HomeMy WebLinkAboutSR - HA25970 - RPM Co. Mgmt SvcsContract No. HA25970
PALM DESERT HOUSING AUTHORITY
STAFF REPORT
REQUEST: APPROVE AGREEMENT FOR MANAGEMENT SERVICES BETWEEN
THE PALM DESERT HOUSING AUTHORITY AND RAY, DOUGLAS, ANN
AND PATRICK, INC., A.K.A. RPM COMPANY
SUBMITTED BY: JANET M MOORE, HOUSING AUTHORITY ADMINISTRATOR
DATE: NOVEMBER 16, 2006
CONTENTS: AGREEMENT
Recommendation:
By Minute Motion that the Housing Authority:
1) Approve the Agreement for Management Services ("Agreement") by and
between the Palm Desert Housing Authority and Ray, Douglas, Ann, and
Patrick, Inc., a.k.a. RPM Company, effective January 1, 2007, substantially
as to form;
2) Authorize the Executive Director to finalize the Agreement;
3) Authorize the Chairman to execute the finalized Agreement.
EXECUTIVE SUMMARY:
Authority approval will authorize the Agreement with RPM Company for 24 months, effective
January 1, 2007. RPM has been the Authority's contracted property management company since
January of 1998. As the Agency has acquired additional properties, RPM has assumed the
management company role and have assisted in the initial cleanup and repair of those units. This
Agreement will extend their contract for an additional 2 year period which is in compliance with
existing tax laws applicable to the bond issue used to purchase these properties. Authority denial
will leave the Authority without a contract for property management services effective January 1,
2007.
DISCUSSION:
The management contract provides for the day-to-day management and operation of the
properties, including but not limited to, record keeping, leasing, and overall maintenance and
repairs. This Agreement is for a period of 24 months ending in December 2008. Staff measures
RPM Company's performance by both day-to-day management and a survey that is mailed to all
Housing Authority property tenants annually. Results of the survey are compiled and reviewed by
the Housing Commission. The Housing Commission and members of the Council tour and inspect
the properties annually. The properties continue to be well maintained and operated in a
G:,RDA`Jessica Gonzales.HOUSING AGREEMENTSPROPERTY MANAGEMENDRPM\STAFFRPRT-Management Agreement 2007-2008 wpd
Contract No. HA25970
Paul Gibson, Director of Finance
Staff Report
RPM Management Agreement
November 16, 2006
Page 2 of 2
professional manner. RPM has been able to administer the affordable program, maintain the
properties in excellent condition and balance the revenues and expenditure so the Agency, up to
this point, has only had an obligation of debt service on the bond issue used to purchase these
properties from 20% set -aside monies. In previous years, the properties had positive net incomes,
such incomes are now being used to offset the recent years' deficits created primarily due to the
large renovation projects currently underway. RPM continues to comply with our affordable
program and has amended management procedures as necessaryfor our stipulated requirements
when they have been requested to do so.
The body and content of the Agreement is substantially the same as the previously approved
agreement with the exception of those certain Sections where laws have changed or additional
clarification is needed to memorialize contract requirements already in place. The current
management fee RPM receives is $33 per door per month. The maximum allowable per door fee
by the end of this agreement is $35, which is still well within the industry standard for management
services. The agreement provides for a periodic annual increase at the Authority's sole and
absolute discretion, in an amount not to exceed $1 per unit per month effective July 1 of each
calendar year.
The subcommittee will again be asked to tour the properties early next year. Staff will continue to
work closely with RPM Company to ensure that repairs, replacements, and overall property
maintenance are being adequately addressed, and that RPM is being responsive to tenant needs
and concerns in a timely manner.
Staff recommends approval and authorization for the Chairman to execute 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, effective January 1, 2007. The Housing Commission
reviewed this request on November 15, 2006 and is forwarding the request for final review and
action.
Submitted by:
J ne . Moore
Housing Authority Administrator
JMM:jmg
ApRroval: /
�.r
Department Head:
ave Yr' . • en
Direct' r •f Redevelopment/Housing
rv--- i �crir
hy, A , ed= elopment Carlos Orteg , Executive Director
Y HOUSG AUTH
ON 11—i+(2
G RDA Jessica GonzalesDOI'SINGAGREEMENISPROPERTYMANAGEMENTRPMSIAFFRPRI-ManagementAgreemcMERlEID BY_ghti
r
Original on file with City Clerk's Office