HomeMy WebLinkAboutHA23240 RPM Company - Management Services $1.00 per Door Fee IncreaseREQUEST:
PALM DESERT HOUSING AUTHORITY
STAFF REPORT
AUTHORIZE A $1.00 PER DOOR MANAGEMENT FEE INCREASE
PURSUANT TO SECTION 27 (a) OF THE AGREEMENT FOR
MANAGEMENT SERVICES WITH RPM COMPANY
SUBMITTED BY: JANET M. MOORE, HOUSING AUTHORITY ADMINISTRATOR
DATE: APRIL 14, 2005
Recommendation:
By Minute Motion, that the Housing Authority Board authorize a $1.00 per door
management fee increase pursuant to Section 27 (a) of the agreement for
management services by and between the Palm Desert Housing Authority and Ray,
Douglas, Ann, and Patrick Inc., a.k.a. RPM Company.
Executive Summary:
RPM Company has been monitoring the Housing Authorities Properties since 1998. Annually staff
conducts an evaluation of their performance in order to determine the appropriate per door increase
to their contract. Pursuant to Section 27 (a) of the Management Agreement, the Housing Authority,
at its sole and absolute discretion , may increase the management fee annually by up to $1.00 per
door. Staff recommends based on RPM's performance, a tour of the properties, and the physical
condition of the properties, that a $1.00 per door increase is appropriate.
Discussion:
On December 9, 2004, the Palm Desert Housing Authority approved a new 24 month contract with
RPM Company for property management services of the nine affordable housing rental properties
owned by the Agency. The management contract provides for day-to-day management and
operation of the properties, including but not limited to leasing, annual certifications of tenant
incomes, and overall maintenance and repairs of the property.
Pursuant to Section 27 (a) of the Management Agreement, the Housing Authority, at its sole and
absolute discretion , may increase the management fee annually by up to $1.00 per door based on
performance. Staff measured RPM Company's performance; by the results of a survey that was
mailed to all Housing Authority Property tenants, by personal observation of the overall daily property
appearance, and the quality of the property management itself.
The Housing Commission, three council members, and city staff toured and inspected each property
on March 4, 2005. The tour visited all 9 properties and included the two acquired properties to be
rehabilitated, California Villas and Laguna Palms. These two properties are currently undergoing
interior repairs and are in the design and construction document phase for exterior renovations. The
results of that tour were positive and only a few minor recreational improvements were suggested.
G \RDA\Beth Longman\Staff Reports\Janet\RPM Fee Increase doc
Staff Report
RPM Company Fee Increase
April 14, 2005
Page 2
Section 27 (a) of the agreement also provides that the Agency is required to advise RPM Company
of the approved management fee by May 1 of each year for the following fiscal year. A $1.00
increase equates to an approximate increase of $11,000 annually. At its regular meeting of April 13,
2005, the Palm Desert Housing Commission reviewed the increase.
Informally, staff has had the opportunity to inquire as to the management fees charged by other
companies providing management at similar affordable complexes in the valley. The new fee of $32
per door is similar to or below that of other firms. Based on the results of the property tour, the
survey of tenants, and the level of management, staff recommends a $1.00 per door increase
effective July 1, 2005, and herein request approval thereof.
Submitted by:
Janet M. Moore, Housing Authority Administrator Dave Yrigoyen, Director of Redevelopment
Approval:
Justin McCarthy, ACM Redevelopment Paul Gibson, Director of Finance
Carlos L. Ortega, Executive Director
G \RDA\Beth Longman\Staff Reports\Janet\RPM Fee Increase doc