HomeMy WebLinkAboutSR - HA25970 - RPM Mgmt Fee AdjstmntREQUEST:
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, DIRECTOR OF HOUSING
APRIL 24, 2008
By Minute Motion, that the Housing Authority Board:
1. 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 $34
to $35 per door.
2. Approve continuation of management services for Country Village Apartments (HA
23240A) in the amount of $750 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 staff tour
and physical condition of the properties, overall property management including the
affordable compliance, and tenant input justifies an increase from $34 to $35 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 24, 2008
This year, staff measured RPM Company's performance based on a staff 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
staff property tour, the survey of tenants and the level of management, staff recommends
amending the fee from $34 to $35, a $1 per door increase, effective July 1, 2008, 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 contract
at a reduced fee of $750 per month and a 10°10 supervision fee for all agency approved
replacements and capital repair costs, until such time as the disposition of the property is
determined.
Submitted by:
Janet M. Moore
Director of Housing
JMM:VT
Approval:
J _ n cCarthy,
r Redevelopmen
Carlos L. Ort
Executive Director
ave Yrigoyen
Director of R velopment/Housing
Paul S. Gibson, Director of Finance
G \rda\Veronica Tapia\Word Files\Staff Reports\RPM Contract Approve Dollar Increase 08-09 doc
RECEIVED
COMPANY
apartment management services
March 31, 2008
Janet Moore, Director of Housing
City of Palm Desert Redevelopment Agency
73-510 Fred Waring Drive
Palm Desert, CA 92260
Re: Country Village Apartments
Dear Janet:
1' r+
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Palm 1Jeset RDA
Via FAX (760) 341-6372 & Mail
Per our conversation, RPM Company will continue managing and maintaining Country Village
Apartments on a month -to -month basis, agreeing that either side shall have the option of ending
the contract at any time with a Thirty (30) day written notice. As you know, our current
management fee is $2,500 per month. Our management fee will convert to $750 per month once
all of the residents have been relocated and the property is 100% vacant. RPM Company will
continue to maintain the property's landscaping and curb appeal as directed be the Palm Desert
Housing Authority, and will supply administrative and accounting services for applicable
expenses approved in the 2008 operating budget.
As previously agreed, the Palm Desert Housing Authority will 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 you have any questions.
Ji. Foley
Vice President
cc: Donnie Garibaldi, President
Teresa Vakili, Regional Property Supervisor
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