HomeMy WebLinkAboutSR - R26760 - Consulting for PD HIPContract No. R26760
PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: AUTHORIZATION TO ENTER INTO A PROFESSIONAL
SERVICES AGREEMENT WITH RANCHO HOUSING
ALLIANCE, INC., TO PROVIDE CONSULTING SERVICES
FOR THE PALM DESERT HOME IMPROVEMENT
PROGRAM.
CONTRACTOR: RANCHO HOUSING ALLIANCE, INC.
53-990 ENTERPRISE WAY, SUITE 1
COACHELLA, CA 92236
SUBMITTED BY: JANET MOORE, HOUSING AUTHORITY ADMINISTRATOR
DATE: JULY 12, 2007
CONTENTS: AGREEMENT FOR PROFESSIONAL SERVICES
SCOPE OF SERVICES
CONSULTANTS PROPOSAL
Recommendation:
By minute motion that the Agency Board:
1) Authorize the Professional Services Agreement, attached hereto and
approved substantially as to form, between the Palm Desert
Redevelopment Agency and Rancho Housing Alliance for the purposes of
providing professional services in connection with the Home Improvement
Program on a fee per service basis as proposed.
2) Estimated cost for fiscal year 2007-2008 is $112,480. Funds are available
in the Home Improvement Program account number 870- 4493-464-4001.
3) Authorize the Execute Director to finalize the documentation and execute
the Agreement.
Executive Summary:
Rancho Housing Alliance ("Rancho") has been the Agency's consultant for professional services
in connection with the Palm Desert Home Improvement Program since 2006. By continuing to
consult with Rancho for these services, their knowledge of the program and its implementation
will streamline and shorten the overall processing time for HIP applications.
Discussion:
Palm Desert's Home Improvement Program ("HIP") was created in 1997. Since that time, we
have successfully assisted approximately 210 single-family homeowners to improve their
homes. The program utilizes both Community Development Block Grant (CDBG) funds as well
as the Agency's 20% set -aside funds.
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STAFF REPORT
Rancho Housing Alliance, Inc.
July 12, 2007
Page 2
Staff has been working with Rancho Housing Alliance ("Rancho") since early 2006 to perform
consulting services for the HIP program from the work write-up stage to project completion.
Prior to that, two consultants were utilized on a limited engagement basis to process a small
portion of the field work ('work' write-ups). Of the two consultants, Rancho was selected
because they had additional training with respect to CDBG funding constraints, income
restrictions, and loan document preparation that the other consultant did not.
Staff recommends that the Agency continue with Rancho as the HIP consultant in order to
maintain continuity in the program. Rancho has demonstrated that they understand that a
personal approach to our program is valued and necessary.
Concurrently, staff is proposing revisions to the HIP Program to increase the amounts that can
be provided in each component for assistance by grant and loan type. The limits have not
changed since August of 2000 and staff recognizes that the proposed increases will allow
Rancho the flexibility to implement the program to its fullest capacity and get the 'work' done
that will 'make a difference' (the term used in the initial kickoff program for HIP in 1997).
Rancho's knowledge of the program will also reduce the time required to implement the
proposed revisions to the program once approved.
Agency staff will continue to meet with potential applicants, and determine program eligibility.
Upon completion of the income eligibility process Rancho will be assigned the applications to
create the work write-up, prepare and record the lien documentation, assist the homeowner to
obtain competitive bids from contractors and oversee the work to be done as a part of the
funding.
Staff estimates the annual cost to be $112,480:
24 assignments at $3,820* (includes cost estimation of $2,220 and $ 91,680
document preparation of $1,600 each)
4 emergency assignments at $1,200 each $ 4,800
2 declines at $1,000 each $ 2,000 f
10 assignments that include lead based paint or asbestos $ 8,000 J
24 reimbursable costs at $250 each $ 6,000 J
Total estimated per fiscal year: $112,480 J
Note: ' Fees for the professional services are summarized in Rancho's proposal dated June 18, 2007. Rancho also
agrees to negotiate a reduced fee for program management in the event that the assignments exceed 24 per fiscal
year.
Staff is requesting authorization to enter into a professional services agreement with Rancho
Housing Alliance, Inc., to perform the services indicated in the Scope of Services as w as
their proposal dated June 18, 2007.
O
Su tted by: Department Head:
net M. Moore Dave Yrigoy >.
MQu ing Authority Administrator Director of Redevelopment/Housing U
Appr val:
Jus ' M Carthy, ACM/Redevelo xment Carlos Ortega, c ive Director w o
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Contract No. �6760
AGREEMENT FOR PROFESSIONAL SERVICES
This AGREEMENT is made and entered into this 12th day of July, 20076,
("Effective Date") by and between the PALM DESERT REDEVELOPMENT AGENCY
("Agency") and RANCHO HOUSING ALLIANCE, Inc., a 501(c)(3) Community Housing
Development Organization certified in Riverside County, California ("Consultant")
(sometimes referred to individually or collectively as "Party" or "Parties").
WITNESSETH
WHEREAS, Agency and the City of Palm Desert ("City") have established a
Home Improvement Program ("HIP"), a residential rehabilitation loan and grant program
designed to provide financial assistance to very low, low and moderate-income
homeowners in the City for the correction of existing code violations, health and safety
standards, and substandard conditions of the home; and
WHEREAS, Agency has approved Guidelines for the HIP ("Guidelines") that
outline the funding sources for the HIP, the nature of financial assistance available
through the HIP, the homeowner and property eligibility requirements, the terms and
conditions for participating in the HIP, and the procedures for implementing the HIP; and
WHEREAS, on or about February 23, 2006, Agency retained Consultant as an
independent contractor to perform certain technical and professional consulting services
in connection with the HIP and as called for in the Guidelines; and
WHEREAS, Consultant has proposed to continue to provide technical and
professional consulting services in connection with the HIP, as set forth in its Proposal
dated June 18, 2007, attached hereto as Exhibit A and incorporated herein; and
WHEREAS, Consultant represents that it is fully qualified to perform such
services by virtue of its experience and the training, education and expertise of its
principals and employees and that it desires to perform such services as provided
herein; and
WHEREAS, Agency desires to retain Consultant as an independent contractor to
perform certain technical and professional consulting services in connection with the
HIP and as called for in the Guidelines, subject to the terms and conditions specified
below, in the documents attached and incorporated herein, and applicable federal, state
and local law.
NOW, THEREFORE, in consideration of performance by the Parties of the
mutual promises, covenants, and conditions herein contained, the Parties hereto agree
as follows:
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1. Consultant's Services.
1.1 Scope of Services. Consultant shall provide professional and
technical services as generally proposed in Exhibit A and as more particularly
described in Exhibit B, attached hereto, and in the Guidelines, attached as Exhibit C.
All exhibits to this Agreement are incorporated herein as though fully set forth. In the
event of a discrepancy between this Agreement and its exhibits, this Agreement and the
Scope of Services set forth in Exhibit B shall be the governing documents, as may be
clarified or modified from time to time by Exhibit C.
1.2 Personnel. Consultant represents that it has, or will secure at its
own expense, all personnel required to perform the services under this Agreement.
Consultant is hereby authorized to subcontract with Crawford and Company, who
previously provided HIP consulting services directly to the Agency, in connection with
perFormance of items B.1 through 6.8, inclusive, of Exhibit B. All of the services
required under this Agreement will be performed by Consultant, or by its employees or
by Crawford and Company, under its direct supervision, and all personnel engaged in
the work shall be qualified, and shall be authorized or permitted under state and local
law to perform such services.
1.3 Standard of Performance. Consultant shall perform all services
under this Agreement in accordance with the standard of care generally exercised by
like professionals under similar circumstances and in a manner reasonably satisfactory
to Agency.
1.4 Party Representatives. For the purposes of this Agreement, the
Agency Representative shall be James Conway or such other person designated by the
Agency's Executive Director ("Agency Representative"). For the purposes of this
Agreement, the Consultant Representative shall be Jeffrey A. Hayes ("Consultant
Representative").
1.5 Time of Commencement.
A. Existinq Assiqnments: Upon execution of this Agreement by the
Parties, Consultant shall continue to perform all services with respect to all on-
going or pending HIP assignments that were previously approved by Agency
("Existing Assignment") in accordance with the terms of this Agreement and the
existing HIP Guidelines.
B. New Assiqnments: Upon execution of this Agreement by the
Parties, Consultant shall commence work immediately upon receipt of each new
assignment from Agency ("New Assignment") in accordance with the terms of
this Agreement and the "Revised HIP Guidelines" attached hereto.
1.6 Time of Performance/Time is of the Essence. Consultant shall
continue or commence, as applicable, the services contemplated under this Agreement
and shall prosecute to completion each task listed in Exhibit B in a timely and diligent
manner, for each Existing Assignment and New Assignment, within ninety (90)
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calendar days of receiving such Assignment, or in accordance with a schedule to be
mutually agreed upon by Agency and Consultant.
1.7 Compliance with Laws. Consultant shall at all times comply with
applicable federal, state and local laws, ordinances, codes and regulations in the
performance of this Agreement, the Guidelines including any amendments thereto that
may occur after the execution of this agreement, and with all applicable Community
Development Block Grant ("CDBG") procurement guidelines and with applicable City or
Redevelopment Agency purchasing policies and guidelines.
2. Services by Agency: Pre-Qualification. Pre-qualification of eligible
homeowners and properties is required before Consultant is authorized to commence
work under this Agreement. Agency, and not Consultant, shall be responsible for the
Pre-Qualification phase, as generally outlined herein, and more specifically in the
Guidelines.
2.1 Processina HIP Aqplications. Agency shall review and process
applications for financial assistance submitted by homeowners ("HO") in connection with
the HIP.
2.2 Pre-Qualification. Agency shall determine HO and property
eligibility for financial assistance under the HIP in accordance with the Guidelines, and
applicable federal, state and local laws, including but not limited to policies and
guidelines of the CDBG, Department of Housing and Urban Development ("HUD"), and
applicable City and Agency policies and guidelines.
2.3 Approval/Denial of HIP Applications. Upon completion of the pre-
qualification phase, Agency shall either (1) approve the HO's application and forward
the New Assignment to Consultant, or (2) deny the application. If Agency denies a HIP
application, no compensation shall be paid to Consultant for such denied application.
3. Term of Agreement.
3.1 Current Term. The term of this Agreement shall commence on
July 12, 2007, and end on June 30, 2009, unless terminated as provided in Section 14,
below. If Consultant is working on an Assignment for which Consultant's services
necessarily extend beyond the expiration of the current term ("Overlapping
AssignmenY'), Consultant shall timely complete such Assignment through its conclusion,
and shall be compensated therefor, notwithstanding the expiration of the current term.
Such Overlapping Assignment shall not create, nor be deemed to create, any
entitlement to or expectation by Consultant for an extension of the current term, absent
a written agreement for such extension as provided in sub-section 3.2, below.
3.2 Extension/No Everqreen Clause. This Agreement may be
extended for one or more one-year terms, or for periods of more or less than one year,
as may be mutually agreed to by Agency and Consultant, and upon execution of a
written agreement or addendum, signed by the Parties prior to the expiration of the term
specified in sub-section 3.1, above. Any such extension may, or may not, include
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changes in the terms and conditions of Consultant's services, or changes in the HIP
program, or other modifications as may be necessary due to outside factors, and
mutually agreed to by the Parties. Unless such written agreement or addendum is
executed by the Parties prior to the expiration of the current term specified in sub-
section 3.1, this Agreement shall automatically be deemed terminated at the end of the
current term specified in sub-section 3.1, above.
4. Compensation. Agency shall pay Consultant for the Services provided
under this Agreement on the following basis.
4.1 Per Assiqnment Fee. Consultant shall be compensated for its
services on a per-Assignment basis, also referred to as a per-unit basis in Exhibit A.
Compensation for each Assignment will be based on two phases:
(1) Cost estimation and contractor coordination services, including Exhibit
B, items B1 through 68, inclusive, at $2,220 per Assignment; and
(2) Property Management, Coordination, and Program Delivery services,
including Exhibit B, items B9 through B13, inclusive, at $1,600 per Assignment,
subject to sub-section 4.6, below.
4.2 Emeraencv Repairs. Cost Estimation, Construction and
Administrative services, subsumed within the generally applicable provisions of Exhibit
B, items B1 through B13, inclusive, at $1,200 per Assignment (inclusive).
4.2 No Withholdinq. Agency shall not withhold federal or state payroll
taxes, or any other deductions, from any payment made to Consultant. Consultant, as
an independent contractor, is solely responsible for all federal, state and local taxes that
may be due upon any compensation received under this Agreement.
4.3 Eliqible Cost/Extraordinary Expenses. Agency shall pay to
Consultant actual costs, subject to a per-Assignment cap not to exceed two hundred
and fifty dollars ($250.00): (1) Extraordinary copy costs over 250 pages per assignment
at $0.15 per page; (2) Mileage in excess of 100 miles per Assignment, as measured
from Palm Desert City Hall to the work site, at the City approved rate per mile; (3)
Sundry expenses as may be approved or required by Agency and incurred by
Consultant.
4.4 Additional Costs. No claims for additional services, expenses or
costs incurred by Consultant will be allowed unless authorized by Agency in writing prior
to the performance or incurrence of such services, expenses or costs. Any additional
services, expenses or costs authorized by Agency shall be compensated at rates
mutually agreed upon by the Parties in writing.
4.5 No Minimum/Maximum Number of Assiqnments. This Agreement
is for an agreed upon twenty-four month term, without guarantee of any minimum or
maximum number of Assignments. Nothing in this Agreement should be construed
as a guarantee of any minimum number of Assignments or any minimum contract
amount. In recent years, an average of 20-24 Assignments (or units) have been
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approved per year and the Parties reasonably anticipate a similar volume during the
initial term of this Agreement. However, the volume of HIP applications that Agency
may receive, the eligibility of HO's and their properties for HIP assistance, and other
factors outside the control of the Parties to this Agreement, will largely determine the
number of Assignments in a given year. Agency and Consultant agree to work in good
faith, respectively, to assign and to perform on Assignments as they arise, and to
address and resolve workf{ow issues as needed. Consultant agrees to negotiate a
reduced per-Assignment fee, to the mutual satisfaction of the Parties, should the
number of Assignments exceed 24 in any one-year period.
5. Method of Payment.
5.1 Invoices. Consultant shall submit invoices each month to Agency
for all services, if any, completed, and all expenses or costs incurred pursuant to this
Agreement during the preceding month. The invoices shall describe in detail the
services rendered during the period and shall show the days worked, number of hours
worked, the hourly rates charged, milestone achievements, and the services performed
for each day in the period. Copies of receipts for expenses or costs shall be submitted
with each invoice. Agency shall review such invoices and notify Consultant in writing
within fifteen (15) calendar days of any disputed amounts.
5.2 Pavment. Agency shall pay all undisputed portions of the invoice
within thirty (30) calendar days after receipt of the invoice up to the maximum amounts
set forth in Section 4.
5.2 Audit of Records. At any time during regular working hours, all
records, invoices, time cards, cost control sheets and other records maintained by
Consultant shall be available for review and audit by the Agency.
6. Ownership of Work Product.
6.1 Property of Aqencv. All file documents including but not limited to
plans, bids, proposals, correspondence, permits, certificates, contracts, change orders,
invoices, receipts, or other written material developed or obtained by Consultant in the
performance of this Agreement ("Work Product"), shall be and remain the property of
Agency without restriction or limitation upon its use or dissemination by Agency.
Promptly upon the completion of each Assignment, or at any other time upon
reasonable notice to Consultant by Agency, Consultant shall deliver all Work Product to
Agency.
6.2 Re-Use of Work Product. Agency and Consultant agree that all
documents, other than invoices, prepared by Consultant pursuant to this Agreement
shall be used exclusively for the HIP, and shall not be used for any other work without
the mutual agreement of the Parties. Such material shall not be the subject of a
copyright application by Consultant. In the event Consultant permits the re-use or other
use of such Work Product, Agency shall require the party using them to indemnify and
hold harmless Agency and Consultant regarding such re-use or other use, and Agency
shall require the party using them to eliminate any and all references to Consultant from
such Work Product. In the event Agency re-uses such Work Product on any project
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other than the project for which they were prepared, such re-use shall be at the sole risk
of Agency unless Agency compensates Consultant for such reuse.
7. Conflict of Interest/Prohibited Conduct and Interests
7.1 Conflict of Interest. Consultant and its officers, employees,
associates and sub consultants, if any, will comply with all conflict of interest statutes of
the State of California applicable to ConsultanYs services under this Agreement,
including, but not limited to, the Political Reform Act (Government Code Sections
81000, et seq.) and Government Code Section 1090. During the term of this
Agreement, Consultant shall retain the right to perform similar services for other clients,
but Consultant and its officers, employees, associates and sub consultants shall not,
without the prior written approval of the Agency Executive Director, perform work for
another person or entity for whom Consultant is not currently performing work that
would require Consultant or one of its officers, employees, associates or sub
consultants to abstain from a decision under this Agreement pursuant to a conflict of
interest statute.
7.2 No Solicitation. Consultant, on behalf of itself and its officers,
employees, agents and representatives, warrants that it has not employed or retained
any company or person, other than a bona fide employee working solely for Consultant,
to solicit or secure this Agreement, and that it has not paid or agreed to pay any
company or person, other than a bona fide employee working solely for Consultant, any
fee, commission, percentage, brokerage fee, gifts, or any other consideration,
contingent upon or resulting from the award or making of this Agreement. For breach or
violation of this warranty, Agency shall have the right to annul this Agreement without
liability, or in its discretion to deduct from the contract price or consideration, or
otherwise recover, the full amount of such fee, commission, percentage, brokerage fee,
gift or contingent fee.
7.3 No Financial Interest - Aqency. No officer, member or employee of
Agency during his or her tenure or one year thereafter shall have any interest, direct or
indirect, in this Agreement or the proceeds thereof. The Parties hereto covenant and
agree that to their knowledge no member of the Agency Board, or officer or employee of
Agency, has any interest, whether contractual, non-contractual, financiai or otherwise, in
this Agreement, or the subject matter thereof, nor any business or financial relationship
with Consultant, and that if any such interest comes to the knowledge of either Party at
any time a full and complete disclosure of all such information will be made in writing to
the other Party or Parties, even if such interest would not be considered a conflict of
interest under applicable laws.
7.4 No Financial Interest — Consultant. Consultant hereby covenants,
on behalf of itself, and its officers, employees, agents and representatives, that at the
time of executing this Agreement it has no interest, and that it shall not acquire any
interest in the future, direct or indirect, which would conflict in any manner or degree
with the performance of services required to be performed pursuant to this Agreement.
Consultant further covenants that in the performance of this Agreement, no person
having any such interest shall be employed by Consultant.
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8. Indemnification. To the fullest extent permitted by law, Consultant
agrees, at its sole cost and expense, to indemnify, defend and hold harmless Agency,
and City, and their respective elected and appointed officials, officers, attorneys, agents,
employees, designated volunteers, successors and assigns, from any and all liability or
financial loss, including legal expenses and costs of expert witnesses and consultants,
resulting from any suits, claims, losses or actions brought by any person or persons, by
reason of injury to persons or property arising or claimed to arise, directly or indirectly,
from the negligent acts, errors or omissions of Consultant, including its officers, agents,
employees, subcontractors or any person employed by Consultant, in the performance
of this Agreement. Consultant agrees that Consultant's covenant under this
Section 8 shall survive the termination of this Agreement.
9. Cooperation. In the event any claim or action is brought against Agency
or City, or their respective officials or employees, relating to Consultant's performance
or services rendered under this Agreement, including but not limited to any claim
relating to a HO-Contractor Contract prepared or approved by Consultant pursuant to
this Agreement, Consultant shall render any reasonable assistance and cooperation
which Agency or City might require.
10. Insurance.
10.1. Consultant shall at all times during the term of this Agreement
carry, maintain, and keep in full force and effect, with an insurance company authorized
to do business in California, rated "A" or better in the most recent Best's Key Insurance
Rating Guide, and approved by Agency, (1) a policy or policies of broad-form
commercial general liability insurance with minimum limits of $1,000,000 combined
single limit coverage against any injury, death, loss or damage as a result of wrongful or
negligent acts by Consultant, its officers, employees, agents, and independent
contractors in performance of services under this Agreement; (2) automobile liability
insurance, with minimum combined single limits coverage of $1,000,000; (3)
professional liability (errors and omissions) insurance, with minimum combined single
limits coverage of $1,000,000, on a form approved by the Agency; and (4) workers'
compensation insurance with a minimum limit of $1,000,000 or the amount required by
law, whichever is greater. Agency, City, and each of their officers, employees,
attorneys, and designated volunteers shall be added as additional insureds on the
policy(ies) as to commercial general liability bodily injury and property damage
coverages and automobile coverages with respect to liabilities arising out of
ConsultanYs work under this Agreement.
10.2 Each insurance policy required by this Section 10 shall be
endorsed as follows: (1) the insurer waives the right of subrogation against Agency and
City and their respective officers, employees, agents and representatives; (2) the
policies are primary and non-contributing with any insurance that may be carried by
Agency or City; and (3) the policies may not be canceled or materially changed except
after thirty (30) days prior written notice by insurer to Agency. The endorsement
requirements set forth in this subsection shall not apply to the professional liability policy
required by this Section 10.
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10.3 All insurance coverages shall be confirmed by execution of
endorsements on the forms attached hereto and incorporated herein as Exhibit D.
Consultant is required to file the completed policy endorsements with Agency on or
before the Effective Date of this Agreement, and to thereafter maintain current
endorsements on file with Agency. The completed endorsements are subject to the
approval of Agency. If for any reason it shall not be possible to obtain endorsements on
Agency's forms, the underlying insurance policies are nonetheless required to include
the terms and conditions set forth on Agency's forms unless otherwise agreed by
Agency.
11. Status as Independent Contractor. Consultant is, and shall at all times
remain as to Agency, a wholly independent contractor. Consultant shall have no power
to incur any debt, obligation, or liability on behalf of Agency. Neither Agency nor any of
its officials, employees or agents shall have control over the conduct of Consultant or
any of Consultant's employees, except as set forth in this Agreement.
12. Non-Assignability; Subcontracting. Consultant shall not assign or
subcontract all or any portion of this Agreement, except as specifically permitted in
Section 1.2, above. Any attempted or purported assignment or sub-contracting by
Consultant shall be null, void and of no effect.
13. Non-Discrimination and Equal Employment Opportunity. In the
performance of this Agreement, Consultant shall not discriminate against any employee,
subcontractor, or applicant for employment because of race, color, creed, religion, sex,
marital status, national origin, ancestry, age, physical or mental handicap, medical
condition, or sexual orientation. Consultant will take affirmative action to ensure that
subcontractors and applicants are employed, and that employees are treated during
employment, without regard to their race, color, creed, religion, sex, marital status,
national origin, ancestry, age, physical or mental handicap, medical condition, or sexual
orientation. This clause shall be included in any contract prepared or approved by
Consultant in connection with performance of its services under this Agreement.
14. Termination. Either Party may terminate this Agreement for any reason
without penalty or obligation with thirty (30) calendar days written notice to the other
Party except in the case of non-compliance with any condition hereof the Agency at its
sole discretion may provide notice to terminate without penalty or obligation with seven
(7) calendar days with written notice. Consultant shall be paid for services satisfactorily
rendered to the last working day the Agreement is in effect, and Consultant shall deliver
all Work Product compiled through the last working day the Agreement is in effect.
Neither Party shall have any other claim against the other party by reason of such
termination.
15. Notices. Any notices, bills, invoices, or reports required by this
Agreement shall be given by first class U.S. mail or by personal service. Notices shall
be deemed received on (a) the day of delivery if delivered by hand or overnight courier
service during Consultant's and Agency's regular business hours or by facsimile before
or during Consultant's regular business hours; or (b) on the third business day foffowing
deposit in the United States mail, postage prepaid, to the addresses heretofore set forth
in the Agreement, or to such other addresses as the Parties may, from time to time,
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designate in writing pursuant to the provisions of this section. All notices shall be
delivered to the Parties at the following addresses:
Agency: Richard S. Kelly, Chairman
Palm Desert Redevelopment Agency
73-510 Fred Waring Drive
Palm Desert, California 92260-2578
Tel: (760) 346-0611
Fax: (760) 341-6372
With a copy to: James Conway
Project Coordinator
Palm Desert Redevelopment Agency
73-510 Fred Waring Drive
Palm Desert, California 92260-2578
Tel: (760) 346-0611
Fax: (760) 341-6372
Consultant: Jeffrey A. Hays
Executive Director
Rancho Housing Alliance, Inc.
53-990 Enterprise Way, Suite 1
Coachella, California 92236
Tel: (760) 391-5050
Fax: (760) 391-5100
16. Non-Waiver of Terms, Rights and Remedies. Waiver by either Party of
any one or more of the conditions of performance under this Agreement, or a breach or
default of any term or provision thereof, shall not be a waiver of any other condition of
performance under this Agreement. In no event shall the making by Agency of any
payment to Consultant constitute or be construed as a waiver by Agency of any breach
of covenant, or any default which may then exist on the part of Consultant, and the
making of any such payment by Agency shall in no way impair or prejudice any right or
remedy available to Agency with regard to such breach or default.
17. Attorney's Fees. In the event that either Party to this Agreement shall
commence any legal action or proceeding to enforce or interpret the provisions of this
Agreement, the prevailing party in such action or proceeding shall be entitled to recover
its costs of suit, including reasonable attorney's fees.
18. Exhibits; Precedence. All documents referenced as exhibits in this
Agreement are hereby incorporated in this Agreement. In the event of any material
discrepancy between the express provisions of this Agreement and the provisions of
any document incorporated herein by reference, the provisions of this Agreement and
Exhibit B shall prevail.
19. Entire Agreement. This Agreement, and any other documents
incorporated herein by specific reference, represents the entire and integrated
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agreement between Consultant and Agency. This Agreement supersedes all prior oral
or written negotiations, representations or agreements. This Agreement may not be
amended, nor any provision or breach hereof waived, except in a writing signed by the
Parties which expressly refers to this Agreement.
20. Partial Invalidity. In case any provision of this Agreement should be
deemed by a court of competent jurisdiction to be invalid, illegal or unenforceable in any
respect, the validity, legality or enforceability of the remaining provisions shall not be
affected or impaired thereby.
21. Successors. This Agreement shall bind and inure to the benefit of the
respective heirs, personal representatives, successors and assigns of the parties to this
Agreement.
22. Construction. Section headings in this Agreement are solely for the
convenience of the Parties and are not a part of and shall not be used to interpret this
Agreement. This Agreement shall not be construed as if it had been prepared by one of
the Parties, but rather as if both Parties have prepared it. Unless otherwise indicated,
all references to Sections are to this Agreement.
23. Authorization. The Parties represent and warrant that each of the
individuals signing this Agreement on behalf of any Party has authority to sign on behalf
of the entity for which they have signed as signatory. Two signatures are required for a
California corporation.
24. Facsimile and Counterparts This Agreement may be executed in one or
more original or facsimile counterpart originals, each of which shall be deemed to be the
original, but which together will constitute one and the same instrument.
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G\rda\Beth LongmanlHlP\Rancho HIP Consult Agr 071207.DOC
Contract No. �6760
IN WITNESS WHEREOF, said parties have executed this Agreement effective
as of the Effective Date above.
RANCHO HOUSING ALLIANCE INC.
By:
its:
[signatures continued over]
RANCHO HOUSING ALLIANCE INC.
By:
�cs:
PALM DESERT REDEVELOPMENT AGENCY
Richard S. Kelly, Chairman
ATTEST:
Rachelle D. Klassen, Secretary
APPROVED AS TO FORM
Dave Erwin, City Attorney
William L. Strausz, Agency Attorney
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Contract No. �6760
EXHIBIT A
CONSULTANT'S PROPOSAL
[Letter dated June 18, 2007]
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Hou�ing Allianee Inc.
June 18, 2007
53-990 Enterprise Way, Suite 1,
Coachella, CA 92236
(760) 391-5050
Toll Free (866) 266-3223
FaY� r�sn� �q� s�nn
Janet Moore, Housing Authority Administrator
Palm Desert Redeveiopment Agency
73-510 Fred Waring Drive
Palm Desert, CA 92260
Subject: Proposed Modifications for Manapement of H!P
Dear Ms Moore:
Rancho Housing Alliance, Inc. is excited about the opportunity to renew our contractual
agreement with the City for the management of your Housing Improvement Program
(HIP). The proposal herein has been modified to reflect changes in fee structure,
payment schedules and the addition of a lead abatement compliance cost at the Cities
request.
RANCHO, remains a 501 (c)(3) Community Housing Development Organization
certified in Riverside County, has successfully grown its Housing Preservation and
Rehabilitation program over the past year.
The management and provision of the Housing Rehabilitation Program will be staffed by
RANCHO Project Manager-Construction and a Program Coordinator. Upon receipt of
an income qualified applicant from the City, Rancho proposes to manage and
coordinate all aspects of program as follows:
• Perform inspections of existing home to assess rehabilitation/upgrade needs;
prepare written description of desired work to be completed to include discussion
and submission of copy to owner.
• Identify and contract for services for Lead fnspection Program in conjunction with
Riverside County Environmenta! Health Department and Licensed and Certified
Lead Abatement contractors
--• Discuss necessary and eligible repair work with home owner and match the
scope of work with the appropriate funding alternative; i.e. grant versus loan.
Explain all covenant restrictions.
Conduct a competitive bid process for contractors that would incorporate as
many of the desired jobs by type and complexity to achieve the greatest
economies of scale. This bid process will also incorporate the City of Palm
Desert's bidding policies.
RANCHO Housing Alliance is a Equal Opportunity Provider
Serving Eastern Riverside County
HIP MGT PROPOSAL
PAGE 2
• Prepare all granUloan and lien documents and secure owner's execution, record
with Riverside County for return and retention by the City's Redevelopment
Agency.
• Prepare written agreements between contractor and homeowner for performance
of the work designated.
� Conduct inspections to verify all work has been completed satisfactorily
• Provide oversight of Contractors to insure compliance, pertormance, complexity
of work, and rates are consistent with industry standards.
• Coordinate vendor/contractor draws for payment by City's Finance Department,
after verification of work progress and owner's concurrence.
• Provide regular reports per requirements/requests the of Redevelopment Agency
on program progress, proposed changes, or issues identified in the provision of
the program
• Maintenance of client files, written/telephone communications with
owners/contractors, bid documentation and before/after digital photos.
• Researching opportunities for home refrigeration/heating units, materials, and
utility programs that may become available to program participants.
Assumptions:
As DACE & RANCHO are annually audited for compliance to Federal Programs
under OMB circular A-122 and A-133, we can meet all necessary audit
documentation and compliance for funding sources to the HIP.
Program activity is estimated at 20-24 homes a year initially, with the intent to
grow and expand the volume and services associated with the HIP.
Any sundry expenses outside of the program scope and mandated by the City,
will be reimbursed separately from the fee structure provided.
HIP MGT PROPOSAL
PAGE 3
Fee Structure:
RANCHO proposes a fee structure based in part on current programs activity with the
City and expanded management services:
1. Cost estimation and contractor coordination by either
$2,220/unit** RANCHO or contracted provider
2. Program Management- Coordination of owner and program delivery,
$1,600 /unit.
Document preparation, execution and recordation, fiscal coordination of
Contractor/vendor draws to City, program compliance and reporting
3. For Emergency Repairs-which require substantially less
$1,200/unit Cost Estimation, Construction and Administrative work. (Inclusive)
4. Lead Inspection and Abatement (not to exceed) $800/unit (as needed)
5. In situations of estimation/administrative services are provided to the owners
and either they decline to proceed or the work is not program eligible, a flat
fee of $1,000 will be paid to offset expenses incurred.
Upon recordation of program's lien or covenant, one half of fees for Program
Management, Contractor coordination, and all Lead Inspection and abatement Services
provided to the owners are due and payable. Balance of fees due upon recordation of
final/updated lien/covenant. Fees have been based on an average of 20-24 units per
year.
**Additional cost per unit of $220 for Professional Liability Coverage through HICOX
Lloyds of London.
I hope that you find this proposal satisfactory. If you have any questions regarding the
scope of services or fees, please contact me at (760) 391-5043.
Sincerel ,
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REY A. HAYS
ecutive Director
Contract No.
EXHIBIT B
CONSULTANT'S SCOPE OF SERVICES
Consultant's Scope of Work. Consultant shall immediately commence
work pursuant to this Agreement for all Existing Assignments and for each New
Assignment referred by the Agency. Consultant's scope of work shall consist of the
services described herein and as may be more fully described in the Guidelines or any
amendment to the Guidelines that may be implemented in the future
B.1 Initial Meetinq with Homeowner. Consultant shall meet with
Homeowner ("HO") to determine the nature and extent of the scope of improvements,
construction or repairs (collectively "HIP work") desired by HO and consistent with the
Agency's Pre-Qualification, make appropriate recommendations to HO regarding
eligible HIP work, and setting priorities.
B.2 Work Write-Up. Consultant shall prepare a written Work Write-Up
detailing the scope of HIP work to enable contractors to provide bids/proposals, and
revise and finalize the Work Write-Up in consultation with the HO, as appropriate.
Copies of all work Write-Ups shall be provided to the Agency.
B.3 Photoqraphs. Consultant shall take "before" and "after" digital
photographs for each New Assignment and, to the extent possible, for each Existing
Assignment. All photographs shall be maintained as part of the permanent file for each
Assignment.
B.4 Multiple Contractor Bids. Consultant shall prepare necessary
documents to solicit and obtain a minimum of three (3) bids or proposals by California
licensed general or special contractors, as appropriate, maintain accurate records of all
efforts to solicit and obtain bids, organize and evaluate all bids, and prepare a"Proposal
Comparison" form by contractor or HIP work category. In the event Consultant is
unable to obtain three (3) bids, despite good faith efforts to solicit same, Consultant
shall accurately record all efforts to obtain bids and the specific outcome of those
efforts, if unsuccessful. In the event of emergency HIP work, Consultant may proceed
with only one (1) estimate with the Agency's approval, which approval shall be in
writing, signed by the Agency before or as soon as practicable after commencement of
the work.
B.5 Selection of Contractor. Consultant shall work with HO to discuss
the bids and Proposal Comparison form, make recommendations as appropriate for
modification or deletion of HIP work, and assist HO in selecting, negotiating with and
retaining one or more contractors to perform such work. Consultant shall conduct due
diligence background checks for each contractor, including but not limited to verification
of contractor's license status and insurance policies/certificates, and checking available
online resources (e.g. California Contractor's Licensing Board, Better Business Bureau).
Where necessary, Consultant shall participate directly in negotiations between HO and
contractor to facilitate the process. In the event HO requests approval to be deemed
qualified to perform the work him/herself, and Consultant approves the request, HO
shall be eligible to receive HIP financial assistance for materials, but not labor,
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associated with such HIP work, and may be paid directly for the actual cost of such
materials, notwithstanding Exhibit B, Item B.11, below.
B.6 HO-Contractor Contract. Consultant shall review and approve all
written contracts submitted by contractors for the HIP work, or portions thereof, to be
performed by each contractor. In the event the HIP work involves multiple contractors,
separate contracts shall be prepared for each. The contracts shall be between, and
executed by, the HO and the contractor exclusively ("HO-Contractor Contract").
Agency and City shall not be a party to the HO-Contractor contracts and
Consultant shall ensure that each HO-Contractor Contract shall contain an
indemnification provision, whereby HO and contractor expressly agree to hold
harmless, defend and indemnify Agency and City for all liability arising out of the
performance or failure to perform under the HO-Contractor Contract.
B.7 Contractor pocumentation. For each contractor who enters into a
HO-Contractor Contract for HIP work that exceeds five hundred dollars ($500) gross,
Consultant shall obtain the following: Certification of Liability Insurance for a minimum of
$1,000,000; Certificate of Workers' Compensation Insurance; Copy of Palm Desert
business license; Copy of Contractor's license and print-out of state computer database;
completed Taxpayer ldentification Number request form. Consultant shall ensure that
all such documentation is current. Contractors will obtain all necessary approvals
including but not limited, permits, city approvals, public utilities approvals, and Home
Improvement Association approvals.
B.8 Use of Subcontractors. In the event a contractor selected to
perform HIP work, or a portion thereof, seeks to retain one or more subcontractors to
perform such work, such retention shall be permitted only upon the express consent of
Consultant in the exercise of ConsultanYs best judgment and after performing a due
diligence background check. In such event, Consultant shall ensure that the HO-
Contractor Contract and any other applicable contract documentation provide that the
Contractor shall be solely responsible for the acts or omissions of its subcontractor.
B.9 Preparation of Loan Documents. Consultant shall prepare all
necessary loan, grant and other financial documentation for each New Assignment,
and shall process all such documents, obtain all necessary signatures and, where
applicable, record such documents with the Riverside County Recorder's Office.
B.10 HIP Work Oversiqht. Upon completing the contract documentation
requirements, Consultant shall notify contractors to proceed with work and monitor the
progress of the HIP work. Consultant shall make necessary arrangements with City or
other government agencies to schedule inspections as required by law. Consultant
shall prepare or review and approve Change Orders, or other modifications to the HO-
Contractor Contract, as needed, to be signed by HO and Contractor. Consultant shall
act as liaison between HO and contractor, as needed, throughout the course of
construction or repair through completion of each Assignment.
B.11 Contractor Pavments. Consultant shall obtain properly prepared
invoices from contractors for HIP work, including invoices for progress payments as
appropriate, determine whether each invoice is appropriate for approval and if so,
forward such invoice directly to Agency Representative. All payments for HIP work shall
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Contract No.
be made directly by Agency to the contractor, in accordance with applicable federal,
state and local guidelines.
B.12 Certification. Consultant shall prepare and provide to contractor
when appropriate, a Certification of Satisfactory Completion of Work and Conditional
Lien Release, which shall be signed by HO and contractor, as applicable.
B.13 ReportinQ & Record Keepinq. To assist Agency in the performance
of its financial administration obligations under the HIP and applicable federal, state and
local law, Consultant shall, throughout the term of this Agreement, keep Agency
reasonably informed of progress on each Assignment, and of any problems or delays,
anticipated or otherwise, associated with each Assignment. Consultant shall promptly
respond to any request by Agency for information, progress reports, or documentation.
Consultant shall maintain accurate records of all work performed for each Assignment
under this Agreement, including but not limited to originals or copies, as applicable, of
all documents described in Section 3 herein. Upon the completion of an Assignment,
Consultant shall deliver to Agency the originals of all HIP work documentation for that
Assignment, and may retain copies of such documentation, at ConsultanYs election.
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Contract No.
EXHIBIT C
H.I P. GUIDELINES
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Contract No.
EXHIBIT D
INSURANCE ENDORSEMENTS
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