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To:	Contra Costa County Housing Authority Board of Commissioners
From:	Joseph Villarreal, Housing Authority
Date:	July 19, 2016

Contra

Costa

County

Subject:

CONTRACT WITH STERLING CLAIM SERVICES, INC. FOR HOUSING QUALITY STANDARDS AND UNIFORM PHYSICAL CONDITION STANDARDS INSPECTIONS

Action of Board On: 07/19/2016

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, Commissioner
Candace Andersen, Commissioner
Mary N. Piepho, Commissioner
Karen Mitchoff, Commissioner
Federal D. Glover, Commissioner
Jannel George-Oden, Commissioner

ABSENT:

Fay Nathaniel, Commissioner

Contact:

925-957-8028

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: July 19, 2016
,

BY:	, Deputy

RECOMMENDATIONS

APPROVE and AUTHORIZE the Executive Director of the Housing Authority, or designee, to execute a contract with Sterling Claim Services, Inc. (Sterling) for Housing Quality Standards (HQS) and Uniform Physical Condition Standards (UPCS) inspections for the period of July 19, 2016 through July 18, 2021.

BACKGROUND

HUD requires housing authorities to conduct an annual Housing Quality Standards (HQS) inspections of every unit leased under the voucher program and also a Uniform Physical Condition Standards (UPCS) inspection of every public housing unit. Additional inspections are required as a follow up to any failed inspections, in response to complaints, and as deemed appropriate to ensure compliance with federal program regulations.

BACKGROUND (CONT'D)

Housing authorities are required to issue a competitive request for proposals to find the most cost-effective and best-qualified vendor to provide services. HUD procurement regulations permit for cooperative procurement agreements amongst governmental agencies whereby one agency's competitive solicitation for inspection services can be utilized by another agency if the terms and conditions of the contract are substantially the same.

HACCC utilized this cooperative procurement process to secure the services of Sterling for this latest contract. The Sacramento Housing Authority competitively procured inspection services for HQS and UPCS inspections on January 25, 2012, and executed a contract for 5 years with Sterling as a result of that procurement. HACCC has tailored the scope of services to meet the local needs, but the pricing for inspections reflects the terms agreed upon between Sterling and the Sacramento Housing Authority.

The cost per inspection charged by Sterling has stayed below the cost charged by many competitors and Sterling continues to be the most economically viable solution for inspection services.

In 2015, HUD permitted housing authorities to implement biennial inspections for the Housing Choice Voucher (HCV) Program. As a result, the overall number of inspections has been significantly reduced. The annual costs indicated above reflects an average per year. In alternating years, the costs will be significantly higher or lower than the $333,059 indicated, but on average the costs will be approximately $333,059 per year. Every two years, each HCV unit will be inspected and every year, all public housing units will undergo UPCS inspections.

FISCAL IMPACT

The total annual cost for this contract averages out to approximately $333,059 per year and up to $1,665,295 over a five year period. Funding for this contract is included in the Housing Authority's (HACCC) budget.

CONSEQUENCE OF NEGATIVE ACTION