT MAP 6-6-10 P rxr.
NOTE,
i aM 4 ttT
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REQUER FAR CITY CQU(CILrGTEQN 0$0�4
Date July 10, 1981
APPROVED BY CITY COUNCIL
Submitted to: Honorable Mayor and City Council
Submitted by: Charles W. Thompson, City Administrator
o,
Prepared by: Department of Development Services, HCD Di vi si o CLPRIC
Subject: REVISION OF NEIGHBORHOOD PRESERVATION PROGRAM TO CREATE REVOLVING
LOAN POOL
Backup Material Attached: [Xl Yes [ ] No
Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions:
U
STATEMENT OF ISSUE:
The City currently participates in an interest subsidy loan program to provide
below market interest rate home improvement loans to households throughout the
City. Due to the continued high market interest rates which must be subsidized
with Community Development Block Grant funds, this mechanism for the provision
of home improvement loans has become extremely costly. After a thorough analy-
sis of alternative mechanisms for the continuance of this program, it is recom-
mended that the City Council establish a revolving loan pool for the Neighbor-
hood Preservation Program. (See attached memo from Dawne Bond, NPP consultant.)
RECOMMENDATION:
Authorize the HCD staff to establish a direct home improvement loan program
utilizing Community Development Block Grant funds and authorize the use of all
principal and interest payments thus generated for the Neighborhood Preservation
Program, and authorize an increase in the current interest rates offered to
property owners as follows:
INCOME CATEGORY INTEREST RATE
50% or less (Deferred) 5% until title transferred
51% - 80% 6 %
81% - 120% 9 %
121% or over 12 %
ANALYSIS:
Through the provisions of the City's contract with Security Pacific National
Bank, the City currently offers home improvement loans to property owners in
the following income categories at the following interest rates:
INCOME CATEGORY INTEREST RATE
50% or less Deferred
51% 80% 4 %
81% 120% 6 %
121% or over 7 3/4%
e:o 3181
Page Two
�..;;OW71117
trese substantially below market interest rates are accomplished when the City
"buys down" the market interest rate offered by Security Pacific National Bank
with Community Development Block Grant funds. For example, if the current
market rate for home improvement loans offered by Security Pacific National
Bank is at 17 percent, the City must use Community Development Block Grant
funds to prepay a share of the interest due on each loan which will result in
*he above described interest rate to the borrower. The principal amount of
loans (except deferred) are made with Security Pacific National Bank funds
and are serviced by the bank. This interest subsidy approach for the Neighbor-
nood Preservation Program was established at a time when the market interest
rates were considerably lower than now. Since the escalation of interest
costs for principal amounts borrowed from Security Pacific National Bank, the
non-recapturable interest subsidy payment has increased substantially. For
example, a $15,000 loan at 4 percent interest rate costs the City in Community
Development Block Grant funds $7,954.20.
To alleviate the necessity for this expenditure of Block Grant funds and to
ace the Neighborhood Preservation Program on a more self-sustaining basis,
le following revisions to the current program are recommended:
1. An increase in the interest rates available to borrowers as follows:
Deferred Loan from 010 to 5% Interest Rate
V Interest Rate to 60% Interest Rate
6 interest Rate to 9% Interest Rate
7 3;4"- Interest Rate to 12% Interest Rate
in an analysis of the current property owner interest in the pro-
gram, it has been determined that an increase in the interest
rates to these levels will not impact the continued operation of
the Neighborhood Preservation Program, nor will it significantly
reduce property owner interest.
2. Establish the City of Huntington Beach as a direct lender of Community
Development Block Grant funds for home improvement loans. Under this
mechanism, the City would loan the principal amount to qualified property
owners and would receive all principal and interest payments made on
these loans.
3. Authorize that all principal and interest payments thus received remain
within the Community Development Block Grant program and be used exclu-
sively to further fund the Neighborhood Preservation Program.
4. Authorize the servicing of all these loans (screening of borrowers and
establishment of borrowers qualifications, preparation of loan documents,
collection of principal and interest payments, and collection of defaults)
by a private financial institution in an amount not to exceed $50.00
per loan per year, and direct that this servicing fee be paid from
Community [Development Block Grant funds.
The result of this change in the design of the Neighborhood Preservation Program
will then create a "revolving loan pool" through which future loans may be made.
For example, in the instance of the $1:5,000 loan at 4 percent sited above,
instead of a one time interest subsidy cost of $7,954.20, this loan will.
generate at 6 percent interest an annual revenue of $1,518.96. Further,
ba.ed on the aggregate amount of loans originated each year through the
Neighborhood Preservation Program and the new interest rates to be established,
the City could expect in the first year of this new program a payback of
approximately $44,160.00. Therefore, by becoming a direct lender and by
an increase in the available interest rates in the Neighborhood Preservation
Program, the City can eliminate the necessity for non-recapturabl" xoendi-
ture of Block Grant funds, still offer attractive interest rates ome
improvement loans, and generate sufficient income to sustain the ,:.-gram
with minimal additional contributions from future years' Block Grant funds.
'his change in the Neighborhood Preservation Program is particularly signifi
cant at this time because the Federal Administration has made it clear that
many of the sources of Federal assistance will not be available in the future.
While no substantial reduction in the City's Block Grant entitlement is
expected, the reduction in other forms of assistance will place substantial
additional demands on the Block Grant resources that are available. By placing
the "neighborhood Preservation Program on a more self-sustaining basis, future
Block Grant funds may be made available to meet this anticipated futui, '�mand.
This concept for a revision to the Neighborhood Preservation Program was pre,anted
to the Housing and Community Development Citizens Advisory Board on June 23,
1981, and at that time, the Citizens Advisory Board endorsed this changed
in the program.
The Neighborhood Preservation Program was originally established as an interest
subsidy program because the City lacked the experience with this kind of
program, the interest subsidy mechanism is extremely simple to operate and
because the expected volume of loans was relatively small. At this time, how-
ever, the City has gained substantial experience with the Neighborhood Preser-
vation Program and is experiencing a relatively high volume of activity. These
factors also contribute to the recommendation for a change in the Neighborhood
Preservation Program at this time.
FUNDING SOURCE:
Department of Housing and Urban Development, Housing and Community Develop -
Block Grant Program.
Total Neighborhood Participation Program runding through Seventh Year =
S900,000. Unexpended balance available for the creation of a loan pool
S458,117.22.
ALTERNATIVE ACTIONS:
The City Council may direct staff to investigate a different schedule of
interest rates for the Neighborhood Preservation Frogram.
2. The Council may direct that the Neighborhood Preservation Program remain
in its current form by providing below market interest rate loans through
direct interest subsidy.
C ),0e
Sb`K: jb
atn ;s
MEMORANDUM
'o: Stephen V. Kohler, From: Dawne Diaz Bond,
Senior Community Development Specialist Bill Bond & Associates
Su,'Ject: Home Rehabilitation Loan Program Date: July 10, 1981
Secause of staff concern reg?rding the escalating costs associated with the home
rehabilitation program, a review of possible alternative approaches to program
structure were studied for presentation to the City's Citizens Advisory Board.
`ne loan program was discussed at the Juno 23, 1981 meeting of the Board. The
croup s',[;norts a change in the existing program to counteract the effects of in-
flation and the resulting money market conditions.
ne itv currently offers deferred loans with no interest attached and fully a-
Tort;zed loans of 4:, 6 and 7 3/4% as follows:
_Lo_Ard RATE INCOME CATEGORY AREA
Citywide/Target
Deferred 50% or less x x
4 5101' - 80" x x
6 81101 - 120% x
7 3/4 121,1 or over x
7 3/4 investor/Owner x
The deferred loans are made direct from the City's CDBG funds; the amortized loans
are --ade through Security Pacific National Bank and the interest rate is subsidized
r. the City's CDBG funds. The up -front subsidy cost to the City for a fifteen year
loan at c is S7,954.20. The City's cost on a similar loan at 7 3/4110 is $6,033.78.
The ,ub0 dy payment is due upon funding of the loan and represents a non recuperable
cost of the prn5rar?.
The first change recommended is raising the available interest rates as follows: de -
`erred loans to 5 ; amortized loans to 6r4", 9� and 12%0 for the appropriate categories.
Staff feels that this increase in the rates offered will not lessen the response to
the program and will still be attractive to the potential home improvement applicant.
:t is further recommended that the City accomplish the transition of this program
�v becorling a direct lender by providing the principal amount of loans from its CDBG
funds and gathering the principal and interest payments on such loans.
-he average payback per loan will be $1,800.00 per year. Assuming an average of
loans based upon the experience to dace, the City program could expect over $40,000.00
,er vear in total payback. As these loans are repaid to the City account, they would
establish a "revolving loan pool" from which to make future loans. This is increas-
ingly desirable due to the expected reduction in other forms of federal assistance
and the additional demands on CDBG funds this will create.
3
;nterest
Ra to
4
6
3,4
COMPARISON OF EXISTING PROGRAM AND PROPOSED PROGRAM
Existing Program
loan costs
Loan
Loan
Monthly
Annual
Interest
Amount
Term
Payback
Payback
Subsidy Cost
S15,00C
15
$110.94
$1,331.28
$7,954.20
S15,000
15
$126.58
$1,518.96
$6,961.65
S15,000
15
$141.20
$1,694.40
$6,033.78
Proposed Program
loan payback
:nterest
Loan
Loan
Monthly Annual
Interest
?ate
Amount
Term
Payback Payback
SubsidL—cost
6
$15,000
15
$126.58 $1,518.96
0
9
$15,000
15
$152.14 $1,825.68
0
12
$15,000
15
$180.02 $2,160.24
0
HLR
1
2
4
5
6
7
8
9
10
11
12
13
14
15
ANTICIPATED REVENUE GENERATED
aggregate of loans
# of DPL -� of Amortized Loans Amount of Payback Per Year
7
23
$44,160.00
8
25
48,000.00
8
28
53,760.00
9
30
57,760.00
10
33
63,360.00
11
36
69,120.00
12
40
76,800.00
13
44
84,480.00
15
48
92,160.00
17
52
99,840.00
19
57
109,440.00
21
62
119,040.00
23
69
132,480.00
26
75
144,000.00
29
81
155,520.00
CITY OF HUNTINGTON BEACH
7 INTER -DEPARTMENT C0i41MUNICATION
CITI c";' ADVISORY BOARD From STEPHEN V. KOHLER
REHABILITATION LOAN PROGRAM Date June 23, 1981
,r t_v Pa;:ific "National Bank has informed us that the current prevailing rate
I.,r -",% Title I Home Improvement Loans is 18%. At the time of our Original a-
;ith the bank the rate was 11%
F — a-ple of a S15,000.00 loan for the full 15 year term provides the
l l i i inf(�rrration for comparison;
,-Ierpst
Monthly
Interest
Payback
Subsidy Cost
$110.94
$7,954.20
`
$118.61
$7,467.50
F_
$126.58
$6,961.55
$134.83
$6,437.70
$143.35
g5,896.61
$152.14
$5,338.37
$161.20
$4,762.97
$170.48
$4,173.29
�i
$180.02
$3,567.41
been offew•inq a deferred loan with no interest to homeowners with
ttlnr; 50 of the average income for the area. Loans of 4", 6" & 7 3/40'
on income and family size) have also been available through SPNB.
?r -inq recw,inended that the deferred loan be changed to carry 5 at simple
i t,>re;*. Loan principal and interest due upon change of ownership. Addition-
1 it is r-ec:orlr,;ended that the 41711 rate be increased to 6o; the 6' rate to 997;
and thr 7 3 4. rate to 12�.
it is farther recorrrrended that these loans be made available direct from the
C;,-,rwnitf Development Block Grant Funds. The loans would continue to
to serviced b-v Security Pacific National Bank for $50.00 per year per loan.
n- ttach,d chart has been compiled based upon average figures derived from
avt.,al loan fir,ures experienced over the life of Our rehab program_
S,bmitted by
AEQUEST FOR CITY COUNCIL ACTION
James W. Palin
Department Development Services
Data Prepared December 28, 19 79 Backup Material Attached ® Yes n No
Subject-ONTINUED ADMINISTRATION OF THE NEIGHBORHOOD PRESERVATION PROGRAM
City Administrator's Comments
�PPROYED BY i,t7Y CO 4Ci
Aporove as recommend d.
Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions: '�
r.'EMEN7' OF ISSUE:
�n December 17, 1979, the City Council considered a contract with Bill
Bernd & Associates, Inc. for the administration of the HCD funded
Neighborhood Preservation Program. At that time, the Council d ferred
consideration of the item until January 7, 1980 and requested that
alternative methods of administration also be presented. There follows
a discussion of alternatives and recommendations.
'E ("OM1MENDATION:
Approve and order the Clerk to execute the contract with Bill Bond
and Associates, Inc, for a period of six months at a cost of $15,000
for the administration of the Neighborhood Preservation Program_
Y"S.
The Neighborhood Preservation Program has been underway for approxi-
riately 21 months. The first four months of this period were devoted
tc the initial design of the program. Since the program has been
available to the public, 46 cases have been initiated, and fourteen
cases are currently in processing. Twelve new inquiries were received
in the la.t two months the program was active. Five cases have been
completed to date.
The principal reasons for the relatively few completed cases are as
follows.
1. Time devoted to the initial program design. This was a time con-
suming, but necessary, process typical of all rehabilitation
programs. This is now complete, although amendments may be
necessary.
P10 3/70
` race Two
2. Unavailability of Consultant Assistance. At the time the City
undertook this program, consultants specialized and experienced
in rehab were few and not well known. Now the City has become
familiar with the Bond firm and its reputation for success in
other communities has led to the recommendation above.
Logistic Constraints
The consultant previously administering the program, although
a hichly reputable planning firm was located in Brentwood and
sub -contracted a portion of the work to yet another firm. Both
staff and rehab clients experienced difficulty in maintaining
communication as a result. Additionally, processing an appli-
cation for rehab assistance and overseeing the actual work
requires a great deal of personal contact with the client. This
was also difficult for a firm located distant from the neighbor-
hood.
he Bond firm will provide a full-time in-house staff person
at the Huntington Beach Civic Center that will be available
both during City business hours as well as after hours if
necessary to accommodate a client. The firm's headquarters
is in Long Beach so that additional staff could be in the
City quickly if needed. This should substantially overcome
one of the major obstacles previously experienced with the
program.
4. Marketing and Local Needs
Proximity to and familiarity with the community will also permit
the Fond firm to institute a more intensive and effective
marketinq campaign more sensitive to the needs of residents
in Huntington Beach. The lack of such an effective program has
also contributed to the slow start of the program.
integral to a continuation of the Neighborhood Preservation
Program should be amending the design of the program to permit
even broader participation, expanding the geographic area within
which the program is available and expanding the program to
include commercial structures and additional funding sources.
Bond & Associates will also be examining these alternatives and
recommend appropriate actions.
All of these factors, along with the documented production of the
Bond firm with similar programs in other communities (see attached
statistics) has lead to the staff recommendation for contracting with
the Bond fi-n.
AL:'ERNATIVES:
1. Hire Additional City Staff
The City may hire additional full-time staff to administer the
program in lieu of using consultant assistance. The minimum staff
required to operate the program effectively would be one Loan
Counselor; and one Rehabilitation Inspector. The basic cost for
thacP GeruireA area
Page Three
A. Loan Counselor
1385 -
1716
Salary
332
368
Benefits
1717
2084
Per Month
B. Inspector
1420 -
1759
Salary
336
373
Benefits
1756
2132
Per Mo. th
41 676 $50t592 ANNUAL CC5T
This alternative represents a cost higher than the proposed
consultant services and may incur on -going staff costs to the
City and may complicate the curtailment of the program should
that prove necessary in the future.
2. Contract with Orange County
The County of Orange operates a rehabilitation program for the
unincorporated territory and under contract for the cities
of Yorba Linda, Los Alamitos, Laguna Beach, and Stanton; and
is negotiating with the City of San Clemente to provide the
same service.
The County has indicated a willingness to contract with the City
of Huntington Beach as well. The County bills contracting cities
on an hourly basis with an average cost per loan case of $740_
There are currently $796,000 budgeted for the program by the
County and its contracting jurisdictions. The county currently
has a staff of seven persons devoted to the rehab program. It
is unclear, therefore, how much time could be devoted to the
City's program under County administration or if a full-time
person could be provided.
An additional concern regarding this approach is the time required
to establish a contractual agreement with the County. The
County staff has indicated that three months are usually required
for approval of such an agreement. The City's Program has already
been without consultant assistance for two months and any additional
delay will further inhibit its chances for succaos
This alternative m,y offer potential if the program continues and
achieves a stable, highly productive stage.
FUNDING SOURCE•
U.S. Department of Housing and Urban Development; Housing and
Community Development Program.
1977 Third Community Development Year
1978 Fourth Community Development Year
1979 Fifth Community Development Year
1980 Sixth Community Development Year
$100,000 (expended,
$250, 000
$200, 000
$200,000 (expended)
Pa^e Four
Respectfully submitted,
J Palin, Director
Development Services
ATTACHMENTS:
1. 312 Loan Allocations Chart
�. Memo; Neighborhood Preservation Status Report; Dec. 14, 1979
3. Bond & Associates Inc. Proposal
4. Bond & Associates Inc. Contract
5. Memo; Councilwoman Finley; re: Mobilehome rehab; Dec. 17, 1979
JWP:SVR:gc
P
F".-E
CITY F TING ' BEACH
INTER -DEPARTMENT COMMUNICATION
r 11 .y llhf.iUN El N
To Ruth Finley From S `-- �ernior
City Councilwoman Communi y ve
Speciali
Subject SUMMARY OF PROPOSED MOBILEHOME Date December 17, 1979
REHABILITATION PROGRAM/COUNTY
OF ORANGE , �v r
On December 12, 1979, this office was contacted by Lance Hollister of
the County of Orange regarding the county's proposed Mobilehowte
Rehabilitation Loans Program. The program has not yet been approved.
by the County Board of Supervisors, and program specifics have not yet
been finalized.
The following provides an outline of the major components of the proposed
mobilehome program:
1. Funding Source: Housing and. Community Development Block Grant
funds: $100,000
2. Purpose:
Provide low -interest or deferred -interest loans to
low/moderate income mobilehome owners for the
purpose of rehabilitation,
3. Eligibility:
Program proposes making loans available to low and
moderate income households. Specific income
criteria have not yet been finalized.
4. Loans:
Program will probably be based on existing rehabili-
tation loans program for single-family homes. Loans
to be made at low -interest depending on household
income at 0, 3, 4, or 7 percent_
5. Lean Securitv
Currently, mobilehomes may not be used to secure
Title I loans, The county proposes making maximum
unsecured loans of $5,000; loans in excess of this
amount would be secured by holding the pink slip on
the mobilehome coach.
6. Lend{ - g
Ins'. zution: The services of a qualified lending institution
would be required to administer the financial/banking
aspects of the program. The county has issued a
request for propol als to secure the services of a
bank/savings and loan institution. The RFP has been
sent to 33 institutions, and the county has received
one (1) proposal to date (the deadline for submitting
proposals is January 11, 1980)
A2pIieabIlitY: The City of Huntington Beach currently has rehabilitation
monies available through, the block.grwiit progrwn which
41
3..
Ruth Finley
DEcember 17, 1979
Page 2
could be used to fund a mobilehome rehabilitation loans program.
Block grant funds are currently available for emergenpy type repairs to
mobilehomes through the Council on Aging's "Cherish" program. Under
this arrangement, the City reimburses the Council on Aging a maximum
of $300 per case for repairs to benefit low-income seniors,
In order to implement a full scale mobilehome rehabilitation program,
a number of actions would be required:
(1) Determine program guidelines - maximum loan amounts; income
criteria; delineate low-income target areas; determine eligible
activities.
(2) Select a financial institution to administer issuance of Loans.
(3) Receive EiUD approval.
(4) Locate contractors with expertise in area of mobilehome rehab-
ilitation.
SCK:PwT:df
.EXPENDITURES
2ND QUARTER
JAN, FEB., MARCH
PLANNED ACTUAL
:valon
51000
0
:zus�
15,000
65,600
e]I Gardena
30,000
155,050
t'.*. of Los Angeles
400,000
658,100
Olareoont
30,000
I
119,900ft
'"Wisp
:;ulyar City
15,000
¢
-Duarte
20,000
�laavaiian Gardena
10,000
# a.naaetar
4o,000
0
��avndale
10,000
,:.omits,
10,000
0
+ 'onrovia '
25,000
Paramount
10000
:`anti Dimaa
10,000
59,150
San Fernando
15,000
1
0
.io El Monte
30;0
98,450 !
`;b£A%S 675,000 ' 1,156,25o
'.t. ;;ON 512 LOAN ALLOCATIONS
OC1CBER,
1978 _ SEPiEMBER,
'979
EXPF.NDITUR ES
3RD QUARTFR
APRIL, MY,
XJNE
PLANNED
ACTUAL
ORIGINAL PLAN
10,000
0
10,000
20,000
57,600
25,E
40,000
44•,900
30,000
400,000
467,550
��
567,000
4o,000
86,200
30,000
30,000
0
30,000
110,000
0
40,000
20,000
0 (
20,000
30,000
0
30,000
20,000
20,000
20,000
A
20,000
4o,000
18,450
35,000
20,000
0
20,000
20,000
44,35o
20,000
20,000
10
25,E
4o,000
41,85o
30,000
810,000
76o,9oo
952,000
.EXPENDITURES
4Th QUARTER
,PJLY, AUG., SEPT.
ACTUAL
0
6
501,600
22,650
k�
37,250
0
88,600
901,250
TOTA
REVISED PLAN; ORIGINAL
ION
REVISt
0
25,000
A
650
g
60,000s
1 100,000 2
507,700
1,367,E
1,633,35!
'57,450
100,000
263,55C
0
75,c
0
22',650
100,000
22,65o
50,000
j?
100,000
0
50,000
0
50,E
37,550
100,000
56,000
0
50,000
0
88,600
50,000
192,100
60,000
0
48,15o
100 000
1
924,350
2,437,000
2,841,50C
CITY OF HUNTINGTON BEACH
M
INTER -DEPARTMENT COMMUNICATION
NIJh I IIY( T(JN 8f>\CT/
To Floyd G. Be.lsito From Stephen V: Kohler,
Senior
City Administrator Community Development
Specialist
Subject Neighborhood Preservation/ Date December 14, 1979
Rehabilitation Loans Status
Report
i. Funding: 1977 Third CD Year $100;000
1978 Fourth CD Year 250,000
1979 Fifth CD Year 200,000
I 1980 Sixth CD Year (Lending) 200,000
{ Total: $750,000
Funds Expended 120,000
Funds Remaining $M ,000
2. Rehabilitation Cases: 6/78 to 8/79
A. Number of cases initiated 46
B. Number of cases completed 5
C. Number of cases currently being processed 14
D. Inquiries received since 8/79 12
3. Completed Cases:
Client Loan Amount Interest Rate
Senior/Owner occupant $ 15,000
Deferred
Senior/Owner occupant 7,000
Deferred
I Family/Owner occupant 15,000
Deferred
Family/Owner occupant 14,250
Deferred
Senior/Owner occupant 7,000
4%
SVK:jb
f
i
rrit Ys,•�P l yP" ry �j Nw 7 t^ �R1 14 k.-.
E
OU HOU
a OSSOCRYES. 1.1C.
Hov' ,r n•6 ,�y
1113 all
October 24, 1979
Stephen V. Kohler
Senior Community Development Specialist
Department of Development Services
P.O. Box 190
Huntington Beach, California 92648
Dear Mr. Kohler:
Thank you for sending our Company an RFP to administer the City's
Neighborhood Preservation./Rehabilitation Loans Program. We are
quite familiar with Huntinton Beach, and the potential of assisting
you with your community development effort is an exciting, prospect.
The RF'P states that there are four primary services required:
1. Public Information, It has been demonstrated repeatedly that
housing rehabilitation programs must be properly marketed in order Co
maximize public acceptance - rehab just simply doesn't "sell" itself.
We have a public relations unit ionsisti.ng of highly skilled pro-
tiessicnals who are expert in the fields of marketing and communication
to tackle this job. Enclosed are two brochures we have prepared for
other cities which demonstrate the quality of our work. We also pro -
Vide speakers for in -person presentations to community groups for
Such purposes as explaining program benefits and operations, or to
obtain support for new concepts tha.t a city may wish to pursue.
2. Rehabilitation Services. We supply the entire range of financial
courise tag an ui ing inspection activities required to fully im-
plement any type of housing rehabilitation program. These technical
services are outlined in detail in Exhibit A of the attached proposed
Services Agreement. The Company is completely self-sufficient in its
operations, and absolutely no professional or clerical assistance
would be needed from the Ctry td take telephone messages, explain
program, conduct preliminary screenings, or to handle any other aspect
of the Rehabilitaion Loans Program administration. We would staff
the program on a .ulltime bais, and would maintain the same office
hours, as City !call.
3. Fro re_s�ss Re oort�s. In conjunction with rtigular monthly invoices,
the-ompanx provl( a report summarizing all major activities per-
formed during the billing month. This report is broken down into
the following categories:
a. Initial Interviews e. Progress Inspections
b. Inspections 6 Cost Estimates f. Contraet Closures
c. Qualification of Owners g. Number of Approved Cases
d. Award of Building Contract h. Amount of Approved Loans
M Lmirse, additional information could be provided if the City so
I �Jkjcsts. In addition, specific case files are always open foi your
pc riisaI .
4. Technical Assistance. We are prepared to offer the City techniell.
assis ance in a variety of ways. Because of our first-hand experience
with all the different types of housing rehabilitation programs, W
can provide an expert assessment of the existing Rehabilitation Loans
Program, together with su&gestions for additional, sourcfis of funding;.
Furthermore, we have excellent contacts in HUD and at the State level,
which keeps us abreast of new program developments plus enhancin our
ability to effectively and efficiently represent the interests of
clL=nt cities.
ABILITY TO PERFORM
As the Company's President I am a political science and public admin-
istration graduate of Stanford University, My history of involvement
in the field of community development stems from 13 years of experience
with the County of Los Angeles. Having served as the Director of
Community Improvement for the County, as a part of mar responsibilities,
i developed and directed the largest housing rehabilitation program in
the history of the United States - over 3,000 homes were upgraded with
Federal loans in a single prof!?ct in East Los Angeles during a four
year period.
Bill Bond & Associates, Inc, is the pioneer firm in the field of ad-
ministering housing rehabilitation programs on behalf of local govern-
ment. Among our client cities, our ability to perform can be checked
with:
CITY LIASON TELEPHONE
Bell Gardens Claude Booker (213) 927-8301
Claremont Donna Preszler (714) 624-4531
If you wish to discuss the professional quality of the Company's work
with the Federal government, then the following officials have pro-
cessed a considerable number of our loan applications for Section 31Z
►,ocre improvement monies at HUD's area offices in California;
HUD - Los Angeles Guyy Severns (213) 688-4788
HUD - San Francisco Bill MaCabe (415) 556-0391
I believe that Huntington Beach still contracts with Security Pacific
National Bank for the provision of subsidized honte improvement loans,
Our references can be checked with Phil. Long, who is the Assistant
Vice President in charge of the Bank's Community Developmenc Center
at t213) 923-5551 - or his Assistant, Al Garcia.
COSTS
The Company's basic relationship with a city is that we supply the
manpower and "know-how", and the numici,pality provideti office space,
and necessary equipment and supplies to carry out a rehabilitatioit,
to
Progy ant. Our charg—s for personnel to be assigned to yo,.ir Rehabil-
itation Loans Program would be $13.81 per Hour for Loan Counselors,
and $14.70 for Rehabilitation inspectors. 'M= number of personnel
assigned �o the City is always subject to Your advance. approval
Wh1le one Counselor is assigned on n fullt.ine basis, the Inspector
is only assigned to a city when there is actual inspection work to be
performed. Additional counselors would normally be added 2 or 3 days
a week as loan activity dictated. This arrangement saves individual
cities a Rood deal of money since they don't have to pay for the clown
time of an inspector. Actually our hourly rates are even far lower
than they lock because the Company does notcharge for vacations,
holidaye, sick leave, or other fringe benefits.
The prices for other Company services, such as ;uulic relations or
new program research and development, are subject to negotiation
based upon the nature of the work the City wishes to be performed.
As mentionned above, a proposed Services Agreement is enclosed. Should
you have questions concerning the prosposal or the Company's operations,
please do not hesitate to call me. Thank you for your consideration.
Sincerely,
Bill Bond �
BB:acd
Enclosures
REQUEST FOR CITY COUNCIL ACTION
Submitted by James W. Palin,Director Department Development Services
Date Prepared December 5 , 1979 Backup Material Attached Yes ❑ No
Subject Selection of consultant to administer Rehabilitation Loans
Program and Contract Approval.
City Administrator's Comments
Id-/� 7-6I� / 9
Approve as Recommended.
Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions: Q
3
10
STATEMENT OF ISSUE:
As part of the Neighborhood Preservation/Rehabilitation .Loans Program
funded with the City's Housing and Community Development Block Grant
Funds, the services of a consulting firm have been utilized to imple-
ment and administer the Rehabilitation. Loans Program. The firm of
Urban Projects, Inc. 'as been retained by the City to administer the
proeram for the past 23. months; this contract has, however, expired.
In order to ensure the City of the most economical and ef4';ient
consultant services, a request for consultant services has been re -
advertised, and proposals have been received.
RECOMMLENDED ACTION:
Select the proposal submitted by Bill Bond and Associates, Inc., and
approve and order the Clerk to execute the attached contract retaining
the recommended consulting firm.
iuNALYSIS:
Oi October 14, 1979, the Department of Development Services requested
proposals from consulting firms to administer the Rehabilitation Loans
Program. Proposals from two firms were submitted, and wero opened on
October 25, 1979. These proposals were reviewed by staff, and summar-
ized as follows:
1. Urban Projects, Incorporated (Proposal attached)
A.
Services: Meets all tip requirements of the Request for Pro-
posals including publicity and outreach efforts, all phases
of client contact and rehabilitation contract supervision,
FqO 3178
Page 2
I
�aF
preparation of monthly status reports and technical assistance
to the City in expanding or modifying the program.
B. Experience: Urban. Projects has administered the Rehabilita-
tion Loans Program for the City for 21 months. While. UPI
is a highly qualified planning firm, the company appears
to have limited expertise in the operation of rehabilitation
programs, and is not currently involved in any other similar
programs.
C. Cost: Proposed services to be billed as follows:
1. Basic Retainer Fee:
$1500.00/month total
a. Program Assistant (40 hr./month) 30.00/hour
b. Program Administrator (6 hr./month) 50.00/hour
2. Other Basic Costs:
a. Initial Inspection 125.00/case
b. Owner Conferences, review bids 75.00/case
C. Loan Packaging and approval for
all completed cases 800.00/case
3. Contract "Ceiling" Cost
a. No maximum contract cost was submitted by UPI;
the cost to the City would Lz based upon case load
and number of cases completed.
4. Summary:
In the past, there have been some problems associated
with UPI in administering the rehabilitation program.
Logistically, the firm is working out of a Brentwood
office creating problems with client contact and pro-
gram continuity. Staff commitment has not been suffi-
cient, and cases completed over the two-year implementa-
tion period have been minimal.
2. Bill Bond and Associates, Inc. (Proposal attached)
A. Services: Meets all requirements of the Request for Pro-
posals includinq program publicity and public information;
all client contact and assurance of contract enforcement,
preparation of monthly status reports and provision of tech-
nical assistance to the: City.
B.
Experience: Bill Bond and Associates specializes in the
implementation/administration-of Rehabilitation T�oans Pro-
grams, and is currently involved in several other similar
programs.
Pa�fe 3 to
2
C. Cost:
1. Basic Retainer Fee: Not to exceed $2500.00/month total
(Not to exceed $15,000.00 for six
months.)
a. Loan Counselor (40 hours/week) $13.81/hour
b. Rehabilitation Inspectors (as needed) 14.70/hour
2. Other Basic Costs:
None
3. Contract "Ceiling" Cost: Not to exceed $2500.00/month.
4. Summary.
This proposal has several positive attributes. The basic
retainer fee covers all costs of client contact, loan
processing and rehabilitation work completion. Bill Bond
and Associates proposes to provide a full-time, in-house
loan counselor, making the program readily accessible
to potential clients. This proposal most closely approxi-
mates the advantages of hirinq additional City staff
without the long-range commitment of resources the hiring
of additional staff might encumber. Logistically, the
firm is locally based (Long Beach), and utilizes their
own Rehabilitation Inspectors (Urban Projects subcontracts
for this service). The firm has very specific expertise
in the area of Rehabilitation Loans Programs, and is cur-
rently involved in several other programs. Staff recom-
mends approval of the Bill Bond, Associates proposal.
FUNDING SOURCE:
Housing and Community Development Block Grant Funds:
Third Year $100,000 (expended)
Fourth Year $250,000
Fifth Year $200,000
Sixth Year $200,000 (pending Council approval)
Total $750,000
ALTERNATIVES:
The City may choose to establish an in-house program for administer-
ing the Rehabilitation Loans Program. This approach, however, would
necessitate additional staff, clerical support, office space and
equipment. The City might also choose to terminate the Rehabilitation
Loans Program, although considering the present commitment of resources
to the program, staff does not recommend this approach
J
L
Respectfully iubmitteu,
e alin, DirectoY
Services
Zevelopment
V7P : PWT : j b
Attachments: Request fox Proposals/Legal Notice/Mailing List
UPI Proposal
Bill Bond Proposal
Contract with Bill Bond and Associates
CITY OF Hi NTINGTON BEACH
REQUEST FOR PROPOSAL
NE:GI BORHOOD PRESERVATION/RIrHABILITATION LOANS PROGRAM
The City of Huntington Beach is seeking consultant assistance to
administer the Neignborhood Preservation/Rehabilitation ;Loans
Program.
The City has allocated *750,000 in Community Development Block Grant
Funds for the Rehabilitation Loans Program over a four year period.
The program has currently been in effect one year. Services required
would include, but not be limited to, the following:
1) Publi.c contact including preparation of program fliers, pamphlets
and relevant literature; presentations to conmunLty groups and
organizations; contact with neighborhood residents; dissemination
of program information.
2) All phases of client contact including initial interviews, Pre-
paration of applications and financial addenda, initial inspection
of property, rehabilitation work write-ups and cost estimates,
assistance in locating contractors and securing reasonable work
bids, progress inspections and rehabilitation contract suparvision.
3) Preparation of monthly program monitor/progress reports for City
staff review.
4) Technical assistance to the City in preparation of other p'.:en
tial rehabilitation programs, including -the expansion and/or
modification of the present rehabilitation loans program to include
other neighborhoods and commercial property.
Existing budgeted program funds allow for the rehabilitation of
approximately 25 to 35 residential properties each year of program
implementation.
Qualified firms interested in submitting proposals are encouraged to
contact the Housing and Community Development staff in the Hunting-
ton Beach Department of Development Services for program details and
City requirements.
Competitive bidding procedures will not, be used for the procurement
of theses services due to the complex and highly specialized nature
of the required services. However# proposals will be judged upon:
1) The consultant's actual capability to complete the project, in con-
formance with the specifications, 2) demonstrated ability to prepare
professionally accurate and timely finished products, and 3) to reason-
able contract price.
Mi.
Superior Court
OF THE
STATE OF CALIFORNIA
In and for the County of Orange
CITY OF HUNTINGTON BEACHt PLANNING
State of California 1
County of (hinge
Rita J. Richter
That 1 am and at all times herein mentioned was a citzen of
the United States, over the age of twenty-one years, rind that I
am not a party to. nor inte"ted in the above entitled matter,
that I am the principal clerk of the printer of the
Huntington Beach Independent Review
a rwwapaper of general cirruls.tion, published in the City of
Huntington Beach
County of Orange and which newspaper is published for the
dineminatton of locsi news and intelligence of a general charac-
ter, end which newspapee at all times herein mentioned had
and still has a bona fide subscription list of paying subscribers,
and which newspaper has been established, printed and pub-
lished at regular intervala In the said County of Orange for a
period exceeding one year, that the notice, of which the
annexed to a printed copy, has been published in the regular
and entire issue of said newspaper, and not in any supplement
thereof, on the following dates, to wit:
October 14, 1979
I crrttty !or declare! under penalty of perjury that the forego-
ing is true and correct
Garden Grove
Nted at
cah rn is . 3, tNayof 4tis79
�...
.. .c.........
� l3ignaptre
N! `NTINCTON 9EACIA
PLANNING DEPT.
or,
P. 0. Box 190
Huntingtoll Beach, CA 92648
PROOF OF PUBLICATION
Request for Proposals
Rehabilitation RFP Mailing List
Urban Projects, Inc.
11777 San Vincente , Suite 601
Los Angeles, California 90049
Attn: Ms. Aron C-emens
Attn: Ms. Mel Love
Harold Davidson & Associates, Inc.
1900 Avenue of the Stars
Los Angeles, California 90067
Attn: Mr. Harold Davidson
Bill Band and Associates, Inc.
4432 Hazelbrook Avenue
Long Beach, California 90808
ATTABHMENT #3
.t. CITY OF HUNTINGTON BEACH
<:r 7 INTER -DEPARTMENT. COMMUNICATION
To Ruth Finley From Stlgph �r, Senior
City Councilwoman Communi y velopMen+_
Special'
Subjer.t SUMMARY OF PROPCSED MOBILEHOME Date December 17, 1979
REHABILITATION PROGRAM/COUNT}:
OF ORANGE
On December 12, 1979, this office was contacted by Lance Hollister of
the County of Orange regarding the county's proposed Mobilehome
Rehabilitation Loans Program. The program has not yet been approved
by the County Board cf Supervisors, and program specifics have not yet
been finalized.
The following provides an outline of the major components of the proposed
mobilehome program:
1. Fundinq Source: Housing and Community Development Block Grant
funds: $100,000
2. Purpose: Provide low -interest or deferred -interest loans to
low/moderate income mobilehome owners for the
purpose of rehabilitation.
3. Eligibility:
Program proposes making loans available to low and
moderate income households. Specific income
criteria have not yet been finalized.
4. Loans:
Program will probably be based on existing rehabili-
tation loans program for single-family homes. Loans
to be made at low -interest depending on household
income at 0, 3, 4, or 7 percent.
5. Loan Security:
Currently, mobilehomes may not be used to ser-ure
Title I loans. The county proposes making maximum', `
unsecured loans of $5,000; loans in excess of this
amount would be secured by holding the pink slip on
the mobilehome coach.
6. Lending
Institution:
The services of a qualified lending institui,ion r
would be required to administer the financial/banking
aspects of the program. The county has issued a
request for proposals to secure the services of a
bank/savings and loan institution. The RFP has been
sent to 33 institutions, and the county has received
one (1) proposal to date (the deadline for submit�-ing
proposals is January 11, 1980) .
Applicability: The
City of Huntington Beach currently has rehabilitation ,
monies available through the block gr&nt grogram which
4
Ruth Finley
DE,:t.nber 17, 1979 '' +
could be used to fund a mobilehomE rehabilitation loans program.
clock grant funds are currently available for emergency type r+pairs to s
riobilehomes through the Council on Aging's "Cherish" program. Ui&c'er
this arrangement, the City reimburses the Cou.rcil on Aging a maximum
of S3jO per case for repairs to benefit low-income seniors.
in order to implement a full scale mobilehome rehabilitation program, "
a number of actions would be required.
(1) Determine program guidelines - maxim-m loan. amounts; income
criteria; delineate low-income casget areas; determine eligible
activi.+-tes.
¢j
(%) Select ? :inancial institution to administer issuance of loans.
(31 7eceive HUD approval.
(4) Locate contractors with expertise in area of mobilehome rehab- ;,<R
ilitation. x
F
SCK:PWT:df
r
Aft
URBAN PROJECTS, INC.
11777 San Mce.de Bouteva'd
Suz2 6t?1
k�re�tvia:xf
Los Anc etes, CaV!tomia 9W49
213 8':70 750Z
OL-ober 24, 1979
City Durchasing Offi.cei
Huntington Beaci Civic Center
Roo: B- 7
2010 Main Street
,1Lm.tinTjt,)n Beach, Californi=_ 32648
Re: Proposal to Provide Con, ulti.nd
Services - RehabilitationL Loans
Program
Gentlemen:
Urban Projects, Inc. is pleased to subT:�it this proposal to provide
consulting services in conned tion w"th the CiLy of Huntington Beach
Rehabilitation Loans Program.
Scope of Services
Urban Projects:, Inc. is pxupared to provide all services specified
in your Request for Proposal dated October 9, 197.j, including the
following, briefly described:
1. Conduct c:� program merchandising activities, including out iiot
necessarily limited to preparation of program flyers andd re-
lated materials presentations to community groups and organi-
zations; contact with neighborhood residents; and dissemina-
tion of program information.
2. All phases of client contact, including props-rty owner inter-
views, initial pr(-: arty instpections and worn. 1-.rite ups, pre-
paration of loan and their documentation, rehabil-
itation cost estimates, assistance in locating qualified con-
tractors and in securing reasonable rehabil'.tatioii bids, work
progres-- ins-ections, and coordination of lender/pzoperty owner/
contractor activities.
3. Preparation of monthly program monitor/progress reports for
staff review.
4. Technical a7sistance as needed in the preparation of other po-
tential rehabilitation programs, including modications to the
present program expansion of program activities to additional
neighborhoods and to commercial property.
The brief description above .ncompas ..'3 the ` vaM-.".,)us ,type._ of servic
Rohnbilitation Loans Program
Pr::�osai for Services
URBAN PROJECTS. INC.
rc^t_lI provided in conjunction with the rehabilitation program
is ojerative in the Downtown area.
a:: T ru,Octs Inc. proposes to i -^vide to this work effort the
cc_sAron Clemens, senior vice President, and his. Melba
_ss:)c�_i-o. .is. Clemens has and will be responsible for the
:::,ram, and wi11 personally provide technical assis-
a:.-: and protect management services, as has been the
case in the past. Pis. Love will cond,xct client contact activities,
i _oan pack_.y_ng and coordination services, manage the inter-
InFoectors, owners, security Pacific Bank and -:ontra-
Property inspections, work write ups, cost estimates
inspections will be provided by Guerra Taylor and
5sc:-iat>s, of Gardena, who have been assisting us in this regard
r the mast several months.
P,_< ,tructare
rop, s to provide the services described abovo on the fo, _o�!inq
i . We pr000se a monthly retai.r.-r fee of $1 , 570 to cover the costs
ttneral rirogram merchandising, materials preparation, dis--
5"Mi:nation of information, community cc,itact, technical assis-
anal the like.
1Iiis retainer amount is calculated on the basis of a monthly
tira_> cnitment of forty ;4'0) hours to these activities on the oo
;:.ir t (if 'ts . Love, whose billing rate is $30 per hour; and. a
-").';"h;; r_:;r,r it^i>nt of s x t6) hours for these purposes on the
:iomens, whose killing rate is $50 per hour. These
•ommit,ments will be detailed in each mo nthly invoice as sup-
portive of the retainer fee.
?. ;9e propose that the following costs be paid with respect to
each potential rehabilitation job, untii it reaches the point
cf loan closing, whether or not the loan closes and -ehabilita-
tior, begins:
o Initial inspection and work write up: $125. 00
0 owner conferences, taking and review of bids: $75..00
3, We propose that upon loan closing, an additional fee of 0-800,00
be paid, which fee would compensate for all work associated with
the preliminary steps involved with loan packaging and -approval;
own:>r conferences after bids are taken; coordination wit'z the
lender, contractor, staff and property owner; two progress in-
spections and a final inspection. This ca-^e fee would not be
paid if a rehabili tatian ease, were now to erocon.d to the loan
Rehabilitation Loans Program URBAN PROJECTS. INC.
Proposal for Services
Page Three
closing stage (i.e_, if a potential rehabilitation job were
to discontinue in the process prior to loan closing, the costs
of all preliminary work associated with loan applications and
documentation, packaging, and coordination between the various
actors would not be charged to the City or to the CDBG program).
It will be noted from the fee structure outlined above that we be-
lieve that an incentive device is appropriate to the conduct of the
rehabilitation program currently underway ir. Huntington Beach. Our
cc,mTnitr.:,ant to that program, and our confidence that production can
be increased, is evidenced by our willingness to undertake a sub-
stantial portion of the needed work program without guarantee of
compensation, in that compensation is structured to occur only if
rehabilitation cases reach the point of loan closing.
Concl Lions
Urban Projects, Inc. has been pleased to have been associated with
the City's rehabilitation program to date. We recognize that pro-
gram response has not been present in tl.e volumn either thz City or
ourselves would have expected; it is for this reason that we pro-
pose to continue services on the basis proposed above.
We should note that, with respect to program merchandising, we are
proposing to devote one person/week pk-r month to active, intensive
program "selling"; that is, we propose to walk each street in the
program area, call house to house, talk with each property owner,
about the advantages of the rehabilitation program. In addition, we
propose to send personal letters to each property owner in the area,
outl`ning the seasons why rehabilitation is in their interest and
that of the neighborhood.
Finally, we are proposing that, contrary to previous prr.cedure, pie
provide to the property owners the service of taking construction
bids on their behalf (from a list a bidders approved by the property
owners) and evaluating those bids; this should work to more expedi-
tious .vork program conclusions.
Should you have, questions or require further information, please do
not hesitate to let us knew.
Sincerely,
URBAN PR05ECTS, INC.
Aron W, Clemens
Senior Vice President
BILL 000
9 AS"OCIATE'S. ViC.
October 24, 1979
tit_*�hc n V. nobler
5t'LiOr Community Development Specialist
:)apartment of development Services
p.t). I:)x 190
Httr:_, futon Reach, California 92648
r)ear Mr. Kohler:
Thank you for sending our Company an RI'P to administer the City's
irhb01,hood I)reservation/Rehabilitation Loans Program. We are
(;trite familiar with Huntinton Beach, and the potential of assist;*g
V"ith your community development effort is an exciting prospect.
?he RFP states Lilat there are four primary services required
1. Public Inforr,.ation. It has been demonstrated repeated..y that
ht.t,in rt-a i itation programs must be properly marketed in order to
r.axinli Z.> public at cept: nce — rehab just simply doesn't "sell" itself.
have a pullic relations unit consisting of highly skilled pro-
1bsi(.cals who ae �,xpert in the fields of marketing and communications
to tackle this job. Enclosed are two brochures we have prepared for
tht-r citiis which demonstrate the quality of our work. We also pro-
i at spoakt,rs for in -person presentations to community croups ;for
pur,,oses as expla ning program benefits and opera+ -ions, orto
htain supnort fcr r w concepts that a cT ty may wish to pursue.
2. ,eh,:bilitation Services. We supply the entire range of financial
ck),Arlb7l_Tir� ar. ui ing ins pe, `ion activities required to fully im-
pl..,ment any type of housing rehabilitation pro ram. These technical
SI•r-vices are outiined in detail in Exhibit I of the attached proposed
: rvices Agreement. The Company is completely self-sufficient in its
oi� ,ations, and absolutely no professional or clerical assistance
wOuld be needed from the Ctiy to take telephone messages, exrlain
)roF,.ram, conduct preliminary screenings, or to handle any other aspect
,)l the Rehabilitaion Loans Program admini.stratior.. We Would staff
the prok;.aht on a ;_ulltime bais, and would maintain the same office
I
ours as City Hall.
3, rogr_�ss Re orts. In conjunction with regular monthly invoices,
the '°,)mpany p�-ori es a report summarizing all major activities per-
rm luring t:ie billing month.. This report is broken down into
tht, iol.lowing car_egories:
a. initialInterviews e. Progress Inspections
b. Inspections & Cost Estimates f. Contract Closures
c. Qualification of Owners g. Number of Approved Cases
d. Award of Building Contract, h. Amount of Approved. Loans
program. Our charges for personnel to be assigned to your Rehabil
i.tation Ioans Program would be $13.81 per hour for Loan Counselors,
and $14.70 for Rehabilitation Inspectors. The number of personnel
assigned to the City: is always subject to your advance approval.
While one Counselor is assigned on a fulltime basis, the Inspector
is only assigned to a city when there is actual inspection work to oe
performed. Additional counselors would normally be added 2 or 3 days
a week as loan activity dictated. This arrangement saves individual
cities a good deal of money since they don't have to pay for the down
time of an inspector.. Actua'ly our, hourly rates are even far lower
Iran they look because the 'c,pany does not charge for vacations,
holidays, sick leave, or other fringe benefits.
The prices for other Company services, such as public relations or
new program research and development, are subject to negotiation
based upon the nature of the work the City wishes to be performed.
As mentionned above, a proposed Services Agreement is enclo,,;ed. Should
_OU have questions concerning the prosposal or the Company's opPratiors,
please do not hesitate to call me.. Thank you for your consiep tion.
Sincerely,
Bi11 Bond
BB:acd
E:nc l osui es
Of course, additional information could be provided if the City so
rt°sts. In addition, specific case files are always open for your
pt-rl:sal.
=t. Technical Assistance, We are prepared to offer the City technical
assistance in a variety of ways. Because of our first --hand experience
all the different types of housing rehabilitation programs, we
..an provide an expert assessment of the existing Rehabilitation Loans
I'ro rr.m, together with suggestions for additional sources of funding.
'ri:rth,,rmort•, sae have excellent contacts in HUD and at the State level,
which keeps us abreast of new program developments plus enhancing our
,.,ability to effe-.tively and efficiently represent the interests of
,A lent cities.
ABILITY O PERFORr,1
As the Company's President, I am a political science and public admin-
istration-,raduate of Stanford University. My history of involvement
in th, :ield cf community development stems from 13 years of experience
:iti; tho County of Los Angeles. Having served as the Director of
Community I,nprovement for the County, as a part of my responsibilities,
ca(Iveioped and directed thE: largest housing rehabilitation program in
th,° history of thf� United States - over 3,000 homes were upgraded with
i-de—al loans in a single project in East Los Angeles during a four
:t•ar poriod.
Sill Bond & Associates, Inc, is the pioneer firm in the field of ad-
mnistering housing rehabilitation proera.as on behalf of local_ govern-
:'Among our client cities, our ability to perform can be checked.
with.
CI"'Y
Bull Gardens
Cl aremont
LIASON
Claude Booker
Donna Preszler
TELEPHONE
(2.13) 927-8301
(714) 62.4-4531
i you wish to discuss the professional quality of the Company's work
with tilt, Federal government, then the following officials have pro-
,:cssed a considerable number of our loan applications for Section ,12
dome improvement monies at HUD's area offices in California:
IiUl) - Los Angeles Guy Severns (213) 688-4788
11I'D - San Francisco Bill Ma.Cabe (415) 556-0391
I believe that Huntington Beach still contracts with Security Pacific
-ational Bank for the provision of subsidized Home i,zaprovemenc .loans.
slur references can be cr►ecked with Phil Long, who is the Assistant
:ice Pr(;ident in charge of the Bank's Community Developmenc Centex
at 1,213) 923-5551 - or his Assistant, Al Garcia.
COSTS
Th• Company's basic relationship with a city is that we supply the
manpower and "know-how", end the numicipality provides office space,
and necessary equipment and supplies to carry out a rehabilitation
S
FFpN9mYrt/fYwtYM�RRT3dlBi�PDMJ�[i�YRl�64RI� VI8S1�111���R1il�"'ll®Cri(�IIIP�
To: Steve Kohler
Month of JanuarAm
NEIGHBORHOOD
PRES'RVATION:STATUS REPORT
1. Comgieted cases:
5
Deferred Loans:
Alfrey
6,045.00
Edwards
14,196. 00
Hermsn
15,000.00
McElvey
15,000.00
Total
$50,241.00
4 % Loans:
Latora
2_,026.44
Total
$ 2,026.44
2. Approved projects: 4
Deferred Loans: Dalton
Slagle
7 3/4% Loans- Connor
Shaw
3. Active cases: 7
us n
Boharian
Cossey
Renard
Slagle
Whitcomb
4. Initial stages: 9
Berger
Fradsen
Gable
Griffith
Hand
Harper
Lawson
Parsons
blonde i l
5. Inactive: 1
—Donald, Alta
6. Closed cases: 27
midge
Bosler
B roan
Colman
Dill
Doble
Dunker
Durall
Fandy
Haynes
Hemsly
Jamen
Kaylor
,� i nrgrr
Dim
$10.,000.00
15,000.00
Total
$ 7,000.00
15,000.00
7 3/4%
7 3/4%
51000.00 7 3/4%
Lank
Linn
Lund
Meaki,n
Nevi us
Pollack
Ray
Reilly
Schlay
Stairs
Strickland
$25,000.00
$22,000.00
91
N *BORHOOD PRESERVATION ARL'- May 14, 1979
I V 1 1 L a, le 7� dew
,J. AH 424 ow.nor. 77.31% owner occupant
b. vj . -,j 1 .2. 84%
C. r1opulat.ion : 1,852 pez.3ons; 3.38 per housebold
I ( � �'- - I
mod $22,566
(.()w ItIc(),ilc> = 88 till / 24.6%
1,ow,mod. 192 hh / 51.7%
I MAP -
H
lit NTINGTON 131"JAC111 A
ill, NNiJ (ill NI1, ( Al IFOHNIA
f I NAL.,
. . .......................
21-5-11
AYf
J
if CF-E
E
CF
-LJ
7-
1; L
1EM-L-J-11
' -TT'
Fr
1-7
CF -
JW 11 Ire,
I
ATTACHMENT 2
�4
La,nb _"h of
a. L..8 Sr / 390 owner y 66.3% owner occupant
b. Vacancy = 2.09%
C. Population = 1,851 parsons; 3.29 per household
Median $22,214
t,«w inrt-)rne .- 96 hh / 22.6%
l..,w,'Mod. tnoome , 178 hh / 46.8%
.;.(.o
Yor field
' Q ,;F / 171 owners -- 951 .5% ownet, occupant
V,jcdncy = 2.4li
Population 1,005; 1.1 per hh
I Io -o [fit,
Modidn = $20,226
Low InIromo - 67 hh / 20.1%
[ncome: I li.) hh / 40.6,4.
14 A CI I
'\I) I %I 11A)II1IA
A
CF -F
CF�E
Cr R
CF E
em
Iew
2t.8 .Sr ,f' 190 owncar '70.8% nwney occupant
1, . V,i( inr'y - 1 . T}r) n
c. Popul.<sy i«n 979 pers onsr 1.64 por hh
rI. T noovio
Median _ $19,628
kow rnoome 1.15 lih / 34.71
1,r,wlMoc) . T nr ome 2 12 hh /° 64 . 2
HUN ING )N BE'AC111A
yil(ANGL (.O1;N'l1, 1:11 11`0It'NIA
bSi oI Pl?�ljlk)yy7 M"O°
9
36-5-11--