HomeMy WebLinkAboutR28770 - Full Replacement Reserve Study PALM DESERT REDEVELOPMENT AGENCY/
PALM DESERT HOUSING AUTHORITY
JOINT CONSIDERATION
STAFF REPORT
REQUEST: AUTHORIZATION TO NEGOTIATE A PROFESSIONAL SERVICES
CONTRACT WITH ASSOCIATION RESERVES, INC. FOR THE
PURPOSE OF CONDUCTING A REPLACEMENT RESERVE STUDY IN
AN AMOUNT NOT TO EXCEED $49,250.
CONSULTANT: ASSOCIATION RESERVES, INC.
P.O. BOX 8637
CALABASAS, CA 91372
SUBMITTED BY: JANET M. MOORE, DIRECTOR OF HOUSING
DATE: APRIL 9, 2009
CONTENTS: CONTRACT NO. R28770
Exhibit A— Scope of Services
Exhibit B — Schedule
Exhibit C — RFP
Exhibit D — Consultant's Proposal
Exhibit E — Designated Properties
Recommendation:
By Minute Motion that the Agency and Authority Boards:
1) Authorize staff to negotiate a professional services contract with Association
Reserves, Inc. in an amount not-to-exceed $49,250; and
2) Authorize the Executive Director to finalize and the Chairman to execute the
contract and any documents necessary to conduct the replacement reserve
study. Funds are available in the Housing Authority's Professional Services
budget.
Executive Summary:
Staff is requesting authorization to enter into a contract with Association Reserves, Inc., to
conduct a full replacement reserve study for certain Housing Authority properties. The study
will provide the Agency with a complete listing of physical assets of each designated property,
including their condition, value, replacement cost and a replacement schedule.
The study will also include a thirty (30) year funding plan that the Agency will use as a long-
range budgeting guide for reserves, as well as a guideline for expected replacements and
deferred maintenance. The Agency will use the study's results to prepare a funding plan for the
Reserve Fund.
Staff Report
Authorize a professional services contract with Association Reserves, Inc.
April 9, 2009
Page 2 of 3
Background:
Purpose:
As part of the 2008-2009 budget process, staff was directed to complete a replacement reserve
study for the Housing Authority properties. The purpose of the study was to be able to prepare
a realistic funding plan for reserves as opposed to the standard per unit reserve funding
established by the Department of Housing and Urban Development of $250 annually. The
funding plan that will be recommended based on the outcome of the study will include an
annual per unit amount to be set-aside in a pooled Reserve Fund for future deferred
maintenance.
The additional benefits of the study will be a complete up-to-date inventory which includes the
condition, value, replacement cost, and replacement schedule of physical assets of each
property. The study includes twelve of the Agency's fourteen properties (1,011 units). The two
properties not included are properties which are currently undergoing deconstruction or
condition assessment (Country Village and Sagecrest). The study will serve as a long-term
planning tool.
Method of Consultant Selection:
Staff prepared a Request for Proposals (RFP) to identify qualified consultants to prepare the
study. In addition to the public notice, staff did outreach to members of the Community
Associations Institute, first to the Coachella Valley Chapter and then to the broader Orange
County and San Diego Chapters. The RFP identified the proposed scope of services as well
as estimated timeframes.
The selection criteria was identified in the RFP which included past reserve study experience,
work with a public housing authority, preparation of key components of the study (inventory,
property reports, digital access, etc.), and capacity to perform services in the expected time
frame. Staff then scored the consultants on the established qualification points.
Eighteen (18) total points were possible based on the selection/qualification criteria. Seven
proposals were received and evaluated based on the criteria:
Consultant City Points
Sonnenberg and Company San Diego 11
Reserve Data Analysis Costa Mesa 10
Association Reserves, Inc. Calabasas 18
PMC Rancho Cordova 13
McCaffery Consulting La Jolla 12
Diversified Facility Services Laguna Niguel 11
On-Site Insight, Inc. Needham', MA 16
Staff Report
Authorize a professional services contract with Association Reserves, Inc.
April 9, 2009
Page 3 of 3
The RFP also requested an estimate of fees based on the RFP scope of services. Only the
two most qualified consultants included all the RFP's listed services and were therefore
considered to have responded appropriately to the RFP. Because of this, only the estimated
fees for the two most qualified were considered as part of the overall evaluation:
Consultant Estimated Fee Additional Costs
Association Reserves, Inc. $49,250 Fixed Fee, no additional costs
On-Site Insight, Inc. $51,000 Fixed Fee, no additional costs
In addition to the RFP listed services, both consultants offer the report data online. Association
Reserves, Inc. further offers the analysis file in Excel providing the Agency with an added tool
for the Funding Plan.
Conclusion:
Staff therefore recommends that the Agency and Authority Boards authorize the negotiation of
a professional services contract with Association Reserves, Inc. in an amount not-to-exceed
$49,250. Staff estimates that the first draft of the Reserve Study shall be provided within eight
weeks of the Notice to Proceed, although the final schedule will be negotiated with the contract.
Staff will then bring back a recommended funding and implementation plan based on the study.
Submitted by: Department Head:
Jan M. oore /l rigoyen
Director of Housing Director of Redevelopment/Housing
Approval:
Jusyr10 t Carthy, ACM 'ede elopment Paul S. Gibson, Director of Finance
John M. Wohlmuth, Executive Director
�_� rou BY HOUSG AUTH �'i
W7A/e1-1 BY RDA ON 11 11 vl , , cog
ON A ( Itq (9'-) pr
n VERIFIED BY: I C
VERIFIED BY K ( I 1
Original on file with Cit Jerk's Office
Original on file with City erk's Office
G:\rda\Patty Leon\JMM\staff report\Associates Reserve Inc.040909.doc
Contract No. R28770
AGREEMENT FOR PROFESSIONAL SERVICES
This AGREEMENT is made and entered into this day of , 2009,
("Effective Date") by and between the PALM DESERT REDEVELOPMENT AGENCY
("Agency") and ASSOCIATION RESERVES, INC., a ("Consultant")
(sometimes referred to individually or collectively as "Party" or "Parties").
WITNESSETH
WHEREAS, Agency desires to retain Consultant as an independent contractor to
perform certain technical and professional consulting services in connection with the 2009
Palm Desert Housing Authority Replacement Reserve Study project, subject to the terms
and conditions specified below, in the documents attached and incorporated herein, and
applicable federal, state and local law.
NOW, THEREFORE, in consideration of performance by the Parties of the mutual
promises, covenants, and conditions herein contained, the Parties hereto agree as follows:
1. Consultant's Services.
1.1 Nature of Services. Consultant shall provide professional and
technical services on a non-exclusive basis, as more particularly described in Section 3,
below, and in Exhibit A, Scope of Services.
1.2 Personnel. Consultant represents that it has, or will secure at its own
expense, all personnel required to perform the services under this Agreement. All of the
services required under this Agreement will be performed by Consultant or under its direct
supervision, and all personnel engaged in the work shall be qualified, and shall be
authorized or permitted under state and local law to perform such services.
1.3 Standard of Performance. Consultant shall perform all services under
this Agreement in accordance with the standard of care generally exercised by like
professionals under similar circumstances and in a manner reasonably satisfactory to
Agency.
1.4 Consultant Representative. For the purposes of this Agreement, the
person who will serve as the Consultant Representative shall be Jim Nash, Director of
Operations ("Consultant Representative").
1.5 Time of Commencement. The execution of this Agreement by the
Parties does not constitute an authorization to proceed. A separate written Notice to
Proceed shall be issued by the Agency Representative, and Consultant shall not
commence work until receipt of such written Notice(s) to Proceed, as further set forth in
Sections 2 and 3, below.
1.6 Time of Performance/Time is of the Essence. Consultant shall
commence the services contemplated under this Agreement immediately upon receipt of a
written Notice to Proceed from the Agency, and shall prosecute to completion each task
listed in Section 3 in a timely and diligent manner in accordance with the schedule
appended to this agreement as Exhibit B.
Professional Services Agreement—Agency—V.1
Contract No. R28770
2. Services by Agency:
2.1 Agency Representative. For the purposes of this Agreement, the
Agency Representative shall be Janet Moore, Director of Housing, or such other person
designated by the Agency's Executive Director ("Agency Representative").
2.2 Provision of Data. All information, data, reports and records and maps
that may be available as existing from the Agency and necessary for the carryings out of
the work outlined in Exhibit "A" hereof shall be furnished to Consultant without charge by
Agency, and Agency shall cooperate in every way reasonable in the carrying out of the
work without delay. Nothing herein shall imply that such information, data, reports, records
or maps are available.
3. Consultant's Scope of Work. Upon delivery by Agency to Consultant of a
written Notice to Proceed, Consultant shall immediately commence work pursuant to this
Agreement. Consultant's scope of work ("work") shall consist of the services in Exhibit A,
the schedule of performance described in Exhibit B, the services and requirements
identified in the Request for Proposals (RFP) Exhibit C, and the services provided in the
Consultant's proposal in Exhibit D appended to this Agreement.
3.1 Reporting & Record Keeping. To assist Agency in the performance of
its planning, reporting, and financial administration obligations, Consultant shall, throughout
the term of this Agreement, keep Agency reasonably informed of progress on work required
under this Agreement, and of any problems or delays, anticipated or otherwise, associated
with each aspect of the work. Consultant shall promptly respond to any request by Agency
for information, progress reports, or documentation. Consultant shall maintain accurate
records of all work performed for each Assignment under this Agreement, including but not
limited to originals or copies, as applicable, of all deliverable documents described in
Exhibit A. Upon the completion of work, and if requested by the Agency, Consultant shall
deliver to Agency the originals of all renderings, models, or documentation produced, and
may retain copies of such documentation, at Consultant's election.
3. 2 Compliance with Laws. Consultant shall at all times possess any and
all licenses and permits necessary to provide the services herein, and shall comply with
applicable federal, state and local laws, ordinances, codes and regulations in the
performance of this Agreement, and with any and all applicable City of Palm Desert, Palm
Desert Redevelopment Agency and Palm Desert Housing Authority policies and guidelines.
3.3 Confidentiality. Except as otherwise permitted or required by law,
Consultant shall maintain as confidential and shall not disclose any and/or all information
received in the course of performing pursuant to this Agreement. Consultant shall promptly
inform the Agency in the event Consultant receives a subpoena or court order requiring
disclosure of confidential information.
4. Agency Entities. References to Agency, its employees and its officers shall
include, as parties covered by this agreement, the City of Palm Desert ("City) its employees
and officers and the Palm Desert Housing Authority ("Authority") and its employees and
officers.
5. Compensation. Agency shall pay Consultant for the Services provided
under this Agreement on the following basis.
2
Contract No. R28770
5.1 Not-to-Exceed Fee: Agency shall pay to Consultant a total amount not
to exceed Forty nine thousand two hundred fifty dollars and no/100 ($49,250) for the
services described in Exhibit A. Payment shall be made in three installments as follows: 1)
Twenty four thousand six hundred twenty five dollars and no/100 ($24,625) payable
upon completion of all site inspections, 2) Nineteen thousand seven hundred dollars
and no/100 ($19,700) payable upon completion and presentation of the draft report to the
Agency either digitally or in hard copy, and 3) a final payment of up to four thousand nine
hundred twenty five dollars and no/100 ($4,925) adjusted for actual work performed,
upon presentation of the final report. The not-to-exceed fee shall not be exceeded without
written agreement between the parties.
5.2 Additional Services: Agency shall not be obligated to compensate
Consultant for additional services performed which are not included in Exhibit A without
advance authorization from the Agency Representative. Such authorization shall only be
considered if such services can be performed within the not-to-exceed contract amount.
5.3 Reimbursable Expenses: Consultant has proposed a 'fixed fee' for
services and no additional costs incurred on behalf of the project for long distance
telephone calls, reproduction, express delivery and courier services, postage, mileage,
meals, or out-of-town travel shall be reimbursed as part of the contract.
5.4 Extraordinary Expenses/Costs. No claims for additional services,
expenses or costs incurred by Consultant will be allowed unless such additional services,
expenses or costs are authorized by Agency in writing prior to the performance or
incurrence of such services, expenses or costs. Any additional services, expenses or costs
authorized by Agency shall be compensated at rates mutually agreed upon by the Parties
in writing.
6. Method of Payment.
6.1 Invoices. Consultant shall submit to Agency invoices as set forth in
Section 5. Agency shall review such invoices and notify Consultant in writing within fifteen
(15) calendar days of any disputed amounts.
6.2 Payment. Agency shall pay all undisputed portions of the invoice
within thirty (30) calendar days after receipt of the invoice up to the maximum amounts set
forth in Section 5.
7. Ownership of Work Product.
7.1 Property of Agency. All documents including but not limited to plans,
bids, proposals, correspondence, permits, certificates, contracts, change orders, invoices,
receipts, reports, analyses or other written, electronic, or digital material developed or
obtained by Consultant in the performance of this Agreement, including any and all
intellectual property rights arising therefrom ("Work Product"), shall be and remain the
property of Agency without restriction or limitation upon its use or dissemination by Agency.
Promptly upon the completion of each Assignment, or at any other time upon reasonable
notice to Consultant by Agency, Consultant shall deliver all Work Product to Agency. Work
Product which is produced and/or accessed digitally or over the internet shall be provided
to the Agency in a storable digital format or remain available and accessible for a period of
not less than five (5) years from the date of the completion of such Work Product.
3
Contract No. R28770
7.2 Re-Use of Work Product. Agency and Consultant agree that all
documents, other than invoices, prepared by Consultant pursuant to this Agreement shall
be used exclusively by the Agency for the subject project. Such material shall not be the
subject of a copyright application by Consultant. In accordance with this section, the
Agency acknowledges that the Agency may re-use such Work Product for budgeting and
long-range planning on the project for which they were prepared, such re-use shall be at
the sole risk of Agency unless Agency compensates Consultant for such reuse.
8. Conflict of Interest/Prohibited Conduct and Interests
8.1 Conflict of Interest. Consultant and its officers, employees, associates
and sub consultants, if any, will comply with all conflict of interest statutes of the State of
California applicable to Consultant's services under this Agreement, including, but not
limited to, the Political Reform Act (Government Code Sections 81000, et seq.) and
Government Code Section 1090. During the term of this Agreement, Consultant shall
retain the right to perform similar services for other clients, but Consultant and its officers,
employees, associates and sub consultants shall not, without the prior written approval of
the Agency Executive Director, perform work for another person or entity for whom
Consultant is not currently performing work that would require Consultant or one of its
officers, employees, associates or sub consultants to abstain from a decision under this
Agreement pursuant to a conflict of interest statute.
8.2 No Solicitation. Consultant, on behalf of itself and its officers,
employees, agents and representatives, warrants that it has not employed or retained any
company or person, other than a bona fide employee working solely for Consultant, to
solicit or secure this Agreement, and that it has not paid or agreed to pay any company or
person, other than a bona fide employee working solely for Consultant, any fee,
commission, percentage, brokerage fee, gifts, or any other consideration, contingent upon
or resulting from the award or making of this Agreement. For breach or violation of this
warranty, Agency shall have the right to terminate this Agreement without notice or liability,
or in its discretion to deduct from the contract price or consideration, or otherwise recover,
the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.
8.3 No Financial Interest - Agency. No officer, member or employee of
Agency during his or her tenure or one year thereafter shall have any interest, direct or
indirect, in this Agreement or the proceeds thereof. The Parties hereto covenant and
agree that to their knowledge no member of the Agency Board, or officer or employee of
Agency, has any interest, whether contractual, non-contractual, financial or otherwise, in
this Agreement, or the subject matter thereof, nor any business or financial relationship with
Consultant, and that if any such interest comes to the knowledge of either Party at any time
a full and complete disclosure of all such information will be made in writing to the other
Party or Parties, even if such interest would not be considered a conflict of interest under
applicable laws.
8.4 No Financial Interest — Consultant. Consultant hereby covenants, on
behalf of itself, and its officers, employees, agents and representatives, that at the time of
executing this Agreement it has no interest, and that it shall not acquire any interest in the
future, direct or indirect, which would conflict in any manner or degree with the performance
of services required to be performed pursuant to this Agreement. Consultant further
covenants that in the performance of this Agreement, no person having any such interest
4
Contract No. R28770
shall be employed by Consultant. At no time during the term of this Agreement, and for
one (1) year thereafter, shall Consultant or anyone acting on Consultant's behalf, accept
anything of value from any contractor or subcontractor performing services in connection
with the project.
9. Indemnification. Other than in the performance of professional services and
to the fullest extent permitted by law, Consultant shall indemnify, defend and hold the City,
Agency, Authority, and their elected officials, officers, employees, agents and volunteers
free and harmless from and against all tort liability, including liability for claims, suits,
actions, expenses or costs of any kind, whether actual, alleged or threatened, actual
attorney's fees, court costs, and expert witness fees incurred by City, Agency or Authority,
arising out of or in any way connected with, in whole or in part, the acts or omissions of
Consultant, or any of Consultant's officers, agents, employees or contractors, in the
performance of this Agreement, including but not limited to, claims, suits and liabilities for
bodily injury, death or property damage to any individual or entity, including employees or
officials of Consultant. The provisions of this paragraph shall not apply to claims arising out
of the sole negligence or willful misconduct of the City, Agency or Authority, or any of their
elected officials, officers, employees or agents.
In addition to the foregoing, Consultant shall indemnify, protect, defend and hold
harmless the City, Agency, and the Authority, their officials, employees, agents and
representatives from and against any and all losses, liabilities, damages, costs, and
expenses, including attorney's fees and costs to the extent same are caused in whole or in
part by any negligent or wrongful act, error, or omission of the Consultant, its officers,
agents, employees or sub-consultants (or any entity or individual that the Consultant shall
bear the legal liability thereof) in the performance of professional services under this
agreement.
10. Insurance.
Consultant will maintain insurance in conformance with the requirements set forth below. If
Consultant's existing coverage does not meet the requirements set forth here, it will be
amended to do so. Consultant acknowledges that the insurance coverage and policy limits
set forth in this section constitute the minimum amount of coverage required. Any insurance
proceeds available to Agency in excess of the limits and coverage required in this
agreement and which is applicable to a given loss, will be available to Agency.
10.1 Workers' Compensation and Employer's Liability. Consultant
shall provide Workers Compensation and Employer's Liability Insurance on an approved
policy form providing benefits as required by law with employer's liability limits no less that
$1,000,000 per accident or disease.
10.2 Professional Liability or Errors and Omissions. Professional
Liability or Errors and Omissions insurance as appropriate shall be written on a policy form
coverage specifically designed to protect against acts, errors or omissions of the
Consultant and "Covered Professional Services" as designated in the policy must
specifically include work performed under this agreement. The policy limit shall be no less
than $1,000,000 per claim and in the aggregate. The policy must "pay on behalf of' the
insured and must contain a provision establishing the insurer's duty to defend. The policy
retroactive date must be on or before the effective date of this agreement.
5
Contract No. R28770
10.3 Automobile Liability. Consultant shall provide auto liability
coverage with a limit of no less than $1,000,000 per accident. If Consultant owns no
vehicles, this requirement may be met through a non-owned auto endorsement to the CGL
policy.
10.4 Waiver. If the Consultant does not carry Worker's
compensation coverage, or if the Consultant will not operate any vehicles at any time within
the scope of the services in the agreement, provisions for these coverages may be waived
upon review and approval of the Agency's Risk Manager.
11. Status as Independent Contractor. Consultant is, and shall at all times
remain as to Agency, a wholly independent contractor. Consultant shall have no power to
incur any debt, obligation, or liability on behalf of Agency. Neither Agency nor any of its
officials, employees or agents shall have control over the conduct of Consultant or any of
Consultant's employees, except as set forth in this Agreement.
12. Non-Assignability; Subcontracting. Consultant shall not assign or
subcontract all or any portion of this Agreement without the Agency's prior, written consent.
Any attempted or purported assignment or sub-contracting by Consultant shall be null, void
and of no effect.
13. Non-Discrimination and Equal Employment Opportunity. In the
performance of this Agreement, Consultant shall not discriminate against any employee,
subcontractor, or applicant for employment because of race, color, creed, religion, sex,
marital status, national origin, ancestry, age, physical or mental disability, medical
condition, or sexual orientation. Consultant will take affirmative action to ensure that
subcontractors and applicants are employed, and that employees are treated during
employment, without regard to their race, color, creed, religion, sex, marital status, national
origin, ancestry, age, physical or mental disability, medical condition, or sexual orientation.
This clause shall be included in any contract prepared or approved by Consultant in
connection with performance of its services under this Agreement.
14. Cooperation. In the event any claim or action is brought against Agency,
Authority or City relating to Consultant's performance or services rendered under this
Agreement, Consultant shall render any reasonable assistance and cooperation, which
Agency, Authority or City might require.
15. Termination. The right is reserved by the Agency to terminate the
Agreement at any time upon seven (7) days written notice, in the event the project is to be
abandoned or indefinitely postponed, or in the event the Consultant's services, in the sole
judgment of Agency, are unsatisfactory or because of the Consultant's failure to prosecute
the work with diligence and coordination or within the time limits specified or because of his
disability or death. In any such case, the Consultant shall be paid the reasonable value of
the services rendered, based upon Consultant's standard hourly rates, up to the time of the
termination. The Consultant shall keep adequate records to substantiate costs and provide
copies of original timecards in the event of termination or suspension.
16. Notices. Any notices, bills, invoices, or reports required by this Agreement
shall be given by first class U.S. mail or by personal service. Notices shall be deemed
6
Contract No. R28770
received on (a) the day of delivery if delivered by hand or overnight courier service during
Consultant's and Agency's regular business hours or by facsimile before or during
Consultant's regular business hours; or (b) on the third business day following deposit in
the United States mail, postage prepaid, to the addresses heretofore set forth in the
Agreement, or to such other addresses as the Parties may, from time to time, designate in
writing pursuant to the provisions of this section. All notices shall be delivered to the
Parties at the following addresses:
Agency: John Wohlmuth, Executive Director
Palm Desert Redevelopment Agency
73-510 Fred Waring Drive
Palm Desert, California 92260-2578
Tel: (760) 346-0611
Fax: (760) 341-6372
With a copy to: Janet Moore, Director of Housing
Palm Desert Redevelopment Agency
73-510 Fred Waring Drive
Palm Desert, California 92260-2578
Tel: (760) 346-0611
Fax: (760) 341-6372
Consultant: Jim Nash, Director of Operations
Association Reserves, Inc.
P. O. Box 8637
Calabasas, CA 91372
Tel: (800) 733-1365
Fax: (800) 733-1581
17. Non-Waiver of Terms, Rights and Remedies. Waiver by either Party of any
one or more of the conditions of performance under this Agreement shall not be a waiver of
any other condition of performance under this Agreement. In no event shall the making by
Agency of any payment to Consultant constitute or be construed as a waiver by Agency of
any breach of covenant, or any default which may then exist on the part of Consultant, and
the making of any such payment by Agency shall in no way impair or prejudice any right or
remedy available to Agency with regard to such breach or default.
18. Attorney's Fees. In the event that either Party to this Agreement shall
commence any legal action or proceeding for damages for breach, or to enforce or interpret
the provisions of this Agreement, the prevailing party in such action or proceeding shall be
entitled to recover its costs of suit, including reasonable attorney's fees and experts' costs.
19. Exhibits; Precedence. All documents referenced as exhibits in this
Agreement are hereby incorporated in this Agreement. In the event of any material
discrepancy between the express provisions of this Agreement and the provisions of any
document incorporated herein by reference, the provisions of this Agreement shall prevail.
7
Contract No. R28770
20. Entire Agreement. This Agreement, and any other documents incorporated
herein by specific reference, represents the entire and integrated agreement between
Consultant and Agency. This Agreement supersedes all prior oral or written negotiations,
representations or agreements. No promise or representation, whether oral or written,
express or implied, that is not set forth herein, shall be binding or have any force or effect.
This Agreement may not be amended, nor any provision waived, except in a writing signed
by the Parties which expressly refers to this Agreement.
21. Partial Invalidity. In case any provision of this Agreement should be
deemed by a court of competent jurisdiction to be invalid, illegal or unenforceable in any
respect, the validity, legality or enforceability of the remaining provisions shall not be
affected or impaired thereby.
22. Successors. This Agreement shall bind and inure to the benefit of the
respective heirs, personal representatives, successors and assigns of the parties to this
Agreement.
23. Waivers. - No waiver of any breach or default of any term or provision of this
Agreement shall be deemed a waiver of any other term or provision of this Agreement, and
no waiver shall be valid unless in writing and executed by the waiving party.
24. Construction. Section headings in this Agreement are solely for the
convenience of the parties and are not a part of and shall not be used to interpret this
Agreement. This Agreement shall not be construed as if it had been prepared by one of
the parties, but rather as if both parties have prepared it. Unless otherwise indicated, all
references to Sections ace to this Agreement. All exhibits to this Agreement are hereby
incorporated by reference.
25. In case of conflicts within the contract documents, the document precedence
shall be as follows:
(a) This Agreement
(b) Exhibit A -- Scope of Services
(c) Exhibit C -- Request for Proposals for Replacement Reserve Study
Consultants dated January 27, 2009
(d) Exhibit D — Proposal submitted by Consultant for RFP identified in
25(c).
(REMAINDER OF PAGE INTENTIONALLY LEFT BLANK)
8
Contract No. R28770
IN WITNESS WHEREOF, said parties have executed this Agreement effective as of
the Effective Date above.
ASSOCIATION RESERVES, INC.
By:
Its:
By:
Its:
PALM DESERT REDEVELOPMENT AGENCY
Chairman
ATTEST:
Rachelle D. Klassen, Secretary
APPROVED AS TO FORM
Dave Erwin, City Attorney
9
Contract No. R28770
EXHIBIT A
SCOPE OF SERVICES
Under the terms of the Agreement, Consultant shall provide the following services for the
Agency's residential apartment complexes identified in Exhibit E.
1. Inspect, properties identified in Exhibit E and prepare a detailed and complete
component inventory of all assets for the twelve (12) residential apartment
complexes, related amenities and ancillary buildings (based on actual observations
and measurements), identified in Exhibit E;
2. Prepare a condition and needs assessment (including a Photographic Inventory
Appendix) that includes detailed reports for each asset2 showing placed in service
date, useful life, replacement year, quantity, unit cost, replacement schedule
including priorities, current cost, future cost, salvage value, and information available
detailing manufacture quality, usage, and maintenance history;
3. Prepare a cost of replacement for assets identified in Item #1 above including a
comparison to existing quality. Such costs should take into consideration the
Agency's goals toward sustainability, cost savings measures, availability, code
requirements, energy efficiencies, maintenance standards and natural resource
conservation;
4. Prepare an analysis report to establish and substantiate the current requirements of
the Reserve Fund;
5. Prepare a Funding Plan that can be used by the Agency as a long-term budgeting
guide. The Funding Plan will include estimated replacement costs, replacement
schedule, annual contributions, annual expenditures, and ideal annual funding over
the next thirty years.
Reports identified above will be presented by property as well as in summary form and will
consider standards already established based on the type of funding utilized to construct,
repair, renovate, or maintain such property. Reports will be presented in similar form to the
sample reports provided with the Consultant's proposal on file with the Agency's
Clerk/Secretary.
All site visits and inspections shall be coordinated through the Agency's property
management supervisor, RPM Company, ATTN: Teresa Vakili, 72-600 Fred Waring Drive,
Palm Desert, (760) 674-1139. Failure to coordinate site visits may result in termination of
the contract under Section 15.
There is no expectation that the Consultant will enter every apartment unit,however,Consultant will be required to visit each site and identify the assumptions by which the study was
completed. The Consultant may,with prior Agency approval,meet with the property's vendors to determine historical maintenance and usage.
2 For purposes of this Agreement"assets"include items considered of a capital nature or fixed assets on the interior and exterior of the buildings as well as common areas and
buildings.The study does not include operating repairs and maintenance such as interior painting,carpet cleaning,replacement of floor or window coverings or those items which are
replaced on a frequent or recurring basis.The cost threshold for determining whether an item is a reserve asset is generally$2,500 however,fixtures and equipment that can be
considered of a capital nature or fixed asset,(i.e.appliances,furniture,solar panels,built in cabinetry,kitchen and bath refurbishments,pool pumps,etc.)are to be included in the
study regardless of cost.
10
Contract No. R28770
EXHIBIT B
PROPOSED SCHEDULE
• Notice to Proceed will be provided within 30 days of fully executed contract.
• Draft Reserve Study to be provided by Consultant to Agency within 8 weeks after the
Notice to Proceed is delivered to Consultant.
• Final Reserve Study to be provided by Consultant to Agency within 1 week following
the Agency's review of the first draft of the Reserve Study.
it
Contract No. R28770
EXHIBIT C
REQUEST FOR PROPOSAL (RFP)
12
PALM DESERT REDEVELOPMENT AGENCY
REQUEST FOR PROPOSALS (RFP)
PROFESSIONAL SERVICES
REPLACEMENT RESERVE FUND STUDY
PUBLIC NOTICE IS HEREBY GIVEN that the Palm Desert Redevelopment Agency,
("Agency"), is requesting proposals (RFP) from qualified professionals ("Professional") for the
preparation of a comprehensive REPLACEMENT RESERVE FUND STUDY for twelve (12) of
the Agency's residential apartment complexes, their related amenities and ancillary buildings.
The comprehensive replacement reserve fund study will assist the Agency in long-range
budgeting and planning for the long-term maintenance of the Agency's apartment complexes,
related amenities and ancillary buildings.
The successful Professional should have substantial expertise and experience in preparing
replacement reserve studies and needs assessments for residential apartment complexes and
their related amenities. Knowledge of, or experience with, public agencies should be included in
the proposal.
The Request for Proposal and scope of services are available in the office of Redevelopment
Agency/Housing Division beginning January 27th, 2009. A highly recommended meeting for
all interested replacement reserve study professionals will be held February 18th, 2009 at
10:00 A.M. in the North Wing Conference Room, located at Palm Desert City Hall, 73-510
Fred Waring Drive, Palm Desert. All questions regarding the RFP will be answered at this
meeting.
Five (5) copies of the proposal must be submitted in a sealed envelope plainly marked on the
outside:
"SEALED PROPOSAL FOR REPLACEMENT RESERVE FUND
STUDY PROFESSIONAL SERVICES-- DO NOT OPEN WITH
REGULAR MAIL"
Proposals will be received up to the hour of 2:00 p.m. on Wednesday, February 25, 2009, in
the Office of the City Clerk, City of Palm Desert Redevelopment Agency, 73510 Fred Waring
Drive, Palm Desert, California, 92260, at which time they will be opened and forwarded to the
Agency's Housing Division for review. Notice of Award to the successful Professional will be
forwarded as soon as practical thereafter.
Dated this 23rd day of January, 2009, at Palm Desert, California.
Rachelle D. assen, C C
City Clerk, City of Palm Desert
73510 Fred Waring Drive
Palm Desert, CA 92260
(760) 346-0611
PALM DESERT REDEVELOPMENT AGENCY
REQUEST FOR PROPOSALS (RFP)
REPLACEMENT RESERVE FUND STUDY
PROFESSIONAL SERVICES
I. INTRODUCTION
The Palm Desert Redevelopment Agency ("Agency") is currently seeking proposals
("RFP") from qualified professionals ("Professional") for the preparation of a
Replacement Reserve Fund Study ("Study"). The Replacement Reserve Fund Study
will assist the Agency in planning for the long-term deferred maintenance for twelve (12)
of the Agency's residential apartment complexes, related amenities and ancillary
buildings from a qualified professional.
The objective of the Study will be to:
❖ Inventory and identify the condition, value, repair, replacement cost and
replacement schedule of the physical capital assets for twelve (12) of the
Agency's residential apartment complexes, related amenities and ancillary
buildings; and
❖ Establish the current requirements (relative size) of the Reserve Fund; and
❖ Develop a Funding Plan as a long-term budgeting guide which includes
estimated replacement costs, replacement schedule, annual contributions,
annual expenditures, and ideal annual funding over the next thirty years.
II. BACKGROUND
The Agency owns various residential apartment complexes within the City's boundaries
for the purpose of providing affordable housing to households with restricted incomes.
The Agency desires to maintain all its residential apartment complexes, their respective
amenities and ancillary buildings, in the condition which is consistent with the Agency's ...
goals and standards of quality. The Agency desires a long-range budgeting guide to
anticipate and set-aside reserves.
Twelve (12) of the Agency's apartment complexes are included in the RFP and will
subsequently be the basis for the Study. Each complex is unique in size, character,
composition and age and has different amenities including pools, laundry facilities,
covered parking, community areas, tennis courts, playground equipment and ancillary
buildings within the complex grounds. The Study will identify the assets by complex and
provide a tool for long-term planning of deferred maintenance.
Palm Desert Redevelopment Agency
Request for Proposals (RFP)
Replacement Reserve Fund Study Professional Services
III. SCOPE OF SERVICES
The proposal should include the specific services required in the preparation of the
Study including the following tasks:
❖ Detailed and complete component inventory of all assets for twelve (12) of the
Agency's residential apartment complexes, related amenities and ancillary
buildings (based on visual observations and measurements);
❖ Condition and needs assessment (including photographs, when necessary) that
includes detailed reports for each asset showing placed in service date, useful
life, replacement year, quantity, unit cost, replacement schedule including
priorities, current cost, future cost, salvage value, and information available
detailing manufacture quality, usage, and maintenance history;
❖ Description of the methods used for preparing inventory, establishing values,
establishing replacement schedules and priorities, cost of replacements including
a comparison to existing quality, and process by which sites will be inspected.
Such methods should include the Agency's goals toward sustainability, cost
savings measures, availability, code requirements, energy efficiencies,
maintenance standards and natural resource conservation;
❖ Report of reserve requirements by property (successful Professional will be
required to consider standards already established based on the type of funding
utilized to construct, repair, renovate, or maintain such property);
❖ Establish the current requirements of the Reserve Fund; and
❖ Develop a Funding Plan as a long-term budgeting guide which includes
estimated replacement costs, replacement schedule, annual contributions,
annual expenditures, and ideal annual funding over the next thirty years.
The complexes included in this RFP that will ultimately be the basis for the Study are
within the City of Palm Desert and are located as follows:
1. California Villas, a 141 unit multi-family complex
77-107 California Drive
2. Candlewood Apartments, a 30 unit senior complex
74-000 Shadow Mountain Drive
3. Catalina Gardens and adjacent Clubhouse , a 72 unit senior complex
73-600A Catalina Way
4. Desert Pointe, a 64 unit multi-family complex
43-805 Monterey Avenue
5. Laguna Palms Apartments, a 48 unit multi-family complex
73-875 Santa Rosa Way
6. La Rocca Villas, a 27 unit senior complex
42-135 Golden Eagle Lane
Page 12 January 27,2009
Palm Desert Redevelopment Agency
Request for Proposals(RFP)
Replacement Reserve Fund Study Professional Services
7. Las Serenas, a 150 unit senior complex
73-315 Country Club Drive
8. Neighbors Apartments, a 24 unit multi-family complex
73-535 Santa Rosa Way
9. One Quail Place, a 384 unit multi-family complex
72-600 Fred Waring Drive
10. Palm Village Apartments, a 36 unit multi-family complex
73-650 Santa Rosa Way
11. The Pueblos, a 19 unit senior/multi-family complex(3 one-bedroom units not included)
73-695 Santa Rosa Way
12. Taos Palms, a 16 unit multi-family complex
44-830 Las Palmas Avenue
IV. PROFESSIONAL QUALIFICATIONS
Firms interested in providing professional services as a Replacement Reserve Fund
Study Professional for the Agency are required to submit a proposal based on the RFP
Scope of Services and a statement of qualifications that is no more than ten (10) pages
(in addition to the standard documentation and resumes of key personnel), that
includes:
❖ A brief letter summarizing Professional firm's qualifications and proposed
approach to working with and meeting the needs of the Agency;
❖ Company information including contact name, phone numbers, address, and e-
mail addresses;
❖ Identification and number of key personnel proposed to be assigned to work with
the Agency, including resumes, background and relevant experience;
❖ Description of the Professional's relevant experience in performing the described
services, including (i) professional qualifications to perform services, (ii)
specialized experience and technical competence, (iii) past experience, (iv)
experience in building and energy audits, (v) experience in preparation of a Study
of the same relative size, and (vi) work with other local government agencies,
particularly in comparable cities;
❖ Names and contact information for at least three (3) references from current and
former clients for whom the Professional firm has performed similar work;
❖ Estimated time frame for completion of Study from date of award to completion;
❖ A schedule of professional fees and expenses including fee structure (hourly
rates) and additional billable expenses; estimate of fees and expenses for this
proposal; and
❖ Copies of sample reserve studies and reports.
Page 13 January 27,2009
Palm Desert Redevelopment Agency
Request for Proposals(RFP)
Replacement Reserve Fund Study Professional Services
V. SELECTION CRITERIA AND PROCESS
A. Proposed Schedule
Issuance of RFP January 27, 2009
RFP Questions to the Agency February 13, 2009
RFP Meeting for Interested Professionals (Highly February 18, 2009
Recommended) Questions regarding the RFP will 10:00 A.M.
be answered at this meeting
Closing Date for RFP February 25, 2009
Review of RFP's/Selection of Professional March 2-6, 2009
(Optional Interviews)
Commissions and Board Recommendations and March 9-13, 2009
Award
Contract Documentation Preparation and Signing March 16-27, 2009
Study Start Date March 30, 2009
Study Completion Date June 1, 2009
Board Approval and Implementation June 2-30, 2009
B. Selection of Professional will be based on a number of criteria, including, but
not limited to the following:
❖ Relevant experience of Professional's firm and key personnel, including (i)
professional qualifications to perform services; (ii) specialized experience
and technical competence; (iii) past experience; (iv) experience in the
preparation of a Study of the same relative size; and (v) work with other
local government agencies, particularly in comparable cities;
❖ Capacity to perform service within the expected timeframe;
❖ Overall quality of proposal and proposed approach;
❖ Overall quality of the sample reports submitted and relevance to RFP
Scope of Services;
❖ Estimated fees and expenses;
❖ Responsiveness to the proposal.
Page 14 January 27,2009
Palm Desert Redevelopment Agency
Request for Proposals (RFP)
Replacement Reserve Fund Study Professional Services
VI. GENERAL INFORMATION
Professional is required to carefully and fully investigate all of the requirements of this
RFP. As part of the investigation, if Professional wishes to visit or inspect the properties
related to this RFP, such visit or inspection (other than street visual) must be
coordinated with the Agency's property manager, RPM Management Company, to
ensure resident impact is minimal and non-intrusive.
Professional is required to make all arrangements needed to fulfill the terms and
preparation of the proposal. By submitting a proposal, Professional represents and
certifies to the Agency that such investigation has been completed and that it fully
understands the Scope of Services and requirements.
This RFP, its addendums and answers to requests for information related to the RFP
constitute the entire RFP.
A meeting regarding the RFP will be held on February 18th, 2009 at 10:00 A.M. in the
North Wing Conference Room at Palm Desert City Hall, 73-510 Fred Waring Drive,
Palm Desert. It is highly recommended that interested Professionals attend this
meeting. All questions related to the RFP will be answered at that meeting.
The successful Professional and all Professional's sub-consultants, will be required, at
its and/or their sole expense, to obtain and maintain during the term of any agreement,
all appropriate permits, certificates and licenses including, but not limited to, a City
Business License. The Agency may require proof of such prior to entering into any
agreement.
The Agency will not reimburse Professionals who submitted a proposal for any costs
involved in the preparation and submission of proposals.
The Agency reserves the right to request any Professional submitting a proposal to
clarify its proposal or to supply additional material deemed necessary to assist in the
selection process.
All submitted proposals and information included therein or attached thereto shall
become public records upon contract award.
The Agency reserves the right, at its sole discretion, to accept or reject any or all
proposals submitted in response to this RFP, to alter the selection process, to waive
any defects in any of the proposals or to request further proposals. Neither this request,
nor any of the proceedings relating thereto, shall in any way create a binding contract or
agreement of any kind between the Agency and any Professional submitting a proposal.
Selection of a Professional, if any, is within the sole discretion of the Agency.
The contract(s) resulting from this solicitation may be awarded to the qualified
Professional whose proposal has been determined by the Agency to be the most
Page 15 January 27,2009
Palm Desert Redevelopment Agency
Request for Proposals (RFP)
Replacement Reserve Fund Study Professional Services
advantageous to the Agency. The Agency reserves the right to award a contract to a
Professional other than that of the Professional that offers the lowest overall cost.
Please direct requests for site visits or inspections in connection with this RFP to Teresa
Vakili, RPM Company, (760) 674-1139.
Please direct questions regarding this RFP to Janet M. Moore, Director of Housing,
Palm Desert Redevelopment Agency, 73-510 Fred Waring Drive, Palm Desert, CA
92260, (760) 346-0611, extension 327. All questions will be compiled and answered at
the highly recommended meeting scheduled for February 18th, 2009.
VII. SUBMISSION REQUIREMENTS
At least one copy of the proposal shall contain an original signature by an authorized
representative of the company.
Five (5) copies of the proposal must be submitted in a sealed envelope clearly marked
on the outside:
"SEALED PROPOSAL FOR REPLACEMENT
RESERVE FUND STUDY PROFESSIONAL
SERVICES-- DO NOT OPEN WITH REGULAR MAIL"
Proposals will be received, up to the hour of 2:00 p.m. on Wednesday, February 25,
2009, in the Office of the City Clerk, City of Palm Desert, 73510 Fred Waring Drive,
Palm Desert, California, 92260, at which time they will be opened and forwarded to the
City's Housing division for review. Notice of Award to the successful Professional will be
forwarded as soon as practical thereafter. Once awarded, it is the Agency's goal to have
the Study completed by June 1, 2009.
Page 16 January 27,2009
EXHIBIT D
CONSULTANT'S PROPOSAL
13
Corporate Office ASSOCIATION Regional Offices
P.O. Box 8637 Phoenix,AZ
Calabasas, CA 91372 RESERVES, INC. Orange County, CA
San Francisco, CA
TEL 800/733-1365 Est.1986 Denver, CO
FAX 800/733-1581 Reserve Studies for Community Associations Atlanta, GA
www.ReserveStudy.com Kailua-Kona, HI
Las Vegas, NV
Seattle,WA
Palm Desert Redevelopment Agency
Replacement Reserve Fund Study Proposal
February 23,2009
A. Objective
The stated objective of the Palm Desert Redevelopment Agency's Request for Replacement Reserve Study
proposals is to answer three questions:
• Inventory and identify the condition,value,repair,replacement cost, and replacement schedule of
the physical capital assets for twelve (12) of the Agency's residential apartment complexes, related
amenities, and ancillary buildings
• Establish the current requirements (relative size) of the Reserve Fund, and
• Develop a Funding Plan as a long-term budgeting guide,which includes estimated replacement
costs,replacement schedule, annual contributions, annual expenditures, and ideal annual funding
over the next thirty years.
Association Reserves is pleased to respond to this proposal request, because the three questions we answer
for our clients are exactly the three questions posed above. In the process of preparing Reserve Studies for
our client associations over the last 22 years,we characterize our service as identifying the assets that require
Reserve Funding,identifying the current strength of the Reserve Fund, and recommending a multi-yr
Funding Plan that provides for the Reserve needs of the property.
B. Association Reserves Work Product
Our format is shown in an attached"sample" report. Some features to highlight are:
• Easy-to read text. No industry-particular jargon,no red-herring parameters.
• Tables and Figures that clearly communicate results, not reams of data.
• Photographic Inventory Appendix—where each Reserve Component is photographed for clear
documentation and to communicate current condition.
• Each Report is posted on-line (password protected, of course) for the storage/retrieval,viewing, and
reprinting convenience of our clients. See for yourself at www.ReserveStudy.com. Select the "login"
tab, and enter the username of"sample" and password of"sample".
• The MS-Excel Funding Analysis file used by our Project Management staff is posted along with the
other files, allowing the client access to a tool allowing an unlimited number of"what-if' analyses.
Association Reserves, Inc. 1 2/23/2009
B. Statement of Association Reserves Qualifications and Approach
Association Reserves, Inc. is a professional engineering consulting company dedicated to cost-effectively
helping our clients make wise,informed decision about Reserves (Capital Repair/Replacements).
Established in 1986,we have clients in 43 states and internationally,performing approximately 2000 Reserve
Studies each year. Our clients include residential, resort, commercial,industrial, educational,worship, and
recreational properties. More information about our company,including educational articles and videos,
employee resumes, and regional office contact information, can be found on our website at
www.ReserveStudy.com.
Company founder Robert Nordlund,P.E., R.S.,was instrumental in the development of many common
Reserve Funding principles, and was a driving force in the creation of National Reserve Study Standards.
Robert continues to write and speak on the subject of Reserves on a local and national level. Association
Reserves helps lead the Reserve Study industry,we are not a"follower" company. For example,Robert will
next be speaking at the Community Associations Institute (CAI) National Conference on 4/24/09 in New
Orleans on the topic of Reserve Funding strategies, and for the California Association of Community
Managers (CACM) at their Southern California Reserve Study training on 6/25/09 held at the Sun City
Palm Desert Community Association clubhouse.
In addition to these general qualifications.we believe Association Reserves is uniquely positioned to be the
provider of choice for the Palm Desert Redevelopment Agency for the following reasons:
1) Experience preparing Reserve Studies for Coachella Valley clients since 1989.
2) Significant experience preparing Reserve Studies for public agencies and non-profit organizations.
3) Our experience with preparing an entire portfolio of reports for a client has taught us that for this
volume of information to be useful and absorbed by the client, a cover"summary document" needs to
be created. Please see our attached sample.
4) To prevent site inspection fatigue (also described as "information overload") which would potentially
compromise site inspection accuracy,we expect to assign a team of thee or four Project Management
staff members to this portfolio of projects. Each of those staff members would be responsible for the
same list of assets at each property, to ensure a consistent evaluation throughout the portfolio.
5) To ensure continuity of information and to maintain a simple responsibility trail, each Project
Management staff members follow their information through to the final Report. No changing of hands
from site inspection to analysis staff members.
6) Association Reserves' own Director of Operations Jim Nash,who will be the Association Reserves
Project Manager responsible for successful execution of this project, has extensive experience working
within public agencies. Prior to joining Association Reserves,Jim was "Director of Planning&
Redevelopment—City of Glendora" and "Planning and Engineering Manager—Pasadena
Redevelopment Agency".
Approach:
• All our site inspection work is "observation-based",meaning we measure the actual size of components
in the field (not scaling from plans), and we base Useful Life and Remaining Life based on observed
wear-and-tear (not a calculation based on a design standard life and a"placed-in-service" date).
• A site inspection team is assembled with skills and training appropriate for the client property,with no
staff member scheduled to be "in the field" for more than three days at a time.
• Each site inspection is accomplished in the same methodical pattern. Physical size (number of units),
number of unit types, and amount of additional amenities (on-site office, elevators,pools, etc.) cause
some site inspections to naturally take longer than others. It is this expectation for differences in man-
hours invested in each site inspection that also influences data entry time, amount of follow-up research,
Association Reserves, Inc. 2 2/23/2009
and analysis time that cause our Reserve Study fee for one property to be more or less than another
property.
• Each staff member takes hundreds of digital photographs and pages of field notes during their site
inspection. Multiple photographs of each component are taken through the course of the site
inspection, and many words and phrases and sketches make up the field notes (not a series of
"checkboxes"in a checklist).
• Each staff member performs their own data entry into our proprietary"Inventory Database",
eliminating the possibility of comprehension loss or error due to one person typing another person's
notes.
• Cost estimating is done using our in-house experience base of"actual"prices experienced by
comparable properties in the area, supplemented only as necessary by industry-standard generalized
cost-estimating guidebooks.
• Starting financial parameters (a starting Reserve balance,if any, and estimated interest earning rate) is
provided by the client.
• All Financial Analysis work is accomplished using our custom Funding Analysis tool (built on a MS-
Excel foundation), a versatile and an extremely powerful number-crunching tool.
• This Funding Analysis file is used to calculate the relative strength of the Reserve Fund (comparing
available cash to Reserve needs of the property), and this computational tool is also used by the Project
Manager to develop, test, and custom-craft a multi-yr Funding Plan.
• The last step is to assemble this inventory and financial information into a Report document. The
Project Manager, Mr.Jim Nash,will be responsible for assembling individual Report documents with a
consistent philosophy and wording. Completed reports will be printed for the client (one color original,
five bound B&W copies), uploaded to our website, and a one-page document will be created
summarizing our findings and recommendations for all 12 properties.
C. Company Contact Information:
Mailing Address:
Association Reserves, Inc.
P.O. Box 8637
Calabasas, CA 91372
Shipping Address:
Association Reserves, Inc.
5010 N. Parkway Calabasas #205
Calabasas, CA 91372
Phone: 800/733-1365
FAX: 800/733-1581
Primary Contact Person:
Mr.Jim Nash, R.S.
Email: JNash(a,ReserveStudy.com
Association Reserves, Inc. 3 2/23/2009
D. Key Company Personnel
Mr. Robert Nordlund,P.E., R.S.: Company founder and president, Robert comes from a background
as an aerospace engineer and condominium boardmember. Robert is fundamentally responsible for the
successful function and accuracy of all software tools, and consistent selection and training of all
staffinembers. For this project, Robert is responsible to provide Jim Nash with sufficient company
resources to execute this project successfully.
Mr.Jim Nash, R.S.: Jim serves as the Director of Operations for Association Reserves.Jim is an architect
and has supervised our Reserve Study production staff since 1989. He has conducted over 1,000 site
inspections throughout the United States. Mr. Nash is usually called upon to oversee our larger, out-of-state
inspection assignments. He has widespread construction experience in a variety of facilities, serving
residential, commercial,industrial,resort, and recreational interests. He is a graduate of California State
Polytechnic University.Jim will be responsible for successful execution of this project.Jim is projected to
leave the corporate Association Reserves office in 2009 and launch our newest satellite office serving San
Bernardino and Riverside counties.
Ms. Kris Barger: Kris Barger joined our staff in 1995 with a background in customer service. Kris has
the responsibility of shaping our company image in all outside relationships by handling trade organizations,
advertising, trade shows, and our newsletter. Kris works with clients through the startup process of their
Reserve Study, making sure that Association Reserves meets all the client's compliance issues, and making
sure that all the information we need in order to proceed has been received from the client. Kris is
responsible for each client having a pleasant experience with Association Reserves, and for their Reserve
Study getting started off"on the right foot".
Mr. Sean Kargari, R.S.:Sean serves as Senior Project Manager for Association Reserves. A graduate of Cal
State University, Northridge, Sean joined Association Reserves in June of 2003 as an intern,rising quickly in
capabilities to the Project Manager position. Given numerous leadership opportunities in college and
Association Reserves, Sean became our clear choice for our Senior Project Manager. In addition to
providing our typical Southern California clients the benefit of his experience and expertise, Sean has led
Association Reserves teams to interesting places such the mountains of Tennessee,Puerto Rico, the
Mediterranean coast of Spain, and Dubai.
Ms.Jeanine Nicholson: Jeanine joined Association Reserves in 2007 with a Business Administration
degree (with a concentration in Finance) from the California Lutheran University.Jeanine arrived at
Association Reserves with a background in competitive sports, customer service,and contractural
compliance.Jeanine's strong financial and customer relation capabilities are a powerful skill set that
complement her ability to distinguish what it means for the job to be done "right".
Mr. Will Simons: Will joined Association Reserves in 2008. His previous work experience includes
time spent in the commercial real estate and insurance industries. An analytical thinker and resourceful
problem solver,Will has a great deal of experience working with clients to provide practical and effective
solutions. Will studied Leadership Development while completing a B.S. in Business Administration from
the University of Southern California.
Mr. Nathan Steinbacher: Nathan joined the Association Reserves team in 2007. Nathan brings with
him a 2004 degree in Public Policy (Planning and Development) from the University of Southern California,
the maturity gained from playing on their National Championship football team, and hands-on property
management experience. Prior to joining Association Reserves,Nathan has seen properties from both the
Association Reserves, Inc. 4 2/23/2009
construction side and the property management side,perspectives that give him a unique ability to
understand and serve the needs of our clients.
E. References
Please see attached Reference Sheet
F. Estimated time frame for Completion of Work
Our estimated time frame for completion of this work is eight weeks. This is our standard"Economy"
turnaround, selected by 92% of our clients. The work typically occurs in the following stages:
• Week one, two: Obtain property physical and financial information, contact person identification,
major vendor information, schedule site inspections.
• Week three, four: Site Inspections.
• Week five: Research and follow-up questions.
• Week six: Data Entry and data coordination (ensuring property to property consistency).
• Week seven: Perform Financial Analyses, assemble and deliver reports.
• Week eight: Margin, or additional flexibility for site inspection time.
G. Schedule of Fees
2009 Replacement Reserve Fundy Study Proposal
Property Name # units Fee
1 California Villas 141 $5,040
2 Candlewood Apartments 30 $3,260
3 Catalina Gardens 72 $3,850
4 Desert Pointe 64 $3,960
5 Laguna Palms 48 $3,610
6 La Rocca Villas 27 $3,130
7 Las Serenas 150 $5,180
8 Neighbors Apartments 24 $3,130
9 One Quail Place 384 $8,440
10 Palm Village 36 $3,260
11 The Pueblos 19 $3,260
12 Taos Palms 16 $3,130
Total $49,250
This proposal is a "fixed fee"proposal (no additional travel or incidental expenses). Individual property fees
shown above were developed based on a projection of man-hours necessary to complete each Report.
Association Reserves billing rates are as follows:
Robert Nordlund, company President $250.00/hr
Jim Nash, Director of Operations $200.00/hr
Project Manager Staff members $150.00/hr
Supporting Project Manager Staff $100.00/hr
Administrative Support Personnel $50.00/hr
Association Reserves, Inc. 5 2/23/2009
We understand that the City may wish to negotiate some changes to scope of work, turnaround time,
desired level of involvement of the successful Professional, etc. We therefore expect that the City may wish
to initiate some discussion that may increase or decrease the proposed job fees indicated above.
While 91% of our Reports do not require a revision, our company policy is to prepare one revision at no
charge. When additional support is required in excess of one revision (additional"what-if" analyses,
revisions to scope of work, on-site board meetings, etc.), our hourly rates apply.
Clients unfamiliar with Reserve Studies in general, or wishing some additional time to review or ponder the
completed Reserve Study, can request a "Draft"report to review. This is easily facilitated by the production
of one printed copy of the "Draft" report and posting the information on-line. Requested adjustments to
the Draft report can be easily reviewed by the client by instantaneously viewing the adjusted information
online. In this manner we can accomplish multiple adjustments and client reviews within the period of one
business day. This has turned out to be an unanticipated benefit of our on-line report posting system.
H. Sample Report Format
Please see attached"Sample Vacation Ownership". While this is a sample of a resort property,it shows how
we summarize unit interior assets into their primary groupings. While our site inspection is detailed enough
to count every chair and table and measure every countertop and cabinet, that tremendous volume of
information is summarized into a reasonable number of line items for budget planning and client
comprehension purposes.
I. Payment Schedule
It is our suggestion that the payment schedule be simple,possibly as follows.
50%progress payment,invoiced upon completion of each site inspection
50% final payment,invoiced upon delivery of each Report (first draft or final).
We thank you again for the opportunity to submit our proposal.We look forward with eager anticipation to
the chance to be of service to the Palm Desert Redevelopment Agency in this matter. If you have any
questions,please feel free to call or email.
Respectfully Submitted,
J' Nash, R.S.
ector of Operations
Association Reserves, Inc. 6 2/23/2009
Corporate Office ASSOCIATION
Regional Offices
P.O. Box 8637 Phoenix,AZ
Calabasas, CA 91372 mRESERVES, INC. Orange County, CA
San Diego, CA
TEL 800/733-1365 Est1986 San Francisco, CA
FAX 800/733-1581 Reserve Studies for Community Associations Denver, CO
www.ReserveStudy.com Kailua-Kona, HI
Las Vegas, NV
Seattle,WA
Palm Desert Redevelopment Agency
Proposal Appendix
Contents:
• Sample One-Page Summary Report
• References
EXHIBIT E
DESIGNATED PROPERTIES
The residential apartment complexes included in the contract for the replacement reserve
study identified in the Agreement are located as follows:
1. California Villas, a 141 unit multi-family complex
77-107 California Drive
2. Candlewood Apartments, a 30 unit senior complex
74-000 Shadow Mountain Drive
3. Catalina Gardens and adjacent Clubhouse , a 72 unit senior complex
73-600A Catalina Way
4. Desert Pointe, a 64 unit multi-family complex
43-805 Monterey Avenue
5. Laguna Palms Apartments, a 48 unit multi-family complex
73-875 Santa Rosa Way
6. La Rocca Villas, a 27 unit senior complex
42-135 Golden Eagle Lane
7. Las Serenas, a 150 unit senior complex
73-315 Country Club Drive
8. Neighbors Apartments, a 24 unit multi-family complex
73-535 Santa Rosa Way
9. One Quail Place, a 384 unit multi-family complex
72-600 Fred Waring Drive
1o. Palm Village Apartments, a 36 unit multi-family complex
73-650 Santa Rosa Way
1. The Pueblos, a 19 unit senior/multi-family complex (3 one-bedroom units not included)
73-695 Santa Rosa Way
12. Taos Palms, a 16 unit multi-family complex
44-830 Las Palmas Avenue
Study is to include the residential apartment units, common areas, related amenities and
ancillary buildings at the addresses listed above. Consultant is required to identify and
verify all included buildings prior to commencing inspections with the Property Management
Supervisor. Consultant's failure to identify all included buildings may result in additional
work to be completed by Consultant at no charge to the Agency.
14