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Home My WebLink AboutHA23240A - RPM - Country Village Apts.6 Contract No.HA23240. 1 \ V., REQUEST: SUBMITTED BY: DATE: PALM DESERT HOUSING AUTHORITY STAFF REPORT RATIFY THE EXECUTIVE DIRECTOR'S APPROVAL OF AN AGREEMENT FOR PROPERTY MANAGEMENT SERVICES BY AND BETWEEN THE PALM DESERT HOUSING AUTHORITY AND RAY, DOUGLAS, ANN, AND PATRICK INC., A.K.A. RPM COMPANY, FOR COUNTRY VILLAGE APARTMENTS JANET M. MOORE, HOUSING AUTHORITY ADMINISTRATOR JUNE 22, 2006 CONTENTS: MEMO TO EXECUTIVE DIRECTOR, DATED JUNE 1, 2006 LETTER FROM RPM COMPANY, DATED JUNE 8, 2006 Recommendation: By Minute Motion, that the Authority Commission ratify the Executive Director's approval of an agreement with RPM Company in the amount of $2,500 per month plus ten percent supervision fee on all Agency approved replacements and capital repair costs associated with Country Village Apartments. Funds are available in Account No. 871-8691-466-3093. Executive Summary: Approval of this request will authorize management services of Country Village Apartments by RPM Company until staff can determine what alternatives are available as to the property's disposition. Discussion: On September 30, 2005, the Palm Desert Redevelopment Agency closed escrow on the 66-unit apartment complex known as Country Village Apartments. The Palm Desert Housing Authority is authorized to operate the Agency's properties and contracts with RPM Company to manage the day-to-day operations at each complex. On October 24, 2005, the Executive Director approved a separate agreement for a three- month term with automatic month -to -month renewals with RPM Company for the management services at Country Village. This short-term agreement was approved in order to facilitate the management services needed until the condition of Country Village Apartments has been assessed, which will ultimately establish the role of RPM. Currently, the Executive Director has the authority to amend the Exhibits to the existing Management Agreement with RPM by mutual written agreement of both parties. Due to unknown disposition of the property, staff wishes to maintain a separate agreement for this property only. Staff Report Ratify RPM Company Contract for Management Services for Country Village Apts. Page 2 of 2 June 22, 2006 Staff recommends approval of the management services agreement for Country Village Apartments with RPM Company in the amount of $2,500 per month plus ten percent supervision fee, until such time the future of the complex has been determined. Submitted by: J. net . Moore H••sing Authority Administrator JMM:VT:mh Approval: Carlos L. Orte Executive Dir=ctor Department Head: Dave Yn Directory Redevelopment/Housing Paul . C#ibson,ector of Finance PALM DESERT HOUSING AUTHORITY MEMORANDUM TO: CARLOS L. ORTEGA, EXECUTIVE DIRECTOR FROM: JANET MOORE, HOUSING ADMINISTRATOR DATE: JUNE 1, 2006 SUBJECT: COUNTRY VILLAGE MANAGEMENT At this time, RPM is approved to provide Management for Country Village through the middle of June 2006. In order to continue to allow RPM to manage this property on a temporary basis, an additional request needs to be made to authorize the attached proposal to continue on a month -to -month basis. The existing Management Agreement (Contract No. HA23240) with RPM allows the Exhibits to be amended by written agreement of the Executive Director and RPM. However, because of the unknown disposition of the property, staff desires to maintain a separate contract for Country Village Management. This approval will allow RPM to carry out their services. Staff will be seeking approval of Housing Authority to ratify this approval at its June 22, 2006 meeting until it is determined what role RPM will ultimately play and a more permanent management agreement can be made. RPM proposes to continue the original request of a flat fee of $2,500 per month and a 10% supervision fee for all Agency approved replacements and capital repair costs. Reviewed and Approved Carlos L. Ortefid JMG:jmg G:IRDA Jessica Gonzales\Wpdata\JMMIRPM\Country Village Apts, Memo to Carlos.060106.wpd 06/08/2006 15:19 9094832685 RPM COMPANY PAGE 02 rpm ONPANr apartment Management services June 8, 2006 Janet Moore, Housing Administrator City of Palm Desert Redevelopment Agency 73-510 Fred Waring Drive Palm Desert, CA 92260 Re: Country Village Apartments Dear Janet: Via FAX (760) 341-6372 & Mail Palm Desert Housing Authority has advised that the disposition of Country Village Apartments has not yet been determined. Therefore, RPM Company will continue to manage the property pursuant to our October 18, 2005 letter, with the exception that we are currently on a. month -to - month agreement. Based on the October 18, 2005 letter, our current management fee is $2,500 per month, on a month -to -month basis, however, either side shall have the option of ending the contract at any time with a Thirty (30) day written notice. Additionally, it has been agreed that RPM Company is receiving a 10% supervision fee of all Agency approved Replacement Expenditures/Capital Budget for deferred maintenance issues. As previously discussed, due to the excessive negligence of the property management by the previous ownership, and the current resident profile, we believe there is a clear and present potential for liability at Country Village Apartments and with all fee management the liability is the responsibility of the owner. Therefore, RPM Company is requesting that the Palm Desert Housing Authority continue to cover the liability insurance under the umbrella of the City of Palm Desert. RPM Company's insurance will continue to encompass Errors and Omissions coverage for all RPM Company employees working at Country Village Apartments. Please feel free to contact me if y•. have any questions. Ji + y V e esident cc: Donnie Garibaldi, President Teresa Vakili, Regional Property Supervisor LIVE TI4E DIFFEREN C E REGIONAL OFFICE 3400 inland empire bled. • suite #220 onfario, ca 91784 909 483 0348 • tax 909 4832685