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HomeMy WebLinkAboutSR - HA Properties Mgmt SvcsREQUEST: SUBMITTED BY: DATE: Recommendation: PALM DESERT HOUSING AUTHORITY STAFF REPORT RATIFICATION OF AN ADJUSTMENT TO THE MANAGEMENT FEE PURSUANT TO SECTION C-27 (IV) OF THE 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 (HA 25970) JANET M. MOORE, HOUSING AUTHORITY ADMINISTRATOR APRIL 26, 2007 By Minute Motion, that the Housing Authority ratify an adjustment to the management fee pursuant to the agreement for management services (HA 25970) by and between the Palm Desert Housing Authority and Ray, Douglas, Ann, and Patrick Inc., a.k.a. RPM Company from $33 to $34 per door. By Minute Motion, that the Housing Authority continue approval of management services for Country Village Apartments (HA 23240A) in the amount of $2,500 per month plus ten percent supervision fee on all Agency approved replacements and capital repair costs. Executive Summary: RPM Company has been the professional service provider for the management of the Housing Authority's properties since 1998. Annually, staff conducts an evaluation of their performance for the purposes of ensuring they are meeting the Authority's goals, as well as, meeting the requirements of their contract. Their performance based on a tour and physical condition of the properties, overall property management including the affordable compliance, and tenant input justifies an increase from $33 to $34 per unit for management services. Discussion: On November 16, 2006, the Palm Desert Housing Authority approved a new 24-month professional services contract with RPM Company for property management services of the nine affordable housing rental properties owned by the Agency (Contract No. HA25970). The management contract provides for day-to-day management and operation of the properties, including but not limited to, certifying tenants on the affordable housing program, recordkeeping, leasing, and overall maintenance and repairs of the property. Staff Report Ratification of Adjustment to Management Fee — RPM Company Contract (HA 25970) Page 2 of 2 April 26, 2007 Staff measured RPM Company's performance based on a tour and physical condition of the properties, overall property management including the affordable compliance, and tenant input. Under the scope of the agreement, the Authority is required to advise RPM Company of the approved management fee increase by May 1 of each year. Based on the results of the property tour, the survey of tenants and the level of management, staff recommends amending the fee from $33 to $34, a $1 per door increase, effective July 1, 2007, and herein request ratification thereof. Excluded from contract (Contract No. HA25970) with RPM Company is the management service for Country Village Apartments. On June 22, 2006 the Palm Desert Housing Authority approved a separate agreement (Contract No. HA23240A) for the property management services at Country Village. Staff recommends that we 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, until which time the disposition of the property is determined. Submitted by: Jfa M. Moore ousing Authority Administrator JMM:VT:mh Approval: cCarthy, r Redevel Carlos L. Orta Executive Di ctor Dave Yrigoy Director edevelopment/Housing Paul S. Gibson, Director of Finance 3Dr°Ve BY HOUSG AUTH ON VERIFIED BY: Original on file with City Clerk's Office a-rrIsAVo nnarn TaniiaillakinnlFiKmoUttaff Pore toStPltA A'nmAr A Alowag nww MAW, nm'x me MA* eikr