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HomeMy WebLinkAboutInterfaith Housing Assistance Corporation; 2002-10-11;AGREEMENT FOR EXCLUSIVE MANAGEMENT AGENT SERVICES Interfaith Housing Assistance Corporation THIS AGREEMENT is made and entered into as of the //d day of AGENCY, a Community Redevelopment Agency, ("Agency"), and INTERFAITH HOUSING ASSISTANCE CORPORATION, a California Nonprofit Benefit Corporation ("Agent"). (3Crn&~ , 20E, by and between the CARLSBAD REDEVELOPMENT RECITALS A. City requires exclusive management agent services for the management and day-to-day operation of the Tyler Court Senior Apartments located at 3363 Tyler Street, Carlsbad, CA 92008. B. Agent has the necessary experience in providing exclusive management agent services. C. Selection of Agent is expected to achieve the desired results in an expedited fashion. D. Agent has submitted a proposal to City and has affirmed its willingness and ability to perform such work. E. The Agency's previous agreement with Agent, executed on September 28, 1999, expires on or about September 28, 2002 and the Parties wish to ratify any work performed by Agent, consistent with the terms of the previous agreement between the Parties, that Agent performs between September 28, 2002 and the date of execution of - this Agreement. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Agent agree as follows: 1. SCOPE OF WORK City retains Agent to perform, and Agent agrees to render, those services (the "Services") that are defined in attached Exhibit "A", which is incorporated by this reference in accordance with this Agreement's terms and conditions. 2. STANDARD OF PERFORMANCE While performing the Services, Agent will exercise the reasonable professional care and skill customarily exercised by reputable members of Agent's profession practicing in the Metropolitan Southern California Area, and will use reasonable diligence and best judgment while exercising its professional skill and expertise. 3. TERM The term of this Aareement will be effective for a period of two years. effective from the date first above wGtten. Any work performed by ;he Agent for the Agency between the period from September 28, 2002 until the date this Agreement is executed, which work has been performed without benefit of an agreement, is hereby ratified. 1 City Attorney Approved Version #04.01.02 4. TIME IS OF THE ESSENCE Time is of the essence for each and every provision of this Agreement, 5. COMPENSATION The sole compensation which the Agent shall be entitled to receive for all services performed under this Agreement shall be a fee computed and payable monthly on the first day of each month as follows: (a) During the first twelve (12) months of the term of this Agreement, the Agent's monthly fee shall be the sum of Thirty-Five Dollars ($35.00) per unit (including any free unit for managerial staff). (b) During the second year of the Agreement, the Agent's monthly fee shall be increased by three (3) percent and added to the previous year's dollar per unit per month fee (including any free unit for managerial staff). 6. STATUS OF AGENT Agent will perform the Services in Agent's own way as an independent contractor and in pursuit of Agent's independent calling, and not as an employee of City. Agent will be under control of City only as to the result to be accomplished, but will consult with City as necessary. The persons used by Agent to provide services under this Agreement will not be considered employees of City for any purposes. The payment made to Agent pursuant to the Agreement will be the full and complete compensation to which Agent is entitled. City will not make any federal or state tax withholdings on behalf of Agent or its agents, employees or subcontractors. City will not be required to pay any workers' compensation insurance or unemployment contributions on behalf of Agent or its employees or subcontractors. Agent agrees to indemnify City within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which City may be required to make on behalf of Agent or any agent, employee, or subcontractor of Agent for work done under this Agreement. At the City's election, City may deduct the indemnification amount from any balance owing to Agent. 7. SUBCONTRACTING Agent will not subcontract any portion of the Services without prior written approval of City. If Agent subcontracts any of the Services, Agent will be fully responsible to City for the acts and omissions of Agent's subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Agent is for the acts and omissions of persons directly employed by Agent. Nothing contained in this Agreement will create any contractual relationship between any subcontractor of Agent and Agency. Agent will be responsible for payment of subcontractors. Agent will bind every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to Agent's work unless specifically noted to the contrary in the subcontract and approved in writing by Agency. 2 City Attorney Approved Version #04.01.02 8. OTHER AGENTS The Agency reserves the right to employ other Agents in connection with the Services. 9. INDEMNIFICATION (a) Agent agrees to indemnify and hold harmless the Agency and the City of Carlsbad and both entities' officers, officials, employees and volunteers from and against all claims, damages, losses and expenses including attorneys fees arising out of the performance of the work described herein caused in whole or in part by any willful misconduct or negligent act or omission of the Agent, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. The parties expressly agree that any payment, attorney's fee, costs or expense Agency or the City of Carlsbad incurs or makes to or on behalf of an injured employee under the Agency's or the City of Carlsbads self-administered workers' compensation is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement. (b) The Carlsbad Redevelopment Agency agrees to maintain liability insurance coverage on the property. Agent shall not be responsible for the type, amount or sufficiency of insurance coverage on the Apartments. 10. INSURANCE Agent will obtain and maintain for the duration of the Agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the services by Agent or Agent's agents, representatives, employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best's Key Rating of not less than "A-V'. 10.1 Coveraaes and Limits. Agent will maintain the types of coverages and minimum limits indicated below, unless City Attorney or City Manager approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Agent's indemnification obligations under this Agreement. Agency, its officers, agents and employees make no representation that the limits of the insurance specified to be carried by Agent pursuant to this Agreement are adequate to protect Agent. If Agent believes that any required insurance coverage is inadequate, Agent will obtain such additional insurance coverage, as Agent deems adequate, at Agent's sole expense. 10.1.1 Commercial General Liabilitv Insurance. $1,000,000 combined single-limit per occurrence for bodily injury, personal injury and property damage. If the submitted policies contain aggregate limits, general aggregate limits will apply 3 City Attorney Approved Version #04.01.02 separately to the work under this Agreement or the general aggregate will be twice the required per occurrence limit. 10.1.2 Automobile Liability (if the use of an automobile is involved for Agent's work for Agency). $1,000,000 combined single-limit per accident for bodily injury and property damage. 10.1.3 Workers' Compensation and EmDlover's Liability. Workers' Compensation limits as required by the California Labor Code and Employer's Liability limits of $1,000,000 per accident for bodily injury. Workers' Compensation and Employer's Liability insurance will not be required if Agent has no employees and provides, to Agency's satisfaction, a declaration stating this. 10.2. Additional Provisions. Agent will ensure that the policies of insurance required under this Agreement contain, or are endorsed to contain, the following provisions: 10.2.1 The Agency will be named as an additional insured on General 10.2.2 Agent will obtain occurrence coverage, excluding Professional Liability. Liability, which will be written as claims-made coverage. 10.2.3 This insurance will be in force during the life of the Agreement and any extensions of it and will not be canceled without thirty (30) days prior written notice to Agency sent by certified mail pursuant to the Notice provisions of this Agreement. 10.3 Providina Certificates of Insurance and Endorsements. Prior to Agency's execution of this Agreement, Agent will furnish certificates of insurance and endorsements to Agency. 10.4 Failure to Maintain Coveraqe. If Agent fails to maintain any of these insurance coverages, then Agency will have the option to declare Agent in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverages. Agent is responsible for any payments made by Agency to obtain or maintain insurance and Agency may collect these payments from Agent or deduct the amount paid from any sums due Agent under this Agreement. 10.5 Submission of Insurance Policies. Agency reserves the right to require, at anytime, complete and certified copies of any or all required insurance policies and endorsements. 10.6 Crime Bond. The Agent shall provide a Crime Bond in the amount of $50,000 naming the Agency as co-obligee. 11. BUSINESS LICENSE 4 City Attorney Approved Version #04.01.02 Agent will obtain and maintain a City of Carlsbad Business License for the term of the Agreement. 12. ACCOUNTING RECORDS Agent will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Agent will allow a representative of Agency during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. Agent will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 13. OWNERSHIP OF DOCUMENTS All work product produced by Agent or its agents, employees, and subcontractors pursuant to this Agreement is the property of Agency. In the event this Agreement is terminated, all work product produced by Agent or its agents, employees and subcontractors pursuant to this Agreement will be delivered at once to Agency. Agent will have the right to make one (1) copy of the work product for Agent's records. 14. COPYRIGHTS Agent agrees that all copyrights that arise from the services will be vested in Agency and Agent relinquishes all claims to the copyrights in favor of Agency. 15. NOTICES The name of the persons who are authorized to give written notices or to receive written notice on behalf of Agency and on behalf of Agent under this Agreement For Aqencv: For Anent: Name Craiq Ruiz Name Doris Snashall Title Mananement Analvst Title Director of ProDertv Management Department Housinq & RedeveloDment Address 2130 Fourth Avenue Aqencv of Carlsbad San Dieao, CA 92101 Address 2965 Roosevelt Street. Suite B Phone No. 619.231.0288 Carlsbad, CA 92008 Phone No. 760.434.281 7 Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. 16. CONFLICT OF INTEREST 5 City Attorney Approved Version #04.01.02 Agency will evaluate Agent's duties pursuant to this Agreement to determine whether disclosure under the Political Reform Act and the City of Carlsbad's Conflict of Interest Code is required of Agent or any of Agent's employees, agents, or subcontractors. Should it be determined that disclosure is required, Agent or Agent's affected employees, agents, or subcontractors will complete and file with the Agency Clerk those schedules specified by Agency and contained in the Statement of Economic Interests Form 700. Agent, for Agent and on behalf of Agent's agents, employees, subcontractors and consultants warrants that by execution of this Agreement, that they have no interest, present or contemplated, in the projects affected by this Agreement. Agent further warrants that neither Agent, nor Agent's agents, employees, subcontractors and consultants have any ancillary real property, business interests or income that will be affected by this Agreement or, alternatively, that Agent will file with the Agency an affidavit disclosing this interest. 17. GENERAL COMPLIANCE WITH LAWS Agent will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Agent, or in any way affect the performance of the Services by Agent. Agent will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of Agent's services with all applicable laws, ordinances and regulations. Agent will be aware of the requirements of the Immigration Reform and Control Act of 1986 and will comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and consultants that the services required by this Agreement. 18. DISCRIMINATION AND HARASSMENT PROHIBITED Agent will comply with all applicable local, state and federal laws and regulations prohibiting discrimination and harassment. 19. DISPUTE RESOLUTION If a dispute should arise regarding the performance of the Services the following procedure will be used to resolve any questions of fact or interpretation not otherwise settled by agreement between the parties. Representatives of Agent or Agency will reduce such questions, and their respective views, to writing. A copy of such documented dispute will be forwarded to both parties involved along with recommended methods of resolution, which would be of benefit to both parties. The representative receiving the letter will reply to the letter along with a recommended method of resolution within ten (1 0) business days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded to the Agency Manager. The Agency Manager will consider the facts and solutions recommended by each party and may then opt to direct a solution to the problem. In such cases, the action of the Agency Manager will be binding upon the parties involved, although 6 City Attorney Approved Version #04.01.02 nothing in this procedure will prohibit the parties from seeking remedies available to them at law. 20. TERMINATION In the event of the Agent's failure to prosecute, deliver, or perform the Services, Agency may terminate this Agreement for nonperformance by notifying Agent by certified mail of the termination. If Agency decides to abandon or indefinitely postpone the work or services contemplated by this Agreement, Agency may terminate this Agreement upon written notice to Agent. Upon notification of termination, Agent has five (5) business days to deliver any documents owned by Agency and all work in progress to Agency address contained in this Agreement. Agency will make a determination of fact based upon the work product delivered to Agency and of the percentage of work that Agent has performed which is usable and of worth to Agency in having the Agreement completed. Based upon that finding Agency will determine the final payment of the Agreement. Either party upon tendering thirty (30) days written notice to the other party may terminate this Agreement. In this event and upon request of Agency, Agent will assemble the work product and put it in order for proper filing and closing and deliver it to Agency. Agent will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee payable under this Agreement. Agency will make the final determination as to the portions of tasks completed and the compensation to be made. 21. COVENANTS AGAINST CONTINGENT FEES Agent warrants that Agent has not employed or retained any company or person, other than a bona fide employee working for Agent, to solicit or secure this Agreement, and that Agent has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, Agency will have the right to annul this Agreement without liability, or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee. 22. CLAIMS AND LAWSUITS By signing this Agreement, Agent agrees that any Agreement claim submitted to Agency must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation. Agent acknowledges that if a false claim is submitted to Agency, it may be considered fraud and Agent may be subject to criminal prosecution. Agent acknowledges that California Government Code sections 12650 et sea., the False Claims Act applies to this Agreement and, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If Agency seeks to recover penalties pursuant to the False Claims Act, it is 7 City Attorney Approved Version #04.01.02 entitled to recover its litigation costs, including attorney's fees. Agent acknowledges that the filing of a false claim may subject Agent to an administrative debarment proceeding as the result of which Agent may be prevented to act as a Agent on any public work or improvement for a period of up to five (5) years. Agent acknowledges debarment by another jurisdiction is grounds for Agency to terminate this Agreement. 23. JURISDICTION AND VENUE Any action at law or in equity brought by either of the parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of San Diego, State of California, and the parties waive all provisions of law providing for a change of venue in these proceedings to any other county. 24. SUCCESSORS AND ASSIGNS It is mutually understood and agreed that this Agreement will be binding upon Agency and Agent and their respective successors. Neither this Agreement or any part of it nor any monies due or to become due under it may be assigned by Agent without the prior consent of Agency, which shall not be unreasonably withheld. 25. ENTIRE AGREEMENT This Agreement, together with any other written document referred to or contemplated by it, along with the purchase order for this Agreement and its provisions, embody the entire Agreement and understanding between the parties relating to the subject matter of it. In case of conflict, the terms of the Agreement supersede the purchase order. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties. Ill Ill Ill Ill 8 City Attorney Approved Version #04.01.02 26. AUTHORITY The individuals executing this Agreement and the instruments referenced in it on behalf of Agent each represent and warrant that they have the legal power, right and actual authority to bind Agent to the terms and conditions of this Agreement. Interfaith Housing Assistance CARLSBAD REDEVELOPMENT Corporation, a California Nonprofit AGENCY, a Community Corporation Redevelopment Agency of the State of California xecutive Director ATTEST: If required by Agency, proper notarial acknowledgment of execution by Agent must be attached. If a Corporation, Agreement must be signed by one corporate officer from each of the following two groups. *Group A. Chairman, President, or Vice-president **Group B. Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer@) signing to bind the corporation. APPROVED AS TO FORM: RONALD R. BALL, City Attorney By: //Deputy City Attorney u 9 City Attorney Approved Version #04.01.02 EXHIBIT “A” SCOPE OF SERVICES Itemized List of what Agent will do for Agency and at what price 1, Personnel. THE AGENT shall hire all managerial and operational personnel, including the resident managers, necessary for the efficient discharge of the duties of THE AGENT hereunder. THE AGENT shall administer compensation for the services of such employees. 2. Agent‘s Services and Duties. Under the personal and direct supervision of one of its principal officers, THE AGENT shall render services and perform duties as follows: (a) On the basis of job standards and wage rates approved by THE AGENCY on the recommendation of THE AGENT or resulting from wage negotiations, THE AGENT will investigate, hire, pay, supervise, and discharge the personnel necessary to be employed to properly maintain and operate the Apartments. Such personnel shall in every instance be in THE AGENT’S employ. Compensation for the services of such employees shall be an operating expense of the Apartments. (b) THE AGENT will cause the buildings, appurtenances and grounds of THE APARTMENTS to be maintained according to standards acceptable to THE AGENCY and its lenders including all normal maintenance and repair work as may be necessary. (c) With the exception of payments required under the mortgage, taxes, insurance, utilities, payroll and THE AGENCY approved contractual obligations, no disbursement shall be made by THE AGENT in excess of $1000.00 unless specifically authorized by THE AGENCY; excepting, however, that emergency repairs, involving manifest danger to life or property, or immediately necessary for preservation and safety of the Apartments, or for the safety of the tenants, or required to avoid the suspension of any necessary service to the apartments, may be made by THE AGENT irrespective of the cost limitation imposed by this paragraph. Notwithstanding this authority on emergency repairs, it is understood and agreed that THE AGENT will, if at all possible, confer immediately with THE AGENCY regarding every such expenditure and its effect on the budget. (d) THE AGENT will maintain a comprehensive system of office records, books, and accounts in a manner satisfactory to include all appropriate project expenditures, which records shall be subject to examination by THE AGENCY’S authorized agents during standard business hours. As a standard practice, THE 10 City Attorney Approved Version #04.01.02 AGENT shall render to the Agency's Finance Department by not later than the twentieth (20th) day of each succeeding month a financial report detailing the prior month's income and expense activities. This financial report package shall include the following: 1) Cash Flow Statement - indicating monthly and year-to-date 2) Budaet Comparison Report - detailing budgeted to actual income 3) Check Reaister Detail Report - detailing each check written during 4) Income Reaister - showing details on every item of income 5) Tenant Directory - listing all units in sequence with scheduled rent, 6) Bank Reconciliation ReDort. 7) Monthlv Vacancv Report. 8) Copies of All Invoices - paid during the month. itemization of income and expenses. and expenses for the month and year-to-date. the month. received during the month. rent paid, and occupancy status. (e) At least 60 days before the beginning of each new fiscal year, THE AGENT will prepare an operating budget setting forth an itemized statement of the anticipated receipts and disbursements for the new fiscal year based upon the then current schedule of monthly rents, and taking into account the general condition of the Apartments and THE AGENCYs objectives for the ensuing year. Each such budget, together with a statement from THE AGENT outlining a plan of operation and justifying the estimates made in every material item, shall be submitted to THE AGENCY in final draft at least thirty (30) days before the commencement of the fiscal year for which it has been prepared. The budget as finally approved and adopted by THE AGENCY shall serve as a supporting document for the schedule of monthly rents proposed for the new fiscal year. 3. Aaencv Bank Account. THE AGENT shall establish and maintain, in a bank whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC) and in a manner to indicate the custodial nature thereof, a separate bank account as Agent of THE AGENCY for the deposit of the monies of THE AGENCY, with authority to draw thereon for any payments to be made by THE AGENT to discharge any liabilities or obligations incurred pursuant to this Agreement, and for the payment of THE AGENT'S fee; all of which payments shall be subject to the limitations in this Agreement. 4. Policv Makina and Administration. (a) THE AGENCY shall establish policies and the role of THE AGENT is to implement those policies. Therefore, THE AGENCY shall not issue instructions directly to any on-site personnel or other personnel of THE AGENT. Any instructions by THE AGENCY shall be transmitted by THE AGENCY'S 11 City Attorney Approved Version #04.01.02 President or designee in writing to THE AGENT who will then instruct the proper staff person on site. (b) Some of the policies to be established by THE AGENCY with the input of THE AGENT shall be in the following areas: (1) Tenant selection criteria; (2) House rules; (3) Eviction; (4) Marketing and a management plan; (5) Personnel, salaries and benefits; (6) Lease provisions, lease terms, and lease amendments; (7) Rent collection; (8) Security; and, (9) Maintenance. (c) To facilitate promulgation of policy, THE AGENCY and THE AGENT will meet monthly to review financial reports, management procedures and tenant relations. THE AGENT will prepare a written narrative report of the proceedings following each meeting. (d) THE AGENT will comply with all laws, statutes, ordinances, governmental rules and regulations, conditional use permits, zoning variances and the like, now in force or which may hereinafter be enacted, promulgated or granted with respect to the Apartments. THE AGENT agrees to comply with Title VI1 of the Civil Rights Act of 1964, as amended, and the California Fair Employment Practices Act. 5. Leasina of Units. (a) THE AGENT will advertise as necessary to fill units immediately upon certificate of occupancy, by displaying "for rent" signs, by making outreach to local community organizations and churches, and by means of flyers, banners and other media as necessary. Once the Apartments are fully occupied, THE AGENT will establish a waiting list to be used to fill subsequent vacancies. (b) A Tenant Selection Policy and a management plan including tenant participation will be promulgated by THE AGENCY with input from THE AGENT. The resident manager will screen applicants who will be accepted for or declined tenancy in accordance with the Tenant Selection Policy. Incomes and assets of applicants will be verified and documented in a standardized reporting form acceptable to all necessary compliance monitoring agencies. 12 City Attorney Approved Version #04.01.02 6. Aaent's Authoritv to Administer Leases. (a) THE AGENCY grants THE AGENT the authority to sign, renew or cancel leases for the Apartments and any part thereof; to collect rents or other charges and expenses due or to become due and give receipts therefor, to terminate tenancies and sign and serve in the name of THE AGENCY such notices as are appropriate; with the approval of the General Counsel of the Redevelopment Agency to institute and prosecute actions to evict tenants and to recover possession of units in the name of THE AGENCY and recover rents and other sums due and, when expedient, to settle, compromise, and release such actions or suits or reinstate such tenancies, subject to the following procedures which may be amended from time to time, as required by practical concerns, with the mutual consent of the Parties. (b) Rent will be collected by the resident manager at the site office. Rents are due on the first day of every month. THE AGENT shall act in accordance with the law and with those procedures established by THE AGENCY when dealing with delinquent tenants. Once legal action is initiated, the resident manager will have no authority to accept rent from the tenant. At this point, the tenancy may be reinstated only under the following conditions: (1) Approval by THE AGENT; (2) Payment by the tenant of all past due rent, late charges, and legal (3) Only if legal proceedings have not been previously filed against the fees and court costs incurred; and tenant. (c) A service fee of $10.00 will be charged for returned checks. If payment is not made within three (3) days of notification, then eviction proceedings may be initiated. (d) Partial payments will only be accepted when approved in advance by the Director of Property Management. (e) A security deposit will be charged to all tenants. The amount of the deposit may be a maximum of two (2) months rent for the unit and will be collected along with the first month's rent. At the termination of the lease, the tenant will be required to return the unit in the same condition in which it was received less reasonable wear and tear as determined by the resident manager. If there is tenant damage, the actual cost to repair the damage will be deducted from the security deposit. Any remaining deposit will be returned to the tenant within twenty-one (21) days as required by law. If the tenant owes money in addition to the security deposit, every effort will be made to collect from the tenant. 13 City Attorney Approved Version #04.01.02 (f) A move out inspection will be performed by the resident manager in the presence of the tenant. (9) In addition to rent, tenants will pay for use of the laundry equipment. (h) The community room will be available to the residents upon request for special functions providing that the date requested is available and the resident reserves that specified date in writing with the resident manager 7. Maintenance and Repair of Apartments (a) THE AGENCY grants THE AGENT the power and authority to make or cause to be made and supervise repairs and alterations, and to do decorating in the Apartments and to purchase supplies and pay all bills therefor. THE AGENT agrees to secure prior approval of THE AGENCY on all expenditures in excess of $1,000 for any one item, except in the case of emergencies as set forth below. (b) Equipment and supplies will be purchased and maintained on-site. An inventory list will be made of this equipment and kept on-site and in THE AGENT'S office. (c) THE AGENT shall prepare for use by the management staff, standard procedures for inspecting major equipment and standard maintenance procedures. Such equipment will include, but not be limited to, elevators, HVAC systems, Tv antenna, garages, fans, electric gates, locks and security systems, and other mechanical equipment. Upon turnover, the interior of every unit shall be generally cleaned or repainted. (d) Qualified Agents or maintenance staff hired and supervised by THE AGENT will perform most of the cleaning and general maintenance. (e) Should an outside Agent be used, three bids will be obtained and the lowest or most reasonable bid will be selected, with THE AGENCY'S approval if the bid exceeds the authorized spending limit. (f) Tenants will be required to report to the resident manager any items requiring maintenance or repair. Upon notification from a tenant, the managerhaintenance person will complete a work order. Work orders will be completed in four parts for all maintenance or repair, including vacant units. Upon completion of the work order, the manager and tenant will sign the work order, and THE AGENT shall keep two (2) copies of the work order by month and unit. One copy of the work order will be placed in the tenant file and one copy will be given to the tenant. Non-emergency maintenance or repair requests will be attended to within forty-eight (48) hours, and when this is impossible, the 14 City Attorney Approved Version #04.01.02 tenant will be notified immediately as to when the maintenance or repairs will be undertaken. (9) Emergency requests will be handled immediately. The resident manager will be instructed on how to handle emergency repairs and will have an approved list of vendors to use in the absence of THE AGENT. The tenants will be instructed to contact THE AGENT'S 24-hour answering service, which is instructed on how to handle these situations. (h) The trees, shrubs and other landscaping features will be maintained on a regular basis. (i) An exterminator will be hired to provide an ongoing program of pest control on a monthly schedule. (j) A regular monthly schedule will be established for cleaning and painting gutters, railings, common areas, outside windows, and so on. (k) Trash will be removed from dumpsters in the building by the local garbage collection service as often as necessary to maintain the Apartments in a neat, clean and sanitary condition. (I) The resident manager will perform annual inspections of all units and any damage or housekeeping problems will be identified at that time. Notice will be given to the tenants to repair or clean as appropriate. If the tenant fails to respond, then the resident manager will make the requested repairs or cleaning and charge the cost to the tenant. (m) If THE AGENCY shall request THE AGENT to undertake work exceeding that customary in San Diego County for normal management of multi- unit apartment buildings, then a fee shall be agreed upon for such work before the work begins. Normal management does not include modernization, refinancing, fire restoration, major rehabilitation, obtaining income tax advice, presenting petitions to planning or zoning committees, advising on proposed new construction, or other counseling. 8. Tenant Relations. (a) The resident manager will handle tenant grievances. If this is unsatisfactory to the tenant, THE AGENT will become involved. THE AGENT will immediately notify THE AGENCY of any such requests and inform the tenant of their right to appeal to THE AGENCY as a last resort. (b) Tenants' requests for maintenance or repairs will be handled as described in paragraph 12(f) above. 15 City Attorney Approved Version #04.01.02 (c) On execution of a lease, or at time of move-in, new tenants, including all family members, will be oriented to the house rules and policies. Items reviewed will include the lease, house rules and regulations, maintenance policies, fiscal policies, supervision of children, and emergency safety equipment and procedures. (d) On request from THE AGENCY, THE AGENT will make its principal officers available for meetings with tenants as a group, or with tenants' association if one is formed, as oflen as once a month. 16 City Attorney Approved Version #04.01.02