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HomeMy WebLinkAboutAgenda Statement 1979/08/07 Item 27CITY OF CHl1LA V I STA COUNCIL AGENDA STATEMEiVT Item No~.,_ For meeting of 8/7/79 ITEM TITLE Resolution ~ ,a~Approving Contract with Anthony Ciotti for CHIP Services SUBMITTED BY Community Development Director ITEM EXPLANATION (4/5TH'S VOTE REQUIRED YES. NO,~) At the July 24, 1979 Council meeting, staff recommended approval of a new contract with Mr. Ciotti for services relative to the City's Housing Improvement Program (CHIP). Included in the recommendation was a salary increase of $300 per month based vn an increase in Mr. Ciotti's responsibilities and the expansion of the CHIP program. How- ever, it was Council's opinion that additional information would be necessary prior to their making a decision on the new contract. Specifically, Council requested informa- tion detailing and clarifying Mr. Ciotti's responsibilities and an analysis of compa- rable salaries. Program Review and Responsibilities The City's CHIP program operates at three levels: 1) Block Grant administration; 2) code enforcement; and, 3) loan administration and processing. Block Grant adminis- tration is the responsibility of Community Development staff. Staff provides liaison with HUD, negotiates lending agreements with financial institutions, prepares housing rehabilitation sections for Block Grant, establishes eligible neighborhoods, monitors program progress and prepares CHIP performance report for HUD. The code enforcement element of CN~IP has the responsibility of inspecting all housing units in areas designated by the City Council as code enforcement neighborhoods. Cur- rently, there are three such neighborhoods in the program. Inspections are undertaken by a building inspector whose salary is paid with Block Grant funds. The inspections are made to ensure that all housing units meet building code requirements and are safe and decent. Before a homeowner can receive a CHIP loan, the unit must be inspected. The homeowner must correct all violations. Block Grant funds loaned at below market interest rates of 3% and 7% are available for this purpose. JTS:as Agreement X Resolution X EXHIBITS Ordinance (continued on page 2) Plat Notification List Other ENVIRONMENTAL DOCUMENT: Attached Submitted on FINANCIAL IMPACT Funds for this program have been appropriated in the Community Development Block Grant approved budget (632-6320-BG77). By adopting this resolution, Mr. Ciotti's salary will increase from $1,000 to $1,300 per month. Fringe benefits are not included in this contract. STAFF RECOMMENDATION Based on the expansion of the CHIP program and the corresponding increase in Mr. Ciotti's responsibilities, it is my recommendation to adopt the resolution approving the attached agreement. The Director of Building & Housing also concurs. BOARD/COMMISSION RECOMMENDATION COUNCIL ACTION ~~,. j ~' 7- 79 n . M.:~:..,w.,.,,...,M.,~..._...~...., Item No. 27 For meeting of 8/7/79 Page 2 Mr. Ciotti's Responsibilities Mr. Ciotti's primary responsibilities include promoting the CHIP program, assisting homeowners in preparing bank applications, determining applicant eligibility, veri- fying income, counseling homeowners in their relationships with contractors, assist- ing homeowners in obtaining bids, preparing loan packages for presentation to City Loan Committee, inspecting repairs to ensure compliance with contract and homeowner satisfaction, and recommending changes to CHIP operating manual. In addition, Mr. Ciotti attends seminars relative to housing rehabilitation and assists staff with the development of new rehabilitation programs such as the City's Mobilehome Rehabil- itation and Replacement Program. Mr. Ciotti spends 40 hours per week on CHIP. As a result of his efforts, 87 units have been rehabilitated totaling $450,000. Salary Analysis A second request by Council was for more information relative to salaries in the field of housing rehabilitation. Towards this aim, staff made inquiries to cities within the County that are currently operating a rehabilitation loan program. When considering an appropriate salary level, Council should be aware of the following: 1. The cities surveyed operate their programs with a full-time regular employee who receives a fringe benefit package equal to 20 - 30% of the monthly salary. Mr. Ciotti is a contract employee who does not receive any fringe benefits. 2. h1r. Ciotti's responsibilities are unique in that there does not exist a Chula Vista classification with comparable duties. The position requires a combination of skills in building inspection, contracts administration and financial administration. 3. During the past 2z years, Mr. Ciotti has been responsible for pro- cessing 58 loans at a cost of approximately $500 per loan. 6Jhen staff was reviewing the Section 312 Rehabilitation Loan Program, the average cost fora consultant to process a loan was $1,000 per loan. MONTHLY IAJAGES ANALYSIS Monthly Middle Fringe Benefits Total Salary Agency Salary Range Rate @20% and Benefits La Mesa $1,395 - $1,816 $1,537 $307 $1,844 Oceanside $1,200 - $1,585 $1,324 $265 $1,589 San Diego County $1,431 - $1,739 $1,578 $315 $1,893 National City $2,862 N/A $572 $3,434 Carlsbad NOT CO P1 PARABL E Escondido " Vista " Lemon Grove " Imperial Beach San P1a rcos Del Mar " Coronado E1 Cajon City of San Diego " ^ f~ ~_ v v~ Item No. 27 For Meeting of 8/7/79 Page 3 In considering comparable agencies, La Mesa, Oceanside and San Diego County have staff whose responsibilities are similar to Chula Vista. National City and San Diego operate programs that are significantly different and a comparison of their programs would not be valid. The remaining cities do not have a program or receive assistance from the County to operate a rehabilitation program. Based on the above data, those agencies operating a program similar to Chula Vista have an average middle rate of $1,480 monthly and an average middle rate of $1,775 when fringe benefits are included. Mr. Ciotti's proposed salary is below the average by $180 per month and $475 below the average when fringe benefits are included. Salary Salary & Benefits County Average $1,480 $1,775 Mr. Ciotti's 1,300 1,300 Difference $ 180 $ 475 By approving a salary of $1,300, Council would be setting the rate at 13.8% below the middle average for cities in the County. Personnel has reviewed the above data and, based on this information, the salary recommended would fit acceptably within the overall salary plan of the City. v~' ~~