HomeMy WebLinkAboutHA35560 - Affrdable Housing Compliance/Proprty Mgmt SvcsContract No. HA35560
PALM DESERT HOUSING AUTHORITY
STAFF REPORT
REQUEST: APPROVE THE AWARD OF CONTRACT NO. HA35560 FOR
AFFORDABLE HOUSING COMPLIANCE/PROPERTY MANAGEMENT
SERVICES FOR THE AUTHORITY OWNED PROPERTIES TO RPM
COMPANY FOR A FIVE YEAR TERM IN AN AMOUNT NOT TO
EXCEED $481,248.00 FOR THE CALENDAR YEAR 2017.
SUBMITTED BY: Janet Moore, Director of Finance
CONTRACTOR: RPM COMPANY
1420 S. Mills Avenue, Ste. M
Lodi, CA 95240
DATE: November 10, 2016
CONTENT: Draft Agreement
Summary of Proposal Review
Recommendation
By Minute Motion, that the Housing Authority Board,
1) Approve the award of Contract No. HA35560 for Affordable Housing
Compliance/Property Management Services for an initial five (5) year term for the
Housing Authority Owned Properties to RPM Company (RPM) in an amount not
to exceed $481,248.00 for the calendar year 2017, with allowable increases as
noted in the contract; and
2) Authorize staff to finalize a contract (also referred to as an Agreement) with RPM
consistent with the terms of the RFQ/RFP with non -substantive modifications
concurred upon by the Executive Director and legal counsel; and
3) Authorize the Chairman to execute the Agreement and the Executive Director to
execute any documents necessary to facilitate the contract award and
implementation.
Funds are available in the amount 2016/2017 Housing Authority operating budget.
Housing Commission Recommendation
The Housing Commission reviewed the recommendation at its regular meeting of November 9,
2016. Staff will provide a verbal report upon request.
Strategic Plan Objective:
Although the services solicited do not apply to a specific City of Palm Desert strategic plan goal,
Staff Report
Award of Contract No. HA35560 to RPM Company
November 10, 2016
Page 2 of 4
the Request for Qualifications and Proposals ("RFQ/RFP") had the following objectives:
• Establish a comprehensive solicitation for Services at the Palm Desert Housing
Authority income -restricted rental properties.
• Achieve high quality, cost effective services.
• Detail expectations for services at the properties.
• Determine the qualifications of the respondents to manage all aspects of the
Housing Authority's affordable rental housing
Executive Summary
The Palm Desert Housing Authority ("Housing Authority") requested qualifications and proposals
from qualified licensed firms for affordable housing compliance/property management services
for the Housing Authority owned restricted properties ("Properties"). Two (2) responses were
received for the request for qualifications and request for proposals ("RFQ/RFP"). The selected
firm, RPM Company, has demonstrated in their response to be the most responsive to meeting
the RFQ/RFP objectives as well as qualified and experienced with affordable housing
compliance and property management services.
Staff recommends awarding an initial five (5) year Agreement effective January 1, 2017 to RPM
Company with the option of two (2) two-year term extensions for affordable housing
compliance/property management services for the Housing Authority Properties.
Background
The RFQ/RFP for qualified licensed firms for affordable housing compliance/property
management services for the Palm Desert Housing Authority owned income -restricted
Properties was advertised in the local newspaper and the Housing Authority's website. On
August 19, 2016 at 2:00 p.m., the following qualifications and proposals were received:
Hyder Company
RPM Company
FIRM CORPORATE OFFICE
San Marcos, CA
Lodi, CA
The qualifications and proposals of each firm received were evaluated as follows:
Housing Authority staff performed an extensive due diligence review of the two (2)
qualifications/proposals submittals. This process involved: verifying that both firms
satisfied the minimum qualification requirements; evaluating the criteria established in
the RFQ/RFP for each firm; contacting references provided; and evaluating the
responsiveness to the services requested in the RFQ/RFP. Further clarification was
requested from the firms in order to have a better understanding of services and costs
being proposed. This was requested to obtain greater detail for the services and costs
that were either unclear or not included in the original submittal. After an initial review, it
was determined that both firms met the minimum criteria for qualifications and
experience. A broader qualitative evaluation of the proposals was then conducted using
the following criteria: qualifications, compliance knowledge, firm's capacity,
demonstrated understanding of Palm Desert's quality, firm's locations, firm's clarity,
principal manager availability, maintenance ability, good standing of firm, and cost.
Staff Report
Award of Contract No. HA35560 to RPM Company
November 10, 2016
Page 3 of 4
2. Subsequently, four (4) individual City staff members from different departments, as well
as Housing Authority Board Member Sabby Jonathon and Housing Commission Vice
Chair Heather Horning, independently reviewed the qualifications and the
responsiveness to the service approach proposed by each firm. Unanimously, the
review of the responses yielded that RPM Company was very thorough and concise
while Hyder Company failed to provide complete, clear and direct responses. A copy of
the summary of the individual proposal reviews is attached to this report.
3. Lastly, evaluations performed of each firm's submittals were presented to the RFQ/RFP
review committee comprised of two (2) staff members, Housing Authority Board Member
Sabby Jonathon and Housing Commission Vice -Chair Heather Horning on October 20,
2016 for a comprehensive evaluation review of the two (2) firms. The RFQ/RFP review
committee considered the above results together with the qualifications and experience
of each firm. Although it is not required to base a decision solely on costs, the review
committee also reviewed all fees presented in each proposal for the scope of services
solicited (i.e., management fee, administrative costs, operational fees, start up costs and
additional costs.). The RFQ/RFP review committee agreed that RPM Company
submitted the best qualified response and recommended an award of contract to RPM
Company.
RPM Company currently manages approximately 6,025 apartment units throughout Southern
California including 4,406 affordable units. Furthermore, RPM Company has been the property
management company for Palm Desert Housing Authority since 1998 and has thirty nine (39)
years of experience in this industry. RPM Company has been performing satisfactorily under its
current contract obligations.
The proposed Agreement to RPM Company is for an initial five (5) year term with renewal
options as noted in the agreement. The scope of services for this Agreement consists of the
day-to-day operation of fifteen (15) affordable housing properties. Their duties will include, but
not be limited to: compliance with affordable housing rules and requirements; respond to
residents' concerns and complaints; enforcement of house rules and regulations; application of
fair housing laws and enforcement of the Housing Authority's Administrative Policies and
Procedures; qualifying applicants and tenants annually for income certification; conducting
credit, rental, employment, and criminal background checks; all leasing activities; monitor day-
to-day maintenance of properties and maintenance contracts; perform property and unit
inspections; collect and disburse funds; provide monthly accounting reports that include
receipts and expenditures; annual financial reporting/filings; occupancy reporting; and
administration of funds ("Services"). The Agreement can be terminated by mutual
agreement for unsatisfactory performance upon a 30-day written notice by either party; in
addition the Housing Authority may terminate for convenience with 180 days written notice.
The Agreement management fee in the case of occupied units shall be in the amount of $36.00
per unit per month, to be increased $1.00 commencing on July 1, 2018 and every July 1st
thereafter for the remainder of the term of the Agreement.
Staff Report
Award of Contract No. HA35560 to RPM Company
November 10, 2016
Page4of4
Staff therefore recommends approval of award of Contract No. HA35560 for Affordable Housing
Compliance/Property Management Services for the Authority Owned Properties to RPM
Company in an amount not to exceed $481,248.00 for calendar year 2017, with allowable
increases as noted in the contract.
Fiscal Analysis
The fiscal impact is the annual Agreement amount for Affordable Housing Compliance/Property
Management Services.
artment Head:
t Moore, Director of Finance
Lauri Aylaian, Executive Director
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Contract No. HA35560
DRAFT
PALM DESERT HOUSING AUTHORITY
AGREEMENT FOR PROPERTY MANAGEMENT SERVICES
THIS AGREEMENT FOR AFFORDABLE HOUSING COMPLIANCE AND
PROPERTY MANAGEMENT SERVICES (this "Agreement") is made and entered into
effective this November 10, 2106, by and between the PALM DESERT HOUSING
AUTHORITY, a public body, corporate and politic having a principal place of business at
73-510 Fred Waring Drive, Palm Desert, California, (the "Housing Authority") and RAY,
DOUGLAS, ANN & PATRICK, INC., a California corporation, dba RPM Company,
having a principal place of business at 1420 S. Mills, Suite M, Lodi, California 95242
(the "Manager"). The Housing Authority and the Manager may be referred to herein
individually as a "Party" and collectively as the "Parties."
RECITALS
A. The Housing Authority is a public body, corporate and politic, the Owner
("Owner") and operator of those certain real properties described on Exhibit A attached
hereto and incorporated herein by this reference (the "Properties").
B. The Manager is engaged in the business of managing, maintaining, repairing,
operating and leasing apartment buildings, and has represented to the Housing
Authority that the Manager is experienced in providing professional services in
affordable housing compliance, is licensed in the state of California, familiar with the
goals and plans of the Housing Authority and competent in said business.
C. The Housing Authority and Manager desire to enter into this Agreement.
NOW, THEREFORE, in consideration of the foregoing premises and of the
mutual and dependant covenants contained in this Agreement, the Parties agree as
follows:
1. Effective Date. The effective date of this Agreement (the "Effective Date")
shall be January 1, 2017.
2. Appointment. The Housing Authority hereby appoints Manager and
Manager accepts appointment as the manager of the Properties on the terms and
conditions set forth in this Agreement. The Parties acknowledge and agree that this
Agreement is only a Management Agreement between the Parties, that the Parties are
not joint venturers or partners, and that Manager shall not be deemed to be an
employee of the Housing Authority. The Manager shall at all times be an independent
contractor.
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3. Professional Management Standards and the Administrative Plan.
(a) Manager agrees to exert its best efforts, to furnish the services of
its organization, and to exercise the highest degree of professional competence in
managing the Properties and to provide the Housing Authority with the economic return
consistent with proper management under the guidelines provided by the Housing
Authority for affordable housing compliance.
(b) The Manager shall manage, maintain, repair, operate and lease the
Properties consistent with other multi -unit and senior apartment complexes or similar
type properties in the surrounding vicinity with comparable facilities and amenities.
(c) Notwithstanding the authority granted to Manager by this
Agreement, Manager agrees to abide by those standards and instructions that the
Housing Authority may issue from time to time in connection with the Administrative
Plan (the "Administrative Plan"). In the event of any inconsistency between this
Agreement and the Administrative Plan, this Agreement shall control. The
Administrative Plan adopted by Resolution No. HA-38, and any amendments thereto,
include the statements of policies of the Housing Authority for the purpose of property
operations.
(d) The Manager hereby covenants and agrees to use Manager's best
efforts to actively manage, maintain, repair, operate and lease the Properties at their
maximum potential, considering the Housing Authority's guidelines for affordable
housing compliance and the Administrative Plan. Manager will provide copies of any
procedural manuals created for the purpose of implementing said Administrative Plan.
(e) The Manager shall be responsive to all tenant requests and
concerns in a timely manner and shall make its best efforts to satisfy tenant requests
and concerns at on -site offices. The Manager shall make its best efforts to notify
Housing Authority of tenant requests and concerns which are likely to be expressed by
a tenant directly to the Housing Authority. Manager shall establish policies in order to
address tenant requests and concerns and resolution in the event of a dispute in
accordance with the Administrative Plan.
(f) Each of the Properties having twenty five (25) or more units shall
have a member of Manager's management staff that shall live on -site provided,
however, that the Housing Authority shall not be responsible for furnishings, equipment,
supplies, postage, utilities, telephone or such other ancillary costs of the on -site staff.
The specific apartment shall be approved by the Housing Authority prior to occupancy
by staff.. All other Properties having less than twenty five (25) units shall have a
caretaker that lives on -site. All Properties will have an emergency contact available
seven days a week, 24 hours a day.
4. Periodic Requirements
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The Manager shall perform the following:
(a) Not Tess than once each week:
(i) A member of the Manager's management staff will walk each
property in its entirety to identify any items of concern that may or may not be visible
from frequently traveled thoroughfare, and prepare a detailed report of findings to be
provided to the Housing Authority monthly
(ii) Inspect all mechanical and physical systems located on the
Properties and provide a report to the Housing Authority of said inspections monthly
(b) Not less than once during every calendar month:
(I) Analyze the occupancy level of the Properties
(ii) Analyze the financial condition of the Properties including,
without limitation, cash flow, income, expenses, and per unit average cost
(iii) Provide the Housing Authority with a report regarding the
status of maintenance and repair projects including those in process, upcoming,
completed, and those that have not been completed or which are recommended and
have not yet been implemented, and which are to be carried over to the next fiscal year
(c) Not less than once annually on or before March 1st,
(i) Prepare and deliver to the Housing Authority a
comprehensive financial budget plan (Plan), described in Section 18, including reserve
accounts where applicable, for the Properties for the upcoming fiscal year operations
July 1 to June 30.
(ii) Examine the general condition of the Properties, prepare a
list of needed repairs and maintenance, and deliver that list to the Housing Authority
along with the estimated costs for review. Once reviewed by the Housing Authority,
incorporate estimations into the Plan. Said list will include all items identified by
Manager and be prioritized by the Manager in order of necessity. (i.e. Critical, Health
and Safety, Necessary, Preventative, etc.)
(d) Manager will notify the Housing Authority of work, supplies,
services, maintenance or repairs (emergency or otherwise) that were not included in the
current operating budget but that may be necessary prior to the next operating budget
year:
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(i) In December of each year, Manager will provide the Housing
Authority a report of necessary budget adjustments to be made for work that was pre -
approved by the Housing Authority and estimates of anticipated work that is necessary.
(ii) In the event there are items that have not been included in
the Plan or in Section 4(d)(i), above, then as necessary, Manager will provide a report of
those items by priority to the the Housing Authority. Housing Authority staff will
determine whether said requests should be forwarded as a special item to the Housing
Authority Board.
(e) On the basis of the information gathered pursuant to Sections (a)-
(d) of this Section 4, Manager shall recommend in writing amendments and updates to
the Administrative Plan at least once annually. The proposed amended Administrative
Plan, together with any recommendations of Manager for achieving maximum economic
return of the Properties in light of the affordable housing compliance requirements of the
Properties, shall be submitted to the Housing Authority. Any amendments to budget,
policies or actions in the Administrative Plan are subject to the prior written approval of
the Housing Authority unless the sole reason for the proposed amendment was due to
changes in or inconsistencies with current law. The Manager will continually review the
Administrative Plan for the purpose of keeping the Housing Authority advised of
necessary or desirable changes.
(f) Crime -Free Multi Housing Program. Throughout the term of this
Agreement, the Agent covenants and agrees to participate in and fully complete the
City's Crime -Free Multi Housing Program for the Properties. Evidence of compliance
with this requirement shall be forwarded annually to the Housing Authority within said
twelve (12) month period.
5. Determination of Performance Criteria. The Parties have developed
various performance criteria categories which will be used to evaluate the performance
of the Manager. Such performance criteria categories are described on Exhibit G
attached hereto and incorporated herein by reference.
6. Term. The Agreement for Property Management Services currently in
effect terminates on its own terms on December 31, 2016. The Parties agree that the
term ("Term") of this Agreement shall be for Five (5) years, commencing January 1,
2017 and ending December 31, 2021. Following the initial term of the contract, the
Housing Authority may opt to extend the contract for two (2) additional terms of two (2)
years each term and expiring December 31, 2025. Contract extensions may be
exercised contingent upon satisfactory performance and at the sole discretion of the
Housing Authority, and in accordance with the provisions of Section 28 below.
7. On -Site Management Office. The Housing Authority shall provide
adequate space on the Properties for a management office in accordance with Exhibit C
attached hereto and incorporated herein by this reference. The Manager shall prepare
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and submit designs and budget for pre -approval to furnish and/or refurbish the
management offices. The Housing Authority shall pay all approved expenses related to
such office, including, but not limited to, furnishings, equipment, postage, office
supplies, electricity, telephone, answering service, and security monitoring services, if
any. The Housing Authority shall retain ownership of all of the foregoing purchases.
8. Information on the Properties. The Manager acknowledges that it has
been furnished with any available building plans and specifications as well as
environmental reports, if available, for each of the Properties. Manager also
acknowledges that it has received copies of any available manufacturer's preventive
maintenance schedules, guarantees and warranties pertinent to the fixtures, mechanical
equipment, and appliances used in the operation of the Properties. The Manager shall
maintain files for each of the Properties with current plans and specifications,
environmental reports, manufacturer's preventive maintenance schedules, guarantees
and warranties pertinent to any new installations, repairs, fixtures, appliances as well as
any equipment, used in the operation of the Properties.
9. Familiarity With Equipment. The Manager has become thoroughly familiar
with the character, location, construction, layout, plan and operation of the Properties,
and especially of the electrical, heating, plumbing, air conditioning and ventilation
systems, and all other mechanical equipment, and the Manager shall maintain such
familiarity.
10. Leasing. The Manager will act as the Housing Authority's exclusive agent
in leasing the dwelling units (the "Units") in the Properties. The following provisions will
apply:
(a) The Manager shall use all reasonable efforts to keep the Properties
leased by procuring tenants for the Properties and negotiating and executing on behalf
of the Housing Authority all leases for the Units. The Manager is authorized to enter
into and execute initial leases with tenants for a minimum term of six (6) months and a
maximum term of twelve (12) months without the further written approval of the Housing
Authority. The Housing Authority shall provide the Manager with income and rent
guidelines for each of the Properties annually or as frequently as Department of
Housing and Community Development ("HCD") issues adjustments to the Riverside
County Median Income levels. Such guidelines shall include a provision for utility
allowances, if applicable, as set by the Riverside County Housing Authority which are in
effect at the time the rents are established. Any lease for a shorter or longer period shall
require the prior written consent of the Housing Authority. The Manager shall also
submit to the Housing Authority copies of all notices terminating any tenant leases and
all notices to vacate served on any tenant prior to the expiration of the lease term or
after the expiration of the lease term if tenancy has converted to month -to -month,
together with an explanation for the applicable notice. Manager shall provide the
Housing Authority with the equipment detail of each Unit annually for the purpose of
determining the proper utility allowances by March 1st of each year.
Contract No. HA35560
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(b) The Manager shall lease all the Units in accordance with the terms
of this Agreement, in compliance with all applicable Federal, state and local laws, in
accordance with the Administrative Plan and any further direction from the Housing
Authority.
(c) The Manager will be responsible for screening and selection of
existing and prospective tenants in accordance with affordable housing compliance
guidelines and applicable Federal, State and local laws. The Manager will follow the
tenant selection policy described in the Administrative Plan and will show the Properties
to all prospective tenants who qualify under the Housing Authority's affordable
compliance guidelines based on the waiting list policy and Unit availability.
(d) The Manager will prepare and verify eligibility certifications and
recertifications in accordance with the guidelines established by the Housing Authority.
Rents will be adjusted pursuant to the Rent Setting Policy of the Housing Authority
adopted by Resolution HA-32 and any amendments thereto.
(e) The Manager shall not decline to lease any Unit on the Properties
to a prospective tenant, or otherwise discriminate, on the basis of race, color, national
origin, ancestry, sex, gender, gender identity, gender expression, religion, physical or
mental disability, genetic information, marital status, familial status, sexual orientation,
or any other classification then protected by law.
(f) Prior to executing any lease with a tenant, the Manager shall obtain
the written consent of the applicant to perform a complete background check, and shall
perform same, including: (1) investigate the financial ability and history of the
prospective tenant to pay rent, (2) perform necessary credit checks, (3) obtain
references from employers and prior landlords, (4) verify the income of tenants as
specified in the Administrative Plan, (5) verify all matters that are required to be checked
by Federal and/or state law, in accordance with the type of affordable funding involved,
and (6) verify those matters that may and should be checked to ensure and promote the
safety and welfare of all tenants of the Properties, Manager's staff and the public. A
non-exclusive list of the required and permissive verifications, consent language and
sampling of reputable online resources are set forth in Exhibit K, as may be modified by
changes in applicable law. Manager shall comply at all times with applicable Federal,
State and local law in all aspects of the tenant screening and application process.
11. Security Deposits. The Manager will collect, deposit, and disburse
security deposits in accordance with the terms of each tenant's lease. The amount of
each security deposit will be as specified in the Administrative Plan or applicable law.
The collection and disbursement of security deposits will also be governed by the then
applicable state and local laws. All tenant security deposits will be placed in one or
more trust accounts separate from all other accounts and funds of the Manager and/or
the Housing Authority. The security account or accounts will be established at a bank
as specified by the Housing Authority whose deposits are insured by an agency of the
United States government. The security deposit account or accounts will be carried in
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the Housing Authority's name and designated on record as "PDHA Security Deposit
Account" and in addition, the Director of Finance of the City of Palm Desert (the
"Director of Finance"), his/her designees, and up to four designated representatives of
the Manager shall be included as signatories to the security deposit account or
accounts. The balance of the security deposit account or accounts shall not be used to
pay general operating expenses without the written consent of the Housing Authority.
Notwithstanding the foregoing, security deposits received must be documented and
accounted for at all times and the Manager must comply with any applicable state and
local laws concerning interest payments on security deposits. The number and
structure of security deposit accounts is set forth in Exhibit D attached hereto and
incorporated herein by this reference.
12. Collection of Rents and Other Receipts. The Manager will collect when
due all rents, charges and other amounts receivable on the Housing Authority's account
in connection with the management, maintenance, repair, operation, and leasing of the
Properties. Such receipts (except for tenants' security deposits, which will be handled
as specified in Section 11 above) will be deposited in an account or accounts, separate
from all other accounts and funds, of the Manager, at the bank as specified by the
Housing Authority whose deposits are insured by an agency of the United States
Government. This account or accounts will be carried in the Housing Authority's name
and designated on record as "PDHA General Operating Account" and in addition, the
Financial Operations Manager, the Director of Finance, his/her designees, and up to
four designated representatives of the Manager shall be included as signatories to this
account, or accounts. The number and structure of operating accounts is set forth in
Exhibit D attached hereto and incorporated herein by this reference.
13. Enforcement of Leases. The Manager will ensure full compliance by each
tenant with the terms of that tenant's lease. Voluntary compliance will be emphasized.
Involuntary termination of tenancies shall comply with all applicable laws and
regulations. The Manager is designated as the Housing Authority's agent with the right
to enter and take possession of the Units, in accordance with applicable law, and shall
lawfully terminate any tenancy when, in the Manager's reasonable judgment, sufficient
cause (including, but not limited to, nonpayment of rent) for such termination occurs
under the terms of the tenant's lease. For this purpose, the Manager is authorized to
consult with legal counsel qualified to bring unlawful detainer actions and to execute
notices to vacate and judicial pleadings incident to such actions. The Manager shall
keep the Housing Authority informed of such actions and follow such direction as the
Housing Authority may provide for the conduct of any such action. Attorney's fees and
costs incurred in connection with unlawful detainer actions will be paid out of the
General Operating Account as an expense of the Properties. Notwithstanding the
foregoing, the Manager is at all times ultimately responsible for the enforcement of
leases. Payment by the Housing Authority of legal fees and costs incurred in
connection with unlawful detainer actions does not create an attomey-client relationship
between the Housing Authority and Manager's unlawful detainer legal counsel.
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14. Maintenance and Repair. The Manager will maintain the Properties in
good, clean, safe and sanitary condition in accordance with the Administrative Plan and
local codes and in a condition acceptable to the Housing Authority at all times. This will
include, but not be limited to, cleaning, painting, plumbing, grounds care, and such other
maintenance and repair works as may be necessary, subject to any limitations imposed
by the Housing Authority in addition to those contained herein. Manager will ensure all
vendors maintain the required licensing, insurance, permits, and approvals for any work
performed in accordance with this Agreement, as well as all local, State, and Federal
codes and regulations. Manager will maintain an on -site property entry log for all
vendors.
Incident thereto, the following provisions will apply:
(a) The Manager will complete preventative maintenance activities in
the most cost effective and efficient manner as possible, while not jeopardizing the
expectations in quality for the Properties.
(b) The Manager will contract in compliance with Section 21 hereof
with qualified independent contractors for the maintenance and repair of roofs, air-
conditioning and heating systems and for extraordinary repairs beyond the capability of
regular maintenance employees.
(c) The Manager is aware of the requirements of California Labor Code
section 1720 et seq., 1770 et seq., and California Code of Regulations, Title 8, Section
16000 et seq. ("Prevailing Wage Laws") which require the payment of prevailing wage
rates and the performance of other requirements on "public works" and "maintenance"
projects. The projects performed under this contract may be subject to compliance
monitoring and enforcement by the Department of Industrial Relations. If the services
are being performed as part of an applicable "public works" or "maintenance" project, as
defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more,
Manager agrees to fully comply with such Prevailing Wage Laws, including but not
limited to requirements related to public works contractor registration and maintenance
and submittal of certified payroll records. Authority shall provide Manager with a copy of
the prevailing rates of per diem wages in effect at the commencement of this
Agreement. Manager shall make copies of the prevailing rates of per diem wages for
each craft, classification or type of worker needed to execute the services, and shall
post copies at the Manager's principal place of business and at the project site.
Manager shall defend, indemnify and hold the Authority, its elected officials, officers,
employees and agents free and harmless from any claim or liability arising out of any
failure or alleged failure to comply with the Prevailing Wage Laws
(d) The Manager will systematically receive and investigate all service
requests from tenants, take such action thereon as may be warranted and will keep
records of the same. Service requests will be addressed within four working days;
provided, however, emergency requests will be received and serviced on a 24 hour
basis. The Manager shall promptly investigate and respond to serious complaints as
Contract No. HA35560
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appropriate, and shall comply with all applicable Federal and State laws in connection
with same, including but not limited to the requirements of the Fair Employment and
Housing Act and other applicable fair housing laws, and shall promptly report such
complaints and Manager's response thereto to the Housing Authority. The Manager
shall advise tenants to report to law enforcement all complaints involving actual or
threatened criminal activity. The Manager shall provide the Housing Authority with a
monthly summary of all serious complaints received by the Manager. This summary
shall include a brief description of each complaint and Manager's response thereto.
(e) The Manager is authorized to purchase while complying with the
provisions of Section 21, on behalf of the Housing Authority, all materials, equipment,
tools, appliances, supplies and services necessary for proper maintenance and repair.
The Housing Authority shall retain ownership of all said materials, equipment, tools,
appliances and supplies.
(f) Notwithstanding any of the foregoing provisions, the prior written
approval of the Housing Authority will be required for any maintenance or repair project
in which the overall cost is expected to exceed $5,000 for labor, materials, and/or
otherwise in connection with the maintenance and repair of the Properties. This
limitation does not apply to recurring expenses within the limits of the operating budget
or to emergency repairs involving manifest danger to persons or properties, or that are
required to avoid suspension of any necessary service to the Properties. In the latter
event, the Manager will inform the Housing Authority in writing of the facts as promptly
as possible. For purposes herein, "recurring expenses" shall include but not limited to
utilities, pest control, laundry services, pool services, courtesy patrol, regulatory permits
and vermin extermination.
(g) The Manager shall enter into all service contracts (such as pool
maintenance/repair, laundry and vermin extermination) in accordance with Section 21
and maintain all required permits and approvals on equipment, pools, facilities, etc. for
each of the Properties.
(h) The Manager shall not undertake any work of construction or any
work which would modify or change the exterior of any building or grounds.
15. Utilities and Services. The Manager will make arrangements for water,
electricity, gas, sewage and trash disposal, telephone and cable service for the
Properties. The Manager will enter into such contracts as may be necessary to secure
such utilities, acting as Manager for the Housing Authority.
16. Employees.
(a) All personnel of the Manager involved with the management,
maintenance, repair, operation or leasing of the Properties will be employees of the
Manager and will be hired, paid, directed, supervised, and discharged by the Manager.
The Manager will provide sufficient resources (staff and/or services) in order to fulfill its
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obligations to the Housing Authority under the terms of this Agreement. All costs
associated with hiring and discharging of such employees will be borne by the Manager.
The Manager warrants that it has established employment policies in accordance with
employment laws and said policies include a drug free work place or similar substance
abuse policy, a zero -tolerance violence in the workplace policy and all other policies
mandated by State and Federal law. The Manager warrants that all of its employees
meet all qualifications, licensing and code requirements, applicable to completing
assigned tasks. The Manager warrants that training will be provided to employees as
may be required by local, State or Federal Law and will be conducted by an individual or
entities qualified to provide such training. It is understood that, subject to sub -Sections
(b) and (c), below, all direct costs associated with employees working "on -site" and
specifically identified on Exhibit F will be borne by the Housing Authority to include their
direct salary (but not bonuses, mileage reimbursement or other similar costs), Social
Security taxes, employment taxes, medical insurance, Pension Plan, Worker's
Compensation, uniforms, Housing allowance and other benefits (if applicable). The
Housing Authority shall have the right to interview and approve the hiring of any
prospective site managers or regional (non -site specific) staff included in Exhibit F.
Only the cost of those positions set forth on Exhibit F shall be paid by the Housing
Authority. Positions may be added, deleted or modified from Exhibit F based on
property need with approval of the Manager and the Executive Director of the Housing
Authority. Notwithstanding the foregoing, all personnel of the Manager are exclusively
the employees of Manager, and not of the Housing Authority.
(b) Manager shall have full and exclusive responsibility and liability for
payment of all federal, state and local payroll taxes and for contributions for
unemployment insurance, Social Security (FICA) and other benefits imposed or
assessed under any provision of law or by regulation, and which are measured by
salaries, wages, or other remuneration paid or payable by Manager to its employees
engaged in any work in connection with this Agreement or indicated herein, for the
payment of which the Housing Authority will reimburse the Manager, subject to the
written approval of the Finance Director. The Manager shall have full and exclusive
responsibility and liability for the withholding and payment of any income taxes required
to be withheld from the wages or salaries of said employees under any provision of law
or regulation. The Manager agrees to save and hold the Housing Authority harmless
from all claims for penalties, interest, or costs which may be assessed under any law or
any rules or regulations thereunder with respect to its failure or inability to perform the
aforesaid responsibilities.
(c) Upon ten days demand from the Housing Authority, the Manager
shall cause any employee of the Manager to be removed from the Properties, at the
Manager's sole cost and expense.
(d) Manager shall be solely responsible for the methods and means of
managing its personnel to achieve the desired results. The Housing Authority's
authority over and involvement in Manager's employment matters shall be limited
consistent with Manager's status as sole employer of its employees.
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17. Disbursements from General Operating Account.
(a) From the funds collected and deposited by the Manager in the
General Operating Account pursuant to Section 12 above, the Manager will make or
request the following disbursements promptly when payable:
(i) The Manager shall request from the Director of Finance of
the Housing Authority reimbursement to the Manager for compensation payable to the
employees specified in Exhibit F together with an overhead charge percentage that will
be determined annually by the Manager and approved by the Director of Finance of the
Housing Authority. This percentage will be applied to gross payroll with respect to
employees specified in Exhibit F, included on Exhibit F and submitted once each year
during budget review. Said percentage may be adjusted during the budget year with
written approval of the Housing Authority, and will include the employer's portion of
medical, dental, life, Workers Compensation, taxes and assessments payable to local,
state and federal governments in connection with the employment of such personnel.
(ii) Notwithstanding the provisions of sub -Section (a)(i), above,
the Manager shall make disbursements of all sums otherwise due and payable by the
Housing Authority as expenses of the Properties authorized to be incurred by the
Manager under the terms of this Agreement, including compensation payable to the
Manager, pursuant to Section 27 below, for its services hereunder.
(iii) All checks between $2,500 and $4,999 shall require at least
two signatures. All checks for publicly regulated utility services (electricity, natural gas,
water, sewage and cable) over $2,500 shall require at least two signatures, but do not
require a Housing Authority signature. All checks over $5,000 shall require at least two
signatures, one of which must be the signature of an authorized representative of the
Housing Authority.
(iv) All wire transfers will be initiated by the Director of Finance
of the Housing Authority or his/her designee.
(b) Except for the disbursements mentioned in Section 12 above, funds
will be disbursed or transferred from the General Operating Account only as the
Housing Authority may from time to time direct in writing. Manager reimbursement
checks in excess of $500 shall require signatures of both the authorized signatory of
Manager and the Finance Director of the Housing Authority or his/her designee.
(c) In the event the balance in the General Operating Account is at any
time insufficient to pay disbursements due and payable under Section 17(a) above, the
Manager will inform the Housing Authority prior to disbursing funds of that fact and the
Housing Authority's Director of Finance will then remit to the Manager sufficient funds to
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cover the delinquency. In no event will the Manager be required to use its own funds to
pay such disbursements that are directly related to the operation of the Properties.
(d) The Housing Authority will pay for or reimburse to Manager only
those expenses that are expressly authorized by this Agreement to be borne by the
Housing Authority. Any expenses incurred by Manager as a result of any legal
judgment or administrative ruling against Manager or its officers, employees or agents,
or any monetary settlement in lieu of same to resolve any dispute, or the costs incurred
by Manager in connection therewith, including attorneys' fees for advice to or defense of
Manager, shall be the sole responsibility of the Manager. In the event any Housing
Authority monies have been disbursed for this purpose, the Manager shall immediately
reimburse Housing Authority. The Housing Authority may, in its sole discretion, elect to
pay or reimburse the Manager for all or a portion of such expenses and/or costs if the
Housing Authority deems that to be in the best interests of the Housing Authority or the
community which it serves or to promote the public health, safety and/or welfare, and
only upon written agreement between the Housing Authority and Manager, signed by
each of the Parties.
18. Budgets. Manager will prepare and submit annual operating budgets for
the Properties in forms satisfactory to the Director of Finance, which budgets shall
include but not be limited to the following: Current Year Final Budget Adopted; Current
Year Expected Actual; Upcoming Year Budget Request; Detailed Descriptions for any
marginal deviations from Current Year; Detailed Descriptions for any Capital
Expenditures for each Property; including Reserve Accounts where applicable, and
Exhibit F described above. Except as permitted under Section 14(e) above, annual
disbursements for operating expenses will not exceed the amount authorized by the
approved budget without the prior written consent of the Housing Authority. The
Manager shall prepare a recommended operating budget for each fiscal year during the
term of this Agreement, and shall submit to the Housing Authority by March 1st of each
year for the following fiscal year (July 1 to June 30). Additionally, the Manager shall
prepare and submit to the Housing Authority a budget for each fiscal year thereafter
covering the period from July 1 through the next following June 30. Each year of the
term the Housing Authority will promptly inform the Manager of any changes
incorporated in the approved budget, and the Manager will keep the Housing Authority
informed of any material anticipated deviation from the receipts or disbursements stated
in the approved budget. Manager may, upon the written request and after receipt of
written approval of the Housing Authority, make disbursements exceeding the budgeted
allowances within the budgeted categories for the Properties.
19. Records and Reports. In addition to any requirements specified in the
Administrative Plan or other provisions of this Agreement, the Manager will have the
following responsibilities with respect to accounts and reports:
(a) The Manager will establish and maintain, on a modified accrual
basis, a comprehensive system of records, books and accounts in a manner
satisfactory to the Housing Authority. All records, books and accounts will be subject to
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examination at reasonable hours by any authorized representative of the Housing
Authority. The Manager shall maintain the books and records in good condition and
order and shall preserve the books and records for such time period as the Housing
Authority would be legally required to preserve and maintain the books and records.
(b) The Manager will be subject to a quarterly review and an annual
audit conducted by a firm of the Housing Authority's choice. The Manager agrees to
make available all applicable records to the Housing Authority's auditors for annual
review. The report will be prepared in accordance with generally accepted auditing
standards. The audit report submitted by the audit firm will also be subject to a single
audit at the Housing Authority's discretion. The preparer's services will be an expense
of the Housing Authority.
(c) The Manager will furnish information as may be requested by the
Housing Authority from time to time with respect to the financial, physical or operational
condition of the Properties, including, without limitation: (i) calculation and billing rent
and other tenant charges; (ii) maintaining accounts receivable and delinquency records;
(iii) maintaining rent rolls; (iv) processing and paying operating and capital invoices; (v)
recording activity and comparing such activity to budgeted amounts; (vi) reconciling all
expenditures; (vii) remitting excess funds to the Housing Authority and requesting
needed funds from the Housing Authority; (viii) processing payroll for personnel
employed in the discharge of this Agreement and in compliance with taxing authorities
and other reporting requirements associated with payroll; and (ix) reports detailed in
Exhibit I.
(d) By the 20th day of each month, the Manager will furnish the
Housing Authority with an itemized list of all delinquent accounts, including general
operating accounts, as of the tenth day of the same month.
(e) The Manager shall submit, to the Housing Authority's Finance
Director those reports set forth in Exhibit H on the periodic bases set forth in Exhibit H.
Reports designated as "monthly" on Exhibit H shall be submitted by the 20th day of each
month; reports designated as "quarterly" shall be submitted by the 20th day of every
third month, and reports designated as "annual" shall be submitted at the end of the
fiscal year or the end of the calendar year as set forth on Exhibit H. In explanation but
not limitation of the foregoing, the monthly reports to be submitted include: a statement
of receipts and disbursements during the previous month; a schedule of accounts
receivable and payable; reconciled bank statements for all accounts maintained by the
Manager on behalf of the Housing Authority reflecting disbursements and deposit
amounts as of the end of the previous month; a copy of general ledger account
transactions and monthly aggregate utility consumption by utility; and such other
matters relative to the management, operation, and maintenance of the Properties
including actual income and expense balances compared to budgeted or expected
results as required by the Finance Director of Housing Authority. Additional reports may
be requested throughout the year as the Housing Authority deems necessary.
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(f) On the 20th day of each month, the Manager will submit to the
Housing Authority the reports listed on Exhibit I attached hereto and incorporated herein
by reference, to assist the Housing Authority in determining compliance with that certain
Stipulation for Entry of Judgment in case number Indio 51124 as consolidated with case
numbers Indio 51143 and 51159 which has been provided to the Manager.
(g) Confidentiality. All books, records, operating statements, leases
and other material or information relevant to the operation or financial nature of the
Properties shall be maintained in the strictest confidence and shall not be available to
any employee or salesperson of any affiliate of Agent, nor to any other party without the
prior written consent of the Housing Authority or under compulsion of law (e.g.,
subpoena).
20. Fidelity Bond. The Manager will place the Properties on a master fidelity
bond, which provides blanket coverage equal to two months gross rent potential. The
bond will provide coverage for all principals and agents of the Manager and all persons
who participate directly or indirectly in the management of the Properties and their
assets, accounts and records. The premiums for such a bond will be paid and borne by
the Manager. Specifically, coverage for the Manager, including all applicable persons in
the Manager's employ, will be paid by the Manager, and coverage for the Housing
Authority's personnel, if applicable, will be paid by the Housing Authority. Said fidelity
bond shall be issued by a company which is reasonably acceptable to the Housing
Authority, and Manager shall deliver to the Housing Authority a copy of said fidelity bond
upon execution by the Housing Authority of this Agreement. Such coverage shall be in
an amount deemed reasonably appropriate by the City, but shall not be less than the
estimated maximum funds in custody of the Consultant, or twenty-five percent (25%) of
the estimated annual operating expenses of the Project, plus reserves, whichever is
greater.
21. Bids, Discounts, Rebates or Commissions. The Housing Authority and
Manager agree to obtain contract materials, supplies and services at the lowest
possible cost and on the most advantageous terms to the Properties and to secure and
credit to the Properties all discounts, rebates and commissions obtainable with respect
to purchases, service contracts and all other transactions on behalf of the Properties.
The Manager agrees that no goods and services shall be purchased from individuals,
related companies and companies having a financial or pecuniary interest (a "conflict -of -
interest") with the Manager. All vendor accounts shall be opened in the Housing
Authority's name, upon prior written approval of the Housing Authority.
The Manager will develop detailed scopes of work, materials, supplies,
equipment and contractual services for any work or repair the cost of which may exceed
$5,000 for a single Unit or project. The Manager shall comply with the procedures set
forth in Ordinance No. 928 of the City of Palm Desert, and any amendments thereto, in
connection with the purchase of any materials, supplies, equipment and contractual
services to be paid for by the Housing Authority under this Agreement.
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The Manager agrees to accept the bid which represents the lowest price, taking
into consideration the bidder's reputation for quality of workmanship or materials and
timely performance, and the time frame within which the services or goods are needed.
The Manager must make every reasonable effort to assure that the Housing Authority is
obtaining services, supplies and purchases at the lowest possible cost. The Manager
must make a written record of any verbal estimate obtained. Copies of all required bids
and documentation of all other written or verbal cost comparisons made by the Manager
shall be made part of the records of the Properties and shall be retained for three years
from the date the work was completed. This documentation shall be subject to
inspection by the Housing Authority or its designee and the Manager agrees to submit
such documentation upon request. Further, Manager shall annually submit a report to
the Housing Authority describing the outcome of all bidding procedures, which report
shall include the names of all bidders and the amount of their bids, and shall indicate to
which bidder the contract was awarded.
The Manager agrees to make available to the Housing Authority, when
requested, all records of the Manager, which relate to the provision of goods or services
to the Housing Authority whenever funds from the Properties have been used to pay for
such goods and/or services (other than management services).
22. Resident Services Program. The Manager will be responsible for carrying
out any resident retention or social services program described in the Administrative
Plan and any other program or service that may become available that are in the best
interest of the residents or community to promote public health, public safety or tenant
welfare.
23. Resident - Management Relations. The Manager will establish quarterly
meetings at Properties containing 150 or more units to encourage and promote
communication and tenants' initiatives.
24. Defense, Indemnity and Hold Harmless Agreement. The Manager and
Housing Authority agree that the Housing Authority, the Successor Agency to the Palm
Desert Redevelopment Agency, the City of Palm Desert, and their respective officials,
officers, employees, and agents (collectively "Indemnitees") should, to the extent
permitted by law, be fully protected against any loss, injury, damage, complaint, claim,
lawsuit, cost, expense, attorneys fees, litigation costs, defense costs, court costs or any
other cost arising out of or in any way related to Manager's performance of this
Agreement. Accordingly, the provisions of this defense, indemnity and hold harmless
provision are intended by the Parties to be interpreted and construed to provide the
fullest protection possible under the law to the Indemnitees. Manager acknowledges
that Housing Authority would not enter into this Agreement in the absence of the
commitment of Manager to indemnify, defend, protect and hold harmless the Housing
Authority as set forth herein.
To the full extent permitted by law, Manager shall indemnify, defend, protect and
hold harmless the Indemnitees from any liability, complaints, claims, suits, actions,
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arbitration proceedings, administrative proceedings, regulatory proceedings, losses,
expenses or costs of any kind, whether actual, alleged or threatened, actual attorney
fees incurred by Housing Authority, court costs, interest, defense costs including expert
witness fees and any other costs or expenses of any kind whatsoever without restriction
or limitation incurred in relation to, as a consequence of or arising out of or in any way
attributable actually, allegedly or impliedly, in whole or in part to the performance of this
Agreement. All obligations under this provision shall be paid by Manager as they are
incurred by the Housing Authority. Manager shall defend the Indemnitees, and bear the
expense thereof, with lawyers selected or approved by the Housing Authority.
Without affecting the rights of the Indemnitees under any provision of this
Agreement or this Section 24, the Manager shall not be required to indemnify, defend,
protect and hold harmless the Indemnitees as set forth above for liability attributable
solely to the fault of the Indemnitees.
25. Professional Services Insurance Requirements.
Manager shall not commence work under this Agreement until it has provided evidence
satisfactory to the Housing Authority that it has secured all insurance required under this
section. In addition, Manager shall not allow any subcontractor to commence work on
any subcontract until it has provided evidence satisfactory to the Housing Authority that
the subcontractor has secured all insurance required under this section.
Without limiting Manager's indemnification of the Housing Authority, City of Palm
Desert, the Successor Agency to the Palm Desert Redevelopment Agency and prior to
commencement of Work, Manager shall obtain, provide and maintain at its own
expense during the term of this Agreement, policies of insurance of the type and
amounts described below and in a form satisfactory to the Housing Authority.
(a) General Liability Insurance. Manager shall maintain, at its sole cost,
commercial general liability insurance with coverage at least as broad as Insurance
Services Office form CG 00 01, in an amount not less than $2,000,000 per occurrence,
$4,000,000 general aggregate, for bodily injury, personal injury, and property damage,
including without limitation, blanket contractual liability. Defense costs shall be paid in
addition to the limits. The policy shall contain no endorsements or provisions limiting
coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by
one insured against another; or (3) contain any other exclusion contrary to the
Agreement.
(b) Umbrella or Excess Liability Insurance. [Optional depending on
limits required]. Contractor shall obtain and maintain an umbrella or excess liability
insurance policy with limits that will provide bodily injury, personal injury and property
damage liability coverage at least as broad as the primary coverages set forth above,
including commercial general liability and employer's liability. Such policy or policies
shall include the following terms and conditions:
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• A drop down feature requiring the policy to respond if any primary
insurance that would otherwise have applied proves to be uncollectible in
whole or in part for any reason;
• Pay on behalf of wording as opposed to reimbursement;
• Concurrency of effective dates with primary policies; and
• Policies shall "follow form" to the underlying primary policies.
• Insureds under primary policies shall also be insureds under the
umbrella or excess policies.
(c) Automobile Liability Insurance. Manager shall maintain automobile
insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily
injury and property damage for all activities of the Manager arising out of or in
connection with Work to be performed under this Agreement, including coverage for any
owned, hired, non -owned or rented vehicles, in an amount not less than $1,000,000
combined single limit for each accident including coverage for any owned, hired, non -
owned or rented vehicles.
(d) Professional Liability (Errors & Omissions) Insurance. Manager
shall maintain professional liability insurance that covers the Services to be performed
in connection with this Agreement, in the minimum amount of $1,000,000 per
occurrence/$2,000,000 aggregate and policy shall not exclude discrimination, fair
housing, American with Disabilities Act, and sexual molestation violations. Any policy
inception date, continuity date, or retroactive date must be before the effective date of
this agreement and Manager agrees to maintain continuous coverage through a period
no less than three years after completion of the services required by this agreement.
Covered professional services shall specifically include all work to be performed under
the Agreement and delete any exclusions that may potentially affect the work to be
performed (for example, any exclusions relating to lead, asbestos, pollution, testing,
underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written
on a claims -made basis, the retroactive date shall precede the effective date of the
initial Agreement and continuous coverage will be maintained or an extended reporting
period will be exercised for a period of at least three (3) years from termination or
expiration of this Agreement.
(e) Workers' Compensation Insurance. Manager shall maintain
Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance
(with limits of at least $1,000,000). Manager shall submit to the Housing Authority, along
with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the
Palm Desert Housing Authority, the Successor Agency to the Palm Desert
Redevelopment Agency, the City of Palm Desert, and its officers, agents, employees
and volunteers.
(f) Other provisions or requirements
1. Insurance for Subcontractors:
(i) Subcontractors Performing Recurring Work or Work in
Excess of $2500. The Manager shall require all subcontractors or other parties which
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provide (i) recurring services to the Properties, or (ii) services in excess of $2,500 in a
six month Period (a "Major Subcontractor") to the Properties to provide the same
minimum insurance coverage required of the Manager and Workers Compensation
insurance to conform with the requirements of this section. Manager agrees to monitor
and review all such coverage and assumes all responsibility for ensuring that such
coverage is provided in conformity with the requirements of this section. The Manager
agrees that upon request, all agreements with Major Subcontractor, or others with
whom Manager contracts with on behalf of the Authority, will be submitted to the
Authority for review. For purposes of this Section a contractor or party hired for the
work shall be deemed to be performing "recurring work" in the event that contractor or
party hired performs in excess of a single segregated or discrete project in any six-
month period. The Manager agrees to obtain certificates evidencing such coverage and
to make reasonable efforts to ensure that such coverage is provided as required herein.
Failure of the Authority to request copies of such agreements will not impose any
liability on or constitute waiver by the Housing Authority of its rights hereunder. Manager
agrees to require that no contract used by any Major Subcontractor, or contracts the
Manager enters into on behalf of the Housing Authority, will reserve the right to charge
back to the Housing Authority the cost of insurance required by this Agreement.
(ii) Subcontractors Performing Nonrecurring Work or
Work Less Than or Equal to $2500. The Manager shall require all subcontractors or
other parties which provide (i) nonrecurring services to the Properties, and (ii) services
in an amount not to exceed $2,500 in a six-month Period (a "Nonrecurring
Subcontractor") to provide Commercial General Liability insurance in the amounts set
forth below and Workers Compensation insurance to conform with the requirements of
this section. For purposes of Section 25, a contractor or party hired for the work shall
be deemed to be providing "nonrecurring work," so long as that contractor or party hired
for the work does not perform more than a single segregated or discrete project in a six-
month period. In the event a Nonrecurring Subcontractor performs more than a single
discrete project in a six-month period or work exceeding $2,500 in value, that
Nonrecurring Subcontractor shall lose its status as a "Nonrecurring Subcontractor" and
shall be automatically deemed a "Major Subcontractor". The liability limits for
Nonrecurring Subcontractors shall provide no less than $500,000 per occurrence for all
coverages and $500,000 in the general aggregate. The Manager agrees to verify such
coverage and make reasonable efforts to ensure that such coverage is provided as
required herein. The Manager agrees to require that no contract used by any
Nonrecurring Subcontractor, or contracts the Manager enters into on behalf of the
Housing Authority, will reserve the right to charge back to the Authority the cost of
insurance required by this Agreement. The Manager agrees that upon request, all
agreements with Nonrecurring Subcontractors, or others with whom Manager contracts
on behalf of the Housing Authority, will be submitted to the Housing Authority for review.
Failure of the Housing Authority to request copies of such agreements will not impose
any liability on the Housing Authority nor constitute a waiver of the rights of the Housing
Authority hereunder.
2. Proof of Insurance: Manager shall provide certificates of
insurance to the Housing Authority as evidence of the insurance coverage required
herein, along with a waiver of subrogation endorsement for workers' compensation.
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Insurance certificates and endorsement must be approved by the Housing Authority and
the City of Palm Desert Risk Manager prior to commencement of performance. The
certificates and endorsements for each insurance policy shall be signed by a person
authorized by that insurer to bind coverage on its behalf. Current certification of
insurance shall be kept on file with Housing Authority at all times during the term of this
contract. The Housing Authority reserves the right to require complete, certified copies
of all required insurance policies, at any time.
3. Duration of Coverage: Manager shall procure and maintain
for the duration of the contract insurance against claims for injuries to persons or
damages to property, which may arise from or in connection with the performance of the
Work hereunder by Manager, his agents, representatives, employees or subcontractors.
4. The Housing Authority's Rights of Enforcement: In the event
any policy of insurance required under this Agreement does not comply with these
specifications or is canceled and not replaced, The Housing Authority has the right but
not the duty to obtain the insurance it deems necessary and any premium paid by the
Housing Authority will be promptly reimbursed by Manager or Housing Authority will
withhold amounts sufficient to pay premium from Manager payments. In the alternative,
the Housing Authority may cancel this Agreement.
5. Acceptable Insurers: All insurance policies shall be issued by
an insurance company currently authorized by the Insurance Commissioner to transact
business of insurance in the State of California, with an assigned policyholders' Rating
of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the
latest edition of Best's Key Rating Guide, unless otherwise approved by the Housing
Authority and/or the City of Palm Desert Risk Manager.
6. Waiver of Subrogation: All insurance coverage maintained
or procured pursuant to this agreement shall be endorsed to waive subrogation against
the Palm Desert Housing Authority, the Successor Agency to the Palm Desert
Redevelopment Agency, the City of Palm Desert, and its elected or appointed officers,
agents, officials, employees and volunteers or shall specifically allow Manager or others
providing insurance evidence in compliance with these specifications to waive their right
of recovery prior to a loss. Manager hereby waives its own right of recovery against the
Palm Desert Housing Authority, the Successor Agency to the Palm Desert
Redevelopment Agency, and City of Palm Desert, and shall require similar written
express waivers and insurance clauses from each of its subcontractors.
7. Enforcement of Contract Provisions (Non Estoppel):
Manager acknowledges and agrees that any actual or alleged failure on the part of the
Housing Authority to inform Manager of non-compliance with any requirement imposes
no additional obligations on the Housing Authority nor does it waive any rights
hereunder.
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8. Primary and Non -Contributing Insurance: All insurance
coverages shall be primary and any other insurance, deductible, or self-insurance
maintained by the indemnified parties shall not contribute with this primary insurance.
Policies shall contain or be endorsed to contain such provisions.
9. Requirements Not Limiting: Requirements of specific
coverage features or limits contained in this Section are not intended as a limitation on
coverage, limits or other requirements, or a waiver of any coverage normally provided
by any insurance. Specific reference to a given coverage feature is for purposes of
clarification only as it pertains to a given issue and is not intended by any party or
insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type.
10. Notice of Cancellation: Manager agrees to oblige its
insurance agent or broker and insurers to provide to Housing Authority with a thirty (30)
day notice of cancellation (except for nonpayment for which a ten (10) day notice is
required) or nonrenewal of coverage for each required coverage.
11. Additional Insured Status: General liability, Automobile
Liability, and if applicable, Pollution Liability, policies shall provide or be endorsed to
provide that the Palm Desert Housing Authority, the Successor Agency to the Palm
Desert Redevelopment Agency, the City of Palm Desert and their officers, officials,
employees, and agents shall be additional insureds with regard to liability and defense
of suits or claims arising out of the performance of the Agreement, under such policies.
This provision shall also apply to any excess liability policies.
12. The Housing Authority's Right to Revise Specifications: The
Housing Authority reserves the right at any time during the term of the contract to
change the amounts and types of insurance required by giving the Manager ninety (90)
days advance written notice of such change. If such change results in substantial
additional cost to the Manager, the Housing Authority and Manager may renegotiate
Manager's compensation.
13. Self -Insured Retentions: Any self -insured retentions must be
declared to and approved by the Housing Authority. The Housing Authority reserves the
right to require that self -insured retentions be eliminated, lowered, or replaced by a
deductible. Self-insurance will not be considered to comply with these specifications
unless approved by the Housing Authority.
14. Timely Notice of Claims: Manager shall give the Housing
Authority prompt and timely notice of claims made or suits instituted that arise out of or
result from Manager's performance under this Agreement, and that involve or may
involve coverage under any of the required liability policies.
15. Safety: Manager shall execute and maintain its work so as to
avoid injury or damage to any person or property. In carrying out its Services, the
Manager shall at all times be in compliance with all applicable local, state and federal
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laws, rules and regulations, and shall exercise all necessary precautions for the safety
of employees appropriate to the nature of the work and the conditions under which the
work is to be performed. Safety precautions, where applicable, shall include, but shall
not be limited to: (A) adequate life protection and lifesaving equipment and procedures;
(B) instructions in accident prevention for all employees and subcontractors, such as
safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space
procedures, trenching and shoring, equipment and other safety devices, equipment and
wearing apparel as are necessary or lawfully required to prevent accidents or injuries;
and (C) adequate facilities for the proper inspection and maintenance of all safety
measures.
16. Additional Insurance: Manager shall also procure and
maintain, at its own cost and expense, any additional kinds of insurance, which in its
own judgment may be necessary for its proper protection and prosecution of the work.
26. Compliance With Governmental Orders. The Manager will take such
action as may be necessary to comply promptly with any and all governmental orders or
other requirements affecting the Properties, whether imposed by federal, state, county
or municipal authority. Notwithstanding the foregoing, the Manager shall take no such
action so long as the Housing Authority is contesting, or has affirmed its intention to
contest, any such order or requirement. The Manager will notify the Housing Authority
in writing of all notices of such orders or other requirements as soon as possible from
the time of their receipt.
27. Manager's Compensation. The Manager will be compensated for its
services under this Agreement by monthly management fees. Such fees will be
payable on the first day of each month, in arrears, for the services provided in the prior
month for the term of this Agreement. For the purpose of this Section, the term
'occupied units' shall include those Units which are currently leased, on notice to
vacate, or temporarily vacant due to a move out. The Management Fee ("Fee") shall be
calculated monthly according to the following schedule:
(a) In the case of occupied units, each such monthly fee shall be in the
amount of $36.00 per Unit per month, to be increased $1.00 commencing on July 1,
2018 and every July 1st thereafter for the remainder of the Term of this Agreement;
except as follows:
(i) For Units where a Notice of Termination of Tenancy
("Notice") was provided by the tenant as required (30 calendar day notice) and a Unit
remains vacant for 30 calendar days or more, Manager will not be entitled to the
monthly fee, except in those circumstances where the vacancy is the result of the
Housing Authority's leasing process for affordable Units.
(ii) For Units where no Notice was given, the tenant chose to
`quit' or the tenant skipped, and a Unit remains vacant for 45 calendar days or more,
Manager will not be entitled to the monthly fee.
Contract No. HA35560
DRAFT
(b) In the case of unoccupied Units (except those Units described in
Section 27(c-e) below), each such monthly fee shall be as follows:
(i) $36 per Unit per month for the first four months for Units that
have been determined, in the Housing Authority's sole and absolute discretion, to be
`unrentable' or `down' due to physical condition or damage. Unless otherwise
determined by the Housing Authority, Manager is expected to repair said Units within
the four months. If Manager fails to repair units within the given time, no fee will be paid
until the unit is available for occupancy.
(ii) No Fee will be paid for Units that are unrentable or down due
to action or inaction by the Manager.
(iii) $36 per Unit per month for those units specifically indentified
in Item No. 16 of Exhibit A and any amendments thereto. These units are typically
owned by the Housing Authority and are considered `for -sale' units. Said units are to
remain unoccupied unless, in the Housing Authority's sole and absolute discretion it
determines otherwise. Manager is expected to maintain said units in the same condition
as when originally assigned as well as visually inspect, coordinate services, complete
any minor repairs, and respond to emergencies. Fees for these units shall be payable
monthly in arrears until the date of the close of escrow wherein the ownership is no
longer the Housing Authority or at such time as the Housing Authority notifies Manager
otherwise.
(c) In the case of Units that are newly constructed or newly renovated
which will be added to Exhibit A, the Fee shall be $10 per Unit per month commencing
at such time as the construction/renovation has reached 90% completion as determined
by the Contractor's billing until Certificate of Occupancy, in the case of new units, or
Certificate of Completion, in the case of renovated Units, is issued.
(d) In the case of Units which were `downed', as described in Section
27(b)(i) and direction has been given to the Manager by the Housing Authority not to
repair said Units, commencing with the fifth month, the Fee shall be reduced to $20 per
Unit per month until Manager is no longer responsible for said Units.
(e) Except as otherwise expressly provided in this Agreement, all
employees not identified in Exhibit F and other overhead expenses of the Manager
(including but not limited to costs of office supplies and equipment, postage,
transportation, travel expenses for managerial personnel and telephone services) will be
borne by the Manager. All services for management, accounting, and reporting, with
exception of the Housing Authority's requested annual audit, shall be bome by the
Manager.
In addition to the Management Fee, the site employees for the Properties
shall be paid based on the Employee Salaries listed on Exhibit F attached hereto and
incorporated herein by this reference.
Contract No. HA35560
DRAFT
28. Termination.
(a) Authority's Termination For Convenience. Authority may terminate
this Agreement for convenience by giving not less than 180 days' written notice of
termination. The notice of termination shall specify that the termination is for the
convenience of the Authority. Upon a Termination For Convenience, the Authority shall
continue to pay Manager for all work performed up to the date of termination. Manager
shall be compensated only for those services that have been satisfactorily rendered to
the Housing Authority, and Manager shall be entitled to no further compensation.
Authority shall not be liable for any post -termination costs, lost profits, or other alleged
damages resulting from a Termination for Convenience.
(b) Authority's Termination For Cause. Authority may terminate this
Agreement with cause by giving written notice to Manager not less than 45 days prior to
the date of termination. Any such written notice for cause shall specify the default. If
the default specified has not been cured within 21 days of receipt of the notice, this
Agreement shall terminate on the date of termination set forth in the notice. Upon
termination, Manager shall be compensated only for those services that have been
satisfactorily rendered to the Housing Authority, and Manager shall be entitled to no
further compensation.
(c) Manager's Termination For Cause. Manager may terminate this
Agreement with cause by giving written notice to the Authority not less than 120 days
prior to the date of termination. Any such written notice for cause shall specify the
default. If the default specified has not been cured within 21 days of receipt of the
notice, this Agreement shall terminate on the date of termination set forth in the notice.
(d) Termination at End of Term/Extension. At least ninety (90) days prior
to the automatic termination of this Agreement (the "Negotiation Period"), and unless
either Party has given timely notice under this Section prior thereto, the Parties shall
initiate negotiations for a new agreement for Property Management Services and use
best efforts and engage in good faith negotiations to finalize such agreement and obtain
final approval thereof prior to the automatic termination of this Agreement. In the event
such good faith efforts are not completed before the expiration of the Term, or in the
event either Party gives notice to the other during the Negotiation Period of its decision
not to enter into a further term, this Agreement may be extended for not more than
ninety (90) days after the giving of such notice or December 31, 2021, whichever is
later, upon the written authorization of the Executive Director of the Housing Authority.
Good faith negotiations may include an extension of this Agreement up to an additional
twenty-four (24) months provided that any such extension shall require the authorization
of the Housing Authority Board and shall be in writing, as an Amendment to this
Agreement, signed by both Parties. Nothing herein shall prevent the Housing Authority
Board from electing to issue a Request for Proposal for Property Management Services
in lieu of negotiating with Manager.
Contract No. HA35560
DRAFT
(e) No Evergreen Clause. Nothing in this Agreement or otherwise
creates any "Evergreen clause" nor creates any rights by any Party to an extension of
this Agreement, or any provision thereof, for any period, or at all.
(f) Bankruptcy. In the event that a petition in bankruptcy is filed by
either of the Parties, or in the event that either Party makes an assignment for the
benefit of creditors to take advantage of any insolvency act, this Agreement shall
automatically terminate.
(g) Sale of Properties. This Agreement shall automatically terminate,
upon the sale of the Properties, or as to any Property, on the sale of such Property,
except that, this provision shall not apply in the event of a sale, transfer, or re -
conveyance by and between the former Palm Desert Redevelopment Agency, the
Housing Authority, the Successor Agency to the Palm Desert Redevelopment Agency,
the City of Palm Desert, and/or any related or successor agency or entity.
(h) Addition of Properties. In the event the Housing Authority adds
a property to its operations portfolio, Manager and Housing Authority's designee may
agree in writing to amend Exhibit A for the inclusion of said property. Such amendment
shall be subject to the terms and conditions herein from the effective date of the
amendment.
(i) Exchange of Documents. Upon termination of this Agreement, the
Manager will submit to the Housing Authority any financial statements requested by the
Housing Authority and, after the Parties have accounted to each other with respect to all
matters outstanding as of the date of termination, the Housing Authority will furnish the
Manager security in form and principal amount satisfactory to the Manager against any
obligations or liabilities which the Manager may properly have incurred on behalf of the
Housing Authority hereunder. All of the cash trust accounts, investments, equipment
and records for the Properties will be turned over to the Housing Authority within 30
days of the date this Agreement is terminated. The Parties hereby covenant and agree
that the Housing Authority shall own the books and records for the Properties and that
the Manager shall hold the books and records for the Properties for the benefit of the
Housing Authority for an agreed upon period at the time of termination.
29. Manager's Indemnification. Subject to the Manager's indemnification
obligations hereunder as set forth in Section 24, the Parties understand and agree:
(a) That the Housing Authority has assumed and will maintain its
responsibility and obligation through the Term of this Agreement for the finances and
the financial marketability of the Properties; and
(b) That the Manager shall have no obligation, responsibility or liability
to fund authorized costs, expenses, or accounts other than those funds generated by
the Properties themselves or provided to the Properties or to the Manager by the
Housing Authority. In accordance with the foregoing, the Housing Authority agrees that
Contract No. HA35560
DRAFT
the Manager shall have the right at all times to withdraw payment of its compensation,
as provided for under Section 27 of this Agreement, from the General Operating
account or accounts, immediately when such compensation is due and without regard
to other property obligations or expenses conditioned on the Manager having
satisfactorily discharged all duties and responsibilities under this Agreement. Moreover,
the Housing Authority hereby indemnifies the Manager and agrees to hold it harmless
with respect to costs, expenses, accounts, liabilities and obligations of the Properties
during the Term of this Agreement and further agrees to guarantee to the Manager the
payment of its compensation under Section 27 of this Agreement during the Term of this
Agreement to the extent that the Operating and Maintenance Account for the Properties
are insufficiently funded for this purpose. Failure of the Housing Authority at any time to
abide by and to fulfill the foregoing shall be a breach of this Agreement entitling the
Manager to obtain from the Housing Authority, upon demand, full payment of all
compensation owed to the Manager through the date of such breach.
30. Prohibition Against Assignment and Subcontracting Management
Services. Manager shall not assign this Agreement or subcontract any management or
other services, without the express prior written consent of the Housing Authority.
31. Notices. Except as otherwise provided by law, any and all notices or other
communications required or permitted by this Agreement or by law to be served on or
given to either Party to this Agreement by the other Party shall be given in writing. All
such notices or other communications shall be deemed duly served and given when
personally delivered to the Party to whom they are so directed, or in lieu of personal
service when deposited in the United States mail, first-class postage prepaid,
addressed to the respective Party as set forth below:
To the Housing Authority:
Palm Desert Housing Authority
73-510 Fred Waring Drive
Palm Desert, California 92260-2578
Attention: Janet Moore
With a copy to:
Richards, Watson & Gershon
355 South Grand Avenue, 40th Floor
Los Angeles, California 90071-3101
Attention: William L. Strausz
To the Manager:
RPM COMPANY
1420 S. Mills Avenue, Ste. M
Lodi, CA 95240
Contract No. HA35560
DRAFT
Attention: Donnie Garibaldi
Either Party may change its address for the purpose of this Section 31 by giving
written notice of the change to the other Party in the manner provided in this Section.
32. General Provisions.
(a) Binding on Successors and Assigns. At all times, this Agreement
will enure to the benefit of and constitute a binding obligation upon the Parties and their
respective successors and assigns.
(b) Entire Agreement and Allowable Chances. This Agreement
constitutes the entire Agreement between the Housing Authority and the Manager with
respect to the management and operation of the Properties, and all prior agreements
between the Housing Authority and the Manager regarding the subject matter of this
Agreement are hereby superseded and replaced. Changes hereto must be made by
supplemental written agreement signed by the Parties. Exhibits hereto may be
amended as necessary by the written agreement of the Parties.
(c) Attorneys' Fees. If any litigation is commenced between the Parties
concerning the Properties, this Agreement, or the rights and duties of either Party with
respect to this Agreement, the Party prevailing in the litigation shall be entitled, in
addition to any other relief that may be granted in the litigation, to reasonable attorneys'
fees and costs.
(d) Ambiguities. Each Party and their counsel have participated fully in
the drafting of this Agreement. Any rule of construction to the effect that ambiguities are
to be resolved against the drafting Party shall not apply in interpreting this Agreement.
(e) Severabilitv of Agreement. If a court or an arbitrator of competent
jurisdiction holds any provision of this Agreement to be illegal, unenforceable or invalid
in whole or in part for any reason, the validity and enforceability of the remaining
provisions, or portions of them will not be affected.
(f) Approval by Housing Authority. Whenever a provision of this
Agreement requires the delivery of documents or reports, notifications, determinations,
reimbursements or requests for funding, review, authorization or approval of the
Housing Authority, such approval may be given by the Executive Director of the
Housing Authority or his/her designee, unless Housing Authority Board action is
specified in this Agreement.
(g) Word Usage. Unless the context clearly requires otherwise, (a) the
plural and singular shall each be deemed to include the other; (b) the masculine,
feminine, and neuter genders shall each be deemed to include the others; (c) "shall,"
"will," or "agrees" are mandatory, and "may" is permissive; (d) "or" is not exclusive; and
(e) "includes" and "including" are not limiting.
Contract No. HA35560
DRAFT
[Signatures follow on next page]
Contract No. HA35560
DRAFT
IN WITNESS THEREOF, the Parties have executed this Agreement on the date
first above written.
Manager:
RAY, DOUGLAS, ANN & PATRICK, INC.,
a California corporation, dba
RPM Company Apartment
Management Services
By:
By:
Title:
Title:
Authority:
PALM DESERT HOUSING AUTHORITY, a
public body, corporate and politic
By:
Title: Robert A. Spiegel, Chairman
ATTEST:
Rachelle D. Klassen, Secretary
APPROVED AS TO FORM:
William L. Strausz, Authority Counsel
Richards, Watson and Gershon
Contract No. HA35560
DRAFT
EXHIBIT A
(PROPERTIES)
PALM DESERT HOUSING AUTHORITY
AFFORDABLE HOUSING UNITS
PROJECT DESCRIPTION
1. One Quail Place
72-600 Fred Waring Drive
156-one bedroom, 228-two bedroom (384 Total Units)
Amenities: Gated Community, 4 Pools, 4 Spas, 4 Tennis Courts, Head
Start Day Care Center, Community Courtyard with Picnic Area, Children's
Play Area, Resident Library, Laundry Facilities and Covered Parking
2. Desert Pointe
43-805 Monterey Avenue
34-studio, 24-one bedroom, 6-two bedrooms (64 Total Units)
Amenities: Pool, Children's Play Area, Gathering Area, Laundry
Facilities and Covered Parking
3. Neighbors Apts.
73-535 Santa Rosa Way
24-two bedrooms (24 Total Units)
Amenities: Pool, Laundry Facilities and Covered Parking
4. The Pueblos Apts.
73-695 Santa Rosa Way
15-one bedroom units (15 Total Units)
Amenities: Pool, Adjacent Community/Resident Services Building,
Laundry Facilities and Covered Parking
5. Catalina Gardens
73-600A Catalina Way
48-studios, 24-one bedroom (72 Total Units)
Amenities: Pool, Laundry Facilities, Covered Parking and
Community/Resident Services Building
6. Taos Palms
44-830 Las Palmas Avenue
16-two bedroom (16 Total Units)
Contract No. HA35560
DRAFT
Amenities: Gated Community with Telephone Entry Access, Pool,
Laundry Facilities and Privacy Railings
7. Las Serenas
73-315 Country Club Drive
100-one bedroom, 50 one -bedroom + Den (150 Total Units)
Amenities: Resident Service Building, Computer Room with Internet
Access, 3 Pools, 1 Spa, Laundry Facilities and Covered Parking
8. Laguna Palms
73-875 Santa Rosa
4 studios, 16 one -bedroom, 28 two -bedroom (48 Total Units)
Amenities: Pool, Laundry Facilities, Community Gathering Area
9. California Villas
77-107 California Drive
140 one -bedroom, 1 two -bedroom (141 Total Units)
Amenities: Resident Service Building, Computer Room with Internet
Access, Library, Pool, Spa and Laundry Facilities
10. Palm Village Apartments
73-650 Santa Rosa Way
36 two -bedroom (36 Total Units)
Amenities: Laundry Facilities and Covered Parking
11. Candlewood Apartments
74000-74002 Shadow Mountain Drive
26 one -bedroom, 4 two -bedroom (30 Total Units)
Amenities; Laundry facilities, Pool and a Spa
12. La Rocca Villas
42-135 Golden Eagle Lane
27 one -bedroom (27 Total Units)
Amenities: Laundry Facility, Resident Service Building, Common Area,
Covered Parking and ADA Accessibility
13. Sagecrest Senior (includes vacant property to the North and West)
73-811 Santa Rosa Way
14 Studios (14 Total Units)
Amenities: Covered Carport Parking, Community Courtyard, Elevator
14. Carlos Ortega Villas
77-915 Avenue of the Staes
72 one -bedroom (73 Total Units)
Contract No. HA35560
DRAFT
Amenities: Laundry Facility, Resident Service Building, Common Area,
Covered Parking and ADA Accessibility
15. Santa Rosa Apartments
73-625 Santa Rosa Way
20 two -bedroom (20 Total Units)
Amenities: Laundry Facilities, Common Area and Covered Parking
16. Desert Rose/Falcon Crest Single Family Residences
Various locations throughout the developments which are owned by the
Authority. Specific units will be assigned during the term of the agreement
by written amendment to this Exhibit.
Contract No. HA35560
DRAFT
EXHIBIT B
[intentionally omitted]
EXHIBIT C
MANAGEMENT OFFICES
Location of Management Offices
One Quail Place
(located in management office)
Las Serenas
(located in management office)
Catalina Gardens
(located in management office)
Desert Pointe
(located in management office)
California Villas
(located in management office)
Contract No. HA35560
Locations Managed
One Quail Place
Las Serenas and La Rocca Villas
Catalina Gardens, The Pueblos,
Candlewood Apartments, and Sagecrest
Senior
Desert Pointe, Taos Palms and
Neighbors Apartments
California Villas
Laguna Palms Laguna Palms and Palm Village
(located in management office) Apartments
Contract No. HA35560
EXHIBIT D
DEPOSIT ACCOUNTS
The following security deposit accounts shall be maintained by the Manager for
the benefit of the Housing Authority:
TBD UPON AWARD
The following operating deposit accounts shall be maintained by the Manager for
the benefit of the Housing Authority:
TBD UPON AWARD
Contract No. HA35560
EXHIBIT E
NON -COLLUSIVE AFFIDAVIT FORM
AFFIDAVIT
State of California )
)ss.
County of Riverside )
, being first duly sworn, deposes and says:
That he is , the party making the foregoing proposal
or bid, that such proposal or bid is genuine and not collusive or sham; that said bidder
has not colluded, conspired, connived or agreed, directly or indirectly, sought by
agreement or collusion, or communication or conference, with any person, to fix the bid
price or affiant, or of any other bidder or to fix any overhead profit or cost element of
said bid price, or that of any other bidder or to secure any advantage against the
or any person interested in the
proposed contract, and that all statements in said proposal or bid are true.
Signature of Person Making Affidavit:
Subscribed and sworn to me this day of , 20
My commission expires , 20
Notary Public Signature:
Official Seal:
Contract No. HA35560
EXHIBIT F
PROPERTY STAFFING & SALARY RANGES
To be provided annually with the property budgets to the City of Palm Desert
Director of Finance for approval.
Contract No. HA35560
EXHIBIT G
PERFORMANCE CRITERIA
1. PROPERTY PORTFOLIO NET OPERATING INCOME COMPARISON
a. Current Budget Year: July - June
b. Budgeted vs. Actual = Variance
c. Vacancy Rate Analysis
2. RESPONSE TO RESIDENT COMPLAINTS
a. Response to service requests/turn around time
b. Response to resident complaints and concerns - monthly meetings
c. Response to resident complaints and concerns at site office
3. COMPLIANCE WITH AGREEMENT
Define any notable gross disparities from the Agreement on the following:
a. Report preparation and submittal promptness
b. Responsiveness to Housing Authority requests
c. Method of accounting
4. CAPITAL IMPROVEMENTS SCHEDULE
a. Deferred Capital Improvement Schedule
b. Capital Improvement Program
c. Maintenance and general appearance of properties
5. OPERATIONS
Operational procedures to be audited
a. Compliance with Stipulation
b. Compliance with all laws including those related to property
management, Fair Housing, and housing authorities
c. Recertification
d. Internal controls
e. Contract controls
Contract No. HA35560
6. ACCOUNTING AUDIT
a. Review of Annual Audit Findings
b. Quarterly Audits
7. AFFORDABLE HOUSING PROGRAM
a. Housing Housing Authority goals
b. Management Company goals
c. Program implementation
d. Compliance with local, state and Federal regulations
e. Tenant Household Income Analysis
8. RESIDENT RELATIONS
a. Review summary responses of any resident surveys
b. Establishment of Tenant Exit Survey
9. GENERAL
a. General overview of previous operational year
38
Contract No. HA35560
EXHIBIT H
LIST OF FINANCIAL REPORTS REQUIRED
Monthly Reports
1. Payroll register and invoices (may be submitted after every payroll or
monthly)
2. Management Fee Report that includes Vacancies/Current Rental Activity
submitted with invoice
3. Disbursement/Expense Journals for each check run
4. General Ledgers for all Properties
5. Check Registers for all Properties
6. Monthly Bank Reconciliations with Outstanding Check Registers
7. Balance Sheets and/or Trial Balances for all Properties
8. Rent Rolls for all Properties
9. Delinquent A/R for all Properties
10. Prepaid Listing for all Properties
11. Income Statements with Monthly Budget Variance as well as Annual
Variance
12. Monthly Adjusting Journals
13. Cash Receipts Journals
Quarterly Reports
1. Security Deposit List for all Properties (If not included in the monthly rent
roll)
2. Status Report on Items over 90 days (Requests to the Board for write offs,
etc.)
Contract No. HA35560
Annual Reports Required
At Fiscal Year End:
1. Schedule of Accounts Payable
2. Schedule of Accounts Receivable
3. Inventory of all Housing Authority personal property and readily removable
fixtures attached to the Properties
4. Preliminary sets of Monthly closing reports, when requested
5. Once audited, Final Set of all June Closing Reports
6. Schedule of Security Deposits Matching the Cash Held
7. The Report described in Section 21
At Calendar Year End:
8. Copies of the transmittals for Federal Reporting Requirements for W-2's
and 1099's
Analytical Reports:
9. Upon request of the Housing Authority, reports analyzing various information
required in the above Financial Reports (May include summaries of all properties
and/or multi -year information).
Contract No. HA35560
EXHIBIT I
Leasing Reports:
1. Monthly Occupancy and Average Rent Statement
2. Monthly Net Operating Income Statement
3. Replacement Lists maintained continuously due at least once annually on
June 30.
4. Resident Demographics Report
5. Service Request and Serious Complaints
6. Other reports as requested or as necessary to perform the requirements of
the Agreement.
Contract No. HA35560
EXHIBIT J
On -going services requiring written cost estimates include any required in Section 21 of
the Management Agreement as well as:
1. Landscape Contracts
a. Monthly Services
b. Annual Services including tree trimming, overseeding, and perennial
flowers
2. Pest Control Services
3. Pool Services
4. Floor Coverings Replacement
5. Laundry Services
6. Air Conditioning/Heating Unit Servicing, Cleaning and Replacement Services
7. Flooring or Housekeeping Cleaning Services
8. Environmental Testing and Cleaning Services
9. Moving Company Services
10. Golf Cart Repair and Maintenance Services
11. Courtesy Patrol Services
12. Towing Services
A vendor list may be created and approved by the Housing Authority Board pursuant to
Section 3.32.110 of the Municipal Code and may satisfy the above requirements.
Note: Due to the availability of vendors when services are required, more than one
vendor may be authorized by the Housing Authority for said services.
Contract No. HA35560
EXHIBIT K
NON-EXCLUSIVE LIST OF REQUIRED AND PERMISSIVE BACKGROUND CHECK
INFORMATION BY TYPE OF FUNDING
SOURCE OF INFORMATION FEDERAL FUNDS INVOLVED FEDERAL FUNDS NOT INVOLVED
INFO
INVESTIGATION DISCLOSURE INVESTIGATION DISCLOSURE
& CONSENT & CONSENT
Law Illegal Drug Use Required Housing May obtain Must notify
enforcemen Auth. must applicant, if
t agencies require & basis for
applicant denial
must consent
Drug Use that Interferes Required Housing May obtain Must notify
with Health & Safety of Auth. must applicant, if
Others require & basis for
applicant denial
must consent
Sex Offenses Required Housing May obtain Must notify
Auth. must applicant, if
require & basis for
applicant denial
must consent
"Serious" crimes May obtain Must notify May obtain Must notify
applicant, if applicant, if
• murder, basis for basis for
mayhem, rape, denial denial
burglary
• hate crimes
• offenses re
firearms /
explosives
• felonies
involving drugs,
alcohol
• domestic
violence
Juvenile Records Prohibited N/A Prohibited N/A
Arrests Not Resulting in Prohibited N/A Prohibited N/A
Conviction
State / Social Security Numbers Required Housing May Obtain Application
Federal Auth. must must indicate
Government require & disclosure is
applicant voluntary
must consent
Citizenship / Residency Required Housing Prohibited N/A. But, if
Info Auth. must Housing
require & Auth. Has
applicant unsolicited
must consent evidence that
applicant is
undocumente
d, it must
reject the
application
Contract No. HA35560
SOURCE OF INFORMATION FEDERAL FUNDS INVOLVED FEDERAL FUNDS NOT INVOLVED
INFO
INVESTIGATION
DISCLOSURE
& CONSENT
Income / family Required Housing
composition & tax info, to Auth. must
verify eligibility require &
applicant
must consent
INVESTIGATION
Required
DISCLOSURE
& CONSENT
Housing
Auth. must
require &
applicant
must consent
Credit Investigative Consumer May Obtain Housing May Obtain Housing
Agencies Report Authority Authority
must notify must notify
• Credit History applicant applicant
• Character
• Reputation
• Personal
characteristics
• Mode of living
• Convictions May Obtain, but Housing May Obtain, but Housing
• Civil Actions only if credit Authority only if credit Authority
• TiY I fans agency has must notify agency has must notify
• Bankruptcies Prohibited N/A Prohibited N/A
more than 10y
prior
• Civil judgments
more than 7y
old
Public Relevant background May Obtain Must notify May Obtain Must notify
Records information applicant, if applicant, if
Obtained basis for basis for
From Other • Creditworthines denial. denial.
Sources; s Consent Consent
Interviews • Credit standing recommende recommende
with • Credit capacity d. d.
Neighbors, • Civil actions
Friends & • Convictions
Associates • Tax Liens
• Outstanding
Judgments
• Character
• General
Reputation
• Personal
characteristics
• Mode of Living
In addition to credit reporting agencies, background check information may be obtained
from Westlaw, Lexis, DataQuick, Merlin, Choice Point, and similar reputable resources.
SAMPLE CONSENT BY APPLICANT
"I understand that the Housing Authority or its agent will perform a background check as a part of
determining eligibility, including but not limited to obtaining information concerning my employment, credit
history, benefits, income, assets, and criminal history, and by my signature below, I hereby authorize the
Housing Authority or its agent to do so.""I certify that the statements on this application are true and
complete to the best of my knowledge and belief and I understand that they will be verified. I understand
that any false statements made on this application or failure to make any required disclosures may cause
me to be disqualified from initial or continuing eligibility for housing assistance and may result in eviction.
further understand that I am under a continuing obligation to inform the Housing Authority or its agent of
any changes to any of the information provided in this Application, and that failure to promptly inform the
Housing Authority or its Agent of any changes may cause me to be disqualified from initial or continuing
eligibility for housing assistance and may result in eviction."
RFQ/RFP for Affordable Housing Compliance and Property Management Services
CONTRACT NO. HA35560
Staff Review of Proposals
EVALUATION OF PROPOSAL
A. Experience Summary
Does the Proposer:
1 Provide enough information that the Firm as
well as the Individuals that would be assigned
to the Authority's portfolio, have knowledge
and experience to provide the Scope of
Services?
2 Demonstrate that the Firm as well as the
Individuals that would be assigned to the
Authority's portfolio, have the qualifications
needed to perform the Scope of Services?
6 YES 0 NO 0 DIDN'T ANSWER
6 YES 0 NO 0 DIDN'T ANSWER
B. Services Approach Summary
Does the "Service Approach Summary":
1 Describe how the Proposer will provide the
Scope of Services?
2 Address the services required completely,
exhibit knowledge, or other elements to
demonstrate the Proposer can satisty the
Scope of Services or justify the Proposer is
qualified.
3 Describe clearly the roles of Individuals that
would be assigned to the Authority's
portfolio?
6 YES 0 NO 0 DIDN'T ANSWER
6 YES 0 NO 0 DIDN'T ANSWER
6 YES 0 NO 0 DIDN'T ANSWER
4 YES 0 NO 2 DIDN'T ANSWER
4 YES 2 NO 0 DIDN'T ANSWER
6 YES 0 NO 0 DIDN'T ANSWER
6 YES 0 NO 0 DIDN'T ANSWER
5 YES 1 NO 0 DIDN'T ANSWER
1 Do any of the answers to the questions leave
you unclear about the answer?
2 If yes, list those questions and briefly why.
4 YES 2 NO 0 DIDN'T ANSWER
• Q. No. 2, would like to see more detail on other
properties they manage. Comment = I like their
statement on p. 259 under emerg. Procedures
guide.
4 YES
2 NO
0 DIDN'T ANSWER
• Need more details of proposed structure
• #17 they states "yes" but then give reasons
that don't sound like termination by definition.
• Q3 - Would have like to see more detailed
response, Q2 - refers to a chart on page 220,
when it is actually on page 217 i believe. i
shouldn't have to hunt for the information.
• Hyder proposal appeared to be "thrown
together" from their template, without any
consideration to the specific request and needs
of the PDHA.
1. What is the overall image of the:
Proposal ?
Qualification of the Firm ?
Attentiveness to their responses?
5 Excellent - 0 Good - 1 Complete
0 Incomplete
5 Excellent - 1 Good - 0 Qualified
0 Not -Qualified
3 Clear Answers direct to Authority
2 Answered - 0 Answered but not clear
2. Answer this question after both Proposals are reviewed:
• Excellent - 0 Good - 3 Complete
- 1 Incomplete
1 Excellent - 1 Good - 3 Qualified
- 0 Not -Qualified
0 Clear Answers direct to Authority
3 Answered - 2 Answered but not clear
From the Proposals reviewed, was there a 'shinning star' response? If so, was this the one?
Responses: RPM - 5 Hyder - 0 No Response -1
Reviewerers:
Ruth Ann Moore - Economic Development, Heather Horning - Housing Commission Vice Chair,
Ryan Stendell - Community Development Services, Stephen Aryan - Risk Management/Human Resources, Anthony Hernandez - Finance
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