City Council Report


January 19, 2010

City Council Meeting: January 12. 2010

Agenda Item: 1-F

To:†††††††††††††††††† Mayor and City Council

From:††††††††††††† Andy Agle, Director of Housing and Economic Development

Subject:††††††††† Professional Services Contract for Compliance Investigation



Recommended Action

Staff recommends that the City Council authorize the City Manager to execute a professional services contract with Program Compliance Solutions (PCS), to provide investigation services for the Housing Division.



Executive Summary

The Housing Division is required by the U.S. Department of Housing and Urban Development (HUD) to investigate potential fraudulent activity of persons participating in HUD-funded housing programs. These programs include the Section 8 Housing Choice Voucher, Family Self-Sufficiency, HOME, Shelter Plus Care and other housing subsidy programs. HUD programs have strict regulatory policies regarding income and asset eligibility and require third-party verifications.PCS is recommended to provide the required services in an amount not to exceed $218,400 ($72,800 annually) for a three-year term beginning January 2010.




To select a contractor to provide compliance investigation services for the Housing Division, a request for qualifications for professional services was posted on the City of Santa Monica website.Staff reviewed three submittals and rated each on qualifications, project understanding, experience, price and references and determined that Program Compliance Solutions is the best bidder and most qualified to support the services of the Housing Division.


On July 14, 2009 the City Council considered a staff recommendation regarding a three-year contract with PCS; however, the Council requested that staff review opportunities to assure quality customer service during the investigatory process and come back with recommendations.



In response to Councilís request, staff has closely monitored the work of the investigator, reviewed customer complaints and consulted with staff from the Legal Aid Foundation of Los Angeles for additional perspectives. Consequently, three additional steps have been added to the investigative process and to the Administrative Plan to better inform program participants of the process and their rights. Participants will now be advised of the process and their rights in the following manner:1) as part of the annual recertification process; 2) notified by mail prior to the investigatory process; and 3) immediately prior to commencement of the investigatory interview. Additionally, staff has clarified that the investigatory firm is not involved in decisions and consequences regarding the outcome of investigations and only conducts such investigations based on staff referrals when evidence warrants.Staff has also worked with the investigatory firm on best practices related to the target population.As a result of these actions, staff recommends PCS for the proposed contract.


Financial Impacts & Budget Actions

Funds for the recommended annual contract in an amount not to exceed $72,800 are available in 01264.555060 subledger 74138. Funds associated with this contract for two additional one-year terms are subject to the annual budget approval process.


Prepared by: Barbara Collins, Housing Manager




Forwarded to City Council:







Andy Agle, Director

Housing and Economic Development


P. Lamont Ewell

City Manager