HomeMy WebLinkAboutWSH Management Inc; 2019-03-07;AGREEMENT FOR EXCLUSIVE MANAGEMENT AGENT SERVICES
WSH Management, Inc.
THIS AGREEMENT is made and entered into as of the :[ ±b day of
March, 2019, and effective as of January 1, 2019, by and between the CITY OF
CARLSBAD, a chartered municipal corporation, ("City"), and WSH MANAGEMENT,
INC., a California Corporation ("Agent").
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 expertise and experience in providing exclusive
management agent services and has been the property manager for the past 4 years
following city staff completion of a best value analysis and as a result of a request for
proposal process. City desires to continue the business relationship for these
management agent services for one (1) additional year while city executes a request for
proposal for management services and considers options for ongoing ownership and
management of the Tyler Court Senior Apartments.
C. Selection of Agent is expected to achieve the desired results in an
expedited fashion because the city will continue to use the services of a very
professional property management company licensed by the State of California and
operating with a high level of expertise and experience.
D. Agent has affirmed its willingness and ability to continue to perform such work,
and the management plan of said Agent has been incorporated into this Agreement as
Attachment A.
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, the management services
(the "Services") set forth within this Agreement and according to the Management Plan
approved by the Community and Economic Development Director, and which is
incorporated as Attachment A in accordance with this Agreement's terms and
conditions. As set forth and directed by the City and through special accommodations,
Contractor shall implement the Carlsbad Rehousing Program for qualifying homeless
residents. In addition, it is hereby noted that the City shall be responsible for setting the
rental structure and the actual rents to be charged at the Tyler Court Senior Apartments.
Contractor shall ensure that all rents set by the City are paid in full as set forth by the
City.
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
This Agreement will be effective starting as of January 1, 2019 and expiring December
31, 2019, unless terminated at an earlier date due to any change in management
services provider and/or transfer of ownership of the property.
Agent will accommodate a transition period of 30-60 days to a new vendor, should the
Agent not be the successful bidder in a subsequent request for proposals or
qualifications process; this transition period will ensure minimal disruption as possible
for the residents and the city.
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. The Agent's monthly fee shall be the sum of Fifty-Five Dollars
($55) per unit (and shall include additionally a free unit for on-site managerial staff),
which has been the approved effective rate since November 1, 2018 and shall be the
approved rate until expiration of the contract as noted herein.
6. STATUS OF AGENT
Agent will perform the Services in Agent's own way as an independent agent 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 City. 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.
8. OTHER AGENTS
The City reserves the right to employ other Agents in connection with the Services.
9. INDEMNIFICATION
(a) Agent agrees to indemnify and hold harmless the City and its 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 Agent
incurs or makes to or on behalf of an injured employee under the Agent's 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 City 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 physical structures known as 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 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 Coveraqes 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. City, 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 Liability 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
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 Employer's Liability Insurance.
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 City will be named as an additional insured on General
Liability. Likewise, Agent will be named as an additional insured on the City's General
Liability policy.
10.2.2 Agent will obtain occurrence coverage, excluding Professional
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 City sent by certified mail pursuant to the Notice provisions of this
Agreement.
10.3 Providinq Certificates of Insurance and Endorsements. Prior to City's
execution of this Agreement, Agent will furnish certificates of insurance and
endorsements to City.
10.4 Failure to Maintain Coverage. If Agent fails to maintain any of these
insurance coverages, then City 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 City to obtain or maintain insurance and City 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. City 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 City as co-obligee.
11. BUSINESS LICENSE
Agent will obtain and maintain a City of Carlsbad Business License for the term of the
Agreement, as may be amended from time-to-time.
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 City 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 City. 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 City. 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 City
and Agent relinquishes all claims to the copyrights in favor of City.
15. NOTICES
The name of the persons who are authorized to give written notices or to receive written
notice on behalf of City and on behalf of Agent under this Agreement.
For City:
Debbie Fountain
Director, Community & Economic
Development
City of Carlsbad
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Phone No. 760.434.2815
For Agent:
Jennifer Jones
Vice President
Western Seniors Housing, Inc.
18881 Von Karman Avenue
Suite 720
Irvine, Ca. 92612
Phone No. (949) 7 48-8200
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
City will evaluate Agent's duties pursuant to this Agreement to determine whether
disclosure under the Political Reform Act and City'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 City Clerk those schedules specified by
City 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 City 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 City 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
(10) business days. If the resolution thus obtained is unsatisfactory to the aggrieved
party, a letter outlining the disputes will be forwarded to the City Manager. The City
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 City
Manager will be binding upon the parties involved, although 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, City
may terminate this Agreement for nonperformance by notifying Agent by certified mail of
the termination. If City decides to abandon or indefinitely postpone the work or services
contemplated by this Agreement, the City 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 City and all work in progress to City address contained
in this Agreement. City will make a determination of fact based upon the work product
delivered to City and of the percentage of work that Agent has performed which is
usable and of worth to City in having the Agreement completed. Based upon that finding
City will determine the final payment of the Agreement.
Either party upon tendering ninety (90) days written notice to the other party may
terminate this Agreement for any reason, including a decision by the city to contract with
a new property management company. In this event and upon request of City, Agent
will assemble the work product, develop and execute a management transition plan,
assist with delivery of appropriate notice to the residents, and put all business matters in
order to allow for transition of management of the Apartments. 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. City 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, City 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
City 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 City, it may be considered fraud and
Agent may be subject to criminal prosecution. Agent acknowledges that California
Government Code sections 12650 et seq., 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 City seeks to recover penalties pursuant to the False Claims Act, it is
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 City to terminate this Agreement.
23. JURISDICTIONS 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 City and
Agent and their respective successors. Neither this Agreement nor any part of it nor any
monies due or to become due under it may be assigned by Agent without the prior
consent of City, 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.
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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.
WSH Management, Inc., a California
Corporation
*By: ~
Anthony Sandoval, President
**By: ~~
Cruz Guardado, Secretary
Carlsbad , a chartered municipal
By:
Scott Chadwick, City Manager
ATTEST:
~Oo;:;R(j~
Ba~Engleson, City Clerk
If required by City, 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(s) signing to bind the
corporation.
APPROVED AS TO FORM:
Celia Brewer, City Attorney
By Ron Kemp, Assistan City Attorney
-ATTA.Ct\HE\\JT A 4(wsHT Management !Via'-/ '7' 2.o,9
STATEMENT OF UNDERSTANDING AND APPROACH
Management Plan Tyler Court Senior Apartments
1. The Role and Responsibility of the Owner and the Relationship and Delegations
of Authority to the Managing Agent.
a. The resident manager will supervise the activities of the administrative and
maintenance staff. The resident manager is directly responsible to the
Managing Agent, and will be directed by the Managing Agent who will set
forth the requirements of day-to-day operations.
b. The Managing Agent will make all decisions empowered by the contract
regarding operations without consulting the Owner, including events of
extreme emergency. The Managing Agent will notify the Owner as soon as
possible after any emergency decisions are implemented.
c. The Managing Agent will consult the Owner regarding all policy matters which
the Agent is not authorized to handle under terms of the management
agreement, and on all matters which are of significance to the project. The
Managing Agent will meet with the Owner at regular intervals establish by the
Owner to review all project business and to update the management plan as
directed by the Owner.
2. Personnel Policy and Staffing Arrangements.
a. All employees will be employees of the Agent, not the Owner. All hiring will
be in strict conformance with equal employment opportunity requirements
provided by the Department of Fair Employment and Housing with regard to
race, color, religion, sex, handicap, familial status or national origin.
b. The staffing plan for this property will include a part-time manager, full-time
assistant manager, part-time maintenance technician, and part-time porter.
Job Descriptions:
OFFICE STAFF (includes Resident Manager and Assistant Manager):
18881 Von Karman Avenue • Suite 720 • Irvine CA 92612 • Ph: 949.748.8200 • Fax: 949.748.8220
www.wshousing.com
~WSH[Management
General responsibilities include, but are not limited to, customer service,
maintenance requests, leasing, certifications, invoice processing, rent
collection and processing, and input and insuring accuracy of data in the
property management software system.
Resident Manager: The resident manager of the project will direct the
operations of the project in accordance with the policy, guidance and
procedures prescribed by the Managing Agent. Job performance is reviewed
for adequacy and conformance with established procedures and
requirements of the position. Job description for this position will be provided
upon request.
Assistant Manager: The role of the assistant manager is to provide support in
all duties of managing the property as described above, and as directed by
the Resident Manager to meet the management obligations.
The major duties of Resident Manager and Assistant Manager include:
24-hour call for emergencies 7 days per week;
Resident satisfaction and customer service;
Adherence of residents to the Lease Agreement requirements;
Partnering with the City of Carlsbad for implementation and adherence of
the Re-Housing Set-Aside Program (RSAP).
Oversight to ensure that building is in good repair, ground areas and
public areas kept clean, and present a good appearance/curb appeal;
Be responsible for ensuring preventive maintenance and current
maintenance on buildings, electrical, plumbing, heating, air conditioning,
irrigation, and mechanical systems per requirements of the Managing
Agent.
Instruct and educate residents on procedures and practices to follow
concerning the operations of appliances, safety equipment, fire
prevention, and preventive maintenance.
18881 Von Karman Avenue • Suite 720 • Irvine CA 92612 • Ph: 949.748.8200 • Fax: 949.748.8220
www.wshmgmt.com
411Cv,sHfManagement
Keep informed on changes in local rental, tax and utility rates, and other
activities that would affect the tenancy of the project.
Collect and deposit all monies from tenants and other services as directed
by the Managing Agent.
Process all property payables due through the PayScan function of the
property management accounting software system. Payables are to be
input on a timely basis, which is considered as received or at least weekly.
If an invoice should be expected, but has not been received it is required
to contact the vendor to send the invoice promptly for payment to be
processed. There are 3 levels of approval controls for payment
processing: 1. Input to accounting software system by Assistant Manager,
2. 2nd Approval in system by Resident Manager, and 3. Final Approval in
system by Vice President.
Maintain the regulatory compliance and organization of the resident files
with the requirements specific to this property, and as prescribed by the
Director of Compliance.
Maintain building and ground safety and fire prevention programs.
Develop an emergency preparedness plan for residents, and in
conjunction with the fire department educate the procedure for residents to
follow in case of fire, earthquake or other emergencies.
Maintain with the assistance of the maintenance staff, an inventory of
supplies, tools, equipment, and all property owned by the project.
Obtain labor and material costs and work completion estimates for major
repairs, renovation or replacement of equipment.
Assist applicants regarding questions in preparing applications for
residency, as appropriate and within Fair Housing guidelines.
Establish positive resident relations, and promote harmonious relations
among residents, housing personnel and representatives, and the
neighboring community.
18881 Von Karman Avenue • Suite 720 • Irvine CA 92612 • Ph: 949.748.8200 • Fax: 949.748.8220
www.wshmgmt.com
~SH[Management
Resolve resident complaints within the guidelines of the Resident
Grievance and Appeals procedure.
Maintain working relations with the police and fire departments,
government officials, and other community resources that are
programmed and designed to assist residents.
Participate and successfully complete all training sessions as requested
and required by the Managing Agent. These include but are not limited to
State of California legal updates pertaining to Landlord Tenant Law,
pertinent regulatory compliance training, Fair Housing training, sexual
harassment training. Trainings are provided in a variety of offerings
online, annually, and at the monthly manager meetings.
Maintain Wait List in accordance with established regulations and rules.
Maintenance Technician and Porter: The maintenance technician and porter will
perform maintenance and janitorial tasks as directed by the manager. These are
each 20-hr per week positions, and generally alternate so one is on-site in the
morning and the other in the afternoon. The Maintenance Technician is on 24-
hour call for emergencies 7 days/week. Job description for this position will be
provided upon request.
3. Affirmative Fair Housing Marketing Plan
a. Agent is responsible for marketing the property and will abide by all
application fair housing laws and an approved Affirmative Fair Housing
Marketing Plan.
b. Advertising, as needed, in English, Spanish and other languages will be done
as appropriate to sustain occupancy goals and within budget guidelines. This
may include print advertisement, flyers distributed to local and county area
organizations associated with the senior market, internet listings affiliated with
rental and affordable housing, participation in property management website,
and signage/banners as allowed by code.
c. Community outreach will be ongoing and will include those groups least likely
to know about Tyler Court Senior Apartments, so that prospective residents
18881 Von Karman Avenue • Suite 720 • Irvine CA 92612 • Ph: 949.748.8200 • Fax: 949.748.8220
www.wshmgmt.com
41fvisHIManagement
within those groups feel welcome to apply. Outreach also includes agencies
and organizations serving the special needs populations.
d. If required, preference will be given as directed by Owner and regulations, in
renting to seniors displaced from housing by governmental assisted housing
developments, or by other governmental actions or natural disasters by
contacting the agency responsible for tenant displacement for such events.
Additionally, preference will be adhered to in accordance with directive from
the City of Carlsbad for the Re-Housing Set-Aside Program (RSAP).
e. All advertising, electronic or printed, will identify Tyler Court Senior
Apartments with the international symbol of handicapped accessibility and the
Fair Housing Equal Opportunity logos.
f. All resident requests for Reasonable Accommodations or Modifications will be
managed in accordance with the law. The Agent will follow established
policies and procedures to document any requests.
g. Agent will utilize any existing wait list, and will follow established procedures
in an excel spreadsheet format.
4. Procedures for Determining Resident Eligibility and for Certifying and
Recertifying Income
All residents are selected in accordance with an approved management plan and
an approved resident selection criteria.
a. All interested persons may obtain and submit an application for housing. All
personnel handling selection of residents and processing of applications are
required to be knowledgeable and have on hand a copy of the Policies and
Procedures manual, which encompasses the occupancy and continuing
occupancy requirements.
b. According to the Wait List, completed applications are processed in
chronological order of the date the fully completed application was received
based on eligibility within the parameters for income and rent and unit size.
Additionally, applications will be logged by date and time when received. An
application fee of $20 per applicant will be charged, and $10 application fee
for a documented Live In Care Attendant.
18881 Von Karman Avenue • Suite 720 • Irvine CA 92612 • Ph: 949.748.8200 • Fax: 949.748.8220
www.wshmgmt.com
~SH{Management
c. The resident manager will be thoroughly trained by the Agent pertaining to the
program requirements and California Landlord/Tenant Law including, but not
limited to: Interviews, Resident Selection, Certification and Recertification
requirements, and the Lease, including all Addenda.
d. Each month the project will be audited by the Agent for compliance to make
certain that all requirements are adhered to. Additionally every future resident
file is audited by the Director of Compliance prior to move in to ensure income
and asset qualification.
5. Leasing and Occupancy Policies
a. All prospective residents are provided an Application to Rent, the Resident
Section Criteria, and Notice of VAWA rights. Details of occupancy and
screening standards are described in the Resident Selection Criteria. Refer to
attached selection criteria.
b. Prospective residents will complete an application. This is designed to give
the leasing staff basic data about the resident from which can determined
whether there are factors of age, income, family size, or others which would
effectively eliminate the applicant from further consideration. It also gives the
resident manager a chance to meet and talk with the prospect prior to actually
beginning the Agency paperwork. A crediUcriminal background report will be
obtained for each applicant after it is determined that the applicant (s)
qualifies with regard to the Agency regulations and prior landlord reports.
Notice of fair housing and reasonable accommodations are also described.
Income verification authorization forms will be signed by the prospective
resident. It will be explained at that time that their credit and character will be
thoroughly investigated. The leasing staff will request that the prospective
resident give any information in advance of any unusual situation that the
manager is likely to encounter in investigating the resident. In this way
prospective residents have an opportunity to explain in advance, any
unresolved credit problems, unfavorable reports from former landlords,
criminal background and other factors, which might otherwise disqualify them.
As verification forms are completed, the resident's file is assembled. The
leasing staff will evaluate each resident in light of the information in his or her
18881 Von Karman Avenue • Suite 720 • Irvine CA 92612 • Ph: 949.748.8200 • Fax: 949.748.8220
www.wshmgmt.com
41fvisH[Management
file as well as the objectives established for the project by the Owner. The
resident manager and Agent will determine which residents are to be
accepted for residency at the community.
c. After it is determined that the prospective resident meets all required criteria
for qualification, the leasing staff will meet with the resident to select an
apartment, complete a 'Holding Deposit Agreement" and collect the $200
"Holding Deposit". At this time, the future resident will also be given
information to make a choice by the time of move in between a standard
security deposit or reduced security deposit with purchase of Surety Bond,
both rates based on resident screening results.
d. On the scheduled move-in day the future resident will schedule an
appointment to come to the office for orientation, to complete all move-in
paperwork. All move-in paperwork must be completed on the day the lease is
signed. Keys are not given out until the lease start date and all move-in
monies have been paid and paperwork is completed.
e. New residents will receive an orientation to the building including a review of
all documents prior to signing, building rules, locations and availability of staff
and services, information on utility rate assistance programs, review of the
physical layout of the grounds and will have any questions answered. The
resident will be given copies of any signed documents and keys will be
issued.
f. During orientation residents will be introduced to our management
philosophy, values and principles regarding respecting the safety of all
residents; and the expectation to display respect for other residents in a
community living environment, in addition to respectful behavior toward
guests, vendors, inspectors and property staff.
g. At this time, forms written in languages other than English are not planned.
Those who are not bilingual have friends or family who translate and many of
the residents are able to act as translators when necessary. Translation
services can be provided upon request.
h. Resident files will be maintained at the project site, uploaded electronically,
and available for authorized inspection. These files will include Application,
Regulatory Qualification and Income Verification forms, all Move-in
documentation.
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6. Rent Collection Policies and Procedures
a. All rents are due on the first day of the month. However, all residents are
given until the fifth of each month (or the next business day if the 5th falls on a
non-business day) to pay their rent in full prior to a late charge being
assessed. Three-day notices are delivered on the 6th to residents who have
not paid by the 5th. All rent payments are to be delivered to the on-site office
during normal office hours, which are posted in the office or mailed to the
office. For resident convenience, a secure Rent Drop Box is accessible from 8
a.m. to 9 p.m. 7 days per week, in the Community Room. Any resident who
has not paid their rent before the end of the fifth day of the month will receive
a late charge assessment. Said late charge will be levied against the
resident, however, eviction proceedings will not be instituted against the
resident for nonpayment of late charges. If a resident regularly receives a
check later in the month, then upon written request his·rent due date may be
adjusted accordingly so as not to impose a hardship on that resident.
b. The on-site office staff is responsible for the collection of all rents and the
issuance of all rent receipts upon request. Cash payment will not be
accepted, nor checks that do not have the Payee indicated. All payments are
made by check, cashier's check or money order.
c. Rent payments, as they are received, are entered into the Yardi accounting
system, using CheckScan and the on-site office computer. Upon request the
rent receipt that the resident receives will include the name of the project; the
amount of money receipted for, and is signed by the authorized person
receiving the funds. We encourage all residents to keep their receipts for their
own protection. All funds received are deposited within 24 hours of receipt in
the operating account. Requests from residents for their check to be held for
deposit at a later date cannot be honored. The Agent maintains an operating
account as well as a separate security deposit account.
d. The required security deposit will be based on the results of the screening
report, the apartment rent level, and the choice made by the future resident of
a Traditional Deposit or the SureDeposit program. A conditionally approved
credit report will result in a higher security deposit. All applicants will also
have an option of using a surety bond for their security deposit through Sure
Deposit. Additional deposits will be required for pets and other pertinent entry
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devices, if applicable. Upon termination of the lease, the deposit is to be
refunded to the resident within 21 days, except as may be used by the Owner
toward reimbursement of the cost of repairing any damage to the property
(normal wear and tear excepted) caused by the resident or his family or
guests and any rent or other charges owed. The Owner shall provide the
resident with an itemized statement of any security deposit retention and any
charges in excess of $125 will include copies of invoices. Charges against the
deposit in excess of the total deposit will be turned over to a collection
agency.
7. Procedure for Resident Complaint Resolution
When a resident complaint arises the first point of contact should be the Resident
Manager. The resident manager will respond to a complaint within 24 hours of
receipt of the complaint during business hours, and will investigate the complaint.
The Resident Manager will communicate to the complainant the proposed resolution
of the complaint. If the complainant is not satisfied with the resolution from the
Resident Manager, the complaint will be reviewed by the Vice President of WSH
Management for resolution and if necessary an in-person meeting will be arranged
to discuss with all parties involved in the complaint to get consensus on a resolution.
If resolution is still not successful, the complaint will be reviewed by the President of
WSH Management.
8. Procedures for Requesting and Implementing a Rental Increase
a. Rent increases shall be anticipated and implemented as the needs of the Project
dictate and are approved in advance by Owner, in conjunction with the
preparation of the Annual Operating Budget. The Project's senior management
representative, in consultation with the project manager, shall prepare the Annual
Operating Budget for the approval of the Owner. Rent increases shall be
implemented in conformance with the requirements of the Agency regulations,
and in conformance with State and Federal low-income housing programs
relating to tax credits and/or bonds. Rent increases for units occupied by holders
of Section 8 certificates shall be coordinated with the local Housing Authority.
Rent increase requests normally will be processed 60-90 days prior to the end of
the resident's move-in anniversary. It is anticipated that rent increase would not
be more than once a year. Once it has been determined by an Owner that a
rental increase is necessary, the Managing Agent will adhere to any and all
program requirements and with California State Law.
18881 Von Karman Avenue • Suite 720 • Irvine CA 92612 • Ph: 949.748.8200 • Fax: 949.748.8220
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b. The Agent will be responsible for all processing of rental increases and/or
changes.
9. Plans For An Effective Maintenance and Repair Program
a. Preventative maintenance is an important part of our maintenance program. All
appliances, water heaters, AC/heaters, weather-stripping, windows, fans, and
smoke detectors are inspected on a regular basis. Each unit is inspected semi-
annually to ascertain the condition of all items. This is a part of the normal
preventative maintenance program; in addition, all appliances and mechanical
equipment will be inspected prior to initial occupancy and prior to each resident
occupying the unit thereafter.
b. Copies of the "as-built" plans will be referenced if provided by the Owner and
maintained on site. In the case of any future work, it will be the responsibility of
the contractor or subcontractor to provide the Owners and Agent with "as-built"
updated plans and specifications upon the completion of their work.
c. General Maintenance Procedures:
(1) All appliances and mechanical equipment are inspected on a regular
basis. Each unit is inspected semi-annually to ascertain the condition of all
of the appliances. This is a part of the normal preventive maintenance
program. In addition, all appliances and mechanical equipment will be
inspected prior to initial occupancy and prior to each new tenant
occupying the unit thereafter.
Should a warranty item or plumbing/electrical problem be involved, a local
professional or the building contractor will be contacted. Any regularly
scheduled major improvements will be coordinated with the Managing
Agent and Owner for approval prior to commencement of work.
(2) City, State, and Federal regulations will be complied with as to the
installation and maintenance of fire alarm systems, sprinkler systems,
smoke detectors and fire extinguishers. A certified vendor will conduct
annual fire alarm system inspections and quarterly fire sprinkler
inspections. Smoke detectors are checked at least twice a year during
18881 Von Karman Avenue • Suite 720 • Irvine CA 92612 • Ph: 949.748.8200 • Fax: 949.748.8220
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maintenance inspections. The Maintenance Technician also inspects
smoke detectors of vacant units. Fire extinguishers are checked during
monthly inspections to ensure service dates are current and have not
lapsed. Outside lighting will be provided as required for proper security on
the project. Outside lighting is checked on a regular basis to ensure proper
light coverage and bulbs are operational.
(3) When a resident gives notice to vacate the unit and immediately after a
move-out, the resident manager is required to inspect each unit including
the appliances of that unit to ascertain whether or not there has been any
damage or any maintenance is required. Any necessary work is entered to
a work order, which then is performed by the maintenance staff. All work
must be completed prior to re-renting the unit.
(4) Each unit is inspected semi-annually to determine the need for any
maintenance work. At five-year intervals, each apartment unit may
become eligible for repainting for an existing resident. If the unit is in need
of repainting, it is then put on the paint schedule and completed by staff or
vendor. Repainting of a unit will include doors and trim. Window blinds are
inspected each time a unit is vacated. If the window blinds are worn, they
are replaced at that time. For long-term residents, the window blinds are
inspected at the time of semi-annual inspection. After five years, the unit
would become eligible for new window blinds.
The exterior of the project is monitored regularly to determine the need for
repainting. The repainting of exterior trim, fences, and doors will begin as
needed after approximately three years. We do not anticipate the need to
repaint stucco for several years; however, this will be done as necessary.
(5) All major repairs that are beyond the capabilities of our own maintenance
staff will be handled on a bid basis, notwithstanding emergencies. We will
solicit bids from at least three qualified subcontractors on all major repairs
and replacements, if possible, to be assured the best possible quality and
price. In case of emergency, the resident manager along with the Vice
President will use good judgment on how to best handle the situation. In
any emergency situation, the Resident Manager will contact the Managing
Agent as soon as possible with a full report.
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A monthly property safety inspection will be completed, and include a plan
of action and date for correction of any discovered deficiencies.
Professional landscapers will carry out the grounds upkeep and
maintenance. In most instances, outside contract labor or contractors
may be used for exterior painting, parking lot sweeping, major landscape
renovation, exterminating, major air conditioning and plumbing.
(6) Garbage and trash removal is handled by the contractor.
(7) The on-site staff will also be responsible for the cleanliness of the common
areas of the community. On a daily basis, staff will walk the grounds and
common areas to check for cleanliness and tidiness.
(8) Maintenance calls will be handled by work order only, and are taken care
of on a priority basis of which was requested first, with the exception of
emergency repairs. If completion of a work order is delayed, notes will be
updated in the property management work order system and
communication will be made to the resident regarding the status, e.g. the
part was ordered and will arrive in 2 days. Residents are not to do their
own repairs. Any resident with a maintenance issue will contact the office
detailing the problem or assistance requested. After office hours calls will
be handled by the answering service who will dispatch the Service
Technician if it is determined to be a maintenance emergency. The
resident will be required to authorize management to enter the apartment
to make necessary repairs. Damages caused by the resident will be billed
to the resident. When parts must be ordered before a repair can be made,
the resident will be advised and given an approximate date when the
repair will be made. Emergency problems will receive immediate attention.
Non-emergency problems will receive 24-hour service whenever possible ..
Work orders are tracked using Yardi (property management computer
software program). Two copies of each work order are printed with one
left in the resident's apartment and one kept on file by apartment number
once the work is completed.
d. All equipment and supplies are purchased only after shopping for the best price.
A minimum of three bids will be required, if possible, for any major equipment
18881 Von Karman Avenue • Suite 720 • Irvine CA 92612 • Ph: 949.748.8200 • Fax: 949.748.8220
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purchase. Neither the Owner nor the Agent has any identity of interest with any
supplier of products or services on the project.
Our projects do not have a purchase order system. The resident manager and/or
the maintenance technician order all goods and services. The resident manager
is to ensure goods were received, services were accomplished and acceptable,
and verifies invoices. The Resident manager enters all invoices through PayScan
and then payments are processed through the corporate office accounting
department, including a second approval by the supervisor for payment.
e. Requests for reimbursement for the Replacement Reserve Account are made
with appropriate supporting documentation, bids and justification.
10. Plans and Procedures for Providing Supplemental Services
a. Laundry and vending machines are provided from vendors. The laundry
vendor owns all vending services and equipment. Cash collected is paid in
the form of check to the appropriate projects and are deposited into the
general operating account.
b. All equipment will be owned by laundry vendor.
c. Laundry vendor forwards to main office a monthly check to be deposited
into the operating account of the project. No cash is accepted.
d. Laundry vendor will be responsible for all maintenance, servicing, and
stocking any machines.
e. Laundry contracts are normally renewed every five (5) years at which time
the terms and conditions are renegotiated. A new contract is written and
signed by both parties. This is a Managing Agent standard contract.
Vending machine contracts are negotiated in the same fashion as laundry
contracts.
11. PLANS FOR MAINTAINING ADEQUATE ACCOUNTING RECORDS
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a. All project records will be developed by the Agent and maintained in accordance
with Agency regulations and policies governing fiscal operations, accounting and
financial reports for multifamily housing projects, and will comply with generally-
accepted accounting procedures. Required reports will be prepared and
submitted from the Managing Agent to the Owner using a modified cash
reporting system.
The Agent will be responsible for the preparation of and submission of the
monthly cash flow report. In addition, the Agent will be responsible for the
preparation and submission of the Annual Operating Statement. The Owner will
contract for the annual audit. The Agent will cooperate with and make all records
available to the CPA for the preparation of the audit.
b. Project funds will not be co-mingled.
c. The accounting records will be set up and maintained by the Agent in the Agent's
office. The records will be kept on a modified accrual basis and will comply with
generally accepted accounting practices. The accounting department will be
responsible for the preparation and submission of the quarterly and annual
reports to the lender, if necessary.
d. An independent CPA not associated with the project will provide the annual audit
or review.
e. Individual folders will be kept on the project site for all residents and will contain
completed applications, verification of income and certification, lease agreement,
security deposit, rent receipts, and correspondence. All files for residents who
have vacated an apartment will be kept a minimum of seven (7) years and in
accordance with the regulatory agreement. The original first year files will be
kept stored as directed. Scanned copies of all tenant certifications are also
maintained at the agent's office.
f. Resident records will be retained at the on-site office and will be available during
normal business hours for review. Accounting records will be maintained at the
Agent's office and will be available during normal working hours for review. All
records are maintained for a minimum of seven years.
12. ENERGY CONSERVATION MEASURES
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a. Each resident will be in direct control over his or her consumption of gas and
electricity. The manager will carry out orientation programs to educate the
residents in regard to the conservation procedures. Each resident will be advised
how to best maintain their equipment to the best of their ability and to call the
office for assistance for those who are unable to maintain the equipment. Items
such as filter changes, thermostat settings, and water temperature control will be
an integral part of the program. Smoke detector batteries and any filters are
replaced at the time of the semi-annual apartment inspection.
b. There are no conservation practices that the management has complete control
over, however, management will be involved in conservation at all levels.
Particular attention will be paid to conservation of energy in all common areas of
the project.
c. The management will provide filters as necessary to keep the HVAC clean and
efficient as well as make service calls on all HVAC that are not operating
properly. At the time of the maintenance visit, the maintenance staff is instructed
to educate the residents with regard to conservation of utilities. Additionally, with
each visit to a unit the maintenance staff is instructed to inspect the hot water
tank for malfunctions. The manager will make available free pamphlets
distributed through the utility companies with household hints on conservation
when available.
13. PLANS FOR RESIDENT COUNCIL
a. Residents may form a council, if desired, to plan community events, get-
togethers, parties and potluck dinners.
Managing Agent will attend council meetings, if asked, and will respond to all
resident issues arising at such meeting.
b. The resident manager and assistant manager will be well trained and
knowledgeable in the area of resident grievance procedures.
14. PLANS FOR MANAGEMENT TRAINING PROGRAMS.
a. WSH Management maintains our own training program. Supervisors will
thoroughly train new hires in the areas of company policies and procedures, tax
credit or other program compliance and supervisors handbook. All new
18881 Von Karman Avenue • Suite 720 • Irvine CA 92612 • Ph: 949.748.8200 • Fax: 949.748.8220
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managers are required to attend and successfully complete Agent-sponsored
training courses.
b. When a new manager is hired at any property, the manager trainee is put
through our training program, which includes all aspects of the particular program
under which he or she will be working as well as our management and safety
programs. In addition, we conduct periodic safety programs.
15.TERMINATION OF LEASE AND EVICTIONS
a. The lease agreement outlines all provisions and procedures for the Managing
Agent to evict a resident. Owner may not terminate the tenancy or refuse to
renew the Lease or rental agreement of a Low Income Tenant except for good
cause, including a serious or repeated violation of the material terms and
conditions of the Lease, or a violation of applicable Federal, State, or local law.
To terminate the tenancy or refuse to renew the Lease, Owner/Agent must
provide written notice to the tenant of the grounds with sufficient specificity to
enable the tenant to prepare a defense. The notice must be served at least three
days before the termination of tenancy, and must comply with all requirements of
California law and other applicable programs. Tenant has the right to enforce this
requirement in state court, including presenting a defense to any eviction action
brought by Owner.
b. Within the Managing Agent's organization the supervisors are responsible for
determining and overseeing evictions, and work in partnership with Kimball Tirey
St. John landlord tenant legal services.
16.SECURITY
a. Strict key control and use of an electronic key fob system are planned.
Surveillance cameras, if applicable, and monitoring by the resident management
staff will also be used to maintain security. Residents will not be allowed to make
duplicates of front door keys for visitors. Keys will be issued only by the
management staff. Property keys are kept in the office in a locked key box.
b. Resident Management will keep alert to the presence of unknown people on or
around the apartment community, and will call the local police if the situation
warrants. Security will also be provided by ensuring that the on-site staff has a
18881 Von Karman Avenue • Suite 720 • Irvine CA 92612 • Ph: 949.748.8200 • Fax: 949.748.8220
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readily available list of agencies such as police, fire department and paramedics,
along with their telephone numbers. A Neighborhood Watch program will be
promoted and encouraged.
17.MANAGEMENT AGREEMENT
A copy of the proposed Management Agreement becomes a subpart of this
Management Plan upon execution by all parties.
18. ON-SITE MANAGEMENT
a. The on-site office staff consists of a Manager and Assistant Manager, who will
perform on-site management operations duties.
b. Staff job descriptions are available.
c. As determined by the WSH Management corporate team, either the Manager or
Assistant Manager must live on site and will be provided a rent-free apartment,
including reimbursement for the electric utility.
d. The maintenance team consist of a Maintenance Technican and a Porter. Both
will be directed by the resident manager, or the assistant manager when the
resident manager is not available due to vacation or illness, to perform required
maintenance and janitorial duties to keep the property up to standards of repair,
safety and cleanliness.
e. Office hours will be established to meet the needs of the residents within the
limits set by the approved budget. Office hours are posted and currently
Monday through Friday from 9 a.m. to 5 p.m., although office staff is there at 8
a.m. prior to opening for residents at 9 a.m. The office is closed for lunch from 1
p.m. to 2 p.m. If they are on-site working, but not actually in the office a small
sign is posted to include when they will be back to the office with brief
explanation (e.g. performing inspections).
18881 Von Karman Avenue • Suite 720 • Irvine CA 92612 • Ph: 949.748.8200 • Fax: 949.748.8220
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